DEBRIEF FOR PERIOD 6. Semi-Finals. The STRATX Team

Transcription

1 DEBRIEF FOR PERIOD 6 Semi-Finals The STRATX Team 1

2 300 Teams were selected to participate in the semi-finals But not all of them made it to the end of the semi-finals! A few teams did not submit their Round 6 decisions and/or their Business Plan in time and thus were disqualified 38 countries were represented in the semi-finals Number of Teams at the end of the semi-finals 9% 13% MBA 41% 27% 9% Zone 1 Zone 2 Zone 3 Zone 4 UNDERGRAD 59% 9% Zone 5 Zone 6 Zone 7 8% 11% Zone 8 14% 2

3 Shareholders Value Creation All teams have created value since Round 0 (SPI > 1000) Actually, almost all teams (95%) have more than doubled Shareholders value since Round 0 25 teams have even multiplied the value of their Company by more than 3. Congratulations!! 5% 6% 5% 31% 53% SPI < 2000 SPI in [2000,2500[ SPI in [2500,3000[ SPI in [3000,3500[ SPI >

4 Market Penetration Thanks to new product launches, the overall penetration results have increased dramatically since Round 0, despite a tough competition from Diva, Bella and Vista All teams increased their market share in value since Round 0 All teams but 3 increased their market share in unit since Round 0 1% 0% 99% 100% Market Share Increased (%U) Market Share Decreased (%U) Market Share Increased (%$) Market Share Decreased (%$) 4

5 Size of brand portfolio All teams have launched at least one new brand during the six rounds. A majority of teams are marketing 4 or 5 brands in Round 6 On average, teams with the higher number of brands have the highest SPI Number of Teams Average SPI How to read this chart : 120 teams are marketing 5 brands The average SPI of teams marketing 3 brands is 2, brands 4 brands 5 brands

6 Growth rates and EBIT are fuelled by strong brands The five following slides demonstrate that all segments are attractive and can generate positive contributions However, three segments are very attractive: Singles, Affluent Families and Medium Income Families A coherent strategy that took into account the consumers needs was the key to success : Selecting an attractive segment (size, growth, unit contribution, ) Designing a good product through R&D, with high performance levels in the attributes stressed as important by consumers setting a price at an attractive level for the targeted segment by paying attention to market research, while allowing a good unit margin High investment in advertising to build brand awareness and equity Selecting the appropriate distribution channels, based on the shopping habits of target consumers And, not to forget, good planning to set production capacity at the right level Respecting the budget constraints, and investing your money wisely 6

7 Generating contribution with PUPPY The top 25 teams 7

8 Generating contribution with POLO The top 25 teams 8

9 Generating contribution with PINK The top 25 teams 9

10 Generating contribution with PARROT The top 25 teams 10

11 Generating contribution with PACIFIC The top 25 teams 11

12 How have we calculated the overall marks? The SPI s at the end of Round 6 were calculated by running the Round 6 decisions in the e-strat simulation The Business Plans were graded by a team of L Oréal senior executives For each category (Undergraduates and MBAs), the SPI s were scaled so as to give 100 points to the team that achieved the highest SPI at the end of Round 6 Similarly, for each category, the Business Plan grades were adjusted so as to give 100 points to the team that wrote the best Business Plan The overall marks were calculated by applying the ratio of 50:50 for the SPI and the Business Plans respectively 12

13 Share Price Index Top 20 Teams 13

14 More on the grading process The grading team included 20 senior executives from various L Oreal markets and business units. Their field of expertise range from strategy and marketing to finance, HR and general management. To ensure consistent and objective grading, a detailed grading grid was formulated for each section of the business plan. This grid cannot be made public in order to preserve fairness by not giving away any secrets to future e-strat players. Grades accorded to different teams vary considerably. For instance, a few teams did not give any Round 6 forecasts, while the best predictions were accurate to 0.1%!! The best Business Plans were those that provided clear, accurate and full responses to all points specified in each section of the Business Plan Guide. Attention to detail, quality of presentation and an overall professionalism were rewarded for the final section. The best Business Plans of each grader were compared by the L Oréal e-strat Challenge Committee during a final day-long meeting to guarantee consistency in grading. 14

15 Top 30 Business Plans MBA s 15

16 Top 30 Business Plans Undergraduates 16

17 How was your SPI and your BP grade combined? SPI The highest SPI for MBA teams is 4,225, achieved by team ENERGYSTAR This team therefore obtains the maximum score of 100 The formula for all other MBA teams is Scaled SPI = 100 x SPI / 4,225 For example: team BELLEVIE with a SPI of 2,129 scores 50.4 points The same principles were used for Undergraduate teams Business Plan The highest BP grade for Undergraduate teams is 89, achieved by team JIS This team therefore obtains the maximum score of 100 The formula for all other Undergraduate teams is Scaled BP Grade = 100 x BP Grade / 89 For example: team EBUSINESS with a BP grade of 55 scores 61.8 points The same principles were used for MBA teams 17

18 Application of the ratio The formula to calculate the final result is also very simple Final Result = (0.50 x Scaled SPI) + (0.50 x Scaled BP) 18

19 The Top 50 Final Results : SPI + BP MBA s (1/2) 19

20 The Top 50 Final Results : SPI + BP MBA s (2/2) 20

21 The Top 50 Final Results : SPI + BP Undergraduates (1/2) 21

22 The Top 50 Final Results : SPI + BP Undergraduates (2/2) 22

23 We wish the best of luck to all the finalists that will compete in Paris We want to congratulate each and every team for its participation in the fifth L Oréal e-strat Challenge We have very much enjoyed the privilege, and the extremely difficult task, of choosing between the excellent teams of this year s Challenge On many occasions we have greatly appreciated receiving your positive feedback and helpful comments On behalf of the L Oréal and StratX teams, we wish you all the best for your studies, exams (!) and your future career 23

24 And now discover the human touch behind e-strat Stéphanie, StratX Sabine, StratX Clémence, L Oréal Rémi, StratX Christina & Silke, L Oréal 24

25 Good Luck to the 16 Finalists! 25