INDUSTRY C FIRM 1 Period 3 Results **************** Financial Summary **************** Vsmart Channel 1 Channel 2 Total ------ Units Sold 10492 18147 28639 Wholesale Price $140.00 $111.00 Unit Cost $71.00 $71.00 Gross Sales $1,468,880 $2,014,317 $3,483,197 Cost of Goods Sold $744,932 $1,288,437 $2,033,369 Transfer Charges $0 Gross Margin $1,449,828 Expenses Advertising $250,000 Sales Force-Salary $227,181 $246,113 $473,294 -Firing Costs $0 -Commission $73,444 $100,716 $174,160 Customer Service $74,780 Sales Promotion $17,000 $8,000 $25,000 R&D for Product Modifications $11,000 Marketing Research $40,000 Total Expenses $1,048,234 Net Contribution (Loss) $401,594 IQsmart Channel 1 Channel 2 Total ------- Units Sold 801 815 1616 Wholesale Price $74.00 $74.00 Unit Cost $13.00 $13.00 Gross Sales $59,274 $60,310 $119,584 Cost of Goods Sold $10,413 $10,595 $21,008 Transfer Charges $1,529 Gross Margin $97,047 Expenses Advertising $30,000 Sales Force-Salary $12,819 $13,887 $26,706 -Firing Costs $0 -Commission $2,964 $3,016 $5,979 Customer Service $4,220 Sales Promotion $1,000 $1,000 $2,000 R&D for Product Modifications $40,000 Marketing Research $0 Total Expenses $108,905 Net Contribution (Loss) (- $11,858) Total Contribution (Loss) $389,736 Budget for Next Period: $997,000 ( 24% of Industry Total) *************** Production Summary **************** Requested Actual Units Inventory Unit Brand Production Production Sold Transferred Cost _____ __________ __________ ____ ___________ ____ Vsmart 35,000 28,639 28,639 0 $71.00 IQsmart 3,000 2,400 1,616 784 $13.00 *************** Industry Sales Report *************** VRD Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- Vsmart 28,639 0.259 $6,026,938 0.223 UltraVox 29,895 0.271 $8,814,170 0.326 Inotech 24,686 0.223 $6,827,480 0.252 AccuVox 27,281 0.247 $5,376,637 0.199 Total 110,501 $27,045,225 Unit $ Channel Sales Sales ------- ----- ----- 1 50,431 $15,234,397 2 60,070 $11,810,828 DVC Unit Market Share $ Sales Market Share Brand Sales (Units) (Retail) ($ Sales) ----- ----- ------- -------- --------- IQsmart 1,616 0.056 $210,744 0.052 MicroVox 10,933 0.379 $1,400,553 0.347 Ubervox 4,622 0.160 $523,889 0.130 ActiVox 11,652 0.404 $1,898,926 0.471 Total 28,823 $4,034,112 Unit $ Channel Sales Sales ------- ----- ----- 1 14,671 $2,353,107 2 14,152 $1,681,005 ********** Product Features & Prices Report *********** Average Average VRD Special Error Ease of Retail Price Retail Price Brand Commands Protection Learning Channel 1 Channel 2 ----- -------- ---------- -------- --------- --------- Vsmart 13 3 5 $279.69 $170.41 UltraVox 16 6 4 $315.50 $260.51 Inotech 13 6 6 $310.00 $243.07 AccuVox 12 4 8 $289.39 $152.24 Average Average DVC Number Similarity Ability to Retail Price Retail Price Brand of Tasks of Commands Customize Channel 1 Channel 2 ----- -------- ----------- --------- --------- --------- IQsmart 2 1 1 $147.79 $113.33 MicroVox 3 1 5 $139.50 $113.34 Ubervox 2 2 2 $126.00 $101.53 ActiVox 6 3 2 $199.85 $130.36 *************** Marketing Activity Report *************** (Data Reported Is from Period 3) VRD Vsmart UltraVox Inotech AccuVox ------ -------- ------- ------- Advertising Dollars $250,000 $220,000 $290,000 $150,000 Advertising Type Direct Corporate Direct Direct Sales Promotion Channel 1 $17,000 $40,000 $0 $30,000 Channel 2 $8,000 $20,000 $0 $30,000 Number of Sales Reps Channel 1 12 14 13 12 Channel 2 13 9 10 12 Commission 5% 8% 7% 8% Customer Service $79,000 $101,000 $103,000 $75,000 DVC IQsmart MicroVox Ubervox ActiVox ------- -------- ------- ------- Advertising Dollars $30,000 $100,000 $75,000 $140,000 Advertising Type Pioneering Direct Direct Direct Sales Promotion Channel 1 $1,000 $10,000 $0 $10,000 Channel 2 $1,000 $10,000 $0 $10,000 ********** Report 1: Market Share By Segment ********** VRD Brand Students Home Users Assistants Creators Managers Parents ----- -------- ---------- ---------- -------- -------- ------- Vsmart 0.407 0.250 0.204 0.298 0.132 0.256 UltraVox 0.134 0.149 0.231 0.304 0.581 0.186 Inotech 0.158 0.207 0.328 0.238 0.192 0.243 AccuVox 0.301 0.394 0.237 0.160 0.096 0.315 Total Sales 26,281 18,292 22,881 12,084 22,626 8,337 (in units) ********** Report 4: Marketing Effectiveness Report ********** # of Competitors # of Competitors with with lower equal or higher Index Index Index ------ ------ ------ Brand Awareness - Vsmart 0.645 2 1 Customer Service Consumer Group Rating 76% Industry Average Rating 83% Channel 1: Sales Rep Workload Index 88% Dealer Satisfaction 1.097 3 0 Channel Strength ("Push") 0.399 2 1 Channel 2: Sales Rep Workload Index 112% Dealer Satisfaction 0.868 0 3 Channel Strength ("Push") 0.397 3 0