Heavy Lifting, Inc.'s market presence will be achieved by identifying and serving a specialized industry safety need and introducing an accurate independent and verifiable weight & balance tool to the industry.
Our value proposition here at Heavy Lifting, Inc. is that we will bring our innovative product and service to the aviation industry through the premium airports of the World. Our product will have the unique properties of sustainable revenue generation whilst at the same time providing an incalculable positive benefit to improving flight safety.
Because Heavy Lifting, Inc. is introducing a new concept to the aviation industry, we feel we will have the market edge for at least the first three years. Civil aviation is an industry that traditionally is highly capital intensive. Aircraft and associated equipment is expensive and complex. The safety regulations involved in civil aviation often take years to formulate and implement.
Heavy Lifting, Inc. understands the business and knows the power of public opinion with regard to aircraft accidents and their aftermath. Channelling this power will be one of the keys to our success.
The nature of the safety products and the certification standards that are required to be demonstrated by any new entrant into the civil aviation environment are well understood by Heavy Lifting, Inc. As the creator of this new aviation product, Heavy Lifting, Inc. by default is the world expert, at least for the first ten years. Later, this valuable experience can be used as a mature market competitive edge.
Marketing is targeted at:
As the customer base grows, we will increase lobbying at National Government level to introduce legislation mandating the use of aircraft weight & balance systems such as the Heavy Lifting system. The ideal marketing situation is to have the product declared mandatory. International organizations such as ICAO, IFALPA and IATA need to be targeted to ensure world-wide exposure to the product and increase the potential for wider mandatory requirements.
The uniqueness of the Heavy Lifting product is a major marketing focus. Current systems are not accurate, independent or verifiable. The emphasis is not on the need for the Heavy Lifting system, but rather on the loss of revenue opportunities from not having the Heavy Lifting system.
Educational Campaigns as Marketing
Heavy Lifting, Inc. believes that education of the civil aviation community about the Heavy Lifting concept is essential. To this end, nonprofit organizations such as IFALPA and other pilot/flight crew representative bodies are encouraged to contact Heavy Lifting, Inc. for free and subsidized services. The pilot in command after all is the one person that traditionally carried the can for over-weight infractions. Hopefully, with the advent of the Heavy Lifting concept, products and system, this will not be the case in the future.
Heavy Lifting, Inc. will offer consumer rights groups and passenger interest groups a range of services and information based on the above mentioned principle.The ability of the organization to pay.
Heavy Lifting, Inc. will offer consultancy services to ICAO regarding the need for an amendment to Annex 6 Chap 5 to include the words, "by verifiable means, such as an aircraft weighbridge." Heavy Lifting can either:
Heavy Lifting, Inc. will offer educational institutions such as flying schools, aviation colleges and University students access to reports, and summaries from Heavy Lifting data services, free of charge on presentation of approved credentials (Student ID).
The most important target markets are:
Pricing for the Deluxe Heavy Lifting Mk I is $1,000,000, in-ground installed, tested and verified accurate.
The Heavy Lifting Mk I weigh bridge includes:
Additional data acquisition and transfer software and hardware are available from Heavy Lifting, Inc..
Heavy Lifting, Inc. acknowledges that in the beginning the price tag of up to one million American dollars ($1M USD ) per system may be difficult for the industry to accept. To enable a smooth acceleration of sales, Heavy Lifting, Inc. will offer creative financing plans including, lease, lease to buy and sub-lease programs.
The financing of the product opens the door to a subsidiary cash flow business as a money lender. Heavy Lifting Finance, Inc. will be another lucrative cash flow venture for the parent company.
Distribution is by licensed local manufacturer in the first instance. In the event that a market does not have the infrastructure or local weigh bridge manufacturer to meet Heavy Lifting's high quality standards, the manufacture and installation will be done from our headquarters in California.
For example, the installation in Gold Coast City, CA will be done by local weigh bridge manufacturer [proprietary and confidential information removed] under contract to Heavy Lifting, Inc., and the software and data link hardware will be done by Heavy Lifting, Inc.'s staff.
Similarly, the introduction of the Heavy Lifting products into Europe will be controlled from Dublin, Ireland. After the trial and acceptance of the initial unit at Dublin International Airport local contractors will be utilized for additional units at Schipol International, Amsterdam, Netherlands, Fraport International, Frankfurt Main, Germany and so on.
As the ICAO world headquarters are in Canada, it follows that trial and installation of the first Canadian unit will be in Canada.
The promotion strategy of Heavy Lifting, Inc. is to introduce the first Heavy Lifting products under FAA/CAA trial conditions and then, in coordination with the airport management, launch media and ongoing news items concerning Heavy Lifting's innovations. Subsequent promotional opportunities will be capitalized upon as and when they arise in the news media. Heavy Lifting has only a small marketing and promotion budget, for press releases and media relations, to generate media interest in the product itself to promote the business. Additionally, media appearances and news releases by the company will generate aviation news through a carefully-constructed strategic media plan.
International industry forums such as trade shows, flight safety seminars, RAES forums and the like will be actively pursued to gain access to present discussion and informative presentations of the Heavy Lifting concept and product. Pilot representative organizations, such as the International Federation of Airline Pilots (IFALPA), aircraft owners groups and industry magazines will be used to promote Heavy Lifting systems.
The primary methods of product promotion will be direct marketing with potential customers, establishing our product as newsworthy to industry media, an educational campaign focusing on consumer groups, and promotions and information provided on the company's website.
To meet our goals, the following will be essential:
Initially the marketing plan will be carried out by the founder executives of Heavy Lifting, Inc. In year one, Captain Airway will be involved in the U.S. Market while simultaneously Mr. B. Freeway will be involved in the EU and U.K. markets. Captain Airway and B. Freeway will both combine their efforts in Germany in the latter half of 2007. By 2008 the staff of Heavy Lifting, Inc. will be increased to cater for projects in Germany, Australia, New Zealand, Europe and Canada, as well as the U.S. 2009 will see the marketing programs expand into additional markets in United Kingdom and SE Asia.
Our marketing program plans are:
To initially approach the major airlines in the U.S., regarding the advantages offered by way of "peace of mind," reduced fuel and maintenance costs and reduced noise & emissions by the use of Heavy Lifting weight & balance systems. Later, to approach other airlines of the world in a similar manner.
To approach airport owners in the U.S. and the world to offer the Heavy Lifting solution to landing fee problems. Offer a new landing fee paradigm that will generate revenue through yield management.
To approach the Insurance industry with a view to supporting the introduction of the Heavy Lifting weight & balance system concept to International civil aviation by way of premium discounts and other incentives.
To approach legal firms involved in aircraft accident litigation to offer factual weight & balance data and expert witness services.
To approach the major aircraft manufacturers such as Boeing Aeroplane Company and Airbus, with a view to creating service partnerships between Heavy Lifting, Inc. and the manufacturer in the interests of flight safety and sales of on board weight & balance systems.
Provide consultant services to airport owners, aircraft operators, insurance industry members and aircraft manufacturers regarding the installation, operation, maintenance, compliance and verification features and revenue earning potential of the Heavy Lifting system.
Heavy Lifting, Inc.'s sales strategy is to accurately plan and implement each and every projected sale as identified by marketing. Thus, when a customer says they are interested in our product, we will be able to provide them with an accurate and reliable timetable for completion of the project.
Customers will be consulted at every step of the sales process from taking the order, customizing the product, installing and testing the product, and finally handing over the product to the customer on time and with promised performance and reliability.
There will be no bonuses for early completion, as quality assurance and long-term reliability are too important to rush. We would rather get it right than get it done early.
Work on any product does not commence until details of the agreed method of payment are received and approved by Heavy Lifting, Inc.'s CEO.
The company is forecasting sales of $4,000,000 in year one of operations - half of this will come from the sale of the prototypes, listed in the first month of the plan, below. Year two will reach $22,000,000, year three $64,000,000, year four $126,000,000 and year five $240,000,000. This is from sales primarily in three main markets: North America, Australasia, and Europe.
Following the trial and acceptance of Heavy Lifting systems by Irish Aviation Authority (IAA) at Dublin International Airport, Ireland, a branch office will be opened there to handle Europe's marketing and sales.
Year three, following the successful acceptance by Transport Canada of the Heavy Lifting system will see the planned opening of our office in Toronto, Canada.
Following the successful introduction and acceptance of the Heavy Lifting system in Asia and South East Asia a regional office will be opened in possibly Bangkok, Thailand (Regional home of ICAO) or Singapore.
The fifth year of Global sales may necessitate the opening of branch offices in South America. The need for this office will be dictated by Government assistance and state infrastructure.
The forecasts are for Heavy Lifting Mk I units of three model types:
No account has been taken of the flow on financial benefits from additional product enhancements or revenues from finance services. Like wise no account has been taken of special customization needs nor of additional regulatory authority data fees. Research and development costs have been assumed to have been recouped in the first year of operations. Subsequent R & D will be budgeted for as the company and markets mature.
The direct costs listed in the table, below, cover the inventory necessary to manufacture the weigh bridges. After the prototypes are tested, we will contract out the manufacturing of subsequent weigh bridges to reputable local companies - we are currently examining five possible manufacturers with the expertise and facilities necessary to produce and deliver future weigh bridges. Costs for the manufacturing labor are listed in the Profit and Loss table, under "manufacturing costs."
All sales are cash-basis except consultant fees, which are not predictable and are therefore billed on terms of net 60 days.
In year one Captain Airway and Mr. B. Freeway will be working full time in the U.S. and Dublin to achieve the first six (6) inaugural installations. In year two (2) the staff will have to be expanded to allow for six project managers. In addition to the two (2) principals, C. Highway will be involved in projects in the Europe and Australia. It is envisaged that by year three (3) and four (4), six (6) full time project managers will be employed.
The company plans to establish strategic alliances in two important areas of operation:
The following table lists important program milestones, with dates and managers in charge and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.
Management expects that the current regulatory climate in the U.S., New Zealand, Australia and Europe favors a systems approach to flight safety and that this is an ideal time to introduce a new safety concept and product line. 2005, with a Global return to growth in the airline industry, is an opportune time to start our company.
The cost of producing each Heavy Lifting weigh bridge should reduce as R & D costs are absorbed.
Calibration costs can be reduced the more units that are installed at one location. For example, the concrete weight measurement loads can be shared, and thus capital and operating costs can be reduced.