Sheet1COMPANY REPORTINDUSTRY F6M2C0 - FIRM ABased on scenario F6M2C0PERIOD 7Michael CapellaStrategic Marketing Management1/25/2011 -->4/26/2011Villanova UniversityUnited StatesCOMPANY RESULTSCOMPANY SCORECARDUnitAnnual resultsEvolution since P0Period 6Period 7%changeRatio P7/P0Average growthMarket shareTotal%$3.4%2.7%-21.7%x 0.16-23.0%Sonite market%$3.8%3.2%-16.9%x 0.19-21.0%Vodite market%$2.5%2.0%-21.7%--Retail salesTotalK$35,42434,926-1.4%x 0.53-8.6%Sonite marketK$27,26124,235-11.1%x 0.37-13.2%Vodite marketK$8,16310,69131.0%--ContributionBefore marketingK$11,83311,453-3.2%x 0.52-8.8%After marketingK$4,2243,550-16.0%x 0.21-19.8%NetK$3,6402,954-18.9%x 0.18-21.7%Cumulative netK$92,50595,4583.2%x 5.8328.6%Shareholder valueStock price indexBase 1000510494-3.1%x 0.49-9.6%Current return on investmentRatio0.440.35-21.8%x 0.12-26.5%Cumulative return on investmentRatio1.841.63-11.7%x 0.54-8.4%COMPANY PERFORMANCEUnitTotalSonite marketVodite marketSalesUnits soldU93,28481,89411,391Average retail price$374296939Average selling price$244195602RevenuesK$22,80515,9496,856ProductionUnits producedU64,00060,0004,000Cost of goods soldK$-10,327-6,808-3,519Inventory holding costK$-1,025-237-788Inventory disposal lossK$000Contribution before marketingK$11,4538,9042,549MarketingAdvertising expendituresK$-4,515-2,515-2,000Advertising research expendituresK$-825-475-350Sales forceK$-2,563-1,860-704Contribution after marketingK$3,5504,054-504Other expensesMarket research studiesK$-596-180-379Research and developmentK$000Interest paidK$0Exceptional cost or profitK$0Net contributionK$2,954Next period budgetK$8,700BRAND RESULTSCONTRIBUTION BY BRANDSonite BrandsUnitTotalSAMASALTSAGABase R&D projectPSAMAPSALTPSAMASalesUnits soldU81,89422,57231,86527,457Average retail price$296197445204Average selling price$195135286137RevenuesK$15,9493,0559,1253,769ProductionUnits producedU60,00028,00020,00012,000Current unit transfer cost$-5512855Average unit transfer cost$835512755Cost of goods soldK$-6,808-1,246-4,045-1,516Units in inventoryU38,2695,51511,70121,053Inventory holding costK$-237-24-120-93Inventory disposal lossK$0000Contribution before marketingK$8,9041,7844,9602,159MarketingAdvertising expendituresK$-2,515-450-1,365-700Advertising research expendituresK$-475-50-275-150Sales forceK$-1,860-377-779-704Contribution after marketingK$4,0549072,541606CONTRIBUTION BY BRANDVodite BrandsUnitTotalVASEBase R&D projectPVA01SalesUnits soldU11,39111,391Average retail price$939939Average selling price$602602RevenuesK$6,8566,856ProductionUnits producedU4,0004,000Current unit transfer cost$-309Average unit transfer cost$309309Cost of goods soldK$-3,519-3,519Units in inventoryU31,87731,877Inventory holding costK$-788-788Inventory disposal lossK$00Contribution before marketingK$2,5492,549MarketingAdvertising expendituresK$-2,000-2,000Advertising research expendituresK$-350-350Sales forceK$-704-704Contribution after marketingK$-504-504MARKET SHARES AND DISTRIBUTION COVERAGESonite BrandsUnitTotalSAMASALTSAGAMarket shares%U3.7%1.0%1.4%1.2%%$3.2%0.6%1.9%0.7%Distribution coverage in %Specialty stores (27,273 outlets)%11.2%41.8%36.0%Depart. stores (6,638 outlets)%16.0%29.1%21.7%Mass Merchandis. (12,603 outlets)%12.6%11.7%14.9%MARKET SHARES AND DISTRIBUTION COVERAGEVodite BrandsUnitTotalVASEMarket shares%U1.4%1.4%%$2.0%2.0%Distribution coverage in %Specialty stores (27,273 outlets)%42.9%Depart. stores (6,638 outlets)%40.3%Mass Merchandis. (12,603 outlets)%16.3%RESEARCH & DEVELOPMENT RESULTSSONITE R&D PROJECTSPhysical CharacteristicsBase Cost $Allocated Budget K$NameWeightDesignVolumeMax FreqPowerCurrentMinimumCumulativeReq. for(Kg)(Index)(Dm3)(KHz)(W)realisticcompletionPSAMA18375251285571,500Avail. in P-1PSALT1384040751971782,500Avail. in P-1PSAGA1777236731771611,250Avail. in P5(*) Projects identified in bold have been completed in this period.VODITE R&D PROJECTSPhysical CharacteristicsBase Cost $Allocated Budget K$NameAutonomyMax FreqDiameterDesignWeightCurrentMinimumCumulativeReq. for(M)(KHz)(Mm)(Index)(g)realisticcompletionPVA017514646582702708,700Avail. in P5(*) Projects identified in bold have been completed in this period.CUMULATIVE RESULTSCUMULATIVE BRAND RESULTSSalesProductionMarketingBrandResults since periodUnits soldRetail salesRevenuesCost of goods soldInventory costsAdvertisingSales forceContrib. after mktg.KUK$K$K$K$K$K$K$SAMA035179,10253,57920,9696267,8163,53420,635SALT0569277,631178,98375,91769611,9706,09484,306SAGA119140,62427,53510,8401,0856,5903,1795,842VASE62018,85512,1206,1641,7394,7001,442-1,925Total Sonite1,111397,357260,097107,7262,40626,37612,807110,782Total Vodite2018,85512,1206,1641,7394,7001,442-1,925Total all markets1,131416,211272,217113,8904,14631,07614,249108,857CUMULATIVE COMPANY PERFORMANCEUnitTotalSonite marketVodite marketSalesUnits soldKU1,1311,11120Retail salesK$416,211397,35718,855RevenuesK$272,217260,09712,120ProductionCost of goods soldK$-113,890-107,726-6,164Inventory holding and disposal costK$-4,146-2,406-1,739MarketingTotal advertising expendituresK$-31,076-26,376-4,700Sales force expendituresK$-14,249-12,807-1,442Contribution after marketingK$108,857110,782-1,925Other expensesMarket research studiesK$-3,449-2,377-902Research and developmentK$-9,950-1,250-8,700Interest paidK$0Exceptional cost or profitK$0Net contributionK$95,458DECISION SUMMARYDECISION SUMMARY - BRAND MANAGEMENTSonite BrandsSAMASALTSAGABase R&D projectPSAMAPSALTPSAMAProduction planningKU352515Inventory sold to trading companyKU000Recommended retail price$207450212Advertising budgetK$4501,365700Advertising research budgetK$50275150Buffs500Singles20070Targeted segments in %Professionals5100High earners5900Others65030Perceptual ObjectivesDimension 1EconomyPriceEconomyObjective 1[1,7] or [-20,+20]14.05.614.0Dimension 2ConveniencePowerConvenienceObjective 2[1,7] or [-20,+20]-2.04.4-3.0DECISION SUMMARY - BRAND MANAGEMENTVodite BrandsVASEBase R&D projectPVA01Production planningKU5Inventory sold to trading companyKU0Recommended retail price$950Advertising budgetK$2,000Advertising research budgetK$350Innovators10Targeted segments in %Early Adopters70Followers20Perceptual ObjectivesDimension 1EfficacyObjective 1[1,7] or [-20,+20]7.0Dimension 2FlexibilityObjective 2[1,7] or [-20,+20]7.0DECISION SUMMARY - SALES FORCE MANAGEMENTDistribution ChannelsSpecialty storesDepart. storesMass Merchandis.Number of salespeople364026Sales force effort allocation by brand (%)SAMA61527SALT283823SAGA252238VASE422512TOTAL100100100DECISION SUMMARY - MARKET RESEARCH STUDIESStudyMarket covered by studyAll marketsSoniteVoditeIndustry benchmarkingYes--Consumer survey-NoYesConsumer panel-NoYesDistribution panel-NoYesSemantic scales-YesYesMultidimensional scaling-YesYesMarket forecast-YesYesCompetitive advertising-YesYesCompetitive sales force-YesYesAdvertising experiment-NoNoSales force experiment-NoNoConjoint analysis-YesYesDECISION SUMMARY - LOAN AND BUDGET MODIFICATIONCorporate finance departmentIncrease in budgetK$0Decrease in budgetK$0BankCapital borrowedK$0Duration in number of periodsInterest rate%NEWSLETTERINDUSTRY F6M2C0 - FIRM ABased on scenario F6M2C0PERIOD 7Michael CapellaStrategic Marketing Management1/25/2011 -->4/26/2011Villanova UniversityUnited StatesSTOCK MARKET AND KEY PERFORMANCE INDICATORSSTOCK MARKETFirmStock price indexMarket capitalizationNet contribution (K$)base 1000K$Period 7CumulativeE4,5151,496,981221,177623,186I1,466486,12136,286253,333Y1,316436,16936,081257,157U1,253415,39235,282195,291O1,142378,75924,496201,857A494163,9202,95495,458COMPANY KEY PERFORMANCE INDICATORS(period 7 values)UnitAEIOUYMarket shareTotal%$2.7%49.1%14.8%10.0%12.5%10.9%Sonite market%$3.2%40.4%13.8%14.8%10.3%17.4%Vodite market%$2.0%61.3%16.1%3.3%15.6%1.7%Retail salesTotalK$34,926642,739193,333130,960163,826142,120Sonite marketK$24,235307,272104,974112,86678,473132,622Vodite marketK$10,691335,46688,35918,09485,3539,498ContributionBefore marketingK$11,453245,52053,23533,32545,93154,631After marketingK$3,550224,49636,83225,01836,93236,714NetK$2,954221,17736,28624,49635,28236,081Cumulative netK$95,458623,186253,333201,857195,291257,157Shareholder valueStock price indexBase 10004944,5151,4661,1421,2531,316Market capitalizationK$163,9201,496,981486,121378,759415,392436,169Current return on investmentRatio0.359.092.142.773.311.95Cumulative return on investmentRatio1.635.212.742.662.812.78COMPANY KEY PERFORMANCE INDICATORS(% change from period 6 to period 7)AEIOUYMarket shareTotal-21.7%19.5%-13.1%-2.2%-2.5%-29.3%Sonite market-16.9%31.1%-9.5%10.4%-29.0%-21.1%Vodite market-21.7%-3.4%-22.5%1.2%69.8%124.5%Retail salesTotal-1.4%50.6%9.5%23.2%22.8%-11.0%Sonite market-11.1%40.3%-3.2%18.1%-24.1%-15.6%Vodite market31.0%61.5%29.6%69.3%184.0%275.4%ContributionBefore marketing-3.2%76.2%-11.8%1.6%25.1%-13.4%After marketing-16.0%88.5%-21.3%1.9%31.4%-21.7%Net-18.9%88.2%-14.3%10.4%32.3%-22.1%Cumulative net3.2%55.0%16.7%13.8%22.1%16.3%Shareholder valueStock price index-3.1%35.4%-9.5%3.7%4.9%-11.0%Market capitalization-3.1%35.4%-9.5%3.7%4.9%-11.0%Current return on investment-21.8%68.9%-9.0%32.9%24.8%-29.7%Cumulative return on investment-11.7%23.5%-4.7%0.6%3.4%-7.0%ECONOMIC VARIABLES AND COSTSECONOMIC VARIABLESUnitActual valueForecast value%changePeriod 7Period 8GNP growth rates%2.0%2.0%0.0%Inflation rate%2.0%2.0%0.0%ProductionInventory holding cost per annum% transf. cost8.0%8.0%0.0%Loss incurred for inventory disposal% transf. cost20.0%20.0%0.0%Sales forceSalesperson operating cost$24,83925,3362.0%Salesperson hiring and training cost$3,7263,8002.0%Salesperson firing cost$6,2106,3342.0%COST OF MARKET RESEARCH STUDIES NEXT PERIOD(all numbers in K$)StudyMarket covered by studyAll marketsSoniteVoditeIndustry benchmarking38Consumer survey7651Consumer panel12789Distribution panel7663Semantic scales1313Multidimensional scaling4444Market forecast2525Competitive advertising3838Competitive sales force1919Advertising experiment3232Sales force experiment4444Conjoint analysis4444Total market38538462Total if all studies ordered1,038INFORMATION ON SONITE MARKETCHARACTERISTICS OF MARKETED SONITE BRANDSPhysical characteristicsFirmBrandNew orWeightDesignVolumeMax FreqPowerBase costRetail priceModified(Kg)(Index)(Dm3)(KHz)(W)($)($)ASAMANo18375251285207SALTNo138404075197450SAGANo18375251285212ESEMICost impr.16670242688230SELFNo148473054151475SELLNo138404075197412SEXYNo157553666165285SEEDNo138474283189530ISIROModified20384243092229SIBIModified169682556196470SIBONo138404075197525SISANo188733569159275OSOLDNo18375251285225SONOModified158504384190525SOSONo187723367151307SOHINo138404075197485USUSINo18375251285220SULINo138404075197475SUCKNo156603860167280YSYGUNo18375251285225SYCANo138404075197510SYCONo169723368185465INFORMATION ON SONITE MARKET - SALES AND MARKET SHARESFirmBrandVolume soldRetail salesPeriod 6Period 7ChangeSharePeriod 6Period 7ChangeShareUU%%UK$K$%%$ASAMA24,94322,572-9.5%1.0%4,7464,446-6.3%0.6%SALT35,62731,865-10.6%1.4%17,45014,190-18.7%1.9%SAGA24,66627,45711.3%1.2%5,0655,59810.5%0.7%ESEMI312,000540,00073.1%24.2%65,179117,62580.5%15.5%SELF141,600213,81551.0%9.6%66,338100,60151.6%13.2%SELL59,39243,726-26.4%2.0%23,06217,936-22.2%2.4%SEXY144,049155,9178.2%7.0%42,44143,5692.7%5.7%SEED43,33352,79721.8%2.4%22,01727,54325.1%3.6%ISIRO40,74537,625-7.7%1.7%8,9908,222-8.5%1.1%SIBI72,13758,281-19.2%2.6%35,16527,109-22.9%3.6%SIBO87,29380,304-8.0%3.6%44,66441,450-7.2%5.5%SISA62,043104,43168.3%4.7%19,61628,19343.7%3.7%OSOLD16,8416,020-64.3%0.3%3,8271,291-66.3%0.2%SONO81,009100,14623.6%4.5%40,73851,75227.0%6.8%SOSO154,379192,02124.4%8.6%46,54857,79924.2%7.6%SOHI9,3714,253-54.6%0.2%4,4672,024-54.7%0.3%USUSI56,46442,344-25.0%1.9%11,7918,823-25.2%1.2%SULI73,25545,954-37.3%2.1%34,36321,586-37.2%2.8%SUCK204,033174,529-14.5%7.8%57,20748,063-16.0%6.3%YSYGU47,86343,304-9.5%1.9%10,3419,318-9.9%1.2%SYCA121,262118,492-2.3%5.3%59,37159,4790.2%7.8%SYCO188,156138,626-26.3%6.2%87,41063,825-27.0%8.4%Total Sonite market2,000,4612,234,48111.7%100.0%710,796760,4417.0%100.0%INFORMATION ON VODITE MARKETCHARACTERISTICS OF MARKETED VODITE BRANDSPhysical characteristicsFirmBrandNew orAutonomyMax FreqDiameterDesignWeightBase costRetail priceModified(M)(KHz)(Mm)(Index)(g)($)($)AVASENo751464658270950EVEALNo751464658296845VETONo701444746309750VESTNo601253854276680IVIAANo701460645340750VIIANo701460645340890VIFANew711355385265685OVOOMNo601440840395735UVULVNo601230530324670YVYOUNo701040446286680VYUZNo701040446286690INFORMATION ON VODITE MARKET - SALES AND MARKET SHARESFirmBrandVolume soldRetail salesPeriod 6Period 7ChangeSharePeriod 6Period 7ChangeShareUU%%UK$K$%%$AVASE8,73211,39130.4%1.4%8,16310,69131.0%2.0%EVEAL13,61811,478-15.7%1.4%12,4179,598-22.7%1.8%VETO139,68197,405-30.3%12.2%100,92071,945-28.7%13.1%VEST156,754390,046148.8%48.7%94,389253,923169.0%46.4%IVIAA58,41659,4381.8%7.4%42,91943,7421.9%8.0%VIIA26,16728,0707.3%3.5%25,25724,755-2.0%4.5%VIFA030,237-3.8%019,862-3.6%OVOOM14,92825,07267.9%3.1%10,68718,09469.3%3.3%UVULV45,963132,987189.3%16.6%30,05785,353184.0%15.6%YVYOU2,2228,537284.3%1.1%1,3815,570303.3%1.0%VYUZ1,6235,925265.0%0.7%1,1493,928241.9%0.7%Total Vodite market468,104800,58571.0%100.0%327,340547,46267.2%100.0%MARKET RESEARCH STUDIESINDUSTRY F6M2C0 - FIRM ABased on scenario F6M2C0PERIOD 7Michael CapellaStrategic Marketing Management1/25/2011 -->4/26/2011Villanova UniversityUnited StatesINDUSTRY BENCHMARKINGBENCHMARKING - ESTIMATED OVERALL PERFORMANCEUnitAEIOUYSalesRetail salesK$34,926642,739193,333130,960163,826142,120RevenuesK$22,805428,156125,20884,420108,85892,825ProductionCost of goods soldK$-10,327-180,623-70,858-50,940-62,801-36,046Inventory holding costK$-1,025-2,013-1,115-1-126-2,148Inventory disposal lossK$00-0-15400Contribution before marketingK$11,453245,52053,23533,32545,93154,631MarketingAdvertising expendituresK$-4,515-13,700-9,095-4,650-5,700-13,140Advertising research expendituresK$-825-1,860-1,690-900-445-1,200Sales forceK$-2,563-5,465-5,617-2,757-2,854-3,577Contribution after marketingK$3,550224,49636,83225,01836,93236,714Other expensesMarket research studiesK$-596-509-546-522-453-633Research and developmentK$0-2,81000-1,1970Interest paidK$000000Exceptional cost or profitK$000000Net contributionK$2,954221,17736,28624,49635,28236,081Next period budgetK$8,70024,85014,5009,80014,10014,450BENCHMARKING - ESTIMATED PERFORMANCE IN SONITE MARKETUnitAEIOUYSalesRetail salesK$24,235307,272104,974112,86678,473132,622RevenuesK$15,949204,14168,07372,69550,88386,444ProductionCost of goods soldK$-6,808-86,405-38,239-39,147-25,910-31,864Inventory holding costK$-237-723-416-1-126-360Inventory disposal lossK$00-0-15400Contribution before marketingK$8,904117,01329,41833,39324,84754,220MarketingAdvertising expendituresK$-2,515-6,000-4,825-4,150-3,700-8,600Advertising research expendituresK$-475-860-960-800-295-600Sales forceK$-1,860-3,130-3,057-2,136-1,853-2,484Contribution after marketingK$4,054107,02320,57626,30718,99942,536BENCHMARKING - ESTIMATED PERFORMANCE IN VODITE MARKETUnitAEIOUYSalesRetail salesK$10,691335,46688,35918,09485,3539,498RevenuesK$6,856224,01557,13511,72557,9766,381ProductionCost of goods soldK$-3,519-94,218-32,620-11,793-36,891-4,181Inventory holding costK$-788-1,290-69900-1,789Inventory disposal lossK$000000Contribution before marketingK$2,549128,50723,816-6821,084411MarketingAdvertising expendituresK$-2,000-7,700-4,270-500-2,000-4,540Advertising research expendituresK$-350-1,000-730-100-150-600Sales forceK$-704-2,335-2,560-621-1,001-1,093Contribution after marketingK$-504117,47216,256-1,28917,933-5,822SEMANTIC SCALES - SONITE MARKETSEMANTIC SCALES - IDEAL VALUES (1 TO 7)SegmentWeightDesignVolumeMax FreqPowerPriceBuffs3.842.982.945.615.454.80Singles5.674.945.095.205.152.37Pros3.385.673.205.925.806.35HiEarners4.716.214.673.814.335.61Others5.224.195.983.452.642.10Importance of characteristic (1)1423610(1) On a scale from 1 to 10 - 1 = Not important - 10 = Very importantSEMANTIC SCALES - BRAND PERCEPTIONS (1 TO 7)FirmBrandWeightDesignVolumeMax FreqPowerPriceASAMA5.831.505.113.651.732.30SALT2.725.502.465.705.065.82SAGA5.801.665.053.631.702.50ESEMI4.763.384.803.542.442.15SELF3.265.612.884.474.125.63SELL2.775.082.565.745.464.82SEXY4.004.773.545.265.002.34SEED2.735.662.915.915.886.38ISIRO6.501.505.543.522.122.31SIBI3.876.013.764.434.595.96SIBO2.715.462.455.845.666.16SISA5.935.415.165.125.232.32OSOLD5.891.505.243.591.652.23SONO3.595.662.915.975.866.19SOSO5.895.165.024.835.162.51SOHI2.695.662.395.215.006.08USUSI5.791.725.043.681.672.35SULI2.715.482.445.775.555.83SUCK3.894.043.775.614.862.29YSYGU5.891.505.243.672.092.11SYCA2.705.562.425.575.736.24SYCO4.726.274.584.564.445.53MULTIDIMENSIONAL SCALING - SONITE MARKETMULTIDIMENSIONAL SCALING - IDEAL VALUES (-20 TO +20)SegmentEconomyPerformanceConvenienceBuffs-5.49.9-3.3Singles10.97.81.8Pros-15.612.29.3HiEarners-10.71.38.9Others12.6-7.7-2.6MULTIDIMENSIONAL SCALING - BRAND PERCEPTIONS (-20 TO +20)FirmBrandEconomyPerformanceConvenienceASAMA11.3-11.9-14.6SALT-12.18.19.9SAGA10.0-12.1-13.5ESEMI12.4-8.6-4.5SELF-10.91.49.5SELL-5.510.27.8SEXY11.17.14.2SEED-15.912.610.0ISIRO11.2-10.2-16.1SIBI-13.13.79.8SIBO-14.411.39.7SISA11.28.03.7OSOLD11.8-12.4-15.5SONO-14.612.69.5SOSO10.07.22.8SOHI-13.97.010.8USUSI11.0-12.2-13.2SULI-12.210.79.8SUCK11.47.00.6YSYGU12.6-10.1-16.9SYCA-15.011.310.3SYCO-10.23.19.3MULTIDIMENSIONAL SCALINGINFLUENCE OF PRODUCT CHARACTERISTICS ON MDS DIMENSIONSWeightDesignVolumeMax FreqPowerPrice(Kg)(Index)(Dm3)(KHz)(W)($)EconomySlightSlightSlightSlightSlightVery strongPerformanceSlightModerateSlightModerateVery strongSlightConvenienceModerateVery strongModerateSlightStrongModerateMARKET FORECAST - SONITE MARKETMARKET FORECAST - SEGMENT SIZES AND GROWTH RATESSegmentBuffsSinglesProsHiEarnersOthersTotalSegment sizes in KUActual size this period1165983484107622,234Forecasted size next period1066413193988552,319Forecasted size in five periods758432273501,3552,851Relative segment sizes in %Actual size this period5.2%26.8%15.6%18.4%34.1%100.0%Forecasted size next period4.6%27.6%13.8%17.1%36.9%100.0%Forecasted size in five periods2.6%29.6%8.0%12.3%47.5%100.0%Forecasted growth rates in %Next period-8.2%7.1%-8.2%-3.1%12.2%3.8%Total over next five periods-34.8%40.9%-34.8%-14.6%77.8%27.6%Average over next five periods-8.2%7.1%-8.2%-3.1%12.2%5.0%COMPETITIVE ADVERTISING - SONITE MARKETCOMPETITIVE ADVERTISING - ESTIMATED TOTAL EXPENDITURES(all numbers in K$)FirmBrandBuffsSinglesProsHiEarnersOthersTotalASAMA501005050200450SALT1501502509501501,650SAGA100400100100200900TOTAL3006504001,1005503,000ESEMI1001001001007001,100SELF1001001008501001,250SELL550100100100100950SEXY1509001501501501,500SEED2002001,3502002002,150TOTAL1,1001,4001,8001,4001,2506,950ISIRO1501501501501,0501,650SIBI1501501501,0501501,650SIBO1001006501001001,050SISA1509501501501501,550TOTAL5501,3501,1001,4501,4505,900OSOLD00005050SONO3002001,5502002002,450SOSO2001,2002002004502,250SOHI000000TOTAL5001,4001,7504007004,750USUSI1001001001007001,100SULI1001008501001001,250SUCK1501,0501501501501,650TOTAL3501,2501,1003509504,000YSYGU3003003003002,0503,250SYCA3503501,5004002502,850SYCO3003004501,8503003,200TOTAL9509502,2502,5502,6009,300TOTAL3,7507,0008,4007,2507,50033,900AVERAGE BY BRAND1703183823303411,541AVERAGE BY FIRM6251,1671,4001,2081,2505,650COMPETITIVE SALES FORCE - SONITE MARKETCOMPETITIVE SALES FORCES - ESTIMATED SIZES(in number of salespeople)FirmBrandSpecialty storesDepart. storesMass Merchandis.TotalASAMA26715SALT1015631SAGA991028TOTAL21302374ESEMI6131837SELF710522SELL5218SEXY13131137SEED106622TOTAL414441126ISIRO491225SIBI1017734SIBO1491033SISA1111931TOTAL394638123OSOLD1225SONO18101038SOSO14141038SOHI1225TOTAL34282486USUSI181120SULI117422SUCK1412632TOTAL26272174YSYGU5101227SYCA22111144SYCO715729TOTAL343630100TOTAL195211177583AVERAGE BY BRAND910827AVERAGE BY FIRM33353097CONJOINT ANALYSIS - SONITE MARKETCONJOINT ANALYSIS - RELATIVE IMPORTANCE OF CHARACTERISTICSSegmentDesignMax FreqPowerPriceTotalBuffs11.6%1.0%25.2%62.3%100.0%Singles18.0%2.8%32.7%46.5%100.0%Pros9.8%5.0%44.1%41.1%100.0%HiEarners14.9%4.5%32.9%47.7%100.0%Others20.0%2.6%32.9%44.4%100.0%CONJOINT ANALYSIS - UTILITIES - SEGMENT BUFFSUnit1234ImportanceDesignLevelIndex456711.6%Utility[0,1]0.220.370.410.37Max FreqLevelKHz263442501.0%Utility[0,1]0.350.340.340.34PowerLevelW5167839925.2%Utility[0,1]0.140.540.510.18PriceLevel$28936944952962.3%Utility[0,1]0.001.000.280.08CONJOINT ANALYSIS - UTILITIES - SEGMENT SINGLESUnit1234ImportanceDesignLevelIndex678918.0%Utility[0,1]0.180.560.560.51Max FreqLevelKHz243240482.8%Utility[0,1]0.470.410.470.45PowerLevelW4763799532.7%Utility[0,1]0.150.850.650.16PriceLevel$12820828836846.5%Utility[0,1]0.401.000.410.00CONJOINT ANALYSIS - UTILITIES - SEGMENT PROFESSIONALSUnit1234ImportanceDesignLevelIndex789109.8%Utility[0,1]0.320.530.530.48Max FreqLevelKHz263442505.0%Utility[0,1]0.420.520.480.44PowerLevelW52688410044.1%Utility[0,1]0.060.461.000.33PriceLevel$34042050058041.1%Utility[0,1]0.000.150.870.84CONJOINT ANALYSIS - UTILITIES - SEGMENT HIGH EARNERSUnit1234ImportanceDesignLevelIndex7891014.9%Utility[0,1]0.170.430.480.48Max FreqLevelKHz142230384.5%Utility[0,1]0.420.400.320.42PowerLevelW3147637932.9%Utility[0,1]0.080.570.770.15PriceLevel$34042050058047.7%Utility[0,1]0.001.000.420.13CONJOINT ANALYSIS - UTILITIES - SEGMENT OTHERSUnit1234ImportanceDesignLevelIndex567820.0%Utility[0,1]0.340.580.770.70Max FreqLevelKHz111927352.6%Utility[0,1]0.570.600.590.63PowerLevelW622385432.9%Utility[0,1]0.280.771.000.34PriceLevel$11019027035044.4%Utility[0,1]0.850.970.570.00CONSUMER SURVEY - VODITE MARKETCONSUMER SURVEY - BRAND AWARENESS BY SEGMENTFirmBrandInnovsAdoptersFollowersTotalAVASE32.8%41.7%22.1%26.4%EVEAL61.3%27.2%30.2%31.8%VETO46.8%70.9%32.2%40.3%VEST45.5%37.1%66.3%59.5%IVIAA42.0%48.8%24.7%30.3%VIIA58.3%29.8%23.5%27.1%VIFA18.2%14.5%21.7%20.1%OVOOM19.5%26.1%20.3%21.3%UVULV34.7%36.2%38.8%38.0%YVYOU30.7%27.4%31.7%30.8%VYUZ34.1%34.3%25.5%27.7%CONSUMER SURVEY - PURCHASE INTENTIONSFirmBrandInnovsAdoptersFollowersTotalAVASE5.2%2.7%0.9%1.8%EVEAL22.4%3.1%1.6%4.0%VETO20.9%38.4%2.9%12.9%VEST0.8%3.0%50.8%34.7%IVIAA7.4%20.0%3.4%7.7%VIIA36.9%5.8%1.5%6.1%VIFA0.2%0.4%5.2%3.6%OVOOM5.1%22.7%2.1%7.2%UVULV0.7%2.9%28.2%19.6%YVYOU0.2%0.4%2.0%1.4%VYUZ0.2%0.5%1.4%1.1%Total100.0%100.0%100.0%100.0%CONSUMER SURVEY - SHOPPING HABITSSegmentSpecialty storesDepart. storesMass Merchandis.TotalInnovators71.3%18.2%10.5%100.0%Early Adopters53.6%25.5%20.9%100.0%Followers23.6%34.5%41.8%100.0%Total32.5%31.7%35.8%100.0%CONSUMER PANEL - VODITE MARKETCONSUMER PANEL - MARKET SHARES BASED ON UNIT SALESFirmBrandInnovsAdoptersFollowersTotalAVASE6.6%2.8%0.6%1.4%EVEAL12.8%1.4%0.4%1.4%VETO30.5%45.7%2.2%12.2%VEST1.4%4.8%64.0%48.7%IVIAA11.0%24.8%2.8%7.4%VIIA33.1%4.1%0.6%3.5%VIFA0.3%0.5%4.9%3.8%OVOOM3.3%12.5%0.8%3.1%UVULV0.7%2.7%21.5%16.6%YVYOU0.2%0.4%1.3%1.1%VYUZ0.2%0.4%0.9%0.7%Total100.0%100.0%100.0%100.0%Total sales (U)55,600147,190597,795800,585Total sales (% Total)6.9%18.4%74.7%100.0%DISTRIBUTION PANEL - VODITE MARKETDISTRIBUTION PANEL - MARKET SHARES BASED ON UNIT SALESFirmBrandSpecialty storesDepart. storesMass Merchandis.TotalAVASE2.5%1.3%0.5%1.4%EVEAL3.4%0.6%0.4%1.4%VETO23.7%7.9%5.4%12.2%VEST30.8%54.3%60.3%48.7%IVIAA12.4%6.0%4.0%7.4%VIIA8.1%1.7%0.9%3.5%VIFA2.4%4.4%4.5%3.8%OVOOM4.9%2.9%1.6%3.1%UVULV10.2%19.1%20.3%16.6%YVYOU0.9%1.1%1.3%1.1%VYUZ0.6%0.7%0.8%0.7%Total100.0%100.0%100.0%100.0%Total sales (U)259,778264,786276,022800,585Total sales (% Total)32.4%33.1%34.5%100.0%DISTRIBUTION PANEL - DISTRIBUTION COVERAGE BY CHANNELFirmBrandSpecialty storesDepart. storesMass Merchandis.AVASE42.9%40.3%16.3%EVEAL17.8%6.4%5.9%VETO44.4%30.3%24.0%VEST45.5%57.9%50.9%IVIAA47.6%39.5%27.8%VIIA46.2%25.9%17.8%VIFA34.3%46.3%40.6%OVOOM33.6%40.0%24.5%UVULV36.0%51.3%44.2%YVYOU28.9%28.1%28.8%VYUZ28.9%27.8%28.5%Total number of outlets27,2736,63812,603SEMANTIC SCALES - VODITE MARKETSEMANTIC SCALES - IDEAL VALUES (1 TO 7)SegmentAutonomyMax FreqDiameterDesignWeightPriceInnovs5.555.323.933.963.845.47Adopters5.194.973.124.623.534.77Followers4.903.993.674.704.154.26Importance of characteristic (1)5103327(1) On a scale from 1 to 10 - 1 = Not important - 10 = Very importantSEMANTIC SCALES - BRAND PERCEPTIONS (1 TO 7)FirmBrandAutonomyMax FreqDiameterDesignWeightPriceAVASE5.825.254.583.554.196.01EVEAL5.705.183.973.534.165.70VETO5.234.933.164.513.305.13VEST4.603.933.825.463.904.23IVIAA5.214.944.413.693.235.07VIIA5.535.274.413.533.235.46VIFA5.174.244.001.506.084.64OVOOM4.574.892.885.402.884.80UVULV4.434.382.292.812.274.51YVYOU5.223.312.881.783.304.30VYUZ5.223.272.881.783.304.93MULTIDIMENSIONAL SCALING - VODITE MARKETMULTIDIMENSIONAL SCALING - IDEAL VALUES (-20 TO +20)SegmentEfficacyFlexibilityEconomyInnovs7.06.5-9.8Adopters6.06.7-5.2Followers0.94.0-1.8MULTIDIMENSIONAL SCALING - BRAND PERCEPTIONS (-20 TO +20)FirmBrandEfficacyFlexibilityEconomyAVASE6.06.1-13.4EVEAL5.66.7-11.3VETO5.67.0-7.5VEST1.62.8-1.5IVIAA4.64.9-7.2VIIA6.16.2-9.8VIFA-2.72.6-4.3OVOOM6.65.3-5.3UVULV0.56.3-3.4YVYOU-6.67.4-2.0VYUZ-6.87.4-6.2MULTIDIMENSIONAL SCALINGINFLUENCE OF PRODUCT CHARACTERISTICS ON MDS DIMENSIONSAutonomyMax FreqDiameterDesignWeightPrice(M)(KHz)(Mm)(Index)(g)($)EfficacySlightStrongSlightModerateSlightSlightFlexibilityModerateSlightModerateSlightModerateSlightEconomySlightSlightSlightSlightSlightStrongMARKET FORECAST - VODITE MARKETMARKET FORECAST - SEGMENT SIZES AND GROWTH RATESSegmentInnovsAdoptersFollowersTotalSegment sizes in KUActual size this period56147598801Forecasted size next period581538701,081Forecasted size in five periods14641,7041,782Relative segment sizes in %Actual size this period6.9%18.4%74.7%100.0%Forecasted size next period5.3%14.2%80.5%100.0%Forecasted size in five periods0.8%3.6%95.6%100.0%Forecasted growth rates in %Next period4.0%4.0%45.6%35.1%Total over next five periods-75.3%-56.7%185.1%122.6%Average over next five periods-24.4%-15.4%23.3%17.4%COMPETITIVE ADVERTISING - VODITE MARKETCOMPETITIVE ADVERTISING - ESTIMATED TOTAL EXPENDITURES(all numbers in K$)FirmBrandInnovsAdoptersFollowersTotalAVASE5001,2506002,350EVEAL7501501501,050VETO5502,5505503,650VEST6006002,7503,950TOTAL1,9003,3003,4508,650IVIAA2501,1002501,600VIIA1,1002502501,600VIFA3003001,3001,900TOTAL1,6501,6501,8005,100OVOOM100200300600UVULV3003001,5002,100YVYOU4005501,7002,650VYUZ4006501,5002,550TOTAL8001,2003,2005,200TOTAL5,2507,90010,85024,000AVERAGE BY BRAND4777189862,182AVERAGE BY FIRM8751,3171,8084,000COMPETITIVE SALES FORCE - VODITE MARKETCOMPETITIVE SALES FORCES - ESTIMATED SIZES(in number of salespeople)FirmBrandSpecialty storesDepart. storesMass Merchandis.TotalAVASE1510328EVEAL4116VETO146525VEST17222463TOTAL35293094IVIAA2210739VIIA204327VIFA10131437TOTAL522724103OVOOM1010525UVULV10151540YVYOU67922VYUZ67922TOTAL12141844TOTAL13410595334AVERAGE BY BRAND1210930AVERAGE BY FIRM22181656CONJOINT ANALYSIS - VODITE MARKETCONJOINT ANALYSIS - RELATIVE IMPORTANCE OF CHARACTERISTICSSegmentAutonomyMax FreqDiameterPriceTotalInnovs19.6%37.6%1.4%41.5%100.0%Adopters13.8%35.2%1.3%49.6%100.0%Followers13.1%39.1%1.4%46.4%100.0%CONJOINT ANALYSIS - UTILITIES - SEGMENT INNOVATORSUnit1234ImportanceAutonomyLevelM4965819719.6%Utility[0,1]0.220.660.700.33Max FreqLevelKHz1214161837.6%Utility[0,1]0.040.650.950.26DiameterLevelMm334863781.4%Utility[0,1]0.460.480.490.48PriceLevel$5617469311,11641.5%Utility[0,1]0.001.000.640.27CONJOINT ANALYSIS - UTILITIES - SEGMENT EARLY ADOPTERSUnit1234ImportanceAutonomyLevelM4561779313.8%Utility[0,1]0.280.560.550.33Max FreqLevelKHz1113151735.2%Utility[0,1]0.030.640.740.31DiameterLevelMm213651661.3%Utility[0,1]0.420.440.440.42PriceLevel$44162681199649.6%Utility[0,1]0.000.361.000.36CONJOINT ANALYSIS - UTILITIES - SEGMENT FOLLOWERSUnit1234ImportanceAutonomyLevelM4157738913.1%Utility[0,1]0.290.570.520.29Max FreqLevelKHz911131539.1%Utility[0,1]0.050.470.890.25DiameterLevelMm304560751.4%Utility[0,1]0.400.420.430.40PriceLevel$36254773291746.4%Utility[0,1]0.000.381.000.28

&L&"Arial"&08&BINDUSTRY F6M2C0 - FIRM A&C&"Arial"&08&BANNUAL REPORT&R&"Arial"&08&BPERIOD 7&L&"Arial"&08&D&C&"Arial"&08Markstrat by StratX 5.1.0.5 - Copyright 2010 by StratX&R&"Arial"&08&P/&N