Ascension Corporation: Confidential and Proprietary Document - Ascension Corporation 2002. All Rights Reserved

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Ascension Corporation
Marketing Plan
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Confidential and Proprietary Document - Ascension Corporation 2002. All rights reserved Page 2 of 39
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Table of Contents
Introduction................................................................................................... 3
An Enduring Watch ........................................................................................................ 3
Competitive Environment............................................................................ 4
Ascension Performance and Positioning in 2002 ........................................................... 4
Competitor Assessments................................................................................................. 5
Marketing Planning...................................................................................... 7
Marketing Objectives...................................................................................................... 7
Target Markets ................................................................................................................ 9
Collective Target Market .............................................................................................. 11
Our Products ............................................................................................... 12
Trekker.......................................................................................................................... 12
Summit.......................................................................................................................... 13
Advertising Strategy ................................................................................... 15
Central Message............................................................................................................ 15
Advertising Media ........................................................................................................ 15
Television.................................................................................................................. 15
Magazine................................................................................................................... 16
Billboards.................................................................................................................. 17
Promotional Mix ........................................................................................................... 18
Sponsorships ............................................................................................................. 18
Packaging.................................................................................................................. 19
Warranty ................................................................................................................... 19
Ascension Marketing Budget ………………………………………………………... 22
Distribution.................................................................................................. 24
Overview....................................................................................................................... 24
Major Retailing Channels ............................................................................................. 26
Sporting Goods Stores .............................................................................................. 26
Department Stores..................................................................................................... 26
Pricing .......................................................................................................... 28
Pricing Objective .......................................................................................................... 28
Product – Price Relationships ....................................................................................... 28
Price Control ................................................................................................................. 30
Marketing Research ................................................................................... 31
Implementation and Control of the Marketing Plan .............................. 32
Responsible Parties ....................................................................................................... 32
Measurement of Success............................................................................................... 32
Appendices……………………………………………………………….. 32
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Introduction
An Enduring Watch
Ascension Corporation was founded by Frank Dreamer in 1992,

after the successive loss or destruction of five “sports” watches.
Since then his goal has been to supply the public with high quality
timepieces capable of following people in the most rugged of
sporting environments. Ascension has experienced rapid growth
over the past 10 years, expanding outside of the United States into a
number of foreign markets and becoming one of the five significant
watch manufacturers in the world today.
Ascension currently has two distinct product lines, Trekker and

Summit. Trekker is the relatively cheaper, higher volume product
with limited “extra” features. Summit, on the other hand puts
quality and features above all else providing the purchaser with the
most technologically advanced and durable timepiece available.
Both products embody the spirit of Frank Dreamer. As such they
are both subjected to extreme testing in many different environmental conditions to
ensure a long life of accurate time keeping for people leading adventurous lives.
The marketing philosophy of Ascension Corporation is built around our commitment to

offer our customers the highest quality, most durable timepieces at a reasonable price.
This is reflected in Ascension’s mission statement:
Ascension Corporation is committed to being the world leader in high quality,

durable, dependable, and innovative timepieces that delight our customers. Our
products embody the ideals of our founder, Frank Dreamer
A new team of managers took the reigns of Ascension in the beginning of year 2002, and
since then, the corporation’s new directing managers have set aggressive objectives for
profit and market share growth. These goals will be made possible by a number of
operational and marketing strategies, which will be discussed in detail later.
Although a new Ascension management team is in place, the mission statement,

philosophy, and commitment remain unchanged. We will continue the vision of our
predecessors through a marketing plan that focuses on our customers’ needs and furthers
our image as the most desirable products in the marketplace.
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Competitive Environment
Ascension Performance and Positioning in 2002
The year 2002 has been one of recovery for the market, with consumer purchases at near
record lows in 2001 due to the events of September 11. Ascension Corporation
experienced an overall upward trend throughout 2002 with sales improving from the first
to the latter half of the year.
Highlights of Ascension’s performance in 2002:
• Total Sales of $79,799,799

• Net Income of $2,329,128
• R&D Expenditures of $13,122,998
• ROE 8.38%
• EPS $2.33
Relative quality, average price and market share for both Trekker and Summit product
lines are depicted in figure 1.
Figure 1 – 2002 Quarter 4 Market Positioning for Trekker and Summit

108 114
112
106
Ascension 110
Av e rage Relativ e Price
Av erag e R elativ e P rice
104
108 Ascension
Firm 2
102 106
Firm 2
Firm 3 104
100
Firm 4 102 Firm 3
98
100
Firm 5 Firm 4
96 98
Common 96
Firm 5
94
Start
94 Common
92
92 Start
90 90
80 90 100 110 120 80 85 90 95 100 105 110 115 120 125
Relative Quality
Relative Quality
Market Positioning of Trekker Market Positioning of Summit
The company competes in two markets, Summit and Trekker, with four other major
watch manufacturers. Ascension’s management regularly performs competitive analyses
on these competing firms to assess their strategies and tactics.
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Figure 2 – 2002 World Watch Market Quarterly Net Incomes
2000
Ascension
1500 Firm 2
Quarterly Net Income ($ 000's)

Firm 3
1000 Firm 4
Firm 5
500
0 Total NI ($m)
Q1 Q2 Q3 Q4 Ascension 2.33
-500 Firm 2 1.28
Firm 3 3.17
Firm 4 1.68
-1000 Firm 5 2.99
-1500
-2000
Competitor Assessments
Based upon the outcomes of 2002 the following assessments have been made about our
competitors:
Calrissian (“Firm 2”) is attempting to price its economy watch below all competition. In
the economy watch market, firm 2 generates a relatively low quality product. In contrast,
Calrissian produces the highest quality premium product – the result of enormous R&D
outlays (and a significant loss) in the third quarter of 2002. Due to its extremely thin
margins on the economy product and its investment to expand their premium product
plant, it is believed that Firm 2 is unlikely to relocate either factory in the near future.
Calrissian is expected to continue a low price, low quality strategy with its economy
product while pursuing a high quality, high price strategy with the premium product.
Krom Corporation (“Firm 3) showed the highest net income in 2002. However, their
earnings have consistently been dropping throughout the year. Their actions have also
been consistent in their conservatism. Firm 3’s spending in marketing tends to be low
and has not made the dramatic moves in either marketing or R&D spending which have
been typical of the other firms in 2002. Krom has medium quality in both its product
lines, relative to the competition. It has tended to price its economy product consistently
among the most expensive of those in the market. Conversely, firm 3 prices its premium
product at the bottom end of the market. This pricing strategy has been relatively
inconsistent however. Krom appears to lag significantly in marketing spending
especially in promotion of its premium product. Despite Firm 3’s apparent weakness in
the premium market, the expansion of their plant in 2002 indicates some commitment to
the product. It is believed that Krom will continue spending lightly in marketing and
pursuing a middle-of-the-road quality in both products.
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Meridian Timepieces (“Firm 4”) has consistently followed a low cost, high volume
strategy with its economy watch. Firm 4 has the largest market share in the economy
product market and in seeking to take advantage of economies of scale has expanded its
plant extensively. Due to over capacity of product in the world, Meridian inventory
levels, and the extremely large economy product plant it is believed that their plant is
operating well below its capability. Firm 4 is expected to price aggressively to retain the
most price conscious segments of the economy watch market. In the premium watch
market, firm 4 has established a high price, high quality positioning. Due to the
necessarily large R&D expenses to establish and hold this positioning, Meridian appears
the most likely of all competitors to relocate its premium product plant to a location more
efficient in use of R&D dollars.
Firm 5 has been following a low quality, low price strategy in their premium watch line
and an average quality slightly above average pricing strategy for its economy product
line. Firm 5’s marketing tactics have been to heavily target desired markets, specifically
the European countries. Falling premium product marketing expenditures as well as the
extremely low relative quality makes Firm 5 a prime candidate to either exit this market
or move its plant. If a move in their premium plant is made it is most likely that due to
their Euro intensive strategy that Germany would be the prime candidate.
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Marketing Planning
Marketing Objectives
Ascension Corporation has held a consistent policy in marketing both its products. This
strategy has been to anticipate competitors spending in marketing and R&D based on
previous spending patterns and then to set marketing expenditures to maximize profits in
the near term as well as the future. The company has sought to distinguish itself from its
competitors through heavy targeted marketing. Analysis of the individual global markets
had shown that marketing in a few countries had a relatively large return per dollar spent
while other countries actually exhibited a negative return. The following two charts show
the value added per dollar spent in marketing for Q1 of 2002.
Figure 3 – Marginal Earning Per Marketing Dollar Spent: 2002 Quarter 1
Product 1 Marginal Benefit per $1 Spent Q1 2002
A high return per marketing dollar

spent implies two things about the
$1.06
market:
$2.27
Japan
1 – Consumers are more
Mexico
China
greatly influenced by marketing
$0.91 UK
Germany 2 – Average Expenditures
US
of competitors are relatively low
$(0.07
$(0.15
The areas with the greatest promise
$1.62 were then exploited throughout
2002 to optimize profits,
increasing/decreasing spending until
maximum value was obtained. The next Product 2 Marginal Benefit per $1 Spent Q1 2002
two charts show how the majority of $(0.15)

these areas were utilized and hence $(0.33)
$0.08
reduced the available benefit from

further expenditures. $1.66
Japan
Mexico
China
UK
Germany
$1.71 US
$1.10
Figure 4 – Marginal Earning Per Marketing Dollar Spent: 2002 Quarter 4
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Product 1 Marginal Benefit per $1 Spent Q4 2002 Product 2 Marginal Benefit per $1 Spent Q4 2002
$0.08
$0.47 $0.49 $0.13
$0.1
Japan Japan
Mexico Mexico
China $(0.14) China
UK UK
$0.2
Germany Germany
US US
$0.36
$1.09
$0.57 $0.10
$0.03
Ascension will continue to utilize this strategy as it takes into account many different
success factors such as market size and profitability of each market. One of our goals for
the coming two years will be to minimize any remaining value, therefore maximize our
marketing expenditure efficiency.
This value will be obtained for product 1 as follows:
• Mexico to reduce remaining value to < $0.20

• Japan to reduce remaining value to < $0.20
• China to reduce remaining value to < $0.20
• US to reduce remaining value to < $0.20
Product 2 objectives are of a similar nature:
• Mexico to reduce remaining value to < $0.10

• US to reduce remaining value to < $0.10
• Maintain other areas of value
In addition to our goals to maximize our “bang for a buck” from the marketing spending,
Ascension has set specific marketing objectives it would like to reach in the coming two
years:
• To achieve and maintain 21% market share and 90 percent brand awareness of
both Summit and Trekker in target markets of Japan, Mexico, and China
Analysis shows consumers in those three markets are more responsive to
marketing campaigns.
• To achieve and maintain 19% market share and 65 percent brand awareness of
both Summit and Trekker in target markets of U.K., Germany, and U.S.
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Analysis shows lower degree of consumer responsiveness to marketing
campaigns due to over saturation of marketing. We want to avoid
excessive spending in a “marketing war,” but at the same time to still
maintain a presence in the market.
Target Markets
The rapid growth Ascension Corporation has experienced since its establishment has
been both an advantage and a disadvantage. The company has become global in its reach
having a significant presence in six countries with lesser penetration in many other
markets worldwide. However, in order to continue this trend of growth, Ascension
strategists must continually review the target markets and adapt the products and
marketing strategies to provide each individual customer with the features desired.
These six major markets in which Ascension Corporation competes are as follows: The
United States, Japan, Mexico, China, Germany and the United Kingdom. Total World
sales (in units) are divided among these markets per the following two pie charts.
Figure 5 – World Demand Breakdown in 2002

Economy Product World Demand
Premium Product World Demand
Japan
Japan
20%
18%
US US
32% 31%
Mexico
12%
Mexico
13%
China
7%
China Germany
Germany
9% 16%
13%
UK
UK 16%
13%
The company has performed extensive marketing research into each of these markets for
both its Trekker and Summit products. These data collected will allow the company’s
R&D and marketing departments to specialize their tactics to maximize customer
satisfaction as well as Ascension profits. The six major markets can be characterized as
follows:
Japan:
Consumers in Japan are constantly looking for the latest gadgets in all products from cell
phones to computers to cars to watches. Focus groups and historical experience have
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shown that this consumer base has a much higher sensitivity to quality than is average.
Extensive image enhancing marketing also plays a large role in the purchase of goods. In
addition to these two aspects the Japanese customers have a significantly lower
sensitivity to product price, as they are willing to pay more for the desired quality,
gadgetry, and image.
However, a large domestic base of smaller local watch manufacturers makes market
growth of foreign companies difficult. These domestic operations occupy a fairly
insignificant portion of the market share in the big picture due to the lack of size and
economies of scale, but have a great advantage of local immersion in the culture. They
have historically been better able to predict the upcoming trends in both fashion and
technological gadgetry. Ascension will be better able to capitalize on the ability to act
locally in this driving market once its factories have been relocated and consolidated in
Japan.
Mexico:
Historical data have shown a consistent trend toward low cost products. They are
influenced by the quality of goods, but are much more influenced by image enhancement
that marketing can provide. The Mexican watch consumer tastes are not a driving force
in the world market at the moment. As such minimal adaptation of Ascension’s product
lines will be needed to successfully market them in Mexico.
China:
In spite of current world conditions, China has been experiencing a renaissance of sorts in
the watch industry. The consumer base, although still small, is growing rapidly. With
the largest, by far, population of any country in the world China is an extremely
important market.
Currently the market in China has been virtually ignored by the watch industry. Due to
this lack of vision, dollars expended in this country have a relatively high return. In fact
marketing dollars spent in China have historically had the greatest return of any country.
Additionally, these consumers are minimally price sensitive when compared with other
world customers. They are willing to pay high prices for the best products.
United Kingdom:
In contrast to China, the UK is a larger market yet shows less promise for investment.
The consumer base currently is highly price sensitive due to constant price wars waged
by competitors. This has gotten to the point where the British customers expect low
prices regardless of quality and features available in a product.
Again in contrast to China, high focus on this market by the watch industry has made the
return per dollar spent relatively unattractive.
Germany:
German customers, based on research and historical data, have acted very similarly to the
British. Like the UK market, due partially to culture and to market saturation, the
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Germany market shows little if any return on monies spent. However, one major
difference is that of culture. Traditionally, the German watch consumers are concerned
greatly with quality of their products. This has made them less sensitive to the price wars
that have been waged there.
United States of America:

Consumers in the US have exhibited relatively high sensitivities to both price and image.
Quality and gadgetry are secondary to the American customers. The adventure-seeking
image used by the booming SUV industry has proven extremely successful. In this area
of image, the US is an industry leader. As the image industry leader, the lessons learned
from the American marketing teams can be applied and adapted to the other markets.
Collective Target Market
The target market for both lines of Ascension Corporation’s watches is the increasingly
active population. These are people who seek adventures by participating in extreme
sports, go off-roading in their SUV, and are generally very hard on any equipment or
watches that they own. In addition to the hard-core sports people, the much larger market
of “soccer moms” and those who dream of adventures is also targeted. Our rugged,
durable, yet stylish watches will fall in the same category as today’s SUV and 4WD
vehicles.
This market will be further divided into by the two offerings of Ascension, Trekker and
Summit. Trekker will be focused primarily toward the younger generation X-ers as well
as the upcoming younger generation. Keeping with the SUV comparison, Trekker is the
Jeep Wrangler, rugged, fun, sporty, adventurous, yet not too many features or too
comfortable.
Summit, on the other hand, is the Land Rover, rugged yet refined, adventurous yet plush.
The typical Summit owners age in the late 20’s and older, generally wealthier, more
stable with careers and family life, and developing an appreciation for the finer things in
life. The targeted customer would be someone who enjoys either participating sports and
outdoor activities or enjoying watching as a fan or a spectator. The similarities between a
typical Summit owner and a typical Land Rover owner are many, hence the analogy.
Besides the “Land Rover Owners” type consumer segment, the Summit is also targeting
the younger and wealthier generation as well. Its trendy style and rugged durability
would be appealing to those in the late teens and early 20’s, who may want a classier
looking watch instead of a more radical and sporty styled watch like the Trekker. The
risk of market segment crossover between the Trekker and the Summit is minimal due to
the distinctively different styles as well as the price gap.
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Our Products
Trekker
Ascension’s Trekker line of watches is sold around the world as

an economical product with unmatched quality and durability
comparing to its peers. In order to retain the spirit of Frank
Dreamer, the Trekker is made from the highest quality materials
that will allow the timepiece to “endure the test of time.”
Product Features:
• Quartz Movement
• Titanium Casing
• Scratch/Crack Resistant Polycarbonate Crystal
• Timer/Altimeter
• Date
• Water Resistant up to 10 ATM
• Backlit Illumination for Use in Darkness
• All weather band
• Lifetime warranty on movement, crystal and casing
• Compass or Digital Device (add-on feature)
The standard titanium casing combines a young and sleek look

that is with superior material attributes such as high corrosion
resistance and exceptional strength to weight ratio. A
polycarbonate crystal also provides excellent scratching and
cracking resistance.
These materials combined with patented design characteristics

that minimize part count guarantee a long life of accurate time
keeping in even the most rugged of environments, from mountain
ranges to deep sea diving to heading a household of 4 children.
The same design patents that allow for fewer moving parts not
only increase reliability, but also drastically reduce cost. This
resulted in some of parts and components used in both the
Trekker and Summit line to be interchangeable with very similar
dimensions.
In the European and US markets, where out door activities such

as extreme sports are becoming more and more popular, an
internal compass is available as an add-on feature for the extra
cost of $7.
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Summit
Ascension’s Summit line of watches is sold around the world as a premium product with
superior durability, dependability, and class comparing to its peers. Similar to Trekker,
Summit retains the spirit of Frank Dreamer: it not only is made from the highest quality
of materials that will allow the timepiece to withstand the test of time, the Summit also
adds a touch of elegance and class without losing its rugged durability.
Product Features:
• Quartz Movement
• Patented Enhanced Titanium Alloy Casing
• Scratch/Crack Resistant Polycarbonate Crystal
• Timer/Altimeter
• Date
• Water Resistant up to 20 ATM
• Patented Auto-Enacting Background Illumination
• Patented Water Resistant Treated Leather Band Available in Various Styles
• Lifetime Warranty and Battery Replacements
• Compass or Digital Device as Standard Feature
The patented enhanced titanium alloy casing provides an even more superior material
compare to Trekker’s already impeccable titanium casing with higher corrosion
resistance and better strength to weight ratio. The same polycarbonate crystal used in
Trekker is also a key component in providing durability to the Summit watch.
As mentioned previously, parts used in both the Trekker and Summit line are virtually
interchangeable, which further reduces unit costs for both product lines. Summit is the
higher quality product overall with innovative and user-friendly features such as our
patented auto-enacting background illumination that allows users to look at their Summit
in the dark without looking for the light button. The Summit comes with better water
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resistance, standard compass or digital device feature, and lifetime warranty and battery
replacements to demonstrate Ascension’s confidence in the product line.
Subtle stylistic and feature differences are utilized from market to market to best fit the
needs of the consumers. For example: In the European and US markets, where out door
activities such as extreme sports are becoming more and more popular an internal
compass comes as a standard feature, while the Japanese version exchanges the standard
internal compass feature for a small pager or other similar small electronic device to
satisfy the desire for gadgetry.
Markets other than Japan will also sell various gadgets that can be used to customize each
watch. Much like cell phones and PDA’s, gadgets such as a pager, a simple global
positioning system or other future devices will be sold in conjunction with Summit
watches.
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Advertising Strategy
Central Message
The central message we want to convey to our target customers is they are part of a
special group, and Ascension watches are the first and the best choice for the prospective
group associated to the target customers. The advertisements’ theme will feature our
versatile watches as a necessary tool for all active individuals, males and females, who
participate in extreme sports and outdoor activities. The key words in the advertisements
are versatility, dependability, and ruggedness.
The goals of our advertising campaign:

• To establish product awareness with people who are unfamiliar with Ascension
• To convince potential customers why Ascension watches are unique and more
attractive than our competitors
• To convey the need for potential customers to join the special group of Ascension
owners
Advertising Media
Ascension’s strategy to convey our central message to the general public is via aggressive
and broad usage of different media sources. Marketing in the six different countries will
be a varied mixture of media sources to maximize potential reach to consumers by
sensible use of available infrastructure in each market.
The media sources to be used will include: television, magazines, the Internet, billboards,
and various sponsorships. Radio and newspapers are not selected as sources for our ads
due to their inadequacies to express the attractive features and merits of the high quality
Ascension watches.
Television
Television offers the opportunity to expose the Ascension products to a broad scope of
audience, including both the current potential customers and the younger population
sector, who may potentially be our customers in the future. Television generates wider
audience awareness of the Ascension watches quicker and more effectively than any
other medium, therefore constitutes the largest portion of the planned marketing
expenditure for year 2003. (See Table 1 for detailed 2003 marketing budget plan)
Ascension advertises Trekker primarily on ESPN-2 (part of the ESPN network) and FSN
(Fox Sports Network) in the U.S. and Mexico regions during afternoon hour segments.
This is the period when the younger targeted audiences are most likely to watch extreme
sports programming that fits Trekker’s radically sporty image. The same commercials
for Trekker are also shown on TV Azteca (Mexico), NHK-Sports (Japan), CTV-Sports
(China), and WDR (Germany) during the late afternoon hours. The sporty and genuinely
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American image of Trekker has been a hit with the Asian and Mexico markets where the
younger generations have an affinity for American pop culture and products.
The TV promotional strategy for Ascension will be to capture the attention and interest of
the targeted consumer sectors. Since the Trekker is marketed to the younger generation
and generation X-ers, the TV advertisements for Trekker feature Danny Cass, the
snowboarding gold medallist in the 2002 X games superpipe event, in a series of
acrobatic and extremely risky maneuvers in various rugged settings. Near the end of the
commercial, the camera would zoom in to Danny checking his personal time on his
Ascension Trekker with the message, “Danny Cass, X games gold medallist, proud
owner of the same Ascension Trekker since 1995.” The underline message of the ad
focused on Trekker’s image of rugged durability and dependability in even the harshest
of environments. The commercials featuring Trekker watches without Danny Cass will
be of a similar nature to those currently shown in the United States for SUV’s. The focus
will be on an adventurous setting, such as rock climbing or kayaking and that the Trekker
watch can take it all.
TV Commercials for Summit are shown on the main stream ESPN, ESPN international
(for Asia, Europe, and Latin America), the Discovery Channel (also shown both in U.S.
and internationally), BBC (U.K.), TV Azteca (Mexico), WDR (Germany), CCTV
(China), and NHK (Japan). The TV channels selected for the Summit commercials are
more for the mainstream audience. The relative costs per spot for most of the stations are
higher than that of the Trekker’s, but the commercials for Summit are made to be less
radical and more in tune with the mainstream trends and styles.
Johnny Moseley, 2002 Winter Olympics gold medallist, is featured in TV commercials

for the Ascension Summit. The 30-second ad begins with Moseley, in his skis, standing
on the summit of a mountain. Moseley checks his Ascension Summit for time before
starting a series of risky skiing maneuvers in the backdrop of breathtaking sceneries and
unbelievably steep slopes. At the end of the slope, Moseley checks his Ascension
Summit again for time, and smiles at the camera with the message “Ascension Summit,
built to withstand the test of time.” (Storyboard of this commercial is shown in
Appendix 2.)
Magazine
Even with the prevalence of television as an advertising medium, our marketing research
shows that the majority of our target customer sectors tend to be more pro-active and
spend less time indoors watching television than the average TV audience. Instead, many
of them spend more time obtaining their information from major magazines relating to
their interests in sports and outdoor activities. This is why Ascension also treats
magazines as an essential medium of advertisements for Trekker and Summit.
In 2002, full-page ads of Trekker advertisements have appeared in Sports Illustrated,

ESPN The Magazine, Outdoor Life, and Beyond Adventure Sports Magazine, all of which
targets the younger and the more active population segments. As for Summit, full-page
ads have appeared in Sports Illustrated, Esquire, National Geographic, and Men’s
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Journal, which target the slightly older, more established, but still active and adventurous
crowd.
Whimsical and colorful advertising campaigns are the prevalent styles of our ads for both
Trekker and Summit. Examples of Ascension’s past advertisements can be seen in
Appendix 1A – 1E. We believe the colorful and stylized advertising campaigns fully
take advantages of exhibiting our product at its finest angle, with the minimal cost. We
will be using colorful magazine advertising campaigns to take advantage of the visual
impact, at a minimal cost. The ads are available in magazines as well as on the
Ascension website to be downloaded as windows wallpapers or screensavers.
The costs of magazine advertisements vary greatly, but we feel the cost is justified due to
their effective communication with our targeted consumers. Table 1 provides a detailed
look at the 2003 planned budgets for Ascension’s magazine advertising campaigns.
Billboards
Ascension has set up billboards in busy intersections in several metropolitans in Japan,
China, U.K., Germany, and U.S. While we do not expect the people to buy our products
as soon as they see the billboards, we want to establish a presence in the subconscious
minds of the many potential customers who may not watch much TV or read major
magazines. The billboards will be designed similar to those of the magazine
advertisements, except the style and the theme would be slightly more edgy and radical.
This goal is to create a buzz, a controversy, and a reason for people walking by to talk
about our products.
The billboard ads will also lack the detail of our magazine ads. Since people’s attention
span for billboards are even shorter than for magazine ads, the designs must be simple
enough to convey a visual impact upon one quick glimpse. Table 1 shows the locations
as well as the detailed budgeting of Ascension’s billboards for year 2003.
Internet
Ascension established a fully interactive website in 1997 (www.AscensionTime.com,) in
anticipation of the trend of the rapidly increasing numbers of Internet surfers and
shoppers. The design and maintenance of the website was originally outsourced by an
external source, however, with the development of web publishing tools and the
increasingly ease of use of these tools, Ascension has trained a selected staff team
maintain its external website. The web task force is also assigned to stay current with the
latest Internet and e-commerce technologies and tools.
The Internet has become a very cost-effective way to further expose our products to the
general public. With a very low cost per exposure to our website ($0.02 - $0.06 per
impression,) Ascension is able to advertise on some of the most popular web sites with
millions of traffics every year. The planned marketing budgets and expected resulting
impressions to our website in year 2003 is shown in Table 1.
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Even with the promising potential of the web to attract significant number of visitors to
our e-commerce site, Ascension does also recognize the rapidly over saturation of
Internet marketing of all of our competitors. The web is not the sole solution to answer
all of our marketing needs, but by utilizing its wide reaching power and speed, Ascension
is able to leverage the web as one of the many cost-effective marketing tools.
Promotional Mix
Although Summit and Trekker are marketed in separate campaigns in all of the countries,
the efforts and resources behind the marketing efforts for the two are shared among
Ascension’s marketing department. Due to the slightly distinct target customers and
styles offered by each of the product, we feel it is optimal to establish the two brands
independently and avoid risks of potential market segment cross over between the two
brands.
Sponsorships
As mentioned previously, Ascension sponsors X Game snowboard gold medallist Danny
Cass for the Trekker watches, and 2002 Olympics skiing gold medallist Johnny Moseley
for the Summit watches. The cost of sponsorship for each individual is around $40,000
annually. We believe it is an investment well worth spending considering the growing
popularity of the two sports and the increasing fan bases of both athletes.
In addition to sponsorships to individuals, Ascension also promotes Trekker and Summit

by sponsoring various events that can be divided into three major categories:
Major Sports Events:

Ascension sponsors ESPN’s extreme sports tournament, the X Games, both
during the summer and in the winter. The X Games has rapidly gained popularity
over the past two years among the targeted younger generation X-ers, and athletes
who have shined in the X Games competitions have become instant celebrities
among the growing number of extreme sports fans.
4 x 4 Off Road Challenges:

Originally started as Jeep’s challenge to all off-road vehicles in a series of driving
through rugged terrains, hills, valleys, and desserts, the event has grown to
become a worldwide spectacle that tours in many different locations and sites year
round. By becoming the sole watch providers for the event and its positive
associations with the ruggedness of 4 x 4 vehicles, this sponsorship has allowed
Ascension to gain wide recognition among SUV fans and owners as the “SUV of
the watches.” (Motor Trend Magazine, February 2002)
Techno Gadget Expos:

Ascension’s sponsorship over the international technology expo in Beijing and the
Tokyo Expo in Japan came in response to the Asian consumers’ craze for fancy
gadgetry. Ascension displays its newest watch technologies in the exhibit booths
to the large number of potential shoppers who visit the expos in search of nice
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electronic “toys.” The sponsorship of these events has opened up wide brand
recognition of the Ascension products in the Japanese and Chinese markets.
Table 1 exhibits the detailed listing of events and projected sponsorship costs for
Ascension in year 2003, and Appendix 3 shows the complete marketing events calendar
for Ascension in year 2003.
Packaging
Marketing surveys have indicated that packaging attractiveness is ranked among the
lowest priority in a consumer’s decision process for a watch. Instead, people are more
prone to be attracted to colorful and stylish displays of watches on the shelf rather than
the color of package it comes with. This makes good sense as people make the decision
to buy the watch, and not the case that comes with the watch. Brand images created by
our marketing campaigns also play a major part in attracting customers as most people
tend to make up their mind on which brand to buy before they even step in the store. It is
typically less likely for consumers to be swayed to purchase other watches upon seeing
the point-of-purchase displays and sales promotions.
With this in mind, we have decided to minimize the cost to packaging by going with a
sturdy and stylish cardboard box rather than the expensive metal cases that typically
comes with our competitors’ watches. We stress the value and quality of the watch, not
the useless accessory that comes with it. All boxes come with colorful Ascension logos
on top to make it visually pleasing and attractive even with the minimal material cost.
The watches are wrapped in heavy tissue paper to keep them securely in position, and
fitted neatly in the packaging. A tag is included inside the package with Ascension’s
mission statement and a watermark for lifetime warranty of all watch components. The
design provides some of the sophistication and quality only seen in a typical premium
watch packaging.
Warranty
Ascension’s lifetime warranty to all internal watch components for both Trekker and
Summit is a testament of our confidence in our products’ impeccable durability, quality,
and dependability. We believe the lifetime warranty for our products establish instant
credibility and reputation for our products as durable and reliable in the minds of our
customers, but we do not offer lifetime warranty for the sake of improving sales or
establish branding, but rather as a show of appreciation and confidence to the many
Ascension owners that the Ascension watches are the only watches you ever need to buy
in your lifetime.
With increased R&D expenditure in 2002 and the significant quality improvements for
both Trekker and Summit, Ascension expects the customer watch return rate to be lower
than 2%, compared to the historical rate of around 3%. Continuous production
improvements and inspection procedures have helped us to achieve one of the lowest
defect rates in industry for both of our products, and we expect this advantage to be
sustainable for the many years to come. Customer support is through a toll-free phone
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number completely free of charge to show our appreciation for the loyalty of all
Ascension owners and supporters.
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Table 1 Detailed 2003 Ascension Marketing Budget
Magazine Advertisements
Magazine Ad Frequency Cost Per Ad Annual Cost

Sports Illustrated Weekly $5,500 $286,000
ESPN The Magazine Monthly $16,000 $192,000
National Geographic Monthly $13,500 $162,000
Esquire Monthly $16,500 $198,000
Men's Journal Monthly $15,400 $184,800
Beyond Adventure Sports Monthly $10,500 $126,000
Outdoor Life Monthly $9,500 $114,000
$1,262,800
Television Advertisements
Network Avg Cost Per Spot Number of Spots Annual Cost

ESPN (US & International) $55,000 30 $1,650,000
FSN (US, Mexico, U.K.) $46,000 25 $1,150,000
Discovery Channel $35,000 15 $525,000
BBC (U.K) $36,000 10 $360,000
TV Azteca (Mexico) $30,000 20 $600,000
WDR (Germany) $47,000 10 $470,000
CCTV - Sports (China) $17,000 25 $425,000
NHK - Sports (Japan) $56,000 25 $1,400,000
$6,580,000
Billboard Advertisements
Location Cost Per Billboard # of Billboards Total Cost

Tokyo, Japan $34,000 5 $170,000
Osaka, Japan $30,000 5 $150,000
Beijing, China $12,000 10 $120,000
Shanghai, China $15,000 10 $150,000
Munich, Germany $27,500 3 $82,500
San Francisco $30,000 4 $120,000
Transit London, U.K. $5,800 25 $145,000
Transit Tokyo, Japan $6,200 25 $155,000
Transit New York City $7,000 24 $168,000
Transit Chicago $6,500 24 $156,000
Transit, Los Angeles $7,400 25 $185,000
$1,601,500
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Table 1 Detailed 2003 Ascension Marketing Budget (Continued)
Internet Advertisements
Web Site Cost/1000 Impressions Yearly Impressions Yearly Cost

AscensionTime.com N/A - Created/Maintained by Ascension staff $100,000
AOL.com $12.00 12000000 $144,000

CNN.COM $14.00 6000000 $84,000
ESPN.com $11.75 5500000 $64,625
USAToday $10.00 5500000 $55,000
Yahoo.com $12.50 5000000 $62,500
Sina.com (Chinese) $8.50 5000000 $42,500
SportsNet.com $9.50 2000000 $20,000
$572,625
Special Event Promotions
Event Location Date Est. Cost

2003 Summer X-Games Philadelphia, PA August $150,000
2003 Winter X-Games Aspen, CO January - February $120,000
World Off-Road Challenge World-wide Year long $400,000
International High Tech Expo Beijing, China June $50,000
Tokyo Tech Expo Tokyo, Japan April $60,000
$780,000
Individual Sponsorships
Name Fame Est. Cost

Johnny Moseley 2002 Olympics Ski Gold Medalist $40,000
Danny Cass 2002 Winter X Games Superpipe Gold Medalist $40,000
$80,000
Distribution Costs (Yearly)

Basic
Foreign Distributors Forecast Sales Commission (3.5%)
Komon Enterprise Ltd $10,110,000 $353,850
Mexel $6,000,000 $210,000
Time Force (China) Ltd $3,900,000 $136,500
Byzantime, Ltd $6,200,000 $217,000
United Watch Company mbH $6,100,000 $213,500
U.S. (On Site) $13,000,000 $0
$1,130,850
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Table 1 Detailed 2003 Ascension Marketing Budget (Continued)
Warranty Costs (Projected)
Watch Replacement (Service Fee Included) $750,000

Watch Repair (Service Fee Included) $150,000
$900,000
Packaging
Product Cost Per Package Est. Sales (units) Total Cost

Trekker $0.24 1100000 $264,000.00
Summit $0.29 900000 $261,000.00
$525,000.00
Marketing Consulting
nVision Research Inc. $1,500,000
TOTAL 2002 MARKETING BUDGET $14,932,775
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Distribution
Overview
Since the inception of Ascension, distribution channels have been an integral part in
getting our message across to the American consumer. From the day the first Trekker
prototypes were delivered and showcased in Blue River Sports (Aspen, CO), we have
strived to be closely in touch with our retailers. With the rapid sales growth the last few
years, we have been in continual and frequent discussions with our existing retailers to
sensibly diversify and expand our distribution channels in the United States. We value
the opinions and ideas of our retailers for they have placed us on the map. Even with the
diversification and expansion of the past years, we have kept the majority of our U.S.
distribution through local sporting goods stores and ski shops.
Ascension distributes the products directly to our U.S. retailers through regional
distribution centers. With our American roots and the management’s understanding of the
American consumer and economy, it is most efficient to manage this distribution chain
internally. Additionally, Ascension continues to optimize its supply chain with the help
of Carnegie Mellon University Operations Group (please refer to the Operations Plan for
details). The collaboration has led to significant cost reductions across the board in our
distribution chain over the years, and we intend to continue the process in the near future.
Ascension became a global company in 1993 with aggressive and focused marketing
campaigns in Mexico, which was expanded to Japan, China, U.K, and Germany the next
year. The decision was made in the initial stages of international expansion to distribute
our products through well-established regional and local distributors and agents because
of their local experience and knowledge of the 5 prospective markets. The local
distributors and agents are paid a fixed percentage of commission of sales in their region
(3.5%) with various incentive packages and performance bonuses to encourage their
participation and creativity in sales. Through the years, Ascension has established the
same close-knit relationships with the international distributors, just like with the
American retailers. The distributors that we have chosen in our target countries Japan,
Mexico, China, United Kingdom, and Germany are shown below:
Table 2 – International Distributor List
Country Distributor Contact

Japan Komon Enterprise Ltd 3-37-9, Higashi Ueno, Taito-City,
Tokyo 110-0015, Japan
Tel: 813 3832 4511 Fax: 813 3832 3032
E-mail: komon-max@pop12.odn.ne.jp
Mexico Mexel Av. Vallarta No. 6503
Local 48, Zona E, Cuidad Granja, C.P.
Zapopan, Jalisco, 45010
Tel: 523-110-1111 Fax: 523-110-0488
E-mail: paola@moy.com.mx
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China Time Force (China) Ltd. Suite 113,5 Xia-guang Lane, San Yuan Bridge,
Chaoyang District, Beijing China
Tel: 86 10 64648773/4
Fax: 86 10 64663797
E-mail: jewellex@public3.bta.net.cn
UK Byzantime, Ltd. Unit 4 R/O 1180 High Road,
Whetstone, London N20 OLH
England, U.K.
Tel: 44 181 343 7468
Fax: 44 181 343 9867
E-mail: timepieces@byzantime.fsnet.co.uk
Germany United Watch Company GmbH Holter StraBe 253, D-33758 SchloB Holte,
Germany
Tel: 49 5207 92199-0
Fax: 49 5207 921277
E-mail: vcontact@swisseye.de
The other major difference in the international distribution chain, compared to the U.S.
distribution chain is that the department stores play a more significant role to the retail
side, as opposed to local sporting goods stores. This is due to the differences in available
consumer shopping venues, as well as due to the more limited number of sporting goods
stores in the five international markets. Projected Distribution Commission Budget for
Year 2003 is shown below:
Table 3 – Projected Distribution Budget for 2003
Ascension International Distributors

Base
Estimated Sales
Distributor Commission
$ Handled
(3.5%)
Komon Enterprise Ltd $ 10,110,000 $ 353,850
Mexel $ 6,000,000 $ 210,000
Time Force (China) Ltd $ 3,900,000 $ 136,500
Byzantime, Ltd $ 6,200,000 $ 217,000
United Watch Company GmbH $ 6,100,000 $ 213,500
U.S. (On Site) $ 13,000,000 $ -
Over the past five years, Internet retailing has grown to become a new and potentially
lucrative venture for Ascension. Through our e-commerce site,
www.AscensionTime.com, Summit and Trekker can be previewed, priced, and ordered
directly via secured connections. The website also offers the option for shoppers to
customize and build their virtual “dream watch” among selected Summit and Trekker
features, which they can subsequently order online. In order to create a win-win situation
with our U.S. and international retailers and distributors, the website also features links
and advertisements for our loyal retailers and distributors as a reward for their loyal
commitments to Ascension.
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Major Retailing Channels
Sporting Goods Stores

Because of both Summit’s and Trekker’s trendy appeal and useful sporty accessories,
they are ideally built for sports and outdoor enthusiasts who contribute the majority of
customers for the sporting goods stores. Ascension first started distributing its Summit
and Trekker products in ski rental shops near major ski resorts in Colorado, Utah,
Vermont, New Hampshire, and Maine, before gradually distributed to the broader and
more general sporting goods stores.
Sporting goods stores offer practically everything for a sports enthusiast, including
fashion. Making over 300 national, regional, and local sporting goods stores authorized
Ascension retailers was a logical move and an immediate success, and today these
retailers account for over 60% of Ascension sales in the U.S. Some of the larger and
better-known U.S. sporting goods store chains, where Ascension timepieces are sold,
include Sports Authority, Sports Unlimited, and the Sports Depo.
Sporting goods stores are a rapidly growing sector in the international retail market.
RRW has taken advantage of this by making over 200 sporting goods stores authorized
dealers of watches throughout Mexico, Europe, and Asia. Sales from these retailers
contributed to an excess of 25% in the 4th quarter of 2002.
Department Stores
Department stores are the largest portion of retail market in both the U.S. market and the
5 international markets Ascension is targeting. In order to maximize product recognition
and exposure, Ascension started gradually distributing Summit and Trekker to selected
national department stores, at the consent of our local U.S. retailers. The goal is to
establish a presence of Ascension timepieces to the broader and more general public.
The dilution and expansion of distributing in selected department stores are both gradual
and sensible to any opinions from the local retailers to make this a win-win situation for
all. Ascension sales in the department stores contributed to around 30% of US sales in
the 4th quarter of 2002.
As mentioned previously, department stores contribute to a more significant role in terms

of Ascension’s international distributions due to different environment and economic
infrastructure of the countries. The competition over shelf space and presence can be
fierce and sometimes economically unfeasible in these stores, therefore, our marketing
strategy has been to aggressively and selectively market our products in order to
maximize our financial interest. With their impeccable experience and knowledge of the
local markets, the local and regional distributors and agents become crucial in our
decision process to selectively market and distribute our products in the department
stores. The sales numbers confirm this as well. In 2002, over 40% of our international
sales were in department stores. Some of the large international department stores that are
authorized Ascension retailers are Far East, Daimaru, Harrods, and Dorian’s.
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Internet Retailing
Internet retailing acts as a virtual distributor in many respects. Internet orders would be
routed and bundled through a real-time order processing system. The bundled Internet
orders would then be handled in the same manner as regular orders. On-line orders will
be shipped direct from our manufacturing facilities, rather then being routed through
distributors, thus reduce cost and increase margins in spite of additional delivery costs
due to customer-direct shipping. Internet retailing accounted for almost 10% of total
sales both in the U.S. and internationally in year 2002.
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Pricing
Pricing Objective
Ascension’s pricing strategy takes into consideration the effects of consumer behavior,
production cost, and projected competitor pricing. Ascension works hard to leverage the
competitive advantages it has attained and signal to the consumers the benefits associated
with Trekker and Summit. Extensive models are developed that allows us to frequently
fine-tune our pricing in order to maximize our overall profit margins. By closely
monitoring the behavior of our competitors and market behavior in different countries,
Ascension is able to set prices that are attractive to consumers and profitable for the
company. Our objective is simple: to maximize shareholder profit, but we feel that it is
also our role to set prices that reflect the true value of our watches and stand as
benchmarks for other firms to rate their prices against.
The table below shows the current pricing situation for both products at the end of 2002
in U.S. dollars:
Table 4: Pricing Situation for Quarter 4 of 2002 in U.S. Dollars.
Trekker Summit
Trekker Competitor Relative Summit Competitor Relative
Country
Price Average Price (%) Price Average Price (%)
Japan $40.12 $34.80 112 $73.33 $62.52 113
Mexico $31.85 $30.64 103 $66.63 $57.06 113
China $50.97 $42.28 116 $71.10 $59.70 115
U.K. $39.14 $39.79 99 $47.61 $52.00 93
Germany $39.10 $38.15 102 $47.53 $52.06 93
U.S. $34.34 $34.30 100 $56.01 $52.96 105
Product – Price Relationships
For the Trekker market, a price war has been waged since the beginning of 2002.
Ascension has tried to use its competitive advantages to break out of this price war and
establish our products as the world quality leader. With our distinctive quality advantage
and innovative features, consumers perceived Trekker with higher product value compare
to our competitors.
As shown in the table above, Ascension fully utilized its unmatched quality as a
competitive advantage in the Trekker market. With its strong reputation in terms of
branding and quality standards, this unique positioning allows Ascension to price Trekker
higher than the competitors in our strongest markets like Japan, Mexico, and China, while
maintaining a more competitive price in the U.K., Germany, and US markets where profit
margin is lower due to stiffer competition. Our conscious strategy to position Trekker
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with high quality, high price, and aggressive marketing in selected countries has
rewarded us with stable market shares and high profit margins over the years.
Summit enjoys a unique position of extremely strong brand recognition in countries like
Japan, Mexico, and China due to our aggressive and successful marketing campaigns in
these countries. Due to a severe quality war that ensued since the beginning of 2002,
Summit does not have the same high quality advantage as Trekker has. However, the
wide brand recognition still allowed Ascension to price Summit higher than the
competition in these countries while maintaining stable market share and maximizing
profit margin. Extensive market research and analysis show U.K., Germany, and U.S.
respond less efficiently to marketing campaigns due to an over-saturation of marketing
spending from our competitors. Ascension coped to this “marketing war” by maintaining
a smaller than average, but still adequate, level of marketing exposure for Summit. At
the same time, Ascension priced Summit at near or below market average to attract
customers who are looking for premium watches at its true value. Our marketing
campaigns in these countries stress Summit’s rugged dependability, underrated quality,
and affordable price as major selling points, and Ascension is able to maintain a steady
market share presence in these countries despite relatively smaller but efficient marketing
campaigns.
Ascension marketing analysts used linear regression models to determine price

elasticities to demand for both Summit and Trekker in all 6 of the markets. We were able
to obtain accurate assessment of sales impact from price changes based on this analysis.
The table below shows the price elasticities for both products in each country:
Table 5. Price Elasticity for Watches in Different Markets
Economy Watch Premium

Country Sector Price Watch Sector
Elasticity Price Elasticity
Japan -1.41 -1.88
Mexico -3.18 -1.7
China -2.81 -1.65
U.K. -2.34 -2.34
Germany -2.23 -1.97
U.S. -2.35 -1.74
It is interesting to note from the table that in the more developed countries like U.K.,
Germany, U.S., and Japan, the differences of price elasticities between the two product
sectors are noticeably smaller than that in Mexico and China, which suggests a more
distinct consumer segmentation and gap due to the bigger income differences between the
rich and poor in the less developed countries. It is also quite logical to see that
consumers in the economy watch sector tend to be more price-sensitive than the
consumers in the premium watch sector. The lone exception to this rule is Japan, which
may be due to the general population’s infatuation with all fancy electronic gadgets
regardless the price.
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Price Control
The ability to dynamically monitor competitors’ pricing schemes, anticipate and react
responsively to environment changes is essential to sustain competitive advantage in the
capricious watch markets. Ascension management administers a frequent and systematic
monitoring of competitive pricing trends, market and consumer feedbacks, world
economic state and potential drifts and risks, as well as the relative quality of Summit and
Trekker. The purpose of this systematic monitoring is so that we are flexible and robust
enough to constantly adjust our pricing and R&D strategies to cope with any unexpected
events and risks.
Several other non-price defenses are in our short-term planning to further leverage our
strength in a competitive situation like a quality or price war. Advertising budgets have
been steadily increased. Ascension’s Board of Directors has approved a proposal from
the management to move the manufacturing facilities for both Summit and Trekker to
Japan, from their original locations in U.S. and China. The move will allow Ascension to
attain significant and sustainable advantage in R&D cost efficiency, which became a
major portion of overall cost over 2002 due to the quality war over the Summit market.
With this significant cost saving, Ascension will be immune to deal with either a quality
war with better R&D cost efficiency; or a price war with the overall savings in
production expenditure carrying over to unit cost.
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Marketing Research
The availability and readiness of marketing information and feedbacks are imperative for
Ascension to dynamically fine-tune company strategy. With the extensive and
substantial amount of information to be collected, processed, and analyzed, Ascension
relies on both our internal marketing department as well as an external marketing
research firm to provide robustness and completeness in our marketing research.
Ascension Corporation has taken on the services of nVision Research Inc. to conduct
ground level marketing research. nVision prepares and administers paper, electronic, and
phone surveys to gather preliminary quantitative data in terms of consumer preferences
on watch styles, features, colors, and brand names. Additionally, face-to-face interviews,
focus groups, and phone interviews are frequently conducted by nVision to obtain
qualitative marketing data that may not be easily captured from survey methods. nVision
also conducts recognition tests, recall tests, and opinion tests to evaluate our specific ad
efforts and provides us with feedbacks on the merits of specific ads. nVision Research is
chosen because of its long established reputation and experience over marketing research
for many clients in industries similar to the watch industry. The Ascension team believes
nVision’s experience and expertise make them the best external marketing research
source available.
With the quantitative and qualitative marketing data collected and compiled by nVision,
as well as sales and market share results, Ascension’s marketing department staff would
run regression analysis of market conditions, and use the regression analysis to determine
the optimal price, quality, and marketing schemes that maximize overall company net
profit. To stay in tune with the rapidly changing market, regression models of individual
markets are continuously monitored and updated to provide the most accurate projections
of consumer behaviors and responses to price, quality, and marketing. Ascension’s
marketing staffs strive to stay current with any new marketing research tools and methods
developed, in order to make fair and accurate assessments to whether the new tools can
be helpful to the company.
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Implementation and Control of the Marketing Plan
Responsible Parties
The two Vice Presidents of Marketing have the full responsibilities to ensure that the
marketing plan is implemented to achieve common efforts and synergy for both product
lines, and that our marketing objectives of maximizing profit and maintaining market
brand recognition are met. The VPs of Marketing in both the Summit and the Trekker
have authority over marketing decisions relating solely to their own product lines. In the
situation where joint decisions have to be made that affect both product lines, the two
VPs would first try to reach agreements among themselves, if the issue cannot be
resolved satisfactorily, the President would have the authority to make a final decision.
Measurement of Success
The VP’s of Marketing, in collaboration with nVision,

will evaluate on the effectiveness o the marketing plan
and present their conclusions to the Ascension
management team on a quarterly basis. As mentioned
previously, the marketing objective for the next two
years is to achieve and maintain 21% market share and
90% brand awareness in Japan, Mexico, and China, and
to achieve and maintain 19% market share and 65%
brand awareness in U.K., Germany, and U.S. for both
product lines. If evaluations show any difficulties for
either product to meet its marketing goals at any point,
the marketing VPs would be responsible to put together
corrective action plans and organize task force teams to
get the marketing plan back on track.
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Appendix 1A 2002 Ascension Advertisements on major U.S. Magazines
Full page spread for Summit in Sports Illustrated, National Geographic Magazine, and
Esquire Magazine. The style of the advertisement is elegant with a slice of humor to
appeal to the readers of these magazines who tend to be more affluent and into leisure
outdoor activities and sports.
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Appendix 1B 2002 Ascension Advertisements on major U.S. Magazines (continued)
Full page spread for Summit in Sports Illustrated, ESPN The Magazine, and Men’s
Journal.
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Appendix 1C 2002 Ascension Advertisements on major U.S. Magazines
Full page spread for Summit in National Geographic Magazine, and Esquire Magazine.
The style of the advertisement is elegant and classy to appeal to the readers of these
magazines who tend to appreciate the finer things in life.
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Appendix 1D 2002 Ascension Advertisements on major U.S. Magazines (continued)
Full page spread advertisement for Trekker in Sports Illustrated Magazine, Outdoor Life
Magazine, ESPN The Magazine, and Beyond Adventure Sports Magazine. Ad designed
to appeal to generation x-ers, active and extreme sports fans, the majority of readers to
these magazines.
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Appendix 1E 2002 Ascension Advertisements on major U.S. Magazines (continued)
Full page spread advertisement for Trekker in Sports Illustrated Magazine, Outdoor Life
Magazine, ESPN The Magazine, and Beyond Adventure Sports Magazine. Ad designed
to appeal to generation x-ers, active and extreme sports fans, which make up the majority
of readers to these magazines.
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Appendix 2 - Summit Television Commercial Story Board
Scene 1: Johnny Moseley, standing on the peak of

a snowy mountain, checks his Ascension Summit
for starting time before flying off into the sky .
Scene 2: Johnny lands safely on the slope and

continues his rapid descent from the summit with a
series of risky skiing maneuvers.
Scene 3: Camera zooms out to show a full view of

the breathtaking mountain slope in the backdrop,
indicating how insignificant Johnny is while he
goes against the powerful forces of nature.
Scene 4: With one giant leap in mid-air, Johnny

coolly enjoys his flight while taking a peak at the
time on his Ascension Summit.
Scene 5: At the end of the slope, Moseley checks

his Ascension Summit again for time, and smiles
at the camera with the message “Ascension
Summit, built to withstand the test of time.” Final
shot zooms in on the watch with the Ascension
logo
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Appendix 3 – Ascension Marketing Events Calendar for 2003
2003 Ascension Marketing Events Calendar

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Television
Magazines
Billboards
Sporting Events X Games X Games X Games
4X4 Challenges Germany Nevada Alaska NM SC Mexico
Tech Expos Beijing Tokyo
Internet
Marketing Reviews
Market Testing

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n

Ascension Corporation was founded by Frank Dreamer in 1992,

Ascension currently has two distinct product lines, Trekker and

The marketing philosophy of Ascension Corporation is built around our commitment to

Ascension Corporation is committed to being the world leader in high quality,

Although a new Ascension management team is in place, the mission statement,

Ascension Performance and Positioning in 2002

Highlights of Ascension’s performance in 2002:

• Total Sales of $79,799,799

Figure 1 – 2002 Quarter 4 Market Positioning for Trekker and Summit

Av erag e R elativ e P rice

Market Positioning of Trekker Market Positioning of Summit

Quarterly Net Income ($ 000's)

Figure 3 – Marginal Earning Per Marketing Dollar Spent: 2002 Quarter 1

Product 1 Marginal Benefit per $1 Spent Q1 2002

A high return per marketing dollar

two charts show how the majority of $(0.15)

reduced the available benefit from

Figure 4 – Marginal Earning Per Marketing Dollar Spent: 2002 Quarter 4

This value will be obtained for product 1 as follows:

• Mexico to reduce remaining value to < $0.20

Product 2 objectives are of a similar nature:

• Mexico to reduce remaining value to < $0.10

Figure 5 – World Demand Breakdown in 2002

United States of America:

Collective Target Market

Ascension’s Trekker line of watches is sold around the world as

The standard titanium casing combines a young and sleek look

These materials combined with patented design characteristics

In the European and US markets, where out door activities such

The goals of our advertising campaign:

Johnny Moseley, 2002 Winter Olympics gold medallist, is featured in TV commercials

In 2002, full-page ads of Trekker advertisements have appeared in Sports Illustrated,

In addition to sponsorships to individuals, Ascension also promotes Trekker and Summit

Major Sports Events:

4 x 4 Off Road Challenges:

Techno Gadget Expos:

Magazine Ad Frequency Cost Per Ad Annual Cost

Network Avg Cost Per Spot Number of Spots Annual Cost

Location Cost Per Billboard # of Billboards Total Cost

Web Site Cost/1000 Impressions Yearly Impressions Yearly Cost

AOL.com $12.00 12000000 $144,000

Special Event Promotions

Event Location Date Est. Cost

Name Fame Est. Cost

Distribution Costs (Yearly)

Warranty Costs (Projected)

Watch Replacement (Service Fee Included) $750,000

Product Cost Per Package Est. Sales (units) Total Cost

TOTAL 2002 MARKETING BUDGET $14,932,775

Table 2 – International Distributor List

Country Distributor Contact

Table 3 – Projected Distribution Budget for 2003

Ascension International Distributors

Sporting Goods Stores

As mentioned previously, department stores contribute to a more significant role in terms

Table 4: Pricing Situation for Quarter 4 of 2002 in U.S. Dollars.