Strategic

Marketing Plan

Marketing Channels

Executive Summary
We design and build equipment guaranteed to perform as expected or be prepared to take it back
and never sacrifice the future for short term gain. The Marion brand is recognized as a leader in
the processing industries where equipment is shipped to most states and provinces in North
America and to over 70 countries globally.
Marion Mixers manufactures mixing and blending equipment for the processing industries. This
experience as a custom design capital equipment manufacturer has enabled Marion Mixers to
design, fabricate and assemble processing equipment involving over 1,000 different product
applications. New product innovation, plant expansions and cost reduction initiatives drive
demand for Marion Mixers products. The core areas of expertise are in the food, plastic,
chemical and the mineral industries. The company also has extensive experience within other
industries such as pharmaceutical, petrochemical, coatings and animal feed. The recycling
industry and waste-to-energy bio-solids and biomass feedstock mixing and drying are other
growth industries for the company.
Marion Mixers is more than just a mixer manufacturer. They are a turnkey processing solution
provider as well. Their sales representative network consisting of product handling and
processing capital equipment specialists work with the Marion project team to provide project
consulting and equipment designs to meet application needs.
Areas of focus with this strategic marketing plan unclude:
Market size
Current demand in target markets
Growth history
Trends in target markets
Channel Management
The following charts and tables for this study illustrate mixer sales by market segment.
Beginning mid-decade (2000-2010) the following industries were considered target industries:
Food, Bakery, Plastic, Chemical and Construction Minerals as shown below.
Summaries of each designated market may be found in the Appendices. This information
includes a breakdown by industry listing, industry description, product requirements, customer
types, estimated market size, competitor analysis and forecast trends of that particular industry.
In addition, a competitive analysis based on the estimated sales by industry for our top four
competitors at the time of this study is shown in the Appendices.

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Chemical
Food
Mineral
Pharmaceutical
Plastic
Recycle
Shipped Mixers by Core Industry
Chemical
Food
Mineral
Pharmaceutical
Plastic
Recycle
14
30
39
13
2
2

Market Segmentation


























Plastics
12%
Construction
13%
Soap / Detergent
3%
Dairy
1%
Agriculture Feed
1%
Pharmecuetical
1%
Chemical
10%
Bakery
10%
Food
15%
Grout
5%
Recycled
29%
Market Segment Share of Market
2

Estimated Market Size
The following table lists estimated market sizes and forecasts for growth, profitability and ease
of market entry.
(Dollars in 000s) (10 = high, 1= low)

















Market Share
The Powder Bulk Solids show directory lists 42 companies as suppliers of dry solids mixers. Of
these companies, 23 competitors have published advertisements in trade journals for horizontal
shaft mixers. Marion and Lowe* routinely compete with 12 competitors.
*Lowe is a division of Marion Mixers.
Industry sales numbers are typically not published in this industry. Many of the companies are
private companies. Many competitors are privately held and produce a variety of products, which
are not mixers. Facts about the Marion Mixers market share:
The domestic market size for mixers competing in this design is estimated to be $40
million.
Marion and Lowe comprise roughly 10-19% market share (estimate.)
Marion and Lowe have opportunities to quote about 50% of the available projects. In
some markets it is much less (i.e. <25%).
The remaining projects are supplied by preferred or existing vendors.
Industry Segment
Estimated
Market
Size
Projected
Growth
Rate Profitability
Plastics $5,000 8 10
Construction $4,000 5 5
Soap / Detergent $2,000 3 7
Dairy $500 2 8
Fertilizer $2,000 3 3
Agriculture Feed $1,000 3 3
Pharmaceutical $3,000 5 7
Chemical $4,000 4 8
Bakery $3,000 3 8
Food $4,500 3 10
Grout $2,000 8 7
Recycled $3,000 8 4
Others $6,000
Total $40,000
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Traditionally 60-70% of Marion and Lowe orders are a result of repeat buyers. That
number continues to change.

Competitive Intelligence
Estimated Competitive Market Share
Marion Mixers, American Process and Scott Equipment compete nationally on a wide variety of
projects. Competitors like AIM, HC Davis, Reimelt Henschel and Littleford sell nationally but
to a smaller variety of targeted industries. Many of the small manufactures included in the
Other category sell mixers within geographic regions close to their place of business.
Competitive Performance Analysis

Company Strengths Weaknesses
American Process
Gurnee, IL
Aggressive sale / marketing
Wide product breadth
Good cosmetic appearance
Over promise / under perform
Average fit and finish
Foreign ownership
Scott Equipment
New Prague, MN
Low price point
Wide product breadth
Aggressive sales / marketing
Less than average quality
Average customer focus
Financial stability
Ross Equipment
Hauppauge, NY
Advertise 1/3 less cost
Advertise Mixers in stock
Good brand name recognition
Limited application experience
New to horizontal mixer industry
No test mixer capabilities
Hayes & Stoltz
Fort Worth, TX
Strong financial stability
Good quality industrial designs
Low price point
Known for Ag feed mixers
Limited industrial applications
No test mixer capabilities
Kelly Duplex
Springfield, OH
Cast bolted arm design
Good quality industrial designs
Low price point
Mixers are not primary focus
Focused on Ag feed mixers
Littleford - JH Day
Florence, KY
Reputation for good quality
Strong brand name
Low price point
Re-entering horizontal market
One size fits all
Foreign manufacturing
Used Equipment
Price point at 65% of new
Brand preference not an issue
Relatively fast delivery
One size does not fit all
Buyer beware of purchase
Limited application experience

Price
Littleford-Day is the only company with prices higher than Marion and Lowe.
Ross has generic mixers in stock and discounted by 1/3 of engineered mixers to compete
with used equipment suppliers.
Delivery
Production lead-times for Marion and Lowe mixers are competitive with other custom
engineered blenders.
4

Competitors with low cost, foreign manufacturing sources are shipping large inventories
of stock blenders in order to reduce shipping costs (JH Day and Ross).
Availability of stock mixers is detrimental to used equipment dealers.
JH Day and AIM have generic mixers in stock for immediate delivery.

Competition
Mixer manufacturers such as Ross, AIM, Aaron, and Equipment Xchange advertise stock
mixers with immediate delivery capabilities.
Ross is importing mixers from their production facilities in China. They advertise, new
ribbon blenders priced 30% less dozens in stock from 1 to 120 cu. ft.

AIM is building stock mixers in Missouri (Probably Springfield). Stock sizes up to 150
cu. ft. for both 35 and 60 lbs/ft3 materials. They are priced higher than Ross and Day but
below Marion Mixers and Lowe.

Aaron is advertising a multi-facet equipment approach:
o Used equipment at low cost / immediate delivery
o New stock mixers at standard price / immediate delivery
o Custom mixers designed and built to the customers specs.

JH Day is importing standard trough and agitator frames from Brazil and then making
modifications in the States. JH Day offers both stock and custom mixers.

Conclusion: Some customers are willing to sacrifice custom design features for faster delivery
and/or low price. This results in fewer field changes and inevitably more operator
inconveniences.

Market Trends
Suppliers of horizontal blenders can be grouped into three categories:
Custom Manufacturers Companies like Marion, Lowe, Scott and American Process
who design and build equipment specifically for each application. Customers typically
review approval drawings prior to fabrication. 30% deposit is standard. A custom
fabrication strategy promotes brand preference, customer loyalty and a premium price
over standard designs. Lead-times are generally 8-10 weeks.
Standardized Manufactures Companies like Ross, AIM, JH Day and Lee Industries
build pre-engineered sizes of mixers. Each frame size may be used in numerous
applications. The customer is responsible for field modifications to make the equipment
fit the process. Some competitors advertise 30% lower price. Others charge a premium
for fast delivery. Lead-times are generally 0 to 2 weeks.
Used Equipment Dealers Companies like Aaron, Federal Equipment, Walter
Equipment and Surplus Equipment sell used mixers based on lower price and immediate
delivery. The buyer is responsible for the condition of the equipment as well as the
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viability of the machine within the application. The selling price of used equipment is
typically 50% to 75% of new. Based on inventory lists published on web sites, 95% of
used low speed mixers have ribbon agitators.
A Google search identifies 14 companies selling used ribbon blenders. A total of 876 used
ribbon blenders were offered as stock mixers available for immediate sale (not mixers
consigned for sale.) Using a conservative approach and assuming dealers turn equipment
inventory once every five years, the sales of used mixers is around 876 / 5 = 150 each year.
Conclusion: Used equipment dealers sell more mixers each year than Marion Mixers, Lowe
Industries and our top three competitors combined.

Sales Regions (Marion Mixers)

























6

Sales Rep Territories


Sales Territory Analysis
This is an example of the target SIC industries that make up the 14 county greater Chicago MSA
(Metropiliotan Area) and an overview of the SIC industries and product applications of mixers
shipped in this territory.
Marion Mixers SIC Industry List
In 2011 the marketing department created a market SIC code list based on product applications
associated with shipped mixers dating back 25 years. This list containson 268 unique SIC codes
(SIC4+4) classification. They are broken down by core industry as follows:
SIC
Group Industry
Number of
SIC Codes
% to
Total
20 Food 137 52.49%
28 Chemical 28 10.73%
30 Plastic & Rubber 10 3.83%
32 Mineral 86 32.95%
Total 261 100.00%
7


Chicago MSA Territory
The Chicago-Joliet-Naperville, IL-IN-WI Metropolitan Statistical Area (MAS) consists of the
following counties:
County State
Chicago-Aurora-Joliet, IL
Metropolitan Division
Cook County IL
DeKalb County IL
DuPage County IL
Grundy County IL
Kane County IL
Kendall County IL
McHenry County IL
Will County IL
Gary, IN Metropolitan Division
Jasper County IN
Lake County IN
Newton County IN
Porter County IN
Lake County-Kenosha County, IL-WI
Lake County IL
Kenosha County WI


Chicago MSA SIC Code Analysis
Using the Marion Mixers Sic Industry list to query the Chicago MSA territory there are 1000
prospective companies in this territory broken down as follows:


Companies Industry
% to
Total
314 Food 31.46%
142 Chemical 14.02%
423 Plastic/Rubber 42.38%
121 Mineral 12.12%
1,000 Total 100.00%
314
142
423
121
Food
Chemical
Plastic/Rubber
Mineral
8


Chicago MSA Company Size by SIC Industry:
Iood Compan|es to 1ota|
> 100 employees 46 13
>10 employees 130 48
<10 employees 118 38
1oLal 314 100
Chem|ca| Compan|es to 1ota|
> 100 employees 13 11
>10 employees 67 48
<10 employees 38 41
1oLal 140 100
|ast|c]kubber Compan|es to 1ota|
> 100 employees 63 13
>10 employees 191 43
<10 employees 167 39
1oLal 423 100
M|nera| Compan|es to 1ota|
> 100 employees 10 8
>10 employees 49 41
<10 employees 62 31
1oLal 121 100

Drying Systems (Prospective Market Research)

There are issues that apply to the sale of all dryers. First, you have to identify the primary reason
for drying. Many times, drying is a necessary step in the processing of an ingredient for final
product. For example, in the dry distillers grain market when it is necessary to get dried distillers
grains (DDGs) to a suitable nutritional consistency as well at an acceptable solid with reduced
moisture it is necessary to dry the feedstock.
One must also weigh the added costs of drying against the added value of that action. For
example, the cost to dry a ton of corn stover with conventional drying technologies can easily be
$30-$60 per ton. If coal is selling for $40 per ton, it is not very lucrative to add the drying step.
Dryers
Dryers tend to be physically large. Most drying technologies are very old. Many are more than
a hundred years old. Even the newer super heated steam dryers are based on German
inventions from the 1800s. Typical dryers found in the USA are large rotating units, ring dryers,
belt dryers, etc. Typically they are direct gas fired, which poses several problems:
1. The flame degrades the product, causes losses in protein, changes color of product, etc.
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2. Fires are commonplace.
3. Many dryers use high pressure steam as a heating medium. This requires certified boiler
operators, liability insurance, air permitting, etc.
4. Most dryers have enormous swings in product quality. Often, there is virtually no way to
determine what the product looks like for 25-35 minutes until it comes out the other end.
A lot of product is lost due to temperature swings, bad color, scorching, clumping, etc.
5. Large dryers are inflexible and do not respond well to production changes.
6. Thermal oxidizers are often required to treat noxious components as they exit dryers.
Thermal oxidizers are one of the biggest maintenance nightmares. They break often and
there are steep fines for the resulting problems and they are extremely costly to run.
7. Depending on the application, inputs and intended outputs, various drying systems may
have the potential to meet the cost-effective drying solutions for both small and large
facility processors of bio-solids and other biomass feedstocks. For small-to-medium
wastewater treatment plants the cyclonic drying system may be capable of meeting cost
effective production requirements as well as provide a potentially new revenue stream in
processing a Class A bio-solid co-product, i.e. fertilizer or fuel source (briquettes/pellets)
off setting processing expenses.

Operating Costs

Two standard metrics include:
Total connected horsepower and the energy cost compared to other fuel sources.
The cost to dry one wet-ton per hour compared to other technologies and the cost to dry
higher wet-ton levels per hour based on the target industry and production requirements.
The ability to demonstrate the drying process of a variety of feedstocks in a simulated production
setting and to document and present empirical data to interested prospects is important. The list
of materials that drying systems can process efficiently is broad virtually anything that needs
moisture removed.
Market Plan Attributes
The main strategy of a proposed drying system marketing plan is to make the best use of R&D,
engineering and sales and marketing resources that may focus in thedr areas:
1. Research bio-solids & biomass drying markets
2. Identify commercially scalable projects
3. Form alliances with various organizations including
a. Non-Government Organizations (NGOs)
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b. Academic & industry consultants
c. Other commercial vendors
d. Government agencies
4. Identify relevant funding opportunities

Most biomass & bio-solids feedstock conversion ventures have these attributes*:

Demand
1. Feedstock specifications & standards
2. Technology conversion efficiency & production costs
3. Price elasticity of customer

Supply Structure Options
1. Broker/Dealer
2. Producer
3. Harvester/Collector
4. Transportation/Storage & Logistics
5. Processor
6. Business/Financial Service Provider

Perceived Riskiness of Venture
1. Technology risk
2. Operational risk
3. Supply risk
4. Market risk
5. Price & competition risk
6. Contractual risk
7. Ownership structure & strength of parties
8. Policy risk
9. Regulatory risk
10. Funding & financial risk
11. Appropriate business model

* By permission, from Dr. Timothy M. Baye, Professor, Business Development, University of
Wisconsin Extension, Bio Economy & Bio-Energy Specialist

The top 2 industries to possibly persue include:
1. Alternative energy fuel source (Waste-to-energy, bio-solids & biomass feedstock
conversion)
2. Waste by-product (organic fertilizer)


11

The top 4 drying markets to consider pursuimg include:
1. Confined Animal Feed Operation (CAFO) Manure Processors
2. Wastewater Treatment Plant Bio-solids Processors
3. Biomass Feedstock (Agricultural and Industrial) Processors
4. Industrial wastes

Other markets for feedstock sourcing include:
1. Combined Heat & Power (CHP) companies
2. Landfills including wastes with organics

CAFOs
Animal Feeding Operations (AFOs) are agricultural operations where animals are kept and raised
in confined situations. Concentrated Animal Feeding Operations (CAFOs) are AFOs that meet
certain EPA criteria. CAFOs make up approximately 15 percent of total AFOs. A small number
of very large CAFOs predominate. Based on the USDA census of agriculture statistics and US
EPA sector expertise there were an estimated 20,700 total CAFOs in 2008. Of that amount, 75%
or 15,500 facilities might be subject to manure discharge regulations and seek National Pollution
Discharge Elimination System (NPDES) permits.
While there are many livestock types recorded and measured, five major categories of animal
type (dairy cattle, beef cattle, swine, poultry layers and poultry broilers) account for most of the
manure. Of the estimated discharge of 15,500 facilities, approximately 8,300 large, major animal
category facilities make up the available market. The current range is between 8,300 to 9,900
large facilities.
The tables below show the change in herd size in milk cows and beef cattle. Our long term target
market consists of those operations that are highlighted in yellow consisting of 500 head or more.
Currently the type of operations that we have been talking to consist of herd sizes greater than
4,000 animals
Mllk Cows: CperaLlons 8y Slze Croup
02/13/2009
Head 2007 2008 Change
<29 21,703 21,300 -1.87
30 - 49 12,270 11,900 -3.02
30 - 99 19,330 17,800 -7.92
100 - 199 9,011 8,700 -3.43
200 - 499 4,339 3,930 -9.38
300 - 999 1,720 1,720 0.00
1,000 - 1,999 920 900 -2.17
2,000+ 680 730 7.33
Un|ted States 69,99S 67,000 -4.28
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8eef Cow CperaLlons 8y Slze Croup
02/13/2009
Head 2007 2008 Change
<49 606,200 601,000 -0.86
30 - 99 83,830 83,000 -3.32
100 - 499 68,430 67,200 -1.83
300 - 999 4,420 4,340 -1.81
1,000 - 1,999 1,100 1,123 2.27
2,000 - 4,999 280 280 0.00
3,000+ 30 33 10.00
Un|ted States 766,3S0 7S7,000 -1.22

CAFO manure feedstock is a prime target market for potential drying systems. Access to recent
new technology provides large CAFO facilities with an environmentally and economically
effective solution for beneficial manure reuse, as well as volume and weight reductions of the
manure. These reductions decrease transportation and application costs and aid the operator in
conforming to the latest US EPA CAFO manure management rules and guidelines.

This technology also helps to reduce nutrients from the waste stream, specifically nitrogen and
phosphorous in over abundance as well as provide an organic fertilizer by-product.
EPA Regions
The concentration of large target market CAFOs are located in 25% of the country within states
in US EPA Region 4, 6, 7, 8 and 9. The number one dairy CAFO state is California followed by
Wisconsin in Region 5. The top swine
CAFO states are Iowa and North
Carolina respectively. Large cattle
CAFOs have expanded to the
central/southwestern regions of the U.S.,
where land is less expensive and
populations are relatively sparse in
regions of Nebraska, South Dakota,
Kansas, Oklahoma, Texas, Colorado and
Wyoming. Most broiler chicken and
layer CAFOs are located in the
southeastern states of region 4, specifically Alabama, Georgia and Arkansas.
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Some of the larger CAFOs are using anaerobic digesters to process the bio-solids. Although a
mature method in Europe, it is a growing market for livestock producers who manage manure.
There are currently 154 larger CAFOs to date that have anaerobic digesters as part of their
manure management process.
Bio-solids
The term bio-solids refers to sewer sludge that has been treated to meet the regulatory
requirements in the Code of Federal Regulations, Title 40 (Part 503) also known as the 503 Rule
for land application. It generally refers to agricultural uses or land applications. The term
beneficial use refers to biosolids that are applied to soils to take advantage of the nutrients and
organic matter they contain. Biosolids may be recovered from a sewage or manure treatment
process and used as a fertilizer or in ways other than the soil applications as in energy
production. That may include pelletizing or briquetting as a fuel source for thermal heat
combustion or gasification creating syngas.
Disposal refers to the disposition of solids in ways that do not take advantage of soil-enriching
qualities this includes incineration, land filling and surface disposal. The US produces 7.2
million metric tons of dry solids annually. Currently, plants incinerate or landfill 45% of the
biosolids and treat and land apply 49% leaving only 6% for other purposes such as energy
production. We are interested in the beneficial use of bio-solids as a fuel source (alternative
energy or fertilizer.)
Bio-solids Quality
The land application of sludge is regulated by the state which requires sludge to be treated before
its use. There are two ways to treat sludge: pretreatment, which prevents pollutants such as PCBs
and metals from entering the sewer drains; and treatment at the wastewater facility for organisms
that cause disease. Sludge is classified as either Class A or Class B, depending on the type of
treatment it has received. Class A sludge has benefited from both pretreatment and treatment at
the wastewater facility. The pathogens in Class A biosolids cannot exceed certain levels set by
the EPA.
Standards for Class B sludge are less stringent, and their use is therefore more regulated. A
landowner who wishes to use Class B sludge as an alternative to conventional fertilizers must
apply to the state governing agency to register the site. Among other items, the application
requires information on the type of land, the amount of buffer zones, and the type of soil. The
applicant must also provide information from the wastewater treatment facility on the type of
pollutants and pathogens in the sludge, and calculations of nutrient needs for the crops.
The use of Class B sludge on land has been criticized by the Center for Disease Control and the
National Institute for Occupational Safety and Health. A land owner using Class A sludge does
not have to register his land.
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Beneficial use of bio-solids is an extremely important issue. The antiquated practice of land
applying class B bio-solids is under extreme scrutiny due to liability issues associated with the
materials. The main challenge is finding a Class A solution that is competitive with land
application. The cyclonic drying system meets all Class A Bio-solids pathogen and vector
attraction reduction requirements. The liability of land applying Class B Bio-solids is virtually
eliminated.
Bio-solids Market
Biosolids are generated by wastewater treatment facilities; either publicly owned treatment
works (POTWs) or by facilities operated by federal agencies or private companies. The numbers
include:
16,583 publicly owned wastewater treatment facilities in the US.
13,261 treat < 1MGD (million gallons per day of wastewater affluent) considered
minors.
3,322 treat > 1MGD and generate more than 92% of the total quantity of wastewater
solids produced in the US considered majors.
551 treat > 10 MGD
A community population of 10K = approx. 1 MGD flow. Communities < 10K population
are considered small communities by US EPA standards.
20 major waste water and storm water utility companies provide services to 70% of the
US sewered population. There are over a dozen global manufacturers with private
wastewater facilities servicing municipalities in the US.
The 16,583 US publicly owned wastewater treatment facilities produce over 64 pounds of
bio-solids per person, every year.
The 13,261minors are in relatively small communities. They manage their wastewater
solids in ways that are not necessarily represented by how majors manage them. For
example, minor (</= 1 MGD) facilities will often:
o store solids in wastewater or sludge lagoons that are only cleaned out every 5-20
years
o utilize the lowest-cost and least-hassle method for managing solids, such as land
filling and/or transport unrelated solids to larger facilities for treatment.

These smaller facilities treat only 8% of the total flow (MGD) and use or dispose of the same
small or even lesser- percentage of solids. These solids are insignificant on national, regional
13

and state scales. Many likely become part of larger facilities solids production, but most cannot
be easily counted on a state or national scale and these may not be included in the data.
Energy Opportunities in Wastewater and Bio-solids
Today, wastewater treatment facilities can generate some energy by producing a dewatered or
dried product to burn at a power generating station or by anaerobic digestion and generation of
biogas (methane). Most large wastewater treatment plants have some type of heat energy
recovery, either from combined heat and power cogeneration or incineration processes.

As of 2004, 1006 public wastewater facilities used anaerobic digesters (digestion without air) to
process biosolids, producing methane gas. Nineteen percent of wastewater plants with anaerobic
digesters generate power with digester gas (biogas). The biogas is a source of heat or a source of
fuel for direct-drive combustion engines to make steam in boilers, or in plants that can sell it.
The other 81% of wastewater facilities waste the biogas by using the common practice of flaring
or burning their emission without heat or energy capture.

Financial Benefits
Estimated ongoing financial benefits from access of new drying technologies include:
Reduced power consumption because of high efficiency drying compared to thermal
dryers.
Reduced storage areas because of volume reduction.
Reduced removal cost from site because of weight reduction.
Emissions-friendly Cap & Trade (emissions trading) solution, potentially valuable in
the future.
Reduced maintenance and repair costs through protection of exposed surfaces of plant
and equipment from moisture and hydrogen sulfide corrosion.
Ease of handling and transport compared to biosolids cakes.
Highly energy-efficient; only energy required to operate the system is for the blowers and
conveying equipment.
Safety - There are no fire hazards.
No air permitting
The design we offer meets EPA guideline alternatives for the 503 standard for Class A
material. This means that the pathogens or bugs are dead and the material is safe to
transport or land apply. It also means other pests such as birds or rats wont want to eat
the material. Conversely, a Class B material is a considered hazardous material by the
EPA.
End use by-product production system



16

Opportunities
1. Urgent need due to aging treatment facilities, and stricter groundwater requirements.

2. Publically-owned municipal waste treatment plant equipment and services is a $55 billion
industry.
3. Commercially-owned waste treatment facilities is a $7.3 billion plant equipment and
services business with 5,333 facilities of which the 50 largest companies control 65% of
the business.
Strategic Marketing Plan
1. Identify by regional EPA geography, waste water treatment facilities >1MGD.

2. Identify by regional EPA geography large CAFO facilities > 500 head facilities.
3. Create alliance partnerships to foster technology and penetrate markets. Partners may
include government agencies, NGOs, academic consultants, engineering firms, etc.
4. Resource state & federal sources for grants and credits involving bio-solids and biomass
waste-to-energy projects. Some funded grant programs include:
Grow Iowa Financial Assistance Program (GIVFAP). Projects are focused on job
creation and retention. A relevant program is the Value Added Agriculture and
Entrepreneurial program.
Iowa Department of Economic Development (IDED) Demonstration Fund.
USDA Rural Development Energy Program Business Research and
Development Program
Rural Energy for America (REAP) program for renewable energy systems (RES)
National Resource Conservation Services (NRCS) Bio-solids/Biomass
feasibility program.
Farm Pilot Project Coordination, Inc. (FPPC) Demonstration Project Funding.
Other Regional agencies we are currently working with include: Agriculture Utilization
Research Institute (AURI) in Minnesota, the Biomass Energy Conversion (BECON) Facility
which is part of the Iowa Energy Center and Focus on Energy in Wisconsin.

3. Coordinate with our sales team relevant events and bio-solids and biomass events to
facilitate training.
17

6. Author and publish case studies and white papers on projects involving our mixing and
drying technologies for relevant trade pub print and electronic media channels.
7. Conduct a thorough PR campaign and purchase relevant keywords for search directory
marketing.
8. Explore the use of planning tools, i.e. The EPA Waste-to-Energy (WTE) Geographic
Information System (GIS) tool, The Water Environmental Research Federation (WERF)
Infrastructure Asset Management tool and the IADNR Interactive Mapping tool.
9. Work with our existing industrial processing customer base to identify prospective bio-
solid and biomass ventures.
Social Benefits
There are also many social and political issues associated with CAFOs. Environmental concerns
such as groundwater contamination from nutrients, air pollution, declining property values
located near CAFOs, and taxpayer farm subsidies. Certain legislated subsidies provide the capital
for the manure management infrastructure for CAFOs. Government funding in the way of grants
and loans from the USDA, EPA and DOE provide capital for projects affecting CAFOs. This
activity positions our company as a solution provider for many of these issues.

The need to come up with alternative energy sources other than fossil fuels has driven the
technology, R&D and investment dollars behind renewable fuel sources. Development in this
area, which was started over a decade ago, is now coming into fruition. Liquid fuels for
transportation and other fuel types derived from renewable cellulosic and lignocellulosic
feedstocks have now become viable, commercially processed liquid fuels such as bioethanol and
biodiesel processing.
Alternative Energy (Renewable Fuels)
Between 2001 and 2007, U.S. fuel ethanol production capacity grew 220 percent from 1.9 billion
to 6.1 billion gallons. Each bushel of corn yields 2.8 gallons of ethanol and 17 pounds of dried
distillers grains (DDG) and a thick, heavy liquid called soluble or syrup. In most cases the
soluble are sprayed back onto the distillers grains and dried. However, more recently, both the
liquid and dry co-products have garnered attention as valuable products individually.

High in energy value at over 8,400 Btu per pound, the distillers grains are a valued fuel
feedstock. They can be co-fired with nonrenewable fuels like coal to help reduce emissions or
mixed into solid fuel pellets. Other residues from agricultural, forest, animal and municipal
wastes are one source of inexpensive sugars for cellulosic ethanol production.

Removing different forms of water from organic matter proves to be the most difficult and
expensive part of processing waste organic matter into useful products. As energy costs and
18

labor costs increase, the efficient processing of these organic raw materials becomes more
important.

Additionally, present large scale agricultural practices fail to achieve long term and sustainable
soil health. Soil, which provides the nutrients required to grow healthy crops on which we
depend, is quickly depleted by most modern farming systems. In attempts to industrialize and
scale-up farming practices, which include the planting of a rapid succession of nutrient sapping
crops that cannot replenish the soil, natures replenishing processes are bypassed,

To supplement or supplant nature, farmers must turn to industrial sources to provide sufficient
quantities of fertilizers to keep the soil infused with the required nutrients and vital organic
materials. As fuel costs rise and clean burning sources of renewable resources become more
difficult to obtain, a recycled material with potential use as a combustion heat source is needed.
Furthermore, there is need to economically produce these essential nutrients or organic raw
materials in a form readily available for use in a feed, fertilizer, or fuel, resulting in more
commercially viable animal and plant food, and energy source.


Marketing Plan Strategy
Strategic Areas of Focus
1. Market Research
2. Lead Generation
3. Compliance & Standards Promotion
4. Sales Training
Trends
Direct mail, print advertising and
tradeshow expenses are down.
Shift towards newer online tactics: content marketing, white papers, social media and
search engine marketing.
We are able to produce more quality marketing with less expense. Number of leads up;
Cost of leads down; Quality is up.
Historically, 80% of sales came from repeat customers and 20% were new. Now 44% of
our sales are from new customer
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20


















21

Appendices

Target Industries

PLASTICS

Description Pellets and powder, pre and post compounding PVC resins

Requirements Cleanliness between batches
Batch blending of powders for formulation
Batches accumulation for color consistency
Continuous cooling for PVC compounding

Customers Formulation Small number of large companies
GE, Dupont
Compounding Large number of mid sized companies
RTP, LNP

Market Size $5.0 M

Competitors Company Market Share Focus
Marion Mixers 15% Colors
Scott Equipment 20% PVC
Henschel 25% PVC
Littleford 10% PVC
American Process 10% Colors
Others 20% Colors

Trends
! Price of crude oil effects cost of plastics.
! Pacific rim manufacturing of plastics is on a rise.
! Recycling industry will become a bigger portion of this market.

22



CONSTRUCTION

Description Mastics, glue, adhesive, insulation, glass, paints, pavement markings
semi-liquid

Requirements 75% batch blending with jacketed ribbon or paddle
25% continuous blending with semi-cylindrical trough
Clean out between batches
Liquid tight seals
Durability of equipment is a must

Customers Large companies USG, National Gypsum, 3M
Engineering specifies, purchasing group buys

Market Size $4.0 M

Competitors Company Market Share Focus
Marion Mixers 20% Gypsum
Scott Equipment 30% All
Ross 30% Adhesives
Munson 5% Gypsum
Others 15% All

Trends
! Interest rates drive construction usage
! Regional plants constructed to reduce freight costs.
! World production will increase within regional production plants.
! Glues/mastics are produced in north-eastern states


23



SOAP/DETERGENTS

Description Dry granular detergent with liquid surfactants

Requirements All batch blending
30 to 130 cu. ft. capacity
Durability of equipment is a must
Stainless and carbon steel

Customers Small to mid sized companies
Unsophisticated design requirements
3-4 companies per major US city

Market Size $2.0 M

Competitors Company Market Share
Marion Mixers 10%
Scott Equipment 20%
Ross 10%
Munson 10%
Davis 5%
Kelly Duplex 15
Others 30%

Trends
! Trend towards liquid detergents rather than powders
! Powder growth rate linked to size of population
! Large number of users
! Customers are regionally located around major US cities



24



DAIRY

Description Cheese, milk, dairy supplement, powdered milk

Requirements USDA inspected
3A sanitary
WDA (Wisconsin dairy)
Clean out between batches
Liquid tight seals

Customers Medium to large companies
Knowledgeable customer base
Third part inspections of equipment

Market Size $0.5 M

Competitors Company Market Share
Marion Mixers 10%
American Process 25
Ross 20%
AIM 10%
Others 35%

Trends
! Industry is government regulated
! Very little change in industry
! Heavily supplied by local SS shops
! Growth rate tied to population



23



FERTILIZER

Description High volume, granular, nitrogen based ingredients

Requirements Fast cycle times, liquid additions
Carbon & stainless for corrosion
Size reduction held to minimum


Customers Medium sized regional locations
Scotts, Percell, Andersons are premier accounts
Unsophisticated customers
Typically reactionary to business trends

Market Size $2.0 M

Competitors Company Market Share
Marion Mixers 0%
Scott Equipment ??%
Munson ??%
Kelly Duplex ??%
Hayes and Stoltz ??%
Others ??%

Trends
! Drum mixers doing most of business
! Growth follows agriculture market
! Industry is consolidating
! Home improvement market is new growth area





26



AGRICULTURE

Description Ground feed, grain, pet food, mineral

Requirements
Feed Low cost with no added features
Pet food sanitary at low cost
Reliability generally good customers
Ribbon style agitator is standard
Clean-out between batches

Customers Small to Medium sized regional locations

Market Size $1.0 M

Competitors Company Market Share
Marion Mixers 5%
Scott Equipment 25%
Munson 10%
Kelly Duplex 15%
Hayes and Stoltz 30%
Others 15%

Trends
! Large existing Marion Mixers customer base
! Large potential for replacement parts
! Industry is in a consolidation mode with large low cost, ribbon blenders
gaining the business.
! Contract feed producer processing own grain for animal factories
! Poultry market is a growing industry in export markets
! May be good South American and Central America industry

27



PHARMECUETICAL

Description Granulations prior to tabulation (Tumms, nutritional supplements)

Requirements Cleaning between batches
Ultra tight quality controls between batches
Mfg protocol that stays the same from lab to production
Additions done by hand very controlled
Materials/finished are more defined

Customers Fortune 500 companies
Engineering firms are involved in the design
Knowledgeable customer base
Third part inspections of equipment

Market Size $3.0M

Competitors Company Market Share
Marion Mixers 2%
Patterson Kelly 70
Gemco 10%
Others 18%

Trends
! Traditionally a V-Cone market
! Industry is growing with maturing baby boomers
! Generic drugs the growth trend-may farm out to smaller guys
! USDA approval will continue to be required
! USDA pipeline not full


28



CHEMICAL

Description Granular and power processing

Requirements Cleaning between batches
Heat and cooling jacketed
High end stainless steel 316
Corrosion resistance
Service life on seals

Customers Fortune 500 companies - located on gulf & east coast
Old production facilities
Engineering firms are involved in the design
(bid price, spec. evaluation, paperwork)
Knowledgeable customer base
Third part inspections of equipment

Market Size $4.0 M

Competitors Company Market Share
Marion Mixers 15%
Scott Equipment 15
American Process 15%
Littleford 30%
Others 25%

Trends
! Smaller companies are being acquired by large and foreign companies
! Sometimes the customer needs exceed MM capabilities
! Chemical engineering is slowing down
! Regulations have moved manufacturing off shore
! Specified by engineering firms



29



BAKERY

Description Producers of blended bakery goods
Generally flour and yeast based

Requirements Equipment must be suitable for cleaning between batches
Choppers for addition of shortening and minors
CO
2
jacketed for cooling
Consistency of end product
Continuous welds - no cracks - stainless
Condensation control

Customers Large to Fortune 500 companies
Regional market locations 1 plant to every 4 states
Some national accounts
World market for super large companies

Market Size $3.0 M

Competitors Company Market Share
Marion Mixers 20%
American Process 50
Scott 5%
Littleford 5%
Hayes Stoltz 3%
Davis 2%
Others 15%

Trends
Retail sales at big box stores has changed mfg to small regions
2-3% growth corresponds with population
More preprocessed ingredients or meals
Outsourcing toll packaging due to fixed costs, no labor concerns
Advanced packaging technology driving change in industry.
Big companies merging into larger companies
Chopper was key equipment to MM getting into this market


30



FOOD

Description Dry ingredients, chocolate, sauce, drink mixes, coffee and candy Anything
not dairy, meat or bakery

Requirements Equipment must be suitable for cleaning between batches
All welded inside and out
Choppers for addition of shortening and minors
Versatile many uses in one design
Heating/cooling

Customers Small/medium companies = 85%
Large companies = 15%
Regional market locations
Some national accounts
World market for super large companies

Market Size $4.5M

Competitors Company Market Share
Marion Mixers 20%
American Process 20
Scott 15%
Ross 10%
AIM 6%
Davis 4%
Others 25%

Trends
Potential in every city in America - People need to eat!
Localized markets
Internet can help change the buying
Little customers
Usually work direct with owner
Pass business on to 2
nd
generation
Sell to regional stores
Big customers
Usually buy through systems houses
Engineering people involved
Ongoing consolidation to toll blenders

31


GROUT

Description Dry cement based mixes with colors and additives

Requirements Equipment must be suitable for cleaning between batches
Durability and dependability (AR liners, Chrome blades)
Rapid cycle times (Drop bottom, surge hopper)
40# palletized bagged product, not in bulk (weigh hopper)
Not high tech process, usually gravity fed

Customers Small/medium companies
Large quantity of customers
Regionally based to reduce freight costs

Market Size $2.0M

Competitors Company Market Share
Marion Mixers 15%
Scott 15%
Kelly Duplex 15
Others 55%

Trends
Industry trend is growing
Market is interest rate and labor rate sensitive
Residential / commercial construction industries are end users
Tile usage in homes is going up
Box stores selling home improvement




32



RECYCLED PRODUCTS

Description Colored wood mulch, shredded plastic, ground glass, composting

Requirements Durability and dependability (AR liners, Chrome blades)
Typically continuous applications
Not high tech process, usually gravity fed
Often liquid additives

Customers Small/medium companies
Large quantity of customers
Regionally based to reduce freight costs

Market Size $3.0M

Competitors Company Market Share
Marion Mixers 70%
Scott 5%
Kelly Duplex 5%
Amerimulch 10%
Others 10%

Trends Industry trend is growing
Market is interest rate and labor rate sensitive
Residential / commercial construction industries are end users
Tile usage in homes is going up
Box stores selling home improvement




33

MARCOMM (Marketing Communications)
Brochure and Cut Sheet samples

Marion Mixers Brochure (Front, Back and Inside 1/3 pg)



Marion Mixers Brochure (Inside tri-fold)




34


Marion Mixers (Component Cut Sheets) Troughs, Accessories, Agitators, Covers & Inlets,
Discharge Valves, Power Drive Trains, Main Shaft Seals


33

36

37

38

39

40







41

Lowe Sanitary Equipment Brochure (Cover)







42

Lowe Sanitary Equipment (Front, Back and Inside 1/3 pg)

Marion Mixers Brochure (Inside tri-fold)





43

FPPC Farm Pilot Project Coordination - Brochure (front, back and inside pages)