Document aJbmQwEomvDxQXpxEJjNQ8ROY

$ V/RG 001692 .PLAINTIFFS EXHIBIT IS' & 1970 ZONOLITE MARKETING STATEMENT MONO-KOTE FIREPROOFING THE PRODUCT Zonolite Mono-Kote is a cementitious, mill-mixed fireproofing product that is spray-applied to concrete or steel. POSITION Zonolite is a leader in the fire protection business and has been the most consistent promoter of fire proofing systems. Zonolite first ran fire tests in 1939. MONO-KOTE started in 1961. Present formulation in use since 1963. Zonolite is a leader in the cement itious field. About 1966-67, efforts began paying off on specification selling. i 20172370 rT,,wi i.w ,,i,i mf T' MARKET POTENTIAL The market is currently estimated at $15 million of which Mono-Kote accounts for 202. The market is growing with steel construction activity and could reach $30 million by 1975. Recent estimates Year Sales/Bags Millions Sales/$ Millions 1968 1.25 1969 1970 1975 1.6* 2.0* $3 $4 $15+ Estimated +Possible MOTE: Single large jobs can markedly change total sales/bags in any year. Where sales are lagging (i.e., the year without a ,fbig one") special promotions may be desirable to keep sales rising. 4 J 1 20172371 7rsm SALES OBJECTIVE Sales for the first six months of 1969 are running__ Z ahead of 1968. A Z increase is projected for 1970. MARKET SITUATION Use of cementitious fireproofing is growing, although the market is about evenly divided between fiber and cementi tious fireproofing materials. Fiber has a lower material cost, but a higher cost on an equal specification basis. PRIMARY MARKET The primary market for Mono-Kote is in public, industrial, commercial and institutional facilities where structural steel construction is used. Each segment of this market should be made aware of the fact that fireproofing requirements can be met with MonoKote at favorable competitive costs. 20172372 SECONDARY MARKET While Mono-Kote has been sold for fireproofing steel structures, a substantial new market is opening in application to concrete. Use of Mono-Kote permits substantial reductions in concrete floor thickness: 7/8 in. of Mono-Kote makes possible a reduction in concrete floor from 4*s to 2% in. COMPETITION Mono-Kote competes against other materials (fiber) and other suppliers. Principal competitors are: U. S. Gypsum Cementitious Vermiculite National Gypsum Cementitious Perlite Fiber Spray-Kraft Fiber Pyro Spray Fiber * ! 20172373 DISTRIBUTION Mono-Kote is sold directly to fireproofing and plastering contractors. Exception is the West Coast area where MonoKote is sold to building material distributors and dealers. Mono-Kote is marketed primarily in the major metropolitan areas where the major portion of building which can use this product is constructed. The market for Mono-Kote is growing. Response to promotion is not particularly fast, therefore, continuous effort should be put against the product. 1 20172374 AUDIENCE The primary audiences for Mcmo-Kote are fireproofing and plastering contractors and architects. The secondary audience is general contractors, building and civic authority (code officials) having to do with fire pro tection. Role of the contractor: We have neglected him since 1960, because we concentrated on the architect. Now we are giving more attention to contractors -- plastering contrac tors and general contractors.* Fewer than 10Z of all general contractors account for 80Z of the big buildings. Large potential is in big buildings -- e.g., $1 million for one job. t The plastering contractor is a sub-contractor to tha general contractor. T v ADVERTISING GOALS 1. Since Mono-Kote is applied by the plastering industry, our primary goal is to stimulate this group.in their efforts to capitalize on the fire proofing market. 2. Make architects, engineers, and owners of buildings more aware of the need for fireproofing steel and structural concrete. Too often this need is not clearly understood and in some cases there is ignorance on the part of both code officials and architects, on this subject. 3. Improve product awareness of Mono-Kote among architects, engineers, contractors and owners of buildings: tl. Mono-Kote's high fire ratings; low cost when compared with other materials C. on a specification basis; ill. other specific advantages of Mono-Kote. 4. Convey to all audiences, as a residual effect of advertising, Zonolite's role as experts in fireproofing; as the source for the most authori tative information on fire protection. Zonolite has done more testing on spray-steel fireproofing than anyone else in the business. MAJOR ADVANTAGES Chief advantages of Mono-Kote are: Highest Performance of any product on the market. Easily Pumped - Easily pumped in high volume (200 bags/day) economically and safely, usually by a single set-up on the ground, as high as 50 stories. No wear on pump because Vermiculite is soft and lubricating. (Perlite is hard and abrasive.) High Yield - No loss in transmission. Controlled Density - You get what you ask for - uniform, tamper-proof. Bonds Strongly to Steel C fitacJL MONO-KOTE is readily available from more than 4g**plants throughout the country. 20172377 r MAJOR DISADVANTAGES Chief disadvantages are: Mono-Kote is not insulating. (Fiber does insulate.) Mono-Kote is wet and difficult to apply in winter. Mono-Kote presents a cleanup problem, especially in high winds. DISADVANTAGES OF FIBER* Gypsum's fiber disadvantages include: Fluffing up (when not tamped) when put on in the field. This results in the material reaching required thickness without reaching the required density (about 50Z less -- 8 pounds instead of 15 pounds). When applied to meet required specifications for fireproofing, the material no longer has a cost advantage. (Tamping is now mandatory in applicatio /Ur*jZ,<wAA^' Fluff blows into air conditioning ducts. Fiber is dusty. trlhciCZl gypsum-is harmful medically. Application is slower. *Moao-Kote Vs. Fiber Fiber is now on the defensive. This is the time to hit them with our theme cf "controlled density" -- "get what . --- you pay for, tamper-proof, strong fireproofing." ### 8/12/69 lh 20172370 Sales Objective Sales for first six months of 1969 are running about even with 1968. This is due primarily to strikes and other delays on major Jobs under contract. A 25% increase is projected for 1970. Market Situation Material costs for fiber and cementitious are equal. Fiber cost is higher on a strict specification basis. They lose any economic advantage when required to perform according to code and test requirements. Distribution Mono-Kote is generally sold direct. There are exceptions in scattered areas such as Texas and California. * Advertising Goals 2. The emphasis should be on proper fireproofing materials for steel and concrete. These materials should be easily applied and meet the full requirement of proper protection without additional steps or adjustments. Disadvantages Clean-up problem is from setting of MK on floors and walls and it not being easy to remove. ( 2*17137*