HD BEARINGS SALES PLAN 2012

1.SALES OBJECTIVES Objectives: Increase the local market share by taking up the domestic sales. Increase the total ordered product volume up to %20-25 Enter pre-studied markets (including South America and Japan) Beat last year's sales Increase the profit by %15 Destock last year's left over which occurred in second quarter

Regarding the objectives, partnership with the main supplier of bearing balls and bearing cages, Japanese company, would help achieving goals in time. Our company holds one of the top places in the markets in 7 continents except the countries Japan and Israel in which the competition is challenging. 2.EXISTING SALES PERFORMANCE According to last year records, our company head the best sales performance of last 10 years. Below, the numbers of last year (2011) are shown:
Category Total Sales Q1 $6.5M Q2 $9.1M Q3 $10.3M Q4 $8.3M Total $34.2M

Sales of CB2234ZZ* Sales of 66G42AZZ**

2.1M 4.4M

3.8M 5.3M

4.1M 6.2M

3.2M 5.1M

13.2M 21.0M

Market Share Market Share

%15 %22

%18 %19

%17 %20

%16 %21

%16.5 %20.5

*Car wheel bearing **Car engine bearing

Although in three out of four quarters were successful, because of a set of unexpected orders we could not cover second quarter's planned sales which also caused a left over in stock. As above mentioned, destocking this left over one of this year's objectives. 3. CUSTOMER SEGMENTATION & ACTION PLANS Our company HD has a number of different customer segments. Different segments require different services and plans. For instance, car manufacturers which are our main customers are in "high-demand segment". On the other hand we have some customers which are making their orders at the last minute and asking for "zero" defect. These should be taken into account and all related planning processes should be revised. We should run at least two segmentation schemas. High-Demand Segment This segment consists of customers that usually purchase high volumes frequently. Making contracts which would save both parties time, effort and money is important. Thus these contracts assure us of their constant order. On-Demand Segment These are the customers that order at the last minute and want it now. They usually do not worry about the price. A quota must be set for this kind of emergency orders in order to deliver them on time. An overnight or emergency on-demand offering at a much higher price should be set up. 4. OPPORTUNITIES AND TERRITORIES The one and only difference between us and our competitors is that they managed to enter two markets that we are not in yet. We still managed to compete and hold the biggest share of the global market.

The need of a trusted supplier in the domestic market is becoming prominent nowadays. Since our company had a strategic location and a quality production with high volumes, we can easily take over the market. One of our competitors had a bad experience with over-production and having defects in the last party they delivered in South America's market in which we are not in yet. We have been planning to enter this market for some years and it looks like it is the time now. Except two areas, we are clearly leading in the rest of the world. In order to strengthen our place in North America and speed the delivery procedures we should consider opening a new warehouse in Covington as we did in Germany.

5. SALES FORCE ORGANISATION The main thing we need to do is that to update sales force training programs. There is a number of points that we should always keep in mind and make our moves accordingly: Ensure that the sales management organization properly responds to the entire range of customer needs Develop and train the sales force in the tactics and behaviors required for success. Evaluate the sales pipeline management and closing process. Ensure that the cultural values needed to succeed are in place. Determine the optimum configuration of sales positions to properly sell and service the clients based on an assessment of the different roles and responsibilities. Determine the real role and impact of each sales-related position chief influencer of the sale, order-taker, provide administrative service or part of an integrated teamselling effort.

These organizational factors are necessary to the effective functioning of any sales incentive program and, more importantly, provide a road-map to the core values and performance metrics to be incorporated in the sales compensation plan design itself. In addition to our strategically located two sales office and our own sales team, we have distributors all over the word. According to our agreement they are attending the fairs for us as well as doing their own marketing. According to our agreement they have to attend a certain number of fairs and reach at least the limit of sales which is set every year. Our own sales team has a unique structure which is run by our head sales office. Our salespeople are all trained using the programs which are determined in our head office. This helps every salesperson to get the same idea and the culture about the company and our products. This year because of the high demand on our 100% sound tested bearings, we should put a limit of our distributors' partners. Those which have agreements both with us and our competitors should be asked to cancel their relations with our competitors or be discarded.

6.KEY SUCCESS FACTORS HD Ball BEARINGS is one of world's premier Precision Ball Bearing Manufacturer, producing 100% sound tested bearings, keeping the wheels of industry turning trouble-free. The design technique is to reduce friction, maintaining the least possible rolling resistance. HD is one of the first ball bearing manufacturers in the world accredited with ISO 9000 in 1993. HD has been granted numerous awards and recognitions, including best supplier, environment and natural resource conservation, engineering support and after sales service. By considering above mentioned qualifications, some of the key factors are as follows: Making no price exception Keeping the quality level same Sticking to the production plan and keeping up to schedule Provide all salespeople with the same improving training. Increasing the production volume due to growth. Consider economic crisis, panic and depression.