The Pharma Sim Case Period Review Prepared by

The Pharma. Sim Case Period Review Prepared by: Nik Rentas Turgut Tezir August 10, 2006

OUTLINE n n n n General Period Review Period Performance Period 4 Period 5 Period 6 Period 7 Conclusions I & II

General Period Review PERIOD 0 1 Introduce New Products Dryup Coldcure Advertising Spending 3. 3 Mil. +17. 7 Mil. Promotional Spending +1 Mil +17 Mil 2 3 4 5 6 7 8 Besthelp+ Allround+ Curall Children Ethick End+ All. Star Allright +7. 3 Mil +17. 2 Mil +14. 4 Mil +12. 3 Mil +21. 3 Mil +2. 7 Mil +7. 3 Mil +3. 5 Mil +7. 8 Mil +3. 7 Mil +10. 1 Mil +3 Mil +4. 1 Mil +1. 5 Mil +13. 7% +13. 6% +57. 4 Mil 2. 4% +106. 2 Mil 4. 4% +223. 8 Mil 7. 3% +164. 1 Mil 5% +316 Mil 9. 2% SALE Mass Merchandiser +9% Retail 82. 1 Mil 4. 3% Convenience Grocery 380. 7 Mil 19. 1% +19% +168. 4 Mil 6. 6% +36. 4% +345. 6 Mil 12. 8% -21. 8% 9. 9% +29. 1% +7. 5%

General Period Review Period 0 1 2 3 4 5 6 7 8 Net Income (millions$) 67 91 69 69 52 112 206 98 141 Compare Groups in Class* 0 10 14 8 10 2 2 5 3 Stock Price ($) 38. 35 50. 71 39. 14 37. 5 35. 42 52. 98 57. 7 61. 75 80. 68 Compare Groups in Class* 0 9 14 7 8 5 4 4 4 Return on Expenditures (%) 203. 6 257. 3 182. 7 200. 8 90. 1 217. 6 139. 4 132. 8 192. 7 Compare Groups in Class* 0 13 11 5 12 2 5 8 3 Return on Sales (%) 18. 9 21. 3 16. 9 11. 7 24. 6 18. 4 16. 0 19. 9 Compare Groups in Class* 0 12 13 10 13 4 3 6 3 Share of Manufacturer Sales (%) 23. 8 23. 4 21. 9 20. 8 21. 4 22. 0 22. 8 22. 4 24. 6 Compare Groups in Class* 0 8 7 7 5 5 5 Cumulative Net Income (millions$) 67 158 227 296 349 460 567 665 806 Compare Groups in Class* 0 10 13 11 11 8 7 5 5

General Period Review

Period Performance n n Period 1 was below average compared to groups in the class. Period 8 was above average n We were in the top 3 best company based on n n We were in the top 4 best company based on n n net income, return on expenditures and return on sale. stock price. We were in the top 5 best company based on n n share of manufacturer sales, cumulative net income

Period 4 Allround + 12 hr Multi Capsule & Stronger Net Income and Stock Price climb Advertising & promotional spending high Grocery and retail store sale grew Curall has also requested permission to sell children cough medicine

Period 5 Advertising & promotional spending high Product awareness high but declining New competitor products introduced with better marketing strategies, more focused segmentation. Ethik introduced End+ Net Income increased almost double size Stock prices increased Retail sales grew by 12. 8%

Period 6 n n n Allright children medicine introduced Total advertising and promotional spending increased Sales force increases caused major improvements Net Income and Stock prices grew Retail sales grew by 7. 3% Convenience store sales decreased 21. 8 %

Period 7 n n Advertising and promotional spending increased We continue to increase sales force Grocery stores showed the strongest growth in this period with an increase of 7. 5%. Retail sales grew by $164. 1 million.

Conclusions I n n n An average advertisement and promotional allowance help us to increase product awareness although didn’t help retention. The best advertising company had a marginal effect. We switched over cheaper advertisement company to reduce advertising cost. Through cost cutting in advertising we increased our sales force to attempt to match that of B&B. Doing so made retail sales skyrocket and brought us within 10 million dollars of B&B.

Conclusions II n Through cost cutting in advertising we increased our sales force from period 6 on to attempt to match that of B&B. Doing so made retail sales skyrocket in period 8 bringing Allstar . within 103 million dollars of B&B in retail sales Period 7 Period 8 Allstar B & B Retail Sales 805. 9 943. 9 Retail Sales 925. 3 1028. 3 615 729 Manufacturer Sales 706. 1 794. 5 Promotional Allowance 116. 5 111. 9 Promotional Allowance 134 122 Cost of Goods Sold 219. 8 192. 7 Cost of Goods Sold 240 219. 1 Gross Margin 278. 6 424. 4 Gross Margin 332. 1 453. 4 16. 5 21. 7 Cons. & Trade Promo. 15 23. 8 43 50. 6 Advertising 44 55. 7 Sales Force 14. 6 21. 1 Sales Force 14 22. 9 Administration 16. 9 19. 5 Administration 18. 8 21. 2 187. 7 311. 5 Contrib. after Mkting 240. 3 329. 8 Fixed Costs 89. 3 109. 5 Fixed Costs 99. 7 113. 5 Net Income 98. 4 202 Net Income 140. 6 216. 3 Stock Price 61. 75 129. 95 Stock Price 80. 68 144. 47 Capacity Utilization 108. 9 96. 7 Capacity Utilization 100. 2 104. 6 Manufacturer Sales Cons. & Trade Promo. Advertising Contrib. after Mkting