Firm 4U

1. Firm 4U And the Set Top Box Industry

2. Our Mission “The mission of Firm 4U is to become a leader in the Set-Top Box industry by offering the best fusion of quality and service to our customers. We will continue to stay on top of today's and tomorrow’s rapidly moving technology, to ensure that our Customers are always receiving the best products and services available to them”. - Firm 4U About Us Strategy Analysis Goals Implementation Evaluation

3. About Us - Our products Hyperware - 55422 Metaware - 55532 • Alpha Material = 5kg • Beta Material = 5kg • Bandwidth = 4 terahertz • Warranty = 2 years • Packaging = Premium • Alpha Material = 5kg • Beta Material = 5kg • Bandwidth = 5 terahertz • Warranty = 3 years • Packaging = Premium About Us Strategy Analysis Goals Implementation Evaluation

4. About Us - Our products Hyperware - 55422 Metaware - 55532 • Price • Channel 1 = $265 • Channel 2 = $400 • Channel 3 = $380 • Price • Channel 1 = $395 • Channel 2 = $560 • Channel 3 = $520 and 510 in R2 About Us Strategy Analysis Goals Implementation Evaluation

5. What We Did • Initially chose to focus on quality customer service • Did not make too many changes at once in order to see cause and affect of decisions made • Experimented with Marketing Program Details • Tried to increase market share • Expanded into new channels • Tried to reduce our costs • Ordered regional summary analysis and other research studies • Increase R&D spending and Marketing spending About Us Strategy Analysis Goals Implementation Evaluation

6. What Happened • First to reconfigure our Hyperware Product in Quarter 4 • Unfilled orders • Low forecasting accuracy • Cost/call  worst in industry • General costs too high • Some reports not useful About Us Strategy Analysis Goals Implementation Evaluation

7. What Happened • High perceived PQ • Average SQ • Average AV perception • due to unfilled orders • Majority of revenue comes from Hyperware • High sales volume Hyperware - 55422 Metaware - 55532 • Low perceived product quality • Average to low service quality • Low availability perception About Us Strategy Analysis Goals Implementation Evaluation

8. SWOT Analysis - Metaware About Us Strategy Analysis Goals Implementation Evaluation

9. Company Goals – Next 4 Quarters • Forecasting Accuracy to 90% • Consistent 100% Fill Rate • Return on Assets 7% • Return from marketing spending • Keep at least 20% market share • Net income to revenue to 7% • Replacement part costs 10% • Contribution of revenue for Metaware 10% About Us Strategy Analysis Goals Implementation Evaluation

10. Marketing Spending $25,000 increase About Us Strategy Analysis Goals Implementation Evaluation

11. General Marketing • Improve product quality by reconfiguring and increasing research and development spending • Implement channel specific marketing programs • Keep positioning consistent across channels • Improve return on marketing and service expenditures • Order conjoint analysis to determine consumer preferences About Us Strategy Analysis Goals Implementation Evaluation

12. Channel Specific Marketing Program • Retail • Increase price as part of skimming strategy, therefore changing positioning to more for more with an emphasis on product quality • Use vendor allowance and customer training to facilitate a push strategy About Us Strategy Analysis Goals Implementation Evaluation

13. Channel Specific Marketing Program • Direct • Focus on product quality and availability • Position as more for more • Focus on customer training to improve satisfaction and decrease call centre demand About Us Strategy Analysis Goals Implementation Evaluation

14. Channel Specific Marketing Program • Major Accounts • Currently inactive • Channel is operating with additional capacity and represents a growth opportunity for our firm • Product quality is very important to this channel • Trade shows and sales force training will be used to improve awareness • Sales force training works on building corporate relationships and loyalty About Us Strategy Analysis Goals Implementation Evaluation

15. Services • Decrease our outsourced service level from enhanced to standard About Us Strategy Analysis Goals Implementation Evaluation

16. About Us Strategy Analysis Goals Implementation Evaluation

18. Concerns About Us Strategy Analysis Goals Implementation Evaluation

19. Quarter 11 • Follow with our changes made in quarter 10 • No changes to marketing positioning, program or allocations • Order conjoint analysis to prepare for reconfiguration in quarter 12 • Report for region 3, channel 3, product 2 About Us Strategy Analysis Goals Implementation Evaluation

20. Quarter 12 • Reconfiguration: • Change M55532 to M55723 • Might change alpha and beta levels depending on the results of the conjoint analysis • Change prices • Increase by about $10 in all channels • Change programs, positioning to emphasize higher quality perceptions About Us Strategy Analysis Goals Implementation Evaluation

21. Quarter 13 • Moving in to channel 3 • Adjust marketing program details to the new channel • Reconfiguration and entering new channel: • Help with increasing metaware’s contribution to revenue About Us Strategy Analysis Goals Implementation Evaluation

22. Quarter 14 • Focus on letting all of our changes settle • Keeping consistency • Cut-down any unwanted costs: • Research reports • Help with increasing net income to revenue percentages • Also focus on production • Taking care of future unfilled orders About Us Strategy Analysis Goals Implementation Evaluation

23. Control Phase • Looking at KPI charts • Net income/revenue percentages • Change in market share • Monitor results by looking at the dashboards provided • Net income • Volume sold • Try to keep marketing program details consistent, by not changing them so drastically from quarter to quarter About Us Strategy Analysis Goals Implementation Evaluation

24. Any Questions? About Us Strategy Analysis Goals Implementation Evaluation