H 1 J J K L M N 0 P Q 2019 CAGR 15% 15% 58% 2096 Company Competitor 2017 2018 2016 2019 2019 35% 85% CAGR - 11% 7% CAGR 0% 0% 0% 0% 0% 0% 2019 2016 190 125 2018 170 2017 180 125 2019 160 200 0% 0% 0% CAGR 0% 0% 0% 0% 0% 0% CAGR -6% 125 125 125 0% 0% 0% 0 0% 2016 2017 2018 2019 2019 100 CAGR 0% CAGR 0% 0% 0% 0% 0% B D E F 52 53 Enter formulas in the yellow cells to create a model. 54 55 Industry Unit Model 2016 2017 2018 56 Estimated Total Market Size in Units 650 57 Growth Rate 15% 15% 58 Estimated Percent Direct 33% 59 Direct Market Size in Units 60 Retail Market Size in Units 61 62 63 company Unit Models 2016 2017 2018 64 Estimated Direct Market Share 50% 4554 40% 65 Estimated Retail Market Share 70% 75% 80% 66 Direct Units Sold 67 Retail Units Sold 68 Total Units sold 69 70 Revenues Model 2016 2017 2018 71 Price to Direct 200 200 200 72 Price to Retailers 125 125 125 73 Direct Revenues 74 Retail Revenues 75 Total Revenues 76 77 78 Gross Profit Model 2016 2017 2018 79 Unit Cost 100 100 100 80 Direct Cost of Revenues 81 Retail Cost of Revenues 82 Direct Gross Profit 83 tetail Gross Profit 84 Total Gross Profit 85 86 EBIT (Operating Profit) Model 2016 2017 2018 87 Direct SG&A Percent 10% 10% 10% 88 Retail SG&A Percent 5% 5% 5% 89 Direct SG&A 90 Retail SG&A 91 Direct EBIT 92 Retail EBIT 93 Total EBIT 94 95 Use the model you have created to answer the following questions. 96 What was the CAGR of the overall market in units? 97 98 99 What was the CAGR of the Direct Market Size in Units'? 100 101 102 What was the CAGR of the competitor's 'Total Revenues'? 103 104 105 What was the CAGR of the competitor's price to Direct? 106 107 108 What was the CAGR of the company's total EBIT 109 110 111 Did either company earn the majority of profits in Direct sales. 112 0% 0% 0% 0% 0% 09 CAGR CAGR 2019 10% 2016 10% 5% 2017 10% 5% 2018 10% 5% 2019 10% 5% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 49 B D E F G H 1 K 13 M 44 We want to differentiate between direct and retail channels versus direct and indirect costs. 45 The market size model was designed to represent a business that sells thought multiple distribution channels 46 Direct to Consumer selling is marketing and distributing direct to the end use consumer, as performed by AllBirds, Casper, Hubble Contacts, Warby Parker 47 Retail selling is distributing to a retailer who then sells to the end use consumer, such as Macy's, Sears and Walmart. 48 The term 'direct' luns a different meaning when describing the Cost of Revenues. Direct costs are typically those that scale with revenues, variable costs and the related overhead to make a product or deliver a service. 50 Direct Costs are the firm's resources (supplies, materials, labor, sales commissions, freight) that go into the production or performance of a product/service. 51 Indirect costs exclude expenses that wouldn't be incurred without that particular sale. Indirect costs are resources used to produce more than one sale. 52 53 Enter formulas in the yellow cells to create a model. 54 55 Industry Unit Model 2016 2017 2018 2019 CAGR 56 Estimated Total Market Site in Units 650 15% 57 Growth Rate 15% 15% 15% 58 Estimated Percent Direct 33% 58% 20% 59 Direct Market Size in Units 60 Retail Market Size in Units 61 62 Company 63 Company Unit Models Competitor 2016 2017 2018 2019 CAGR 64 2016 Estimated Direct Market Share 2018 2019 50% 45% 40% 35% - 11% 65 Estimated Retail Market Share 70% 75% 80% 85% 7% 66 Direct Units Sold 0% 67 Retail Units Sold 0% 68 Total Units Sold 0% 69 ON 70 Revenues Model 2016 2017 2018 2019 CAGR 71 Price to Direct 2016 2017 2018 2019 200 200 200 200 0% 72 Price to Retailers 190 180 170 125 125 160 125 125 0% 73 Direct Revenues 125 125 125 125 74 Ox Retail Revenues 0% 75 Total Revenues ON 76 77 78 Gross Profit Model 2016 2017 2018 2019 CAGR DATA TABLES MODEL Simple Company 2016 2017 2018 2019 MODEL Marketing Stratagy MODEL Make-Buy Decision 2017 MODI. H 1 J J K L M N 0 P Q 2019 CAGR 15% 15% 58% 2096 Company Competitor 2017 2018 2016 2019 2019 35% 85% CAGR - 11% 7% CAGR 0% 0% 0% 0% 0% 0% 2019 2016 190 125 2018 170 2017 180 125 2019 160 200 0% 0% 0% CAGR 0% 0% 0% 0% 0% 0% CAGR -6% 125 125 125 0% 0% 0% 0 0% 2016 2017 2018 2019 2019 100 CAGR 0% CAGR 0% 0% 0% 0% 0% B D E F 52 53 Enter formulas in the yellow cells to create a model. 54 55 Industry Unit Model 2016 2017 2018 56 Estimated Total Market Size in Units 650 57 Growth Rate 15% 15% 58 Estimated Percent Direct 33% 59 Direct Market Size in Units 60 Retail Market Size in Units 61 62 63 company Unit Models 2016 2017 2018 64 Estimated Direct Market Share 50% 4554 40% 65 Estimated Retail Market Share 70% 75% 80% 66 Direct Units Sold 67 Retail Units Sold 68 Total Units sold 69 70 Revenues Model 2016 2017 2018 71 Price to Direct 200 200 200 72 Price to Retailers 125 125 125 73 Direct Revenues 74 Retail Revenues 75 Total Revenues 76 77 78 Gross Profit Model 2016 2017 2018 79 Unit Cost 100 100 100 80 Direct Cost of Revenues 81 Retail Cost of Revenues 82 Direct Gross Profit 83 tetail Gross Profit 84 Total Gross Profit 85 86 EBIT (Operating Profit) Model 2016 2017 2018 87 Direct SG&A Percent 10% 10% 10% 88 Retail SG&A Percent 5% 5% 5% 89 Direct SG&A 90 Retail SG&A 91 Direct EBIT 92 Retail EBIT 93 Total EBIT 94 95 Use the model you have created to answer the following questions. 96 What was the CAGR of the overall market in units? 97 98 99 What was the CAGR of the Direct Market Size in Units'? 100 101 102 What was the CAGR of the competitor's 'Total Revenues'? 103 104 105 What was the CAGR of the competitor's price to Direct? 106 107 108 What was the CAGR of the company's total EBIT 109 110 111 Did either company earn the majority of profits in Direct sales. 112 0% 0% 0% 0% 0% 09 CAGR CAGR 2019 10% 2016 10% 5% 2017 10% 5% 2018 10% 5% 2019 10% 5% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 49 B D E F G H 1 K 13 M 44 We want to differentiate between direct and retail channels versus direct and indirect costs. 45 The market size model was designed to represent a business that sells thought multiple distribution channels 46 Direct to Consumer selling is marketing and distributing direct to the end use consumer, as performed by AllBirds, Casper, Hubble Contacts, Warby Parker 47 Retail selling is distributing to a retailer who then sells to the end use consumer, such as Macy's, Sears and Walmart. 48 The term 'direct' luns a different meaning when describing the Cost of Revenues. Direct costs are typically those that scale with revenues, variable costs and the related overhead to make a product or deliver a service. 50 Direct Costs are the firm's resources (supplies, materials, labor, sales commissions, freight) that go into the production or performance of a product/service. 51 Indirect costs exclude expenses that wouldn't be incurred without that particular sale. Indirect costs are resources used to produce more than one sale. 52 53 Enter formulas in the yellow cells to create a model. 54 55 Industry Unit Model 2016 2017 2018 2019 CAGR 56 Estimated Total Market Site in Units 650 15% 57 Growth Rate 15% 15% 15% 58 Estimated Percent Direct 33% 58% 20% 59 Direct Market Size in Units 60 Retail Market Size in Units 61 62 Company 63 Company Unit Models Competitor 2016 2017 2018 2019 CAGR 64 2016 Estimated Direct Market Share 2018 2019 50% 45% 40% 35% - 11% 65 Estimated Retail Market Share 70% 75% 80% 85% 7% 66 Direct Units Sold 0% 67 Retail Units Sold 0% 68 Total Units Sold 0% 69 ON 70 Revenues Model 2016 2017 2018 2019 CAGR 71 Price to Direct 2016 2017 2018 2019 200 200 200 200 0% 72 Price to Retailers 190 180 170 125 125 160 125 125 0% 73 Direct Revenues 125 125 125 125 74 Ox Retail Revenues 0% 75 Total Revenues ON 76 77 78 Gross Profit Model 2016 2017 2018 2019 CAGR DATA TABLES MODEL Simple Company 2016 2017 2018 2019 MODEL Marketing Stratagy MODEL Make-Buy Decision 2017 MODI