1979 Roxor International Mother Company Geneva

1982 Recuited Ronald Tan Marketing Whiz Kid Launched the popular "Quasar" Brand of watch for Singa

1980 Roxor Watch Company Pty Ltd Subsidiary Company Melbourne, assemTerritory for reporting purposes
2 District
1980-1982 District 1: NSW; ACT; Queenslan Manager:David Smith
District 2: Victoria; South Australia, Tasmania

Appendix II
Ronald segmentation of watches into 6 types
1 Basic small manufacturers Hong Kong, Taiwan and Korea
2 Standard
3 Popular
4 Advanced
5 Superior
6 State of Art CASIO
1981 1982 1983
? Type B Standard +48% +51%
? Type C Popular 27
? Type D Advanced +30% +46%

Competitors
Seiko
Casio
Roxor "quality swiss product at a reasonable price due to production efficiencies

Late 1982,Test marketed the 3 product types in the ff territories:

1 North America
2 Far-East Asia
3 Middle East preferred mechanical rather than
Europe & Australia Roxor performed well

Product Type: B C D
1 Variable Assembly Cost $ $ $
Componen Cost p.u. 10.00 10.50 12.00
Labor Cost p.u. 6.00 6.50 7.00
Variable Prod O/H p.u 1.00 1.00 1.00
17.00 18.00 20.00

2 Non-Assembly Variable Costs 0.50 0.50 0.50

Internal Transport p.u. 0.90 1.00 1.15
 Warranty Inspection p.u. 0.30 0.30 0.35
Pacxkaging & Instructions p.u. 1.70 1.80 2.00

3 Stock Holding Costs:

(3% of V. Production Costs) 0.51 0.54 0.60

4 Total Variable Costs 19.21 20.34 22.60

Brand of watch for Singapore based company

porting purposes

SEIKO
1983
price increases thru price cutting
Intense
60 price increases thru price cutting

duction efficiencies
Decisions required #1
Product Code Target Market Price Promotion

TV Advertising,
Radio,Newspapers &
Q General Public Cost + Pricing Magazines
Brochures,Flyers,Schools,
M Student & Professionals Cost + Pricing Offices

N Atheletes Cost + Pricing Brochures,Flyers, Gym

TV Advertising,
Radio,Newspapers &
R General Public Skimming Price Magazines

Decisions required #2
Product Type Exp. Value S.D Realized Value
B 5,700.00 200.00 5,500.00
C 1,600.00 68.00 1,532.00
D 10,000.00 575.00 9,425.00
Q 6,000.00 1,400.00 4,600.00
R 4,000.00 140.00 3,860.00

Product Option Price Demand

A 80.00 2,400.00
Q B 50.00 6,000.00
C 45.00 7,900.00
A 20.00 55,000.00
R B 22.00 5,200.00
C 25.00 4,000.00

PRODUCTS
Items
D Q R
Revenue 400,000 300,000 100,000
Variable Production Cost - 226,000 - 102,000 - 24,000
Product Contribution 174,000 198,000 76,000
Segment Variable Cost
Transportation - 64,000
Paper - 2,160
Commission - 32,000
Debtor - 15,000
Net Contribution Margin
Fixed Cost
Promotional Cost
Segment Contribution Margin
 Distribution

Store/Retail/Wholesale
Store/Retail/Wholesale/
Physical Distribution
Store/Retail/Wholesale/
Physical Distribution

Store/Retail/Wholesale

Exp. Price
26.00
28.00
40.00
50.00
25.00

Deviation
600.00
1,400.00
2,050.00
200.00
190.00
140.00

Total
800,000
- 352,000
448,000

- 113,160
334,840
- 210,000
- 115,000
9,840.00