EXHIBIT 1 : COMPETITORS' PRICING IN THE INDIAN SPORTS NUTRITION MARKET

(ALL FIGURES IN Rs.)

APPROXIMATE RETAIL PRICE

OPTION BRAND
(5-POUND TUB)

Performance Whey Optimum Nutrition 4400.00

Gold Whey Optimum Nutrition 6200.00

ISO Whey Ultimate Nutrition 7500.00

Hydro Whey Optimum Nutrition 7100.00

Premium Whey Muscle Tech 4100.00

Phase 8 Muscle Tech 5000.00

Whey Six Pack Nutrition 4800.00

Muscle Infusion Nutrex 5600.00

Whey Pro Universal Nutrition 5400.00

Hajmo Kite Nutrition 4800.00

Note - These prices do not represent the maximum retail price, they represent the
selling prices on Amazon, inclusive of discounts,if any.
5 Pounds=2.25 kilograms, 4 Pounds=1.8 kilograms.
RKET
 EXHIBIT 2 : PRICING OPTION OF STRENGTH PHARMA'S
5-POUND TUB OF MUSCLE RDX
(ALL FIGURES IN Rs.)

OPTION 1 OPTION 2 OPTION 3

Competitor based Target Perceived Value
Pricing Pricing Pricing

Retail Price 4500.00 5400.00 6000.00

Retail Gross Margin 900.00 1080.00 1200.00
Manufacturer Price 3600.00 4320.00 4800.00
Variable Cost 2920.00 2920.00 2920.00
Manufacturer Gross Margin 680.00 1400.00 1880.00
% Gross Margin 18.89 32.41 39.17
 EXHIBIT 3 : DISTRIBUTION OF TARGET POPULATION OF RUNNERS
(BY CITY)

Total No. of Avg No. of Participants

Prospective
Tier Event from Local vicinity No. of Cities Total Runners Examples
Customers
Participants (60%)

1 37000 22200 6 133200 19980 Metros

2 14000 8400 17 142800 21420 Hyd, Pune

3 2000 1200 60 72000 10800 Lucknow

Total 53000 31800 83 348000 52200 -

 EXHIBIT 4 : DISTRIBUTION OF TARGET POPULATION OF CYCLIST
(BY EVENT TYPE)

Total No. of Avg No. of Prospective

Event Type Total Athletes
Events Participants Customers (15%)
Triathalons/
14 600 8400 1260
Duathalons

Racing 50 200 10000 1500

Radonneur 15 50 750 113

Total 79 850 19150 2873

 Sales Forecast
Forecast Method 1 Year 1 Year 2
Total Runners 348,000 348,000
Total Cyclists 19,150 19,150
Total Athletes 367,150 367,150
25% Athletes buying Health Supplements 91,788 91,788
15% who might purchase Muscle RDX for first-
13,768 21,111
time adding 8% each subsequent year
plus 72% first-time users buy a second package 9,913 15,200
plus 55% of first-time users continue to buy
75,724 116,111
packages for a year (i.e. 10 more months)
Annual Sales 99,405 152,422

Forecast Method 2
Total Runners 348,000 348,000
Total Cyclists 19,150 19,150
Total Athletes 367,150 367,150

18% who might purchase Muscle RDX for first-

66,087 95,459
time adding 8% each subsequent year
plus 72% first-time users buy a second package 47,583 68,730
plus 55% of first-time users continue to buy
363,479 525,025
packages for a year (i.e. 10 more months)
Annual Sales 477,149 689,214

Forecast Method 3

Total Runners (Tier 1 & 2 Cities only) 276,000 276,000

60% of Total Cyclists 11,490 11,490
Total Athletes 287,490 287,490

25% who might purchase Muscle RDX for first-

71,873 94,872
time adding 8% each subsequent year
plus 72% first-time users buy a second package 51,749 68,308
plus 55% of first-time users continue to buy
395,302 521,796
packages for a year (i.e. 10 more months)
Annual Sales 518,924 684,976
Year 3 Year 4 Year 5
348,000 348,000 348,000
19,150 19,150 19,150
367,150 367,150 367,150
91,788 91,788 91,788

28,454 35,797 43,140 unit sales

20,487 25,774 31,061 unit sales

156,497 196,884 237,270 unit sales

205,438 258,455 311,471 unit sales

348,000 348,000 348,000

19,150 19,150 19,150
367,150 367,150 367,150

124,831 154,203 183,575 unit sales

89,878 111,026 132,174 unit sales

686,571 848,117 1,009,663 unit sales

901,280 1,113,346 1,325,412 unit sales

276,000 276,000 276,000

11,490 11,490 11,490
287,490 287,490 287,490

117,871 140,870 163,869 unit sales

84,867 101,426 117,986 unit sales
648,291 774,785 901,280 unit sales

851,029 1,017,081 1,183,135 unit sales

3750 6750
2250 4050
450 810

6450 11610
 Gross Margin Forecast
Manufacturer gross margin per unit * forecasted annual unit sales

Pricing Option 1 Year 1 Year 2

Using Forecast Method 1 67,595,400.00 103,646,960.00
Using Forecast Method 2 324,461,320.00 468,665,520.00
Using Forecast Method 3 352,868,320.00 465,783,680.00

Pricing Option 2 Year 1 Year 2

Using Forecast Method 1 139,167,000.00 213,390,800.00
Using Forecast Method 2 668,008,600.00 964,899,600.00
Using Forecast Method 3 726,493,600.00 958,966,400.00

Pricing Option 3 Year 1 Year 2

Using Forecast Method 1 186,881,400.00 286,553,360.00
Using Forecast Method 2 897,040,120.00 1,295,722,320.00
Using Forecast Method 3 975,577,120.00 1,287,754,880.00
Margin Forecast
Year 3 Year 4 Year 5 Cumulative
139,697,840.00 175,749,400.00 211,800,280.00 698,489,880.00
612,870,400.00 757,075,280.00 901,280,160.00 3,064,352,680.00
578,699,720.00 691,615,080.00 804,531,800.00 2,893,498,600.00

Year 3 Year 4 Year 5 Cumulative

287,613,200.00 361,837,000.00 436,059,400.00 1,438,067,400.00
1,261,792,000.00 1,558,684,400.00 1,855,576,800.00 6,308,961,400.00
1,191,440,600.00 1,423,913,400.00 1,656,389,000.00 5,957,203,000.00

Year 3 Year 4 Year 5 Cumulative

386,223,440.00 485,895,400.00 585,565,480.00 1,931,119,080.00
1,694,406,400.00 2,093,090,480.00 2,491,774,560.00 8,472,033,880.00
1,599,934,520.00 1,912,112,280.00 2,224,293,800.00 7,999,672,600.00

600,000,000.00
1,200,000,000.00
1,200,000,000.00
3,000,000,000.00
 EXPENSES

Total Advertising Cost 100,000,000.00

Total Manufacturing Cost 120,000,000.00

Total Budget (Yearly) 220,000,000.00

R&D Cost (Sunk Cost) 1,200,000,000.00

 Assumptions:
Ongoing as %
Year 1 Ongoing of Year 1
Total Advertising 100,000,000.00 50,000,000.00 50%

Fixed Manufacturing Costs 120,000,000.00 120,000,000.00 100%

Total Budget 220,000,000.00 170,000,000.00

 Total Fixed Costs
Sunk Costs Year 1 Year 2
Advertising 100,000,000 50,000,000
Manufacturing/OH 120,000,000 120,000,000
R&D 1,200,000,000 - -
Total 1,200,000,000 220,000,000 170,000,000
tal Fixed Costs
Year 3 Year 4 Year 5 Cumulative
50,000,000 50,000,000 50,000,000 300,000,000
120,000,000 120,000,000 120,000,000 600,000,000
- - - 1,200,000,000
170,000,000 170,000,000 170,000,000 2,100,000,000
 ROI

(5yr cumulative gross margin - 5yr cumulative fixed costs)/ 5yr cumulative fixed costs

Pricing Option 1 4,500

Using Forecast Method 1 -0.67
Using Forecast Method 2 0.46
Using Forecast Method 3 0.38

Pricing Option 2 5,400

Best Forecast 2 and 3 give an ROI
Using Forecast Method 1 -0.32
Pricing greater than the target of 100% in
Using Forecast Method 2 2 Option 5 Years.
Using Forecast Method 3 1.84

Pricing Option 3 6,000

Forecast 2 and 3 give an ROI
Using Forecast Method 1 -0.08
greater than the target of 100% in
Using Forecast Method 2 3.03 5 Years.
Using Forecast Method 3 2.81