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Acoustic Treatment on

Diesel Generator Set


Marketing Plan 2010

ISTIQ Noise Control Sdn Bhd


28-2, Jalan Sri Permaisuri 9, Bandar Sri Permaisuri,
Cheras,, Kuala Lumpur. 56000
+603-9172 7205/6
+603-9172 7204
nonoise@istiq.com
Confidentiality Agreement

The undersigned reader acknowledges that the information provided by


_______________ in this marketing plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of _______________.

It is acknowledged by reader that information to be furnished in this marketing plan is in


all respects confidential in nature, other than information which is in the public domain
through other means and that any disclosure or use of same by reader, may cause serious
harm or damage to _______________.

Upon request, this document is to be immediately returned to _______________.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a marketing plan. It does not imply an offering of securities.


Table of Contents

1. Executive Summary....................................................Error! Bookmark not defined.


2. Situation Analysis.......................................................Error! Bookmark not defined.
2.1. Market Needs ......................................................Error! Bookmark not defined.
2.2. The Market ..........................................................Error! Bookmark not defined.
2.2.1. Market Trends..............................................Error! Bookmark not defined.
2.2.2. Market Growth.............................................Error! Bookmark not defined.
2.3. The Company ......................................................Error! Bookmark not defined.
2.3.1. Mission.........................................................Error! Bookmark not defined.
2.3.2. Product Offering ..........................................Error! Bookmark not defined.
2.3.3. Positioning ...................................................Error! Bookmark not defined.
2.3.4. SWOT Summary..........................................Error! Bookmark not defined.
2.3.4.1. Strengths ...............................................Error! Bookmark not defined.
2.3.4.2. Weaknesses...........................................Error! Bookmark not defined.
2.3.4.3. Opportunities ........................................Error! Bookmark not defined.
2.3.4.4. Threats ..................................................Error! Bookmark not defined.
2.4. Competition.........................................................Error! Bookmark not defined.
3. Marketing Strategy.....................................................Error! Bookmark not defined.
3.1. Value Proposition................................................Error! Bookmark not defined.
3.2. Critical Issues ......................................................Error! Bookmark not defined.
3.3. Financial Objectives............................................Error! Bookmark not defined.
3.4. Marketing Objectives ..........................................Error! Bookmark not defined.
3.5. Target Market Strategy........................................Error! Bookmark not defined.
3.6. Messaging............................................................Error! Bookmark not defined.
3.6.1. Branding.......................................................Error! Bookmark not defined.
3.7. Strategy Pyramids ...............................................Error! Bookmark not defined.
4. Marketing Mix ...........................................................Error! Bookmark not defined.
4.1. Product Marketing...............................................Error! Bookmark not defined.
4.2. Pricing .................................................................Error! Bookmark not defined.
4.3. Promotion ............................................................Error! Bookmark not defined.
4.3.1. Advertising...................................................Error! Bookmark not defined.
4.3.2. Public Relations ...........................................Error! Bookmark not defined.
4.3.3. Direct Marketing..........................................Error! Bookmark not defined.
4.4. Service.................................................................Error! Bookmark not defined.
4.5. Sales Plan ............................................................Error! Bookmark not defined.
4.5.1. Sales Strategy...............................................Error! Bookmark not defined.
4.5.2. Sales Process................................................Error! Bookmark not defined.
4.6. Implementation Schedule....................................Error! Bookmark not defined.
5. Financials ...................................................................Error! Bookmark not defined.
5.1. Break-even Analysis ...........................................Error! Bookmark not defined.
5.2. Sales Forecast......................................................Error! Bookmark not defined.
5.3. Expense Forecast.................................................Error! Bookmark not defined.
5.4. Contribution Margin............................................Error! Bookmark not defined.
6. Controls......................................................................Error! Bookmark not defined.
6.1. Implementation....................................................Error! Bookmark not defined.
Table of Contents

6.2. Keys to Success...................................................Error! Bookmark not defined.


6.3. Market Research..................................................Error! Bookmark not defined.
6.4. Contingency Planning .........................................Error! Bookmark not defined.
Acoustic Treatment on Diesel Generator Set Marketing Plan 2010

1. Executive Summary
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2. Situation Analysis
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2.1. Market Needs


Whenever there is a power failure supplied by the Tenaga Nasional Berhad (TNB), Diesel
Generators Set is normally will be used as an alternaltive back up. This requirement is usually
required by factories and buildings in order to ensure continous supply of electrical power.
However, Diesel Generator Sets is also known to be one of the source to emit toxic exhaust gases
and annoying noise.

In order to control the emmision, the Department of Environment (DOE) as set a guidelines under
Section 36, Clean Air Act 1978 - which among others requires that Diesel Generator Sets to be
installed together with acoustic treatment system. The system shall consist of Discharge
Silencers, Intake Silencers, Exhaust Silencers and Acoustic Doors.

As an acoustic company which providing those products required by the Diesel Genset suppliers,
we are in position to provide those needs. The market is expected to grow as the requirement of
the backup power and environment awareness increases.

2.2. The Market


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Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
OEM Genset Suppliers 0% 0 0 0 0 0 0.00%
Electrical Contractors 0% 0 0 0 0 0 0.00%
End Users 0% 0 0 0 0 0 0.00%
Total 0.00% 0 0 0 0 0 0.00%

Market Analysis (Pie)

2.2.1. Market Trends


Since the requirement to control the noise and exhaust emmission is impose by the DOE,
therefore the needs is basically to comply to that requirement. As such, the trend will
continue as it is before which are:-

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 Products & system that is acceptable to the DOE


 The lowest price
 Fast Delivery - within 2-5 days
 Customer Service - Many customers requires these equipment to be delivered
together with the Generators Set, so shipment must arrive when they are
promised, otherwise the project sechedule will be effected.

Market Analysis (Trends)

0
2010 2011

2.2.2. Market Growth


The requirement of the back up power has experienced an average annual participation
growth rate of 6% for the past five years. This is indicative of the growing needs of the
market we serve. Based on power requirement projections, we expect to experience
increased participation growth between 9% and 11% annually over the next three
years. These trends are monitored, and to the degree possible, used to help predict future
program demands.

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Market Analysis (C.A.G.R)

100.00%

90.00%

80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
OEM Genset Suppliers

2.3. The Company


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2.3.1. Mission
ISTIQ Noise Control Sdn Bhd is a full-service engineering company that specializes in
noise abatement for building and industrial application. Since 1995, ISTIQ has
contributed to the success of over 200 projects nationwide with its acoustical expertise.
From the noise survey of a site in Sabah, to the supply of acoustical enclosures in Penang,
and the construction of an acoustical compressor building for a nitrogen manufacturing
plant in Usan, Nigeria - ISTIQ delivers guaranteed noise control solutions - when you
need them, and at affordable prices.

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2.3.2. Product Offering


A typical design of Acoustic treatment for genset room normally will reduce the noise
level down to 75 to 85 dB(A) measured at 1 meter away from the genset house. However,
the noise can be designed to achieve better if the requirement call for it.

In Malaysia, the Department of Environment (DOE) guidelines on the Acoustic


Treatment is to control the noise level to 65 dB(A) during daytime and 55 dB(A) during
nighttime, measured at the boundary of premises.

Control At Source

The best way to treat noise is always to do it at the source and for Generator Sets, there
are three major noise sources produce by the gensets: -

 Noise emitted by the Radiator Fan


 Noise emitted by the Exhaust System
 Noise emitted by mechanical engine itself

Acoustic Equipment for Noise Control treatment in the generator sets room mainly
consists of the following: -

 Fan Discharge Silencers


 Intake Silencers
 Exhaust Silencers
 Acoustic Doors

2.3.3. Positioning
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2.3.4. SWOT Summary


The SWOT analysis covers strengths, weaknesses, opportunities, and threats. Strengths
and weaknesses are generally internal attributes, which we can address by changing our
business. Opportunities and threats are generally external.

Overall, the mix is exciting. We live in an age of growth, change, and business
revolution. The Internet offers us opportunities and threats. We need to make our dealing
with it one of our biggest strengths, to minimize our weaknesses.

2.3.4.1. Strengths

1. True expertise. All of our staff know this area very well. Our
experience and expertise is at par if not better than anybody we know
of in this particular niche area.

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2. ISO Certified Company. We are one of the two caompny that have the
ISO Certification.
3. Well Establish Execution System. We have a very well establish
system to deliver products reqyuiremnt in a very short time.
4. Contacts. Years of industry experience means a lot of word-of-mouth
marketing, contacts, and networking.

2.3.4.2. Weaknesses

1. Price in not competitive. Our price as compare with the next market
leader is about 15% higher.
2. Weak in Comunication. The communication between production and
sales, sometimes lead to waste of resourse i.e, manpower and
transportation.
3. Lock set problem - Acooustic Door. Unending problem on the lockset.
Pull down our margin for replacement and repair
4. Lack of Marketing Staff. We only one dedicate sale force to look in this
market. The market is big enough for at least one more sale staff.

2.3.4.3. Opportunities

1. Requirement of Fire Rate Door. Should our door can be fire rated
certified, the growth rate can be at least 10% a year.
2. Awareness of the Environment. Malaysian goverment just committed
to reduce the emission of CO2. We should look into add-on product
that not only reduce noise but the CO2 as well.
3. Oversea Market. Middle East and Africa market is growing. This
technology is still not widely use around this area.
4. Internet potential for selling products to other markets

2.3.4.4. Threats

1. Future/potential competition from within your own staff


2. A slump in national and world economy
3. Inforseen govermental regulatory actions.
4. Difficulty in getting the skill workers

2.4. Competition
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3. Marketing Strategy
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3.1. Value Proposition


Providing quality service is critical. Our business and individual clients judge our competence
based on how we treat them and the given problem that need to be solved. This is their primary -
and in many cases their only - measurement of our capabilities. Our Value Proposition to the
client is that we contribute to their design, engineering and project planning work. We will work
closely with our clients to make sure we know what their goals are, and where they want to be in
the future so that every service we provide is personal and custom-tailored for our clients.

3.2. Critical Issues


The most critical issue is repeat business. We can't build this company on a faulty foundation; we
have to have a core group of satisfied clients who come back to us on a regular basis. We can't
afford to spend the capital it would take to generate new clients constantly. The repeat business
costs about a tenth as much in sales and marketing as the new client.

Repeat business is built on the correct strategic mix of excellence in delivery, clear
communication of promise and scope, and follow through.

Most of our competitors build on a structure that has the partners selling the jobs and new hires,
bright young people without a lot of experience, delivering. We can't afford to follow that lead.
We can use a staff to leverage some of the footwork and analysis work, but ultimately our work
must be our own.

3.3. Financial Objectives

1. To grow our sales more than 5% over during a three-year period, from RM1.8 in 2010 to
$2.3 million in 2012.
2. To significantly decrease our sales and marketing expenses as a percent of sales: from
34.5% this year to 26% by 2012.
3. To increase contribution margin from 5% to 8% over three years.

3.4. Marketing Objectives

1. We need to establish ourselves as experts. This means being quoted in major trade press,
speaking at industry events, and gaining recognition. Our measurable and specific
objective is to be introduced as an acoustic experts and a reliable engineering company.

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1. We need brand-name reference clients. By the end of this year, we need three major
brand names we can cite as clients. We need to be able to reference by name and contact
phone number.

1. We need at least one client in each of four main regions. Nothern, Central, Southern and
Eastern region.

3.5. Target Market Strategy


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3.6. Messaging
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3.6.1. Branding
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Target Market Messaging

Market Segments Messaging


OEM Genset Suppliers -
Electrical Contractors -
End Users -

3.7. Strategy Pyramids


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4. Marketing Mix
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4.1. Product Marketing


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4.2. Pricing
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4.3. Promotion
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4.3.1. Advertising
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Milestones

Advertising Start Date End Date Budget Manager Department


Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Other 1/1/2006 15/1/2006 $0 ABC Department
Total Advertising Budget $0

4.3.2. Public Relations


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Milestones

PR Start Date End Date Budget Manager Department


Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Other 1/1/2006 15/1/2006 $0 ABC Department
Total PR Budget $0

4.3.3. Direct Marketing


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Milestones

Direct Marketing Start Date End Date Budget Manager Department


Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Other 1/1/2006 15/1/2006 $0 ABC Department
Total Direct Marketing $0
Budget

4.4. Service
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4.5. Sales Plan


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4.5.1. Sales Strategy


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4.5.2. Sales Process


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Sales Account Plan

Target Accounts History Status Annual Key


Sales Account
Potential Manager
Account Name - - $0 -
Account Name - - $0 -
Other - - $0 -

Existing Key Accounts History Status Annual Key


Sales Account
Potential Manager
Account Name - - $0 -
Account Name - - $0 -
Other - - $0 -
Total $0

Sales Pipeline

Opportunity Customer Sales Lead Sales Forecast Sales Forecast


Name Contact Region Source Category Amount Phase Close
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Opportunity - - - - $0 - 1/1/2007
Name
Total $0

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4.6. Implementation Schedule


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Milestones

Advertising Start Date End Date Budget Manager Department


Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Other 1/1/2006 15/1/2006 $0 ABC Department
Total Advertising Budget $0
PR Start Date End Date Budget Manager Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Other 1/1/2006 15/1/2006 $0 ABC Department
Total PR Budget $0
Direct Marketing Start Date End Date Budget Manager Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Other 1/1/2006 15/1/2006 $0 ABC Department
Total Direct Marketing $0
Budget
Web Development Start Date End Date Budget Manager Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Other 1/1/2006 15/1/2006 $0 ABC Department
Total Web Development $0
Budget
Other Start Date End Date Budget Manager Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Name me 1/1/2006 15/1/2006 $0 ABC Department
Other 1/1/2006 15/1/2006 $0 ABC Department
Total Other Budget $0
Totals $0

5. Financials
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5.1. Break-even Analysis


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Fixed Costs

Cost
Rent or Lease $0
Professional Services $0
Payroll $0
Interest Payments $0
Utilities & Telephone $0
Non-discretionary Marketing Expenses $0
Other $0
Total Fixed Costs $0

Break-even Analysis

Monthly Revenue Break-even $0

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $0

Break-even Analysis

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Acoustic Treatment on Diesel Generator Set Marketing Plan 2010

$12

$10

$8

$6

$4

$2

$0

$0 $2

5.2. Sales Forecast


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Acoustic Treatment on Diesel Generator Set Marketing Plan 2010

Sales Forecast
2010 2011 2012
Sales
Row 1 $0 $0 $0
Row 2 $0 $0 $0
Row 3 $0 $0 $0
Total Sales $0 $0 $0

Direct Cost of Sales 2010 2011 2012


Row 1 $0 $0 $0
Row 2 $0 $0 $0
Row 3 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

Sales Monthly

$1

$1

$1

$1

$1

$1

$0

$0

$0

$0

$0
Jan Feb Mar

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5.3. Expense Forecast


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Marketing Expense Budget


2010 2011 2012
Name me $0 $0 $0
Name me $0 $0 $0
Other $0 $0 $0
------------ ------------ ------------
Total Sales and Marketing $0 $0 $0
Expenses
Percent of Sales 0.00% 0.00% 0.00%

Monthly Expense Budget

$1

$1

$1

$1

$1

$1

$0

$0

$0

$0

$0
Jan Feb Mar

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5.4. Contribution Margin


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Contribution Margin
2010 2011 2012
Sales $0 $0 $0
Direct Costs of Goods $0 $0 $0
Costs of Goods $0 $0 $0
------------ ------------ ------------
Cost of Goods Sold $0 $0 $0

Gross Margin $0 $0 $0
Gross Margin % 0.00% 0.00% 0.00%

Marketing Expense Budget 2010 2011 2012


Name me $0 $0 $0
Name me $0 $0 $0
Other $0 $0 $0
------------ ------------ ------------
Total Sales and Marketing $0 $0 $0
Expenses
Percent of Sales 0.00% 0.00% 0.00%

Contribution Margin $0 $0 $0
Contribution Margin / Sales 0.00% 0.00% 0.00%

Contribution Margin Monthly

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$1

$1

$1

$1

$1

$1

$0

$0

$0

$0

$0
Jan

6. Controls
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6.1. Implementation
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6.2. Keys to Success


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6.3. Market Research


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6.4. Contingency Planning


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Appendix

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Row 1 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 2 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 3 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Row 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Appendix

Marketing Expense Budget


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Sales and Marketing Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Percent of Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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Appendix

Contribution Margin
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Direct Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Cost of Goods Sold $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name me $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Sales and Marketing Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Percent of Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Contribution Margin $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Contribution Margin / Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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