INDUSTRY A FIRM 2 Period 1 Results

**************** Financial Summary ****************

2_CATCHY Channel 1 Channel 2 Total

--------

Units Sold 16770 6599 23369

Wholesale Price $190.00 $140.00

Unit Cost $51.00 $51.00

Gross Sales $3,186,300 $923,860 $4,110,160

Cost of Goods Sold $855,270 $336,549 $1,191,819

Transfer Charges $0

Gross Margin $2,918,341

Expenses

Advertising $300,000

Sales Force-Salary $360,000 $40,000 $400,000

-Firing Costs $0

-Commission $159,315 $46,193 $205,508

Customer Service $161,000

Sales Promotion $35,000 $10,000 $45,000

R&D for Product Modifications $8,000

Marketing Research $70,000

Total Expenses $1,189,508

Interest Income $12,000

Net Contribution (Loss) $1,740,833

Budget for Next Period: $1,217,000 ( 24% of Industry Total)

Remaining Reserve Funds: $200,000

*************** Production Summary ****************

Requested Actual Units Inventory Unit

Brand Production Production Sold Transferred Cost

_____ __________ __________ ____ ___________ ____

2_CATCHY 28,000 23,369 23,369 0 $51.00

 *************** Industry Sales Report ***************

VRD Unit Market Share $ Sales Market Share

Brand Sales (Units) (Retail) ($ Sales)

----- ----- ------- -------- ---------

1_SMART 33,600 0.297 $9,421,491 0.274

2_CATCHY 23,369 0.207 $7,767,976 0.226

3_BNN 22,508 0.199 $7,395,020 0.215

4_SUGUS 33,600 0.297 $9,832,892 0.286

Total 113,077 $34,417,379

Unit $

Channel Sales Sales

------- ----- -----

1 61,874 $23,496,312

2 51,203 $10,921,067

********** Product Features & Prices Report ***********

Average Average

VRD Special Error Ease of Retail Price Retail Price

Brand Commands Protection Learning Channel 1 Channel 2

----- -------- ---------- -------- --------- ---------

1_SMART 8 3 4 $379.76 $212.52

2_CATCHY 9 3 3 $379.58 $212.52

3_BNN 8 3 4 $379.76 $212.52

4_SUGUS 8 3 4 $379.89 $214.74

*************** Marketing Activity Report ***************

(Data Reported Is from Period 1)

VRD 1_SMART 2_CATCHY 3_BNN 4_SUGUS

------- -------- ----- -------

Advertising Dollars $350,000 $300,000 $350,000 $379,000

Advertising Type Pioneering Pioneering Pioneering Pioneering

Sales Promotion

Channel 1 $20,000 $35,000 $20,000 $7,500

Channel 2 $10,000 $10,000 $10,000 $4,500

Number of Sales Reps

Channel 1 18 18 18 16

Channel 2 2 2 2 4

Commission 5% 5% 5% 7%

Customer Service $101,000 $161,000 $101,000 $90,000

 ********** Report 1: Market Share By Segment **********

VRD

Brand Students Home Users Assistants Creators Managers Parents

----- -------- ---------- ---------- -------- -------- -------

1_SMART 0.368 0.358 0.254 0.264 0.252 0.292

2_CATCHY 0.155 0.145 0.232 0.244 0.255 0.202

3_BNN 0.145 0.164 0.235 0.217 0.220 0.216

4_SUGUS 0.331 0.333 0.280 0.274 0.273 0.290

Total

Sales 23,306 17,307 26,989 12,333 24,223 8,919

(in units)

********** Report 3: Average Customer Preferences **********

Product: VRD

Special Error Ease of Approximate

Segment Commands Protection Learning Price Range

------- -------- ---------- -------- -----------

Students 11.6 2.9 3.6 $127.00 - $157.00

Home Users 10.0 4.6 7.6 $140.00 - $177.50

Assistants 11.0 6.7 7.9 $208.00 - $268.00

Creators 13.5 2.7 3.5 $223.00 - $283.00

 Managers 15.9 5.3 4.0 $248.00 - $323.00

Parents 5.4 3.6 9.8 $151.43 - $194.29

********** Report 4: Marketing Effectiveness Report **********

# of Competitors # of Competitors with

with lower equal or higher

Index Index Index

------ ------ ------

Brand Awareness - 2_CATCHY 0.544 0 3

Customer Service

Consumer Group Rating 173%

Industry Average Rating 122%

Channel 1:

Sales Rep Workload Index 214%

Dealer Satisfaction 0.721 2 1

Channel Strength ("Push") 0.281 2 1

Channel 2:

Sales Rep Workload Index 326%

Dealer Satisfaction 0.615 1 2

Channel Strength ("Push") 0.076 0 3