Analogue Cable (new LHD) Marketing Plan by James Jiang + Calvin Yip Version 2.3 ( )

2 Marketing Strategies Background Chinese approvals are mandatory for legitimate sale of LHD products into the PRC market. We must get approvals ASAP. Kidde old LHD can’t fit China new standard. We must find a solution to continue the approval. Why Sureland We choose to cooperate with Sureland because they have new products can meet new standards. With their new products, it becomes fast and easy to pass the new approval test. Sureland has good relationship with Leader and the cooperation would be smooth. There are mutual benefits between Sureland and Kidde. We negotiate to Sureland to ensure Kidde is the only distributor (apart from its existing System Sensor, TianYu, & Sureland internal sales/project team) Why Leader We cooperate with Leader to finish the product while we buy the key components from Sureland. Finished products by Beijing Leader are China local made and they can be forwarded to the Shenyang Test Center for local made approval. Another benefit to have product finished and approval via Leader is to reduce test time from 6 months to 3 months. Also this can cut the test cost down from USD per type to RMB per type. We can remain saying that this product is “made by Kidde” when Leader is a part of UTCFS/Kdde family.

3 Market Analysis Market by volume Market by value Analogue Market Share by volume 2005 Total Market Volume 20,000 km

4 Analogue Cable Price Analysis (2006) Price to Contractor Price to End User

5 New A-LHD benefits Kidde LHD products has long history in Chinese market, and have been sold to a lot of successful projects. One of imported brands can meet new Chinese standard. (Other imported LHD brands are rare, only Protectowire, GSI) Have two types: Fixed temperature and Rate of rise temperature. Price will set below other imported brands.

6 Product Remark: -This is the first rough sample (e.g. for testing mould) -Already plan & actions to improve the quality in terms of plastic materials, printing method, new color, box surface design, etc.) -Improved samples and some new design options can be ready next week (mid Apr) -Two model types: -K82017F (fixed temp.)

7 New Product Design New design layout on the outer box Differentiate from Sureland’s product Upgrade the box quality, color, logo printing, etc. Use the same color of HSSD Change “lights” lining from horizontal to vertical Require to modify the mould and PCB

8 New A-LHD Orientation Approach We buy cable and control unit PCB from Sureland and assemble unit box in Leader. So the new LHD is a local product. We do new test in Shenyang, and Leader will be the manufacturer and Kidde be the “report owner” in the test report. How the customer feel Kidde is an old import brand in Chinese LHD market, focused for high level customer. Chinese customer will know Kidde new LHD major parts are from Sureland. Solution We will publicize the new LHD is a JV product, and “made by Kidde”. Price to contractor is a bit sensitive since Sureland has “ambition” on the market Kidde will maintain the target of high level market based on market demand

9 Maintain current channel and distributors to secure the sales at product launch Kidde China 1st-tier Distributor E-Tech (Hong Kong) 2nd-tier Dealers P.R. China (e.g. ASD) Market Development Strategy for Current Situation

10 Maintain E-Tech, but in parallel building new channels and distributors by Kidde China sales teams Kidde China NORTH CHINA SALES OFFICE 2-3 Distributors EAST CHINA SALES OFFICE 2-3 Distributors SOUTH CHINA SALES OFFICE 2-3 Distributors WEST & MID CHINA SALES OFFICE 2-3 Distributors Future Market Development Distribution Channel (planning 2008 onwards)

11 Kidde Current Distribution/Logistic Kidde E-Tech Contractors End User Leader. Sureland PCB and Cable Assembly products

12 Kidde Future Distribution/Logistic (planning 2008 & onwards) Kidde Distributor Contractors End User Leader Sales offices. Sureland Contractors PCB and Cable Assembly products

13 Road Show (Seminar) Plan Q3/07 in East China, (Shanghai, Nanjing or Hangzhou) Q3/07 in South China, (Guangzhou, Shenzhen or Fuzhou) Q3/07 in North China, (Beijing, Tianjin, Dalian, Shenyang or Qingdao) Q1/08 in Middle & west China, (Chengdu, Chongqing, Wuhan or Xi’an) Need in-depth discussion with Sales team.

14 Marketing Promotions We will do New brochure, manual, presentation, price list, etc. Exhibition & Forum Seminar & Training Advertisement

15 Sales hints: Capture Key projects as Kidde reference projects Key project will be very useful for competition. Direct sales is helpful for Key Project. Complete solution documents are prerequisite. Flexible price for key project is necessary (spot pricing is allowed)

16 Sales Channel Kidde Etech (Preferred Distributor) North China Distributors South China Distributors East China Distributors JV Partners Tsingdao YangGuang Tianjin LuYang Beijing WeiGen Tianjin HuaAo Guangzhou HuiNeng Guangzhou HaoXin Xiamen YaoXin Shanghai Tiande Jiangsu XinshiDai Beijing Leader Nanjing Fire CFENanjing GaoKe Hangzhou NengMei Ningbo Deli

17 Price Part NumberProduct DescriptionUnit List Price (RMB) Standard discounted (RMB) (50% off) Large Volume prices (RMB) N < 100km 200km >N ≧ 100km N ≧ 200km JTW-LD-K82017F Fixed temperature analogue cable m JTW-LD-K82012FControl unit boxea6,5003,2503,0002,800 JTW-LD-K82013FTerminal boxea CIF Shanghai

18 Agreement with Etech Appoint Etech as preferred distributor for new LHD sales in Mainland China for a period of 1 year starting from Q4 07 Etech enjoys additional 10% off the floor price for the 3 products as listed in page 17 i.e. RMB23.4/m for the analogue cable, RMB2520 ea for the control box & RMB126 ea for the terminal box Etech will purchase 1.2M meter of analogue cable breakdown in 4 equal installments of 300k meter. First P.O to Kidde HK 2 weeks after signing of agreement. Subsequent 3 P.O. in the first week of Dec 07, Mar 08 & Jun 08 Sales budget of USD3.6M (control box and terminal box not included) Agreement will be terminated if Etech fails to place order in any of the agreed date Etech will provide a list of customers to be “protected”

19 Sales Process Selling price will be fixed and controlled as indicated in the price list. No entertainment of special pricing All P.O. will be placed direct to Etech. Copy regional sales manager for sales credit Etech will acknowledge P.O. Delivery leadtime 6 to 8 weeks All appointed distributors in China will be managed by the respective regional Kidde sales managers Etech will be the first line of support for customer service and quality complaints