Marketing and Business Development Strategy Presentation

1. Marketing and Business DevelopmentStrategy Presentation CHAPTER DIVISION MEETING Debbie Dietz Executive Director Marketing and Business Development September 19, 2005

2. Current State KEY LEARNINGS FROM OUR DATA Injury Data SNAP Surveys Employee Perception Surveys Market Assessment for Strategic Growth

3. INJURY DATA

4. Injury Data • Where the nation is today (from 1992) • Workplace death rate down 24% • Highway death rate down 15% • Home and Community death rate up 11%

5. Injury Data • Unintentional injuries are the 5th leading cause of death in the U.S. following heart disease, cancer, stroke and respiratory disease • Unintentional injuries cost the nation $607 Billion in 2003 – or $ 5,700 per household • The cost of injuries, $ 607 Billion, is equivalent to 57 cents of every dollar spent on food in the U.S.

6. Injury Data • The cost of work injuries, $156 Billion, exceeds the combined profits of the top 25 Fortune 500 companies • Falls are the leading cause of non-fatal injuries in the U.S. – nearly 8 million people seek medical attention for a fall each year • The Construction Industry has the largest share of fatal work injuries – falls are the leading cause of death

7. Injury Data • Unintentional Injury/Deaths at work - by Industry • Mining – 22.3 • Agriculture – 20.9 • Construction – 11.4 • Transportation and Utilities – 10.0 2003 Deaths per 100,000 workers/Injury Facts

8. Injury Data • 45 states currently have GDL laws for novice teen drivers • The most common type of driver error in fatal and injury crashes is speeding • Almost 1,200 deaths and 52,000 nonfatal injuries occurred in highway work zones in 2002 • Large trucks account for 8.7% of all vehicles involved in fatal crashes • 156 people were killed in crashes involving emergency vehicles in 2002

9. Injury Data • About 44% of all injuries happen in or around the home • Falls, poisonings, choking on food and drowning are the four leading causes of unintentional injuries/deaths in the home and community • More than 9 times as many workers are killed accidentally off the job than on the job • Stairs or steps are associated with more than one million emergency department visits each year

10. SNAP SURVEYS

11. SNAP Surveys • From 2 surveys last year to over 30 surveys this year: • Key Surveys: • Occupational Safety and Health • Corporate Wellness • Ergonomics in other industries • Teen Driving • Division Surveys

12. SNAP Surveys • Occupational Safety and Health Survey • Surveyed: NSC Members, Non-Members/Customers; Chapter Network and Board of Delegates • Key Learnings: • The biggest issues our customers/members face are Occupational Safety and Health, OSHA Compliance, Safety Leadership and Workman’s Compensation • The greatest opportunity for growth is with classroom and packaged training • Preferred length of training classes is ½ day to one day-maximum

13. SNAP Surveys • Occupational Safety and Health Survey • (Key Learnings continued) • Top Trends – Government controls, increased responsibility for security/homeland security and business continuity; increased workman’s compensation and healthcare costs; producing ROI through safety, health and wellness programs • Top Opportunities – Showing upper management that safety affects the bottom line – respondents stated the greatest potential for revenue growth for NSC is in Occupational Safety and Health program areas • Top Challenges – Multi-ethnic languages, cost/benefit tools, benchmarking tools, shrinking training budgets

14. SNAP Surveys • Corporate Wellness Survey • Surveyed: NSC Customers, Safety & Health subscribers, outside list (Workforce Magazine/ HR), NSC home page visitors • Key Learnings: • Almost 60% of organizations offer some type of a Corporate Wellness Program to employees • Those that don’t just don’t have the time, money or resources • Over 50% of those organizations who do offer a Corporate Wellness Program to employees spend up to $50,000 annually • Employers realize the need to provide health education on emerging health issues and concerns including weight management, nutrition and diet, smoking cessation, blood pressure and cholesterol, stress management, depression, alcohol and drug abuse, and ergonomics

15. SNAP Surveys • Corporate Wellness Survey (continued) • Key Learnings: • Employers prefer to deliver wellness programs to employees through personal health profiles, audits, onsite and intranet training, workshops and seminars • For those organizations that do not currently offer a Corporate Wellness Program to employees, they need financial justification for even considering such a program • Increased employee moral and motivation = increased productivity • Informed employees = healthier employees = less time off = increased productivity • Offer a ‘menu’ of Wellness related products and training • Price ranges, format variations/choices, implementation options • Good, Better, Best Product Options

16. SNAP Surveys • Teen Driver Safety Survey • Surveyed: DDC Customers and prospects; NSC members > 100 employees, NSM opt-in customers • Key Learnings: • Nearly ¾ of respondents do not offer information to employees on this issue because they have never really considered this issue an employer’s priority • For those ¼ of respondents who do offer information, they do so because it emphasizes the company’s value it places on safety and it expands the organization’s offerings for off-the-job safety initiatives • Challenges to NSC: our biggest competitor is the free information provided on the internet, however, there is interest in offering on-site workshops with scheduling flexibility • Organizations prefer printed reference materials • Bilingual needs are not an overwhelming concern

17. Employee Perception Surveys

18. Employee Perception Surveys • The National Safety Council conducts many employee perception surveys for clients throughout the year • Conduct 10-12 client surveys per year • Survey results tell each client what their priorities are, i.e., which components of their safety programs are perceived by employees as operating or not operating well

19. Employee Perception Surveys • Key Learnings from NSC’s Employee Perception Surveys: • Survey results vary for each client and each location, so it is usually not possible to generalize results; however, one generalization we can make is in regard to a certain section of our OSCAR and BASIS surveys, in which employees indicate which components of a safety program they would recommend introducing or improving. Of the list of 40 components, these are the five that are recommended most often: • Annual recognition of individuals for accident-free performance • Supervisory recognition of employees for safe work practices • Design of the workplace to eliminate hazards • Acting on worker safety suggestions • Discipline for unsafe job performance

20. Market Assessment for Strategic Growth

21. Market Assessment for Strategic Growth • Methodology • Frank Lynn & Associates study specifically targeted respondents within the Utilities, Construction Contractors, Public Administration/Government, and Commercial/Private Fleet sectors • Based upon Injury Data • Based upon input from our Division/Volunteer partners • Based upon the perceived opportunity for growth

22. Market Assessment for Strategic Growth • Methodology (continued) • Study utilized web surveys, internal qualitative discussions, external qualitative discussions, government data analysis, NSC data analysis • Market Sizing – How it was done • FL&A used a combination of survey data and government employee counts to estimate the $$ size of each market segment • Consideration: sample heavily weighted towards NSC members • FL&A took the estimated total number of employees in the U.S. by industry, multiplied by the average annual safety and health training $ spend per employee, to estimate total U.S. market size

23. Market Assessment for Strategic Growth • Key Learnings • NSC Revenue Streams - an examination of NSC’s product purchasers list revealed that product sales are not necessarily a function of membership • 53% of product purchasers are members; 47% are former/non-members • Opportunity for growth within member companies appears to be significant • Across all product lines, NSC is chosen as the primary resource less than 50% of the time

24. Market Assessment for Strategic Growth • Key Learnings • Significant opportunity for growth also exists with non-member companies • Non-members are reasonably willing to purchase among NSC core product categories without being members • It appears to be difficult to get non-members to make NSC their primary resource, with the possible exception of DDC training

25. Market Assessment for Strategic Growth • Key Learnings • Perceptions of the NSC Brand • The NSC brand is perceived as solid among members and non-members; particular brand strengths include quality, brand name recognition, and value to the end user • Pricing Perceptions across product lines • Pricing doesn’t seem to be an issue • Respondents believe NSC pricing is competitive • Across product lines – by market segment • Across product lines – by primary provider • We compare favorably to major competitors

26. Market Assessment for Strategic Growth • Off-The-Job Community Safety • Respondents generally do not provide this type of training for their employees at their organization, nor do they find this set of issues to be urgent • Only 11% of respondents select this as their ‘most pressing safety and health issue’ • Nevertheless, this category has growth potential because it impacts multiple aspects of Safety and Health • Aging workforce issues • Employee Wellness • Multicultural Issues • Employee Productivity and Employer’s Bottom Lines

27. Market Assessment for Strategic Growth • Impact on our Chapter Network • Continue market sizing research per chapter territory • Examine ways to improve geographic coverage for training courses and chapters • Update materials more frequently and infuse with new ideas and concepts • Bring more industry-specific products to market (for our key market segments)

28. Market Assessment for Strategic Growth • Key Learnings • Construction Contractors • This industry represents a significant growth opportunity • Estimated market size: $ 723 Million • Average Safety and Health Training Budget spend per employee - $ 296 (Highest of all NSC market segments) – and respondents expect their budgets to increase substantially • Despite the Construction market’s high degree of fragmentation, which makes Construction firms less easy to target, survey respondents indicate that safety and health training is a priority

29. Market Assessment for Strategic Growth • Construction Contractors (continued) • This market segment has the highest number of fatal occupational injuries and illnesses primarily due to falls; some injuries and illnesses relate to strains, sprains and fractures • There is a tremendous opportunity for Wellness programs • Multi-cultural issues are critical • JJ Keller is favored for DDC and OSH training

30. Market Assessment forStrategic Growth • Key Learnings (continued) • Utilities Industry • Estimated total market size: $ 479 Million • Average Safety and Health Training Budget spend per employee: $239, and budgets are expected to increase next year • Utilities are a very ‘targetable’ group of employees • The top 100 electric utilities comprise 66% of employees within the electric sub-segment • The top 8 wired telecom carriers comprise 78% of employees within the wired carrier sub-segment

31. Market Assessment for Strategic Growth • Utilities Industry (continued) • The top 8 cable firms comprise 78% of employees within the Cable sub-segment • Utilities respondents appear to be ‘joiners’ of associations • Senior or aging workforce issues appear to be slightly more pressing within the Utilities segment than other industry segments • Employee Wellness makes the list of top three issues most likely to increase organizational safety and health training budgets

32. Market Assessment for Strategic Growth • Key Learnings • Commercial and Private Fleets • (Responses from private fleets yielded a sample of respondents across a broad range of industries-all other) • Estimated total market size: $ 395 Million • Average safety and health training budget spend per employee for commercial fleets: $248 • Health and training budgets are expected to increase next year • Multicultural issues are pressing • The top 3 issues most likely to cause an increase in safety and health training budgets are emergency preparedness, homeland security and ergonomics

33. Market Assessment for Strategic Growth • Commercial/Private Fleets (continued) • Fatal occupational injury incidences are prominent in: • Trucking and Warehousing • Injuries in private sector, wage/salary workers, government workers and self-employed workers • Electric Gas and Sanitary Services • Injuries to private sector, wage/salary workers, government workers and self-employed workers • Strains constituted 43% of all occupational injuries and illness involving days away from work

34. Market Assessment for Strategic Growth • Key Learnings • Public Employees • Estimated market size: $ 1.96 Billion. This is the largest of all the market segments • Average safety and health training budget spend per employee: $89 – the lowest in all NSC market segments. Cost is critical in this segment. • Safety/Health Training Budget expected to decrease next year • Fatal injuries are not prominent in this industry – primary source of fatal injuries are in the Vehicles sector • Employee Wellness is a pressing issue • This segment is costly to pursue

35. Market Assessment for Strategic Growth • Conclusions and Recommendations • We need to develop new offerings to address emerging areas so that we can participate in budget increases • Growth opportunity is substantial within our traditional offerings • Focus on growth through Members by striving to become their primary resource • Develop industry-specific programs

36. Market Assessment for Strategic Growth • Conclusions and Recommendations • Go after the ‘best’ market segments • Follow the data (Utilities, Construction, Fleet) • Where it’s easiest to target • With an integrated marketing and sales strategy • Test new multicultural and aging workforce offerings • Initiate proactive sales efforts vs. the competition • Consider other channel partners (distributors, resellers) to expand our go-to-market capabilities • Update our materials and programs more frequently – recommendation is every 2 years for key programs

37. Transitioning from Data and Key Learnings to Solutions and Results

38. Data-Driven Solutions • Data Overlays • Product Portfolio Review Process • Identified opportunities for ‘push’ marketing strategy of existing programs to new/focused markets • Identified opportunities for new product/program development (pull) • Next Steps: Quantify, Justify, Prioritize, Implement, and Measure!!

39. QUESTIONS ???

40. Fiscal Year 2005 Accomplishments Debbie Dietz Executive Director Marketing and Business Development September 19, 2005

41. Fiscal Year 2005 Marketing Accomplishments • Marketing Department Reorganization • Shifted from Marketing Communications/Promotion focus to a strategic, market planning focus • Allows Council to be “market driven” vs. “shared service”

42. Fiscal Year 2005Marketing Accomplishments

43. Fiscal Year 2005Marketing Accomplishments • Business Planning – Balanced Scorecard • Drafted FY05 Corporate Scorecard • Used learnings to draft FY2006 Balanced Scorecards • Almost all Council departments have Scorecard drafts • Market Research and Measurements • SNAP Survey Software – from 2 in 2004 to 30 in 2005 • ATLAS CRM Marketing Database Business Requirements • Research identified opportunities in Utilities, Construction, Public Employees and Fleet Management – validated by our Divisions

44. Fiscal Year 2005Marketing Accomplishments • Market/Business Planning • Provided leadership in the introduction and implementation of the Balanced Scorecard • Developed Corporate Scorecard • Assigned metrics • Updating metrics monthly • Joint planning for FY06 with Business Units – crafting Marketing Strategy along with Business Plans, and scorecard creation for new fiscal year • Mktg integration matrix; BU integration matrix; Draft of FY06 scorecard

45. Channel Marketing Online Sales Fiscal Year 2005 FY 2004 $436,555 FY 2005 $478,700 Monthly Average $39,891 9.6% increase over 2004 (does include chapter purchases)

46. Fiscal Year 2005 Marketing Accomplishments • Channel Marketing • National Safety Month – Web efforts responsible for: • Contributing to sales of 20,000 NSM ribbons • 700 free Membership News Alert subscriptions • 67,000 downloads of our posters • 300+ orders for Community Outreach Programs • Captured 2298 email addresses up from 213 in 2004 • Chapter referring the most NSM visitors – Minnesota 1,148 • Chapters – online training calendar, Chapter blogs • Productivity improvements using web templates and on-line forms that result in savings • National Preparedness Site - September

47. Fiscal Year 2005Marketing Accomplishments • Product Marketing • Alive at 25/Teen Guide to Driver Safety • Marketing efforts generated 652 leads for A@25, targeting for-profit driving schools, high schools, law enforcement, current training/sub agencies • PeakCare at Work • Marketing efforts generated 700+ leads from municipalities, utilities • Community Outreach Programs • Marketing efforts generated 1200+ requests for these types of programs

48. Fiscal Year 2005Marketing Accomplishments • Marketing Communications • Joint Planning with Business areas • Identification of cross-sell opportunities • Reduced promotional spend in favor of more targeted, and web-based, marketing • Curbing promotional spend is resulting in top line growth • We’ll PROVE it in 2006!

49. Fiscal Year 2006 Business Development and Marketing Strategy Debbie Dietz Executive Director September 19, 2005

50. A successful person is one who can lay a firm foundation with the bricks others have thrown at him.David Brinkley