8/12/2019 harward Simulation

1/20

Decisions History Decisions H2012 Q4 2013 Q1

List Price 150 150 List Price% Spending on Large Customers 0.8 0.8 % SpendinSegment A Discounts 0.15 0.15 Segment ASegment B Discounts 3% 2% Segment B

Segment C Discounts 2% 0% Segment CSegment D Discounts 0.2 0.2 Segment DSpending on Large Customers 400,000 360,000 Spending oDistributor Discounts 0.1 0.12 DistributorSpending on Small Customers 100,000 90,000 Spending oTotal Budget 800,000 800,000 Total BudgSales Force 10 9 Sales ForceSegment A Sales Force Emphasis 0.48 0.44 Segment ASegment B Sales Force Emphasis 0.12 0.11 Segment BSegment C Sales Force Emphasis 0.12 0.11 Segment CSegment D Sales Force Emphasis 0.28 0.34 Segment D% Time Spent on Large Customer Retention 0.2 0.3 % Time SpLarge Customer Retention Spending 80,000 108,000 Large CustLarge Customer Acquisition Spending 320,000 252,000 Large CustSpending on Marketing Communications and Training 80,000 80,000 Spending oSpending on Market Research 50,000 50,000 Spending oPower-to-Size Ratio Feature Spending 100,000 150,000 Power-to-SManufacturing Efficiency Improvement 20,000 20,000 ManufactuThermal Resistance Feature Spending 50,000 50,000 Thermal RRemaining Budget 0 0 Remaining

8/12/2019 harward Simulation

2/20

istory Decisions History2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2012 Q4 2013 Q1

150 150 150 148 148 List Price 150 1500.8 0.8 0.9 1 1 % Spendin 0.8 0.8

0.15 0.15 0.15 0.1 0.12 Segment A 0.15 0.153% 2% 2% 2% 2% Segment B 3% 2%

2% 0% 0% 0% 0% Segment C 2% 0%0.2 0.2 0.2 0.2 0.2 Segment D 0.2 0.2

400,000 360,000 405,000 450,000 450,000 Spending o 400,000 360,0000.1 0.12 0.12 0.12 0.12 Distributor 0.1 0.12

100,000 90,000 45,000 0 0 Spending o 100,000 90,000800,000 800,000 700,000 700,000 700,000 Total Budg 800,000 800,000

10 9 9 9 9 Sales Force 10 90.48 0.44 0.44 0.44 0.44 Segment A 0.48 0.440.12 0.11 0.11 0.11 0.11 Segment B 0.12 0.110.12 0.11 0.11 0.11 0.11 Segment C 0.12 0.110.28 0.34 0.34 0.34 0.34 Segment D 0.28 0.34

0.2 0.3 0.3 0.4 0.5 % Time Sp 0.2 0.380,000 108,000 121,500 180,000 225,000 Large Cust 80,000 108,000

320,000 252,000 283,500 270,000 225,000 Large Cust 320,000 252,00080,000 80,000 50,000 50,000 20,000 Spending o 80,000 80,00050,000 50,000 50,000 50,000 50,000 Spending o 50,000 50,000

100,000 150,000 110,000 130,000 130,000 Power-to-S 100,000 150,00020,000 20,000 10,000 10,000 10,000 Manufactu 20,000 20,00050,000 50,000 30,000 10,000 40,000 Thermal R 50,000 50,000

0 0 0 0 0 Remaining 0 0

8/12/2019 harward Simulation

3/20

2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 Decisions History150 148 148 148 148 148 2012 Q40.9 1 1 1 1 1 List Price 150

0.15 0.1 0.12 0.12 0.1 0.12 % Spendin 0.82% 2% 2% 2% 5% 5% Segment A 0.15

0% 0% 0% 0% 0% 0% Segment B 3%0.2 0.2 0.2 0.2 0.2 0.2 Segment C 2%

405,000 450,000 450,000 450,000 450,000 450,000 Segment D 0.20.12 0.12 0.12 0.12 0.12 0.12 Spending o 400,000

45,000 0 0 0 0 0 Distributor 0.1700,000 700,000 700,000 700,000 800,000 800,000 Spending o 100,000

9 9 9 9 9 9 Total Budg 800,0000.44 0.44 0.44 0.44 0.44 0.4 Sales Force 100.11 0.11 0.11 0.11 0.11 0.1 Segment A 0.480.11 0.11 0.11 0.11 0.11 0.1 Segment B 0.120.34 0.34 0.34 0.34 0.34 0.4 Segment C 0.12

0.3 0.4 0.5 0.4 1 1 Segment D 0.28121,500 180,000 225,000 180,000 450,000 450,000 % Time Sp 0.2283,500 270,000 225,000 270,000 0 0 Large Cust 80,000

50,000 50,000 20,000 40,000 80,000 50,000 Large Cust 320,00050,000 50,000 50,000 50,000 50,000 50,000 Spending o 80,000

110,000 130,000 130,000 100,000 120,000 110,000 Spending o 50,00010,000 10,000 10,000 10,000 10,000 0 Power-to-S 100,00030,000 10,000 40,000 40,000 90,000 140,000 Manufactu 20,000

0 0 0 10,000 0 0 Thermal R 50,000Remaining 0

8/12/2019 harward Simulation

4/20

2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1150 150 148 148 148 148 148 148 1450.8 0.9 1 1 1 1 1 1 1

0.15 0.15 0.1 0.12 0.12 0.1 0.12 0.11 9%

2% 2% 2% 2% 2% 5% 5% 2% 2%0% 0% 0% 0% 0% 0% 0% 0% 0%0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2

360,000 405,000 450,000 450,000 450,000 450,000 450,000 500,000 550,0000.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12

90,000 45,000 0 0 0 0 0 0 0800,000 700,000 700,000 700,000 700,000 800,000 800,000 800,000 800,000

9 9 9 9 9 9 9 10 110.44 0.44 0.44 0.44 0.44 0.44 0.4 0.5 0.60.11 0.11 0.11 0.11 0.11 0.11 0.1 0% 0%0.11 0.11 0.11 0.11 0.11 0.11 0.1 0% 0%0.34 0.34 0.34 0.34 0.34 0.34 0.4 0.5 0.4

0.3 0.3 0.4 0.5 0.4 1 1 0.6 0.5108,000 121,500 180,000 225,000 180,000 450,000 450,000 300,000 275,000252,000 283,500 270,000 225,000 270,000 0 0 200,000 275,000

80,000 50,000 50,000 20,000 40,000 80,000 50,000 80,000 30,00050,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

150,000 110,000 130,000 130,000 100,000 120,000 110,000 100,000 100,00020,000 10,000 10,000 10,000 10,000 10,000 0 0 050,000 30,000 10,000 40,000 40,000 90,000 140,000 70,000 70,000

0 0 0 0 10,000 0 0 0 0

8/12/2019 harward Simulation

5/20

Decisions History2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4

2015 Q2 2015 Q3 List Price 150 150 150 148 148148 155 % Spendin 0.8 0.8 0.9 1 1

1 1 Segment A 0.15 0.15 0.15 0.1 0.128% 0.14 Segment B 3% 2% 2% 2% 2%

2% 2% Segment C 2% 0% 0% 0% 0%0% 0% Segment D 0.2 0.2 0.2 0.2 0.20.2 0.25 Spending o 400,000 360,000 405,000 450,000 450,000

700,000 700,000 Distributor 0.1 0.12 0.12 0.12 0.120.12 0.12 Spending o 100,000 90,000 45,000 0 0

0 0 Total Budg 800,000 800,000 700,000 700,000 700,000900,000 900,000 Sales Force 10 9 9 9 9

14 14 Segment A 0.48 0.44 0.44 0.44 0.440.44 0.33 Segment B 0.12 0.11 0.11 0.11 0.11

0% 0% Segment C 0.12 0.11 0.11 0.11 0.110.2 0.33 Segment D 0.28 0.34 0.34 0.34 0.34

0.36 0.33 % Time Sp 0.2 0.3 0.3 0.4 0.50.6 0.5 Large Cust 80,000 108,000 121,500 180,000 225,000

420,000 350,000 Large Cust 320,000 252,000 283,500 270,000 225,000280,000 350,000 Spending o 80,000 80,000 50,000 50,000 20,000

70,000 70,000 Spending o 50,000 50,000 50,000 50,000 50,00050,000 50,000 Power-to-S 100,000 150,000 110,000 130,000 130,00040,000 40,000 Manufactu 20,000 20,000 10,000 10,000 10,000

0 0 Thermal R 50,000 50,000 30,000 10,000 40,00040,000 40,000 Remaining 0 0 0 0 0

0 0

8/12/2019 harward Simulation

6/20

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4148 148 148 148 145 148 155 155

1 1 1 1 1 1 1 10.12 0.1 0.12 0.11 9% 8% 0.14 0.12

2% 5% 5% 2% 2% 2% 2% 2%

0% 0% 0% 0% 0% 0% 0% 0%0.2 0.2 0.2 0.2 0.2 0.2 0.25 0.3

450,000 450,000 450,000 500,000 550,000 700,000 700,000 850,0000.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12

0 0 0 0 0 0 0 0700,000 800,000 800,000 800,000 800,000 900,000 900,000 900,000

9 9 9 10 11 14 14 170.44 0.44 0.4 0.5 0.6 0.44 0.33 0.330.11 0.11 0.1 0% 0% 0% 0% 0%0.11 0.11 0.1 0% 0% 0.2 0.33 0.330.34 0.34 0.4 0.5 0.4 0.36 0.33 0.33

0.4 1 1 0.6 0.5 0.6 0.5 0.5180,000 450,000 450,000 300,000 275,000 420,000 350,000 425,000270,000 0 0 200,000 275,000 280,000 350,000 425,000

40,000 80,000 50,000 80,000 30,000 70,000 70,000 050,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

100,000 120,000 110,000 100,000 100,000 40,000 40,000 010,000 10,000 0 0 0 0 0 040,000 90,000 140,000 70,000 70,000 40,000 40,000 010,000 0 0 0 0 0 0 0

8/12/2019 harward Simulation

7/20

Decisions History 2012 Q4 2013 Q1 2013 Q2List Price 150 150 150

% Spending on Large Customers 0.8 0.8 0.9Segment A Discounts 0.15 0.15 0.15Segment B Discounts 3% 2% 2%Segment C Discounts 2% 0% 0%

Segment D Discounts 20% 20% 20%Spending on Large Customers 400k 360k 405k

Distributor Discounts 10% 12% 12%Spending on Small Customers 100k 90k 45k

Sales Force 10 9 9Segment A Sales Force Emphasis 48% 44% 44%Segment B Sales Force Emphasis 12% 11% 11%Segment C Sales Force Emphasis 12% 11% 11%Segment D Sales Force Emphasis 28% 34% 34%

% Time Spent on Large Customer Retention 20% 30% 30%Large Customer Retention Spending 80k 108k 122k

Large Customer Acquisition Spending 320k 252k 284kSpending on Marketing Communications and Training 80k 80k 50kSpending on Market Research 50k 50k 50k

Power-to-Size Ratio Feature Spending 100k 150k 110kManufacturing Efficiency Improvement 20k 20k 10kThermal Resistance Feature Spending 50k 50k 30k

Remaining Budget 0 0 0Total Budget 800k 800k 700k

0

50k

100k

150k

200k

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

20

R&D and efficiency spend

Power-to-Size Ratio Feature Spending Manufacturing Efficiency ImprovementThermal Resistance Feature Spending

8/12/2019 harward Simulation

8/20

8/12/2019 harward Simulation

9/20

2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2148 148 148 148 148 148 145 148

1 1 1 1 1 1 1 10.1 0.12 0.12 0.1 0.12 0.11 9% 8%2% 2% 2% 5% 5% 2% 2% 2%0% 0% 0% 0% 0% 0% 0% 0%

20% 20% 20% 20% 20% 20% 20% 20%450k 450k 450k 450k 450k 500k 550k 700k12% 12% 12% 12% 12% 12% 12% 12%

0 0 0 0 0 0 0 09 9 9 9 9 10 11 14

44% 44% 44% 44% 40% 50% 60% 44%11% 11% 11% 11% 10% 0% 0% 0%11% 11% 11% 11% 10% 0% 0% 20%34% 34% 34% 34% 40% 50% 40% 36%40% 50% 40% 100% 100% 60% 50% 60%180k 225k 180k 450k 450k 300k 275k 420k

270k 225k 270k 0 0 200k 275k 280k50k 20k 40k 80k 50k 80k 30k 70k50k 50k 50k 50k 50k 50k 50k 50k

130k 130k 100k 120k 110k 100k 100k 40k10k 10k 10k 10k 0 0 0 010k 40k 40k 90k 140k 70k 70k 40k0 0 10k 0 0 0 0 0

700k 700k 700k 800k 800k 800k 800k 900k

53%

47%

Retention vs Acquistions

Large Customer Retention Spending

Large Customer Acquisition Spending

7%13%

36%

Sales force spread

Segment A Sales ForceEmphasis

Segment B Sales ForceEmphasis

Segment C Sales ForceEmphasis

Se ment D Sales Force

154

8/12/2019 harward Simulation

10/20

Emphasis

8/12/2019 harward Simulation

11/20

2015 Q3 2015 Q4 Total155 155 149

1 1 96%0.14 0.12 12%2% 2% 3%0% 0% 0%

25% 30% 21%700k 850k 517k12% 12% 12%

0 0 18k14 17 11

33% 33% 44%0% 0% 7%

33% 33% 13%33% 33% 36%50% 50% 52%350k 425k 274k

350k 425k 242k70k 0 54k50k 50k 50k40k 0 95k0 0 7k

40k 0 52k0 0 769

900k 900k 10m

44%

8/12/2019 harward Simulation

12/20

8/12/2019 harward Simulation

13/20

News ArchiveLast quarter sales from existing customers increased by 2% and sales from new customers increased by 12%.

Distributors, on average, are attempting to achieve a 5% profit margin.

2015 Q4Last quarter sales from existing customers increased by 4% and sales from new customers increased by 8%.

Distributors, on average, are attempting to achieve a 5% profit margin.

2015 Q3Last quarter sales from existing customers decreased by 4% and sales from new customers decreased by 0%.

Distributors, on average, are attempting to achieve a 5% profit margin.

2015 Q2Last quarter sales from existing customers decreased by 4% and sales from new customers increased by 20%.

Distributors, on average, are attempting to achieve a 9% profit margin.

2015 Q1Last quarter sales from existing customers decreased by 3% and sales from new customers increased by 37%.

Distributors, on average, are attempting to achieve a 10% profit margin.

2014 Q4Last quarter sales from existing customers increased by 16% and sales from new customers decreased by 27%.

Distributors, on average, are attempting to achieve a 11% profit margin.

2014 Q3Last quarter sales from existing customers increased by 30% and sales from new customers decreased by 29%.

8/12/2019 harward Simulation

14/20

Distributors, on average, are attempting to achieve a 12% profit margin.

2014 Q2

Last quarter sales from existing customers increased by 8% and sales from new customers increased by 0%.

Distributors, on average, are attempting to achieve a 12% profit margin.

2014 Q1Last quarter sales from existing customers increased by 10% and sales from new customers increased by 4%.

Distributors, on average, are attempting to achieve a 10% profit margin.

2013 Q4Last quarter sales from existing customers increased by 5% and sales from new customers increased by 1%.

Distributors, on average, are attempting to achieve a 10% profit margin.

2013 Q3

Last quarter sales from existing customers increased by 1% and sales from new customers decreased by 2%.

Distributors, on average, are attempting to achieve a 7% profit margin.

2013 Q2Last quarter sales from existing customers increased by 15% and sales from new customers increased by 14%.

Distributors, on average, are attempting to achieve a 7% profit margin.

2013 Q1Distributors are upset because the increased price of your motors is forcing them to increase the prices to their cu

Last quarter sales from existing customers decreased by 16% and sales from new customers decreased by 8%.

Distributors, on average, are attempting to achieve a 5% profit margin.

8/12/2019 harward Simulation

15/20

2012 Q4Last quarter sales from existing customers increased by 1% and sales from new customers decreased by 4%.

Distributors, on average, are attempting to achieve a 5% profit margin.

2012 Q31. 2012

1. Q12. Q23. Q34. Q4

2. 20131. Q12. Q23. Q34. Q4

3. 20141. Q12. Q23. Q34. Q4

4. 2015

1. Q12. Q23. Q34. Q4

8/12/2019 harward Simulation

16/20

8/12/2019 harward Simulation

17/20

8/12/2019 harward Simulation

18/20

8/12/2019 harward Simulation

19/20

8/12/2019 harward Simulation

20/20