PHYSICAL AND DIGITAL RTM TO SECURE LAST MILE SEGMENTED EXECUTION Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
NIGERIA AT A GLANCE COUNTRY OVERVIEW… 2020 PERFORMANCE HIGHLIGHTS 309 Million UC +13% vs. PY Population 206M Ethnic Groups 250 3.4 Billion Annual growth rate +2.6% Most populous are Hausa, Yoruba & Igbo Transactions +12.1% vs. PY 70% 1M 509 Million Under the Bev. Outlets Age of 29 Universe Revenue (NSR EUR) +7.6%vsPY Source: Nielsen+Canadean YTD Nov’20, IHS, National Bureau of Statistics IND : Industry Quantities in Euro Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
70 YEARS OF WINNING WITH NIGERIA! NIGERIA TODAY… 1.4k STARTED IN 1951 8 Suppliers (90% Local 1st Bottling Plants facility in SMEs) Ebute-Metta 2.8k 112k FTEs Direct Retail GROWTH JOURNEY outlets 150 202 258 309 SME: Small & Medium Scale Enterprises People: Pre-Covid photos 2007 2013 (MUC) 2016 2020 Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
OUR SYSTEM VISION : BEST BUSINESS UNIT IN AFRICA 2025 VISION Profitable Leadership SSD Value Our People NSR Share Net exporter > 1 Bn € of talent >50% NSR/UC>2€ Vol>500MUC Our Customers BEST BOTTLER Sustainability & Consumers IN AFRICA & Community & BEYOND Best-in-class Lead Water Stewardship Service level and Youth & Women Empowerment Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
RTM HAS BEEN, OVER THE YEARS, A KEY ENABLER OF HELLENIC EXECUTION EXCELLENCE EXECUTION ENABLED BY EVOLVING EXCELLENCE IS UNDISPUTED AHEAD OF IN THE DNA OF LEADERSHIP COMPETITION IN ROUTE TO AND LEAD COCA-COLA THE WAY HELLENIC MARKET 3 1 2 Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
NOW A LOT OF BUZZ WORDS AROUND PHYSICAL/ DIGITAL RTM … Execution excellence Digital BDAA PhRyTsMical CCoononleecrted R T M B2B e r c e eI mcoaggnei i o n pDaibgiilti taile e C eComm t a b2c Cluster CSoevegexmreacegunettieodn R s S=1 B2B2C Fesettr o n t h Prospecting e e t Customer Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
…AND TRENDS THAT ARE GOING TO SHAKE OUR RTM MODEL… FROM A TRADITIONAL DSD & ISD… …TO AN OMNICHANNEL RTM PHYSICAL DIGITAL & DATA rethink how to increase influence New way of working with customers at outlet level, dependency on requires upskilling in e-commerce and new capabilities to leverage 3rd party, WHS consolidation and on the power of data less direct sales data DISRUPTIVE DIGITAL PARTNERSHIPS AND PHYSICAL INTEGRATION Teaming-up with external partners to disrupt and Accompanying customers and consumers along all rethink industry value chain touch points DIRECT TO CONSUMER COVID-19 RELATIONSHIP Shift in drinking moments, Establishing a bond with the unpredictable channel end shopper & consumer closures (Horeca) WORLD IS CHANGING RAPIDLY – DISRUPTION & ADAPTATION ARE NEW MANTRA Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
…ASKING FOR FRAMEWORK AND CAPABILITIES TO SECURE LAST MILE SEGMENTED EXECUTION… CONSOLIDATION RTM LEVERAGE OF DATA ARTIFICIAL Physical Digital INTELLIGENCE develop 360-degree view B2B SOLUTIONS of our customer, across all S=1 B2B B2C touchpoints, through Clustering, CCAF, for connected stores like Intelligent algorithms and RED, etc. 1=Outlet CCH Qwell, smart coolers, image insights powered by BDAA or Home Customers Alfies recognition, etc. Portal, Sirvis ACCELERATE BDAA B2B2C NEXT AVAILABILITY AND SE 2.0 Wabi GENERATION INTELLIGENCE IN SALES FORCE ALL CHANNELS tech enabled having to serve our customers and a stronger focus on match true 24/7 availability customer selling and activation ITS TIME FOR TRANSFORMATION RTM 2.0 Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
…AND MAKE S=1 A REALITY In Store Coolers Display Promotion Channels (Digital/ Premium Service Visit Frequency Contact Strategy Activations, Pricing Tele sales, Bot, & SLA’s Apps branding E-Com ENGAGE AND SERVE S=1 SELL AND SERVE Value Potential Target CONSUMER STRATEGY Assortment Marketing CUSTOMER STRATEGY Store Customize and Personalize Customize and Personalize Outlet Coverage Attributes activities to impact end consumer the service across channels Competitive Buying Behavior LOCATION presence PROFILE INTELLIGENCE HH Patterns UNDERSTANDING Understand Everything and Everyone around the customer Understand Customer Profile Profitability Demand Pattern CCH Value Potential Points of Traffic / HH Contact Strategy Loyalty Interest Footfall Profile Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
OPPORTUNITIES FOR PHYSICAL RTM Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
TRANSFORMING PHYSICAL RTM – 2.0 ACCELERATION, LEVERAGING THE PRINCIPLES OF 12 STEPS REBOOT FRAMEWORK THAT FORMS THE BACKBONE OF RTM 12 STEPS REBOOT FRAMEWORK 1a. Goals and ASSESSMENT 1b. Capabilities RTM Execution Logistics Sales Prospecting Picture of Customer Order 2a. Remodel success development management Physical Digital B2B Inventory Customer Distribution Collections 2b. Planning S=1 B2B B2C deployment Clustering, CCAF, Warehousing RED, etc. 1=Outlet CCH Qwell, or Home Customers Alfies Portal, Sirvis BDAA B2B2C Equipment Merchandising Incentives Compliance SE 2.0 Wabi management 3b. Rollout IMPLEMENTATION 3a. Pilot test Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
EACH OF THESE PILLARS HAVE A POTENTIAL FOR TRANSFOMING WITH DATA, DIGITAL AND INTELLIGENT CAPABILITIES THAT DRIVE 2.0 ACCELERATION * Sales Prospecting Picture of Customer Order Leverage external location success development management geo-location data to identify all Data driven POS leveraging multi- Intelligent contact strategy and visit Intelligent and personalized order recommendation possible outlets, and prospecting dimensional customer profile frequency, that is dynamic and linked for each outlet. Ability with BD to offer data led algorithm provides prioritization segmentation, enabled by BDAA to customer profile, value potential, advise on what to Buy and at right frequency. based on “potential value” today. Customized and personalized etc. Data led upselling that has maximum probability POS is redefined per cluster* and potential. Suggested orders also include segment* channel* customer* region upsell potential Logistics Inventory Customer Collections deployment Warehousing Distribution Execution Equipment Merchandising Incentives Compliance management Data and detailed profiles from • Merchandising is done based on • BD has ability for real time performance Image recognition driven RED to facilitate personalized LOS drives personalized POS and BDAA enabled management, whether he/she will achieve the compliance Image Recognition and increase investments in Coolers suggested activities leveraging data and target. Personalized performance application that accuracy and efficiency (time and cost reduction) insights on store and location intelligence. leverages his data and customer insights to make of RED surveys, makes audit redundant, recommendations on how we can achieve his generates data for BDAA use cases • Store owner to merchandise our asset target and drive consumer centric incentivization -compliance verified through IR • Customer has ability for real time PfP execution level tracking, enabled by IR *integration to Logistics components are covered in Supply chain booth Preparation of the visit In store with customer Performance Management Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
BIG DATA AND ADVANCED ANALYTICS FORM THE FOUNDATION OF THESE INTELLIGENT CAPABILITIES, POWERING TRANSFORMATIVE USE CASES INTERNAL Feedback loop PROSPECTING & EXTERNAL (to drive market EDS) Big Data Lake DATA Powered by CLUSTERING intelligent algorithms (to drive CCAF) Feedback loop BDAA SEGMENTATION (to drive PICOS and Execution by Trade Channel and Consumption Occasions) SEGMENTED EXECUTION (to drive Suggested activity / orders /target marketing) OTHERS……. Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
WE DEMONSTRATE TODAY, HOW LIFE OF A BD AND OUR CUSTOMER IS CHANGING WITH THESE TRANSFORMATIVE USE CASES DAY IN LIFE OF A BD Focus of use cases demonstrated Starts his day In store Capturing the Reviewing and is preparing with actions from his the visit the customer customer meeting performance PRIONGRESS FULOTUORKEING Modern Prospecting Tool Suggested Orders Voice enabled SFA capture Sales Bonus Application Trade HORECA Outlet Segmentation End 2 End Activation Voice enabled SFA capture Power BI solution Outlet Segmentation Image recognition enabled Time and Motion Dashboard Personalized PoS Red Sales Bonus Application Suggested Orders Power BI solution Recommended Activities Time and Motion Dashboard Intelligent Cooler Placements Image recognition enabled Red Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
USE CASE 1: OUTLET PROSPECTING Problem to be solved: Big Idea: Use Case: How to find the high potential Create a predictive model to This idea applies to the OOH market outlets in the ever-changing support prospecting activity, and can be used both by our BDs and universe based on objective data making it more effective and external hunters, that can use the tool without the necessity to do an optimizing our BD time & motion to organize their prospecting activity expensive EDS every time thus increasing sales productivity focusing on finding and codifying high potential new customers Size of prize Time to market: Investment Find new ~20k P/G outlets to be 2-3 months to develop Opex: served by our BDs the model and the application • 60k€ to buy the Ho.Re.Ca. universe (with 2 update) • 30k€ to develop the app • BDAA resources Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
IMPROVING OUTLET PROSPECTING PROCESS WITH DATA We call on 1,2mn from an active universe of 1,8mn customers (67%) and a potential total universe of > 3,0mn In KIFT we targeted to increase outlet coverage on a shrinking universe to 78% (+200k customer) FOCUS Collect / Match with Cluster Visit Follow up and Download outlet CCH current potential prospecting measure master data outlets universe outlets conversion rate HOW & WHEN: Internal: Light: CCH BD: Success: • Clear matching parameter • Based on basic parameters • With clear geographic • Activate customer code Physical EDS: • Assign normal CCAF • smaller geographic (i.e.: Geocode) (i.e.: no. of reviews, ratings) responsibility Competitor: • Easy to automate • Example: Poland* • Lower potential / density • Keep in master data (“C”) territory Outsource: BDAA driven: Hunter: • low labor costs • Complex matching process • With look a like model built on • High potential & density & sell non-exclusive • no available digital data • Available expert on • Strong competitive landscape categories (i.e.: Energy, Digital EDS: cross-resource data Tele-Hunter (CCC): Spirit, Coffee etc.) • Data available the marked (i.e.: data • Example: Italy* & Coffee* • For huge geographic territories • Assign dedicated CCAF • Cost of data < cost sharing partner) • High no. of outlets with low Suppression: • non validated potential of labor accuracy of potential estimation • Volatile environment Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
COKE OUTLET PROSPECTING TOOL FOR IC CUSTOMERS: VISUALIZE POS POTENTIALS AND INFO WITH GEO-MAPPING DB SETTING GEO-MAPPING PROSPECTING INSTANT SURVEY FIELD FEEDBACK CONSOLE POS are assigned with Interactive map with Filter console that helps MD can instantly go to MD run the segmentation a potential level based on geo-localized pos MD trough navigation the POS collect the info survey to assign the cluster a look a like model built on iFSA and codify it (model accuracy improves) on cross-resource data CCH POS Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
INTELLIGENT HORECA PROSPECTING WITH BDAA DRIVEN COFFEE INDEX EXTENDED OUTLET ENRICH WITH CREATE COFFEE UNIVERSE DEMOGRAPHICS INDEX • Leverage purchased, external • Enrich the outlet sentiment data • Combine all the data to create an location data on outlet universe with location intelligence index that incorporates different of F&B PoI’s* information (age groups, aspects of an outlet into a single (not only our master data) consumer spending, traffic, etc., index, to assess customer POI’s.) around the outlet. experience and find potential • Incorporate sentiment analysis data from Facebook, TripAdvisor, • Focused prospecting effort and Yelp, and other social sources sampling on outlet having coffee to identify consumer sentiment index >0.6 towards the outlet *bars/hotels/POS Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
USE CASE 2: OUTLET CLUSTERING (POWERED BY BDAA OR BASED ON MD SURVEY) Problem to be solved: Big Idea: Use Case: Have a clear view of the potential Develop a multidimensional This idea applies both to the OOH of our customer base, clustering model, developed and MT; BD plays a pivotal role considering our evolving 24/7 combining different data sources: collecting info from the market. portfolio, in order to define the outcome will be clusters based on BDAA model can be developed to correct CCAF and as enabler of VPO and identification of top further sophisticate the clustering the segmented execution Outlets per category & occasion Size of prize Time to market: Investment WIP, to be completed post the • 2 months to collet the info • 30-50K for external POI and other completion of Italy work • 2 months to develop the BDAA data from third party for location intelligence model (if market already has available segmented execution • BDAA resources data that can be reused) Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
CCAF DRIVEN BY CLUSTER POTENTIAL, WHILE SEGMENTS DRIVING PICOS AND PERSONALIZED EXECUTION, POWERED BY BDAA Outlet Segmentation: Drive PICOS and Execution by Trade Channel and Consumption Occasions BDAA driven segmentation Bar City Center … Affordable Middle Class … Trade channels Restaurant Bar BDAA driven VPO Lunch Bar Multi specialized Casual Fine Dining … Lunch Bar Multi specialized Picos 6 Platinum Picos1 Segmented execution Outlet Gold Picos 2 Picos 7 Clustering Picos 8 Silver Picos 3 … (VPO): Drive CCAF Bronze Picos 4 & level of investment Iron Picos 5 Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
OUTLET CLUSTERING MODEL POWERED BY BDAA, INFORMING CCAF SEGMENTATION Outlet Database enrichment Outlet Potential model powered by BDAA Outlet Potential by trade channel / category CCH DATA POINT OF Population Incidence Transaction Amount INTEREST Platinum (MD survey, RED…) # visits Category & Gold competitor Silver Outlet DB Point of Frequent presence Bronze interests visitor Iron FOOTFALL Point of Visit DATA Visit duration duration interests Income based on Traffic Consumption mobile tracking generators class Consumption occasion Price occasion key SKU SOCIO DEMO Enrich outlet profile by collecting data Develop a machine learning model to estimate the VPO by outlet – both external (e.g. footfall) and internal VPO threshold defined on profit to serve analysis (e.g. MD survey) Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
USE CASE 3: SEGMENTED EXECUTION (OUTLET SEGMENTATION AND LOCATION INTELLIGENCE FOR SUGGESTED ORDERS , RECOMMENDED ACTIVITIES AND END TO END TARGETED CUSTOMER AND CONSUMER MARKETING) Problem to be solved: Big Idea: Use Case: Current execution process is To segment customers into groups Advanced prediction model, to provide supported by PICOS defined through with common needs and who respond personalized assortment high level CCAFBusiness developer similarly to an execution lever and recommendation and activities to the and judgemnet based. There is gain competitive advantage driven by Business developer, based on store profile opportunity to improve execution data driven insights. Leverage insights and location intelligence. In addition, excellenece through data driven on what happened instore with what's marketers use this data to drive targeted approach around the store in terms of Point of campaigns by selecting particular store Interests, consumers demographics, types in a particular area. traffic, etc. to drive targeted and personalized execution Size of prize Time to market: Investment • Benefit across all functions, • 3-4 months per country 200-250k per market for the build including Sales, marketing and • 5-6 months to go live with of solution and operationalization commercial an operationalized solution • Upto 1%-1.5% uplift in volume due to intelligent recommendations • Targeted marketing campaigns with over 10% response uplift Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
SEGMENTED EXECUTION – PERSONALIZED EXECUTION LEVERAGING ADVANCED ANALYTICS 360-DEGREE VIEW LOCATION MULTI-DIMENSIONAL OF OUTLET INTELLIGENCE SEGMENTATION +External Data Understand what is happening + Group Customers with similar Combine External and Internal around the outlet trade activities data at outlet level Greater Lagos, Nigeria • Demographics S1 HIGH VALUE PRIME LOCATION • Traffic • Point of Interest S2 HIGH VALUE MIDDLE CLASS • Customer Info S3 AFFORDABLE MIDDLE CLASS • Sales S4 AFFORDABLE LOW INCOME • RED Internal Data • IoT • Outlet Surveys SUGGESTED ORDER FOR BD’S RECOMMENDED ACTIVITIES FOR BD’S TARGET GROUP & CAMPAIGNS Assortment for each Outlet Activities for each Outlet Segmented Marketing for Consumers Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
SEGMENTED EXECUTION – PERSONALIZED EXECUTION LEVERAGING ADVANCED ANALYTICS DYNAMIC + SELF LEARNING RECOMMENDATIONS ENGINE Business Developer receives Engine learns from Busines refreshed and updated developers’ feedback and adapts recommendations for next visit recommendations for every visit Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
SEGMENTED EXECUTION IN NIGERIA An example from Greater Lagos using demographic information for suggested orders in the stores confirmed a volume uplift of 5% for FY2020* High Value Prime Location in Greater Lagos (GL) OVERALL SEGMENT STRATEGY Customer Count (active in Total number of outlets in this Segment Total GL • Lower Price sensitivity Dec’20 under RtM) segment • Higher spend potential Outlet % Outlets in this segment as a % of total 25.6K 72K • Focus on acceleration of high value outlets in Greater Lagos 35% Point of Interest (POI) Density Indication of number of points of 0.45 SKUs and categories Poverty Level (below $2) interest around the outlets. Higher 0.28 • Premiumization potential for Energy density indicate more POI’s in the 45% area 21% 87% and Premium Spirits 160/sqkm • High competition indication requires Average Literacy Level Consumer demographics in this 91% 2,000 Population Density segment 274/sqkm stronger Brand engagement, esp. for 7 targeting potential look alike prospect Average Population 3,588 stores Nearby Competition outlet 11 Avg. no of competitive outlets around an outlet in this segment SUGGESTED ORDER DISPERSION EXAMPLE OF FUTURE: OBJECTIVE EXAMPLE RECOMMENDED ACTIONS TARGET GROUP & CAMPAIGNS: 20% 10% 40% • Fully Merchandised Chiller select outlets located in prime locations 20% 10% • Premiumization Posters and which don’t have any cooler placed • Increase In-store Experiential and the YTD volume is higher than 100 UC Activation Temporarily suspended (COVID) Notes* • This is the uplift on areas covered by physical RTM (i.e. where our business developers make a in-person visit to take the orders) • We measure 2 value levers for the uplift –a. Increase in number of products sold to a customer leveraging suggested order; b. Increase of volume sold via suggested orders. a+b is compared to historical volume for that customer to estimate the volume uplift Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
SYSTEM COMPLEMENTARITIES THROUGH END-TO-END CUSTOMER AND CONSUMER MARKETING Product Campaigns Customer/ Consumer Prospects Location Segmented Targeted Events Execution marketing Channels Content INSTORE EXECUTION LOCATION SPECIFIC CONSUMER ACTIVATION THROUGH LOCATION BRAND MARKETING FOR LOCATION SPECIFIC & INSTORE EXECUTION AUDIENCE INTELLIGENCE Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
TARGETED CONSUMER ACTIVATION COMPLEMENTING INSTORE CAMPAIGNS. A LIVE EXAMPLE FROM GREATER LAGOS, HIGH VALUE PRIME LOCATION SEGMENT OOH Consumer Cluster Consumer cluster High volume convergence for High Value Prime overlaid with CCH store hotspots targeted for Location locations for Convergence Consumer Activation Hotspots Complementation 55% enjoy breakfast and/ or lunch outlets at least 4-5 times weekly 62% visits bars • Data of popular times; wait times and visit durations analyzed for targeted locations- or lounges at malls, cinemas, lounges, bars, restaurants. least twice weekly (majorly • These locations are selected for possible opportunities for targeted activation and/or weekends). communication including OOH placements • In locations with a high cluster of POIs, Geofencing activities are combined with targeted premiumization messages tied to partner/customer locations nearby (complementing instore Schweppes campaigns) Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
SEGMENTED EXECUTION: 2020 COMPLIANCE EVOLUTION Delivering a 4% incremental volume uplift in enhanced RtM locations! 40% 7,00 30% 5,25 20% 3,50 10% 1,75 0% jul'2020 '- MH Penetration apr'2020 may'2020 jun'2020 aug'2020 sep'2020 oct'2020 nov'2020 dec'2020 Compliance Avg. Prod (Cust/wk) Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
DELIVERING SUCCESS REQUIRES A CROSS FUNCTIONAL TEAM BSS integrates the BSS BDAA Team Create machine learning enabled multi- output of BDAA Team (Group and dimensional store segmentation and profile, models to SFA Country) and suggest orders and suggested activities Execute in the market RTM, Trade Define and approve the segments Marketing, (#, naming…) based on common and provide feedback Sales Category pattern/ characteristics Marketing to improve the model Sales Provide end to end Trade Trade Define the PICOS for each marketing campaigns Marketing Marketing, segment (assortment, Sales activation, activities) Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
SEGMENTED EXECUTION – INVOLVEMENT OF TEAMS ACROSS THE PROJECT LIFECYCLE BUILD PILOT EXPAND BDAA Mgr/SPOC Data collection, creation of BDAA Test WEB UI, check model output, adjust Monitor compliance, performance, adjust Marketing segments, involve stakeholders, business business rules, monitor business rules, organize SteerCos Shopper&Channel rules Learn Target Group usage, create first Create targeted campaigns, review ComEx Feedback on BDAA segments, link BP BDAA E2E Activations, support on rejection reasons, calibrate, supportive SALES priorities to PicoS and BDAA segments business rules materials for BDs, input for sugg.order Comm.Capabilities Supportive materials for BDs, input for Rtm/Comm.Serv. Feedback on BDAA segments, link BP Support on business rules sugg.order RED priorities to PicoS and BDAA segments Feedback on segments, Execute pilot, give feedback to BDAA Mgr Execute, give feedback to BDAA Mgr pilot territories Onboard/train pilot BDs/TLs Support pilot territories, onboard/train Supportive materials for BDs rest of BD/TL population Feedback on segments, MD governance MD governance MD governance Prepare RED templates considering Monitor correlation between closed Monitor correlation between closed BDAA segments activities and RED gaps trends to ensure activities and RED gaps trends to ensure compliance compliance Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
LEARNINGS FROM COUNTRY ROLL OUT FOR SEGMENTED EXECUTION: ITALY RACI matrix Process / Activity TM & Shopper Commerci Channel RGM Category Business BDAA Experientia Sales Commercial Sales Demand RTM BSS Group Comex alization Insight l Execution capability support planning BDAA Director C I I Design and build the segmented A I C I CC R C I A C C R execution solution A R, A I R, A C C C I A C I C I C I C C RED Picos design I A, R I C R I C I C R I Picos Planogram design (cooler + I I R, A C I I ED + shelf) I I R I I (customer) I Sharepoint doc content IC RR I I C preparation IR I C I Sharepoint doc technical II A, R I I C C R management (tagging) II I I A, R I (customer) I E2E acivation C I R, A R Collection of requests/proposals I IA for the next quarter (including) Quarterly review to manage I I R, A C priorities vs # of activities I I Upload E2E activation in the I I R, A C system C I R R, A I Monitor the progress on weekly C I basis and send reporting I iFSA tech support Monitoring routines (including I I I I R, A KPIs dashboard) A C CCR AC CR Change management catalogue and model monitoring and improvements basis on compliance and tracking R • Responsible A • Accountable C • Consulted I • Informed • Who is/will be doing this task? • Who’s head will roll if this goes wrong? • Anyone who can tell me more about this task? • Anyone whose work depends on this task? • Any stakeholders already identified? • Who has to be kept updated about the progress? • Who is assigned to work on this task? • Who has the authority to take decision? Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
LEARNINGS FROM COUNTRY ROLL OUT FOR SEGMENTED EXECUTION: ITALY, BUILDING A THOROUGH CAPABILITY PLAN TO CASCADE TO THE ENTIRE SALES FORCE POPULATION.. Capabilities plan PHASE I PHASE II PHASE III Content Build Awareness Build Knowledge Manage, Monitor and Accelerate Target population -3 months to Rollout -1 months to Rollout From Rollout on • BDAA Segmented execution Explanation of: • Italy BDAA team + Commercial awareness and business • RED Picos Capabilities department to hold understanding • Refresh on iFSA new BDAA focused routines • New Segments & sub- functionalities • BDAA SegEx KBIs embedded into tradechannels explanation • Impact on BD route BPMS Field routines • iFSA new functionalities demo explanation • Business developers • Team leaders • Area managers • Region managers • Customer team managers • National account managers • Key account managers Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
…AS WELL AS A SET OF ROUTINES TO PROVIDE DEDICATED SUPPORT TO SALES Segmented execution monitoring routines Week 1 Week 1 Week 1 Week 1 ROUTINE M TWT F M TWT F M TWT F M TWT F Routine BDAA: Project team / Trainers / FSM/CTM 8:30 8:30 8:30 8:30 Routine BDAA: Trainer / BAM /TL BAM/FAM Team Meeting Cobra TL/MD (Friday afternoon) 1. Tuesday W1 and W3: Italy BDAA team shares with trainers, FSM OOH and MT and CTM standard monitoring file (separate channel session 1 h each), isolating main trends and call to action. Also, Italy BDAA team will be in charge of communicating updates on open issues/news 2. Wednesday W1-2-3-4: Italy BDAA team shares on a weekly basis with Trainers, TL and BAM the standard monitoring file.Trainers manage the routine with TL and BAM(2) (30 min session): • 5 min: follow-up previous meeting (issue resolution/technical changes/action plan results) • 10 min: round-table for new issues sharing • 10 min: update monitoring file with main gaps and call for action • 5 min: TL define and share specifc action plan together with MDs • Trainer transfer meeting minutes to Italy BDAA team. Italy BDAA team to follow up on open topics to relevant stakeholders 3. «Update BDAA» will be put as first point in the agendas of BAM/FAM’s Staff Meeting and Cobra in W1 and W3: • Bottom up on feedbacks and open issues with new functionalities • Action plan sharing Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient LONG SHORT LONG SHORT
USE CASE 4: RED DONE THROUGH IMAGE RECOGNITION Problem to be solved: Big Idea: Use Case: • Accuracy & Efficiency (time & cost Automate RED measurement with IR • RED Automation: NG, Ireland, and Russia reduction) of RED surveys; Capabilities (Q2 2021: Hungary, Romania, Serbia, Increase Market Analyses Capabilities and Bulgaria) • Insights about SOVI on IPPs level Generates Data for BDAA use cases and category and Competition; • Customer App – IT (in pipeline for 2021: HU) • PfP based on Facts • Make Field Audit Redundant Time to market: Investment Size of prize 4-6 months 50-60K* USD (model establishing cost) 0.015 USD/picture (running cost) 56% RED Audit Saving Example: 170k USD/yearly in NG and 45 USD/yearly in BG *based on1K SKUs training in BG Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
RED IMAGE RECOGNITION USE CASES AND BENEFITS Suggested Actions Data Accuracy Incremental Revenue & +24% Transactions increase Survey RED Audit -27% time -56% saving per Cost Saving customer Live Countries: Russia, Nigeria, Ireland Based on Q2 2021: Hungary, Romania, Serbia, and Bulgaria Nigeria Pilot and by Q4 2021: Poland, Baltics, Adria, NMD, CZ&SK, GR&CY, Italy and Switzerland Use Cases Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
RED DONE THROUGH IMAGE RECOGNITION Is our PICOS/STRATEGY being correctly implemented? PICOS Is it possible to build selling stories or identify new patterns to give customer the best solution to increase Data driven their sell out/margin? PICOS checkpoint and VS gap analysis vs. PICOS\" Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
ANALYSIS ON MARGIN VARIATION 100%OCCUPANCY 36PICOS GAP PICOS MAIN GAPS VS. PICOS Undersized vap 33 Missing range and PET 45 Energy segments 100%OCCUPANCY 0PICOS GAP +7,9% MARGIN INCREASE Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
IMAGE RECOGNITION CAPABILITIES EVOLUTION 1 Availability 2019/2020 2021 2 Shelf share / display 3 Cooler execution Automated Numeric Distribution for all CCH Further optimization on SFA based on pilot countries feedback – SKUs, incl. new launches improve speed and accuracy check Automated SOVI per category on Shelf share + on display Automation of display merchandising standards Automated tracking of CCH chilled availability Merchandising standards on Customer Owned coolers & automation of merchandising compliance of CCH coolers 4 Activation Automated tracking of POP materials, Menu and Activations 5 RSP Image Recognition Accuracy tracking with back-office Automated tracking of printed price recognition on SKU. BW audit team. Automated Fraud detection report for monitoring IR Audit Market Execution Survey automated with Image Further optimization to improve speed and communication to BD MES Recognition based on feedback from pilot countries. Outlet-level intelligence Every Dealer survey - expand market analysis capabilities Transfer of IR results and images to CCH Data lake to be Customer App used as input for BDAA BW report for loyalty points collected from the App to feed internal Hellenic loyalty program with data Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
THE SCOPE OF CONNECTED COOLERS PROJECT INCLUDES A RANGE OF STRATEGIC BUSINESS OBJECTIVES STRUCTURED IN THREE PILLARS: COMMERCIAL Drive Transactions SUPPLY CHAIN thru Digital Improve Exploit Technology Efficiency Engage Consumers with Digital in CDO occasion based promotions at the • Improve customer facing point of sales through Marketing • Predictive diagnostics time & MMLE Platforms (Coca-Cola and 3rd Party • Automated mass Inventory Apps i.e. Customer Apps) • Cooler Efficiency count in the Warehouse* Improvement • Real-time 3rd Party SLA tracking SOLUTION | TECHNICAL ENABLES 1 Proximity Based Solution (SmartTag 2 Single Beacon (for coolers without door or FFM-BB for built-in by manufacturer): Open Fronts and Tops): 4% share 96% share BD PRODUCTIVITY INCREASE BY CONTACTLESS SCANNING COOLER AND BD PRODUCTIVITY INCREASE BD visit opening and asset inventory AND ALL BEACON BENEFITS REVENUE GROWTH BY DIGITAL ENGAGEMENT • Door openings count sensor for actionable Targeted in-app push notification to drive transactions (req. app integration) alerts & reports • Light and cabinet temperature readings • Contactless scanning, consumer engagement * Automated mass Inventory count in the Warehouse (not applicable) until technical solution available with FFM-BB battery life and full fleet is equipped Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
USE CASE 1: IMPROVE EFFICIENCY IMPROVE CUSTOMER FACING TIME COOLER EFFICIENCY IMPROVEMENT Productivity Time increase & MMLE Efficient Placement by counting door opening +4 selling days +3.2% incremental equivalent per year transaction on average per connected cooler + 2.5 transactions increase per day per cooler • Contactless asset detection in SFA for all • Identify and relocate a low performing coolers; coolers in proximity; • Correlate Sales and Door Opening Data to • Bluetooth asset inventory and visit opening. identify opportunity for placement or removal; A Business Developer performs inventory by cooler • Increase Purity and Availability. Bluetooth beacon scanning instead of traditional Identify low performing coolers and improve barcode execution to optimize placements DEPLOYMENT CCH TOTAL 1.5M COOLERS PROGRESS: 316K 490K 571K 2018 2019 2020 Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
USE CASE 2: DRIVE TRANSACTIONS THROUGH DIGITAL DRIVE DIGITAL TRANSACTIONS* Drive sales through push-to-promo notifications TESTIMONIALS CONSUMER ENGAGEGEMNT My Sparx App Shake&Take App Dove Conviene 24% conversion: 8% Conversion 3rd party App 1 out of 4 pushes rate in July-Sept Capmain in IT with leads to a sale 2018 Smart Coolers beacons Pilot in BG with MySparx App with Adria pilot with 3rd party app integration connected coolers. with beacons. • Target 11 Mio users of Dove Conviene • Consumer Push to promo messages • Consumer Push to promo messages in MT; content; content with prize; • Shoppers with Dove Conviene app on • Shopper with MySparx receive a • Shoppers with Shake& take it app smartphones will receive a push notification with cooler in proximity to notification to buy Coke 500 ml PET and receive a message about a loyalty buy CCH chilled Coke to register the UTC code under the program to register codes and get closure with instant prize win. prizes. * CCH local markets identify 3rd party apps with potential for a valuable partnership and agree on promo mechanics Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
EVERYTHING WE HAVE SEEN, CAN BE FURTHER EXPLOITED BY STEP CHANGING INDIRECT PARTNER MANAGEMENT AND DELIVER ‘DSD LIKE’ QUALITY EXECUTION Indirect Partner Management should be a X-functional E2E approach covering the following steps and activities STEPS Selection Strategy Point Define Pre- Tracking Enablers and and of Commercial Conditioning and & Negotiation 1. Joint Scorecard segmentation Activities Departure Policy 2. X-functional Innovations 1. JBP & Sell in stories responsibilities KEY 1. Mapping 1. Identify opportunity 1. Analyze value chain 1. Assess current 2. Top 2 Top 3. Routines & actions 1. Data (SDO & TO) ACTIVITIES 2. Selection 2. Define activities (CC & WHS) commercial policy 3. Governance 2. Digitalization and 3. Segmentation 3. Allocate resources 2. Assess qualitative 2. Define new specialization performance commercial policy RESPONSIBLE RTM RGM WHS Managers RTM KEY 1. WHS manager 1. WHS manager 1. WHS manager 1. WHS manager 1. RGM & Marketing 1. Capability 1. WHS manager STAKEHOLDERS 2. Insight 2. RGM & Marketing 2. Comm. Finance 2. RTM 2. Capability 2. RTM 2. BSS, Master data 3. Legal 3. Logistics 3. RTM & Logistics 3. Marketing 3. RTM & Logistics 3. All X-functional 3. Capability Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
TOOLS AND BEST PRACTICES ALREADY EXISTING AND FURTHER CENTRAL DEVELOPMENT ARE ONGOING Selection Strategy Point Define Pre- Tracking Enablers and and of Commercial Conditioning and & Negotiation segmentation Activities Departure Policy Innovations Standard WHS segmentation tool: Value chain calculation example: Wholesale management capability Data sharing and building started: Transfer Order platform Agile Lite Team set up including IT, RU, GR, (SDO) assessment & PL and Group representatives development Best practices: RU, HU, CH Best practices: GR, CH Outputs: Objective: • Job Profile • Provide best in class Different segments and activities example GR: Recommended PFP model coming from KIFT: • Career Path – talent inputs and next steps • Full Curriculum to enable Wholesale technical solution for BUs and 3rd parties Partner management in the Skills and • Automate data mapping Routines of Wholesale KAMS process • Prioritized tools to support capability, i.e. • Provide online reporting JBP template for indirect partner / dashboard solution management • Ensure high-quality • Consolidated best practices from BUs to connection with SAP capability and tools with clear end to end and BDAA process for Wholesale Partner Management • Review and update of Sales Academy for BDs to connect capabilities for execution • Assessment of Sales Academy for Wholesalers BDs Timing: Q2 2021 Timing: Q2 2021 Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
LEVERAGING ON OUR BEST-IN-CLASS INDIRECT PARTNER MANAGEMENT AND “EXTENDED” SALESFORCE WE CAN CLOSE THE DISTRIBUTION GAP AND TARGET A SIZE OF PRIZE OF 53€MN Distribution gap ISD vs DSD +2 96% +23 ISD Data sharing is a KEY 79% DSD enabler to build JBP +20 +10 +8 +29 +20 56% 71% 47% +26 and distribution 54% 76% 53% 53% plans with WHS 46% 66% 45% 42% 37% 53€Mn CCR CCZ Fanta Sprite Water Tea Juice NRG We can leverage on 13k WHS agents, doubling our sales force!!! Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
OPPORTUNITIES FOR DIGITAL RTM Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
DIGITAL RTM: NEW ROUTES TO REACH OUR CUSTOMERS AND CONSUMERS RTM Physical Digital S=1 B2B B2C 1=Outlet CCH Qwell, or Home Customers Alfies Portal, Sirvis B2B BDAA SE 2.0 B2B2C Clustering, CCAF, Wabi RED, etc. Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
TOP REASONS TO BUY NON-ALCOHOLIC BEVERAGES ONLINE €€€ CONVENIENT TIME BULKBUYING 24HR INSPIRATION PRICE & DELIVERY MADE EASY SHOPPING ANDCHOICE PROMOTION 36%1SAVING 45%1 33%1 29%1 22%1 15%1 Online shopping generates incremental non-alcoholic drinks purchasing. Many e-shoppers keep the same offline purchase frequency1 1. Source: Nielsen Digital Shopping, Russia, 25/10/17. S8. What are the reasons for purchasing non-alcoholic beverages in online stores? Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
WE HAVE A SUITE OF DIGITAL SOLUTIONS TO SERVE OUR CUSTOMERS AND CONSUMERS ROUTE TO CUSTOMER ROUTE TO CONSUMER DIGITAL PLATFORMS DIGITAL PLATFORMS E-RETAIL Platform that allow our customer On-demand delivery Brick& (e.g. Carrefour.com) to buy CCH products 24/7 platform to order from Click Open Digital Ecosystem for the Ho.Re.Ca./ traditional Ho.Re.Ca. outlets to buy products trade (from CPG or WHS) and services Platform that delivers Pure (e.g. Amazon) Online distributor operating through beverages directly to Player Logistic Service Provider Qwell the consumer's home One-stop-shop for traditional trade and Ho.Re.Ca outlets to buy Full-portfolio online Food (e.g. JustEat) products (from CPG or WHS) supermarket Service Aggregator ePartnershop Online selling platform for WHS (supported by CCH) Confidential and proprietary information of Coca-Cola HBC AG. Not to be shared beyond the intended recipient
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