Rekayasa Tambang Indonesia

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Mining Software Business Plan

Strategy and Implementation Summary

Purchases will ultimately occur through direct sales. Mine engineers and geologists who have the most influence on the purchase decision will need to see demonstrations or will need a technical sales presentation. These individuals are usually members of a clients' decision board who have the authority to purchase this system.

Initial contact will be made by either telephone or a combination of telephone, email, and fax. In this initial contact, the Sales Manager will make an arrangement for a technical presentation in front of the clients' decision board. To avoid misinterpretation, all the information on the offered products and services will not be sent to prospects, but hand-delivered by the Sales Manager during his/her technical presentation. When the Sales Manager of RTI is visiting the prospect's site, he/she will bring a demo system that is able to be set up and operated so the client can get a feel for the type of system and for the type of data the system generates.

All promotion efforts will be congruent with the mission to establish a quality reputation in the industry and truly create a quality brand image with RTI products and services. Industrial marketing is dissimilar to traditional consumer marketing. It is an interactive and time intensive process to establish a relationship and reputation. Establishing the relationship is beneficial for the obvious reason, it provides RTI with sales revenue, but, even more importantly, it provides RTI with an information conduit to the industry. A healthy relationship with the customer base will generate ideas, innovations, and other immeasurable intangibles.

Also, since long-term customer satisfaction is the most important key factor to its survival, RTI will offer the client the Productivity Improvement Perpetuation Program and keep in close contact with all clients and solicit ideas on improvements and necessary changes.

5.1 Competitive Edge

The President and Vice President Sales and Marketing of RTI have been working with the prospective clients in the Indonesian mining industry for more than 14 years, maintaining close and effective relationships with the prospective clients' decision boards at the senior level, and are fully familiar with, and have a good knowledge about, Indonesia as well as the Asia–Pacific business environment.

MINER DELTA is a recognized leader in supplying integrated geological and mining software technologies and computerized consulting services to the mining industries.

The MINER DELTA system is unique and improves upon current methods because of its three distinct characteristics. Also, the MINER DELTA system saves money and increases mineral recovery by providing equipment operators with real-time data to monitor and adjust their work-in-progress production, as well as empowering mine engineers with a continuous operational data log with which to make operations adjustments of larger scope.

5.2 Sales Strategy

RTI's sales strategy focuses first on building the identity of the company with the large domestic open pit coal mines, open pit metal mines, underground coal mines, underground metal mines and quarry mines who are interested in cutting costs to improve the bottom line. The President and the Vice President of Sales and Marketing of RTI have been able to find these customers using direct sales approaches.

RTI has to sell integration systems which are unique and improve upon current methods because of their three distinct characteristics, i.e. automatic, non-disruptive, and accurate. These systems save money and increase mineral recovery by providing equipment operators with real-time data to monitor and adjust their work-in-progress production as well as empowering mine engineers with a continuous operational data log with which to make operations adjustments of larger scope.

The targeted monthly sales between January and May, 2001 is the result of the intensive direct sales approaches, including technical presentations, mine operations studies, and project proposals which have been done between August and December, 2000.

5.2.1 Sales Forecast

The yearly total sales chart summarizes RTI's ambitious sales forecast.

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Geological Interpretation and Modeling $189,000 $220,922 $258,236 $301,852 $352,835
Mine Design $604,800 $706,951 $826,355 $965,926 $1,129,071
Mining Optimization $113,400 $132,553 $154,941 $181,111 $211,701
Mine Scheduling $302,400 $353,475 $413,177 $482,963 $564,535
Dump Design and Rehabilitation $50,400 $58,913 $68,863 $80,494 $94,089
Total Sales $1,260,000 $1,472,814 $1,721,572 $2,012,346 $2,352,231
Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5
Geological Interpretation and Modeling $35,154 $41,092 $48,032 $56,145 $65,628
Mine Design $112,493 $131,493 $153,702 $179,662 $210,007
Mining Optimization $210,924 $246,549 $288,191 $336,866 $393,763
Mine Scheduling $56,246 $65,746 $78,850 $92,168 $107,735
Dump Design and Rehabilitation $9,374 $10,957 $12,808 $14,971 $17,500
Subtotal Direct Cost of Sales $424,192 $495,837 $581,584 $679,812 $794,632

5.3 Milestones

The accompanying bar chart and table show specific milestones, with responsibilities assigned, dates, and (in most cases) budgets. RTI is focusing in this plan on a few key milestones to be accomplished.

Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 11/1/2000 12/23/2000 $5,000 Managing Partner CEO, President
Stationery 11/6/2000 11/18/2000 $3,000 Administrative Officer Administration
Brochures 11/1/2000 11/30/2000 $5,000 Administrative Officer Administration
Office Equipment 12/1/2000 12/22/2000 $3,000 Administrative Officer Administration
Technical Presentation at .... in East Kalimantan 1/2/2001 1/12/2001 $1,700 Sales Manager - Mining Sales & Marketing
Technical Presentation at .... in East Kalimantan 1/2/2001 1/12/2001 $1,700 Sales Manager - Geology Sales & Marketing
Technical Presentation at .... in South Sumatra 2/5/2001 2/17/2001 $1,700 Sales Manager - Mining Sales & Marketing
Technical Presentation at .... in South Sumatra 2/5/2001 2/17/2001 $1,700 Sales Manager - Geology Sales & Marketing
Technical Presentation at ... in Central Sumatra 3/5/2001 3/17/2001 $1,700 Sales Manager - Mining Sales & Marketing
Technical Presentation at .... in Central Sumatra 3/5/2001 3/17/2001 $1,700 Sales Manager - Geology Sales & Marketing
Technical Presentation at .... in Central Sulawesi 4/2/2001 4/13/2001 $1,700 Sales Manager - Mining Sales & Marketing
Technical Presentation at .... in Central Sulawesi 4/2/2001 4/13/2001 $1,700 Sales Manager - Geology Sales & Marketing
Technical Presentation at .... in Irian Jaya 4/23/2001 5/4/2001 $1,700 Sales Manager - Mining Sales & Marketing
Technical Presentation at .... in Irian Jaya 4/23/2001 5/4/2001 $1,700 Sales Manager - Geology Sales & Marketing
Technical Presentation at .... in West Java 5/14/2001 5/25/2001 $1,700 Sales Manager - Mining Sales & Marketing
Technical Presentation at ... in West Java 5/14/2001 5/25/2001 $1,700 Sales Manager - Geology Sales & Marketing
Operations Analysis at the most Prospective Clients' Site 1/8/2001 5/25/2001 $12,000 VP Sales & Marketing Department
Technical Proposals to the Prospective Clients 2/5/2001 6/25/2001 $2,000 VP Sales & Marketing Sales & Marketing
Participating in Indonesia Mining Exhibition 11/1/2001 11/14/2001 $6,000 General Manager Operations
Totals $56,400