Team Riskless Kelsey Kitchen, Kara Schulman,

Kaiqi Zhang, Simon Webb

Strategy after Management Meeting 1

Target each growing segment

with a differentiated

product

Projected product features with

regression-based charts tool

Heavy spending on advertising and

better allocation commercial team

Focus on getting products right in

Sonite market before allocating resources here

Delayed entry and used semantic scale tools to

target only Followers

Took out necessary loans for first R&D and

continuously improved REVOLT

Sonite market:

Vodite market:

2

Situation: “which market is most poorly served?”

RONDO

• Targeting Savers

• Low price leader

ROCK

• Targeting High Earners

• Market share leader

ROLL

• Targeting Shoppers

• Emphasis on price and convenience

3

Forecast: High Earners > Professionals

4

Improvement of Commercial Team

5

ROCK ROLL RONDO

Production Planning 220,000 100,000 190,000

Price $470 $300 $215

Advertising Media $4,000 $4,000 $5,000

Advertising Research $500 $1,000 $100

Segmentation Strategy 80% High Earners, 20% Professionals

100% Shoppers

100% Savers

Communication Objectives Performance 1 Convenience 9

Price 3.2 Design 5.1

Price 2.1 Design 3.9

Commercial Team Size ROCK ROLL RONDO

Specialty 25 10 13

Mass 10 15 35

Online 11 10 10

Period 5 Decisions

6

7

Period 5 Results

ROCK

• High Earners

• 94.18%

ROLL

• Shoppers

• 66.67%

RONDO

• Savers

• 86.29%

8

Period 5 Conversion Rates

Features

9

Design

10

Battery

11

Display

12

Processing Power

13

ROCK ROLL RONDO

Production Planning 330,000 280,000 380,000

Price $470 $300 $215

Advertising Media $3,000 $3,500 $3,500

Advertising Research $100 $100 $100

Segmentation Strategy 100% High Earners

100% Shoppers 100% Savers

Communication Objectives (importance of characteristics)

Price 5.4 PPower 4.2

Price 3.1 PPower 4.4

Price 2 PPower 2.4

Commercial Team Size ROCK ROLL RONDO

Specialty 25 20 13

Mass 10 25 35

Online 11 10 10

14

Period 6 Decisions

Vodite R&D

• Utilized the product development tool based on semantic scales

• Estimated using regression-based semantic charts to project ideal values 2 periods in advance

15

Resolution Energy Carbon Footprint

Connectivity Apps Price

65 60 15 6 48 $691

16

Period 6 Results

ROCK

• High Earners

• 91.9%

ROLL

• Shoppers

• 44.5%

RONDO

• Savers

• 28.3%

17

Period 6 Conversion Rates

Features

18

Design

19

Battery

20

Display

21

Processing Power

22

ROCK ROLL RONDO REVOLT

Production Planning 315,000 330,000 0 55,000

Price $470 $300 $215 $400

Advertising Media $3,500 $3,500 $3,500 $3,500

Advertising Research $100 $100 $100 $100

Segmentation Strategy 100% High Earners

100% Shoppers

100% Savers 100% Followers

Communication Objectives

Price 5.4 PPower 4.1

Price 3 PPower 4.7

Economy 13 Convenience (3)

Price 4.4 Connectivity 3.3

Commercial Team Size ROCK ROLL RONDO REVOLT

Specialty 25 20 15 20

Mass 10 25 35 25

Online 11 10 10 10

23

Period 7 Decisions

24

Period 7 Results

ROCK

• High Earners

• 89.63%

ROLL

• Shoppers

• 44.77%

RONDO

• Savers

• 18.54%

REVOLT

• Followers

• 91%

25

Period 7 Conversion Rates

SONITE Semantic Scales Period 7

Features

27

Design

28

Battery

29

Display

30

Processing Power

31

VODITE Semantic Scales Period 7

Resolution

33

Energy

34

Carbon Footprint

35

Apps

36

Price

37

ROCK ROLL RONDO REVOLT

Production Planning 330,000 350,000 300,000 140,000

Price $470 $280 $205 $400

Advertising Media $3,100 $3,200 $3,500 $3,200

Advertising Research $500 $500 $500 $500

Segmentation Strategy 100% High Earners

100% Shoppers

100% Savers 100% Followers

Communication Objectives

Price 5.4 PPower 3.9

Price 2.9 PPower 4.8

Price 2 PPower 2.7

Price 3.8 Connectivity 2.6

Commercial Team Size ROCK ROLL RONDO REVOLT

Specialty 25 20 15 20

Mass 10 25 35 27

Online 11 10 10 12

38

Period 8 Decisions

Period 8 Results

39

ROCK

• High Earners

• 92.7%

ROLL

• Shoppers

• 45.4%

RONDO

• Savers

• 55.0%

REVOLT

• Followers

• 77.28%

40

Period 8 Conversion Rates

SONITE Semantic Scales Period 8

Features

42

Design

43

Battery

44

Display

45

Power

46

VODITE Semantic Scales Period 8

Resolution

48

Energy Efficiency

49

Carbon Footprint

50

Apps

51

Price

52

ROCK ROLL RONDO REVOLT

Production Planning 380,000 425,000 450,000 340,000

Price $452 $269 $210 $412

Advertising Media $4,100 $4,100 $4,150 $4,500

Advertising Research $600 $600 $600 $600

Segmentation Strategy 100% High Earners

100% Shoppers

100% Savers 100% Followers

Communication Objectives

Price 5.3 PPower 3.8

Price 2.8 PPower 4.8

Price 2 PPower 2.9

Price 4.4 Connectivity 3.4

Commercial Team Size ROCK ROLL RONDO REVOLT

Specialty 25 20 15 20

Mass 10 28 40 30

Online 11 10 10 15

53

Period 9 Decisions

Period 9 Results

54

Period 9 Results

55

What we might have done differently

• Better estimates of production

– Each brand was estimated +/- 20% and compared to competitors

• Opportunity to have another Vodite brand

– Relied less on the tools for physical characteristics projections

56

Industry Development

Targeted only growing

consumer segments

Strategic with our budget and loans compared to other teams who ran out of

money early

57

Tools and Techniques

• Regression-based tools and charts

• R&D projections and Marketing Mix Perceptual Objectives

Semantic Scales

• Estimate Advertising

• Create competitive commercial team

Industry Benchmarking

• Calculate conversion rates for each target segment

Consumer Surveys

58

Initial objectives for increasing wealth for our shareholders

1) Providing superior value to our customers by creating brands to target their ideal values, in turn increasing Riskless’ revenue growth

2) Creating future R&D projects that will provide optimal returns on the investments of our stakeholders

3) Constantly representing our brand image by remaining ahead of the competition in each consumer segment

59

Successfully provided value to our shareholders

60

Team Riskless’ Overall Strategy

1) Accurately updated brands through R&D

2) Highest possible Advertising spending each period

3) Increased commercial team when necessary to maximize unit sales

4) Purchased market research to benchmark against competitors

5) Strategically took out loans in order to produce the best products for consumers

61

Questions?

62 Team Riskless: Simon Webb, Kaiqi Zhang, Kara Schulman, Kelsey Kitchen

Appendix A: Forecast

63

64

Appendix B: Period 5 Conversion Rates

Appendix C: Period 6 Conversion Rates

65

Appendix D: Period 7 Conversion Rates

66

Appendix E: Period 8 Conversion Rates

67