Shipment Monitoring Business Plan

We have clearly defined the target market and have differentiated ourselves by offering a unique solution to our customers information needs. Our sales and marketing strategy will be a combination of targeted mass marketing techniques as well as a focused direct sales team approach. Reasonable sales targets have been established with an implementation plan designed to ensure the goals set forth below are achieved.

5.1 Marketing Strategy

NaviTag Technologies will pursue an aggressive sales and marketing plan to achieve market penetration and meet the profitability goals outlined in the key financials section. The marketing plan execution is market specific.

• Shippers – we will engage in a mass marketing and advertising campaign to develop market penetration and brand recognition. A combination of direct mail and targeted media advertising will be utilized to reach the broadest market possible. Search engine optimization techniques will be initiated to increase our visibility on the Internet and drive traffic to us. Direct sales will be reserved for the largest U.S. shippers based on an extensive network of contacts.
• Government Agencies – the agencies seeking improved security tools will be solicited through direct contacts and personal meetings. Contacts have been established within the D.O.T., U.S. Customs, and the U.S.C.G.

Shippers

Due to the large volume and geographic scope of the shipper market, we will engage in a mass marketing and advertising campaign to develop brand recognition and market penetration.

This product and service can be communicated effectively in direct mail and print ads to reach the broadest market possible.

Since there is familiarity with the technology and concept, direct mailings utilizing a targeted industry database from X will be a cost effective means of introducing NaviTag to the market. X is a direct marketer databases listing 50,000 U.S. importing and exporting companies including detail on their industry sector and annual container volumes. Such databases provide for a more focused marketing campaign as well as promotions to targeted customer groups.

Print media advertising will be employed sparingly in industry publications like Xxx, Yyy & Zzz for the U.S. market and 1 & 2 for the European market to reach those not listed in Xxx.

Press releases targeted to specific sectors of the industry will be utilized to announce recent developments in technology and customer acquisition as a cost effective means of exposure to the target market.

Direct sales will be used for the largest U.S. shippers through a personal network of contacts developed by Mr. Magown over a twenty-year career in shipping.

Our marketing campaign will include utilizing search engine optimization techniques to increase our visibility on the Internet and drive traffic to us. Our current website is a promotional description of our services and will encourage potential customers to contact us directly or through the site email.

Industry trade shows draw large numbers of qualified customers that are seeking the latest technological advances to improve their supply chain or reduce transportation cost. We will target six to eight trade shows annually to increase brand awareness and solicit direct sales.

Government Agencies

The government agencies will be solicited directly by the sales staff and personal meetings will be scheduled. Onsite presentations and demonstrations will be performed, and in turn will help establish personal relationships.

These relationships will allow NaviTag Technologies to network contacts throughout the U.S. Government to capitalize on the individual needs of the numerous agencies that have security concerns. Our contacts to date have been met with enthusiasm for this type of solution and resulted in requests for prototypes to perform field testing.

5.2 Sales Strategy

We will be offering a unique solution that will be introduced to the market through targeted advertising, direct mail, website optimization and direct sales.

The direct sales force will consist of three industry-seasoned sales people lead by Mr. Magown. Traffic from mass marketing will be serviced by the sales admin located in Boston.

Mr. Magown will manage the government agency and large shipper markets through personal sales calls. This market is a long term, repetitive business where relationships are a key component to success.

Sales will be targeted to U.S. companies in the early stages as this market alone exceeds 500,000 shippers. Plans to expand into the European and Asia markets are scheduled for 2004 and beyond.

5.2.1 Sales Forecast

The table below outlines the sales forecast and cost of goods sold. The forecast is based on reasonable sales projections within this very large market.

The exponential growth of the access charge revenues is based on the cumulative volume of the NaviTag units sold. For every unit sold, NaviTag Technologies charges a monthly fee to access the data that remains in effect for as long as the unit is in service.

5.3 Milestones

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.