Strategic Plan

Broad Differentiator

For our company, we have decided to seek a broad differentiator strategy. Our goal with this strategy is to rule every portion within the market. The company will gain a competitive advantage by creating products with an excellent design, high awareness and easy accessibility. The company will develop an aggressive R&D strategy that keeps designs new and exciting. Our R&D strategy will stick to release deadlines religiously and will bring innovative products to the market in a quick time span. Most products will keep pace with the market, offering improved size and performance. Prices will be above average. Capacity will be expanded as higher demand is generated.

Mission Statement

Premium products for the industry: Our brands withstand the test of time. Our stakeholders are customers, stockholders, management and employees.

Tactics

Research & Development: We will keep our existing product line, maintaining a presence in every segment. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability. The company will do this by ensuring that product revisions are completed within a timely manner. The overall goal is to develop products that will be completed and released before the end of June or July of the current year. The purpose of this is to maximize the amount of sales for the current year. To do this, each products reliability or MTBF will need to be set as soon as possible. Since the Performance segment is the only segment that prioritizes MTBF, the company’s product, Aft, will be set at a maximum of 27000 MTBF to satisfy the needs of the consumer. As for the rest of the segments, they will be all set to the minimum MTBF, Traditional will be set to 14000, Low will be 12000, High will be 20000 and Size will be 16000. The other reason for this is to reduce the cost of the products and maximize profitability. Marketing: Our company will spend aggressively in promotion and sales in all segments. We want every customer to know about our superb designs, and we want to make our products easy for customers to find. We will price at a premium. Our company is planning to price our products based on the competition and customer expectations. For the Low end segment, price is an important factor and because of this the price of the product needs to be either the same as the competition or lower. As for the remaining segments, the prices will most likely be priced at the maximum possible to make the product profitable as well as to cover the costs involved with the product. The main goal of marketing for the company is to ensure that each product is budgeted correctly for both sales and promotion. Our company’s primary objective is to get every product to 100% awareness by the end of round 4. We will do this by budgeting 1,500 to

2,000 for each product based on how much funds are available. Our best selling products will most likely receive a budget of 2,000 and as for the lower selling products, they will receive a budget of 1,500 until they improve. Once a product has reached 100% awareness, the budget will be reduced to 1,400 because that is the area whether it will maintain 100% awareness and help the company save money for other areas. As for the sales budget, this is will most likely be the same as the promotion budget. The only difference is that since it takes a lot longer for accessibility to reach 100% than awareness, the goal of 100% by the end of round 4 is unreasonable. So, the goal for the sales budget is to reach that 100% threshold before the 7th round at the latest.

Product Segment Round Price Promo Awareness Sales Accessibility Forecast Able Tradtional 0 $ 28.00 $ 1,000 25% $ 1,000 25% 1,049

1 $ 29.50 $ 2,000 50% $ 2,000 50% 1,251 2 $ 29.00 $ 2,000 75% $ 2,000 75% 1,366 3 $ 28.50 $ 2,000 90% $ 2,000 90% 1,491 4 $ 28.00 $ 1,400 100% $ 2,000 100% 1,628 5 $ 27.50 $ 1,400 $ 2,000 1,778

Acre Low 0 $ 21.00 $ 900 25% $ 900 25% 1,671 1 $ 21.00 $ 2,000 50% $ 2,000 50% 2,085 2 $ 20.50 $ 2,000 75% $ 2,000 75% 2,329 3 $ 20.00 $ 2,000 90% $ 2,000 90% 2,602 4 $ 19.50 $ 1,400 100% $ 2,000 100% 2,906 5 $ 19.00 $ 1,400 $ 2,000 3,246

Adam High 0 $ 38.00 $ 800 25% $ 800 25% 424 1 $ 39.50 $ 1,500 50% $ 1,500 50% 573 2 $ 39.00 $ 2,000 75% $ 2,000 75% 666 3 $ 38.50 $ 2,000 90% $ 2,000 90% 774 4 $ 38.00 $ 1,400 100% $ 2,000 100% 899 5 $ 37.50 $ 1,400 $ 2,000 1,045

Aft Pfmn 0 $ 33.00 $ 700 25% $ 700 25% 374 1 $ 34.50 $ 1,500 50% $ 1,500 50% 543 2 $ 34.00 $ 2,000 75% $ 2,000 75% 651 3 $ 33.50 $ 2,000 90% $ 2,000 90% 780 4 $ 33.00 $ 1,400 100% $ 2,000 100% 934 5 $ 32.50 $ 1,400 $ 2,000 1,119

Agape Size 0 $ 33.00 $ 700 25% $ 700 25% 364

1 $ 34.50 $ 1,500 50% $ 1,500 50% 509 2 $ 34.00 $ 2,000 75% $ 2,000 75% 602 3 $ 33.50 $ 2,000 90% $ 2,000 90% 713 4 $ 33.00 $ 1,400 100% $ 2,000 100% 843 5 $ 32.50 $ 1,400 $ 2,000 997

Production: We will grow capacity to meet the demand that we generate. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map. The goal for production is to produce 120% of the forecasted amount to prevent a stockout situation if the possibility occurs that the company sells more than what was forecasted. As for capacity, the company will increase these amounts only for two segments, the low end and the traditional segments. So, the company will increase capacity for low end products by 200 a round and traditional products by 100. These numbers will be adjusted based on the amount of financing available and low end capacity will have priority over the traditional. The reason for this decision is that the size of the other three segments will not grow to the point where the top company will sell over 2,000 units. So, the best capacity for these other three segments will be 1,000 because at maximum production it will produce 2,000 units.

Product Segment Round Forecast Production Capacity Automation Able Tradtional 0 1,800 4.0

1 1,049 1,032 1,800 5.0 2 1,251 1,501 1,800 6.0 3 1,366 1,639 1,800 7.0 4 1,491 1,789 1,800 8.0 5 1,628 1,954 1,800 8.0

Acre Low 0 1,400 5.0 1 1,671 1,959 1,400 6.5 2 2,085 2,502 1,600 8.0 3 2,329 2,795 1,800 10.0 4 2,602 3,122 1,800 10.0 5 2,906 3,488 1,800 10.0

Adam High 0 900 3.0 1 424 461 900 3.0

2 573 688 900 3.0 3 666 799 900 4.0 4 774 929 900 5.0 5 899 1,079 900 6.0

Aft Pfmn 0 600 3.0 1 374 355 600 3.0 2 543 652 600 3.0 3 651 781 600 4.0 4 780 936 600 5.0 5 934 1,121 600 6.0

Agape Size 0 600 3.0 1 364 362 600 3.0 2 509 611 600 3.0 3 602 723 600 4.0 4 713 855 600 5.0 5 843 1,012 600 6.0

Finance: We will Finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep assets/equity (leverage) between 1.5 and 2.0.