COMPANY GOALS Focus on large highly competitive segments Focus on largest geographic markets even if they were more expensive Build a market position and defend it Be the leader in all things Provide the most reliable product in the market President VP Sales VP Advertising VP Brand Management VP Marketing VP Technical Support

MARKETS Large and highly competitive segments Workhorse, Traveler, Costcutter Large and expensive geographic markets New York, London

CUSTOMER STRATEGY CustomerWorkhorseTravelerCostcutter Use:Office WorkTraveling WorkPersonal Use Price Sensitivity:$3100$3300-$3400$1960-$2060 Needs:Safe, Secure, No hassle Send & receive sSafe, Secure, No hassle Easy to use & set upPortable & Use on the road Easy to use & set up

BUSINESS STRATEGY Beginning Goal: Become market leader and defend the position Most features, relatively low prices

QUARTERLY FINANCIALS $10,809,950 Revenue $-4,204,461 Operating Income $3,316,819 Gross Margin $-6,433,705 Net Income Workhorse and Traveler, New York and London Changed components of brands Added new brand: CostCutter + R&D New location: Rome, Increased sales force, Price Changes

PRODUCT & PRICE ComputerGoblinGobletGoblitE Use:Office WorkTraveling WorkPersonal Use Main Component:19’ high resolution monitor 13’ portable monitorStandard desktop design Price:$3300->$3400 $1950 Rebate:$150->$100 $75

PROMOTION & PLACE POS 16 12

LESSONS LEARNED More aggressive with initial spending Take advantage of market share opportunities Create a product that appealed to all segments More stable products

FUTURE STRATEGY POS New POS 10

FUTURE STRATEGY Continue to offer low priced products 3 new sales channels: $2.67 million Selective advertising and promotion: $1 million More research and development: $4 million Future Investment $ needed: $8 million

FUTURE FINANCIALS