Customer Development

Nigeria

Strategic Planning Workshop

Nigeria 1000
September 2009

Update 2009
CD - Nigeria

September 2009

Channel wise Secondary Sales Progress

YTD August 2009 Neighbourhood Lock up Shops Open Market Lock up Shops 37.5

YTD August 2008 23.8

Growth %

Contribution 2009 20%

Contribution 2008 13%

58%

31.2

28.2

11%

16%

17%

Open Market Food Stores

7.5

5.2

44%

4%

3%

Wholesale

115.1

108.2

6%

60%

67%

Total

191.3

165.4

16%

Nigeria - CD Strategy - 2009
UeX Top Nine for 09
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Agree country and category strategies for the key markets Identify at least two innovation ideas per category with potential for ½50m ITO or more in year 1 Own market development Improve sales fundamentals Step change customer service Win with Winning Customers Win with local consumers by unlocking the combined power of BB & BD Drive up CASH and drive down COSTS Simplify Product/SKU range

AACEE CD Thrusts for 2009
Brilliant in-outlet Execution Deliver Outstanding Customer Service

Winning in MT

Unbeatable in GT

Brilliant in-outlet Execution Deliver outstanding Customer Service
1. 2. Deliver 85% CCFOT - FY 09 Deliver 85% OSA Exit 09 1. 2. 3. Define Perfect Store using Channel Blueprints Create 1500 Perfect Stores Design EDGE Score card & measure compliance using Mobile Ultra System

Nigeria CD Strategy 2009
Win with Winning Customers
1. 2. Win in MT Embed performance culture among GT customers using JBP, CVA & Counterpart based TTS

Unbeatable in GT
Right resource & build capability
1. RTM Increase Controlled Coverage from 25,500 to 69,000 Implement Next Gen Dist Model and deliver Maturity Profile Score > 85

2.

IT

Implementing the strategy
Unbeatable in GT

Key Action 2008/09

1. Implement RTM

Implementing a clear channel strategy Clear strategy on how many stores and which store to cover Right Distributors (KD s) Retain focus on wholesale Counterpart based Trade Terms Structure Customer Value Assessment for all GT & MT customers Right size & scale

Start implementing the MT & Top End road map

Population - Income grid : Nigeria
Unbeatable in GT
West 15%

Regional Value Contribution August 2009 YTD
N/West 8% M/Trd 1% S/East 27%

M/Belt 23%

Lagos 26%
S/East Lagos M/Belt West N/West M/Trd

Pop Density

Income

Y

-

HIGH HIGH LOW LOW

HIGH LOW HIGH LOW

B W G

Demographic Prioritization
Unbeatable in GT Source; AC Nielsen 2007
261,367

Nigeria

158,354

419,721

115,944

535,665

Category

Top 42 Cities % 56 % 54 % 57 % 51 % 56 %

Other Urban % 26 % 29 % 25 % 34 % 26 %

URBAN % 82 % 83 % 82 % 85 % 82 %

Rural % 18 % 17 % 22 % 15 % 18 %

National (Euro mln) 214 90 250 214 41

Fabric Cleaning Oral Care Skin Cleansing Savoury Spread

Priority 2007 - 2009 > Top 42 Cities 2010 ± 2011 > Extend to other Urban 2012 > Evaluate Rural

Channel Prioritization
Source; AC Nielsen 2007
Category

TOP 42 Cities

84,911 Neighbourhood Lock-up % 31 35 29 19 36 31

43,329 Open Market % 34 34 46 63 33 34

128,240 N-G+OM

83,919 Table Tops %

49,094 Kiosks %

Detergents - Powders Toothpaste Skin Cleansing Savoury Tea Spread

65 69 75 82 69 65

15 12 10 9 12 15

20 19 15 9 17 20

Priority channels 2007± 2010 > Neighbourhood and Open Market Lock-up Shops and OM Food Stores 2011 ± 2012 > Evaluate Bread Hawking, Mashai as also Kiosk (with Alternate distribution Model)

Route to Market - Nigeria
Unbeatable in GT
Unilever Nigeria 2 Factories Agbara, Oregun

Routes to Market

Key Distributors

Large Super Markets

Wholesalers

Sub distributor

Channels

Small Supermarket

Neighbourhd Lockup Shop

Open Market Lockup Shop

Open market Food store Rural Kiosk/Table Tops

Rural Open market Lock up store Rural Periodic MARKET

Pushcarts

Kiosks

OM Table Tops

CONSUMER / SHOPPERS 140 million
Legend:

Black : From Unilever Blue :From Wholesalers

Red : From Key Distributors Pink : Inter Channel

Nigeria Market Coverage & Visibility Strategy
Unbeatable in GT
Channel Universe 2009 Coverage target SCC Large Super Markets 40 Direct Coverage @ 100% Tea

Absolute priority

Merchandising objective per Category Savoury Fabric cleaning Skin Cleansing Oral

Be the most visible brands & category leaders . Channel Blueprint implementation in 6 stores of the Top 100 CA stores as part of 2010 MT vision. Be the preferred & most visible brands in growing GT channel  20,000 POPs on merchandising in 2009 4 visits a month.  Channel Blueprint implementation - 1100 Perfect Stores Be the preferred & most visible brands in the categoryl  5,000 POPs on merchandising in 2009 8 visits a month.  Channel Blueprint implementation - 300 Perfect Stores in 2009  3,000 merchandised POPs 8 visits a month  100 Perfect Stores Not a priority

Neighborhood Grocery

84,911

Cover 40% = 41,900 stores thru KD s

Open Market Grocery

23,145

Cover 90% = 19,000 stores thru KD s

Open Market Food Stores

20,184

Cover 90% = 7,200 stores thru KD s focusing on Savoury

Kiosk Table Tops Pharmacy Wheel Barrow Hawkers Wholesale

133,127

Mainly Covered through wholesale

2,000

90% coverage - Cover 1,800 in 2009

1,400 on UnI Loyalty program and selective merchandising linked to promotional activities. Cover 69,000 stores by end 2009

Total

263,637

Implementing the strategy
Unbeatable in GT

Key Action 2008/09

2. Next Gen Distributor Model

Joint Business Plan to have Aligned & profitable KD s Improve Distributor Capability
currently 93%

increase maturity profile from 54 to 85%:

Expand Controlled coverage from 25,500 to 69,000 (Priority Channel) Stores Funds, Salesmen, Vans to support : currently 46,000 Improve the quality of store callage Win with wholesale FCS
currently at 57%

1,500 wholesalers on U&1 loyalty plan

Implement basic merchandising in 28,000 stores with 500 merchandisers Front end Automation
All Distributor Sales Reps. (DSR) & Merchandisers use HHT

On Shelf Availability measured for all merchandised Outlets currently 80% Implement 3 bucket structure : Sales, Activation & Capability Standardise DSR baseline assessment & recruitment process Train all DSRs on 6 X 9 Basic Call Procedure & use of HHTs Performance linked Remuneration for KD sales team

Next Gen
ACTIVITY DETAIL

Implementation Network
RTM & NGDM EXECUTION PLAN Updated 23.05.08 FH 2007 Clementina anjay anjay anjay anjay anjay
DESIGN PROPOSAL PILOT DESIGN APPROVAL ROLL OUT IMPLEMENTATION After Channel sale / spend data is available

ROUTE TO MARKET

COMPLETE CHANNEL STRATEGIES - priority Channels and categories /opportunities COMPETITOR BENCHMARKING COVERAGE PLAN CONTACT STRATEGY 3P POP CENSUS RTM APPROVAL RTM IMPLEMENTATION PERF> LINKED TTS CVA

RCDMs Osa Osa

CHANNEL/ SHOPPER UNDERSTANDING CHANNEL ACTIVATION

Clementina Clementina Clementina

CHANNEL GOAL

POP VISION PRIORITY CHANNEL WISE COVERAGE 3P MERCHANDING ROLLOUT PRIORITY CHANNEL MERCHANDIZING WHOLESALE LOYALTY PROGRAM 2 WHOLESALE LOYALTY PROGRAM 3 CHANNEL MARKETIN PLAN CUSTOMER PROFITABILITY EDGElite SCORECARD FCS

anjay

Clementina

anjay/Clem anjay/Clem anjay/Clem

Clementina Osa Yemi
MEASUREMENT INVESTMENT MONITOR Implement SC ESTABLISH BASE 10% IMPROVEMENT Postpone to Next year ?? ACTION PLANNING Full Implementation Embedd EDGE 20% IMPROVEMENT

anjay anjay Osa

KPIs

QOC / QOP OPSOlite PRICE MONITOR 3P VISIBILITY AUDIT EQ (TRADE) DISTRIBUTOR CCFOT DEMAND BASED REPLENISHMENT

Clementina Clementina Yemi Yemi/

C

C

Y TEM

JOINT BUSINESS PLANNING HHT USAGE TPM @KD WAREHOUSE REPLENISHMENT IN TRADE NEW ORGANIZATION ROLES & RESPONSIBILITIES PERF. LINKED REMUNERATION CAPABILITY PLANS SOP

anjay

Done for 30 KDs

anjay/ Yemi Yemi/

C

ORGANIZATIO N

anjay
SALES & ACTIVATION CAPABILITY TEAM CD Trg Mgr shortlisted Capability team Appointment

Folake

anjay
KD' Staff WL 1 MERCHANDIZER TRG. B2B Manual (FF and KD) preparation WL1 INCENTIVE PLAN Linking to CVA

anjay/ Folake

Folake anjay /Folake/ Mike

MATURITY PROFILE

CHANNEL GOALS KPI SYSTEMS ORGANIZATION TOTAL

Clementina Osa Yemi Folake

11 59 52 45 42

ANJAY

 

RE P.

H 2007

Q1 2008

TIME PLAN Q2 2008

 

 

 

 

                                   

 

Q3 2008

Q4 2008

2009

¡ ¡ ¡ ¡

Pre-work

Implement in Top 42 Cities

Pre-work

Implement in Top 42 Cities

Design

Implementation
Plan 2009

Refine the mechanics Agency Pitch & Design Plan 2009 Plan 2009

Plan for Top 5 MT KA
PILOT

ROLLOUT ALL GOLD CUST. Roll-out to 80% value contributing customers PILOT

Repeat for Top 80% Contributing KDs

Roll-out to GOLD customers No plans

Merch & B2B Trg B2B Roll-out

54 70 52 41 54

81 89 52 53 70

83 90 65 55 75

85 90 75 70 80

90 90 80 80 85

Next Generation Distributor Model - Progress
Unbeatable in GT Pillar
Channel Goals

Key actions 
Implementation of Priority Channel wise Coverage in Top 42 Cities Implementation of the Modern Trade roadmap Develop & Pilot Sell More Smile More Retail loyalty Programme in 1100 Neighbourhood Lock up Shops Institutionalize JBP process Review CVA 2009 for all distributors Implement agreed Capability building plans Release Brilliant Basics Manual for KD & Unilever field team

Due
FY 09

Country Maturity Profile Progress

FY 09 Q3 09

120 100 Score (%) 80 60 40 20 0 Channel goals KPI Systems Quarters Organisation Total Q4'06 Q3'07 Q1'08 Q4'08 Q2209

Systems

FY 09 Q3 09 FY 09

Organization
Q1 08 81% 89% 52% 53% Q4 08 94% 92% 74% 78% Q2 09 96% 97% 85% 92%

Q4 06
Channel Goals KPI Systems Organizatio n

Q3 07 54% 70% 52% 41%

Q3 09

13% 59% 48% 33%

KPIs 

Develop & Pilot the CA Shop Score Module and implement in Nigeria Implement QOC for Field force to complement KD Performance linked TTS to ensure meeting business results Embed EDGE & improve FCS

Q3 09

H1 09

Total

38%

54%

70%

85%

93%

Ongoing

Implementing the strategy
Winning in MT

Key Action 2009/10

Vision for 2010 To Be No.1 for Customers

To create a Sustainable, Profitable, and Competitive 175 M Euro CA MT Business by 2010 (2008 = ¼100m)

World Class People

Strategic Investment for Growth

Build Brand Through Customer

Customer Service Excellence

Win @ POP

Right Organization for 4m by 2010

New TTS with counterparts Q3 2009 

TCP & CBP for Top 5 accounts Q4 2009

Start Measuring MT CCFOT Q1 2010

launch Edge in MT

Nigeria CA 2010 MT Vision Update
Winning in MT
Vision House Pillars from Dec.08 MT workshop Right people, right skills 
Set Up 3P Merchandising Structure  Professional Skill GAP analysis  OJT/Classroom Training/External  New look TTS proposal  Sell TTS counterparts to Gold /Silver Accounts Target 2009 YTD Aug 09 Q2,09 Q2,09 Q2,09 July 09 Q3 09 Done Done Ongoing Done Ongoing Comment

Leverage Trading Terms for accelerated growth

Shopper Customer Category Leadership 

Launch Top End in Nigeria  Activate MT contact Plan  Customer CVA  Customer Business Plan  Identify MT core assortment  Launch Edge in all 3P merchandised stores (23)

Apr 09 Q2, 09 Q1,09 Q3 09 Feb. 09 July. 09

Done Done,ongoing Done To conclude in Q4,09 Done Weekly Scores

Brilliant In store execution in Top 100 Stores in CA

Key Points  Skill Upgrade internally /3P an important aspect of development 
Improve cascade from lead countries  YTD 2009 Top End orders placed to SA = 1 mln Euro

Top End Business Live In Nigeria
Winning in MT

Category Skin Cleansing

Product Shower Gel Liquid Hand Wash

Brand Lux??? Lifebuoy???

Arizona

Cherries Global

Skin Hands & Body

Lotion

Lux, Vaseline & Dove

Deodorants

Aerosol & Roll on

Rexona , Axe, Brut, Shield

Seasoning

Knorr & Robertson's

Spreads

Margarine

Flora & Blue Band Gold

Tea

Iced Tea

Lipton???

Ice Cream

Ola

Implementing the strategy
Brilliant in-outlet Execution
Implementing the Perfect Store

Key Action 2008/09

1
Execution!

Define the Perfect Store Look: Channel Blueprints

2

3

Measure Compliance and number of Perfect Stores

Key Actions Perfect Store Blueprint Development Implementation of Channel Blue Print in 1,500 GT stores Implementation of Sales Fundamentals (GT & MT) Q2 2009 Q3 2009 - Q3/Q4 2009

Perfect store Channel Blue print > Neigborhood Lock up store
Methodology
Hotspot Merchandising 
Entrance (airspace / ground space) All category sachets Lead brand sign board with owner name/picture Back of shelf Shelf strips & Shelve Shadow At eye level in entre of store 

Equipment
Signage 1. Multi facet Sachet hanger 2. Knorr Strings hanger 3. Omo Display Stand 7. Shelf strips 8. Shelf Shadow 

Minimum Assortment
Market share +1sku

Core SKU
Variant + pack

Sales KPI ‡ ‡ ‡ Lines per call = 10 Min average bill value = $ xxx Perfect store KPI: 1. OSA (Assortment compliance & availability) 2. Share of Hotspot (Shelf Standard / more than
competition / i.e. 6 out of 10 total sachet hangers)
3. 4. 5.

NPD (as per plan) Promo availability (as per cycle plan) Share of equipment (more than competition
for top 3 categories which account for 80% sales)

Look of Success
Brilliant in-outlet Execution
Implementing the Perfect Store

In Store

Before

Now

Look of Success - Out Store
Brilliant in-outlet Execution
Implementing the Perfect Store

Before

Now

Channel Loyalty Programme Experiment 1
Brilliant in-outlet Execution
Implementing the Perfect Store

Ice breaker Perfect Store roll-out 

Elements 
Business Performance
Sales Targets Marketing Measurable objectives 

Activation @ Selected POP
Shopper Promos Visibility Relationship Building 

PERFECT STORE!
Perfect Store

Channel Program- Sell more Smile More
Brilliant in-outlet Execution
Implementing the Perfect Store 

Aim: The aim of the program is winning @ POS based on the
Channel Insights. 

Objectives:
Increase Share of Basket
To provide Shopper Stickiness To activate the channel based on the Shopper insights

Overall Shift paradigm for the channel
From availability to visible availability Shopper relevant activation

Build Relationship with Trade
Change gears from necessary evil more to her partner in progress Sell more .smile 

Branding: Use platform to launch the Unilever perfect store across the
country
22

Pe fect St o e a d co t o l l ed Sa mpl e Pe f.
1 0 .0

o mpa s o

9 .0

Pefect St o e I dex o t o l l ed Sa mpl e LS a t o a l I dex

305
Fully Activated Perfect store Kick off prog

453

CATEGORY PERFORMANCE

8 .0

7 .0

Coverage/
6 .0

Coverage/Merch

160 500

Merch

5 .0

500

500

500

4 .0

3 .0

2 .0

1 .0

BRAND an '000' Cat. Contri uly Cat. Contri Growth BLUE BAND 1.1 9% 2.7 3% 2 CLOSE-UP 3.5 28% 29.0 36% 8 KNORR 0.7 6% 4.6 6% 7 LIPTON TEA 1.0 8% 9.9 12% 10 LUX CREAM 0.1 1% 0.0 0% 0 LUX SOAP 1.1 9% 3.5 4% 3 OMO 2.8 22% 20.5 25% 7 PEARS 1.0 8% 2.1 3% 2 ROYCO 0.0 0% 2.1 3% 70 TOOTH BRUSH 0.0 0% 5.6 7% 2800 VASELINE 1.2 10% 0.9 1% 1 Total 12.5 100% 80.9 100% 6
July

0 .0 jan feb mar A pr M ay June

*Control sample base of 500. *Perfect Store= Channel kick off program + POS deployment *Completely Perfect Stores commenced in May. *Accelerated growth perf. expected to slow down as new POPs are enrolled.

*Channel Priority brands in Green. *Focus brands growing much faster than non focus brands improving gross margin profile *Focus brands have Dedicated shelves in perfect stores

Sales Fundamentals Readiness
Brilliant in-outlet Execution
Implementing the Perfect Store

NIGERIA
MT GT - Minimum COMPLIANT COMPLIANT COMPLIANT COMPLIANT Q3 2009 COMPLIANT Q1 2010 COMPLIANT COMPLIANT GT - Ideal Q4 Q3 2009 COMPLIANT Q4 2009 COMPLIANT COMPLIANT Q4 2009 Q3 Q4 2009

On Shelf Availability New Product Distribution Product on Distribution (weighted) Share of Shelf vs. Share of Market Price-on-shelf vs. Strategic Price Share of Folder (folders/mailers)

Q3 2009 Q3 2009 COMPLIANT

Product

Place Price Promo

LEGEND:

COMPLIANT

For RED and AMBER cells, Timing indicates by when they will be ready / fully compliant

¥

¦

Score Card_
¥¤

¤ ¢ £¢

¤ ¢ £¢

TRACKED NOW but Definition / Frequency not compliant

NOT TRACKED NOW

Score card_

CD Training & Capability Update 2009
Right Resource and Build Capability
CD TRAINING AND CAPABILITY DEVELOPMENT UPDATE - 2009 S/NO 
§ ¨§

TRAINING PLAN
I U TIO
¨ ¨

TIMELINES
1 Q1-Q4 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q4 Q4

PLANNED
5 277 586 264 527 5 72 110 71 40 63 40 60 60

ACTUAL
5 204 527 287 465 5 72 118 57 40

REMARKS
JAN. FE FE FE TO DATE TO DATE TO DATE

1 2 3 4 5 6 7 8 9 10 11 12 13 14

FO

F M

GUI E RE RUITMENT OF KDSRs 


X TRAINING FOR KDSRs 


DEFENSI E DRI ING FOR KD RESOURCES BASE I NE ASSESSMENT FOR U &KD SALES ADMIN TRAINING USO TRAINING "ONE LOOK OF SUCCESS" TRAINING OMFS SALESMEN TRAINING EDGE TRAINING FOR MERCHANDISERS - PILOT FAM AND MERCHANDISERS TRAINING ACCOUNTABILITY WORKSHOP BEST PRACTICE TRAINING FOR KDs SUPERVISORY SKILLS TRAINING FOR KDMs 
 

©

©

©

MAR TO DATE JUNE JULY JULY JULY AUGUST SEPTEMBER TO BE FIXED OCTOBER OCTOBER

Open Market Food Store Savoury Sales Drive Experiment 2
Right Resource and Build Capability

% CONTRIBUTION
Region Target ---> Knorr Royco Savory

FCS COMPLIANCE
Prod. % 90% LPC 6 ACN Est.

Open Market Food Store Coverage Progress
No. of POPs PLAN (Census) 3M ECO (Aug 09) ACN Est. basis KDSRs PLAN (Census) Actual

SOUTH EAST LAGOS MIDDLE BELT WEST NORTH WEST NATIONAL (KD) NATIONAL (June 09)

37% 27% 14% 21% 1% 100%

19% 6% 52% 8% 15% 100%

29% 17% 31% 15% 8%

4022 7095 1811 3448 1627 18,003

2260 2147 603 1065 1138 7,213

1693 1070 1293 966 380 5,163 4,178

43 27 17 33 16 136

22 19 7 9 14 71

17 9 13 9 9 57 36

100%

Open Market Food Store Savoury Sales Drive
Right Resource and Build Capability

Open Market Food Store Savory Sales Trend

30

25 Weekly Sales (N mln

20

15

10

5

anuary

February

March

April

May

une

Month Weekly RR (N mln)

Deployment of dedicated Food Store Salesmen after training has accelerated sales in the channel

OM Food Store racker    

0

uly

August

September

Looking Forward 2010 - 2012
Customer Development

Strategic Planning Workshop

Nigeria 1000

Looking Forward 2010 .. 2012
Key Thrusts :
Tapping Category / Channel opportunities Improving Availability Winning in Key Stores Winning in Modern Trade & Top End

Key Enablers :
Best in - class Key Distributor Model

Leveraging IT in Sales People & Capabilities Right resourcing for Growth

Key Thrusts 2010 - 2012

Over / Under Trading - Channels
Tapping Category/ Channel Opportunities
Ngh L bi OMO l i g Channel Ari l S Kli Oral CLOS Savoury P Channel acleans Channels k- p p M k l p Ki k

38% 37%) 1.3 1.1 % 3%)

36% 37%) 1.1 0. 33% 34%) 12.7 67% 64%) 0.9 38% 40%) 0.27 39% 42%) 6.5

16% 16%) 1. 0.7 9% 8%) 86.0 7% 9%) 0.7 17% 13%) 0.32 12% 11%) 11.3

10% 10%) 1. 0. 6 15% 14%) 44.0 4% 4%) 0.9 10% 9%) 0.25 8.1% 7.6%)
OUT Mod l Worksheet 

12.8 22% 23%) 0.9 35% 38%) 0.30 41% 39%) 10.1

KNORR + ROYCO Maggi Ski Cl ansing L Spreads BL BAND Channels Premier Channels Simas

8.3

Implications:
1. 2.

3.

In the Neighbourhood Lock-up shops our performance has improved through increased direct coverage & Channel marketing plans We under trade in the Open Market Lock-up shops for most categories and Activation plans need to address it We have been losing strength in indirectly covered channels and need to beef up Wholesale plans.

Over / Under Trading - Regions
Tapping Category/ Channel Opportunities
South East Fabric Cleaning OMO Regions Ariel So Klin Oral CLOSE UP Savoury Regions Macleans Regions 20% 0.8 0.8 74% 12.3 41% 1.1 7% 0.3 92% 76.7 Lagos 21% 1.2 1.2 72% 14.4 35% 1.3 8% 0.4 68% 5.7 Middle Belt 26% 1.9 1.1 86% 14.3 27% 0.7 2% 0.1 68% 7.8 West 21% 2.3 1.2 81% 27.0 31% 0.8 9% 0.3 71% 5.3 North West 13% 1.3 0.7 93% 31.0 22% 0.6 1% 0.1 67% 2.6

KNORR + ROYCO Maggie Skin Cleansing LUX Spreads BLUE BAND Regions Premier Regions Simas

Implications:
1. 2. 3.

We under trade in North West and must address the distribution & portfolio issues urgently. Special focus required in South East for fabric cleaning as we have been losing ground. Oral shares are lower in the 2 largest regions SE & Lagos, and needs to be addressed.

Building Effective Distribution
Improving Availability

#

##  

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$ %

&

&

# 

$ % 

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8

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Building Effective Distribution
Improving Availability
Exit 2008
Controlled Coverage Merchandised POP Monthly Effective Coverage No. of DSRs No. of Vans Field Capability Score ROI Compliance 25,520 28,000 19,233

Exit Q1 2009
36,917 27,824 29,433

Exit Q2 2009
46,660 28,313

August 2009
46,156 28,000 40,543

PLAN Exit 2009
69,000 28,000 62,000

PLAN 2010
77,000 28,000

PLAN 2011
109,593 30,000

PLAN 2012
122,244 30,000

34,590

70,000

100,000

110,000

303 210 46% 65%

372 269 60% 93%

460 289

530 303

610 360

680 400 60% 90%

950 475 65% 90%

1,000 500

58%

56%

56%

70%

90%

90%

90%

Key Points: 

Direct coverage will continue to be focused on the priority channels Groceries & Open Market Food Stores 2011 2012  Expansion to other Urban towns (Evaluate Rural coverage) Expansion to Rural Neighbourhood Groceries, Open Market 

2010

Consolidation of Coverage in Top 42 cities (Evaluate other Urban town coverage)

Urban Coverage norms same as 2009, Rural coverage at 20% of Priority Channel Universe

Enhancing Indirect Reach
Improving Availability

We will use Wholesale as strategic RTM , driving semi-urban & rural reach through : Relationship building using Next Generation Loyalty program Special incentives (bonus points) on focus SKUs Wholesale (In-store) Sales promotion to target their customers In-fibrite Ready To Dispense gifts Activities like Baker s dozen In key feeder markets, wholesalers will be incentivised to run distribution Vans This would require higher Trade investments for Wholesale. By 2011 we can evaluate Upgrading current wholesale Loyalty programme to include running a Wholesale Shopper Loyalty Programme (like Barangay Suki)

Weighted Distribution - Nigeria
Improving Availability

Exit 2008

Exit Q1 2009

Exit Q2 2009

July 2009

PLAN 2009

PLAN 2010

PLAN 2011

PLAN 2012

Omo Close Up Lux Knorr Royco

77.4%

76.4%

77.0%

78.4%

82.0%

85.0%

88.0%

90.0% 96.0%

90.2%

90.1%

92.3%

92.0%

96.0%

96.0%

96.0%

54.6%

57.4%

56.6%

55.4%

55.0%

60.0%

65.0%

70.0%

53.5%

58.0%

62.6%

61.0%

67.0%

70.0%

75.0%

80.0%

78.5%

77.5%

73.0%

77.1%

86.0%

88.0%

90.0%

90.0%

Blue Band

77.5%

75.1%

72.6%

65.9%

83.0%

83.0%

87.0%

90.0%

Key Highlights: 
Ambitious Weighted Distribution Targets planned  Doubling controlled distribution & improved supplies (Omo & Knorr) have helped improve weighted distribution in 2009  Severe supply constraints on Blue Band & pipe line management for Lux relaunch had an adverse effect in 2009

Perfect Store Roll-Out Plan
Winning in Key Stores Coverage Exit 2009 Channel Name Merchandising Exit 2009 2010 Perfect Stores 2011 2012

Level 1: Neighbourhood Lock Up Store Level 1: Open Market Lock Up Store

1,100

1,100

10,000

14,000

21,000

300

300

3,000

4,000

6,000

Level 1: Open Market Food Store Level 2: All Channels

100

100

2,000

2,000

3,000

67,500

26,500

13,000

8,000

Total Distributor Trade

69,000

28,000

28,000

28,000

30,000

Perfect Store Roll-Out
Winning in Key Stores
Plan 2010 (Exit) No of stores

Business Case 2010

Channel Name

Cost/ Store ( Euro) 327

Total Cost (000 Euro)

In Budget (000 Euro)

Additional Budget (000 Euro)

ROI (% )

Incremental T/O (000 Euro)

Level 1: Neighbourhood Lock Up Store

10,000

3,269

12%

15,000

Level 1: Open Market Lock Up Store

3,000

242

727

146%

9,438

Level 1: Open Market Food Store

2,000

133

267

119%

2,918

Level 2: All Channels Total

13,000 28,000

70

916 5,179 1,600 3,579

54%

5,168 32,524

Note
Coverage-Turnover Per Store KD Salesmen- Capability
0 )

Cost

RO _Nigeria

Business Case-Phasing_Nigeria

Key Drivers
Winning in Modern Trade & Top End

MT & Top End unlikely to be sizeable contributor by 2012 (< 10 %) However strategically important to build leadership positions for the future Institutionalizing Customer Business Planning, Living the TTS and focus on In-store Brilliance would be the key drivers Category Management expertise needs to be built by 2010 to achieve Category Captaincy in Gold Accounts Customer Service Excellence & Customer Marketing support would be the key to establish the Top End business

Key Enablers 2010 - 2012

Best

in - class Key Distributor Model

Leveraging IT in Sales People & Capabilities Right resourcing for Growth

Key Enablers 2010 .. 2012
Best in Class Key Distributors

Next Gen Distributor Model to be leveraged to build a capable & professional KD team

Urban Initiatives :
Transition to Pre-selling in 2010/2011 using Two wheelers post-safety clearance Develop Low Cost Distribution Models (e.g. Bicycle salesmen) in 2011/2012 to extend coverage to select Kiosks and emerging channels like Bread Hawkers (Spreads) & Mashai (Tea)

Rural Initiatives :
Pilot Indirect Coverage (IDC) in 2010/2011 using Low cost Distribution Models such as : - Riding on Non-competitor company distribution - Incentivised IDC Vans - Rural Sub-distributors - Motor Cycle/ Bicycle Salesmen - Rural Entrepreneurs Rural distributors in viable feeder markets can be appointed in 2012

Key Enablers 2010 .. 2012
Leveraging IT in Sales

Enhanced Functionalities IQ 2010/2011

2010/2011

HHT Mandated (Must Have) Functionality Score - ESA,Ghana,Nigeria & CDI
1. Current Constraints:
HHT Application written in Old language and having limited capability Some mandated functionality not in original plan due to hardware restrictions at time when mobile application was developed.

Must Ha Fun ti n l ty C ml a c ve c o ai o pi n e
CDI

Solutions:
New Mobile Application already in Development. Current Mandatory and Desirable functionality can be added to the development list. Some desirable features already Exist in Shop Module currently on Pilot.

Nigeria

Ghana

ESA

0

20

40

60

80

100

% compliance

Missing Must Have Functionality

Current Compliance on Desirable Functionality

ESA & West Africa

Desirable Functionality (Current
40 35 30 25 Total Desirable 20 15 10 5 0 Total Desirable Score Current (incl. Shop module)

Desirable compliance even with Shop module fully deployed is only 18%

Blue Shading denotes compliance coming through Shop module features

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