2012 warsaw field trip part 5 p 79-96 - coca-cola hbc · pdf filecustomer preference 85 market...
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Our innovation is purposefulOur innovation is purposeful
Monster EnergyMonster EnergyMonster EnergyMonster EnergyMonster EnergyMonster EnergyMonster EnergyMonster Energy
Powerade ZeroPowerade Zero Kropla Beskidu Kropla Beskidu EcoEco--TwistedTwisted
Nestea Green Nestea Green Tea SteviaTea Stevia
CappyCappyRGB 0,2LRGB 0,2L
Burn 1LBurn 1L
Nestea Lemon lightNestea Lemon light
CocaCocaCocaCocaCocaCocaCocaCoca--------ColaColaColaColaColaColaColaCola
Slim canSlim canSlim canSlim canSlim canSlim canSlim canSlim can
OBPPCOBPPCOBPPCOBPPC in Polandin Polandin Polandin Poland
How We CreateHow We CreateHow We CreateHow We Create ValueValueValueValueHow We CreateHow We CreateHow We CreateHow We Create ValueValueValueValueWith Our PortfolioWith Our PortfolioWith Our PortfolioWith Our Portfolio
Our Our OBPPCOBPPC strategiesstrategies create value by create value by
addressing individual consumer needsaddressing individual consumer needs
4.29
1.75L
2.5PLN/L
1.5L PET
3.19PLN/L
4.79
2.5L PET
2.40PLN/L
5.99
2.60PLN/L
2x2L PET
2.50PLN/L
9.49
2.65Avg PLN/L
2.60Avg PLN/L
2.50Avg PLN/L
PLN/L
RSP
3.20PLN/L
4.50PLN/L
5.00PLN/L
12.99 8.99 9.99
4x1L PET 6xcan 4x0.5LPET
+4% +8% +8%
4.75PLN/L
1.19
0.25 CAN2.0L PET
5.19
OBPPCOBPPC strategy is yielding resultsstrategy is yielding results
Our volume grew in Traditional TradeOur volume grew in Traditional TradeOur volume grew in Traditional TradeOur volume grew in Traditional Trade
Pre OBPPC vs PYPre OBPPC vs PYPre OBPPC vs PYPre OBPPC vs PY OBPPC vs PYOBPPC vs PYOBPPC vs PYOBPPC vs PY
…………while while while while improvimprovimprovimprovinginginging profitable mixprofitable mixprofitable mixprofitable mix
82% 74%
Core SSD >1L
...all...all--time high NARTD value sharetime high NARTD value share
CCH is the key driver of category growthCCH is the key driver of category growthCCH is the key driver of category growthCCH is the key driver of category growth
YTD ‘11 YTD ‘12
Modern Trade Core SSD pack mix
Source : Internal SAP April YTD data
Core SSD <=1L26%
82% 74%
18%
+8pp
Contribution toContribution toContribution toContribution to
value growthvalue growthvalue growthvalue growth
Share in Share in Share in Share in
sales valuesales valuesales valuesales value
CCHCCHCCHCCH
otherotherotherother
SSD Single Serve volume growthSSD Single Serve volume growthSSD Single Serve volume growthSSD Single Serve volume growth
Single Serve packs CAGR 7%
Total business CAGR 6%Cooler penetrationCooler penetrationCooler penetrationCooler penetration
We continue investing in immediate We continue investing in immediate
consumption and trialconsumption and trial
19m uc
26m uc
158158158158
SSD Single serve as a % of total SSD volumeSSD Single serve as a % of total SSD volumeSSD Single serve as a % of total SSD volumeSSD Single serve as a % of total SSD volume
2006 2011per Population (per ‘10 000 )
Number of coolers in Poland (‘000)
111111111111
4141414129292929
2006 2011
Customer Customer PreferencePreference
85
Market Channel mixMarket Channel mixMarket Channel mixMarket Channel mix CCH Channel mixCCH Channel mixCCH Channel mixCCH Channel mix
65%53%
18% 18%
18%30%
52%41%
9% 8%
Modern Trade & Discounters grewModern Trade & Discounters grew
at the expense of Traditional Tradeat the expense of Traditional Trade
Modern Trade Discounters Traditional Trade IC&Petroleum
13% 17%4%
11%
2006 2011
21% 22%
18%
2006 2011
We create shared value with our We create shared value with our
Customers Customers –– TescoTesco ((JoinJointt Value CreationValue Creation))
87
One extra serving per week is 848m
PLN for the market
One extra serving per week is 848m
PLN for the market
If Tesco maintains a 7% share, it would mean 51m PLN
If Tesco maintains a 7% share, it would mean 51m PLN
Agree to do cross-category
activations
Agree to do cross-category
activations
Building upon our preferred Building upon our preferred
supplier statussupplier status
Better results and people Better results and people Better results and people Better results and people
engagement via engagement via engagement via engagement via Hellenic Good Hellenic Good Hellenic Good Hellenic Good
Morning MeetingMorning MeetingMorning MeetingMorning Meetingssss
• Implemented in 8 locations
• 15 locations by the end of 2012
• Q1 2012 results 2% higher year-on-year
than non-HGMM locations
Satisfy Customers Satisfy Customers Satisfy Customers Satisfy Customers andandandand deliver deliver deliver deliver
profitable volume profitable volume profitable volume profitable volume efficientlyefficientlyefficientlyefficiently ----
Customer Customer Customer Customer CCCCareareareare CentreCentreCentreCentre
• 22m uc sold in 2011
• 31% of Poland customers
• Single Point of Contact
Reached high service level – 99%than non-HGMM locations
• Higher engagement & efficiency
• High accountability for daily activities
• Reached high service level – 99%
• Back Office – Central order entry
Community TrustCommunity Trust
89
Community trustCommunity trust
Active LifestyleActive LifestyleActive LifestyleActive Lifestyle
EnvironmentEnvironmentEnvironmentEnvironment• Eco-twisted project
CommunityCommunityCommunityCommunity• Employee voluntary programme
• Disaster relief
• Happy Meal programme
• Programmes with local
communities
• Tree planting
Active LifestyleActive LifestyleActive LifestyleActive Lifestyle• Coca-Cola Cup
• Keep Fit programme
• Running events
• Bike marathons
90
• Eco-twisted project
• Kropla Beskidu Fund
• Rivers for Life: Vistula revitalisation
• Recycling programme with Tesco
• CHP – CO2 reduction programme
Our partners:Our partners:Our partners:Our partners:
CocaCoca--Cola Hellenic Poland AwardsCola Hellenic Poland Awards
Gold Medal by Polish Business
Club for achievements in
2012 2012 2012 2012 2011 2011 2011 2011 2011 2011 2011 2011
91
Coca-Cola Cup Award:
“Patron of Youth Sports”
Club for achievements in
environment protection
Golden Clip
award for
Kropla
Beskidu
Responsible
Business
Forum
Responsible Business Leader
by Employers of Poland
Responsibility
Laurel for
good
environmental
practices by
Lewiatan
Universum
Professional
Survey
distinction
2010201020102010
2008 2008 2008 2008
2008 2008 2008 2008
Cost LeadershipCost Leadership
92
Full SAP integration Full SAP integration since since
January January 20112011
• Planning and dispatching now integrated
• More efficient warehouse & stock management
• Enhanced mobile solutions (e.g. handheld terminals)
• Better cold drink equipment management
• Reporting & benchmarking solutions
• Live in Poland since February
2012 for certain finance and
HR functions
Leading in shared service Leading in shared service initiativesinitiatives
Benefits
94
Benefits
• Leverage investment in SAP
• Increased centralisation and process standardisation
• Improved governance
• Management focuses on value adding activities in the
marketplace
Our investments drive Our investments drive
operating efficienciesoperating efficiencies
•Strong growth, led by SSDs and substantial upside
opportunity towards EU percap level
•Market leadership in NARTD and sparkling
beverages
•Brands connecting with the Polish consumers with
Coca-Cola being the key driver
The potential of our Polish The potential of our Polish
businessbusiness
Coca-Cola being the key driver
•OBPPC strategy creating value by addressing
consumer needs
• Joint value creation driving customer partnerships
•Cost leadership initiatives creating efficiencies
across the board
•Leading towards excellence