1. The Click Company

2. Overview Analyze advertising & sales rep data in 40 randomly selected territories Influence that sales rep and advertising has on annual sales Recommendations Assess effectiveness of wholesalers in these 40 territories Attributes of “Excellent” wholesalers Annual Sales estimation in “Excellent” wholesalers: 2 scenarios Next steps Suggested additional data collection

3. Overall Effectiveness of Sales rep / Advertising Weekday advertising has a positive impact on sales revenue while weekend advertising has a negative impact on sales revenue. For every additional ad, sales increase by $14,196.8. For every additional sales rep, annual sales increase by $36,590.5. Overall, increase in # of sales reps has a more significant impact (2.5 times more) on annual revenue than increase in # of advertising.

4. Effectiveness of Sales Rep to Sales Revenue # of Sales Rep Sales Rep's Contribution to Sales 3-72.8 4-66.1 5-43.8 6-6.0 747.3 8116.1 Unless there are more than 6 sales reps, sales reps have a negative impact on sales revenue. With the increase in sales rep number, sales revenue also increases.

5. Effectiveness of Advertisement Revenue to Sales Revenue Total Adv Total Adv's Contribution to Sales 4156.8 5189.7 6220.2 7248.2 8273.6 9296.6 10317.1 11335.1 12350.5 13363.5 14374.0 15382.0 16387.5 17390.5 18391.0 19389.0 There is a diminishing incremental return on advertisement spending Once total advertisement reaches 19, advertisement has a negative impact on sales revenue.

6. Efficiency of Wholesalers Advertising is more efficient in territories with higher efficient wholesaler. The incremental benefit of adding an additional sales person is lower when the wholesaler is excellent than when it is not. Excellency in wholesaler efficiency is not statistically significant in explaining impact on sales revenue.

8. “Excellent” Wholesaler Annual Sales Estimation Model: Annual Sales = 75.87 + 14.20 * Total Adv + 36.59 * Number of Sales Reps ($’000) (Note) Note: The basic model is used because: - Wholesaler Efficiency Excellency is not statistically significant. - Efficiency is a subjective variable that is hard to be measured. Total Adv 08 Sales Rep 52 Estimated Sales Revenue 258.8262.6

9. Recommendations There is diminishing margin of return in additional sales reps due to territory restrictions Training by high-performing sales reps in lower sales areas that is not yet saturated

10. Additional opportunities for data gathering Assess efficiency of weekday vs. weekend ads Gather data for revenue generated per ad for weekday and weekend ads within these 40 territories Collect data on cost of ads and cost of sales rep and calculate marginal contribution of input to sales revenue Efficiency of sales reps Determine area for each territory Assess sales of each sales rep in proportion to area total sales and territory area Cost analysis Assess cost and benefit of improving wholesalers vs. additional sales reps especially in lower-ranked sales areas