INDUSTRY BENCHMARKING – PERIOD 4

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 $.
Megamind RANGERS Spikers Tectonic Legend NEON
Revenues 55.8 83.6 33.7 112.3 130.1 81.5
Cost of goods sold -20.0 -36.7 -16.5 -46.4 -63.0 -36.2
Inventory costs -0.6 -0.2 -1.6 0 0 -1.1
Contribution before marketing 35.2 46.8 15.6 65.9 67.1 44.2
Advertising expenditures -4.7 -2.7 -2.8 -4.1 -7.2 -3.4
Commercial team costs -3.2 -5.6 -3.4 -5.7 -5.6 -4.0
Contribution after marketing 27.2 38.4 9.4 56.1 54.3 36.8
Market research studies -0.7 -0.5 -0.4 -0.6 -0.3 -0.8
Research and development -11.0 -3.3 -1.0 -5.4 0 0
Interests paid -0.3 -0.3 -0.3 0 -0.3 -0.3
Exceptional cost or profit 0 0 0 0 0 0
Earnings before taxes 22.2 33.1 6.8 50.1 59.3 34.5
Next Period Budget 8.9 13.2 8.0 20.0 23.0 13.8

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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

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CONSUMER SURVEY – SONITES MARKET – PERIOD 4
This survey questionnaire has been administered to 3,000 individuals during Period 4. It gives brand awareness, purchase intentions and
shopping habits 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.

Brand Awareness by Consumer Segment

Brand Firm Explorers Shoppers Profs High Earners Savers
LOCK Legend 64 % 62 % 48 % 48 % 68 %
LOOP Legend 72 % 59 % 76 % 73 % 44 %
LOST Legend 33 % 30 % 15 % 15 % 17 %
MOST Megamind 64 % 73 % 53 % 53 % 70 %
MOVE Megamind 77 % 77 % 66 % 68 % 47 %
NOON NEON 55 % 56 % 52 % 45 % 37 %
NOTA NEON 14 % 13 % 12 % 12 % 21 %
NOVA NEON 52 % 49 % 62 % 62 % 35 %
ROBUST RANGERS 15 % 12 % 10 % 10 % 19 %
ROCK RANGERS 70 % 56 % 71 % 70 % 40 %
ROLL RANGERS 69 % 64 % 67 % 62 % 40 %
SOFT Spikers 64 % 71 % 52 % 52 % 72 %
SOLO Spikers 73 % 76 % 62 % 60 % 56 %
TONE Tectonic 66 % 61 % 65 % 68 % 45 %
TOPS Tectonic 72 % 61 % 55 % 52 % 51 %

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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.

Purchase Intentions by Consumer Segment

Brand Firm Explorers Shoppers Profs High Earners Savers
LOCK Legend 2% 1% 0% 1% 40 %
LOOP Legend 11 % 1% 73 % 11 % 0%
LOST Legend 7% 24 % 0% 1% 0%
MOST Megamind 3% 1% 0% 1% 30 %
MOVE Megamind 8% 5% 1% 3% 2%
NOON NEON 5% 3% 1% 3% 1%
NOTA NEON 1% 0% 0% 0% 1%
NOVA NEON 3% 0% 2% 25 % 0%
ROBUST RANGERS 1% 0% 0% 0% 15 %
ROCK RANGERS 7% 0% 8% 10 % 0%
ROLL RANGERS 16 % 2% 3% 23 % 0%
SOFT Spikers 2% 1% 0% 1% 8%
SOLO Spikers 9% 9% 1% 3% 2%
TONE Tectonic 6% 0% 10 % 16 % 0%
TOPS Tectonic 21 % 54 % 1% 3% 1%

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 Sonites.

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CONSUMER PANEL – SONITES MARKET – PERIOD 4
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 4. 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 Explorers Shoppers Profs High Earners Savers
LOCK Legend 2% 1% 0% 1% 34 %
LOOP Legend 7% 0% 55 % 6% 0%
LOST Legend 9% 34 % 0% 1% 0%
MOST Megamind 2% 1% 0% 1% 36 %
MOVE Megamind 8% 5% 1% 3% 2%
NOON NEON 4% 2% 1% 2% 1%
NOTA NEON 0% 0% 0% 0% 1%
NOVA NEON 3% 0% 3% 22 % 0%
ROBUST RANGERS 0% 0% 0% 0% 15 %
ROCK RANGERS 9% 1% 14 % 12 % 0%
ROLL RANGERS 18 % 2% 5% 24 % 0%
SOFT Spikers 2% 1% 0% 1% 9%
SOLO Spikers 11 % 11 % 1% 3% 2%
TONE Tectonic 10 % 1% 20 % 23 % 0%
TOPS Tectonic 15 % 41 % 1% 2% 1%

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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.

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DISTRIBUTION PANEL – SONITES MARKET – PERIOD 4
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
LOCK Legend 5% 19 % 7%
LOOP Legend 13 % 4% 12 %
LOST Legend 13 % 11 % 9%
MOST Megamind 4% 21 % 10 %
MOVE Megamind 4% 2% 5%
NOON NEON 3% 1% 2%
NOTA NEON 0% 1% 0%
NOVA NEON 7% 2% 5%
ROBUST RANGERS 2% 8% 4%
ROCK RANGERS 7% 2% 6%
ROLL RANGERS 10 % 4% 9%
SOFT Spikers 2% 5% 2%
SOLO Spikers 7% 5% 4%
TONE Tectonic 11 % 4% 10 %
TOPS Tectonic 16 % 11 % 14 %

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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
LOCK Legend 29 % 44 % 32 %
LOOP Legend 44 % 24 % 40 %
LOST Legend 46 % 41 % 32 %
MOST Megamind 19 % 45 % 43 %
MOVE Megamind 32 % 27 % 50 %
NOON NEON 34 % 20 % 26 %
NOTA NEON 17 % 32 % 28 %
NOVA NEON 41 % 22 % 31 %
ROBUST RANGERS 20 % 42 % 35 %
ROCK RANGERS 44 % 29 % 43 %
ROLL RANGERS 40 % 32 % 42 %
SOFT Spikers 31 % 45 % 25 %
SOLO Spikers 42 % 37 % 30 %
TONE Tectonic 54 % 35 % 51 %
TOPS Tectonic 54 % 38 % 52 %

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SEMANTIC SCALES – SONITES MARKET – PERIOD 4
The semantic scales study provides data based on a semantic differential questionnaire administered to 600 individuals. Several semantic
scales corresponding to the Sonites physical attributes were presented to the respondents. For example 1 in # Features means low # Features
and 7 in # Features means high # Features.
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 # Features Design Battery Display Proc. Power Price
LOCK Legend 4.2 3.5 2.3 2.6 2.0 2.1
LOOP Legend 5.1 5.0 5.7 5.8 5.8 5.7
LOST Legend 2.5 4.8 3.0 4.5 4.2 3.1
MOST Megamind 4.3 4.6 2.4 2.3 2.1 2.3
MOVE Megamind 3.3 3.5 3.0 4.7 2.8 3.3
NOON NEON 4.1 5.3 3.4 3.8 2.9 3.6
NOTA NEON 2.9 1.6 2.7 2.7 1.7 2.2
NOVA NEON 6.1 4.3 5.5 4.6 4.1 6.3
ROBUST RANGERS 2.5 4.8 2.0 2.7 2.3 2.1
ROCK RANGERS 4.7 4.5 3.1 6.0 5.3 6.1
ROLL RANGERS 3.2 4.2 3.6 5.4 4.3 4.8
SOFT Spikers 2.2 2.5 1.9 2.1 2.0 2.2
SOLO Spikers 1.7 4.2 2.9 4.3 3.3 3.3
TONE Tectonic 5.2 6.0 4.4 5.0 5.3 6.1
TOPS Tectonic 3.3 4.2 2.8 4.1 4.7 3.2

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 Battery Display Proc. Power Price
Explorers 4.4 2.5 5.5 5.8 6.0 3.9
Shoppers 2.0 4.9 2.9 4.5 4.4 3.2
Profs 4.8 5.5 4.9 5.7 5.8 5.5
High Earners 3.2 6.1 3.4 4.0 4.3 5.5
Savers 2.7 4.1 1.9 3.0 2.3 2.1

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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).

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 – Price X # Features

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Brand Maps – Price X Design

Brand Maps – Price X Battery

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Brand Maps – Price X Display

Brand Maps – Price X Proc. Power

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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 # Features Design Battery Display Proc. Power Price
Explorers Period 2 4.6 2.0 5.8 6.0 6.3 3.8
Explorers Period 3 4.5 2.2 5.7 5.9 6.1 3.8
Explorers Period 4 4.4 2.5 5.5 5.8 6.0 3.9
High Earners Period 2 3.3 6.3 3.5 4.4 4.5 5.5
High Earners Period 3 3.3 6.2 3.5 4.2 4.4 5.5
High Earners Period 4 3.2 6.1 3.4 4.0 4.3 5.5
Profs Period 2 5.3 5.7 5.0 5.6 5.5 5.1
Profs Period 3 5.0 5.6 4.9 5.7 5.7 5.3
Profs Period 4 4.8 5.5 4.9 5.7 5.8 5.5
Savers Period 2 2.6 3.9 1.8 2.7 2.3 2.1
Savers Period 3 2.6 3.9 1.8 2.9 2.3 2.1
Savers Period 4 2.7 4.1 1.9 3.0 2.3 2.1
Shoppers Period 2 1.9 5.1 2.9 4.2 3.9 3.2
Shoppers Period 3 2.0 5.0 2.9 4.3 4.1 3.2
Shoppers Period 4 2.0 4.9 2.9 4.5 4.4 3.2

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MULTIDIMENSIONAL SCALING OF BRAND SIMILARITIES &
PREFERENCES – SONITES MARKET – PERIOD 4
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 Sonites brands and consumer segments’ ideal points. Three
dimensions, interpreted as Economy, Performance, Convenience were sufficient to provide a good fit to the data. The two perceptual maps are
given below.
Perceptual Map – Economy X Performance

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Perceptual Map – Economy X Convenience

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 Economy Performance Convenience
LOCK Legend 12.9 -12.1 -4.2
LOOP Legend -11.3 12.1 7.5
LOST Legend 6.3 2.0 1.2
MOST Megamind 11.1 -12.1 0.8
MOVE Megamind 4.5 -4.4 -4.0
NOON NEON 2.4 -5.5 5.1
NOTA NEON 12.0 -13.3 -13.5
NOVA NEON -15.2 1.6 5.0
ROBUST RANGERS 12.4 -10.7 -0.1
ROCK RANGERS -14.2 10.1 1.7
ROLL RANGERS -5.5 4.0 -0.2
SOFT Spikers 12.3 -13.0 -10.8
SOLO Spikers 4.8 -2.6 -1.9
TONE Tectonic -14.2 8.2 10.7
TOPS Tectonic 5.6 3.3 -0.9

Ideal Values
The table below gives the coordinates of the brand positions on the perceptual map, on a scale from -20 to +20.
Segment Economy Performance Convenience
Explorers 0.7 12.8 -4.9
Shoppers 5.7 2.7 1.2
Profs -10.1 12.0 8.9
High Earners -9.9 1.4 8.3
Savers 12.8 -9.9 -3.4

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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 Economy Performance Convenience
Explorers Period 2 1.6 14.4 -6.6
Explorers Period 3 1.2 13.5 -6.0
Explorers Period 4 0.7 12.8 -4.9
High Earners Period 2 -10.3 3.3 9.4
High Earners Period 3 -10.1 2.2 8.9
High Earners Period 4 -9.9 1.4 8.3
Profs Period 2 -7.4 10.3 10.1
Profs Period 3 -8.7 11.0 9.5
Profs Period 4 -10.1 12.0 8.9
Savers Period 2 12.6 -10.7 -4.2
Savers Period 3 12.7 -10.3 -4.1
Savers Period 4 12.8 -9.9 -3.4
Shoppers Period 2 5.0 -0.3 2.5
Shoppers Period 3 5.3 1.2 2.0
Shoppers Period 4 5.7 2.7 1.2

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 # Features Design Battery Display Proc. Power Price
Economy None None Slight Slight Slight Very Strong
Performance None None Slight Moderate Strong Slight
Convenience Slight Strong Slight None Slight None

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COMPETITIVE ADVERTISING ESTIMATES – SONITES
MARKET – PERIOD 4
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 Explorers Shoppers Profs High Earners Savers TOTAL
LOCK 340 390 220 220 1,230 2,400
LOOP 450 220 1,010 500 220 2,400
LOST 450 1,060 220 220 440 2,390
MOST 270 660 270 270 820 2,290
MOVE 490 980 270 330 270 2,340
NOON 150 150 100 50 50 500
NOTA 100 100 100 100 510 910
NOVA 50 50 160 210 50 520
ROBUST 170 180 110 110 580 1,150
ROCK 210 110 320 320 100 1,060
ROLL 110 170 110 110 50 550
SOFT 170 180 120 120 770 1,360
SOLO 240 760 120 170 120 1,410
TONE 300 430 550 610 310 2,200
TOPS 570 500 190 190 500 1,950

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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
LOCK Legend Economy & Convenience Excellent
LOOP Legend Performance & Convenience Excellent
LOST Legend Economy & Performance Excellent
MOST Megamind Price & PPower Excellent
MOVE Megamind Battery & Price Good
NOON NEON
NOVA NEON
NOTA NEON Features & Battery Average
ROCK RANGERS PPower & Design Average
ROLL RANGERS PPower & Design Poor
ROBUST RANGERS Price & PPower Excellent
SOFT Spikers Price & PPower Excellent
SOLO Spikers Price & PPower Excellent
TONE Tectonic PPower & Design Excellent
TOPS Tectonic PPower & Display Good

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COMPETITIVE COMMERCIAL TEAM SIZE ESTIMATES –
SONITES MARKET – PERIOD 4
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
LOCK 18 36 12 66
LOOP 36 18 18 72
LOST 36 36 12 84
MOST 10 40 20 70
MOVE 20 19 28 67
NOON 25 13 10 48
NOTA 10 25 11 46
NOVA 35 15 13 63
ROBUST 12 40 15 67
ROCK 38 24 22 84
ROLL 31 26 24 81
SOFT 19 45 9 73
SOLO 31 31 11 73
TONE 60 30 30 120
TOPS 60 30 30 120

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MARKET FORECAST – SONITES MARKET – PERIOD 4
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.

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

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CONJOINT ANALYSIS – SONITES MARKET – PERIOD 4
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.
Explorers

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Shoppers

Profs

High Earners

23
Savers

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