2014 Brand and New Product Strategy

The Journey - 2010

Moved to Attwood facility

– Declining market share
– Unmanageable warranty/quality problems
– Dated products with inconsistent technologies
– No defined product or technology development
pipeline
– Inconsistent brand message
The Journey – 2010-12

Stabilize and Recover

– Reduced warranty expenses by
two-thirds MotorGuide Cumulative Warranty Expense

– Stabilized market share

– Conducted market research and 2009
2010

brand positioning 2011

2012

– Defined core technologies and

Apr
Feb

Jun

Jul

Sep

Oct
Aug

Dec
Mar

May

Nov
Jan
platforms
– Outlined a relevant product plan
– Secured technology partners
– Launched new product R&D
The Journey – 2013-14

Re-Launch MotorGuide
– Launching three major new products
– Renewed marketing initiatives
– Establish new product plan & nomenclature
– Focused on market share growth
– Accelerating new product development
Branding

Insights from
consumer research
– Gathered through
market research
– Used to guide product
development priorities
• Power
• Reliability
• Quietness
• Precision Control
Branding

New product naming convention

– Focus on parent brand – MotorGuide
• Sub-brands dilute strength of the parent
• Sub-brands can be expensive to promote
and confusing to the consumer
– Intuitive model naming
• Helps consumer select the right motor
• Provides logical framework for future expansion
Branding
Today’s trolling motor market . . .

Sub-branding is cumbersome for manufacturers and confusing to consumers

Branding
The Framework . . .

Transom Bow

Lower thrust. Higher thrust.

Good Better Best

Fewer features. More features.
Less expensive. Premium models.
Branding

New Nomenclature

The right power

and features
Branding

Future Direction: Freshwater and Saltwater

2014 PRODUCT UPDATE
2014 Product Line Review

• New Xi5 Wireless Electric Steer

• New Pinpoint GPS Navigation
• New X3 Cable Steer Bow Mount
• Updates to X3 Hand-Op
• Updates to VariMAX
• Remainder of product line remains status quo
New Xi5 Wireless Trolling Motor

• Wireless control “out of the box”

• Ultra-quiet operation
• Precision steering
• Digital electronics
• Extreme reliability
• Available Fall 2013
New Xi5 Wireless Trolling Motor

Wireless operation is standard for

MotorGuide electric steer motors
– Competitors charge up to $199
– Freshwater models are standard
with wireless foot pedal
– Saltwater models are standard
with wireless handheld remote
New Xi5 Wireless Trolling Motor

Wireless Foot Pedal Functionality

– Heel-Toe steering
– Variable speed setting knob
– Momentary Prop ON button
– Constant Prop ON/OFF button
– Anchor mode toggle
Wireless Foot Pedal Convenience
-- 2 AA batteries
New Xi5 Wireless Trolling Motor

Ultra-Quiet Operation
– Precision gears, low-friction bearings and
tight-fitting components minimize Noise,
Vibration & Harshness and make the Xi5
virtually silent
Precision Steering
– 50% faster rotation speed than
competitor’s product
– Improved ability to provide fine
adjustments
New Xi5 Wireless Trolling Motor

Improved “Digital” electronics

– Improved components provide 50% better efficiency
and cooler operation
– Captures and stores energy that, prior, was lost as heat
– Increases run time and decreases battery charges
2.4GHz wireless frequency
– Better range
– Improved reliability
New Xi5 Wireless Trolling Motor

Easy to see LED “dashboard”

– Power ON / System Ready
– Propeller ON
– Pinpoint GPS System Active
– Battery Status Indicator
Shows Battery Level
in Real Time
New Xi5 Wireless Trolling Motor

Extremely Reliable
– Nine months of lab/field testing in harsh conditions
• Every failure documented, fixed and then retested
– Composite shaft made of premium vinyl ester
– Fully-encapsulated electronics
– Custom seals keep out water and debris
– Stainless steel hardware and linkages
– Anodized or powder-coated aluminum
– Backed by a 2-year factory warranty
New Xi5 Wireless Trolling Motor

Integrated Sonar
– Utilizes Lowrance® Dual Band 83/200kHz
transducers
– Pre-installed Lowrance® 7-Pin connector
– Adaptor cables available for other sonar
manufacturer’s displays
New Xi5 Wireless Trolling Motor
Freshwater Models
Part # Description List Price

940800170 Xi5-55FW 48" 12V FP $ 789.99

940800180 Xi5-55FW 54" 12V FP $ 799.99
940800080 Xi5-80FW 54" 24V FP $1,089.99
940800090 Xi5-80FW 60" 24V FP $1,099.99
940800130 Xi5-105FW 54" 36V FP $1,289.99
940800140 Xi5-105FW 60" 36V FP $1,299.99
940800190 Xi5-55FW 48" 12V FP SNR $ 889.99
940800200 Xi5-55FW 54" 12V FP SNR $ 899.99
940800110 Xi5-80FW 54" 24V FP SNR $1,189.99
940800120 Xi5-80FW 60" 24V FP SNR $1,199.99
940800150 Xi5-105FW 54" 36V FP SNR $1,389.99
940800160 Xi5-105FW 60" 36V FP SNR $1,399.99
New Xi5 Wireless Trolling Motor

Saltwater Models
Part # Description List Price

941700060 Xi5-55SW 48" 12V FOB $ 889.99

941700070 Xi5-55SW 54" 12V FOB $ 899.99
941700020 Xi5-80SW 54" 24V FOB $1,189.99
941700030 Xi5-80SW 60" 24V FOB $1,199.99
941700040 Xi5-105SW 54" 36V FOB $1,389.99
941700050 Xi5-105SW 60" 36V FOB $1,399.99
Pinpoint Navigation
GPS

• Superior accuracy for location and navigation

• Built-in future NMEA connectivity
• Easy for consumer to install
• Available as an accessory or
pre-installed on Xi5 trolling motors
Pinpoint Navigation
GPS

Key Features:
Anchor Hold
• Save/recall 8 memory locations
• Ability to “Jog” precise increments from anchor point
• Industry leading accuracy
Heading Lock
• Maintains compass heading navigation
Routes
• Save/recall 8 memory locations of up to 4 miles each
Cruise Control
• Maintain GPS speed while navigating wind and current
Pinpoint Navigation
GPS

Components
– Upper GPS/compass module
– Lower compass module
– Handheld remote
Installation
– Install upper and lower modules
– Plug into trolling motor electronics interface
– Phillips screwdriver and less than 15 minute
installation time
Pinpoint Navigation
GPS
Pinpoint Navigation
GPS

Compatibility
– One PinpointGPS platform across all Xi5 motors
• Freshwater and Saltwater
– Compatibility with future MotorGuide electric
steer trolling motors
– NMEA connectivity coming soon
Pinpoint Navigation
GPS

Pre-installed on these Xi5 Models

Part # Description List Price
940800210 Xi5-55FW 48" 12V FP SNR GPS $1,239.99
940800220 Xi5-55FW 54" 12V FP SNR GPS $1,249.99
940800230 Xi5-80FW 54" 24V FP SNR GPS $1,539.99
940800240 Xi5-80FW 60" 24V FP SNR GPS $1,549.99
940800250 Xi5-105FW 54" 36V FP SNR GPS $1,739.99
940800260 Xi5-105FW 60" 36V FP SNR GPS $1,749.99
941700080 Xi5-55SW 54" 12V GPS $1,249.99
941700090 Xi5-80SW 60" 24V GPS $1,549.99
941700100 Xi5-105SW 60" 36V GPS $1,749.99

Add-on Accessory
Part # Description List Price
90100008 PinpointGPS Navigation System $449.99
90100009 PinpointGPS Replacement Remote $119.99
Comparison: Terrova and Xi5
• Wired foot pedal
• Electric Steering
1 revolution = 6 seconds
Gets noisy after some use
• Dated Styling
• 2 Year Warranty
• Price
– $1,089.99 List (24v FW)
• Wireless foot pedal
• Electric Steering
1 revolution = 4 seconds
Starts quiet and stays quiet
• Modern Styling
• 2 Year Warranty
– Extendable to 4 years
• Price
– $1,089.99 List (24v FW)
Comparison: iPilot and Pinpoint
• Location Accuracy
– Advertised: 5ft radius
– Actual: up to 25ft radius
• Anchor Mode
– 6 memory locations
• Route Memory
– 6 routes, 2 miles each
GPS
• Location Accuracy
– Actual: <10ft radius
• Anchor Mode
– 8 memory locations
– “Jog” 5ft increments
• Route Memory
– 8 routes, 4 miles each
2014 PRODUCT UPDATE
New X3 Cable Steer Bow Mount

• Replaces Freshwater Series

• Precision steering control
• Improved durability
• Quiet operation
• Available January 2014
New X3 Cable Steer Bow Mount

Dual cable steering replaces obsolete push-pull

rack and pinion steering platform
– On premium motors, push-pull has long been
superseded by dual cable systems
X3 brings more value to the entry-level
cable steer trolling motor
– Improved control, durability and styling for a
competitive entry-level price
New X3 Cable Steer Bow Mount

Precision Response Steering

– Variable Ratio Technology (patent pending)
• Improves steering response Low Ratio

• Reduces torque steer feedback Precise Steering in

Primary Angling Area

– Reinforced foot pedal

High Ratio High Ratio
• Less flex than competitor’s (normal steering) (normal steering)

foot pedal
• Provides better
feel and control
New X3 Cable Steer Bow Mount

Improved Durability
– Premium composite shaft
• Vinyl ester material provides greater impact
protection
– Stainless steel outer shaft
• Larger diameter for strength and corrosion
resistance
– Mount constructed of aircraft-grade aluminum
• 17% wider stance provides better stability
– Stainless steel bushings in key wear points
• Prevents premature wear and looseness
New X3 Cable Steer Bow Mount

Quiet Operation Old Design

– Dual-cable system eliminates

steering slop and noise Steel Pin

Aluminum Mount

– Precision bearings and locking • Aluminum wears over time, and causes
looseness and noise
collar eliminates shaft clicking • Pin replacement does not fix wear
problem

– Composite locking pins

New Design
• Improves durability at the most • Composite pin easier to
common failure point •
release
Pin will wear instead of
aluminum
• Eliminates metal-on-metal • Built in features to
accommodate for wear
“clicking”
New X3 Cable Steer Bow Mount

Standard Models
Part # Description List Price

940200050 X3-45FW FB 36" 12V $ 369.99

940200060 X3-45FW FB 45" 12V $ 379.99
940200070 X3-45FW FB 50" 12V $ 389.99
940200080 X3-55FW FB 36" 12V $ 509.99
940200090 X3-55FW FB 45" 12V $ 519.99
940200100 X3-55FW FB 50" 12V $ 529.99
940200110 X3-70FW FB 45" 12V $ 579.99
940200120 X3-70FW FB 50" 12V $ 589.99
X3 Hand Operated Motor Updates

Composite shaft replaces aluminum shaft

– Better impact resistance and durability
New mount replaces Gator®Flex
– Improved rigidity and durability
– Easier to stow and deploy
– Wider base for added stability
– Easy motor height adjustment and motor removal
X3 Hand Operated Motor Updates

Standard Models
Old Part # New Part # Description List Price

940200010 940200130 X3-45FW HB 50" 12V $299.99

940200020 940200140 X3-55FW HB 50" 12V $449.99

Available January 2014

2014 PRODUCT UPDATE
VariMAX Bow Mount Updates
Mount upgrade on 55 lb. thrust models
– 20.8 Gator®Breakaway replaces Gator®Flex 360
– Much more robust design
– Consistency across VariMAX product line
VariMAX Bow Mount Updates

Standard Models
Old Part # New Part # Description List Price

966080020 966000080 V55 HB 50" 12V 20.8MT $499.00

966180810 966100040 V55SW HB 50" 12V 20.8MT $579.99

Available January 2014

MARKETING INITIATIVES
Xi5 Product Positioning

The Xi5 wireless trolling motor

is a quiet, easy-to-use motor that
gives you the freedom to fish from
anywhere on your boat with the
precision control that positions you
precisely where you want to fish.
Xi5 Key Product Launch Targets

Northern Freshwater
“Multi-Species”

Gulf Coast Saltwater

Strategic Elements ­- Corporate
Base product elements
– Photo, video, illustration and animation assets
– Product labels and package design (internal & external))

Base Marketing Elements

– Catalog
– Product Sales Materials
– Web site additions
– PR
• Releases, editorial, forum/blog content, media kit, social
media, etc.
• ICAST and BASS Classic press events
– Cross promo incentive w/Lowrance:
In-box and channel materials , content for Lowrance (incl. e-mail)
– Completed videos by product feature - web, partner web,
display, etc.
Strategic Elements - OEM
Placement
– Support OEM partner efforts to educate dealers via presence within
their forms and marketing materials, and motors placement at key events
• Catalogs/boat images
• Web sites
• Dealer meetings
• Boat shows

Sales Drivers and Initiatives

– Particular support for key multi-species OEMs
– Generate exposure & orders via dealerships; direct communication
– Support OEM fishing teams and sales force with motors
Strategic Elements – Dist/Int’l
Placement
– Present motor to key stakeholders
– Support rep training efforts
• Resource Center
• Presentation materials - print & electronic

Sales Drivers and Initiatives

– Drive awareness and desire for product via partner ads w/in catalogs,
catalog pages, customer sales flyers, etc.
– POP
• New large display, to support dealer and boat shows and events
(IBEX, ICAST, BASS Classic, etc.)
• New modular 2-motor display to support customer shows and dealers
Strategic Elements - Retail
Placement
– Training
• Resource Center
• Elements to support presentations – print and electronic
– POP for Xi5, Pinpoint and Connect
• “BPS and Cabela's style” displays, including inserts
• Other retail backdrops and tags
– Printed sales materials
• Product launch materials
• Catalog

Sales Drivers and Initiatives

– Promotional assets, materials, and creative to support catalog placement, flyers and
promotional initiatives, including the regional and local efforts by store
– Note continuation of rebate & rigging programs (Xi5 and X3 not eligible)
Drive Consumer Demand
Leverage partner opportunities
and generate pull through
– Connect POP – in store, shows, partnerships w/Lowrance, etc.
– Internet initiatives; target keywords currently controlled by competition and
establish presence within key target sites
• Display ads
• Search PPC
• Etc.
– TV, focus on target demographic
– Print
• Industry pubs
• Focus on target demographic
– Events
• BASS
• FLW
• MWC
– Leverage pro staff relationships