1. Marketing Updates
Brian Price

2. Marketing explained Performance Crafco goal Marketing tactics
Discussion Points
Marketing explained
Performance
Crafco goal
Marketing tactics

3. What is Advertising & Marketing
The placement of announcements and persuasive messages in time or space purchased in any of the mass media who seek to inform and/or persuade members of a target market about their products, services, organizations, or ideas.
Marketing
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
American Marketing Association July 2013

4. Marketing Runs Deep

5. Marketing Is Involved In Every Step To Drive Business
Marketing Funnel Sales Activities
Awareness
Consideration
Conversion
Loyalty
Advocacy
Lead Generation
Lead Qualification
Closure
Portfolio Mgt RM
Word of mouth
Referral

6. Marketing explained Performance Crafco goal Marketing tactics
Discussion Points
Marketing explained
Performance
Crafco goal
Marketing tactics

7. 70% of Business is Sealant, Equipment & Patching
Analytics
70% of Business is Sealant, Equipment & Patching

8. Sealant: Annual LB Sold/Fiscal Year
Analytics
Sealant: Annual LB Sold/Fiscal Year
2011/2012 was purchase of Deery
Average 4 year volume growth was 1.7%
2015 vs volume growth was 4.9%
We believe we can continue to grow this market

9. Mastic: Annual LB Sold/Fiscal Year
Analytics
Mastic: Annual LB Sold/Fiscal Year
2011/2012 was purchase of Deery
Average 4 year volume growth was 30.4%
2015 vs volume growth was 56.7%
We believe we can continue to grow this market

10. Major Equipment: Annual LB Sold/Fiscal Year
Analytics
Major Equipment: Annual LB Sold/Fiscal Year
2011/2012 was purchase of Deery
Average 4 year volume growth was 5.4%
2015 vs volume growth was 14.4%
We believe we can continue to grow this market

11. Imagine Crafco three-times it’s current size – and let’s get there!
Business Potential
Crafco is the leader and there is an abundance of potential for growth
Top 5 states (SD, WY, MO, NE, WI) demonstrate Crafco sales can exceed $1.45 per capita
If achieved $1.45 per capita for all states then Crafco would triple in size
This does not include the abundance of business available with parking lots and home-owners like Sealmaster services
Of interest, WY, NE, SD are the most cost-effective highway systems in 2012 (Per Reason Foundation’s 21st Annual Report on The Performance of State Highway Systems published in 2014)
Imagine Crafco three-times it’s current size – and let’s get there!

12. Growth isn’t going to be easy, but there is GREAT OPPORTUNITY AHEAD!
Business Potential
One could argue that there isn’t enough DOT money available to achieve that potential
The money is available, but being used for different initiatives
Proof:
New Mexico is rated 50th (last place) in Maintenance Disbursement Per State-Controlled Mile ($955/mile). However for Crafco NM is the 15th highest per capita
WY is rated 41st in Maintenance Disbursement Per State-Controlled Mile ($11,308/mile). However for Crafco WY is the 2nd highest per capita.
The average Disbursement Per State-Controlled Mile is $26,079
The highest Disbursement Per State-Controlled Mile is $154,552 (NJ)
Growth isn’t going to be easy, but there is GREAT OPPORTUNITY AHEAD!

13. The Crafco Future is BRIGHT
We can take road repair to new heights!
There has never been a better time to be a part of Crafco!
We are developing the resources to achieve significant growth. It is going to take time to put this together (est. 1-2 years)

14. Marketing explained Performance Crafco goal Marketing tactics
Discussion Points
Marketing explained
Performance
Crafco goal
Marketing tactics

15. To double the size of Crafco by 2025
Crafco Goal
To double the size of Crafco by 2025

16. Focus: Grow Market & Products
To enhance growth we need to work differently
Improve marketing via a customer-focused problem-solution approach
Improve training via a Training “Center-Of-Excellence” with Crafco University
Improve competitive selling:
To grow slice of pie through better conversion
To grow size of pie by taking money away from other treatments and through growth of transportation budgets.
Increased manufacturing capacity to better meet customer demand

17. Marketing explained Performance Crafco goal Marketing tactics
Discussion Points
Marketing explained
Performance
Crafco goal
Marketing tactics

18. Marketing Tactics for Growth
Awareness & Consideration
Ads to expand leads
Trade show participation
Conversion
Develop customer-focused problem/solution sales materials
Training: Crafco University
Loyalty
Evolve sales materials to better cross-sell
Advocacy
Develop Field Reports and expand advocacy messages
Awareness
Consideration
Conversion
Loyalty
Advocacy

19. Awareness & Consideration
We Can Drive More Leads
(Average Leads Per Month By Quarter)
Mo./Yr.
Primary
Secondary
Total
09/13 25
12/13 42
03/14 69
06/14 67
09/14 53 47
100
12/14 50
140
191
03/15 91
495
586
06/15 71
710
781
This represents:
~264% increase in primary leads
~3,024% increase total leads

20. Advertising Media Goal
Maintain current advertising mix, increase frequency of eTactics
Publication
Crafco Print
Storefront
eNews
eCases
Deery Print
Pavement Maintenance & Reconstruction Y
Concrete Contractor
Roads & Bridges
Allied Paving Equipment
Asphalt Magazine
Pavement Preservation Journal
IGGA eBlast
PPRA Newsletter
Better Roads/Equipment World
The Maintainer

21. A Significant Source Of Leads
Trade Shows & Meetings
A Significant Source Of Leads
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Jun.
APWA
NTTC
NPE
WOC
WOA
Distributor
Marketing Leads:
5 National Trade Shows
Crafco Distributor Meeting (even years)
Marketing Supports:
50 regional and international shows/year
25% increase over last five years, and growing
Goals:
Develop trade show exhibit goals, KPIs and training to improve results
Develop holistic trade show strategy and communication plan
Improve tabletop displays
Replace worn displays, and add tablecloth and literature rack to package
Existing meetings (January-March timeframe):
Crafco Distributor Meeting (even years)
Crafco Owner’s Meeting & Customer Meeting (odd years)
Existing national trade shows that marketing has “ownership” of:
APWA Congress (August/September)
NTTC (September/October)
NPE (January/February)
WOC (January/February)
WOA (March, on two years, off one year)
Conexpo (March, every three years)
Marketing also provides collateral and/or support for approximately 50 regional and international shows per year. Volume up 25% over last five years and requests continue to increase.
Many of the current tabletop displays are in less than desirable condition. Most common issues are the constant need to repair or replace cases, lighting, and graphics due to non-durability of materials.
Currently in process of redesigning general booth graphics
Making immediate purchase of higher quality booth to evaluate prior to replacing all booths in new fiscal year.
New booth has fabric graphics, which are more durable than plastic
New booth is flat as opposed to curved, which will help better utilize tabletop space
New booth has ability to print on both sides of fabric, better utilizing resources for multiple messages depending on show focus (i.e. general graphics can be on one side and bridge graphics on other side)
New booth will have placards that can be added onto booth frame, depending on show or material focus
Due to increased demand, will be adding another booth into inventory, possibly storing one full time at Allentown facility to cut down on shipping
To achieve professional appearance, will incorporate portable literature rack and Crafco tablecloth into “tabletop booth package”
Consider future enhancement (2016/17 or later) of display for videos once developed
Develop plan for lead tracking. Currently, trade show leads are organized and distributed to sales management for follow-up or forwarding onto appropriate parties. Once leads are sent out from marketing, we are not aware of the actions taken or the outcome. By tracking the communications and resulting sales, Crafco can then have a better understanding of ROI for each trade show.
Recognize the importance of booth personnel by investing in trade show training. While there are numerous additional factors, the effectiveness of exhibit team is very impactful on the ultimate success of qualified lead generation. An experienced outside vendor will be hired to develop training program for Crafco, and will handle initial instruction; training will then transition to being in-house.
Integrate full-disclosure communication surrounding each show from each person. As a team, convey all goings-on related to show (i.e. what classes are being attended by who, are any representatives presenting, are any offsite meetings being attended, special dinners, etc.) We are a more united front when the whole team is aware of what all attending Crafco representatives are participating in.
Continually evaluate if there are additional shows Crafco should be participating in, or if there are shows we currently attend that marketing should have more involvement in.
While changes will be implemented immediately, there are some processes, that although started in the upcoming fiscal year, may not be fully realized until the following fiscal year.
As marketing continually gains company alignment on products and industry practices, will transition those concepts to trade show display materials that will convey our company strengths to audience.
In-line with trade show training, develop national trade show team. Each employee has different strengths and weaknesses; we want to utilize those whose strength is trade show performance, selecting individuals who enjoy being at trade shows and excel at working them. There is an understanding that working trade shows is time consuming and pulls away from other duties. Since the purpose is to utilize the best suited representatives, it’s proposed to reward them in some way such as monetarily or other agreed upon method.
Crafco currently participates regularly in presentations at NTTC and WOA. As updated slide decks continue to be created, formulate a plan to present at more trade shows. Calls for presentations can be as far out as a year, so results won’t be immediate, but getting more speakers on show agendas is an ideal way to increase Crafco’s exposure with minimal financial investment.
Marketing has typically not participated in trade show sponsorships or hospitality events, but exceptions are being made for upcoming fiscal calendar
APWA National Congress is taking place in Phoenix, August 30 – September 1, With Arizona being our home state, we’d like a more pronounced presence at the show. Currently in discussion regarding registration, beer on show floor, and convention center/hotel welcome signage sponsorship opportunities.
NPE is taking place January 27-29, 2016 in Charlotte, NC. Show management proposed to the advisory board, which Crafco is a part of, a buyout of the NASCAR Hall of Fame, with several exhibitors participating in sponsorships to replace separate hospitality events. Awaiting more detailed information, but Crafco is interested in taking part in this event which will monopolize all NPE attendees.

22. Need to Drive Conversion & Loyalty
Training Is Paramount
Background
January 29 – 31, 2014 Distributor Meeting presentation By Dale S. Decker, P.E. covering the ‘State-of-the-Practice’
NCHRP Report 784 published 10/2014; titled ‘Best Practices For Crack Treatments For Asphalt Pavements’
Work sponsored by AASHTO in cooperation with FHWA and conducted by NCHRP
Topics covered:
Chapter 1: Introduction
Chapter 2: State-of-the-Art
Chapter 3: State-of-the-Practice
Chapter 4: Best Practices for Crack Treatments
NCPP Crack Sealing Certification workshop
Top of the Curve materials; developing tests based on this material
3 year certification for contractors and municipalities
3 state pilot program (NV, IL, and MS)
ISSA Workshop January 19-21, 2016 in Las Vegas, NV

23. Clearly the market is not mature, and there is a need for training
Need to Drive Conversion & Loyalty
Training Is Paramount
Summary of NCHRP
67% have no training and/or certification program
Most rely on on-the-job training
NCHRP 1967 report recommended education program
MNDOT in 2008 recommends training
Definition of crack sealing and crack filling well established yet 62% of respondents indicated no distinction is made between the two
50% of respondents never rout
Clearly the market is not mature, and there is a need for training

24. Website Is Cornerstone
Need to Drive Conversion & Loyalty
Website Is Cornerstone

25. Support Materials Are Important
Need to Drive Conversion & Loyalty
Support Materials Are Important
Evolve support materials:
Literature
Product Data Sheets
Installation Instructions
Field Reports
Convention banners
Co-ops
Miscellaneous materials

26. Expanding To Support Growth!
Crafco Marketing Department
Expanding To Support Growth!

27. 2015-16 Marketing Deliverables
Complete a Field Report every 6 weeks by 07/31/15
Execute multimedia advertising spend & track metrics by 08/15/15
Build plan to maximize lead generation at conventions in 2016/2017 By 12/31/15
Develop and implement new Crafco website featuring a communication plan & repository for distributors by 12/31/15
Develop and implement PMSI eCommerce website by 12/31/15
Build marketing plan with & for PMSI by 01/31/16
Execute Distributor Meeting & track metrics by 02/29/16
Build Core Training Basics – See training initiatives timeline
Establish Training Plan – See training initiatives timeline
Updated 06/12/2014

28. Questions? Next Steps To enhance growth we need to work differently
Improve marketing via a customer-focused problem-solution approach
Improve training via a Training “Center-Of-Excellence” with Crafco University
Improve competitive selling
Increased manufacturing capacity to better meet customer demand
Questions?