Research Simulation/Res341

Research Simulation

RES341

University of Phoenix

October 29, 2007

Memo

To: Mr. Howard Grey, CEO

CC: Mr. Jean Dubois, VP Mechanical Watch

Division

Ms. Amanda Hamilton, VP Marketing

Ms. Uma Gardner, VP Production

From Quality Control (QC)

Date: 09/01/2007

Re: Comprehensive Sales Research Report

The purpose of this memo is to inform you of that the Comprehensive Sales Research Report for the mechanical watches division has been completed and is ready to be put in motion.

The meeting held in June brought to light two issues that you requested be addressed immediately. The first issue being the drop in sales; the second is the number of mechanical watches rejected by the Swiss Official Chronometer Control (SOCC). Based on the following recommendations that the board presented:

„X How do consumers view AquineÐŽ¦s mechanical

watch?

„X How are consumers reacting to current

advertisement?

„X Check statistics for the SOCC test

„X Quality of Aquine watches vs. other Swiss

watches

„X Formalization of the internal QC process

„X Reduce SOCC rejection rate to less than 10%

Questionnaires were sent to 500 mechanical watch owners and the results were found to be 60 % in favor of SOCC certification and those consumers planning to purchase a new watch 78% would be willing to pay a premium for a chronometer. Just as many questionnaires were also sent to consumers including dealers and the outcome was extremely positive. 70% stated that their intention to purchase an Aquine watch had risen due to our current advertisements featuring Krysten Neiman. At this time the market is acting favorable; therefore no further action required.

The recommendation voiced by Ms. Amanda Hamilton; to focus on water-resistant capabilities and the purchase of deep-water simulation unit, was tabled at this time. QCÐŽ¦s focus was placed on the reasons for the SOCC certification failure.

The research revealed that of the 37,500 watches sent for certification just this year 25,125 were rejected.