Professional Documents
Culture Documents
JUNE 5, 2015
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TABLE OF CONTENT
EXECUTIVE SUMMARY...........................................................................................3
MARKET ECONOMIC PROFILE...............................................................................4
STEWART & STEVENSON COLOMBIA ORGANIZATION AND FACILITIES.........8
CONSTRUCTION MARKETINFORMATION..........................................................11
BUSINESS STRATEGIES.......................................................................................17
OBJECTIVES...........................................................................................................18
FINANCIAL INFORMATION....................................................................................18
MARKETING BUDGET...........................................................................................20
SALES FORECAST.................................................................................................21
CONTACT INFORMATION.....................................................................................21
EXECUTIVE SUMMARY
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Stewart & Stevenson, founded in Houston, Texas in 1902, is a manufacturer and
distributor of products and services for the oil and gas, marine, construction, power
generation, transportation, material handling, mining and agricultural industries. We
serve domestic and global markets with equipment, rental units, parts, and service
through a strategic network of sales and service centers in domestic and
international locations.
Stewart & Stevenson de Las Americas Colombia, who has 100% parts of the
corporate in Houston, has more than 17 years in Colombia with experience in
distribution. At the moment we represented the following brands: S&SC Gen set,
MTU engines, Deutz Engines, S&S oil & gas products, Allison transmission, Terex
Compact equipment, Terex Trucks, Bomag Asphalt products, Genie Platforms,
Fuchs material handlers, Donaldson filters. We have more than 2,000 customers
which we service with the best after sales support.
Also we must be useful that exists more than 1700 units that require after-sales
service, and this situation represent and excellent opportunity to realize an
approach to these customers and offer them our services that includes:
professional care, technical service, machine inspection, training, machine
maintenance program, stock of parts and technological platform to registry and
follow up guarantees and services cases.
We are planning for an initial investment of US 3.3 Million for the beginning,
development and expansion of the CASE distributor in Colombia. This includes
the initial equipment’s and parts inventory, special tools, the improvement of the
facility, warehouse and offices according CASE standards using the last
technologies, marketing activities, the use of a distribution vehicle and service
trucks to deliver parts and service on time, We are in complete agreement to work
under distributor CASE standards requirements, according to the brand image and
product exposure, financial stability for the company and reaching sales target.
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MARKET ECONOMIC PROFILE
Colombia economy
The president Juan Manuel Santos will seek to conclude peace negotiations with
left-wing guerrillas and address other long-standing social ills. GDP growth will
slow in 2015 to 3.4% but will pick up thereafter, helped by improvements to the
business environment, sound macroeconomic management and investment
growth, but lower global oil prices present a risk.
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Source: Portafolio.com
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STEWART & STEVENSON COLOMBIA ORGANIZATION AND FACILITIES
MARKET COVERAGE
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GENERAL CHART
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SERVICE CHART
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CONSTRUCTION MARKET INFORMATION
Market requirements
Infrastructure
Moto graders
Vibratory compactor
On highway Trucks
Backhoe loaders
Excavators between 14 to 34 Ton.
Wheel loaders
Construction
Vibratory compactors
Backhoe loaders
Compact equipment
Excavators: between 14 and 22 ton.
Mining
BIG MANINIG
This mining segment demand big size equipment over 75 ton such as:
Off highway trucks
Mining shovels
Excavators ( over 75 ton)
Support equipment like articulated dump trucks usually provided by the
same brand that provides main equipments.
MEDIUM MINING
Excavators between 14 and 70 ton.
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This segment currently has a low demand of new equipment due low
international prices of commodities ( Coal, Gold and Quarry)
SMALL MINING
Excavators between 14 and 34 ton.
Price is usually a main factor decision, which favor Chinese brand and used
equipment; informal mining customer have no access to financial sector and
depend on direct dealer financing.
Agriculture
On Highway trucks
Backhoe loader
Compact equipment ( SSL)
Excavators between 14 and 22 ton.
Demand for excavator in the agriculture segment is low; this segment also
demands agricultural equipment like tractors, planting, seeding and
harvesting equipment.
Government
Moto graders
Vibratory compactor
On highway Trucks
Backhoe loaders
For a distributor to participate in government bidding processes a 5-10 year
certificate experience is required.
Excavators
Wheel loaders
Articulated trucks
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PRODUCTS AND DEALERS PORTAFOLIO
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COLOMBIA CONSTRUCTION EQUIPMENT IMPORTS
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SKID STEER LOADER IMPORTS
MOTOGRADERS IMPORTS
2011 2012 2013 2014
DISTRIBUTOR NAME BRAND QTY FOB-USD QTY FOB-USD QTY FOB-USD QTY FOB-USD
GECOLSALTDA CAT 116 20.538.914 102 18.398.123 142 22.370.759 152 28.629.850
PARTEQUIPOS MAQUINARIA S A TEREX 0 3 390.328
DISTRIBUIDORA NISSAN S A JOHN DEERE 5 793.196 9 1.548.631 8 701.631 11 354.983
CHANEME COMERCIAL S A SDLG 16 2.305.694 9 1.521.267 7 1.139.160 46 7.464.877
PRACO DIDACOL S A S KOMATSU 8 1.221.480 7 1.261.638 9 1.657.372 8 1.447.600
RODRIGUEZ Y LONDONO S A NEW HOLLAND 7 963.345 7 1.024.660 5 442.610 2 295.160
COMERCIAL INTERNACIONAL DE EQUIPOS Y MAQUINARIA S. A.S. CASE 16 2.156.719 11 1.408.567 25 1.668.723 25 3.727.700
OTROS 206 23.508.517 152 12.588.013 1070 8.645.432 20 5.160.927
374 51.487.865 297 37.750.899 1266 36.625.687 267 47.471.425
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VIBRATORY COMPATOR IMPORTS
2011 2012 2013 2014
DISTRIBUTOR NAME BRAND QTY FOB - USD QTY FOB - USD QTY FOB - USD QTY FOB - USD
GECOLSA CAT 79 6.636.523 114 9.143.831 58 4.935.857 90 7.900.542
NEUMATICA DEL CARIBE LIUGONG 134 1.345.649 147 1.046.236 26 470.975 5 243.918
CHANEME VOLVO 54 3.471.025 20 1.534.525 2 55.984 16 972.773
DIDA COLOMBIANA S A DIDACOL S A KOMATSU 37 2.327.945 19 1.155.574 80 4.702.269 26 1.855.332
FIZA LTDA HAM 6 526.707 11 388.239 45 3.098.349 34 2.667.862
COMERCIAL INTERNAL DE EQUIPOS Y MAQUINARIA S.A CASE 27 1.761.749 5 292.792 12 629.322 24 1.368.084
RODRIGUEZ Y LONDONO S A NEW HOLLAND 181 4.960.439 132 7.355.587 70 2.798.593 82 4.325.928
DISTRIBUIDORA NISSAN LEBRERO 7 2.915.492
OTROS 664 19.131.603 410 10.436.436 2437 7.284.070 84 2.930.416
664 19.131.603 2141 34.399.003 2730 23.975.418 368 25.180.346
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EXCAVATOR
EXCAVATOR IMPORTS
IMPORTS
2013
2013 2014
2014
DISTRUBUTOR
DISTRUBUTORNAME NAME QTY
QTY FOB
FOBUSD
USD QTY
QTY FOB
FOBUSD
USD
GECOLSA
GECOLSA 198
198 35.252.313
35.252.313 212
212 32.344.859
32.344.859
DISTRIBUIDORA
DISTRIBUIDORANISSAN
NISSAN 64
64 7.586.958
7.586.958 62
62 9.071.157
9.071.157
RODRIGUEZ
RODRIGUEZLONDOÑO
LONDOÑO 49
49 5.187.588
5.187.588 30
30 4.325.751
4.325.751
NEUMATICA
NEUMATICADEL DELCARIBE
CARIBES.A.
S.A. 20
20 1.691.520
1.691.520
ATR
ATRS.A.S.
S.A.S. 30
30 3.357.852
3.357.852
IMPORTADORA
IMPORTADORACASA CASACOLOMBIA
COLOMBIASAS SAS 77 529.961
529.961
INTERNATIONAL
INTERNATIONAL MACHINERYFACTORY
MACHINERY FACTORYS.A.S.
S.A.S. 21
21 2.128.000
2.128.000
MERCANTIL
MERCANTILAUTOMOVILIARIA
AUTOMOVILIARIAS. S.A.
A.MERCOVIL
MERCOVIL 54
54 5.472.914
5.472.914
C.I.
C.I.PRODECO
PRODECOS.A.S.A. 99 1.512.541
1.512.541
MAQUINIA
MAQUINIA SAS SAS 22
22 1.989.720
1.989.720
EXCAVANDO
EXCAVANDO SSAASS 44 664.792
664.792
PARTEQUIPOS
PARTEQUIPOSMAQUINARIA
MAQUINARIASSAA 115
115 12.087.763
12.087.763 63
63 7.946.042
7.946.042
COMERCIAL
COMERCIALINTERNACIONAL
INTERNACIONALDE DEEQUIPOS
EQUIPOSYYM M 11
11 1.480.161
1.480.161 24
24 2.822.697
2.822.697
DERCO
DERCOCOLOMBIA
COLOMBIAS.A.S.
S.A.S. 10
10 1.195.186
1.195.186 44 485.582
485.582
EQUIPOS
EQUIPOSTECNICOS
TECNICOSDE DECOLOMBIA
COLOMBIAS.A.S.
S.A.S. 33 287.745
287.745 18
18 1.785.288
1.785.288
PRACO
PRACODIDACOL
DIDACOLSSAASS 14
14 2.167.988
2.167.988 34
34 4.638.488
4.638.488
CHANEME
CHANEMECOMERCIAL
COMERCIAL 66 1.293.715
1.293.715 28
28 4.038.076
4.038.076
OTROS
OTROS 632
632 1.293.715
1.293.715 46
46 36.581.586
36.581.586
1102
1102 67.833.131
67.833.131 688
688 121.386.826
121.386.826
BUSINESS STRATEGIES
2. To have complete sales and after sales support force structure 100%
dedicated to CASE products.
3. As an important part of the sales and after sale service, begin operations
using the technological platform of service (CRM system) to offer a better
service and add value with low cost of operation.
4. To improve the exhibition in all the S&SC branches for CASE products.
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5. The price must be competitive. In this point it’s important the support of
CASE to get the best conditions and introduction prices.
7. Make marketing efforts with CASE support 50% Case and 50% S&SC
9. To offer equipment’s rent as an option for the customers who cannot buy
new equipment.
OBJECTIVES
FINANCIAL INFORMATION
Initial Investment:
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Initial Equipment Inventory: USD $2.1 M
Initial Parts inventory: USD $0.4M
Fixed assets (tools, trucks): USD $0.8M
Total Initial Investment: USD $3.3M
Payment Terms:
The payment terms to CASE for the initial investment are 180 days with
corporate warranty payment letter and the 90 days for every order
submitted.
Employees:
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In Million USD$
Sales Year 1 Year 2 Year 3 Year 4 Year 5
Equipment 11.1 12.2 13.8 15.7 18.1
Part 2.7 3.6 4.6 5.9 7.8
Service 0.4 0.5 0.6 0.7 0.9
TOTAL SALES 14.2 16.3 18.9 22.3 26.8
Gross Profit
Equipment 1.5 1.6 2.0 2.3 2.7
Part 1.0 1.3 1.6 2.1 2.8
Service 0.2 0.2 0.2 0.3 0.4
Total Gross Profit 2.6 3.1 3.9 4.7 5.9
Gross Margin
Equipment 13.5% 13.5% 14.5% 14.5% 15%
Part 36% 36% 36% 36% 36%
Service 40% 40% 40% 40% 40%
Total Gross margin 18% 19% 20% 21% 22%
MARKETING BUDGET
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The following marketing budget comes to a total of US$ 676K shared with Case
50% and S&SC 50%, for a period of five year; the marketing plan is focused in
following traditional channels as follow:
ADVERTISING DETAIL
Year 1 Year 2 Year 3 Year 4 Year 5
Newspaper Add 5.664 5.664 5.664 5.664 5.664
Radio 50.000 52.500 55.125 57.881 60.775
Advertisment in Construction Magazimne 8.000 8.400 8.820 9.261 9.724
Coinstrcution trade show 40.000 44.000
International Trade Show - -
Agro expo Trade Show 40.000 44.000
Showroom
Broshures 20.000 20.000 20.000
POP Material 20.000 20.000 20.000 20.000 20.000
Total 103.664 106.564 169.609 112.806 184.163
SALES FORECAST
Considering the Colombia current market situation for CASE, the activities that
we’ll do in sales and the investment in marketing, we made sales estimation for the
next five years, We believe it is a conservative forecast and we hope to make
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better numbers with an effective marketing, achieving market recognition, and the
most important, with a better world economy.
However we know that this sales forecast must be reviewed and compared with
CASE forecast, to establish goals of attainable sales for each year
CONTACT INFORMATION
Thank you for the opportunity to participate in this new partnership that we believe
will be successfully to develop CASE brand in Colombia and bring new levels of
sales, service and integration to the company.
If you require more information on this plan or if you have some doubts; below we
indicated our contact Information.
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