Butterfly Valve Launch

SUMMARY
Launch Strategy (Sequence, Timing, Areas..)

Positioning
Marketing Strategy Distribution Channel Budget Final Conclusions

LAUNCH STRATEGY

The VFP Valve will be presented as the new standard on the market. The new Valve will be bundled with all the other components sold by WAM. Heavy promotion on professional magazines and fairs. The Launch strategy will be differentiated among areas and sectors.

LAUNCH STRATEGY - II
Area
1- Europe

Launch Strategy Focus

New Valve offered bundled with the adaptor for the old valves. Focus on old customers. Aggressive launch strategy to set the valve as the new standard for old customers. Same price as the old one, focusing on higher quality. Launch strategy focus on bundling the new valve with other components. WAM will provide the highest quality components package with zero waste costs. Focus on relationships with OEM and Dealers. Aggressive launch strategy focusing on new customers. Competitive price to gain market share in 4a, focus on quality in 4b.

2- Asia/Australia

3- Middle East

4a- South America 4b- North America

LAUNCH STRATEGY - III

Sector
Building/Construction

Launch Strategy Focus

Launch strategy aimed at presenting the VFP as the new standard. Adaptors and old valve replacements offered to old customers. Focus on the higher quality and lower waste costs. New VFP bundled with specific components for the industry. Focus on higher quality and lower waste costs. Bundling with safety components for silos. Quality and reliability as strengths. Set the new VFP as the standard for all the new silos.

Food

Chemicals

Others

LAUNCH STRATEGY - TIMING

The VFP will be launched aggressively in area 2 and 4a, replacing at least 15% of the VFS in the first 3 years.

Area 1, 3 and 4b will be covered with VFP on a 5 years horizon, aiming at moving VFS to VFP of the 25%.
In the first 2 years, promotion, volume discounts and bundling components will help VFP to become the new standard.
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INDUSTRY TRENDS
INDUSTRY TRENDS Growing all over the world, especially Area 2 and 4a. Slow growth expected in the next years. Positive growth, especially in Area 2. Area 2, 3 and 4a are expected to grow quickly, while Area 1 and 4b will see a slower growth. STRATEGY Strengthen the relationships with OEM and EU of the industry. Focus on bundling VFS with safety components for food industry.

Building/Constructions

Food

Chemicals

Focus on strengthen relationships with EU and Dealers, starting from Area 2.

Focus on high quality, working together with OEM and other components builders.

Others

THE NEW POSITIONING MAP

110 105 100 95 90

85
80 75 70 90 95 100 105 110 115

WAM

Quality improvement Mkt share D Improvement E

MARKETING STRATEGY - PRODUCT

Product specs & improvements

Reliability Hardiness Simplicity

Quality
Good Performances

solve powder pollution with respect to industrial process; Supply the new flange connection so to simplify assembly and maintenance activity; complete our range with new size/s available; implement new dimension=less thickness; comply with regulations in force (FDA, etc..)

MARKETING STRATEGY - PRICE

Old same price strategy but with some new features:

Asia&Australia
Discounts on big volumes Europe Leverage on brand quality Middle East&America New selling techniques

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MARKETING STRATEGY - PLACE

Current distribution Channels Dealers

OEM

End User

Focus on OEM in the Short term

Engineering Companies

In the Long term we suggest to do an agreement with the other companies which produce the different components of an integrated system that uses our valve in order to become a cooperation of companies, a sort of OEM made of cooperation of complementary companies

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MARKETING STRATEGY - PROMOTION

Free Adaptor
With the replacement of the new butterfly valve only in certain areas (Asia, Australia & South America) in order to be competitive and aggressive

All Areas
Improved Technical and Technologic al support Direct video connection with our production plant during customers meeting

Domestic Champion

Due to high competition in North America, in order to be aggressive, it would be convenient to acquire the domestic champion.
Stress test during fairs, presentations, events, in order to demonstrate the hardiness and reliability of our product

Leverage on quality

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ADVERTISING
Press Reviews Trade Fairs Newsletter Campaigns Sponsorship Individual stress test

ADWAMTAGE THROUGH STRENGHT

UNBREAKABLE!!!

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DISTRIBUTION CHANNELS
Given the consolidated distribution model, there is no need to create a complete new one.

Dealers OEM Consortium Engineering Companies

Instead we want to focus on the OEM channel that is already existing, and in the long run create a Consortium of production companies that could become an OEM itself. The area that will mostly be interested by this strategy is SA, because it is a rapidly increasing market with a huge potential. Given the fact that our technology is superior, we want to break in the SA region to present ourselves as innovators in the building and construction industry in order to be leader of the new Consortium.

End User

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YES WAM CAN

In order to improve our image we suggest to create a partnership with other companies to build a new green and self-sustainable plant in a difficult area of the world. This building and construction factory is supposed to have a good impact on the population in terms of employment and other virtuous dynamics connected to the work

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MARKETING BUDGET
We want to dedicate 15% of the revenues coming from the selling of the new butterfly valve to the marketing budget So, if we sell, 4.000 valves at a price of 120 each
Revenues 480.000 Rate 15%
15% 10%

Expenses in Mktg 72.000

Allocation of marketing expenses per Area according to the strategies we want to implement in the different geographic areas

15%

25%

North America South America Asia&Australia Middle East Europa

35%

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FINAL CONCLUSIONS

Given the market conditions and the historical trends, our forecast model shows a slow growth.
Therefore, our main objective is to increment the percentage of new valves compared to the old ones, given the volume of total valves sold in 2012 as a constraint (4000).

Our market share will increase gaining from competitors in Area 1 and 2 while acquiring new market shares in the growing Areas 3 and 4a.
Respect to VFS and VFP valves, we aim at replacing at least 30% of the old valves in the first 5 years.

Landing on the moon was possible thanks to little things

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HOW OUR TEAM WORKED

Several Brainstorming sessions First session to plan and share ideas and work Split the work in groups of two in order to divide analytically the presentation Information shared constantly among the members Last sessions dedicated to build together the presentation Each member of the group contributed to the work in respect to his background and competences Just two main speakers during the presentation in order to achieve continuity and keep listeners attention

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THANKS FOR YOUR ATTENTION!

Andrea Babbi Claudia DAlessandro

Moe Fattah
Vittorio Melli Samuele Poletto Shalini Singh

Gianluca Venturi

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