1

TEAM I: VULCAN INDUSTRYCEO DEBRIEF

2

AGENDA

Industry Analysis: Sonite Market Shares Industry Sales Industry Growth Rates

Internal Analysis External Analysis Industry Analysis: Vodite

3

INDUSTRY ANALYSIS: SONITE

4

STOCK PRICE INDEX (BASE 1,000)

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5700

900

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2,500

Team ATeam ETeam ITeam O

5

CURRENT RETURN ON INVESTMENT

Year 0 Year 1 Year 2 Year 3 Year 4 Year 50.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Team ATeam ETeam ITeam O

6

MARKET SHARES

7

TOTAL SONITE MARKET SHARE

28%

19%34%

19%

Period 0

Team A

Team E

Team I

Team O

8

TOTAL SONITE MARKET SHARE

28%

20%36%

17%

Period 1

Team A

Team E

Team I

Team O

9

TOTAL SONITE MARKET SHARE

27%

18%41%

14%

Period 2

Team A

Team E

Team I

Team O

10

TOTAL SONITE MARKET SHARE

20%

18%

46%

16%

Period 3

Team A

Team E

Team I

Team O

11

TOTAL SONITE MARKET SHARE

Period 4

17%

30%42%

11%

Team ATeam ETeam ITeam O

12

TOTAL SONITE MARKET SHARE

11%

33%

45%

11%

Period 5

Team A

Team E

Team I

Team O

13

INDUSTRY SALES

14

SONITE SALES

Year 0 Year 1 Year 2 Year 3 Year 4 Year 50

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Sonite Sales ($) Team ASonite Sales ($) Team ESonite Sales ($) Team ISonite Sales ($) Team O

15

INDUSTRY CUMULATIVE SALES ($)

Year 0 Year 1 Year 2 Year 3 Year 4 Year 50

100000

200000

300000

400000

500000

600000

Team ATeam ETeam ITeam OTotal Industry Sales

16

CUMULATIVE SONITE SALES ($)

Year 0 Year 1 Year 2 Year 3 Year 4 Year 50

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Team ATeam ETeam ITeam O

17

INDUSTRY GROWTH RATES

18

MARKET SEGMENT GROWTH(FORECASTS NOT TO SCALE)

Period 0 Period 1 Period 2 Period 3 Period 4 Period 5 Forcasts Period 6

Forecasts Period 10

0

100

200

300

400

500

600

700

800

900

BuffsSinglesProsHi EarnersOthers

KU

19

INTERNAL ANALYSISFirm I

20

UNITS SOLD BY YEAR

Year 0 Year 1 Year 2 Year 3 Year 4 Year 50

50000

100000

150000

200000

250000

300000

350000

400000

450000

SIDESIGHSISISIPR

21

CUMULATIVE BRAND SALES ($)

Year 0 Year 1 Year 2 Year 3 Year 4 Year 50

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

SIDESIGHSISISIPR

22

CUMULATIVE COSTS

85%

1%8%

2% 1%3%

Cumulative Costs through period 5 ($K)

Costs of Good Sold Inventory Holding and Disposal CostsAdvertising ExpendituresSales Force Operating CostsMarket ResearchResearch and Development

23

CONTRIBUTION AFTER MARKETING BY BRAND

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

-10,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Contibution after Marketing by Brand SIDE

Contibution after Marketing by Brand SIGH

Contibution after Marketing by Brand SISI

Contibution after Marketing by Brand SIPR

Year 0 Year 1 Year 2 Year 3 Year 4 Year 50

10,00020,00030,00040,00050,00060,00070,00080,000

Total

24

GROWTH SHARE MATRIX: SONITE

25

EXTERNAL ANALYSISCOMPETING FIRMS

26

COMPETITION: YEAR 5 DATASegments with competing brands

27

COMPETITIVE ADVERTISING: SONITE

SIGH SAFE SEED SIDE SAKE SIPR SELL SIDE SAKE SISI SOAP SELL SOLD SECT SODABuffs Hi Earners Pros Singles Others

Competitive Advertising

0

500

1000

1500

2000

2500

3000

3500

28

COMPETITIVE SALES FORCE: SPECIALTY STORES

SIGH SAFE SEED SIDE SAKE SIPR SELL SIDE SAKE SISI SOAP SELL SOLD SECT SODABuffs Hi Earners Professionals Singles Others

Competitive Sales Force in Specialty Stores

0

2

4

6

8

10

12

14

16

29

COMPETITIVE SALES FORCE: DEPARTMENT STORES

SIGH SAFE SEED SIDE SAKE SIPR SELL SIDE SAKE SISI SOAP SELL SOLD SECT SODABuffs Hi Earners Professionals Singles Others

Competitive Sales Force in Department Stores

0

5

10

15

20

25

30

COMPETITIVE SALES FORCE: MASS MERCHANDISERS

SIGH SAFE SEED SIDE SAKE SIPR SELL SIDE SAKE SISI SOAP SELL SOLD SECT SODABuffs Hi Earners Professionals Singles Others

Competitive Sales Force in Mass Merchandisers

0

2

4

6

8

10

12

14

31

Evolution of Retail Sales for Sonite Market

32

COMPETITORS BY SEGMENT

33

BUFFS: SIGH, SAFE, SEED

56%

4%

40%

Market Share

SIGHSAFESEED

bran

d aw

aren

ess

purc

hase

inte

ntio

ns

Segm

ent M

arke

t Sha

re b

ased

on

Unit S

ales

0%20%40%60%80%

SIGH

SAFE

SEED

SIGHSAFESEED

34

HIGH EARNERS: SIDE, SAKE

74%

26%

Market Share

SIDESAKE

bran

d aw

aren

ess

purc

hase

inte

ntio

ns

Segm

ent M

arke

t Sha

re b

ased

on

Unit S

ales

0.00%20.00%40.00%60.00%80.00%

SIDESAKE

35

PROFESSIONALS: SIPR, SELL, SIDE, SAKE

51%

22%

14%

13%

Market Share

SIPRSELLSIDESAKE

bran

d aw

aren

ess

purc

hase

inte

ntio

ns

Segm

ent M

arke

t Sha

re b

ased

on

Unit S

ales

0.00%

20.00%

40.00%

60.00%

80.00%

SIPR

SELL

SIDE

SAKE

SIPRSELLSIDESAKE

36

SINGLES: SIS, SOAP, SELL

32%

12%

56%

Market Share

SISISOAPSELL

bran

d aw

aren

ess

purc

hase

inte

ntio

ns

Segm

ent M

arke

t Sha

re b

ased

on

Unit S

ales

0.00%

20.00%

40.00%

60.00%

SISI

SOAP

SELL

SISISOAPSELL

37

OTHERS: SECT, SOLD, SODA, SELL

10%

70%

10% 10%

Market Share

SOLDSECTSODASELL

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

SOLD

SECT

SODA

SELL

SOLDSECTSODASELL

38

INDUSTRY ANALYSIS: VODITE

39

TOTAL VODITE MARKET SHARE(RETAIL SALES)

15%

66%

19%

Year 5

Team OTeam ITeam A

40

VODITE SALES

Team A Team I Team O0

20000

40000

60000

80000

100000

120000

Period 5

Period 5

41

MARKET SEGMENT GROWTH(FORECASTS NOT TO SCALE)

Period 4 Period 5 Forecasts Period 6

Forecasts Period 10

0

100

200

300

400

500

600

700

InnovatorsAdoptersFollowers

42

INTERNAL ANALYSIS

43

COSTS

87%

1% 8%

1% 2%1%

Vodite Costs

Costs of goods soldInventory holding costsadvertising expendituresadvertising research expendituressales forcemarket research studies

44

GROWTH SHARE MATRIX: VODITE

45

VINO, YEAR 5

Retail Sales (K$) :    49094 Contribution after marketing (K$): -878

46

EXTERNAL ANALYSIS

47

VODITE SALES FORCE

VANS VINO VOLOCompetitive Sales Force in Specialty Stores

0

5

10

15

20

25

VANS VINO VOLOCompetitive Sales Force in Department Stores

0

2

4

6

8

10

12

14

16

VANS VINO VOLOCompetitive Sales Force in Mass Merchandisers

0

1

2

3

4

5

6

7

8

9

48

COMPETITIVE ADVERTISING: VODITE

VINO VOLO VANSCompetitive Advertising-Vodite

0

500

1000

1500

2000

2500

3000

3500

49

Evolution of Retail Sales for Vodite Market

50

VODITE: INNOVATORS

Innovators Market Share

VINOVOLOVANS 0.00%

40.00%80.00%

Innovators

VANSVINOVOLO

51

EARLY ADOPTERS

Early Adopters Market Share

VINOVOLOVANS

0.00%30.00%60.00%

Early Adopters

VANSVINOVOLO

52

FOLLOWERS

Followers Market Share

VINOVOLOVANS

0.00%25.00%

Followers

VANSVINOVOLO

53

VODITE INDUSTRY

Total Industry Market Share

VINOVOLOVANS

brand awareness purchase

intentions Market Share

based on Unit Sales

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%

Total Vodite Industry

VINOVOLOVANS

54

VODITE DISTRIBUTION COVERAGE

Specialty Stores Department Stores Mass Merchandisers0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

VINOVOLOVANS