DEBRIEF FOR PERIOD 2

Rmi TRIOLET & Christophe POTTIER

STRATX

1/30/2003

Copyright 2003 by STRATX

Congratulations !!!

743 teams survived the

second decision round.

114

Asia/Pacific 1
Asia/Pacific 2

83
188

Europe 1

25 teams did not submit

their decisions in due time
and thus were disqualified.

Europe 2

129

North America

129

Latin America
Other Countries

1 team is on hold until Friday

morning

89
11

3%
97%

1/30/2003

We received over 400 hotline

emails!! And we responded to all of
them.

Copyright 2003 by STRATX

Still Competing

Disqualified Period 2

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

1/30/2003

11%
89%

SPI > 1000

SPI < 1000

39%
61%

Market Share Increased (%U)

Copyright 2003 by STRATX

Market Share Decreased (%U)

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

8%
46%

1 Development

1/30/2003

2 Developments

Copyright 2003 by STRATX

46%

No development

Budget invested in development

projects

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

How to read this chart :

30 of all development
projects initiated by
teams have cost around
M$ 3.0
1/30/2003

Copyright 2003 by STRATX

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

Relationship between Unit Market

Share and Price (1/2)
This chart shows the Price
($) and Market Share (%U)
of one of the two brands
PEAK and PAPAYA for all
teams in Period 2.
There is clear relationship:
Market Share in volume
increases when Price
decreases.

Linear regression
High Prices

Low Prices
1/30/2003

Copyright 2003 by STRATX

Relationship between Unit Market

Share and Price (2/2)
Same chart as previous
slide, for the other brand

High Prices

Low Prices
1/30/2003

Copyright 2003 by STRATX

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 all
teams in Period 2.

Polynomial regression

There seems to be an
optimal price between the
two extremes.
But some teams are doing
quite well with higher or
lower prices : Price does
not explain everything !!

High Prices

Low Prices
1/30/2003

Copyright 2003 by STRATX

Relationship between Brand

Contribution and Price (2/2)
Same chart as previous
slide, for the other brand

High Prices

Low Prices
1/30/2003

Copyright 2003 by STRATX

10

Average Brand Market Shares by

Segment (%U)
PEAK is targeted at
Medium Income
Families and Singles

PAPAYA is targeted at
High Earners and
Affluent Families

1/30/2003

Copyright 2003 by STRATX

11

The 20 Top Brand Contributions (M$)

Brand PAPAYA

1/30/2003

Copyright 2003 by STRATX

12

The 20 Top Brand Contributions (M$)

Brand PEAK

1/30/2003

Copyright 2003 by STRATX

13

Share Price Index Top 20 Teams

1/30/2003

Copyright 2003 by STRATX

14

Share Price Index

Top 3 Teams in each Region

1/30/2003

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15

Share Price Index

Selection of 20 Teams

1/30/2003

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16

Relationship Between
Net Contribution and SPI

1/30/2003

Copyright 2003 by STRATX

17