North America Europe-Africa Asia-Pacific Latin America Warehouse Operations Warehouse Warehouse Warehouse Warehouse Inventory Percentage of Pairs Cleared (prior to Y11 operations) 25% 25% 25 % 25% Clearance Number of Pairs Cleared (000s of pairs) 18 15 11 11 North America Europe-Africa Asia-Pacific Latin America Internet Marketing Market Market Market Market Internet Marketing Retail Price ($ per pair sold online) $88.50 $85.50 $98.00 $90.00 Decisions Search Engine Advertising (000s) $5,250 $4,500 $4,250 $4,000 Free Shipping (from warehouse to buyer) Yes No Yes No Competitive Retail Price ($ per pair) $77.00 $82.00 $77.00 $82.00 Assumptions Search Engine Advertising (000s) $5,000 $4,500 $4,000 $4,000 Free Shipping None None None None North America Europe-Africa Asia-Pacific Latin America Wholesale Marketing Market Market Market Market Wholesale Marketing Wholesale Price to Retailers ($ per pair) $63.00 $63.00 $70.00 $66.00 Decisions Brand Advertising (000s) $10,000 $9,000 $8,000 $7,500 Main-In Rebate ($0.00 to $15.00 per pair) $5.00 $5.00 $0.00 $3.00 Delivery Time (1 to 4 week delivery) 2 weeks 3 weeks 2 weeks 3 weeks Retailer Support ($0 to $10,000 per outlet) $4,250 $4,000 $3,000 $2,750 Competitive S/Q Rating 3.6* 3.6 * 3.6* 3.6* Assumptions Model Availability 200 models 200 models 200 models 200 models Wholesale Price ($ per pair) $58.00 $63.00 $58.00 $63.00 Brand Advertising (000s) $10,000 $9,000 $8,000 $7,500 Rebate Offer ($ per pair) $3.00 $3.00 $3.00 $3.00 Delivery Time (weeks) 3 weeks 3 weeks 3 weeks 3 weeks Retailer Support ($ per outlet) $4,000 $4,000 $2,750 $2,750 Decision Summary Copyright @ GLO-BUS Software, Inc. Printed 28-Jan-19 at 5:13 pm - Page 1 2/4 attps://www.bsg-online.com/users/sim/decisions/finance