Price Drif

Round 0 Round 1 Round 2 Round 3

Low High Low High Low High Low
Traditional $20.00 $30.00 $19.50 $29.50 $19.00 $29.00 $18.50

Low End $15.00 $25.00 $14.50 $24.50 $14.00 $24.00 $13.50

High End $30.00 $40.00 $29.50 $39.50 $29.00 $39.00 $28.50

Performance $25.00 $35.00 $24.50 $34.50 $24.00 $34.00 $23.50

Size $25.00 $35.00 $24.50 $34.50 $24.00 $34.00 $23.50

Price Drift Model
Round 3 Round 4 Round 5 Round 6 Round 7 Round 8
High Low High Low High Low High Low High Low
$28.50 $18.00 $28.00 $17.50 $27.50 $17.00 $27.00 $16.50 $26.50 $16.00

$23.50 $13.00 $23.00 $12.50 $22.50 $12.00 $22.00 $11.50 $21.50 $11.00

$38.50 $28.00 $38.00 $27.50 $37.50 $27.00 $37.00 $26.50 $36.50 $26.00

$33.50 $23.00 $33.00 $22.50 $32.50 $22.00 $32.00 $21.50 $31.50 $21.00

$33.50 $23.00 $33.00 $22.50 $32.50 $22.00 $32.00 $21.50 $31.50 $21.00
Round 8
High
$26.00

$21.00

$36.00

$31.00

$31.00
Sales Projection = Potential Market Share % * Segment Total Size * (1 + Segment Grow
Round 4

Our Price
Segment Product Important Pfmn Size Previous MTBF Price Promo
Position Year

Age
Price
Traditional Daze 4 Position 7.1 12.9 $26.49 17,000 $26.49 $1,400
Reliability

Price
Age
Low Dell 1 Position 3.0 17.0 $18.49 12,000 $18.49 $1,400
Reliability

Position
Age
High Dixie 1 Reliability 11.1 8.9 $37.99 23,000 $37.99 $1,700
Price

Reliability
Position
Performance Dot 1 Price 12.4 13.9 $32.99 27,000 $32.99 $1,700
Age

Position
Age
Size Dune 2 Reliability 6.1 7.6 $32.99 20,000 $32.99 $1,700
Price

2nd Low Dell-O 9 4.7 15.3 $23.49 12,000 $23.49 $1,500

2nd Traditional Dixi-O 8 7.7 12.3 $27.25 14,000 $27.25 $1,700

2nd High Duke-O 7 11.5 8.5 $38.49 21,000 $38.49 $1,750

Segment Centers at the End of Each Round

Traditional Low End High End Performance Size
Round Pfmn Size Pfmn Size Pfmn Size Pfmn Size Pfmn
0 5.0 15.0 2.5 17.5 7.5 12.5 8.0 17.0 3.0
1 5.7 14.3 3.0 17.0 8.4 11.6 9.0 16.3 3.7
2 6.4 13.6 3.5 16.5 9.3 10.7 10.0 15.6 4.4
3 7.1 12.9 4.0 16.0 10.2 9.8 11.0 14.9 5.1
4 7.8 12.2 4.5 15.5 11.1 8.9 12.0 14.2 5.8
5 8.5 11.5 5.0 15.0 12.0 8.0 13.0 13.5 6.5
6 9.2 10.8 5.5 14.5 12.9 7.1 14.0 12.8 7.2
7 9.9 10.1 6.0 14.0 13.8 6.2 15.0 12.1 7.9
8 10.6 9.4 6.5 13.5 14.7 5.3 16.0 11.4 8.6
Segment Circle Drift Rates (Every year, customers demand increased performance (Pfmn) and decreased
Segment Pfmn Size
Traditional 0.7 -0.7
Low End 0.5 -0.5
High End 0.9 -0.9
Performance 1.0 -0.7
Size 0.7 -1.0
e * (1 + Segment Growth Rate)

Top Competitor
Comp
Comp Market Price Segment Segment
Sales Market Pfmn Size Previous MTBF Promo Sales Growth
Share % Share Year Total Size Rate
Sales

$2,000 20% 2,058 6.8 13.3 $26.20 14,450 $1,500 $2,000 10,504 9.2%

$2,000 18% 2,449 3.0 17.0 $21.49 14,000 $1,400 $2,000 13,949 11.7%

$2,000 21% 967 11.4 8.4 $37.50 24,000 $1,500 $1,700 4,656 16.2%

$1,700 22% 850 12.0 14.0 $33.50 27,000 $1,500 $1,700 3,945 19.8%

$2,000 25% 967 6.2 7.5 $33.50 21,000 $1,500 $1,700 3,885 18.3%

$1,450 13,949 11.7%

$1,000 10,504 9.2%

$1,000 4,656 16.2%

Size
Size
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
ance (Pfmn) and decreased size. )
Potential Actual
Market Market Sales Inventory Inventory % Forecast Manual Forecast Comments
Share % Share % of Sales Draft Override Final

10.0% 12.2% 1,356 612 45% 1,147 0 1,147

29.2% 23.6% 3,290 - 0% 4,550 0 4,550

18.2% 20.9% 974 - 0% 985 0 985

27.0% 27.4% 1,082 9 1% 1,276 0 1,276

24.0% 24.5% 953 3 0% 1,103 0 1,103

2.5% 2.8% 361 282 78% 390 0 650

13.4% 7.2% 753 - 0% 1,537 0 1,500

16.6% 8.0% 371 - 0% 898 0 898

Production Needed = (Sales Projection * (1 + Extra Buffer) – On-hand Inventory

Extra
Buffer = 12%

Sales Oh-Hand Production Manual Production

Required Required
Projection Inventory Draft Override Final

1,147 612 673 0 673

4,550 - 5,096 0 5,096

985 - 1,103 0 1,103

1,276 9 1,420 0 1,420

1,103 3 1,232 0 1,232

650 282 446 0 446

1,500 - 1,680 0 1,680

898 - 1,006 0 1,006