Presentation Overview

Background

Product Benefits
The Market Competition

Research Findings
Promotional Plan Sales Forecasts Development Requirements Partnership Potential

Product History

Developed by Fred and Doresa Thompson in 2005 Fred worked as a van-trailer driver for Target

He was injured by falling cargo

Inspired them to create a product that would protect un-loaders from falling cargo

SCMEPs Role
Began project in March 2010
Responsibilities included: Branding and Messaging

Market Research
Product is currently in the development stage Product Redesign and Engineering

Product Benefits
Reduced damaged goods expense Prevents re-shipping Improves customer satisfaction Improves the safety of those unloading cargo

Installs quickly with retractable canvas

Grips cargo tightly without damaging Shorter unloading time because cargo will stay in place Saves time and expense from filing insurance claims

Damaged Product Claims

Freight value estimated at $9 trillion

In 2009, ATA estimated claims at .85%

= $75 million per year in damaged goods claims Note: many insurance companies deductibles are over $150,000 and thus, are not filed

Injury Claims
Trucking injuries are estimated at somewhere between 44,000 to 75,000
In 2009, ATA estimated 75,000 workers comp cases were filed by truckers

In 2008 Bureau of Labor estimated

Over 4.4 million Americans work for the trucking industry One in 10 workers in the trucking industry suffered a jobrelated injury Equates to 44,000 employees suffering injury in Trucking Industry
Bureau of Labor http://www.osha.gov/SLTC/trucking_industry/safety.html

Substitute Products

E-Track straps control the movement of cargo and can start at $5 up to $50*
Winch systems cost anywhere from $10-$40**

*amazon.com

**amazon.com and uscargocontrol.com

Problems with Substitute Products

Dont last long
Cover little surface area Easily lost Can come out of E-tracks through jostling while driving

www. teamstersonline.com

Substitute Products
Lodi Metals Keeper Straps

Sold to retailers, distributors, and direct through their web site

Sold through auto parts and hardware stores, Sears Industrial and JC Whitney catalogs

Substitute Products
Vulcan Brands Logistick

Sold to retailers, distributors, and direct through their web site

Sold to retailers, distributors, and direct through their web site

Primary Research

Insert qualitative responses from survey: Trucking companies OEMs Distributors

Market Potential

15.5 million commercial trucks on the road

In 2008, trucks carried 10.2 billion tons of freight 68.8% of all freight was moved by trucks (remainder in other forms of transportation such as railway and air) $660 billion industry The value of freight transported is about $9 trillion

ATA Trucking January 2010 Newsletter

Truckinfo.net

Target Distribution

Distributors of trucking supplies and equipment Original Equipment Manufacturers Direct to Private Fleets and Independent Carriers Ideally, demand will be driven to distributors

Trucking Industry Segments

Private Fleets
Estimated 2 million vehicles in operation Operated by a cross-section of manufacturers, distributors, processors, and retailers

Wal-Mart, ExxonMobil, Bridgestone Firestone, Kraft Foods, AutoZone, etc.

Private carriers transport 56% of all truck tonnage

www.todaystrucking.com

Independent Carriers
Estimates of over 500,000 trucks

Medium Sized 96% operate 28 or fewer trucks 18%

Independent Carriers
Estimates of over 500,000 trucks

Smaller Carriers 18% operate between 6 and 18% 18 trucks

Largest Independent Carriers

United Parcel Service

FedEx Ground
Schneider National Roadway Express, Inc. Yellow Transportation

Original Equipment Manufacturers

96,000 trucks were manufactured in 2009

Household Goods Transportation

Waiting on data of HHG transportation figures

www.wjdonovan.com/trade_shows

www.randsco.com/index

Example of Distributors
Selling many different types of E-track straps and cargo restraining systems

Cargo Control Trailer Parts Superstore Truck N Tow KMT Service Parts Global Parts, Inc.

Pricing Estimates

Suggested Retail Price

Wholesale Price Estimated Manufacturing Cost Profit Margin

Promotional Plan
Communication Tools Website

Brochure
Trade Shows Direct marketing (email, snail mail, telemarketing, etc)

Advertising in trade publications

Direct marketing to members of trade associations, distributors, and dealers Development of Sales Organization

Trade Associations
National Private Truck Council

Truckload Carriers Association

American Trucking Association State Chapters Americas Independent Truckers Association Intermodal Association of North America

Trucking Industry Defense Association

Trade Shows
The Great American Trucking Show:

Dallas, TX
August 25-27, 2010 The Work Truck Show:

Sponsored by the National Truck Equipment Association

St. Louis, MI

March 8-10, 2011

http://www.gatsonline.com/ http://www.ntea.com/worktruckshow/index.aspx?id=938

Trade Shows Cont.

Mid-America Trucking Show: Largely sponsored by the Towing and Recovery Association of America Inc. Louisville, KY March 31-April 2, 2011 The Great West Truck Show: Las Vegas, NV June 15, 2011
http://www.truckingshow.com/ http://www.greatwesttruckshow.com/2010-gwts-floor-plan/

Sales Organization
Full time vs. Independent sales representative Trade show manager/Inside sales person

http://www.greatwesttruckshow.com/

http://www.gatsonline.com/photo-gallery/

SafeFleet Certification
Developed by Aon Corporation- a provider of Trucking Industry Risk Management Services It is a nationwide fleet safety certification for trucking and logistics companies A company completing the SafeFleet Certification process joins an elite group of the nations safest trucking companies. SafeHaul could potentially help a trucking company meet the standards

Potential Revenue
Total Annual Revenue:
# of Trucks on Road (millions) Market Share (%) Customers

Wholesale Price

Total Annual Revenue

Profit

15.5 15.5 15.5 15.5

5 Year Growth Potential

(Excel sheet) Year 1,2,3,4,5 Year 1: Median number from Potential Demand slide (previous slide) Annual growth rate

Total revenue (I can insert a similar table if you like the looks of the one above)

Licensing Proposal

Safe-Haul to offer manufacturer complete manufacturing and distribution rights to product in exchange for license fee of __% and agreement to finish the development and sales and marketing process.

Thank You For Your Time!