CHESTER,

Cameron Fuller, Christina Kurow, Carmen Leung, Jennifer Noinaj, Miranda Rodriguez, Adam Swiatek, Jonathan Wong

INC

Sensor Company

BA420 | April 26, 2010

Overview Strategy Products Finances Trials Take-aways

Agenda

1. Simulation Overview

2. Business Strategy

3. Product Information

4. Financial Performance

6. Conclusions

5. Trials and Tribulations

Overview Strategy Products Finances Trials Take-aways 3

Introduction Sensor company: Research & Development,

Marketing, Production and Finance Segmented markets: Low End, Traditional, High End,

Performance and Size 3 practice rounds

Business functions intertwine with one another closely Aggressive strategy Consumer demand & competition: proactive vs reactive

Overview

Overview Strategy Products Finances Trials Take-aways 4

Business StrategyOur Positioning Technology leader Tech savvy consumers: innovative & first-movers

Targeted Segmentation High technology niche differentiator

High End Size Performance

Premium pricing Technologically superior products

Minimizing size, maximizing performance

Strategy

Overview Strategy Products Finances Trials Take-aways 5

Product Perceptual Map

Traditional

Size High End

Low EndPerformance

Products

Overview Strategy Products Finances Trials Take-aways 6

Products Cake (traditional)

Less emphasis Cedar (low)

No big changes Cid (traditional)

Phased out high end

Coat (performance) Max perf criteria

Cure (size) Max size criteria

Cat (high) Newly introduced

Market Share of Products Trad Low High Pfmn Size

Average % of Market 26.6% 30.9% 15.1% 14.5% 12.8%Chester’s % 15.9% 19.4% 31.5% 27.0% 21.0%

Products

Overview Strategy Products Finances Trials Take-aways 7

Performance Snapshot

Andrews

Baldwin

Chester

Digby

ErieFe

rris

($20,000,000)

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000 Cumulative Profit

Andrews14%

Baldwin13%

Chester23%

Digby9%

Erie24%

Ferris18%

Market Share

Finances

Overview Strategy Products Finances Trials Take-aways 8

Stock Price

2010 2011 2012 2013 2014 2015 2016 2017 2018$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Closing Stock Price

AndrewsBaldwinChesterDigbyErieFerris

Finances

Overview Strategy Products Finances Trials Take-aways 9

Financial Impact

Rd 1 Rd 2 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 Rd 8$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Product Costs

Inventory CarryR and DPromoSales Budget

Thou

sand

s

Finances

Overview Strategy Products Finances Trials Take-aways 10

Successful Decisions R&D decisions within the customer’s ideal criteria

range Constant comparisons to competitors Added Cat into high end Portfolio diversification Investment in automation

Trials

Overview Strategy Products Finances Trials Take-aways 11

Unsuccessful Decisions Skimping out on advertising Wrong sales team adjustments Emergency loans Inconsistent investment in capacity Forecasting was poor – leftover inventory Product going outside perceptual map Trial & error

Trials

Overview Strategy Products Finances Trials Take-aways 12

Lessons Learned Communication within the team for decisions Coordination between the various business units Different perspectives on multiple disciplines Awareness of both the competitors and the

stakeholders Strategic thinking

Take-aways

13

CHESTER,

INC

Sensor Company Questions?