Heineken NV · EURONEXT:HEIA
Heineken NV — HEINEKEN Financial Markets Conference 2012
32 slides from Heineken NV's conference presentation, November 2012
Slide 1: Welcome
Welcome Nigeria | November 2012 Heineken N.V.
Slide 2: Nigerian Breweries: Winning with Nigeria!
Nigerian Breweries: “Winning with Nigeria!” Hubert Eze Sales Director Nigeria | November 2012 Heineken N.V.
Slide 3: Agenda
Agenda Nigerian Breweries: “Winning with Nigeria!” 1 Nigerian Breweries Sales Organisation 2 Strong Sales and Distribution Capabilities 3 Building Winning Portfolios 3
Slide 4: A clear framework to drive commercial success
A clear framework to drive commercial success Improve Driving capacity and capability development of route-to-market (RTM) Route to Market ‘Good to Great’ programme Effectiveness Long term Operational Warehousing Redistribution IT business business plan development development management investm
Slide 5: Nigerian Beer Market
Nigerian Beer Market Where we focus Volume is concentrated in the Southeast 87% of the total market volume is coming of Nigeria and Lagos from the more stable Southern regions 5 Source: Trade Census 2011
Slide 6: Sales force coverage
Sales force coverage 1,050 direct and indirect sales force Serving a universe of approximately 550,000 outlets Priority outlets represent 84% of total volume Over 20,000 sales calls per day 6 Source: Internal NB / Trade Census 2011
Slide 7: Beer in Nigeria is largely consumed in on-premise outlets
Beer in Nigeria is largely consumed in on- premise outlets Nigerian beer market by channel: Key volume and brand Lager, Stout and Malt (2011 mhl) building in on-premise channels 65% of total consumption Hotel; 5,1% Others; 3,2% is in on-premise Restaurant; Off-premise channel 6,2% growth outpa
Slide 8: Beer Parlours
Beer Parlours Share of total % of outlet Market population Volume 11% Main characteristics: 40% Social channel Fun, Free, Release tension Beer is dominant with 94% of volume Activities are focused around quality 8
Slide 9: Provision Store
Provision Store Share of total % of outlet Market population Volume 35% Main characteristics: 28% Functional channel Convenience shopping Wide range of beverages ‘Buy and go’ Activations are focused on availability and price 9
Slide 10: High-End, On-Premise
High-End, On-Premise % of outlet Share of total population Market Volume 5% Main characteristics: 12% Heineken® brand activation Competition with spirits High volume per outlet Strong emerging trend Highly differentiated service offering and pricing 10
Slide 11: Modern Trade
Modern Trade % of outlet Share of total population Market 1% Main characteristics: Volume 1% Category management Professional management of chains in early development stage Direct delivery to outlets 11
Slide 12: Agenda
Agenda Nigerian Breweries: “Winning with Nigeria!” 1 Nigerian Breweries Sales Organisation 2 Strong Sales and Distribution Capabilities 3 Building Winning Portfolios 12
Slide 13: A fully integrated route to market
A fully integrated route to market Building an effective route-to-market with key partners Direct sales from key distributors to retail outlets is the preferred route-to-market Support development capabilities of key distributors to secure future growth Key Distributors 150 Nigerian Bulk Retail
Slide 14: Strong in market execution
Strong in market execution Amstel Malta Showtime Heineken® James Bond activation Star brand outlet activation Maltina ‘Dance All’ 14
Slide 15: Increasing cold beer availability
Increasing cold beer availability Continuously growing cooling capacity in outlets Serve our products optimally to consumers Investing in environmentally friendly cooling equipment Structured routine maintenance Securing product availability # of fridges 2009 2010 2011 2012 15
Slide 16: Driving success through customer & consumer loyalty programmes
Driving success through customer & consumer loyalty programmes 16
Slide 17: Applying leading technology in the market place
Applying leading technology in the market place Automated sales call card generation Execution alignment of Sales Strategy in channels Improved customer facing management Extensive KPI reporting with strong call impact indicators 17
Slide 18: Market overview
Market overview Nigeria Largest Trade Census in HEINEKEN Digital data capturing GPS North coordinates of all outlets 10% of outlets Deep consumer and customer insights unveiled Central On- and off-premise 10% of outlets dynamics optimised Mid-west 22% of outlets East 10% of outlets Mid-west
Slide 19: Precise targeting using Trade Census information
Precise targeting using Trade Census information 19
Slide 20: Developing our people
Developing our people Improvement of Sales force Training Tools Sales support Sales process assessment How can we Does the sales How can we How can we How can we optimise our force have the effectively train support the ensure our sales sales process, right skills to the sales force in sales force w
Slide 21: Driving Sales force performance through incentives
Driving Sales force performance through incentives Strong reward as a percentage of total remuneration to drive execution excellence 70% 55% 40% Sales Rep Level District Management Regional Management Variable pay Fixed pay 21
Slide 22: Agenda
Agenda Nigerian Breweries: “Winning with Nigeria!” 1 Nigerian Breweries Sales Organisation 2 Strong Sales and Distribution Capabilities 3 Building Winning Portfolios 22
Slide 23: Broad brand portfolio across all segments
Broad brand portfolio across all segments Lager Stout Malt +130 International Premium N260 110 National Premium N210 100 Mainstream N200 N200 N100 <100 Savings N130-N140 N80 23
Slide 24: Platforms for Heineken brand growth
Platforms for Heineken® brand growth ‘Open Your World’ Communication Design Engagement Innovation 24
Slide 25: Legend Extra Stout
Legend Extra Stout ‘Out Ritualise’ in Stout Volume growth (000’s carton units) 3 year CAGR +45% 2009 2010 2011 25
Slide 26: Fayrouz
Fayrouz ‘Out Style’ in CSDs 3 year CAGR +2% Fayrouz Bottles have a strong image perception versus other CSD brands and are consumed mainly due to accessibility and affordability 3 year CAGR +9% Fayrouz cans are seen as ‘classy’ and useful for on-the-go consumption moments Innovation* Fayrouz PET is
Slide 27: Maltina & Amstel Malta
Maltina & Amstel Malta ‘Outperform’ in Malts Volume growth (000’s carton units) Maltina 3 year CAGR +15% Amstel Malta 3 year CAGR +38% 2009 2010 2011 Maltina Amstel Malta 27
Slide 28: Maltina Commercial
MALTINA COMMERCIAL 28 HEINEKEN
Slide 29: Star
Star ‘Out Refresh’ in Lagers Music activation platform: Star Trek with MTV Star Quest: A platform for aspiring talents to ‘Shine On’! Collaboration with most relevant music stars + online leveraging Football association – Igniting consumer passion! Broadcast Sponsor of La Liga EPL sponsor
Slide 30: Star Commercial
| STAR COMMERCIAL HEINEKEN
Slide 31: Summary
Summary Nigerian Breweries has strong local market capabilities, supported by HEINEKEN’s global commercial expertise A strong brand portfolio across all product categories and market segments Tailored channel management approach to optimise effectiveness of sales execution Fully integrated r
Slide 32: Questions
Questions Nigeria | November 2012 Heineken NV
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