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Vice President of Marketing

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Presentation on theme: "Vice President of Marketing"— Presentation transcript:

1 Vice President of Marketing
Marketing Updates Presented by: Brian Price Vice President of Marketing

2 Agenda Business Potential Crafco goal Marketing tactics

3 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 states (WY, NE, WI, AZ) 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 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!

4 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!

5 More Money Coming…When?
FAST Approved 12/2015 (Fixing America’s Surface Transportation Act) Most highway/transit programs to increase 2-4% Fiscal Year began 10/01/16 Short-term Continuing Resolution (CR) provides funding through 12/09/16 House wants to pass short-term CR through 03/2017, in preparation of new administration AASHTO-AGC-ARTBA Joint Committee urging House & Senate to pass FY2017 budget in 2016

6 More Money Coming…When?
President-elect pledged $1 trillion over 10 years on infrastructure projects1,2 Construction stocks soared following Trump’s acceptance speech to rebuild country’s infrastructure1,2 1Zanona, Melanie; Five things to know about Trump’s infrastructure plan. The Hill Article. November 20, 2016. 2Cameron, Doug and Tita, Bob. Donald Trump’s Plans Fire Up Construction Stocks. The Wall Street Journal. November 9, 2016. 6

7 More Money Coming…When?
Nov. Election: States, counties, cities approve $200B for 190+ measures approved For 2016 YTD 260+ measures approved (74% approval) Examples include: Los Angeles County, CA; SF Bay Area, CA; Chicago, IL; Atlanta, GA; Seattle, WA; Austin, TX; Parker County, TX; Charleston County, SC; ME; MI; NJ; RI 7

8 Crafco: Future Looks Great!
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 8

9 Agenda Business Potential Crafco goal Marketing tactics

10 Crafco Goal To double the size of Crafco by 2025 10

11 Focus: Grow Market & Products
Grow slice of pie through better conversion Training Production capacity Customer Service Product Focus Grow size of pie by taking money away from other treatments and growth of transportation budgets 11

12 Agenda Business Potential Crafco goal Marketing tactics

13 Growth By Conversion: Training
Implement Crafco University online program Improve in-person training programs now that we have first year for CU completed Tradeshow training 13

14 Growth By Conversion: Production Capacity
Last year best year for growth Continue increasing production for season Equipment Materials Parts 14

15 Growth By Conversion: Customer Service
Develop a strategic plan for Customer Service to enhance the customer experience 15

16 Growth By Conversion: Product Focus
Cold Mix Mastic PLEXI-meltTM 16

17 Mastic Product Evolution
Promote Mastic One as our primary mastic, and promotion of PolyPatch will decrease Add Mastic One to state approved product lists, replace PolyPatch In the future (~18 month plan) have two mastic part numbers and all promotion for mastic will be for Mastic One Mastic One (current product) Mastic One Cold-Climate TBD (new product) Continue production of PolyPatch Coarse until Mastic One Cold-Climate Discontinue production of PolyPatch Fine immediately and replace with Mastic One After inventory is depleted, discontinue PDS Continue forward with Project Mastic Specification for ASTM 17

18 Launch PLEXI-melt Growth
Product supply has substantially increased, and more is coming Print brochure - available ebrochure - available Specification - available Training module – January 2nd 18

19 2016 FY: Marketing Initiatives
Improve upon multimedia advertising campaign to drive more leads & awareness Improve digital marketing: Convert all websites to state-of-the-art technology Analyze addition of marketing promo tool 19

20 2016 Advertising Awards Roads & Bridges Contractor’s Choice Award
Contractors vote Equipment has to be available Only contractors that use the equipment can vote Super Shot 2016 Gold 2015 Gold 2014 Gold Magnum 2016 Silver

21 2016 Advertising Awards Signet Ad Study (n36) Recall seeing/reading
1st Award For Top 10 8th position Ad Score 101 Trinity Highway 113 Bomag 110 Sherwin Williams 109 Sealmaster 68

22 Grow Crack Sealing Market
Develop story and selling materials to grow crack sealing market Use with DOTs to gain more investment 22

23 Test: Market Expansion Story
Hosted by Gallo Business Media PW Directors > 25,000 population Grant covers airfare, hotel and meals 11/14/2016 – 11/16/2016 Renaissance World Golf Village Resort – St. Augustine, FL 23

24 Preserve Pavement By Crack Sealing
24

25 Crafco Wants To Be Your Crack Sealing Partner
The largest developer of innovative, proven-effective, packaged crack sealant formulated to your needs The world’s largest producer of state-of-the-art, specialized equipment The world’s only manufacturer of pavement preservation packaged sealant AND the equipment to apply them Provides treatment for asphalt or concrete pavement preservation 25

26 Pavement Life Support Is Needed
Primary function of roads1 Carrying or distributing Loads Secondary function of roads Protect the underlying layers from infiltration of: Water Impurities Debris Sunlight References 1Morian, D.A., Gibson, S.D, and Epps, J.A. March Maintaining Flexible Pavements – The Long Term Pavement Performance Experiment SPS-3 5-year Data Analysis. FHWA-RD Federal Highway Administration, Washington, D.C. 2Smith, K.L., and A.R. Romine. 1999a. Materials and Procedures for Sealing and Filling Cracks in Asphalt-Surfaced Pavements. FHWA-RD SHRP-H-348 Asphalt Pavement Repair Manuals of Practice. Strategic Highway Research Program, Federal Highway Administration, Washington, D.C. 1Morian, D.A., Gibson, S.D, and Epps, J.A. March Maintaining Flexible Pavements – The Long Term Pavement Performance Experiment SPS-3 5-year Data Analysis. FHWA-RD Federal Highway Administration, Washington, D.C. 2Smith, K.L., and A.R. Romine. 1999a. Materials and Procedures for Sealing and Filling Cracks in Asphalt-Surfaced Pavements. FHWA-RD SHRP-H-348 Asphalt Pavement Repair Manuals of Practice. Strategic Highway Research Program, Federal Highway Administration, Washington, D.C. 26

27 Cracks Cost Drivers Significant Money Annually
Cupping1 Lipping1 Replace Move to lipping column Open & close to thermal movement Downward movement from loss of structure (water) Upward movement from incompressibles & frost Urban road decay costs average drivers up to $377 each year2 Pothole 1Masson, J-F. August Effective Sealing of Pavement Cracks In Cold Urban Environments. Institute for Research n Construction. National Research Council of Canada. Ottawa, Canada, K1A 0R6. 2Moretti, Frank and Kelly, Carolyn Bonifas. October 3, Nation’s Urban Roads Are Increasingly Deteriorated, Costing Drivers As Much As $800 Each Year. TRIP a national transportation research group. Washington, DC. 27

28 Crack Sealing Is The Lowest Cost Preservation Treatment
28 1Ram, Prashant and Peshkin, David. April Cost Effectiveness of the MDOT Preventive Maintenance Program – Final Report. Michigan Department of Transportation. Bureau of Field Services. Lansing, MI. RC-1579.

29 Crack Sealing Has The Highest Benefit-Cost Ratio
29 1Ram, Prashant and Peshkin, David. April Cost Effectiveness of the MDOT Preventive Maintenance Program – Final Report. Michigan Department of Transportation. Bureau of Field Services. Lansing, MI. RC-1579.

30 Crack Sealing Immediately Saves Money
Cracks that are sealed today, don’t turn into potholes tomorrow 75% of unsealed cracks develop into potholes in < 3 years 1% of sealed cracks develop into potholes in < 3 years Immediate budget savings resulting from less pothole and other repairs 30 1Belangie, Michael C. and Anderson, Douglas I.. May Crack Sealing Methods and Materials For Flexible Pavements. Utah Department of Transportation. Salt Lake City, UT. Report FHWA/UT-85/1.

31 Crack Sealing Extends Sealant & Pavement Service Life
1Smith, K.L., and A.R. Romine. 1999a. Materials and Procedures for Sealing and Filling Cracks in Asphalt-Surfaced Pavements. FHWA-RD SHRP-H-348 Asphalt Pavement Repair Manuals of Practice. Strategic Highway Research Program, Federal Highway Administration, Washington, D.C. 2Smith, K.L., and A.R. Romine. 1999b. LTPP Pavement Maintenance Materials: SHRP Crack Treatment Experiment, Final Report. FHWA-RD Federal Highway Administration, Washington, D.C. 3Filice, Joe. February Study of Crack Sealant Products (Routing and Sealing). ABTR/RD/TM-05/02. Technical Services Branch, Alberta Transportation, Edmonton, Alberta, Canada. 4Morian, D.A., Gibson, S.D, and Epps, J.A. March Maintaining Flexible Pavements – The Long Term Pavement Performance Experiment SPS-3 5-year Data Analysis. FHWA-RD Federal Highway Administration, Washington, D.C. 31

32 Crack Sealing Is Proven Successful Using Metrics
Sealant service life by 7 years+1 Pavement service life by 2-5 yrs2 Pavement Condition Index (PCI) 10 point increase sustained for 7 yrs vs. untreated crack Reduction in cracking distress3 Reduction in potholes and cracking from 75% to 1% of pavements within 3 years Pavement smoothness over a 5-year period vs. control as measured by the International Roughness Index (IRI) 3 Makes other surface treatments significantly more effective as proven by NCAT 32

33 2014 NCHRP 784 Survey Results Crack treatment “State of the Practice” does not reflect “State of the Art” 48% surveyed have a specific preventive maintenance schedule 67% have no training 33

34 Elements In Ideal Crack Sealing Program
Education Attitude Activities Inspections Promotion Budget Program Measurements/Metrics 34

35 Crafco Wants To Be Your Pavement Life Support Partner
Are you satisfied with the sealant service life you observe? Are you satisfied with the crack sealing education you observe? Are you interested in working with Crafco to enhance your crack sealing program? 35 © 2016 Crafco, Inc. November - All rights reserved

36 Results Group Presentations
11 of 21 expressed interest and requested follow-up Population 50, ,000: 4 cities Population 155, ,000: 4 cities Population 400,000-4,600,000: 1 city, 2 counties The majority of the remaining PW Directors said they were working with a Crafco representative 36

37 Crack Sealing Market Expansion Story Materials
Develop: Printed brochure White paper Field Report Economic model Timing: 2017 37

38 In Summary… Grow slice of pie through better conversion
Training Production capacity Customer Service Product Focus Grow size of pie by taking money away from other treatments and growth of transportation budgets 38

39 Questions? 39

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