Customer Development

Nigeria

Strategic Planning Workshop – Nigeria 1000

September 2009
Update 2009
CD - Nigeria

September 2009
Channel wise Secondary Sales Progress

YTD August YTD August Growth % Contribution Contribution

2009 2008 2009 2008

Neighbourhood Lock up 37.5 23.8 58% 20% 13%

Shops

Open Market Lock up Shops 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 AACEE CD Thrusts for 2009
• Agree country and category strategies for the key markets
• Identify at least two innovation ideas per category with potential Brilliant in-outlet
Execution
for €50m ITO or more in year 1
• Own market development
• Improve sales fundamentals Deliver Outstanding
Customer Service
• Step change customer service
• Win with Winning Customers
• Win with local consumers by unlocking the combined Winning in MT
power of BB & BD
• Drive up CASH and drive down COSTS
• Simplify Product/SKU range Unbeatable in GT

Brilliant in-outlet Execution

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

Nigeria CD
Strategy 2009

Unbeatable in GT
Win with Winning
Customers 1. RTM – Increase Controlled
1. Win in MT Right resource & build Coverage from 25,500 to
2. Embed performance culture capability 69,000
among GT customers using JBP,
2. Implement Next Gen Dist Model
CVA & Counterpart based TTS
and deliver Maturity Profile
IT Score > 85
Implementing the strategy – Key Action 2008/09

Unbeatable in GT

1. Implement RTM • Implementing a clear channel strategy

• Clear strategy on how many stores and which store to cover

• Right Distributors (KD’s) – Right size & scale

• Retain focus on wholesale

• Counterpart based Trade Terms Structure

• Customer Value Assessment for all GT & MT customers

•Start implementing the MT & Top End road map

 Regional Value Contribution –
Population - Income grid : Nigeria August 2009 YTD
M/Trd
N/West
8% 1% S/East
Unbeatable in GT West 27%
15%

M/Belt
23% Lagos
26%

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

Income
Pop Density

Y - HIGH
HIGH

LOW
B - HIGH

W - LOW HIGH

G - LOW LOW
 Demographic Prioritization – Nigeria
Unbeatable in GT

Source; AC Nielsen 2007 261,367 158,354 419,721 115,944 535,665

Category Top 42 Cities Other URBAN Rural National

% Urban % % (Euro
% mln)
Fabric Cleaning 56 % 26 % 82 % 18 % 214
Oral Care 54 % 29 % 83 % 17 % 90

Skin Cleansing 57 % 25 % 82 % 22 % 250

Savoury 51 % 34 % 85 % 15 % 214

Spread 56 % 26 % 82 % 18 % 41

Priority 2007 - 2009 > Top 42 Cities

2010 – 2011 > Extend to other Urban
2012 > Evaluate Rural
Channel Prioritization – TOP 42 Cities

Source; AC Nielsen 2007 128,240

84,911 43,329 83,919 49,094

Category Neighbourhood Open Market N-G+OM Table Tops Kiosks

Lock-up % %
% %

Detergents - Powders 31 34 65 15 20

Toothpaste 35 34 69 12 19

Skin Cleansing 29 46 75 10 15

Savoury 19 63 82 9 9

Tea 36 33 69 12 17

Spread 31 34 65 15 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

Key
Routes
Distributors
to
Market

Large Super Sub distributor

Wholesalers
Markets

Open Market Rural Open

Small Neighbourhd Open market
Channels Lockup Shop market Lock
Supermarket Lockup Shop Food store
up store

Rural Rural
Pushcarts OM Table Periodic
Kiosks Kiosk/Table
Tops MARKET
Tops

CONSUMER / SHOPPERS
140 million

Legend: Black : From Unilever Red : From Key Distributors

Blue :From Wholesalers Pink : Inter Channel
Nigeria Market Coverage & Visibility Strategy Absolute priority

Unbeatable in GT

Channel Universe 2009 Coverage target Merchandising objective per Category

SCC Tea Savoury Fabric cleaning Skin Oral

Cleansing
Large 40
Super Markets Direct Coverage @ 100% 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.
Neighborhood 84,911 Cover 40% = 41,900 stores Be the preferred & most visible brands in growing GT channel
Grocery thru KD’s  20,000 POPs on merchandising in 2009 – 4 visits a month.
 Channel Blueprint implementation - 1100 Perfect Stores
Open Market 23,145 Cover 90% = 19,000 stores Be the preferred & most visible brands in the categoryl
Grocery thru KD’s  5,000 POPs on merchandising in 2009 – 8 visits a month.
 Channel Blueprint implementation - 300 Perfect Stores in 2009
Open Market – 20,184 Cover 90% = 7,200 stores thru’
Food Stores KD’s – focusing on Savoury  3,000 merchandised
POPs – 8 visits a month
 100 Perfect Stores
Kiosk 133,127 Mainly Covered through Not a priority
Table Tops wholesale
Pharmacy
Wheel Barrow
Hawkers
Wholesale 2,000 90% coverage - Cover 1,800 in 1,400 on UnI Loyalty program and selective merchandising linked to promotional
2009 activities.

Total 263,637 Cover 69,000 stores by end 2009

Implementing the strategy – Key Action 2008/09

Unbeatable in GT

2. Next Gen Distributor • Joint Business Plan to have Aligned & profitable KD’s
Model
• Improve Distributor Capability – increase maturity profile from 54 to 85%:
currently 93%

• 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 – FCS – currently at 57%

• Win with wholesale – 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 – Implementation Network
RTM & NGDM EXECUTION PLAN
Updated 23.05.08
TIME PLAN
ACTIVITY DETAILS RESP.
FH 2007 SH 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 2009
COMPLETE CHANNEL STRATEGIES - priority
Channels and categories /opportunities
Clementina
ROUTE TO MARKET

COMPETITOR BENCHMARKING Sanjay

COVERAGE PLAN Sanjay
CONTACT STRATEGY Sanjay
3P POP CENSUS Sanjay
RTM APPROVAL Sanjay DESIGN PROPOSAL APPROVAL

RTM IMPLEMENTATION RCDMs PILOT ROLL OUT

PERF> LINKED TTS Osa DESIGN IMPLEMENTATION

CVA Osa After Channel sale / spend data is available

CHANNEL/ SHOPPER UNDERSTANDING Clementina

CHANNEL ACTIVATION Clementina

CHANNEL GOALS

POP VISION Clementina

PRIORITY CHANNEL WISE COVERAGE Sanjay

Pre-work Implement in Top 42 Cities
3P MERCHANDING ROLLOUT Clementina

PRIORITY CHANNEL MERCHANDIZING Sanjay/Clem

Pre-work Implement in Top 42 Cities
WHOLESALE LOYALTY PROGRAM 2 Sanjay/Clem

WHOLESALE LOYALTY PROGRAM 3 Sanjay/Clem

Design Implementation
CHANNEL MARKETIN PLAN Clementina Plan 2009

CUSTOMER PROFITABILITY Osa MEASUREMENT INVESTMENT MONITOR ACTION PLANNING Full Implementation

EDGElite SCORECARD Yemi Implement SC Embedd EDGE

FCS Sanjay ESTABLISH BASE 10% IMPROVEMENT 20% IMPROVEMENT

QOC / QOP Sanjay Postpone to Next year ??

KPIs

OPSOlite Osa
PRICE MONITOR Clementina Refine the mechanics

3P VISIBILITY AUDIT Clementina Agency Pitch & Design

EQ (TRADE) Yemi Plan 2009

DISTRIBUTOR CCFOT Yemi/ SC Plan 2009

DEMAND BASED REPLENISHMENT SC

SYSTEMS

JOINT BUSINESS PLANNING Sanjay Done for 30 KDs Plan for Top 5 MT KA ROLLOUT ALL GOLD CUST. Repeat for Top 80% Contributing KDs

HHT USAGE Sanjay/ Yemi PILOT Roll-out to 80% value contributing customers

TPM @KD WAREHOUSE Yemi/ SC PILOT Roll-out to GOLD customers

REPLENISHMENT IN TRADE Sanjay No plans

ORGANIZATIO

NEW ORGANIZATION Folake SALES & ACTIVATION CAPABILITY TEAM CD Trg Mgr shortlisted Capability team Appointment

ROLES & RESPONSIBILITIES Sanjay

Sanjay/ Folake
N

PERF. LINKED REMUNERATION KD' Staff WL 1 WL1 INCENTIVE PLAN Linking to CVA

CAPABILITY PLANS Folake MERCHANDIZER TRG. Merch & B2B Trg

Sanjay /Folake/
SOP B2B Manual (FF and KD) preparation B2B Roll-out
Mike

CHANNEL GOALS Clementina 11 54 81 83 85 90

MATURITY
PROFILE

KPI Osa 59 70 89 90 90 90
SYSTEMS Yemi 52 52 52 65 75 80
ORGANIZATION Folake 45 41 53 55 70 80
TOTAL SANJAY 42 54 70 75 80 85
Next Generation Distributor Model - Progress
Unbeatable in GT
Pillar Key actions Due
Channel Implementation of Priority FY 09
Goals Channel wise Coverage in Top
Country Maturity Profile Progress 42 Cities
Implementation of the
FY 09
Modern Trade roadmap
120
Develop & Pilot “Sell More
100 Smile More” Retail loyalty Q3 09
Q4'06 Programme in 1100
80
Neighbourhood Lock up
Score (%)

Q3'07
60 Q1'08 Shops
Q4'08
40
Q2209
Systems Institutionalize JBP process FY 09
20
Review CVA 2009 for all
0 distributors Q3 09
Channel goals KPI Systems Organisation Total
Quarters
Organization Implement agreed Capability FY 09
building plans

Q4’06 Q3’07 Q1’08 Q4’08 Q2’09 Release Brilliant Basics Q3 09

Manual for KD & Unilever
Channel 13% 54% 81% 94% 96% field team
Goals

KPI 59% 70% 89% 92% 97% KPIs Develop & Pilot the CA Shop Q3 09
Score Module and implement
Systems 48% 52% 52% 74% 85%
in Nigeria
Organizatio 33% 41% 53% 78% 92%
n Implement QOC for Field H1 09
force to complement KD
Total 38% 54% 70% 85% 93% Performance linked TTS to
ensure meeting business
results
Embed EDGE & improve FCS Ongoing
Implementing the strategy – Key Action 2009/10

Winning in MT

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 = €100m)

Strategic Build Brand Through Customer Service

World Class People Customer Excellence Win @ POP
Investment for
Growth

• Right Organization • New TTS with  TCP & CBP for • Start Measuring launch Edge in MT
for € 4m by 2010 Top 5 accounts MT CCFOT Q1
Q4 2009 2010
counterparts Q3
2009
 Nigeria CA 2010 MT Vision Update
Winning in MT

Vision House Pillars Target YTD Comment

from Dec.08 MT workshop 2009 Aug 09

Right people, right skills  Set Up 3P Merchandising Structure Q2,09 Done

 Professional Skill GAP analysis Q2,09 Done
 OJT/Classroom Training/External Q2,09 Ongoing

Leverage Trading Terms for  New look TTS proposal July 09 Done
accelerated growth
 Sell TTS counterparts to Gold /Silver Q3 09 Ongoing
Accounts

Shopper Customer Category

Leadership  Launch Top End in Nigeria Apr 09 Done
 Activate MT contact Plan Q2, 09 Done,ongoing
 Customer CVA Q1,09 Done
 Customer Business Plan Q3’09 To conclude in Q4,09

Brilliant In store execution in Top 100  Identify MT core assortment Feb. 09 Done
Stores in CA  Launch Edge in all 3P merchandised July. 09 Weekly Scores
stores (23)

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 Product Brand Arizona Cherries

Global

Skin Shower Gel Lux??? √

Cleansing

Liquid Hand Lifebuoy??? √

Wash

Skin Hands Lotion Lux, √

& Body Vaseline &
Dove

Deodorants Aerosol & Rexona , √

Roll on Axe, Brut, √
Shield

Seasoning Knorr & √

Robertson's

Spreads Margarine Flora & √

Blue Band
Gold

Tea Iced Tea Lipton??? √

Ice Cream Ola √

Implementing the strategy – Key Action 2008/09
Brilliant in-outlet Execution
Implementing the “Perfect Store”

Define the Perfect Store Look: Channel Blueprints

1

Execution!
2

Measure Compliance and number of Perfect Stores

3

Key Actions

• Perfect Store Blueprint Development – Q2 2009

• Implementation of Channel Blue Print in 1,500 GT stores – Q3 2009
• Implementation of Sales Fundamentals (GT & MT) - Q3/Q4 2009
 Perfect store Channel Blue print > Neigborhood Lock up store
Methodology

Hotspot Merchandising Equipment

 Entrance (airspace / ground  Signage

space) 1. Multi facet Sachet
• All category sachets hanger
• Lead brand sign board 2. Knorr Strings
with owner name/picture hanger
 Back of shelf 3. Omo Display
• Shelf strips & Shelve Stand
Shadow 7. Shelf strips
• At eye level in entre of 8. Shelf Shadow
store

Minimum Assortment Core SKU

Market share +1sku 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. NPD (as per plan)
4. Promo availability (as per cycle plan)
5. Share of equipment (more than competition
for top 3 categories which account for 80% sales)
Look of Success – In Store
Brilliant in-outlet Execution
Implementing the “Perfect Store”

Before Now
 Look of Success - Out Store
Brilliant in-outlet Execution
Implementing the “Perfect Store”

Before Now
Channel Loyalty Programme – ‘Ice breaker Perfect Store roll-out
– Experiment 1
Brilliant in-outlet Execution
Implementing the “Perfect Store”

 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… to her partner in progress Sell more….smile
more

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

22
 Perfect Store and controlled Sample Perf. Comparision

10.0
Pefect Store Index 305 453 CATEGORY PERFORMANCE
Controlled Sample
9.0
NLS National Index Fully Activated BRAND Jan '000' Cat. Contri July Cat. Contri Growth
Perfect store
8.0 BLUE BAND 1.1 9% 2.7 3% 2
Kick off prog CLOSE-UP 3.5 28% 29.0 36% 8
7.0
160 KNORR 0.7 6% 4.6 6% 7
Coverage/ Coverage/Merch
6.0
Merch
LIPTON TEA 1.0 8% 9.9 12% 10
5.0
500 500 500 500 LUX CREAM 0.1 1% 0.0 0% 0
LUX SOAP 1.1 9% 3.5 4% 3
4.0
OMO 2.8 22% 20.5 25% 7
3.0 PEARS 1.0 8% 2.1 3% 2
ROYCO 0.0 0% 2.1 3% 70
2.0
TOOTH BRUSH 0.0 0% 5.6 7% 2800
1.0 VASELINE 1.2 10% 0.9 1% 1
Total 12.5 100% 80.9 100% 6
0.0
jan feb mar Apr May June July

*Control sample base of 500. *Channel Priority brands in Green.

*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.
*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 GT - Ideal
On Shelf
Availability Q3 2009 COMPLIANT Q4
Q3 2009

New Product
Product Distribution Q3 2009
COMPLIANT COMPLIANT COMPLIANT
Q4 2009

Product on
Distribution (weighted) COMPLIANT COMPLIANT

Share of Shelf vs.

Place Share of Market COMPLIANT COMPLIANT COMPLIANT
Q4 2009

Price-on-shelf vs.
Price Strategic Price Q3 2009
COMPLIANT COMPLIANT Q3 2009
Q4

Share of Folder
Promo (folders/mailers) Q1 2010

TRACKED NOW but NOT TRACKED

LEGEND: COMPLIANT Definition / Frequency
not compliant NOW
EDGE Score EDGE Score
Card_GT card_MT
For RED and AMBER cells, Timing indicates by when they will be ready / fully compliant
CD Training & Capability Update 2009

Right Resource and Build Capability

CD TRAINING AND CAPABILITY DEVELOPMENT UPDATE - 2009

S/NO TRAINING PLAN TIMELINES PLANNED ACTUAL REMARKS
1 INDUCTION FOR FCMs Q1 5 5 JAN.

2 GUIDED RECRUITMENT OF KDSRs Q1-Q4 277 204 FEB TO DATE

3 6X9 TRAINING FOR KDSRs Q2 586 527 FEB TO DATE

4 DEFENSIVE DRIVING FOR KD RESOURCES Q2 264 287 FEB TO DATE

5 BASELINE ASSESSMENT FOR UL &KD Q2 527 465 MAR TO DATE

6 SALES ADMIN TRAINING Q3 5 5 JUNE

7 USO TRAINING Q3 72 72 JULY

8 "ONE LOOK OF SUCCESS" TRAINING Q3 110 118 JULY

9 OMFS SALESMEN TRAINING Q3 71 57 JULY

10 EDGE TRAINING FOR MERCHANDISERS - PILOT Q3 40 40 AUGUST

11 FAM AND MERCHANDISERS TRAINING Q3 63 SEPTEMBER

12 ACCOUNTABILITY WORKSHOP Q3 40 TO BE FIXED

13 BEST PRACTICE TRAINING FOR KDs Q4 60 OCTOBER

14 SUPERVISORY SKILLS TRAINING FOR KDMs Q4 60 OCTOBER

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

Open Market Food Store Coverage

FCS
Progress
  % CONTRIBUTION COMPLIANCE No. of POPs KDSRs

Prod. ACN PLAN 3M ECO ACN Est. PLAN

Region Knorr Royco Savory % LPC Est. (Census) (Aug’09) basis (Census) Actual

Target ---> 90% 6            

SOUTH EAST 37% 19% 29%     4022 2260 1693 43 22 17

LAGOS 27% 6% 17%     7095 2147 1070 27 19 9

MIDDLE BELT 14% 52% 31%     1811 603 1293 17 7 13

WEST 21% 8% 15%     3448 1065 966 33 9 9
NORTH WEST 1% 15% 8%     1627 1138 380 16 14 9
NATIONAL
   
(KD) 100% 100% 100% 18,003 7,213 5,163 136 71 57
NATIONAL
(June 09) 4,178 36
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

0
January February March April May June July August September
Month
Weekly RR (N mln)

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

OM Food Store
Tracker
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 Lock-up Open Market Table Top Kiosk

Fabric Cleaning Channels 38% (37%) 36% (37%) 16% (16%) 10% (10%)
OMO Ariel 1.3 1.1 1.5 1.4
So Klin 1.1 0.9 0.7 0.96
Oral Channels 42% (43%) 33% (34%) 9% (8%) 15% (14%)
CLOSE UP Macleans 12.8 12.7 86.0 44.0
Savoury Channels 22% (23%) 67% (64%) 7% (9%) 4% (4%)
KNORR + ROYCO Maggie 0.9 0.9 0.7 0.9
Skin Cleansing Channels 35% (38%) 38% (40%) 17% (13%) 10% (9%)
LUX Premier 0.30 0.27 0.32 0.25
Spreads Channels 41% (39%) 39% (42%) 12% (11%) 8.1% (7.6%)
BLUE BAND Simas 10.1 6.5 11.3 8.3 OUT Model
Worksheet

Implications:
1. In the Neighbourhood Lock-up shops our performance has improved through increased direct
coverage & Channel marketing plans
2. We under trade in the Open Market Lock-up shops for most categories and Activation plans need to
address it
3. 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 Lagos Middle Belt West North West

Fabric Cleaning Regions 20% 21% 26% 21% 13%
OMO Ariel 0.8 1.2 1.9 2.3 1.3
So Klin 0.8 1.2 1.1 1.2 0.7
Oral Regions 74% 72% 86% 81% 93%
CLOSE UP Macleans 12.3 14.4 14.3 27.0 31.0
Savoury Regions 41% 35% 27% 31% 22%
KNORR + ROYCO Maggie 1.1 1.3 0.7 0.8 0.6
Skin Cleansing Regions 7% 8% 2% 9% 1%
LUX Premier 0.3 0.4 0.1 0.3 0.1
Spreads Regions 92% 68% 68% 71% 67%
BLUE BAND Simas 76.7 5.7 7.8 5.3 2.6

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

Controlled Coverage

140000

120000

100000

80000

60000

40000

20000

0
Exit 2008 Q1 2009 Q2 2009 Exit 2009 2010 2011 2012
 Building Effective Distribution
Improving Availability

Exit Exit Q1 Exit Q2 August PLAN PLAN PLAN PLAN

2008 2009 2009 2009 Exit 2009 2010 2011 2012
Controlled Coverage 25,520 36,917 46,660 46,156 69,000 77,000 109,593 122,244

Merchandised POP 28,000 27,824 28,313 28,000 28,000 28,000 30,000 30,000

Monthly Effective 19,233 29,433 34,590 40,543 62,000 70,000 100,000 110,000
Coverage

No. of DSRs 303 372 460 530 610 680 950 1,000

No. of Vans 210 269 289 303 360 400 475 500

Field Capability Score 46% 60% 58% 56% 56% 60% 65% 70%

ROI Compliance 65% 93% 90% 90% 90% 90% 90%

Key Points:

 Direct coverage will continue to be focused on the priority channels – Neighbourhood Groceries, Open Market
Groceries & Open Market Food Stores
 2010 – Consolidation of Coverage in Top 42 cities (Evaluate other Urban town coverage)
2011 – Expansion to other Urban towns (Evaluate Rural coverage)
2012 – Expansion to Rural
 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 77.4% 76.4% 77.0% 78.4% 82.0% 85.0% 88.0% 90.0%

Close Up 90.2% 90.1% 92.3% 92.0% 96.0% 96.0% 96.0% 96.0%

Lux 54.6% 57.4% 56.6% 55.4% 55.0% 60.0% 65.0% 70.0%

Knorr 53.5% 58.0% 62.6% 61.0% 67.0% 70.0% 75.0% 80.0%

Royco 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 Merchandising Perfect Stores

Exit 2009 Exit 2009
Channel Name 2010 2011 2012

Level 1: Neighbourhood Lock Up Store 1,100 1,100 10,000 14,000 21,000

Level 1: Open Market Lock Up Store

300 300 3,000 4,000 6,000

Level 1: Open Market Food Store

100 100 2,000 2,000 3,000

Level 2: All Channels

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 – Business Case 2010
Winning in Key Stores

Plan 2010 (Exit) Cost/ Total Cost In Budget Additional ROI Incremental
Channel Name No of stores Store (000 Euro) (000 Budget (% ) T/O
( Euro) Euro) (000 Euro) (000 Euro)

Level 1: Neighbourhood Lock Up Store 10,000 327 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 13,000 70 916 54% 5,168

Total 28,000 5,179 1,600 3,579 32,524

Note
•Coverage-Turnover Per Store
Business
•KD Salesmen- Capability Cost & ROI_Nigeria 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 – 2010/2011

• IQ – 2010/2011
 HHT Mandated (Must Have) Functionality Score - ESA,Ghana,Nigeria & CDI

1. Current Constraints: Must Have Functionality Compliance

HHT Application written in Old language and
having limited capability

Some mandated functionality not in original plan CDI

due to hardware restrictions at time when mobile
application was developed.
Solutions: Nigeria
New Mobile Application already in Development.
Current Mandatory and Desirable functionality can
be added to the development list.
Ghana
Some desirable features already Exist in Shop
Module currently on Pilot.

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 Desirable compliance even with Shop module fully deployed is only 18%
30

25
Total Desirable
20
Current (incl. Shop module)
15

10

0 Blue Shading denotes compliance coming through Shop module features

Total Desirable Score
Thanks