Heineken Nv · EURONEXT:HEIA
Heineken Nv — Heineken Financial Markets Conference 2013
21 slides from Heineken Nv's conference presentation, Dec 5, 2013
Slide 1: Passion for Sales Excellence
HEINEKEN FINANCIAL MARKETS CONFERENCE 2013 MEXICO CITY Passion for Sales Excellence JOSEP FERRER VP Sales, Cuauhtémoc Moctezuma Mexico City | December 5-6, 2013 | Heineken NV
Slide 2: Agenda
AGENDA Passion MARKET STRUCTURE OVERVIEW for Sales Excellence COMMERCIAL FRAMEWORK WINNING IN CHALLENGER MARKETS 2
Slide 3: Geographic Structure
GEOGRAPHIC STRUCTURE Higher per capita CUAUHTÉMOC MOCTEZUMA CM MARKET SHARE consumption (CM) DISTRIBUTION FOOTPRINT BY REGION and outlet concentration in Northern region North 90L PCC 70k Outlets Center & West >65% 35%-65% 40L PCC 300k Outlets South <35% 70L PCC 90k Outlets 3 Source: 2012 Internal c
Slide 4: Channel & Pack-Type Structure
CHANNEL & PACK-TYPE STRUCTURE Traditional off-trade ONE WAY BOTTLE 6% 5% and returnable ON TRADE 21% 19% packaging continue CAN 24% 28% to be important MODERN TRADE 11% 16% DRAUGHT 1% in Mexico 1% TRADITIONAL OFF-TRADE 68% 65% RETURNABLE 69% 66% 2005 2012 2005 2012 4 Source: 2012 Industry figures
Slide 5: Agenda
AGENDA Passion MARKET STRUCTURE OVERVIEW for Sales Excellence COMMERCIAL FRAMEWORK WINNING IN CHALLENGER MARKETS 5
Slide 6: Commercial Framework to Drive Success
COMMERCIAL FRAMEWORK TO DRIVE SUCCESS Targeting the Targeting most productive methodology Value Route to customers and Tools Dialogues Market 20% 80% Service Quality and Penetration People Strategy Assortment Coldest Beer 6
Slide 7: Our Goal Is to Achieve 70% Weighted Distribution
OUR GOAL IS TO ACHIEVE 70% WEIGHTED DISTRIBUTION We currently reach 50% of INDUSTRY CUSTOMERS outlets, representing nearly AND VOLUME 60% volume weighted distribution 460 K 67MHL >55 HL 5% 15% 25% 13 | <55 HL 30% 1.5 | <13 HL 50% COMMERCIAL 40% FRAMEWORK TO DRIVE SUCCESS 0 | <1.5 HL 30% 5% Customers
Slide 8: Proven Methodology and Tools
PROVEN METHODOLOGY AND TOOLS GEOGRAPHICAL WINNING SALES TRACKER ANALYSIS CUBE METHOD Graphical tools, Based on market census To identify profitability scenarios and mapinfo tools target customers and follow-up – ATTRACTIVENESS + SALES REPRESENTATIVE 3 1 Operative management and 4 2 execution tools C
Slide 9: An Attractive Value Proposition for Retailers
AN ATTRACTIVE VALUE PROPOSITION FOR RETAILERS One 40oz bottle RETAILER generates the same PROFIT profit as several snacks or other beverages for the retailer COMMERCIAL FRAMEWORK TO DRIVE SUCCESS 9
Slide 10: An Innovative Route to Market
AN INNOVATIVE ROUTE TO MARKET The most efficient SERVICE RTM platform segmented MODEL by service model CUSTOM E-COMMERCE / TELESALES >55 HL 13 HL <55 HL FIELD SALES FORCE COMMERCIAL 1.5 HL <13 HL FRAMEWORK TO DRIVE SUCCESS TELESALES <1.5 HL Customers 10
Slide 11: Serving 90% of Our Outlets Directly Through a Tailored Route to Market
SERVING 90% OF OUR OUTLETS DIRECTLY THROUGH A TAILORED ROUTE TO MARKET THIRD PARTY THIRD PARTY RETAILERS DISTRIBUTORS DEPOTS ~ 30 K ~10 ~ 40 CM CM OPERATED RETAILERS BREWERIES DEPOTS ~ 200 K 6 ~ 200 THIRD PARTY TRANSPORT ~ 20 COMMERCIAL FRAMEWORK TO DRIVE SUCCESS WHOLESALERS ~ 800 11
Slide 12: Utilizing Fridges as a Strategic Asset...
UTILIZING FRIDGES AS A STRATEGIC ASSET... ULTRA COLD Heineken® 200K FRIDGES FRIDGE FRIDGE The coldest beer Premium quality IN THE MARKET in the market fridges FROZEN OXXO COLD DOOR COOLER ROOM FRIDGE COMMERCIAL FRAMEWORK TO DRIVE SUCCESS 12
Slide 13: ...to Promote a More Profitable Assortment
...TO PROMOTE A MORE PROFITABLE ASSORTMENT 80% OF COOLER SPACE DEVELOPING THE WITH RETURNABLE PACKAGING PREMIUM SEGMENT 20% Premium 60% COMMERCIAL FRAMEWORK TO DRIVE SUCCESS 13
Slide 14: Penetrating New Customers Through 'Best in Class' Service
PENETRATING NEW CUSTOMERS THROUGH ‘BEST IN CLASS’ SERVICE CM THE BEST RATED SERVICE CAPTURING PRODUCTIVE VENDOR IN KEY CITIES CUSTOMERS IN THE SERVICE EVALUATION (SCORE OUT OF 10) 7 REGIONS, 650 RETAILERS TRADITIONAL TRADE NEW CUSTOMERS 9.3 29,000 37,000 43,000 9.0 10% 8.9 20% 8.7 8.6 50% <1.5HL >1.
Slide 15: Passionate and Execution-Oriented Team
PASSIONATE AND EXECUTION-ORIENTED TEAM COMMERCIAL FRAMEWORK TO DRIVE SUCCESS 15
Slide 16: Agenda
AGENDA Passion MARKET STRUCTURE OVERVIEW for Sales Excellence COMMERCIAL FRAMEWORK WINNING IN CHALLENGER MARKETS 16
Slide 17: Focused Approach in CM Challenger Markets
FOCUSED APPROACH IN CM CHALLENGER MARKETS CM Challenger CM CHALLENGER 75% SALES THROUGH TRADITIONAL Markets in Center MARKETS OFF-TRADE and West represent ~40% of Mexican 75% IN RETURNABLE PACKAGING beer market LOW PER CAPITA CONSUMPTION REGULAR AND DARK BEER BIGGEST SEGMENTS FRAGMENTED MA
Slide 18: Market Share Gains in Challenger Markets
MARKET SHARE GAINS IN CHALLENGER MARKETS CM VOLUME IN 13 OUT OF 16 CHALLENGER MARKETS GROWING AHEAD OF INDUSTRY CM VOLUME IN 5 CHALLENGER MARKETS GROWING DOUBLE DIGITS Jalisco 18
Slide 19: Mexico City: A Success Story
MEXICO CITY: A SUCCESS STORY The second largest 8 MILLION HECTOLITERS MARKET city in the western hemisphere 24 MILLION INHABITANTS COSMOPOLITAN AND VIBRANT CITY THAT CELEBRATES DIVERSITY PEOPLE ARE OPEN AND LOOKING FOR NEW EXPERIENCES HISTORICALLY LOW MARKET SHARE FOR CM (~20-25%) CM FOC
Slide 20: CM Is Gaining Share in Mexico City
CM IS GAINING SHARE IN MEXICO CITY EXPANSION OF NATIONAL BRAND CM VOLUME GROWTH PORTFOLIO 2011-2013F +5x Heineken® IS 2ND PREFERRED CM BRAND COMMERCIAL FRAMEWORK IMPLEMENTATION FOCUS ON TRADITIONAL OFF-TRADE AND STRATEGIC CHANNELS MARKET SHARE GAINS FOR 2ND YEAR IN A ROW PRICING STRATEGY
Slide 21: Summary
SUMMARY Key Takeaways WE ARE GAINING MARKET SHARE IN CHALLENGER MARKETS WE ARE TARGETING AN INCREASE IN WEIGHTED NUMERICAL OUTLET DISTRIBUTION WE HAVE AN EXTENSIVE AND INNOVATIVE ROUTE TO MARKET SALES EXECUTION EFFORTS ARE FOCUSED ON ENHANCING REVENUE AND PROFIT WE ARE INVESTING IN SALES C
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