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Customer – Supplier
Relationship
Razvan Tudor
Coca-Cola Hellenic Romania
Romanian Modern Retail is estimated to 33.4 Billion euroin 2009
22%27%
33%
39%42%
48%
59%
70%
2009Est200820072006
Source: Planet Retail
The CCH market development curve becomes steeper by 2012
MODERN TRADE DEVELOPMENT
Percentage of Organised Modern Trade by Market
ExplorationExploration ConcentrationConcentrationPenetrationPenetration MaturationMaturation DevelopedDeveloped
CO
NC
EN
TR
AT
ION
Top 5
Reta
ilers
Share
of G
rocery
Sale
s
UkraineBulgaria
RussiaTurkey
Romania Greece
Czech Republic
Poland
Austria
Slovenia
Italy
HungarySlovakia
SwitzerlandLithuania Ireland
Latvia
Estonia
10%
20%
30%
40%
50%
60%
70%
80%
90%
20% 30% 40% 50% 60% 70% 80% 90% 100%
Value of Top5EUR10Billion
Source: MVI database
FYE 2012
Romania – Future Trends
Economic environment will influence 2009 everybody's performance
• Growth will slow drastically to 2.6% in 2009 under the
impact of the global economic crisis…
• …with a downside risk that growth could be even slower,
and a strong chance that Romania could fall into outright
recession
• Consumer spending, which grew 11.6% in 2008,
decelerated already to 6.8% in November and will drop
to just 1.7% in 2009
• And, again, there is significant risk on the downside
• As elsewhere, there will be some consolation from a
lower inflation rate, which will drop from 7.9% to 5.8%
and perhaps lower
Source: The Economist
Modern Trade Market Growth 2008 Vs PY in Transactions
Source: MEMRB weekly scanning data
All categories show a clear decreasing trend
-40%
10%
60%
110%
160%
210%
W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52
CSDWaterJuicesTea
-40%
10%
60%
110%
160%
210%
W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52
CSDWaterJuicesTea
• Accelerate
profitable
growth
• Supply chain
improvement
• Differentiation!
• Expand the size
and value of the
beverage
category and capture the
growth!
Supplier AgendaCustomer Agenda
We will work
TOGETHERto maximize shopper value, one perfect store at a time
“The Promise”
Product
Price
Customer Service
Supply Chain
Price
Service
Product
Multifunctional Sales Team
Salesman
AdministrativeEfficiency
Logistic Efficiency
SalesEfficiency
…..… a new mindset
We need to reset our mind and to assess our current level of relationship
+
We have a good base to start
� Satisfaction is fairly
positive among key account contacts.
� Relationship among key customers
is very positive.
� Improvement of delivery system
� Better/clearer invoicing
� More marketing events
Recommendations to
improve relationship
Source
4 5 93 4
13 9
1820
28
3936
5053
56
4345
182312
5 5
Coca-Cola Pepsi Cola European Drinks Romaqua La Festa/Maspex
Overall Relationship With Beverage Suppliers
�
�
�
Collaboration
Re
ven
ue w
ith
in N
AB
s
Target
Leaders
Strategic
Partners
Transactional Target
Partners
There are four types of relationship level based on business importance and degree of collaboration
Four pillars should be consider in each and every plan we build together
Trade Marketing
Business Financials Supply Chain
In Outlet Execution
Target
Leaders
Target
Leaders
Strategic
Partners
Strategic
Partners
TransactionalTransactional Target
Partners
Target
Partners
Trade Marketing is about getting into
consumers mind
• Insights (Market, Consumer,
Shopper)
Target
Leaders
Target
Leaders
Strategic
Partners
Strategic
Partners
TransactionalTransactional Target
Partners
Target
Partners
• “Think Occasion” - OBOM
• Design Tailored Promo
Business Financials should be positive for all
constituents of the business
Target
Leaders
Target
Leaders
Strategic
Partners
Strategic
Partners
TransactionalTransactional Target
Partners
Target
Partners
• Return on Investments
• Cash Margin Management
• Credit Performance
Supply Chain should deliver the best service at the lowest cost possible
Target
Leaders
Target
Leaders
Strategic
Partners
Strategic
Partners
TransactionalTransactional Target
Partners
Target
Partners
• Forecasting
• Service Level
• Cost to serve
SCORE by MODULE
47%
60%
86%
33%
96%
75%
75%
16%0%
0%
13%
35%
15%
50%
0%
20%
40%
60%
80%
100%
Collaboration
Stock Mgmt
Order Mgmt
MasterdataEDI
Product Flow
Sustainability
Best in Class
Desired status 2009
Current status
In Outlet Execution Target
Leaders
Target
Leaders
Strategic
Partners
Strategic
Partners
TransactionalTransactional Target
Partners
Target
Partners
• Promo Trade Plan
• Store Layout Implementation
• Excellence
Benefits for Collaborative/Planning SellingBenefits for Collaborative/Planning Selling
– Revenue increase from incremental category growth (same
share)
– Revenue increase from incremental category share
– Net sales/margin increase from improved
pricing/promotional policies
– Improved understanding of partners needs and
behaviors
– Rationalization of activation strategy as a means to
improve customer-supplier relationship
– Reenergized top-line growth arising from precisely
meeting individual shopper and consumer needs in
every outlet
Economic
impact
Economic
impact
Strategic impactStrategic impact
• Accelerate
profitable
growth
• Supply chain
improvement
• Differentiation!
• Expand the size
and value of the
beverage
category and capture the
growth!
Supplier AgendaCustomer Agenda
We will work
TOGETHERto maximize shopper value, one perfect store at a time
“The Promise”
Relationship is Executing to Lead