Practice a Annual Report p06

INDUSTRY PRACTICE - FIRM A ANNUAL REPORT PERIOD 6

COMPANY REPORT

INDUSTRY PRACTICE - FIRM ABased on scenario CHRONOS9

PERIOD 6

Demo InstructorMarkstrat Demo Course15/04/2010 -->31/12/2010

StratX SimulationsFrance

02/11/2010 Markstrat by StratX 5.1.0.4 - Copyright © 2010 by StratX 1/39


COMPANY RESULTS

COMPANY SCORECARD

Unit Annual results Evolution since P0

Period 5 Period 6 %changeRatio

P6/P0

Average

growth

Market share

Total %$ 7.0% 6.4% -8.2% x 0.24 -20.9%

Sonite market %$ 7.7% 7.4% -4.1% x 0.28 -19.0%

Vodite market %$ 2.0% 0.4% -81.5% - -

Retail sales

Total K$ 67 179 71 584 6.6% x 0.77 -4.3%

Sonite market K$ 64 628 70 983 9.8% x 0.76 -4.4%

Vodite market K$ 2 550 601 -76.4% - -

Contribution

Before marketing K$ 21 516 25 080 16.6% x 1.09 1.4%

After marketing K$ 11 036 14 844 34.5% x 0.86 -2.5%

Net K$ 10 330 13 965 35.2% x 0.82 -3.3%

Cumulative net K$ 101 793 115 758 13.7% x 6.80 37.6%

Shareholder value

Stock price index Base 1000 643 651 1.2% x 0.65 -6.9%

Current return on investment Ratio 0.92 1.26 36.0% x 0.45 -12.6%

Cumulative return on investment Ratio 1.56 1.51 -2.8% x 0.54 -9.8%

COMPANY PERFORMANCE

Unit Total Sonite market Vodite market

Sales

Units sold U 156 661 155 791 870

Average retail price $ 457 456 691

Average selling price $ 298 297 449

Revenues K$ 46 715 46 325 390

Production

Units produced U 157 400 141 400 16 000

Cost of goods sold K$ -19 058 -18 824 -235

Inventory holding cost K$ -2 575 -1 264 -1 311

Inventory disposal loss K$ -1 -1 0

Contribution before marketing K$ 25 080 26 236 -1 155

Marketing

Advertising expenditures K$ -5 900 -5 000 -900

Advertising research expenditures K$ -1 200 -900 -300

Sales force K$ -3 136 -2 872 -264

Contribution after marketing K$ 14 844 17 464 -2 619

Other expenses

Market research studies K$ -879 -456 -391

Research and development K$ 0 0 0

Interest paid K$ 0

Exceptional cost or profit K$ 0

Net contribution K$ 13 965

Next period budget K$ 10 700

INSTRUCTOR AND SIMULATION MESSAGES

Messages

The physical characteristics of brand SAKE were modified this period. The obsolete

inventory (69 units) was sold to a trading company at 80.0 % of transfer cost.

The difference was charged as an inventory disposal loss of K$1.



BRAND RESULTS

CONTRIBUTION BY BRAND

Sonite Brands Unit Total SAKE SAPO SAXX

Base R&D project PSAKE PSAK2 PSALO

Sales

Units sold U 155 791 101 069 44 698 10 024

Average retail price $ 456 472 469 228

Average selling price $ 297 309 302 159

Revenues K$ 46 325 31 216 13 518 1 591

Production

Units produced U 141 400 101 100 40 300 0

Current unit transfer cost $ - 122 108 125

Average unit transfer cost $ 121 122 118 125

Cost of goods sold K$ -18 824 -12 297 -5 271 -1 256

Units in inventory U 86 512 31 17 606 68 876

Inventory holding cost K$ -1 264 0 -228 -1 036

Inventory disposal loss K$ -1 -1 0 0

Contribution before marketing K$ 26 236 18 917 8 019 -701

Marketing

Advertising expenditures K$ -5 000 -1 000 -4 000 0

Advertising research expenditures K$ -900 -400 -500 0

Sales force K$ -2 872 -1 188 -1 618 -66

Contribution after marketing K$ 17 464 16 329 1 902 -767

CONTRIBUTION BY BRAND

Vodite Brands Unit Total VAXX VAVA

Base R&D project PVAK2 PVAKE

Sales

Units sold U 870 532 338

Average retail price $ 691 641 769

Average selling price $ 449 425 487

Revenues K$ 390 226 164

Production

Units produced U 16 000 16 000 0

Current unit transfer cost $ - 270 268

Average unit transfer cost $ 270 270 268

Cost of goods sold K$ -235 -144 -91

Units in inventory U 40 585 15 468 25 117

Inventory holding cost K$ -1 311 -502 -809

Inventory disposal loss K$ 0 0 0

Contribution before marketing K$ -1 155 -420 -735

Marketing

Advertising expenditures K$ -900 -900 0

Advertising research expenditures K$ -300 -300 0

Sales force K$ -264 -264 0

Contribution after marketing K$ -2 619 -1 884 -735

MARKET SHARES AND DISTRIBUTION COVERAGE

Sonite Brands Unit Total SAKE SAPO SAXX

Market shares %U 5.2% 3.3% 1.5% 0.3%

%$ 7.4% 5.0% 2.2% 0.2%

Distribution coverage in %

Specialty stores (27 727 outlets) % 28.8% 34.5% 0.2%

Depart. stores (6 661 outlets) % 30.6% 21.1% 0.4%

Mass Merchandis. (12 149 outlets) % 16.2% 22.5% 9.4%



MARKET SHARES AND DISTRIBUTION COVERAGE

Vodite Brands Unit Total VAXX VAVA

Market shares %U 0.4% 0.2% 0.2%

%$ 0.4% 0.2% 0.2%

Distribution coverage in %

Specialty stores (27 727 outlets) % 19.7% 0.5%

Depart. stores (6 661 outlets) % 17.5% 0.5%

Mass Merchandis. (12 149 outlets) % 24.9% 0.5%



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

PSAKE 13 7 45 30 75 194 143 1 500 Avail. in P-1

PSAFE 17 4 90 48 95 199 157 2 000 Avail. in P-1

PSAF2 15 5 37 43 92 212 164 1 060 Avail. in P1

PSAK2 13 10 45 30 75 212 154 640 Avail. in P1

PSALO 15 7 35 18 56 138 116 1 590 Avail. in P3

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

VODITE R&D PROJECTS

Physical Characteristics Base Cost $ Allocated Budget K$

Name Autonomy Max Freq Diameter Design Weight Current Minimum Cumulative Req. for

(M) (KHz) (Mm) (Index) (g) realistic completion

PVAKE 80 17 70 6 100 243 179 8 830 Avail. in P2

PVAK2 53 12 55 4 100 178 147 3 310 Avail. in P4

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



CUMULATIVE RESULTS

CUMULATIVE BRAND RESULTS

Sales Production Marketing

BrandResults since

periodUnits sold Retail sales Revenues

Cost of

goods sold

Inventory

costsAdvertising Sales force

Contrib. after

mktg.

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

SAKE 0 1 094 472 964 307 808 144 990 9 20 350 12 487 129 971

SAFE 0 144 56 566 35 485 26 457 65 4 100 1 942 2 922

SAPO 3 90 42 382 27 097 10 910 1 582 6 750 3 414 4 440

SAXX 4 65 15 304 10 398 8 059 3 647 2 300 1 582 -5 190

VAVA 3 39 36 186 22 068 11 808 2 522 1 400 1 113 5 226

VAXX 6 1 341 226 144 502 1 200 264 -1 884

Total Sonite 1 393 587 217 380 788 190 416 5 302 33 500 19 425 132 144

Total Vodite 39 36 527 22 295 11 952 3 024 2 600 1 377 3 342

Total all markets 1 432 623 744 403 082 202 368 8 326 36 100 20 802 135 486

CUMULATIVE COMPANY PERFORMANCE

Unit Total Sonite market Vodite market

Sales

Units sold KU 1 432 1 393 39

Retail sales K$ 623 744 587 217 36 527

Revenues K$ 403 082 380 788 22 295

Production

Cost of goods sold K$ -202 368 -190 416 -11 952

Inventory holding and disposal cost K$ -8 326 -5 302 -3 024

Marketing

Total advertising expenditures K$ -36 100 -33 500 -2 600

Sales force expenditures K$ -20 802 -19 425 -1 377

Contribution after marketing K$ 135 486 132 144 3 342

Other expenses

Market research studies K$ -4 192 -2 910 -1 094

Research and development K$ -15 430 -3 290 -12 140

Interest paid K$ 0

Exceptional cost or profit K$ -105

Net contribution K$ 115 758



DECISION SUMMARY

DECISION SUMMARY - BRAND MANAGEMENT

Sonite Brands SAKE SAPO SAXX

Base R&D project PSAKE PSAK2 PSALO

Production planning KU 120 60 0

Inventory sold to trading company KU 0 0 0

Recommended retail price $ 480 480 249

Advertising budget K$ 1 000 4 000 0

Advertising research budget K$ 400 500 0

Buffs 0 0 0

Singles 0 0 100

Targeted segments in % Professionals 0 100 0

High earners 100 0 0

Others 0 0 0

Perceptual Objectives

Dimension 1 Convenience Convenience None

Objective 1 [1,7] or [-20,+20] 7.0 8.0 -

Dimension 2 Performance None None

Objective 2 [1,7] or [-20,+20] 11.0 - -

DECISION SUMMARY - BRAND MANAGEMENT

Vodite Brands VAXX VAVA

Base R&D project PVAK2 PVAKE

Production planning KU 20 0

Inventory sold to trading company KU 0 0

Recommended retail price $ 666 780

Advertising budget K$ 900 0

Advertising research budget K$ 300 0

Innovators 0 100

Targeted segments in % Early Adopters 100 0

Followers 0 0

Perceptual Objectives

Dimension 1 Economy None

Objective 1 [1,7] or [-20,+20] 5.0 -

Dimension 2 Flexibility None

Objective 2 [1,7] or [-20,+20] 6.0 -

DECISION SUMMARY - SALES FORCE MANAGEMENT

Distribution Channels Specialty stores Depart. stores Mass Merchandis.

Number of salespeople 36 34 25

Sales force effort allocation by brand (%)

SAKE 28 53 32

SAPO 58 41 56

SAXX 0 0 8

VAXX 14 6 4

VAVA 0 0 0

TOTAL 100 100 100



DECISION SUMMARY - MARKET RESEARCH STUDIES

Study Market covered by study

All markets Sonite Vodite

Industry benchmarking Yes - -

Consumer survey - Yes Yes

Consumer panel - Yes Yes

Distribution panel - Yes Yes

Semantic scales - Yes Yes

Multidimensional scaling - Yes Yes

Market forecast - Yes Yes

Competitive advertising - Yes Yes

Competitive sales force - Yes Yes

Advertising experiment - Yes Yes

Sales force experiment - Yes Yes

Conjoint analysis - Yes Yes

DECISION SUMMARY - LOAN AND BUDGET MODIFICATION

Corporate finance department

Increase in budget K$ 515

Decrease in budget K$ 0

Bank

Capital borrowed K$ 0

Duration in number of periods

Interest rate %



NEWSLETTER

INDUSTRY PRACTICE - FIRM A

Based on scenario CHRONOS9

PERIOD 6





STOCK MARKET AND KEY PERFORMANCE INDICATORS

STOCK MARKET

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

base 1000 K$ Period 6 Cumulative

U 3 425 1 153 334 175 918 501 687

E 3 087 813 418 84 329 342 545

O 2 783 570 980 72 271 284 394

I 788 268 102 23 770 140 686

A 651 224 592 13 965 115 758

COMPANY KEY PERFORMANCE INDICATORS(period 6 values)

Unit A E I O U

Market share

Total %$ 6.4% 24.6% 7.2% 18.1% 43.6%

Sonite market %$ 7.4% 28.7% 8.4% 21.0% 34.4%

Vodite market %$ 0.4% 0.0% 0.0% 0.6% 99.1%

Retail sales

Total K$ 71 584 276 197 81 071 203 296 489 476

Sonite market K$ 70 983 276 197 81 071 202 381 330 946

Vodite market K$ 601 0 0 914 158 530

Contribution

Before marketing K$ 25 080 122 660 34 370 98 321 218 369

After marketing K$ 14 844 97 048 24 419 74 288 177 098

Net K$ 13 965 84 329 23 770 72 271 175 918

Cumulative net K$ 115 758 342 545 140 686 284 394 501 687

Shareholder value

Stock price index Base 1000 651 3 087 788 2 783 3 425

Market capitalization K$ 224 592 813 418 268 102 570 980 1 153 334

Current return on investment Ratio 1.26 2.20 2.24 2.77 4.14

Cumulative return on investment Ratio 1.51 2.53 2.04 2.43 3.31

COMPANY KEY PERFORMANCE INDICATORS(% change from period 5 to period 6)

A E I O U

Market share

Total -8.2% -6.6% -12.3% -4.2% 10.5%

Sonite market -4.1% -5.3% -11.0% -3.3% 11.9%

Vodite market -81.5% - - - 1.1%

Retail sales

Total 6.6% 8.4% 1.9% 11.2% 28.3%

Sonite market 9.8% 8.4% 1.9% 10.7% 28.2%

Vodite market -76.4% - - - 28.6%

Contribution

Before marketing 16.6% 12.6% 6.4% 16.4% 34.7%

After marketing 34.5% 14.2% 12.5% 12.8% 38.2%

Net 35.2% 3.0% 12.2% 38.6% 39.0%

Cumulative net 13.7% 32.7% 20.3% 34.1% 54.0%

Shareholder value

Stock price index 1.2% 5.4% -1.3% 2.3% 19.8%

Market capitalization 1.2% 5.4% -1.3% 2.3% 19.8%

Current return on investment 36.0% -27.2% 17.5% 72.0% 16.6%

Cumulative return on investment -2.8% -4.9% 1.9% 4.2% 10.9%



ECONOMIC VARIABLES AND COSTS

ECONOMIC VARIABLES

Unit Actual value Forecast value %change

Period 6 Period 7

GNP growth rates % 2.0% 2.0% 0.0%

Inflation rate % 1.0% 1.0% 0.0%

Production

Inventory holding cost per annum % transf. cost 12.0% 12.0% 0.0%

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

Sales force

Salesperson operating cost $ 32 164 32 486 1.0%

Salesperson hiring and training cost $ 16 082 16 243 1.0%

Salesperson firing cost $ 10 721 10 829 1.0%

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

Study Market covered by study

All markets Sonite Vodite

Industry benchmarking 32

Consumer survey 65 43

Consumer panel 108 76

Distribution panel 65 54

Semantic scales 11 11

Multidimensional scaling 38 38

Market forecast 22 22

Competitive advertising 32 32

Competitive sales force 16 16

Advertising experiment 27 27

Sales force experiment 38 38

Conjoint analysis 38 38

Total market 32 460 395

Total if all studies ordered 887



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 SAKE Modified 13 7 45 30 75 194 480

SAPO No 13 10 45 30 75 212 480

SAXX No 15 7 35 18 56 138 249

E SECT No 19 8 70 17 46 101 227

SELL No 19 8 65 19 63 122 268

SEXY Modified 16 10 60 42 99 185 495

I SIGH No 14 7 50 35 70 204 510

SIAM No 18 8 75 25 35 93 225

O SOLO No 15 8 35 33 55 128 275

U SURF No 13 7 40 40 75 204 510

SUBB No 13 7 40 40 75 204 460

SUCK No 13 7 40 40 75 204 295

INFORMATION ON SONITE MARKET - SALES AND MARKET SHARES

Firm Brand Volume sold Retail sales

Period 5 Period 6 Change Share Period 5 Period 6 Change Share

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

A SAKE 143 023 101 069 -29.3% 3.3% 57 253 47 724 -16.6% 5.0%

SAPO 6 716 44 698 565.5% 1.5% 3 173 20 970 561.0% 2.2%

SAXX 18 551 10 024 -46.0% 0.3% 4 203 2 290 -45.5% 0.2%

E SECT 571 900 581 073 1.6% 19.2% 135 724 125 071 -7.8% 13.0%

SELL 425 600 545 300 28.1% 18.1% 114 633 142 720 24.5% 14.8%

SEXY 8 613 17 049 98.0% 0.6% 4 376 8 406 92.1% 0.9%

I SIGH 127 396 117 486 -7.8% 3.9% 64 078 59 030 -7.9% 6.1%

SIAM 73 483 104 378 42.0% 3.5% 15 502 22 041 42.2% 2.3%

O SOLO 695 069 758 230 9.1% 25.1% 182 792 202 381 10.7% 21.0%

U SURF 297 472 362 985 22.0% 12.0% 147 636 181 905 23.2% 18.9%

SUBB 179 318 239 331 33.5% 7.9% 79 141 108 117 36.6% 11.2%

SUCK 62 134 139 181 124.0% 4.6% 16 765 40 924 144.1% 4.3%

Total Sonite market 2 663 243 3 020 804 13.4% 100.0% 839 974 961 579 14.5% 100.0%



INFORMATION ON VODITE MARKET

CHARACTERISTICS OF MARKETED VODITE BRANDS

Physical characteristics

Firm Brand New or Autonomy Max Freq Diameter Design Weight Base cost Retail price

Modified (M) (KHz) (Mm) (Index) (g) ($) ($)

A VAXX New 53 12 55 4 100 178 666

VAVA No 80 17 70 6 100 243 780

O VODO New 45 12 50 3 55 269 550

U VUAA No 75 14 64 6 58 315 620

VUKK No 75 14 64 6 58 315 800

INFORMATION ON VODITE MARKET - SALES AND MARKET SHARES

Firm Brand Volume sold Retail sales

Period 5 Period 6 Change Share Period 5 Period 6 Change Share

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

A VAXX 0 532 - 0.2% 0 341 - 0.2%

VAVA 3 079 338 -89.0% 0.2% 2 550 260 -89.8% 0.2%

O VODO 0 1 753 - 0.8% 0 914 - 0.6%

U VUAA 42 551 79 997 88.0% 36.2% 26 801 48 561 81.2% 30.3%

VUKK 115 532 138 311 19.7% 62.6% 96 483 109 969 14.0% 68.7%

Total Vodite market 161 162 220 931 37.1% 100.0% 125 834 160 045 27.2% 100.0%



MARKET RESEARCH STUDIES

INDUSTRY PRACTICE - FIRM A

Based on scenario CHRONOS9

PERIOD 6





INDUSTRY BENCHMARKING

BENCHMARKING - ESTIMATED OVERALL PERFORMANCE

Unit A E I O U

Sales

Retail sales K$ 71 584 276 197 81 071 203 296 489 476

Revenues K$ 46 715 185 391 53 527 134 948 318 431

Production

Cost of goods sold K$ -19 058 -59 233 -19 155 -35 634 -100 058

Inventory holding cost K$ -2 575 -1 250 -1 -993 -4

Inventory disposal loss K$ -1 -2 248 0 0 0

Contribution before marketing K$ 25 080 122 660 34 370 98 321 218 369

Marketing

Advertising expenditures K$ -5 900 -15 400 -6 296 -14 788 -25 470

Advertising research expenditures K$ -1 200 -3 200 -600 -2 250 -4 350

Sales force K$ -3 136 -7 012 -3 056 -6 996 -11 450

Contribution after marketing K$ 14 844 97 048 24 419 74 288 177 098

Other expenses

Market research studies K$ -879 -879 -649 -96 -879

Research and development K$ 0 -11 840 0 -1 920 -300

Interest paid K$ 0 0 0 0 0

Exceptional cost or profit K$ 0 0 0 0 -2

Net contribution K$ 13 965 84 329 23 770 72 271 175 918

Next period budget K$ 10 700 42 150 11 900 36 150 42 900

BENCHMARKING - ESTIMATED PERFORMANCE IN SONITE MARKET

Unit A E I O U

Sales

Retail sales K$ 70 983 276 197 81 071 202 381 330 946

Revenues K$ 46 325 185 391 53 527 134 324 218 512

Production

Cost of goods sold K$ -18 824 -59 233 -19 155 -34 982 -53 271

Inventory holding cost K$ -1 264 -1 250 -1 0 -2

Inventory disposal loss K$ -1 -2 248 0 0 0

Contribution before marketing K$ 26 236 122 660 34 370 99 342 165 239

Marketing

Advertising expenditures K$ -5 000 -15 400 -6 296 -13 288 -16 000

Advertising research expenditures K$ -900 -3 200 -600 -2 000 -2 650

Sales force K$ -2 872 -7 012 -3 056 -6 458 -8 195

Contribution after marketing K$ 17 464 97 048 24 419 77 596 138 394

BENCHMARKING - ESTIMATED PERFORMANCE IN VODITE MARKET

Unit A E I O U

Sales

Retail sales K$ 601 0 0 914 158 530

Revenues K$ 390 0 0 624 99 920

Production

Cost of goods sold K$ -235 0 0 -652 -46 787

Inventory holding cost K$ -1 311 0 0 -992 -3

Inventory disposal loss K$ 0 0 0 0 0

Contribution before marketing K$ -1 155 0 0 -1 020 53 130

Marketing

Advertising expenditures K$ -900 0 0 -1 500 -9 470

Advertising research expenditures K$ -300 0 0 -250 -1 700

Sales force K$ -264 0 0 -538 -3 256

Contribution after marketing K$ -2 619 0 0 -3 308 38 704



CONSUMER SURVEY - SONITE MARKET

CONSUMER SURVEY - BRAND AWARENESS BY SEGMENT

Firm Brand Buffs Singles Pros HiEarners Others Total

A SAKE 43.4% 43.2% 65.8% 65.6% 34.0% 46.3%

SAPO 16.2% 13.4% 50.7% 14.2% 10.6% 15.8%

SAXX 8.0% 17.4% 8.5% 7.8% 7.4% 10.7%

E SECT 49.2% 58.0% 58.7% 57.0% 72.0% 60.7%

SELL 59.3% 75.7% 58.4% 53.3% 42.3% 58.2%

SEXY 15.8% 15.5% 39.7% 41.6% 11.9% 21.0%

I SIGH 51.4% 50.1% 78.4% 61.5% 37.6% 50.8%

SIAM 8.9% 10.3% 14.8% 11.4% 22.9% 14.3%

O SOLO 63.7% 84.3% 73.2% 69.2% 57.4% 69.9%

U SURF 52.3% 51.4% 73.4% 78.6% 40.4% 54.9%

SUBB 27.9% 27.2% 33.8% 68.0% 23.6% 34.2%

SUCK 40.7% 14.3% 22.0% 16.3% 9.9% 17.8%

CONSUMER SURVEY - PURCHASE INTENTIONS


A SAKE 5.8% 0.2% 28.0% 8.6% 0.6% 5.4%

SAPO 1.6% 0.0% 20.2% 1.4% 0.1% 2.5%

SAXX 1.1% 1.1% 0.0% 0.0% 6.6% 2.5%

E SECT 4.8% 1.5% 0.1% 0.1% 51.5% 17.3%

SELL 15.9% 45.5% 0.1% 0.2% 9.9% 17.1%

SEXY 1.6% 0.0% 1.0% 2.1% 0.1% 0.8%

I SIGH 5.1% 0.2% 24.8% 8.0% 0.5% 4.8%

SIAM 0.8% 0.2% 0.0% 0.0% 19.0% 6.1%

O SOLO 17.7% 50.7% 0.2% 0.2% 10.3% 18.8%

U SURF 6.7% 0.2% 17.0% 44.0% 0.6% 10.7%

SUBB 3.7% 0.1% 8.5% 35.4% 0.3% 7.8%

SUCK 35.2% 0.3% 0.1% 0.1% 0.5% 6.3%

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 60.9% 22.7% 16.4% 100.0%

Singles 35.5% 35.5% 29.1% 100.0%

Professionals 43.2% 27.7% 29.1% 100.0%

High earners 29.1% 50.0% 20.9% 100.0%

Others 15.5% 35.5% 49.1% 100.0%

Total 32.7% 35.7% 31.5% 100.0%



CONSUMER PANEL - SONITE MARKET

CONSUMER PANEL - MARKET SHARES BASED ON UNIT SALES


A SAKE 3.9% 0.1% 22.6% 5.7% 0.3% 3.3%

SAPO 1.1% 0.0% 16.1% 0.8% 0.1% 1.5%

SAXX 0.1% 0.1% 0.0% 0.0% 1.0% 0.3%

E SECT 4.7% 1.4% 0.1% 0.1% 62.2% 19.2%

SELL 18.3% 40.7% 0.2% 0.2% 9.7% 18.1%

SEXY 1.3% 0.0% 0.9% 1.6% 0.1% 0.6%

I SIGH 4.6% 0.1% 26.1% 6.7% 0.3% 3.9%

SIAM 0.4% 0.1% 0.0% 0.0% 11.5% 3.5%

O SOLO 23.9% 57.0% 0.3% 0.3% 13.7% 25.1%

U SURF 7.5% 0.2% 23.3% 49.1% 0.6% 12.0%

SUBB 3.6% 0.1% 10.4% 35.5% 0.3% 7.9%

SUCK 30.6% 0.2% 0.1% 0.0% 0.2% 4.6%

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

Total sales (U) 441 715 927 929 214 111 556 888 880 161 3 020 804

Total sales (% Total) 14.6% 30.7% 7.1% 18.4% 29.1% 100.0%



DISTRIBUTION PANEL - SONITE MARKET

DISTRIBUTION PANEL - MARKET SHARES BASED ON UNIT SALES

Firm Brand Specialty stores Depart. stores Mass Merchandis. Total

A SAKE 4.5% 3.5% 1.9% 3.3%

SAPO 2.4% 0.9% 1.2% 1.5%

SAXX 0.0% 0.1% 0.9% 0.3%

E SECT 6.6% 18.9% 34.2% 19.2%

SELL 22.0% 17.3% 14.5% 18.1%

SEXY 0.8% 0.7% 0.1% 0.6%

I SIGH 5.8% 3.7% 2.0% 3.9%

SIAM 1.0% 2.7% 7.3% 3.5%

O SOLO 26.2% 23.9% 25.4% 25.1%

U SURF 12.2% 15.7% 7.2% 12.0%

SUBB 7.5% 10.6% 4.9% 7.9%

SUCK 10.9% 2.1% 0.5% 4.6%

Total 100.0% 100.0% 100.0% 100.0%

Total sales (U) 1 018 325 1 123 229 879 249 3 020 804

Total sales (% Total) 33.7% 37.2% 29.1% 100.0%

DISTRIBUTION PANEL - DISTRIBUTION COVERAGE BY CHANNEL

Firm Brand Specialty stores Depart. stores Mass Merchandis.

A SAKE 28.8% 30.6% 16.2%

SAPO 34.5% 21.1% 22.5%

SAXX 0.2% 0.4% 9.4%

E SECT 30.5% 51.1% 49.9%

SELL 51.6% 46.9% 28.9%

SEXY 41.0% 42.8% 5.9%

I SIGH 44.6% 36.9% 20.2%

SIAM 13.7% 19.0% 30.3%

O SOLO 51.3% 57.6% 51.2%

U SURF 46.2% 50.0% 35.7%

SUBB 41.2% 45.0% 34.6%

SUCK 48.0% 25.4% 4.8%

Total number of outlets 27 727 6 661 12 149



SEMANTIC SCALES - SONITE MARKET

SEMANTIC SCALES - IDEAL VALUES (1 TO 7)

Segment Weight Design Volume Max Freq Power Price

Buffs 4.12 3.16 3.03 6.22 6.36 3.51

Singles 5.73 5.78 5.20 4.75 4.18 3.07

Pros 5.69 6.51 4.89 4.35 5.49 6.01

HiEarners 4.49 5.64 4.10 5.80 5.51 5.76

Others 5.43 4.98 5.74 3.81 3.21 2.32

Importance of characteristic (1) 1 4 2 2 5 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 SAKE 2.70 6.33 2.78 4.44 5.27 5.60

SAPO 2.76 6.45 2.92 4.42 5.22 6.00

SAXX 4.00 4.77 2.04 2.62 3.78 2.72

E SECT 6.50 5.10 4.81 2.49 3.37 2.38

SELL 6.45 5.66 4.48 2.87 4.74 2.92

SEXY 4.58 5.94 3.92 6.02 6.48 6.14

I SIGH 3.23 5.25 3.00 5.26 5.11 6.04

SIAM 5.94 5.31 5.34 3.66 2.85 2.42

O SOLO 4.11 4.90 2.25 4.92 4.08 3.09

U SURF 2.65 5.00 2.33 5.81 5.35 5.77

SUBB 2.70 4.98 2.41 5.80 5.28 5.73

SUCK 2.69 4.77 2.39 5.77 5.74 3.27



MULTIDIMENSIONAL SCALING - SONITE MARKET

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

Segment Economy Performance Convenience

Buffs 3.2 15.5 -2.7

Singles 6.2 2.1 5.5

Pros -13.4 8.0 9.4

HiEarners -11.7 10.5 7.2

Others 11.2 -4.3 1.3

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

Firm Brand Economy Performance Convenience

A SAKE -10.7 7.1 13.3

SAPO -13.4 6.8 13.7

SAXX 8.5 -3.4 6.2

E SECT 10.8 -5.7 2.3

SELL 7.2 1.8 5.5

SEXY -14.3 15.7 8.8

I SIGH -13.6 7.6 7.7

SIAM 10.6 -6.3 3.0

O SOLO 6.0 1.9 6.5

U SURF -11.8 9.8 7.8

SUBB -11.6 9.4 7.6

SUCK 4.8 11.6 6.6

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 Slight Very strong

Performance Slight Slight Slight Moderate Strong Slight

Convenience Moderate Moderate 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 442 928 214 557 880 3 021

Forecasted size next period 437 994 223 619 1 005 3 278

Forecasted size in five periods 303 1 308 190 703 1 608 4 111

Relative segment sizes in %

Actual size this period 14.6% 30.7% 7.1% 18.4% 29.1% 100.0%

Forecasted size next period 13.3% 30.3% 6.8% 18.9% 30.7% 100.0%

Forecasted size in five periods 7.4% 31.8% 4.6% 17.1% 39.1% 100.0%

Forecasted growth rates in %

Next period -1.1% 7.1% 4.0% 11.2% 14.2% 8.5%

Total over next five periods -31.4% 40.9% -11.4% 26.3% 82.7% 36.1%

Average over next five periods -7.3% 7.1% -2.4% 4.8% 12.8% 6.4%



COMPETITIVE ADVERTISING - SONITE MARKET

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


A SAKE 150 150 150 900 150 1 500

SAPO 400 400 2 900 400 400 4 500

SAXX 0 0 0 0 0 0

TOTAL 550 550 3 050 1 300 550 6 000

E SECT 500 500 500 500 3 450 5 450

SELL 1 550 4 100 700 700 700 7 750

SEXY 500 500 1 100 2 900 500 5 500

TOTAL 2 550 5 100 2 300 4 100 4 650 18 700

I SIGH 350 350 2 200 550 350 3 800

SIAM 300 300 300 300 2 000 3 200

TOTAL 650 650 2 500 850 2 350 7 000

O SOLO 1 400 9 800 1 400 1 400 1 400 15 400

U SURF 650 650 1 700 3 700 650 7 350

SUBB 400 400 400 3 000 400 4 600

SUCK 4 200 600 600 600 600 6 600

TOTAL 5 250 1 650 2 700 7 300 1 650 18 550

TOTAL 10 400 17 750 11 950 14 950 10 600 65 650

AVERAGE BY BRAND 867 1 479 996 1 246 883 5 471

AVERAGE BY FIRM 2 080 3 550 2 390 2 990 2 120 13 130

COMPETITIVE SALES FORCE - SONITE MARKET

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

Firm Brand Specialty stores Depart. stores Mass Merchandis. TotalA SAKE 10 18 8 36

SAPO 21 14 14 49SAXX 0 0 2 2TOTAL 31 32 24 87

E SECT 12 40 40 92SELL 31 31 12 74SEXY 20 30 2 52TOTAL 63 101 54 218

I SIGH 28 24 9 61SIAM 5 10 16 31TOTAL 33 34 25 92

O SOLO 60 60 60 180U SURF 32 40 22 94

SUBB 22 34 22 78SUCK 35 15 2 52TOTAL 89 89 46 224

TOTAL 276 316 209 801AVERAGE BY BRAND 23 26 17 67AVERAGE BY FIRM 55 63 42 160



ADVERTISING EXPERIMENT - SONITE MARKET

EXPECTED RESULTS WITH INCREASED ADVERTISING BUDGET

SAKE SAPO SAXX

Change in awareness (%)

Buffs 0.0% 0.5% 0.0%

Singles 0.0% 0.4% 0.0%

Professionals 0.1% 3.2% 0.0%

High earners 0.4% 0.7% 0.0%

Others 0.1% 0.3% 0.0%

Change in market share (%)

Buffs 0.0% 0.0% 0.0%

Singles 0.0% 0.0% 0.0%

Professionals 1.5% 0.8% 0.0%

High earners 0.1% 0.1% 0.0%

Others 0.0% 0.0% 0.0%

Change in contribution after marketing (K$) 376 -439 0

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

SAKE SAPO SAXX

Change in number of distributors (U)

Specialty stores 891 668 1

Depart. stores 245 234 0

Mass Merchandis. 374 439 135


Specialty stores 0.4% 0.2% 0.0%

Depart. stores 0.4% 0.2% 0.0%

Mass Merchandis. 0.3% 0.2% 0.2%

Change in contribution after marketing (K$) 1 792 402 6

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 5.0% 11.0% 33.5% 50.5% 100.0%

Singles 9.1% 1.6% 33.2% 56.0% 100.0%

Pros 22.6% 1.7% 33.6% 42.1% 100.0%

HiEarners 9.7% 2.2% 40.3% 47.8% 100.0%

Others 17.7% 3.3% 29.6% 49.4% 100.0%

CONJOINT ANALYSIS - UTILITIES - SEGMENT BUFFS

Unit 1 2 3 4 Importance

Design Level Index 4 5 6 7 5.0%

Utility [0,1] 0.35 0.43 0.45 0.44

Max Freq Level KHz 26 34 42 50 11.0%

Utility [0,1] 0.29 0.39 0.47 0.51

Power Level W 52 68 84 100 33.5%

Utility [0,1] 0.05 0.30 0.58 0.72

Price Level $ 196 273 350 427 50.5%

Utility [0,1] 0.27 1.00 0.39 0.00



CONJOINT ANALYSIS - UTILITIES - SEGMENT SINGLES



Utility [0,1] 0.36 0.53 0.53 0.50


Utility [0,1] 0.49 0.48 0.46 0.49

Power Level W 34 50 66 82 33.2%

Utility [0,1] 0.19 0.66 0.79 0.27

Price Level $ 166 243 320 397 56.0%

Utility [0,1] 0.14 1.00 0.78 0.00



CONJOINT ANALYSIS - UTILITIES - SEGMENT PROFESSIONALS



Utility [0,1] 0.18 0.49 0.71 0.72


Utility [0,1] 0.50 0.54 0.51 0.54

Power Level W 52 68 84 100 33.6%

Utility [0,1] 0.12 0.65 0.92 0.41

Price Level $ 329 406 483 560 42.1%

Utility [0,1] 0.00 0.70 1.00 0.40



CONJOINT ANALYSIS - UTILITIES - SEGMENT HIGH EARNERS



Utility [0,1] 0.34 0.54 0.54 0.49


Utility [0,1] 0.45 0.50 0.50 0.46

Power Level W 52 68 84 100 40.3%

Utility [0,1] 0.08 0.46 0.92 0.45

Price Level $ 329 406 483 560 47.8%

Utility [0,1] 0.00 1.00 0.71 0.20



CONJOINT ANALYSIS - UTILITIES - SEGMENT OTHERS



Utility [0,1] 0.28 0.64 0.64 0.57


Utility [0,1] 0.50 0.57 0.54 0.53

Power Level W 19 35 51 67 29.6%

Utility [0,1] 0.28 0.72 0.87 0.27

Price Level $ 100 177 254 331 49.4%

Utility [0,1] 0.38 1.00 0.76 0.00



CONSUMER SURVEY - VODITE MARKET

CONSUMER SURVEY - BRAND AWARENESS BY SEGMENT

Firm Brand Innovs Adopters Followers Total

A VAXX 6.4% 10.5% 7.4% 7.7%

VAVA 11.0% 10.0% 11.1% 10.7%

O VODO 8.1% 10.1% 22.5% 9.9%

U VUAA 33.4% 55.8% 56.7% 42.1%

VUKK 48.4% 40.5% 58.5% 46.8%

CONSUMER SURVEY - PURCHASE INTENTIONS


A VAXX 0.2% 0.4% 5.5% 1.1%

VAVA 4.4% 0.5% 5.7% 3.4%

O VODO 0.2% 0.4% 12.8% 2.2%

U VUAA 5.0% 95.3% 41.5% 37.2%

VUKK 90.2% 3.4% 34.5% 56.1%

Total 100.0% 100.0% 100.0% 100.0%

CONSUMER SURVEY - SHOPPING HABITS

Segment Specialty stores Depart. stores Mass Merchandis. Total

Innovators 73.7% 16.8% 9.5% 100.0%

Early Adopters 56.4% 24.5% 19.1% 100.0%

Followers 26.4% 35.5% 38.2% 100.0%

Total 64.6% 20.7% 14.8% 100.0%



CONSUMER PANEL - VODITE MARKET

CONSUMER PANEL - MARKET SHARES BASED ON UNIT SALES


A VAXX 0.1% 0.1% 2.0% 0.2%

VAVA 0.2% 0.0% 0.3% 0.2%

O VODO 0.1% 0.2% 8.7% 0.8%

U VUAA 4.5% 96.0% 50.3% 36.2%

VUKK 95.1% 3.7% 38.7% 62.6%

Total 100.0% 100.0% 100.0% 100.0%

Total sales (U) 135 399 67 677 17 855 220 931




DISTRIBUTION PANEL - VODITE MARKET

DISTRIBUTION PANEL - MARKET SHARES BASED ON UNIT SALES

Firm Brand Specialty stores Depart. stores Mass Merchandis. Total

A VAXX 0.1% 0.3% 0.8% 0.2%

VAVA 0.2% 0.1% 0.2% 0.2%

O VODO 0.2% 1.2% 3.4% 0.8%

U VUAA 28.0% 47.0% 63.4% 36.2%

VUKK 71.5% 51.4% 32.2% 62.6%

Total 100.0% 100.0% 100.0% 100.0%

Total sales (U) 148 184 46 369 26 378 220 931


DISTRIBUTION PANEL - DISTRIBUTION COVERAGE BY CHANNEL

Firm Brand Specialty stores Depart. stores Mass Merchandis.

A VAXX 19.7% 17.5% 24.9%

VAVA 0.5% 0.5% 0.5%

O VODO 19.6% 34.4% 55.0%

U VUAA 51.4% 56.9% 45.2%

VUKK 64.2% 54.4% 6.3%

Total number of outlets 27 727 6 661 12 149



SEMANTIC SCALES - VODITE MARKET

SEMANTIC SCALES - IDEAL VALUES (1 TO 7)

Segment Autonomy Max Freq Diameter Design Weight Price

Innovs 5.64 5.43 4.30 3.82 4.03 5.80

Adopters 5.06 4.43 3.12 4.51 3.57 4.79

Followers 4.74 4.34 3.78 4.74 3.93 3.31

Importance of characteristic (1) 6 10 3 3 2 10

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

SEMANTIC SCALES - BRAND PERCEPTIONS (1 TO 7)

Firm Brand Autonomy Max Freq Diameter Design Weight Price

A VAXX 4.04 3.55 4.01 1.78 6.50 5.20

VAVA 5.81 5.92 5.13 3.43 6.50 6.11

O VODO 3.43 3.79 3.59 1.50 4.00 3.82

U VUAA 5.52 4.56 4.67 3.48 4.24 4.94

VUKK 5.60 5.36 4.71 3.48 4.26 6.04



MULTIDIMENSIONAL SCALING - VODITE MARKET

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

Segment Efficacy Flexibility Economy

Innovs 7.4 6.0 -12.0

Adopters 3.0 6.1 -5.2

Followers 2.8 3.4 4.6

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

Firm Brand Efficacy Flexibility Economy

A VAXX -5.4 -2.9 -8.0

VAVA 9.5 2.3 -14.0

O VODO -5.1 -1.6 1.2

U VUAA 2.3 4.7 -6.3

VUKK 6.6 5.0 -13.6

MULTIDIMENSIONAL SCALINGINFLUENCE OF PRODUCT CHARACTERISTICS ON MDS DIMENSIONS

Autonomy Max Freq Diameter Design Weight Price

(M) (KHz) (Mm) (Index) (g) ($)

Efficacy Strong Strong Strong Moderate Slight Slight

Flexibility Moderate Slight Moderate Moderate Moderate Slight

Economy Slight Slight Slight Slight Slight Strong



MARKET FORECAST - VODITE MARKET

MARKET FORECAST - SEGMENT SIZES AND GROWTH RATES

Segment Innovs Adopters Followers Total

Segment sizes in KU

Actual size this period 135 68 18 221

Forecasted size next period 151 113 46 310

Forecasted size in five periods 59 283 1 153 1 495

Relative segment sizes in %

Actual size this period 61.3% 30.6% 8.1% 100.0%

Forecasted size next period 48.6% 36.4% 15.0% 100.0%

Forecasted size in five periods 4.0% 18.9% 77.1% 100.0%

Forecasted growth rates in %

Next period 11.3% 66.4% 160.0% 40.2%

Total over next five periods -56.2% 317.6% 6356.4% 576.5%

Average over next five periods -15.2% 33.1% 130.1% 46.6%



COMPETITIVE ADVERTISING - VODITE MARKET

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

Firm Brand Innovs Adopters Followers TotalA VAXX 200 850 200 1 250

VAVA 0 0 0 0TOTAL 200 850 200 1 250

O VODO 250 250 1 200 1 700U VUAA 1 250 3 700 1 050 6 000

VUKK 3 350 1 050 800 5 200TOTAL 4 600 4 750 1 850 11 200

TOTAL 5 050 5 850 3 250 14 150AVERAGE BY BRAND 1 010 1 170 650 2 830AVERAGE BY FIRM 1 683 1 950 1 083 4 717

COMPETITIVE SALES FORCE - VODITE MARKET

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

Firm Brand Specialty stores Depart. stores Mass Merchandis. TotalA VAXX 5 2 1 8

VAVA 0 0 0 0TOTAL 5 2 1 8

O VODO 5 5 5 15U VUAA 30 13 3 46

VUKK 35 8 0 43TOTAL 65 21 3 89

TOTAL 75 28 9 112AVERAGE BY BRAND 15 6 2 22AVERAGE BY FIRM 25 9 3 37



ADVERTISING EXPERIMENT - VODITE MARKET

EXPECTED RESULTS WITH INCREASED ADVERTISING BUDGET

VAXX VAVA

Change in awareness (%)

Innovators 0.1% 0.0%

Early Adopters 1.0% 0.0%

Followers 0.3% 0.0%


Innovators 0.0% 0.0%

Early Adopters 0.1% 0.0%

Followers 0.2% 0.0%

Change in contribution after marketing (K$) -232 0

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 - VODITE MARKET

EXPECTED RESULTS WITH INCREASED SALES FORCE

VAXX VAVA

Change in number of distributors (U)

Specialty stores 1 037 0

Depart. stores 246 0

Mass Merchandis. 698 0


Specialty stores 0.1% 0.0%

Depart. stores 0.1% 0.0%

Mass Merchandis. 0.2% 0.0%

Change in contribution after marketing (K$) -87 0

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 - VODITE MARKET

CONJOINT ANALYSIS - RELATIVE IMPORTANCE OF CHARACTERISTICS

Segment Autonomy Max Freq Diameter Price Total

Innovs 14.3% 40.0% 2.2% 43.5% 100.0%

Adopters 12.5% 32.0% 2.0% 53.5% 100.0%

Followers 11.0% 25.4% 3.0% 60.6% 100.0%

CONJOINT ANALYSIS - UTILITIES - SEGMENT INNOVATORS


Autonomy Level M 52 68 84 100 14.3%

Utility [0,1] 0.49 0.82 0.80 0.53


Utility [0,1] 0.04 0.86 0.96 0.78

Diameter Level Mm 37 52 67 82 2.2%

Utility [0,1] 0.63 0.67 0.68 0.65

Price Level $ 511 663 815 967 43.5%

Utility [0,1] 0.00 0.99 1.00 0.65



CONJOINT ANALYSIS - UTILITIES - SEGMENT EARLY ADOPTERS



Utility [0,1] 0.44 0.65 0.61 0.42


Utility [0,1] 0.21 0.65 0.81 0.44


Utility [0,1] 0.51 0.54 0.55 0.53

Price Level $ 403 555 707 859 53.5%

Utility [0,1] 0.00 1.00 0.75 0.37



CONJOINT ANALYSIS - UTILITIES - SEGMENT FOLLOWERS



Utility [0,1] 0.47 0.65 0.63 0.48


Utility [0,1] 0.45 0.75 0.70 0.33


Utility [0,1] 0.53 0.57 0.58 0.54

Price Level $ 240 392 544 696 60.6%

Utility [0,1] 0.35 0.88 1.00 0.00


Date post:	03-Oct-2014
Category:	Documents
Upload:	nishant-aggarwal
View:	42 times
Download:	0 times

Practice a Annual Report p06

Documents