SMA 2015 E Annual Report P1

INDUSTRY SMA_2015 - FIRM E ANNUAL REPORT PERIOD 1

26-7-2015 Markstrat by StratX 5.1.0.7 - Copyright 2010 by StratX 1/24

COMPANY REPORT

INDUSTRY SMA_2015 - FIRM EBased on scenario F5M2A0

PERIOD 1

Arindam BanerjeePGPSM-2015-1

29-06-2015 -->29-08-2015Indian Institute of Management - Ahmedabad

India



COMPANY RESULTS

COMPANY SCORECARD

Unit Annual results Evolution since P0

Period 0 Period 1 %change Ratio P1/P0 Averagegrowth

Market share Total %$ 25.4% 25.3% -0.3% x 1.00 -0.3% Sonite market %$ 25.4% 25.3% -0.3% x 1.00 -0.3% Vodite market %$ - - - - -Retail sales Total K$ 79,676 93,984 18.0% x 1.18 18.0% Sonite market K$ 79,676 93,984 18.0% x 1.18 18.0% Vodite market K$ - - - - -Contribution Before marketing K$ 19,756 26,660 34.9% x 1.35 34.9% After marketing K$ 14,532 19,978 37.5% x 1.37 37.5% Net K$ 14,287 19,521 36.6% x 1.37 36.6% Cumulative net K$ 14,287 33,807 136.6% x 2.37 136.6%Shareholder value Stock price index Base 1000 1,000 1,110 11.0% x 1.11 11.0% Current return on investment Ratio 2.61 2.73 4.7% x 1.05 4.7% Cumulative return on investment Ratio 2.61 2.68 2.6% x 1.03 2.6%

COMPANY PERFORMANCE

Unit Total Sonite market Vodite marketSales Units sold U 200,518 200,518 Average retail price $ 469 469 Average selling price $ 301 301 Revenues K$ 60,374 60,374Production Units produced U 182,400 182,400 Cost of goods sold K$ -33,341 -33,341 Inventory holding cost K$ -374 -374 Inventory disposal loss K$ 0 0 Contribution before marketing K$ 26,660 26,660Marketing Advertising expenditures K$ -5,170 -5,170 Advertising research expenditures K$ -263 -263 Sales force K$ -1,248 -1,248 Contribution after marketing K$ 19,978 19,978Other expenses Market research studies K$ -458 -406 -21 Research and development K$ 0 0 0 Interest paid K$ 0 Exceptional cost or profit K$ 0 Net contribution K$ 19,521Next period budget K$ 7,800



BRAND RESULTS

CONTRIBUTION BY BRAND

Sonite Brands Unit Total SEMI SELFBase R&D project PSEMI PSELFSales Units sold U 200,518 162,434 38,084 Average retail price $ 469 488 388 Average selling price $ 301 315 242 Revenues K$ 60,374 51,143 9,231Production Units produced U 182,400 162,400 20,000 Current unit transfer cost $ - 152 214 Average unit transfer cost $ 166 152 226 Cost of goods sold K$ -33,341 -24,745 -8,596 Units in inventory U 21,746 17 21,729 Inventory holding cost K$ -374 0 -374 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 26,660 26,398 262Marketing Advertising expenditures K$ -5,170 -3,900 -1,270 Advertising research expenditures K$ -263 -200 -63 Sales force K$ -1,248 -895 -354 Contribution after marketing K$ 19,978 21,403 -1,425

MARKET SHARES AND DISTRIBUTION COVERAGE

Sonite Brands Unit Total SEMI SELFMarket shares %U 20.6% 16.7% 3.9%

%$ 25.3% 21.3% 4.0%Distribution coverage in % Specialty stores (30,000 outlets) % 50.1% 38.5% Depart. stores (6,750 outlets) % 40.6% 18.5% Mass Merchandis. (10,000 outlets) % 32.4% 9.4%



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 completionPSEMI 13 7 40 40 75 198 146 1,500 Avail. in P-1PSELF 15 4 40 45 90 218 154 2,000 Avail. in P-1

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



CUMULATIVE RESULTS

CUMULATIVE BRAND RESULTS

Sales Production Marketing

Brand Resultssince period Units sold Retail sales RevenuesCost of

goods soldInventory

costs Advertising Sales forceContrib. after

mktg.

KU K$ K$ K$ K$ K$ K$ K$SEMI 0 280 136,936 88,186 46,316 1 6,600 1,507 33,762SELF 0 78 36,724 23,113 17,488 1,078 2,833 966 748

Total Sonite 359 173,660 111,299 63,804 1,079 9,433 2,472 34,510Total Vodite 0 0 0 0 0 0 0 0Total all markets 359 173,660 111,299 63,804 1,079 9,433 2,472 34,510

CUMULATIVE COMPANY PERFORMANCE

Unit Total Sonite market Vodite marketSales Units sold KU 359 359 0 Retail sales K$ 173,660 173,660 0 Revenues K$ 111,299 111,299 0Production Cost of goods sold K$ -63,804 -63,804 0 Inventory holding and disposal cost K$ -1,079 -1,079 0Marketing Total advertising expenditures K$ -9,433 -9,433 0 Sales force expenditures K$ -2,472 -2,472 0 Contribution after marketing K$ 34,510 34,510 0Other expenses Market research studies K$ -703 -651 -21 Research and development K$ 0 0 0 Interest paid K$ 0 Exceptional cost or profit K$ 0 Net contribution K$ 33,807



DECISION SUMMARY

DECISION SUMMARY - BRAND MANAGEMENT

Sonite Brands SEMI SELFBase R&D project PSEMI PSELFProduction planning KU 140 25Inventory sold to trading company KU 0 0Recommended retail price $ 495 390Advertising budget K$ 3,900 1,270Advertising research budget K$ 200 63

Buffs 10 100Singles 0 0

Targeted segments in % Professionals 70 0High earners 20 0Others 0 0

Perceptual ObjectivesDimension 1 None NoneObjective 1 - -Dimension 2 None NoneObjective 2 - -

DECISION SUMMARY - SALES FORCE MANAGEMENT

Distribution Channels Specialty stores Depart. stores Mass Merchandis.Number of salespeople 31 19 10Sales force effort allocation by brand (%)

SEMI 61 79 90SELF 39 21 10

TOTAL 100 100 100

DECISION SUMMARY - MARKET RESEARCH STUDIES

Study Market covered by studyAll markets Sonite Vodite

Industry benchmarking Yes - -Consumer survey - Yes NoConsumer panel - Yes No

Distribution panel - Yes NoSemantic scales - Yes Yes

Multidimensional scaling - Yes NoMarket forecast - Yes Yes

Competitive advertising - Yes NoCompetitive sales force - Yes NoAdvertising experiment - Yes NoSales force experiment - Yes No

- - -

DECISION SUMMARY - LOAN AND BUDGET MODIFICATION

Corporate finance departmentIncrease in budget K$ 0Decrease in budget K$ 0

BankCapital borrowed K$ 0Duration in number of periodsInterest rate %



NEWSLETTER


PERIOD 1



India



STOCK MARKET AND KEY PERFORMANCE INDICATORS

STOCK MARKET

Firm Stock price index Market capitalization Net contribution (K$)base 1000 K$ Period 1 Cumulative

I 1,169 235,170 14,487 24,422O 1,159 323,187 20,765 34,531U 1,152 356,838 23,131 38,428E 1,110 321,026 19,521 33,807A 1,000 213,195 11,687 22,216

COMPANY KEY PERFORMANCE INDICATORS(period 1 values)

Unit A E I O UMarket share Total %$ 13.8% 25.3% 13.1% 25.3% 22.5% Sonite market %$ 13.8% 25.3% 13.1% 25.3% 22.5% Vodite market %$ - - - - -Retail sales Total K$ 51,173 93,984 48,433 93,925 83,526 Sonite market K$ 51,173 93,984 48,433 93,925 83,526 Vodite market K$ - - - - -Contribution Before marketing K$ 18,808 26,660 21,626 27,830 29,805 After marketing K$ 12,145 19,978 14,945 21,223 23,589 Net K$ 11,687 19,521 14,487 20,765 23,131 Cumulative net K$ 22,216 33,807 24,422 34,531 38,428Shareholder value Stock price index Base 1000 1,000 1,110 1,169 1,159 1,152 Market capitalization K$ 213,195 321,026 235,170 323,187 356,838 Current return on investment Ratio 1.64 2.73 2.03 2.94 3.47 Cumulative return on investment Ratio 1.76 2.68 1.94 2.75 3.16

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

A E I O UMarket share Total -7.0% -0.3% 5.1% 1.6% 0.4% Sonite market -7.0% -0.3% 5.1% 1.6% 0.4% Vodite market - - - - -Retail sales Total 10.1% 18.0% 24.3% 20.2% 18.7% Sonite market 10.1% 18.0% 24.3% 20.2% 18.7% Vodite market - - - - -Contribution Before marketing 17.6% 34.9% 40.4% 44.7% 43.5% After marketing 12.7% 37.5% 46.8% 51.5% 51.8% Net 11.0% 36.6% 45.8% 50.8% 51.2% Cumulative net 111.0% 136.6% 145.8% 150.8% 151.2%Shareholder value Stock price index 0.0% 11.0% 16.9% 15.9% 15.2% Market capitalization 0.0% 11.0% 16.9% 15.9% 15.2% Current return on investment -14.7% 4.7% 11.7% 16.8% 23.9% Cumulative return on investment -8.3% 2.6% 6.6% 9.4% 13.1%



ECONOMIC VARIABLES AND COSTS

ECONOMIC VARIABLES

Unit Actual value Forecast value %changePeriod 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 studyAll markets Sonite Vodite

Industry benchmarking 32Consumer survey 64 42Consumer panel 106 74

Distribution panel 64 53Semantic scales 11 11

Multidimensional scaling 37 37Market forecast 21 21

Competitive advertising 32 32Competitive sales force 16 16Advertising experiment 27 27Sales force experiment 37 37

Total market 32 415 350Total if all studies ordered 797



INFORMATION ON SONITE MARKET

CHARACTERISTICS OF MARKETED SONITE BRANDS

Physical characteristicsFirm 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 350E SEMI No 13 7 40 40 75 198 495

SELF No 15 4 40 45 90 218 390I SIRO No 20 3 70 10 12 52 250

SIBI No 19 8 60 15 20 99 340O SOLD No 13 7 45 30 75 188 510

SONO No 17 4 90 48 95 193 395U SUSI No 18 3 75 25 12 72 260

SULI No 14 7 50 35 70 198 510

INFORMATION ON SONITE MARKET - SALES AND MARKET SHARES

Firm Brand Volume sold Retail salesPeriod 0 Period 1 Change Share Period 0 Period 1 Change Share

U U % %U K$ K$ % %$A SAMA 131,863 144,793 9.8% 14.9% 33,108 37,571 13.5% 10.1%

SALT 32,397 39,603 22.2% 4.1% 13,388 13,602 1.6% 3.7%E SEMI 118,049 162,434 37.6% 16.7% 57,738 79,198 37.2% 21.3%

SELF 40,187 38,084 -5.2% 3.9% 21,938 14,786 -32.6% 4.0%I SIRO 94,497 110,378 16.8% 11.4% 19,177 26,486 38.1% 7.1%

SIBI 59,369 65,720 10.7% 6.8% 19,791 21,947 10.9% 5.9%O SOLD 108,398 132,240 22.0% 13.6% 54,370 66,459 22.2% 17.9%

SONO 60,578 69,580 14.9% 7.2% 23,764 27,465 15.6% 7.4%U SUSI 54,239 83,261 53.5% 8.6% 11,787 20,779 76.3% 5.6%

SULI 114,861 125,891 9.6% 13.0% 58,566 62,746 7.1% 16.9%Total Sonite market 814,437 971,985 19.3% 100.0% 313,626 371,041 18.3% 100.0%



MARKET RESEARCH STUDIES


PERIOD 1



India



INDUSTRY BENCHMARKING

BENCHMARKING - ESTIMATED OVERALL PERFORMANCE

Unit A E I O USales Retail sales K$ 51,173 93,984 48,433 93,925 83,526 Revenues K$ 34,550 60,374 32,601 60,503 55,388Production Cost of goods sold K$ -15,184 -33,341 -10,840 -32,590 -25,429 Inventory holding cost K$ 0 -374 -135 -83 -154 Inventory disposal loss K$ -557 0 0 0 0 Contribution before marketing K$ 18,808 26,660 21,626 27,830 29,805Marketing Advertising expenditures K$ -4,800 -5,170 -4,141 -4,840 -4,514 Advertising research expenditures K$ -160 -263 -215 -160 -166 Sales force K$ -1,703 -1,248 -2,325 -1,607 -1,536 Contribution after marketing K$ 12,145 19,978 14,945 21,223 23,589Other expenses Market research studies K$ -458 -458 -458 -458 -458 Research and development K$ 0 0 0 0 0 Interest paid K$ 0 0 0 0 0 Exceptional cost or profit K$ 0 0 0 0 0 Net contribution K$ 11,687 19,521 14,487 20,765 23,131Next period budget K$ 7,300 7,800 7,300 8,300 9,250

BENCHMARKING - ESTIMATED PERFORMANCE IN SONITE MARKET

Unit A E I O USales Retail sales K$ 51,173 93,984 48,433 93,925 83,526 Revenues K$ 34,550 60,374 32,601 60,503 55,388Production Cost of goods sold K$ -15,184 -33,341 -10,840 -32,590 -25,429 Inventory holding cost K$ 0 -374 -135 -83 -154 Inventory disposal loss K$ -557 0 0 0 0 Contribution before marketing K$ 18,808 26,660 21,626 27,830 29,805Marketing Advertising expenditures K$ -4,800 -5,170 -4,141 -4,840 -4,514 Advertising research expenditures K$ -160 -263 -215 -160 -166 Sales force K$ -1,703 -1,248 -2,325 -1,607 -1,536 Contribution after marketing K$ 12,145 19,978 14,945 21,223 23,589

BENCHMARKING - ESTIMATED PERFORMANCE IN VODITE MARKET

Unit A E I O USales Retail sales K$ 0 0 0 0 0 Revenues K$ 0 0 0 0 0Production Cost of goods sold K$ 0 0 0 0 0 Inventory holding cost K$ 0 0 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 Contribution before marketing K$ 0 0 0 0 0Marketing Advertising expenditures K$ 0 0 0 0 0 Advertising research expenditures K$ 0 0 0 0 0 Sales force K$ 0 0 0 0 0 Contribution after marketing K$ 0 0 0 0 0



CONSUMER SURVEY - SONITE MARKET

CONSUMER SURVEY - BRAND AWARENESS BY SEGMENT

Firm Brand Buffs Singles Pros HiEarners Others TotalA SAMA 46.8% 62.1% 33.8% 40.7% 64.7% 51.5%

SALT 60.0% 69.4% 51.4% 57.6% 38.6% 53.3%E SEMI 62.0% 51.2% 73.4% 70.6% 36.3% 55.8%

SELF 57.5% 41.0% 52.2% 51.2% 26.6% 43.5%I SIRO 47.6% 67.3% 39.3% 47.2% 72.2% 56.7%

SIBI 63.2% 76.0% 51.7% 56.6% 48.7% 58.0%O SOLD 52.1% 45.3% 58.7% 72.0% 33.0% 49.1%

SONO 61.0% 41.1% 46.8% 46.2% 31.4% 43.9%U SUSI 29.7% 37.4% 31.3% 35.7% 45.8% 36.9%

SULI 57.9% 53.7% 68.8% 75.1% 37.2% 55.4%

CONSUMER SURVEY - PURCHASE INTENTIONS


SALT 7.0% 15.1% 1.7% 1.5% 3.2% 5.9%E SEMI 13.7% 7.0% 40.5% 19.6% 1.1% 14.6%

SELF 15.5% 4.7% 4.6% 2.1% 0.7% 5.5%I SIRO 3.4% 12.3% 0.4% 0.3% 26.2% 10.6%

SIBI 6.1% 18.8% 1.4% 1.1% 5.7% 7.0%O SOLD 10.0% 6.2% 23.9% 36.5% 1.1% 12.7%

SONO 27.1% 5.2% 2.5% 1.2% 0.9% 7.5%U SUSI 2.6% 9.0% 0.4% 0.3% 23.0% 8.9%

SULI 10.8% 7.2% 24.3% 37.0% 1.2% 13.2%Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

CONSUMER SURVEY - SHOPPING HABITS

Segment Specialty stores Depart. stores Mass Merchandis. TotalBuffs 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 39.4% 36.3% 24.3% 100.0%



CONSUMER PANEL - SONITE MARKET

CONSUMER PANEL - MARKET SHARES BASED ON UNIT SALES


SALT 5.1% 11.6% 1.1% 1.1% 2.1% 4.1%E SEMI 16.9% 8.5% 44.3% 20.9% 1.1% 16.7%

SELF 12.7% 3.2% 3.0% 1.1% 0.3% 3.9%I SIRO 2.7% 13.0% 0.4% 0.3% 28.3% 11.4%

SIBI 6.1% 20.2% 1.3% 1.1% 5.3% 6.8%O SOLD 11.7% 7.1% 24.6% 37.7% 1.0% 13.6%

SONO 29.0% 4.5% 2.0% 0.7% 0.5% 7.2%U SUSI 2.3% 8.9% 0.3% 0.2% 21.7% 8.6%

SULI 10.6% 7.6% 22.6% 36.6% 1.1% 13.0%Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total sales (U) 192,080 172,191 193,956 124,662 289,095 971,985Total sales (% Total) 19.8% 17.7% 20.0% 12.8% 29.7% 100.0%



DISTRIBUTION PANEL - SONITE MARKET

DISTRIBUTION PANEL - MARKET SHARES BASED ON UNIT SALES

Firm Brand Specialty stores Depart. stores Mass Merchandis. TotalA SAMA 6.2% 18.0% 24.8% 14.9%

SALT 4.6% 4.0% 3.3% 4.1%E SEMI 22.5% 14.3% 10.7% 16.7%

SELF 7.4% 2.1% 0.8% 3.9%I SIRO 4.5% 13.6% 19.5% 11.4%

SIBI 6.6% 7.9% 5.1% 6.8%O SOLD 15.5% 14.8% 8.5% 13.6%

SONO 14.4% 3.8% 0.2% 7.2%U SUSI 5.0% 8.5% 14.7% 8.6%

SULI 13.1% 13.0% 12.6% 13.0%Total 100.0% 100.0% 100.0% 100.0%Total sales (U) 385,433 358,881 227,671 971,985Total sales (% Total) 39.7% 36.9% 23.4% 100.0%

DISTRIBUTION PANEL - DISTRIBUTION COVERAGE BY CHANNEL

Firm Brand Specialty stores Depart. stores Mass Merchandis.A SAMA 22.4% 45.8% 43.2%

SALT 38.0% 37.1% 35.3%E SEMI 50.1% 40.6% 32.4%

SELF 38.5% 18.5% 9.4%I SIRO 21.7% 48.4% 51.0%

SIBI 38.0% 47.5% 30.9%O SOLD 47.0% 44.0% 24.0%

SONO 51.3% 25.9% 0.5%U SUSI 33.3% 34.3% 44.2%

SULI 34.9% 34.8% 38.9%Total number of outlets 30,000 6,750 10,000



SEMANTIC SCALES - SONITE MARKET

SEMANTIC SCALES - IDEAL VALUES (1 TO 7)

Segment Weight Design Volume Max Freq Power PriceBuffs 3.42 1.95 2.08 6.01 6.26 3.71Singles 6.09 5.26 5.03 4.32 4.10 3.00Pros 2.53 5.54 3.08 5.50 5.25 5.49HiEarners 4.80 5.85 4.62 4.54 4.71 5.83Others 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 PriceA SAMA 5.89 2.34 4.86 2.23 1.50 2.67

SALT 4.00 1.63 2.04 2.88 2.39 5.01E SEMI 2.69 4.77 2.39 5.77 5.31 6.12

SELF 4.00 1.63 2.39 6.39 6.18 5.97I SIRO 6.50 1.50 4.86 1.61 1.50 2.39

SIBI 6.45 5.66 4.00 2.23 1.83 4.51O SOLD 2.69 4.77 2.76 4.41 5.31 6.21

SONO 5.31 1.63 6.32 6.50 6.45 5.33U SUSI 5.89 1.50 5.24 3.59 1.50 2.51

SULI 3.30 4.77 3.14 5.12 5.01 6.24



MULTIDIMENSIONAL SCALING - SONITE MARKET

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

Segment Economy Performance ConvenienceBuffs 1.9 14.7 -6.6Singles 6.6 1.0 3.1Pros -9.9 8.8 9.4HiEarners -12.2 4.5 7.3Others 12.5 -10.2 -4.0

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

Firm Brand Economy Performance ConvenienceA SAMA 8.9 -16.6 -10.2

SALT -6.7 -9.9 -8.4E SEMI -14.1 9.5 6.6

SELF -13.1 14.9 -8.9I SIRO 10.8 -17.1 -17.1

SIBI -3.4 -13.8 6.1O SOLD -14.7 7.3 6.1

SONO -8.8 16.9 -15.0U SUSI 9.9 -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 Slight StrongPerformance Slight Slight Slight Strong Very strong SlightConvenience Moderate Strong Moderate Slight Slight Slight



MULTIDIMENSIONAL SCALING - PERCEPTUAL MAPECONOMY X PERFORMANCE

Horizontal axis : Economy (perceived economy, increasing from left to right)Vertical axis : Performance (perceived performance, increasing from bottom to top)

-20

-10

0

10

20

-20 -10 0 10 20

SULI

SUSI

SONO

SOLD

SIBI

SIRO

SELF

SEMI

SALT

SAMA

Ot

Hi

Pr

Si

Bu



MULTIDIMENSIONAL SCALING - PERCEPTUAL MAPECONOMY X CONVENIENCE

Horizontal axis : Economy (perceived economy, increasing from left to right)Vertical axis : Convenience (perceived convenience, increasing from bottom to top)

-20

-10

0

10

20

-20 -10 0 10 20

SULI

SUSISONO

SOLD

SIBI

SIRO

SELF

SEMI

SALT

SAMA

Ot

Hi

Pr

Si

Bu



MARKET FORECAST - SONITE MARKET

MARKET FORECAST - SEGMENT SIZES AND GROWTH RATES

Segment Buffs Singles Pros HiEarners Others TotalSegment sizes in KU Actual size this period 192 172 194 125 289 972 Forecasted size next period 188 213 230 154 342 1,127 Forecasted size in five periods 156 562 332 244 681 1,974Relative segment sizes in % Actual size this period 19.8% 17.7% 20.0% 12.8% 29.7% 100.0% Forecasted size next period 16.7% 18.9% 20.4% 13.7% 30.4% 100.0% Forecasted size in five periods 7.9% 28.5% 16.8% 12.3% 34.5% 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% 103.1% Average over next five periods -4.1% 26.7% 11.3% 14.3% 18.7% 15.2%



COMPETITIVE ADVERTISING - SONITE MARKET

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

Firm Brand Buffs Singles Pros HiEarners Others TotalA SAMA 400 400 200 200 1,050 2,250

SALT 700 1,050 250 250 450 2,700TOTAL 1,100 1,450 450 450 1,500 4,950

E SEMI 600 350 1,950 800 350 4,050SELF 850 100 100 100 100 1,250TOTAL 1,450 450 2,050 900 450 5,300

I SIRO 250 500 200 200 1,050 2,200SIBI 450 950 250 200 400 2,250TOTAL 700 1,450 450 400 1,450 4,450

O SOLD 200 200 700 1,050 200 2,350SONO 1,650 250 250 250 250 2,650TOTAL 1,850 450 950 1,300 450 5,000

U SUSI 200 300 200 200 1,250 2,150SULI 250 250 800 1,100 250 2,650TOTAL 450 550 1,000 1,300 1,500 4,800

TOTAL 5,550 4,350 4,900 4,350 5,350 24,500AVERAGE BY BRAND 555 435 490 435 535 2,450AVERAGE BY FIRM 1,110 870 980 870 1,070 4,900

COMPETITIVE ADVERTISINGESTIMATED COMMUNICATION DIMENSIONS AND MESSAGE QUALITY

Firm Brand Communication Dimensions Message QualityA SAMA - Poor

SALT - PoorE SEMI - Average

SELF - PoorI SIRO - Poor

SIBI - PoorO SOLD - Poor

SONO - PoorU SUSI - Poor

SULI - Poor

COMPETITIVE SALES FORCE - SONITE MARKET

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

Firm Brand Specialty stores Depart. stores Mass Merchandis.A SAMA 6 19 16

SALT 15 12 11TOTAL 21 31 27

E SEMI 19 15 9SELF 12 4 1TOTAL 31 19 10

I SIRO 5 24 30SIBI 14 24 8TOTAL 19 48 38

O SOLD 20 20 5SONO 23 7 0TOTAL 43 27 5

U SUSI 10 12 16SULI 10 12 12TOTAL 20 24 28

TOTAL 134 149 108AVERAGE BY BRAND 13 15 11AVERAGE BY FIRM 27 30 22



ADVERTISING EXPERIMENT - SONITE MARKET

EXPECTED RESULTS WITH INCREASED ADVERTISING BUDGET

SEMI SELFChange in awareness (%)

Buffs 1.1% 1.9%Singles 1.0% 0.5%Professionals 1.5% 0.3%High earners 1.4% 0.5%Others 0.9% 0.4%

Change in market share (%)Buffs 0.5% 1.4%Singles 0.3% 0.2%Professionals 1.0% 0.1%High earners 0.7% 0.0%Others 0.1% 0.1%

Change in contribution after marketing (K$) 145 -129Notes. 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

SEMI SELFChange in number of distributors (U)

Specialty stores 997 1,088Depart. stores 430 260Mass Merchandis. 919 264

Change in market share (%)Specialty stores -0.1% 0.9%Depart. stores 0.8% 0.5%Mass Merchandis. 1.6% 0.1%

Change in contribution after marketing (K$) 582 59Notes. 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.



SEMANTIC SCALES - VODITE MARKET

SEMANTIC SCALES - IDEAL VALUES (1 TO 7)

Segment Autonomy Max Freq Diameter Design Weight PriceInnovs 4.60 4.90 3.78 3.40 4.23 6.10Adopters 5.09 4.04 3.10 4.11 3.66 5.35Followers 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



MARKET FORECAST - VODITE MARKET

MARKET FORECAST - SEGMENT SIZES AND GROWTH RATES

Segment Innovs Adopters Followers TotalSegment 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. 139 231 616 985Relative segment sizes in % Actual size this period 0.0% 0.0% 0.0% 0.0% Forecasted size at introduction period 60.0% 30.0% 10.0% 100.0% Forecasted size 5 periods after intro. 14.1% 23.4% 62.5% 100.0%Forecasted growth rates in % Next period Total over first five periods 73.3% 477.5% 4516.8% 638.9% Average over first five periods 14.7% 55.0% 160.7% 64.9%

SMA 2015 E Annual Report P1

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Transcript of SMA 2015 E Annual Report P1