Gate Three

Brand Positioning
May 26, 2017

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Agenda
1. Welcome and introductions
2. Why are we here today?
3. Current situation key findings
4. Competitive positioning
5. Brand positioning exercise

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 Jan Kelley Team

Mary Fearon Katie Turton Erin Vermeer

Vice President Strategy Account Director Communications Specialist

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Why are we here today?

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Gate Threes customer value proposition for external customers is not well defined or
supported internally, limiting the ability to position its core value against competitors in
the market.

1. Gate Three construction management software is the only software solution created by
construction experts to meet the needs of todays construction projects.
2. Developed to serve internal EllisDon projects:
Supports some of Canadas largest construction projects
Reflects EllisDon systems and processes
Internally focused development and support along with limited external customer feedback
have a significant impact on the user experience
3. Competitor applications, while potentially lacking construction expertise, have strong user
experience and support.
4. EllisDon is Gate Threes only customer, essentially.
Development and support skews to EllisDon needs, which limits focus of insight and resources
dedicated to external customer needs.

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 Business is Personal

B2C Brands have emotional B2B Brands have emotional

connections to connections to
10-40% of consumers. more than 50% of
customers.

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Google/Motista Research: www.thinkwithgoogle.com/articles/promotion-emotion-b2b.html
Providing business value to customers isnt enough.

B2B customer perceptions of business value rarely differs across

suppliers/vendors. When higher value is perceived, only 14% are
willing to pay for it.

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Brand Development Process

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Our Challenge Deliverables
Develop a clear, relevant and 1. Understanding customer needs, competitive positioning and
differentiated value proposition current barriers
for ideal customers of the Gate 2. Gate Three positioning statement and messaging map
Three solution to:
Enable sales growth
Guide product
development and support

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Our Approach Discovery
Audit material in market
Competitive positioning
Stakeholder interviews
# Internal
Scott Chatterson - EllisDon Project Manager
Andrew Anderson - EllisDon Project Manager
Mark Wiseman - EllisDon Project Manager
Paula Dobrowolska - EllisDon Customer Experience Manager - PS
Pegah Moghani - EllisDon Project Manager - PS
Lisa Brown - EllisDon Costing Manager
# Customers
Corey Stearne - Cooper Construction Limited Project Manager
Murray Chidley - Chimo Construction Limited Controller
Themis Tzovolos - Steelcore Construction Ltd. President

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Current Situation Key Findings

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1. Gate Three customers outside EllisDon are likely mid-sized
companies with different needs and processes.

Short Term Target Customer Profile

$20 million in revenue
$1 million projects
10 software users
50% office/50% field
Decision maker is a software user
Transitioning from manual or outdated management
systems
Focused on risk mitigation
Driven by efficiency

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2. Gate Threes software and service experience to address needs of small to
mid-size enterprises (SMEs), which may be inclined to trial Gate Three based
on lower price of entry.
Larger organizations already recognize
the SaaS as a cost of doing business and
are prepared to pay for applications
with proven performance and time in
market.
Software and service requirements of Procore was three times the cost and in US dollars and they didnt
SMEs include integration, they were going to charge us another $8,000 USD.
Cost considerations (subscription
and time/labour to manage) From an overall cost of operation, whether something is $20,000
End-to-end management (26 USD/year if it creates the efficiencies, I can bank that into what we do.
modules)
Intuitive experience Its (Procore) a little on the pricy side, but were finding there is a lot
Accessibility (web) of development and Open API features that work for our organization.
Support
Onboarding
Self-customization
Integration with complementary
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 3. Alignment with EllisDon brand is positive with some skepticism about data
sharing.

EllisDon creating and using Gate

Three was a key selling feature and it
worked for their projects no matter
the size, it must have proven
processes and thought The fact that it [Gate Three] came from a large construction company like
ourselves and have been around a long time
Without much knowledge about the If a large general contactor is using it, it has to be good. So I would like to see
software our interviewees referenced it.
that it was one of the reasons they
requested a demo of the product There were definitely some conversations [about data security with EllisDon]
but I felt very comfortable and it was not a hard sell to get him [my boss]
Debunks past beliefs that the EllisDon onboard.
name was not a positive association,
although messaging should highlight
continuous development and use of
software vs. owning software

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4. External sales success means moving beyond where Gate Three is today
created for and serving, almost solely, EllisDon internal customers and projects

Gate Three as an EllisDon resource

Product adoption is compulsory I found that some of the training sessions werent as beneficial because its taught
from the perspective of EllisDon procedures which isnt how we do things. It led to a
Work-arounds accepted/expected
little bit of confusion.
Internal users spend on average a
couple hours a day manually Gate Three got bumped because it didnt have integration. I know its coming, but we
updating spreadsheets that come want to move now.
out incorrectly from reporting
User experience and design are
secondary priorities
Customization occurs on an ad
hoc basis
Integration with other software
(accounting/email) has been
nonexistent

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5. Support is top notch; however, clear expectations re: time to implement and
maintain Gate Three are critical to long-term adoption and customer
retention.
Customer Support and background Remo had Paula lead the demonstration who had a great
of Professional Services was knowledge of construction so as we were asking questions, she
referenced as extremely positive
understood the terminology and what we wanted to see. Procore
Depending on experience and salesperson didnt have any knowledge so when we wanted to see
background, some users were
initially shocked by the amount of
some of the nuts and bolts, he couldnt answer any of those things.
setup and training time required (1-
3 months)
End result (ease of documentation, I really liked the fact that Gate Three would have a dedicated
searchability, time saving, etc.) Raquel on our team for assistance, but where we felt the not so
makes it worth it strong points were price and the mobile apps.

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6. The software is not intuitive and is seen as inefficient, contributing to a
weak user experience.
A key selling point and feature
construction workers seek in
their software is efficiency;
however, navigating Gate Three If you input something incorrectly the error says you have an incorrect field but you
often confuses users dont know which one it is. Need something that is a little more clear that ties into
Multi-step processes and long the way it looks and makes something easier to use.
click journeys to get to specific
locations within the software Gate Three is a closed loop, if you want to find an RFI in a folder, you have to go back
creates frustration into the RFI for that job and drill down into the trail and find it. It seemed a bit more
If a software is not intuitive, it cumbersome.
wont be efficient for the worker,
thereby forcing users to seek I would say the day-to-day tasks probably take 30 minutes more to complete in Gate
better solutions elsewhere Three than they would in our old system.
Users who are less
technologically savvy or who
have not had to work with
technology frequently as part of
their jobs need software to be
easy to use and intuitive, with
easy access to job files and
flexible folder structures
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7. Gate Three hasnt been around long enough to be a truly polished piece of
software.
Major competitors have been in
business significantly longer than
Gate Three and those looking for
software are more comfortable The other thing was some parts of Gate Three didnt seem to be quite there. It
with products that have been out seemed like it needed another couple of years of development to be on a
in the market and have time to comparable level.
work through the kinks
Users are more wary of A decision maker had experience with (CMIC), so there was that and Gate Three
connecting with a company who being a brand new product, even though it grew out of Edge Builder, its a new
doesnt have a proven track product.
record in the software industry
We can combat this with strong
messaging around clients who are
currently using the software

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Competitive Positioning

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Company Positioning Marketing Activities Software Integration
Website N/A
Gate Three Better Decisions. Faster.
Media Relations
SEM Trade Shows Sage 300 CRE
A mobile and collaborative all-in-one Social Media Conferences Quickbooks
Procore
platform built to streamline Website Webinars Dexter + Chaney Spectrum
15 yrs
construction project management. Media Relations eBooks
Road Shows Procore TV
SEM Blog Proprietary
CMiC
Construction software. Evolved. Social Media Trade Shows
43 yrs
Website Conferences
SEM Buildertrend.tv Sage 300 CRE ProEst
Social Media Webinar Quickbooks Cadsoft
Builder Trend The #1 Software for home builders & Website Blog Xero Cubit
11 yrs remodelers ChiefArchitect Stack
SilverStone Group Active Takeoff
Wepay SoftPlan
Viewpoint is built on a foundation of SEM eBooks Proprietary
ViewPoint Rock Solid Collaboration. Social Media Newsletter
27 yrs Offering Smoother, Easier & More Website Trade Shows
Profitable Results Webinars Conferences
SEM Webinars Exchange data with systems for ECM, cost,
Integrated Estimating, Project
Aconex Social Media Videos scheduling, ERP, and more.
Management, and Job Costing for Small
17 yrs Website eBooks
to Medium-Sized Construction
Media Relations Brochures
Companies
Blog Reports
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Gate Threes capabilities are on par with its competitors, but the user
experience on the website might detract people from discovering and
understanding its capabilities.

Those who have used Gate Three Website visitors miss key company/tool features and PODs due to lengthy
agree that the software demonstrates sentences and heavy language
capabilities equal to or better than Bullet points, images, icons, etc. are all potential replacements for long, hard-
the competitive software they have to-understand content
used (ViewPoint, EdgeBuilder, etc.);
Capabilities should be up front and concise
however, the messaging on Gate
Threes website is difficult to get
through.

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Most leading software options are focusing on their accessibility and
collaboration within their value propositions.

Mobile capability is the most common feature initially mentioned by companies

There is an emphasis on collaboration
Gate Threes up-front messaging is more abstract than other companies; it is
less specific about target audience, special features, type of tool, etc.
Simplification and specifics keep visitors attention
Platforms that share capabilities up front and concisely keep the audience
around longer

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 Positioning
Price

User Experience

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SWOT Analysis
STRENGTHS WEAKNESSES
EllisDon is a well-known, credible company within the construction Software is not intuitive
industry No offline version available
Built by construction workers, for construction workers Outdated look and feel (although this is currently being updated)
Web-based Wait time for custom reports
Mobile app (Daily Site Report) Long training period
Excellent searchability Long setup period
Everyone in a work flow can benefit from using the software Lack of presence in social and digital space
Bundles (Procurement, Foundation, etc.) allow companies to choose
which features make the most sense for them and just pay for those
Once trained, the software is easy to use and effective

OPPORTUNITIES THREATS
The industry is moving away from traditional paper-to-pen Over 200 construction management software options
The construction industrys tech landscape is constantly evolving and Competitors are increasingly using paid support
growing New technologies that could replace some, or all, of what Gate Three
Demand for construction management software is high does
People who have grown up with technology are joining the workforce
and are/will be decision makers and managers
Shift towards integrated project delivery
Leverage credibility of EllisDon
Leverage fact that the software was built by those who needed the
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Positioning Gate Three to External Customers

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 1 2
Establish and Continue to evolve
articulate Gate Three with
Gate Threes external customer
current value to needs in mind
customers

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 1
Establish and
articulate
Gate Threes
current value to
customers

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Understanding the customer mindset

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Customer Needs
Grow Business Manage Risk Drive Efficiency/Effectiveness Manage Cost/ Profitability Improve Data Mgmt / Analysis
How can I differentiate my
Did I double check the numbers? Project controls Budget Hub
business?
How do I allocate resources to set back and Am I working from the correct
Getting the next job Safety Blitz Estimates
track? version?
Projects more complex/harder to
Complaints Double entry Profit Overwhelmed by data
manage
More risk on general contractors Manpower costs vs. manpower
Workflows Spread data
plates receivable
Someone leaves, all knowledge goes with How much money am I leaving
Do I know what I do not know? Spreadsheets
them on the table?
How can I do this faster? Close out hold back (where is it) Is the information accurate?
Losing info/data (i.e. pay
I dont have time (process, training, teaching) Am I losing money?
dispute)
Keeping track of change orders
I cant grow if we dont standardize process Data in one place
($$$)
Lack of transferring (i.e.
Is there a better way to run my business? Predictability (i.e. forecast)
drawings)
Do I know how much of the Consolidate info to different
Out of control
budget has been spent? stakeholders
I want data to make better
Supervisors (field) Managing people & money
decisions
Ensuring all invoices are
Do not know what is outstanding (to do) Live project view
entered
Who is looking at what when? Paying everyone
On schedule substantial completion
Efficiency = more projects = more revenue
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Identifying Points of Difference
What are the tangible (rational) points of difference for us?
What are the intangible (emotional) points of difference for us?
These are the unique benefits of the brand that must be consistently
delivered
Where do we perform better and best in the market today?
Where do we need to be best?

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 Tangible/Rational Benefits -- As Good As Better Best

Points of
Keep all design docs in one place AI Access -

Track all transactions/document logs, time stamps

Workflow

Difference - Accountability throughout workflow

- Improved workflow/less steps
- Document workflows (Interface)

Exercise - Lower overhead

- Distribute work to appropriate person
*Interface is below As Good As

Project Financial Package

- Real time cost control
With
- Linking costs to all forms of project management
Accounting
- Manage costs
integration
- Prevent leakage changes
- Report on financial health by project/company

Easy to access information/Web-based

Never lose data/Cant delete

User-experience

Implement best practices/Configuration/Usability/Standardize data (i.e

cost-code)

Control risk (i.e. templates/workflows)

Tech support/Construction expertise

Intangible/Emotional Benefits

Time management/More efficient

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Confidence
Points of Difference Reasons to Believe
Best in Class
Most Comprehensive
Standard Construction
Stand-Alone Risk Management
Customization Management
Financial Package
Processes and Tools
Real time cost control Technology built for best With over 65 years Gate Three is set up with
and cost management, practices in construction working on some of the standard best practices
Gate Three provides the management with the largest construction for managing risk the
tools to prevent leakage flexibility to projects, Gate Three has entire lifecycle of a
changes, link costs to all accommodate individual expertise and experience construction project,
forms of project business needs. Gate to implement and tracking and saving every
management and to Three processes, support construction action and
report on financial health workflows, companies like no other communication in one
by project and company. standardizations, available software single place.
configured around provider.
customer needs.

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Developing the Brand Position

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What is brand positioning?
And why do you need it?
Every organization needs a clear and common understanding of what it is they
offer to customers, why its different or better than alternatives and the
reasons why customers should believe those claims.

This is your positioning statement. Its a statement of strategy reflecting your

focus in the market you serve. Without it, organizations run the risk of investing
in unfocused, undifferentiated marketing efforts that do little to engage their
customer or build their brand.

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Brand Positioning Exercise
Target audience: the attitudinal description of the core group of people to
whom you want to appeal
Brand promise: the compelling benefit that sets you apart from your
competition
Frame of reference: the segment or category in which your company
competes
Reason to believe: evidence to prove the brand will deliver on its promise

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Brand Positioning Exercise

For (Target Audience) (Brand) is the

(brand promise) among all (frame of reference)
because (reason to believe)

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Brand Positioning Exercise
Example:
For world wide web users who enjoy books, Amazon.com is a retail book
seller that provides instant access to over 1.1 million books. Unlike other
book retailers, Amazon.com provides a combination of extraordinary
convenience, low prices and comprehensive selection.

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 Brand Positioning

For construction firms who value standardizing processes and costing

analytics as keys to sustainable growth, Gate Three is the construction
management software to meet the demands of increasingly complex
projects. Gate Three is the only cost and project management solution
with real time visibility into the financial health of both projects and the
company, the flexibility to be configured to a customer's preferred workflow
and includes expertise from one of ENR's top 100 global General Contractors.

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 1
Establish and
articulate
Gate Threes
current value to
customers

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 Messaging Context Our Approach Benefit
Point What the customer/audience How and why we can support this claim What value it provides to the
High-level thinks or believes customer
themes
meaningful to
customers

Im in construction, not
Gate Three is the construction management software built and supported by one of the worlds leading Knowing that Gate Three is used
computers, so I just want a
Expertise construction companies, EllisDon. Taking on some of the most complex global projects in the last 65 years, and trusted by leaders in my
software that is going to do the
Gate Three has EllisDons pure construction management expertise for projects large and small comes through in Gate industry is important to me. When I
job and do it right. With so much
unmatched Three, the software built by construction experts for construction companies. can count on support for my
on my plate, I worry that Ill have
experience and management software where and
to spend too much time learning
expertise in the EllisDon has delivered thousands of projects across four continents, receiving recognition as one of ENR's when I need it, it allows me to focus
the ins and outs of a new
construction top 100 global General Contractors and Deloittes Best Managed Companies. Gate Three itself manages on the many other needs of my
software, with unanswered
industry. over $4 billion in projects annually and was named on CIOs 25 Construction Applications Transforming business and contributes to my
questions, and wont end up
Business 2016 list and on CIOs 25 Most Promising Project Management Solution Providers 2016 list. overall operational success.
getting the ROI I need.

Gate Three is set up with standard best practices for managing risk throughout the entire lifecycle of a
construction project. Gate Three tracks and saves every action and communication between the project
Risk team, subcontractors, consultants and owners in a single place, through workflow, document logs and
Construction projects are
Management historical information, reducing inefficiencies and inaccuracies along the way.
increasingly complex, dynamic I have peace of mind knowing that
Formal
and fraught with uncertainty. Im Gate Three keeps everything
documentation Using Gate Three ensures the right processes are in place at the start of a project and followed by all users
constantly trying to keep all the documented throughout the entire
throughout a from start to finish. Gate Three offers a full and accurate view of the project in real time, while also tracking
moving parts of a project in check project. People can trust me and my
project limits what future costs are committed versus actual costs. No step can be skipped. No change deleted.
in order to protect the business work knowing that everyone on my
risks associated Gate Three manages risk through:
and my reputation. team is being held accountable.
with managing Pre-defined checklist for financial management and project workflows so nothing can be skipped,
large projects. overlooked or ignored
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Messaging Context Our Approach Benefit
Point What the customer/audience How and why we can support this claim What value it provides to the
High-level thinks or believes customer
themes
meaningful to
customers

I need to be able to manage,

Its a huge benefit to know, in
Financials track and control every financial
real time, how my projects are
Gate Three aspect of every project so that
Gate Three has the most robust financial package offered by construction management software, running financially because I am
provides the my team and project partners
giving you the ability to monitor and manage the financial health of a project in real time. This able to make adjustments to a
most are billed and paid, budgets are
includes everything from the time you sign a contract or submit a purchase order, throughout the project very quickly. Gate Three
comprehensive followed and changes are
change process, to invoicing your client and paying your subcontractors. Gate Three works in manages my financials with a high
stand-alone seamless. If there are
conjunction with standard accounting software. level of efficiency and accuracy.
financial inaccuracies or inefficiencies,
This ensures we are operating
package. projects and relationships fall
error free.
apart.

Customization
Gate Threes
Weve developed our own way The foundations Gate Three had
processes,
of doing things in the office and in place allowed me to adjust a
workflows and
on the job site so a cookie- few of our norms and actually
reports are Gate Three offers the best of both worlds when it comes to standard offering and customization. The
cutter product just wont work increase our productivity and
standardized software is built from four generations of construction management experience and best practices
for my team and project efficiencies, while still having the
but can be and configured to your needs because, after all, every business has its differences.
partners. If we have to change ability to customize the software
configured
how we do things, will to get exactly what I want and
around your
productivity go down? need for my business.
needs.

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 2
Continue to evolve
Gate Three with
external customer
needs in mind

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 1. Confirm short- and
long-term customer
segments
2 2. Primary customer
Continue to evolve research
- Quantitative survey
Gate Three with - Qualitative
external customer interviews
needs in mind 3. Develop user personas
4. Benchmark Gate Three
against leading
competitors
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Appendix: Market Segment Info

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 Most (79%) construction organizations make less than $50
million per year, with almost half (44%) earning between $5
million and $50 million.

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Source: www.capterra.com/construction-management-software/user-research
 The most common type of buyers are small to midsize general contracting
firms.

Prospective Buyer Size by Number of Users Prospective Buyer Size by Number of Segment

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Source: www.softwareadvice.com/resources/construction-buyer-report-2015/
 US new construction starts in 2016 to grow 6% to $712 billion for
housing, commercial and institutional building sectors

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Source: www.capterra.com/construction-management-software/user-research
 52% of prospective buyers use pen and paper to conduct
estimating, takeoff, big management and other processes.

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Source: www.softwareadvice.com/resources/construction-buyer-report-2015/
 Unsurprisingly, the biggest reason respondents switched from
their previous construction management method was because it
was too hard to use.

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Source: www.capterra.com/construction-management-software/user-research
 One-third of prospective buyers say that improving the accuracy
of estimates is their top reason for seeking new construction
software.

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Source: www.softwareadvice.com/resources/construction-buyer-report-2015/
 Nearly 50% of construction firms seek extensive materials-list
functionality, followed by job costing and takeoff.

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Source: www.softwareadvice.com/resources/construction-buyer-report-2015/
 When choosing a software, support, company reputation, and implementation training were
hardly a factor when compared to the software's functionality and ease of use. The emphasis on
robust, easy to use software is a reflection of the construction industry's culture of self-reliance
and desire to get the best product.

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Source: www.capterra.com/construction-management-software/user-research
 Prospective buyers dedicate anywhere from 0.01 to 0.64 percent
of their annual revenue to the deployment of new construction
software.

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Source: www.softwareadvice.com/resources/construction-buyer-report-2015/