Marketing Plan Proposal For Linear Group USA

Situation

According to FCC DOC‐285458A1.doc, there are a total of 8620

television transmitters in the United States. By law, on February 17, 2008, all FULL POWER ANALOLG Television stations must switch over to a digitally transmitted signal and cease to operate in analog. According to FCC DOC‐285458A1.doc, as of JUNE 30, 2008, there are 1758 full power television stations: UHF COMMERCIAL TV 796 VHF COMMERCIAL TV 582 UHF EDUCATIONAL TV 252 VHF EDUCATIONAL TV 128 TOTAL Full Power 1758 According to this same document, there are 6862 television transmitters that are NOT REQUIRED to make this transition: ALL CLASS A STATIONS (3KW) 550 ALL TRANSLATORS 4040 ALL LOW POWER TV (1KW or less) 2272 The total for these three categories is 6862

Market specifics

Market Potential

Full Power “upgrades” 10% of the market is likely to upgrade their analog transmitter to operate as a standby or alternate main transmitter. Typical cost $75,000. Unless Linear has a recognized partner this market will be reserved for major incumbents. Full and Medium Power Repl. Market Stations wishing to upgrade to a higher power or replace their existing digital transmitter. This business is going to be about 1% in 2009, 2% in 2010, 3% in 2011, 4% in 2012. 4% is typically the maximum for the replacement market, but on the 10-12 year anniversary of the initial implementation of digital TV there is likely to be a surge in purchases. Average replacement cost of full and medium power station is $300,000. The market share for Linear unless we have an exceptional product at an exceptional price and the right promotion will be very low. Full Power (medium power transmitter) Standby Market A back-up or standby solid state transmitters is going to be required by some major stations. 10% of the market will likely require a lower power solid state transmitter to back-up their main equipment. Assuming a good price point Linear could obtain a reasonable market share of 2.5 - 20% depending on the market awareness and acceptance of our product. Average price for such a product is $80,000.

Full power TV Stations

Market Potential

LPTV New Digital and Gap filler Market 40% of stations will likely plan to replace equipment rather than flashcut. 15% of the LP, Class A and translator stations have already purchased digital equipment. The remaining balance of 5,800 stations will move to digital in some form over the next 3 years. 10% of the market will not purchase digital equipment. The average cost/price is $40,000 for new LPTV and Gap filler products. LPTV (and HPTV) flashcut 60% of the LPTV market will Flashcut their existing analog transmitters by utilizing either a AT720P or AT7001 or competitors equivalent product. Some may require filters and encoders. The average price of Flashcuts will be $15,000.

Low Power TV stations

Market Potential

Canada Typically the Canadian market is no more than 10% of USA. Entry into the market requires a large technical and commercial effort. With the right investment the potential market share would be no more than 25% based on the position of the incumbent Larcan and the strengths of R&S and Harris. The typical transmitter size in Canada is lower than the USA, and there is a strong preference towards solid state and liquid cooling. Mexico Mexico deployment of digital TV will be spread out over the next 10-15 years with the majority of business being inaccessible to Linear; 80% of the business is owned by the two major networks Televisa and TV Azteca. Optimistically we could obtain 25% business from TV Azteca, but most likely will obtain 0% from Televisa. A 15% market share for the rest of the market is possible. ROW ROW market is enormous (over $125M in transmitters typically per year) Linear has no European standard digital (DVB-t) products, no strong representation in most countries and few references outside South America. There are nearly 50 competitors, the larger European networks traditionally choose brand names and local manufacturers. Asia and Africa are open markets and have the largest business potential for Linear.

Canada, Mexico and ROW

Linear SWOT Snapshot Highlights

Strengths Weaknesses

• Valued 30+ Year Brazil History • State-of-the-Art-Technology is Unmatched with 2 year R&D market lead • Satisfied Clients & Experience • Product Leadership • Cost-efficiencies: fabrication=>deploy • International Vision & Reach • Competent Team Members

• Entrenched Competition • Other Barriers to Entry • Lack of Brand Awareness • Unearned Credibility/Trust • Minimalist Marketing • Long-term Commitment? (e.g. Screen Services)

Opportunities Threats

• The Digital Market at Inflection Pt. • The Market is on “Digital Alert” • Linear USA at Inflection Point • Time is Optimum for Strong Entry • Pending new TV delivery services • Market Niches Now - Gap filler, etc. • Secure Patents thus Leadership

• Slow, “As-is”, market development • Competition on offensive attack • Lack of Brand position • Lack of Product awareness • Lack of deep client reference pool • No Constituent base of Influencers • Technology advances unprotected

Linear Marketing Sales Forecast

Potential Market

Linear Marketing Sales Forecast

Scenario 1 Assumptions: “As-is”, no marketing, no international sales manager, no mobile, no US partner

Linear Marketing Sales Forecast

Scenario 2 Assumptions: Marketing investment, additional sales support, alignment with US Partner, mobile product within 12 months

Linear Marketing Sales Forecast

Scenario 3 Assumptions: Very large marketing investment, additional sales support, alignment with US partner, mobile product within 12 months

Marketing Situation

• The Global Digital TV market is on the verge of major expansion

Industry at an Inflection Point Those that are prepared will “feast on the spoils” ...and

victory While...

• Linear Marketing is virtually “Nada” Spartan Web Content and lack of Visual Appeal Minimal Collateral and Inconsistent Quality Fragmented Sales Tools Near non-existent Publicity & Market Perception Minimal Networking Flexibility No Core CRM

• The brand is ill-prepared to meet the pending market

opportunity

The Challenge

• Current “As is” Marketing would mean:

No Growth Incumbent players reap the market Scenario 1 is not even likely

In short, no marketing plan is a “Going out of Business Plan”

Marketing is Mission Critical

• Sales Scenario #2 must be the Target “Reach-out” Goal for Linear to engage 2009.

• An Integrated Marketing Plan is essential to build Sales &

Establish the Opportunities that will take Linear to the Next Level and carry it into future markets.

• The Communications Platform within the Marketing Plan must address how Perceptions are developed, nurtured and established, and act upon them accordingly.

• Integration of all Message types, Themes, Customer Commitments, Product Deliverables, etc., must be consistent and pervasive in all customer-facing Communications and Information resource points.

Constituent Circle of Influence -Outreach-

Customers Obtain & Access Information from Multiple Points of Influence

Constituent Circle of Influence -Delivery-

Effective Marketing Leverages each of these Points to Communicate

Major Marketing in Action (Competitive example: Harris)

64 articles on Harris Broadcast technology and associated topics in 2008 alone

11 Case Studies posted on Harris Broadcast technology

66 White Papers posted on Harris Broadcast technology

251 Brochures posted on Harris Broadcast technology

under 22 categories

37 Events scheduled to promote Harris Broadcast technology

face-to-face with the customer

149 Press Releases distributed on Harris Broadcast technology

in 2008 (145 in 2007)

Minor/Mid level Marketing in Action (Competitive examples: Superior; Pineapple; Technalogix)

Worst of the 3 examples Superior Broadcast has weak content and incomplete web pages posted.

Superior Broadcast’s product description is not product distinctive with repetitive copy for each – very weak, not serving the company’s products at all.

Technalogix has a robust and content rich web site, with a personal approach. They claim to provide the lowest cost transmitters in North America, and back up their clients by using Testimonials. Perhaps the best of the three.

Jimmy Joynt and Benny Springer as a Value Proposition?

Pineapple Technology offers multiple methods of payment. Good idea to serve customers.

Pineapple profiles each product, offers PDF’s and an Online “Get a Quote” option.

Nice service feature.

Pineapple Technology profiles a complete inventory of

product and service – in your face on the Home Page.

To Compete Effectively – we must...

1. Find the Right fit and be perceived as Best-in-Class between the Deep Marketing Investment Pockets of Harris (et al majors) and the minor to medium competitive players

2. Own a Communication Platform that fulfills the information needs of key constituents in the market

3. Consistently Communicate to each constituent and drive positive Brand & Sales outcomes to Business Goals

“tell them over and over and over again!”

4. Control audience and market perceptions regarding the Brand, its Products and Technology – quickly, fluidly & in contrast to the competition

Communication & Message Platform

• Goals: Build Brand Mindshare and Product Awareness Establish / reinforce leadership position

By technology advances, R&D, Cost Containment

Assist in driving sales process Align to bus dev funnel, market drivers, lead generation by and for

product

Educate & Inform on Key Leadership Position Demonstrate development knowledge and vision

Shape Opinion and Influence Constituencies Provide subject matter expertise in key areas

Build Credibility Leverage history, expertise, and customer references

Generate Value Perceptions & Company Vision Across all customer facing touch-points

Effective Marketing Platform (draft highlights)

Audience Goals* Actions Target Metrics

Press & Media Bus/Tech Editors

• Capture Press coverage • Build Press Relations • Build Contacts Database • Build Brand awareness

• Build Media Kit • Dist Press on BusinessWire • Drive outreach, intro calls meet/greets, interviews

• Press pick-ups on wires • Releases 2-3x/mos. • Interviews booked; story pitches proposed/accepted

Sales Calls Prospects

• Drive customer acquisition: new customers/add-on’s • Qualify & reach top prospects • Align CRM to mktg. actions

• Build base of new leads • Build client messages • Profile specific benefits • Weekly(bi) CRM reviews

• New leads funneled in CRM • Converted leads • Sales probability % raised

Existing Customers

• 100% Client Satisfaction • Generate Client Goodwill • Add sales • Spiff/reward clients

• Obtain testimonials • Leverage client’s quotes • Capture product req.’s & feedback, drive roadmap

• Customer quality audits • Willing Customer “Apostles” • Repeat/Add-on sales • Cust. visits/conversations

Trade Events Customers/Prospects

• Traffic of key prospects • Volumes of Client meetings • Press on stand/queries

• Email promo/schedule mtgs. • Product demo on stand defined • Obtain attending Press list

• Sales leads captured • Demo’s delivered • Mtgs./Interview’s held

Speaker Programs Industry Audience

• Position leadership in public forums • Promote thought leadership • Educate audience/market

• Seek key industry spkr. ops in key markets • Align message to plenary and projected key audiences

• Message/presentations delivered by locale/audience • Key contacts developed • Sales/info leads obtained

Advertising Industry Audience

• Reach broadest audiences • Promote, introduce, reinforce brand & products

• Build product(s) campaign to key segment/audiences • Promote/fulfill/capture leads

• Direct sales volume by type new, add-on • Info-seekers funneled in CRM

Web/Collateral Industry Audience

• Integrate brand and product messages across all media • Align product fit to need • Craft new tech & market

• Build client messages • Profile specific benefits • Compose content map/site plan • Reenergize deliverables

• Clicks and page views • Consistent Brand look & feel • Brand/strength developed • Perceptions tracked

Analysts & Investors

• Obtain analyst coverage • Capture composition inclusion

• Identify key constituents • Build case for review • Solicit interviews

• Each analyst group contacted • Relations established • Interviews/info delivered

* Goals are not mutually exclusive

Immediate Actions

• Launch Marketing Platform @ NAB Develop Market Messages, Theme & Tagline

100/10/1 booth strategy

Prepare to Launch New Products Flash Cut, “Gap Filler”, Liquid Cooled, etc.

Target Key Customer Opportunities

Drive invitations and customer meetings – For Brazil, US and International

Capture Interview and Publicity Exposure Prepare Media Kit to target Press Demos – at stand activities

Network with Association Leaders and Influencers

Domestic and International Varied technologies (ATSC, WiMAX, Mobile TV)

Collateral: AT725P Ad Promo; General brochure updates

Director of Marketing (Primary Duties)

• Is responsible for establishing marketing strategies necessary to support company sales objectives and annual goals. Will plan, develop, and execute all corporate marketing initiatives and activities including advertising, public relations, trade shows, lead generation campaigns, website maintenance and all other marketing communications and events.

Work with sales leadership in the planning of campaigns and events that will generate sales leads and obtain and provide feedback on the effectiveness of lead generation efforts.

Develop and establish effective, creative and consistent marketing messages, image, themes and collateral. Align campaigns with overall business development strategy. Measure and refine programs/campaigns.

Manage and coordinate press releases, articles, case studies, white papers, and other media coverage for the company, products, and customers.

Work with product management to prepare marketing and launch material in support of new products or releases, and ensure effective rollout to sales organization and customers.

Develop and work relationships with major industry analysts including Gartner, Forrester, etc. to ensure that the company’s products are known, covered and properly positioned.

Continually analyze effectiveness of the web site, making recommendations as necessary to enhance the promotion of the company, its products and services, and growth of its business.

Conduct analysis to identify opportunities to improve and grow the business; analyze and evaluate the effectiveness of marketing campaigns, methods, costs, and results.

Work with company leadership in networking and engagement of appropriate associations in support of business goals.

Linear Strengths

• Linear in Brazil Leverage history, deep customer relationships and brand

portfolio (GLOBO) Significant tech advances and R&D depth In-country market and share leader

• Product Product performance gains over competition

2-3 year advances in software Cost advantages – 1/3 cost compared to competition in

external markets • Market

Willing to spend to gain share (Acrodyne) 2008 Sales goals ($3M) to be realized 2009 Sales objectives achievable

• People Key placements in sales/bus dev and working

Linear Weaknesses

• Entrenched and aggressive competition, that: Has a long history with established customer base Leverages product roadmap to dissuade shopping Expends on marketing leadership in all customer facing

productions, and in significant volume Events Publicity Web 2.0 Sales tools Media Outreach Advertising

• Product

Product software algorithms are not patented Could negatively impact 2-3 year ongoing advances

Competitive activity/submissions to the FCC Competitive message/position on Mobile TV

• Market

Current level of production and in-house sales tools does not support the market vision for the company

Perceptions and awareness of company and products Long-term Commitment? (e.g. Screen Services)

• People Bandwidth/capacity of existing team to take on more

Linear Opportunities

• Linear USA is at a market Inflection Point of opportunity to build on the ops base built to date

• Linear can cost-effectively add marketing and the advantages will be

realized quickly by Linear Brazil

• With a combination of in-house and external market outreach program execution:

New levels of brand and product awareness can be achieved on an array of customer-facing initiatives

Messaging and sales tool strategies will drive new levels of lead generation

Outreach to media and industry influencers to develop relationships will reinforce Linear product leadership

• With a sales and marketing team in place:

Focused efforts on a customer relations database (CRM) will set a baseline for performance tracking and ROI

Customer, media and influencer database management will drive relationships and set a schedule and flow of information delivery in support of company goals

Linear Threats

• Linear Brazil doesn’t identify with the advantages of adding marketing and does not fund it

• The competition aggressively communicates their mobile TV product roadmap and steers the industry

• Linear product differentiators weaken: Competition’s R&D encroaches on Linear’s transmission

performance advantages Competition restructures price/packaging to offset Brazil

manufacturing advantages Competitors apply for patents and claim ownership

• Without consistent and continual communications from Linear TV US: Competition can dominate the market message and create mass

perceptions on market trends and visions Linear could subside as a niche player and its message on product

leadership may not be sustainable Key influential relationships in the industry may not develop and

flourish in support of the company

Linear USA Marketing Goals

• Firmly Establish Linear in the US TV Market

• Set the Base for Future International Growth

• Build Brand Recognition - Linear brand and product brands

Drive Product Awareness Educate Market on Linear Differentiators Promote Unique Selling Proposition

• Build Business in Support of Sales

Align marketing plan to sales goals/metrics Touch each key customer opportunity Develop and channel leads Fill sales funnel

• Engage in competitive warfare

Prepare & Document Positioning intelligence Messaging point-by-point (to counteract threats) Theater strategies & tactics (in-market engagement)