Business Proposition

Autel’s Product Line

Distribution in Brazil

About Brazil

• Population: Approximately 200 million• 9th GDP in the World• 2007 GDP Growth Rate: 5.4%• 2008 GDP Growth Rate Projection: 5.2%• Car Sales Record in 2007: 29.7% growth• 2008 Car Sales Growth Projection: 20%• 9th Country on the Rank of Car Sales• 7th on the Rank of Motor Vehicle

Producing Countries• 143,000 Automotive Repair Shops

About Brazil

• While most of the important countries are facing a recession, Brazil keeps growth above 5% and car sales continue impressive.

• The automotive markets in North America and Japan are stagnant, while those in South America and Asia grows strongly. Of the major markets, Russia, Brazil, India and China sees the most rapid growth.

About Me

• My name is Romero Dubeux de Andrade, I am Gary’s first employee. I work with him for over 4 years now, starting since the beginning, when we developed the business plan to take over Launch’s X431 product line exclusively in the US market.

• As you know, we sold Launch’s products in the United States, building a good market and a strong name for them.

Romero Dubeux de Andrade

• I was born and raised in Brazil. My father is an American citizen, which makes me a dual citizen by birth of both Brazil and the United States.

• I am fluent in Portuguese, Spanish and English.

• Graduated in International Business – Integrated University of Recife, PE, Brazil

Dubeux Com. & Rep.

• Dubeux Commerce & Representations is a family owned company which I have worked for as a Sales Manager when we were the Brazilian Distributor for Daewoo, the machinery and equipment Korean company.

• The company has been in business for 14 years with an impeccable reputation. I have inherited the corporation, my project is to re-structure it with my own standards to introduce Autel’s Product Line to the Brazilian Market the

Dubeux Com. & Rep. Portfolio

• Trevo Industry

• Sofima Indusa

• Fiel Industrial Equipment

• Daewoo

• Hidromineral Alegria

• Exttra Mineral

Company Resources

• Main Office located in São Paulo• Northeast Office located in Recife to

facilitate logistics operation.• VPN Integration• Asterisk Call Center System• Toll-free number and local area code Voip

numbers for the 7 largest States.• Website (Portuguese and Spanish)• Same day product delivery for orders in

São Paulo, Rio de Janeiro and Recife. Operated by a third party motorcycle courier company.

Team

• Sales Manager• Operational Manager• Secretary• Telemarketing Sales Team • In-house IT department• In-house Marketing department• Multilingual Technical Writer /

Translator • Independent Sales Reps. (minimum of

1 for each of the 26 states)

Competition• A market research was done, we found that

only a few of our competitors in the US are operating in Brazil. The prices are also higher than the same products sold in the United States.

• The only Brazilian companies that makes automotive diagnostic equipment is Alfatest and Tecnomotor. Their product line that will compete with Autel is the Kaptor and the Rasther, which has an inferior capacity than the MaxiDAS DS708, the price is equivalent.

• With lack of competition and its lower pricing structure, Autel’s products potential sales perspectives are projected to be very successful for the Brazilian market.

Competition forOBDII Code Readers

Price Range:$100.00 ~ $450.00 US Currency(R$220,00 ~ R$1000,00) Brazilian Currency

Competition for DS708

Price Range:$2900.00 ~ $7000.00 US Currency(R$6.200,00 ~ R$16.000,00) Brazilian Currency

Competition not found for all other products

• MaxiDiag JP701, EU702, US703, FR704• Vehicle Monitoring• EPB Service Tools• TPMS Diagnostic & Service Tools• Oil Reset Tools

No equivalent products where found in the Brazilian market to compete with the above listed Autel products. Some expensive scanners, similar to DS708, offers specific packages like Asian, European or American software. This could compete with JP701, EU702, US703, FR704. But the prices are very higher.

Price Strategy

• Dismembering Hardware and Software Prices – Differently than the United States, Brazil has very high import taxes. Our strategy is to be billed by Autel on two different invoices, one bill of sale for the hardware and another bill of sale for the software. This way we can apply a lower importing tariff for the software, translating the savings to the end users, been able to offer an even more competitive pricing structure.

Marketing

• Trade Shows – Automec is the most important trade show in Brazil, it takes place every two years in São Paulo. The upcoming show wil be in April 2009. We will introduce Autel to Brazil at Automec Show.In additional to Automec, there are 8 other important trade shows in Brazil that we will be attending. These shows are: Autopar, Tecnoshow, Repara Nordeste, Semana do Mecanico, Autonor, FEISA, Autoparts and Autop.

Marketing

• Magazine Ads – Full page and half page ads will be published on the highest circulation automotive magazines and journals in the country. Some of them are: O Mecanico, Sincopeças, Ponto A Ponto and Balcão Automotivo.

Marketing

• State Associations for Mechanics – There are approximately 143,000 automotive repair shops in Brazil. Most of them are affiliated to its state association. We will become a member on all 27 states associations, so we can advertise on their informative journals and participate on most events and meetings to promote Autel.

Marketing

• School Program – Special pricing (as low as our cost) will be offered for schools and teachers so they can use our products at their classes. This will be a valuable advertisement for all technicians attending classes.

• Special Student Pricing – Discount coupons will be offered to the students from the schools and teachers that are participating on our school program, as an incentive for them to chose Autel for their diagnostic needs.

Marketing

• Auto Parts Stores – Introduction of Autel’s product line will be set up by arranging meetings with all auto parts stores chains for a catalog presentation to offer distributorship of our products. The goal is to have the major auto parts stores as our vendors, including Rede Ancora - the largest chain in Brazil.

Marketing

• Print Advertisement – Catalogs, brochures and flyers will be designed for distribution to all our sales force and for direct mailing. We will be using GPS software to retrieve contact information for direct mailing and telemarketing.

Web Marketing

• Google Campaign – A pay per click campaign with unlimited funds will be set up to show our website as the 1st result when an user searches for any main keywords such as OBD, OBDII, code reader, automotive scanner, auto diagnostic, etc.

• Banner Ads – The most important automotive forums and news websites will have our banners.

• Automotive Forum Participation – Active participation on web message boards related with automotive diagnostics and scantools.

Mission Statement• Autel's product line is very diversified, it has

tools available to fulfill the diagnostic needs for any kind of repair shop. Our goal is to build a strong name for Autel in Brazil, making all the code readers and DIYers product line available for sale on all auto parts/aftermarket stores. As for the specialized diagnostic scanners line we want to set up the largest independent sales network of diagnostic equipments in the country. 

• Benefiting from an outstanding sales network and an aggressive marketing plan, resulted from a partnership that will benefit both of us,  every shop in Brazil will know Autel. As for having the best OBD Code Readers and for having a complete and most affordable specialized comprehensive diagnostic equipment line.