INDUSTRY A FIRM 4 Period 3 Results **************** Financial Summary **************** Voxtra Channel 1 Channel 2 Total ------ Units Sold 5859 18746 24605 Wholesale Price $105.00 $105.00 Unit Cost $66.00 $66.00 Gross Sales $615,195 $1,968,330 $2,583,525 Cost of Goods Sold $386,694 $1,237,236 $1,623,930 Transfer Charges $11,751 Gross Margin $947,844 Expenses Advertising $110,000 Sales Force-Salary $168,096 $182,104 $350,199 -Firing Costs $0 -Commission $49,216 $157,466 $206,682 Customer Service $65,837 Sales Promotion $0 $12,000 $12,000 R&D for Product Modifications $8,000 Marketing Research $124,000 Total Expenses $876,719 Net Contribution (Loss) $71,125 Digivox Channel 1 Channel 2 Total ------- Units Sold 3457 7068 10525 Wholesale Price $124.00 $139.00 Unit Cost $46.00 $46.00 Gross Sales $428,668 $982,452 $1,411,120 Cost of Goods Sold $159,022 $325,128 $484,150 Transfer Charges $118,811 Gross Margin $808,159 Expenses Advertising $140,000 Sales Force-Salary $71,904 $77,896 $149,801 -Firing Costs $0 -Commission $34,293 $78,596 $112,890 Customer Service $28,163 Sales Promotion $0 $0 $0 R&D for Product Modifications $80,000 Marketing Research $117,000 Total Expenses $627,853 Net Contribution (Loss) $180,306 Total Contribution (Loss) $251,431 Budget for Next Period: $958,000 ( 26% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ Voxtra 32,240 25,792 24,605 1,187 $66.00 Digivox 34,680 27,744 10,525 17,219 $46.00 *************** Industry Sales Report *************** VRD Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- VoicePro 30,437 0.326 $8,460,143 0.421 CogNeato 13,714 0.147 $3,367,061 0.167 AccuTalk 24,604 0.264 $4,030,655 0.200 Voxtra 24,605 0.264 $4,247,746 0.211 Total 93,360 $20,105,605 Unit $ Channel Sales Sales ------- ----- ----- 1 45,698 $11,973,567 2 47,662 $8,132,038 DVC Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- Finley 6,325 0.243 $1,177,388 0.233 CogNeato 2,438 0.094 $463,220 0.092 AccuCom 6,698 0.258 $1,045,275 0.207 Digivox 10,525 0.405 $2,368,757 0.469 Total 25,986 $5,054,641 Unit $ Channel Sales Sales ------- ----- ----- 1 11,216 $2,366,876 2 14,770 $2,687,765 ********** Product Features & Prices Report *********** Average Average VRD Special Error Ease of Retail Price Retail Price Brand Commands Protection Learning Channel 1 Channel 2 ----- -------- ---------- -------- --------- --------- VoicePro 16 7 4 $286.00 $247.69 CogNeato 11 6 7 $245.52 $189.23 AccuTalk 10 4 8 $240.00 $156.79 Voxtra 11 4 5 $210.00 $160.96 Average Average DVC Number Similarity Ability to Retail Price Retail Price Brand of Tasks of Commands Customize Channel 1 Channel 2 ----- -------- ----------- --------- --------- --------- Finley 3 4 3 $200.00 $153.84 CogNeato 4 4 3 $190.00 $146.15 AccuCom 3 4 3 $180.00 $152.37 Digivox 5 4 7 $248.00 $213.84 *************** Marketing Activity Report *************** (Data Reported Is from Period 3) VRD VoicePro CogNeato AccuTalk Voxtra -------- -------- -------- ------ Advertising Dollars $90,000 $107,000 $50,000 $110,000 Advertising Type Direct Direct Direct Direct Sales Promotion Channel 1 $0 $40,000 $0 $0 Channel 2 $0 $0 $5,000 $12,000 Number of Sales Reps Channel 1 19 19 4 12 Channel 2 5 0 20 13 Commission 7% 7% 5% 8% Customer Service $90,000 $106,000 $60,000 $94,000 DVC Finley CogNeato AccuCom Digivox ------ -------- ------- ------- Advertising Dollars $98,000 $110,000 $100,000 $140,000 Advertising Type Pioneering Pioneering Direct Pioneering Sales Promotion Channel 1 $0 $0 $0 $0 Channel 2 $0 $0 $23,000 $0 ********** Report 1: Market Share By Segment ********** VRD Brand Students Home Users Assistants Creators Managers Parents ----- -------- ---------- ---------- -------- -------- ------- VoicePro 0.099 0.124 0.311 0.537 0.710 0.215 CogNeato 0.022 0.045 0.414 0.123 0.101 0.141 AccuTalk 0.411 0.544 0.112 0.116 0.062 0.379 Voxtra 0.468 0.287 0.163 0.224 0.127 0.265 Total Sales 22,617 15,086 20,555 10,189 18,386 6,527 (in units) DVC Brand Students Home Users Assistants Creators Managers Parents ----- -------- ---------- ---------- -------- -------- ------- Finley 0.217 0.164 0.306 0.247 0.320 0.289 CogNeato 0.034 0.046 0.144 0.112 0.147 0.108 AccuCom 0.499 0.282 0.138 0.193 0.189 0.295 Digivox 0.250 0.508 0.412 0.448 0.344 0.308 Total Sales 4,353 6,019 3,938 7,314 3,888 474 (in units) ********** Report 2: Market Share By Channel ********** VRD Brand Channel 1 Channel 2 ----- --------- --------- VoicePro 0.526 0.134 CogNeato 0.300 0.000 AccuTalk 0.045 0.473 Voxtra 0.128 0.393 Total Sales 45,698 47,662 (in units) DVC Brand Channel 1 Channel 2 ----- --------- --------- Finley 0.395 0.129 CogNeato 0.217 0.000 AccuCom 0.080 0.393 Digivox 0.308 0.479 Total Sales 11,216 14,770 (in units) ********** Report 3: Average Customer Preferences ********** Product: VRD Special Error Ease of Approximate Segment Commands Protection Learning Price Range ------- -------- ---------- -------- ----------- Students 11.2 3.3 4.0 $131.00 - $161.00 Home Users 10.0 5.0 7.6 $140.00 - $177.50 Assistants 11.0 6.7 7.9 $204.00 - $264.00 Creators 14.1 2.7 3.5 $229.00 - $289.00 Managers 15.9 5.3 4.6 $244.00 - $319.00 Parents 5.4 3.8 9.6 $151.43 - $194.29 Product: DVC Number of Similarity Ability to Approximate Segment Tasks of Commands Customize Price Range ------- -------- ----------- ------- ----------- Students 2.0 6.8 3.7 $121.00 - $151.00 Home Users 6.6 4.1 4.5 $187.14 - $221.43 Assistants 4.4 6.0 9.2 $197.00 - $245.00 Creators 7.5 3.5 7.5 $200.00 - $260.00 Managers 6.6 8.4 6.1 $180.00 - $210.00 Parents 1.0 10.0 1.2 $151.22 - $177.89 ********** Report 4: Marketing Effectiveness Report ********** # of Competitors # of Competitors with with lower equal or higher Index Index Index ------ ------ ------ Brand Awareness - Voxtra 0.694 2 1 Brand Awareness - Digivox 0.642 3 0 Customer Service Consumer Group Rating 63% Industry Average Rating 81% Channel 1: Sales Rep Workload Index 99% Dealer Satisfaction 0.964 2 1 Channel Strength ("Push") 0.201 1 2 Channel 2: Sales Rep Workload Index 128% Dealer Satisfaction 1.023 2 1 Channel Strength ("Push") 0.448 2 1 ********** Report 5: Detailed Sales Analysis ********** Students Home Users Assistants Creators Managers Parents -------- ---------- ---------- -------- -------- ------- Voxtra -Channel 1 547 501 2,153 927 1,201 530 -Channel 2 10,031 3,833 1,189 1,354 1,140 1,199 Digivox -Channel 1 83 343 1,039 1,328 624 40 -Channel 2 1,005 2,712 582 1,951 712 106 ********** Report 6: Customer Shopping Habits ********** Percent of Percent of shopping in shopping in Segment Channel 1 Channel 2 ------- --------- --------- Students 0.25 0.75 Home Users 0.26 0.74 Assistants 0.85 0.15 Creators 0.57 0.43 Managers 0.72 0.28 Parents 0.48 0.52 ********** Report 7: Product Positioning Report: ********** "Distances" (excluding price) to Segment Ideal or Preferred Product (Lower numbers are closer to ideal than higher numbers) VRD Brand Students Home Users Assistants Creators Managers Parents ----- -------- ---------- ---------- -------- -------- ------- VoicePro 2.3 13.0 17.0 2.4 1.0 22.6 CogNeato 2.1 2.0 2.1 7.5 10.6 4.9 AccuTalk 1.3 0.7 8.3 10.0 17.8 2.3 Voxtra 1.5 7.1 16.5 6.8 13.2 14.3 DVC Brand Students Home Users Assistants Creators Managers Parents ----- -------- ---------- ---------- -------- -------- ------- Finley 4.3 23.2 46.6 52.5 23.1 23.6 CogNeato 4.5 16.0 45.1 41.5 20.3 23.8 AccuCom 4.3 23.2 46.6 52.5 23.1 23.6 Digivox 5.9 8.2 13.7 16.6 12.4 24.3