Mid-Term Decision Making Final Report

International
Computer
Enterprises
Past Performance, Current
Standing, and Future
Strategies
Nick Sachs, Megahn McCarthy, and Brittney
Coulthurst
International Computer Enterprises 2013

1

Executive Summary
This report takes an in-depth look at ICE, from its humble beginnings to its current standing in the
business computing market today. Additionally this report will present ICEs strategies for the upcoming
business year. As far as performance goes, ICE burst onto the scene with a tremendous market share
and sound revenue stream to match. As other companies altered their approach, we have given up
some ground in terms of market share. However, we do remain well-positioned financially and as such
hold high hopes of reclaiming our spot as the market leader.
Simply put, our customers are businesses looking to improve their operations by utilizing the emerging
business computing options on the market. We take great pride in never accepting the status quo; and
continually review each markets needs and judgments of our brands while tweaking our models to
better suit our clientele accordingly. Our competition really stepped their performance up a notch the
last quarter, with Eminence Experts and Future Electronics leaping onto our radar as two of the more
worrisome competitors in the marketplace. In an effort to stay ahead of the competition, we have
completed a self-assessment (in the form of a SWOT analysis) also included in this report. It is
noteworthy that we had far more strengths and opportunities than weaknesses or threats; and that the
negatives were for the most part items that could be fixed within one quarters time should they arise.
ICE has a positive outlook for the upcoming business year, revolving around our financial positioning,
R&D plans, and flexible, adaptable approach to every aspect of our business. Our sales channel
personnel will be able to focus solely on staffing our sales offices (particularly maintaining the ratio of
100-150 sales per salesperson), thanks to our aggressive approach in opening all locations. Our brand
management and advertising will be continually tweaked; with R&D components emerging to allow our
brands to distinguish themselves in the marketplace, and with market research and executive reviews to
improve our advertising performance. Pricing is our strongest area for future performance; as we priced
high to skim early on (and to be prepared for the inclusion of high-cost components) and still have our
rebate available for all models when the recession hits.
Also included within are the pro forma financials for the next business year. Rather than an eye-
straining spreadsheet of infinite columns, our finance department took the time to make a more
descriptive and easily-read pro forma report. Obviously some of these figures may fluctuate depending
upon market performance; but given the data backing up the work combined with the proficiency of our
finance department, we are confident the figures within represent a great starting point with the
highest degree of accuracy possible.
Finally our marketing department created several components of an institutional campaign, including a
website, TV ad, radio ad, and magazine ad. All of these materials can be viewed at our website
InternationalComputerEnterprises.Weebly.com, and all share a common psychographic feel of
knowledgeable professionalism. We also thought it catchy to utilize our abbreviated name being ICE by
using the phrase cool as ICE as well as the song Ice Ice Baby. We will touch upon these materials
more in-depth in the report, including potential placement and the reasoning behind an institutional
campaign.

2

Past Performance
In this section we will review the market and financial performance of ICE during our first year of
operation, which only entails one quarter of actual selling (the first two quarters were dedicated to
internal organizing, and the third was planning our foray into the marketplace).
Market Performance

As illustrated in the above graph our initial offerings were extremely well-received. We had over a
quarter of the market share to ourselves, which is astounding considering the amount of competition.
Equally amazing is the initial hole that Infiniti International and Future Electronics dug themselves, and
how well they have done to level the playing field to date.
Our brands all received good consumer judgments, with our company placing in the top three in all
markets (with the exception of the Cost Cutter, in which we were fourth). We actually had the top-rated
Cost Cutter, but given that it was intended to be our Workhorse we do not give that rating any weight in
our report. Conversely, our price judgments were a bit under what many would deem desirable;
however this is due to our strategy of early price-skimming, along with planning for the future when we
would add more expensive components to our machines (thus never having to raise our prices).

Past Market Share
ICE (26%)
Eminence Experts (22%)
Royale (21%)
Triple J Computers (17%)
Future Electronics (8%)
Infiniti International (5%)

3

Financial Performance

Our financial performance rating after the initial quarter was 24.17, which was first by 9.054 to the
closest competitor. As to how that number is realized, the following explanation is directly from the
simulation: Financial Performance measures how well the executive team has been able to create profits
for its shareholders. A positive number is always desired and the larger the better. The operating profit
for the division is used to compute the executive team's financial performance.
Financial Performance = (Operating Profit / Sales Revenue) * 100 = (908,892 / 3,759,896) * 100 = 24.17
Operating Profit= Gross Profit - Operating Expenses = 1,848,351 - 939,459 = 908,892
Gross Profit: 1,848,351
Operating Expenses: 939,459
Sales Revenue: 3,759,896
It is our belief that our initial large amount of success may have both dampened our competitive fires a
bit as well as making us a large target of the other companies. Now that we have fallen back into the
pack a bit we are hungry to regain our spot at the top, and have taken the necessary steps to achieve
this.


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Current Assessment(s)
Customers
International Computer Enterprises target market is businesses that are looking to improve day-to-day
operations. Within this target market each segment has different needs and wants; and requires a
different market strategy to appeal to that specific segments customer. Each quarter ICE purchases
market research and evaluates the different needs for each target market. Based on this information, a
strategy is developed as to how ICE will meet (or hopefully exceed) these needs and wants that are
evaluated each quarter. Brand judgment is also a large factor when looking at how our customers are
responding to all available products in each segment. These factors along with what ICE has to offer we
as a company come into play when we strategize how to create and execute a better product and strive
to exceed customer expectations.
To ensure we had a large enough sample size to accurately predict customers needs and wants, ICE
initially purchased a market survey with a large sample size. Our first designs on the market were
targeted toward the Workhorse (ICE 366) and Innovator (ICE 248) segments. When beginning to
evaluate what applications and components should be included in the machines, we looked at the
market research information and took into consideration anything that customers rated at a value of
110 or higher (in these specific segments). It was found that the Workhorse market wanted a monitor
that was easy on their eyes, machine that was easy to use, and high performance and fast output all at a
middle of road price (which is discussed in another section). Based on our component options we built a
machine with the largest monitor, highest computing power and largest hard drive. The Innovator
market wanted a machine that could handle larger scale tasks, so we beefed up the software
applications. With each design we put on the market this same process was used.
As the quarters progress and sales fluctuate, we take a look at how our customers are responding, and
what changes need to be made as the needs of the customer changes. In quarter 4 we were able to see
how customers responded to our four designs and based on the product review all four brands were
rated at acceptable. Where we stand now in quarter 5 our market share is at 15%, and with keeping in
mind our goal of not only meeting but exceeding our customer needs and wants there are some
adjustments that need to be made. Going into quarter six we have evaluated our competitors and how
customers are responding to their designs. If a customer is responding better to the competitors brand
then it is only appropriate that we compare our machines and make the changes that will satisfy our
market. As new components become available demand will increase, and be centered more specifically
around the new components.


5

Competition
The competition in this simulation is Eminence Experts, Future Electronics, Infiniti International, Triple J
Computers, Royale and I.C.E.
Competition market share based on quarter five:

We feel that the Innovator and Mercedes could be popular among all markets as they all have the
ability to complete with Mercedes being the largest target. Looking at where offices are currently open
across the globe we have a strong prediction that offices will pop up in the cities that have no
competition such as Mexico City, Mumbai, and Warsaw. This could also happen in those cities where
competition is scarce such as Sao Paulo, Shanghai, Sydney, Abu Dhabi, and Johannesburg. Of the four
cities that ICE and Eminence operate in we are open in three of the same and we do feel that they plan
to price attack ICE. Though ICE is rated first in marking effectiveness according to the balance scorecard,
our customers are not satisfied with our advertisements therefore any of our competitors has a chance
at attacking us here.

Market Share
Future Electronics (23%)
Eminence Experts (17%)
Royale (17%)
ICE (15%)
Infiniti International (15%)
Triple J Computers (13%)

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According to the balanced scorecard, four of the six teams have a number one rank in one of the
categories.
Future Electronics is ranked strongest in market performance with a second place rank for
creation wealth. They have the lowest ranking for investments in the firms future and
marketing effectiveness being their second weakest area.
Infiniti International is strongest in investments in the firms future with a second place ranking
in market performance. They are the weakest in the areas of financial performance and
creation of wealth.
Royale does not hold a number one ranking for strengths in anywhere. There strangest area is
investments in the firms future which is a second place spot on the leader board. Royales
weakest in marketing effectiveness and holds the number two spot for both financial
performance as well as creation of wealth.
Triple J Computers also does not have a number one strength compared to the competition.
Their strongest area is a third place ranking in financial performance. They are weakest in total
performance and market performance.
ICE is strongest in marketing effectiveness and holds two number two spots in financial
performance as well as creation of wealth. I am happy to say that we are not the weakest in any
areas but we do come in second weakest in market performance and investments in the firms
future.
Eminence Experts place in first though forth in all areas unlike any other team. They hold the
number one rank in total performance, financial performance and creation of wealth. Their
weakest area is market performance which is third place on the leader board.
We are most concerned about Eminence Experts, as they have the lowest ranking of weaknesses in
market performance as well as the high ranking in strengths. Eminence is also in three of the four cities
that we are operating in. We project that like us; they are targeting the Mercedes and will have all of
their stores open by next quarter. We also have our eye on Future Electronics as they also have a strong
ranking in total performance. On the other end of things Triple J would be who we are least concerned
about. Their market share is not far off from ours but they do not hold a first or second ranking in
strengths and all areas of performance they hold a one through four rank for weaknesses with two
number ones. Triple J also has the lowest overall market demand.


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Internal SWOT analysis of ICE

Future Strategies
In this section we will cover our future plans for advertising, brand management, sales channel
management, and pricing.
Advertising
Advertising is an area that is going to be under constant review for the next four quarters. It appears
that the consumers in the simulation are most pleased by ads with six claims made per advertisement,
as the top performing ads all have six claims with the exception of one (our 247, which has seven
claims). While tweaking may continue well into the simulation, it will mostly revolve around getting the
Strengths
Good financial positioning
All sales offices opened by Q6
Cohesive executive team (thorough attention to
detail)
Sound, long-term R&D plans
Rebate still unused (saved for recession)
Plenty of room in contribution margin for price
decrease
Top in marketing performance
Prices will NEVER have to be raised
Flexible company that adapts to market changes
Weaknesses
Vulnerable to price attacks
Ongoing Cost Cutter/Workhorse market
confusion & poor performance
Potentially too conservative with advertising
funds (willing to adjust but could be hurt for a
quarter)
Similar potential issue with staffing
R&D plans could be popular amongst competition
(extremely desirable components)
Q5 expenditures may weaken our position
Opportunities
R&D should allow us to dominate Mercedes
market
Rebate retention will allow us to flourish during
depression
Massive room for growth in Cost Cutter &
Workhorse markets
Room for improvement in every models
advertising
Having all sales offices open allows us to use
solely local media advertising for lower profit
margin models
Large contribution margin leaves room to
decrease prices going into Q8 (for maximum final
quarter performance)
Threats
Price attacks
Eminence Experts/Future Electronics (both have
the combination of performance and finances to
match anything we do)
R&D components being commonplace, not
distinguishing our brands
Corporate downsizing (more work for remaining
executives)
Unorthodox strategies utilized by poorer
performing companies
Resources spread too thin in Q6 (after all offices
open)

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ads rated acceptable at a minimum and (ideally) rated good. Once that point is reached as a status quo,
placement of the ads will become the primary focus of our advertising department.
As far as what our placement policy will be, it will really treat our products in two separate tiers. Tier A
will be the hi-end products with a large profit margin, and will be placed in specialized media (such as
business magazines, trade journals, etc.) in addition to local media placement. This tier includes the
Mercedes, the Innovator, and the Traveler. Tier B will include the Cost Cutter and the Workhorse, and
will be placed solely in local media unless this strategy results in below average market performance
(this is not expected to happen given that we will have expanded to all markets at the end of quarter
five).
Sales Channels
As far as sales offices go at the end of quarter five we will be open in every potential market. This will
allow for our sales channel personnel to focus solely on staffing needs, in particular maintaining the
sales per salesperson ratio in the 100 to 150 range. Additionally it will fall upon these people to initiate
sales incentive programs and personnel training as they become available. Without knowing the costs it
is impossible to project exactly what the financial impact will be, however we will be aggressive in
creating a sales force with increased potential and an increased desire to sell.
Staffing our sales offices will always be done in a conservative manner, with the assumption that one
quarter of exceeding the aforementioned ratio will not burn out our salespeople (conversely, we never
want to have to lay staff off). In cities where we are alone they will be staffed even more minimally;
however those markets are likely to be few if any (and completely extinct by quarter 7 at the latest, in
our estimation).
In cities where there is competition present, a factor in staffing will be whether the market involved
was first occupied by our company or a competitor. The idea is that if we were first in the market, we
will have enough brand loyalty to continue on the conservative side in terms of salespeople staffing. If
the competition was first, we will be a bit heavier-handed in terms of salesperson hires in an attempt to
distinguish ourselves from the competition through superior service.
I. Mercedes: Our highest priority market and one that will be staffed heavily after the R&D
components become available in quarter six.
II. Support: Not a market but something we want to be known for nonetheless. We will look to
match or exceed our competitors in this area at all times.
III. Traveler/Innovator: Our numbers two and three market priorities, so they will be well-staffed at
all times. Much like advertising, our sales staffing will be allocated regarding the idea of a tier A
and tier B group of products.
IV. Cost Cutter/Workhorse: Minimally staffed but with attention always being paid to the ideal
ratio of no more than 150 sales per salesperson.
V. Non-Specialized Salespeople: We have recently decided to always have at least one and
possibly several salespeople not dedicated to any particular market in our sales offices.

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Pricing
Our pricing strategy has always been oriented around two basic ideas. The first was to price skim early
on, and establish a price point that would be acceptable (if not ideal) to the market. The second was to
price high enough that we would never have to raise prices, regardless of investments in new
components, advertising, sales force, etc. We also will not utilize a rebate unless a recession hits the
marketplace, at which time we are likely to use one for every model.
Quarter Five
In quarter five we have already begun decreasing our Cost cutters price in the Americas region (it is
competitively priced in both other regions). We are going to give the Workhorse another quarter to
figure out whether or not a price adjustment would help its performance in the marketplace. In terms
of our Tier A products (Innovator, Traveler, and Mercedes) we will not be adjusting the price anytime
soon.
Quarter Six
In quarter six we hope that the Cost cutters decrease in the Americas will have helped its
performance, otherwise we will begin exploratory discussions around whether or not to decrease it a bit
further on the global level. It is likely that the Workhorse may be slightly lowered in this quarter
depending on where our R & D takes us; specifically whether or not it would include a software upgrade
we could include with the Workhorse to help justify the current price. The Tier A products (barring a
significant decrease in market performance) will continue on priced as they have been.
Quarter Seven
For projections sake we are predicting a recession will hit the marketplace in quarter seven.
Regardless of where it hits, as stated in the introductory paragraph rebates will be utilized at that time.
Also it is likely at this time we will do a company-wide price decrease to attempt to maximize revenue
for the final performing quarter of the game; we will also be introducing new R&D components to help
keep our machines performing at a high level.
Brand Management
Mercedes (Priority 1)
Our initial R&D expenditures are targeting the Mercedes and the Innovator (with the largest-capacity
hard drive and the fastest CPU). With those components available in quarter six we expect both models
to perform exponentially better after they are included (as stated in the price section, we priced with
these investments in mindso with the market getting better features for the same price we feel as
though our expectations are reasonable).
Following those R&D decisions we will be discussing several different options for the next quarters
R&D. It is likely one of our projects will be an enhanced software or security package, which would be

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included in our Mercedes as soon as it became available. Essentially any R&D project that is not laptop
specific will immediately be included in our Mercedes.
Traveler (Priority 2)
In quarter six we will be faced with the decision of whether or not to include our initial R&D
components in our Traveler product. Some of the discussion is likely to revolve around whether or not
the quarter sixs R&D projects will include any Traveler specific components. At the time of composing
this report it is presumed that we will include the upgraded hard drive because that particular need
(The more storage space the better: 119) scores higher than anything directly related to CPU power
(for the Traveler consumer).
In quarter six if we go with a Traveler-specific R&D project, it will be one of the following:
Case: Slim & Stylish
Monitor: 17 advanced
Battery: Long-life
Aside from one potential Traveler-specific component, we will be looking at software upgrades,
improved networking, or heightened security that can also be included in our Traveler.
Innovator (Priority 3)
While we had to list it as priority three for the purpose of the simulation, the Innovator is essentially
our companys 1a priority. The initial R&D projects are virtually as desirable to the Innovator consumers
as the Mercedes, and will be included in both models as they become available. Additionally any of the
aforementioned potential projects (software, networking, or security) will be included with our
Innovator if they score over 100 with the markets needsotherwise if they score lower it wouldnt be
worth the cut into our contribution margin.
Workhorse (Priority 4)
Our fourth priority, the Workhorse has given our company all kinds of problems. We are in an ongoing
process of reviewing what the market leaders are doing with their models, and tweaking our brand
accordingly. The initial R&D components are not likely to be included in either of our Tier B models
(Workhorse and Cost Cutter); however software upgrades or other components from our second round
of R&D are likely to be included in the Workhorse in an effort to stimulate sales.
Cost Cutter (Priority 5)
Our last priority is the Cost Cutter. We have been having problems with our consumer base in terms of
distinguishing between this model and our Workhorse offering; so competitor reviews and internal
changes remain an ongoing process for this model as well. We have no firm plans for any R&D relative

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to the Cost Cutter; we may review the contribution margin when our second round of R&D becomes
available to see if one of the less-expensive new components could be included. Otherwise our plan to
jump start this models performance revolves around decreasing the price at increasing increments until
we find a good balance of sales and revenue.
Pro Forma Financial Statements
Quarter 3 and Quarter 4
For sale projections in quarter 3, from the numbers that ICE projected vs. the numbers of actual
demand, there was a steady increase in sales with the exception of one product was over projected.
The following will give the percentage increase or decrease in sales for each individual product: ICE 248
had a 12.6% increase, ICE 366 had a 5.8% increase, ICE 595 had a 8% increase, ICE 626 was 6% under the
amount of units that were projected to be sold. Overall in quarter 3, ICE had total revenue of
$3,759,896, and a gross profit of $1,848,351. In quarter 4, ICE had total revenue of $9,837,765, and
after cost of goods sold had a total gross profit of $5,375,555. From quarter 3 to quarter 4, ICE had a
44% increase in revenues alone, and a 48% increase in gross profit.
Quarter 5
SALES REPRESENTATIVES
ICE has chosen to project that we will need ten sales people in each city, in each region. Based on our
current sales, we are projecting a steady increase in sales. Each sales person can sell at minimum 1 and
maximum 150 units.
Americas
The total number of sales people we will have in Quarter five is 30. This is an increase of 16 sales people,
with a cost of $126,673 to hire the new sales people. The total cost to employ them in the Americas is
$681,000. The amount of sales people hired on for each product is going to be the same across the
board as far as where they are staffed. ICE projects that by the end of quarter 5, at least 60% of our sales
revenue will be from the Americas.
APAC
The total number of sales people that will be located in this region will be 20. This is an increase of 14
sales people with a cost of $109,368 to hire the new representatives. The cost to employ the sales
people for the quarter will be $304,000. ICE is projecting that by the end of quarter 5, at least 45% of the
revenue will be from APAC.
EMEA
The total number of sales people that will be located in this region will be 20. The cost to hire the new
sales people was $109,368. The cost to employ them for the quarter was $404,000.

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The total sales force budget for Quarter 5 was $1,734,409.
RESEARCH & DEVELOPMENT
The components that ICE will be implementing will be Hard Drive: Fail Proof Ultra Capacity and
Computing Power: Ultra-Fast.
The financial details for each component made fiscal sense as well as composed fiscal responsibility for
our company. While being implemented with the fiscal details, these components were also
implemented based upon greatest functionality for the most of our products, while also allowing for
them to be product specific at the same time.
Computing power: Ultra-Fast
The material cost is $670 and the total cost to develop this component is $2,842,599.
Hard Drive: Fail-Proof Ultra-Cap.
The material cost is $240, and the total cost to develop this component is $1,705,542. These are the
more expensive of the components that ICE has chosen.
ADVERTISING
ICE advertising expenses will be $1,494,469. This is 38.6% of our operating expenses in Quarter 5. This
number will remain the same throughout the next quarters. ICE decided to bump advertising up in the
local and regional medial placement so that we can have a consistent advertising expense. It will be a
reoccurring cost.
PROJECTED SALES AND PROJECTED SALES REVENUE
Overall, ICEs sales have had a steady increase, which in return has brought us steady revenue. This has
given us appropriate market placement and can be proven in our numbers. Based upon quarter 4
demand going into quarter 5, the following will demonstrate how sales demand has increased: for ICE
248 there was approximately a 19% increase in sales, for ICE 366 there was approximately a 33%
increase in sales, for ICE 595 there was approximately a 45% increase, for ICE 626 there was
approximately a 62%, and for ICE 007 there was over a 100% increase in demand (demand spike from 0
to 330). In quarter 4, revenues were $9,837,765 and quarter 5, based upon our projections, the revenue
will be $12,500,565. This is an increase of 11%. The calculated gross profit for quarter 4 was $5,375,555
and based upon our projections, the gross profit for quarter 5 would be $6,926,107. This is an increase
of 12%.
In quarter 5, ICEs projected sales in units will be as follows: ICE 248 will produce 750 units, ICE 266 will
produce 625 units, ICE 595 will produce 1,500 units, ICE 627 will produce 500 units and ICE 007 will
produce 430 units. These numbers are produced based upon the fact that each product has steadily
increased by no less than 100 units for each brand. Based upon the steady increases in sales, we have

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chosen more conservative numbers for projected demand. The sales projection for ICE 248 would give
ICE a 9% increase in sales, ICE 366 would give a 4% increase, ICE 595 would give us a 5% increase, ICE
627 would give us a 8% increase, and ICE 007 would produce a 13% increase. In quarter 5, the
projections are rather conservative, and if more are sold, the revenues will add on. We chose to under
project instead of being overly optimistic.
Quarter 6
SALES REPRESENTATIVES
Scenario #1: Hire two more sales people per region, per city.
Americas
In the Americas, because there are three cities with sales offices, three more sales people will be added.
There will be a total of 36 sales people. One was added to support in each city as well as to the
Mercedes. The cost to hire the new sales people increased to $178,811. The cost to employ the new
sales people increased to $822,000.
APAC
There will be a total of 24 sales people. One more was added to support and the Mercedes. The cost to
hire the new sales people increased to $144,195. The cost to employ the new sales people increased to
$368,000.
EMEA
There will be a total of 24 sales people. One more was added to support and to the Mercedes. The cost
to hire the new sales people increased to $144,195. The cost to employ the sales people increased to
$488,000.
The total costs for the sales force in Quarter 6 are projected to be $2,146,201.
The justification for this scenario is to hire two more sales people per city per region. The main goal is to
achieve and maintain our sales offices while also increasing our sales revenue. It is projected that each
sales representative will sell between one and 150 units. We are hoping to increase sales in our
Mercedes. We will continue to increase our projected demand in quarter 6 by the same percentage
increases of quarter 5.

Scenario #2: Hire three sales people per city per region


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Americas
The total number of sales people would increase to 39 with a net change in sales people being 25. The
total cost to hire the new sales people would be $206,959 with a total cost of $891,000 to employ them
for the quarter.
APAC
for the quarter.
EMEA
for the quarter.
Scenario #3: Hire seven sales people per city per region
Americas
The total number of sales people would increase to 51. The net change in sales people in the region
would be 37. The cost to hire the new sales people is $318,547 and the cost to employ the sale people
for the quarter is $1,161,000.
APAC
The total number of sales people would increase to 34, with a net change of 28 in the region. The total
cost to hire the sales people would be $234,436 with a cost to employ them for the quarter being
$519,000.
EMEA
The total number of sales people would increase to 34 with a net change of 28 in the region. The total
cost to hire the new sales people would be $234,436 with a cost of $689,000 to employ them for the
quarter.
The scenario that ICE will decide to use in Quarter 6 will be based upon how much sales revenue is
generated, and how the demand turns out. We have made three possible scenarios where we would
want to be with sales people, and costs associated with hiring these sales people. The more sales we
have, the more sales people we are going to want to have. There is a cost associated with laying sales
people off, however, it equals out to what we pay them to stay for the most part. We want to avoid
laying sales people off at all costs to keep our spending down. These scenarios will help us to ensure the
best decision making process possible.

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RESEARCH & DEVELOPMENT
Other Software: Security Suite
This is a wanted component in all except the Mercedes. Although it is not a high rated component
between the ones that do want it, it will be the most versatile. Also, it is an inexpensive component. The
material cost is $40 and the overall cost will be $1,075,638
Networking: High Speed
This is important to three of our products and will help to generate sales in the Mercedes market, as it is
a high priority for the consumers. The material cost is $95 and the overall cost will be $657,334
This will help keep production costs low if the recession hits.
ADVERTISING
Advertising expenses will remain the same (barring an unforeseen impact on performance).
PROJECTED SALES AND PROJECTED SALES REVENUE
We will continue to use the percentages to get our projected demand. We can increase them by one to
five percent if we have a really good quarter.
HIRING SALES PEOPLE
As far as hiring sales people, we did our hiring scenarios for the rest of the quarters in quarter five.
Quarter 7
We are projecting the recession to hit this quarter. When the recession hits, we will be set as far as
finances go and will then issue our sales incentives as well as our rebates. We are suggesting a $50 to
$200 rebate based upon the specific product.
Marketing Collateral Descriptive Report
Our intentions, targets, and general psychographics were the same whether the website, TV ad, radio
ad, or magazine ad are being discussed. It is for those reasons that we will not spend a great deal of
time addressing each portion independently, but rather the overall campaign and thought process
behind it.
Our group agreed that an institutional ad campaign was the route we all thought was best for the
company. The thought process was that the PC industry as a whole was in the fledgling stage of
development, so we did not think that advertising individual products would be particularly effective
(given that consumers would be relatively uninformed). For example, rather than run an ad saying

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Heres our Traveler; with features A, B, and C, we decided the better alternative would be to get our
companys name out as an industry leader.
By utilizing this method of advertising, we felt able to hit all markets in each ad. For example, our
website (http://internationalcomputerenterprises.weebly.com) begins by showing our company logo,
along with a paragraph designed to attract the attention of any business looking for computers. Our
other ads are similarly designed, highlighting our expertise in the computing field and our diverse
product line.
The psychographics may vary a bit depending on which ad is being discussed; however the general feel
we were striving for is knowledgeable professionalism. We also wished to capitalize upon our
companys abbreviated name being I.C.E. by making comparisons to being cool as ICE, utilizing Ice Ice
Baby, etc. (We thought that the usage of the song would be appropriate given the probable age of
many decision-makers in the business worldthat it would inspire feelings of familiarity and nostalgia in
a quickly changing marketplace.)
As far as placement of each media type is concerned, we would spare no expense. The magazine ad
would see placement in Newsweek, Time, Sports Illustrated, and ESPN the Magazine; as well as industry
journals and technology magazines. The radio ad would be placed appropriately depending on the
geographic market, with some spots on talk radio, sports radio, and popular music stations. The TV ad
would be placed on CNN, MSNBC, Fox News, and ESPN; as well as during the big threes (ABC, NBC, and
CBS) local news programs relative to the cities in which we reside. Promotion of the website would be
done by utilizing a combination of the above resources, by which we mean banners on CNN.com,
ESPN.com, etc. In addition we would pay Google to have our companys website become an easier find
through their search engine, and also it would be included in all the other forms of advertising (visit our
website at InternationalComputerEnterprises.Weebly.com).

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