GLOBAL MARKETING Multiport – Marketing Development This presentation contains: I : Multiport’s Marketing in the world. II : The most recent developments in the marketing field of Multiport. III : Brainstorming meeting August 2007 – summary. IV : Multiport’s Global Marketing Plan – Basics. V : Current Financial Status – summary of status. VI : Questions and Answers VII: Proposal to the Membership on Multiport’s Global Marketing Multiport – Marketing in the world 1. During the past 10 years a continuous discussion and exchange of views has taken place on the Marketing activities of Multiport. 2. Multiport has often reviewed the status of other networks. The traditional three: Inchcape – GAC – Barwil, are all three corporations with a network of owned, corporately controlled offices. One should not compare Multiport with these corporate agencies. Multiport – Marketing in the world 3. More recently, a new network, S5, has been established. With 6 shareholders, each is obligated to cover large geographical areas. Each shareholder has invested approx. US$ 1 million each in S5, mainly in management & staff, image building and I.T.-systems. But S5 is still very different from Multiport. 4. Multiport is unique – one of a kind. The concept of Multiport : one exclusive member per country, operating as an independent ship agent (ranking in top 5) in his country, and submitting to a strict scrutiny on financial strength and commercial reputation both on joining, and annually thereafter. Multiport – Marketing in the world 5. Comparing Multiport with other networks is not really possible. As said, Multiport is unique. Measuring business (no. of ships handled), by market image (public relations), by market brand recognition, are issues for Multiport’s own assessment. 6. The continued, and more rapidly than ever before, changing world of shipping enforces adoption of change. If members, under the Multiport umbrella, want to continue to survive, Multiport and its members need to adopt change, need to adjust to the ongoing evolution in the shipping industry. Multiport – Marketing in the world 7. Maintaining business as well as expanding business requires investment, requires fast and quality communication, requires qualified experienced staff having access to the global market place – all in a pro- active way of doing business. Multiport and its members need to move forward in the marketing field. Multiport – The most recent marketing developments 8. Past and current marketing developments. Past period 1995 – 2005 – Continued discussions. Multiport – The most recent marketing developments 9. Past initiatives: * the London Sales Hub (the Hull Blyth initiative). * Multiport Marine Services Ltd. Although less dedicated in the marketing field, both initiatives did not succeed for a variety of meanwhile known facts. In Autumn 2005, the Mediterranean Marketing initiative discussion was concluded and the plan was put into action as from January 2006. Multiport – The most recent marketing developments 10. No longer a discussion and exchange of views, the Mediterranean Members put into action the marketing for their regional members with the intention to expand the business for the Multiport members in the Mediterranean Region, and to see if the initiative would become successful enough to recommend to the members worldwide. Multiport – The most recent marketing developments 11. The Mediterranean Marketing Initiative was able to be actioned due to the availability of Mr. James Wannell, not only a past Multiport Board Member and Vice- Chairman, but also fully familiar with Multiport and its members next to having valuable experience as a specialist, in the shipping industry. Multiport – The most recent marketing developments 12. The Mediterranean Marketing Initiative is funded by the Mediterranean members (with centralized billing via the GSL) and has meanwhile been joined with financial participation of members outside the Mediterranean region ( Canada, Senegal, USA Gulf and Portugal ). 13. The general feedback of the participants is that members are experiencing this as a good value-added service. Some actual business successes have been reported in addition to the value of sharing marketing information in a structured way, know-how exchange, and introductions and referrals resulting in overall satisfaction by the participants in this initiative. Multiport – The most recent marketing developments 14. However, the Mediterranean Marketing Initiative has created a network in a network. This was of course not intended. The question is whether this is serving Multiport overall ? Whereas the Mediterranean participants pay for marketing services and sharing know-how, other Multiport members provide similar information free of charge, such as Cory’s cruise contacts / reports posted on the Multiport website. 15. In the interest of Multiport and all members, the Marketing initiative should become a global initiative, funded by all members with marketing specialists acting for all members. Multiport – The most recent marketing developments 16. On a side note: Mr. Wannell is not exclusively working for the Mediterranean participants. He also renders his services to Formag/GTI Group (our Multiport member in several countries) and to Italy-based Medov Group, specifically in the cruise field, which is a prior approved arrangement by Cosulich, Italy. The future role of Mr. Wannell is, however, to be one without any perceived conflict of interest. 17. It is fully understandable that the progress of Multiport’s marketing is an evolutionary process within the network, but to ensure further progress for all Members, the next steps need to be taken. Multiport – Brainstorm meeting On 30 August 2007, after having exchanged several emails a brainstorm meeting on the subject of Multiport’s Global Marketing in the future, took place in London. Present at this meeting were: • Mr. James Wannell, • Mr. Cemil Gandur • Mr. Peter Titchener • Mr. Albert Hoek The next slides illustrate the summary notes, which were reported to the Multiport Board members accordingly. Multiport – Brainstorming meeting – Summary. 18. The Mediterranean Marketing Initiative has currently 20 participants ( 16 from the Region – 4 non-region). The current fee per participant amounts to GBP 4080,- per year for the year 2007. 19. The fee for secured business: 25% of agency fees to be paid to the Mediterranean Marketing Initiative as income. Thus far no actual payments for secured business have been received, nor have any invoices been issued. Multiport – Brainstorming meeting – Summary. 20. Reality in practice: the 25% fee for shared business intelligence and information, leading to actual business is a “grey area”. It is rather complicated to determine which element of the information has actually lead to securing business. There have been emotional discussions about who actually provided the information that lead to the actual business. Nevertheless, the Mediterranean Marketing participants have all gained benefits from these marketing activities. 21. The necessity to proceed to the Global Marketing of Multiport – all under one umbrella – was fully agreed by the attendants at this brainstorming meeting. Multiport – Brainstorming meeting – Summary. 22. The Mediterranean Marketing Initiative is an experience and by no means intended to become a network within a network. 23. The Mediterranean Marketing Initiative learned: • Business Intelligence and Information Exchange works out rather well. • The 25% of fees for secured business: impossible to fully control, large grey area who really secured the business and whether the 25% or other percentages can in reality be applied. • Direct nominations with the 25% system are working well, similar to Multiport’s current rules. Multiport – Brainstorming meeting – Summary. 24. Involvement of the participants in the Mediterranean Marketing Initiative: • Approx. 35% of the participants take a pro-active role; • Approx. 50% of the participants are reactive on input; • Approx. 15% of the participants are passive. In addition to the shared activities, there have been some specific one-on-one communications between a participating member and James Wannell. This information was only shared with the other Mediterranean participants with the permission of the of the member initiating such one-on-one communication. Multiport – Brainstorming meeting – Summary. 25. The Mediterranean Marketing Initiative: direct or indirect information exchange has lead to new business for some of the participants. Furthermore, there has been increased and improved communication on potential business contacts. 26. Conclusion: The Mediterranean Marketing Initiative is 22 months active in the business environment and experience shows that it is working out satisfactory beyond expectations with reasonable costs for the current participants. Multiport – Brainstorming meeting – Summary. 26 – Conclusion (continued): The Initiative will most likely continue unless Multiport takes it under its umbrella. It is recognized that the Initiative is no network within a network. The Mediterranean Marketing Initiative is a test, a first experience of putting the many discussions and ideas into practice. Moving forward is not only a necessity for the Mediterranean participants, but for all members of Multiport with the common goal of exchanging more information, more globally, leading towards more and new business for all Multiport members. Multiport : Global Marketing Plan - Basics 27. The basic parameters of Multiport’s Global Marketing: a) Fee levels for membership to include the marketing fees. b) The Budget 2008 will include the Global Marketing income and expenses as projected Multiport Financial components. c) A forward premium call system is to be implemented: Year 2007/2008 : fees are paid for year 2008 & 2009 Year 2009 : fees are paid for year 2010 Year 2010 : fees are paid for year 2011. Multiport : Global Marketing Plan - Basics 27. The basic parameters of Multiport’s Global Marketing: d) A Code of Ethics and honour is to be incorporated in relation to reports on secured business with related revenues. This may be a rather complicated item, although the Marketers must provide written input to the member through either e-mails or the Bulletin Board, which will then become the site of record to use. The Bulletin Board will be the communication platform for Multiport’s Global Marketing activities and will be incorporated in the Multiport website, in the “membership only” privileged area. Multiport : Global Marketing Plan - Basics 27. The basic parameters of Multiport’s Global Marketing: e) Secured business on the basis of shared and / or exchanged business intelligence via the Marketers: 5% to be paid to Multiport. f) Tender bids, successfully secured via the Marketers: 10% of the agency fees to Multiport. g) Direct nominations via the Marketers: 25% of the agency fee to Multiport. Multiport : Global Marketing Plan - Basics 27. The basic parameters of Multiport’s Global Marketing: h) Marketers : operating at Multiport’s expense and exclusively for Multiport and the members, subject to reasonable exceptions with prior Board approval if so applicable. i) Conflict of interest clause will be thoroughly defined in the Multiport – Marketer agreements. j) In case of consultants used under the Global Marketing activities: fixed fees will be paid for a clearly defined period. k) Marketers can be stationed in a member’s office at the expense of Multiport. Multiport : Global Marketing Plan - Basics 27. The basic parameters of Multiport’s Global Marketing: l) Geographic locations identified for Marketers: • Europe / Mediterranean area, recognizing the niche markets of Scandinavia & the Baltic area and Africa. • Asia incl. North, South-East, Indian Sub-Continent, Middle East and Australia/New Zealand – use specialists for specific targets. • Americas (North-Central-South America & Caribbean) Multiport : Global Marketing Plan - Basics 27. The basic parameters of Multiport’s Global Marketing: m) Products / Commodities (in random order): 1. Liquid Bulk 5. Cement a) Gas 6. Ores b) Crude 7. Fertilizer c) Refined 8. Forest Products d) Chemicals 9. Reefer 2. Grain 10. Cruise 3. Coal 11. Liner 4. Oil & Gas Projects 12. Heavy Lift Multiport : Global Marketing Plan - Basics 27. The basic parameters of Multiport’s Global Marketing: m) Products / Commodities (in random order): 13. Military 14. Ferry 15. RoRo 16. Survey, Cable & Scientific 17. Shipping Pools 18. ….. 19. ….. Multiport : Global Marketing Plan - Basics 27. The basic parameters of Multiport’s Global Marketing: n) Develop the Multiport Bulletin Board System via the Multiport website at the GSL office. o) Desired membership approval of preferably two-thirds of the membership. A must, in order to start the Global Marketing project of Multiport. Multiport : Current Financial Status – summary. 28. In 2007: 101 members covering 112 countries with a total of 208 fees. The base fee amounts currently GBP 2000 per fee. Current fee income of Multiport amounts in year 2007 GBP 416.000.- excluding approx. GBP 28.000 of other income Multiport’s running annual expenses amount in the range of GBP 440.000 – 450.000. Multiport : Current Financial Status – summary. 29. Multiport’s expenses have been reviewed, minimized continuously during the past years. There is basically no meat left on the bone. Since 1992 there has been no increase in fees. Moreover, in 1996, the membership approved a 9,5% reduction in fees. At that time, it seemed to be a correct decision, but in hindsight the fee levels should have been kept at these levels and the funds should have been used to develop overall Member benefits in Marketing, Technology, Image / PR and so on. But, looking back is easy. Multiport : Current Financial Status – summary. 29. Meanwhile, the reality is that Multiport has run a breakeven financial operation during the years 2005, 2006 and 2007. Another reality is that the potential of adding more new members is rather limited. With a few exceptions Multiport covers the world and, although the GSL and the Board work hard to cover the last open areas, the potential additional revenues of new members are limited in the long run, and reaching their maximum. Multiport : Current Financial Status – summary. 29. The Mediterranean Marketing Initiative has an annual 2007 cost of GBP 4080 per participant. This is, as one member stated: more or less equal to one advertisement in a respected newspaper with an international coverage. Multiport : Questions & Answers 30. In reporting the process to the Multiport Board, a large number of questions were raised. In the following slides, these Q & As are reported as follows: Q1 : How will the expenditure on the Marketing project be allocated? A1 : From one side on basis of specific member’s requests and whenever possible combining certain regions and on the other side on basis of f.i. tenders or specified targets as identified by the Marketers, the GSL or through the members. Multiport : Questions & Answers Q2: On basis of 3 marketers – what would be their annual take? A2: The idea is to have James Wannell exclusively for Multiport and also one marketer in the Americas and one in Asia. The idea is to have the America and Asia marketer, initially working on a consultancy (part time) basis, and hired for a defined target account. Here the members can provide their wish-list (short-list)to the GSL/Board and the specialist will be hired on a flat fee basis for a clearly defined period of time. Multiport : Questions & Answers Q3: What is the status of the Marketers viz Multiport (severance, insurance etc)? A3: The basic is that Multiport hires the Marketers against a lump sum amount per period or project fee and Multiport is not responsible for insurance, severance, social or pension expenses. Q4: Would there be a contract with each one or is this going to be dealt with by a company or association representing the three marketers? A4: As it looks now it will be individual agreements with each of the marketers. Multiport : Questions & Answers Q5: If their work requires travelling, who will pay for the expenses? A5: Travel expenses are, depending from where to where needs to be travelled, basically for account of Multiport, and GSL/Board will approve prior to actual travel. Q6: What travel is being considered? A6: For example America – if the marketer is based in New York, one can think of a business trip to Houston, visiting a number of pre-selected accounts. Multiport : Questions & Answers Q7: What is the role of Mr. James Wannell in this matter? Is he going to be one of the marketers? A7: Yes, as it looks now, James will be the European based marketer. Q8: Is he going to be organizing the marketers team? A8: There will be certain coordination. The way I see it is that f.i. 2 Board members, GSL and James coordinate certain items of the Marketing. Multiport : Questions & Answers Q8: Is there a consulting company that is likely to be entrusted with the job or at least with finding / selecting the marketers candidates? A8: Next to James, we have contacts with two potentials for Asia who expressed a part time interest and there are ideas for the Americas marketer. Q9: Locations of the marketers ? In members’ offices –who pays? A9: Different locations in the world. In case in members’ offices, costs for account of Multiport. Multiport : Questions & Answers Q10. Are marketer location costs and travel costs included in the projected expenses in the budget? A10: Yes, not yet specified in full details, but indeed to be absorbed from the overall projected expenses. Q11: The Mediterranean Marketing – can actual business secured be defined? A11: Med. Members will participate in the various regional meetings and report their experiences of the Med. Marketing Initiative, but actual business has been concluded. Multiport : Questions & Answers Q11: Can members make specific requests? A11: Yes, via the GSL. Q12: What if the Members do not approve the plan? A12: Than the Mediterranean Initiative is likely to continue, thus leading to a network within a network. And, Multiport needs to propose a moderate increase of the base membership fee to avoid running into a deficit in 2008. Multiport : Questions & Answers Obviously, there are many more questions one can think of, but the basic purpose of this presentation is to report the Board’s findings on the experience of the Marketing Initiative of the Mediterranean Region, followed by a concrete proposal to start the Global Marketing activities of Multiport for all members. There are a number of elements that will be addressed along the line when implementing the marketing plan. It is partly a learning process, but also very much common sense and ensuring a thorough fair use of the available resources. Multiport :Proposal Global Marketing 31. The proposal to the Membership to kick off with Multiport’s Global Marketing activities, is as follows: a) Multiport continues with Mr. James Wannell as the marketer based in Europe; b) Multiport continues to discuss the part time involvement of the pre-identified persons in the other continents. c) Multiport works out the implementation of the Bulletin Board via the website membership section. Multiport :Proposal Global Marketing The proposal to the Membership to kick of with Multiport’s Global Marketing activities: d) Multiport’s base membership fee is adjusted from GBP 2000 per fee to GBP 3250 per fee, effective 1st January 2008. e) For marketing purposes only, GBP 1000 per fee is exclusively allocated towards Marketing activities. f) Multiport establishes a Marketing Committee with two Board members, Peter Titchener and James Wannell. Multiport : Global Marketing The chicken – egg question? Who was there first? No investments – no (new or additional) business New business – requires investments ! Multiport : Global Marketing What if the membership decides to reject the proposal of the global marketing initiative of Multiport? a) Mediterranean Initiative will continue and most likely with more and more members willing to participate, but one man (James Wannell) cannot serve the whole membership without compromising his effectiveness, and thus this is not a viable alternative. b) A proposal is made to adjust the current fee level of GBP 2000 per fee to GBP 2250 per fee, effective 1st January 2008. Multiport : Global Marketing What if the membership decides to reject the proposal of the global marketing initiative of Multiport? c) And, the reality is that Multiport will go downhill in the years to come, which will confirm that we are a Club of Friends, meeting twice a year to catch up ! Multiport : Global Marketing This Multiport Global Marketing report is on the agenda of your mixed regional meetings during this General Meeting and we trust the discussions will be fruitful.
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