Coca-Cola HBC Romania SRL

Cristina Colacel,

Martie 2010

IntelegereaIntelegerea cumparatoruluicumparatorului sisi a a

magazinuluimagazinului

ModuriModuri de de adaptareadaptare sisi sustineresustinere a a

vanzarilorvanzarilor

Today there are 3 key issues:

no activation…

too much activation…

and activation

that doesn’t

speak to the

shopper

Shopper Marketing is Really Quite Simple….

“The “shop” and “buy” decisions go beyond the realm of the

electric field analogy. With this random utility framework, we

can write down the likelihood regarding the shopper’s visit

decision and theoretically predict the stochastic nature of

shopper movements.”

21 24 2934

69 6763

59

7 6 53 3 4 4

4

2005 2006 2007 2008

Other storetypes

Kiosks

Food Stores

Hyper/Supermarkes

Romania - Value Shares by Channel (%)

+20%in value

• Total FMCG retail market* increased by 27% in 2008, mainly driven by increased

volumes (+16%)

•Traditional trade decreased in value share, but recorded a significant increase in absolute

value.

+21%in value

Nielsen: Shopper trends 2009

38

28

105

13

3 1

53

1916

5 61 0

0

10

20

30

40

50

60

70

80

90

100

Hypermarkets Supermarkets Discount Stores Cash & Carry Traditional

Grocery

Open Market Kiosk

2008 2009

MODERN TRADE

63% - 200577% - 200681% - 2008

93% - 2009

MODERN TRADE

63% - 200577% - 200681% - 2008

93% - 2009

TRADITIONAL TRADE37% - 2005

23% - 200619% - 2008

7% - 2009

TRADITIONAL TRADE37% - 2005

23% - 200619% - 2008

7% - 2009

Data in %

Shopper cut their budget from traditional trade

Nielsen: Shopper trends 2009

4

6

23

2

16

1312

7

5

3

56

23 3

19

1211

65

34

6

2

43

18

109

5 5

2

Hypermarkets Supermarkets Cash & Carry Discount

Stores

Petrol Stations Bakeries Kiosk Traditional

Grocery

Open Market Vegetable

Vendor

Butcher

2006 2008 2009

•Traditional Trade being less visited

Nielsen: Shopper trends 2009

RTD Buyers visit Grocery and Kiosk outlets most frequently

Average no. of visits a week

RTD

Grocery 3.83

Kiosk 3.39

CSD and Beer make up the largest percentage of NARTD purchase in Traditional Trade

The grocery channel shows the highest percentage of planned shopping.

Stores% Planned

Shopping Trip

% who planned RTD

purchase (of those who

planned shopping trip)

Grocery 59% 59%

Kiosk 41% 58%

And the reason for RTD purchase is highest for regular usual daily shopping - 48% while in Kiosk

urgent item is dominant - 35%

Activations Awareness - Groceries & Kiosks

POS Material Warm Space Chilling Equipment

67%

11%

5%

38%

56%

5%

29%

11%

Grocery(n=352)

Kiosk(n=170)

Grocery(n=151)

Grocery(n=709)

Kiosk(n=481)

* Warm display includes classic display, plastic racks display, metal racks display, stacker display

The activation zone of the RTD, especially POSM materials and cold drink equipment has a high

awareness for the shopper

Economic environment influenced 2009

everybody's performance

� “Growth” was -7.2% in 2009 ……………..

� …and we got the chance that Romania failed into

recession

� Consumer spending, which grew 11.6% in 2008,

decelerated at 8.2% in 2009

� And, the unemployment rate grew up to 8.9%

� As elsewhere, there was some consolation from a lower

inflation rate, which dropped from 7.9% to 5.6% and

Source: The Economist

18.9% 15.6%

14.7%14.7%

4.2%5.3%

9.0%8.9%

8.0% 9.7%

23.1% 21.6%

11.5% 13.0%

2008 2009

Processed meat and frozen vegetables

Pastry/flour

Beer

Dairy

Coffee

Bread

Snacks

AFB

Alcoholic drinks

14.5%11.9%

5.7%5.7%

2.0%2.3%

3.5%3.3%

5.1%5.0%

17.4%16.0%

28.2%32.5%

2008 2009

Transaction Value

Romania – FMCG trend in Traditional Trade

Total FMCG

(n=700)

Total Food

(n=289)

Total

Non-Food

(n=225)

Total

Beverages

(n=186)

54

23

22

16

7

2

60

19

21

18

5

1

52

28

20

16

7

2

51

19

25

15

9

3

Buy more Private Labels than used

to

Buy multipacks more often than

usually

Buy category less frequently

Look for price promotions more

than used to

Buy less expensive brands

Buy less of the same brand

Crisis’ Impact on Purchase Behaviour

Traditional Trade in figures for CocaTraditional Trade in figures for Coca--Cola Hellenic Cola Hellenic

(Revenue(Revenue’’09)09)

Main Channels - share in total Off Premise

(Traditional Trade)

66%

14%

2%

17%

1%

Kiosk

Groceries

Petroleum

SMK/ette

Other OFF Premise

How we activated the shopper in this environment?How we activated the shopper in this environment?

Value Activities

Consumer Promotion

Tailored Shopper activation

How we activated the shopper in this environment?How we activated the shopper in this environment?

� Targeted shopper message

� Price must be clear communicated

� at the point of sale

� on package

� impulse zone – placements

� Emphasize the impulse zone through innovative placements

Value Activities

+23% Vs Trend

How we activated the shopper in this environment?How we activated the shopper in this environment?

� Targeted consumer & shopper message

� Prizes & mechanic more visible

� on POSM

� on participants package

� Placements to activate the impulse zone

Consumer Promotion

+9% Vs Trend

How we activated the shopper in this environment?How we activated the shopper in this environment?

� Targeted shopper message

� Tailored channel activation

� dedicated mechanic

� attractive reward for transaction size

� Placements to activate the impulse zone

Tailored Shopper Activation

+11% Vs Trend

How we activated the store?How we activated the store?

Thank You!