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Internal Analgesics Market Structure and Brand Equity

BrandEquity-September2004updatev14 - Excedrin

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Internal Analgesics Market Structure

and Brand Equity

2

Research Integration

This presentation draws from multiple pieces of research including:

- Market Structure Study

- Preference Segmentation

- Brand Equity Tracking

- Quarterly Segment-Based Panel Tracking

- Excedrin - Source of Volume

3

79.9

9.7

25.7

13.4

10.2

10.5

5.0

42.9

79.3

9.9

26.1

13.0

10.4

11.2

5.0

43.0

79.6

10.1

26.2

13.1

10.2

11.9

4.8

43.0

79.8

9.5

26.9

13.4

10.0

12.2

43.1

9.1

26.8

12.6

8.8 1

1.7

4.6

43.8

27.2

12.7

11.9

4.5

42.1

27.1

12.2

9.4 1

1.9

4.7

42.3

4.9

78.9

8.8

78.7

9.0

79.0

8.8

TTL

Analgesics

Excedrin Tylenol Advil Bayer Aleve Motrin Private Label

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04

• Category penetration is down slightly over the past 2 years.

• Excedrin, Advil and Bayer are down while Tylenol and Aleve have shown

penetration growth

Penetration Trends - Total HHs

Key Analgesics Brands

% Households Buying – Rolling 52-week periods

4

9.7

8.5

3.9

3.9

1.6

0.7

2.0

9.9

8.5

3.6 3.7

1.5

1.4

2.5

10.1

8.7

3.6 3.7

1.4 1

.9 2.4

9.5

8.6

3.4

3.3

1.4

2.4

1.4

9.1

8.5

3.2

3.0

1.2

2.8

1.0

8.8

8.2

3.2

3.1

1.2

2.5

0.8

8.8

8.2

3.3

3.0

1.2

2.4

0.8

Total Excedrin Excedrin x QT Excedrin Extra

Strength

Excedrin

Migraine

Excedrin PM Excedrin

AF/Tension

QuickTabs

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04

• Total Excedrin penetration has stabilized in latest quarter, down 1.3 versus year ago

.

• All Excedrin sub-brands are relatively stable in latest quarter.

Penetration Trends - Total HHs

Excedrin Franchise

% Households Buying – Rolling 52-week periods

5

9.2

9.2

4.0 4

.4

1.8

0.8

0.0

9.8

9.1

4.1

4.1

1.8

0.6

1.5

9.5

8.6

3.4

3.3

1.4

2.4

1.4

8.8

8.2

3.3

3.0

1.2

2.4

0.8

Total Excedrin Excedrin x QT Excedrin Extra

Strength

Excedrin

Migraine

Excedrin PM Excedrin

AF/Tension

QuickTabs

Q4 '01 Q4 '02 Q4 '03 Q3 '04

• Impact of QT was short-term (Q4 ’02), decline began in ’03, offset somewhat by

Tension.

• Penetration Growth from Tension is at the expense of Migraine and Parent (also

PM).

Penetration Trends - Total HHs

Excedrin Franchise

% Households Buying – Rolling 52-week periods

6

What is Market Structure?

• Market Structure

- is a description of the levels at which products in a given market

compete with one another

– is a behaviorally-based analysis that evaluates and orders product attributes.

– examines product purchases among households over an extended period of time.

– reflects how much purchasing behavior each attribute explains.

• Attribute hierarchies are based on actual purchase patterns not stated importance to consumers.

• Behavioral Market Structure is automatic and unconscious.

– Need to understand where attitudes and behavior align and where they don’t

7

Market Structure Provides Important Insights

• …Market Structure as a way to manage my business

• What are the largest influencers in the market that drive behavior?

• What is the competitive landscape?

• What other key influences exist in the market?

• Where are the biggest opportunities for new products?

• Which is the most efficient way to spend (e.g. brand or sub-brand)?

• How can our current products best compete?

8

Market Structure – Executive Summary

• Brand is the key driver in the analgesics category.

– Advertise based on brand

– Build merchandising based on Brand blocking

• Ingredient may be the key driver for switching within the franchise, while at the same time may be a barrier of trial for non-users.

- While consumers recognize there are ingredient differences, they are not focused on actual ingredients and it is not surprising to see ingredients linked to brand as key drivers.

9

Methodology and Parameters

10

Excedrin / Analgesics Category Structure Details

• Sample Size:

– 34,951 Households (Structure component excludes One Time Buyers)

• Purchases:

– 295,687 units across 240,849 trips

• Data:

– ACNielsen Homescan Panel – 61,500 Panelists

• Geography:

– Total U.S. – All Outlets (food, drug, mass including Wal-Mart, Club, etc.).

• Time Period:

02/24/2002 thru 02/21/2004

- Typically, Market Structures are stable for a period of several years, changing only when a dramatic series of new product offerings are introduced to a category. Consumer segmentation can change as a function of manufacturer target activity.

• The Model evaluates household purchases across occasions to develop purchase patterns. Product characteristics are tracked to understand important drivers of purchase, leading to identification of purchase patterns for each household.

11

Analgesic Structure and Brand Detail

12

Attribute Weights

Total US – All Outlets Combined

4.5

9.8

12.8

15.9

18.4

38.6

Brand

Ingredient

Strength

Size

Special / Bonus

Pack

Form

• Brand and Ingredient

comprise 57% of purchase

activity.

• Importance of ingredient and

strength point to the

importance of sub-brands

(Deal)

Definition of Attribute Weight:

Attributes are unique characteristics by product, within the data, that identify each item purchased.

Weights are based on their relative contribution to purchase probability.

13

Brand is the highest level at which items in this category

compete, driven by their unique sub-brands Internal Analgesics Attribute Hierarchy Level 1

LEVEL 1

BRAND

38.6% Importance to Category

Brand A Brand B Brand C Brand D Brand E

LEVEL 1A SUB-BRAND

Sub-brand A Sub-brand B Sub-brand C Sub-brand D Sub-brand E

Implications:

Brand, as the primary driver in the structure, indicates that consumers are closely tied to their preferred brand (s).

- It is difficult to get a consumer to try a new brand unless a brand offers a unique benefit (e.g. Migraine) that the portfolio does not offer,

• Provide continuous support for Excedrin as the master brand vs sub-brand focus.

14

Brand is the highest level at which items in this category

compete, driven by their unique sub-brands Internal Analgesics Attribute Hierarchy Level 1

LEVEL 1

BRAND

38.6% Importance to Category

Brand A Brand B Brand C Brand D Brand E

LEVEL 1A SUB-BRAND

Sub-brand A Sub-brand B Sub-brand C Sub-brand D Sub-brand E

• New products will be driven by the positioning of the parent brand – For Excedrin stay within Headache pain – Body Aches and pains should be driven by another brand in the Consumer

Medicines portfolio (e.g. Bufferin). – Sub-brands carry all of the positives and negatives of the franchise.

15

LEVEL 1

BRAND

38.6% Attribute Importance

Brand A Brand B Brand C Brand D Brand E

LEVEL 1A SUB-BRAND

Sub-brand A Sub-brand B Sub-brand C Sub-brandD Sub-brand E

LEVEL 2 INGREDIENT

18.4% Attribute Importance

Acetaminophen Ibuprofen Aspirin Naproxen Other

Implications

Ingredient is the 2nd key driver and is closely tied to brand and sub-brand as each stands for a specific ingredient or combination of ingredients

- This unique position has moved brands, driven by their ingredient option, to specific portions of pain relief and need state.

For Excedrin, ingredient is linked to treating Strong Headache pain.

In order to move into other pain states, other ingredients ties to another brand is what is required. (e.g. Bufferin or a new product).

Ingredient is the second key driver of the market.

16

LEVEL 1

BRAND

38.6% Attribute Importance

Brand A Brand B Brand C Brand D Brand E

LEVEL 1A SUB-BRAND

Sub-brand A Sub-brand B Sub-brand C Sub-brand D Sub-brand E

LEVEL 2 INGREDIENT

18.4% Attribute Importance

Acetaminophen Ibuprofen Aspirin Naproxen Other

LEVEL 3 STRENGTH

15.9 % Attribute Importance

Regular Strength Extra Strength Low Dose Maximum Strength Other.

Implications:

- For Excedrin, is there an opportunity to broaden beyond Extra Strength/Strong into lower or moderate strengths?

- Is this the opportunity to leverage Bufferin for:

Minor Headache

Body Pain

Low Dose maintenance aspirin product to compete w/St. Josephs, etc.

At the 3rd level, strength is a mid-tier driver of purchase.

17

LEVEL 1

BRAND

38.6% Attribute Importance

Brand A Brand B Brand C Brand D Brand E

LEVEL 1A SUB-BRAND

Sub-brand P Sub-brand M Sub-brand T Sub-brand Q Sub-brand PM

LEVEL 2 INGREDIENT

18.4% Attribute Importance

Acetaminophen Ibuprofen Aspirin Naproxen Other

LEVEL 3 STRENGTH

15.9 % Attribute Importance

Regular Strength Extra Strength Low Dose Max Strength Other

LEVEL 4 SIZE

12.8% Attribute Importance

24CT 50CT 150CT 100Ct Other

At the 4th level, size is a factor in purchase criteria.

Implications: - To generate trial, while at the same time meeting the repeat purchasing needs of consumers, a range of sizes is required. - Assortment work indicates that each size (small vs medium vs large) fulfills specific needs at retail

18

1.9

1.61.8

1.5

2.01.9

1.5

2.0

Total Category Total Excedrin

24CT 50CT 100CT 250CT

• For the category, purchase frequency decreases for larger pack size (except for

100ct).

• For Excedrin, purchase frequency increases with larger pack size, possibly due to

more loyal and aggressive users purchasing the larger sizes.

Excedrin Franchise

Purchase Frequency – 52 Week Ending 4/3/04

19

LEVEL 1

BRAND

38.6% Attribute Importance

Brand A Brand B Brand C Brand D Brand E

LEVEL 1A SUB-BRAND

Sub-brand P Sub-brand M Sub-brand T Sub-brand Q Sub-brand PM

LEVEL 2 INGREDIENT

18.4% Attribute Importance

Acetaminophen Ibuprofen Aspirin Naproxen Other

LEVEL 3 STRENGTH

15.9 % Attribute Importance

Regular Strength Extra Strength Low Dose Maximum Strength. Other

LEVEL 4 SIZE

12.8% Attribute Imoportance

24CT 50CT 150CT 100Ct Other

LEVEL 5 DEAL

9.8% Attribute Importance

Deal

(Free Goods)

Non-Deal

(No Free Goods)

At the 5th level, Deal is not a strong category attribute

compared to other drivers.

Implications: - A significant portion of Dealing is likely subsidizing existing brand buyers rather than resulting in

significant amounts of trial generation/positive brand shifting. - However, some dealing is important in context to other brands for those consumers looking for

“value” comparisons.

20

LEVEL 1

BRAND

38.6% Attribute Importance

Brand A Brand B Brand C Brand D Brand E

LEVEL 1A SUB-BRAND

Sub-brand P Sub-brand M Sub-brand T Sub-brand Q Sub-brand PM

LEVEL 2 INGREDIENT

18.4% Attribute Importance

Acetaminophen Ibuprofen Aspirin Naproxen Other

LEVEL 3 STRENGTH

15.9 % Attribute Importance

Regular Strength Extra Strength Low Dose Maximum Strength. Other

LEVEL 4 SIZE

12.8% Attribute Imoportance

24CT 50CT 150CT 100Ct Other

LEVEL 5 DEAL

9.8% Attribute Importance

Deal

(Free Goods)

Non-Deal

(No Free Goods)

Level 6 Form

4.5% Attribute Importance

Tablet Other Liqud LiquiGel GelTab/Cap Caplet

Implication: - Form is not as critical a driver as originally thought - While form variety is somewhat important, the basic forms look to be highly interchangeable. Additional forms of the same sub-brands will do little to drive incremental volume. Tie a form to a clear benefit. e.g.

Faster Acting More Convenient

As a category driver, form is secondary across All Outlets at

Level 6

21

Within each specific outlet, Brand & Ingredient have the

highest Attribute Importance.

Brand is most important in

Food, Drug & Mass.

Within specific outlet,

recommendations for

refinement based on

consumer traffic should

include:

Brand blocking

Ingredient Type Variety

Strength Variety

Form variety in Drug

% Attribute Importance

Total US

Brand 39

Ingredient 19

Strength 16

Size 12

Spcl / Bonus 10

4

Food

40

19

17

9 11

4

Drug

36

18

16

9 16

5

Mass

42

19

17

11

6

5

Total US attribute weights provide opportunity to understand

general strategic alignment. However, Class of Trade dynamics

vary.

Form

22

Attribute Drivers Across Key Brands After brand/ingredient/strength are selected, most brands are Deal of Form-driven.

* Parent = Primary Sub-brand within each Brand

Excedrin Tylenol Advil Aleve Bayer MotrinAdult Sub-Brand

Parent Form Form Form Deal/Non-Deal Deal Count

Tension Non-Deal - - - - -

Migraine Deal - Deal - - -

PM Deal Count - - Form -

Arthritis - Count - - Form -

X-Strength/Max - Form - - Non-Deal -

8 Hour - Deal - - - -

Back&Body/Calcium - - - - Deal -

Low Dose - - - - Form -

23

Equity Tracker / Mapping

24

Executive Summary – Equity Tracker / Mapping:

• Without top-of-mind or Total Unaided Awareness driving purchase intent, it can be concluded

that marketing efforts aren’t generating significant ‘product trial’. This idea is also present

within the market structure study.

• For Excedrin, neither the total population or the AMB exhibited any significant changes in

awareness. This is a continuation of a theme that MRD identified last quarter. Satisfaction is

also declining among AMB. Advertising aimed toward the AMB needs to be more

crisply targeted or, the AMB could be the wrong key target segment for Excedrin.

Brand Mapping Summary:

• Excedrin clearly linked to headache

- Non-users do not associate Excedrin to “works faster”

- Non-Users classify Advil as “appropriate for only severe headaches”

- Non-users do not associate Excedrin with minor headache relief----Bayer owns this

attribute

• “Makes you feel refreshed” is not clearly associated with one brand

- Non-users assign it to Aleve

- Users assign to Advil

25

Executive Summary – Equity Tracker / Mapping – (Continued):

• Excedrin Parent is differentiated from other sub-brand offerings.

- Migraine, PM and Tension are less differentiated as they more closely interact with each other

and competition.

26

No significant change in Top-of-Mind Awareness for Excedrin versus

last quarter (10%) or year-over-year (increased from 9% to 10%).

- Tylenol and Advil are down directionally from last quarter

Top-of-Mind Awareness

Total Population

36%

40%37%38%

23% 21%19%

21%

9%10% 11%

8%

4% 4% 4%5%

9%10% 10%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

7/29/02 -

8/25/02

8/26 -

9/22

9/23 -

10/20

10/21-11/17 11/4 -12/9 4/21-4/30 9/15/03-

9/30/03

1/02-1/15 4/13-4/26 7/22/04-

8/4/04

Tylenol

Advil

Aleve

Motrin

Excedrin

27

Excedrin’s unaided awareness is flat versus last quarter.

- Advil has declined significantly on this metric since last quarter.

- Aleve is up significantly in total unaided awareness year-over-year.

Total Unaided Awareness

Total Population

87% 88%

80%

90%

63%66%

55%61%

43%48%

31%

49%

29%33%

25%33%

40%43%

35%43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

7/29/02-

8/25/02

8/26 -

9/22

9/23 -

10/20

10/21-11/17 11/4-12/9 4/21-4/30 9/15/03-

9/30/03

1/2-1/15 4/13-4/26 7/22/04-

8/04/04

Tylenol

Advil

Aleve

Motrin

Excedrin

28

Total Awareness for Excedrin Tension Headache is down significantly versus

prior period (44% to 39%). This was due to lower ad spend for Excedrin Tension

Headache in early Q3 when compared to Q2. Excedrin Migraine is up (from 56%

to 60%). This is probably due to increased Migraine Rx advertising currently in

the marketplace

Total Awareness for Excedrin Sub-Brands

Total Population

82% 81%82%85%

56% 60%55%

74%

35% 33%30%

0%

71% 70%72%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

7/29/02

- 8/2502

9/23 -

10/20

11/4/02-

12/9/02

9/15/03-

9/30/03

4/13-

4/26

Excedrin Tension Headache

Excedrin Extra Strength

Excedrin Migraine

Excedrin QuickTabs

Excedrin PM

44% 39%

30%

29

There are no changes in Excedrin purchase intent from prior period.

- Advil is down significantly and Tylenol is down directionally from prior period

purchase intent

Purchase Intent

Total Population

18%

23%

21%

24%

17%18%

16%

14%17%17%

15%15%

9%

12%10%

13%

27%

31%

28%

32%

0%

5%

10%

15%

20%

25%

30%

35%

9/15/03-9/30/03 1/02/04-1/15/04 4/13/04-4/26/04 7/22/04-8/04/04

Total Advil

Aleve

Total Excedrin

Total Motrin

Total Tylenol

% Top Box

Purchase

Intent

30

Excedrin has a significantly higher percentage of satisfied users than that of

any of its key competitors

- Excedrin Satisfaction is significantly higher than prior period (45%-52%). Its

flat versus last year.

- Aleve is up directionally (41%-43%) year-over-year

Brand Satisfaction

Total Population

39%36%

39%

41% 43%42%43%42%

52%45%

48%53%

31%26%

28% 29%

35%37%34%

36%

0%

10%

20%

30%

40%

50%

60%

9/15/03-9/30/03 1/02/04-1/15/04 4/13/04-4/26/04 7/22/04-8/04/04

Advil

Aleve

Excedrin

Bayer

Tylenol

% Very

Satisfied

31

Excedrin satisfaction within AMB is significantly higher than that for all other

competing brands in this study and comparable to total population

- Excedrin is up directionally from 47% to 52% versus prior period

- Excedrin is down significantly in this metric versus year ago (61% to 52%); all other competing

brands are down directionally year-over-year

Brand Satisfaction

AMB

36%42%

41% 38%43%

37%

42%41%

61%

49% 47% 52%

27%28%23% 23%

38%37%38%34%

0%

10%

20%

30%

40%

50%

60%

70%

9/15/03-

9/30/03

1/02/04-

1/15/04

4/13/04-

4/26/04

7/22/04-

8/04/04

Advil

Aleve

Excedrin

Bayer

Tylenol

% Very

Satisfied

32

Category Mapping

• Helps to answer the question - What is the definition of the category we compete in?

– Product interaction is dependent on substitutability of attributes

• Structure is dependent upon repeat purchase activity

• Mapping provides way of evaluating the relationships between segments & brands

– Items in close proximity are of similar positioning or are of a higher likelihood to be cross-purchased / purchased in a complementary fashion.

• Purchase behavior exhibited by households buying items in the category as defined.

• Items that polarize do so because there is relatively little complementary purchasing with other products, or it represents a highly concentrated group of consumers that account for a large proportion of product class sales.

• Typical drivers are:

– Household Demographics

– Purchase Patterns

– Specialized usage / targets

– Etc.

33

Internal Analgesics – Category Map

34

Is especially effective for headache pain

Is the brand my doctor recommends

Relieves all types of headaches

Works faster than other

pain relievers

Is appropriate for only sever headaches

Has an unique formula

Is safe

Contains an effective combination of ingredients

Is innovative

Is the best medicine for headaches

Relieves minor headache pain

Fits w ith my lifestyle

Is a good value for the money

Is a reliable brand

Is gentle to the stomach

Makes me feel refreshed after taking

Is especially effective for

feverAdvil

Aleve

Bayer

Excedrin

Tylenol

Brand Aware Non-Users

Total Population

35

Works faster than other pain

relievers

Contains an effective

combination of ingredients

Is especially effective for headache pain

I s the brand my doctor

recommends

Relieves all types of headaches

Is appropriate for only sever

headaches

Has an unique formula

Is safe

Is innovative

Is the best medicine for

headaches

Relieves minor headache pain

Fits w ith my lifestyle

Is a good value for the money

Is a reliable brand

Is gentle to the stomach

Makes me feel refreshed after taking

Is especially effective for fever

Advil

Aleve

Bayer

Excedrin

Tylenol

Brand Loyalty

Total Population

36

Consumer Segmentation

37

• For Excedrin, targeting opportunities exist in Segments 14 and 16:

- These segments share some demographic similarity with Excedrin’s segment 13.

- In segment 14 (Aleve), we can pursue body pain business via alternative paths, as

well as taking a part of the ‘all things for all people’ business that Aleve currently

owns. Recent sourcing data also shows high losses to/interaction with Aleve.

- In segment 16, BMS can get back some of our headache business from Advil.

- Highest potential for incremental volume and buyers is to consider a launch outside of Excedrin brand name for pains states outside of headache.

• Segment 7 presents a switching opportunity for Excedrin:

- Multiple brands with low pill count and deal preference indicates that, while not loyal, consumers in this segment are receptive to deal shifting.

• Segment 13 is a core Excedrin segment in terms of volume:

- Critical to defend this segment against competition.

• Segment 10 contains primarily households driven by children’s products:

- Indicating little to no opportunity for Excedrin

• Segments 1, 2, 4, 5 and 8 are Private Label/Economy Buyers with low opportunity.

Executive Summary - Segmentation

38

0

5

10

15

20

% HH's 7.5 8.2 3.5 5.8 5.7 5.7 9.4 2.3 5.5 7.5 4.1 3.9 2.7 4.4 2.3 3.6 2.7 1.3 0.6 13.3

% $ Volume 9.7 9.4 8.0 7.7 7.2 6.7 6.7 6.6 6.2 4.2 3.9 3.6 3.5 3.4 3.4 3.3 2.5 1.4 0.2 2.3

$ / HH Index 130 115 228 132 126 118 72 286 113 55 94 91 130 78 148 92 94 106 27 18

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

The Analgesics Category consumer franchise is comprised

of 20 distinct segments. Some account for more buyers and

volume than others.

More ……………..Buyers & Volume………………Less

• Identify key consumer segments that drive category or brand volume

- The consumer segments circled above contribute higher than average sales

• Profile the consumer segments against demographic characteristics, purchase

habits and buying behavior across key product attributes to determine how to reach

them

39

TOTA L TY LEN OL 2 3 % 2 2 % 5% 3 1% 13 % 8 % 6 9 % 3 4 % 4 % 16 % 2 0 % 16 % 2 0 % 8 % 9 % 10 % 7% 2 8 % 13 % 2 9 % 2 0 %

ST. JOSEPH'S 2 % 2 % 1% 1% 1% 1% 1% 1% 1% 9 % 1% 1% 13 % 1% 1% 1% 1% 4 % 2 % 0 % 1%

R EM A IN IN G 6 % 6 % 6 % 1% 8 % 19 % 2 % 3 % 2 % 2 % 5% 17% 8 % 4 % 2 % 13 % 2 % 1% 1% 2 0 % 4 %

PR IV A TE LA B EL ( A D U LT) 3 1% 4 1% 6 5% 3 3 % 6 3 % 55% 6 % 14 % 8 6 % 2 9 % 3 8 % 4 1% 3 2 % 8 % 2 6 % 18 % 5% 8 % 9 % 4 % 3 7%

M OTR IN ( A D U LT) 3 % 2 % 4 % 4 % 1% 1% 3 % 8 % 0 % 1% 7% 2 % 1% 1% 1% 2 % 2 % 6 % 1% 1% 4 %

M ID OL 1% 1% 1% 1% 1% 0 % 1% 3 % 1% 0 % 2 % 1% 1% 1% 0 % 0 % 1% 1% 0 % 1% 1%

TOTA L B A Y ER 3 % 6 % 2 % 5% 2 % 6 % 5% 7% 1% 2 7% 2 % 6 % 7% 3 % 3 % 9 % 2 % 16 % 5% 5% 5%

GOOD Y S 1% 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 %

TOTA L EX C ED R IN 8 % 6 % 4 % 9 % 7% 2 % 3 % 9 % 1% 3 % 8 % 5% 3 % 6 7% 3 % 3 % 2 % 8 % 1% 1% 4 %

EC OTR IN 2 % 1% 0 % 2 % 0 % 2 % 2 % 1% 0 % 1% 0 % 1% 1% 1% 1% 1% 0 % 1% 59 % 2 % 2 %

B U FFER IN 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 1% 0 % 0 % 5% 0 % 0 % 0 % 10 % 0 %

A LEV E 8 % 8 % 3 % 11% 3 % 5% 5% 7% 2 % 7% 7% 5% 7% 3 % 51% 4 % 3 % 8 % 3 % 2 3 % 9 %

TOTA L A D V IL 11% 6 % 11% 4 % 2 % 2 % 3 % 12 % 1% 4 % 10 % 6 % 6 % 4 % 3 % 3 6 % 76 % 19 % 5% 5% 12 %

A ll

A vg

HH's

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2 0

Brand $ volume Share-Within Segment. Column sums to 100%

Excedrin has presence across most segments, however its largest share within

a consumer market is in Segment 13, representing 67% of dollar volume in the

segment.

Key Brd Segment : Tyl All Byr Exc. Alve Advl

40

While all Top Brands play in Segment 7, each also has a

primary segment.

Excedrin Tylenol Advil Aleve Bayer

All (incl.

Motrin)Top 2 Segment #: 13/7 6/7 16/7 14/7 9/7 7

% of Brd $'s: 41/13 32/18 37/12 34/10 26/13 31*

Top Segment Characteristics: #: 13 6 16 14 9 7

DemographicsAffluency Affluent - Affluent - - Affluent

Female Head Age 45-54 65+ 35-44 45-54 65+ 45-54

Income $70k+ $20-$30k $50k-$70k Less than $20k Less than $20k $50k-$70k

Occupation Prof_Mgr Not Working Blue Collar Not Working Not Working Blue Collar

Female Head Empl. Full Time Not Empl Full Time - Not Empl Full Time

Female Head Educ. - HS Grad College Grad - HS Grad HS Grad

Region West_Central Central East Central_South East East South

County Size A - A - - A

Purchase AttributeStrength - Rem Str_Xtra - - Low Rem Str

Size (count) 150_250 150_225_250 80_165_180_225 - 300_200 24_50

Symptom Head Arthritis - - Heart Health Migraine

Form - Geltbcp Liqgl - - Rem_Geltbcp

Deal Mfr Cpn Mfr Cpn Mfr Cpn

Outlet - Mass - - - Food_Drug

Equity Study

Brand Loyalty Best for Headache

Brand My Dr.

Recommends Fits My Lifestyle Unique Formula

Good Value For

Money

Attributes

Esp. Effective For

Headache Pain Is Safe

Makes Me

Refreshed After

Taking Innovative

Relieves Minor

Headache

Relieves all types

Headaches

Gentle On

Stomach Reliable Brand

Approp. For Only

Severe Headaches

Especially

Effective For

Fever

* - Segment 7 only strong segment for Motrin

41

Total US -

52 w/e 07/24/04

Excedrin Parent Switching Source of Volume Changes

* Interaction index =

% of switching/market share

Losses Gains Net Interaction

Index* Pills (000’s)

•Parent interacted highly with both Excedrin Migraine and Tension, resulting in strong net gains from Migraine and

some net loss to Tension.

•The largest branded volume loss went to Tylenol XS inc Cool Caps

•Parent also lost volume to Aleve, Motrin and Tylenol 8 Hr at a high rate of interaction.

34,319

14,614

10,086

11,364

11,632

9,275

12,163

12,762

14,440

5,816

1,934

4,398

1,760

2,582

1,723

2,968

2,678

430

42

1,988

56

(24,852)

(18,892)

(18,462)

(17,683)

(13,490)

(7,053)

(6,301)

(3,361)

(3,168)

(675)

(238)

(35,436)

(2,258)(3,082)

(1,974)(786)

(11,658)(8,315)

(13,297)

(5,573)

(4,956)

T T L P L/ GEN A SP

T T L P L/ GEN A P A P

T T L T YLEN OL XS W/ C OOL C P T / R R

A ll o ther

T T L P L/ GEN IB

T T L A LEVE

T T L B A YER A D ULT

T T L A D VIL A D ULT

T T L EXC ED R IN M IGR A IN E

T T L EXC ED R IN A F / T EN

T T L P L/ GEN N A P R OXN

T T L M OT R IN A D ULT

T T L ST JOSEP H A D ULT

T T L T YLEN OL SR

T T L T YLEN OL EXT -R

T T L T YLEN OL P M

T T L EXC ED R IN P M

T T L T YLEN OL 8H R

T T L T YLEN OL R S

T T L EXC ED R IN QT

T T L B UF F ER IN - A LL

(1,116)

(10,238)

(8,806)

(7,098)

(6,051)

(4,216)

(1,134)

1,104

6,124

(1,237)

(4,366)

(1,175)

(3,196)

(778)

(1,445)

(114)

420

(1,544)

(744)

1,314

(163)

87

68

118

103

46

154

137

109

537

784

102

191

112

306

53

94

295

146

202

631

45

Source: ACNielsen HomeScan Panel

42

EXC_AFTEN 14% 3% 1% 12% 2% 7% 24% 0% 2% 3% 1% 1% 17% 3% 0% 1% 8% 0% 0% 1%

EXC_MIG 12% 5% 7% 7% 2% 5% 18% 1% 3% 5% 3% 1% 20% 2% 1% 3% 5% 0% 0% 2%

EXC_PM 7% 6% 6% 21% 1% 8% 21% 0% 3% 2% 2% 1% 12% 1% 4% 2% 4% 1% 0% 1%

EXC_PRNT 2% 2% 4% 1% 1% 1% 4% 0% 1% 2% 1% 1% 74% 1% 1% 1% 2% 0% 0% 1%

EXC_QT 5% 9% 2% 7% 5% 4% 14% 3% 4% 6% 2% 3% 12% 1% 1% 3% 14% 0% 2% 2%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Brand $ Source of Volume-Across Segment (Rows sum to 100%).

Excedrin Parent garners 74% of its business from Segment 13. Structure

detail indicates that additional sub-brands were somewhat incremental to

Parent. This is confirmed by the extended volume contributions of other

segments to the respective sub-lines.

43

Conclusions and Implications

Advertising:

• Advertising should be done primarily at the brand level with strong support for sub-brand

• Consider doing split 30’s or partner 15’s with the first 15 on ‘brand’ and the second 15 on ‘sub-

brand’.

• Another tactic for consideration would be full-line advertising.

• A strong and continuous advertising presence for the franchised parent brand is recommended to

sustain a strong share-of-voice in the category.

• Must maintain top-of-mind or total unaided awareness driving purchase intent, as well as

satisfaction. Purchase intent is being driven by repeat purchasers.

• All data point to the need for new advertising /need for new news.

Positioning:

• Excedrin has a distinct position in the category that needs to be reinforced.

• ‘Excedrin contains an effective combination of ingredients’ is a positive driver of

satisfaction.

• Headache attributes are closely associated with Excedrin but Advil is encroaching.

• Excedrin isn’t being perceived as particularly appropriate for minor headache pain which may

present a new product opportunity

• No one currently owns “Makes you feel refreshed”. Develop copy and test this proposition in

terms of Excedrin.

• Excedrin is not perceived to have ingredients that are perceived to be gentle or gentle on the

stomach. However, Bufferin could own the effective yet gentle ‘appropriate for all body pain’

positioning.

44

Conclusions and Implications

Targeting:

• The AMB has been an appropriate target segment, but evidence continues to indicate that

redefinition is warranted.

• The segmentation work that was done in 2000 needs to be updated. Retail: • Migraine is exhibiting signs of becoming deal-sensitive. Implication: Migraine has become less differentiated due to lack of support.

• As seen in the BehaviorScan test, this is a result of sub-brand cannibalization and TV advertising aimed at Excedrin Tension Headache and no support behind Migraine.

• Migraine and Tension Headache have a significant presence in the same key

segments. Consumers do not view them as being distinct. When advertising just one sub-brand, sales for the non-supported brand will then be deal-driven and purchased by deal-sensitive consumers.

45

Future Excedrin:

• It appears that Excedrin has saturated its current headache segment niche of the internal analgesic

market.

• Forty percent of Excedrin’s volume is located in a single segment and, Excedrin makes up

2/3 of the volume generated by this segment. Thus, this stronghold needs to be tightly

defended or reinforced.

• Excedrin also has a strong presence in a segment where individuals are predominantly blue-

collar and deal-sensitive.

• There may be opportunities such as minor headaches

• Since actual ingredients are not particularly important, pursuing any ingredient based

positioning is not recommended (e.g. aspirin-free, caffeine-free)

• Sub-lines have not grown the category. Moving into another analgesic/pain state under a new brand

may drive growth (a la Aleve/Bayer).

• This supports the idea that repositioning Bufferin may strengthen our category

opportunity/presence.

Conclusions and Implications

46

ADDITIONAL DETAILS

47

Excedrin Franchise Structure Excedrin Sub-Brands exhibit different key drivers. Once the consumer is

within the brand, such as Deal and Pack Size are important. Form does

not look to be a strong factor for Excedrin overall.

EXCEDRIN

$ Share = 7.8%

EXCEDRIN QT

$ Share = 0.5%

TENSION

$ Share = 0.9%

PM

$ Share = 1.0%

PARENT

$ Share = 3.2%

Migraine

$ Share = 2.2%

Deal

Non-Deal

16 Ct.

320 Ct.

Non-Deal

Deal

50 Ct.

250 Ct.

24 Ct.

Rem. Sizes

100 Ct.

Caplet

Gel Tab / Gel Cap

Deal

Non-Deal

50 Ct

Rem. Sizes

24 Ct.

100 Ct.

Caplet

Tablet

Gel Tab / Cap

50 Ct.

Rem Sizes

24 Ct.

100 Ct.

Caplet

Tablet

Gel Tab / Cap

Caplet

Tablet

Gel Tab / Cap

30 Ct.

50 Ct.

250 Ct.

Rem. Sizes

24 Ct.

100 Ct.

Deal

Non-Deal

300 Ct.

50 Ct.

250 Ct.

Rem. Sizes

24 Ct.

150 Ct.

100 Ct.

Deal

Non-Deal

Deal

Non-Deal

Deal

Non-Deal

300 Ct.

50 Ct.

250 Ct.

Rem. Sizes

24 Ct.

150 Ct.

100 Ct.

300 Ct.

50 Ct.

250 Ct.

Rem. Sizes

24 Ct.

150 Ct.

100 Ct.

Caplet

Tablet

Gel Tab / Cap

48

Bufferin Attribute Tree and Key Segmentation Detail

Regular Strength

$ Share = 0.2%

Extra Strength

$ Share = 0.1%

Bufferin

$ Share = 0.3%

Bufferin is a strength driven franchise.

49

Segments

Bufferin 4.9% 5.6% 0.9% 0.9% 2.9% 2.9% 7.2% 0.2% 2.9% 0.4% 0.9% 3.3% 2.7% 2.7% 46.6% 2.6% 1.7% 1.8% 6.8% 1.9%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Across Segment – Where does Bufferin source business?

47% of Bufferin franchise business is concentrated in Segment 15.

Brand $ Source of Volume-Across Segment. Row sums to 100%

50

Segment 15: Key Index Demographic Profile

Core Bufferin Segment

Demo Value %Segment Index

CEN_REG_ West 38.8% 1.87

LIFESTAGE Empty Nest:Living Comf_Affluen 27.2% 1.61

INCOME $70K or more 23.6% 1.47

AFFLUENCY Affluent 38.6% 1.36

COUNTYSZ A 50.2% 1.32

OCCUPATION Prof_Managerial 35.1% 1.27

SIZE 2 Members 39.5% 1.18

FEM_AGE 45 to 54 25.2% 1.18

INCOME $50K to $70K 23.3% 1.14

CHILDREN No Kids less than 18 73.9% 1.11

51

Segment 15: Key Purchase Preferences

Core Bufferin Segment

Attribute Value %Share Index SOV

Brand BUF 2.9% 13.41 45.9%

Size REMSZ 70.8% 7.61 26.0%

Brand GEN_BYR 9.9% 4.60 15.7%

Brand ADV_ADLT 26.7% 4.37 15.0%

OUTLET Warehouse Sto 68.8% 3.41 11.6%

Value %Share Index SOV

PVTLBLADLT 40.7% 0.74 2.5%

ADV_ADLT 26.7% 4.37 15.0%

GEN_BYR 9.9% 4.60 15.7%

TYL_XS 4.3% 0.61 2.1%

REMBRANDS 4.0% 0.97 3.3%

BUF 2.9% 13.41 45.9%

ALEVE 2.1% 0.52 1.8%

BYR_AOADLT 1.7% 0.76 2.6%

MTRN_ADLT 1.0% 0.68 2.3%

EXC_PM 1.0% 1.97 6.7%

TYL_PM 0.9% 0.48 1.7%

STJOS 0.8% 0.61 2.1%

TYL_ARTH 0.6% 0.28 0.9%

EXC_MIG 0.6% 0.46 1.6%

TYL_CHLD 0.5% 1.00 3.4%

Brand

Interest

General

Purchase

Profile

52

Deal

Caplet

Gel Tab / Cap

Non-Deal

8 Hour

$ Share = 0.8%

225 Ct.

40 Ct.

200 Ct.

Deal

Caplet

Gel Tab / Cap

Non-Deal

50 Ct.

Deal

Non-Deal

24 Ct.

150 Ct.

Caplet

Gel Tab / Cap

Deal

Caplet

Gel Tab / Cap

Non-Deal

100 Ct.

PM

$ Share = 3.9%

200 Ct.

50 Ct

Rem. Sizes

250 Ct.

24 Ct.

150 Ct.

Deal

Non-Deal

100 Ct.

ARTHRITIS

$ Share = 3.7%

Deal

16 Ct.

40 Ct.

50 Ct.

250 Ct.

24 Ct.

150 Ct.

100 Ct.

Rem. Sizes

Non-Deal

Caplet

Suspension Liquid

60 Ct.

30 Ct.

200 Ct.

24 Ct.

100 Ct.

Tablet

225 Ct.

40 Ct.

300 Ct.

Deal

Non-Deal

50 Ct.

Deal

Non-Deal

24 Ct.

150 Ct.

Deal

Non-Deal

100 Ct.

Gel Tab / Cap

XS

$ Share = 10.7%

Caplet

Tablet

A/O ADULT

$ Share = 0.4%

Suspension Drops

Suspension Liquid

30 Ct.

24 Ct.

Other Sizes

Tablet

CHILD

$ Share = 2.2%

TYLENOL

$ Share = 21.7%

Similarly, for Tylenol, it’s Sub-Brands illustrate unique

shopping patterns relative to one another.

53

Bayer exhibits variety and behavior not unlike Excedrin.

Once a consumer is within the franchise, Deal vs Non-Deal is

a key driver.

Headache PM

Arthritis

Heart Health / LD

Gen. Pain

Caplet

Deal

Sizes

Non-Deal

Tablet

A/O ADULT

$ Share = 2.3%

Sizes

Non-Deal

Sizes

Deal

MAX

$ Share = 0.5%

Sizes

Deal

200 Ct.

50 Ct.

24 Ct.

Rem. Sizes

Caplet

Tablet

100 Ct.

Non-Deal

GEN. BAYER

$ Share = 2.1%

Deal

Non-Deal

BACK & BODY

$ Share = 0.5%

Deal

Non-Deal

CALCIUM

$ Share = 0.3%

Deal

Non-Deal

CHILD

$ Share = 0.7%

BAYER

$ Share = 6.4%

54

Motrin Adult is predominantly size driven.

16 Ct.

Deal

Form

Non-Deal

Gen Pain

50 Ct.

Deal

Non-Deal

24 Ct.

300 Ct.

250 Ct.

Caplet

Tablet

Gel Tab / Cap

100 Ct.

ADULT

$ Share = 2.5%

Suspension Drops

Suspension Liquid

Caplet

Regular Strength

Extra Strength

Tablet

CHILD

$ Share = 2.4%

MOTRIN

$ Share = 2.9%

55

Aleve is a deal vs. size driven franchise.

Size

Deal

Size

Non-Deal

ALEVE

$ Share = 6.9%

56

Advil Adult, likely due to its Form ads, exhibits strong Form

dynamics, followed by Pack Size.

Deal

Sizes

Non-Deal

MIGRAINE

$ Share = 0.4%

Sizes

Deal

Sizes

Non-Deal

LiquiGel

Deal

Sizes

Non-Deal

Caplet

100 Ct.

225 Ct.

250 Ct.

Deal

Non-Deal

50 Ct.

24 Ct.

100 Ct.

Tablet

Sizes

Deal

Sizes

Non-Deal

Gel Tab / Cap

ADULT

$ Share = 9.5%

Suspension Drops

Deal

Non-Deal

Suspension Liquid

Tablet

CHILD

$ Share = 0.7%

ADVIL

$ Share =

57

Not All Consumer Segments Offer The Same

Opportunity: Prioritize Effort for Return

Maintenance

Limit subsidy

Right discount level

Core

Switchers

Market & Account Targeting

Competitive Response

Direct Conversion Efforts via Trade Presence, Assortment. Dealing, etc.

Persuasion

Targets

Price Sensitivity

Specialty Positions

Professional Detailing for HBC?

Long-Term

Conversion /

Low

Opportunity

• Evaluate segments differentially:

– Segments to attack or attract

consumers

– Defend segments

– Low opportunity segments

58

4+ Time Purchasers (%HH) 61 77 72 62 77 62 72 75 57 78 67 67 79 76 66 53 70 78 78 28 0

3 Time Purchasers (%HH) 12 13 14 16 11 18 15 12 20 12 17 15 9 13 15 21 15 10 13 14 0

2 Time Purchasers (%HH) 13 10 13 22 12 20 14 13 23 11 16 18 13 11 19 26 16 12 9 58 0

1 Time Purchasers (%HH) 13 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100

All

HH

Avg.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Depth of Category Purchasing: On an equivalent unit basis, the key

driver of consumer segment differentiation is depth of repeat purchasing

on the category. For example, Segments 19 and 20 are extremely light

one and two time buyer segments.

59

WAREHOUSE CLUBS 10% 2% 4% 77% 3% 3% 7% 3% 19% 7% 9% 2% 5% 10% 5% 53% 7% 3% 9% 12% 16%

SUPER STORES 16% 80% 8% 3% 10% 8% 10% 6% 20% 9% 17% 10% 14% 10% 8% 7% 16% 4% 13% 12% 10%

OTHER OUTLETS 5% 3% 4% 1% 4% 3% 3% 3% 2% 2% 4% 63% 4% 2% 6% 2% 1% 2% 5% 9% 5%

MASS EX. SUPERS 19% 5% 23% 6% 39% 20% 38% 10% 25% 18% 24% 8% 21% 23% 16% 11% 23% 6% 13% 12% 14%

FOOD 29% 7% 36% 9% 25% 28% 21% 52% 16% 35% 30% 10% 31% 32% 40% 12% 34% 60% 28% 31% 28%

DRUG 21% 4% 26% 5% 19% 38% 22% 28% 18% 30% 17% 8% 26% 22% 25% 16% 19% 25% 33% 26% 26%

All

HH

Avg

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

$ Share of Purchasing Within Segment. Column sums to 100%

Consumers exhibit variation in class of trade preference. Key

differentiations are Segment 1 in Super Centers, Segment 3 & 15 in

Warehouse Clubs, and Segment 11 in Other Outlets (Dollar and Military).

- Product availability across trade channels and appropriate offering presence across trade class is

required. The assortment modeling already performed is an aid for this.

60

TAB 40% 37% 58% 35% 26% 73% 15% 29% 28% 65% 27% 49% 68% 49% 32% 77% 33% 36% 76% 45% 43%

LIQUID 4% 3% 3% 3% 2% 0% 1% 2% 1% 1% 42% 4% 1% 1% 1% 1% 2% 3% 1% 6% 6%

LIQUIGEL 3% 2% 1% 2% 1% 0% 1% 3% 1% 1% 1% 1% 1% 1% 1% 2% 36% 4% 1% 2% 3%

GEL TAB / CAP 16% 16% 8% 10% 23% 6% 35% 27% 5% 10% 10% 13% 10% 13% 10% 5% 11% 23% 6% 13% 15%

CAPLET 37% 43% 31% 51% 48% 21% 48% 40% 66% 23% 19% 33% 20% 36% 56% 15% 19% 35% 16% 34% 34%

All

HH

Avg

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Brand $ Volume Share-Within Segment. Column sums to 100%

Across segment, Tablet and Caplet are key Product Forms. Liquid,

Liquid-Gel and Gel Tab / Cap, offer variety to consumers and are

required for some level of consumer appeal.

61

TOTA L TY LEN OL 2 3 % 2 2 % 5% 3 1% 13 % 8 % 6 9 % 3 4 % 4 % 16 % 2 0 % 16 % 2 0 % 8 % 9 % 10 % 7% 2 8 % 13 % 2 9 % 2 0 %

ST. JOSEPH'S 2 % 2 % 1% 1% 1% 1% 1% 1% 1% 9 % 1% 1% 13 % 1% 1% 1% 1% 4 % 2 % 0 % 1%

R EM A IN IN G 6 % 6 % 6 % 1% 8 % 19 % 2 % 3 % 2 % 2 % 5% 17% 8 % 4 % 2 % 13 % 2 % 1% 1% 2 0 % 4 %

PR IV A TE LA B EL ( A D U LT) 3 1% 4 1% 6 5% 3 3 % 6 3 % 55% 6 % 14 % 8 6 % 2 9 % 3 8 % 4 1% 3 2 % 8 % 2 6 % 18 % 5% 8 % 9 % 4 % 3 7%

M OTR IN ( A D U LT) 3 % 2 % 4 % 4 % 1% 1% 3 % 8 % 0 % 1% 7% 2 % 1% 1% 1% 2 % 2 % 6 % 1% 1% 4 %

M ID OL 1% 1% 1% 1% 1% 0 % 1% 3 % 1% 0 % 2 % 1% 1% 1% 0 % 0 % 1% 1% 0 % 1% 1%

TOTA L B A Y ER 3 % 6 % 2 % 5% 2 % 6 % 5% 7% 1% 2 7% 2 % 6 % 7% 3 % 3 % 9 % 2 % 16 % 5% 5% 5%

GOOD Y S 1% 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 %

TOTA L EX C ED R IN 8 % 6 % 4 % 9 % 7% 2 % 3 % 9 % 1% 3 % 8 % 5% 3 % 6 7% 3 % 3 % 2 % 8 % 1% 1% 4 %

EC OTR IN 2 % 1% 0 % 2 % 0 % 2 % 2 % 1% 0 % 1% 0 % 1% 1% 1% 1% 1% 0 % 1% 59 % 2 % 2 %

B U FFER IN 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 1% 0 % 0 % 5% 0 % 0 % 0 % 10 % 0 %

A LEV E 8 % 8 % 3 % 11% 3 % 5% 5% 7% 2 % 7% 7% 5% 7% 3 % 51% 4 % 3 % 8 % 3 % 2 3 % 9 %

TOTA L A D V IL 11% 6 % 11% 4 % 2 % 2 % 3 % 12 % 1% 4 % 10 % 6 % 6 % 4 % 3 % 3 6 % 76 % 19 % 5% 5% 12 %

A ll

A vg

HH's

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2 0

Brand $ volume Share-Within Segment. Column sums to 100%

Across Segments, consumers purchase a variety of brands. Private Label

(yellow) and Tylenol (Dark Blue) are pervasive. Excedrin has presence across

most segments, however its largest share within a consumer market is in

Segment 13, representing 67% of dollar volume in the segment.

62

Segments

Total Excedrin 6.9% 3.8% 4.9% 7.0% 1.4% 3.8% 12.8 0.5% 2.0% 3.1% 1.9% 1.0% 40.6 1.7% 1.1% 1.7% 4.6% 0.2% 0.2% 1.0%

Total Adult Tylenol 8.7% 1.7% 6.8% 4.6% 1.5% 31.7 17.9 0.5% 4.5% 2.7% 2.3% 2.1% 1.9% 2.0% 1.3% 1.7% 5.0% 1.1% 0.3% 1.7%

Total Bayer 8.2% 2.5% 3.8% 2.5% 4.3% 8.7% 13.2 0.5% 26.1 1.1% 3.0% 2.6% 2.2% 2.3% 4.1% 1.9% 9.8% 1.6% 0.2% 1.6%

Total Advil 4.9% 7.9% 1.9% 1.2% 0.9% 2.8% 12.1 0.2% 2.4% 2.8% 1.7% 1.2% 1.6% 1.6% 9.6% 37.4 6.8% 0.9% 0.1% 2.1%

Motrin Adult 7.2% 9.7% 7.1% 1.6% 1.2% 9.0% 31.4 0.3% 2.4% 6.9% 1.6% 1.1% 1.4% 1.8% 1.7% 3.7% 8.4% 0.8% 0.1% 2.6%

Aleve 8.7% 2.9% 6.7% 2.6% 2.7% 6.5% 10.3 0.6% 5.3% 2.7% 2.1% 2.1% 1.9% 33.8 1.4% 2.2% 3.8% 0.7% 0.6% 2.3%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Across Segment – Where do Excedrin and key branded competition

source business?

The driver of a brand based market structure is a clearly defined set of

consumer preferences for brands as outlined below. Each key offering

has a concentrated core group of consumers.

Brand $ Source of Volume-Across Segment. Row sums to 100%

Private Label &

Switcher

Segments

63

ADV_MIG 7% 6% 1% 5% 1% 3% 18% 1% 2% 5% 3% 1% 3% 2% 0% 29% 6% 0% 1% 6%

ALEVE 9% 3% 7% 3% 3% 7% 10% 1% 5% 3% 2% 2% 2% 34% 1% 2% 4% 1% 1% 2%

EXC_MIG 12% 5% 7% 7% 2% 5% 18% 1% 3% 5% 3% 1% 20% 2% 1% 3% 5% 0% 0% 2%

MAX_BYR 17% 1% 1% 2% 3% 12% 23% 1% 11% 1% 3% 2% 3% 1% 2% 2% 13% 1% 0% 2%

MTRN_ADLT 7% 10% 7% 2% 1% 9% 31% 0% 2% 7% 2% 1% 1% 2% 2% 4% 8% 1% 0% 3%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Brand $ Source of Volume-Across Segment (Rows sum to 100%).

Among Migraine / Severe Pain product, increases within segment

competition are present. This is consistent with the dynamics observed in

the market structure detail.

Segment 13 is an Excedrin stronghold segment.

Segments 1 & 7 may offer competitive switch opportunity.

64

ADV_ADLT 5% 8% 2% 1% 1% 3% 12% 0% 2% 3% 2% 1% 2% 2% 10% 38% 7% 1% 0% 2%

EXC_PRNT 2% 2% 4% 1% 1% 1% 4% 0% 1% 2% 1% 1% 74% 1% 1% 1% 2% 0% 0% 1%

MAX_BYR 17% 1% 1% 2% 3% 12% 23% 1% 11% 1% 3% 2% 3% 1% 2% 2% 13% 1% 0% 2%

PVTLBLADLT 12% 17% 5% 16% 8% 2% 5% 7% 6% 4% 4% 2% 1% 4% 2% 1% 1% 1% 0% 2%

TYL_XS 7% 2% 7% 2% 2% 34% 20% 0% 5% 4% 2% 2% 2% 2% 2% 1% 5% 1% 0% 2%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Brand $ Source of Volume-Across Segment (Rows sum to 100%).

Competitively, among Headache / General Pain positioned products, each

franchise exhibits similar sourcing detail as Excedrin. Brand is high in the

structure as consumer preferences appear to be fairly clear.

A key implication is that advertising and promotion likely does more to

impact existing brand buyers rather then competitive users.

65

-30

-20

-10

0

10

20

30

40

50

60

70

Vo

lum

e In

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Deal Propensity -13 8 -17 -6 11 5 4 -10 8 5 -13 4 7 4 -15 5 61 9 16 -4

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Deal Propensity: When adjusted for what they purchase, this

measures the likelihood of deal purchase probability. Segments 17,

which purchases principally Tylenol , Bayer, and Advil is most deal

sensitive. Key Excedrin segments are not deal sensitive.

Positive Deal Propensity Index: More of purchase volume on deal relative to category group average

66

Segments

Total Excedrin 7.7% 6.9% 3.8% 4.9% 7.0% 1.4% 3.8% 12.8 0.5% 2.0% 3.1% 1.9% 1.0% 40.6 1.7% 1.1% 1.7% 4.6% 0.2% 0.2% 1.0%

All

HH

Avg

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Across Segment – Where does Total Excedrin source business?

58% of Excedrin franchise business is derived from two segments (7 & 13).

Of this, Segment 13 represents the greatest level of sales.

Brand $ Source of Volume-Across Segment. Row sums to 100%

67

Among the 20 segments, two of the most important to Excedrin are:

- ‘Excedrin Core Consumers’ which skew demographically toward affluent

professionals in the West and Central regions.

- ‘Branded Deal Switchers’, which skew toward comfortable blue collar in the

East/South regions. Excedrin Key Segments

Excedrin Core Consumers Branded Deal Switchers

Value % Segment Index Value % Segment Index

DemoAffluency Affluent 36.3% 1.28 N/S* - -

Female Age 45 - 54 27.2% 1.27 45 - 54 23.7% 1.11

Income $70k + 20.4% 1.27 $50k - $70k 23.3% 1.14

Occupation Prof_Managerial 33.3% 1.2 Blue Collar 26.9% 1.15

Female Empl. Full Time 39.6% 1.17 Full Time 39.6% 1.17

Female Educ. N/S* - - HS Grad 32.6% 1.08

Region West/Central 25.9%/28.8% 1.25/1.22 East/South 22.6%/38.9% 1.21/1.05

County Size A 45.4% 1.19 A 44.0% 1.16

* N/S - No Skew

Segment 13 Segment 7

68

Segment 13: Key Purchase Preferences

Excedrin Core Consumers

Attribute Value %Share Index SOV

Brand EXC_PRNT 48.7% 21.13 74.1%

Symptom HEAD 53.5% 12.31 43.2%

Brand EXC_MIG 7.2% 5.36 18.8%

Brand EXC_AFTEN 2.3% 5.12 18.0%

Symptom MIGR 7.7% 4.33 15.2%

Size 150CT 11.5% 3.28 11.5%

Size 250CT 16.2% 2.93 10.3%

Value %Share Index SOV

EXC_PRNT 48.7% 21.13 74.1%

PVTLBLADLT 20.1% 0.36 1.3%

EXC_MIG 7.2% 5.36 18.8%

TYL_XS 3.9% 0.54 1.9%

ADV_ADLT 2.7% 0.44 1.6%

EXC_AFTEN 2.3% 5.12 18.0%

ALEVE 2.2% 0.56 2.0%

REMBRANDS 2.1% 0.51 1.8%

EXC_PM 1.5% 2.98 10.5%

GEN_BYR 1.2% 0.55 1.9%

BYR_AOADLT 1.0% 0.47 1.7%

TYL_PM 0.9% 0.50 1.8%

TYL_ARTH 0.8% 0.35 1.2%

STJOS 0.6% 0.49 1.7%

MTRN_ADLT 0.6% 0.38 1.3%

ECTRN 0.5% 0.40 1.4%

Brand

Interest

General

Purchase

Profile

69

Segment 7: Key Purchase Preferences

Branded Deal Switchers

Attribute Value %Share Index SOV

Brand MTRN_ADLT 5.7% 3.75 25.1%

Size 24CT 12.2% 3.73 25.0%

Form REMFORM 2.3% 3.69 24.7%

Size 50CT 20.3% 2.43 16.3%

Brand TYL_XS 16.7% 2.36 15.8%

OUTLET Food Stores 47.0% 2.30 15.4%

Form GLTBGLCP 21.0% 2.16 14.5%

Brand EXC_MIG 2.8% 2.07 13.9%

Brand TYL_PM 3.7% 2.06 13.8%

Symptom MIGR 3.3% 1.88 12.6%

DEAL Mfr Cpn 5.7% 1.59 10.7%

Brand GEN_BYR 3.4% 1.57 10.5%

OUTLET Drug Stores 25.4% 1.57 10.5%

Strength REMSTR 4.7% 1.51 10.1%

Value %Share Index SOV

PVTLBLADLT 28.7% 0.52 3.5%

TYL_XS 16.7% 2.36 15.8%

ADV_ADLT 8.8% 1.44 9.7%

MTRN_ADLT 5.7% 3.75 25.1%

ALEVE 5.1% 1.30 8.7%

REMBRANDS 3.9% 0.97 6.5%

TYL_PM 3.7% 2.06 13.8%

GEN_BYR 3.4% 1.57 10.5%

TYL_ARTH 2.9% 1.28 8.6%

EXC_MIG 2.8% 2.07 13.9%

BYR_AOADLT 2.1% 0.96 6.4%

PVTLBLCHLD 1.8% 0.74 5.0%

EXC_AFTEN 1.4% 3.05 20.4%

STJOS 1.3% 0.94 6.3%

ECTRN 1.2% 0.87 5.9%

EXC_PM 1.2% 2.43 16.3%

TYL_CHLD 1.2% 2.19 14.7%

MIDOL 1.1% 4.59 30.8%

BYR_BCKBDY 1.0% 3.11 20.8%

TYL_8HR 0.9% 2.85 19.1%

EXC_PRNT 0.8% 0.37 2.5%

MTRN_CHLD 0.8% 1.57 10.5%

GDYS 0.7% 3.89 26.1%

MAX_BYR 0.7% 3.07 20.6%

TYL_AOADULT 0.6% 2.89 19.4%

Brand

Interest

General

Purchase

Profile

70

Low Income Households Getting By Households

are defined by: are defined by:

1 member income 0 - $9,999 1 member income 10 - $19,999

2 member income 0 - $11,999 2 member income 12 - $24,999

3 member income 0 - $14,999 3 member income 15 - $29,999

4 member income 0 - $19,999 4 member income 20 - $39,999

5 member income 0 - $24,999 5 member income 25 - $49,999

Living Comfortably Households Affluent households

are defined by: are defined by:

1 member income 20 - $39,999 1 member income $40,000+

2 member income 25 - $49,999 2 member income $50,000+

3 member income 30 - $59,999 3 member income $60,000+

4 member income 40 - $69,999 4 member income $70,000+

5 member income 50 - $99,999 5 member income $100,000+

Per Capita Income Definitions

71

Private Label Preference Segmentation Detail

• Private Label is a large component of the Analgesics Category. It is differentiated from Brands based on price and its cross ingredient and form profile

– Among key groups of consumers, Private Label makes up 60%+ of purchasing.

• One third of category buyers are interested in Private Label / Value offerings.

• These consumers will be difficult to convert given likely high price sensitivity levels.

• For Excedrin the opportunity is better against switching of consumers of competitive brands such as Advil.

– Deal pre-disposition (free goods)

– Coupon and direct mail / consumer efforts

– Key market strategies

72

Household Lifestage Definitions

• Young Singles - households with one member under 35 years old.

• Childless Younger Couples - 1+ member households, under 35 years

old with no children under 18.

• New Families - households with children under 6 years old.

• Maturing Families - households with children aged 6 - 17 years old.

• Established Families - households with children aged 13 - 17 years old.

• Middle-Aged Singles - households with one member aged between 35 -

54 years old.

• Middle-Aged Childless Couples - 1+ member households, aged between

35 - 54 years old, with no children under 18.

• Empty Nesters - 1+ member households, aged between 55 - 64, with no

children under 18.

• Older Singles - households with one member over 55 years old.

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County Size

• County Size A

– All counties belonging to the 25 largest standard consolidated

statistical areas or Standard Metropolitan Statistical Areas

(SMSA’s) according to the 1990 census

• County Size B

– All counties not included under “County A” that are either over

150,000 population or in SCSA’s or SMSA’s over 150,000

population according to the 1990 census

• County Size C

– All counties not included under “A” or “B” that are either over

40,000 population or in SMSA’s over 40,000 population

according to the 1990 census

• County Size D

– All remaining counties

74

9.7 9.9 10.1 9.59.1 8.8 8.8

Total HH's

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04

80.0 79.4 79.7 79.9 79.2 78.7 79.0

Total HH's

Excedrin’s decline versus Q3 ’03 (-13%) was deeper than category (–0.1%) for TTL

HH’s.

HH Penetration Trends

% Households Buying - Rolling 52-week periods

Excedrin Internal Analgesics Category

75

226 219 218 218198 198 199

Total HH's

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04

Excedrin’s Pill Per Buyer decline versus Q3 ’03 (-19) was fairly comparable to

category (–16) for TTL HH’s. While category Buying Rate decline has continued

since Q3 ’03, Excedrin has been stable in ’04.

HH Buying Rate Trends

Pills Per Buyer - Rolling 52-week periods

Excedrin Internal Analgesics Category

516

525531 528

521516 515

Total HH's

76

9.7 9.9 10.1 9.5 9.1 8.8 8.8

TTL HH's

Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04

HH Buying Rate (pills per HH) was stable in Q3 versus prior two ’04 quarters

among Total Households.

Total Excedrin – Rolling 52-week periods

PENETRATION

BUYING RATE

226 219 218 218198 198 199

TTL HH's

77

Preference Segment Detail

• The 20 segments identified were created based on purchase behavior/volume share attributes overlaid with demographics

For each Preference Segment the following are identified:

• Purchase Behavior/Volume Share Attributes

– Volume by Attribute

– Deal Usage

– Purchase Frequency

– Purchase Size

• Spectra Lifestyle and Lifestage

• Demographics

– Female Head Age - Female Head Employment

– Female Head Education - Age & Presence of Children

– Household Affluence - Household Size

– Household Head Occupation - Household Income

– Household Size - Market Size

– County Size - Census Region

– Race