Document Qgk9qVXE7d3oGGK2Nrxj3KKZR

1972 PYDRAUL MARKETING PLAN Product Summary Our leadership and estimated 45% market share in the synthetic fire resistant hydraulic fluid market are "on the line" in 1972. We are reformulating the entire Pydraul line or, more accurately, we are starting from scratch with an entirely new product line based on our new NC phosphate ester. We must maintain our present Pydraul customers with the new formulations against competitors who have been marketing their phosphate esters for many years. Positive factors in the fight to maintain our business include: (1) a general recognition of Monsanto's excellent technology and service as well as an aggressive field sales organization and , (2) a more heat stable product and one which is easier to reclaim than competitive products. Negative factors include: (1) customers' recognition that our product is virtually unproven and (2) a willingness on the part of competitors to cut prices in order to gain a foothold at our major accounts Market Situation The total synthetic fire resistant hydraulic fluid market in the U. S. is estimated at 30 M pounds/year ($9. 5M/year) with volume increasing at 3-5% per year. Pricing is trending downward due to increased usage of oiir lower cost blend fluids (containing oil) and increasing competition among major suppliers. The trend toward lower prices will continue in 1972 and may accelerate due to Monsanto being forced out of fluids containing chlorinated components. We are now forced to sell 100% phosphate ester fluids-in direct competition to Houghton and Stauffer with only marginal performance advantages to offer over these suppliers . An additional factor in the lower price trend is the appearance of competitive low cost blend fluids .in competition to our own, which have been unchallenged since 1965. Companies entering the market with low cost fluids in the past 1 - 2 years include Houghton, Stauffer, D. A. Stuart, Chemtrend, Cities Service and Quaker Chemical. ......... PLAINTIFF'S EXHIBIT 000062 ECU 003143 HL-l WATER PCB-SD0000043682 General Strategy We will maintain our present customers by exploiting to the fullest our recognized technical leadership in the field of synthetic fire resistant fluids and by contract proposals at large accounts tieing in new fluid purchases with disposal of PCB and PCT containing fluids. The technical superiority of Monsanto and its products will be exhibited by product presentations at major accounts, by visits to the fire test and research laboratories by as many customers as possible and by a continual flow of technical information to our customers demonstrating the advantages of our new products. With our straight phosphate ester products, the Pydraul E series, we will meet competitive price situations at major accounts where absolutely necessary to maintain the business. While our Pydraul E series products offer some advantages over competition, we have had no time to demonstrate these advantages in the field, making any price premium difficult to command. With our phosphate ester/ oil blends, the Pydraul C series, we will not meet lower competitive prices of inferior products due to our dominance in this segment of the market, the poor properties and pe.rformance of most .competitive low cost products and a slight decrease in profitability in changing from the present chlorine containing line to the new products. We will concentrate effort on the large accounts where loss of business will hurt us most. One customer, General Motors, constitutes 20% of our business and ten customers represent 50% of the entire Pydraul business. We will exert every possible influence to maintain these customers. Despite strong competition on both Pydraul E series and Pydraul C series fluids, we will raise prices during the fourth quarter. Pydraul C series prices' will be raised at all customers and Pydraul E series prices at those accounts where we have met competitive prices. 1972 Goals 1. Sell all inventory of chlorine containing Pydraul fluids by June 30, 1972. 2. Sell $3. 75 M of Pydraul fluids - 1972 budget is $2. 69 M. 3. Concentrate effort on the following large volume accounts (representing 50% of the total Pydraul business) to convert them to our new phosphate ester products: EQU 003144 HL-2 WATER PCB-SD0000043683 GM - Central Foundry GM - Chevy, Bay City GM - Chevy, Massena GM - Chevy, Grey Iron GM - Buick GM - Pontiac Johnson Motors Armco Steel Republic Steel Inland Steel Alcoa U.S. Steel Keystone Steel Kelsey Hayes Briggs and Stratton Raise prices on Fydraul E series products at General Motors and like accounts where we have met competitive prices and on Fydraul C series products at all customers. Develop a workable and profitable customer reclamation program for the Fydraul products. Implement a comprehensive adve rtising program aimed at reinforcing customers and preselling prospects on Monsanto's leadership in the fire re sistant fluids market. Gain Bureau of Mines approval for Pydraul 312 C allowing us to keep our present coal mine fluid business and offer an approved product to additional mines anticipating conversion to FR fluids. Develop and publish new Fydraul Selectors for the Fydraul E series, the Pydraul C series and Fydraul air compressor fluids. Lend technical and marketing support to Monsanto Europe in an effort to develop and commercialize substitute products (for the present PCB Pydraul products) for German and French mining applications. Call on each of the major OEMs at least twice in 1972 to gain endorsement for the new Fydraul E and Fydraul C series fluids and to induce them to standardize on Viton seals and packings. Steel Market Responsibility When Allis Chalmers Ajax Magnethermic Brown Boveri Concast Loma Indue tothe rm RVW BGM BGM BGM BGM BGM IX 2X 3X 3X 2X 2X EQU 003145 HL-3 WATER PCB-SD0000043684 Steel Market Responsibility E.W. Bliss Powerdraulics (Engr. ) United Engineering Me sta Koppers PDC BGM PDC PDC PDC Blaw Knox Le ctromelt Whiting Corporation Manco Manufacturing GPE PDC PDC RVW RVW RVW Pecor American DeMag Western Gear Corporation Babcock & Wilcox Birdsboro Corporation PDC BGM PDC BGM PDC Gamma Engineering LTD Whitby, Ontario. TWO Surface Combustion Swindell Dressier Continua International Castings, Italy American Ligurian Corporation New York Danieli of Ame rica Dravo Corporation Voest International, N. Y. Treadwell Corporation Olsson. GFF PDC GCA BGM BGM PDC BGM BGM PDC - Taylor Winfield Electric Furnace, Salem, Ohio Hill Acme, Cleveland SPO, Cleveland Selos, Dresher, Penn. ....... . American Bridge Automation Equipment " Salem Brosius PDC PDC PDC PDC pdc " PDC RVW/PDC - PDC' When 3X 2X 3X 3X 3X 3X 2X 2X 2X 2X 2X 2X IX IX IX IX 2X IX IX IX IX IX 2X 2X IX 2X 2X IX " ' "' IX IX IX . 2X 2X 4 EQU 003146 HL-4 WATER PCB-SD0000043685 Steel Market Be sponsibility Sunbeam Dominion Engineering Works Montreal Quebec Schloemann Ag Dusseldorf, Germany Concast, AG, Zurich DeMag Stranggiess - Technik GmbH-Duisburg, Germany PDC TWO KHG GM KHG Continua International Castings, Italy Danieli Spa, Italy Vereinigte Osterreichische Eisen h Stahlwerke, AG, Ge rmany Distington Engineering Co. , Ltd. MHI, Japan . GCA/GVA GCA/GVA KHG/KMS JMMT TI Die casting Market Bugler, Zurich; - .... . YWF, Germany Toshiba Machinery, Japan GM KHG/KMS TI Castmaster HPM ...... Kux Lester Engineering BfcT ' Prince Manufacturing . PDC RVW CFS GFF GFF Cleveland Automatic Press Automation H.L. Harvill Unimation, Division of Pullman AJR GFF RSB BGM Aluminum Extrusion Press Baldwin-Lima-Hamilton Farrell MHI BGM PDC TI V, 2X IX IX IX IX 5 2X 3X 2X 3X 2X 2X 3X 2X, 2X 2X 2X IX EGU 003147 HL-5 WATER PCB-SD0000043686 Hydraulic Presses She ridan^-Gray Murdock USI Clearing MHI, Japan Mobile Equipment Allis Chalmers Clark Equipment Hyster J. I. Case Caterpillar Tow Motor Eaton, Yale, Towne Engineering Bechtel Pump Manufacturers Vickers Racine Denison Oilgear De Laval Yuken, J-apan Tokyo Keiki (Vickers) RSB RSB RVW TI RVW GFF RVW RVW RVW RSB RVW CB JHD/GFF JHD/RVW JHD/CFS JHD/RVW JHD/BGM TI TI 2X 2X 3X IX IX IX IX IX IX IX 2X 2X 2X IX IX 3X 2X EQU 003148 HL-6 WATER PCB-SD0000043687 Responsibility JHD/EMF/RS 1972 Pvdraul Action Plan Action Review old Pydraul fluid inventories with Distribution on a weekly basis until all chlorine fluid inventories are sold out. Insure adequate stocks of all new Pydraul formulations are maintained at JFQ and warehouses Timing Continuing until 5/31 JHD/CLB/NTJ Following approval by management of the existing reclamation plan, implement the plan by forwarding the complete strategy and workings of the reclamation business to all field sales personnel As soon as plan is approved JHD/CLB Assist field sales in gaining immediate reclamation business at Central Foundry, Johnson Motors, Chevy-Massena and Carter Carburetor. As soon as plan is approved JHD/CLB /PGZ JHD/PGZ JHD Do all development work on our advertising program and run first ads in Iron and Steel Engineer and Precision Metal by 6/1 6/1 Publish new Selectors for Pydraul E, C and air compressor _fluids by 5/15 ' 5/15 Gain U.S. Bureau of Mines Approval for Pydraul 312 C by 5/1 5/1 EQU 003149 HL-7 WATER PCB-SD0000043688