COMPANY DASHBOARD – FIRM S - AKEN – PERIOD 8 1 FINANCIAL REPORT – FIRM S - AKEN – PERIOD 8 The financial statements of firm S published for Period 8 have been prepared on December 31st, Period 8 in accordance with International Financial Reporting Standards (IFRS), as adopted in the Markstrat world. Company Profit & Loss Statement The table below shows the evolution of firm S financial results in thousands of dollars, as well as the cumulative results since Period 0. Period 8 Period 7 Period 6 Period 5 Period 4 Cumulative Revenues 129,913 129,348 100,200 96,657 73,443 719,869 Cost of goods sold -72,272 -69,532 -44,859 -42,733 -27,461 -341,555 Inventory costs -715 -243 -435 -189 0 -2,177 Contribution before marketing 56,925 59,573 54,906 53,735 45,982 376,137 Advertising expenditures -25,100 -24,650 -20,100 -16,950 -9,200 -114,868 Commercial costs -11,553 -10,494 -7,747 -6,637 -3,857 -48,911 Contribution after marketing 20,272 24,429 27,059 30,148 32,926 212,358 Market research studies -424 -733 -609 -501 -345 -3,711 Research and development 0 -560 -3,760 -100 -10,280 -15,600 Loan capital reimbursed -17,012 -9,213 -4,716 -3,049 -606 -35,473 Loan capital received 24,200 23,000 18,500 10,000 16,000 93,450 Loan interest paid -5,249 -4,200 -2,920 -1,839 -1,181 -15,683 Exceptional cost or profit 0 0 0 0 -888 112 Earnings before taxes 21,787 32,723 33,555 34,659 35,626 235,454 Market Contribution The table below shows a comparison of the net contribution generated by the two markets where firm S is marketing products. Sonites Vodites Revenues 73,797 56,116 Cost of goods sold -30,561 -41,711 Inventory costs -108 -608 Contribution before marketing 43,128 13,798 Advertising expenditures -16,600 -8,500 Commercial costs -8,006 -3,547 Contribution after marketing 18,522 1,751 Market research studies 0 -386 Research and development 0 0 Net contribution 18,522 1,365 2 Brand contribution The table below shows a comparison of the net contribution generated by the brands marketed by firm S in Period 8. SOFT SOLO SONG SOSAVE SEFO SEINO Sonites Sonites Sonites Sonites Vodites Vodites Revenues 16,671 34,702 7,693 14,731 23,535 32,581 Cost of goods sold -5,078 -11,464 -6,626 -7,393 -18,532 -23,179 Inventory holding cost 0 -91 -17 0 0 0 Inventory disposal loss 0 0 0 0 -608 0 Contribution before marketing 11,593 23,147 1,050 7,338 4,396 9,402 Advertising media -3,000 -4,500 -3,400 -3,500 -3,000 -4,000 Advertising research -500 -500 -700 -500 -500 -1,000 Commercial costs -2,027 -2,407 -1,799 -1,773 -1,647 -1,900 Contribution after marketing 6,066 15,740 -4,849 1,564 -751 2,502 The physical characteristics of SEFO were modified this period. The obsolete inventory (7,503 units) was sold to a trading company at 80.0 % of transfer cost. The difference was charged as an inventory disposal loss of K$608. Marketing results The section below provides key marketing results for each of your marketed brands Market Shares 3 SOFT SOLO SONG SOSAVE SEFO SEINO Sonites Sonites Sonites Sonites Vodites Vodites Volume Market Share 3.9 % 3.9 % 1.5 % 3.9 % 8.0 % 10.5 % Value Market Share 3.0 % 6.5 % 1.4 % 2.6 % 8.6 % 12.2 % SOFT SOLO SONG SOSAVE SEFO SEINO Market Shares Sonites Sonites Sonites Sonites Vodites Vodites Volume Market Share 3.9 % 3.9 % 1.5 % 3.9 % 8.0 % 10.5 % Value Market Share 3.0 % 6.5 % 1.4 % 2.6 % 8.6 % 12.2 % Distribution Coverage The distribution coverage figures in the chart and table below represent the proportion of distributors who carry a given product. The report gives the information for each brand currently on the market. The number of distributors in each distribution channel is provided as well. SOFT SOLO SONG SOSAVE SEFO SEINO Sonites Sonites Sonites Sonites Vodites Vodites Specialty Stores 22 % 47 % 31 % 20 % 23 % 45 % Mass Merch. 30 % 18 % 22 % 26 % 29 % 13 % Online Stores 29 % 35 % 28 % 28 % 26 % 26 % Number of distributors Specialty Stores Mass Merch. Online Stores 8,444 7,167 1,194 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 marketing 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 distribution margins. SOFT SOLO SONG SOSAVE SEFO SEINO Sonites Sonites Sonites Sonites Vodites Vodites Recommended Retail Price $240 $510 $288 $215 $620 $670 Average Retail Price $222 $495 $276 $198 $584 $654 Average Selling Price $152 $318 $180 $136 $392 $414 Loans and Budget Changes The left table below summarizes the loans and/or budget changes that were granted to your company by the instructor. The other table provides the past and future payments made by your company to reimburse the loans. The first column shows the reimbursement of the capital borrowed; the second columns shows the interests paid in the period; the third column indicates how much capital remains to be reimbursed at the end of the period. Budget increase (K$) Budget decrease (K$) Loan capital borrowed (K$) Loan Duration Interest rate (%) Period 1 1,000 3 7 Period 2 750 3 7 Period 4 16,000 5 7 Period 5 10,000 5 7 Period 6 18,500 4 7 Period 7 23,000 3 7 Period 8 24,200 2 7 Period 0 Period 3 Period 9 Period 10 4 Capital reimbursed (K$) Interest paid (K$) Capital remaining (K$) Period 1 0 70 1,000 Period 2 311 122 1,439 Period 3 566 101 873 Period 4 606 1,181 16,267 Period 5 3,049 1,839 23,218 Period 6 4,716 2,920 37,002 Period 7 9,213 4,200 50,789 Period 8 17,012 5,249 57,977 Period 9 29,893 4,058 28,084 Period 10 28,084 1,966 0 Period 0 5 PRODUCTION REPORT – FIRM S - AKEN – PERIOD 8 The report below provides with information on production levels and production costs for each of the brands marketed in Period 8. Sales, Production and Inventory The chart below shows the units sold , the production level and inventory level for each of your brands at the end of Period 8. All numbers are given in thousands of units. Despite all the efforts made by the Production department, they were not able to fullfill all the orders for SOSAVE this period. As a consequence, some potential sales of SOSAVE have been lost. Despite all the efforts made by the Production department, they were not able to fullfill all the orders for SEFO this period. As a consequence, some potential sales of SEFO have been lost. The table below provides you with additional details such as planned production versus the actual one, and the inventory levels at the beginning and at the end of Period 8. All numbers are given in thousands of units. SOFT SOLO SOSAVE SONG SEINO SEFO Sonites Sonites Sonites Sonites Vodites Vodites Units sold 110 109 108 43 79 60 Production Plan (your decision) 130 150 90 55 90 50 Production 110 120 108 44 79 60 Inventory at beginning of period 0 0 0 0 0 0 Inventory at end of period 0 11 0 1 0 0 Unit Cost, COGS and Inventory Holding Cost The table below shows the unit transfer cost for each of your marketed 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 $. SOFT SOLO SOSAVE SONG SEINO SEFO Sonites Sonites Sonites Sonites Vodites Vodites Cumulative project production 781,177 926,965 216,000 86,082 220,674 60,000 Current unit transfer cost 46 105 68 155 295 309 Average unit transfer cost 46 105 68 155 295 309 Units sold 110 109 108 43 79 60 COGS 5,078 11,464 7,393 6,626 23,179 18,532 Inventory at end of period 0 11 0 1 0 0 Inventory holding cost 0 91 0 17 0 0 6 R&D REPORT – FIRM S - AKEN – VODITES MARKET – PERIOD 8 This report provides information on the activities conducted for your division by the R&D department during Period 8. Projects completed in Period 8 No projects have been completed in Period 8. 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 production platform 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 Resolution (1) Energy (2) Carbon (3) Connectivity (4) Apps (5) Current Minimum Cumulative Budget Platform of Brand PEFLOWCRP7 Period 7 55 64 22 6 45 279 279 560 SEFO PESTEM Period 4 75 45 30 7 48 362 278 9,000 SEINO PEFLOW Period 6 55 64 22 6 45 322 279 2,490 N/A (1) Resolution (L/mm): From 20 To 100. (2) Energy (BC/Wh): From 10 To 100. (3) Carbon (Kg): From 5 To 50. (4) Connectivity (Index): From 3 To 10. (5) Apps (Number of): From 5 To 100. Projects partially developed in Period 8 You have no partially completed projects. Shelved projects You have no shelved projects. 7 DECISION REVIEW – FIRM S - AKEN – VODITES MARKET – PERIOD 8 This report provides a review of the decisions made by firm S at the beginning of Period 8. Resource Allocation Overview The three charts below show how resources have been allocated across markets, functions and brands. All numbers are given in thousands of dollars. Brand Portfolio SEFO SEINO Portfolio operation Modified Maintained Base project past period PEFLOW PESTEM Base project this period PEFLOWCRP7 PESTEM Marketing Mix SEFO SEINO Production planning (in units) 50,000 90,000 Recommended retail price (in $) 620 670 Advertising media (in K$) 3,000 4,000 Advertising research (in K$) 500 1,000 8 Segmentation Strategy SEFO SEINO Innovators 10 % 45 % Adopters 25 % 40 % Followers 65 % 15 % Perceptual Objectives SEFO SEINO Dimension 1 Connectivity Connectivity Position 1 4.00 4.70 Dimension 2 Price Resolution Position 2 4.80 5.00 Commercial Team Size The table below shows the number of commercial people allocated to each brand in each channel during Period 8. SEFO SEINO Specialty Stores 20 50 Mass Merch. 30 10 Online Stores 15 15 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 – Vodites Market The table below lists the market research studies purchased by firm S in Period 8, as well as the cost in dollars. Purchased Studies Cost in $ Industry benchmarking 38,000 Consumer Survey 50,750 Consumer Panel 88,750 Distribution Panel 63,250 Semantic Scales 12,750 Multidimensional Scaling 44,250 Market Forecast 25,250 Competitive Advertising 38,000 Competitive Commercial Team 19,000 Conjoint Analysis 44,250 9 INDUSTRY DASHBOARD – FIRM S – PERIOD 8 - AKEN Stock Market Period 8 SPI REV NC Cum. NC TAS 3,204 217 98 568 Logan 1,777 134 37 278 SENSEI 1,580 130 22 235 Rocket 1,555 141 26 225 N 1,377 128 31 166 Mango 1,118 74 21 170 SPI: Share Price Index. Rev.: Revenues (million $). NC: Net Contribution (million $). Cum. NC: Cumulative NC (million $). 10 11 INDUSTRY INFORMATION – PERIOD 8 - AKEN This report provides economic and costing data for the current period as well as estimates for the next period. Economic Variables Current Period Value Next Period Estimation GNP Growth Rate % 2% 2% Inflation Rate % 2% 2% Inventory holding cost per annum % Transfer Cost 8% 8% Loss incurred for inventory disposal % Transfer Cost 20 % 20 % Commercial people operating cost $ 25,336 25,842 Commercial people hiring and training cost $ 3,800 3,876 Commercial people firing cost $ 6,334 6,461 Market Research Costs All Markets Sonites Vodites Competitive Advertising 38,750 38,750 Competitive Commercial Team 19,500 19,500 Conjoint Analysis 45,250 45,250 Consumer Panel 129,250 90,500 Consumer Survey 77,500 51,750 Distribution Panel 77,500 64,500 Advertising Experiment 32,250 32,250 Commercial Team Experiment 45,250 45,250 Market Forecast 25,750 25,750 Multidimensional Scaling 45,250 45,250 Semantic Scales 13,000 13,000 549,250 471,750 Industry benchmarking TOTAL (all numbers in $) 38,750 38,750 12 MARKET REPORT – VODITES MARKET – PERIOD 8 - AKEN This report provides general information on the 8 Vodites brands marketed in Period 8. 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 Variation TECH 25.7 % 105,323 52,187 LEGO 23.8 % 98,063 29,040 SEINO 12.2 % 51,371 1,774 NEMO 8.8 % 36,195 18,906 SEFO 8.6 % 35,015 20,020 MEFO 8.3 % 33,988 14,731 REFORM 7.9 % 32,502 9,469 REVOLT 4.7 % 19,496 3,170 TOTAL 100.0 % 411,953 149,298 Brand Unit Share Volume Variation TECH 26.8 % 200 100 LEGO 24.5 % 182 71 SEINO 10.5 % 79 7 MEFO 8.6 % 65 26 NEMO 8.6 % 64 33 REFORM 8.4 % 63 18 SEFO 8.0 % 60 36 REVOLT 4.5 % 34 6 TOTAL 100.0 % 746 296 Cost Reduced Cost Reduced Brand Characteristics The table below lists the physical attributes of marketed brands, as well as their price and estimated unit cost, both in $. Brand Launched in Resolution (1) Energy (2) Carbon (3) Connectivity (4) Apps (5) Price Base Cost ($) Base Cost (%Price) LEGO Period 4 65 52 33 7 52 565 274 48 % MEFO Period 4 55 50 25 6 51 560 260 46 % NEMO Period 7 54 64 50 6 43 600 241 39 % REFORM Period 7 55 64 50 7 20 550 243 43 % REVOLT Period 4 100 42 12 6 65 600 322 53 % SEFO Period 7 55 64 22 6 45 620 279 44 % SEINO Period 5 75 45 30 7 48 670 362 53 % TECH Period 4 60 55 50 6 55 560 241 42 % (1) Resolution (1) (L/mm): From 20 To 100. (2) Energy (2) (BC/Wh): From 10 To 100. (3) Carbon (3) (Kg): From 5 To 50. (4) Connectivity (4) (Index): From 3 To 10. (5) Apps (Number of): From 5 To 100. 13 INDUSTRY BENCHMARKING – PERIOD 8 - AKEN The benchmarking study compiles general information from annual reports about each of the Markstrat competitors. Data is provided in a common format for all companies to allow an easy comparison of competitive performance. Overall Company Performances and Expenditures The two charts below show the overall performances of the competing firms in terms of revenues and profits, in million $, as well as their expenditures in the main cost categories in million $. Company Profit & Loss Statements The table below provides an estimated P&L statement of the competing firms, in the same format as the one in your financial statements. All numbers are given in million $. Mango Rocket SENSEI TAS Logan N Revenues 73.9 140.9 129.9 216.7 134.0 127.8 Cost of goods sold -37.4 -76.2 -72.3 -81.1 -79.9 -66.0 Inventory costs -0.1 -0.5 -0.7 -1.2 -0.6 0 Contribution before marketing 36.4 64.2 56.9 134.4 53.4 61.7 Advertising expenditures -16.3 -24.6 -25.1 -16.0 -8.9 -23.4 Commercial team costs -9.4 -21.8 -11.6 -15.7 -10.7 -10.1 Contribution after marketing 10.7 17.7 20.3 102.7 33.9 28.2 Market research studies -1.0 -0.5 -0.4 -0.7 -0.7 -0.6 Research and development 0 0 0 0 0 -3.1 Loan reimbursed -4.4 -21.7 -17.0 -8.2 -4.7 -17.5 Interests paid -2.4 -7.7 -5.2 -3.1 -2.0 -6.0 Exceptional cost or profit 0 0 0 0 0 0 Earnings before taxes 21.4 26.4 21.8 98.5 36.8 30.9 Next Period Budget 8.9 10.5 8.9 25.3 14.7 12.4 14 Company Performances and Expenditures by Market The charts below show the market performances of the competing firms in terms of revenues and profits, as well as their expenditures in the main cost categories. Sonites Market Vodites Market 15 CONSUMER SURVEY – VODITES MARKET – PERIOD 8 - AKEN This survey questionnaire has been administered to 3,000 individuals during Period 8. It gives brand awareness, purchase intentions and shopping habits data for each consumer segment in the Vodites market Brand Awareness The brand awareness figures in the chart and table below represent the proportion of individuals who have unaided recall of a brand name. The report gives the information for each brand currently on the market, in total and by consumer segment. Brand Awareness by Consumer Segment Brand Firm Innovators Adopters Followers LEGO Logan 49 % 40 % 36 % MEFO Mango 31 % 23 % 33 % NEMO N 41 % 27 % 32 % REFORM Rocket 42 % 34 % 36 % REVOLT Rocket 67 % 65 % 51 % SEFO SENSEI 27 % 21 % 20 % SEINO SENSEI 69 % 48 % 27 % TECH TAS 35 % 36 % 41 % Purchase Intentions The purchase intentions figures in the chart and table below represent the proportion of individuals who would select a brand as their first choice, if they were buying within a year. The report gives the information for each brand currently on the market, in total and by consumer segment. Please note that these figures correspond to the situation of the period when the study is done and does not necessarily represent purchase intentions for the following year. 16 Purchase Intentions by Consumer Segment Brand Firm Innovators Adopters Followers LEGO Logan 25 % 38 % 17 % MEFO Mango 5% 4% 14 % NEMO N 6% 4% 9% REFORM Rocket 5% 4% 6% REVOLT Rocket 10 % 6% 2% SEFO SENSEI 7% 8% 16 % SEINO SENSEI 34 % 22 % 4% TECH TAS 9% 12 % 32 % Shopping Habits The shopping habits data in the chart below represents, for each channel, the proportion of individuals who would choose that channel when shopping for Vodites. 17 CONSUMER PANEL – VODITES MARKET – PERIOD 8 - AKEN The consumer panel study shown below is based on a sample group of over 500 consumers whose buying behavior is believed to be representative of the entire Vodites 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 proportion of individuals who have purchased a given brand during Period 8. The report gives the information for each brand currently on the market, in total and by consumer segment Market Shares by Consumer Segment (%Unit) Brand Firm Innovators Adopters Followers LEGO Logan 25 % 41 % 19 % MEFO Mango 3% 3% 11 % NEMO N 5% 4% 11 % REFORM Rocket 7% 6% 9% REVOLT Rocket 12 % 7% 3% SEFO SENSEI 4% 5% 10 % SEINO SENSEI 36 % 21 % 3% TECH TAS 8% 13 % 34 % Industry Volume (based on units sold) The charts below give the unit product category sales by consumer segment and in total. The relative sizes of the 3 consumer segments are provided as well. 18 DISTRIBUTION PANEL – VODITES MARKET – PERIOD 8 - AKEN 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 relative sizes of the channel are provided as well. Market Shares by Channel (%Unit) Brand Firm Specialty Stores Mass Merch. Online Stores LEGO Logan 26 % 22 % 25 % MEFO Mango 6% 10 % 10 % NEMO N 6% 10 % 10 % REFORM Rocket 8% 9% 8% REVOLT Rocket 6% 3% 4% SEFO SENSEI 6% 10 % 8% SEINO SENSEI 20 % 4% 8% TECH TAS 21 % 33 % 26 % Distribution Coverage The distribution coverage figures in the charts and table below represent the proportion of stores who carry a given brand. The report gives the information for each brand currently on the market. The number of outlets in each distribution channel is provided as well. Distribution Coverage by Channel (%Stores) Brand Firm Specialty Stores Mass Merch. Online Stores LEGO Logan 38 % 40 % 45 % MEFO Mango 29 % 35 % 36 % NEMO N 28 % 35 % 37 % REFORM Rocket 48 % 52 % 48 % REVOLT Rocket 48 % 37 % 47 % SEFO SENSEI 23 % 29 % 26 % SEINO SENSEI 45 % 13 % 26 % TECH TAS 44 % 54 % 40 % 19 20 SEMANTIC SCALES – VODITES MARKET – PERIOD 8 - AKEN The semantic scales study provides data based on a semantic differential questionnaire administered to 600 individuals. Several semantic scales corresponding to the Vodites physical attributes were presented to the respondents. For example 1 in Resolution means low Resolution and 7 in Resolution means high Resolution. Several crucial information are derived from these questionnaires: brand perceptions, ideal value along each scale, ideal value evolution, brand maps. Brand perceptions Respondents are asked to rate each brand according to the way they perceive the brand on each characteristic. The reported results are summarized in the table below, using the mean value for each brand. Brand Firm Resolution Energy Carbon Footprint Connectivity Apps Price LEGO Logan 4.6 3.5 4.7 4.5 3.5 5.2 MEFO Mango 3.6 3.7 3.6 3.5 3.9 5.0 NEMO N 3.5 5.0 6.5 3.7 3.3 4.9 REFORM Rocket 3.6 5.0 6.5 4.1 1.9 4.9 REVOLT Rocket 6.5 2.8 1.9 4.3 4.9 5.3 SEFO SENSEI 3.5 5.0 3.2 3.8 3.4 5.0 SEINO SENSEI 5.0 3.0 4.4 4.7 3.6 5.8 TECH TAS 4.1 4.1 6.5 4.1 4.2 5.0 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 Resolution Energy Carbon Footprint Connectivity Apps Price Innovators 5.4 3.8 4.0 5.3 3.9 5.3 Adopters 4.9 4.3 4.7 4.8 4.4 5.0 Followers 3.7 4.7 2.8 3.8 3.5 4.5 Importance of characteristics Finally, respondents are asked to rate the importance of each characteristic in their purchasing decision. Although consumer segments differ on the exact importance ratings attributed to the characteristics, they tend to agree on the ranking of the scales, i.e. their “relative” importance. This is why only average value are reported on the chart below. Ratings are given on a scale from 1 (not important) to 10 (very important). 21 Brand Maps Maps representing consumers’ perceptions based on the semantic scales can be obtained for each pair of attributes. Five maps are provided below. We invite you to export data into Excel and draw additional maps if needed Brand Maps – Connectivity X Resolution Brand Maps – Connectivity X Energy 22 Brand Maps – Connectivity X Carbon Footprint Brand Maps – Connectivity X Apps 23 Brand Maps – Connectivity X Price Ideal Value Evolution This study monitors the evolution of consumer needs over time. The preferred values on each scale over the past (3 years maximum) are recorded in the table below, for each consumer segment. Segment Period Resolution Energy Carbon Footprint Connectivity Apps Price Adopters Period 6 4.7 4.2 4.8 4.4 4.4 5.2 Adopters Period 7 4.8 4.3 4.8 4.6 4.4 5.1 Adopters Period 8 4.9 4.3 4.7 4.8 4.4 5.0 Followers Period 6 3.7 4.7 3.1 3.7 3.5 4.6 Followers Period 7 3.7 4.7 2.9 3.7 3.5 4.5 Followers Period 8 3.7 4.7 2.8 3.8 3.5 4.5 Innovators Period 6 5.3 3.6 4.1 5.1 3.8 5.6 Innovators Period 7 5.4 3.7 4.1 5.2 3.9 5.5 Innovators Period 8 5.4 3.8 4.0 5.3 3.9 5.3 24 MULTIDIMENSIONAL SCALING OF BRAND SIMILARITIES & PREFERENCES – VODITES MARKET – PERIOD 8 - AKEN This study provides a joint space configuration obtained with non-metric multidimensional scaling. It relies on similarity and preference data on the complete set of brands available in the market. These data were obtained through interviews with 200 individuals. Perceptual Map The study provides a graphical representation of the perceptual positioning of Vodites brands and consumer segments’ ideal points. Three dimensions, interpreted as Autonomy, Sophistication, Economy were sufficient to provide a good fit to the data. The two perceptual maps are given below. Perceptual Map – Autonomy X Sophistication 25 Perceptual Map – Autonomy X Economy Brand Perceptions The table below gives the coordinates of the brand positions on the perceptual map, on a scale from -20 to +20. Brand Firm Autonomy Sophistication Economy LEGO Logan 1.5 1.0 -8.0 MEFO Mango -2.8 -1.3 -6.8 NEMO N 0.7 -6.3 -6.0 REFORM Rocket 2.5 -8.1 -6.0 REVOLT Rocket -1.0 15.4 -8.4 SEFO SENSEI 1.0 -2.0 -6.9 SEINO SENSEI 1.0 2.9 -11.9 TECH TAS 0.6 -2.2 -6.8 Ideal Values The table below gives the coordinates of the brand positions on the perceptual map, on a scale from -20 to +20. Segment Autonomy Sophistication Economy Innovators 5.6 5.6 -8.6 Adopters 4.3 3.3 -7.0 Followers 0.5 -0.7 -3.2 26 Ideal Value Evolution This study monitors the evolution of consumer needs over time. The preferred values on each perceptual map dimension over the past (3 years maximum) are recorded in the table below, for each consumer segment. Segment Period Autonomy Sophistication Economy Adopters Period 6 2.5 2.7 -8.3 Adopters Period 7 3.5 3.0 -7.6 Adopters Period 8 4.3 3.3 -7.0 Followers Period 6 -0.1 -1.3 -3.9 Followers Period 7 0.1 -1.0 -3.6 Followers Period 8 0.5 -0.7 -3.2 Innovators Period 6 4.2 4.7 -10.9 Innovators Period 7 4.9 5.2 -9.9 Innovators Period 8 5.6 5.6 -8.6 Influence of Product Characteristics on Perceptual Dimensions An indication of the influence of product characteristics on perceptual dimensions is provided in the table below to help you interpret the dimension that were derived from the study. Dimension Resolution Energy Carbon Footprint Connectivity Apps Price Economy None None None None None Strong Autonomy None Slight None Strong None None Sophistication Strong Slight Slight None Slight None 27 COMPETITIVE ADVERTISING ESTIMATES – VODITES MARKET – PERIOD 8 - AKEN Estimates of competitive advertising budgets are given by firm, by brand and by consumer segments. All brands marketed in the current period are included in the study. Estimated Total Advertising Expenditures (in million dollars) – By Firm and by Consumer Segment Estimated Brand Advertising Expenditures (in thousand dollars) – Total and by Consumer Segment Brand Innovators Adopters Followers TOTAL LEGO 520 520 1,170 2,210 MEFO 940 1,000 2,360 4,300 NEMO 1,230 1,230 3,690 6,150 REFORM 1,070 1,330 2,700 5,100 REVOLT 1,180 2,470 1,490 5,140 SEFO 700 990 1,750 3,440 SEINO 2,000 1,870 1,180 5,050 TECH 1,050 1,700 3,200 5,950 Estimated Communication Dimensions and Message Quality The table below provides an estimate of the dimensions that have been used in brand communication, as well as an estimate of the message quality. The message quality is a function of the level of advertising research budget allocated to a brand, as well as its position towards the targeted segment’s ideal point. Brand Firm Communication Dimensions Message Quality LEGO Logan Connectivity & Price Excellent MEFO Mango Energy & Resolution Excellent NEMO N Connectivity & Price Average REFORM Rocket Connectivity & Resolution Average REVOLT Rocket Connectivity & Resolution Average SEFO SENSEI Connectivity & Price Excellent SEINO SENSEI Connectivity & Resolution Excellent TECH TAS 28 COMPETITIVE COMMERCIAL TEAM SIZE ESTIMATES – VODITES MARKET – PERIOD 8 - AKEN Estimates of competitive commercial team size are given by firm, by brand and by distribution channel. The breakdown by brand and channel is also provided. All brands marketed in the current period are included in the study. Estimated Commercial Team Size (in full-time equivalent) – By Firm and by Distribution Channel Estimated Brand Commercial Team Sizes (in commercial people equivalent) – Total and by Distribution Channel Brand Specialty Stores Mass Merch. Online Stores TOTAL LEGO 35 56 39 130 MEFO 30 35 30 95 NEMO 22 34 24 80 REFORM 66 105 73 244 REVOLT 85 43 43 171 SEFO 20 30 15 65 SEINO 50 10 15 75 TECH 45 100 25 170 29 MARKET FORECAST – VODITES MARKET – PERIOD 8 - AKEN This study provides estimates 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 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. Relative segment size, in % of the total market size, and segment growth rates are reported as well. Sizes are given in thousands of units. 30 Relative Consumer Segment Sizes (in % of total market size) 31 CONJOINT ANALYSIS – VODITES MARKET – PERIOD 8 - AKEN This study enables firms to estimate the relative importance of the price and physical characteristics of a product category. Only the three characteristics that are perceived as most important are included in the study. The study also provides the utility attached by consumers to varying levels of price and characteristics. Results are broken down by consumer segment. Utility charts The charts below show the utilities attached to four arbitrary levels in each dimension included in the study. Utilities are measured on a scale from 0 (very low utility) to 1 (very high utility): the higher the utility 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. Innovators 32 Adopters Followers 33
