Heineken NV · EURONEXT:HEIA
Heineken NV — HEINEKEN Financial Markets Conference 2012
61 slides from Heineken NV's conference presentation, Nov 13, 2012
Slide 1: Welcome
Welcome Nigeria | November 2012 Heineken N.V.
Slide 2: Africa on the Move
Africa on the Move Lieven Van der Borght Senior Director Regional Commerce Region Africa & the Middle East (AME) Nigeria | 13-14 November 2012
Slide 3: Our Commercial Strategy
Our Commercial Strategy We are… Consumer-Inspired Brand-Led Customer-Oriented 3
Slide 4: Consumer inspired means...
Consumer inspired means... Fundamental Meaning of Beer studies Usage and Attitude study Brand Health Tracking Affordability Studies Consumer Mapping and Segmentation Consumer Insights — leading to Brand in a Bottle Innovations 4
Slide 5: Consumer inspired means...
Consumer inspired means... Fundamental Meaning of Beer studies Usage and Attitude study Brand Health Tracking Affordability Studies Consumer Mapping and Segmentation Consumer Insights — leading to Brand in a Bottle Innovations 5
Slide 6: Consumer inspired means...
Consumer inspired means... Fundamental Meaning of Beer studies Usage and Attitude study Brand Health Tracking Affordability Studies Consumer Mapping and Segmentation Consumer Insights — leading to Brand in a Bottle Innovations 6
Slide 7: Consumer inspired means...
Consumer inspired means... Fundamental Meaning of Beer studies Usage and Attitude study Brand Health Tracking Affordability Studies Consumer Mapping and Segmentation Consumer Insights — Leading to leading to Brand Brand in in aa Bottle Bottle Innovations 7
Slide 8: Innovations: STAR Nigeria neck foil
Innovations STAR – Nigeria – Neck foil Star market leading brand in Nigeria Star introduced the neck foil in August 2012 – only mainstream brand to have this! Consumers view products with neck foil as premium and also as a quality confirmation Accelerated volume and market share growth 8
Slide 9: Innovations: Almaza Light Lebanon
Innovations Almaza Light - Lebanon 1st Lebanese Light beer - launched in April 2012 Brand extension for the current market leader, Almaza (market share >50%) 9 Source: HEINEKEN
Slide 10: Innovations: PET
Innovations PET PET introduction in relevant markets and categories Enhanced consumer convenience and tapping into relevant consumer occasions Primus, Lubumbashi Turbo King, Lubumbashi Fayrouz, Nigeria 10
Slide 11: Innovations: N'Tay in DRC
Innovations N’Tay in Democratic Republic of Congo (DRC) July 2012: N’Tay (Eagle) launched in DRC – Lubumbashi Inspired by Katangese consumers “A beer inspired by you, for you!” 5% Market Share after 3 months 11
Slide 12: Brand Health Tracking
Brand Health Tracking Brand Health Tracking Objective: Measure the relationship of our brands & competitors with consumers in order to challenge and optimise our Marketing Activities & Investments Affordability Study Objective: Track price development of beer versus price development of the shopping
Slide 13: Our Commercial Strategy
Our Commercial Strategy We are… Consumer-Inspired Brand-Led Customer-Oriented 13
Slide 14: Regional Brand Overview
Regional Brand Overview Un. Arab Nigeria DRC Burundi Rwanda Congo SA Egypt Others Emirates IPS Heineken® Heineken® Heineken® Heineken® Heineken® Heineken® Heineken® Heineken® Heineken® Amstel Amstel Amstel Guinness* Amstel Amstel Amstel Amstel Guinness* Desperados Guinness* Tiger Guinness* Strongbow
Slide 15: Regional Management of Brands
Regional Management of Brands Global Brands Regional Brands Local Brands Heineken®, Amstel, Primus, Star, Mützig, Various strategic brands Desperados, Sol & Turbo King, Gulder & Local teams/Regional Strongbow Maltina Marketing Managers Regional Marketing Regional Marketing Manager/Global
Slide 16: Global brands in AME
Global brands in AME ” A SS ane yy 16 HEINEKEN
Slide 17: Global brands in AME
Global brands in AME Heineken® is outperforming in the IPS segment IPS share of Global Beer Volume (2011) IPS share of AME Beer Volume (2011) IPS IPS 9% 7% Global beer category vs. IPS vs. Heineken® AME beer category vs. IPS vs. Heineken® 2006-2011 volume CAGR (%) 2006-2011 volume CAGR (%) 21.5% 4.0
Slide 18: Regional beer market and IPS development
Regional beer market and IPS development 2010-2020 IPS expected to outpace beer market growth across all regions, especially in AME and Asia Pacific 7.9% 6.7% 4.4% 4.2% 3.8% 4.0% 2.3% 2.5% 1.9% 0.4% Global Africa & Middle East Asia Pacific Americas Europe CAGR % 2010-2020 Beer Market IPS 18 Source:
Slide 19: Heineken: The undisputed leader
Heineken® : The undisputed leader Heineken® AME volume evolution Heineken® IPS Market Share 2005 – 2011 +13 percentage point share gain since 2005 3,5 35% 3,0 30% CAGR +21% Volume (MHL) Market Share 2,5 25% 2,0 20% 1,5 15% 1,0 10% Thousands 0,5 5% 0,0 0% 2005 2006 2007 2008 2009 2010 2011 2005 2006
Slide 20: Heineken: Uniquely positioned in the region
Heineken®: Uniquely positioned in the region 1. Heineken® has the first mover advantage in many AME countries 2. Leading the premium category 3. Most aspirational beer brand in the region 4. Powerful global platforms 20
Slide 21: Heineken: Uniquely positioned in the region
Heineken®: Uniquely positioned in the region 2. Leading the premium category 3. Most aspirational beer brand in the region Heineken® brand health & equity highest in the IPS/highest in total market Scores above 8 in key markets (Algeria, Gulf, Nigeria) 21
Slide 22: Heineken: Uniquely positioned in the region
Heineken®: Uniquely positioned in the region 4. Powerful global platforms UEFA Champions Communication UEFA Champions Engagement Innovation League Communication UEFA Champions Engagement Innovation Communication League UEFA Champions Engagement Innovation Communication League Engagement Innovation U
Slide 23: Amstel – South Africa
Amstel – South Africa March 2007 October 2007 2009 2011 HEINEKEN obtained Started importing Amstel first brewed Volume of Amstel exclusive distribution Amstel in Sedibeng 1.3 mhl rights for the Amstel Brand in South Africa 2012 – Initiatives to drive further growth Packaging upgrade supported with
Slide 24: Primus
Primus Tozalaka Toza THEINEKEN
Slide 25: Regional Power Brands: Primus
Regional Power Brands Primus Market leader in 4 countries in Central Africa: DRC, Congo, Rwanda, Burundi Launched in Léopoldville in 1923 and has grown into a regional power brand of approximately 5 mhl in 2012 Positioning and packaging aligned and consolidated between 2010 – 2011: One Primus
Slide 26: Primus
Primus Heat and Traffic Jam 26
Slide 27: Regional Power Brands: Star
Regional Power Brands Star Market leader in Nigeria, Ghana and Sierra Leone Star being the music brand in Nigeria Growth: + 10% vs LY since relaunch in July 2012 Key drivers for growth: Star re-launch with new neck foil Recruitment drive Leveraging scale with cut-through nationwide con
Slide 28: Regional Power Brands: Mützig
Regional Power Brands Mützig Number 1 African regional premium brand Cameroon, Congo, DRC, Rwanda, Burundi First launched in Cameroon in 1984 Domestic premium brand in all markets, except Cameroon where it is a mainstream proposition 28
Slide 29: Regional Power Brands: Turbo King
Regional Power Brands Turbo King Successful regional premium brown beer Nigeria, Congo, DRC, Rwanda Launched in DRC in 1995 29
Slide 30: Our Commercial Strategy
Our Commercial Strategy We are… Consumer-Inspired Brand-Led Customer-Oriented 30
Slide 31: AME Sales Capabilities Film
AME Sales Capabilities Film ‘On the Road’ 31
Slide 32: AME Channel, Sales & Distribution Strategy
AME Channel, Sales & Distribution Strategy 1 Where to Play? Finding the customer & consumer 2 How to Win? Understanding and reaching the customer & consumer 3 What to Do? Executing at the point of purchase 4 Making it Last Developing local talent 32
Slide 33: Google Maps Fly-over
Google Maps Fly-over 3 HEINEKEN
Slide 34: Trade Census
Trade Census In AME, a trade census means... Kinshasa Outlet and Volume density Key insights: Knowing where to go, and where not to go 34 Source: Trade Census Kinshasa 2012
Slide 35: Trade Census
Trade Census In AME, a trade census means... Key insights: Knowing where to go, and where not to go Using a methodology that is adaptable to any market 35 Source: Trade Census Kinshasa 2012
Slide 36: Trade Census
Trade Census In AME, a trade census means... Key insights: Knowing where to go, and where not to go Using a methodology that is adaptable to any market Allocating resources strategically 36
Slide 37: Trade Census
Trade Census In AME, a trade census means... Key insights: Knowing where to go, and where not to go Using a methodology that is adaptable to any market Allocating resources strategically Actionable outputs 37
Slide 38: Trade Census
Trade Census In AME, a trade census means... Where to focus to get highest return? To grow, should we Push or Pull our brands? 38 Source: Trade Census Kinshasa 2012
Slide 39: AME Channel, Sales & Distribution Strategy
AME Channel, Sales & Distribution Strategy 1 Where to Play? Finding the customer & consumer 2 How to Win? Understanding and reaching the customer & consumer 3 What to Do? Executing at the point of purchase 4 Making it Last Developing local talent 39
Slide 40: Channel Strategy & Activation
Channel Strategy & Activation In AME, Channel Strategy and Activation means... Strategy Activation Input: Analysis of market data, Customer, Input: Channel Strategy plans Shopper & On-Trade Consumer Insights 5 phases leading to 3-year strategic Planning, Tracking, Executing summary for each priority
Slide 41: AME Channel, Sales & Distribution Strategy
AME Channel, Sales & Distribution Strategy 1 Where to Play? Finding the customer & consumer 2 How to Win? Understanding and reaching the customer & consumer 3 What to Do? Executing at the point of purchase 4 Making it Last Developing local talent 41
Slide 42: Route to Market
Route to Market In AME, Route to Market means... SSDs and mega SSDs, Burundi* RTM models which are customised & tailored to market needs 42 * Strategic Sales Depots
Slide 43: Route to Market
Route to Market In AME, Route to Market means... RTM models which are customised & tailored to market needs Professionalising the traditional trade landscape 43
Slide 44: Route to Market
Route to Market In AME, Route to Market means... RTM models which are customised & tailored to market needs Professionalising the traditional trade landscape Investing in the right distributors 44
Slide 45: Strategically best reaching the African customer
Route to Market In AME, Route to Market means... RTM models which are customised & tailored to market needs ...Strategically Professionalising the traditional trade best reaching landscape the African customer Investing in the right & consumer! distributors 45
Slide 46: AME Routes to Market: Brarudi Burundi
AME Routes to Market Depots O U BRARUDI T (Burundi) Distributors L 100% E T Strategic Sales S Depots 46
Slide 47: AME Routes to Market: Bralima DRC
AME Routes to Market Distributor (Exclusive) O U BRALIMA Distributor T (DRC) (Mixed & L 100% Exclusive) E T S 47
Slide 48: AME Routes to Market: Al Ahram Egypt
AME Routes to Market O U AL AHRAM T (Egypt) L Alcoholic beverages E T S Distributor 48
Slide 49: AME Channel, Sales & Distribution Strategy
AME Channel, Sales & Distribution Strategy 1 Where to Play? Finding the customer & consumer 2 How to Win? Understanding and reaching the customer & consumer 3 What to Do? Executing at the point of purchase 4 Making it Last Developing local talent 49
Slide 50: Perfect Execution
Perfect Execution Winning at the point of purchase 50
Slide 51: Perfect Execution
Perfect Execution In AME, Perfect Execution means… Perfect Execution in Rwanda BRALIRWA: Evolution from paper-based BOTTLER EXCELLENCE to tablet! AWARD 2011 51
Slide 52: Perfect Execution - on the fast track
Perfect Execution - on the fast track A Perfect Execution Revolution! Today... 8 active 52
Slide 53: Perfect Execution - on the fast track
Perfect Execution - on the fast track A Perfect Execution Revolution! In 2014... 15 active 53
Slide 54: AME Channel, Sales & Distribution Strategy
AME Channel, Sales & Distribution Strategy 1 Where to Play? Finding the customer & consumer 2 How to Win? Understanding and reaching the customer & consumer 3 What to Do? Executing at the point of purchase 4 Making it Last Developing local talent 54
Slide 55: AME Channel, Sales & Distribution Strategy
AME Channel, Sales & Distribution Strategy 1 Where to Play? Finding the customer & consumer 2 How to Win? Understanding and reaching the customer & consumer 3 What to Do? Executing at the point of purchase 4 Making it Last Developing local talent 55
Slide 56: Global Commerce University
Global Commerce University One HEINEKEN GCU Marketing Capability GCU Sales Capability Regional Training Programme Programme Centres • Consumer Insights • Category Vision • West Africa (Lagos) • TV Advertising • Channel strategy • Central Africa • Brand Positioning • Distributor (Kinshasa) • Digital
Slide 57: AME Sales Academy
AME Sales Academy Sales Programmes Sales Management Cognisco Coaching and Leadership Essential Selling Skills 2011 Sales Manager Toolkit Van Sales Skills TM/CA Workshop Outlet Segmentation Skills Train The Trainer Essential Merchandising Skills Essential Sales Promotions Essential Customer Planning
Slide 58: AME Sales Academy
AME Sales Academy Sales Programmes Sales Management Cognisco Coaching and Leadership Essential Selling Skills 2011 Sales Manager Toolkit Van Sales Skills TM/CA Workshop Outlet Segmentation Skills Train The Trainer Essential Merchandising Skills Essential Sales Promotions Essential Customer Planning
Slide 59: Talent Exchange Programme
Talent Exchange Programme “What I see as a big opportunity is that by doing this programme, I’m sure that my operating company will follow up on my development, and give me a more operative job - which will really accelerate my maturity in management areas!” Thierry Nshuti Sales Analyst Bralirwa (Rw
Slide 60: Summary
Summary What sets us apart Consumers, brands and customers at the centre Best in class with Heineken®, global, regional and local brands Outstanding capabilities to distribute and sell these brands Continuous innovation in our way of doing business Stepping up investments in our brands and
Slide 61: Africa on the Move
Africa on the Move —s _ | bas Heir eken} (NTA) os ie : j a KOLESHA =| BURAFIKI HEINEKEN
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