Annual Report Team E

INDUSTRY MAY - FIRM E ANNUAL REPORT PERIOD 0

11/04/2014 Markstrat by StratX 5.1.0.8 - Copyright © 2010 by StratX 1/58

COMPANY REPORT

FIRM EBased on scenario F6M2A0

PERIOD 0

Anil KulkarniMarkstrat - Oct 2014

21/10/2014 -->30/06/2015SP Jain Institute of Management & Research - India

India



COMPANY RESULTS

COMPANY SCORECARD

Unit Annual results Evolution since P0

Period 0

Market share

Total %$ 19.6%

Sonite market %$ 19.6%

Vodite market %$ -

Retail sales

Total K$ 79,143

Sonite market K$ 79,143

Vodite market K$ -

Contribution

Before marketing K$ 19,358

After marketing K$ 14,134

Net K$ 13,890

Cumulative net K$ 13,890

Shareholder value

Stock price index Base 1000 1,000

Current return on investment Ratio 2.54

Cumulative return on investment Ratio 2.54

COMPANY PERFORMANCE

Unit Total Sonite market Vodite market

Sales

Units sold U 151,138 151,138

Average retail price $ 524 524

Average selling price $ 336 336

Revenues K$ 50,825 50,825

Production

Units produced U 187,000 187,000

Cost of goods sold K$ -30,832 -30,832

Inventory holding cost K$ -635 -635

Inventory disposal loss K$ 0 0

Contribution before marketing K$ 19,358 19,358

Marketing

Advertising expenditures K$ -3,840 -3,840

Advertising research expenditures K$ -160 -160

Sales force K$ -1,224 -1,224

Contribution after marketing K$ 14,134 14,134

Other expenses

Market research studies K$ -245 -245 0

Research and development K$ 0 0 0

Interest paid K$ 0

Exceptional cost or profit K$ 0

Net contribution K$ 13,890

Next period budget K$ 7,150



BRAND RESULTS

CONTRIBUTION BY BRAND

Sonite Brands Unit Total SEMI SELF

Base R&D project PSEMI PSELF

Sales

Units sold U 151,138 106,928 44,210

Average retail price $ 524 514 546

Average selling price $ 336 332 348

Revenues K$ 50,825 35,449 15,376

Production

Units produced U 187,000 107,000 80,000

Current unit transfer cost $ - 197 221

Average unit transfer cost $ 204 197 221

Cost of goods sold K$ -30,832 -21,049 -9,783

Units in inventory U 35,862 72 35,790

Inventory holding cost K$ -635 -1 -634

Inventory disposal loss K$ 0 0 0

Contribution before marketing K$ 19,358 14,399 4,960

Marketing

Advertising expenditures K$ -3,840 -2,400 -1,440

Advertising research expenditures K$ -160 -100 -60

Sales force K$ -1,224 -612 -612

Contribution after marketing K$ 14,134 11,287 2,848

MARKET SHARES AND DISTRIBUTION COVERAGE

Sonite Brands Unit Total SEMI SELF

Market shares %U 15.0% 10.6% 4.4%

%$ 19.6% 13.6% 6.0%

Distribution coverage in %

Specialty stores (30,000 outlets) % 48.5% 46.1%

Depart. stores (6,750 outlets) % 39.3% 37.3%

Mass Merchandis. (10,000 outlets) % 19.4% 18.1%



RESEARCH & DEVELOPMENT RESULTS

SONITE R&D PROJECTS

Physical Characteristics Base Cost $ Allocated Budget K$

Name Weight Design Volume Max Freq Power Current Minimum Cumulative Req. for

(Kg) (Index) (Dm3) (KHz) (W) realistic completion

PSEMI 14 7 80 45 75 204 138 1,500 Avail. in P-1

PSELF 15 4 60 45 90 214 148 2,000 Avail. in P-1

(*) Projects identified in bold have been completed in this period.



CUMULATIVE RESULTS

CUMULATIVE BRAND RESULTS

Sales Production Marketing

Brand Units sold Retail sales Revenues Advertising Sales force

KU K$ K$ K$ K$ K$ K$ K$

SEMI 0 107 55,007 35,449 21,049 1 2,500 612 11,287

SELF 0 44 24,136 15,376 9,783 634 1,500 612 2,848

Total Sonite 151 79,143 50,825 30,832 635 4,000 1,224 14,134

Total Vodite 0 0 0 0 0 0 0 0

Total all markets 151 79,143 50,825 30,832 635 4,000 1,224 14,134

CUMULATIVE COMPANY PERFORMANCE

Unit Total Sonite market Vodite market

Sales

Units sold KU 151 151 0

Retail sales K$ 79,143 79,143 0

Revenues K$ 50,825 50,825 0

Production

Cost of goods sold K$ -30,832 -30,832 0

Inventory holding and disposal cost K$ -635 -635 0

Marketing

Total advertising expenditures K$ -4,000 -4,000 0

Sales force expenditures K$ -1,224 -1,224 0

Contribution after marketing K$ 14,134 14,134 0

Other expenses

Market research studies K$ -245 -245 0

Research and development K$ 0 0 0

Interest paid K$ 0

Exceptional cost or profit K$ 0

Net contribution K$ 13,890

Results since period

Cost of goods sold

Inventory costs

Contrib. after mktg.



DECISION SUMMARY

DECISION SUMMARY - BRAND MANAGEMENT

Sonite Brands SEMI SELF

Base R&D project PSEMI PSELF

Production planning KU 100 100

Inventory sold to trading company KU 0 0

Recommended retail price $ 520 550

Advertising budget K$ 2,400 1,440

Advertising research budget K$ 100 60

Buffs 30 25

Singles 10 20

Targeted segments in % Professionals 30 30

High earners 25 15

Others 5 10

Perceptual Objectives

Dimension 1 None None

Objective 1 - -

Dimension 2 None None

Objective 2 - -

DECISION SUMMARY - SALES FORCE MANAGEMENT

Distribution Channels Specialty stores Depart. stores Mass Merchandis.

Number of salespeople 25 25 10

Sales force effort allocation by brand (%)

SEMI 50 50 50

SELF 50 50 50

TOTAL 100 100 100

DECISION SUMMARY - MARKET RESEARCH STUDIES

Study Market covered by study

All markets Sonite Vodite

Industry benchmarking No - -

Consumer survey - Yes No

Consumer panel - Yes No

Distribution panel - Yes No

Semantic scales - No No

Multidimensional scaling - No No

Market forecast - Yes No

Competitive advertising - No No

Competitive sales force - No No

Advertising experiment - No No

Sales force experiment - No No

Conjoint analysis - No No

DECISION SUMMARY - LOAN AND BUDGET MODIFICATION

Corporate finance department

Increase in budget K$ 0

Decrease in budget K$ 0

Bank

Capital borrowed K$ 0

Duration in number of periods

Interest rate %



NEWSLETTER


PERIOD 0



India



STOCK MARKET AND KEY PERFORMANCE INDICATORS

STOCK MARKET

Firm Stock price index Market capitalization Net contribution (K$)

base 1000 K$ Period 0 Cumulative

A 1,000 252,106 12,450 12,450

E 1,000 281,265 13,890 13,890

I 1,000 270,384 13,352 13,352

O 1,000 276,287 13,644 13,644

U 1,000 276,842 13,671 13,671

Y 1,000 305,391 15,081 15,081

COMPANY KEY PERFORMANCE INDICATORS(period 0 values)

Unit A E I O U Y

Market share

Total %$ 11.9% 19.6% 12.2% 21.3% 16.4% 18.5%

Sonite market %$ 11.9% 19.6% 12.2% 21.3% 16.4% 18.5%

Vodite market %$ - - - - - -

Retail sales

Total K$ 47,838 79,143 49,252 85,987 66,293 74,530

Sonite market K$ 47,838 79,143 49,252 85,987 66,293 74,530

Vodite market K$ - - - - - -

Contribution

Before marketing K$ 17,918 19,358 18,821 19,113 19,140 20,550

After marketing K$ 12,694 14,134 13,597 13,889 13,916 15,326

Net K$ 12,450 13,890 13,352 13,644 13,671 15,081

Cumulative net K$ 12,450 13,890 13,352 13,644 13,671 15,081

Shareholder value

Stock price index Base 1000 1,000 1,000 1,000 1,000 1,000 1,000

Market capitalization K$ 252,106 281,265 270,384 276,287 276,842 305,391

Current return on investment Ratio 2.28 2.54 2.44 2.49 2.50 2.76

Cumulative return on investment Ratio 2.28 2.54 2.44 2.49 2.50 2.76



ECONOMIC VARIABLES AND COSTS

ECONOMIC VARIABLES

Unit Actual value Forecast value %change

Period 0 Period 1

GNP growth rates % 3.0% 3.0% 0.0%

Inflation rate % 2.0% 2.0% 0.0%

Production

Inventory holding cost per annum % transf. cost 8.0% 8.0% 0.0%

Loss incurred for inventory disposal % transf. cost 20.0% 20.0% 0.0%

Sales force

Salesperson operating cost $ 20,400 20,808 2.0%

Salesperson hiring and training cost $ 3,060 3,121 2.0%

Salesperson firing cost $ 5,100 5,202 2.0%

COST OF MARKET RESEARCH STUDIES NEXT PERIOD(all numbers in K$)

Study Market covered by study

All markets Sonite Vodite

Industry benchmarking 31

Consumer survey 62 42

Consumer panel 104 73

Distribution panel 62 52

Semantic scales 10 10

Multidimensional scaling 36 36

Market forecast 21 21

Competitive advertising 31 31

Competitive sales force 16 16

Advertising experiment 26 26

Sales force experiment 36 36

Conjoint analysis 36 36

Total market 31 440 379

Total if all studies ordered 850



INFORMATION ON SONITE MARKET

CHARACTERISTICS OF MARKETED SONITE BRANDS

Physical characteristics

Firm Brand New or Weight Design Volume Max Freq Power Base cost Retail price

Modified (Kg) (Index) (Dm3) (KHz) (W) ($) ($)

A SAMA No 15 4 55 10 10 71 260

SALT No 18 5 90 15 30 112 335

E SEMI No 14 7 80 45 75 204 520

SELF No 15 4 60 45 90 214 550

I SIRO No 20 3 90 5 12 51 210

SIBI No 19 5 75 30 30 102 330

O SOLD No 13 7 65 30 75 230 540

SONO No 16 3 95 48 88 184 400

U SUSI No 18 3 95 15 12 66 250

SULI No 12 6 30 40 80 194 500

Y SYGU No 11 9 55 25 30 143 340

SYCA No 10 8 25 35 45 189 550

INFORMATION ON SONITE MARKET - SALES AND MARKET SHARES

Firm Brand Volume sold Retail sales

Period -1 Period 0 Change Share Period -1 Period 0 Change Share

U U % %U K$ K$ % %$

A SAMA 106,848 122,375 14.5% 12.2% 26,897 30,805 14.5% 7.6%

SALT 45,801 51,678 12.8% 5.1% 15,096 17,033 12.8% 4.2%

E SEMI 92,986 106,928 15.0% 10.6% 47,835 55,007 15.0% 13.6%

SELF 40,849 44,210 8.2% 4.4% 22,300 24,136 8.2% 6.0%

I SIRO 72,206 82,482 14.2% 8.2% 14,666 16,753 14.2% 4.2%

SIBI 88,709 100,481 13.3% 10.0% 28,691 32,499 13.3% 8.1%

O SOLD 100,391 120,125 19.7% 11.9% 53,312 63,792 19.7% 15.8%

SONO 54,024 55,899 3.5% 5.6% 21,451 22,196 3.5% 5.5%

U SUSI 34,500 39,320 14.0% 3.9% 8,341 9,506 14.0% 2.4%

SULI 100,036 115,594 15.6% 11.5% 49,144 56,787 15.6% 14.1%

Y SYGU 68,820 77,790 13.0% 7.7% 23,052 26,057 13.0% 6.5%

SYCA 74,182 89,744 21.0% 8.9% 40,068 48,474 21.0% 12.0%

Total Sonite market 879,350 1,006,628 14.5% 100.0% 350,852 403,044 14.9% 100.0%



MARKET RESEARCH STUDIES


PERIOD 0



India



INDUSTRY BENCHMARKING

BENCHMARKING - ESTIMATED OVERALL PERFORMANCE

Unit A E I O U Y

Sales

Retail sales K$ 47,838 79,143 49,252 85,987 66,293 74,530

Revenues K$ 32,221 50,825 32,913 55,969 43,285 48,659

Production

Cost of goods sold K$ -13,909 -30,832 -13,942 -36,489 -23,922 -27,818

Inventory holding cost K$ -394 -635 -150 -367 -223 -292

Inventory disposal loss K$ 0 0 0 0 0 0

Contribution before marketing K$ 17,918 19,358 18,821 19,113 19,140 20,550

Marketing

Advertising expenditures K$ -3,840 -3,840 -3,840 -3,840 -3,840 -3,840

Advertising research expenditures K$ -160 -160 -160 -160 -160 -160

Sales force K$ -1,224 -1,224 -1,224 -1,224 -1,224 -1,224

Contribution after marketing K$ 12,694 14,134 13,597 13,889 13,916 15,326

Other expenses

Market research studies K$ -245 -245 -245 -245 -245 -245

Research and development K$ 0 0 0 0 0 0

Interest paid K$ 0 0 0 0 0 0

Exceptional cost or profit K$ 0 0 0 0 0 0

Net contribution K$ 12,450 13,890 13,352 13,644 13,671 15,081

Next period budget K$ 7,150 7,150 7,150 7,150 7,150 7,150

BENCHMARKING - ESTIMATED PERFORMANCE IN SONITE MARKET

Unit A E I O U Y

Sales

Retail sales K$ 47,838 79,143 49,252 85,987 66,293 74,530

Revenues K$ 32,221 50,825 32,913 55,969 43,285 48,659

Production

Cost of goods sold K$ -13,909 -30,832 -13,942 -36,489 -23,922 -27,818

Inventory holding cost K$ -394 -635 -150 -367 -223 -292


Contribution before marketing K$ 17,918 19,358 18,821 19,113 19,140 20,550

Marketing

Advertising expenditures K$ -3,840 -3,840 -3,840 -3,840 -3,840 -3,840

Advertising research expenditures K$ -160 -160 -160 -160 -160 -160

Sales force K$ -1,224 -1,224 -1,224 -1,224 -1,224 -1,224

Contribution after marketing K$ 12,694 14,134 13,597 13,889 13,916 15,326

BENCHMARKING - ESTIMATED PERFORMANCE IN VODITE MARKET

Unit A E I O U Y

Sales

Retail sales K$ 0 0 0 0 0 0

Revenues K$ 0 0 0 0 0 0

Production

Cost of goods sold K$ 0 0 0 0 0 0

Inventory holding cost K$ 0 0 0 0 0 0


Contribution before marketing K$ 0 0 0 0 0 0

Marketing

Advertising expenditures K$ 0 0 0 0 0 0

Advertising research expenditures K$ 0 0 0 0 0 0

Sales force K$ 0 0 0 0 0 0

Contribution after marketing K$ 0 0 0 0 0 0



CONSUMER SURVEY - SONITE MARKET

CONSUMER SURVEY - BRAND AWARENESS BY SEGMENT

Firm Brand Buffs Singles Pros HiEarners Others Total

A SAMA 46.1% 65.6% 31.0% 31.4% 62.3% 47.5%

SALT 57.6% 68.4% 50.9% 50.9% 33.4% 50.2%

E SEMI 59.3% 50.8% 60.1% 57.1% 30.7% 50.4%

SELF 53.5% 46.1% 54.9% 50.5% 27.3% 45.4%

I SIRO 47.6% 69.9% 35.2% 35.4% 71.2% 52.3%

SIBI 63.9% 78.1% 50.7% 50.7% 46.9% 56.5%

O SOLD 52.1% 46.6% 53.0% 57.6% 30.4% 46.8%

SONO 43.3% 43.2% 44.6% 37.3% 30.4% 39.1%

U SUSI 26.2% 34.9% 27.2% 27.0% 29.5% 28.6%

SULI 61.3% 58.9% 68.5% 66.7% 36.2% 56.7%

Y SYGU 58.9% 62.5% 47.1% 45.6% 40.6% 50.0%

SYCA 46.4% 51.4% 59.4% 58.3% 33.6% 48.3%

CONSUMER SURVEY - PURCHASE INTENTIONS


A SAMA 3.6% 9.0% 0.9% 0.5% 35.8% 12.0%

SALT 7.1% 13.1% 3.0% 2.1% 5.0% 5.7%

E SEMI 11.6% 3.4% 20.5% 14.7% 1.0% 9.8%

SELF 9.3% 2.3% 6.1% 3.6% 0.7% 4.4%

I SIRO 3.3% 6.4% 0.8% 0.5% 24.6% 8.5%

SIBI 11.2% 28.9% 3.4% 2.2% 10.6% 10.5%

O SOLD 8.8% 3.3% 18.9% 28.7% 1.0% 11.3%

SONO 15.9% 2.9% 4.5% 2.0% 1.0% 5.5%

U SUSI 2.1% 4.2% 0.7% 0.4% 12.2% 4.6%

SULI 13.2% 4.1% 24.4% 15.6% 1.2% 11.2%

Y SYGU 8.5% 18.6% 5.4% 3.6% 5.6% 7.7%

SYCA 5.4% 3.9% 11.4% 26.0% 1.3% 8.8%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

CONSUMER SURVEY - SHOPPING HABITS

Segment Specialty stores Depart. stores Mass Merchandis. Total

Buffs 70.0% 25.0% 5.0% 100.0%

Singles 40.0% 40.0% 20.0% 100.0%

Professionals 50.0% 30.0% 20.0% 100.0%

High earners 20.0% 50.0% 30.0% 100.0%

Others 20.0% 40.0% 40.0% 100.0%

Total 40.2% 36.3% 23.5% 100.0%



CONSUMER PANEL - SONITE MARKET

CONSUMER PANEL - MARKET SHARES BASED ON UNIT SALES


A SAMA 3.0% 9.1% 0.8% 0.6% 37.9% 12.2%

SALT 5.9% 12.4% 2.5% 2.1% 4.7% 5.1%

E SEMI 13.3% 3.7% 21.6% 14.7% 0.9% 10.6% 42356.9288

SELF 9.7% 2.2% 5.8% 3.2% 0.6% 4.4% 11373.6198

I SIRO 2.7% 6.1% 0.7% 0.5% 24.8% 8.2% 5609.99974

SIBI 9.8% 28.8% 3.1% 2.2% 10.7% 10.0%

O SOLD 9.4% 3.5% 19.5% 29.9% 1.0% 11.9%

SONO 16.2% 2.9% 4.3% 1.9% 0.9% 5.6%

U SUSI 1.7% 3.6% 0.6% 0.4% 10.8% 3.9%

SULI 13.3% 4.3% 24.2% 15.9% 1.2% 11.5%

Y SYGU 9.1% 19.2% 5.4% 3.4% 5.2% 7.7%

SYCA 5.8% 4.1% 11.6% 25.3% 1.3% 8.9%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Total sales (U) 233,846 136,505 196,097 175,312 264,867 1,006,628

Total sales (% Total) 23.2% 13.6% 19.5% 17.4% 26.3% 100.0%



DISTRIBUTION PANEL - SONITE MARKET

DISTRIBUTION PANEL - MARKET SHARES BASED ON UNIT SALES

Firm Brand Specialty stores Depart. stores Mass Merchandis. Total

A SAMA 5.8% 15.0% 20.1% 12.2%

SALT 4.6% 6.1% 4.3% 5.1%

E SEMI 14.1% 9.3% 5.9% 10.6%

SELF 6.6% 3.4% 1.7% 4.4%

I SIRO 4.1% 9.7% 14.0% 8.2%

SIBI 8.7% 11.2% 10.3% 10.0%

O SOLD 12.3% 12.4% 10.3% 11.9%

SONO 8.6% 4.0% 2.1% 5.6%

U SUSI 2.7% 3.8% 6.7% 3.9%

SULI 13.6% 9.8% 10.4% 11.5%

Y SYGU 9.8% 6.4% 6.0% 7.7%

SYCA 9.2% 8.9% 8.3% 8.9%

Total 100.0% 100.0% 100.0% 100.0%

Total sales (U) 418,264 394,500 193,865 1,006,628

Total sales (% Total) 41.6% 39.2% 19.3% 100.0%

DISTRIBUTION PANEL - DISTRIBUTION COVERAGE BY CHANNEL

Firm Brand Specialty stores Depart. stores Mass Merchandis.

A SAMA 26.8% 45.6% 25.8%

SALT 27.9% 46.4% 24.8%

E SEMI 48.5% 39.3% 19.4%

SELF 46.1% 37.3% 18.1%

I SIRO 27.0% 42.9% 30.0%

SIBI 27.7% 42.7% 29.2%

O SOLD 42.4% 39.0% 25.2%

SONO 42.5% 38.1% 24.1%

U SUSI 33.8% 32.0% 31.0%

SULI 37.6% 35.1% 33.5%

Y SYGU 47.0% 33.7% 24.8%

SYCA 47.0% 33.9% 25.1%

Total number of outlets 30,000 6,750 10,000



SEMANTIC SCALES - SONITE MARKET

SEMANTIC SCALES - IDEAL VALUES (1 TO 7)

Segment Weight Design Volume Max Freq Power Price

Buffs 3.33 1.86 1.91 6.05 6.31 3.58

Singles 6.18 5.19 5.05 4.13 3.81 3.22 19Pros 2.35 5.75 2.99 5.44 5.21 5.24 12HiEarners 4.75 6.19 4.49 4.61 4.64 5.87

Others 5.48 3.96 6.24 2.63 2.43 2.12

Importance of characteristic (1) 1 3 1 3 6 10

(1) On a scale from 1 to 10 - 1 = Not important - 10 = Very important

SEMANTIC SCALES - BRAND PERCEPTIONS (1 TO 7)

Firm Brand Weight Design Volume Max Freq Power Price

A SAMA 4.00 1.63 3.54 1.61 1.50 2.61

SALT 5.89 2.34 6.32 2.23 2.47 4.35

E SEMI 3.30 4.77 5.61 6.39 5.53 6.27 14SELF 4.00 1.63 4.00 6.39 6.42 6.45

I SIRO 6.50 1.50 6.32 1.50 1.50 2.19

SIBI 6.45 2.34 5.24 4.41 2.47 3.88

O SOLD 2.69 4.77 4.46 4.41 5.53 6.39

SONO 4.71 1.50 6.50 6.50 6.31 5.38

U SUSI 5.89 1.50 6.50 2.23 1.50 2.52

SULI 2.11 3.23 1.68 5.77 5.83 6.15

Y SYGU 1.55 6.37 3.54 3.59 2.47 4.51

SYCA 1.50 5.66 1.50 5.12 3.43 6.45



MULTIDIMENSIONAL SCALING - SONITE MARKET

MULTIDIMENSIONAL SCALING - IDEAL VALUES (-20 TO +20)

Segment Economy Performance Convenience

Buffs 2.8 15.0 -6.8

Singles 5.2 -0.7 2.7

Pros -8.2 8.4 10.6

HiEarners -12.4 4.2 9.1

Others 12.5 -10.2 -4.1

MULTIDIMENSIONAL SCALING - BRAND PERCEPTIONS (-20 TO +20)

Firm Brand Economy Performance Convenience

A SAMA 9.2 -17.6 -10.4

SALT -2.3 -10.6 -12.1

E SEMI -15.1 11.6 1.9

SELF -16.3 16.1 -11.1

I SIRO 12.1 -18.0 -19.1

SIBI 0.8 -7.0 -11.0

O SOLD -15.9 8.3 3.8

SONO -9.2 16.1 -18.0

U SUSI 9.9 -15.9 -18.8

SULI -14.3 12.1 0.8

Y SYGU -3.4 -8.3 13.3

SYCA -16.3 -1.0 13.3

MULTIDIMENSIONAL SCALINGINFLUENCE OF PRODUCT CHARACTERISTICS ON MDS DIMENSIONS

Weight Design Volume Max Freq Power Price

(Kg) (Index) (Dm3) (KHz) (W) ($)

Economy Slight Slight Slight Slight Moderate Very strong

Performance Slight Slight Slight Strong Very strong Slight

Convenience Moderate Very strong Moderate Slight Slight Slight



MARKET FORECAST - SONITE MARKET

MARKET FORECAST - SEGMENT SIZES AND GROWTH RATES

Segment Buffs Singles Pros HiEarners Others Total

Segment sizes in KU

Actual size this period 234 137 196 175 265 1,007

Forecasted size next period 229 169 242 235 314 1,188

Forecasted size in five periods 203 491 406 450 630 2,179

Relative segment sizes in %

Actual size this period 23.2% 13.6% 19.5% 17.4% 26.3% 100.0%

Forecasted size next period 19.3% 14.2% 20.4% 19.8% 26.4% 100.0%

Forecasted size in five periods 9.3% 22.5% 18.6% 20.6% 28.9% 100.0%

Forecasted growth rates in %

Next period -2.2% 23.6% 23.6% 33.9% 18.5% 18.1%

Total over next five periods -13.4% 259.5% 107.2% 156.6% 137.7% 116.5%

Average over next five periods -2.8% 29.2% 15.7% 20.7% 18.9% 16.7%



COMPETITIVE ADVERTISING - SONITE MARKET

COMPETITIVE ADVERTISING - ESTIMATED TOTAL EXPENDITURES(all numbers in K$)


A SAMA 250 350 200 200 450 1,450

SALT 650 650 450 450 350 2,550

TOTAL 900 1,000 650 650 800 4,000

E SEMI 650 350 650 550 300 2,500

SELF 350 300 400 250 200 1,500

TOTAL 1,000 650 1,050 800 500 4,000

I SIRO 300 500 300 300 600 2,000

SIBI 400 550 350 350 350 2,000

TOTAL 700 1,050 650 650 950 4,000

O SOLD 400 300 400 600 300 2,000

SONO 500 350 500 350 300 2,000

TOTAL 900 650 900 950 600 4,000

U SUSI 150 250 150 150 300 1,000

SULI 500 450 850 750 450 3,000

TOTAL 650 700 1,000 900 750 4,000

Y SYGU 400 400 400 400 400 2,000

SYCA 400 400 400 400 400 2,000

TOTAL 800 800 800 800 800 4,000

TOTAL 4,950 4,850 5,050 4,750 4,400 24,000

AVERAGE BY BRAND 413 404 421 396 367 2,000

AVERAGE BY FIRM 825 808 842 792 733 4,000

COMPETITIVE ADVERTISINGESTIMATED COMMUNICATION DIMENSIONS AND MESSAGE QUALITY

Firm Brand Communication Dimensions Message Quality

A SAMA - Poor

SALT - Poor

E SEMI - Poor

SELF - Poor

I SIRO - Poor

SIBI - Poor

O SOLD - Poor

SONO - Poor

U SUSI - Poor

SULI - Poor

Y SYGU - Poor

SYCA - Poor



COMPETITIVE SALES FORCE - SONITE MARKET

COMPETITIVE SALES FORCES - ESTIMATED SIZES(in number of salespeople)

Firm Brand Specialty stores Depart. stores Mass Merchandis. TotalA SAMA 5 18 8 30

SALT 5 18 8 30TOTAL 10 35 15 60

E SEMI 13 13 5 30SELF 13 13 5 30TOTAL 25 25 10 60

I SIRO 5 15 10 30SIBI 5 15 10 30TOTAL 10 30 20 60

O SOLD 10 13 8 30SONO 10 13 8 30TOTAL 20 25 15 60

U SUSI 8 10 13 30SULI 8 10 13 30TOTAL 15 20 25 60

Y SYGU 13 10 8 30SYCA 13 10 8 30TOTAL 25 20 15 60

TOTAL 105 155 100 360AVERAGE BY BRAND 9 13 8 30AVERAGE BY FIRM 18 26 17 60



ADVERTISING EXPERIMENT - SONITE MARKET

EXPECTED RESULTS WITH INCREASED ADVERTISING BUDGET

SEMI SELF

Change in awareness (%)

Buffs 2.7% 2.1%

Singles 3.1% 3.1%

Professionals 2.7% 2.4%

High earners 2.7% 1.8%

Others 1.9% 1.6%

Change in market share (%)

Buffs 0.9% 0.5%

Singles 0.3% 0.2%

Professionals 1.2% 0.3%

High earners 0.9% 0.1%

Others 0.1% 0.0%

Change in contribution after marketing (K$) 735 66

Notes.

These results would have been achieved by a given brand if its advertising budget

had been increased by 20% and if competitive actions had remained unchanged.

SALES FORCE EXPERIMENT - SONITE MARKET

EXPECTED RESULTS WITH INCREASED SALES FORCE

SEMI SELF

Change in number of distributors (U)

Specialty stores 1,456 1,404

Depart. stores 413 399

Mass Merchandis. 832 808

Change in market share (%)

Specialty stores 1.3% 0.9%

Depart. stores 1.3% 0.6%

Mass Merchandis. 2.0% 0.8%

Change in contribution after marketing (K$) 2,129 756

Notes.

These results would have been achieved if the number of salespeople had been

increased by 10 in each channel and if competitive actions had remained unchanged.



CONJOINT ANALYSIS - SONITE MARKET

CONJOINT ANALYSIS - RELATIVE IMPORTANCE OF CHARACTERISTICS

Segment Design Max Freq Power Price Total

Buffs 1.2% 10.3% 34.4% 54.0% 100.0%

Singles 0.8% 2.3% 29.3% 67.7% 100.0%

Pros 2.4% 2.1% 28.3% 67.2% 100.0%

HiEarners 6.8% 4.0% 35.7% 53.4% 100.0%

Others 6.4% 1.7% 31.3% 60.6% 100.0%

CONJOINT ANALYSIS - UTILITIES - SEGMENT BUFFS

Unit 1 2 3 4 Importance

Design Level Index 3 4 5 6 1.2%

Utility [0,1] 0.45 0.47 0.47 0.47

Max Freq Level KHz 26 34 42 50 10.3%

Utility [0,1] 0.36 0.44 0.50 0.55

Power Level W 52 68 84 100 34.4%

Utility [0,1] 0.05 0.43 0.68 0.69

Price Level $ 192 269 346 423 54.0%

Utility [0,1] 0.25 1.00 0.60 0.00



CONJOINT ANALYSIS - UTILITIES - SEGMENT SINGLES



Utility [0,1] 0.54 0.55 0.54 0.54


Utility [0,1] 0.53 0.56 0.55 0.53

Power Level W 27 43 59 75 29.3%

Utility [0,1] 0.38 0.75 0.72 0.32

Price Level $ 164 241 318 395 67.7%

Utility [0,1] 0.24 0.93 1.00 0.00



CONJOINT ANALYSIS - UTILITIES - SEGMENT PROFESSIONALS



Utility [0,1] 0.42 0.45 0.45 0.45


Utility [0,1] 0.44 0.45 0.45 0.42

Power Level W 46 62 78 94 28.3%

Utility [0,1] 0.21 0.63 0.63 0.29

Price Level $ 317 394 471 548 67.2%

Utility [0,1] 0.00 1.00 0.56 0.21



CONJOINT ANALYSIS - UTILITIES - SEGMENT HIGH EARNERS



Utility [0,1] 0.52 0.64 0.65 0.65


Utility [0,1] 0.61 0.65 0.62 0.57

Power Level W 38 54 70 86 35.7%

Utility [0,1] 0.29 0.96 0.87 0.33

Price Level $ 330 407 484 561 53.4%

Utility [0,1] 0.00 1.00 0.93 0.51



CONJOINT ANALYSIS - UTILITIES - SEGMENT OTHERS



Utility [0,1] 0.65 0.74 0.75 0.74


Utility [0,1] 0.70 0.71 0.73 0.73

Power Level W 5 21 37 53 31.3%

Utility [0,1] 0.53 0.93 0.96 0.45

Price Level $ 100 177 254 331 60.6%

Utility [0,1] 1.00 1.00 0.87 0.00



SEMANTIC SCALES - VODITE MARKET

SEMANTIC SCALES - IDEAL VALUES (1 TO 7)

Segment Autonomy Max Freq Diameter Design Weight Price

Innovs 4.60 4.90 3.78 3.40 4.23 6.10

Adopters 5.09 4.04 3.10 4.11 3.66 5.35

Followers 3.40 3.14 4.49 4.47 4.68 4.68

Importance of characteristic (1) 4 10 2 3 2 5

(1) On a scale from 1 to 10 - 1 = Not important - 10 = Very important



MARKET FORECAST - VODITE MARKET

MARKET FORECAST - SEGMENT SIZES AND GROWTH RATES

Segment Innovs Adopters Followers Total

Segment sizes in KU

Actual size this period 0 0 0 0

Forecasted size at introduction period 100 50 16 166

Forecasted size 5 periods after intro. 173 289 739 1,201

Relative segment sizes in %

Actual size this period 0.0% 0.0% 0.0% 0.0%

Forecasted size at introduction period 60.2% 30.1% 9.6% 100.0%

Forecasted size 5 periods after intro. 14.4% 24.0% 61.5% 100.0%

Forecasted growth rates in %

Next period

Total over first five periods 73.3% 477.5% 4516.8% 623.3%

Average over first five periods 14.7% 55.0% 160.7% 64.0%



SALES FORCE EXPERIMENT - VODITE MARKET



8 74 28 50 149 47 38 72 17

7 81 45 77 19

Annual Report Team E

Documents

Transcript of Annual Report Team E