Mars O Annual Report P00

8/4/2019 Mars O Annual Report P00

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INDUSTRY MARS - FIRM O ANNUAL REPORT PERIOD 0

COMPANY REPORT

INDUSTRY MARS - FIRM O

Based on scenario MARS

PERIOD 0

Farouk SalehMBA605

7/1/2011 -->10/15/2011University of Dubai

United Arab Emirates

4/15/2012 Markstrat by StratX 5.1.0.6 - Copyright 2010 by StratX 1/15


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COMPANY RESULTS

COMPANY SCORECARD

Unit Annual results Evolution since P0

Period 0Market share

Total %$ 20.0%

Sonite market %$ 20.0%

Vodite market %$ -

Retail sales

Total K$ 101,772

Sonite market K$ 101,772

Vodite market K$ -

Contribution

Before marketing K$ 28,106

After marketing K$ 22,882

Net K$ 22,637

Cumulative net K$ 22,637

Shareholder valueStock price index Base 1000 1,000

Current return on investment Ratio 4.14

Cumulative return on investment Ratio 4.14

COMPANY PERFORMANCE

Unit Total Sonite market Vodite market

Sales

Units sold U 317,514 317,514

Average retail price $ 321 321

Average selling price $ 211 211

Revenues K$ 66,940 66,940

Production

Units produced U 317,600 317,600Cost of goods sold K$ -38,833 -38,833

Inventory holding cost K$ -1 -1

Inventory disposal loss K$ 0 0

Contribution before marketing K$ 28,106 28,106

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$ 22,882 22,882

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$ 0Net contribution K$ 22,637

Next period budget K$ 9,050

INSTRUCTOR AND SIMULATION MESSAGES

Messages

Despite all the efforts made by the Production department, they were not able

to fullfill all the orders for brand SOIL this period. As a consequence, some

potential sales of this brand have been lost.



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BRAND RESULTS

CONTRIBUTION BY BRAND

Sonite Brands Unit Total SOFT SOIL

Base R&D project PSOFT PSOIL

Sales

Units sold U 317,514 197,514 120,000Average retail price $ 321 204 512

Average selling price $ 211 136 333

Revenues K$ 66,940 26,939 40,001

Production

Units produced U 317,600 197,600 120,000

Current unit transfer cost $ - 76 198

Average unit transfer cost $ 122 76 198

Cost of goods sold K$ -38,833 -15,070 -23,763

Units in inventory U 86 86 0

Inventory holding cost K$ -1 -1 0

Inventory disposal loss K$ 0 0 0

Contribution before marketing K$ 28,106 11,869 16,237

Marketing

Advertising expenditures K$ -3,840 -1,920 -1,920

Advertising research expenditures K$ -160 -80 -80

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

Contribution after marketing K$ 22,882 9,257 13,625

MARKET SHARES AND DISTRIBUTION COVERAGE

Sonite Brands Unit Total SOFT SOIL

Market shares %U 20.0% 12.4% 7.6%

%$ 20.0% 7.9% 12.1%

Distribution coverage in %

Specialty stores (30,000 outlets) % 39.5% 39.5%

Depart. stores (6,750 outlets) % 39.7% 39.3%

Mass Merchandis. (10,000 outlets) % 31.5% 30.6%



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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

PSOFT 19 8 60 15 20 97 69 2,000 Avail. in P-1

PSOIL 15 4 40 45 90 214 151 2,000 Avail. in P-1

(*) 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$SOFT 0 198 40,309 26,939 15,070 1 2,000 612 9,257

SOIL 0 120 61,463 40,001 23,763 0 2,000 612 13,625

Total Sonite 318 101,772 66,940 38,833 1 4,000 1,224 22,882

Total Vodite 0 0 0 0 0 0 0 0

Total all markets 318 101,772 66,940 38,833 1 4,000 1,224 22,882

CUMULATIVE COMPANY PERFORMANCE

Unit Total Sonite market Vodite market

Sales

Units sold KU 318 318 0

Retail sales K$ 101,772 101,772 0

Revenues K$ 66,940 66,940 0

Production

Cost of goods sold K$ -38,833 -38,833 0

Inventory holding and disposal cost K$ -1 -1 0

Marketing

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

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

Contribution after marketing K$ 22,882 22,882 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$ 22,637



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DECISION SUMMARY

DECISION SUMMARY - BRAND MANAGEMENT

Sonite Brands SOFT SOIL

Base R&D project PSOFT PSOIL

Production planning KU 175 100

Inventory sold to trading company KU 0 0

Recommended retail price $ 210 520

Advertising budget K$ 1,920 1,920

Advertising research budget K$ 80 80

Buffs 20 20

Singles 20 20

Targeted segments in % Professionals 20 20

High earners 20 20

Others 20 20

Perceptual Objectives

Dimension 1 None None

Objective 1 - -

Dimension 2 None None

Objective 2 - -

DECISION SUMMARY - SALES FORCE MANAGEMENTDistribution Channels Specialty stores Depart. stores Mass Merchandis.

Number of salespeople 30 20 10

Sales force effort allocation by brand (%)

SOFT 50 50 50

SOIL 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 NoConsumer 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

- - -

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 %



7/15


NEWSLETTER



PERIOD 0

Farouk SalehMBA605





8/15


STOCK MARKET AND KEY PERFORMANCE INDICATORS

STOCK MARKET

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

base 1000 K$ Period 0 Cumulative

A 1,000 458,402 22,637 22,637

E 1,000 458,402 22,637 22,637

I 1,000 458,402 22,637 22,637

O 1,000 458,402 22,637 22,637

U 1,000 458,402 22,637 22,637

COMPANY KEY PERFORMANCE INDICATORS(period 0 values)

Unit A E I O U

Market share

Total %$ 20.0% 20.0% 20.0% 20.0% 20.0%

Sonite market %$ 20.0% 20.0% 20.0% 20.0% 20.0%

Vodite market %$ - - - - -

Retail sales

Total K$ 101,772 101,772 101,772 101,772 101,772

Sonite market K$ 101,772 101,772 101,772 101,772 101,772Vodite market K$ - - - - -

Contribution

Before marketing K$ 28,106 28,106 28,106 28,106 28,106

After marketing K$ 22,882 22,882 22,882 22,882 22,882

Net K$ 22,637 22,637 22,637 22,637 22,637

Cumulative net K$ 22,637 22,637 22,637 22,637 22,637

Shareholder value

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

Market capitalization K$ 458,402 458,402 458,402 458,402 458,402

Current return on investment Ratio 4.14 4.14 4.14 4.14 4.14

Cumulative return on investment Ratio 4.14 4.14 4.14 4.14 4.14



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ECONOMIC VARIABLES AND COSTS

ECONOMIC VARIABLES

Unit Actual value Forecast value %change

Period 0 Period 1

GNP growth rates % 8.0% 8.0% 0.0%

Inflation rate % 2.0% 4.0% 100.0%

Production

Inventory holding cost per annum % transf. cost 10.0% 10.0% 0.0%

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

Sales force

Salesperson operating cost $ 20,400 21,216 4.0%

Salesperson hiring and training cost $ 3,060 3,182 4.0%

Salesperson firing cost $ 5,100 5,304 4.0%

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 42Consumer 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

Total market 32 415 350

Total if all studies ordered 797



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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 SACK No 19 8 60 15 20 97 210

SAIL No 15 4 40 45 90 214 520

E SEAM No 19 8 60 15 20 97 210

SEED No 15 4 40 45 90 214 520

I SIGN No 19 8 60 15 20 97 210

SILK No 15 4 40 45 90 214 520

O SOFT No 19 8 60 15 20 97 210

SOIL No 15 4 40 45 90 214 520

U SUCH No 19 8 60 15 20 97 210

SUIT No 15 4 40 45 90 214 520

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 SACK 171,284 197,514 15.3% 12.4% 34,956 40,309 15.3% 7.9%

SAIL 104,364 120,000 15.0% 7.6% 53,454 61,463 15.0% 12.1%

E SEAM 171,284 197,514 15.3% 12.4% 34,956 40,309 15.3% 7.9%

SEED 104,364 120,000 15.0% 7.6% 53,454 61,463 15.0% 12.1%

I SIGN 171,284 197,514 15.3% 12.4% 34,956 40,309 15.3% 7.9%

SILK 104,364 120,000 15.0% 7.6% 53,454 61,463 15.0% 12.1%

O SOFT 171,284 197,514 15.3% 12.4% 34,956 40,309 15.3% 7.9%

SOIL 104,364 120,000 15.0% 7.6% 53,454 61,463 15.0% 12.1%

U SUCH 171,284 197,514 15.3% 12.4% 34,956 40,309 15.3% 7.9%

SUIT 104,364 120,000 15.0% 7.6% 53,454 61,463 15.0% 12.1%

Total Sonite market 1,378,241 1,587,569 15.2% 100.0% 442,051 508,860 15.1% 100.0%



11/15


MARKET RESEARCH STUDIES



PERIOD 0

Farouk SalehMBA605





12/15


CONSUMER SURVEY - SONITE MARKET

CONSUMER SURVEY - BRAND AWARENESS BY SEGMENT

Firm Brand Buffs Singles Pros HiEarners Others Total

A SACK 59.1% 69.1% 59.6% 57.6% 63.7% 62.2%

SAIL 64.7% 56.1% 71.3% 68.4% 44.0% 57.2%

E SEAM 59.1% 69.1% 59.6% 57.6% 63.7% 62.2%

SEED 64.7% 56.1% 71.3% 68.4% 44.0% 57.2%

I SIGN 59.1% 69.1% 59.6% 57.6% 63.7% 62.2%

SILK 64.7% 56.1% 71.3% 68.4% 44.0% 57.2%

O SOFT 59.1% 69.1% 59.6% 57.6% 63.7% 62.2%

SOIL 64.7% 56.1% 71.3% 68.4% 44.0% 57.2%

U SUCH 59.1% 69.1% 59.6% 57.6% 63.7% 62.2%

SUIT 64.7% 56.1% 71.3% 68.4% 44.0% 57.2%

CONSUMER SURVEY - PURCHASE INTENTIONS


A SACK 6.2% 17.0% 2.6% 4.5% 19.9% 11.6%

SAIL 13.8% 3.0% 17.4% 15.5% 0.1% 8.4%

E SEAM 6.2% 17.0% 2.6% 4.5% 19.9% 11.6%SEED 13.8% 3.0% 17.4% 15.5% 0.1% 8.4%

I SIGN 6.2% 17.0% 2.6% 4.5% 19.9% 11.6%

SILK 13.8% 3.0% 17.4% 15.5% 0.1% 8.4%

O SOFT 6.2% 17.0% 2.6% 4.5% 19.9% 11.6%

SOIL 13.8% 3.0% 17.4% 15.5% 0.1% 8.4%

U SUCH 6.2% 17.0% 2.6% 4.5% 19.9% 11.6%

SUIT 13.8% 3.0% 17.4% 15.5% 0.1% 8.4%

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 36.4% 37.6% 26.1% 100.0%



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CONSUMER PANEL - SONITE MARKET

CONSUMER PANEL - MARKET SHARES BASED ON UNIT SALES


A SACK 6.6% 17.3% 2.9% 5.0% 19.9% 12.4%

SAIL 13.4% 2.7% 17.1% 15.0% 0.1% 7.6%

E SEAM 6.6% 17.3% 2.9% 5.0% 19.9% 12.4%

SEED 13.4% 2.7% 17.1% 15.0% 0.1% 7.6%I SIGN 6.6% 17.3% 2.9% 5.0% 19.9% 12.4%

SILK 13.4% 2.7% 17.1% 15.0% 0.1% 7.6%

O SOFT 6.6% 17.3% 2.9% 5.0% 19.9% 12.4%

SOIL 13.4% 2.7% 17.1% 15.0% 0.1% 7.6%

U SUCH 6.6% 17.3% 2.9% 5.0% 19.9% 12.4%

SUIT 13.4% 2.7% 17.1% 15.0% 0.1% 7.6%

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

Total sales (U) 293,079 263,390 203,278 255,149 572,673 1,587,569

Total sales (% Total) 18.5% 16.6% 12.8% 16.1% 36.1% 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 SACK 10.2% 13.0% 15.1% 12.4%

SAIL 9.8% 7.0% 4.9% 7.6%

E SEAM 10.2% 13.0% 15.1% 12.4%

SEED 9.8% 7.0% 4.9% 7.6%I SIGN 10.2% 13.0% 15.1% 12.4%

SILK 9.8% 7.0% 4.9% 7.6%

O SOFT 10.2% 13.0% 15.1% 12.4%

SOIL 9.8% 7.0% 4.9% 7.6%

U SUCH 10.2% 13.0% 15.1% 12.4%

SUIT 9.8% 7.0% 4.9% 7.6%

Total 100.0% 100.0% 100.0% 100.0%

Total sales (U) 594,823 624,313 368,433 1,587,569

Total sales (% Total) 37.5% 39.3% 23.2% 100.0%

DISTRIBUTION PANEL - DISTRIBUTION COVERAGE BY CHANNEL

Firm Brand Specialty stores Depart. stores Mass Merchandis.

A SACK 39.5% 39.7% 31.5%

SAIL 39.5% 39.3% 30.6%E SEAM 39.5% 39.7% 31.5%

SEED 39.5% 39.3% 30.6%

I SIGN 39.5% 39.7% 31.5%

SILK 39.5% 39.3% 30.6%

O SOFT 39.5% 39.7% 31.5%

SOIL 39.5% 39.3% 30.6%

U SUCH 39.5% 39.7% 31.5%

SUIT 39.5% 39.3% 30.6%

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



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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 293 263 203 255 573 1,588

Forecasted size next period 301 341 263 358 711 1,975

Forecasted size in five periods 296 1,103 490 762 1,324 3,975

Relative segment sizes in %

Actual size this period 18.5% 16.6% 12.8% 16.1% 36.1% 100.0%

Forecasted size next period 15.2% 17.3% 13.3% 18.1% 36.0% 100.0%

Forecasted size in five periods 7.4% 27.7% 12.3% 19.2% 33.3% 100.0%

Forecasted growth rates in %

Next period 2.6% 29.6% 29.6% 40.4% 24.2% 24.4%

Total over next five periods 0.9% 318.6% 141.3% 198.7% 131.2% 150.4%

Average over next five periods 0.2% 33.2% 19.3% 24.5% 18.3% 20.1%


Mars O Annual Report P00

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