BSBMKG501B
Identify and evaluate marketing opportunities
Assessment Task 1
Individual project and presentation

Section
Background – about the company or business
About Cape:
Cape Scaffolding, provides a range of non mechanical industrial services including access systems, insulation, painting, coatings, blasting, industrial cleaning, scaffolding, training and assessment to both industrial plant operators and major international engineering and construction companies.
As a single source provider, Cape is able to provide a range of specialist multi-disciplinary services specifically tailored to meet the needs of the client providing the most intelligent and cost efficient solutions for their customers’ non-mechanical implant maintenance and capital needs.
Cape's approach to business is based on an understanding that today's industry leaders demand safer, more intelligent and resourceful answers to solving their challenges and those strong customer relationships are built on confidence and trust.
Focus for the year ahead will be: Realising the very significant organic growth opportunities in our chosen markets Exploiting the strengthening bid scaffolding with further bolt-on acquisitions; and Building on the value of the Cape Australian brand
Trading momentum has continued into the new year and expect: Continued organic revenue growth in 2012 supported by growth in order book Although anticipated that operating margin will reduce we expect strong cash generation with asset replacement ratio of broadly 100%
Commitment
Cape people are committed individuals, who approach everything from routine procedures to strategic challenges with intelligence and a positive attitude. They are dedicated to meeting the needs of their clients and delivering their assurance of safety, reliability and intelligence.
By continually developing the capability of their international workforce, they can continue enhancing Cape's reputation for world-class service delivery.
Cape Vision
To conduct their business in a fair and professional manner in full compliance with all relevant legislation with the countries they operate.
Cape Belief
Their success is based on a reputation as an ethical company
They take their responsibilities to their employees, customers and other stakeholders seriously and strive to work to the highest standards.
Market Analysis
Market Background: Scaffolding - Providing expertise, resources and an emphasis on safety, to support large secure industrial assets internationally in several sectors, including shipbuilding, defence, steelworks and commercial construction. Oil and gas onshore - Building strong, lasting relationships with national and international companies in the downstream oil and gas sector, and deploying large resources of qualified personnel and appropriate equipment to work to site-specific operating procedures, often in hazardous environments. Oil and gas offshore - Providing a wide range of services to some of the world’s biggest oil and gas companies, as well as to smaller, independent operators, our multi-disciplinary activities focus on the fabric maintenance of later cycle production assets. Power generation - Offering exceptional experience and expertise in the power generation sector, as well as an ability to deliver a rapid emergency response to repairs and plant defects, to support the management of clients' power generation assets. Minerals and mining - Providing key maintenance services to help reduce operational costs and eradicate waste, while enhancing efficiency, productivity and safety. Chemicals - Providing a wide range of multi-disciplinary services, including access and insulation, to the construction and maintenance of major chemical, petrochemical and polymer plants.
Market Size:
Financial summary | | | Growth | | | FY 2011 | FY 2010 | AER | Revenue | $722.5m | $650.1m | +11.1% | Adjusted Profit before tax | $69.4m | $69.1m | +0.4% | Adjusted operating margin | 10.9% | 12.0% | -110 bps | Profit after tax | $49.7m | $52.6m | -5.5% | Basic earnings per share | 40.2p | 42.6p | -5.6% | Adjusted diluted earnings per share | 43.8p | 42.6p | +2.8% | Dividend for the year | 14.0p | 12.0p | 16.70% |
AER – Actual exchange rates; CER – Constant 2009 exchange rates
Market Growth:

Record revenues with strongest growth since 2007 – up 21.5% in H2 from pick-up in project work in key markets Adjusted Profit Before Tax of $69.4m (2010: $69.1m) and adjusted diluted earnings per share of 43.8p (2010: 42.6p) which includes impact of one-off charges of $5.5m Proposed final dividend of 9.5p per share (2010: 8.0p) giving a 16.7% increase in full year dividend to 14.0p (payout ratio of 32.0%), reflecting the Board’s confidence in the Group’s prospects Working Capital outflow of $43.1m, driven by record activity levels in Q4 and timing of investments and receipts on four major projects Firm order book increased by 9.7% to c $940m with over 68% (2010: 63%) of consensus Full Year 2012 revenues secured As expected, momentum is building in a number of key regions and projects indicating that Cape is entering a sustained period of demand growth for its services Target Markets:
These results demonstrate the strength and quality of Cape’s business and its growth prospects. The Group is targeting markets with strong fundamental growth drivers and has made significant investments in both hard assets and people in 2011 to ensure they are able to resource these opportunities.
Their cash flow generation allowed them to invest in their business, while maintaining a strong balance sheet. Cape are recommending a 16.7% increase in the full year dividend, reflecting the Board’s confidence in the prospects for Cape. Trading momentum has continued into the new year with excellent visibility and the Board is confident that Cape is well-positioned for continued growth.
Identify and evaluate marketing opportunity:
The new marketing opportunity is a product to the company that will benefit the company now and in the future. This new product can be sold from the company to other companies or distributors of scaffolding, benefiting Cape Scaffolding with a high profit margin. Below is an outline of the new product:
E C O N O M Y Plettac Perfect Contur Scaffolding has a life expectancy of 25 years. The connections on the horizontals are welded to the tube. Wedges can easily be replaced should the become bent or damaged. Standards are designed with the most convenient length in mind making them very comfortable for storage and transport. All this means that your investment in Plettac Perfect Contur System Scaffolds will pay dividends for years to come.
Compare this with competitors' scaffold material: Tube will be cut down to suit until you have far too many short pieces of scaffold tube that you can't properly utilise. Scaffold fittings will be dropped by mistake, lost in soil or sand on the construction site or simply misplaced. Scaffold boards will be cut to suit and can be thrown away once the job for which they have been cut is complete.
The net result is that there will be an additional cost to replace approximately 15 to 20% of materials every year due to wastage. These savings alone would pay for the initial cost over a 3 to 4 year period.
Once a project is complete and after inspection you will find with Plettac Perfect Contur Scaffolding that it can be reassigned to the next project with little or no maintenance. This is achieved by Pletac Contur Scaffolding being manufactured to standard components and standard sizes. Being a modular system there is no need to cut tubes etc. as is required by competitors' products, therefore it is relatively easy to reassign to a new project. This further reduces project costs.
E F F I C I E N C Y It is generally accepted that in the time it takes to build a simple tower out of conventional scaffold, an experienced team will build three towers of similar design using Plettac scaffolding.
This general equation can be applied to most types of scaffold, whether they are independents or towers. For more complicated designs the benefits are more impressive. A simple cantilever can be assembled with system scaffold from within the scaffold and behind guard rails in a matter of minutes safely and effectively and with total confidence in the capacity of the structure.
Compare this with competitor scaffolding where cantilevers must be built using 90 couplets (which have a lower load capacity than rigid couplets) and very often from outside the safety area of the scaffold. The benefits of the erection speed are particularly clear when you have more than one trade working from the scaffold. Access to various areas of the job site will be different depending on the work that needs to be carried out.
A system which allows a scaffold not only to be erected quickly but also to be quickly adapted for individual trades means less downtime, and faster hand over time which translates to project cost reductions.
(Please view attached power point for presentation of marketing opportunity)
Identify changes to current operations:
The choice of scaffolding used, can seriously effect expectancy and efficiency of the finished installation.
The tradespeople who will be building the installation will work better if they have confidence in the structure they are being asked to work from. An unstable or unsafe structure will have a negative effect on the quality of the work being carried out from the scaffold.
Tradespeople will not want to spend any more time than absolutely necessary on a scaffold they are unsure of. Work will be done less carefully than would be the case on a solid structure. If the work on the construction of the plant is not carried out correctly, it could lead to failure of vital components. Once the plant is in service, downtime costs not only money, but can also hamper your chances of securing orders for similar projects in the future.
A safe and properly erected scaffold enables all trades to work with confidence and to deliver quality results.
Occupational Health and Safety (Prevention of Falls) Regulations 2003
Anti Discrimination Policy
Cape is responsible for setting standards and values to apply throughout the organisation at every level. Safe sound environment belongs to and should be enjoyed by everyone, equally. Our commitment is to confront and eliminate discrimination or any other conduct that could be deemed as unacceptable whether by reason of sex, sexual orientation, race, nationality, ethnic origin, colour, religion or disability.
Equality of opportunity at Cape means that in all our activities we will not discriminate or in any way treat anyone less favourably, on grounds of sex, sexual orientation, race, nationality, ethnic origin, colour, religion or disability.
This includes: The advertisement for volunteers. The selection of candidates for volunteers. Courses. External coaching and education activities and awards. Cape development activities. Selection for team workers. Appointments to honorary positions. Cape will not tolerate racist, sectarian, sexual or bigoted harassment or other discriminatory behaviour, whether physical or verbal, and will work to ensure that such behaviour is met with appropriate action in whatever context it occurs. Cape is committed to the development of the programme of ongoing training and awareness raising events and activities, in order to promote the eradication of discrimination within its own organisation, and within the organisation as a whole. Cape gives a commitment to ensure that the organisation is open to all and the team selection policy will be the ability and character of the individual and the collective balance of the team.

POWER POINT PRESENTATION
Plettac Perfect Contur Scaffolding
E C O N O M Y Plettac Perfect Contur Scaffolding has a life expectancy of 25 years. The connections on the horizontals are welded to the tube. Wedges can easily be replaced should the become bent or damaged. Standards are designed with the most convenient length in mind making them very comfortable for storage and transport. All this means that your investment in Plettac Perfect Contur System Scaffolds will pay dividends for years to come.

Compare this with competitors' scaffold material: Tube will be cut down to suit until you have far too many short pieces of scaffold tube that you can't properly utilise. Scaffold fittings will be dropped by mistake, lost in soil or sand on the construction site or simply misplaced. Scaffold boards will be cut to suit and can be thrown away once the job for which they have been cut is complete.

The net result is that there will be an additional cost to replace approximately 15 to 20% of materials every year due to wastage. These savings alone would pay for the initial cost over a 3 to 4 year period.
Once a project is complete and after inspection you will find with Plettac Perfect Contur Scaffolding that it can be reassigned to the next project with little or no maintenance. This is achieved by Pletac Contur Scaffolding being manufactured to standard components and standard sizes. Being a modular system there is no need to cut tubes etc. as is required by competitors' products, therefore it is relatively easy to reassign to a new project. This further reduces project costs.
E F F I C I E N C Y It is generally accepted that in the time it takes to build a simple tower out of conventional scaffold, an experienced team will build three towers of similar design using Plettac scaffolding.
This general equation can be applied to most types of scaffold, whether they are independents or towers. For more complicated designs the benefits are more impressive. A simple cantilever can be assembled with system scaffold from within the scaffold and behind guard rails in a matter of minutes safely and effectively and with total confidence in the capacity of the structure.

Compare this with competitor scaffolding where cantilevers must be built using 90 couplets (which have a lower load capacity than rigid couplets) and very often from outside the safety area of the scaffold. The benefits of the erection speed are particularly clear when you have more than one trade working from the scaffold. Access to various areas of the job site will be different depending on the work that needs to be carried out.
A system which allows a scaffold not only to be erected quickly but also to be quickly adapted for individual trades means less downtime, and faster hand over time which translates to project cost reductions.

SAFETY
If you think quality is expensive, consider the cost of failure.
The Plettac Contur System is the safest modular system on the market today and carries ISO9001 in Europe and passed by Australian Standards and the design description WAS18746.
Scaffolders can hook up to a rosette at 50cm intervals along the height of the standard, wedge and rosette connection is immediately secure as soon as the wedge is positioned through the rosette. There are no 'live' connections waiting for a cup to lock the ledgers in.
Diagonals allow canterlivers to be built from inside the safe area of a scaffold, ie. behind a guard rail. Components are manufactured from uniform materials, 48.3 tube with 3.2mm wall thickness and increased tensile and yield strengths. The very strict quality controls at the manufacturing centre in Australia ensures that the engineering data is reliable.