Price Drif

Round 0 Round 1 Round 2 Round 3

Low High Low High Low High Low
Traditional $20.00 $30.00 $19.50 $29.50 $19.00 $29.00 $18.50

Low End $15.00 $25.00 $14.50 $24.50 $14.00 $24.00 $13.50

High End $30.00 $40.00 $29.50 $39.50 $29.00 $39.00 $28.50

Performance $25.00 $35.00 $24.50 $34.50 $24.00 $34.00 $23.50

Size $25.00 $35.00 $24.50 $34.50 $24.00 $34.00 $23.50

Segment Centers at the End of Each Round

Traditional Low End High End Performance
Round Pfmn Size Pfmn Size Pfmn Size Pfmn
0 5.0 15.0 2.5 17.5 7.5 12.5 8.0
1 5.7 14.3 3.0 17.0 8.4 11.6 9.0
2 6.4 13.6 3.5 16.5 9.3 10.7 10.0
3 7.1 12.9 4.0 16.0 10.2 9.8 11.0
4 7.8 12.2 4.5 15.5 11.1 8.9 12.0
5 8.5 11.5 5.0 15.0 12.0 8.0 13.0
6 9.2 10.8 5.5 14.5 12.9 7.1 14.0
7 9.9 10.1 6.0 14.0 13.8 6.2 15.0
8 10.6 9.4 6.5 13.5 14.7 5.3 16.0

Segment Circle Drift Rates (Every year, customers demand increased performance (Pfmn) and
Segment Pfmn Size
Traditional 0.7 -0.7
Low End 0.5 -0.5
High End 0.9 -0.9
Performance 1.0 -0.7
Size 0.7 -1.0
 Price Drift Model
Round 3 Round 4 Round 5 Round 6 Round 7 Round 8
High Low High Low High Low High Low High Low
$28.50 $18.00 $28.00 $17.50 $27.50 $17.00 $27.00 $16.50 $26.50 $16.00

$23.50 $13.00 $23.00 $12.50 $22.50 $12.00 $22.00 $11.50 $21.50 $11.00

$38.50 $28.00 $38.00 $27.50 $37.50 $27.00 $37.00 $26.50 $36.50 $26.00

$33.50 $23.00 $33.00 $22.50 $32.50 $22.00 $32.00 $21.50 $31.50 $21.00

$33.50 $23.00 $33.00 $22.50 $32.50 $22.00 $32.00 $21.50 $31.50 $21.00

Performance Size
Size Pfmn Size
17.0 3.0 12.0
16.3 3.7 11.0
15.6 4.4 10.0
14.9 5.1 9.0
14.2 5.8 8.0
13.5 6.5 7.0
12.8 7.2 6.0
12.1 7.9 5.0
11.4 8.6 4.0

erformance (Pfmn) and decreased size. )

Round 8
High
$26.00

$21.00

$36.00

$31.00

$31.00
Sales Projection = Potential Market Share % * Segment Total Size * (1 + Segment Grow
Round 7

Our Price
Segment Product Important Pfmn Size Previous MTBF Price Promo
Position Year

Age
Price
Traditional Daze 1 Position 8.5 11.5 $24.99 17,000 $24.99 $1,400
Reliability

Price
Age
Low Dell 1 Position 3.5 16.5 $15.99 12,000 $15.99 $1,400
Reliability

Position
Age
High Dixie 3 Reliability 13.4 6.6 $36.99 24,000 $36.99 $1,400
Price

Reliability
Position
Performance Dot 1 Price 14.5 12.5 $31.99 27,000 $31.99 $1,400
Age

Position
Age
Size Dune 2 Reliability 7.5 5.6 $31.49 21,000 $31.49 $1,400
Price

2nd Low Dell-O 9 4.7 15.3 $20.49 12,000 $20.49 $1,500

2nd Traditional Dixi-O 2 8.4 11.6 $24.99 14,000 $24.99 $1,500

2nd High Duke-O 2 13.3 6.7 $37.49 23,000 $37.49 $1,900

Segment Centers at the End of Each Round

Traditional Low End High End Performance Size
Round Pfmn Size Pfmn Size Pfmn Size Pfmn Size Pfmn
0 5.0 15.0 2.5 17.5 7.5 12.5 8.0 17.0 3.0
1 5.7 14.3 3.0 17.0 8.4 11.6 9.0 16.3 3.7
2 6.4 13.6 3.5 16.5 9.3 10.7 10.0 15.6 4.4
3 7.1 12.9 4.0 16.0 10.2 9.8 11.0 14.9 5.1
4 7.8 12.2 4.5 15.5 11.1 8.9 12.0 14.2 5.8
5 8.5 11.5 5.0 15.0 12.0 8.0 13.0 13.5 6.5
6 9.2 10.8 5.5 14.5 12.9 7.1 14.0 12.8 7.2
7 9.9 10.1 6.0 14.0 13.8 6.2 15.0 12.1 7.9
8 10.6 9.4 6.5 13.5 14.7 5.3 16.0 11.4 8.6
5 8.5 11.5 5.0 15.0 12.0 8.0 13.0 13.5 6.5
6 9.2 10.8 5.5 14.5 12.9 7.1 14.0 12.8 7.2
7 9.9 10.1 6.0 14.0 13.8 6.2 15.0 12.1 7.9
8 10.6 9.4 6.5 13.5 14.7 5.3 16.0 11.4 8.6
e * (1 + Segment Growth Rate)

Top Competitor
Comp
Comp Market Price Segment Segment
Sales Market Pfmn Size Previous MTBF Promo Sales Growth
Share % Share Year Total Size Rate
Sales

$1,500 14% 1,740 8.2 12.0 $26.50 17,500 $1,400 $1,800 12,526 9.2%

$1,500 18% 3,131 4.2 15.8 $14.80 12,350 $1,400 $2,000 17,404 11.7%

$1,800 22% 1,357 13.4 6.5 $37.00 24,000 $1,400 $1,800 6,286 16.2%

$2,200 20% 1,146 14.5 12.4 $31.50 27,000 $1,500 $2,000 5,662 19.8%

$2,500 24% 1,297 8.5 5.5 $32.00 21,000 $1,400 $1,800 5,437 18.3%

$1,500 17,404 11.7%

$1,500 12,526 9.2%

$1,800 6,286 16.2%

erformance Size
n Size Pfmn Size
8.0 17.0 3.0 12.0 Segment Circle Drift Rates (Every year, customers demand increased p
9.0 16.3 3.7 11.0 Segment Pfmn Size
10.0 15.6 4.4 10.0 Traditional 0.7 -0.7
11.0 14.9 5.1 9.0 Low End 0.5 -0.5
12.0 14.2 5.8 8.0 High End 0.9 -0.9
13.0 13.5 6.5 7.0 Performance 1.0 -0.7
14.0 12.8 7.2 6.0 Size 0.7 -1.0
15.0 12.1 7.9 5.0
16.0 11.4 8.6 4.0
13.0 13.5 6.5 7.0
14.0 12.8 7.2 6.0
15.0 12.1 7.9 5.0
16.0 11.4 8.6 4.0
Potential Actual
Market Market Sales Inventory Inventory % Forecast Manual Forecast Comments
Share % Share % of Sales Draft Override Final

16.5% 17.5% 2,225 - 0% 2,257 0 2,257

17.8% 23.0% 4,007 36 1% 3,460 0 3,460

14.0% 19.7% 1,241 - 0% 1,023 0 1,023

17.5% 22.9% 1,298 234 18% 1,187 0 1,187

20.0% 23.2% 1,247 - 0% 1,286 0 1,286

8.9% 5.2% 906 - 0% 1,730 0 1,730

12.0% 15.2% 1,922 151 8% 1,641 0 1,641

21.5% 21.3% 1,341 - 0% 1,570 0 1,570

Production Needed = (Sales Projection * (1 + Extra Buffer) – On-hand Inventory

Extra
Buffer = 12%

Sales Oh-Hand Production Manual Production

Required Required
Projection Inventory Draft Override Final

2,257 - 2,528 0 2,528

3,460 36 3,840 0 3,840

1,023 - 1,145 0 1,145

1,187 234 1,095 0 1,095

1,286 - 1,441 0 1,441

1,730 - 1,938 0 1,938

1,641 151 1,687 0 1,687

1,570 - 1,759 0 1,759

 Customers' Competitors'
For ROUND 7 Criteria Price
Current Lowest Rival's NEXT
Price Min Max Importance Price Price Price
Daze (Trad) $ 24.99 $ 17.00 $ 27.00 *** $ 24.99 $ 26.50 $ 24.49
Dell (Low) $ 15.99 $ 12.00 $ 22.00 **** $ 14.80 $ 14.80 $ 15.49
Dixie (High) $ 36.99 $ 27.00 $ 37.00 * $ 36.60 $ 37.00 $ 36.49
Dot (Pfmn) $ 31.99 $ 22.00 $ 32.00 ** $ 31.49 $ 31.50 $ 31.49
Dune (Size) $ 31.49 $ 22.00 $ 32.00 * $ 31.49 $ 32.00 $ 30.99
Dell-O (Low) $ 20.49 $ 12.00 $ 22.00 **** $ 14.80 $ 14.80 $ 19.49
Dixi-O (Trad) $ 24.99 $ 17.00 $ 27.00 *** $ 24.99 $ 26.50 $ 24.49
Duke-O (High) $ 37.49 $ 27.00 $ 37.00 * $ 36.60 $ 37.00 $ 36.99
 Contribution TIP: keep CM
P1-P0 Unit cost Margin 30%
-$0.50 $ 10.26 58% OK
-$0.50 $ 6.02 61% OK
-$0.50 $ 19.85 46% OK
-$0.50 $ 17.23 45% OK
-$0.50 $ 17.97 42% OK
-$1.00 $ 11.31 42% OK
-$0.50 $ 14.05 43% OK
-$0.50 $ 19.34 48% OK