Debrief-2

1/30/2003 Copyright 2003 by STRATX 1

DEBRIEF FOR PERIOD 2

Rmi TRIOLET & Christophe POTTIERSTRATX

1/30/2003 Copyright 2003 by STRATX 2

Congratulations !!!

743 teams survived the second decision round.

25 teams did not submit their decisions in due time and thus were disqualified.

1 team is on hold until Friday morning

We received over 400 hotline emails!! And we responded to all of them.

11

89

129

129

188

83

114

Other CountriesLatin America

North AmericaEurope 2Europe 1

Asia/Pacific 2Asia/Pacific 1

97%

3%

Still Competing Disqualified Period 2

1/30/2003 Copyright 2003 by STRATX 3

Shareholders Value Creation

664 teams created shareholders value and have a Share Price Index over 1000. Congratulations !!

The other 79 teams destroyed value and now have a SPI below 1000. Rethink your strategy !!

452 teams increased their market share (in units, from period 0)

291 teams decreased their market share (in units , from period 0).

Beware of short-term decisions

89%

11%

SPI > 1000 SPI < 1000

61%39%

Market Share Increased (%U) Market Share Decreased (%U)

1/30/2003 Copyright 2003 by STRATX 4

Number of new formulas developed

346 teams decided to develop one formula 340 teams decided to develop two formula 57 teams made no development at all

46%46%

8%

1 Development 2 Developments No development

1/30/2003 Copyright 2003 by STRATX 5

Budget invested in development projects

On average, teams have spent M$ 1.5 per new formula

How to read this chart : 30 of all developmentprojects initiated by teams have cost aroundM$ 3.0

1/30/2003 Copyright 2003 by STRATX 6

New Brand Launch in Period 3

640 teams have decided to launch a new brand in Period 3 These teams will manage 3 brands in Period 3 and thus

have a minimum budget of M$ 60. The other teams will continue to market their initial 2 brands

1/30/2003 Copyright 2003 by STRATX 7

Relationship between Unit MarketShare and Price (1/2)

This chart shows the Price($) and Market Share (%U) of one of the two brands PEAK and PAPAYA for allteams in Period 2.

There is clear relationship: Market Share in volume increases when Pricedecreases.

Low Prices High Prices

Linear regression

1/30/2003 Copyright 2003 by STRATX 8

Relationship between Unit MarketShare and Price (2/2)

Same chart as previousslide, for the other brand

Low Prices High Prices

1/30/2003 Copyright 2003 by STRATX 9

Relationship between Brand Contribution and Price (1/2)

This chart shows the Price($) and Brand Contribution ($) of one of the two brands PEAK and PAPAYA for allteams in Period 2.

There seems to be an optimal price between thetwo extremes.

But some teams are doingquite well with higher or lower prices : Price doesnot explain everything !!

Low Prices High Prices

Polynomial regression

1/30/2003 Copyright 2003 by STRATX 10

Relationship between Brand Contribution and Price (2/2)

Low Prices High Prices

Same chart as previousslide, for the other brand

1/30/2003 Copyright 2003 by STRATX 11

Average Brand Market Shares by Segment (%U)

PEAK is targeted atMedium IncomeFamilies and Singles

PAPAYA is targeted atHigh Earners andAffluent Families

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The 20 Top Brand Contributions (M$)Brand PAPAYA

1/30/2003 Copyright 2003 by STRATX 13

The 20 Top Brand Contributions (M$)Brand PEAK

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Share Price Index Top 20 Teams

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Share Price IndexTop 3 Teams in each Region

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Share Price IndexSelection of 20 Teams

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Relationship BetweenNet Contribution and SPI

Congratulations !!!Shareholders Value CreationNumber of new formulas developedBudget invested in development projectsNew Brand Launch in Period 3Relationship between Unit Market Share and Price (1/2)Relationship between Unit Market Share and Price (2/2)Relationship between Brand Contribution and Price (1/2)Relationship between Brand Contribution and Price (2/2)Average Brand Market Shares by Segment (%U)The 20 Top Brand Contributions (M$)Brand PAPAYAThe 20 Top Brand Contributions (M$)Brand PEAKShare Price Index Top 20 TeamsShare Price IndexTop 3 Teams in each RegionShare Price Index Selection of 20 TeamsRelationship BetweenNet Contribution and SPI