Nectarine, Inc.

Kevin Moriarty, President – Overall LeadershipHeather Hanson, VP Brand ManagementDuriel Holley, VP Marketing ResearchBrian Schlosnagle, VP FinanceLauren Tanzer, VP Sales Management

Executive Summary

Nectarine, Inc. aims to build products that provide cutting edge technology while creating tools to allow customers to efficiently accomplish their goals in a practical manner. The company focuses on large, highly competitive segments in the largest geographic markets while striving to minimize distribution costs to allow the price of their products to remain competitive. As a leader in the industry, Nectarine, Inc. targets their products to be the first to market to provide the best computers to their customers across the world.

Market Performance • Innovator and Traveler

segments were highest in demand.

• Costcutter and Workhorse show more R&D might be needed.

Market Performance

• Turned net profit for division beginning quarter 7

• Increased ROI % over 5 times our percentage from quarter 2

Performance During the Past Year

We were conservative in our approach to refining products and getting to know markets/sales locations

Total Gross Margin: $18,497,357

Total Revenues: $42,619,350

Revenues have steadily increased over last 4 quarters of sales

Market share and demand for our products started moderately but we increased in sales and demand in second half.

Assessment of Current Situation and Market

Our Customers Market Growth 75-150%

All segments Overall Market Share: 9%

Our Competition sPCtrum Compact Intelligence

Solutions RoadRunner

More aggressive in Increasing product line Opening sales offices Advertising locally

Assessment of Current Situation and Market

C. Nectarine’s Attributes Strengths

Profitable in Quarter 4 109% increase in sales High focus on products

meeting customer needs Weakness

Brand awareness Slow office expansion Limited product portfolio

D. Next Year Potential Issues

Rapid expansion of competition

Opportunities Tap into other market

segments Improve brands to

appeal to more customers

Expand advertisement to create brand awareness

Financial Performance YR1 & YR2

Revenues steadily increased from Q4 – Q8

Adding new brands, R&D features and sales offices helped to increase revenues

Brand Profitability

Profitability varied across our five products Need to determine which products to continue to build and

which to sunset moving into YR3

Regional Profitability

All three regions proved to be vital to our company’s sales

Ideally, we will look to build our regional profit in APAC and EMEA, as the expenses are lower in those areas

Marketing Plan - Strategy

Finding our niche Investing/enhance niche

Marketing Plan - Pricing

Undercut competitors Large rebates for new products

Marketing Plan - Advertising

Regional ads Dense regions first Humble beginnings

Local Ads Quality ads Humble beginnings

Marketing Plan – Sales Channel

Finish expanding region with least presence

Expand Sales Force conservatively

Conservative expansion

Establish presence in all regions

Marketing Plan – Significant Events

Change primary focus 3 Times

Enhance core business products

Understanding advertising impact Branding and reaching out to audience

Expanding sales office locations

Marketing Plan – SWOT

Strengths Quality brand judgment Defined market niche Steady increase of

market share

Opportunities Further R&D Increase audience

Weaknesses Slow expansion Brand awareness

Threats Compact Intelligence

Solutions sPCtrum RoadRunner

Marketing Strategy for the Next Year

A. Brand Strategy Investment in R&D to improve brand offerings and increase

competitive advantage Innovator, Mercedes, and Traveler

B. Pricing Strategy Increase prices slightly to build brand reputation and profits

C. Advertising Strategy Increase ad copy judgment to diversify in other forms of media

D. Sales Channel Maintain offices and sales force

Lessons Learned

Err on the side of being aggressive early on

Establish a presence in all regions as early as possible

Develop many brands to meet market needs

Strategically invest in R&D

Streamline resources to the more profitable brands and segments

Use market research to improve offerings

Future Plans

Increase brand judgment to >95

Invest in R&D to meet market specifications

Redesign product for Workhorse segment

Increase total market share to >15%

Maintain >200% net profit increase next quarter

Conclusion

Nectarine, Inc. had a slower start than anticipated, but improved our strategy going into Q5 to position us to capture more sales and increased profits through the second year.

With new and improved computers and R&D futures in Q5-Q8, and additional resources in our existing sales offices, we found customers were impressed with our offerings.

Keep an eye out for even more products in new regions coming out in the near future!