1. GenX Corp Team 3 Tiffany BlouinMarketing Research Hermann GniniaMarketing Raman NagarajanPresident & Finance Derrick WashingtonSales A Next Generation Technology Company

2. Agenda Executive Summary Year 2 Financial & Market Performance Year 2 Plan & Assessment – Marketing Plan – Assessment of Actual Current Situation & Market Future Strategy – Product Strategy – Marketing & Sales Strategy Lessons Learned

3. Executive Summary Current Performance Summary – Strong cumulative net profit of $56MM at the end of Year2 – Financial objectives of $5MM quarterly operating profit and cumulative net profit of $50MM have been accomplished – Q8 Market share improved to 45% against the target of 60%, though GenX outperformed market growth by 541% Actual Impact of Marketing Plan – Increase in Ad spending and sales force resulted in increase in market share from 30% to 41% in year2 – Diverted focus to Cost cutter segment from Workhorse, as competition increased in the latter – Gained market leadership in Mercedes segment Future Growth – Focus continuously on R&D and product design to meet the Customers’ needs and uses – Focus on Ad design, increase Ad spending, improve sales force effectiveness and reduce sales force to consolidate market share – Introduce multiple brands within each segment to capitalize and consolidate.

4. Year 2 Financial & Market Review Financial Performance – Revenues went up by 1,819% from $12MM to $225MM – Operating Profit increased by 2,827% from $3MM to $75MM, with a leverage of 1.6 – Ended the year at $40MM of Operating profit and $56MM of Cumulative Net Profit – Return on Investment was at 905% Market Performance – Total market size stood at 172,400 units – GenX’s market share was at 41% based on Year2 total sales. Q8 market share was 45% – Nearest competitor is TurboComp with 21% market share – GenX grew above the market at 1,892% while the market was at 1,351% – Market leader in 4 out of 5 segments. – Americas and Asia returned $26MM each of operating profit and Europe returned $23MM – C-Mobile in Traveler segment returned $28MM of operating profit, C-Ultimate in Mercedes returned $27MM, C-Economy in Cost cutter $18MM, C-Innova in Innovator $15MM and C-EZ in workhorse $6MM – Most per unit profitable brand was C-Ultimate at $1,693 – Most number of units sold was C-Economy at 18,841 Click hear to view backup

5. YEAR 2 MARKETING PLAN & ASSESSMENT OF ACTUAL

6. Objectives for Year2 Marketing Objectives – Increase our total market share to 60% – Achieve 60% market share among the Mercedes segment with the help of new brand “C-Ultimate.” (4,000 units per year) – Improve the performance of our C-EZ Power brand to gain at least 50% of the market share of the Workhorse market segment (6,000 units per year) – Achieve 60% market share in the segments – Innovator and Traveler – Accomplish or maintain Brand and Ad judgment score of 80+ – Increase sales per person to 130+ and channelize financial resources from Sales personnel to more Ad Copy. Financial Objectives – Achieve Operating Profit of $5,100,000 per quarter – Achieve Net Profit for Division of $50,000,000

7. Segmentation/Positioning Segmentation Segments: Mercedes and workhorse Regions-Mercedes: New York, Tokyo, Berlin, Los Angeles, Toronto, London and Singapore. Regions-workhorse: All regions Positioning – Primary Mercedes Segment: C-Ultimate Very high capacity hard drive High speed internet and network card to connect multiple computers in the office Positioning – Secondary Workhorse Segment: C-EZ Easy to use desktop computers with high capacity hard drive and DVD read/write installed Pre-installed windows professionals with high security protection to protect files from hackers. Click hear to view backup

8. Inv Plan & Marketing Mix Inv Plan $2.9 Million in Ultra High performance processor $ 2.1 Million in High speed network/Internet connection Open sales offices in the remaining cities (6) and make them operational in Q6 Marketing Mix - Primary Mercedes Segment: C-Ultimate Invest in R&D Upgrade technology to beat competition Expand operations in the remaining cities in Q6 Become technology leader Marketing Mix - Secondary Workhorse Segment: C-EZ Power New Available in all existing markets Incorporate $ rebate to manage competition Ad copies will be placed in Regional and local media adequately to promote sales Click hear to view backup

9. Assessment of Actual Actions taken Vs Yr 2 marketing plan Most brands were redesigned every quarter based on performance. Brand design spend increased by 129% from $420K to $960K All R&D opportunities leveraged by Q8 with aggressive next quarter availability. $20MM was spent on R&D in year 2 Increased Ad spending by 4,780%. Number of local ads increased by 1,688% over the prior year and regional ads by 292% in Q8 from Q5. Increased sales force expenses by 886%. Year2 spend was $12.2MM and Year 1 was at $1.2MM Implemented Sales force training programs to promote sales and effectiveness What was different from the plan and Why? Focused on Cost cutter segment as we struggled to improve our market size in workhorse segment significantly. Significant Events that affected the market or GenX R&D opportunities changed the landscape of customers’ needs and requirements and market place Better ad design of competitors forced GenX to improve sales and local ad spending to improve sales. R&D investments increased cost of goods sold, but brought in significant sales growth and increased profitability as volume increased Click hear to view backup

10. Current Situation & Market Opportunities – Market leadership by extensive R&D – Workhorse & Innovator market improvement – New brand in the Innovator segment Threats – Competition emerging suddenly in any segment – Market share slid in Mercedes and Innovator segments in Q8 Strengths – $63MM available for new investments – 45% overall market share – All sales offices are operational – $11MM already spent on R&D, giving new technology advantage Weaknesses – High unpredictability in competition’s behavior – Unable to gain market leadership in Workhorse for 5 quarters Click hear to view backup

11. FUTURE STRATEGY

12. Product Strategy Design Strategy – Innovate with the help of R&D to consolidate positions in Premium segments – Introduce brand variants within each segment to provide different options – Add additional features to products to meet the requirements and uses – Quarterly meeting with managers and sale forces to discuss about possible improvement of products based on contact with customers daily – Plan to introduce a smaller version of our brands like notebook or tablet style Pricing Strategy – Keep prices competitive, despite R&D and adding additional features – Continue to leverage rebates to weather seasonal factors and competition Market Research Strategy – Perform 1 survey and questionnaires every 6 months to see how the customers value our products compare to the competitors

13. Marketing & Sales Strategy Marketing Strategy – Focus on Ad design to obtain “very good” rating from consumer union – Focus on key markets and segments to prioritize resources Sales Strategy – Improve sales force effectiveness by focusing on training – Reduce sales force in the long run and increase ad spending – Increase Units Sold per sales person to 230

14. Lessons Learned Brand Design – Focused on brand design continuously to improve our brand acceptability. Brand Quality was the foundation. – Knowing what the customers want is key to product design. Market Research is key to product quality. Ad Design & Inserts – Focused on Ad design continuously to improve our Ad acceptability. Good Ad design reaches target audience. – Increased the Ad spending quickly to increase sales. Market visibility was key to success. Sales Force – Increased sales force and number of sales offices quickly to increase sales volume. Availability and delivery of products is key to support marketing plan Competition – Foreseeing competition and how it would react helped a lot in increasing our sales revenue. Examples include increase in sales force and Ad spending. Think how competition would react to our strategy and their existing status.

15. BACKUP

16. BACKUP – FINANCIAL & MARKET PERFORMANCE Click to go to Yr2 Performance Slide Click to go to Yr2 Performance Slide

17. Financial Performance-Yearly Click to go to Yr2 Performance Slide Click to go to Yr2 Performance Slide

18. Financial Performance-Quarterly Click to go to Yr2 Performance Slide Click to go to Yr2 Performance Slide

19. Financial Performance-ROI

20. Market Performance-YR2 vs YR1 Click to go to Yr2 Performance Slide Click to go to Yr2 Performance Slide Year2 Vs Year1 Market PerformanceYear2 Market Share Year 2 Market Leadership

21. Market Performance - Region Click to go to Yr2 Performance Slide Click to go to Yr2 Performance Slide Year2 Total Performance by Region

22. Market Performance-Brand Click to go to Yr2 Performance Slide Click to go to Yr2 Performance Slide Year2 Total Performance by Brand

23. BACKUP – MARKETING PLAN

24. Segmentation / Targeting Primary Target – The Mercedes segment – Cities that we will target are New York, Tokyo, Berlin, Los Angeles, Toronto, London and Singapore. – The brand that we will launch for that segment is C- Ultimate Secondary Target – Need to improve the Workhorse segment with our brand the C-EZ – All the regions will be targeted Click to go to Yr2 Segmentation Slide Click to go to Yr2 Segmentation Slide

25. Differentiation/Positioning Points of Differentiation for Primary Target – Very high capacity hard drive – Very High performance which perform tasks very fast – High speed internet and network card to connect multiple computers in the office or on the road Positioning Statement for Primary Target – For Mercedes segment Who are dissatisfied with the product of cutting Edge Technologies. Our product the C-Ultimate the Advanced system in the market That provides very high capacity hard drive with high speed network which allows full control and access to the manufacturing process Unlike the Razor 200 from Cutting Edge Technologies which gives standard network/internet connection and only high capacity hard drive We have assembled (key “whole product” features for your specific application—i.e., major features) Mercedes Segment: C-Ultimate Click to go to Yr2 Segmentation Slide Click to go to Yr2 Segmentation Slide

26. Differentiation/Positioning Points of Differentiation for Secondary Target – Easy to use desktop computers with high capacity hard drive and DVD read/write installed – Pre-installed windows professionals with high security protection to protect files from hikers. Positioning Statement for Secondary Target – For Workhorse segment Who are dissatisfied with Sharp 200 brand from Cutting Edge Technologies Our product is the best desktop computer on the market with high screen monitor. That provides windows professional with high security protection and high capacity hard drive to save large data Unlike Sharp 200 from Cutting Edge Technologies We have assembled very high capacity hard drive, high security protection for documents and data, DVD read/write Workhorse Segment: C-EZ Power New Click to go to Yr2 Segmentation Slide Click to go to Yr2 Segmentation Slide

27. How We Would Invest $5 Million $2.9 Million in Ultra High performance processor – Innovator and Mercedes segments will reap the benefits of this investment – Targeted to be operational by Q6 $ 2.1 Million in High speed network/Internet connection – All the brands will reap the benefits of this investment – Targeted to be operational by Q6 Open sales offices in the remaining cities (6) and make them operational in Q6 – Increase volume by operating in all geographic markets and in 4 segments other than cost cutter Click to go to Yr2 Investment Slide Click to go to Yr2 Investment Slide

28. Marketing Mix for Primary Target Product Strategy – Deliver the premium product using the best available technology – Invest in R&D to upgrade technology to beat competition and become technology leader Pricing Strategy – Pricing should be lower of 150% of the cost of good sold and average of market price customers willing to pay – Incorporate $ rebate to manage competition Place / Distribution Strategy – In Q5, this product will be available in 6 cities that are operational, as we have market leadership in this segment – Expand the operations to all the remaining cities in Q6 Promotion Strategy – Ad Design has been considered based on the user requirements and use pattern – Ad copies will be placed in Regional and local media adequately to promote sales Mercedes Segment: C-Ultimate Click to go to Yr2 Investment Slide Click to go to Yr2 Investment Slide

29. Marketing Mix for Secondary Target Product Strategy – Deliver the product based on the user requirements and use pattern – Consider cost as a factor in determining brand Pricing Strategy – Pricing should be lower of 150% of the cost of good sold and average of market price customers willing to pay – Incorporate $ rebate to manage competition – Provide additional rebates in Q5 to ensure avoidance of loss of volume due to seasonal factor Place / Distribution Strategy – This product is already available in all the existing markets – All the new sales offices will sell this product as well Promotion Strategy – Ad Design has been considered based on the user requirements and use pattern – Ad copies will be placed in Regional and local media adequately to promote sales Workhorse Segment: C-EZ Power New Click to go to Yr2 Investment Slide Click to go to Yr2 Investment Slide

30. BACKUP – ASSESSMENT OF ACTUAL

31. Actions Taken Click to go to Assessment Slide Click to go to Assessment Slide

32. Actions Taken - Ad Inserts Number of Ad Inserts Click to go to Assessment Slide Click to go to Assessment Slide

33. Brand Design Click to go to Assessment Slide Click to go to Assessment Slide

34. Ad Judgment No major competition in Cost cutter, thus GenX became the market leader with 62% market share Innovator’s Ad judgment of GenX went down from 80 to 66, thus sales went down as well Severe competition in workhorse. GenX finally got high score after dipping to low scores. Click to go to Assessment Slide Click to go to Assessment Slide

35. R&D Impact on Profitability All the three brands that existed in Q8 and Q45 had “reduced per unit profitability” due to R&D. But overall profit increased due to increased sales volume Click to go to Assessment Slide Click to go to Assessment Slide

36. BACKUP – CURRENT SITUATION & MARKET

37. Strengths Click to go to Yr2 SWOT slide Click to go to Yr2 SWOT slide