International Business Seminar

Transcription

1 International Business Seminar ROADMAP TO FIND AND LAND NEW AEROSPACE CONTRACTS FOR JAPANESE SUPPLIERS WITH US AND EUROPEAN BUYERS By Xavier Hurtado Saitama Prefecture, September 8th 2016

2 Outline 1. Objective of this Seminar 2. International Business Opportunities for Japanese Suppliers 3. Integrating the stages of the full commercial process 4. Identifying the right potential buyers 5. Integrating the right value proposition 6. Packaging the right value proposition 7. How to implement the commercial process 8. Planning the next commercial mission 9. Questions and answers 10. Conclusions

3 1. Objective of this Seminar ESTABLISHING COMMITMENTS TO GAIN AEROSPACE CLIENTS

4 Objective of this Seminar We will accomplish and commit to 3 things today: 1. We will determine where the real Business Opportunity is 2. We will review the stages of the commercial process to gain those business opportunities 3. We will integrate an action plan to land new contracts OUR COMMITMENT We will not rest until we accomplish the end goal: LAND NEW CONTRACTS!

5 2. International Business Opportunities for Japanese Suppliers MARKET TRENDS: POPULATION GROWTH & DEMAND

6 Market trends: Population Growth The aerospace industry will focus on the growing medium class of young families in emerging countries for 2 reasons: Their increasing propensity to travel The need of regional jets or single aisle or narrow body aircraft to connect cities in short distances Business Opportunity: Go where the market with less competition is! Note: the growth of the medium class will impact other industries too: automotive, medical devices, electronics,

7 Market trends: drivers & demand

8 Market trends: demand by region US & European Leading OEMs The challenge these OEMs and their Potential OEMs for the region Tier 1 suppliers are facing: to fulfill the Asian demand for aircraft, they need to find, attract or develop new Tiers 2 and 3.

9 Market trends: New Flights projection All cities with more than 1 million inhabitants will be connected with short flights. This requires a large fleet of single aisle or narrow body aircraft + all support services from MRO companies and suppliers.

10 Market trends: aircraft demand

11 Market trends: Boeing & Airbus Forecast

12 Aircraft Models: Boeing & Airbus

13 Market trends: Bombardier & Embraer Forecast

14 Aircraft Models: Bombardier & Embraer

15 Fleet Change: Upgrading or renewing aircraft

16 The Maintenance, Repair & Overhaul Market

17 MRO Spend Growth by region

18 MRO Forecast by Segment

19 Benchmarking: what Suppliers are doing with OEMs & Tiers 1 Let us review different Success stories of how suppliers from other regions have grown their business with OEMs and Tiers 1. What was different? Orbital ATK seeks supplier capabilities for project: invited to present to all suppliers in a group their challenge so that in the commercial mission the buyers could see existing and potential capabilities for the project. GE Aviation outsources Leap Engine Project: Contacted suppliers make a JV to pursue project and negotiate for Government incentives, training programs and financing together. GE provides full support. Bell Helicopters launches Supplier Integration Program: they recognized that the low volume of the business requires integrating demand with other buyers to make it more attractive and sustainable for suppliers. UTC Launches Supply Chain Development Program: they evaluated their supply chain and found that they need to help their suppliers in terms of technology transfer, certification support and long term contracts.

20 Benchmarking: what Suppliers are doing with OEMs & Tiers 1 In other regions, VPs of Supply Chain in coordination with industrial associations are hosting SUPPLIER DAY WORKSHOPS, that show the business opportunities to get integrated into their Supply Chain, even at a lower tier level. In some key regions in Asia and North America, they have established Discussion Tables with the different suppliers interested in participating in upcoming projects. That is how they have integrated new aerospace programs, especially for new processes like composites (carbon fiber).

21 Benchmarking: what Suppliers are doing with OEMs & Tiers 1 Tier 2 and 3 Suppliers go after Airbus & Embraer: 6 companies integrated a value proposition to go after new programs, all integrated under 1 single pricing strategy. The cost of manufacturing includes CNC machining and other fabrication processes. Special processes include different types of finishing required for the specific programs they are applying for. Average cost for manufacturing* $36 USD / hr Average estimated cost by raw material $ 4.89 / sqft Note: * Price Model based on average cost for fabrication technologies. Now they are integrating the full delivery cost, including customs and logistics. They are evaluating establishing a VMI model. They already hosted an initial commercial mission with the AIRBUS Supply Chain Team. September 2016 they will be hosting another commercial mission with EMBRAER.

22 Business opportunities So, in order to fulfill our first objective: determine where the real Business Opportunity is, here are key questions for your company: 1. What regions will you focus on? 2. What specific OEMs and aircraft would you want to serve? 3. What specific part of the aircraft would you qualify for (Airframe, fuselage, engines, components, etc) 4. Would you be interested in the manufacturing side of the business or in the MRO? Or both? 5. What type of value added service are you willing to offer? 6. What type of machinery and equipment, processes, or certifications are you willing to invest in? 7. What types of partnerships are you willing to make? Remember the challenge these OEMs and their Tier 1 suppliers are facing: to fulfill the Asian demand for aircraft, they need to find, attract or develop new Tiers 2 and 3. Are you ready for this Opportunity?

23 Questions for your Company What if you could increase your PROFITABILITY by taking advantage of the ASIAN MOMENTUM at this early stage? What if you could become an INTERNATIONAL COMPANY instead of a local supplier? What will the OPPORTUNITY COST be of not TAKING ACTION NOW?

24 The time is now The Asian boom requires engineering companies to lead the way for the next 30 to 50 years US and European companies will need LOCAL, but WORLD CLASS SUPPLIERS to sustain their growth! What differentiates the EXTRAORDINARY companies from the ORDINARY ones: Vision & Commitment: what is EXPENSIVE? 3 Steps beyond I did everything I could is whatever it takes 30 years ago SINGAPORE was a 3 rd world and poor community: NO SKILLS, NO TECHNOLOGY! ST Aerospace Case Where was your company 30 years ago & Where will it be 30 years from now? Why will your FUTURE SELF be thankful with you for making changes in your company this year?

25 3. Integrating the Stages of the full Commercial Process MAKING SURE WE HAVE ALL THE STRATEGIES, TACTICS AND TOOLS SET UP BEFORE WE CONNECT WITH POTENTIAL BUYERS

26 The 7 Stages of the full Commercial Process In order to grow our business with the Aerospace industry we need to evaluate the full Commercial Process, along with a solid assessment of why each stage would fail so that we trigger key actions to prevent it and gain the business. Our Tasks 1. Identify the right Buyers 2. Connect with the right Buyers 3. Get the RFQ 4. Negotiate and get PO 5. Financing, Delivering & Invoicing 6. Getting Repeat orders 7. Getting Testimonials & Referrals Potential Client Classification Subjects Prospects Qualified CANBT Prospects Business opportunity Client Recurring Client Question: What triggers do we need to move the potential client from one stage to the next? Referral The Key to a Great Commercial Process Implementation is The right combination of the 3 Ms: Market (right buyer), Message (Value Proposition) and Media (Marketing Materials) tailored to each stage.

27 4. Identifying the right potential buyers MAKING SURE WE GO AFTER THE RIGHT DECISION MAKERS (MARKET)

28 The Aerospace Supply Chain Structure First, let s identify the type of aerospace industry to go after: Military & Defense Commercial Business Jets Space Second, let s select the type of end process: Manufacturing or MRO Third, lets identify the supply chain structure. Where would you fit in? The higher your position in the value chain, the higher the requirements will be: financing, quality certifications, logistics, on-time delivery, etc.

29 Supply Chain Structure: Understanding Tiers 1 Now let s identify the major part where you fit in. These are the different parts in which the full aircraft is fragmented and the names of the Tiers 1 and region in charge of each part. This is the Boeing 787 model. Question: what specific part would you go after?

30 Supply Chain Structure: who makes what

31 Certification & Regulation Requirements Most of the Aerospace potential clients will ask you to get certified so that you gain a long term contract. What type of certifications: 1. First, NADCAP and AS Then, the OEM related ones. 3. Regional regulations might play a role too, like the European Aviation Safety Agency (EASA) or the Federal Aviation Administration(FAA) for the USA. The challenge most new suppliers face: long time and cost to get certified to get low volume contracts. The rules of the Game have CHANGED! The growing demand for qualified Tiers 2 and 3 suppliers in key regions has forced Tier 1 companies to provide all the support and long term contracts you need to make it worthwhile: technology transfer, training, tooling and other types of support.

32 Buyer Database: Top +180 Aerospace Companies Note: Here is an alphabetical list of the top aerospace manufacturers. They all have different regions, divisions, commodities and buyers. It is very important to first select the ones that make sense for your company to contact so that you do not waste your company s time and financial resources. AAR Corp Acciturri Group Aernnova Aeroflex Aerolia Aerotech Aerosur Airbus Aircelle Alcan Alcoa Alenia Aleris Alestis Group Allegheny Technologies Alliant Techsystems Alion Science & Technology Amphenol Ati Aubert & Duval Avic International B/E Aerospace Babcock International BBA Aviation BAE Systems Ball Aerospace Belairbus Bell Helicopters Boehler Boeing Bombardier Aerospace Bucher CACI CAE Inc Cesa CFM International Chemring Chengdu Aircraft Industrial Group Cicor Cobham Crane CSC Cubic Corporation Curtis Wright Cytec Cytec Fiberite Daher Socata Dassault Aviation Delta Tucker Holdings Denel Deutshc Diehl Aircabin Doncasters Ducommun EADS Eaton EFW Elbit Systems Elimco Embraer Engility Engine Alliance Esterline Eurocopter Excel Exellis Inc Facc Finmeccanica Flir Government Systems Fuji Aerospace Garmin Gen Corp General Dynamics General Electric GKN Fokker Goodrich GS Yuasa Hafel Aviation Industries Hamilton Sundstrand Harris Corp Heico Hexcel Honeywell Huntington Ingalls Ind Indra International Aero Engines ITP Jacobs Engineering Group Jamco Jet Aviation Kaiser KAL ASD Kaman Kawasaki Aerospace KBR Kongsberg Gruppen Defence & Protech System Korea Aerospace Industries KAA Kratos Defense & Security Technologies L3 Communications

33 Buyer Database: Top +180 Aerospace Companies The most solid database to get key contacts will be Dun & Bradstreet. Then can provide you with detailed information about all of these companies and key buyers. However, there are other sources like Linked in, Data and Aerospace Associations throughouth the world. Labinal Latecoere Latelec Liebherr Aerospace Lisi Aerospace Lockheed Martin Lufthansa Tehcnik MacDonald, Dettwiler Magellan Mantech Marshal Aerospace Martin Baker Mecachrome Meggit Messier Bugatti-Dowty Mitsubishi Heavy Industries MOOG Morpho MTU Aero Engines Navistar Northrop Grumman Ogma OHB AG Orbital ATK Orbital Sciences Oshkosh Defense Otto Fuchs Parker Parker Hanniffin Aerospace PCC PFW Pilatus Pratt & Whitney Precision Castparts Premium Aerotec Quantas QinetiQ Radiall Raytheon Recaro Aircraft Seating Rheinmetall Defence Rockwell Collins Rolls-Royce RTI Ruag SAAB Safran Saic Sagem Samsung Techwin Senior PLC Serco Defence Sevilla Control Group Shenyang Aircraft Group Short Brothers PLC SKF Smiths Detection Sofitec Snecma Sogerma Sonaca Spirit Aerosystems ST Aerospace Telair Textron (Cessna & Beechcraft) Techspace Aero Teledyne Technologies Terma Textron Thales ThyssenKrupp TigHitco Transdigm Group Triumph Turbomeca Ultra Electronics United Technologies URS Federal Sector Vought VSMPO Wesco Aircraft Woodward Aerospace Zodiac Aerospace

34 Competitor Analysis Competition has transcended the manufacturing walls of the suppliers to other areas in order to offer a more competitive total delivered cost What are your competitors offering in terms of: Quality Pricing Lead time / turnaround time Guarantees Payment periods or financing Logistics up to 3PL or even VMI Customs & Free Trade Agreement Intelligence Partnerships with other related suppliers Note: there might be some potential clients married to specific suppliers on a corporate level. Try to determine this as soon as possible. In the past, it used to be: the Big fish eat the small fish! Today: the fastest fish eats the other two! Have you considered partnering with a competitor to gain more business together?

35 What s in it for me? 5. Integrating the right Value Proposition 10 KEY ELEMENTS TO ATTRACT NEW AEROSPACE CONTRACTS (MESSAGE)

36 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Certifications 5. Lead time / turnaround time 6. Full service delivery: customs, logistics (3PL, VMI) 7. Testimonials 8. Differentiators 9. Guarantees 10. FAQs & SAQs Notes: The Value Proposition is about the BENEFITS you will provide to your potential clients. NOT ABOUT YOUR COMPANY! It is tempting to make a general presentation and flyer that fits all potential buyers. If we want to pursue good contracts in the Aerospace Industry, we will have to make tailored presentations, using special keywords: their brand name, aircraft model, major assembly or commodity and part number along with our value proposition!

37 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turn around time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions Describe what you do: your products and services Describe your Processes and standards Describe your quality indicators or characteristics of your products (tolerances, PPMs, etc) Machinery and equipment including number, size of parts that could be machined, folded, or stamped and other characteristics Minimum order requirements: establish the minimum to trigger a tailored project Offer potential expansion capabilities

38 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turn around time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions Name the quality certifications that you have and be as specific as possible: NADCAP, AS9100, OEM related ones. Name the potential quality certifications that you will acquire if you gain more business Name the international regulations you can comply with: FAA, EASA, etc. If to fulfill your product delivery, you integrate your offer with another supplier (like special processes), name their certifications too)

39 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turn around time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions Name the Aircraft specific parts that you can make Name the major group of commodity that the part numbers belong to Name the types of aircraft model that you can work for, according to the OEM

40 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turnaround time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions What is the lead time you will have, from getting the order to delivering your final product to your client s door? Make sure you estimate your delivery time to key locations (where the OEM assembly plant or MRO facility is) and offer different transportation means. If there is a remanufacturing change or repair, how long would the turn around time be to key locations?

41 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turnaround time 5. Full service delivery: customs, logistics 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions To deliver your products to your client s door. What are the customs fees and time? Are there any special Free Trade Agreements you could take advantage from? Will you coordinate and pay for logistics and insurance? Will you offer inventory management solutions such as 3PL or VMI close to your client s facilities?

42 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turnaround time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions Who are your current clients? Can you get a written testimonial of the quality of products and services you have provided to them? Can you use their logos? What do your clients use your products for? What have they accomplished thanks to your service?

43 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turnaround time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions What separates you from your competitors in terms of real value added for your clients? It does not have to do with your Company, but with what you deliver: time, quality, guarantees, integration with other suppliers, getting them financing solutions, insurance, etc.

44 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turnaround time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions What happens when you do not deliver on time, or if there are quality problems? How do you prevent these type of situations? Do you offer money-back guarantee? Do you offer product remanufacturing with free logistics? Do you have insurance in case your product causes malfunctions? What type of customer service will you offer?

45 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turnaround time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions Do you have a list of frequently asked questions that you should communicate? Do you have a determined process on how to request your services? How long does it take you to quote your clients? How does your pricing model work? Is it based on units or working hours? Do you charge any markups on other products and services that you integrate? Have you prepared any disclaimers on how your delivery and payment terms will work?

46 Value Proposition: 10 Key elements 1. Products or Services 2. Quality certifications 3. End parts of the aircraft 4. Lead time / turnaround time 5. Full service delivery: customs, logistics (3PL, VMI) 6. Testimonials 7. Differentiators 8. Guarantees 9. Frequently Asked Questions 10. Should Ask Questions How do you educate your buyers on how to select your company? There are plenty of buyers who are administrative executives, not engineers. So educate them with WHY they should select some type of process, material, logistics supplier or anything related to fulfilling your clients needs. For example, develop a list of 10 things you should know before you buy

47 Value Proposition: Summary Now that you have gone through all the 10 elements to integrate your value proposition, it is time to integrate a brief summary of the most important highlights, where you combine your target market with your offer. Example of a first draft of Value Proposition: B&B Manufacturing helps aerospace engine manufacturers serving Boeing (787) and Airbus (A380) with their high precision machined parts through our specialized fabrication services at our AS9100 certified plants at a very competitive total delivered cost (including customs and logistics) with a lead time of 5 days anywhere in Asia. Now, go ahead and integrate your own Value Proposition with a STRONG WHAT S IN IT FOR ME Filter!

48 6. Packaging your Value Proposition INTEGRATING YOUR KEY MESSAGE IN ALL YOUR MARKETING MATERIALS: Think as an International company in language and corporate image!

49 Packaging your Value Proposition There are 5 basic elements every Marketing material has to have: 1. Who you are: the name of your Company 2. What you have for your potential clients: your value proposition using the keywords and type of market you are pursuing 3. How your order process Works 4. A success Story of one of your clients + logos of your different clients 5. Call to action: Request a Proposal or Quotation Now, let s make a list of all the marketing materials you should have, where you will include these 5 basic elements

50 Packaging your Value Proposition Now we will list some of the top 12 types of marketing materials that you should have, where you will integrate a few, some or all of your 5 basic elements discussed before, depending on the usage (commercial process stage) and available space. 1. Printed Materials: Business cards Buyer Guides flyer One pager flyers Booklets Banners (roll ups for trade shows) 2. Electronic Materials: One pager flyer PDF Buyer Guides Sales Presentation Videos 3. Online Materials 1. Website 2. Downloadable flyers 3. Social Media Profile on Linked In (Company and executives) Note: if your buyers are from other countries, consider having all of these materials in their own languages: English, French, German, Portuguese, Korean, etc.

51 Packaging your Value Proposition Now go ahead and package your value proposition, but before, do some benchmarking with international aerospace or industrial companies so that you review how they design and showcase their marketing materials: 1. Make your facility a SHOW ROOM (clean, organized, 5s) 2. Integrate your value proposition script 3. Translate your value proposition contents to all key languages. ENGLISH IS A MUST!!! 4. Design all top 12 types of marketing materials 5. Audit: Make sure you integrate the 5 basic elements that your marketing materials should have, including your Value Proposition and CALL TO ACTION 6. Print and publish all your online materials before you start contacting potential buyers 7. Portable: Make sure you offer flash memories (USB) or printed flyers (post card size) with links to download your electronic PDFs and sales presentations Note: if you want to connect with a potential client: MAKE SURE YOUR MARKETING LOOKS AT THEIR LEVEL!

52 Best practices for your Marketing Materials Use corporate s aligned with website Try to get an international domain (not only the Do not use GOOGLE TRANSLATE Create a LINKED IN Profile Facebook does NOT OPEN in China! Create a REQUEST FOR PROPOSAL SECTION on your website Use CORPORATE IMAGE: colors, pictures, text If you serve different markets, have a section for each one of them with a tailored value proposition

53 Example of Business Cards Front of card: Data for ready to move forward buyers Job Position alignment Industry alignment Contact data with own domain name Main services offered Back of card: information for not ready to move forward buyers Download FREE Guide

54 Examples Show room! Online & Electronic Materials

55 Examples

56 Example of Presentation COVERs Same company Same machinery and equipment Same Engineering team Same process Different types of clients Different Value Proposition

57 7. How to implement the Commercial Process to attract new clients Best Practices along the Commercial Process

58 5 elements to identify the right potential buyers Integrate a very solid database of the aerospace companies that you will contact. This will be your SUSPECT DATABASE. At this point, we have not decided how we will contact them yet. However, there are 5 critical elements to integrate at a later stage for each contacted company: 1. Company: target the right company, according to their supply chain level and type of major aircraft structure that they work for. 2. Authority: make sure you find the right buyer with a decision making authority level. Not in the highest hierarchical level, but not in the lower end either. 3. Need: make sure the company already needs what you are trying to sell. 4. Budget: make sure they have the budget in place to buy what you sell. HAVE CLEAR NUMBERS IN YOUR MIND! 5. Time frame: make sure you establish a time frame to buy from your potential clients, so that you prioritize who you dedicate time to. So, the most important thing to consider is to go after the full information of these potential buyers as soon as possible.

59 Comparing Client Attraction Strategies These are the top 3 business development and marketing strategies implemented to attract clients. Let s do some math: Trade Shows Advertising on Industrial Publications Organizing your own seminars Investment US$15,000 to US$50,000 + hidden costs (brochures, booth, goodies, wages and travel expenses of executives and staff) Ranging from US$4,000 to US$80,000 per ad Ranging US$30,000 - US$80,000 + hidden costs (brochures, banners, travel expenses, booth, goodies, travel expenses of speakers + staff) Results 25 to 50 business cards per team member for each day of the event They always said it was good for branding, but rarely did we get clients from ads We used to land 10 to 20 B2B decision makers through telemarketing and direct mail invitations from a 14,000 database that we owned Problem Most attendees are Marketing and Sales people, not purchasing decision makers. We rarely got an or phone call from a potential customer because of those ads Interruption marketing yields a very low return on investment Best Case Scenario 3 to 5 qualified prospects, perhaps turning into 1 client Nothing measurable 1 attendee of every seminar turned into a paying customer with a long sales cycle Basic Math Cost per qualified prospect = US$10,000 + hidden costs (US$50,000 divided by 5) US$4,000 to US$80,000 worth of ZERO Qualified Prospects Cost per qualified prospect = US$4,000 + hidden costs (US$80,000 divided by 20) Client Attraction Premise Sign marketing checks that your sales team will be able to cash at the best possible price Can these Costs per qualified prospect acquisition be outperformed?

60 Communicating Your Value Proposition You need to show your VALUE PROPOSITION to every contact in your Potential Buyers Database. How will you do that? It is better to do it through strategies that help us to save on time and financial resources. Where do potential buyers congregate or get together? Trade Shows & Associations! Select the trade shows or associations that you will attend, based on the presence of your targeted potential buyers (suspects). Or organize a commercial mission visiting key regions where at least 10 potential buyers have their offices Make sure that, before attending the meeting, you have reviewed their website so that you are aware of what the Company is going through. Then, on a personal basis, review the social media profile of the targeted buyer. If possible, become a member of the international aerospace associations they belong to, so that you are a part of that key networking part of the puzzle. Then start contacting through telemarketing or social media each one of the buyers to request a 10 minute B2B meeting.

61 Communicating Your Value Proposition What is the best way to attract potential buyers at a live event? Integrate a GUIDE to educate buyers on specific angles that will help them to make better buying decisions so that they can achieve their goals. Convert that GUIDE into a LIVE PRESENTATION. Offer your PRESENTATION as a FREE LECTURE at TRADE SHOWS & ASSOCIATIONS. EXAMPLE: 1. FABTECH is an annual event for fabricators in the USA organized by 5 industrial associations. 2. They have training seminars for their audience. 3. They invited me to give a FREE LECTURE in front of 1,300 manufacturers 4. We offered the free guide and started follow up process from there.

62 Results of Connecting with Potential Clients These are the 7 key items you should have after every contact or B2B meeting: 1. Name of company and division for potential business 2. Decision maker: who you met and contact data 3. Comments: Outline of what was discovered in preliminary company profile and what discussed in the B2B meeting 4. Potential Business Opportunity: problem and size of the business (budget, conditions, time frame and potential competitors) 5. Next steps: what needs to happen in order to move forward to an RFQ & potential PO 6. Account Executive: determination of who will carry out next steps 7. Date for next revision Have a Customer Relationship Management (CRM) SOFTWARE!

63 Getting the RFQ (Request for Quotation) At every call or appointment the champion of your company must: Make sure you ask key questions to the buyer from the first touch point to determine their CANBT profile. If it is a qualified prospect, push for the RFQ by asking for the opportunity to quote, and if you result to be competitive, you invite the buyer to visit your plant to discuss further details of your potential contract. Follow up until NDAs are signed between potential Client and your company to facilitate information flow for potential RFQs Follow up until potential Client uploads your company information as a supplier in their purchasing software in all potential categories, including special keywords based on products and services demanded by potential Client. Note: most buyers talk to plenty of suppliers every day. So, they say they are going to send NDAs and RFQs, but most of the times they FORGET, especially if they do not have a constant contact with you. MAKE SURE YOU FOLLOW UP UNTIL YOU GET THE RFQ!

64 Getting the RFQ (Request for Quotation) Part 2 Follow up until potential Client releases RFQs or RFPs Visit your potential client at their headquarters Follow up until your Team gets all needed information to develop Quotation or Proposal, including delivery and payment terms Determine if additional assistance will be required to fulfill contract and establish the adequate connections (customs, warehousing, 3PL, technical support staff on site, etc) Determine if PO Financing would be required to establish the right procedures and paperwork that would be outlined in the Quotation or Proposal (this implies additional fees) Follow up until your company delivers Quotation or Proposal to potential Client. Make sure you have a personal presentation to explain the Quotation or Proposal. Make sure you express the EXTRA VALUE you will put together for them (Value proposition and differentiators expressed with numbers) 7 key elements of the Quotation or Proposal: 1. Clear identification of the project to quote 2. Tailored Value Proposition: deliverables 3. Account Executive 4. Clear Proposal with Scope of work and responsibilities of each party 5. Stages (Gantt Chart) 6. Investment & Guarantees 7. Next steps

65 Negotiating and Getting the PO Now that the Quotation or Proposal has been delivered to your potential client, you need to: Follow up with potential client to review status and potential quick action steps on adjustments to submitted Quotation or Proposal. This might imply negotiation of terms: financing, logistics, lead time, etc. Make sure you make as many adjustments and visits as needed in order to get the Purchase Order. Make sure you already have contracts developed, so that you do not lose momentum. At all stages: FOLLOW UP IS EVERYTHING!!!!

66 Fulfillment, long term relationships & Referrals Now that you will fulfill your products and services, make sure you: Establish connection and help with negotiation of additional support services (customs, warehousing, logistics, technical support staff, etc) Evaluate customer service Follow up until invoicing is approved to be submitted Follow up until payment is received Get more RFQs or RFPs with client Get testimonial for marketing purposes Try to brainstorm, plan and present potential growth opportunities as a business partner instead of a plain supplier Ask for a referral: it always Works!

67 Review: 7 Stages of the full Commercial Process Now it is time for you to review your own commercial process. Our Tasks 1. Identify the right Buyers 2. Connect with the right Buyers 3. Get the RFQ 4. Negotiate and get PO 5. Financing, Delivering & Invoicing 6. Getting Repeat orders 7. Getting Testimonials & Referrals Potential Client Classification Subjects Prospects Qualified CANBT Prospects Business opportunity Client Recurring Client Question: What triggers do we need to move the potential client from one stage to the next? Referral The Key to a Great Commercial Process Implementation is The right combination of the 3 Ms: Market (right buyer), Message (Value Proposition) and Media (Marketing Materials) tailored to each stage.

68 8. Planning the next Commercial mission Based on the full commercial process, and all we have covered today, here is what we need to do now: 1. Fine tune the right target market 2. Fine tune the Value Proposition of each Company 3. Fine tune the marketing materials of each Company 4. Review the scheduled agenda for the October s Commercial Mission 5. Review the commitment of all parties involved

69 Our Value Proposition for your Company At Industry Reps we will help you with the following tasks: 1. We will help you determine your most profitable type of potential client to go after 2. We will help you integrate your VALUE PROPOSITION Industry Reps is currently working with different Supply chain integration initiatives led by these OEMs and/or their Tiers 1 3. We will help you integrate all your MARKETING MATERIALS 4. We will help you get connected with the right BUYERS (we will contact all potential buyers until we find the CANBT ones) 5. We will help you ask the right questions and follow up until you get the RFQ 6. We will help you integrate the tailored proposal, incorporating value added services from third parties (customs, logistics, etc) 7. We will help you negotiate until we land a PO 8. We will help you communicate with your client until you are able to fulfill and invoice them.

70 How our Business Model Works: At Industry Reps (IR) we offer Business to Business (B2B) Connection services in under a pay-per-performance model, or success fee or commission (sales % to be determined with your Team) with a compensation structure using pay-perperformance milestones as follows Milestone 1: B2B Meeting with qualified CANBT Prospect at Trade show or Commercial Mission Milestone 2: Getting the RFQ Milestone 3: Getting the PO Milestone 4: Payment from Client At Milestone 4, commission is due, minus all the milestone fees paid before. All other support, like marketing materials alignment, audit, development or fulfillment support might carry additional fees. 70

71 7 Reasons why work with Industry Reps 1. You will get results on pay-per-performance-milestones with no long term contracts 2. You will get Qualified CANBT Prospects = Right Company + Authority to buy or decide + Need + Budget + Time frame to buy 6-18 months. 3. You will leverage on a Team with Sales and marketing skills, knowledge, experience 4. You will leverage on our +10 years industry network 5. You will have flexibility to get assistance to obtain RFQs and POs + PO Financing for up to 80% or 6 months 6. You will have flexibility to get assistance with support to deliver and fulfill clients: customs, logistics, local warehousing, onsite technical support, etc. 7. You will have flexibility to get assistance with Invoicing and Payment collection

72 9. Questions & Answers

73 10. Conclusions & Commitments review Did we accomplish these 3 items? 1. We will determine where the real Business Opportunity is 2. We will review the stages of the commercial process to gain those business opportunities 3. We will integrate an action plan to land new contracts starting in our next commercial mission OUR COMMITMENT We will not rest until we accomplish the end goal: LAND NEW CONTRACTS!

74 We thank you for choosing us and we are committed to helping Saitama s Suppliers Grow! For more information we invite you to visit our website: Send us an to: B2B@industryreps.com Or call us at our US Phone number: