Statistic Simulation Memo

MEMO

To: Aquine Shareholders

From:

Date:

Re: Declining Market Share

Message:

Aquine Industries has reached an all time low market share of 5% in the first quarter of this year for the mechanical watch division. What we need to do is find out why this division is losing market share, why sales are going down and why so many watches are being rejected by the Swiss Official Chronometer Control.

The declining market share and bad sales could be the consequence of an unsuccessful advertising campaign. Aquine Industries has hired Krysten Neiman as our spokesperson and we did a deep research through a customer survey, in which there were 500 consumers who responded. To find out if our advertisement campaign was working out in the real world. The following was what we found out:

• 59% say advertising appeals to them

• 67% like Krysten Neiman

• 66% are proud to wear a Aquine Chronometer

• 61% say they are more likely to purchase an Aquine Chronometer after seeing the ad

• 60% thought the SOCC certification is important

• 78% are willing to pay more for the certification

After looking and analyzing these results, we determined that our advertising methods were not the problem for the declining sales and we needed to look into other areas to find our problem.

We started to look into quality and craftsmanship. Our research began with the certification process to see how many of our watches were rejected and why. For