Historical Product Data 1987 1988 1989 1990 Industry Sales (Units) 2M 2.1M 2.205M 2.2M Co. Mkt. Share .03 .03 .04 .03 Average Price $ 200 220 240 250 AVC$ 120 125 140 150 Gross Cont. per Unit $ (3-4) 80 95 100 100 Company Sales Volume (1x2) 60,000 63,000 88,200 66,000 Revenues $ (3x6) 12M 13.86M 21.17M 16.5M Gross Contribution $ (5x6) 4.8M 5.985M 8.820M 6.6M Overhead $ 2M 2M 3.5M 3.5M New Contribution $ (8-9) 2.8M 3.985M 5.320M 3.1M Adv. & Promotion $ 800,000 1M 1M .9M Sales Force & Distribution $ 700,000 1M 1.1M 1M Marketing Research $ 100,000 120,000 150,000 100,000 Net Op. Profit $ (10-11-12-13) 1.2M 1.865M 3.070M 1.1M

Zenith Case: SWOT S O W T Brand Recognition Average Sound Quality Well Trained Dealers Excellent Service Network O Growing “D” for Modular Systems 2 Major Dept. Stores Offer to Carry Allegro Major Discount Chain Offers to Carry Allegro for Higher Volume Discount W Average Sound Quality Small Advertising and Promotion Budget Poor Positioning High Priced T Discount Chain Store Sales Growth Rate is Increasing Growing “D” for Component Systems Growing “D” for Smaller High Quality Speakers

Marketing Plan Definition Types: A formal written document describing the organizations marketing effort and relevant environmental factors. Explains the actions that are necessary to achieve goals or objectives over a specified period of time. Types: Business (Snack Chips) Product Class (Potato Chips, Tortilla Chips) Brand (Lays, Ruffles) EXAMPLE: Frito Lay