SCUTUM. Marketing Plan. Reference: Version: Page: D of 46. Reference: D5.2 Contract: Prepared by: Number of pages: 46

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1 1 of 46 Reference: Contract: Prepared by: TPZ Number of pages: 46 Classification: Internal Date: 21/07/2011 Signature:

2 2 of 46 Distribution List Company GNSS Supervisory Authority TPZ CEN TPZ-F IPBO ERF BRI EIA MIT MEDDTL E-GEOS Contacts Project WEB site address: Project Coordinator: Antonella Di Fazio Telespazio S.p.A. 965 via Tiburtina Rome - Italy Tel: Fax: Mail: antonella.difazio@telespazio.com

3 3 of 46 Table of Contents 1 INTRODUCTION Abstract Document Overview List of References Applicable Documents Reference Documents Abbreviations MARKETING PLAN FOR PRODUCT 1 LCS MODULE Background Company description Market opportunities in EU Market opportunities in the three target countries MARKETING STRATEGY IN ITALY Market environment SWOT analysis Marketing objectives Marketing strategy Marketing actions MARKETING STRATEGY IN FRANCE Market environment SWOT analysis Marketing objectives Marketing strategy Marketing actions MARKETING STRATEGY IN AUSTRIA Market environment SWOT analysis Marketing objectives Marketing strategy Marketing actions EARLY IMPLEMENTATION Marketing actions implemented in...38

4 4 of Contacts with key stakeholders Advertising...43 List of Figures Figure 1 product 1 LCS module business plan outcomes (base case)...21 List of Tables Table 1 Applicable Documents... 7 Table 2 Reference Documents... 8 Table 3 Go/ no-go opportunities for TPZ commercialization in EU of the product 1 LCS module...15

5 5 of 46 Control Sheet Version Date Author Summary of Modifications Draft 06/05/2011 TPZ and WP5.2 Team First issue 21/07/2011 TPZ First official delivery

6 6 of 46 1 Introduction 1.1 Abstract This document presents the marketing plan related to the products/ services. It is the outcome of the Business & Exploitation Plan activity ( WP5), elaborated as part of the project Exploitation & Commercialisation. This marketing plan follows-up the conclusions/ outcomes of the business and exploitation plan previously developed (in WP5.1). It is the marketing plan to be implemented by TPZ for commercializing the product 1 LCS module in the road market in Italy, France and Austria, and achieving the objectives set in the business plan. It is composed by three parts: The plan for TPZ commercialization in Italy The plan for TPZ commercialization in France, where the company could rely on its presence through its subsidiary TPZ-F and its associate company Novacom Services (Novacom) The plan for TPZ commercialization in Austria. The company has no presence or already established alliances in the country. Each part/ plan is defined in terms of the following main elements: Marketing environments, i.e. where we are, including the description of the market and SWOT 1 analysis. Marketing objectives, i.e. where we want to go, including the identification of priorities in terms of markets/ applications/ countries in the short-term and in the medium-long terms. Marketing strategy, i.e. how to get there including the identification of the specific strategy to target the objectives. Marketing actions, i.e. the concrete actions to be implemented according to the identified strategy. For the sake of reliability, short-term actions up to 2012 are considered, due to fast changing any prediction further 2012 could not be applicable. Early implementation, i.e. the specific set of actions, among those identified as marketing actions in the short-term, selected to be practically implemented within the project. It should be highlighted that this marketing plan has been deployed: On the basis of real inputs and in the light of evolving situations in the target countries, with the goal of identifying likely scenarios and concrete actions for the short term, to be implemented during the project lifetime (as part of the successive task Service Promotion & Early Marketing in WP5.3). 1 Strengths - Weaknesses, Opportunities - Threats

7 7 of 46 For the purpose of the project, thus it has been tuned to fit into strategies and actions that can be possibly implemented in an R&D framework. 1.2 Document Overview The document is organised into the following chapters: Chapter 1 is the introduction. Chapter 2 provides the background information of the marketing plan. Chapters 3, 4 and 5 describe the marketing strategy in Italy, France and Austria respectively. Chapter 6 details the early implementation of some marketing actions in the three countries. 1.3 List of References Applicable Documents Ref. Title Code Version Date [AD 1] Grant Agreement /01/2010 [AD 2] Annex 2 DoW /11/2009 [AD 3] [AD 4] [AD 5] [AD 6] Negotiation Meeting Grant Agreement amendment Annex 2 DoW 1 amendment Annex 2 DoW 2 amendment / /10/ /02/ /02/ V2 10/09/2010 Table 1 Applicable Documents Reference Documents Ref. Title Code Version Date [RD 1] [RD 2] Project Management Plan (PMP) _PMP 16/03/2010 Project Management Plan (PMP) _PMP V2 07/12/2010 [RD 3] Kick-Off (KO) / /02/2010

8 8 of 46 [RD 4] [RD 5] [RD 6] Minutes of Meeting - User requirements and services definition Progress Meeting 1 (PM1) Minutes of Meeting Business and Exploitation Plan D2.1 25/06/2010 / /06/2010 D5.1 06/05/2011 Table 2 Reference Documents

9 9 of Abbreviations Abbreviation AD ADR BMI BMVIT BRI CEN CS DoW EBITDA EC EDAS EGNOS EIA ERF ESA EU GNSS GPS GSA HAZMAT HGV ITS IWW KO KPI LCS MEDDTL MIT Meaning Applicable Documents European agreement on the international carriage of dangerous goods on road Austrian Ministry of the Interior Austrian Ministry of Transport, Innovation and Technology Brimatech European Committee for Standardization Commercial Service Description of Work Earnings Before Interests, Taxes, Depreciation and Amortisation European Commission EGNOS Data Access Service European Geostationary Navigation Overlay Service European Intermodal Association European Union Road Federation European Space Agency European Union Global Navigation Satellite System Global Positioning Systems European GNSS Supervisory Authority Hazardous Materials Heavy Good Vehicles Intelligent Transport Systems Inland Waterways Kick-Off Key Performance Indicators LoCation Server French Ministry for Ecology, Sustainable Development, Transport Italian Ministry of Infrastructure and Transports

10 10 of 46 OBU OEGNOS OMV OS PM PMP R&D RD RFID SISTRI SME SWOT TPZ TPZ-DE TPZ-F UNECE WG WKÖ WP On-Board Unit Austrian EGNOS data server Österreichische Mineralölverwaltung Open Service Progress Meeting Project Management Plan Research & Development Reference Documents Radio Frequency IDentification SeCUring the EU GNSS adoption in the DangeroUs Material transport Sistema di Controllo della Tracciabilità dei Rifiuti Small Medium Enterprise Strengths - Weaknesses, Opportunities - Threats Telespazio Telespazio Deutschland Telespazio France United Nations Economic Commission for Europe Working Group Austrian Chamber of Commerce Work Package

11 11 of 46 2 for product 1 LCS module 2.1 Background The conclusions/ outcomes of the business and exploitation plan previously developed in WP5.1 are that: In the considered time lag ( ) opportunities for EGNOS CS/EDAS based products can be envisaged only in the product 1 LCS module for the road market (being the solution well proven for road applications only). The product 1 is commercialized by TPZ according to specific priorities (i.e. applications) and strategies (i.e. way to address the market) depending on the different countries R&D opportunities are envisaged in the rail market, being the most promising sector where addressing further researches. It is recommended to conceive an approach similar to that implemented for the road market in : to start with a nation best case involving key players (such as an important user and the relevant institutions) capable to create a snow ball effect in the initial country and in other countries (selected according to the go/ no-go opportunities for TPZ in EU matrix). In relation to this, the business plan has been produced in three possible cases: 1. Case 1 - a base case in Italy 2. Case 2 - a worst case in Italy 3. Case 3 - a best case in Italy that considers also 2 possible customers in France and in Austria respectively. Thus, the marketing plan has been elaborated to support TPZ in commercializing the product 1 LCS module in the 3 target countries (Italy, France and Austria) so that to achieve the objectives outlined in the business plan. The marketing plan is composed by three parts: The plan for TPZ commercialization in Italy, having the outcomes of the case 1 - base case in Italy as the marketing objectives in Italy The plan for TPZ commercialization in France, where the company could rely on its presence through its subsidiary TPZ-F and its associate company Novacom Services (Novacom) The plan for TPZ commercialization in Austria. The company has no presence or already established alliances in the country. The outcomes of the case 3 are the marketing objectives for the commercialization in France and Austria.

12 12 of 46 The marketing mix of product, place (distribution), promotion and price has been identified as the most effective model for the marketing strategy, customized upon the elements considered as key success factors in each country. 2.2 Company description The company in the subject is a multinational company named Telespazio (TPZ), a joint venture between two big groups in Italy and France (the majority owner being the Italian group). TPZ is a world s leading players in satellite services for public and business customers. Its business areas are: satellite operation, defence, earth observation, satellite navigation and localisation, integrated telecommunications and scientific programmes. Telespazio can count on numerous subsidiaries worldwide. Specifically for what is concerned, it is present in France with Telespazio France (TPZ-F), Fileas and associate company Novacom Services (Novacom), in Germany with Telespazio Deutschland GmbH (TPZ-DE) and GAF, in Spain with Aurensis, in Hungary with Telespazio Hungary and in Romania with Rartel. Additionally the company has recently acquired the space activities of VEGA, a group company based in United Kingdom, with subsidiaries in Germany and France. Specifically concerning the EGNOS services for land applications, since 2001 TPZ has been investing in the development of a proprietary solution that is the core of the product 1 LCS module. It is a well stable technology, extensively proven in various environments, with consolidated performances in road environments and presently used in real operations by in the frame of the project. 2.3 Market opportunities in EU The next table presents the main outcomes of the business plan, summarizing the go/ no-go opportunities for TPZ commercialization/ exploitation of the product 1 LCS module in EU on the basis of: Size of volumes of transports, as an idea of relevance in the country Market maturity in terms of: Existing best cases for GNSS already in place (including final users and relevant solution providers) or main case studies Existing solution providers possibly interested to the products (in case of lack of best cases, main solutions providers have been considered) Regulatory framework. Entry points in the countries (to support market introduction even in countries with strong competition).

13 13 of 46 The following key elements can be derived in relation to the short-term commercial and further R&D exploitation of the product 1 LCS module : - Despite analysed EU countries are heterogeneous in terms of priorities and market maturity, there is a common need of an entry point to penetrate the market. Thus, the short-term commercial and further R&D exploitation of the product 1 LCS module is mainly nation-driven, requiring a country entry point, such as the presence of a company already established in the country, the implementation of a best case with the involvement of key users and the political support (e.g. from user associations and/ or institutions) - Strong support of institutions at national level (to ensure the necessary market penetration) 2, and at European level (to ensure a robust and reliable EDAS service by beginning of 2011, accompanied by a solid and long-term policy framework) are fundamental enablers - The business feasibility strongly relies on the capabilities, structure and heritage of the considered company. This means that there is no chance for a new comer to afford the commercialization of such a product. - Clear opportunities in Italy are for the transport of dangerous goods via road. Additionally the result of the elaborated business plan for the TPZ commercialization of product 1 LCS module in Italy for the transport of dangerous goods via road starting in 2011, shows that after 2015, in order to be profitable, the exploitation into other applications/ markets/ countries is required - The extension to HGV is interesting in some EU countries (and a suitable entry strategy has to be elaborated with the entry points on the basis of the competitive scenario) - The rail market seems interesting in some EU countries (with difficult penetration, thus a possible introduction strategy could be to start from the creation of an Italian best case to be possibly extended to promising countries). Thus, beside the road dangerous goods transport: In the road market and in the medium-term, even before the 2015, the HGV could be of interest especially in the light of the relation with the toll charging application and the recent decision on the French eco-tax collection and control system (that opens new opportunities) The rail is an interesting market where to direct further R&D efforts. Investments and efforts are needed in the short-term in order to prepare for the medium-long term. Beside road, rail is the promising sector for EGNOS CS/ EDAS introduction as a best practice especially in some EU countries, where priorities and level of development can support such introduction (this is the cases for Italy, Germany and Austria). 2 The national regulation is important to drive the market penetration. In this respect in Italy it is expected that the ITS Directive can have the role of triggering the adoption of EGNOS CS/EDAS technologies and services, and the relevant timing.

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15 15 of 46 Table 3 Go/ no-go opportunities for TPZ commercialization in EU of the product 1 LCS module

16 16 of Market opportunities in the three target countries On the basis of the analysis of the inputs and interviews for the Italian, French and Austrian markets, the following scenario has been outlined from the viewpoint of TPZ. In Italy, the product 1 LCS module is to be integrated in the UIRNet platform, that in addition to the tracking & tracing services plans to offer to its customers also services like the product 2 EGNOS augmentation service. Thus, from the TPZ perspective, the commercialization of the product 2 EGNOS augmentation service and for EGNOS CS/EDAS based tracking & tracing services will likely be done through UIRNet. For these reasons, TPZ in Italy will likely commercialise only the product 1 LCS module. So far no strong competitors have been identified in Italy, a few research companies have implemented similar solutions that are still in a premature/ prototype stage with respect to the product 1 LCS module. In France, the strong competition and the not favourable environment conditions do not encourage TPZ, possibly via its subsidiary TPZ-F, to commercialise the product 1 LCS module. The most likely market strategy can be through Novacom (offering tracking & tracing services based on EGNOS CS/EDAS). Contacts with Novacom have been established in the frame of to explore possible benefits for Novacom in upgrading its solutions/ services by means of the LCS. Thus the best scenario in France is that TPZ will sell the product 1 LCS module to Novacom, that in turn will commercialize EGNOS CS/EDAS based tracking & tracing services. However the recent event linked to the French eco-tax 3 project (despite the situation is not presently yet clear) could likely trigger opportunities and support EGNOS adoption in HGV in the short term, and possibly introduction in the transport of dangerous goods in the medium-long term. In Austria, the survey shows that competitive products are still in the form of R&D/ prototypes. Key players have been identified and contacts have been established with interested ones. Considering the company has no presence in the country, a market strategy cannot be further elaborated at this stage. Surely, the Austrian market is interesting from the TPZ/ product 1 LCS module perspective. A likely scenario is that the commercialization will be done directly by TPZ or possibly through an alliance with a key player in the country, in both cases an entry point needs to be identified. 3 As described later in this document

17 17 of 46 3 Marketing strategy in Italy This chapter details the marketing strategy to be implemented by TPZ for the commercialization of the product 1 LCS module in Italy. 3.1 Market environment The outcomes of the analysis previously performed show that for the TPZ commercialization in Italy of the product 1 LCS module short-term opportunities are: - Only in the road transport of dangerous goods - And only within a small potential market including a limited number of customers (c. 30) that are: Solution/ service providers Infrastructure managers/operators who have already a GPS or EGNOS OS tracking & tracing platform and want to upgrade it Goods owners and transport operators who have already a GPS or EGNOS OS tracking & tracing platform and decide to upgrade it. Being a regulated application, European and Italian regulations and policies are the main drivers for product 1 LCS module penetration, tightly linked to EGNOS CS (position guarantee) introduction. EGNOS CS/ EDAS technology for road dangerous goods monitoring is supported by the Italy s Ministry of Transport (MIT) and by the best practice of a big user ( ) not only in Italy but also in other EU countries where the company operates. From the regulatory framework perspective, a regulation related to the compulsory use of EGNOS CS/ EDAS by 27 February 2014 is expected to be triggered by the ITS Directive. It is likely to envisage that following the ITS Directive 4, the MIT 5 could set a regulation related to the compulsory use of EGNOS CS/ EDAS based services for road dangerous goods transport, and 24 months for actuation after the deadline defined in the ITS Directive (i.e. users will have 24 months from 27 February 2012 to implement the regulation). The possible extension to HGV in Italy cannot be easily predictable today being EGNOS (OS and CS/ EDAS) value still not demonstrated to users (both from a business and from a technical perspective). The EGNOS introduction in HGV in Italy is foreseeable not before 2014, as strongly depending from the regulatory and policy framework at both European and national levels (the exploitation can benefit for example from the ITS Directive implementation). 4 According to the ITS Directive, Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 27 February Source: MIT interview

18 18 of 46 In this respect it shall be noted that the product 1 LCS module is to be integrated in the UIRNet platform (being already a customer of TPZ for the product 1 LCS module ), that plans to offer to its customers also services like the product 2 EGNOS augmentation service. Since UIRNet targets mainly HGV (and including dangerous goods applications), for TPZ the commercialization of EGNOS CS/EDAS based services to HGV will be done through the product 2 EGNOS augmentation service via UIRNet (as a solution/ service provider) The number of TPZ competitors for the product 1 LCS module in Italy seems to be very low and the intensity of competition seems to be weak. In fact, so far no strong competitors have been identified in Italy, while only a few research companies have implemented similar solutions (still in a premature/ prototype stage). 3.2 SWOT analysis The SWOT analysis for Italy focuses on the product 1 LCS module commercialization in the road transport of dangerous goods. The product 1 LCS module can rely on the following strengths: Superior product versus competitors solution/ Local competitors have poor products. The product 1 LCS module is the most advanced solution in place in Italy. As before mentioned, so far no strong competitors have been identified in Italy. A few research companies (e.g. Istituto Superiore Mario Boella) seem to have implemented similar solutions, but still in a premature/ prototype stage Weak intensity of competition. As before detailed, being a niche market, the business feasibility strongly relies on the capabilities, structure and heritage of the company. As a consequence, there is small chance for a new comer to enter this market Experience, knowledge and competitive advantage. The development of the product 1 LCS module is the results of various years of company investments and efforts, allowing TPZ to acquire know-how and competitive advantage Innovative aspects and qualification. One of the technical activities presently carried out by the company consists of the implementation of the necessary standardization process (i.e. through the CEN Workshop ), enabling to qualify the product 1 LCS module and enlarge the possibilities to be easily integrated in existing tracking & tracing systems/ solutions Product innovations ongoing. The company continues in investing and putting efforts to enhance the product in cooperation with key worldwide experts (e.g. the University of Calgary) Required accreditations. The product 1 LCS module has already raised user interest. is already using it for tracking & tracing its domestic fleet transporting oil and hydrocarbon and operating vehicles in other EU countries (e.g. France, Austria and East-

19 19 of 46 EU countries). also plans to extend the use of EGNOS CS/EDAS based services also to monitor the feet transporting chemicals. Additionally the best practice is supported by the MIT. The consequence is that the product 1 LCS module is gaining credit, and other potential Italian users have already demonstrated their interest. The main weaknesses for the product 1 LCS module is linked to the fact that EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortisation) is low, and after 2015 the market is saturated, thus after this year in order to be profitable, the exploitation into other applications/ markets/ countries is required. Actually, in Italy it is difficult to envisage a clear exploitation in other road applications beside the transport of dangerous goods before 2015 (as before detailed, the extension to HGV in Italy cannot be easily predictable today and UIRNet competition can be strong). The following opportunities have been identified for the product 1 LCS module : A suitable institutional and regulatory framework. EGNOS CS/ EDAS technology for road dangerous goods monitoring has the support from the MIT, that is expected to set a regulation related to the compulsory use of EGNOS CS/ EDAS based services for road dangerous goods transport. This regulation is expected to oblige all the potential users to adopt EGNOS CS/ EDAS technology by 27 February Should this regulation come into force, the market for product 1 LCS module is expected to grow. In fact by 2014 all the interested actors will be forced to develop their own platform, to purchase product 1 LCS module (or competing products) or decide to use an external providers External events. A recent event in France is expected to favour EGNOS market uptake also in the Italian professional road transport sector. The French decision to award the implementation of the HGV eco-tax collection 6 and control system to a group involving Autostrade per l Italia is expected to trigger opportunities in Italy as well (being Autostrade per l Italia a key stakeholder in Italy and already cooperating with TPZ on the use of EGNOS). The main threats are on: The legislation impact, in case the regulation is delayed and/ or is not as EGNOS CS/ EDAS friendly as nowadays envisaged. It appears therefore crucial to monitor the actual implementation of the regulation in Italy to understand and influence the process, because the penetration of product 1 LCS module could be: Slowed down if the regulation is delayed (only few volunteers are expected to use product 1 LCS module until a compulsory adoption is not required) Reduced in case the EGNOS CS/ EDAS differentiators (e.g. position accuracy and guarantee) are not specifically foreseen in the regulation. The lack of a robust and reliable EDAS service by beginning of 2011, based on: 6 despite the situation is not yet clear (April 2011)

20 20 of 46 A commitment from Europe to ensure long-term perspectives on EGNOS OS and EGNOS CS/EDAS The establishment of an EGNOS CS/EDAS service provision framework under adhoc key performance indicators The decision and the communication as soon as possible concerning a clear and long-term pricing policy for EGNOS CS/EDAS A fully transparent and friendly access to the EGNOS world (e.g. information system, documentation, help desk). 3.3 Marketing objectives The detailed analysis previously performed (and presented in the business plan) has shown that from the TPZ perspective, the opportunities lie in the commercialisation of the product 1 LCS module only. As before mentioned, a related business plan has been elaborated in three possible cases: 1. A base case in Italy 2. A worst case in Italy 3. A best case in Italy that considers also two possible customers in France and in Austria respectively. The marketing objectives for TPZ in Italy consist of the outcomes of the business plan-base case in Italy. Next figure shows the business plan-base case up to 2019 for the product 1 LCS module introduction in the Italian market, starting from 2011, under the assumptions of: An EGNOS CS/ EDAS friendly regulation in place (according to MIT, in Italy, a regulation obliging all the transporters of dangerous goods via road to use EGNOS CS/ EDAS based services by 27 February 2014 is likely expected) Today s absence of strong competitors in Italy (a few research companies have implemented similar solutions that are still in a premature/ prototype stage with respect to the product 1 LCS module ) 80% share by 2014 of the potential market (c.30 players, i.e. the whole Italian market of service/ solutions providers) 7 One-off price of 80, % of yearly license fee 8. 7 The considered size of potential market for road dangerous goods in Italy is under-estimated, as it includes only solution/ service providers, not end-users with their own platform, or other systems such as Albotrasporti, SISTRI, etc.); however also the possible increasing/ decreasing of the number of solution/ service providers during the time-lag is not considered. 8 Revenues due to possible customizations are not considered.

21 21 of 46 Figure 1 product 1 LCS module business plan outcomes (base case) Thus, the marketing objectives of TPZ in Italy consist in the achievement of the outcomes of the business plan-base case, i.e.: - Revenues of 0.3 m in 2011 and in 2012, growing to 0.6 m in 2013 and 1.2 m in 2014 (in line with the Directive) - EBITDA margin of c. 50% in 2011 and in 2012, growing to c. 60% in 2013 and c. 70% in Marketing strategy This section presents the marketing strategy identified for TPZ to target the above objectives, related to the product 1 LCS module commercialization in the road transport of dangerous goods. Since such objectives are tightly linked to the underlying assumptions, a suitable marketing strategy has to be conceived with the purpose of keeping the underlying assumptions (i.e. the assumptions of the business plan-base case above listed: an EGNOS CS/ EDAS friendly regulation in place, absence of strong competitors in Italy, high share of the potential market by 2014, target price). The marketing mix model has been considered as the most effective for the marketing strategy, tailored on elements identified as key success factors: - Product. In Italy TPZ commercialises only the product 1 LCS module - Place (Distribution). TPZ commercialises by its own (therefore not relying on resellers). As a first stage the only the road dangerous goods market will be addressed and in detail only solution/ service providers will be considered as potential customers. Later, also end-users in road dangerous goods transport with their own platform (such as

22 22 of 46 Federchimica, Albo Autotrasporto, the Italy s Ministry of Environment SISTRI system) could be targeted - Promotion. From initial estimations solution/ service providers (the first target for product 1 LCS module ) in Italy are c. 30 and the penetration of the EGNOS CS/ EDAS based products/ services in Italy is driven by the regulatory path in the country, tightly linked to the policy framework at EU level. Additionally the project has demonstrated that a well conceived promotion programme is necessary to create the proper awareness and possibly trigger a snowball effect. Therefore, a general promotion is foreseen combined with a one-to-one commercial action, targeted on the 3 countries and EU at first. The general promotion enables to establish direct contacts, to be further individually deployed through the one-to-one commercial action - Price. product 1 LCS module is sold upon a one-off price at the purchase plus a yearly licence fee basis. 3.5 Marketing actions In this section, the above identified marketing strategy is translated into marketing actions, i.e. concrete actions to be implemented in the short-term (up to 2012). Close up the regulatory process. As before mentioned, the commercialization of product 1 LCS module strongly depends on the penetration of the EGNOS CS/ EDAS based products/ services in Italy, driven in turn mainly by a suitable national regulation to be established. Such a national regulation has the role of triggering the adoption of EGNOS CS/EDAS technologies and services, and the relevant timing. Thus it can support a nationwide commercialization of the product 1 LCS module for the transport of dangerous goods via road. In case no suitable regulation is in place only a small percentage of the potential market (formed by few volunteers ) can be targeted by the products. In this respect MIT as institutional stakeholder and as business stakeholder are the key players. In the frame of, TPZ is supporting to implement a best case in Italy for hydrocarbon and oil transport and to extend it to the chemical transport, with the involvement of the MIT. In parallel TPZ is following and actively taking part to the activities presently ongoing in Italy and coordinated by the MIT in relation to the implementation of the ITS Directive in Italy. Such effort has to be continued by TPZ also after conclusion. Close up the best case. Considering its local role and capability to effectively create a snow ball effect, the effort put by TPZ in supporting has to be extended also after the project conclusion. In only one OBU provider, i.e. Click & Find, has been concretely involved. In parallel, effort has been put to possibly stimulate the other OBU providers to enhance their solution for integrating the EGNOS CS/EDAS based service by means of the product 1 LCS module.

23 23 of 46 Such effort initiated in the frame of has to be continued also after the end of the project with the support of. Continue in supporting the institutional bilateral working groups. Institutional bilateral working groups (Italy-France and Italy-Austria) have been established during and involving MIT and MEDDTL, partners of the project, and the BMVIT (the Federal Ministry for Transport, Innovation and Technology) through BRI partner of the project. The goal is to define a common/ harmonised framework and path related to the use of EGNOS for the road transport, starting from the dangerous goods. Continuing in supporting these groups also after the project conclusion is of a strategic importance, in view of the extension to other countries and road applications (such as HGV). Keep the link with the UNECE/OTIF Working Group on Telematics, established during the project, being such a Working Group the proper panel of experts where continuing in promoting the benefits of EGNOS CS/EDAS based services for the dangerous goods transport, and disseminating the knowledge concerning the CEN Workshop Agreement (to possibly gather further voluntary users). TPZ shall continue in regularly participating to UNECE/OTIF working group meetings on telematics. Monitor the evolution concerning the use of satellite navigation in the transport sectors in Europe, especially for road/ HGV. The evolution of satellite navigation applications in Europe (naturally starting with HGV and the French eco-tax case) should be actively monitored to identify potential opportunities. Keep track of most recent evolutions can be done also via continuous interaction with industry players. Promotion. Communication is fundamental. A communication plan has to be elaborated according to the promotion objectives before detailed, and identifying: - Target key stakeholders to whom address the communication. Key stakeholders include customers (according to market segmentation before presented) and decision-makers (such as the institutions, i.e. Italy s Ministry of Transport, relevant regulatory bodies 9, EU institutions) - And main tools, such as: A programme of events, at national and EU level, including those organized by TPZ and the participation to events/ fairs/ exhibitions of interest (previously selected) Promotion material, including data sheets and publication on specialised magazines. Events can be the occasions for inviting key stakeholders and discussing with them on new functionalities and possibly presenting them product enhancements. 9 For example the Autorità Nazionale della Sicurezza Ferroviaria, for rail

24 24 of 46 Extend the best case to rail. In order to create opportunities in other markets, it is necessary to start exploring the rail sector in Italy. In the frame of, stakeholders/ players in the Italian rail industry having a key role in the implementation of a best case in the industry have been already identified. Taking profit of the credit gained thanks to and of the cooperation with and the MIT, the next steps shall be to enter in contact with these players (institutions and solution/ service providers) and implement an best case on rail as a showcase to demonstrate EGNOS CS/ EDAS benefits. Similarly to what done for road, for example by means of EU R&D funds, a best practice could be triggered in Italy and at European level (starting from the countries identified in as the most interesting for the rail sector).

25 25 of 46 4 Marketing strategy in France This chapter details the marketing strategy to be implemented by TPZ for the commercialization of the product 1 LCS module in France, considering its presence in the country through its subsidiary TPZ-France and its associate company Novacom. 4.1 Market environment As resulting from the deep analysis elaborated in WP (as previously mentioned), the market environment in France does not suggest that a possible commercialization of the product 1 LCS module is feasible for TPZ, despite: The company could rely on its subsidiary TPZ-F The market conditions in France seem to be favourable for EGNOS: HGV 11 eco-tax. Planned in the frame of the «Grenelle de l environnement», the HGV eco-tax is a distance based toll system expected to be operational in France by On January 14th, 2011 the MEDDTL designated Autostrade per l'italia (ASPI) to be awarded the contract for financing, design, construction, operation and maintenance of the heavy goods vehicle eco-tax collection and control system. The eco-tax project means that French and foreign heavy goods vehicles over 3.5 tons pay for use of continental France's 15,000 km of national and departmental roads. Each heavy goods vehicle subject to the tax will carry onboard equipment for GNSS and communication of the taxable base data. The proposed technology will be EGNOS enabled. This scheme is designed for interoperability according to European directive. The service provider could offer other services like the tracking of dangerous goods transport as an add-on service. Yet, owing to the appeal of one of the competitor bidders suspecting irregularity, the tender had been frozen. However, the French government has in turn appealed the decision to the Conseil d'etat. Thus it is understood this will likely delay the development by some months 13 Strong interest of institutions. The MEDDTL has a strong interest in stimulating the use of EGNOS in various sectors, especially for transport applications. For several years the MEDDTL has been elaborating a National Satellite Applications Plan and is presently very active concerning the ITS Directive. The MEDDTL, involved in the project, has strongly supported the standardization work carried out in the project and its promotion in the frame of the UNECE/OTIF working group on telematics (as detailed later in this document) presence in France. Via its subsidiary already involved in the demonstration, the best case has been already extended to France. In fact the 10 Reported in the D5.1 Business and Exploitation Plan 11 Heavy Good Vehicles 12 It is estimated that 600,000 French and 200,000 foreign trucks will have accounts (source 13 Source MEDDTL

26 26 of 46 EGNOS-based system is already used by France to track and trace some of its operational tanker transporting dangerous material in the country (some OBUs are already installed on France operational tankers). On the basis of the concrete experience acquired in, the scenario of TPZ-F as a support to TPZ for product 1 LCS module commercialization in France is not effective and thus not feasible. However TPZ can also rely on its presence in France through its associate company Novacom, that offers satellite navigation products (tracking & tracing solutions and services) for various markets/ applications, mainly in the transport sectors (road and logistics). A possible scenario is that TPZ sells the product 1 LCS module to Novacom that in turn will upgrade its products offer from GPS to EGNOS. 4.2 SWOT analysis On the basis of the above described market environment, the SWOT analysis for TPZ in France focuses on the sale of product 1 LCS module to Novacom. The strengths lie in the above described market conditions in France, favourable for EGNOS. These can be used as arguments to drive Novacom s decision in the direction of offering EGNOS CS/EDAS based tracking & tracing services (and thus upgrading its products by integrating the product 1 LCS module ). In fact the HGV eco-tax opening in France the possibility to various road applications (besides dangerous goods transport), the best case extension in the country and the support of French institutions, can possibly convince Novacom in differentiating its products offer and thus having a competitive advantage with respect to its competitors. The main weaknesses result from the fact that in order to integrate the product 1 LCS module, some developments have to be done in the Novacom solutions elements (namely the tracking & tracing devices and the applications). Novacom has only preliminarily investigated the impacts of such developments, with no clear strategy/ commitment. This is mainly due to the lack of business attractiveness related to the possible provision or offer of EGNOS-based services to its customers. Opportunities are in the fact that contacts with Novacom have been already established in the frame of and there are already some research activities in plan, involving TPZ and Novacom, aimed at integrating the product 1 LCS module in the Novacom solutions, enhancing them to offer EGNOS-based tracking & tracing products/ services and evaluating the relevant business opportunities in various markets/ applications (road among them). The main threat lies in the fact that Novacom definitely decides that enhancing its product offer from GPS to EGNOS is of no interest.

27 27 of Marketing objectives The marketing objectives for TPZ in France are set by the outcomes of the business planbest case that considers also two possible customers in France and in Austria respectively, and the customer in France being Novacom. Thus the marketing objectives for TPZ in France lie in convincing Novacom to purchase the product 1 LCS module and to enhance its products offer from GPS to EGNOS. 4.4 Marketing strategy As before mentioned, the marketing mix of product, place (distribution), promotion and price has been identified as the most effective model for the marketing strategy. In the case of France, the strategy has to be driven by the marketing objectives before detailed. Product. product 1 LCS module. Place (Distribution). The customer in France is Novacom that is a TPZ associate company. Thus the suitable distribution is through TPZ. Promotion. Working meetings are periodically held between TPZ and Novacom aimed at information and knowledge transfer. Price. The same pricing scheme like for Italy shall be adopted. 4.5 Marketing actions Marketing actions to be implemented in the short term shall be devoted to removing obstacles (elements of weaknesses and threats) and possibly enforcing strengths and opportunities. Supporting Novacom in evaluating impacts, from the technical viewpoint, derived from the integration of the product 1 LCS module in its solutions (especially in the tracking & tracing devices). TPZ shall provide support to Novacom in this direction. This also includes the identification of tracking & tracing devices already available on the market, that are EGNOS enabled and capable to be easily interfaced with the product 1 LCS module. Supporting Novacom in evaluating business opportunities for EGNOS-based products in various markets/ applications (starting from the road sector). TPZ shall provide support to Novacom in this direction. The aim is to encourage and convince Novacom to upgrade its products offer. Supporting Novacom in identifying/ setting-up research projects and initiatives to start the use of the product 1 LCS module. The purpose is to build the opportunity enabling Novacom to get familiar with EGNOS, raise its interest and experiment with the product 1 LCS module.

28 28 of 46 5 Marketing strategy in Austria This chapter details the marketing strategy to be implemented by TPZ for the commercialization of the product 1 LCS module in Austria, considering that the company has no already established alliances or subsidiary in the country - but has one in Germany. 5.1 Market environment Market The outcomes of analyses performed previously in show that in Austria opportunities for commercialising product 1 LCS module are: In the road transport of dangerous goods (not before 2012) In the rail market in the medium-long term (as previously mentioned, R&D activities are needed to customize/ tune the product 1 LCS module for the rail environments). In the business plan the target objective formulated for Austria was having one customer for the LCS module by 2012 (best case). Reaching this goal will require considerable marketing and sales efforts. Today there is no national best case using EGNOS for a regulated application like in Italy for dangerous goods transport, and authorities rather take the role of followers and observers of European developments. On top, the Austrian market for dangerous goods transport is rather small. The largest part of dangerous goods transports are performed by about 2,000 tankers on road. Apart from a European regulation mandating dangerous goods tracking, analyses led to the conclusion that the most promising entry point in Austria seems to be HGV tolling, if tolling is extended to other roads than highways and hybrid tracking solutions (microwave/gnss) are deployed. Then a total stock of 55,000 trucks above 3.5t (HGV), and 17,000 semitrailer trucks would be affected (Statistik Austria, ) and dangerous goods tracking will be a promising add-on service. While for dangerous goods tracking the Italian approach might become a benchmark, the example of the French eco-tax scheme might become an important enabler for tolling solutions. In the following chapters details will be given on how to target the Austrian market and reach the goal laid down in the business plan. While the overall strategy will be decided by TPZ, market penetration could be carried out by its German subsidiary Telespazio Deutschland GmbH (TPZ-DE). This approach is rather common in business to business markets since the German market is more than ten times the Austrian in size. Thus, for sales and promotion there are synergies due to the common language and geographical vicinity of the two countries. 14

29 29 of 46 Stakeholders Stakeholders in Austria that might be interesting for marketing activities are: Institutional stakeholders: - The Ministry of Transport, Innovation and Technology (BMVIT). There both the department of transport concerned with regulations for the safety of dangerous goods transport, the innovation department concerned with GNSS technology and the ITS department play a role - The Ministry of the Interior (BMI) responsible for controlling the implementation of the rules and regulations issued by BMVIT regarding the transport of dangerous goods. This Ministry is also concerned with emergency operations in case of an accident - Austriatech, the Federal Agency for Technological Measures Ltd., was set up by the Austrian Ministry of Transport, Innovation and Technology (BMVIT) to stimulate the development of ITS and intermodal transport - ASFINAG, the operator of the Austrian highway infrastructure. Commercial stakeholders service/ solution providers - Teleconsult - Kapsch Trafficom - EFKON. Commercial stakeholders dangerous goods transportation - (Petro)chemical industry: OMV - Transport industry: Klacska 15. Competition TeleConsult Austria GmbH an SME and research organisation developing positioning and navigation solutions for transport and mobility - is the only potential competitor for the provision of EGNOS augmentation in Austria. In their research project OEGNOS, co-funded by the Austrian Federal Ministry for Transport, Innovation and Technology, they adopted EGNOS data from EDAS to derive an augmentation service for the Alpine region. Parameters are provided via terrestrial communication to overcoming the shading problems resulting from the Alpine topography. The prototype currently covers a rather small mountainous area. According to the exploitation plan it is foreseen to set up a GNSS Server Austria and to provide services on a commercial basis (in Austria). Yet, the company is currently mainly engaged in research (funded in the frame of EU and National programmes) and offers niche applications to the public on a limited scale. Unless public bodies or investors take a major interest in this 15 Paul Klacska GmbH,

30 30 of 46 service, a roll-out is rather unlikely. A strategic investor would be required to implement this service nationwide and to adopt it to the specifics of road transport applications. Regulatory framework The publication of the ITS Directive was welcomed by BMVIT and a national conference on ITS was held shortly after. The achievements and measures in place in Austria were pointed out in related press releases. The publication of a National Action Plan for Telematics was announced for the beginning of It will focus on ITS infrastructure and on nationwide information services, mainly to support the mode choice decisions of individuals. Currently there is no information on specific telematics services that might be planned for HGV. As concerns initiatives in dangerous goods transport, BMVIT regularly participates in the UNECE/OTIF Joint Telematics Subgroup for HAZMAT transport on road, IWW and rail. This initiative is seen as most important, since it intends to identify topics where regulations should be suggested to the respective authorities. On top, functional requirements of a telematics platform for dangerous goods transport are agreed upon, mainly from an institutional standpoint (including fire brigades, ambulance, etc.). In summary, Austrian institutions seem to take rather a wait and see role: keeping well informed on what neighbouring countries and industry intend to do in tracking and tracing of dangerous goods transports, but not setting the agenda. As to HGV, tolling commenced 2004 in Austria. The Austrian road charging scheme for HGV is based on the Directive 2006/38/EC of the European Parliament and of the Council of 17 May 2006 amending Directive 1999/62/EC on the charging of heavy goods vehicles for the use of certain infrastructures. It states that as of 2012 tolls and/or user charges shall be applied to all vehicles (article 7, 2(b)). The term vehicle means a motor vehicle or articulated vehicle combination intended or used exclusively for the carriage by road of goods and having a maximum permissible laden weight of over 3.5 tons (article 1(d)). It will be interesting to see if the Austrian ITS roadmap addresses HGV road tolling, eco-tax or urban regulated traffic. Market trends Institutional stakeholders in Austria are closely observing developments in the EC regarding tracking of dangerous goods transport. The Ministry of Transport, Innovation and Technology (BMVIT) expects an EC-wide regulation on the implementation of a platform for tracking dangerous goods transport. They feel the need for international standardization, certification of procedures, and an IT security concept. Therefore, BMVIT puts a lot of effort in standardisation, and regularly attends the UNECE/OTIF Joint Telematics Subgroup for HAZMAT transport, which is seen as a good option for preparing international action. The approach followed in (central server distributing data) seems to be in line with what is the state of discussion. For the BMVIT EGNOS is interesting mainly for the integrity information provided. Improved accuracy is not considered extremely important in case of accidents. Austriatech, the Federal Agency for Technological Measures Ltd., recently submitted a proposal for an ESA project (SATURN) on the transport of dangerous goods in the Alpine