Marketing questions 2

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Company Dashboard – Firm T – Period 2 SPI Revenues (M$) Earnings Before Taxes (M$)

Total Market Share (%U) Total Market Share (%$)

Brand Revenues (M$) Brand Contribu�on (M$)

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Financial Report – Firm T – Period 2 The financial statements of firm T published for Period 2 have been prepared on December 31st, Period 2 in accordance with Interna�onal Financial Repor�ng Standards (IFRS), as adopted in the Markstrat world.

Company Profit & Loss Statement The table below shows the evolu�on of firm T financial results in thousands of dollars, as well as the cumula�ve results since Period 0.

Period 2 Period 1 Period 0 Cumula�ve Revenues 70,207 64,373 52,148 186,728 Cost of goods sold ‐32,140 ‐33,758 ‐31,703 ‐97,602 Inventory costs ‐165 ‐413 ‐313 ‐891 Contribu�on before marke�ng 37,901 30,203 20,131 88,236 Adver�sing expenditures ‐4,164 ‐4,000 ‐4,000 ‐12,164 Commercial costs ‐1,957 ‐1,282 ‐1,224 ‐4,463 Contribu�on a�er marke�ng 31,780 24,921 14,907 71,609 Market research studies ‐446 ‐406 ‐245 ‐1,097 Research and development ‐3,250 0 0 ‐3,250 Loan reimbursed 0 0 0 0 Loan received 200 0 0 200 Loan interests paid ‐10 0 0 ‐10 Excep�onal cost or profit 0 0 0 0 Earnings before taxes 28,275 24,515 14,662 67,452

Revenues & EBT Evolu�on Cost Evolu�on ‐ By Category (%Revenue)

Brand contribu�on The table below shows a comparison of the net contribu�on generated by the brands marketed by firm T in Period 2.

TONE TOPS Sonites Sonites

Revenues 55,724 14,483 Cost of goods sold ‐22,962 ‐9,178 Inventory holding cost 0 ‐165 Inventory disposal loss 0 0 Contribu�on before marke�ng 32,762 5,139 Adver�sing media ‐2,304 ‐1,700 Adver�sing research ‐80 ‐80 Commercial costs ‐1,334 ‐623 Contribu�on a�er marke�ng 29,044 2,737

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Revenues

Note: brands with low revenues or contribu�on (< 5% total) are not shown on this chart

Contribu�on a�er Marke�ng

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Marke�ng results The sec�on below provides key marke�ng results for each of your marketed brands

Market Shares

TONE TOPS Sonites Sonites

Volume Market Share 14.7 % 5.2 % Value Market Share 20.0 % 5.2 %

Volume sold The table below provides the volume sold for each of your marketed brands in each of the three distribu�on channels. Sales are given in thousands of units.

Distribu�on Coverage The distribu�on coverage figures in the chart and table below represent the propor�on of distributors who carry a given product. The report gives the informa�on for each brand currently on the market. The number of distributors in each distribu�on channel is provided as well.

Specialty stores Mass Merch. Online Stores Number of distributors 9,777 6,166 1,027

Brand prices The table below shows the prices in $ of your marketed brands. The Recommended Retail Price is the price that you specified in your marke�ng mix decisions. The Average Retail Price is the average end‐user price, taking into account the discount offered by distributors. Finally, the Average Selling Price is equal to the Average Retail Price minus the distribu�on margins.

TONE TOPS Sonites Sonites

Recommended Retail Price $ 530 $ 395 Average Retail Price $ 512 $ 385 Average Selling Price $ 329 $ 244

Loans and Budget Changes The le� table below summarizes the loans and/or budget changes that were granted to your company by the instructor. The other table provides the past and future payments made by your company to reimburse the loans. The first column shows the reimbursement of the capital borrowed; the second columns shows the interests paid in the period; the third column indicates how much capital remains to be reimbursed at the end of the period.

Budget increase (K$)

Budget decrease (K$)

Loan capital borrowed (K$)

Loan Dura�on Interest rate

(%) Period 0 Period 1 Period 2 200 1 5 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10

Capital reimbursed (K$)

Interest paid (K$)

Capital remaining (K$)

0 10 200

200 10 ‐

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Produc�on Report – Firm T – Period 2 The report below provides with informa�on on produc�on levels and produc�on costs for each of the brands marketed in Period 2.

Sales, Produc�on and Inventory The chart below shows the units sold , the produc�on level and inventory level for each of your brands at the end of Period 2.All numbers are given in thousands of units.

The table below provides you with addi�onal details such as planned produc�on versus the actual one, and the inventory levels at the beginning and at the end of Period 2.All numbers are given in thousands of units.

TONE TOPS Sonites Sonites

Units sold 169 59 Produc�on Plan (your decision) 173 50 Produc�on 169 40 Inventory at beginning of period 0 33 Inventory at end of period 0 14

Unit Cost, COGS and Inventory Holding Cost The table below shows the unit transfer cost for each of yourmarketed brands. The “current“ unit cost is the cost of the most recently produced units, while the “average” unit cost takes into account the units that were in your inventory at the beginning of the period. Unit transfer costs are given in $; units sold in thousands of units. COGS (Cost of Goods Sold) are equal to “Units sold” x “Average unit transfer cost”. COGS are given in thousands of $. Finally, this table shows the costs incurred for holding your inventory(storage cost, cost of capital, …). Inventory holding cost is equal to: “Units in inventory” x “Average unit transfer cost” x 8%. It is given in thousands of $.

TONE TOPS Sonites Sonites

Current unit transfer cost 136 150 Average unit transfer cost 136 154 Units sold 169 59 COGS 22,962 9,178 Inventory at end of period 0 14 Inventory holding cost 0 165

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R&D Report – Firm T – Sonites Market – Period 2 This report provides informa�on on the ac�vi�es conducted for your division by the R&D department during Period 2.

Projects completed in Period 2 The projects listed below have just been completed and can be used to launch new brands or upgrade new ones

Available Since Physical Characteris�cs Base Cost in $ Cumula�ve Budget

(K$)Features (1) Design (2) Ba�ery (3) Display (4) Power (5) Current Minimum POTONE_1 Period 2 11 9 53 26 65 134 134 1,650 POTOPS_1 Period 2 7 8 48 23 53 112 112 1,600 (1) Features (Number of): From 5 To 20. (2) Design (Index): From 3 To 10. (3) Ba�ery (Hour): From 24 To 96. (4) Display (Inch): From 4 To 40. (5) Power (Gflops): From 5 To 100.

Projects completed in past periods The projects listed below have been completed in past periods. The ones at the top are currently used as the produc�on pla�orm of one or several of your marketed brands. The ones in italic, if any, are either no longer used or have never been used to produce a brand.

Available Since

Physical Characteris�cs Base Cost in $ Cumula�ve Budget (K$)

Pla�orm of BrandFeatures (1) Design (2) Ba�ery (3) Display (4) Power (5) Current Minimum

POTONE Period 0 16 7 74 24 75 196 144 1,500 TONE POTOPS Period 0 10 4 35 38 95 180 158 2,000 TOPS (1) Features (Number of): From 5 To 20. (2) Design (Index): From 3 To 10. (3) Ba�ery (Hour): From 24 To 96. (4) Display (Inch): From 4 To 40. (5) Power (Gflops): From 5 To 100.

Projects par�ally developed in Period 2 You have no par�ally completed projects.

Shelved projects You have no shelved projects.

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Decision Review – Firm T – Sonites Market – Period 2 This report provides a review of the decisions made by firm T at the beginning of Period 2.

Resource Alloca�on Overview The three charts below show how resources have been allocated across markets, func�ons and brands. All numbers are given in thousands of dollars.

Resource Alloca�on by Market Resource Alloca�on by Func�on – Sonites Brands

Resource Alloca�on by Brand

R&D projects The table below lists the projects which the R&D Department will develop in Period 2

Project Objec�ve Features (1) Design (2) Ba�ery (3) Display (4) Power (5) Requested Base

Cost ($) Allocated Budget

(K$) POTONE_1 High Earners 11 9 53 26 65 0 1,650 POTOPS_1 Shoppers 7 8 48 23 53 0 1,600 (1) Features (Number of): From 5 To 20. (2) Design (Index): From 3 To 10. (3) Ba�ery (Hour): From 24 To 96. (4) Display (Inch): From 4 To 40. (5) Power (Gflops): From 5 To 100.

Online Query The table below lists the online queries made to the R&D Department while making Period 2 decisions

Query Features (1) Design (2) Ba�ery (3) Display (4) Power (5) Requested Base

Cost ($) Requested Budget

Minimum Cost

potone_1 11 9 53 26 65 0 1,390 135 Potone_1 14 9 53 26 65 0 1,410 137 POTOPS_1 7 8 48 23 53 0 1,400 113

(1) Features (Number of): From 5 To 20. (2) Design (Index): From 3 To 10. (3) Ba�ery (Hour): From 24 To 96. (4) Display (Inch): From 4 To 40. (5) Power (Gflops): From 5 To 100.

Brand Por�olio

TONE TOPS Por�olio opera�on Maintained Maintained Base project past period POTONE POTOPS Base project this period POTONE POTOPS

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Marke�ng Mix

TONE TOPS Produc�on planning (in units) 173,000 50,000 Recommended retail price (in $) 530 395 Adver�sing media (in K$) 2,304 1,700 Adver�sing research (in K$) 80 80

Segmenta�on Strategy

TONE TOPS Explorers 20 % 30 % Shoppers 10 % 25 % Professionals 20 % 10 % High Earners 40 % 15 % Savers 10 % 20 %

Perceptual Objec�ves

TONE TOPS Dimension 1 Posi�on 1 Dimension 2 Posi�on 2

Commercial Team Size The table below shows the number of commercial people allocated to each brand in each channel during Period 2.

TONE TOPS Specialty stores 22 10 Mass Merch. 20 10 Online Stores 18 8 TOTAL 60 28

The two charts below show how your commercial team is allocated across channels and brands. All numbers are given in number of salespeople.

Market Research Studies – Sonites Market The table below lists the market research studies purchased by firm T in Period 2, as well as the cost in dollars.

Purchased Studies Cost in $ Consumer survey 63,750 Consumer panel 106,000 Distribu�on panel 63,750 Seman�c scales 10,500 Market forecast 21,250 Compe��ve adver�sing 31,750 Compe��ve commercial team 16,000 Adver�sing experiment 26,500 Commercial team experiment 37,250 Conjoint analysis 37,250 TOTAL 414,000

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Decision Review – Firm T – Vodites Market – Period 2 This report provides a review of the decisions made by firm T at the beginning of Period 2.

Resource Alloca�on Overview The three charts below show how resources have been allocated across markets, func�ons and brands. All numbers are given in thousands of dollars.

Resource Alloca�on by Market Resource Alloca�on by Func�on – Vodites Brands

Market Research Studies – Vodites Market The table below lists the market research studies purchased by firm T in Period 2, as well as the cost in dollars.

Purchased Studies Cost in $ Consumer survey 42,500 Seman�c scales 10,500 Market forecast 21,250 Compe��ve commercial team 16,000 Adver�sing experiment 26,500 Commercial team experiment 37,250 TOTAL 154,000

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Industry Dashboard – Firm T – Period 2 Stock Market Period 2

SPI REV NC Cum. NC R 1,474 70 26 52 S 1,450 40 19 44 L 1,390 66 30 68 T 1,331 70 28 67 M 1,081 35 13 44 SPI: Share Price Index. Rev.: Revenues (million $). NC: Net Contribu�on (million $). Cum. NC: Cumula�ve NC (million $).

Share Price Index Evolu�on

Industry Retail Sales Industry Volume

Value Market Shares Unit Market Shares

Top Selling Brands – Retail Sales

in million $

Top Selling Brands – Volume

in thousands of units

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Industry Informa�on – Period 2 This report provides economic and cos�ng data for the current period as well as es�mates for the next period.

Economic Variables

Current Period Value Next Period Es�ma�on GNP Growth Rate % 3 % 3 % Infla�on Rate % 2 % 2 % Inventory holding cost per annum % Transfer Cost 8 % 8 % Loss incurred for inventory disposal % Transfer Cost 20 % 20 % Commercial people opera�ng cost $ 21,224 21,649 Commercial people hiring and training cost $ 3,184 3,247 Commercial people firing cost $ 5,306 5,412

Market Research Costs

All Markets Sonites Vodites Industry benchmarking 32,500 Compe��ve adver�sing 32,500 32,500 Compe��ve commercial team 16,250 16,250 Conjoint analysis 38,000 38,000 Consumer panel 108,250 75,750 Consumer survey 65,000 43,250 Distribu�on panel 65,000 54,000 Adver�sing experiment 27,000 27,000 Commercial team experiment 38,000 38,000 Market forecast 21,750 21,750 Mul�dimensional scaling 38,000 38,000 Seman�c scales 10,750 10,750 TOTAL 32,500 460,500 395,250 (all numbers in $)

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Market Report – Sonites Market – Period 2 This report provides general informa�on on the 10 Sonites brands marketed in Period 2.

Brand Retail Sales & Volume The two tables below show the marketed brand retail sales (in thousands of $) and the volume (in thousands of units), sorted in decreasing order. Shares of market in value and in unit are also provided

Brand Value Share Retail Sales Varia�on TONE 20.0 % 86,736 11,836 ROCK 19.9 % 86,400 28,636 LOOP 19.5 % 84,914 12,672 SOLO 8.2 % 35,331 14,383 MOST 8.0 % 34,396 ‐4,794 SOFT 5.7 % 24,428 1,091 ROLL 5.4 % 23,456 2,592 TOPS 5.2 % 22,871 ‐3,641 MOVE 4.1 % 17,648 60 LOCK 4.0 % 17,303 2,625 TOTAL 100.0 % 433,484 65,460 ‐

Brand Unit Share Volume Varia�on ROCK 15.6 % 180 60 TONE 14.7 % 169 18 LOOP 14.6 % 168 25 MOST 12.4 % 143 ‐11 SOFT 10.9 % 126 6 SOLO 10.3 % 119 53 LOCK 7.7 % 89 12 TOPS 5.2 % 59 ‐9 MOVE 4.3 % 49 6 ROLL 4.3 % 49 10 TOTAL 100.0 % 1,152 171 ‐

Brand Characteris�cs The table below lists the physical a�ributes of marketed brands, as well as their price and es�mated unit cost, both in $.

Brand Launched in Features (1) Design (2) Ba�ery (3) Display (4) Power (5) Price Base Cost ($) Base Cost (%Price) LOCK Period 0 8 3 46 20 13 210 58 27 % LOOP Period 0 14 7 67 27 71 520 200 38 % MOST Period 0 8 5 53 11 10 258 75 29 % MOVE Period 0 13 4 82 17 30 375 133 35 % ROCK Period 0 16 7 78 33 75 495 206 41 % ROLL Period 0 13 4 78 36 91 493 218 43 % SOFT Period 0 5 3 49 8 13 208 41 19 % SOLO Period 0 7 8 60 11 20 315 89 28 % TONE Period 0 16 7 74 24 75 530 196 36 % TOPS Period 0 10 4 35 38 95 395 180 45 %

(1) Features (Number of): From 5 To 20. (2) Design (Index): From 3 To 10. (3) Ba�ery (Hour): From 24 To 96. (4) Display (Inch): From 4 To 40. (5) Power (Gflops): From 5 To 100.

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Consumer Survey – Sonites Market – Period 2 This survey ques�onnaire has been administered to 3,000 individuals during Period 2. It gives brand awareness, purchase inten�ons and shopping habit data for each consumer segment in the Sonites market

Brand Awareness The brand awareness figures in the chart and table below represent the propor�on of individuals who have unaided recall of a brand name. The report gives the informa�on for each brand currently on the market, in total and by consumer segment.

Average Brand Awareness (in %)

Brand Awareness by Consumer Segment

Brand Firm Explorers Shoppers Professionals High Earners Savers LOCK L 40 % 45 % 37 % 41 % 42 % LOOP L 69 % 61 % 78 % 81 % 42 % MOST M 50 % 63 % 38 % 44 % 66 % MOVE M 69 % 76 % 60 % 63 % 39 % ROCK R 69 % 56 % 73 % 74 % 39 % ROLL R 60 % 51 % 64 % 63 % 36 % SOFT S 60 % 73 % 54 % 60 % 74 % SOLO S 71 % 78 % 59 % 65 % 54 % TONE T 67 % 53 % 65 % 77 % 41 % TOPS T 62 % 51 % 58 % 59 % 39 %

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Purchase Inten�ons The purchase inten�ons figures in the chart and table below represent the propor�on of individuals who would select a brand as their first choice, if they were buying within a year. The report gives the informa�on for each brand currently on the market, in total and by consumer segment. Please note that these figures correspond to the situa�on of the period when the study is done and does not necessarily represent purchase inten�ons for the following year.

Average Purchase Inten�ons

Purchase Inten�ons by Consumer Segment

Brand Firm Explorers Shoppers Professionals High Earners Savers LOCK L 3.3 % 8.4 % 0.3 % 0.2 % 21.7 % LOOP L 11.7 % 7.8 % 22.8 % 40.0 % 1.1 % MOST M 3.7 % 11.6 % 0.3 % 0.3 % 31.5 % MOVE M 7.7 % 15.2 % 1.4 % 1.4 % 2.8 % ROCK R 14.4 % 7.4 % 48.1 % 16.2 % 1.0 % ROLL R 11.5 % 4.9 % 3.9 % 2.1 % 0.7 % SOFT S 3.9 % 10.0 % 0.4 % 0.3 % 24.9 % SOLO S 6.5 % 21.6 % 0.8 % 0.7 % 14.1 % TONE T 11.2 % 6.8 % 19.8 % 37.6 % 1.1 % TOPS T 26.1 % 6.4 % 2.3 % 1.2 % 1.0 % TOTAL ‐ 100 % 100 % 100 % 100 % 100 %

Shopping Habits The shopping habit data in the chart below represent, for each channel, the propor�on of individuals who would choose that channel when shopping for a Sonites.

Consumer Panel – Sonites Market – Period 2 The consumer panel study shown below is based on a sample group of over 500 consumers whose buying behavior is believed to be representa�ve of the en�re Sonites market. It provides market shares by consumer segment as well as industry sales in this product category

Market Shares (Based on units sold) The market shares figures in the chart and table below represent the propor�on of individuals who have purchased a given brand during Period 2. The report gives the informa�on for each brand currently on the market, in total and by consumer segment

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Total Market Shares (%Unit)

Market Shares by Consumer Segment (%Unit)

Brand Firm Explorers Shoppers Professionals High Earners Savers LOCK L 2.4 % 7.4 % 0.2 % 0.1 % 19.4 % LOOP L 13.7 % 8.2 % 23.7 % 39.1 % 1.0 % MOST M 3.1 % 11.6 % 0.2 % 0.2 % 32.1 % MOVE M 6.0 % 12.1 % 1.0 % 1.0 % 2.1 % ROCK R 15.3 % 7.5 % 45.7 % 14.8 % 0.9 % ROLL R 12.7 % 5.3 % 3.9 % 2.0 % 0.7 % SOFT S 3.6 % 10.8 % 0.4 % 0.3 % 27.2 % SOLO S 6.7 % 23.4 % 0.8 % 0.7 % 14.6 % TONE T 13.9 % 8.2 % 22.3 % 40.9 % 1.2 % TOPS T 22.7 % 5.4 % 1.8 % 0.9 % 0.8 % TOTAL ‐ 100 % 100 % 100 % 100 % 100 %

Industry Volume (based on units sold) The charts below give the unit product category sales by consumer segment and in total. The rela�ve sizes of the 5 consumer segments are provided as well.

Unit Sales by Consumer Segment in thousands of units Rela�ve Consumer Segment Sizes

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Distribu�on Panel – Sonites Market – Period 2 The distribu�on panel provides con�nuous tracking of product sales to consumers, based on informa�on gathered at the retail point‐of‐sale. Informa�on is primarily gathered from scanning cash‐registers with supplementary store audits. Our read represents sales in about 35,000 retail outlets in the Markstrat world. This report gives market shares and coverage data, by distribu�on channel.

Sales and Market Shares by Channel The table and charts below provide the market shares, based on units sold, by channel for each brand currently on the market. They also give the unit product category sales by channel and in total. The rela�ve sizes of the channel are provided as well.

Market Shares by Channel (%Unit)

Brand Firm Specialty stores Mass Merch. Online Stores LOCK L 4 % 13 % 6 % LOOP L 19 % 7 % 21 % MOST M 7 % 21 % 8 % MOVE M 5 % 4 % 4 % ROCK R 20 % 9 % 19 % ROLL R 6 % 3 % 5 % SOFT S 7 % 18 % 6 % SOLO S 9 % 13 % 7 % TONE T 18 % 9 % 19 % TOPS T 7 % 2 % 6 % TOTAL ‐ 100 % 100 % 100 %

Unit Sales by Channel in thousands of units Rela�ve Channel Sizes (%Units Sold)

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Distribu�on Coverage The distribu�on coverage figures in the charts and table below represent the propor�on of stores who carry a given brand. The report gives the informa�on for each brand currently on the market. The number of outlets in each distribu�on channel is provided as well.

Distribu�on Coverage by Channel (%Stores)

Brand Firm Specialty stores Mass Merch. Online Stores LOCK L 25 % 40 % 33 % LOOP L 45 % 27 % 50 % MOST M 29 % 46 % 29 % MOVE M 31 % 30 % 30 % ROCK R 39 % 34 % 33 % ROLL R 47 % 42 % 46 % SOFT S 36 % 51 % 28 % SOLO S 43 % 43 % 32 % TONE T 49 % 42 % 51 % TOPS T 34 % 29 % 37 %

Number of outlets in each Channel Rela�ve Channel Sizes (%Outlet)

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Seman�c Scales – Sonites Market – Period 2 The seman�c scales study provides data based on a seman�c differen�al ques�onnaire administered to 600 individuals. Several seman�c scales corresponding to the Sonites physical a�ributes were presented to the respondents. The figure below shows a sample scale for Power.

Several crucial informa�on are derived from these ques�onnaires: brand percep�ons, ideal value along each scale, ideal value evolu�on, brand maps.

Brand percep�ons Respondents are asked to rate each brand according to the way they perceive the brand on each characteris�c. The reported results are summarized in the table below, using the mean value for each brand.

Brand Firm Features Design Ba�ery Display Power Price LOCK L 2.1 1.5 2.7 3.6 1.5 2.2 LOOP L 4.7 4.8 4.7 4.9 5.1 6.2 MOST M 2.1 2.4 3.3 2.1 1.5 2.8 MOVE M 4.3 1.8 5.9 3.1 2.4 5.0 ROCK R 5.5 4.8 5.6 5.9 5.3 6.0 ROLL R 4.3 1.6 5.6 6.4 6.2 6.2 SOFT S 1.5 1.5 3.0 1.6 1.5 2.1 SOLO S 1.7 5.7 4.0 2.1 1.8 3.5 TONE T 5.5 4.8 5.3 4.4 5.3 6.2 TOPS T 2.9 1.6 1.8 6.5 6.5 5.2

Ideal Values Respondents are also asked to indicate their preferred (also called “Ideal”) value on each scale. The reported results are summarized in the table below, using the mean value for each segment.

Segment Features Design Ba�ery Display Power Price Explorers 4.6 1.9 5.8 5.9 6.2 3.6 Shoppers 1.9 5.3 3.0 4.4 4.3 3.0

Professionals 5.3 5.4 4.9 5.5 5.4 5.6 High Earners 3.2 5.8 3.4 4.5 4.8 5.8

Savers 2.6 3.9 1.8 2.7 2.2 2.1

Importance of characteris�cs Finally, respondents are asked to rate the importance of each characteris�c in their purchasing decision. Although consumer segments differ on the exact importance ra�ngs a�ributed to the characteris�cs, they tend to agree on the ranking of the scales, i.e. their “rela�ve” importance. This is why only average value are reported on the chart below. Ra�ngs are given on a scale from 1 (not important) to 10 (very important).

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Brand Maps Maps represen�ng consumers’ percep�ons based on the seman�c scales can be obtained for each pair of a�ributes. Five maps are provided below. We invite you to export data into Excel and draw addi�onal maps if needed

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Ideal Value Evolu�on This study monitors the evolu�on of consumer needs over �me. The preferred values on each scale over the past (3 years maximum) are recorded in the table below, for each consumer segment.

Segment Period Features Design Ba�ery Display Power Price Explorers Period 0 4.7 1.7 6.2 6.1 6.4 3.4 Explorers Period 1 4.6 1.8 6.0 6.0 6.3 3.5 Explorers Period 2 4.6 1.9 5.8 5.9 6.2 3.6

High Earners Period 0 3.2 6.1 3.5 4.8 4.9 5.9 High Earners Period 1 3.2 5.9 3.4 4.6 4.8 5.9 High Earners Period 2 3.2 5.8 3.4 4.5 4.8 5.8 Professionals Period 0 5.8 5.7 5.0 5.4 5.1 5.1 Professionals Period 1 5.5 5.6 5.0 5.4 5.2 5.3 Professionals Period 2 5.3 5.4 4.9 5.5 5.4 5.6

Savers Period 0 2.5 3.9 1.7 2.4 2.2 2.2 Savers Period 1 2.5 3.9 1.8 2.6 2.2 2.1 Savers Period 2 2.6 3.9 1.8 2.7 2.2 2.1

Shoppers Period 0 1.8 5.3 3.0 4.0 3.7 3.2 Shoppers Period 1 1.8 5.3 3.0 4.2 4.0 3.1 Shoppers Period 2 1.9 5.3 3.0 4.4 4.3 3.0

Online Tool ‐ Addi�onal Charts The most important charts and graph of the Seman�c Scales study are given in the above report.But an online tool provides addi�onal charts that will allow you to: ‐ Monitor the evolu�on of ideal values in a visual way ‐ Design Powerful R&D projects as described in sec�on VI of the Markstrat Handbook

Access Addi�onal Charts

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Seman�c Scales – Vodites Market – Period 2 The seman�c scales study provides data based on a seman�c differen�al ques�onnaire administered to 600 individuals. Several seman�c scales corresponding to the Vodites physical a�ributes were presented to the respondents. The figure below shows a sample scale for Power.

Several crucial informa�on are derived from these ques�onnaires: brand percep�ons, ideal value along each scale, ideal value evolu�on, brand maps.

Brand percep�ons No brands were marketed in this market this period.

Segment Resolu�on Energy Carbon Connec�vity Apps Price Innovators 5.1 3.3 4.3 4.8 3.7 6.3 Adopters 4.4 4.0 4.9 3.8 4.3 5.5 Followers 3.3 4.4 3.4 3.1 3.3 4.8

Brand Maps Brands map are not available as no brands were marketed in this market this period.

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Compe��ve Adver�sing Es�mates – Sonites Market – Period 2 Es�mates of compe��ve adver�sing budgets are given by firm, by brand and by consumer segments. All brands marketed in the current period are included in the study.

Es�mated Total Adver�sing Expenditures (in million dollars) – By Firm and by Consumer Segment

Es�mated Brand Adver�sing Expenditures (in thousand dollars) – Total and by Consumer Segment Brand Explorers Shoppers Professionals High Earners Savers TOTAL SOFT 310 730 310 310 1,150 2,810 SOLO 480 1,070 320 320 540 2,730 LOOP 310 310 940 830 210 2,600 ROCK 360 360 940 570 310 2,540 MOVE 380 1,410 220 220 220 2,450 TONE 470 360 470 720 360 2,380 TOPS 470 420 260 310 370 1,830 LOCK 260 420 210 160 680 1,730 MOST 210 270 160 160 850 1,650 ROLL 260 260 560 360 200 1,640 TOTAL 3,510 5,610 4,390 3,960 4,890 22,360

Es�mated Communica�on Dimensions and Message Quality The table below provides an es�mate of the dimensions that have been used in brand communica�on, as well as an es�mate of the message quality. Higher message quali�es are obtained with higher adver�sing research budgets.

Brand Firm Communica�on Dimensions Message Quality LOCK L LOOP L MOST M Price & Design Poor MOVE M Price & Design Good ROCK R ROLL R SOFT S SOLO S TONE T TOPS T

Compe��ve Commercial Team Size Es�mates – Sonites Market – Period 2 Es�mates of compe��ve commercial team size are given by firm, by brand and by distribu�on channel. The breakdown by brand and channel is also provided. All brands marketed in the current period are included in the study.

Es�mated Commercial Team Size (in full‐�me equivalent) – By Firm and by Distribu�on Channel

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Es�mated Brand Commercial Team Sizes (in commercial people equivalent) – Total and by Distribu�on Channel Brand Specialty stores Mass Merch. Online Stores TOTAL TONE 22 20 18 60 ROLL 22 22 16 60 SOLO 19 18 5 42 SOFT 13 25 4 42 LOOP 18 8 14 40 MOST 10 20 5 35 ROCK 12 12 6 30 LOCK 6 18 6 30 TOPS 10 10 8 28 MOVE 8 12 5 25 TOTAL 140 165 87 392

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Adver�sing Experiment – Sonites Market – Period 2 This experiment is conducted by increasing adver�sing budgets in a selected regional market. The results of the study are used to project the level of awareness and the market share that would have been achieved na�onwide by each brand with the same increase in adver�sing, and if compe��ve ac�ons have remained unchanged. The impact on brand contribu�on is provided as well.

The results below would have been achieved by a given brand if its adver�sing budget had been increased by 20% and if compe��ve ac�ons had remained unchanged.

Expected Change in Contribu�on (in K$)

Expected Change in Brand Awareness

Brand Explorers Shoppers Professionals High Earners Savers TONE 1.6 % 1.1 % 1.4 % 1.3 % 1.2 % TOPS 1.9 % 1.3 % 1.0 % 1.7 % 1.1 %

Expected Change in unit Market Share (%U)

Brand Explorers Shoppers Professionals High Earners Savers TONE 0.4 % 0.2 % 0.5 % 0.4 % 0.0 % TOPS 0.9 % 0.2 % 0.1 % 0.1 % 0.0 %

Commercial Team Experiment – Sonites Market – Period 2 This experiment is set up by increasing the number of commercial people per channel in a selected regional market. The results of the study are used to project the addi�onal number of distributors and the market share that would have been achieved na�onwide by each brand with the same increase in commercial team and if compe��ve ac�ons have remained unchanged. The impact on brand contribu�on is provided as well.

The results below would have been achieved if the number of salespeople had been increased by 10 in each channel and if compe��ve ac�ons had remained unchanged.

Expected Change in Contribu�on (in K$)

Expected Change in Number of Distributors

Brand Specialty stores Mass Merch. Online Stores TONE 291 234 25 TOPS 338 231 39

Expected Change in unit Market Share (%U)

Brand Specialty stores Mass Merch. Online Stores TONE 1.0 % 0.8 % 1.1 % TOPS 0.7 % 0.3 % 0.6 %

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Market Forecast – Sonites Market – Period 2 This study provides es�mates of the expected market size in one period and in five periods. Results are given for the whole market and are also broken down by consumer segment.

Total Market Size The charts below show the actual market size this period and the expected market size in one and five periods. Market growth rates are reported as well. Market sizes are given in thousands of units.

Market Size (in thousands of units) Market Growth rates (in %)

Market Size by Consumer Segment The charts below show the actual market size this period and the expected market size in one and five periods. Results are broken down by segment. Rela�ve segment size, in % of the total market size, and segment growth rates are reported as well. Sizes are given in thousands of units.

Market size broken down by consumer segment (in thousands of units)

Consumer Segment Growth Rates (in % units)

Rela�ve Consumer Segment Sizes (in % of total market size)

Current Period In Five Periods

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Market Forecast – Vodites Market – Period 2 This study provides es�mates of the poten�al size of the market if a brand were introduced next period. Results are given for the whole market and are also broken down by consumer segment. This forecast is based in declared likelihood of purchase obtained from a sample of individuals. It should be noted that this forecast does not rely on history and tends to be less accurate and generally somewhat op�mis�c.

Poten�al Total Market Size The charts below show the poten�al market size next period and in five periods, if a brand were introduced next period. Market growth rates are reported as well. Market sizes are given in thousands of units.

Poten�al market size (in thousands of units) Expected market growth rates over 5 periods (in %U)

Poten�al Market Size by Consumer Segment The charts below show the poten�al market size in one and five periods, if a brand were introduced next period. Results are broken down by segment. Rela�ve segment size, in % of the total market size, and segment growth rates are reported as well. Sizes are given in thousands of units.

Poten�al market size broken down by consumer segment (in thousands of units)

Poten�al consumer segment sizes (in % of total market size)

Next Period In Five Period

Expected Consumer Segment Growth Rates (in % units)

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Conjoint Analysis – Sonites Market – Period 2 This study enables firms to es�mate the rela�ve importance of the price and physical characteris�cs of a product category. Only the three characteris�cs that are perceived as most important are included in the study. The study also provides the u�lity a�ached by consumers to varying levels of price and characteris�cs. Results are broken down by consumer segment.

Rela�ve importance of price and physical characteris�cs

U�lity charts The charts below show the u�li�es a�ached to four arbitrary levels in each dimension included in the study. U�li�es are measured on a scale from 0 (very low u�lity) to 1 (very high u�lity): the higher the u�lity the higher the preference of consumer for the corresponding level in this dimension. The four levels have been chosen in the feasible range for the dimension so as to test varying levels of interest for the segment. Results are broken down by consumer segment.

Explorers

High Earners

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Professionals

Savers

Shoppers