Rosetta Stone 2011 Annual Report Download - page 8

Table of Contents
online services. The content of TOTALe and Version 4 TOTALe are functionally the same. We offer our customers access and payment alternatives without
differentiating the learning experience. We launched Rosetta Stone Version 4 TOTALe in Japan in February 2011, in the United Kingdom in May of 2011 and
in South Korea in July of 2011.
In July 2011, we introduced in South Korea, ReFLEX, an online subscription language-learning solution designed specifically for English learners who
seek to improve their listening and speaking skills with an online course and coach-led practice sessions. We intend to launch this solution in Japan in 2012.
We also provide an online peer-to-peer practice environment called SharedTalk, at www.sharedtalk.com, where registered language learners meet for
language exchange to practice their foreign language skills. During 2011, we had more than 154,000 active SharedTalk users.
In addition, we have developed Rosetta Stone products for the exclusive use of Native communities to help promote revitalization of their endangered
languages, including Mohawk, Chitimacha, Inuttitut, Iñupiaq and Navajo. In 2011, we stopped accepting applications to develop new endangered languages
while we evaluate the program.
Our innovative solutions have received numerous awards and recognitions, including a finalist for the 2011 SXSW Interactive Awards in the Education
Resource category for Rosetta Stone Version 4 TOTALe, a 2010 Consumer Electronics Show (CES) Innovation Design and Engineering award in the online
retail category for Rosetta Stone TOTALe, an honorable mention for the Adobe MAX 2010 Awards for Rosetta Stone TOTALe, a 2010 United States Distance
Learning Association (USDLA) silver award in the Best Practices in Distance Learning Programming category for Rosetta Stone Classroom Version 3, a
2010 Best Educational Software Award (BESSIE) in the Best Multi-Level Foreign Language Website category for Rosetta Stone Classroom Version 3, a
2010 Chief Learning Officer Learning in Practice Award (bronze for excellence in e-learning) for Rosetta Stone Enterprise Version 3, the 2010 Top Training
and Simulation Companies list for companies that have made a significant impact on the military training industry by Military Training Technology, the 2009
National Parenting Publications Awards (NAPPA) Honors Award for Rosetta Stone Version 3 Personal Edition, four classroom specific awards in 2009 for
Classroom Version 3, two enterprise specific awards in 2009, the 2009 BESSIE in the Best Multi-Level Foreign Language Website category for Rosetta Stone
Classroom Version 3, iParenting Media Excellent Product of 2009 award in the software category for Rosetta Stone Personal Edition Version 3, the 2009
Children's Technology Review Editor's Choice Award for Rosetta Stone Personal Edition Version 3, the 2009 Parent Tested Parent Approved (PTPA) Media
Awards for Rosetta Stone Personal Edition Version 3, and the 2009 Creative Child Media of the Year Award in the educational media category for Rosetta
Stone Personal Edition Version 3.
Our Strategy
Our goal is to strengthen our position as a leading provider of language-learning solutions and address the challenges facing our company. Our
challenges include a changing U.S. consumer market, an extremely competitive marketplace, a tightened media environment and evolving product delivery
platforms. These factors have contributed to a decline in our U.S. consumer bookings from 2009 to 2011. We intend to strengthen our position and address
our challenges through the following strategies:
Reposition U.S. Consumer Business and Increase U.S. Market Share. We are evaluating changes in our marketing, pricing, packaging and delivery
methods to strengthen our brand and improve the relevance of our offering. In addition, we are evaluating developing more targeted language-learning
solutions for learners with different needs. We are also considering diversifying our product portfolio and marketing to address new segments in the language-
learning market. In addition, we are exploring ways to provide greater lifetime values to customers, such as the introduction of Version 4 TOTALe, mobile
applications and other software solutions to generate greater revenue per customer over time.
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