TEST MARKETING FOR ALUMINUM CANOPY

Feb 7, 2023

Copyright © LIXIL Corporation. All rights reserved.

 OVERVIEW OF TEST MARKETING

1. Purpose
We will verify and assess the possibility of creating demand in the Indonesian market, where aluminum independent roofs are
not yet popular.
* We do not sell it under the name of carport, but verify the possibility of various uses such as an independent roof and a
light-shielding roof.
2. Implementation method
In addition to one item of TOSTEM Premier products that are being developed in Indonesia, test sales will be conducted to
wealthy people.
3. Scheme
A service agreement will be concluded between the Exterior Business Division and PLAI, and PLAI will undertake market
research activities, including test marketing. (Same scheme as Sash/Door Division)
4. test period
April 2023 to March 2024 (12 months) *The products to be installed will be imported by the end of March 2023.
5. Specific implementation items
The actual carport SC will be installed on the premises of PLAI‘s JV partner, RODAMAS. (Permission obtained)
One local employee was hired in the PLAI marketing department.
Conducted market research and developed sales channels as a dedicated person. Share information at monthly progress
report meetings.
Create sales manuals, sales charts, etc. so that connections can be used as assets.
In addition, provide education for PLAI's design, project, and sales, and build a system that will enable the exterior business to
run on its own in the future.

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BUDGET

Item Qty JPY（ｍ)

Carport（for 1 car） 1 0.3

Carport (for 2 car) 1 0.7
Transportation & Customs 1 0.3
Expense for administration including people cost 1 2.6
Marketing expenses（catalogue or any activities） 1 2.0
Training for vendors (＠6万円/日×15日×2回＋20万円×2) ※1 １ 2.2
Exhibition １ TBD

Total 810
• Expenses for business travelers from Japan are not included.
• Separate consideration is required for exhibitions. Collaborative implementation with the
sash division got very good response from customers.
• The exterior business department will also carefully consider the possibility of perticipation

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 TG AND ROLE AND TARGET PL
■ TG & Roll (1) Get involved in the connections of design offices that design houses for the wealthy
(architect)
【TG:Hypothesis】 (2) Getting into connections that allow direct appointments with wealthy individuals
(Homeowner)
1) Approach to existing and new high net worth channels and exterior PR
【Role:PLAI】 2) Build a system (including construction system) aimed at self-propelled exterior sales

【Role:EXT Div】 (1) Judgment of marketing direction utilizing knowledge and experience as an expert in
exteriors
(2) Exterior education for PLAI staff (e.g. education of assembly know-how for LIXIL
employees)
■ Target PL UNIT=JPY10K

FYE2023 FYE2024 FYE2025 FYE2026 Total

Quantity of product 2 12 24 • Assumed to be sold at 60% of the
Sales 188 1,126 2,252 3,566 Japanese retail price
• Cost price is FOB price + sea
Cost 103 620 1,240 1,963 transportation cost + tariff
Gross profit 84 506 1,012 1,603 • EXT Div will bear the SG&A expenses
until FYE2024. FYE2025 and
45% 45% 45% 45%
beyond will be considered separately.
SG&A 130 680 360 360 1,530
Sales profit ▲130 ▲596 146 652 73

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DELIVERABLE IMAGE

① Basic information
- Understanding business practices and competing products:
- Understanding current exterior-related business practices and competing products
- Things to consider in terms of religion, customs, customs, etc.
② Market information and customer information
- Market information: Target market size, growth potential, etc.
- Customer information (to B): Business scale (sales, target area, etc.), price range of products
(housing, etc.), connections, etc.
- Customer information (to C): Personal information (possibility of purchase information such as
occupation and annual income), connections, etc.
③ Activity plan and activity status
- Visit planning, visualization of business negotiation process, customer's feeling

・・・Make a list of the above items so that everyone can understand.

※Since there are no clear competitors for the new market or the same product, we do not seek detailed information as much as Japan
Sales division, We would like to organize market information, company/customer information of sales destinations.
➡ In the future, we would like to arrange this sales data for each country and horizontally deploy it as a global exterior activity
standard.

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 SCHEDULE FOR TEST MARKETING
2022 2023 2024
12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月

Discussion for direction

Search for dedicate person

Marketing and Regular monthly debriefing session

Preparation for marketing tool

Import product Installation Decide future plan

Mr. Iwasaki
will visit

*Marketing will be implemented from April 2023, and effective marketing (exhibition exhibitions, etc.) other than
customer visits will be considered as needed.

* After the product is installed, we plan to have Mr. Iwasaki visit Indonesia, visit related companies, and make peace
with the Indonesian staff.

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USAGE REFERENCE

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RODAMAS PARKING