Service - High Flya$

PROCONSULTING+

HIGH FLYA$

SHANNON AHEARNFINANCE

TYLER KLIMEKTACTICAL

TREVOR HALLRESEARCH

RYAN GANTZERCOMMUNICATION

MAGGIE ELLISRESEARCH

ALEC REMALYSTRATEGIC

THE PRIVATE AVIATION INDUSTRY

“Over the past decade, there has been a radical change in how

business aviation is perceived: it is no longer seen as just a luxury but as

a business tool in emerging markets.”

Alexa Dalby

SMALL FLIGHT DEPARTMENTS

PROCONSULTING+CHARGE

DEVELOP A STRATEGY TO RETAIN CURRENT

AFTERMARKET CUSTOMERS (BEECHCRAFT, CESSNA, AND HAWKER TURBOPROPS AND JETS) AND WIN CUSTOMERS WHO ARE NOT CURRENTLY

USING OUR SERVICE CENTERS.

CUSTOMER ANALYSIS

Individual Owners

Non-ownersCorporate Non-owners

Individual Non-owners

Corporate OwnersFlight Departments

BOTTOM LINE

283 New Clients

IF YOU SPEND…

$750,000

$849,000 in fees per year

($250 monthly fee)

1,910 more service events

BOTTOM LINE

ADDITIONAL ADVANTAGES FOR TEXTRON

Bring in new clients no one is reaching

4-6 maintenance events per year for every plane

More open communication to small flight departments

More intel leading to innovative products and services

OVERVIEW 1. Research and Analysis

2. Customer Profile

3. Go-to-Market Strategy

4. ProConsulting+

5. Marketing Communications

6. Impact to Textron

MARKET TRENDS: SMALL VS. LARGE FLIGHT DEPARTMENTS

1,920 Flight Departments in the US

59%

41%

Small Flight DepartmentsLarge Flight Departments

…But continuously growing!

COMPETITIVE FORCES

IN-HOUSE

OUTSOURCED

COMPETITIVE FORCES

IN-HOUSEPerforms smaller inspections and maintenance events

Readily available

Expert on specific planes

OUTSOURCEDPerforms all maintenance events: large and small

Parts are readily available

Outsource options: Corporate Service Centers, MROs, FBOs,

COMPETITIVE FORCES

IN-HOUSE

OUTSOURCED

SWOT ANALYSIS

S W

O T

- TRU Simulation Program for Mechanics (2016)

- Easy access to parts and part distribution

- 21 service facilities and 60 mobile service units

- 80% of small flight departments use Textron aircrafts

- FAA requires an annual training program for mechanics

- Flight departments contract bigger maintenance events (major repairs and overhauls)

- 11% growth in private aviation

- Inconsistency with mechanic-owner relationship

- Expensive services

- Unclear communication in regards to service facility capabilities

- Strong relationships between flight department and in-house mechanics

- Small flight departments are price sensitive

- Competitors have effective communication over services they perform

Small Flight Departments1-2 Planes in the Department

Little financial resources

Pilots carry most of the responsibilities

Minimal in-house technical support

Outsource major maintenance events

WHY DO SMALL FLIGHT DEPARTMENTS NEED OUR SERVICES?

Reduced Downtim

e

Small Flight Departmen

ts

Access to

Experts

Decrease Risk

Increase Efficienc

y

SMALL FLIGHT DEPARTMENT PROFILE

EXAMPLE: FLIGHT CORP.

PROACTIVE SUPPORT. PERSONAL SOLUTIONS.

Planes2 Aircraft with one being

a Citation

“With limitations to our resources, our flight

department struggles to find the adequate

help we need”

Flight Corp. Director of Maintenance

PROCONSULTING+PROACTIVE SUPPORT. PERSONAL SOLUTIONS.

PROCONSULTING+

ProAdvantage+ Service Facilities and Mobile Service

Units

TRU Simulation

ProConsultants

WHAT DOES FLIGHT CORP. GET FOR $250/MONTH?

ProAdvantage Program

Discounted price

Charge by flight hour

Establish a cap on maximum flight hours

Service Facilities

and Mobile Service Units

Discounted price

Must bring overhaul events to the Textron facilities

TRU Simulation Discounted Price for Technician training

RESPONSIBILITIES OF THE CONSULTANTS

Available 24/7

Face to face interactions by traveling to flight departments

Diagnose problems and provide efficient solutions

Assist with small technical questions

Provides easy access to parts, service facilities, and technician training

DISTRIBUTION OF PROCONSULTING+

HOW DOES FLIGHT CORP. SIGN UP?

After signing up…Given an account

on the Textron website

Face to Face with the

Consultant

Online Application

Over the Phone with the

Consultant

Mail-In Application


MODIFICATIONS TO THE TEXTRON WEBSITE

Flight Department Portal

Provides all contact information of consultant

Schedule and track maintenance events and billing

Link to E-Commerce website to purchase parts

Educational tutorial videos

OTHER ADDITIONS TO THE WEBSITE

Flight Department Portal

ProConsulting+

Overview of ProConsulting (services and price)

Contact information

Application

Consumer Reviews

Tabs under PC+

MARKET COMMUNICATION

TRADE SHOWS


TRADE SHOWS - NBAA 2015

30%

OtherAttorney, Finance, and BankingSales and MarketingFlight DepartmentExecutive Management


TRADE SHOWS - NBAA 2015

Influence on company purchasing decisions:- 50% evaluate and recommend products/services purchased

- 37% have final say on products/services purchased

- 20% specify supplier

26,000 ATTENDEES

TRADE SHOWS

CONTACT PROSPECTIVE CLIENTS

SET UP MEETINGS AT THE TRADE SHOW TO PRESENT

PROCONSULTING +SEND OUT DIRECT MAIL

Pre-Show Tactics

NETWORK AND CONVERSE WITH

PROSPECTIVE CLIENTS HIRE PROFESSIONAL

ATTENDEE QUALIFIERS

During the Show

NBAA - PROFESSIONAL ATTENDEE QUALIFIERS

$35,000In revenue for a new

client

100Leads for each for each Professional Attendee

Qualifier

30% $10,500Profit Margin In Profit for one new

client

If we bring 5 Professional Attendee Qualifiers to trade shows we already plan on attending…

If 10% of all the leads lead to new clients….

$500,000In total profits from the NBAA Trade Show

SEMINARS

HOST SEMINARS AT TEXTRON FACILITIES2 day seminars

Available for technicians and Chief Pilot

All food and hotels paid forPromotional giveaways

available

DAZZLE THE FLIGHT

DEPARTMENTS

TEXTRON SEMINARS

ITINERARY FOR SEMINARS

12-12:30pm Check-in at Textron

12:30-1:30pm Introductions and Lunch

2-4pm Maintenance Workshops

4:30-5pm Break (Snacks provided)

5-6:30pm TRU Simulation Overview (Information Session and Tour)

7=9pm Dinner hosted by Textron

9:30pm Check-In at Hotel and End Day 1

9-10am Breakfast

10:30-12:30pm

Flight Department Operations Workshop

1-2:30pm Lunch

3-4:30pm Tour of Service Facilities and Mobile Service Unites

5pm Wrap Up and End Seminar

Day 1 Day 2


MARKET COMMUNICATION: PERSONAL SELLING

COMPREHENSIVE FLIGHT DEPARTMENT ASSESSMENT

Consultant Visits the Flight Departments (Free of Charge)

Interview Employee

s

Evaluate Safety and Technician Capabilities

Review Relevant

Documents

Analyze Operational Processes

AFTER THE ANALYSIS…

Meet with the Flight Department to Discuss findings

Offer help through our ProConsulting+

Program


MARKET COMMUNICATION: PERSONAL SELLING

DIRECT MAIL

POSTCARDS Key Features of the Program

SQR Code Linked to the website

Contact Information

ON THE BACK


ON THE FRONT

NATIVE ADVERTISING

FEATURED ARTICLE

“It has been found that the less an advertisement looks like an advertisement, and

the more it looks like an editorial, the more readers stop, look and read.”

David Ogilvy

Introducing the new product

Testimonials from satisfied clients

Problems in the Flight Department Prior to ProConsulting+

Quarter 2 and 3Continue to promote

ProConsulting+

Perform comprehensive analysis

Host seminars

IMPLEMENTATION INTO THE MARKET

PHASE 1: THE SOUTHEAST AND TEXAS

Texas, Florida, Georgia, South Carolina, North Carolina,

Virginia, and West VirginiaPhase 1 Test MarketOther States

Quarter 4 and 1Promoting ProConsulting+

Setting up websites and accounts

Training consultants

Creating tutorial videos

IMPLEMENTATION INTO THE MARKET - YEAR 1

PHASE 1A

Tactic Total3 Native Advertisement Ads $90,000

Website Redesign $40,000

Direct Mail - 200 Postcards $100

Create 5 Tutorial Videos $20,000

Train Consultants in Southeast $100,000

Total $250,100

Quarter 4 and Quarter 1


PHASE 1B

Tactic Total2 Native Advertisements $60,000

Perform Comprehensive Flight Department Analysis

(includes cost of travel for consultants)$100,000

Host 2 Seminars $30,000

Resend 200 Postcards $100

Total $190,100


CONTROL MONITORING

KEY PERFORMANCE INDICATORS

Conversion RateCost per Acquisition

Revenue per Acquisition

(including all services used)

Percentage of Customer

Issues Solved in First Form of

Contact

Deviation of Planned Budget

Recorded Downtime for Maintenance

Events

Customer Satisfaction

Return on Investment



PHASE 2: NATIONAL EXPANSION

Year 2

Run extensive analysis on program

Train more current employees

Continue promoting via direct mail and advertisements

Enhance website with new videos

Host more seminars

Invest more in successful market communications


PHASE 2Year 2 (Tentative)

Tactic TotalExtensive Analysis of Program $10,000

Training Consultants Across US $100,000

Create 5 more Tutorial Videos $20,000

Postcards $500

4 Seminars (1 per region) $60,000

More Comprehensive Analysis $100,000

Additional Money Spent on Strong Market Communication $19,300

Total $309,800

Comprehensive Analysis of

Phase 1

IMPLEMENTATION INTO THE THE MARKET

TOTAL COST

Phase 1A = $250,100Phase 1B = $190,100Phase 2 = $309,800

$750,000

With $750,000 and Our Help Through….

PROCONSULTING+

$849,000 in fees per year

More Maintenance Events and

Clients

Establish Strong Brand for Service

More Intel for Innovative

Products/Services

Open Communication to Customer

Base

In 2 years,

will have…

QUESTIONS?


APPENDIX

▸ Research: 25 In-depth Interview and 60 hours of secondary research per person

▸ Seminar Schedule

12-12:30pm Check-in at Textron

12:30-1:30pm Introductions and Lunch

2-4pm Maintenance Workshops

4:30-5pm Break (Snacks provided)

5-6:30pmTRU Simulation Overview (Information Session and

Tour)

7=9pm Dinner hosted by Textron

9:30pm Check-In at Hotel and End Day 1

9-10am Breakfast

10:30-12:30pm

Flight Department Operations Workshop

1-2:30pm Lunch

3-4:30pm Tour of Service Facilities and Mobile Service Unites

5pm Wrap Up and End Seminar

APPENDIX

PHASE 1B

Tactic Unit Cost Total2 Native Advertisements $30,000 $60,000

Perform Comprehensive Flight Department Analysis (includes cost of travel for consultants)

$3,000 $100,000

Host 2 Seminars $15,000 $30,000

Resend 200 Postcards - $100

Total $190,100


APPENDIX

PHASE 1A

Tactic Unit Cost Total3 Native Advertisement Ads $30,000 $90,000

Website Redesign - $40,000

Direct Mail - 200 Postcards - $100

Create 5 Tutorial Videos $4,000 $20,000

Train Consultants in Southeast - $100,000

Total $250,100


APPENDIX

PHASE 2

Year 2 (Tentative)

Tactic Unit Cost TotalExtensive Analysis of Program - $10,000

Training Consultants Across US - $100,000

Create 5 more Tutorial Videos $4,000 $20,000

Postcards - $500

4 Seminars (1 per region) $15,000 $60,000

More Comprehensive Analysis - $100,000

Additional Money Spent on Strong Market Communication - $19,300

Total $309,800

Comprehensive Analysis of

Phase 1