1. AC Camera Marketing

• GLO BUS YEAR 7 Decision Making

			North America	Europe-Africa	Asia-Pacific	Latin America
Average Wholesale Price to Retailers ($/unit)	$226	$225	$225	$225
Buyer Appeal Variables Generated from Product Design Decisions		P/Q Rating	4.1	4.1	4.1	4.1
	No. Of Models	3 models	3 models	3 models	3 models
Retailer Support Budget ($000s)	$1500	$1400	$1000	$750
Projected Support Expenditures Per Unit Sold	$7.02 per unit	$5.78 per unit	$5.18 per unit	$5.53 per unit
Advertising Budget ($000s)	$1200	$1400	$1000	$750
Website Displays/Info ($000s)	$750	$1200	$900	$600
Sales Promotions (number of weeks | % discount)	2 wks % 10%	1 wk 10%	1 wk 10%	1 wk 10%
Warranty Period (60 days, 90 days, 120 days, 180 days, 1 year)	60 days	60 days	60 days	60 days
Expected Claim Rate (%)| Repair Cost ($000s)	7.0% $750	7.0% $850	7.0% $675	7.0% $475

Market Segment Statistics	Year 6 Actual	Year 7 Projected	Year 6 Actual	Year 7 Projected	Year 6 Actual	Year 7 Projected	Year 6 Actual	Year 7 Projected
AC Camera Demand and Market Share		Unit Demand (000s)	295.0	213.6	264.8	242.3	210.4	192.9	132.8	135.7
	Market Share (%)	19.9%	13.3%	21.1%	17.9%	20.6%	16.9%	18.7%	17.1%
	Year 6	Year 7	Year 6	Year 7	Year 6	Year 7	Year 6	Year 7
Retail Outlets (number willing to carry the company's product line)		Multi-Store Chains	36	32	30	36	24	33	18	25
	Online Retailers	72	66	60	69	48	66	36	54
	Local Retail Shops	3,000	2,760	2,500	2,950	2,000	2,715	1,000	1,758

Price-Cost-Profit Breakdown	$ Per Unit	$ Per Unit	$ Per Unit	$ Per Unit
Revenue Projections		Wholesale Price	226.00	225.00	225.00	225.00
	- Promotional Discounts	-0.87	-0.43	-0.43	-0.43
	Exchange Rate Adjustment	0.00	10.27	7.31	18.27
	Net Revenues	225.13	234.84	231.88	242.83
Operating Cost Projections		Cost of Units Assembled	168.86	168.85	168.84	168.84
	Delivery Cost(shipping / import duties)	5.00	14.00	18.50	18.50
	Marketing Costs	16.15	16.51	15.03	15.48
	Administrative Expenses	8.06	8.06	8.06	8.06
	Total Operating Costs	198.07	207.42	210.44	210.88
Operating Profit	27.06	27.42	21.44	31.95
Operating Profit Margin (operating profit net revenues)	12.0%	11.7%	9.2%	13.2%

Competitive Assumptions	North America	Europe-Africa	Asia-Pacific	Latin America
Anticipated Industry Average Marketing Efforts in Year 7	Price to Retailers	$ 226 per unit	$ 227 per unit	223	227
P/Q Rating	4.0	4.0	4.0	4.0
Number of Models	2.8	2.8	2.8	2.8
Retailer Support	5.2	5.6	5.3	6.10
Advertising Budget	2240	1360	1040	840
Website Displays	1440	1200	960	700
Sales Promotions	1wk	1wk	1wk	1wk
Warranty Period	360	360	360	360

HELP!!! I don't understand what I should put in my year seven. My promotional discounts are negative. My company came in last place in year 6.