1. A Look Ahead G Glimpses of the Future G Lifelong Learning of ME

2. Future of ME – 2 Marketing Engineering: A Look Ahead G Data warehousing G Online analytic processing (OLAP) G Intelligent marketing systems G Simulations G Groupware G Improved user interfaces G ASP model for software distribution G Lifetime learning

3. To:Sizzle Brand Manager From:CoverStory Date:06/05/99 Subject:Sizzle Brand Summary for Twelve Weeks Ending May 22, 1999 Sizzle’s share of type in total United States was 8.3 in the C&B Juice/Drink category for the twelve weeks ending 5/22/99. This is an increase of 0.2 points from a year earlier, but down 0.3 from last period. This reflects volume sales of 8.2 million gallons. Category volume (currently 99.9 million gallons) declined 1.3% from a year earlier. Sizzle’s share of type is 8.3—up 0.2 from the same period last year. Display activity and unsupported price cuts rose over the past year—unsupported price cuts from 38 points to 46. Featuring and price remained at about the same level as a year earlier. Components of Sizzle Share Among components of Sizzle, the principal gainer is: Sizzle 64oz: up 0.5 points from last year to 3.7 and losers: Sizzle 48 oz: down 0.2 to 1.9 Sizzle 32 oz: down 0.1 to 0.7 Sizzle 64 oz’s share of type increase is partly due to 11.3 points ride in % ACV with Display vs. year ago. Components of Sizzle Share Among Sizzle’s major competitors, the principal gainers are: Shakey: up 2.5 points from last year to 32.6 Private Label: +0.5 to 19.9 (but down 0.3 since last period) and loser: Generic Seltzer: –0.7 to 3.5 Shakey’s share of type increase is... Volume Share Merchandising Index Share & Merchandising 0 2 4 6 8 10 12 0 10 20 30 40 01-31-9907-17-9901-31-99 Volume Share Merchandising Index Future of ME – 3

4. Model User Decision Tasks Marketing Engineering today Marketing Engineering tomorrow Intelligent/automated decision models Groupware plus decision models Online decision models (ASP; OLAP, etc) Stand-alone marketing decision models General purpose analysis tools (e.g., SPSS, LP packages) AnalystTrained manager (in marketing engineering) Novice manager Non- managerial employee Forecasting Allocation and optimization Simulation Explanation An overview of the evolution of Marketing Engineering to support a wider range of users and decision tasks using emerging technologies Modeling Technology Future of ME – 4

5. Future of ME – 5 The New Learning Model G We are all becoming knowledge workers u Learning and work are becoming contemporaneous. G The shelf life of information/knowledge is shrinking dramatically u Learning is becoming a perpetual process. G Information is becoming freely available to learners u Learning is becoming a decentralized/democratic process. G New knowledge/information is being created at mind-numbing rates. u Learning is becoming a discernment process. G Knowledge is needed “just-in-time,” not “just-in-case” u Learning is becoming context-embedded. G Career moves and job changes are becoming more frequent. u Learning is becoming self-directed.

6. Future of ME – 6

7. Browser Client (Model User) Application Server (Model Store) Data Server (Data Store) Web Server (Model Access Point) http: Response A Java Applet (user interface) http: Request for a Model Java RMI The Architecture of www.valueharvest.com Java: A network-centric computer programming language. RMI: Remote Method Invocation A system that allows a Java object running on one machine to communicate with methods (e.g., models) of another Java object running on a different Java machine. http: Hypertext Transfer Protocol The protocol that defines communication between Web Servers and Clients. Future of ME – 7

8. Future of ME – 8 Our Plans for Marketing Engineering G Continue to test effects of Marketing Engineering under controlled experimental conditions G Further implement ideas/tools in companies G Professional versions online G Continuous improvement of existing models G Develop new models (e.g., generalized resource allocator, sales territory alignment, enhanced choice modeling) G Marketing Engineering on the Net as ASP G ME/HCV Portals—stay connected--- www.mktgeng.com/www.valueharvest.com

9. Wrap up – 9

10. Wrap up – 10

11. Wrap up – 11

12. Future of ME – 12 TOP TEN REASONS FOR THE ME COURSE 10“Enhance” your marketing with a model!  Dazzle 'em with a few equations, and they'll believe anything else you say.  Learn how to take the "con" out of conjoint.  Einstein’s formula was really F(un) = ME 2.  Find out before anyone else when McDonald will sell its 200 billionth burger.  Prove to management that advertising is 15% commission and 85% confusion.  Predict the sales of Coke without knowing its secret ingredients.  Beat out your competition -- sitting in your office, playing on your computer!  Get a job where you keep bankers’ hours, but make out like a bandit.  (DRUM ROLL......)  Show your partner that you can do much more than just turn on a computer.