Charlene WheelessJuly 22, 2008

GPS OCXCommunications Update

GPS OCX Communications ReviewApril 2007 – June 2008

Statement of Objectives and Results

• The communications goal was to launch a comprehensive marketing communications campaign to promote Raytheon as an industry leader in developing GPS control systems for both civil sector and government agencies.

Audience

• The primary audience consists of the Air Force SMC, The Office of the Secretary of Defense, the DoD acquisition community, and Congress

Description

Scope of Work

We conducted several interviews and group meetings with the program team of engineers and subject matter experts to identify the discriminators that could position Raytheon as a thought leader in the area of navigation and ground control. We then created a three-phase approach by developing messages that could easily adapt as the program evolved and transformed from down-select to prototype.

Research

Competitive Analysis

In order to position Raytheon as the clear choice to provide high availability precision satellite ground command and control systems, we engaged in a rigorous discovery process using both primary and secondary vehicles.– Conducted several interviews with engineers and business development

– Developed and outreach plan that included a list of key media outlets to build the PR initiatives for the campaign

• Researched internet

– Networked with the acquisition community and public affairs office to understand media processes.

• Reviewed customer briefings to identify key players and understand their roles within their organization.

– Identified speaking opportunities and key sponsorship programs to support the overall communications strategy.

• Worked with other Raytheon businesses to leverage knowledge of conference opportunities

Planning

Communications developed four strong message platforms that needed to be carried throughout the campaign.

1. Time Certain delivery – Phase 1

2. The importance of separating the ground from the space – Phases 1&2

3. We provide the best solution that enables net-centric navigation to the warfighter – Phase 3

4. The experience and talent behind the Raytheon solution would provide the lowest risk option for the customer – All Phases

Communications Strategy

Phase 1

The first phase of the program was focused on an aggressive media strategy to build industry awareness about the Raytheon value proposition with the primary audience.

Phase 2

The second phase of the plan was designed to position Raytheon as THE thought leader in ground control technologies and space navigation. The messaging was dedicated to educate and influence industry players, general media, and Congress on the importance of ground technology.

Phase 3 (current)

After the down-select, the messaging platform transitioned to a “keep it sold” strategy that included a customer advocacy campaign.

Future messaging will migrate to a more broad message reiterating the importance of the civil-signal

Marketing and Advertising Plan

• Developed a pursuit-based advertising campaign to support each phase of the communications strategy. Placements were made in industry publications and specific base publications reaching the specific acquisition community.

(In phase 1, the competition stole our tag line in an effort to “out market” us. This backfired as it set us up for a stronger phase 2 message plan outlining our key differentiators as strengths pointing to our competitors weaknesses.)

• Coordinated efforts with the MarComm IPT to leverage resources across our enterprise, developing a comprehensive ad campaign, video, and online marketing focused on Raytheon’s strengths in Space.

• Secured participation in key trade shows – NSS, Strategic Space, ION GNSS, and the GPS Partnership Conference

• Created an “un-branded” GPS OCX brochure to advocated for the customer’s mission.

(This was unique, because it allowed us to collaborate with the customer for accuracy. This allowed us to build in their messages for support the program, further strengthening our relationship.)

Advertising – Phase 1 & 2

GPS-OCX – In 2007 we placed ads in the following publications, with ad commitments totaling $97,000

Space News, GPS World, Aviation Week and Space Technology, Shriever AFB – Satellite Flyer, Peterson AFB – Space Observer, LA AFB – Aerotech News, and Offut AFB

Advertising – Phase 3

GPS-OCX – In 2008 we have placed ads in the following publications, with ad commitments totaling $92,000

Space News, GPS World, GPS World E-Newletter, Aviation Week and Space Technology, LA AFB – Aerotech News, and Offut AFB

Marketing Best Practice Client Advocacy

GPS OCX Advocacy Brochure

Online Marketing

We created a robust website

Online Advertising – Phase 2 and 3

Air Force Magazine Online – co sponsored with RMS and SAS

• April reach – 90,675

– eNewsletter – 5,147 impressions with 358 click thrus

– Home Page Top Banner (flash advertisement) – 17,553 impressions 97 click thrus

– Interior Page Top Banner (flash advertisement) – 67,975 impressions 164 click thrus

Air Force Magazine Online – co sponsored with RMS and SAS

• May reach – 71,945

– eNewsletter – 2,466 impressions with 714 click thrus

– IIS Home Page Top Banner (flash ad GPS OCX) – 12,561 impressions 29 click thrus

– IIS Interior Page Top Banner (flash ad GPS OCX) – 46,216 impressions 49 click thrus

– Home Page Top Banner (flash advertisement) – 2,926 impressions 12 click thrus

– Interior Page Top Banner (flash advertisement) – 7,776 impressions 9 click thrus

Air Force Magazine Online – co sponsored with RMS and SAS

• June reach – 90,513

– eNewsletter – 2,482 impressions with 881 click thrus

– IIS Home Page Top Banner (flash ad GPS OCX) – 6,385 impressions 25 click thrus

– IIS Interior Page Top Banner (flash ad GPS OCX) – 23,160 impressions 56 click thrus

– SAS Home Page Top Banner (flash ad ORS 1) – 12,329 impressions 45 click thrus

– SAS Interior Page Top Banner (flash ad ORS 1) – 48,639 impressions 97 click thrus

GPS OCX coverage incorporated into the following online publications

Online Advertising – Phase 2 and 3 cont.

AIA Daily Lead – co sponsored the “Space” section with SAS

There was a wide mix of companies that clicked through to our articles. The combined mix included competitors, global aerospace companies, analyst firms, and smaller technology companies

• April reach – 25,724

– 9 highlights placed (these clicked thru to articles and releases on our site)

– 190 click thrus

• May reach – 25,814

– 9 highlights placed

– 278 click thrus

• June reach – 26,149

– 8 highlights placed

– 265 click thrus

Public and Media Relations

• Executive media training – 3 key executives were trained as spokespersons for the program.

• Designed an online press kit for GPS OCX that includes all press releases and recent articles.

• Immediately following the quiet period, we positioned Raytheon as a thought leader in ground control and navigation.

• Wrote and secured placemetns for a bylined article leading up to the down-select.

• Created a media Q&A for the press to easily identify key messages about GPS OCX.

• Created a GPS OCX fact sheet that highlighted Raytheon features and benefits. (This was particularly helpful in phase 2 as it was ultimately requested by many media outlets to ease their writing on the topic and to help them understand the difference between space and ground contracts).

• Proposal Submittal Press Release – announced that we are aggressively pursuing contract.

• Down-select Press Release – announced the award to develop the next generation ground control and navigation equipment for GPS.

• System Review Press Release – announced that we successfully completed th system engineering standard acceptance criteria.

• Integrated Program Review and SCAMPI Press Release – will be issued by the end of July 2008.

• Sponsorship of GovNet – conference presenting our customer and mission

Metrics and Results

OUR GOAL - Campaign Metrics

• Total earned media value of $500K

• 20+ articles published

• Measure key messages in media against competition

• Achieve a positive “Optimum Content Score”

• 3 positive published analyst briefings

• Web Trends – 500 click thrus to the GPS OCX website in a six month period

Metrics and Results

Campaign Results

• Total earned media value to date – $370K

• 76 articles published to date

• 2 Television segments

• 1 Radio segment

• Raytheon GPS OCX had 53% positive coverage taking the majority share of mentions over the competition

• Spokesperson Visibility – quotes for Raytheon significantly out weigh competitin 12 to 5

• Harvey Ad Study – the phase 2 ad in Aviation Week July 2007 garnered positive results. Reader recall was 76% and actual readers came in at 43%.

• Web Trends – 4,267 from March 2007 to June 2008

2007 Results

GPS OCX PR Metrics 2007

• Earned Media Value: $182,920

• Net Impressions: 40.2M

• 1 Analyst Briefing - Forrester

• GPS OCX 49 Total Articles

Share of GPS OCX Coverage Over Time

1 15 6

1

82

6

12 2

21

9

8

1

2 2

27

0

10

20

30

40

50

60

Jan2007

Feb Mar Apr May Aug Sep Nov

Men

tion

s

Raytheon

Northrop Grumman

Lockheed Martin

GPS OCX PR Metrics 2008 Q1

Q1 2008 GPS OCX Coverage

Earned Media Value: $117,080

Net Impressions: 1M

GPS OCX 12 Q1 Total Articles

Share of GPS OCX Coverage - Q1 2008

Raytheon12

48%

Boeing3

12%

Northrop Grumman9

36%

Lockheed Martin1

4%

Share of GPS OCX Coverage - Q2 2008

Raytheon15

41%

Northrop Grumman17

45%

Lockheed Martin5

14%

Q2 2008 GPS OCX Coverage

Earned Media Value: $70,000

Net Impressions: 500K

GPS OCX 15 Q2 Total Articles

GPS OCX PR Metrics 2008 Q2

2008 Q2 Pursuit PR

DATE SOURCENo GOES-R Raytheon hits in Q2

DATE SOURCE4/1/2008 Space Daily4/2/2008 UPI4/9/2008 GPS World 4/10/2008 GPS World 4/18/2008 Inside the Air Force4/29/2008 Defense Daily4/29/2008 Satellite Today5/2/2008 Inside the Air Force5/5/2008 Space News5/15/2008 Aviation Week5/16/2008 Inside the Air Force5/17/2008 Satellite Today

GPS OCX mentions – Q2 2008(15 month total = 77; 43% share)

GOES-R mentions – Q2 2008(15 month total = 10; 14% share)

4/8/2008 Boston.com4/8/2008 Washington Technology4/8/2008 Defense News4/8/2008 Associated Press4/8/2008 Boston Globe4/9/2008 Communications Daily4/9/2008 Satellite Today4/10/2008 Space Daily4/11/2008 UPI4/13/2008 Wireless News4/14/2008 Satellite Week4/18/2008 Inside the Air Force5/12/2008 The Washington Post5/28/2008 RF Globalnet5/28/2008 Wireless Design Online5/29/2008 Computer Business Review5/29/2008 Jane's Defence Weekly6/19/2008 satnews.com

GBS mentions – Q2 2008(15 month total = 58; 100% share)