Diageo plc · LSE:DGE
Diageo — Investor Presentation (October 2009)
26 slides from Diageo's investor presentation, Oct 23, 2009
Slide 1: Winning at the Moment of Choice
Winning at the Moment of Choice Ron Anderson Chief Customer Officer 23 October 2009
Slide 2: Winning at the Moment of Choice
Winning at the Moment of Choice With Consumers and Shoppers. . . . . .and become an Indispensable Business Partner for our Customers 2
Slide 3: Our customer base and business model varies across the world
Our customer base and business model varies across the world On-trade Off-trade Third Party Direct interaction Direct interaction Distributors, with bars, clubs, with grocery, Wholesalers restaurants independents etc e.g. Western Europe e.g. Western Europe, e.g. US, Asia Pac, Latam, Africa Latam, Af
Slide 4: We started to increase our focus on the sales function 2 years ago
We started to increase our focus on the sales function 2 years ago • Chief Customer Officer • Global Customer Marketing • Diageo Way of Selling – Internal sales best practice and account management • Platform for Growth – Improving the capabilities of our Distributors 4
Slide 5: Behaviour has shifted due to the economic downturn
Behaviour has shifted due to the economic downturn Consumers Shoppers Customers Re-evaluating Spending Looking for Value Changing Strategies 5
Slide 6: Winning at the Moment of Choice
Winning at the Moment of Choice • Value share gains • Profitable growth for us and our customers • Respected among CPG peers. Best in the on-trade. 6
Slide 7: Delivering “Winning at the Moment of Choice”
Delivering “Winning at the Moment of Choice” Customer Efficient Sales Development Trade Execution and Service Investment 7
Slide 8: 1. Sales Execution
1. Sales Execution Sales Customer Efficient Execution Development Trade and Service Investment Shopper Understanding and Insights Tailored Off-Trade Activities Great On Trade Experiences 8
Slide 9: We are now operational in 30+ markets representing over 2/3 of net sales
We are now operational in 30+ markets Sales representing over 2/3 of net sales Execution North America: Europe: USA GB, Ireland, Iberia, Northern & Southern Cluster, Russia & Eastern Europe GTME Asia Pacific: Australia, India, LatAm: Korea, Venezuela, Singapore Mexico, Thailand Brazil, Taiwan Northe
Slide 10: Ease of Shop & Category Navigation
Ease of Shop & Category Navigation Sales Execution • Right Range • Right Space • Ease of Navigation e.g. Russia Key Account: +24% spirits category growth +35% Diageo spirits growth ‘Making it easier to find, choose and buy the category’ 1710
Slide 11: Ease of Shop & Category Navigation
Ease of Shop & Category Navigation Sales Execution • Right Range • Right Space • Ease of Navigation e.g. Russia Key Account: +24% spirits category growth +35% Diageo spirits growth ‘Making it easier to find, choose and buy the category’ 1711
Slide 12: Ease of Shop & Category Navigation
Ease of Shop & Category Navigation Sales Execution • Right Range • Right Space • Ease of Navigation e.g. Russia Key Account: +24% spirits category growth +35% Diageo spirits growth ‘Making it easier to find, choose and buy the category’ 1712
Slide 13: Category Promotions & Events
Category Promotions & Events Sales Execution Summer Whisky Simply Spirits Festival Cocktails Results +12% +40% +11% 13
Slide 14: Shopper Interruptions
Shopper Interruptions Sales Execution Before After Results: • Customer: +10% Single Malts Category Sales Growth • Diageo: +18% Single Malts Sales Growth • Scale: +300 Stores in 6 months 14
Slide 15: Store within Store
Store within Store Sales Execution Brazil Perfect Store • 60% Category Growth • 100% Diageo Growth • 50% Retailer Margin Increase • 10 Months Retailer ROI 15
Slide 16: Great On Trade Experiences
Great On Trade Experiences Sales Bartender Training in Australia Execution Results • Customer: Better trained staff (perfect serve, product knowledge) • Diageo: +60% increase in 1st pour volume, +17% Reserve growth • Consumer: Better quality drink experience • Other: 1200 training sessions for 400 p
Slide 17: 2. Customer Development and Service
2. Customer Development and Service Customer Efficient Sales Development Trade Execution and Service Investment Key Account and Distributor Management Customer Service 17
Slide 18: Top retailers are clear on what it takes to win with them
Top retailers are clear on what it takes Customer to win with them Management and Service 64% Price and promotional activity 64% Supply chain efficiency and 52% process improvement 60% 42% Understanding the shopper 52% Greater strategic alignment and 56% long-term joint business planning 44% Balance
Slide 19: Improving Key Account Management and Distributor Capabilities
Improving Key Account Management Customer and Distributor Capabilities Management and Service Retail Trade (On and Off) - Account Management Distributor Distributor Retail Trade Management Capability (On and Off) Distributors - Standard of Excellence Platform for Growth 19
Slide 20: Providing an End to End Customer Service Experience
Providing an End to End Customer Customer Service Experience Management and Service From To On Time in Full On Shelf in Full Warehouse Store Shelf Adapting to a world with lower inventories 20
Slide 21: 3. Efficient Trade Investment
3. Efficient Trade Investment Customer Efficient Sales Development Trade Execution and Service Investment Improved Trade Investment Technology Markets, DWS, Customer Marketing, Supply Chain, Finance 21
Slide 22: Improving Returns from our Trade Investment
Improving Returns from our Trade Efficient Investment Trade Investment Reduce Increase Investment Investment only the the shopper / customer sees consumer sees 22
Slide 23: Delivering “Winning at the Moment of Choice” - At Scale
Delivering “Winning at the Moment of Choice” - At Scale Customer Efficient Sales Development Trade Execution and Service Investment Shopper and Consumer Platform for Growth Insights SAP Scalability Brand Range Global Supply 23
Slide 24: Winning at the Moment of Choice
Winning at the Moment of Choice Q&A Session at 3pm (UK time) – 23 October 2009 Please use the following dial-in numbers: UK – Toll free 0800 279 9640 North America – Toll free 1866 850 2201 France – Toll free 0805 770 155 Germany – Toll free 0800 673 8354 Ireland – Toll free 1800 944 322 Italy – Tol
Slide 25: For further information on Diageo, please visit the Investors section
For further information on Diageo, please visit the Investors section of: diageo.com The Investor Relations team can be contacted on: UK +44 (0)20 7927 4267 US +1 202 715 1110 or by email at: investor.relations@diageo.com 25
Slide 26: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements This document contains ‘forward-looking’ statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements