BLINK SYSTEMS PVT. LTD.

Performance Overview

MISSION

To provide our customers easy to use dependable products that fulfill their needs by offering an enjoyable experience through innovative technology.

Responsibilities

Officer Name Primary Responsibility

Rohitkumar Nair Siddharth Kulkarni

VP-Brand Management / Advertisement

Vaibhav Mittal VP-Finance

Mohil mishra VP-Marketing Research

ashu Gurtoo President-Overall Leadership

neena wilson VP-Sales Management

Target Markets

1 CostCutter

0 Innovators

0 Mercedes

0 Work Horse

2 Traveler

TEST MARKET Q3REGION CATEGORY BRAND

United States - NewYork 1. Cost Cutter

2. TravellerBliss ST-1EmPower XS-1United Kingdom

- London

Industry results for quarter: 3

Minimum Maximum Average Blink Systems Private Limited

Total Overall 0.00 0.00 0.00 0.00Financial Performance -252.08 -33.41 -115.99 -33.41

Market Performance 0.09 0.77 0.37 0.77

Marketing Effectiveness 0.48 0.65 0.57 0.65

Investment in Future 1.00 5.41 2.53 3.00

Wealth 0.26 0.36 0.30 0.26

IMPLICATIONS & ACTIONS• Improvement of Marketing Effectiveness for both Bliss ST-1 and

EmPower XS-1

• Modification of Advertisement for Bliss ST-1 & EmPower XS-1

• Priority 1 given to Traveler – Max contribution to profit

• Enter Canada Market (Montreal) & Expand in US Market (LA)

• Launch of Endure, targeted at Workhorse segment – ( Requirements of this category was similar to the Cost Cutter Segment )

Quarter 4 ResultsIndustry results for quarter: 4

Minimum Maximum Average Blink Systems Private Limited

Total Overall 0.00 2.32 0.46 2.32

Financial Performance -59.63 5.64 -28.11 5.64

Market Performance 0.18 0.90 0.36 0.90

Marketing Effectiveness 0.60 0.66 0.63 0.66

Investment in Future 1.24 2.65 1.85 1.24

Wealth 0.19 0.56 0.30 0.56

IMPLICATIONS & ACTIONS for Q5

• Substantial increase in total performance• Maintains leadership in market (across category

& region)• Poor ad judgement (mainly because of Cost

Cutter – 59)• Expansion in US, Canada & UK market• Investement in R&D – New features for Traveler segment (based on

customer need)

IMPLICATIONS & ACTIONS for Q5

• Ad modification for Bliss XS-1 (more importance given to rebates)

• Increase in sales force (total 50 across 5 cities)

Quarter 5 ResultsIndustry results for quarter: 5

Minimum Maximum Average Blink Systems Private Limited

Total Overall 0.00 12.77 2.55 12.77

Financial Performance -33.84 13.29 -11.68 13.29

Market Performance 0.16 0.50 0.30 0.50

Marketing Effectiveness 0.56 0.68 0.63 0.68

Investment in Future 2.11 10.59 7.82 8.30

Wealth 0.21 0.71 0.38 0.34

IMPLICATION & ACTION for Q6

• Ad judgement improves (Bliss ST-1: 59 to 72)

• Market share in targeted segment drops due to launch of ‘me 2’ brands

• Market leadership maintained

IMPLICATION & ACTION for Q6

• Launch of new brand and modification of existing– Neo EmPower - Traveler– Innova – Innovator & Mercedes– Neo Endure - Workhorse– Bliss ST-1 (modified) – Cost Cutter

• New positioning for Bliss ST-1 (Better Value +)• Increase in sales force (New product launch &

New Markets ) - 219

ANSOFF MATRIXPRODUCT

MARKET

OLD NEW

OLD

PENETRATION PRODUCT DEVELOPMENT

NEW

MARKET DEVELOPMENT DIVERSIFICATION

QUARTER 6 RESULTSIndustry results for quarter: 6

Minimum Maximum Average Blink Systems Private Limited

Total Overall 0.00 13.04 2.71 13.04

Financial Performance -39.14 19.27 -5.97 19.27

Market Performance 0.08 0.66 0.23 0.66

Marketing Effectiveness 0.57 0.73 0.65 0.73

Investment in Future 1.07 4.73 2.88 1.07

Wealth -0.06 1.34 0.35 1.34

IMPLICATIONS & ACTIONS

• Increase in Market Performance & Effectiveness from last quarter – Owing to release of new & modified brands, sales force increase

• Innovation (Differentiating from earlier offering) in existing product line to maintain leadership

• Introducing Promotional program for sales force (to motivate more selling)

• Increasing sales force (280)• Increasing R&D investment in Traveler segment

Quarter 7 ResultsIndustry results for quarter: 7

Minimum Maximum Average Blink Systems Private Limited

Total Overall 0.03 44.37 8.95 44.37Financial Performance 1.16 23.04 9.78 23.04

Market Performance 0.08 0.55 0.25 0.55

Marketing Effectiveness 0.60 0.74 0.66 0.72

Investment in Future 1.13 2.24 1.50 2.24

Wealth 0.09 2.20 0.56 2.20

IMPLICATION & ACTION

• Drop in Market Performance – Launch of new products by competitor

• Leadership position maintained in the market• New products to be launched to counter

competitors move (to improve penetration)– EmPower visio– Innova ultra– Neo Bliss– EmPower XS-1 (modified)

New launches

IMPLICATION & ACTION

• New communication (advertisement) to improve effectiveness)

• Increasing sales force (530) – considering launch of new & modified brands

• Increased sales force promotion budget

Quarter 8 resultsIndustry results for quarter: 8

Minimum Maximum Average Blink Systems Private Limited

Total Overall 0.00 29.02 6.79 29.02Financial Performance -6.46 16.87 4.48 16.39

Market Performance 0.05 0.57 0.24 0.57

Marketing Effectiveness 0.61 0.77 0.70 0.74

Investment in Future 1.00 1.04 1.02 1.03

Wealth 0.03 4.09 1.14 4.09

MARKET SHAREMarket Demand

Company CostCutter Innovators Mercedes Work Horse Traveler Total Demand

Blink Systems Private Limited 6,779 4,761 4,124 2,787 9,590 28,041

OmniSol Computers Pvt. Ltd. 2,654 2,964 2,618 2,372 6,059 16,667

3S Inc. 967 569 609 718 1,492 4,355SPIRECOM LTD 127 3,996 2,448 1,316 1,302 9,189

HoriZen-Y Computers Pvt Ltd. 146 402 692 366 798 2,404

Total 10,673 12,692 10,491 7,559 19,241 60,656

Market Share

Company CostCutter Innovators Mercedes Work Horse Traveler Total Market Share

Blink Systems Private Limited 63.5% 37.5% 39.3% 36.8% 49.8% 46.2%

OmniSol Computers Pvt. Ltd. 24.8% 23.3% 24.9% 31.3% 31.4% 27.4%

3S Inc. 9% 4.4% 5.8% 9.4% 7.7% 7.1%SPIRECOM LTD 1.1% 31.4% 23.3% 17.4% 6.7% 15.1%

HoriZen-Y Computers Pvt Ltd. 1.3% 3.1% 6.5% 4.8% 4.1% 3.9%

q3 q4 q5 q6 q7 q85960616263646566676869

Cost cutter BJCost cutter CBJ

Bran

d Ju

dgem

ent

BRAND JUDGEMENT (OVER THE 2 YEARS)

q3 q4 q5 q6 q7 q80

102030405060708090

Traveller BJ

AVERAGE PRICING(OVER THE 2 YEARS)

q3 q4 q5 q6 q70

500

1000

1500

2000

2500

3000

3500

4000

bliss ST-1empower XS-1Neo EmpowerInnovainnova ultraempower visioNeo Bliss

Brand Profitability

Bliss ST-1 EmPower XS1 Neo Endure XL Neo EmPower Neo Innova Empower Visio Innova Ultra Neo Bliss

Sales Revenue 6,702,554 9,868,857 5,538,852 15,611,487 11,706,090 4,986,050 20,976,150 5,036,647

Rebates 190,400 195,450 102,700 107,425 54,750 52,325 231,075 91,650

Cost of Goods Sold 3,519,499 5,080,779 3,000,269 8,212,759 7,921,042 2,358,591 14,539,604 2,553,971

Gross Margin 2,992,655 4,592,628 2,435,883 7,291,303 3,730,298 2,575,134 6,205,471 2,391,026

Brand Creation/Revision

0 60,000 0 0 0 60,000 60,000 60,000

Ad(s) Creation/Revision

30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

Brand Advertising 129,576 179,595 354,339 204,191 331,615 261,783 533,713 405,867

Brand Promotions 88,000 100,600 59,900 100,600 59,900 64,500 64,500 64,500

Product Profit 2,745,079 4,222,433 1,991,644 6,956,512 3,308,783 2,158,851 5,517,258 1,830,659

% from Revenue 41 43 36 45 28 43 26 36

Profit per Unit 698 1,288 970 1,395 918 1,435 921 681

Regional Profitability United States Canada Brazil Europe China

Revenues 18,633,629 14,690,658 14,016,800 15,859,900 17,225,700Rebates 176,900 199,475 166,350 244,900 238,150

Cost of Goods Sold 10,722,521 8,684,062 8,365,193 8,969,127 10,445,612

Gross Margin 7,734,208 5,807,121 5,485,257 6,645,873 6,541,938

Sales office leases 325,000 186,000 139,000 268,000 141,000

Sales force expense 3,995,754 2,068,959 2,125,961 3,490,126 1,206,547

Brand Promotions 94,000 144,000 104,000 164,500 96,000

Special programs 391,674 264,794 220,662 391,674 198,595

Point of Purchase Display expenses 6,400 6,400 6,400 6,400 6,400

Advertising expenses 553,149 484,962 424,236 524,372 413,967

Market research 20,000 20,000 20,000 20,000 20,000Operating expenses 5,385,977 3,175,115 3,040,259 4,865,072 2,082,509

Operating profit 2,348,231 2,632,006 2,444,998 1,780,801 4,459,429

% from revenue 13 18 17 11 26

Profitability of Marketing Division

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8

Revenues 0 0 1,132,519 5,062,493 6,367,541 36,050,476 54,573,003 80,426,687

Rebates 0 0 30,700 99,750 115,000 285,125 498,700 1,025,775

Cost of goods sold 0 0 811,028 2,718,438 3,333,652 20,301,282 31,807,722 47,186,515

Gross margin 0 0 290,791 2,244,305 2,918,889 15,464,069 22,266,581 32,214,397

Sales office leases 0 0 170,000 310,000 351,000 779,000 779,000 1,059,000Sales force expense 0 0 327,728 1,206,669 1,296,994 6,571,652 6,924,194 12,887,347Brand promotions 0 0 0 0 0 0 184,000 602,500Special programs 0 0 0 0 0 0 801,000 1,467,399Ad creation/revision

0 0 60,000 90,000 30,000 120,000 89,999 239,999

Point of Purchase Display expenses

0 0 800 2,400 3,000 12,000 12,000 32,000

Advertising expenses 0 0 70,601 249,973 331,859 732,903 622,171 2,400,686Engineering cost for new brands

0 120,000 0 60,000 0 240,000 180,000 240,000

Market research 88,000 0 40,000 40,000 60,000 60,000 100,000 100,000Operating expenses 88,000 120,000 669,129 1,959,042 2,072,853 8,515,555 9,692,364 19,028,931

Operating profit -88,000 -120,000 -378,338 285,263 846,036 6,948,514 12,574,217 13,185,466Research and development costs

0 0 0 0 3,865,893 0 5,940,969 0

Set up costs for new sales offices

0 300,000 220,000 60,000 700,000 0 560,000 0

Net profit for division -88,000 -420,000 -598,338 225,263 -3,719,857 6,948,514 6,073,248 13,185,466

Cumulative net profit for division

-88,000 -508,000 -1,106,338 -881,075 -4,600,932 2,347,582 8,420,830 21,606,296