Jerry GanguzzaSharp Electronics Corporation

Director, MarketingLCD Products Division

‘B2B’

Professional LCD/DLP Projectors

Professional LCD Flat Panel Displays

About Sharp and How We Sell

• Sharp Corporation is a Japan based international consumer electronics company with subsidiaries world-wide.

• Sharp Electronics Corporation is a US based company that purchases product from Sharp Corporation, Japan.

• Sharp Electronics distributes product through a national dealer and distributor network.

• Our dealer network then sells product to the end-user

• Our dealers and distributors are our key customers, followed by the end-user community.

Marketing Activities

• Market Research/Analysis• Product Line Branding• Distribution Channels• Programs and Promotions• Public Relations• Advertising• Direct Marketing

– E-mail– Direct Mail– Telemarketing

• Collateral Material• Website Development and Maintenance• Trade Shows and Events• Results Tracking

Market Research/Analysis

• Ensure that market calls for specific product– Market Demand

– Market Saturation

Units/Revenue/ASP/Screen Size

U.S. DIRECT VIEW BUSINESS FORECAST 2002-2006

1.7%0.3%

11.3%

7.8%27.5%

58.3%41.1%31.7%

18.4%1.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

>55"

40-44"

30-34"2006 2002

54.1 71.6

159.7

339.9

618.0

0

100

200

300

400

500

600

700

2002 2003 2004 2005 2006

Units

# T

hous

ands

$411.1$497.0

$758.4

$1,046.2

$1,628.4

$0.0

$300.0

$600.0

$900.0

$1,200.0

$1,500.0

$1,800.0

2002 2003 2004 2005 2006

Revenue

$ M

illi

ons

$7,599$6,942

$4,749

$3,078 $2,635

$0.0

$2,000.0

$4,000.0

$6,000.0

$8,000.0

$10,000.0

2002 2003 2004 2005 2006

(CAGR –22.4%)

$ M

illi

ons

(CAGR +87.5%) (CAGR +41.8%)

ASP Screen Size% 2002 vs. 2006

Scre

en S

ize

“

+868.4%

+29.6%

-52.8%

+44.8%

+466.6%

6

Market / Product Trends

2004 Market Segment Unit EstimatesMARKET SEGMENT UNITS % OF UNITS CATEGORY UNITS % OF UNITS

Corporate 453.1 44% Mobile (<5 lbs)

Meeting/Multipurpose (5-10 lbs) Fixed/Installed-Specialty (10+ lbs)

312,665 95,159 45,314

69% 21% 10%

SOHO 82.4 8.0% Mobile (<5 lbs)

Meeting/Multipurpose (5-10 lbs) Fixed/Installed-Specialty (10+ lbs)

65,087 15,654 1,648

79% 19% 2%

Religion 51.5 5% Mobile (<5 lbs)

Meeting/Multipurpose (5-10 lbs) Fixed/Installed-Specialty (10+ lbs)

- 26,261 25,232

- 51% 49%

Government 144.2 14% Mobile (<5 lbs)

Meeting/Multipurpose (5-10 lbs) Fixed/Installed-Specialty (10+ lbs)

47,580 80,743 15,961

33% 56% 11%

Education 298.7 29% Mobile (<5 lbs)

Meeting/Multipurpose (5-10 lbs) Fixed/Installed-Specialty (10+ lbs)

92,584 179,196 26,879

33% 56% 11%

Total 1029.9 100% Mobile (<5 lbs)

Meeting/Multipurpose (5-10 lbs) Fixed/Installed-Specialty (10+ lbs)

517,916 397,013 115,034

50.3% 38.6% 11.1%

* Estimates developed in cooperation with Shenken & Associates, 2003.

• PMA / TFCInfo / Dun & Bradstreet Mapping Analysis

• End-user survey panel results: n=350

Market Research/Analysis

• Ensure that market calls for specific product– Market Demand– Market Saturation

• Define Product Specifications– Telemarketing and on-line surveys– Key end-user visits (Universities, Johnson & Johnson, etc.)– Dealer/Distributor feedback

• Follow market trends– ie. - Projector trend is leaning heavily towards low-end smaller, lighter

and brighter projectors. Less market and demand for high-end, heavy permanent installed projectors.

• Competitive Research• Market Data Collection from end-users

– Sharp”ER”

For Unforgettable Presentations!

Product Line Branding

Distribution Channels

• After Market Data is collected and tallied, the proper distribution channel(s) are selected to sell the product– Pro Audio Visual Dealers

– Audio Visual Distributors

– PC Channel Distributors

– PC Channel Resellers

– Direct Sales from Sharp

Programs and Promotions

• As product is launched, dealer/distributor/reseller/end-user programs and promotions are developed– Initial Buy-In promos for dealers/distributors/resellers

• Buy 10 get 1 free• Buy 10 get 10% off entire order

• Mix and Match Promo

• ‘2, 4, 6’ promo

– End-user Promo• Rebates• Free Replacement Lamp

• Free extended warranty

• As market shifts and competition counter offers, programs and promotions are developed to maintain sales

Public Relations

• Press Releases– Product

• geared toward new product release– Non-Product

• geared toward unique service or program

• Press Trade Event– Editors from trade publications invited for product launch

• Analyst Event– Top market analysts invited for product launch

• Trade Show Support– Analysts, editors, writers, publishers visit booth and need product and industry information and trends

Advertising

• Print Ad– Creative process– Media Selection and placement or “deck”

• On-Line Web “Banners” or “Skyscrapers”

– Creative process– Media Selection and placement or “advertising deck”

LPD 03L Online Ad Campaign Schedule

Advertising

• Print Ad– Creative process– Media Selection and placement or “deck”

• On-Line Web “Banners” or “Skyscrapers”

– Creative process– Media Selection and placement or “deck”– Do we want to Capture Data, Increase Sales or Both?– Results Tracking

Direct Marketing

• E-mail– Creative Content

– Product Sales or Newsletter

– HTML, ‘Clickable’ Text or Plain Text? (Format ‘sniffers’)

– List selection

– Cadence and Frequency

– Spam issues/Opt-in

Direct Marketing

HTMLE-MAIL

Direct Marketing

CLICKABLE TEXTE-MAIL

Direct Marketing

PLAIN TEXTE-MAIL

Direct Marketing

• E-mail– Creative Content– Product Sales or Newsletter– HTML, Pure Text or ‘Clickable’ Text? (Format ‘sniffers’)– List selection– Cadence and Frequency– Spam issues/Opt-in

• Direct Mail– Creative Content– List Selection– Cadence and Frequency

• Telemarketing– Inbound– Outbound– Scripting

Collateral Material Development

• New Product Introduction Sheet – ‘NPI’• Full Color Brochure

– Print and ‘PDF’ for on-line downloads

• Product Digital Photography• Competitive Comparisons

– Print and on-line “C.O.M.P.A.S.S.”– Bid Specs– Feature, Function, Benefit Charts “FFB”– “At-A-Glance” Charts– Other “Sales Tools”

• Collateral Fulfillment

Website Development and Maintenance

• SharpUSA.com – Our Corporate website– Upload content as new products are introduced– Daily Maintenance of current postings

• S.M.A.R.T. – Sharp Marketing And Resource Tool– Our Dealer Extranet site for all marketing and sales information

– Upload content as new products are introduced

– Daily Maintenance of current postings– Security (Account/Password/Security Level) Maintenance

• SharpRewards.com – Our on-line sales incentive website– Maintain rewards program files and incentives for each model

– Sales representatives earn $$$ for each unit sold!

Trade Shows and Events

• Show/Expo Selection Process– Choosing the right shows– Booth size and selection process

• Pre-show marketing• Preparation – “Exhibit House” Selection• Booth Duty Schedule/Press/Special Events• Giveaways• Lead Capture• Set-up/Tear-down• Post-show marketing

Marketing Results Tracking

• E-marketing software package that integrates all marketing activities into one database– Allows us to interface with the customer or prospect in the way

that they want to be communicated to via:• E-mail• Snail mail• Phone• Fax

– True CRM and “One to One” marketing!– Allows data reporting and data output to beused by other systems and divisions within Sharp

Sharp and SAP

• Sharp is a Japan based international consumer electronics company with subsidiaries world-wide.

• Sharp Electronics Corporation, USA (SEC), a subsidiary of Sharp Corporation, Japan (SC) purchases product from SC. We are in essence, a ‘customer’ of SC.

• ALL Sharp subsidiaries world-wide are integrated via SAP an ERP software system. This allows all departments within the company to use a common database effectively and efficiently for:

– Supply and demand of product and parts for manufacturing – Product Marketing– Inventory Control– Finance, Credit and Accounting– Order Processing– “E-Sales”– Shipping and Delivery (Traffic)– Internal Purchasing– Reporting

Marketing and SAP

• Sales tracking and reporting to identify marketing trends such as:– Slow moving product needs a “push” from marketing to increase sales.– Fast moving product needs to be re-ordered from the factory

• Customer (Dealer/Distributor) accounts need to be current• Product/Model codes need to be current• SAP is the back-end to our Internet Business System (IBS) on-line

ordering system• Data sharing between Sharp and on-line product information providers