I1SA I Annual Report P01

7/31/2019 I1SA I Annual Report P01

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INDUSTRY I1SA - FIRM I ANNUAL REPORT PERIOD 1

COMPANY REPORT

INDUSTRY I1SA - FIRM IBased on scenario F5M2A020

PERIOD 1

Sreenath KanugoviMKDM-2012

6/4/2012 -->7/15/2012Indian School of Business

India

6/11/2012 Markstrat by StratX 5.1.0.7 - Copyright 2010 by StratX 1/28


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INDUSTRY I1SA - FIRM I ANNUAL REPORT PERIO

COMPANY RESULTSCOMPANY SCORECARD

Unit Annual results Evolution since P0

Period 0 Period 1 %changeRatio

P1/P0

Average

growth

Market share

Total %$ 12.4% 12.3% -0.9% x 0.99 -0.9%

Sonite market %$ 12.4% 12.3% -0.9% x 0.99 -0.9%

Vodite market %$ - - - - -

Retail sales

Total K$ 38,968 48,221 23.7% x 1.24 23.7%

Sonite market K$ 38,968 48,221 23.7% x 1.24 23.7%

Vodite market K$ - - - - -

Contribution

Before marketing K$ 15,403 20,688 34.3% x 1.34 34.3%

After marketing K$ 10,179 15,740 54.6% x 1.55 54.6%

Net K$ 9,935 12,897 29.8% x 1.30 29.8%

Cumulative net K$ 9,935 22,831 129.8% x 2.30 129.8%

Shareholder value

Stock price index Base 1000 1,000 1,160 16.0% x 1.16 16.0%

Current return on investment Ratio 1.82 1.66 -8.9% x 0.91 -8.9%

Cumulative return on investment Ratio 1.82 1.72 -5.2% x 0.95 -5.2%

COMPANY PERFORMANCE

Unit Total Sonite market Vodite market

Sales

Units sold U 182,637 182,637

Average retail price $ 264 264

Average selling price $ 177 177

Revenues K$ 32,360 32,360

Production

Units produced U 193,700 193,700

Cost of goods sold K$ -11,199 -11,199

Inventory holding cost K$ -473 -473

Inventory disposal loss K$ 0 0

Contribution before marketing K$ 20,688 20,688

Marketing

Advertising expenditures K$ -3,540 -3,540

Advertising research expenditures K$ -160 -160

Sales force K$ -1,248 -1,248

Contribution after marketing K$ 15,740 15,740

Other expenses

Market research studies K$ -463 -442 -21

Research and development K$ -2,380 -2,380 0

Interest paid K$ 0

Exceptional cost or profit K$ 0

Net contribution K$ 12,897

Next period budget K$ 8,300

6/11/2012 Markstrat by StratX 5.1.0.7 - Copyright 2010 by StratX 2


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BRAND RESULTS

CONTRIBUTION BY BRAND

Sonite Brands Unit Total SIRO SIBI

Base R&D project PSIRO PSIBI

Sales

Units sold U 182,637 113,646 68,991

Average retail price $ 264 216 343

Average selling price $ 177 147 227

Revenues K$ 32,360 16,704 15,656

Production

Units produced U 193,700 113,700 80,000

Current unit transfer cost $ - 43 82

Average unit transfer cost $ 61 43 92

Cost of goods sold K$ -11,199 -4,880 -6,319

Units in inventory U 71,697 57 71,640

Inventory holding cost K$ -473 0 -473

Inventory disposal loss K$ 0 0 0

Contribution before marketing K$ 20,688 11,823 8,865

Marketing

Advertising expenditures K$ -3,540 -1,920 -1,620

Advertising research expenditures K$ -160 -80 -80

Sales force K$ -1,248 -479 -770

Contribution after marketing K$ 15,740 9,345 6,395

MARKET SHARES AND DISTRIBUTION COVERAGE

Sonite Brands Unit Total SIRO SIBI

Market shares %U 19.2% 12.0% 7.3%

%$ 12.3% 6.3% 6.0%

Distribution coverage in %

Specialty stores (30,000 outlets) % 22.4% 35.2%Depart. stores (6,750 outlets) % 35.8% 46.6%

Mass Merchandis. (10,000 outlets) % 38.5% 36.3%



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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

PSIRO 20 3 70 10 12 52 39 1,500 Avail. in P-1

PSIBI 19 8 60 15 20 99 70 2,000 Avail. in P-1

PSING* 10 7 50 40 72 204 141 2,380 Avail. in P1

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



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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$

SIRO 0 208 43,737 29,670 9,668 0 4,000 1,091 14,911

SIBI 0 128 43,451 28,727 11,723 914 3,700 1,382 11,008

Total Sonite 337 87,189 58,397 21,391 914 7,700 2,472 25,919

Total Vodite 0 0 0 0 0 0 0 0

Total all markets 337 87,189 58,397 21,391 914 7,700 2,472 25,919

CUMULATIVE COMPANY PERFORMANCE

Unit Total Sonite market Vodite market

Sales

Units sold KU 337 337 0

Retail sales K$ 87,189 87,189 0

Revenues K$ 58,397 58,397 0

Production

Cost of goods sold K$ -21,391 -21,391 0

Inventory holding and disposal cost K$ -914 -914 0

Marketing

Total advertising expenditures K$ -7,700 -7,700 0

Sales force expenditures K$ -2,472 -2,472 0

Contribution after marketing K$ 25,919 25,919 0

Other expenses

Market research studies K$ -708 -687 -21

Research and development K$ -2,380 -2,380 0

Interest paid K$ 0

Exceptional cost or profit K$ 0

Net contribution K$ 22,831



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DECISION SUMMARY

DECISION SUMMARY - BRAND MANAGEMENT

Sonite Brands SIRO SIBI

Base R&D project PSIRO PSIBI

Production planning KU 100 100

Inventory sold to trading company KU 0 0

Recommended retail price $ 225 350

Advertising budget K$ 1,920 1,620

Advertising research budget K$ 80 80

Buffs 10 20

Singles 30 30

Targeted segments in % Professionals 10 20

High earners 10 15

Others 40 15

Perceptual Objectives

Dimension 1 Performance None

Objective 1 [1,7] or [-20,+ -10.0 -

Dimension 2 None None

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

DECISION SUMMARY - SALES FORCE MANAGEMENT

Distribution Channels Specialty stores Depart. stores Mass Merchandis.

Number of salespeople 10 30 20

Sales force effort allocation by brand (%)

SIRO 30 33 50

SIBI 70 67 50

TOTAL 100 100 100

DECISION SUMMARY - SONITE R&D PROJECTS

Project Expenditures Product Characteristics

Weight Design Volume Max Freq Power Base cost

K$ Kg Index Dm3 KHz W $

PSING 2,380 10 7 50 40 72 200

DECISION SUMMARY - SONITE ONLINE QUERIES

Query made Physical Characteristics Requested Online Query Results

on project Weight Design Volume Max Freq Power base costMin. unit

cost

Budget

required

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

PSING 10 7 50 40 72 200 161 2,380



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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 - Yes Yes

Multidimensional scaling - Yes No

Market forecast - Yes Yes

Competitive advertising - Yes No

Competitive sales force - Yes No

Advertising experiment - Yes No

Sales force experiment - Yes No

Conjoint analysis - Yes 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 %



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NEWSLETTER

INDUSTRY I1SA - FIRM I

Based on scenario F5M2A020

PERIOD 1



India



9/28

INDUSTRY I1SA - FIRM I ANNUAL REPORT PERIOD

STOCK MARKET AND KEY PERFORMANCE INDICATORS

STOCK MARKET

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

base 1000 K$ Period 1 Cumulative

O 1,374 383,048 29,016 42,782

E 1,222 353,593 25,540 39,827

U 1,218 377,359 25,055 40,352

A 1,170 249,382 14,182 24,711

I 1,160 233,312 12,897 22,831

COMPANY KEY PERFORMANCE INDICATORS(period 1 values)

Unit A E I O U

Market share

Total %$ 14.6% 24.5% 12.3% 26.0% 22.5%

Sonite market %$ 14.6% 24.5% 12.3% 26.0% 22.5%

Vodite market %$ - - - - -

Retail sales

Total K$ 57,328 96,024 48,221 101,987 88,104

Sonite market K$ 57,328 96,024 48,221 101,987 88,104

Vodite market K$ - - - - -

Contribution

Before marketing K$ 21,254 31,132 20,688 35,232 31,477

After marketing K$ 17,145 26,783 15,740 30,769 26,898

Net K$ 14,182 25,540 12,897 29,016 25,055

Cumulative net K$ 24,711 39,827 22,831 42,782 40,352

Shareholder value

Stock price index Base 1000 1,170 1,222 1,160 1,374 1,218

Market capitalization K$ 249,382 353,593 233,312 383,048 377,359

Current return on investment Ratio 2.01 4.57 1.66 4.67 3.90

Cumulative return on investment Ratio 1.97 3.60 1.72 3.66 3.39

COMPANY KEY PERFORMANCE INDICATORS(% change from period 0 to period 1)

A E I O U

Market share

Total -1.3% -3.5% -0.9% 4.5% 0.3%

Sonite market -1.3% -3.5% -0.9% 4.5% 0.3%

Vodite market - - - - -

Retail sales

Total 23.3% 20.5% 23.7% 30.5% 25.2%

Sonite market 23.3% 20.5% 23.7% 30.5% 25.2%

Vodite market - - - - -

Contribution

Before marketing 32.9% 57.6% 34.3% 83.2% 51.6%

After marketing 59.1% 84.3% 54.6% 119.6% 73.1%

Net 34.7% 78.8% 29.8% 110.8% 63.8%

Cumulative net 134.7% 178.8% 129.8% 210.8% 163.8%

Shareholder value

Stock price index 17.0% 22.2% 16.0% 37.4% 21.8%

Market capitalization 17.0% 22.2% 16.0% 37.4% 21.8%

Current return on investment 4.2% 74.8% -8.9% 85.4% 39.5%

Cumulative return on investment 2.4% 37.8% -5.2% 45.4% 21.3%



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ECONOMIC VARIABLES AND COSTS

ECONOMIC VARIABLES

Unit Actual value Forecast value %change

Period 1 Period 2

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 $ 20,808 21,224 2.0%

Salesperson hiring and training cost $ 3,121 3,184 2.0%

Salesperson firing cost $ 5,202 5,306 2.0%

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 64 42

Consumer panel 106 74

Distribution panel 64 53

Semantic scales 11 11

Multidimensional scaling 37 37

Market forecast 21 21

Competitive advertising 32 32

Competitive sales force 16 16

Advertising experiment 27 27

Sales force experiment 37 37

Conjoint analysis 37 37

Total market 32 452 387

Total if all studies ordered 871



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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 18 5 70 15 10 94 270

SALT No 15 4 35 20 30 119 340

E SEMI No 13 7 40 40 75 198 540

SELF No 15 4 40 45 90 218 550

I SIRO No 20 3 70 10 12 52 225

SIBI No 19 8 60 15 20 99 350

O SOLD No 13 7 45 30 75 188 575

SONO No 17 4 90 48 95 193 440

U SUSI No 18 3 75 25 12 72 270

SULI No 14 7 50 35 70 198 520

INFORMATION ON SONITE MARKET - SALES AND MARKET SHARES

Firm Brand Volume sold Retail sales

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

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

A SAMA 131,863 156,037 18.3% 16.4% 33,108 40,637 22.7% 10.4%

SALT 32,397 49,730 53.5% 5.2% 13,388 16,691 24.7% 4.3%

E SEMI 118,049 144,051 22.0% 15.2% 57,738 76,742 32.9% 19.6%

SELF 40,187 35,286 -12.2% 3.7% 21,938 19,282 -12.1% 4.9%

I SIRO 94,497 113,646 20.3% 12.0% 19,177 24,561 28.1% 6.3%

SIBI 59,369 68,991 16.2% 7.3% 19,791 23,660 19.5% 6.0%

O SOLD 108,398 140,326 29.5% 14.8% 54,370 79,241 45.7% 20.2%

SONO 60,578 51,972 -14.2% 5.5% 23,764 22,746 -4.3% 5.8%

U SUSI 54,239 33,651 -38.0% 3.5% 11,787 8,670 -26.4% 2.2%

SULI 114,861 156,039 35.9% 16.4% 58,566 79,434 35.6% 20.3%Total Sonite market 814,437 949,730 16.6% 100.0% 313,626 391,664 24.9% 100.0%



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MARKET RESEARCH STUDIES

INDUSTRY I1SA - FIRM I

Based on scenario F5M2A020

PERIOD 1



India



13/28


CONSUMER SURVEY - SONITE MARKET

CONSUMER SURVEY - BRAND AWARENESS BY SEGMENT

Firm Brand Buffs Singles Pros HiEarners Others Total

A SAMA 53.5% 68.5% 42.8% 50.5% 66.4% 57.2%

SALT 62.7% 68.4% 55.7% 62.8% 37.7% 55.4%

E SEMI 73.2% 61.6% 73.7% 76.0% 42.6% 63.0%

SELF 53.7% 45.0% 55.1% 54.7% 29.4% 45.8%I SIRO 54.9% 73.1% 47.9% 55.8% 72.9% 61.9%

SIBI 68.1% 77.6% 60.8% 65.4% 52.7% 63.7%

O SOLD 64.0% 56.3% 65.0% 76.8% 42.3% 58.5%

SONO 51.6% 44.8% 53.2% 50.9% 33.1% 45.4%

U SUSI 25.8% 32.3% 27.2% 30.2% 29.5% 28.9%

SULI 72.1% 68.2% 79.5% 81.6% 51.8% 68.5%

CONSUMER SURVEY - PURCHASE INTENTIONS


A SAMA 4.6% 15.2% 0.6% 0.4% 37.6% 14.7%

SALT 8.3% 15.8% 2.2% 1.7% 3.5% 6.5%

E SEMI 15.5% 7.2% 31.8% 19.6% 1.2% 13.4%

SELF 10.9% 4.0% 4.9% 2.4% 0.7% 4.5%

I SIRO 4.4% 12.7% 0.6% 0.4% 32.1% 12.6%

SIBI 7.1% 17.6% 2.0% 1.5% 5.7% 7.1%

O SOLD 11.5% 6.4% 19.6% 24.7% 1.2% 10.8%

SONO 20.6% 5.0% 3.5% 1.5% 0.9% 6.3%

U SUSI 2.4% 7.2% 0.4% 0.2% 15.4% 6.3%

SULI 14.8% 8.8% 34.4% 47.5% 1.6% 17.7%

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 39.8% 36.3% 23.9% 100.0%



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CONSUMER PANEL - SONITE MARKET

CONSUMER PANEL - MARKET SHARES BASED ON UNIT SALES


A SAMA 4.2% 17.1% 0.6% 0.5% 44.1% 16.4%

SALT 6.8% 14.0% 1.7% 1.4% 2.8% 5.2%

E SEMI 18.5% 8.5% 33.7% 19.9% 1.3% 15.2%

SELF 10.2% 3.2% 3.7% 1.5% 0.4% 3.7%

I SIRO 3.3% 11.9% 0.5% 0.4% 32.3% 12.0%

SIBI 7.0% 19.4% 1.9% 1.6% 6.1% 7.3%

O SOLD 15.9% 9.2% 25.2% 32.1% 1.6% 14.8%

SONO 19.3% 4.1% 2.7% 1.0% 0.6% 5.5%

U SUSI 1.0% 3.9% 0.2% 0.1% 9.2% 3.5%

SULI 13.8% 8.5% 29.9% 41.6% 1.5% 16.4%

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

Total sales (U) 190,188 173,362 194,120 127,475 264,585 949,730

Total sales (% Total) 20.0% 18.3% 20.4% 13.4% 27.9% 100.0%



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DISTRIBUTION PANEL - SONITE MARKET

DISTRIBUTION PANEL - MARKET SHARES BASED ON UNIT SALES

Firm Brand Specialty stores Depart. stores Mass Merchandis. Total

A SAMA 7.9% 20.0% 25.3% 16.4%

SALT 5.4% 6.4% 2.9% 5.2%

E SEMI 20.4% 13.5% 8.9% 15.2%

SELF 6.7% 2.2% 1.0% 3.7%

I SIRO 5.8% 13.3% 20.6% 12.0%

SIBI 6.9% 8.2% 6.4% 7.3%

O SOLD 16.9% 14.5% 11.5% 14.8%

SONO 10.2% 3.1% 1.3% 5.5%

U SUSI 1.8% 3.2% 7.1% 3.5%

SULI 18.0% 15.6% 15.0% 16.4%

Total 100.0% 100.0% 100.0% 100.0%

Total sales (U) 376,806 354,688 218,236 949,730

Total sales (% Total) 39.7% 37.3% 23.0% 100.0%

DISTRIBUTION PANEL - DISTRIBUTION COVERAGE BY CHANNELFirm Brand Specialty stores Depart. stores Mass Merchandis.

A SAMA 27.6% 49.0% 39.7%

SALT 27.3% 40.8% 18.9%

E SEMI 55.1% 47.2% 32.1%

SELF 41.2% 21.7% 13.5%

I SIRO 22.4% 35.8% 38.5%

SIBI 35.2% 46.6% 36.3%

O SOLD 48.2% 46.3% 39.7%

SONO 40.2% 22.4% 14.9%

U SUSI 13.5% 16.0% 28.0%

SULI 52.1% 45.0% 48.1%

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



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SEMANTIC SCALES - SONITE MARKET

SEMANTIC SCALES - IDEAL VALUES 1 TO 7

Segment Weight Design Volume Max Freq Power Price

Buffs 3.42 1.95 2.08 6.00 6.24 3.72

Singles 6.09 5.26 5.03 4.32 4.11 3.01

Pros 2.53 5.54 3.08 5.49 5.25 5.47

HiEarners 4.80 5.84 4.62 4.54 4.71 5.83

Others 5.44 3.97 6.20 2.72 2.39 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 5.89 2.34 4.86 2.23 1.50 2.65

SALT 4.00 1.63 2.04 2.88 2.39 4.81

E SEMI 2.69 4.77 2.39 5.77 5.31 6.29

SELF 4.00 1.63 2.39 6.39 6.18 6.43

I SIRO 6.50 1.50 4.86 1.70 1.67 2.03

SIBI 6.45 5.66 4.00 2.23 1.83 4.58

O SOLD 2.69 4.77 2.76 4.41 5.31 6.45

SONO 5.31 1.63 6.32 6.50 6.45 5.52

U SUSI 5.89 1.50 5.24 3.59 1.50 2.38

SULI 3.30 4.77 3.14 5.12 5.01 6.23



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MULTIDIMENSIONAL SCALING - SONITE MARKET

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

Segment Economy Performance Convenience

Buffs 1.9 14.6 -6.6

Singles 6.6 1.0 3.1Pros -9.8 8.7 9.4

HiEarners -12.2 4.5 7.2

Others 12.5 -10.2 -4.0

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

Firm Brand Economy Performance Convenience

A SAMA 9.0 -16.6 -10.2

SALT -5.4 -9.9 -8.4

E SEMI -15.3 9.5 6.6

SELF -16.2 14.9 -8.9

I SIRO 13.2 -15.5 -17.1

SIBI -3.9 -13.8 6.1

O SOLD -16.3 7.3 6.1

SONO -10.1 16.9 -15.0

U SUSI 10.8 -13.8 -16.9

SULI -14.9 6.9 5.2

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 Strong

Performance Slight Slight Slight Strong Very strong Moderate

Convenience Moderate Strong Moderate Slight Slight Slight



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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 190 173 194 127 265 950

Forecasted size next period 186 214 230 158 313 1,101

Forecasted size in five periods 155 566 332 249 623 1,924

Relative segment sizes in %

Actual size this period 20.0% 18.3% 20.4% 13.4% 27.9% 100.0%

Forecasted size next period 16.9% 19.5% 20.9% 14.3% 28.5% 100.0%

Forecasted size in five periods 8.0% 29.4% 17.3% 12.9% 32.4% 100.0%

Forecasted growth rates in %

Next period -2.1% 23.6% 18.5% 23.6% 18.4% 16.0%

Total over next five periods -18.7% 226.4% 71.0% 95.4% 135.4% 102.6%

Average over next five periods -4.1% 26.7% 11.3% 14.3% 18.7% 15.2%



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COMPETITIVE ADVERTISING - SONITE MARKET

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


A SAMA 250 350 250 250 500 1,600

SALT 350 350 200 250 200 1,350

TOTAL 600 700 450 500 700 2,950

E SEMI 650 350 650 550 300 2,500

SELF 100 100 100 100 100 500

TOTAL 750 450 750 650 400 3,000

I SIRO 300 500 300 300 600 2,000

SIBI 350 450 350 300 300 1,750

TOTAL 650 950 650 600 900 3,750

O SOLD 400 300 400 600 300 2,000

SONO 300 200 300 200 200 1,200

TOTAL 700 500 700 800 500 3,200

U SUSI 50 100 50 50 100 350

SULI 500 450 850 750 450 3,000

TOTAL 550 550 900 800 550 3,350

TOTAL 3,250 3,150 3,450 3,350 3,050 16,250

AVERAGE BY BRAND 325 315 345 335 305 1,625

AVERAGE BY FIRM 650 630 690 670 610 3,250

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 Performance Poor

SIBI - Poor

O SOLD - Poor

SONO - Poor

U SUSI - Poor

SULI - Average

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 21 12 38

SALT 5 14 3 22

TOTAL 10 35 15 60E SEMI 16 20 8 44

SELF 9 5 2 16TOTAL 25 25 10 60

I SIRO 3 10 10 23SIBI 7 20 10 37TOTAL 10 30 20 60

O SOLD 12 20 13 45SONO 8 5 2 15TOTAL 20 25 15 60

U SUSI 1 3 6 10SULI 14 17 19 50TOTAL 15 20 25 60

TOTAL 80 135 85 300

AVERAGE BY BRAND 8 14 9 30AVERAGE BY FIRM 16 27 17 60



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21/28


ADVERTISING EXPERIMENT - SONITE MARKET

EXPECTED RESULTS WITH INCREASED ADVERTISING BUDGET

SIRO SIBI

Change in awareness (%)

Buffs 2.0% 1.5%

Singles 1.5% 1.0%

Professionals 2.4% 2.0%

High earners 2.5% 1.9%

Others 1.3% 1.5%

Change in market share (%)

Buffs 0.2% 0.3%

Singles 0.7% 0.5%

Professionals 0.0% 0.1%

High earners 0.0% 0.0%

Others 1.5% 0.3%

Change in contribution after marketing (K$) 295 -4

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

SIRO SIBI

Change in number of distributors (U)

Specialty stores 2,549 3,000

Depart. stores 259 224

Mass Merchandis. 450 442

Change in market share (%)

Specialty stores 1.1% 1.7%

Depart. stores 0.2% 0.7%

Mass Merchandis. 0.4% 0.8%

Change in contribution after marketing (K$) 376 1,149

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.



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CONJOINT ANALYSIS - SONITE MARKET

CONJOINT ANALYSIS - RELATIVE IMPORTANCE OF CHARACTERISTICS

Segment Design Max Freq Power Price Total

Buffs 1.0% 9.9% 32.7% 56.4% 100.0%

Singles 0.3% 1.9% 24.0% 73.8% 100.0%

Pros 1.7% 3.1% 30.8% 64.4% 100.0%

HiEarners 7.3% 1.9% 39.1% 51.7% 100.0%

Others 8.6% 1.4% 30.1% 59.8% 100.0%

CONJOINT ANALYSIS - UTILITIES - SEGMENT BUFFS

Unit 1 2 3 4 Importance

Design Level Index 3 4 5 6 1.0%

Utility [0,1] 0.39 0.41 0.41 0.41Max Freq Level KHz 26 34 42 50 9.9%

Utility [0,1] 0.31 0.38 0.44 0.48

Power Level W 52 68 84 100 32.7%

Utility [0,1] 0.04 0.36 0.59 0.62

Price Level $ 216 295 374 453 56.4%

Utility [0,1] 0.24 1.00 0.37 0.00



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CONJOINT ANALYSIS - UTILITIES - SEGMENT SINGLES



Utility [0,1] 0.60 0.60 0.60 0.60

Max Freq Level KHz 18 26 34 42 1.9%

Utility [0,1] 0.58 0.61 0.61 0.60

Power Level W 31 47 63 79 24.0%

Utility [0,1] 0.43 0.72 0.76 0.50

Price Level $ 169 248 327 406 73.8%

Utility [0,1] 0.48 1.00 0.93 0.00



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CONJOINT ANALYSIS - UTILITIES - SEGMENT PROFESSIONALS



Utility [0,1] 0.41 0.43 0.44 0.43


Utility [0,1] 0.43 0.45 0.43 0.40

Power Level W 51 67 83 99 30.8%

Utility [0,1] 0.18 0.65 0.63 0.24

Price Level $ 335 414 493 572 64.4%

Utility [0,1] 0.00 1.00 0.52 0.18



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CONJOINT ANALYSIS - UTILITIES - SEGMENT HIGH EARNERS



Utility [0,1] 0.46 0.59 0.60 0.59


Utility [0,1] 0.56 0.57 0.57 0.54

Power Level W 40 56 72 88 39.1%

Utility [0,1] 0.17 0.83 0.92 0.31

Price Level $ 335 414 493 572 51.7%

Utility [0,1] 0.00 1.00 0.88 0.36



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CONJOINT ANALYSIS - UTILITIES - SEGMENT OTHERS



Utility [0,1] 0.61 0.73 0.75 0.73


Utility [0,1] 0.69 0.71 0.71 0.71

Power Level W 5 21 37 53 30.1%

Utility [0,1] 0.46 0.89 0.97 0.49

Price Level $ 101 180 259 338 59.8%

Utility [0,1] 0.96 1.00 0.85 0.00



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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



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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 80 40 13 133

Forecasted size 5 periods after intro. 150 231 299 680

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% 9.8% 100.0%

Forecasted size 5 periods after intro. 22.1% 34.0% 44.0% 100.0%

Forecasted growth rates in %

Next period

Total over first five periods 87.7% 477.5% 2201.3% 411.5%

Average over first five periods 17.0% 55.0% 119.0% 50.4%

I1SA I Annual Report P01

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