Welcome. Nigeria November Heineken N.V.

Transcription

1 Welcome Nigeria November 2012 Heineken N.V.

2 Nigerian Breweries: Winning with Nigeria! Hubert Eze Sales Director Nigeria November 2012 Heineken N.V.

3 Agenda Nigerian Breweries: Winning with Nigeria! 1 Nigerian Breweries Sales Organisation 2 Strong Sales and Distribution Capabilities 3 Building Winning Portfolios 3

4 A clear framework to drive commercial success Improve Route to Market Effectiveness Driving capacity and capability development of route-to-market (RTM) Good to Great programme Long term business investment Operational business plan Warehousing development Redistribution development IT management Exploit Portfolio Strength Optimally in all Channels Engage strongly in all segments and occasions Out Experience Spirits Out Ritualise Stouts Out Style CSDs Out Perform Malts Out Refresh in Lagers 2 Building Blocks Uncover key insights and leverage Develop commercial team and improve effectiveness Size and reach Capability development framework Systems and processes 4

5 Nigerian Beer Market Where we focus Volume is concentrated in the Southeast of Nigeria and Lagos 87% of the total market volume is coming from the more stable Southern regions 5 Source: Trade Census 2011

6 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

7 Beer in Nigeria is largely consumed in onpremise outlets Nigerian beer market by channel: Lager, Stout and Malt (2011 mhl) Kiosk; 4,7% Informal Convenience; 13,0% Hotel; 5,1% Restaurant; 6,2% Others; 3,2% Beer Parlour; 39,6% Key volume and brand building in on-premise channels 65% of total consumption is in on-premise Off-premise channel growth outpacing on-premise Driven by modern trade and traditional offpremise outlets Provision Store; 28,3% 7 Source: Internal NB / Trade Census 2011

8 Beer Parlours Share of total Market Volume 40% % of outlet population 11% Main characteristics: Social channel Fun, Free, Release tension Beer is dominant with 94% of volume Activities are focused around quality 8

9 Provision Store Share of total Market Volume 28% % of outlet population 35% Main characteristics: Functional channel Convenience shopping Wide range of beverages Buy and go Activations are focused on availability and price 9

10 High-End, On-Premise Share of total Market Volume 12% % of outlet population 5% Main characteristics: Heineken brand activation Competition with spirits High volume per outlet Strong emerging trend Highly differentiated service offering and pricing 10

11 Modern Trade Share of total Market Volume 1% % of outlet population 1% Main characteristics: Category management Professional management of chains in early development stage Direct delivery to outlets 11

12 Agenda Nigerian Breweries: Winning with Nigeria! 1 Nigerian Breweries Sales Organisation 2 Strong Sales and Distribution Capabilities 3 Building Winning Portfolios 12

13 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 Breweries Plc. Bulk Breakers ~35,000 Retail Outlets ~525,000 Wholesalers ~2, Source: Internal NB / Trade Census 2011

14 Strong in market execution Amstel Malta Showtime Heineken James Bond activation Star brand outlet activation Maltina Dance All 14

15 # of fridges 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

16 Driving success through customer & consumer loyalty programmes 16

17 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

18 Market overview Nigeria Largest Trade Census in HEINEKEN Digital data capturing GPS coordinates of all outlets North 10% of outlets Deep consumer and customer insights unveiled Central 10% of outlets On- and off-premise dynamics optimised Lagos 23% of outlets Mid-west 22% of outlets East 10% of outlets Mid-west 9% of outlets South 16% of outlets 18

19 Precise targeting using Trade Census information 19

20 Developing our people Improvement of Sales process Sales force assessment Training Tools Sales support How can we optimise our sales process, creating an enabling environment for the sales force? Does the sales force have the right skills to win at the market place? How can we determine the right training needs? How can we effectively train the sales force in areas with low skills? How can we ensure knowledge transfer through team heads? How can we support the sales force with the right tools? How can we optimise time spent in the market place? How can we ensure our sales force is winning in the market place? How do we keep track of performance against set KPIs? 20

21 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

22 Agenda Nigerian Breweries: Winning with Nigeria! 1 Nigerian Breweries Sales Organisation 2 Strong Sales and Distribution Capabilities 3 Building Winning Portfolios 22

23 Broad brand portfolio across all segments Lager Stout Malt +130 International Premium N National Premium N Mainstream N200 N200 N100 <100 Savings N130-N140 N80 23

24 Platforms for Heineken brand growth Open Your World Communication Design Engagement Innovation 24

25 Legend Extra Stout Out Ritualise in Stout Volume growth (000 s carton units) 3 year CAGR +45%

26 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 trendy, but also retains the classy look and is consumed primarily for price value, portability and resealability 26 *Introduced 2011

27 Maltina & Amstel Malta Outperform in Malts Volume growth (000 s carton units) Maltina 3 year CAGR +15% Amstel Malta 3 year CAGR +38% Maltina Amstel Malta 27

28 MALTINA COMMERCIAL 28

29 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 on goal.com On line, real time being part of the conversation! Growing online community and followership Synchronised use of Facebook, Twitter, Youtube and dedicated brand website 29

30 STAR COMMERCIAL 30

31 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 route-to-market structure with key partners and proprietary Trade Census system provides broad distribution reach Ongoing investment in assets, people and brands a source of sustainable competitive advantage 31

32 Questions Nigeria November 2012 Heineken NV