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									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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