Agenda Topics

1
Agenda Topics
1. Overview of Elite
2. Selection Criteria
3. Singapore Review
4. The Future
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Singapore Case Study emita
1. Overview of Elite
3
Overview of Elite

• Elite is a leading international furnace
  manufacturer based in Market Harborough
  Leicestershire
• The Elite brand was launched in 1999
• Elite manufacturers a wide range of standard and
  custom designed electric furnaces
• Its products are widely used in Research,
  Education and Industrial applications throughout
  the world

Delivering Excellence through Technical
Innovation People
4
Overview of Elite

• Typical Markets

• Ceramics
• Glass
• Metals Industry
• Electronics
• Petrochemical
• Automotive
• Aerospace

• Materials Testing
• Education
• Finishing Industry
• Superconductivity
• Quality Assurance
• Research
• Nuclear

• Elite exports products to 25 countries through a
  combination of
  distributors, agents, OEMs and
  direct sales.

• Export sales are increasing and currently account
  for 60 of turnover

Delivering Excellence through Technical
Innovation People
5
Singapore Case Study emita
2. Selection Criteria

• Market Selection

• Routes to Market

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Selection Criteria
Market Selection

• Do we have existing contacts / to date
• Is the economy buoyant
• Market Segmentation
• Natural Resources size of territory
• Language / Cultural issues
• Transportation Logistics / Infrastructure
• Trade Barriers (Tax/product standards/insurance)
• Competitor Activity
• Existing Brand awareness
• Spin off Territories
• Resources required to support the local sales
  organisation
• Resources required to support the local sales

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Selection Criteria
Routes to Market
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Singapore Case Study emita
3. Singapore Review

• Review Conclusions - Positives Negatives

• Why did Elite decide to actively trade?

• Elites experience to-date

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Singapore Review
Positives

• Already had trading experience through a previous
  company.
• Elite had already sold products into Singapore
  through various organisations.
• Economy is very buoyant with lots of government
  funding for research and development.
• Singapore has one of the highest per capita Gross
  domestic products (GDP) and is a highly
  successful free market economy

• Singapore Acts as Haven for Stem Cell Research,
  The new York Times Aug 2006
• 10 million in research funding awarded by
  Singapore ASTAR, Agency for Science Technology
  and Research Press Aug 2007

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Singapore Review
Positives

• Strong focused industrial activity.
• Good transport and logistics (both sea air)
• Port of Singapore is the busiest port in the
  world.
• No significant barriers to importation of goods
• Communication is relatively easy. English Is
  widely spoken and understood.
• Spin-off sales potential in Malaysia.

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Singapore Review
Negatives

• Market is totally fragmented-This applies to both
  sales representation and purchasing decision
  makers
• Strong reliance on purchasing by Tender and
  Sealed Bid.
• Strong price competition
• Culture traits
• Innate desire to secure a bargain
• Negotiation is generally a structured form of
  horse trading
• The absolute need to retain respect/ status which
  can compromise loyalty

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Singapore Review
Why did Elite decide to actively trade in
Singapore?

• The knowledge that there was a high ongoing
  demand for furnace
• products
• Pressure from a number of potential distributors
• Elite identified a partner that was well
  connected and who appeared
• to have a similar business philosophy

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Elites experience to-date
Positives

• Sales have increased.
• Elite Brand name has become very well known.
• There is a developing sales potential in Malaysia
  Vietnam due to the activities of our distributor

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Elites experience to-date
Negatives

• Communications
• There is prolific amount of interaction by email
  telephone
• Quotations / specifications have to be very
  comprehensive
• Communications are very selective / evasive
• Commercial
• Budgets are always set unrealistically low
• The customer is always deemed to be right
• High warranty costs
• High costs in supporting the distributor

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Singapore Case Study emita
4. Future Strategy
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The Way Forward

• Put additional resource into distributor training
• Time scale
• - Distributor training 4 months ending
  31/12/07.
• - Distributor activity / review 6 months
  ending 30/06/08.
• After the training has been delivered review the
  distributors performance / approach.
• Possible Outcomes
• a) Continue to trade in Singapore
  through a distributor
  that truly understands and
• supports Elites sales
  marketing objectives.
• b) Stop actively promoting sales in
• Singapore through an
  exclusive
• representative.