The Way of Shopper Marketing Classified - Internal use 1

Winning in Large Stores

Info.shoppermarketing@coca-cola.com

Kelly Marr - Group Director, Commercial Strategy NRS,Small Store Channel Strategy & Marketing

Confidential

Winning in Large Store2014Van Taylor & Claire Quinn

Confidential

Gain Undisputed Leadership For The At-home Beverage

Occasion

• Connect With Mom• Coke With Food

Increase Our Volume, Profit And Share, And Become Our Customers’ Most Valuable Supplier

To Be A Total Beverage

Solution Provider To Our Customers, Resulting In Total Beverage Share

Leadership

MISSION ROLE OBJECTIVE

1 2 3

Large Store - Role of the Channel

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2014 State of theLarge Store

Retail Industry

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Economic Trends Are Gradually Improving, But Real Challenges Remain For Large Stores

Consumer Confidence Remains Low

Total Trips Across Channel Have Fallen

Millennial Spending Insufficient To Replace Boomers

Sources: Nielsen (Todd Hale), Acosta (Why Behind the Buy)

Confidential

19%

-50%

22%

-14%

-9%

20%

-23% Grocery

Drug

CR

Mass

Club

Value

Supercenters

Competition For Large Store Trips Continue To Increase…

Club, Value And Supercenters Win The Long Term Battle For Trips

Online Competitors Threaten To Steal Even More Trips, Especially

From Center Store Categories

2013 Vs. 2001

Confidential

Path-to-Purchase – Infinitely More Complex

Pre-Trip PrepTrip MissionsRetail WebsitesShopper Segments

Shopper CardMobile MarketingIn-store Experiences

Social MediaUser Content

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Large Store Channels Will Grow in Real Terms Over the Next Five Years

Mass Supermarkets Supercenter Club

-4

-2

0

2

4

6

8

'08 -'13'13E - '18E

Source: Kantar Retail projections

Growth in Dollar Sales by Channel – Estimated CAGR

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Retailer Response To Challenging Environment

Everyday Low Pricing

Differentiating via Fresh Platform

Loyalty-based Fuel Programs

Digital Marketing

Winning the Next Generation of Shoppers

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Everyday Low Pricing

Pricing Wars Among Retailers Continue To Be Fierce And More Direct

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Big Focus on Fresh Food and High Quality for all Retailers

Fresh Platforms

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Fuel Rewards Programs Continue to be a Large Store Retailer Focus Where They Can Differentiate Among Other Channels

Emphasis On Fuel Based Loyalty Programs

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Advancement in Digital Pathways Including Advancement in Apps, Personalized Targeted Offers and E-Commerce Capabilities

Digital Shopper Marketing Integration

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Competition to Win Over the Millennial ShopperMillennials: Less Trips Overall, Under Index In Traditional Supermarket Outlets

Opportunities: Youth Recruitment Strategies Across Channel

Warehouse Clubs

Mass Merchandisers

Convenience/Gas

Dollar Stores

Drug Stores

Supercenters

Grocery Stores

12

12

15

15

16

26

67

13

12

15

15

14

25

59

11

12

12

12

13

23

51

9

12

7

9

13

20

43

Greatest Gen

Boomers

Gen X

Millennials

Shopping Trips Per HH by Channel

Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012, based on total basket ring, excluding gas only or Rx only trips

Confidential

2014Large Store

Channel Initiatives

North America Group “Must Wins”

1

2

3

4

5

6

Return Sparkling To Sustainable Growth Led By Trademark Coke (Multicultural Focus)

Aggressively Revitalize Sparkling Category Perception

Fastest Growing And Most Profitable Still PortfolioWith A Focus On Juice, Active Hydration, Tea & Innovation

Create Value With Our CustomersThrough World-class Sales & Demand-driven Supply Chain Capabilities, Continuous Productivity And The Evolution Of Our Business System

Demonstrate Leadership In SustainabilityTo Benefit Our Environment & Communities

Inspire Our People To Deliver Our MissionThrough Capability Development, Engagement & Diversity

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To Win in Large Store, We Must Find Triple Win Solutions

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#1Big Events

#2IC & Chilled

#3Packaging Innovation

#4Product

Innovation

#5Coke with

Food

#6Engage Family

Shoppers

#7RevitalizeCategory

Perceptions

Large Store Channel Initiatives

1 Big Events

●Partnering with retailer to drive excitement in store through large scale 1st position lobby displays connecting emotionally with shoppers

●Key Insights:

­ World Cup: High Engagement for teens with 50% of HA 13-18 playing soccer

­ Olympics: #1 viewed sport among women & families

­ 76% of parents: Olympics is one of few major television events that families can watch together

Leverage The Emotional Connection Consumers Associate With Our BrandsAround Key 2014 Thematic Events

Sources: Nielsen, Simmons, TRU Study, Active Network, Mintel, SMG 2010 WC PPA report, ESPN Sports Poll 2011 Confidential

2 IC & Chilled

●Leverage Full Calendar of Front End Bundles, Focus on Refresh Messaging Tools, Incremental Equipment Placement & Packages

●Key Insights:

­ 60% of IC Purchases: driven by thirst, craving or need

­ 96% of purchases: shopper’s own personal consumption

­ Only 1.4% of Large Store Trips include CCNA IC package. Increasing that ½% would generate incremental $69MM retail & $32MM in GP

Source: Shopper card data from leading US retailer, Nielsen Panel Routine 52WksEnd 03/31/12, Margin Minder *NARTD IC Beverages defined as Fountain, SSD 20oz, Base Water & RTD Tea 20-24oz (NOTE: Enhanced Water, Sports

Drinks & Energy Drinks not included given inability to distinguish between singles sold cold for IC vs warm off the shelf.)

Drive Incidence, Recruitment And Profitability Through Accelerated IC Sales In Large Store

Confidential

3Drive Incidence And Convert Shoppers By Maximizing Occasion Based Packaging Strategy Packaging Innovation

Drive Category Excitement in Large Store Channel with 2014 Calendar of Innovative Packaging Including 6pk 12oz SSD, 3 Gallon POWERADE & 6pk fruitwater

● Sixer Key Insights:

­ Nearly 60% of category buyers are 1-2 members HHs, more so for Light buyers. Fits needs & lifestyles

­ Current 6pk Can buyers make 16% more trips than avg. HH & spend 10% more over entire year

­ Provides flexibility like never before – the right amount,& ability to try something new with lower commitment

Confidential

4Expand Innovation Pipeline To Ensure Sources Of Growth Across All Categories Product Innovation

●Full Portfolio of New Product Innovation Designed to

­ Expand the User Base

­ Drive Increased Transactions

­ Build Commercial Capability

●Maintain Large Store Momentum on 2013 Launches of CFKOZ & fruitwater through marketing activation & new flavor introductions

●Expand Energy Category with vitaminwater introduction – T1 2014

Confidential

5Build A Comprehensive ‘And Food’ Strategy Focused Against (3) Core OccasionsCoke with Food

●Drive Sparkling & key POI purchase incidence through sustaining activation (Deli, Produce, Bakery, Perimeter, Front End, SCO) ~ filtering recommendations through OBPPC architecture

●Power of Many Vision: Fully Maximize Power of Partnerships for Shoppers, Customers & Coca-Cola

●Leverage Coca-Cola QSR Insights to help Large Store Retailers gain share of wallet during dine in lunch & dinner occasions

Take Home Dinner

Lunch to Go & Dine In

Snacking

Confidential

6Reaching Family Shoppers Along the Path to PurchaseEngage Family Shoppers

●Key Initiatives:

­ Reinforce power of Coca-Cola as preferred brand to family meal occasion

­ 61% more prevalent at Lunch; 56% more prevalent at Dinner

­ Creating solutions to capture conversions in all trip missions

­ Generating transactions through digital & social media

●Key Insights:

­ Smaller shopping trips are growing as fewer shoppers stock-up weekly

­ 62% of moms shop via mobile using shopping apps

Confidential

7Support our Social License to Operate through Retail Activation Programs

Revitalize Category Perceptions

●Key Initiatives:

1. Drive Choice Through Availability of Low and No Calorie Options

2. Be Transparent on Nutrition Information

3. Incorporate Themes of Enjoyable Movement and Physical Activity into Marketing Activation

●Key Insights: ­ We offer more than 800 low- and no-calorie beverages –

nearly 25% of our global portfolio

­ We have developed more than 150 of our low- and no-calorie beverages in the last (2) years

­ Since 2000, our average calories per serving have decreased by 9% globally

Confidential Classified - Unclassified

Confidential

Channel Tools & Enablers

✔Look of Success – NEW Automated Template, Expanded Customer Level View

✔IC Acceleration Plan, Deli Opportunities, Project Accordion

✔New Bi-monthly Commercialization Process, PAG Library for NEW, Enhanced & Sustaining Programs

Confidential

Drive Triple Win Solutions Through Our Process

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Thank You

The Way of Shopper Marketing Classified - Internal use

THANK YOUFor additional information please visit the Shopper/Customer Marketing Community at

www.KOSCMarketing.com