Feasibility Analysis - Impact Study (Corporate Brand Reallocatio

8/13/2019 Feasibility Analysis - Impact Study (Corporate Brand Reallocatio

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CONTENTS

Executive Summary………………………………………………………2

Introduction…………………………………………………………….…3

Findings………………………………………………………………...4-14

Business Rationale……………………………………………………...4

Brand Architecture Options…………………………………………….5

Brand Audit…………………………………………………….............6

Stakeholders……………………………………………………………7

Sanitation……………………………………………………………...10

Competitive Analysis (sanitary compliance)………………………….11

Test Facility……………………………………………………………13

Competition……………………………………………………………13

Conclusion………………………………………………………………..15

Recommendations……………………………………………………….15



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EXECUTIVE SUMMARY

There are a number of good reasons to convert Lowe Industries as a standalone company to a sub

brand ―sanitary‖ product line of Marion Mixers. The timing is good. The changes to our sales

force, our company growth initiative, the growing concern for food safety and sanitary

compliance and a reduction in dual marketing expenses are a few of the reasons.

The impact of a brand migration would not have a major affect on the company. Sales in general

would most likely benefit because of the additional scope of opportunity to sell the Lowe line.

The biggest impact may be the repercussions of growing the sanitary line. In order to be a

sanitary-compliant manufacturing facility certain processes may have to be changed in order to

meet sanitary regulations.

A renovated test facility would be a good asset. Many competitors with offerings to sanitary

processors have upgraded their facilities. A renovated test facility would most likely increase the

number of in-house tests, provide key marketing promotional content and possibly draw more prospective customers to our plant which is a proven aspect of the sales process.

The unified sales commission of both the Marion and Lowe mixers overall would not have an

adverse affect on the company.

A comprehensive, multi-channel brand awareness advertising campaign would be necessary to

effectively promote this new change. This campaign may cost between $25,000 to $50,000 and

possibly extend from the 4th qtr. of 2009 thru the 2nd qtr. of 2010.

Likewise a comprehensive sales rep training program would need to be designed and

implemented in order to give the reps a thorough knowledge base in sanitary, the Lowe―premium‖ product features and the competitive advantages in the market.

Compared to the Marion line, the Lowe line could be the sanitary line or the premium line,

perhaps as a specialty line like the ―Food Tech‖ line. How we would position it would require

some additional research.



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INTRODUCTION

Any business strategy destined to succeed over time needs to be based on firm assets. The brandis one of the most critical of those assets. The key to a strong brand is the brand vision, whichneeds to both reflect and support the business strategy. However, brands have a tendency to

become product silos over time after an acquisition. Product silos inevitably lead to resourcemisallocation, which means that much of the marketing budget is spent less effectively than itcould be. Also when brands span product silos each silo has control of the brand in its context.This results is a confused brand without direction or soul. The effort is deleterious in the market, but equally damaging internally, because there is no driving force bringing the employees and partners together as teammates. Having autonomous silos go their own way doesn’t work well intoday’s marketplace.

Brand ArchitectureBrand Architecture is the structure of brands within an organizational entity. It is the way inwhich the brands within a company’s portfolio are related to, and differentiated from, one

another. The architecture should define the different leagues of branding within the organization;how the corporate brand and sub-brands relate to and support each other; and how the sub-brandsreflect or reinforce the core purpose of the corporate brand to which they belong.

There are three key levels of branding:

1. Corporate brand & umbrella brand (also known as family brands)2. Endorsed brands, and sub-brands3. Individual product brand

The current brand architecture for HSGBS, Inc. d/b/a Marion Mixers, Inc. consists of (4)separate corporate brands; Marion Mixers, Lowe Industries, Monroe Industries and IndustrialPulley Puller. Marion Mixers and Lowe Industries have similar products while Monroe

Industries and industrial Pulley Puller have unrelated products.The purpose of this impact study is to determine the consequences of implementing a brandmigration of the Lowe corporate brand, divesting it as a corporate brand and making it either:

A separate product line under the Marion corporate brand or a possible

Endorsed brand (acting as a sub brand) under the Marion corporate brand.

In addition, this impact study will focus on the sanitary features of the Lowe line to determine ifa new brand identity in reorganized brand architecture will potentially increase sales and profitsin mixer sales for Marion Mixers. It will also examine the dynamics this change may have on theCompany Owners & Employees, Customers, Prospective Customers, Sales Reps, Vendors,Company Departments (Accounting, Sales, Marketing; The Market, Advertising, Web site

development), Plant Operations, Testing (Test Center, Sanitary Compliance) and Competition.Some specific questions include:

1. What exactly are the issues that we need to get 'under the skin' of?2. Will customers (current and lost), prospects and suppliers feel that the Lowe brand

migration will add or erode value to the corporate brand (Marion Mixers)?3. What state is the market in, and how will this impact a brand migration?4. Who are the stakeholders and what is their enthusiasm or lack of with a brand migration?5. How will it affect our current marketing strategies? Any market advantages?



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FINDINGS

Business Rationale 1. Under spending on the Lowe brand may have caused sales and profit erosion.2. The Lowe brand can be leveraged to cover more product marketing. The Marion brand

(corporate brand) can be assigned a larger role. The corporate brand represents anorganization with heritage, values, citizenship programs and assets/capabilities; it can provide a point of differentiation. We have attempted to retain the heritage of the Lowecorporate brand alongside the Marion brand but this has not proven successful.

3. Both our brands together as they currently exist are lacking brand differentiation. Thesolution is to create or enhance a branded differentiator-a branded feature, service, program etc. that is meaningful to customers and will differentiate the offering.

4. Customers and sometimes employees cannot figure out which offering meets their needs?Reducing confusion and enhancing product offering clarity should be the goal.

Historical Sales



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Brand Architecture Options:

Corporate Branding is the practice of using a company's name as a product brand name. It is anattempt to leverage corporate brand equity to create product brand recognition. It is a type offamily branding or umbrella brand. Corporate branding can result in significant economies of

scope since one advertising campaign can be used for several products. It also facilitates new product acceptance because potential buyers are already familiar with the name. However, thisstrategy may hinder the creation of distinct brand images or identities for different products: anoverarching corporate brand reduces the ability to position a brand with an individual identity,and may conceal different products' unique characteristics. Examples include Heinz Cream ofTomato Soup, or Virgin Trains.

It has been argued that successful corporate branding often stems from a strong coherence between what the company’s top management seek to accomplish (their strategic vision), what

the company’s employees know and believe (lodged in its organizational culture), and how itsexternal stakeholders perceived the company (their image of it).

By using corporate branding with a successfully marketed product, a company can familiarize

consumers with its products and may create brand loyalty. If the public likes one product fromthis company, then they may seek out the brand name when buying other products. Corporate branding is usually only successful if the company is well known and sells reputable productswith a positive image. One of the disadvantages of corporate branding is that the company can become identified with only one type of product.

To customers, corporate branding represents a level of quality that they have come to expectfrom the company. They will expect every product with the same brand name to have the samelevel of quality that they are familiar with. The company can increase sales by comparing one oftheir more popular products with a similar product by another company, showing sales figures to back up their promise. The value of the brand is determined by the profits the products have

made. If profits are high, then the manufacturer is able to charge more for their product.There are a few extensions to corporate branding. One brand name may be used for a number of products in family branding, or all the products may be given different brand names in a practicecalled individual branding. Co-branding is when two or more manufactures combine to sell their products. When a company sells the right to use their brand name to another company for use inanother location or for non-competitive purposes, this is called brand licensing.

Endorsed Brands include a parent brand and sub-brands - which may be a corporate brand, anumbrella brand, or a family brand - as an endorsement to a sub-brand or an individual product brand. The endorsement should add credibility to the endorsed sub-brand in the eyes ofcustomers and partners. Examples include, Nestle Kit Kat, Cadbury Dairy Milk, SonyPlayStation or Polo by Ralph Lauren.

Umbrella Branding is an overarching brand used across multiple related products. Umbrella branding is also known as family branding. Family branding is a marketing strategy that involvesselling several related products under one brand name. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity. Thereare often economies of scope associated with umbrella branding since multiple products can beefficiently promoted with a single advertisement or campaign. Umbrella branding may imposeon the brand owner a greater burden to maintain consistent quality. If the quality of one product



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in the brand family is compromised, it could impact on the reputation of all the others. For thisreason umbrella branding is generally limited to product lines that consist of products of similarquality.

Individual Brands: Individual branding is also called individual product branding or multibranding. The marketing

strategy involves giving each product in a portfolio its own unique brand name. This contrastswith family branding, corporate branding, and umbrella branding in which the products in a product line are given a single overarching brand name. The advantage of individual branding isthat each product has an image and identity that is unique. This facilitates the positioning of each product, by allowing a firm to position its brands differently. Examples of individual product branding include Procter & Gamble, which markets multiple brands such as Pampers, andUnilever, which markets individual brands such as Dove.

Brand AuditA brand audit would provide an opportunity to evaluate the strength of our brand, to underscorethe value of our brand with customers, and to reposition the brand, if a brand migration is tooccur. What’s more, it helps recommit to the vision and goals of the business. Finally, it ensures

accurate application of our brand across the organization. An evaluation is made from bothinternal and external perspectives, identifying the gaps between what we want our brand torepresent and how our customers perceive our brand in the marketplace.

Internal Brand Audit evaluates existing marketing strategies, materials, media andcommunications. We engage with key management to obtain internal perceptions of your brand and how the company competes in the market. We interview employees acrossmultiple levels of your organization to assess differences in internal brand perceptions.And, we review your most current existing customer and market research, includingcustomer satisfaction surveys.

External Brand Audits are based on the outcome of the internal brand audit. A follow-up assessment of external audiences and their brand perceptions is usually conducted. Itmay include any number of external studies: existing customer brand perception, i.e on acompetitive set, and prospective customer attitudes and perceptions. Informationgathering is performed through surveys via online, print or by phone.

The cost for a brand audit can vary widely depending on the scope of an audit and the size of thecompany. A brand audit can cost as little as $1000 and as much as $20,000.

Questions answered during a Brand Audit:

1. What is our current positioning?2. What do we WANT your brand to mean?3. How well is our brand being communicated today?4. How do our people support our brand?5. What is our perceived niche in the marketplace?6. Who is our competition? How do they brand themselves?7. How do our customers ―see‖ us? How do they see our competitors?



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Stakeholders

Following is a list of internal and external stakeholders that may be affected by the Lowe brandmigration and certain issues they may have:

Company Owners Customers

Prospective Customers

Vendors

Company Departmentso Accountingo Saleso Marketing

The Market Advertising Web site development

o Plant Operations Testing

o Test Center Test Center Sanitary Compliance

Competition

Company OwnersLowe will continue to be a standalone business unit of parent company; HSGBS, Inc. Nothingwould change the legal business status if Lowe were to be rolled up as a product line of MarionMixers. There are no apparent cultural or heritage issues affecting the Lowe brand migration.

Customers

Lowe customers represent only 3.25% of total customers. This small percentage would not beaffected negatively by having Lowe as a product line of Marion Mixers.

Prospective Customers

Based on a marketing study conducted in 2004 by consultant Jeff Exe, the Marion Mixer lineenjoys fairly high name recognition within the mixer industry, and the Lowe line has among thelowest levels of recognition. The validity of this test is questionable since it was not a scientifictest.



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Regarding customer perception about adding value with the brand migration; Any value addedthat is expected to be gained from rebranding will need to be driven properly so customers cansee this, because generally rebranding is primarily a signal to prospective customes thatsomething has changed or improved in service. Some questions to consider:

1. Assuming we have a "media event" to launch the Lowe migration we need to:a. Effectively communicate this to the market? b. Effectively reposition and reinforce the Lowe line so it does not become

marginalized?2. Should Marion Mixers brand Lowe as the ―premier line‖ Some points to consider:

a. What does premier mean in the eyes of the customer/prospect? b. What can they get exclusively that they can't already get from a Marion

custom build that would make it justifiably "premier?‖ c. Since Marion Mixers already custom designs mixer to meet customer

applications, is it a mute point since we can build a "value machine" to a "high-

end" machine based on the customer application requirements?d. Would having a distinct premier line make the sales & marketing process anyeasier?

e. What are some features that could be promoted as ―premier?‖ Some possibilitiesmay include:

Clean in Place (CIP)

Electroplating finish

Explosion proof motors

Variable speed gear drives

Vendors – There are no financial or logistical issues from vendors that would affect this

migration.

Company Departments:

Accounting – There would be little if any impact on accounting.

Sales

1. Sales Opportunity - Previously only one other outside sales rep organization, Mayer &Oswald was given the opportunity to sell the Lowe line in the Chicago market. Openingthe Lowe line up to other rep organizations, perhaps selectively at first and then with

blanket coverage eventually will provide additional sales. Over the past 5 years MarionMixers has sold 286 Marion Mixer mixers compared to 19 Lowe mixers for a 6.64% tototal sales for Lowe. With a growing outside sales force in new territories, the potentialfor increased Lowe line mixer sales is very good, especially in the sanitary mixerindustrial segments where Lowe is able to compete. Rep Organizations are enthusiasticabout having the opportunity to sell the Lowe line.



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2. Compensation - There is currently a different commission rate in selling a Marionmachine vs. a Lowe machine. What is the impact of having the same sales commissionfor both Marion and Lowe mixer sales? Some points to consider:

a) Motivation - Salespeople need to be trained, supported, and, above all, motivated.

They need sales literature, administrative and marketing support to send out promotional material, and help with presentations. They also need incentives thatwork — the right combination of commissions, prizes, profit sharing etc.

b) Big Ticket Sales Commission - Some small- and mid-sized businesses have beenknown to balk at the size of the commissions that they pay to their top-levelsalespeople. Indeed, businesses that are engaged in industry sectors that areknown for the sale of "big ticket" items, such as major equipment, or large-volume purchases may distribute commissions of several thousand dollars ormore for a single sale. But most business consultants urge employers to rememberthat if they are doling out large commissions, that also means that those same

salespeople are bringing in lots of business for the company. As the editors ofThe Portable MBA in Entrepreneurship indicated, "A good rule to follow is thatwhen you find something that works, stay with it, even if it means paying whatseems to be obscene amounts of cash. The best sales-people should earn topdollar."

c) Turnover - Business researchers believe that companies will have to continuallyadjust their sales commission/incentives packages in the coming years in order toremain competitive, since the overall business environment is changing with suchrapidity. For example, salespeople are now seen as more likely to move not onlyfrom business to business but also from industry to industry. "Salespeople, despitetheir market specialization, have one thing in common: They want to make lots ofmoney, and these high-performing people will seek out companies withcompetitive pay plans — regardless of the industry." Also how many sales peopledo you expect to lose because the compensation plan could change?

d) Sales Specialist Based Commission - In addition, increased emphasis oncustomer satisfaction and increasing market share with current customers is likelyto broaden the responsibilities of salespeople, who will in turn expect to becompensated appropriately. "Technology is propelling companies into a new wayof thinking about business strategy and how success is defined. Salespeople willdo what they're rewarded for doing. That's why compensation plans have to keepup with the changing selling methods. Sales managers must motivate their reps to build real relationships between customers and company, in order to increase theshare of each customer's business.

In 2008 there were 3 Lowe mixers sold none of which had a commission pay out>10%. Below is a chart of sales by brand with commissions greater than 10% forInside sales.

http://www.xactlycorp.com/products/spm.php






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Sales Year 2008

Brand Mixers Sold

Commission

Rates

Greater than

10%

Commissions

>10% to

Total

Marion 60 29 46.03%

Lowe 3 0 0.00%

Total 63

Marketing

1. Advertising - A promotional launch event to communicate the migration would be beneficial. It could be a multi-channel campaign starting in mid-to-late 4th qtr and potentially carry over to 1st qtr. 2010. We could allocate approx. $10K of our remaining2009 advertising budget towards this project and determine what $ allocation for 2010would be necessary.

2. Web Site Development – The Lowe site has been in beta redevelopment for most of thisyear and is approximately 50% complete on being a new web 2.0, SEO driven site.However, it is being redone as a ―stand alone‖ site. To integrate the Lowe site into theMarion site it would be best to redesign the Marion site with a new tab structurefeaturing the various Lowe landing pages. Although there is little to no expense to dothis, it would take some design time and content development time to reengineer the siteto accommodate this. We could also brainstorm some ideas to determine what else wecould add to the Lowe content at this time. The estimated time to make these changes in-house would be approximately 2 months depending on the amount of time that would beable to be dedicated to this project.

Plant Operations - There could be a significant impact on plant operations. If we are to developthe Lowe brand as the ―premium‖ brand focusing on the sanitary industry, certain changes may be necessary to be sanitary compliant in the manufacturing process. For example, separate finishgrinding, sanding, polishing and assembly areas to keep the sanitary manufacturing processsequestered from the non-sanitary manufacturing process in order to comply with stringentdesign standards such as bacteria buildup potential on metal finish surfaces, porous metal, washaccess points, weld seams & crevices, (CIP - clean in place.)

SanitationThe potential for contamination increases with the introduction of peripheral components, such as filtration and temperature and pressuremeasuring instrumentation required to ensure process parameters remainwithin acceptable limits. As a result, these inline devices mustthemselves meet standards set by governing agencies to ensure there areno weak links in the sanitary chain.



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The most common of these standards include:

3A-3A Sanitary Standards, Inc. (3A SSI) is a non-profit association representing equipmentmanufacturers, processors, regulatory sanitarians and other public health professionals. 3ASanitary Standards and 3A Accepted Practices pertain to dairy and food processing equipment,

and focus on sanitary design, materials, and surface finish.

USP Class IV-The United States Pharmacopeia (USP) is an independent, science-based publichealth organization. It sets standards used by more than 130 countries for the quality of pharmaceutical and healthcare products. Their process work pertains to standards for plasticcomponents.

FDA-Approved-The United States Food & Drug Administration (FDA) is a federal agency thatregulates all food processing and drug manufacturing in the U.S. It sets and enforces standardsand government codes. Its process-related approval requirements pertain mainly on the quality ofstainless steels, gasket materials, and filling liquids.

cGMP- current Good Manufacturing Practices (cGMP) are FDA requirements as set out in the 21Code of Federal Regulations, Parts 210 and 211, regarding manufacturing, processing, packing,or holding of drugs and finished pharmaceuticals. Their main focus is on the process andfacilities.

EHEDG- Certified-The European Hygienic Engineering & Design Group (EHEDG) is aconsortium of equipment manufacturers, food industries, research institutes, and public healthauthorities that provides guidance on the hygienic engineering aspects of the manufacturing ofsafe and wholesome food.

Competitive Analysis (sanitary compliance)

Of 35 competitive mixer manufacturers we track for competitive intelligence, 7 companies(20%) promote on their web sites or advertise in trade publications that they are sanitary-compliant meeting the standards of sanitary regulating agencies. Or these companies promotesanitary test facilities likewise complying with sanitary regulations. The chart on the following page lists those companies researched that promote the manufacture of sanitary-compliantmixers.

In the field, based on recent conversations by Greg Stover with rep organizations, we are knownas an industrial manufacturing facility that has been branching out into the sanitary market.The manufacturing process of finish welds, polishing and providing a contaminant-freeenvironment are all dynamic issues in meeting regulatory requirements, especially if a USDAinspector were to do an inspection at our facility.



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Certification

Company 3-A

USP

Class

IV

FDA

Approved cGMP

EHEDG

Certified Notes

Admix Yes

Test facility meets sanitary

requirements.

American Process Systems Yes


requirements.

AIM Blending Technologies Yes

BEPEX

USDA Dairy

Accepted

Manufacture

Charles Ross Yes


requirements.

IMPEC No

USDA/FDA approved ground

and polished surfaces for

sanitary applications

Silverson yes yes yes

Sanitary Compliant (challenges)

1. If we introduce the Lowe line as an exclusive ―sanitary line‖ what physical plantrequirements are necessary to become sanitary compliant (regarding the list above?)

2. What additional costs are necessary?

3. What type of test facility enhancements are necessary to compete with companies like Eirichor Admix?

4. Can we differentiate our sanitary brands from non-sanitary brands and market in thismanner?

5. Will all this make a difference in the mind of the customer/prospect regarding sanitary andthe brand perception?

6. What changes are necessary to meet at least (the newest and toughest hygienic and safetystandards) for 3-A: (USDA - Dairy, USDA - AMS, and AG – Canada)?



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Test Facility

Competitors like American Process Systems, Eirich Machines, Admix and Charles Ross promotetheir test facilities in advertising marketing campaigns. If Marion Mixers were to remodel thecurrent test facility to become comparable to some of our competitors some points to consider

are:

1. Would it attract new business?2. Would a new facility increase our test activity? We have conducted approximately a

dozen in-house tests at our plant in the last 1 ½ years. Trial mixer tests shipped tolocation are substantially more abundant.

3. Would a new test facility add value to sales rep training? If so how? 4. How do you measure ROI on a new test facility? 5. What additional marketing exposure could be gained from promoting a new test facility?

Competition

Many of our competitors custom build mixers according to the application and project. Thereforethey do not promote a particular line or lines for a particular purpose within their company.However, some competitors do feature specific models built for a specific function, industry orapplication. Do our competitors differentiate between standard and premium mixer models and ifso, is it an added value factor with customers? Following are a few examples.

A&J Mixing - featuring the PHLAUER brand, single and double rotor mixers that mix with lowintensity. Similar to a Forberg mixer.

Aaron Process Equipment - Mixers available in a wide range of models:

MCG - Standard height double arm mixer hydraulic tilt for discharge.MBG - Low-end economical unit (less standard features than the standard MCG model.)

WCG - Low-Boy™ - Processing large batches in the most compact equipment available.MXG - Mixer Extruder

MXT - Mixer Extruder with TriMax™ triple output shaft design.

ZBG - Split Level 750 Gallon design.LNG - Lab Batch MixerIMB - T304SS Ribbon NR - Heavy-Duty line of Ribbon Blenders.

Admix – Equipment Brands:

Batch Mixers, Dispersers & Emulsifiers:

DISPERSER: Rotosolver - High Shear Dispersers and Dissolvers; (registered)EMULSIFIER: Rotostat - High Shear Emulsifiers; (registered)SANITARY BATCH MIXER: Rotomixx - Sanitary Stainless Batch Mixers; (registered)



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HIGH TORQUE MIXER: Rotomaxx - High Torque, High Flow Right Angle Mixers(trademark)PROGRAMMABLE LAB MIXERS: BenchMix - Programmable High Shear Lab Mixers(trademark)

INLINE Mixers, Homogenizers & Wet Mills

INLINE HIGH SHEAR MIXER: DynaShear - Sanitary Inline High Shear MixersHIGH INTENSITY WET MILL: Boston Shearpump - High Intensity Wet Milling,Homogenizers (registered)SANITARY STATIC BLENDER: Admixer - Sanitary Static Mixers & Blenders(trademark)

POWDER INDUCTION Dissolve, Disperse & Emulsifier

POWDER FEED & DISPERSION: FastFeed - Powder Induction & Dispersion Skid(trademark)HIGH SPEED BLENDING: Admix LiquiShear - High Speed Blending Systems(trademark)VACUUM LIQUI-PROCESSOR: VacuShear - Sanitary Vacuum Liqui-ProcessorATMOSPHERIC FEED SYSTEMS: Optifeed - Atmospheric Powder Induction (trademark)

Paul Meuller - Affiliated Companies:

Mueller Field Operations, Inc. – A wholly owned subsidiary. Providing in-housemanufacturing of components.

Mueller Equipment and Controls - MEC manufactures power transmission anddistribution panels, custom control panels, process equipment and machine fabrication.

Mueller Transportation, Inc. - Specialty Equipment Hauling – Truck transport andlogistics company.

Mueller Lichtenvoorde B.V. – Manufacturing company of dairy farm equipment productsin Europe.

Littleford Day – Equipment Brands

Day FKM - KM - VT -DVT Ploughshare® Mixers (Batch and Continuous)Day Double Arm/Sigma Blade High Viscosity MixerLM & LR High Intensity Mixers and Horizontal Coolers:EK-AB Series Particleboard Gluing Machines:MGT Vertical Mixer/Granulator:CB High Speed Processor:

Charles Ross & Sons - Manufactures standard and custom design mixers.



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CONCLUSION

Based on historical sales figures, Lowe Industries has not performed as well as Marion Mixers

and other competitors as a standalone company. As a standalone brand it has been difficult to

market. The result has been extra marketing expense with duplicate web design and collateral

material. Feedback from the market indicates there is little brand awareness. However theacquisition of Lowe has brought Marion entry into the sanitary industry along with an existing

customer base.

We could conduct a scientific, more through brand audit than was previously done in 2004 but I

feel this would be a mute point and not reveal much more than what we already know. It might

be more logical to conduct a brand audit in two years to determine what impact a brand

migration may or may not have had.

A brand migration would have little adverse affect on Marion Mixer employees and operations.

Sales in general would benefit because of the additional scope of opportunity to sell the Loweline. There may be some sales compensation issues by changing the commission rate, but overall

this should have a minimal affect on the company because the Lowe sales activity is a small

fraction compared to the Marion sales activity.

Food safety and sanitary processing is a critical factor in food processing and other sanitary

industries. Mixer manufactures with a proven offering will have a competitive advantage.

However, to achieve a satisfactory level of sanitary-compliant manufacturing we would have to

make certain fabricating changes to comply with sanitary regulations. Approximately 20% of our

competitors currently have compliant shops.

As a corporate sub brand or endorsed brand this would not be uncommon to our industry. Many

of our competitors manage their brands in this manner. If promoted well, the message may not be

confusing.

A safe, clean, well lit, sanitary test facility with functional test equipment would be an asset.

Many competitors with offerings to sanitary processors have upgraded their facilities. A

renovated test facility would most likely increase the number of in-house tests, provide key

marketing promotional content and possibly draw more prospective customers to our plant which

is a proven aspect of the sales process

REC OMMENDATIONS

1. Make the decision to integrate the Lowe line as a sub brand of Marion Mixers.2. Conduct a comprehensive multi-channel brand awareness campaign. Cost tbd.3. Renovate our existing test facility.4. Conduct another study to determine the requirements and feasibility of making our plant

sanitary-compliant.

Documents

Feasibility Analysis - Impact Study (Corporate Brand Reallocatio