SPI

Revenues (M$)

Earning Before Taxes (M$)

Total Market Share (%$)

Market Share Sonites & Vodites (%$)

Brand Revenues (M$)

Brand Contribution (M$)

Financial Report Firm T Period 0

The financial statements of firm T published for Period 0 have been prepared on December 31st, Period 0 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 T financial results in thousands of dollars, as well as the cumulative results from Period 0 to Period 0. Period 0 Cumulative 47,611 47,611 -32,794 -32,794 -507 -507 14,311 14,311 -4,000 -4,000 -1,224 -1,224 9,087 9,087 -245 -245 0 0 0 0 0 0 0 0 8,842 8,842

Revenues Cost of goods sold Inventory costs Contribution before marketing Advertising expenditures Commercial team costs Contribution after marketing Market research studies Research and development Loan received / reimbursed Loan interests paid Exceptional cost or profit Earnings before taxes

Brand Contribution
The table below shows a comparison of the net contribution generated by the 2 brands marketed by firm T in Period 0. TONE
Sonites

TOPS
Sonites

Revenues Cost of goods sold Inventory holding cost Inventory disposal loss Contribution before marketing Advertising media Advertising research Commercial team costs Contribution after marketing

34,957 -24,382 -135 0 10,441 -1,920 -80 -612 7,829

12,654 -8,412 -372 0 3,870 -1,920 -80 -612 1,258

Revenues

Contribution after marketing

Note: b rands with low revenues or contrib ution (< 5% total) are not shown on this chart

Marketing Results
The section below provide key marketing results for each of your marketed brands

Market Shares
TONE Sonites 10.8 % 15.0 % TOPS Sonites 5.3 % 5.5 %

Volume Market Share Value Market Share

Volume Sold
The table below provides the volume sold for each of your marketed brands in each of the three distribution channels. Sales are given in thousands of units. TONE Sonites 63 24 18 TOPS Sonites 36 8 7

Specialty stores Mass Merch. Online Stores

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.

TONE Sonites

TOPS Sonites

Specialty stores Mass Merch. Online Stores

42.7 % 37.7 % 37.9 % Specialty stores Mass Merch. 6,000

42.6 % 37.3 % 37.4 % Online Stores 1,000

Number of distributors

10,000

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. TONE Sonites 540 523 334 TOPS Sonites 400 391 246

Recommended Retail Price Average Retail Price Average Selling Price

Production Report Firm T Period 0

The report below provides with information on production levels and production costs for each of the brands marketed in Period 0.

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 0. All numbers are given in thousands of units.

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 0. All numbers are given in thousands of units. TONE
Sonites

TOPS
Sonites

Units sold Production Plan (your decision) Production Inventory at beginning of period Inventory at end of period

105 140 112 0 7

52 100 80 0 28

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 $. TONE
Sonites

TOPS
Sonites

Current unit transfer cost Average unit transfer cost Units sold COGS Inventory at end of period Inventory holding cost

233 233 105 24,382 7 135

163 163 52 8,412 28 372

R&D Report Firm T Market Sonites Period 0

This report provides information on the activities conducted for your division by the R&D department during Period 0.

Completed Projects
The projects listed below are completed and can be used to launch new brands or upgrade new ones.

Projects completed in Period 0

Available Since POTONE POTOPS Period 0 Period 0 Physical Characteristics Features (1) 16 11 Design (2) 7 3 Battery (3) 56 28 Display (4) 24 38 Power (5) 76 86 244 158 Base Cost in $ Current Minimum 137 138

(1) Features. From 5 to 20; (2) Design. From 3 to 10; (3) Battery. From 24 to 96; (4) Display. From 4 to 40; (5) Power. From 5 to 100;

Other completed projects

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. No projects were completed in past period.

Ongoing projects
The projects listed below are not yet available and cannot be used to launch a new brand or upgrade an existing one.

Projects partially developed in Period 0

You have no partially completed projects.

Shelved projects
You have no shelved projects

Decision Review Firm T Market Sonites Period 0

This report provides a review of the decisions made by firm T at the beginning of Period 0. The three charts below show how resources have been allocated across markets, functions and brands.

Resource Allocation by Market

Resource Allocation by Function Sonites Market

Resource Allocation by Brand

Brand Management Sonites Brands

TONE
Sonites

TOPS
Sonites

Base R&D project Production planning Recommended retail price Advertising media Advertising research U $ K$ K$ Explorers Shoppers Segmentation strategy Professionals Highs Earners Savers Communication Objective 1 Communication Objective 2 Dimension Position Dimension Position

POTONE 140,000 540 1,920 80 20 % 10 % 20 % 40 % 10 % 0 0

POTOPS 100,000 400 1,920 80 30 % 15 % 30 % 15 % 10 % 0 0

Commercial Team Size Sonites Brands

The table below shows the number of commercial people allocated to each brand in each channel during Period 0 TONE Sonites Specialty stores Mass Merch. Online Stores 10 12 8 TOPS Sonites 10 12 8

The two charts below show how your commercial team is allocated across channels and brands.

R&D projects Sonites Market

The table below lists the projects which the R&D Department will develop in Period 0

You have not initiated any R&D project this period in this market.

Online Query Sonites Market

The table below lists the online queries made to the R&D Department while making Period 0 decisions You have not initiated any online query this period in this market.

Market Research Studies Sonites Market

The table below lists the market research studies purchased by firm T in Period 0, as well as the cost in dollars Purchased Studies Consumer survey Consumer panel Distribution panel Market forecast Cost in $ 61,250 102,000 61,250 20,500

Share Price Index

Revenues

Net Contribution

in million $

In million $

Retail Sales and Value Market Share

Retail Volume and Unit Market Share

In million $

in thousands of units

Top Selling Brands Retail Sales

Top Selling Brands Volume

In million $

in thousands of units

Industry Information Period 0

This report provides economic and costing data for Period 0 and Period 1.

Economic Variables
Period 0 GNP Growth Rate Inflation Rate Loss incurred for inventory disposal Inventory holding cost per annum Commercial people operating cost Commercial people hiring and training cost Commercial people firing cost % % % Transfer Cost % Transfer Cost $ $ $ 3% 2% 20 % 8% 20,400 3,060 5,100 Next Period Estimation 3% 2% 20 % 8% 20,808 3,121 5,202

Market Research Costs

(all numbers in $)
Industry benchmarking Competitive advertising Competitive commercial team Conjoint Consumer panel Consumer survey Distribution panel Advertising experiment commercial team experiment Market forecast Multidimensional scaling Semantic scales Total 31,250 All Markets 31 250 31 250 15 500 36 500 104 000 62 500 62 500 26 000 36 500 20 750 36 500 10 500 442,500 31 250 15 500 36 500 72 750 41 500 52 000 26 000 36 500 20 750 36 500 10 500 379,750 Sonites Vodites

Market Report Sonites Period 0

This report provides general information on the 12 Sonites brands marketed in Period 0.

Brand Retail Sales & Volume

The two charts below show the marketed brand retail sales (in millions of $) and the volume (in thousands of units) , sorted in decreasing order. Shares of market in value and in unit are also provided Brand TONE LOOP ROCK SOLO MOST NOVA NOON ROLL TOPS MOVE SOFT LOCK Total Value Share Retail Sales 15.0 % 12.8 % 12.2 % 10.1 % 10.1 % 8.9 % 7.9 % 5.8 % 5.5 % 4.6 % 4.5 % 2.5 % 100.0 % 55 47 45 37 36 33 29 22 20 17 16 9 364 Variation Brand MOST SOLO TONE LOOP NOON ROCK SOFT NOVA MOVE TOPS ROLL LOCK Total Unit Share 15.4 % 12.0 % 10.8 % 9.9 % 9.1 % 9.1 % 8.5 % 6.3 % 5.4 % 5.3 % 4.1 % 3.9 % 100.0 % Volume 150 117 105 96 88 88 83 61 53 52 40 38 971 Variation

Brand Characteristics
The table below lists the physical attributes of marketed brands, as well as their price and estimated unit cost, both in $. Brand LOCK LOOP MOST MOVE NOON NOVA ROCK ROLL SOFT SOLO TONE TOPS Launched in Period 0 Period 0 Period 0 Period 0 Period 0 Period 0 Period 0 Period 0 Period 0 Period 0 Period 0 Period 0 Features (1) 8 17 13 8 19 20 14 13 5 7 16 11 Design (2) 3 6 4 5 9 8 7 4 3 5 7 3 Battery (3) 28 89 64 35 64 92 42 60 35 46 56 28 Display (4) 11 33 8 11 20 27 36 36 4 24 24 38 Power (5) 10 81 10 29 29 43 76 91 10 29 76 86 Price ($) 250 500 260 335 340 550 520 550 210 330 540 400 Base Cost ($) 46 228 65 109 151 205 212 228 44 111 244 158 Base Cost (% Price) 18 % 46 % 25 % 33 % 44 % 37 % 41 % 41 % 21 % 34 % 45 % 40 %

(1) . From 5 to 20; (2) . From 3 to 10; (3) . From 24 to 96; (4) . From 4 to 40; (5) . From 5 to 100;

Consumer Survey Sonites Market Period 0

This survey questionnaire has been administered to 3,000 individuals during Period 0. It gives brand awareness, purchase intentions 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 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.

Average Brand Awareness (in % )

Brand Awareness by Consumer Segment

Brand LOCK LOOP MOST MOVE NOON NOVA ROCK ROLL SOFT SOLO TONE TOPS Firm L L Morpheus Morpheus N N R R S S T T Explorers 26 % 61 % 46 % 57 % 59 % 46 % 59 % 53 % 47 % 64 % 52 % 43 % Shoppers 31 % 55 % 63 % 65 % 59 % 47 % 47 % 43 % 67 % 76 % 43 % 38 % Professionals 28 % 69 % 31 % 51 % 48 % 60 % 61 % 55 % 35 % 51 % 54 % 45 % Highs Earners 30 % 72 % 35 % 57 % 53 % 63 % 64 % 55 % 41 % 55 % 64 % 45 % Savers 28 % 35 % 62 % 33 % 40 % 33 % 31 % 28 % 71 % 46 % 30 % 30 %

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.

Average Purchase Intentions

Purchase Intentions by Consumer Segment

Brand LOCK LOOP MOST MOVE NOON NOVA ROCK ROLL SOFT SOLO TONE TOPS Total Firm L L Morpheus Morpheus N N R R S S T T Explorers 2% 13 % 4% 7% 9% 5% 11 % 9% 4% 12 % 9% 15 % 100% Shoppers 4% 4% 9% 13 % 20 % 4% 3% 2% 6% 32 % 3% 2% 100% Professionals 1% 22 % 1% 4% 7% 12 % 19 % 7% 1% 4% 18 % 5% 100% Highs Earners 0% 16 % 0% 2% 3% 17 % 16 % 4% 0% 2% 39 % 2% 100% Savers 11 % 1% 41 % 5% 5% 1% 1% 1% 24 % 9% 1% 1% 100%

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

Consumer Panel Sonites Market Period 0

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 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 proportion of individuals who have purchased a given brand during Period 0. The report gives the information for each brand currently on the market, in total and by consumer segment

Total Market Shares (% Unit)

Market Shares by Consumer Segment (% Unit)

Brand LOCK LOOP MOST MOVE NOON NOVA ROCK ROLL SOFT SOLO TONE TOPS Total Firm L L Morpheus Morpheus N N R R S S T T Explorers 2% 14 % 3% 6% 10 % 6% 13 % 9% 3% 11 % 9% 15 % 100% Shoppers 3% 4% 9% 12 % 21 % 4% 3% 2% 6% 32 % 3% 2% 100% Professionals 1% 22 % 1% 3% 7% 12 % 19 % 6% 1% 4% 18 % 5% 100% Highs Earners 0% 16 % 0% 1% 3% 16 % 16 % 3% 0% 2% 40 % 2% 100% Savers 9% 1% 44 % 4% 5% 1% 1% 1% 23 % 9% 1% 1% 100%

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 5 consumer segments are provided as well.

Unit Sales by Consumer Segment in thousands of units

Relative Consumer Segment Sizes

Distribution Panel Sonites Market Period 0

The distribution panel provides continuous tracking of product sales to consumers, based on information gathered at the retail point-of-sale. Information 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 distribution channel.

Sales and Market Shares by Channel

The table and charts below provide the market shares, based on unit 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 LOCK LOOP MOST MOVE NOON NOVA ROCK ROLL SOFT SOLO TONE TOPS Total Firm L L M M N N R R S S T T Specialty stores 3.0 % 12.3 % 7.8 % 4.6 % 10.7 % 8.0 % 12.3 % 5.9 % 4.6 % 10.1 % 13.1 % 7.5 % 100% Mass Merch. 5.2 % 5.0 % 27.6 % 6.5 % 7.4 % 3.7 % 4.8 % 1.9 % 14.4 % 14.4 % 6.8 % 2.3 % 100% Online Stores 3.8 % 14.3 % 10.6 % 5.5 % 8.3 % 7.0 % 8.9 % 3.6 % 7.0 % 12.6 % 12.8 % 5.4 % 100%

Unit Sales by Channel in thousands of units

Relative Channel Sizes (% Units Sold)

Distribution Coverage
The distribution coverage figures in the chart 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 LOCK LOOP MOST MOVE NOON NOVA ROCK ROLL SOFT SOLO TONE TOPS Firm L L M M N N R R S S T T Specialty stores 35.4 % 39.1 % 27.2 % 28.0 % 46.4 % 46.3 % 47.6 % 45.3 % 27.3 % 28.1 % 42.7 % 42.6 % Mass Merch. 33.0 % 34.8 % 46.8 % 46.2 % 34.3 % 33.9 % 37.9 % 36.6 % 44.4 % 43.6 % 37.7 % 37.3 % Online Stores 44.0 % 48.4 % 37.0 % 38.0 % 37.6 % 37.5 % 32.2 % 30.4 % 42.3 % 42.7 % 37.9 % 37.4 %

Number of outlets in each Channel

Relative Channel Sizes (% Outlet)

Market Forecast Sonites Market Period 0

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 (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. Relative 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)

Relative Consumer Segment Sizes (in % of total market size)

Current Period

Next Period

In Five Periods

Consumer Segment Growth Rates (in % units)

Next period

Average next 5 periods