2 EVX Digital Series Introduction Current Market Opportunity Digital Voice Only? Benefits to our Users EVX Overview Packing and Price Positioning Recap Q&AThe goal of this training is not only to cover the new radio but address how this product enhances your business.New radios are launched by manufacturers regularly. The VX-450 put enhanced features and quality within reach of our budget sensitive customers. We are alone in that space. We continue this with digital, providing products that stand alone in the market and that creates opportunity.In a post narrowbanding world, we need to collectively find new ways to grow and this is a great way.Imagine being able to talk to competitive accounts with a product they can’t offer.Imagine moving customers into a technology previously unavailable to them.Imagine giving your customers a high quality feature rich digital radio that fits their budget.That time is now.
3 Current Market1,149,386Current Commercial/ Mid Tier annual Analog Sales6,734,485The goal of this training is not only to cover the new radio but address how this product enhances your business.New radios are launched by manufacturers regularly. The VX-450 put enhanced features and quality within reach of our budget sensitive customers. We are alone in that space. We continue this with digital, providing products that stand alone in the market and that creates opportunity.In a post narrowbanding world, we need to collectively find new ways to grow and this is a great way.Imagine being able to talk to competitive accounts with a product they can’t offer.Imagine moving customers into a technology previously unavailable to them.Imagine giving your customers a high quality feature rich digital radio that fits their budget.That time is now.Current Commercial/ Mid Tier install baseThere are 0% digital radios represented in these numbers
4 Why Aren’t They Buying Digital Adversity to ChangeAnalog radios will always be aroundI’ve always used XYZ radio and I will keep purchasing that brandNot Within ReachPreviously proposed systems outside of their budgetGreat radio and features but cannot justify cost differenceDon’t Need DigitalAnalog gets the job doneI like the quality and benefits but they are not necessaryMigration Path Unknown/ MisunderstoodI can’t just replace all of my radios and make the change to digitalDigital and analog will not work togetherAdversity to ChangeRemember when digital radios first came to market? Customers had trouble understanding why they needed to change. Through training and demonstrations of the audio quality and benefits, the dealer channel created a need for this superior technology.Shortfalls early on included new technology to not only end users but dealers too. This learning curve has already taken place and will be easier this time around.Change happens when the cost of not changing becomes greater than the cost of change. How do we create the need for change?The two-way radio market will eventually be 100% digital. Change is inevitable.If you want digital radios today, change will have to take place since your current radio provider has no solution like the one I have for you.Cellular / Television are other examples.Not Within ReachMany of our customers have seen digital. Until today, it has not been priced within their budgets and forgotten about.New technology typically starts at higher price points and moves downward over time. We’ve seen this throughout our radio careers.Customers have been exposed to a professional tier digital radio solution and too expensive. Now it’s being offered in the commercial tier.Think computers way back when. Sure they were great and had value but no way I could afford one. Now just about anyone can have this technology.Don’t Need DigitalCustomers in this tier use predominantly PTT communications and analog works. Spending more money on digital seems unnecessary.You may not require digital today, but we can start putting Digital capable radios into your fleet for future migrationThe market is going to digital technology. This is the future, start planning now.The lack of need in this tier is driven by the lack of funding. If they really needed digital and it’s feature sets, it’s been available for 5 years…Migration Path Unknown/ MisunderstoodCustomers under the impression that a switch to digital communications means fork lifting the system.Or when approached, a customer will say “digital? Oh no, that’s way too expensive” A misunderstanding we will address.We can move a few radios at a time or all at once.With a mix mode repeater both analog and digital communications can take place seamlessly.
5 Opportunity Need Reach New Customers Post Narrowbanding Environment Users are asking for a digital solutionOut of reach for our Commercial tier customersReach New CustomersVertex Standard only manufacturer with this solutionProduct that allows you to start conversation previously unavailablePost Narrowbanding EnvironmentConcerns over market shrinkage in 2013Seeking strategy to continue growth despite reduced spendStand Alone in the MarketNo such product available in competitive portfoliosClear path for our channel to take market share and growOpportunity is created out of need.Our customers have heard of digital, however it has not been within reach for a number of reasons.The impact of narrowbanding in 2013 is yet to be seen and there are concerns.It’s important that we all take a look at ways we can continue to grow despite fluctuations in market spend.Vertex Standard is providing a tool that creates an opportunity to increase your visibility to users and increase your target base.Because we are the only ones with such a product our radio will give you the opportunity to reach customers that have historically been “locked” into another manufacturer.
6 Market DemandsHOW RADIOS CURRENTLY USED TODAYLargest opportunity exists to sell low-cost digital for voice-only use.By 2015, estimates indicate two-way radios will still be used predominantly forBasic voice by 43%;Advanced voice by 20%;Trunking by 20%Applications by 17%.Extensive studies have been done to understand how our customers use two-way radio.By % of our users will still operate two-way radio for voice communications only.While the market will change it’s important to note that the largest group of two-way radio users will still be voice.Current Usage
7 Messaging to Create Urgency: Convincing Users To Try Digital Good Enough is No Longer Good EnoughANALOG CHALLENGESDIGITAL CAPABILITIESCUSTOMER BENEFITSCALL QUALITYInconsistent performanceIntermittent transmissionMissed callsRandom chatterStaticInterferenceBackground noiseDistorted voiceOptimized voice transmitDigital applies error correction to eliminate noise and static to only deliver the intended voice message to be heard crisp and clearAMBE+2™ vocoder used for best-in-class clarity at various signal strengths.Reliable communicationsHear what is said from farther rangeHear and be heard – crisply and clearlyStop repeating messages – increase efficiencyKeep focused – eliminate distractionsReduce missed callsPRIVACYNo control over who hears what is said on a channel.Real privacy -- digital encoding and scrambling makes it harder for others to listen in on a frequency.Call management – digital radios each have a unique ID, enabling users to be able to select who they need to call without disturbing others.Control who hears youMaintain securityOnly hear what’s intended for you.Place a call to one person instead of entire groupKnow who calls youBATTERYPoor battery life performanceOperate up to 40% longer because of TDMA protocolRadio lasts throughout a long dayLess batteries required on the jobAble to use batteries longer with fewer charges requiredComfortable to wearInternal Use Only
8 The Digital Migration Existing Customer Base Future Customer Base Operate voice onlyLimited feature set usedBudget conscienceFuture Customer BaseOperate voice only in digitalLimited feature set used on digital platformChangeAdded digital benefitsMigration solution or slow and fast moversIncreased efficiencyEnhanced capabilityIf current digital offerings have not penetrated this market, the question is why.Our existing customer base is not going to make drastic changes in their two-way radio usage in the move to digital communications.The opportunity that exists is in the superior voice quality, increased efficiency, and enhanced battery life not available in analog.These benefits have not previously out-weighed the significant increase in cost to other manufacturers.Points:A customer who is not using trunking today with VX-354’s is not going to move to trunking due to digital.If an end-user had to have GPS, or advanced fleet management before, the solution is available in other lines. Why use VX-450’s today?A hotel in desparate need of HotSos has had that solution available for years and not purchased. Why use VX-350’s today?
9 EVX Series Digital Product Line Release 2.0May 2013Release 1.0 Jan/Feb 2013EVX-534EVX-539EVX-5400EVX-531EVX-5300We’ve taken all of the feature sets in the VX-450 series radio and added digital capability.Keep in mind the Vertex Standard 3 Year Warranty and IP57 rating on portables.
10 EVX Series : What Vertex Standard Delivers Digital Replacement for the Analog Commercial/Mid TierForm Factor and Feature Comparison: VX-450 seriesFeature Positioning: (Digital Benefits vs. Analog)Audio QualityInherent Digital PrivacyClearer Audio over entire RangeExtended Battery LifeDurability/RuggednessCall Management ControlCustomers buying analog radios now have a Digital solution that fits their budget.We’ve taken all of the feature sets in the VX-450 series radio and added digital capability.Keep in mind the Vertex Standard 3 Year Warranty and IP57 rating on portables.EVX Series
11 EVX Series Analog Features Emergency Lone Worker ARTS/ARTS II™ Voice Inversion Channel Announce I.S. Rating in Final DevelopmentAnalog SignalingMDC12002 Tone/5 Tone Stun/Kill/ReviveEmbedded VOXRadio CheckScanPriorityDual WatchTalk AroundFollow-me ScanWe’ve taken all of the feature sets in the VX-450 series radio and added digital capability.Keep in mind the Vertex Standard 3 Year Warranty and IP57 rating on portables.
12 EVX Series Digital Features EmergencyWith Voice to followEscalert ToneLone WorkerBasic & Enhanced PrivacyPrivate Call/Group CallInhibit Companding via CEVOX (Voice operated transmit)Digital SignalingRadio CheckRadio Enable/DisableRemote MonitorPTT-ID Encode (Decode – Disp only)ScanMixed Mode (both Digital/Analog)PriorityDual WatchTalk AroundWe’ve taken all of the feature sets in the VX-450 series radio and added digital capability.Keep in mind the Vertex Standard 3 Year Warranty and IP57 rating on portables.
13 EVX Series 2.0 Release EVX-534/539 and EVX-5400 512 Channels / Limited and Full Keypad ModelsDisplay – 8 Character AlphanumericText Message Encode/DecodePreprogrammed Canned / Direct Entry MessagesUnit-to-Unit or Repeater Mode TransmissionARTS II in DigitalGroup Coordination and Range ManagementVoice Inversion EncryptionUnit to Unit Private Calling via KeypadOption Board EnhancementsCreating Developers Source DocumentIntrinsically Safe Option – First Mid-Tier IS Models (EVX-351)
14 EVX Series Package Configurations Portable Standard ConfigurationPortable TransceiverFNB-V133LI 1380 Li-ion Battery (2300 mAh available)Universal ChargerAntenna (VX-450 Series Compatible)Std/Bulk Shipping, Optional Customer ProgrammingMobile Standard ConfigurationMobile TransceiverMH-67A8J MicrophoneOptional Customer ProgrammingAccessories Common with VX-450 & VX-4500/4600 Series
15 Target Analog Radio Models for Digital Conversion This chart represents the radio portfolio that we will penetrate with a digital offering.Kenwood, Icom, and Vertex Standard all have radios in the analog space represented.Vertex Standard is the only manufacturer that will offer a digital radio in this space.Our goal is to reach into competitive accounts with a product not available to the customer through Kenwood or Icom.Vertex Standard is only radio manufacturer with a Digital radio in this tier
16 Competitive Price Positioning Digital Motorola XPR-4550Kenwood NX-700/800Motorola XPR-4350Hytera MD-78XMotorola XPR-6550Kenwood NX-210Hytera PD-78XMotorola XPR-3500Hytera PD-70XKenwood NX-200/300Motorola XPR-3300$600+Features$500+$400+Price$350+No digital offering in this space$300+Vertex Standard EVX-5400Vertex Standard EVX-5300Vertex Standard EVX-539Vertex Standard EVX-534Vertex Standard EVX-531Digital PortablesDigital Mobiles
17 Competitive Price Positioning Analog Motorola PR400Vertex Standard EVX-539Motorola CP200Vertex Standard VX-459Vertex Standard EVX-534Vertex Standard VX-454Vertex Standard EVX-531Kenwood TK-2360/3360Icom F3031/F4031Kenwood TK-2312/3312Hytera TC-780Vertex Standard VX-451Motorola CP-185Vertex Standard VX-354Icom F011/F021Kenwood TK-2302/3302Vertex Standard VX-351Vertex Standard VX-231Hytera TC-600Hytera TC-500Motorola CM300Vertex Standard EVX-5400Motorola CM200Vertex Standard VX-4600Vertex Standard EVX-5300Vertex Standard VX-4500Kenwood TK-7360/8360Hytera TM-800Kenwood TK-7302/8302Vertex Standard VX-2200Vertex Standard VX-2100Kenwood TK-7102/8102$300+PriceFeatures$200+No digital offering in commercial/mid tier analog space$100+Analog PortablesAnalog Mobiles
18 RecapNeed Reach New Customers Post Narrowbanding Environment Stand Alone in the Market Adversity to Change Not Within Reach Don’t Need Digital Migration Path Unknown/ MisunderstoodNeed – There is a clear need for this product in this spaceReach New Customers – We can touch new customers previously unavailable to us.Post Narrowbanding Environment – Growth in market share key strategy in 2013Stand Alone in the Market – No one else has this product availableAdversity to Change – Customers may not want to change, but we can show them benefits to make change within budgetNot Within Reach – Right price product for users interested in digital who face economic challengesDon’t Need Digital – Analog gets the job done. Benefits at economical pricing will create the demandMigration Path Unknown/ Misunderstood – We have an opportunity to explain how it works and why users can make the change
19 Q&A Does EVX talk to TRBO? Are there plans to do SiteConnect? Can EVX Trunk?Will the repeater do Dynamic Mixmode?Is EVX built by VS or MSI?Are there demo units available?Why TDMA vs. FDMA digital?Does EVX talk to TRBO? – Yes. Both TRBO and EVX are build to DMR standards and will talk analog/digital conventionalAre there plans to do SiteConnect? – Yes. Future plans do include SiteConnect for the EVX series radios.Can EVX Trunk? No. EVX radios are not capable of trunking or Capacity PlusWill the repeater do Dynamic Mixmode? - Yes. In march of 2013 Dynamic Mix-mode will be available.Is EVX built by VS or MSI? - The EVX series radio was developed engineered and manufactured by VS in our factories.Are there demo units available? - Yes, a demo purchase program will be availableWhy TDMA vs. FDMA digital? – TDMA is the protocol for DMR standards and has been adopted by worldwide governing bodies. There are more TDMA radios in use than any other protocol. Kenwood has recently announced plans to build radios to DMR standards.
20 EVX PromotionBuy 6 get 1 FREE EVX-531 Feb. 21st to March 7th, 2013 Simple enough!
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