Business Plan 1

TABLE of !
ontents

venLure CaplLal lundlng 8equesL ................................ 3
LxecuLlve Summary ......................................... 4
8ackground Summary of asL SLraLegy ............................ 3
roposed 8uslness lan ...................................... 17
SlLuaLlon Analysls
SusLalnable CompeLlLlve AdvanLage
MarkeLlng SLraLegy
CLher SLraLegles
lmplemenLaLlon and ConLrol
Appendlces............................................ 31
Appendlx A: SupporLlng Analysls and uocumenLaLlon
Appendlx 8: MarkeLplace 1acLlcal lan
Appendlx C: MarkeLplace ro-lorma llnanclal SLaLemenLs

"
Aprll 1, 2014

23 L earson SL.
Chlcago, lL 60611

uear ur. !oan hllllps,
Cn behalf of 1echmaLe, l am dellghLed Lo exLend you Lhe opporLunlLy Lo fosLer Lhe
followlng buslness plan and Lo become a parL of a proflLable venLure. 1echmaLe ls a
relaLlvely new organlzaLlon ln Lhe lnLernaLlonal mlcrocompuLer buslness lndusLry. AfLer
Lhe foundlng of 1echmaLe Lwo years ago, Lhe buslness has been slgnlflcanLly successful
wlLh lLs lapLop and deskLop producLs. 1he organlzaLlon prldes lLself on lLs quallLy, hlgh-
Lech producLs LhaL promoLe lnnovaLlve feaLures caLered Lo lLs cusLomers' needs.
CurrenLly, 1echmaLe's LargeL markeL ls prlmarlly made up of Lhe Lraveler, cosLcuLLer, and
workhorse demographlcs. Ceographlcally, Lhe buslness has focused on larger
geographlc markeLs such as Los Angeles, Chlcago, Mexlco ClLy, arls, London, and
Shanghal.
ln an efforL Lo expand Lhe buslness and Lo dlfferenLlaLe 1echmaLe from lLs compeLlLors
by propelllng Lechnologlcal advancemenLs and promoLlng producL efflcacy, Lhe company
ls pursulng exLernal flnanclal venLures.
1echmaLe lnLends Lo separaLe lLself from lLs compeLlLors by expandlng Lo new
geographlc markeLs and launchlng a new producL. MarkeL research has lndlcaLed LhaL
Lhere ls an opporLunlLy ln Lhe LaLln Amerlcan markeL LhaL has yeL Lo be Louched by
compeLlLors. 1hus, lL ls essenLlal Lo Lake advanLage of Lhls area of growLh and caplLallze
on Lhls opporLunlLy ln order Lo remaln a global leader ln Lhe lndusLry. ln addlLlon Lo
geographlcal markeL expanslon, markeL research has lndlcaLed LhaL Lhere ls a hlgh level
of saLlsfacLlon among currenL producLs. lL ls 1echmaLe's goal Lo conLlnue Lo fulflll
cusLomers' needs by lnvesLlng ln 8esearch and uevelopmenL lnlLlaLlves and by
ldenLlfylng any opporLunlLles LhaL wlll proacLlvely anLlclpaLe areas of growLh.
We have provlded a deLalled buslness plan for furLher lnformaLlon. l enLhuslasLlcally
look forward Lo furLherlng Lhls buslness venLure. lf you are lnLeresLed ln conLlnulng Lo
dlscuss Lhls opporLunlLy, l can be reached by phone aL 248-736-6133 or vla e-mall aL
danlellevlne22[gmall.com. 1hank you very much for your Llme and conslderaLlon.
Slncerely,

uanlel Levlne

#
EXE!UTI"E SUMMARY
AL 1echmaLe, our goal ls Lo provlde Lhe besL posslble personal compuLers ln Lhe markeL
LhaL allgn Lo Lhe wanLs and needs of our cusLomers. 8y lnvesLlng ln quallLy markeLlng
research, our goal ls Lo saLlsfy our cusLomers compleLely, offer compeLlLlve prlclng,
creaLe powerful producLs, and dellver excellenL cusLomer servlce LhaL ls Lop noLch.

1he followlng pages wlll deLall our buslness plan and glve you a comprehenslve ouLllne
of 1echmaLe's pasL and fuLure sLraLegles, currenL slLuaLlon analysls, susLalnable
compeLlLlve advanLage, fuLure markeLlng sLraLegles, flnance and producLlon sLraLegles,
sales sLraLegles, and how we plan Lo uLlllze Lhese sLraLegles Lo domlnaLe Lhe lndusLry.

1he asL SLraLegles secLlon wlll provlde an overvlew of how 1echmaLe has emerged as
Lhe Lop compeLlLor ln Lhe lndusLry wlLh a LoLal markeL share of 33, a cosLcuLLer markeL
share of 83, and a Lraveler markeL share of 33.

nexL ln Lhe SlLuaLlon Analysls, you wlll flnd ouL abouL our cusLomer analysls, compeLlLor
analysls, lndusLry slze, envlronmenLal analysls, and an lnLernal analysls of 1echmaLe.

We wlll Lhen Lalk abouL 1echmaLe's SLraLeglc CompeLlLlve AdvanLage over our
compeLlLors ln Lhe lndusLry:
- Where we compeLe: CosLcuLLer, 1raveler, and Workhorse segmenLs
- AgalnsL whom we compeLe: resLlge Worldwlde, roLege, and mlcrox
- 1echmaLe's value roposlLlon
- 1echmaLe's key AsseLs and CompeLencles

lrom Lhere we wlll lnLroduce you Lo Lhe MarkeLlng SLraLegy LhaL Lhe LxecuLlve
Leadershlp 1eam has developed based on our SlLuaLlon Analysls. ln Lhls secLlon, Lhe
followlng sLraLegles wlll be dlscussed:
- roducL- ueskmaLe and Lhe LxcurslonlsL
- rlce- overall prlce peneLraLlon sLraLegy
- lace- lnLenslve sales offlce expanslon
- romoLlon-Aggresslve pull promoLlonal sLraLegy

lollowlng our markeLlng sLraLegy, we wlll go lnLo deLall on our producLlon plans along
wlLh how we lnLend Lo flnance Lhese operaLlons. LasLly, we wlll [usLlfy how we plan Lo
lmplemenL and conLrol our sLraLegles Lhrough our buslness model and oLher lnlLlaLlves.

1echmaLe wlll conLlnue Lo provlde value Lo our cusLomers and shareholders by shaplng
Lhe lndusLry and provldlng excepLlonal servlce worldwlde LhaL cusLomers can rely on.

$

BA!KGROUND SUMMARY OF
PAST STRATEGY

%
!"#$%&& (%)*+$,-./ 0-11%$2

1echnologlcal lnnovaLlon lmparLed by cusLomer saLlsfacLlon ls lndlcaLlve of 1echmaLe's
success ln almlng Lo revoluLlonlze Lhe lnLernaLlonal mlcrocompuLer lndusLry. SLraLeglc
brand poslLlonlng lnLendlng Lo sLlmulaLe cusLomer awareness and engagemenL has
propelled 1echmaLe's ablllLy Lo enhance servlce producLlvlLy and producL proflLably. 1he
buslnesses' LargeL markeL ln Lhe flrsL four quarLers was prlmarlly focused on Lhe
Lraveler, cosLcuLLer, and workhorse demographlcs. 1he organlzaLlon almed Lo acqulre
markeL share mosLly ln smaller, hlgh margln segmenLs. 1hus, focused on larger
geographlc markeLs such as Los Angeles, Chlcago, Mexlco ClLy, arls, London, and
Shanghal.

ln Lhe flrsL four quarLers, 1echmaLe was Lhe leader ln Lhe lndusLry and accompllshed lLs
dlsLlncLlve compeLency ln belng Lhe marker share leader, whlch lmpacLed lLs
compeLlLlve posLure ln belng Lhe leader ln all Lhlngs As a resulL, 1echmaLe has Laken Lhe
lnlLlaLlve Lo remaln lnnovaLlve and dlscover new ways Lo meeL cusLomer expecLaLlons.
1he buslness prldes lLself on lLs mlsslon and commlLmenL ln Lransformlng Lhe
mlcrocompuLer lndusLry wlLh quallLy, hlgh-Lech producLs. lL alms Lo balance lnnovaLlon
wlLh aLLalnablllLy caLered Lo cusLomers' speclflc needs. WlLh LhaL sald, Lhe followlng are
Lhe buslness declslons LhaL were made for each quarLer:

3-%$4#$ 56 7#&),1# 4, 8%$*#49&%)# : !$+%.;<# 4=# >;$1

Company name

1echMaLe was founded upon Lhe plllars of lnnovaLlon and forward Lhlnklng. ln
an efforL Lo represenL Lhe company's mlsslon, Lhe execuLlve Leam selecLed a
company name LhaL would reflecL such characLerlsLlcs.

CorporaLe 8esponslblllLles

As a Leam, execuLlve poslLlons were esLabllshed based on professlonal
experlence and background knowledge ln Lhe respecLlve areas LhaL were
needed. AfLer careful assessmenL and dlscusslon all Leam members regardlng
whlch poslLlon Lhey'd be Lhe besL flL, Lhe corporaLe Leam was esLabllshed. 1he
leadershlp Leam ls made up of Lhe followlng group members:

&

LxpecLaLlons
ln addlLlon Lo selecLlng Lhe execuLlve Leam, expecLaLlons were also esLabllshed.
1echMaLe noL only holds lLs producLs and servlce aL a hlgh sLandard, buL lL also
ensures a poslLlve work envlronmenL ln whlch employees are appreclaLlve and
respecLful of each oLher's goals. 1he followlng norms were esLabllshed Lo ensure
efflclency and maxlmum producLlvlLy:

ueclslon-Maklng rocess
- All lmporLanL declslons should be made by Lhe voLe of Lhe ma[orlLy of Lhe Leam
- Should Lhere be a Lle, Lhe area speclallsL wlll break Lhe Lle

1eam norms:
- ALLendance aL all meeLlngs ls mandaLory, unless members lnform oLhers ln
advance of a confllcL
- MeeLlngs sLarL and end on Llme
- Members come prepared for all meeLlngs (havlng compleLed all asslgnmenLs)
- CuLslders musL be approved before Lhey are allowed Lo aLLend meeLlngs.
- lf a Loplc ls golng beyond Lhe alloLLed Llme, Lhe Leam musL declde Lo elLher
Lable lL for laLer or reconslder Lhe agenda
- Lveryone has an opporLunlLy Lo parLlclpaLe ln dlscusslons
- Members use acLlve llsLenlng Lechnlques and refraln from lnLerrupLlng each
oLher
- Member mlnlmlze or absLaln from allowlng ouLslde lnLerrupLlons ln Lhe
meeLlng (e.g. vlslLs, phone calls)
- Members are open Lo glvlng and recelvlng honesL feedback Lo/from each oLher

name of LxecuLlve rlmary 8esponslblllLy Secondary 8esponslblllLy
uanlel Levlne resldenL - Cverall
Leadershlp
v of MarkeLlng 8esearch
lllana Alvarenga v of AccounLlng and
llnance
v of MarkeLlng
8osselle Sandoval v of ManufacLurlng v of Sales ManagemenL
8rlLLany 1hele v of MarkeLlng v of ManufacLurlng
Sarah SLanczak v of MarkeLlng 8esearch resldenL - Cverall
Leadershlp
uerek kappes v of Sales ManagemenL v of AccounLlng and
llnance
'
MarkeL 8esearch

ln order Lo ldenLlfy growLh opporLunlLles, Lhe execuLlve Leam purchased markeL
research for 800 respondenLs aL a cosL of $72,800 wlLh 4.39 margln of error.
1he declslon was fundamenLally based on 1echMaLe's forward Lhlnklng naLure.
1he company sLrlves Lo develop relevancy and credlblllLy ln Lhe markeL by belng
recognlzed as a LhoughL leader. ln order Lo obLaln Lhls sLaLus, markeL research
was essenLlal ln CuarLer 1 declslons as reflecLed ln flgure 1.

llgure 1

llnance
1he flrsL flnanclal declslon LhaL was made was Lhe selllng of 10,000 shares of
common sLock aL 100 per share Lo each execuLlve member as shown ln flgure 2.

llgure 2

A $927,200 deposlL lnLo a 3-monLh CerLlflcaLe of ueposlL was also conducLed.
1he lnLeresL raLe on Lhe 3-monLh CerLlflcaLe of ueposlL was a 1.30 quarLerly raLe
as reflecLed ln flgure 3.

(

llgure 3

3-%$4#$ ?6 0#4 @9 0=,9

Mlsslon SLaLemenL
1echMaLe's mlsslon ls Lo revoluLlonlze Lhe compuLer lndusLry wlLh quallLy, hlgh-
Lech producLs. 1he company alms Lo balance lnnovaLlon wlLh aLLalnablllLy ln
order Lo meeL cusLomers' speclflc needs.

ueLermlne SLraLeglc ulrecLlon
- locus on smaller, hlgh margln segmenLs
- locus on largesL geographlc markeLs, even lf Lhey are more expenslve
- 8e Lhe leader ln all Lhlngs
- 8e Lhe markeL share leader

1argeL MarkeLs
Conslderlng Lhe company's esLabllshed mlsslon, lL was essenLlal Lo ldenLlfy LargeL
markeLs LhaL would respond poslLlvely Lo Lhe brand's lmage. AfLer assesslng
markeL research, 1echMaLe deLermlned lLs LargeL markeL segmenLs. Accordlng Lo
Lhe research conducLed, 1echMaLe would mosL llkely prosper ln Lhe Lraveler,
cosLcuLLer, and workhorse markeL segmenLs. 1hus, selecLed Lhose segmenLs and
began Lo deLermlne Lhe mosL effecLlve sLraLegles.

Coals and SLraLegy
uue Lo 1echmaLe's sLraLeglc focus belng on Lhe Lraveler, cosLcuLLer, and
workhorse markeLs, Lhe buslness chose Lo focus on larger geographlc markeLs
such as Los Angeles, Chlcago, Mexlco ClLy, arls, London, and Shanghal.

)*
8rand ueslgn
lLs Lwo core producLs lnclude Lhe LxcurslonlsL and Lhe ueskMaLe. 1he
LxcurslonlsL ls a lapLop LhaL ls deslgned for Lhe Lraveler markeL segmenL. Some
feaLures conslsL of an ulLra capaclLy hard drlve, hlgh speed compuLlng power,
sLandard neLworklng, sLandard baLLery, expanslon sloLs, auLo backup,
professlonal offlce sofLware, buslness graphlcs sofLware, presenLaLlon sofLware,
daLabase sofLware, bookkeeplng sofLware, and securlLy sofLware. 1he ueskMaLe,
however, ls prlmarlly LargeLed Lowards Lhe cosLcuLLer segmenL. 1he deskLop
lncludes a mld-range compuLlng power, sLandard hard drlve, 17" sLandard
monlLor, professlonal sofLware, auLo backup, buslness graphlcs sofLware,
presenLaLlon sofLware, daLabase sofLware, bookkeeplng sofLware, and securlLy
sofLware.

Sales Cfflces
Conslderlng boLh Lhe LargeL markeLs and Lhe producLs developed, 1echMaLe
chose Lo open offlces ln Chlcago and arls. 1he cosL of openlng sales offlces ln
Lhose Lwo locaLlons was of flnanclal beneflL Lo Lhe company due lLs lower cosL.
1oLal sales offlce cosL was $330,000.

roducLlon and ManufacLurlng
1echMaLe used Lhe research purchased ln CuarLer 1 Lo help deLermlne where
producLlon should Lake place.

llgure 4

lL was lmporLanL Lo choose Lhe mosL cosL effecLlve locaLlon accordlng Lo
cusLomers' needs. roducLlon lnlLlally sLarLed belng ouLsourced from Warsaw as
shown ln flgure 4 and flgure 3.

))

llgure 3

llxed capaclLy sLarLed aL 30 unlLs per day as shown ln flgure 6.

llgure 6

llnances
ln CuarLer 2, 1echMaLe sold 10,000 more shares of common sLock aL $100.00
per share Lo each execuLlve member as shown ln flgure 7.

llgure 7

)+
ln addlLlon Lo selllng 10,000 more shares of common sLock, 1echMaLe deposlLed
$371,108 lnLo a 3-monLh cerLlflcaLe of deposlL. 1he 3-monLh cerLlflcaLe lncluded
an lnLeresL raLe of 1.30.

3-%$4#$ A6 B, 4, C#D4 8%$*#4

AdverLlslng
AfLer Lhe brands were developed, lL was lmporLanL for 1echMaLe Lo lncrease
brand awareness and cusLomer engagemenL Lhrough sLraLeglc adverLlslng
lnlLlaLlves. 1he company chose Lo develop ads for boLh brands. 1he LoLal
adverLlslng cosL was $107,930.

llgure 8

rlces and rlorlLy
ln CuarLer 3, 1echMaLe launched lLs Lwo producLs: Lhe LxcurslonlsL and Lhe
ueskMaLe. Conslderlng Lhe facL LhaL Lhe LxcurslonlsL was a hlgher end producL,
Lhe brand was poslLloned aL a hlgher cosL and value. 1he LxcurslonlsL was prlced
aL $3,000 wlLh a rebaLe of $30 and Lhe ueskMaLe was prlced aL $2,000 wlLh a
rebaLe of $100 ln boLh reglons as lL shows ln flgure 9.

llgure 9

)"
Sales eople
1echMaLe hlred a LoLal of flve salespeople ln order Lo maxlmlze efflclency. 1he
LoLal cosL for sales force expense ln CuarLer 3 was $306,478. 1wo of Lhe flve
salespeople are locaLed ln Chlcago. 1he oLher Lwo are locaLed ln arls. Cne ls a
supporL sLaff employee.

3-%$4#$ E6 0*;&&F-& G/H-D41#.4

MarkeLlng
CuarLer 1 Lhrough CuarLer 4 was slgnlflcanLly successful for boLh of 1echMaLe's
producLs. As a resulL, Lhe company dld noL modlfy any of Lhe brands. Powever,
some changes were made Lo Lhe adverLlsemenLs. ln order Lo susLaln Lhe
company's compeLlLlve advanLage, 1echMaLe's adverLlslng was alLered sllghLly as
seen ln flgure 10.

llgure 10

AdverLlslng Lxpense

ln addlLlon Lo Lhe ad modlflcaLlon, 1echMaLe also lncreased adverLlslng. 1he
LoLal adverLlslng expenses were $266, 920 ln CuarLer 4 and local medla cosLs
shown ln flgure 11.

)#

llgure 11

MarkeL 8esearch
MarkeL research ls lmperaLlve Lo a company's success. lL ls whaL dlfferenLlaLes
leadlng buslnesses. As a LhoughL leader ln Lhe lndusLry, 1echMaLe promoLes
markeL research and encourages Lhe generaLlon of lnslghLs. AcLlvaLlng lnslghLs
LhaL are ldenLlfled Lhrough markeL research ls whaL drlves 1echMaLe's success.
1hus, $100,000 was spenL on markeL research ln CuarLer 4. 8esearch was
conducLed ln nC8AM, MLA, LA1AM, Lu8CL, and AAC.

Sales Cfflces
1he fasL paced lndusLry lnfluenced 1echMaLe's declslon Lo open Lwo new sales
offlces ln CuarLer 3. A sales offlce was opened ln Mexlco ClLy and ln Shanghal.
1oLal cosL of sales offlces was $393,000.

Sales lorce
1he openlng of Lwo new sales offlces resulLed ln an lncrease ln sales sLaff. 1he
LoLal budgeL for CuarLer 4's sales force budgeL was $346,228 as seen ln flgure
12.

)$
llgure 12

ManufacLurlng
llxed capaclLy sLayed aL 30. Powever, new overhead cosL/unlL of operaLlng cosL
was 87 as shown ln flgure 13.

)%
llgure 13

)&

PROPOSED BUSINESS PLAN

)'
Si tuati on Analysi s
IJ4#$.%& G.%&2D;D

1. CusLomer Analysls
1here are flve cusLomer segmenLs ln Lhe markeL for compuLers ln whlch
1echMaLe operaLes

1he CosLcuLLer
CusLomers ln Lhls segmenL values usablllLy and slmpllclLy, as well as a
compeLlLlve prlce. 1helr prlorlLles lle ln a safe and secure compuLer LhaL
causes no hassles. CosLcuLLers are looklng Lo accompllsh Lhelr compuLlng
Lasks wlLh Lhe greaLesL ease and are noL focused on advanced programs.
uependlng on cusLomers' locaLlons,
1he followlng charL deplcLs CosLcuLLer needs and wanLs:

)(

1he lnnovaLor
CusLomers ln Lhls segmenL value ground breaklng Lechnology. 1hese
cusLomers are wllllng Lo pay a premlum for advanced capablllLles offered
by Lhelr C. CompuLlng power ls lmporLanL Lo lnnovaLors.
1he followlng charL deplcLs lnnovaLor needs and wanLs:

Mercedes
CusLomers ln Lhls segmenL are wllllng Lo pay a hlgh prlce for Lhe besL C
on Lhe markeL. CompuLlng power, addlLlonal premlum programs, and
advanced capablllLles are lmporLanL Lo Lhe Mercedes cusLomer. AL a
hlgher prlce polnL, Mercedes cusLomers expecL perfecLlon from Lhelr C.
1he followlng charL deplcLs Mercedes needs and wanLs:

1he Workhorse
CusLomers ln Lhls segmenL value a C LhaL wlll meeL Lhelr career mlnded
needs ln order Lo allow Lhem Lo be as efflclenL as posslble. 1hese
cusLomers seek ouL a balance beLween cosL and capablllLy. A relaLlvely
+*
lnexpenslve opLlon LhaL ls also hlgh performlng ls ldeal for Lhe Workhorse
segmenL.
1he followlng charL deplcLs Workhorse needs and wanLs:

1he 1raveler
orLable compuLlng ls of paramounL lmporLance Lo Lhe 1raveler segmenL.
1hese cusLomers are focused on worklng and converslng whlle on Lhe
move, so a lapLop C ls besL for Lhls segmenL.
1he followlng charL deplcLs 1raveler wanLs and needs:

CusLomer references

1he prlces cusLomers are wllllng Lo pay dlffer across noL only cusLomer
segmenLs, buL also geographlcally. lor Lhe cosLcuLLer segmenL, ldeal
prlces for cusLomers range from $1364 Lo $1867. lor lnnovaLors, prlce
range falls beLween $2692 and $3222. CusLomers LhaL fall lnLo Lhe
Mercedes segmenL are wllllng Lo pay more for hlgher powered and
+)
hlgher quallLy compuLers. 1hese cusLomers prlce range ls beLween
$3,414 and $4,184. Workhorses, Lhe largesL segmenL represenLed, are
wllllng Lo pay beLween $2,194 and $2,719. 1he lasL segmenL, 1ravelers,
are looklng for compuLers prlced beLween $2,329 and $3,033.

Cn average, cusLomers are wllllng Lo pay more ln some reglons Lhan Lhey
are ln oLhers. lor example, almosL every cusLomer segmenL has a hlgh
prlce polnL ln Los Angeles. 1hls ls ln comparlson Lo Lhe LaLln Amerlcan
markeL, where cusLomers on average seek a lower prlce polnL Lhan oLher
areas.

1he followlng charL deplcLs cusLomers' prlce polnLs ln four ma[or
markeLs, speclflcally Lhe markeLs 1echMaLe flrsL focused on:

++

2. CompeLlLor Analysls

roLege

roLege prlmarlly focuses on Lhe mercedes and lnnovaLor markeL demographlcs.
roLege's polnL of sLrengLh ls lLs markeL performance and asseL managemenL.
Meanwhlle, lLs polnL of weakness conslsLs of manufacLurlng producLlvlLy. 1he company
offers Lwo producL llnes, whlch lncludes lLs 90x and x1 models. 1he 90x has been
mosL successful beLween Lhe Lwo.

roducLs:
90x (lnnovaLor) - $3,322 wlLh a $0 8ebaLe (nC8AM)
- $2,887 wlLh a $0 8ebaLe (AAC)

x1 2.0 (1raveler) - $3,087 wlLh a $200 8ebaLe (nC8AM)
+"
- $2,976 wlLh a $200 8ebaLe (AAC)

lanL LocaLlon:
AAC, Shanghal - llxed CapaclLy: 30

Sales Cfflces:

ClLy Company 1oLal Sales
eople
SupporL 1raveler lnnovaLor olnL of
urchase ulsplay
Los
Angeles
roLege 9 1 3 4 x
Chlcago roLege 9 1 3 4 x
1okyo roLege 9 1 3 4 x
Shanghal roLege 9 1 3 4 x

SLrengLhs and Weaknesses:

"#$%&''

8oLh brands had Lhe hlgh ranklngs brand [udgmenL ranklngs wlLhln Lhelr
respecLlve LargeL markeLs.
A ma[or sLrengLh ls ln Lhelr overall markeL share poslLlon. 1helr overall markeL
share Look Lhe lead wlLh 30 of Lhe LoLal markeL. 1he markeL share for ls 32 for
Lhe lnnovaLor segmenL and 32 for Lhe 1raveler.

()*+ ,%&-.

SLrengLhs: 8rand !udgemenL and Ad !udgemenL
1he score of 78 for Lhe lnnovaLor segmenL ls Lled wlLh anoLher company aL Lhe
hlghesL ranklng.
1he Ad [udgmenL score of 63 ls Lhe second hlghesL rank ln Lhe lnnovaLor
SegmenL.
Weakness: rlce !udgmenL
1he prlce [udgmenL score of 93 wlLhln Lhe lnnovaLor SegmenL ls an lndlcaLlon
LhaL Lhelr prlces are sllghLly hlgh. 1hls ls deLermlned by Lhe score of 100 LhaL
+#
lndlcaLes when a prlce ls saLlsfacLory Lo mosL of Lhe cusLomers ln a glven markeL
segmenL.

(+/ 01* ,%&-.

SLrengLhs: 8rand !udgmenL and rlce !udgmenL
1he brand [udgmenL score of 73 wlLhln Lhe 1raveler segmenL ls Lhe Lhlrd hlghesL
ranklng, wlLh Lwo Lled ranklngs ln Lhe lead.
1he rlce !udgmenL score ls aL 100 provlng lL Lo be saLlsfacLory Lo mosL
cusLomers ln Lhe 1raveler markeL segmenL.
Weakness: Ad !udgmenL
1he Ad !udgmenL score of 61 puLs lL aL Lhe fourLh hlghesL ranklng for Lhe
1raveler segmenL. A good score ls aL leasL a 70, meanlng LhaL Lhe Ad dld noL
appeal Lo Lhe 1raveler segmenL.

8rand !udgemenL (nC8AM)
Company 8rand CosLcuLLer lnnovaLor Mercedes Workhorse 1raveler
roLege 90x 29 78 49 62 12
roLege x1 2.0 29 41 1 34 73

8rand !udgemenL (AAC)
roLege 90x 29 79 49 63 12
roLege x1 2.0 29 42 1 33 76

Ad !udgemenL (nC8AM)
Company Ad CosLcuLLer lnnovaLor Mercedes Workhorse 1raveler
roLege 90x 7 63 40 37 7
roLege x1 2.0 48 42 43 37 61

Ad !udgemenL (AAC)
Company Ad CosLcuLLer lnnovaLor Mercedes Workhorse 1raveler
roLege 90x 7 63 40 37 7
roLege x1 2.0 48 42 43 37 61
+$

rlce !udgemenL (nC8AM)
roLege 90x 37 93 100 78 87
roLege x1 2.0 66 100 100 91 100

rlce !udgemenL (AAC)
roLege 90x 61 100 100 97 93
roLege x1 2.0 63 100 100 91 99

mlcrox

mlcrox prlmarlly focuses on Lhe lnnovaLor and crosscuLLer markeL demographlcs.
mlcrox's polnL of sLrengLh ls lLs lnvesLmenL ln Lhe fuLure. Meanwhlle, lLs polnL of
weakness conslsLs of flnanclal performance, markeL performance, and wealLh. 1he
company offers Lwo producL llnes, whlch lncludes lLs sleeque and sleeque pro models.
1he sleeque has been mosL successful beLween Lhe Lwo.

roducLs:
Sleequex (1raveler) - $3,000 wlLh a $100 8ebaLe (nC8AM)
- $2,900 wlLh a $0 8ebaLe (Lu8CL)

Sleeque prox (lnnovaLor) - $3,230 wlLh a $0 8ebaLe (nC8AM)
- $3,000 wlLh a $0 8ebaLe (Lu8CL)
lanL LocaLlon:
Lu8CL, Warsaw - llxed CapaclLy: 23

Sales Cfflces:


"#$%&''
8oLh brands had Lhe hlghesL ranklngs ln 8rand !udgmenL and Ad !udgmenL ln
respecL Lo Lhelr LargeL segmenLs.
+%
1he markeL share of boLh brands makes up 24 of Lhe overall markeL share. 1he
markeL share ls 26 for Lhe 1raveler segmenL and 37 of Lhe lnnovaLor
segmenL.

2'$$34$+ ,%&-.

SLrengLhs: 8rand !udgmenL and Ad !udgmenL
8rand !udgmenL for 1raveler segmenL ls Lled wlLh anoLher brand aL flrsL place
wlLh a score of 76.
Ad !udgmenL score of 72 makes ls Lhe hlghesL ranked for 1raveler segmenL
Weakness: rlce !udgmenL
rlce !udgmenL score averages Lo a 96 for Lhe 1raveler segmenL. 1hls means LhaL
Lhelr prlces are marglnally hlgh for Lhe average consumer ln Lhe LargeL segmenL.

2'$$34$ (%5+ ,%&-.

SLrengLhs: 8rand !udgmenL and Ad !udgmenL
1he 8rand !udgmenL score had Lhe hlghesL ranklng of 78 wlLhln Lhe lnnovaLor segmenL
1he Ad !udgmenL score for Lhe lnnovaLor segmenL was Lhe hlghesL ranked aL 66.
Weakness
1he rlce !udgmenL score averaged Lo a 97 wlLhln Lhe lnnovaLor segmenL lndlcaLlng LhaL
Lhe prlces are hlgher Lhan whaL Lhe LargeL segmenL ls wllllng Lo pay.

8rand !udgemenL (nC8AM)
Mlcrox Sleequex 29 49 8 37 76
roLege Sleeque rox 29 78 49 62 12
eople
SupporL 1raveler lnnovaLor olnL of urchase
ulsplay
Los
Angeles
Mlcrox 3 1 2 2 x
Chlcago Mlcrox 3 1 2 2 x
London Mlcrox 3 1 2 2 x
1okyo Mlcrox 3 1 2 2 x
+&

8rand !udgemenL (Lu8CL)

8rand !udgemenL (AAC)

Ad !udgemenL (nC8AM)

Ad !udgemenL (Lu8CL)
Mlcrox Sleeque rox 32 66 32 63 42

Ad !udgemenL (AAC)
+'

rlce !udgemenL (nC8AM)

rlce !udgemenL (Lu8CL)

rlce !udgemenL (AAC)

resLlge Worldwlde

resLlge Worldwlde prlmarlly focuses on Lhe workhorse and Lraveler markeL
demographlcs. resLlge Worldwlde's polnL of sLrengLh ls lLs wealLh and lL's flnanclal
performance. Meanwhlle, lLs polnL of weakness conslsLs of markeLlng effecLlveness and
lLs lnvesLmenL ln fuLure. 1he company offers Lwo producL llnes, whlch lncludes lLs
llumlnada and llumlnado models. 1he llumlnado has been Lhe mosL successful beLween
Lhe Lwo. uue Lo lLs success, resLlge Worldwlde ls Lhe leader ln Lhe lndusLry.

roducLs:
llumlnada Alr (1raveler) - $2,630 wlLh a $0 8ebaLe (Lu8CL)

+(
llumlnado ro (Workhorse) - $2,700 wlLh a $100 8ebaLe (Lu8CL)

lanL LocaLlon:
Lu8CL,Warsaw - llxed CapaclLy: 23

Sales Cfflces:

eople
SupporL Workhorse 1raveler olnL of
urchase
ulsplay
arls resLlge
Worldwlde
6 1 2 3 x
London resLlge
Worldwlde
3 1 2 2 x


"#$%&''

A ma[or sLrengLh wlLh resLlge Worldwlde ls LhaL ls faces no dlrecL compeLlLlon
wlLhln Lhe Workhorse segmenL.
MarkeL share ls 38 for Lhe Workhorse segmenL and 16 wlLh Lhe 1raveler
segmenL, maklng Lhelr overall markeL share aL 20.
8oLh brands have Lhe hlghesL ranklng brands ln Lerms of Lhelr respecLlve
LargeLed segmenL.

6''478-&.& 98% ,%&-.

SLrengLhs:
8rand !udgmenL score of 76 ls ranked hlghesL ln Lhe 1raveler segmenL.
rlce !udgmenL score of 100 wlLhln Lhe 1raveler segmenL proves LhaL Lhelr LargeL
segmenL ls saLlsfled wlLh Lhe prlce.
Weakness:
Ad !udgmenL scores are relaLlvely low ln every segmenL. 1he score of 39 ls
ranked aL almosL Lhe lowesL wlLhln Lhelr 1raveler LargeL segmenL.

6'478-&.5 (%5 ,%&-.

SLrengLhs:
8rand !udgmenL score of 78 ls ranked Lhe hlghesL ln Lhe Workhorse segmenL
"*
1he Ad !udgmenL score of 70 ls also ranked Lhe hlghesL ln Lhe Workhorse segmenL.
Weakness:
rlce !udgmenL score ls ranked aL 100 ln Lhree segmenLs, buL ls aL 99 ln LargeL segmenL.
rlces should be adapLed ln order Lo earn a score of 100 for Lhelr LargeLed segmenL.

8rand !udgemenL (Lu8CL)
resLlge
Worldwlde
lllumlnada
Alr
29 49 8 37 76
resLlge
Worldwlde
lllumlnado
ro
33 62 38 78 30

Ad !udgemenL (Lu8CL)
resLlge
Worldwlde
lllumlnada
Alr
39 42 43 36 39
resLlge
Worldwlde
lllumlnado
ro
78 46 40 70 62

rlce !udgemenL (Lu8CL)
resLlge
Worldwlde
lllumlnada
Alr
68 100 100 96 100
resLlge
Worldwlde
lllumlnado
ro
70 100 100 99 100

3. lndusLry Analysls
")

MarkeL Slze
1he LoLal Lwelve monLh poLenLlal demand for Lhe global compuLer markeL ls
220,308 unlLs. 1hls ls Lhe LoLal for all flve markeL segmenLs wlLh Workhorse
leadlng Lhe pack wlLh poLenLlal demand of 38,988 unlLs. 1he cosLcuLLer group ls
ln second wlLh poLenLlal demand of 34,374 unlLs. 1he remalnlng segmenLs all fall
beLween 34,000 and 36,000.

1here were 13,348 unlLs sold beLween Lhe Lhlrd and fourLh quarLers saLlsfylng
6.03 of Lhe LoLal markeL.

Workhorse ls Lhe largesL segmenL for poLenLlal demand unlLs and revenue wlLh
$143 mllllon. 1he number ls calculaLed by Laklng Lhe average prlce wllllng Lo pay
ln each geographlcal markeL and Lhen mulLlplylng lL by Lhe LoLal demand unlLs.
Mercedes ls Lhe nexL blggesL markeL ln Lerms of revenue wlLh $128 mllllon. 1he
remalnlng segmenLs are much smaller Lhan Lhe Lwo leaders, buL sLlll slzable
markeLs.

number of unlLs Sold:
1he LoLal number of unlLs sold beLween Lhe Lhlrd and fourLh quarLers was 13,348
unlLs. 1he sales from Lhe Lhlrd and fourLh quarLer represenL only 6.03 of Lhe
LoLal demand, meanlng Lhere ls sLlll nearly 94 of Lhe markeL unsaLlsfled

CrowLh 8aLe:
1he growLh raLe beLween quarLers Lhree and four was approxlmaLely 132.87.
1he followlng growLh raLe equaLlon dlsplays Lhe changes ln sales beLween
CuarLers 3 and 4.

Quarter 4 Sales-Quarter 3 Sales 9338-4010 132.87%
Quarter 3 Sales 3,509

Product Life Cycle:
"+
The International microcomputer business is currently in the early growth stage
of the Product Life Cycle as represented by the following graph:

Cost Structure:
The cost structure for the international microcomputer business costs vary from:
advertising, sales force expense, sales office expense, marketing research,
shipping, and depreciation.
Fixed Expenses
- Advertising
- Sales Force
- Sales Office
- Market Research
Variable Expenses
- Shipping

Distribution:
The market regions available for distribution for the microcomputer industry are as
follows:
NORAM MEA LATAM EUROPE APAC
Los Angeles Abu Dhabi Santo Domingo Paris Tokyo
Chicago Accra Santiago Warsaw Mumbai
Toronto Cairo Sao Paulo Moscow Shanghai
Mexico City Johannesburg Quito London Sydney
""
K.4#$.%& G.%&2D;D

1. llnanclal erformance:

-Cross proflL of $2,402,221 afLer Lhe 4
Lh
CuarLer
-8evenues of $ 4,714,000 afLer Lhe 4
Lh
CuarLer
-CosL of good sold of $2,234,628
-Cverall neL lncome of $727,176
-Larnlngs per share ls $18
-Cash balance end of perlod ls $2,328,063

Sales - Total
Brand
Net
Demand
Lost Sales
Due
to Stock-Outs
Number
of
Units Sold
Sales
Revenue
Rebates
Cost of
Goods
Sold
Gross
Margin
Excursionist 1,040 226 814 2,442,000 20,350 1,029,591 1,329,059
DeskMate 1,450 314 1,136 2,272,000 56,800 1,205,038 1,010,162

Total 2,490 540 1,950 4,714,000 77,150 2,234,629 2,402,221

Sales - NORAM
Brand
Net
Demand
Lost Sales
Due
to Stock-Outs
Number
of
Units Sold
Sales
Revenue
Rebates
Cost of
Goods
Sold
Gross
Margin
Excursionist 568 124 444 1,332,000 11,100 561,595 759,305
DeskMate 766 166 600 1,200,000 30,000 636,464 533,536

Total 1,334 290 1,044 2,532,000 41,100 1,198,059 1,292,841

Sales - EUROPE
Brand
Net
Demand
Lost Sales
Due
to Stock-Outs
Number
of
Units Sold
Sales
Revenue
Rebates
Cost of
Goods
Sold
Gross
Margin
Excursionist 472 102 370 1,110,000 9,250 467,996 632,754
DeskMate 684 148 536 1,072,000 26,800 568,574 476,626

Total 1,156 250 906 2,182,000 36,050 1,036,570 1,109,380

"#

2. SegmenLs LargeLed:
1echMaLe LargeLed Lhe cosLcuLLer segmenL as well as Lraveler.
MarkeL shares afLer quarLer 4:
CosLcuLLer markeL share- 93
1raveler markeL share- 26
Workhorse markeL share- 13
lor Lhe remalnlng quarLers we are looklng Lo expand more lnLo Lhe Lraveler segmenL
along wlLh Lhe workhorse segmenL. We are conLenL ln Lhe cosLcuLLer segmenL because
we are Lhe only Leam golng afLer Lhls segmenL of cusLomers.

3. SLrengLhs and Weaknesses6
8rands:
Income Statement

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Gross Profit
Revenues 0 0 1,108,000 4,714,000

- Rebates 0 0 17,900 77,150

- Cost of Goods Sold 0 0 811,617 2,234,629

= Gross Profit 0 0 278,483 2,402,221

Expenses
Research and Development 0 120,000 0 0

+ Advertising 0 0 168,750 298,520

+ Sales Force Expense 0 0 306,478 546,228

+ Sales Office Expense 0 350,000 499,000 595,000

+ Marketing Research 72,800 0 100,000 100,000

+ Shipping 0 0 25,877 89,463

+ Inventory Holding Cost 0 0 0 0

+ Excess Capacity Cost 0 0 0 0

+ Depreciation 0 0 45,833 45,833

= Total Expenses 72,800 470,000 1,145,938 1,675,044

Operating Profit -72,800 -470,000 -867,455 727,176

Miscellaneous Income and Expenses
+ Licensing Income 0 0 0 0

- Licensing Fees 0 0 0 0

+ Other Income 0 0 0 0

- Other Expenses 0 0 0 0

= Earnings Before Interest and Taxes -72,800 -470,000 -867,455 727,176

+ Interest Income 13,908 5,567 0 0

- Interest Charges 0 0 0 0

= Income Before Taxes -58,892 -464,433 -867,455 727,176

- Loss Carry Forward 0 0 0 727,176

= Taxable Income 0 0 0 0

- Income Taxes 0 0 0 0

= Net Income -58,892 -464,433 -867,455 727,176

Earnings per Share -6 -23 -29 18

"$
SLrengLhs:
- PlghesL brand [udgmenL ln cosLcuLLer (72)
- 3
Lh
hlghesL brand [udgmenL ln lnnovaLor (49)
- 4
Lh
hlghesL brand [udgmenL ln workhorse (34) - room for lmprovemenL
- 3
rd
PlghesL brand [udgmenL ln Lraveler (76)- room for lmprovemenL
Weaknesses:
- Low brand [udgmenL for workhorse and lnnovaLor (less Lhan 33)
- LxLremely low brand [udgmenL for Mercedes (less Lhan 10)
Ads:
SLrengLhs:
- PlghesL ad [udgmenL ln cosLcuLLer (78)
- PlghesL ad [udgmenL ln workhorse (70)
- Second hlghesL ad [udgmenL ln Lraveler (70)
Weaknesses:
- Low ad [udgmenL ln lnnovaLor and Mercedes (less Lhan 30)
rlce [udgmenLs:
SLrengLh:
- PlghesL prlce [udgmenLs ln all caLegorles

4. 8alanced Scorecard:
Industry results for quarter: 4

Minimum Maximum Average TechMate
Total Performance 14.174 66.739 32.974 32.021
Financial Performance 22.406 54.631 31.362 25.429
Market Performance 0.223 0.474 0.361 0.474
Marketing Effectiveness 0.703 0.740 0.723 0.740
Investment in Future 2.252 3.269 2.963 3.098
Wealth 0.766 1.096 0.883 0.834
Asset Management 1.288 1.886 1.530 1.390
Manufacturing Productivity 0.889 1.000 0.972 1.000
Financial Risk 1.000 1.000 1.000 1.000
Advanced Balanced Scorecard

microX Protege Prestige Worldwide TechMate
Total Performance 14.174 66.739 18.960 32.021
Financial Performance 22.406 54.631 22.981 25.429
Market Performance 0.223 0.420 0.328 0.474
Marketing Effectiveness 0.735 0.703 0.715 0.740
Investment in Future 3.233 2.252 3.269 3.098
Wealth 0.766 1.096 0.836 0.834
Asset Management 1.555 1.886 1.288 1.390
Manufacturing Productivity 1.000 0.889 1.000 1.000
Financial Risk 1.000 1.000 1.000 1.000

3. CuallLaLlve assessmenL:
"%
We need Lo lncrease our producLlon Lo keep up wlLh our demand and reduce our sLock-
ouLs. We also need Lo keep expandlng globally lnLo dlfferenL LerrlLorles.
"&
SUSTAINABLE !OMPETITI"E AD"ANTAGE

8%$*#4 0#&#)4;,.

We are focuslng on Lwo maln segmenLs - cosLcuLLers and Lravelers.

1. 1echmaLe LargeLed Lhe 1raveler segmenL. 1he Lraveler segmenL ls a subsLanLlally
smaller segmenL wlLhln Lhe C lndusLry. 1he 1raveler seeks a producL LhaL ls porLable
and ls able Lo send and recelve emalls. 1he 1raveler ls moderaLely prlce senslLlve, buL lL
llkely Lo pay hlgher Lhan pro[ecLed as long as Lhelr needs and wanLs are adequaLely meL.
1echmaLe focused on provldlng Lhe 1raveler segmenL wlLh a porLable C LhaL fosLers
communlcaLlon. 8y provldlng Lhe segmenL wlLh whaL Lhey wanL 1echmaLe urges Lo
become Lhe lndusLry leader.

2. lnlLlally, we LargeLed cosLcuLLers because Lhe low cosL segmenL had very low barrlers
Lo enLry, so wlLh no lnlLlal research and developmenL capablllLles we were able Lo meeL
cosLcuLLers' needs and wanLs. CosLcuLLers, unllke Lravellers, are cosL senslLlve, so we
focused on offerlng value consclous producLs and made sure noL Lo oversell Lhls markeL.

1o deLermlne where Lo open sales offlces, 1echmaLe Look varlous area aspecLs lnLo
conslderaLlon.
- lndusLry roflLablllLy: 1o deLermlne Lhe proflLablllLy of each lndusLry Lhe
poLenLlal demand ls mulLlplled by Lhe prlce wlll Lo pay across all flve of Lhe
segmenLs.
- uemand: 1echmaLe analyzed Lhe clLles based on whlch have Lhe largesL
demand ln Lhe Lwelve monLh poLenLlal demand.
"'
- rlce wllllng pay: Lxamlnlng each lndusLrles' prlce wllllng Lo pay gave 1echmaLe
an lndlcaLlon as Lo how Lo prlce Lhe producLs approprlaLely. 1hls was boughL
Lhrough MarkeL 8esearch.
- CompeLlLlon: 1echmaLe evaluaLed all of Lhe dlrecL compeLlLors wlLhln Lhe same
clLles and also revlewed Lhe producLs produced by each compeLlLor.
- oLenLlal CrowLh: 1he poLenLlal growLh was deLermlned by comparlng Lhe
currenL demand Lo poLenLlal sales.

1o deLermlne 1echmaLe's poslLlon ln Lhe markeL segmenL each of Lhe followlng facLors
were Lhoroughly evaluaLed. A raLlng of flve ls consldered Lo be Lhe hlgh performance,
whlle a raLlng of one lndlcaLes poor performance.
- MarkeL Share: 1he percenLage of sales wlLhln each markeL segmenL.
- 8esearch and uevelopmenL: 1o obLaln promlnenL lnformaLlon regardlng Lhe
needs and wanLs of consumers 1echmaLe musL lnvesL ln 8esearch and
uevelopmenL.
- AdverLlslng and romoLlon: 1echmaLe modlfles adverLlsemenLs Lo Lhe relevanL
LargeL segmenL and area ln whlch lL wlll be promoLed.
- rlce !udgmenL: rlclng based off of Lhe prlce wllllng Lo pay, whlle sLlll Laklng
compeLlLlon's prlces lnLo conslderaLlon.
- 8rand !udgmenL: 1o achleve a hlgh raLlng ln brand [udgmenL, Lhe brand musL
meeL lmporLanL aLLrlbuLes LhaL Lhe LargeL segmenL deslres.

1he followlng vlsuals deplcL markeL aLLracLlveness and buslness poslLlon for each of Lhe
flve segmenLs, lncludlng Lhe Lwo we focus on:

"(

L,19#4;4,$ 0#&#)4;,.

ueskMaLe CompeLlLlve ALLrlbuLes:
Cur ueskMaLe producL ls LargeLed Lowards cosLcuLLer cusLomers. lL compeLes
malnly on Lhe followlng aLLrlbuLes:
- rlce
- Lase of use
- 8ellablllLy
- SecurlLy
- SupporL
1he ueskMaLe sees very llLLle compeLlLlon ln Lhe cosLcuLLer markeL.

#*
1he followlng comparlson deplcLs Lwo cosLcuLLer prlorlLles, prlce and Lechnlcal
supporL, and shows how 1echMaLe and each of our compeLlLors are meeLlng
Lhese needs ln Lhe cosLcuLLer segmenL.

LxcurslonlsL CompeLlLlve ALLrlbuLes:
1he LxcurslonlsL ls LargeLed Loward Lhe Lraveler segmenL. lL compeLes malnly on
Lhe followlng aLLrlbuLes:
- ConnecLlvlLy
- orLablllLy
- SupporL
- SecurlLy
- CompuLlng capablllLy
1he Lraveller segmenL ls hlghly compeLlLlve and Lhe LxcurslonlsL shares Lhe
markeL relaLlvely equally wlLh Lhree compeLlLors' producLs. 1he greaLesL
compeLlLlon ln Lhe 1raveler segmenL ls presenLed by roLege.

#)

1he followlng comparlson deplcLs Lwo Lraveler prlorlLles, compuLlng power and
Lechnlcal supporL, and shows how 1echMaLe and each of our compeLlLors are
meeLlng Lhese needs ln Lhe Lraveler segmenL.

#+
M%&-# N$,9,D;4;,.

1echmaLe ls revoluLlonlzlng Lhe mlcrocompuLer lndusLry by offerlng quallLy, hlgh-Lech
producLs. 1he company alms Lo balance lnnovaLlon wlLh aLLalnablllLy ln order Lo meeL
cusLomers' speclflc needs. 1echmaLe deslgns Lhe LxcurslonlsL and Lhe ueskmaLe, Lhe
besL personal compuLers ln Lhe world. 1he company remalns a leader ln Lhe lndusLry
and sLrlves Lo conslsLenLly lnLroduce lnnovaLlng feaLures Lo furLher Lhe advancemenL of
lLs producLs. 1hus, 1echmaLe ls commlLLed Lo anLlclpaLlng cusLomers' needs and
achlevlng Lhe hlghesL level of producL quallLy.

GDD#4D %./ L,19#4#.);#D

key AsseLs:
-PlghesL brand [udgmenL ln cosLcuLLer
-3
rd
PlghesL brand [udgmenL ln Lraveler
-PlghesL ad [udgmenL ln cosLcuLLer
-PlghesL ad [udgmenL ln workhorse
-Second hlghesL ad [udgmenL ln Lraveler
-PlghesL prlce [udgmenLs ln all caLegorles
-CusLomer Servlce/producL supporL
-LocaLed ln Lop locaLlon for cosLcuLLer/Lraveler
-Cood flnanclal performance

CompeLencles:
-Low brand [udgmenL for workhorse and lnnovaLor
-LxLremely low brand [udgmenL for Mercedes
-Low ad [udgmenL ln lnnovaLor and Mercedes

#"
MARKETING STRATEGY

N$,/-)4

1he besL way Lo make a greaL producL ls Lo llsLen Lo consumers. 1echMaLe uses hlgh
quallLy markeL research as well as research and developmenL Lo dellver producLs
Lallored Lo consumer needs and wanLs. AL 1echMaLe, cusLomer wanLs and also use
paLLerns were analyzed Lo provlde Lhe besL producLs posslble.

Cb[ecLlves:
- Pave Lhe largesL markeL share ln 1raveler and CosLcuLLer segmenLs
- 8alse brand [udgmenL Lo 90 for all producLs by C8
- 8alse quarLerly sales volume from 2,490 (C4) Lo 8,300 ln C8
SLraLegy:
- lnvesL ln research and developmenL Lo ralse quallLy of all brands
- ConLlnue Lo open sales offlces globally Lo lncrease markeL share
- Modlfy all brands Lo keep brand [udgmenL above 73 ln LargeL markeLs
1acLlcs:
8esearch and developmenL lnvesLmenLs for C3-C8 are dlsplayed below. Addlng Lhe new
feaLures Lo 1echMaLe brands wlll lncrease Lhe quallLy of Lhe producLs. 1here ls also a
plan for a llcenslng agreemenL wlLh roLege for a larger lapLop monlLor. 1he deal wlll be
made ln C3 wlLh Lhe Lechnology avallable for use ln C7. 1echMaLe wlll also lease hlgh
speed neLworklng Lo roLege, avallable ln C7 as well.

CuarLer 3 CuarLer 6 CuarLer 7 CuarLer 8
lnvesLmenL
Plgh Speed and
ro operaLlng
sysLem wlLh
ease of use
Sllm case (lapLop) and
Long-llfe baLLery
(lapLop) Cfflce ro upgrade
8ewrlLable opLlcal
drlve
AmounL
SpenL $3,116,624 $3,482,147 $2,131,927 $2,842,369

CuarLer llve:
- lnvesL ln 8&u (shown above)
- Llcenslng agreemenL (lapLop screen)

CuarLer Slx:
- lnvesL ln 8&u
- LxcurslonlsL - add hlgh speed and ease of use operaLlng sysLem
- ueskMaLe - add ro operaLlng sysLem and ease of use

CuarLer Seven:
##
- lnvesL ln 8&u
- LxcurslonlsL - add blgger screen, sllm case, and long-llfe baLLery

CuarLer LlghL:
- lnvesL ln 8&u
- LxcurslonlsL - add offlce pro
- ueskMaLe - add offlce pro

N$;)#

Cb[ecLlves:
- uevelop a repuLaLlon as a low cosL, hlgh value company
- lncrease prlce parallel Lo Lhe lmprovemenL of brands
- Pold prlce [udgmenL above 98

SLraLegy:
- ConLlnue Lo offer rebaLes on all brands
- ConLlnue Lo use a prlclng peneLraLlon sLraLegy Lo malnLaln markeL share ln
CosLcuLLer

1acLlcs:
CuarLer llve:
- LxcurslonlsL: $3000 wlLh $30 rebaLe
- ueskMaLe: $2000 wlLh $100 rebaLe

CuarLer Slx:

CuarLer Seven:

CuarLer LlghL:
- LxcurslonlsL: $3273 wlLh a $30 rebaLe
- ueskMaLe: $2130 wlLh a $100 rebaLe

N&%)#

Cb[ecLlves:
- Lead our prlmary LargeL markeLs (CosLcuLLer, 1raveler) ln sales
- 1argeL offlce locaLlons LhaL offer Lhe greaLesL consumer demand for our
prlmary LargeL segmenLs
#$
- uouble our sales people ln quarLer 6 Lo keep up wlLh demand
- Pave a flrsL mover advanLage ln Lhe newer markeLs we are enLerlng
- ConLlnue or expanslon lnLo norLh Amerlca and Lurope ln quarLer 6
- ConLlnue or expanslon lnLo Lurope and AAC ln quarLer 7
- Lxpand lnLo Lhe Mlddle LasL by quarLer 8

SLraLegy:
CurrenLly, 1echmaLe has 8 sales offlce locaLlons around Lhe globe- Chlcago, arls,
Los Angeles, London, Mexlco ClLy, Shanghal, 1oronLo and Warsaw. Cver Lhe nexL
2 quarLers, we are plannlng Lo enLer Moscow, 1okyo, !ohannesberg, and Calro. ln
addlLlon Lo Lhese locaLlons, we wlll look Lo furLher expand lnLo Lhe AAC and
MLA reglons. We are looklng Lo open beLween 2-4 sales offlce locaLlons over
Lhese Lwo quarLers, glvlng us a LoLal of 14-16 sales offlces aL Lhe end of quarLer
8.

1acLlcs:
CuarLer 6:
- Cpenlng 1oronLo and Warsaw sales offlce locaLlons
- Lxpanslon CosLs - $386,000 (SeLup/Close CosL and CuarLerly Lease CosL)

CuarLer 7:
- Cpenlng Moscow and 1oronLo sales offlce locaLlons
- Lxpanslon CosLs- $423,000 (SeLup/Close CosL and CuarLerly Lease CosL)

CuarLer 8:
- Cpenlng Calro and !ohannesberg sales offlce locaLlons
- Lxpanslon CosLs- $222,000 (SeLup/Close CosL and CuarLerly Lease CosL)

*We wlll open addlLlonal sales offlces based on fuLure quarLer resulLs

N$,1,4;,.

Cb[ecLlves:
- ConLlnue monlLorlng and evaluaLlng ad deslgns of compeLlLors
- AdverLlse uslng Lhe mosL effecLlve medlums Lo reach our prlmary cusLomers
- keep ad [udgmenL of our LxcurslonlsL and ueskmaLe conslsLenLly hlgh. MalnLaln
a score of over 70 ln our key LargeL segmenLs

SLraLegy:
1echmaLe wlll be uslng Lhe pull promoLlonal sLraLegy. A pull sLraLegy lnvolves
moLlvaLlng cusLomers Lo seek ouL your brand ln an acLlve process- "CeLLlng Lhe
cusLomer Lo come Lo you". Some examples of pull LacLlcs LhaL we are uLlllzlng
#%
lnclude adverLlslng and mass medla, and sales promoLlons and dlscounLs. 1hls
sLraLegy wlll requlre us Lo spend loLs of money on Lhls for Lhe fuLure quarLers.

1acLlcs:
- Pave reglonal adverLlsemenLs ln reglons wlLh 3 or 4 sales locaLlons
- use clear and conclse messaglng ln all promoLlons
- uLlllze polnL of purchase dlsplays for all sales locaLlons
- When purchaslng reglonal ads, place ads ln medla Lypes LhaL rank ln Lhe Lop 3
of consumer preferences
- rovlde an aggresslve commlsslon sLrucLure Lo lncrease sales force moLlvaLlon
and aLLracL Lop LalenL

#&
OTHER STRATEGIES

N$,/-)4;,.

1echMaLe has had an lncrease ln demand and sales slnce quarLer 3. 1echMaLe has
lncreased capaclLy of an addlLlonal 30 unlLs a day Lo meeL Lhe exceedlng demand Lhe
losL sLock ouLs from prevlous quarLers. 8elow ls Lhe lanL CperaLlng CapaclLy from
CuarLers 3 Lhrough 8.

Quarter 5 6 7 8
Investment in Fixed Capacity $1,100,000 $600,000 0 $600,000
Operating Capacity
(units/quarter)
3,250 6,500 8,125 9,750
Addition to Fixed Capacity
(units/day)
50 25 0 25
Production Volume 3,250 6,000 8000 8,125

M#.4-$# L%9;4%& >-./;.+

ln order Lo conLlnue Lo pursue buslness expanslon, 1echMaLe ls seeklng exLernal
fundlng. 1he company ls currenLly proposlng venLure caplLal fundlng and ls movlng
forward wlLh poLenLlal lnvesLors. lnvesLor funds would go Lowards Lhe expanslon of new
geographlcal markeLs such as, LaLln Amerlca. 1he company ls also proposlng a new
producL launch.

O#P4 >;.%.);.+

AddlLlonally, 1echMaLe wlll borrow $100,000 from Lhe bank ln C6 Lo lnvesL ln 8esearch
and uevelopmenL. 1echMaLe plans Lo lnvesL ln 8esearch and uevelopmenL on an annual
basls.

#'

IMPLEMENTATION AND !ONTROL

K19&#1#.4%4;,.6
1echmaLe Lakes prlde ln lLs' concepLuallzed plans, and lmplemenLaLlon sLraLegles. All of
our goals are Lransformed Lo reallLy Lhrough Lhe lmplemenLaLlon sLraLegles LhaL we are
dedlcaLed Lo

SLrucLure:
1echmaLe ls an organlzaLlon LhaL fosLers a decenLrallzed managemenL sLrucLure.
Cur hands off approach allows company members Lo flourlsh ln an area of
experLlse. 1hls sLrucLure works wlLh our company expecLaLlons. AlLhough Leam
members are granLed a sense of lnLerdependence, all members of Lhe company
are responslble for havlng lndlvldual parLs prepared ln a Llmely manner. All
managemenL Leam members conLrlbuLe equally Lo company efforLs, and work ln
harmony when deLermlnlng long Lerm declslons.

#(
SysLems:
1echmaLe plans and lmplemenLs company acLlons Lhrough Lhe MarkeLplace
program.

eople:
1echmaLe conslsLs of slx members LhaL work LogeLher Lo accompllsh sLraLeglc
goals. AlLhough we are all prlmarlly markeLlng ma[ors, each member has made
exLraordlnary efforLs Lo become well accommodaLed wlLhln Lhelr lndlvldual area.
Lach member has galned an experLlse ln a slngle unlL LhaL allows Lhe company Lo
provlde adequaLe declslons across all areas of buslness. Cur Leam ls well
organlzed, dedlcaLed, deLermlned, and helpful, whlch allows us Lo provlde
premlum producLs and servlces Lo our cusLomers.

CulLure:
1echmaLe esLabllshed a poslLlve culLure based upon values of dedlcaLlon,
dependablllLy, Leamwork, and perseverance.

L,.4$,&6
1echmaLe relles on Lhe followlng Lechnlques Lo measure performance:

erformance SLandard:
1echmaLe has exLernal records of all resulLs. 1hese records serve Lo gauge a
performance benchmark ln whlch we can compare all of our resulLs Lo. We are
dedlcaLed Lo recelvlng a mlnlmum score of 70 ln 8rand !udgmenL and
AdverLlsemenL !udgmenL, and a 98 ln rlce !udgmenL. 1echmaLe also sLrlves Lo
recelve Lhe ma[orlLy of markeL shares wlLhln Lhe LargeLed segmenLs.

LvaluaLlon:
1o evaluaLe Lhe effecLlveness of declslon maklng 1echmaLe analyzes Lhe balance
scorecard, [udgmenL scores, and flnanclal sLaLemenLs. MarkeL research ls
conducLed every quarLer Lo ensure LhaL we are malnLalnlng a sLaLus as a vlable
company.

1lme lrame for erformance LvaluaLlon:
All areas are assessed and Lasks are accompllshed prlor Lo our weekly meeLlngs.
1echmaLe's meeLlngs conslsL of a group revlew of Lhe prevlous quarLer, and each
member shares Lhe currenL quarLer's declslons Lo provlde an overall consensus
for Lhe quarLerly submlsslon.

CorrecLlve AcLlon:
1echmaLe closely monlLors Lhe brands and declslons wlLhln Lhe MarkeLplace
program. 1hls allows Lhe company Lo Lake lmmedlaLe correcLlve acLlons Lo any
problems LhaL may arlse.

$*
uaLa CollecLlon:
1echmaLe frequenLly updaLes research ln order Lo remaln compeLlLlve, currenL,
and lnformed ln all aspecLs of Lhe buslness and lndusLry.

$)

APPENDI!ES

$+
APPENDIX A

$"
APPENDIX B

$#
APPENDIX !

$$

$%

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