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REQUEST FOR PROPOSAL

FOR

AFFILIATE MARKETING SERVICES

FOR

RHEEM NEW ZEALAND LIMITED

Date of Issuance: May 2014

RFP (Request for Proposals)

Advertisement and Notice of Invitation

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CONTENTS

I. Introduction ................................................................................................................................ 3

a. Pre-proposal Meetings ............................................................................................................ 3

b. Purpose of this Document ...................................................................................................... 3

II. Statement of Work...................................................................................................................... 4

A. CONTRACT / PARTNERSHIP INFORMATION ........................................................................................ 5

1. Introduction .................................................................................................................................... 5

2. Description of Services. ................................................................................................................... 6

3. Contract Value and Term ................................................................................................................ 7

4. RFP Administration ......................................................................................................................... 8

5. Selection Process and Criteria ......................................................................................................... 9

B. GENERAL REQUIREMENTS .................................................................................................................. 9

1. Contract Review. ............................................................................................................................. 9

2. Ownership and Supply of Commissioned Materials ..................................................................... 10

3. Proposal Preparation, Consultants Costs and Expenses. .............................................................. 10

4. Verification of Information ........................................................................................................... 10

C. INSTRUCTIONS FOR SUBMITTING PROPOSALS ................................................................................. 11

1. Proposal Submittal ........................................................................................................................ 11

D. GENERAL OVERVIEW OF RHEEM NEW ZEALAND LIMITED ............................................................... 13

1. Company Overview ....................................................................................................................... 13

E. CONTACT DETAILS - RHEEM NEW ZEALAND LIMITED ....................................................................... 16

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I. Introduction

Rheem New Zealand Limited has issued a Request for Proposals (the “RFP”), for marketing services.

The RFP document/s will be available to companies expressly invited to apply and can be

downloaded online at the following web address: www.rheem.co.nz/rfpmarketing

Responses in the form of printed proposals will be due at 5:00 p.m. Friday May 30th, 2014, delivered

to _Executive Assistant, Megan Norris_ at the following address:

Attn: Megan Norris

Rheem New Zealand Limited

475 Rosebank Rd

Avondale 1026

Auckland

Please advise via e-mail to within two working days of receiving this RFP document that you intend

to apply. If no communication is received within this timeframe, Rheem NZ will affirm that the offer

to apply has not been accepted. E-mail confirmation to be sent to megan.norris@rheem.co.nz.

a. Pre-proposal Meetings

An optional pre-proposal meeting can be arranged at Rheem NZ, 475 Rosebank Rd, Avondale,

Auckland. All parties interested in submitting a proposal are encouraged to contact John Bebbington,

NZ Sales and Marketing Manager, or Rob Macgregor, NZ Marketing Service Manager with any pre-

proposal enquiries or to book a meeting time. Contact details are available on the last page of this

document.

b. Purpose of this Document

The purpose of this document is to outline some of the most important elements that need to be

considered by an affiliate marketing services provider when putting together a Request for Proposal

for Rheem marketing strategy and production work. This document highlights various evaluation

criteria, based not only on price, but on the complete fit of the solution to Rheem NZ’s long and

short term business goals and objectives. Attention to the detail put forth in this document is a key

consideration in identifying a best-fit, long-term relationship with an affiliate marketing services

provider.

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II. Statement of Work

Rheem NZ Ltd seeks a professional, full-service marketing, branding, and communications firm

including but not limited to provide comprehensive, strategic and innovative communications and

marketing services on designated projects on an as-needed basis alongside partnering with internal

stakeholders as well as external organisations.

The Successful Proposer shall fully coordinate all services under the Agreement with key Rheem NZ

personnel including the General Manager, NZ Sales and Marketing Manager, Marketing Services

Manager, Product Managers and key stakeholders in the wider sales and customer service team on

an as-needed basis. Marketing initiatives include but are not limited to:

1. Provide marketing support, including strategic, creative and production, for projects related

to the promotion of the Rheem brand and product offering including digital and traditional

marketing initiatives. This will include developing and providing a variety of promotional,

publicity and advertising plans and informational materials consistent with specifications

provided by Rheem NZ.

2. Assist and coordinate with Rheem NZ sales and marketing department personnel and 3rd

party suppliers as assigned to provide approved marketing services (agencies include: Tin

Soldier, Design Print Partners, BDR Max, MHP Print, Master Plumbers Association, various

media outlets).

3. Provide recommendations for, and manage the booking of, above the line media (TV, radio,

billboard, print) to reflect and align with overall brand strategy and meet budget

considerations.

4. Provide recommendations and advice for General Manager and Sales & Marketing Manager

as requested.

As Rheem NZ’s best interests may appear, the senior management team reserves the right to waive

informalities in, and to reject any or all, proposals.

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A. CONTRACT / PARTNERSHIP INFORMATION

1. Introduction

This Request for Proposal (“RFP”) is issued to provide the selection process for marketing services.

Proposals will be accepted from a selection of no more than 4 marketing service providers based in

the Auckland region. Preference is given to proposers with experience working with manufacturing

and B2B entities, including knowledge of retail environments for the identified target groups.

Proposers submitting a response to the RFP will be asked at a minimum, to state their qualifications,

understanding/experience relating to the building industry and Rheem NZ and offer their

methodology for meeting the design criteria. The finalists from the RFP Phase will proceed to the

Interview Phase and be requested to participate in oral interviews and presentation to the Sales &

Marketing team.

Selection Schedule:

- RFP Released …………………………….…………………………. May 19

- Pre-Proposal Meetings (if necessary) ………………….. May 19 – 23

- Proposals Due …………………….…………..………………….. May 30

- Review/Notify Short Listed Firms/Interviews………. June 9 - 13

- Notice of Selection………………………………………..……... June 25

- Complete Contract Negotiations …………………….…… June 30

- Contract Execution.......……………………….……………….. July 1

- Annual Contract Review .......................................... June 30

Note: The total amount available under this RFP will not exceed Fifty Thousand Dollars

($50,000.00)(the “Maximum Contract Amount”) for a one year contract subject to the delivery of

key contractual obligations. This does not include costs of one-off marketing projects. Rheem New

Zealand Ltd reserves the right to negotiate all contract amounts.

The competitive selection process provided for under this RFP will focus on the qualifications and

prior history of performance on similar projects of each proposer and the proposer’s team members,

as appropriate, in accordance with the selection criteria set forth in this RFP. Moreover, weighted

consideration will be given to proposers with business structures and resources aligned to meeting

key RFP criteria. Thoughtful written responses to this RFP will enable Rheem New Zealand Ltd to

select the most qualified proposers.

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2. Description of Services.

The objective of this RFP is to procure marketing and communications support services, creation of

selected marketing materials, support services for various below-the-line marketing projects, and

other related marketing functions. Services to be performed include:

a) Provide marketing support, including strategic, creative and production, for projects related

to the promotion of the Rheem brand and product offering including digital and traditional

marketing initiatives. This will include developing and providing a variety of promotional,

publicity and advertising plans and informational materials consistent with specifications

provided by Rheem NZ.

b) Assist and coordinate with Rheem NZ sales and marketing department personnel and 3rd

party suppliers as assigned to provide approved marketing services (agencies include: Tin

Soldier, Design Print Partners, BDR Max, MHP Print, Master Plumbers Association, various

media outlets).

c) Design, develop, and deliver promotional materials for designated marketing initiatives and

events.

d) Provide advice and recommendations for nationwide marketing strategies, and improving

nationwide brand awareness across core target audiences.

e) Provide recommendations for, and manage the booking of, above the line media (TV, radio,

billboard, print) to reflect and align with overall brand strategy and meet budget

considerations.

f) Where necessary provide administrative marketing support in managing data entry,

Customer Relationship Management tools, updating website and product information,

coordinating sales promotions and/or event marketing.

g) Provide recommendations and advice for public relations initiatives as requested.

h) Provide recommendations for, and align marketing initiatives with, extracting greatest value

from the NZ marketing budget alongside setting, analysing and reviewing KPI’s. This includes

management and expenditure of co-operative marketing funds with key customers.

i) Provide recommendations for engaging Plumbing and Gasfitting trainees and apprentices for

lifetime customer retention.

j) Attend weekly Sales and Marketing meeting – Mondays from 9:45am to 11am

The successful proposer will provide qualified personnel dedicated to managing the requested

services. The successful proposer will have experienced staff and knowledgeable in communications

and marketing disciplines. The proposer will establish an Account Manager who will manage services

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provided under the resulting contract. Rheem NZ will not accept any substitutions of the Account

Manager or other key personnel except for substitutions required for reasons outside the control of

the successful proposer and upon written approval by Rheem NZ. The successful proposer will be

available on an on-going basis for any reasonable account requirements.

3. Contract Value and Term

The maximum contract value of each contract resulting from this RFP, including services performed

and reimbursement of costs and expenses incurred, if any, varies dependent upon the services

performed. All costs additional to RFP value must be quoted. Quotes will be accepted in writing by

Rheem NZ and a purchase order number issued prior to any work being undertaken and invoice

approved for payment.

There are two distinct contractual obligations which must be fulfilled; Strategic Marketing

Consultancy services and Marketing Production & Project Management services.

- Strategic Marketing Consultancy includes, and is not limited to, high level strategic

marketing/business development and growth initiatives to be presented and delivered to

the appropriate stakeholders within the Rheem NZ business; namely the leadership team

and/or product managers. The successful Proposer is required to set meetings with and seek

counsel from the appropriate people in the Rheem NZ leadership team where necessary. An

annual and comprehensive Rheem NZ Marketing Strategy document is a key deliverable. See

figure 1.

o Up to $20,000 is appropriated for delivery of an annual and comprehensive Rheem

NZ Marketing Strategy document

o The maximum contract value may not exceed $50,000

o The term of the overall agreement will be for one year

- Marketing Production & Project Management Services requires an efficient, creative and

detail oriented production house that aligns with and understands the Rheem business and

can work with internal stakeholders to deliver unique marketing offerings on time and

within budget. This includes, and is not limited to, sales promotions, trade and consumer

events, product launches, brochures, sales literature, direct marketing, digital marketing,

advertising, co-operative marketing projects and technical marketing. See figure 1.

o The maximum value of each contract/project is agreed upon in the context of the

overall marketing budget and market requirements at the time of development. If

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using a 3rd party fulfilment service, the successful Proposer is required to negotiate

with and seek best fit solutions for Rheem NZ. The term of the overall agreement

will be for one year.

Figure 1: Visual representation of the 2 key contractual elements and key stakeholders

4. RFP Administration

This RFP solicitation is issued by Rheem New Zealand Limited (Rheem). As Rheem’s best interests

may appear, the Sales and Marketing Manager reserves the right to terminate, modify or suspend

the process, reject any or all submittals, modify the terms and conditions of this selection process

and/or waive informalities in any submission. In conducting the process in a fair and equitable

manner, the Sales and Marketing Manager may appoint an RFP administrator who will serve as the

primary intermediary between the proposers and the members of the Selection Committee. All

inquiries and questions regarding this RFP shall be directed to Megan Norris in writing via email to

megan.norris@rheem.co.nz

EXAMPLES

Marketing Strategy Steve – General Manager

John – Sales & Marketing Manager Andrew Product Manager

Marketing Services Rob – Marketing Services Manager

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5. Selection Process and Criteria

a) General Evaluation Criteria

Proposals will be rated by the committee according to the following criteria, using a 50 point scale.

The two (2) Proposers rated the highest according to this criteria will be invited to an interview.

i. Qualifications and experience of the proposer (the person or entity legally

responsible for the provision of services) in the professional areas listed in this RFP.

Include the qualifications and experience of the proposer’s team leader and other

Key Personnel (including subcontractors, if any) in the professional areas listed in

this RFP and in similar projects. (10 points)

ii. Proposed management approach to project work and approach to provision of

services; including status updates, management of work in progress and

communicating deliverables/deadlines. Alongside demonstrated ability to complete

projects timely and efficiently; demonstrated ability to provide all of the necessary

coordination to complete projects (10 points)

iii. Demonstrated ability to provide creativity and innovation. Including demonstrated

ability in professional, creative design and ability to promote and develop unique

brand positioning tools. Alongside demonstrated ability to amalgamate modern

marketing tools (CRM, Web, Digital) with traditional ones. (10 points)

iv. Demonstrated ability to establish and maintain key stakeholder relationships.

Including coordination with various Rheem NZ departments, agencies and

customers. (10 points)

v. Proposed fees and expenses; including detailed method of invoicing alongside a

transparent explanation of commissions earned on media bookings (10 points)

B. GENERAL REQUIREMENTS

1. Contract Review.

The successful proposer will be required to execute a contract with Rheem NZ to commence

services. Proposers shall submit with their proposal a list of all questions, issues, or modifications

which the Proposer would like Rheem NZ to review and address, should they be selected as the top

ranked proposer.

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a) Rheem NZ will issue a final Agreement to the selected Proposer in the form of a one year

contract. Rheem NZ will review the list of issues raised by the selected Proposer, if any,

address each issue at its sole discretion and provide the selected Proposer with a final

executable Agreement for signature.

2. Ownership and Supply of Commissioned Materials

Rheem NZ is deemed to be first owner of copyright for all commissioned material in the course of

this contract. Pursuant to section 21(3) of the Copyright Act 1994, where -

a) a person commissions, and pays or agrees to pay for, the taking of a photograph or the

making of a computer program, painting, drawing, diagram, map, chart, plan, engraving,

model, sculpture, film, or sound recording; and

b) the work is made in pursuance of that commission,—

that person is the first owner of any copyright in the work.

Proposer’s are subsequently required to make available a cloud based sharefile service or similar

where all commissioned materials are made available. Where electronic files, including Adobe

Illustrator, Photoshop or similar, exceed file share capabilities a complete version on USB or CD is

required as a key deliverable of the contract/project.

3. Proposal Preparation, Consultants Costs and Expenses.

Rheem NZ is not liable for any costs or expenses arising out of preparation of a Consultant’s

proposal. If selected, a Proposer may not include any of these costs or expenses as part of its fee,

rates, or charges for performing work under the Contract.

4. Verification of Information

Rheem NZ will rely on the accuracy and completeness of all information provided in making its

selection. Attention to detail is deemed a critical component of the service offering, as such,

Proposer’s are urged to carefully review all information provided to ensure the clarity, accuracy, and

completeness of such information. As Rheem NZ deems necessary and appropriate, Rheem NZ

reserves the right to make any inquiries or other follow up required to verify the information

provided.

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C. INSTRUCTIONS FOR SUBMITTING PROPOSALS

Each respondent must comply with the submission requirements as outlined below. Submissions

that fail to comply with the requirements as specified may be deemed non-responsive and will result

in no further consideration of that company / respondent.

Proposals must be received no later than the date and time stated in Part A. Late submissions will be

rejected. Proposals must be sealed in an envelope and will not be read in public or made available

for public inspection.

1. Proposal Submittal

Proposers shall submit three (3) copies of their completed RFP response. All Proposals should be

limited to the agreed information set out in this RFP and be submitted in an A4 format. Pages are to

be numbered in sequence and font size must be at least 12pt font. Proposals shall not exceed twelve

(12) single-sided pages in length (double-side pages count as two pages). This page limit does not

include cover pages, divider sheets, resumes, disclosures of legal and administrative proceedings, or

required forms.

The proposal must include a table of contents and be organized as follows:

Part 1: Letter of Intent

Indicate unique features of the organization and the project team that makes the team uniquely

suited to provide comprehensive, strategic and innovative marketing and communications services

to Rheem NZ. Clearly indicate the single contact (principal-in-charge), mailing address, telephone

and facsimile numbers.

Part 2: Rates and Invoicing Procedure

A cost schedule of all hourly rates for each job classification, job title and unit costs must be

submitted for all services including strategic consultancy and hourly production rates. A full

explanation of where and how creative fees and commissions are applied, and how they are billed to

Rheem NZ is required, alongside management of and billing client changes in the proofing process.

All rates and fees will be fixed for the duration of the contract. Materials or services not listed but

that may be required or are expected to be used by the consultant in performing the tasks related to

the Agreement must be listed with the proposal. Job titles and classifications must be explained in

terms of degree of responsibility, minimum qualifications, and expected scope of duties for the

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purpose of defining proposed schedule of hourly rates. Prices for expendables must be expressed as

cost plus percentage mark-up. Overhead costs, including, without limitation, faxing, cellular phone

air time, and computer processing time, must be borne exclusively by the consultant as a cost of

doing business.

An example/s of an itemised invoice is recommended as an addendum/a to the RFP document.

Part 3: Key Personnel/Company Structure

Provide detail of what services are managed ‘in-house’ and what is outsourced to a third party.

Identify the individuals from within your organisation and primary service providers who will be

involved in the contract and their responsibilities such as designers, IT specialists etc. Provide brief

biographical data of the primary participant(s), including Account Manager. Further, provide a

separate list of key personnel setting forth the name of such persons and corresponding title and

third party service providers where necessary e.g. print, media, and digital.

Part 4: Organization and Management of Services

a) Explain how a project is processed from concept to delivery to client. Describe the

management approach to ensure the services will be provided in a thorough, effective, and

timely manner. Include information regarding:

- Philosophy, approach and identification of specific issues, problems and

opportunities. (Specific solutions to project deliverables are not desired as

statements of philosophy or direction).

- Management approach to ensure effective coordination with various Rheem NZ

agencies and other entities / stakeholders involved in the wider marketing functions.

b) Indicate the approach to helping Rheem NZ maximize value from the overall marketing

budget and how Rheem NZ can establish cost-effective above the line brand strategies.

c) Identify any software that may be proposed for use on this contract and methods for

managing deliverables on-time and within budget.

d) Identify processes in meeting deadlines and managing urgent client requests.

Part 5: Summary of Demonstrated Experience

Describe the firm’s projects and experience during the last five years that is similar to the work

described in the Scope of Work or that the Proposer believes would be relevant in evaluating the

firm’s capabilities to perform the outlined work, including but not limited to:

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- Contracts involving similar work performed by the firm and a list of personnel who

worked under these contracts and will be performing the work covered by this RFP.

- Any extraordinary projects or problems or both encountered during performance of

such contracts. Describe the complexities and innovative approaches used to solve

such problems.

- Financial information to demonstrate the financial stability of the firm to

successfully provide uninterrupted service for one year. Also, include all information

and circumstances regarding any legal dispute resulting from services provided by

the proposer for which settlements have been made.

- References. Include appropriate references, a contact name, address, and telephone

number. These references should be able to substantiate the proposer’s ability to

perform the work required.

D. GENERAL OVERVIEW OF RHEEM NEW ZEALAND LIMITED

This section sets out the background and company profile of Rheem New Zealand Limited for

consideration when putting forward Request for Proposals for marketing services. Further company

background and product information is available at www.rheem.co.nz

1. Company Overview

Rheem NZ is the leading manufacturer and distributor of water heater products for both domestic

and commercial use in New Zealand. Rheem NZ was first established in 1969 and has built its

reputation on a high quality, reliable product offering and makes and sells circa 50’000 products

annually. The distribution model is direct to over 700 resellers such as Plumbing and Building

merchants nationwide. While the majority of Rheem NZ products are installed in domestic

dwellings, licensed service providers (Plumbers and Gasfitters) are legally required for installation.

Overview of:

a) Mission Statement

We will be the leader in providing hot water and heating element solutions that consistently exceed

our customers’ expectations.

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b) Our Goals – basic financials & growth

Rheem NZ has a growth goal for 2017. There are specific strategic growth areas identified in the

business-unit strategy including protecting market share of core electric storage business and

targeted investment in the boiling water, gas and renewable categories. One of the core challenges

for the Sales & Marketing division is ensuring Rheem NZ improves market position and maximises

brand equity in a tough NZ market, particularly against major competitor Rinnai/Coopers. Moreover,

a key growth strategy is targeting export markets for locally manufactured, world class Boiling Water

products.

c) Products and Services overview

Rheem NZ prides itself on continually expanding the most comprehensive portfolio of water heating

and boiling water products offered by a single brand in the New Zealand market. Domestic products

include locally manufactured and imported mains pressure and low pressure electric storage water

heaters, gas storage and continuous flow water heaters as well as a range of solar and heat pump

products and high end residential boiling water solutions. Our commercial portfolio is equally broad

and encompasses locally manufactured Lazer and Zip above-bench boiling water units as well as a

vast array of commercial electric, gas, solar and heat pump hot water products. Aside from our low

pressure dairy water heater products, the majority of the Rheem NZ commercial product is

manufactured by our parent company, Rheem Australia.

d) Customer types and breakdown

Rheem NZ direct customers are made up of over 700 resellers such as Plumbing and Building

merchants nationwide. Plumbing merchants are the major stakeholders, with two key customers

making up a high percentage of Rheem NZ turnover.

e) Number of employees

Rheem NZ has over 120 full-time employees based at its manufacturing facility in the Rosebank

Business district. Organisational structure is made up largely by production staff across water

heating, boiling water and elements businesses as well as a large R&D and operations team in

conjunction with Finance, Sales & Marketing and Service departments. The Sales and Marketing

function comprises of a Sales and Marketing Manager responsible for the Sales team (5 FTE’s),

Customer Service department (4 FTE’s), Service department (4 FTE’s) and Marketing Services

department (1 FTE). There is also a Boiling Water Product Manager and two Commercial Managers.

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f) Competitors

The competitive landscape is broad for Rheem NZ and often category specific. Rheem NZ faces ever

increasing competitive pressure from both traditional rivals in electric storage water heating through

to disruptive low-cost imports and niche market players. Major competitor Rinnai has recently

acquired HJ Coopers and is now competitive across both gas and electric storage offerings. Peter

Cocks Ltd in the South Island is a major competitor in low and mains pressure storage often applying

low price competitive positioning strategies in key product ranges. Other notable competitors

include Bosch (Gas Continuous Flow), Triumph (Electric Storage) Dux (Electric Storage), Zenith

(Boiling water) and Parex (Boiling Water & Renewables).

g) Brand Positioning / Core Values

The Rheem brand is one of the most familiar and readily identifiable hot water brands in New

Zealand and Australia. The brand has been displayed on literally millions of water heaters and boiling

water products manufactured by Rheem NZ over the past seven decades and offers our customers

and homeowners a proven standard of quality and reliability. The Rheem logo, brand integrity and

reputation are integral and incredibly valuable assets to the overall Rheem NZ business. The Rheem

logo and other trademarks are available for use by major resellers, plumbing merchants, building

suppliers, energy utilities, appliance retailers, hardware outlets and hot water specialists provided

approval has been received from the Rheem NZ Marketing department.

Core values for Rheem NZ employees and affiliate service providers include Respect, Enthusiasm,

Commitment, Integrity, Pride and Excellence.

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E. CONTACT DETAILS - RHEEM NEW ZEALAND LIMITED

Rheem NZ Freephone: 0800 657 336

Website: www.rheem.co.nz

Key Contacts

- Megan Norris – Executive Assistant megan.norris@rheem.co.nz

- John Bebbington – Sales and Marketing Manager john.bebbington@rheem.co.nz

- Robert Macgregor – Marketing Services Manager robert.macgregor@rheem.co.nz

- Steve Bullock – General Manager steve.bullock@rheem.co.nz

Physical Mailing Address

Rheem New Zealand Limited

475 Rosebank Rd

Avondale

Auckland 1026

Postal Address

Rheem New Zealand Limited

PO Box 19011

Avondale

Auckland 1746