Assignment Assessment Report

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Assignment
Assessment Report


Campus:

Hyderabad

Year/semester

1
st

year 2
nd

sem

Level:

A
CL
-
I
I

Assignment Type


A

Module Name:

Sales

Assessor’s Name

Ashirvadam

Student’s Name:

Moin khan

Reqd Submission Date


e
-
mail id & Mob No

Moin.cruise@gmail.com
,

9502724724

Actual Submission Date


Stream

Marketing

Submitted to :


Certificate by the Student:

Plagiarism is a serious College offence.

I certify that this is my own work. I have
referenced all relevant materials.




(Student’s Name/Signatures)

Expected Outcomes

Assessment Criteria

Grade

based
on D,M,P,R
system


Feedback

General Parameters

Clarity

of Concepts

C
lear understanding of the
various
concept
s of
financial services industry



Analytical Thinking
-


A
bility to analyze the problem
realistically



Accuracy in calculations
-


Accur
acy

in solving

the problem
s



Formatting & Presentation
-


C
oncise& clear thinking along with
present
ation



Subject Specific Parameters

Research

Market / Online

Research Conducted to
collect and analyse information.



Analytical Skill


Analysis of Company & Product details to
formulate Sales Plan.





Assignment Grading Summary (To be filled by the Assessor)

OVERALL ASSESSMENT GRADE:


TUTOR’S COMMENTS ON

ASSIGNMENT:


SUGGESTED MAKE UP PLAN

(applicable in case the

student is asked to re
-
do the
assignment)


REVISED ASSESSMENT GRADE


TUTOR’S COMMENT ON REVISED


WORK (IF ANY)


Date:

Assessor’s Name / Signatures:





Grades

Grade Descriptors

Achieved Yes/No
(Y / N)

P

A Pass grade is achieved by meeting all the requirements defined.


M

Identify & apply strategies/techniques to
find appropriate solutions


D

Demonstrate convergent, lateral and creative thinking.





MOBILE CONNECTIVITY AND COMPUTING


THE DAWN OF A NEW ERA

The tablet is a mobile device,
positioned to satisfy the mobile Internet and computing needs of a user. It is a
slate or can be converted into a slate form factor, larger than 5
-
inch screen size, touch screen as primary input
method and uses either a mobile network like GSM/CDMA/WiMAX/L
TE or WiFi or, both for enabling internet
connectivity.

In addition to this a tablet may also include a detachable keyboard and voice capability as in mobile phones. A
tablet may run on a specially designed Operating System (OS) such as Android 3.0 (Honeyc
omb) or RIM’s QNx
or, a PC/Smartphone OS like Windows 7/8, Android 2.2 (Froyo) and iOS 4, which may be modified.

Tablets provide touch based user experience with a screen size convenient enough for web surfing, content
consumption and entertainment. Moreo
ver, portability, ease of use and wireless connectivity 'on
-
the
-
go' all
combine to make the tablet an even more attractive buy.



Assignment Brief
:

The assignment involves studying the local Tablet PC market from the perspective of a new company who
intends to enter this market with a competitive product with similar features and in the same price band as the
existing players.

1.

Carry out a market rese
arch to collect data and information of the top three brands from :


a)

Channel partners (MBO outlets for Tablet PCs)

b)

Sales / Marketing personnel of top 3 companies

c)

Consumers of the top three Brands


2.

The information collected should include details about:

a)

Brands and Models

b)

Sales Volumes and Sales Revenue

c)

Features, Advantages and Benefits

d)

Brand Equity

e)

Customer Profile


demographics and psychographics

f)

Price, Discounts and Promotions

g)

Quality of product and service

h)

Warranty, Guarantees and Upgrades

i)

Logistic
s and Supply Chain

j)

Dealer benefits and company support

k)

Payment terms, demand and supply constraints, billing and MIS to dealers

l)

Stock Turnover, ROI and Profit for dealers


3.

Work out a Sales Plan which should include how to create a distribution network
with channel
partners, the sales Budget and the promotion plans.



Note:

The assignment should be based on real market scenario in your city and should not exceed 6 pages
(2500 words)
.




1.

a)

Channel partners (MBO outlets for Tablet PCs)


Erich G.
Ohngemach

Profile: Professional executive business manager with over twenty years of successful
channel

sales and
business management experience in the IT industry. Extensive knowledge of federal and state and local
government market(s), associated contracting requirements, GSA, and contract program management.
Proven track record and ability to develop and

build a winning sales and business development
organization.


Professional

Experience:


DLT Solutions, Inc., Herndon, Virginia

Director, Enterprise Data Management Division 2/2010


10/
1
/2011


Hired by the Senior Vice President of Corporate Sales and Stra
tegy to build a government focused field
sales organization and lead business division focused on providing data management, data security
solutions, and professional services to Public Sector clients. DLT Solutions is a $800M per annum public
sector value

added reseller of software, hardware solutions and professional services.


General management of $140M per annum business unit focused on the sales of data management,
security software solutions and professional services to the public sector market.

Tota
l PL management responsibilities including; financial assumptions, operating income and margin
management, forecasting and pertinent SGA components.

Thirty
-
five direct reports.

Management of strategic vendor partner relationships, including; NetApp, Symant
ec, BMC, Clearwell
and Quantum.

Responsible
for

managing professional services organization delivering client site consulting and
engineering services, as well as 24x7 tech support call center.

Identification and qualification of enterprise sales initiativ
es and agreements. Significant clients include;
DIA, NGA, NSA, NASA, HHS, DHS, Ohio, Virginia, Maryland and Pennsylvania.


Zebra Technologies, Inc., Vernon Hills, Illinois (Leesburg, VA)

Business Development Manager, Government 8/2008


2/2010


Hired by th
e Director of Government Sales to further develop government
channel

strategy and federal,
state and local government markets
for

the company. Zebra Technologies is a $1B per annum
manufacturer of tabletop, desktop, mobile bar
-
code printers, secure access
card printers, and RFID
printing and encoding solutions.


Development of Federal market, primary account focus; Veterans Administration, USMC, SPAWAR,
Navy, Army, Air Force, Department of Defense Logistics, Military Healthcare, Department of Homeland



Se
curity.

Management of Government Integrator and
Channel

partners
; Northrop Grumman, Unisys Federal,
General Dynamics, Intelligent Decisions, Red River, etc.

Responsible
for

identification and management of government contracts, partner contracts, terms and

conditions, pricing, RFP/LOS process, and contract negotiations. This would include SEWP IV, RFID III,
PRFID, AIT IV and GSA.


Motion Computing, Inc., Austin, Texas (Leesburg, VA)

Manager, Government Channels 4/2007


6/2008


Hired by the Vice President o
f
Channel

Sales to develop government
channel

strategy and federal, state,
and local government markets
for

the company. Motion Computing is a $120M per annum
manufacturer of
tablet

PCs
, mobile clinical tablets, and semi
-
rugged
tablet

PCs
.


Management of G
overnment
Channel

partners
; GTSI, ePlus, Red River Computer, Intelligent Decisions,
GovConnection, etc.

Responsible
for

identification and management of government contracts, partner contracts, terms and
conditions, pricing, RFP/LOS process, and contract n
egotiations.

Partner contracts include; GSA, SEWP IV, ECS III, ITES, US Courts, US Communities.

Development of sales and marketing initiatives associated with DMR government business;
GovConnection, CDWG, Insight.

Recruitment and development of new
channel

partners
.


Tech Data Corporation, Clearwater, Florida (Leesburg, VA)

Director, Southeastern and Government Field Sales 3/1999


10/2006


Hired by the Vice President of Strategic Business Development in 1999 to build government focused
field sales organiza
tion in WDC region, increasing strategic vendor market share
for

the company in this
vertical market. During my tenure at Tech Data, my role expanded, with responsibility
for

management
of the entire Southeast Region as well. Tech Data is a $16B per annum
worldwide distributor of IT
products and logistics services.


Management of $825M per annum business unit.

Eight direct reports

PL management responsibility
for

the division. Includes ABC cost control management, client operating
profit management, margin
management and design of client contracts.

Management of commercial clients associated with Southeast Region; Lockheed Martin, Bell South,
McKesson, America Online, Northrop Grumman.

Grew government VAR sales division business from $98M to $425M in first t
wo years with company.

Significant
channel

partner contract wins include; GTSI, Lockheed Martin, ePlus, SAIC.

Responsible
for

managing two of the companies Top Five clients.

Engagement of Government DMR clients; CDWG, Insight, PC Mall, PC Connection, etc.



Responsible
for

executive relationship management of strategic vendor
partners

such as HP, Cisco, IBM,
Fujitsu, etc.

Successfully recruited Government field sales organization.


Alliance Systems, Inc., Plano, Texas

Director, Federal Sales (Management Con
sultant) 5/1998


11/1998


Hired by the President of the company to build and develop a federal and state and local government
sales and marketing program, as well as manage the government sales effort domestically
for

the
company. Alliance Systems is a di
stributor and integrator of computer telephony products and server
system platforms, specializing in call center, VoIP gateway and PC
-
PBX system solutions.


Developed Alliance’s Computer Telephony “build to order” server system(s) offering on GSA contract.

Designed GSA Agent and Letter of Supply program(s)
for

strategic business
partners
.

Established strategic relationships with new clients such as Hughes Network Systems, Bell Atlantic,
Williams Communications and GTE Government Systems.

Developed Master Re
seller Agreement
for

the company, which included Co
-
op and MDF accrual
program
for

government VARs and resellers.

Won $
1
.5M sub
-
contracting opportunity with GTE Government Systems
for

the Bureau of Prisons IT
-
2
contract to deliver Dialogic voice processing

call center platform to the Department of Justice.

Coordinated executive response to several RFP (FBI, Bell Atlantic) opportunities that resulted in
incremental $5M per annum in business
for

the company.


Global
-
InSync, Inc., Springfield, VA

Vice Presiden
t of Sales and Marketing 3/1997


4/1998


Hired by the Board of Directors of parent company, Global
-
Intelicom, to redesign the company’s sales
and marketing strategies and turn the sales organization around. Global
-
InSync is a build to order
service provid
er and manufacturer of personal computers, workstations and mid
-
range servers.


Direct and manage all sales and marketing efforts
for

the company. This includes profit and loss
responsibility, identifying markets and competition, producing financial assump
tions, revenue and
product forecasting.

Fifty direct reports, included inside and field sales, product marketing and middle management
personnel.

Grew company revenue in first six months from $4.2M per quarter to $10.5M per quarter.

Increased GSA Contract
sales 150% through the development of VAR Agent Program.

Managed sales and business development team to $10M US Postal Service contract win with Lockheed
Martin Corporation.


Developed Private Label and OEM
channel

sales programs increasing indirect
channe
l

sales from $1M to
$8M.




GBC/Globelle Technologies, Inc., Vienna, VA

Director of Sales, Federal Sales Division 8/1995


3/1997


Hired by the Senior Vice President of Sales to grow Federal market share
for

the company. GBC/Globelle
was an $800M per annum national distributor of computer, peripheral and networking products to the
VAR, reseller and system integrator
channel
.


Direct and manage all sales and marketing efforts
for

the company’s Federal sales division.

Twenty direct reports, included inside and field sales, GSA bid and proposal desk, and contract/project
management personnel.

Grew Federal sales division revenue from $36M to $60M per annum in fourteen month period.

E
nhanced overall gross profit margin from 5.5% to 8.2% during this same period.


Mountain Network Solutions, Inc., Scotts Valley, CA (Manassas, VA)

Director, US Distribution Sales 8/1990


8/1995


Hired by the Director of Dealer and Corporate Sales in 1990
to grow Fortune 1000 sales in Eastern
Region. Mountain was an $80M per annum manufacturer of tape backup and data storage devices.
Throughout my tenure at Mountain, I consistently exceeded revenue, account and business objectives,
being promoted three time
s, my final position with the company as Director of Distribution Sales.


Management of domestic US Distribution sales effort. ($80M per annum)

Management of distribution inside and field sales teams. (10)

Accounts included


Tech Data, Ingram Micro, Meris
el, Gates/Arrow, GBC/Vitek and Comstor.


Eastern Regional Sales Manager

o Management of government sales and federal distribution sales effort.

o Eastern US and Canada territory responsibility.


District Sales Manager


o Account management of Northeastern
territory
for

Fortune 1000.


Corporate Account Representative


o Management of Eastern territory
for

major corporate accounts such as UPS, AT&
T
, Coca
-
Cola, Delta,
Chase Manhattan, Price Waterhouse, Gillette, Exxon.

MicroAmerica, Marlborough, MA (Chantilly,

VA)

Systems Engineer/Novell Instructor 9/1987


8/1990


Hired by Technical Support Manager at Chantilly, VA sales office to provide help desk support, and pre
and post sales support
for

networking proposals and products. After being with company
for

12 mo
nths



in this capacity, I became a Certified Instructor
for

Novell Netware (CNI) and taught certification courses
across the U.S. to VARs and resellers to achieve Novell Gold and Platinum status. MicroAmerica was a
$300M national distributor of IT produc
ts.


Education:

Management Studies:


Harvard Business School Management Studies


Dr. David Upton

Harvard Business School Management Studies


Dr. France X. Frei

Corporate Executive Board


Sales Executive Council

Situational Leadership


Ken Blanchard

Bui
lding World Class Sales Organizations


Target Marketing International

Target Account Selling


Target Market International

American Management Association

• Federal Learning Institute

• Management Supervisory Skills

• Time Management

• Executive Presentat
ion Skills


Computer Learning Center, Paramus, NJ (Honor Graduate)

• Electrical Engineering AET (1984


1986)


b)

Sales / Marketing personnel of top 3 companies


Some companies have the luxury of developing training programs and strong internal career paths

for
young up starts that they bring onto their sales team. But in this day in age there are many companies,
particularly small and medium businesses, that have a very difficult time creating an environment for
growth that manages the development of their
people. In fact, all companies today are squeezed on
margins and have a hard time creating enough infrastructure to provide full time sales training
programs, mentoring, and other types of developmental activities for their sales people.


If your company
is thinking about making or buying, one of the key considerations as to whether or not
you buy the best or grow from within really comes down to resources. If you are a small or medium
company, perform an assessment of what it is you can do to help grow yo
ur sales people. Write down a
list of all the activities that ideally you'd be able to perform as a sales manager to mentor and grow new
hires into your company. When you come up with that list, figure out whether or not those tasks are
things that you can

perform internally. If you can’t perform internally, then the next question is, is
there a way to outsource these activities to make sure that they are getting done by somebody? Often
times a sales consulting firm can help you with some of those activit
ies that are not ongoing but require
specific specialist inputs from time to time.




Sometimes it's easier to buy in the best talent by bringing outsides sales consultants, but other times it
makes a lot of sense to just go ahead and hire a sales resourc
e that can help you from the outside. If
your company is going through a make or buy decision as to whether or not to grow from within or to
hire the best, consider using a recruiting firm that can help you get the best people. Those people
require less tr
aining and less time to develop in order to get to your overall sales growth objectives. This
is why it's so critical to be clear with yourself as to what you are capable of doing as it comes to hiring
people.


If your company has a well developed sales i
nfrastructure, training programs, incentive motivation
schemes, mentoring, coaching, and those kinds of capabilities, then you could very well go it alone and
hire people of less experience hoping to bring them along, but if you are like most companies who

are
struggling to get all of these tasks done while continuing to focus on the day to day business, it's better
for you to either bring in a outside sales consultant or hire a recruiter that can help you go find the
talent you need.



If your company has
an entrenched sales force with an average tenure of 3 to 5 years, now is a great
time for you to perform an assessment of your team using new tools that are available online and which
can be easily deployed to perform an objective evaluation of each of you
r sales team
member

individual

s
elling

skills as well as on overall team performance assessment. These tools are readily available and
easy to access, even if you don't want to deploy a sales consultant to do the work.

One tool that we use, represent, and

work with is the evaluation tool from
Objective Management
. The
objective management sales team evaluation process is an easy one to perform and one that any sales
manager can use to come up with actionab
le information that can be turned into making decisions on
performance management, termination, and/or team upgrading. It's very easy to use these tools and it
doesn't take a lot of time or effort.

The output of a team evaluation is an individual report t
hat you can use with each of your sales team
members so that you can have a clear discussion to figure out what they can do to improve their overall
productivity and enhance their value to your company. If you are thinking about 2007 and how to get
more re
venue from your existing sales team, use this kind of tool to make such an assessment. They're
easy to access, easy to set up, and easy to interpret.

The next step is establishing a sales forecasting process. If you're like most sales managers, one of your

jobs is to regularly scrutinize the sales forecast and look into the pipeline to see what's dead and what's
actually moving forward. The job of your sales people is to advance the sale as much as possible but also
to be clear when an opportunity is dead i
n the water and not moving. Your job as a sales manager is to
scrutinize those entries that look like they've been languishing for a long time in your forecast and get
them to either move forward or to move them out of the forecast and kill those opportuni
ties that are
dead.

To often we find sales managers who are taking at face value what their sales people are saying about a
given opportunity. Indeed, I have a situation right now where one of my sales people is actually



continuously updating old pipel
ine entries which are really dead opportunities. She is in the process of
wishing and hoping they'll turn into a sale, but the fact is that she is really in denial that they will not
close. My job as a sale manager is to call those entries to her attention

and make sure that she comes to
clarity about the fact that those opportunities are no longer worth keeping in the sales pipeline.

If you have a modern CRM system, it's easy to manage the sales pipeline, scrutinize the activity, and talk
through those is
sues with your sales people. If you are using salesforce.com you probably have a
dashboard that allows you to quickly look at activity related to specific pipeline entries and to call your
sales people's bluff when those sales entries are not advancing. Th
e best way to get your sales people
back on the track to prospecting, qualifying, and closing new business, is to make sure that their sales
forecast isn't filled with opportunities that are in fact dead. The faster that you can get a sales person to
clari
ty about what's not going to happen, then faster that you can get them working on new
opportunities and creating new opportunities that will actually turn into sales.

A lot of sales people like to keep old pipeline entries active thinking that they'll eve
ntually turn into sales
when in fact they're not going to. So make sure that on a regular basis you are reviewing your old CRM
entries and opportunities and killing the ones that are not going to happen. It'll save you a lot of time
and energy talking thro
ugh the same old deals over and over with your sales representatives so that you
can get on to the subject of finding out what they're doing to create new ones. That's
the role of the
sales manager.


c)

Consumers of the top three Brands


What is the secret to

creating more meaningful relationships with consumers and experiencing
significantly higher growth as a result? According to a recent Stengel Study of Business Growth, the
answer is no more complicated than this: develop a strong brand promise.

Using
Milw
ard Brown's Optimor technique

(explained in the box at the end of this discussion), the
Stengel analysis was performed over a ten
-
year period spanning 31 countries and 28 categories. The top
50 brands
--
that is, those that outpaced their competition in bran
d value over the past decade and
formed “unusually strong connections with consumers” are listed alphabetically in the following chart.
The so
-
called the ‘Stengel 50’ grew three times faster in financial terms during the period studied than
their competito
rs and the overall universe of brands.

The Stengel 50 reveals quite a disparity in brand categories, ranging from luxury brands like Hermès,
Louis Vuitton, Moët et Chandon, Hennessy and Mercedes
-
Benz to e
-
commerce brands like Amaz
on.com
and Zappos to consumer goods brands like Coca
-
Cola, Sensodyne, and Red Bull. Among these brands we
see some of the usual suspects, ones that have been identified in other analyses, particularly
engagementdb's social media engagement study

of the top global brands (which compared Business
Week's top 100 global brands according to number of channels and depth of engagement), a
s well as
assessments of company's performance on Facebook and Twitter. Albeit with differences. For example,
the top three brands that emerged from the engagementdb analysis were
Starbucks, Dell, and eBay
.
The top three Stengel brands were
Apple, Google
and Pampers
, growing as much as 10 times faster



than average company growth between 2001 to 2011. Both studies found that connecting with
consumers was associated with financial growth.

Looking a little more closely at the Stengel study, however, the ba
sic question is what exactly does it
mean to 'develop a strong brand promise' or identity? Insight into this question is provided by the
study's director, Jim Stengel, former CMO of P&G. According to Stengel the high ranking brands were
built around a cent
ral ideal that clarified their core purpose, such as IBM's goal to 'create a smarter
planet' and Jack Daniel's 'maverick independence.' In marketing jargon we call these central ideals
'brand essence'

-

the essential and intrinsic nature of the brand; its
spirit and soul; a single thought that
captures that soul.

The man behind the research


high profile US marketer and former CMO of Procter & Gamble, Jim
Stengel


suggested all of the high ranking brands were built around a central ‘ideal’ that fostered a

tight
focus on their core purpose. As described in his book
Grow. How Ideals Power Growth and Profit at the
World's Greatest Companies
, Stengel elaborates on brand ideals:

“A brand ideal is not social responsibility or altruism but a programme for profit
and
growth based on improving people’s lives.”

“Maximum growth and high ideals are not incompatible. They’re inseparable.”

As an example, Stengel points to
Pampers
, a brand that lost sight of its core ideal by focusing too
narrowly on the dryness of diape
rs. Market share continued to drop until Pampers successfully
redefined its brand ideal as ‘helping mothers care for their babies’ and toddlers’ healthy, happy
development’. Anybody can talk about dry diapers, but helping mothers care for their newborns is

a
message that helps distinguish a winning brand from the also
-
rans. The best
-
performing businesses,
according to Stengel, are driven by ideals that touch on one of five human values: eliciting joy, enabling
connection, inspiring exploration, evoking prid
e or having an impact on society.


2.


The mobile internet user first appeared only a few years ago, but

already this new user’
s behavior is
hanging the technology

landscape. We believe that we are in the early innings of the

mobile computing
cycle


the l
argest in the history of computing.


By the end of 2020, we predict that 10 billion mobile internet

devices will be in use, up from 2 billion
t
oday. Within this larger

trend, we are seeing a fragmentation of computing devices, and

2011 may be
the year of t
he tablet


a computing product whose

adoption, we expect, will ramp faster than any
previous mobile

device (exhibit 1).


Through the aggregating of data from more than 8,000 global

consumers and 50 US CIOs, we have
garnered unique insights

into the tablet

market and usage patterns of tablet users. Our data

include
AlphaWise consumer surveys performed in the US, UK,

France, Germany, Japan, and China in October
2010. Based on

these surveys, we believe that the tablet market could be bigger

and more disruptiv
e
than investors appreciate. In particular, three

potential upside surprises highlighted by our research
could boost

2012 tablet shipments to our 100
-
million bull
-
case scenario:

First, enterprise adoption could
be more widespread than

expected. Two
-
thirds
of the 50 CIOs in our January 2011 survey

expect either





to purchase tablets for some of their employees or

allow employee
-
owned tablets onto their networks
within one year



up from 29% currently (exhibit 2). While it is difficult to know

how large the
d
eployments will be, what the use cases are for the

tablet deployments, and how they might affect
corporate PC

expenditure, this is some of the first
-
hand evidence we have of

enterpise tablet adoption.
Any meaningful uptake of tablets in the

enterprise opens up opportunities for application, security,

virtualization, and management software vendors.

Second, international demand could be materially
higher

than some expect. While consensus views the tablet market as

largely a US consumer
phenome
non, the international consumer

survey data surprised us. Demand came in higher than in the
US

in every large developed international market


the UK, Germany,

France, Japan


and significantly
higher in China (exhibit 3).

While we base our current tablet
shipment forecast on data from

US consumers, there appears to be a clear upward demand bias

in international markets.

Third,
increasingly, tablets may be viewed as contentcreation

devices. Today, the primary use of tablets is to

consume content through act
ivities like web browsing, social

networking, and watching video. However,
20% of tablet owners

also use the device to create or edit files regularly. While this

figure is below the
34% of netbook owners and 56% of notebook

owners that regularly use these
devices to create or edit
files, we

believe the rate of introduction of new mobile applications and

faster processors could increase
these figures over time.



Exhibit 1












Exhibit 2




Exhibit 3



As a global technology, media and
telecommunications

equipment team, we investigated the nvestment
debates for

tablets across 10 industries, both within the tablet supply

chain and adjacent industries, and
now present our

conclusions in this Blue Paper. In some cases our

conclusions are cl
ear and conviction is
high. In other cases,

admittedly, our team members themselves hold differing

opinions. Because we are
only in year two of what we think

will be a 10
-
year technology shift, we expect that it will take

time to
build consensus. Below we
highlight our key

investment conclusions (exhibit 4).

Like smartphones over
the past two years, tablet growth

is likely to surprise to the upside, in our view, pulling with it

market
leaders and challenging legacy technology.

Importantly, while some tablet
s will eat into other markets,
like

PCs, e
-
readers, and gaming handhelds, more than half of

prospective tablet buyers in the US and
more than one
-
third

globally view a tablet as an additive device

a bullish signal

for the broader
t
echnology market. We view

Apple and

Samsung Electronics as the most likely near
-
term tablet

market
leaders in both our base
-

and bull
-
case scenarios.




Memory
-
based storage is the best way to play the bull

case. We view component vendors as the

arms
ealers”

that support tablet gr
owth, and memory
-
based storage

(NAND) is the most
likely
beneficiary

if our bull case scenario

plays out. SanDisk is best positioned here, with 60% earnings

exposure to memory in mobile devices. We also see upside to

ARM Holdings, in light of its leadershi
p

position in low
-
powerusage

processors, and Broadcom, a provider of connectivity

and touch controller
semiconductors.

The impact of tablets on pages printed is the most

underappreciated cannibalization
story. CIOs in the

enterprise space already expect t
o cut spending on printer

supplies in 2011. As the

installed base of tablets

a digital

document viewer that reduces the need to print both standard

black
and white documents and expensive color

presentations

grows, we expect printed page volumes to

shrink
. What’s more, 90% of iPad users already believe they

would print less with access to work
documents on their

tablets. Given high earnings exposure to sales of printers and

related supplies, we
highlight Lexmark and Ricoh as

potentially challenged due to r
ising tablet adoption.

Large
-
cap
technology stocks face limited earnings risk.

Large
-
cap tech stocks bore the brunt of tablet
-
related

Valuation

compression over the last year. Even so, they face

relatively small earnings risk because of
their more diversif
ied

business models. In our base case, we see less than $0.05 of

EPS downside for
large
-
cap technology stocks like Hewlett
-

Packard, Intel, and Microsoft. While these companies need to

more effectively communicate their strategy and execute on

tablets, the
y are somewhat protected by
the greater diversity

of their businesses. We see more downside for companies

with higher earnings
exposure to PCs and printers.

Please see page 6 for a summary of key takeaways by

industry.


Exhibit 4




Hardware

Tablets are
disruptive to the PC market, reducing units by 5%, on average, through 2013.


Tablets increase the TAM, but traditional PC vendors will likely struggle to capture incremental
demand.


Smartphone vendors better positioned, particularly those that own a pl
atform.






Best positioned: Apple, Samsung Electronics, Motorola Mobility, HTC, Research in Motion, Hon Hai
Precision.

Potentially challenged: Hewlett
-
Packard, Dell, Acer, Asustek Computer, Lenovo, Toshiba, Sony.

Semiconductors

Tablets are the latest x8
6 versus ARM battleground


ARM wins round one.


Near term, ARM should continue to dominate as OEMs prioritize low power consumption over
performance.


Longer term, success depends on: 1) usage model 2) manufacturing muscle and 3) Windows 8
success.


Tablets are accretive to most semi companies; EPS risk for Intel and AMD is 1% and 4%, respectively.


Best positioned: ARM Holdings, Broadcom, Qualcomm, Nvidia, Texas Instruments, Marvell
Technology Group.

Potentially challenged: Advanced Micro Devices,
Intel.

HDD

Surprisingly, tablets are not too disruptive to the hard disk drive market but other important threats
linger.


Tablets reduce HDD shipments by 2
-
3%, on average, through 2013 in our base case.


Shift to centralized storage only provides a mode
st offset to tablet cannibalization.


Other threats include desktop virtualization, PC solid
-
state drives and cloud streaming services.


Potentially challenged: Western Digital, Seagate, TDK, Nidec.

Memory

NAND is the best way to play the tablet bull cas
e.


NAND market remains tight due to rising adoption of tablets and smartphones.


Tablet bull case could disrupt the NAND supply demand balance, leading to supply constraints.


DRAM impact is only a slight negative in the near term but neutral to additi
ve by 2012.


Best positioned: Samsung Electronics, Toshiba, SanDisk.

TFT
-
LCD

High
-
end displays and touch panels are strategic components and clear tablet beneficiaries.


Tablets are driving a meaningful expansion in the touch panel market.


While the ov
erall TFT
-
LCD industry impact is modest, providers of high
-
end displays will benefit.


Best positioned: Young Fast, Chimei Innolux.

Printing

Tablet impact on pages printed is the most underappreciated cannibalization story.


Printing behavior is structur
ally changing; we expect a reduction in enterprise and commercial
printing.


The majority of iPad owners are printing less in the office and many are cancelling print subscriptions.


We expect a 2
-
5% reduction in printer supplies revenue in developed mar
kets by 2012.


Potentially challenged: Lexmark, Hewlett
-
Packard, Ricoh.

Software

Opportunities in management, applications and security; near
-
term Microsoft impact limited.


We only see a $0.02
-
0.03 EPS impact while Microsoft calibrates tablet strategy with Windows 8 in
2012.


Tablets offer opportunities for systems management, applications and security software vendors.


Best positioned: VMware, Citrix Systems, Intuit, Suc
cessFactors, Salesforce.com.

Potentially challenged: Microsoft, Adobe.

Gaming

Tablets poised to cannibalize gaming hardware.


Tablets could reduce gaming hardware shipments by 6
-
8% over the next two years.






While cannibalization will focus on the handheld market, product cycles could reduce near term
pressure.


Tablets provide a new gaming software platform but is offset by cannibalization and lower pricing.


Potentially challenged: Nintendo, Sony.

Cable/S
atellite

Enhanced video experience and rising broadband consumption.


Tablets offer a platform to improve video search and navigation, benefitting cable and satellite.


Rising broadband consumption in the home driven by tablets will benefit cable.

Media

A game changer for content owners.


Larger audience creates additional advertising opportunities for TV networks.


Potential to drive incremental rental activity for movie studios.


Ability to recreate a true layout with interactive content offers oppor
tunity for magazines.


3.

Work out a Sales Plan which should include how to create a distribution network with channel
partners, the sales Budget and the promotion plans.


Distribution is one of the

classic “4 Ps” of marketing (product, promotion, price, placement a.k.a.
“distribution”). It’s a key element in your entire marketing strategy


it helps you expand your reach
and grow revenue.

B2B and B2C companies can sell through a single channel or th
rough multiple channels that may include:



Wholesaler/Distributor



Direct/Internet



Direct/Catalog



Direct/Sales Team



Value
-
Added Reseller (VAR)



Consultant



Dealer





Retail



Sales Agent/Manufacturer’s Rep

Here are three distribution examples:

DIRECT TO E
ND USERS

SELL THROUGH A DEALER
NETWORK

SELL THROUGH A VAR (VALUE
-
ADDED RESELLER)

You have a sales team that sells
directly to Fortune 100
companies.

You have a second product line
for small businesses. Instead of
You sell a product through a
geographical network of
dealers who sell to end
-
users in
their areas. The dealers may
service the product
as well.

You sell a product to a company
who bundles it with services or
other products and resells it.
That compa
ny is called a Value
Added Reseller (VAR) because it
using your sales team, you sell
this line

directly to end
-
users
through your website and
marketing campaigns.

You have two markets and two
distribution channels.

Your dealers are essentially
your customers, and you have a
strong program to train and
support them with marketing
campaigns and materials.

adds value to your product.

A VAR may work with an end
-
user to determine the right
products and configurations,
and then implement a system
that includes your product.

To create a good distribution pro
gram, focus on the needs of your end
-
users.



If users need personalized service, you can utilize a local dealer network or reseller program to
provide that service.



If your users prefer to buy online, you can create an e
-
commerce website and fulfillment sy
stem
and sell direct; you can also sell to another online retailer or distributor that can offer your
product on their own sites.



You can build your own specialized sales team to prospect and close deals directly with
customers.

Wholesalers, resellers, re
tailers, consultants and agents already have resources and relationships to
quickly bring your product to market. If you sell through these groups instead of (or in addition to)
selling direct, treat the entire channel as a group of customers


and they ar
e, since they’re buying your
product and reselling it. Understand their needs and deliver strong marketing programs; you’ll maximize
everyone’s revenue in the process.







Best Case

Neutral Case

Worst Case

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through wholesal
ers, VARs or
other channel partners, you’ve
created many successful
marketing programs to drive
revenue through your channel
and you’re committed to their
success.

building an alternative
distribution method


one that
could help you grow more
aggressiv
ely than you are
growing now.

need to buy your product.

Your current system may also
be difficult to manage. For
example, channel members
may not sell at your suggested
price; they don’t follow up on
leads you deliver; they don’t
service the product very well
and
you’re taking calls from
angry customers.

Distribution Channels Key Concepts & Steps

Before you begin

You can evaluate a new distribution channel or improve your channel
marketing / management at any time. It’s especially important to think about
distribution when you’re going after a new customer segment, releasing a new
product, or looking for ways to aggressively grow your business.

Evaluate how your end
-
users need to buy

Your distribution strategy should deliver the information and service your

prospects need. For each
customer segment, consider:



How and where they prefer to buy



Whether they need personalized education and training



Whether they need additional products or services to be used along with yours



Whether your product needs to be c
ustomized or installed



Whether your product needs to be serviced



Match end
-
user needs to a distribution strategy



If your end
-
users need a great deal of information and service, your company can deliver it
directly through a sales force. You can also bui
ld a channel of qualified resellers or consultants.
The size of the market and your price will probably dictate which scenario is best.



If the buying process is fairly straightforward, you can sell direct via a website/catalog or
perhaps through a wholesale/retail structure. You may also use an inbound telemarketing group
or a field sales team.



If you need complete control over your produ
ct’s delivery and service, adding a channel
probably isn’t right for you.


Identify natural partners

If you want to grow beyond the direct model, look for companies that have relationships with your end
-
users. If consultants, wholesalers or retailers alread
y reach your customer base, they’re natural
partners.

Build your distribution channel

If you’re setting up a distribution channel with one or more partners, treat it as a sales process:



Approach the potential channel partner and “sell” the value of the par
tnership.



Establish goals, service requirements and reporting requirements.



Deliver inventory (if necessary) and sales/support materials.



Train the partner.



Run promotions and programs to support the partner and help them increase sales.

Minimize prici
ng conflicts

If you use multiple channels, carefully map out the price for each step in your channel and include a fair
profit for each type of partner. Then compare the price that the end
-
user will pay; if a customer can buy
from one channel at a lower pr
ice than from another, your partners will rightfully have concerns. Pricing
conflict is common, and it can jeopardize your entire strategy, so do your best to map out the price at
each step and develop the best solution possible.

Drive revenue through the
channel

Service your channel partners as you’d service your best customers and work with them to drive
revenue. For example, provide them with marketing funds or materials to promote your products; run
campaigns to generate leads and forward them to your p
artners.





After Distribution Channels

As you’re creating a new channel you’ll need a
pricing strategy

and a
sales
process
. When your channel is up and running, you can start launching
marketing campaigns

to channel partners and en
d
-
users.