Assumptions

Increase trade promotions by 10%

Decrease consumer promotions by 25%
Reduce the cost of TV advertising by 35%

Increase the cost of printing advertising by

10%. Why? Because RBS is not getting a
valuable return on advertising and
merchandising support in exchange for
trade promotions.

2005 (In $) 2006 (In $)

Manufacturing price per case
8oz 6.18 6.37
1 lb 10.33 10.64
5lb 46.63 48.03
Factory Shipments
8oz 640 793
1 lb 1099 1362
5lb 581 720
Variable manufacturing cost per case
8oz 3.02 3.05
1 lb 4.98 5.03
5lb 22.12 22.34
Gross Sales 42,400 54,125
Gross margin 22,142 28,771
52% 53%
Advertising
TV 2862 4453
Print 687 950
Internet 76 238
Total advertisment 3625 5641
PR 191 297
Consumer promotion 424 1080
Trade promotion 4240 5938
Total marketing expenses 8480 12956
profit before SG&A, overhead and taxes 13662 15815
32% 29%
2007E (In $) 2008E (In $) 2008IE (In $)

7.2 7.92 7.82

12.02 13.222 13.02
54.28 59.708 58.702

714 714 800 27.70%

1226 1226 1350 46.50%
648 648 750 25.90%

3.38 3.718 3.14

5.58 6.138 5.63
24.8 27.28 26
55,051 60556.1 67864
29726 32698.6 38035.5
54% 54% 56%

3815 4196.5 4000

694 763.8 1500
248 272.8 1000
4757 5232.7 6500
198 217.8 198
551 606.1 1400
5505 6055.5 8977.5
11011 12112.1 170750
18715 20586.5 20960
34%