W.H. Plastics Inc.

Situation

Foreign exchange

Chinese competitors

Increasingly global marketplace

All eggs in one basket

74% of sales from one customer

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Average Monthly Exchange Rates 1998-2008

1 $ Canadian = x $ US

WH Plastics

Decision process is controlled (Family business)

Centralized focus on R&D and operations

Extensive product line

Global presence in a variety of industries

Customized, high quality, and service oriented

IndustryWidespread use

Highly competitive

Production efficiency is one of few differentiators

Corporate social responsibility; Green, recycling

High density of production facilities

Technology costs and upkeep are expensive

Your CustomerAppliance sector

SpeedPriceQuality

Aerospace and MilitaryDurabilityQuality

AutomotiveTimelyPriceQualityVolumeCustomer service

The mould gives the customer the upper hand

Problems

New customer and target market uncertainty

Exchange rate makes WH less attractive to US customers

Downsizing

Lack of Chinese market know-how

Uncertain expansionary path

Target - 9% profit margin

2006: 3%

2007: 5.1%

2008: 7.5% ???

2009: 9% ???

Stable costs ---> Drive new revenue

“The best marketing is education”

- Regis McKenna

Trade shows

Attend trade shows globally

Demonstrate physical superiority of WH products

Build network in the community

Gain insight into future trends

Estimated annual cost = $100,000

Online PresenceTarget the most likely customers

Cost Per Impression (CPM)

Cost Per Click (CPC)

Purchase Rate

Traffic weighted budget

Supplier Agreements

Exclusivity contracts with discounts

Referrals

Sourcing low value-added parts from China

Month3 6 9 12 15 18 21 24

Attend trade shows

Develop list of keywords

Interview for trade show delegates

Look for agent in China

Implement initial online ads

Monitor and adjust budget