How  Coca  Cola  İçecek  is  Advancing  Revenue  Growth  Management  Capabilities  through  Big  Data,  Advanced  Technology  and  Effective  Business  Processes?

Speakers

Murat  YıldırımRevenue  Management  &  Analytical  

Consultancy  Leader

A.  Sıtkı  OzcanRevenue    Growth  Manager

Agenda

Revenue  Growth  Management  Capabilities

0102

0304

Revenue  Management  Journey

Understanding  the  Business

Learnings  &  Outputs

Big  Data  ʺ″The  New  Oilʺ″Technology ʺ″Simpler  Terms  Getting  Complexʺ″

Market  Overview

Revenue  Management  and  Optimization  CapabilityJoint  Business  Plan

Understanding  the  BusinessMarket  Overview

Spotlight  on  Turkey

MEDIAN  AGE

29.6TOTAL  POPULATION

78,741,053

24%

57%

19%

MODERN  TRADETRADITIONAL  TRADEDISCOUNTER

FAST  MOVING  CONSUMERGOODS  LANDSCAPE

%  SALES

GROSS  DOMESTIC  PRODUCT

$ 798BILLION

CCI  MARKET  SHARE  IN  TRADITIONAL  

TRADE

68

41% PERCENT  BETWEEN15-­‐39  AGES TRADITIONAL  TRADE

SHARE  BUSINESS

63% 67%NON-­‐ALCOHOLICBEVERAGE

CARBONATED  SOFT  DRINKS

Spotlight  on  Business

FMCG  Value  Split %

6.4 12.0 18.5 23.0 25.018.024.0

23.6 24.4 25.0

75.764.0 57.9 52.6 50.0

2005 2010 2014 2018 2020

DiscountersModernTraditional

9.4 11.0 13.0 15.6 17.623.0 23.1 23.2 23.4 23.5

67.6 65.9 63.8 61.0 58.8

6.4

Shift  thru  Modern  Channel  and  Discounters,  however   Traditional  Trade  will  keep   its  strong  position  for  our  business

Beverage Value  Split %

2005 2010 2014 2018 2020

Largest  bottler   in  terms  of  population

5th Largest  bottler   in  terms  of  volume

2ndSpotlight  on  CCI

CCI’s  Revenue  Management  Vision

Year  1 Year  2 Year  3 Year  4+

Elevate  The  Agenda

Capability  PushRGM  Culture

Business  StrategyProcess

Defining  Excellence

Delivering  ExcellenceEvery  Day  !

Generate  the  Fuel  to  Ensure  Sustainable  and  Profitable  Business  Growth  with  a  Holistic  RGM  Approach

Administrator Counselor Strategist Revenue  Leader

Low  skillTacticalRe-­‐active

High  skillStrategicPro-­‐active

Trade  Promo  Optimization

Trade  Spend  Efficiency Planning

Build  Brand  &  Category  

Roles

Sustainable  New  Growth  

Model

Portfolio  Prioritization

Lead  Value  Growth  Initiatives

Foundation  for  robust  OBPPC

Pack  roles

Channel  architecture

SKU  optimization Clear  guidelines

Maximized  ROI  of  trade  promo  and  POS  investments

Improve  predictive  capabilities  for  forecasting  

RGM  as  a  key  lever  to  drive  value  

Revenue  Management  Capabilities

ʺ″Simpler  Terms  Getting  Complexʺ″1010

Data  has  no  limits!

Data  in  Real  Time

CCI’s  Big  Data  in  Traditional  Trade

1 3 44 55

44%  of  Total  CCI  Revenue

2

311Distributor

160,000  Seperate  POS

+3  Million  Invoices/month  to  Track

37  Region  /  Sales  

Manager

Traditional  Trade  :  Vital  for  Coca  Cola  Icecek  to  optimize  &  track  it

ʺ″The  Journeyʺ″

Joint  Business  Plan  of  Two  Giants

Source:  Gartner  Vendor  Panorama  for  TPM  in  Consumer  Goods  2014

NET-­‐NET  PRICE

Studies  show  that  a  gain  in  Net-­‐Net  price  of  +1%could  deliver  8%  to  12%  improvement  in  profit

More  and  more  business  leaders  are  investing   in  sophisticated  predictive  analytics to  drive  tomorrow’s  pricing  models  

Sophisticated  pricing  capabilities  are  key  to  asses  risk  of  revenue  &  profit  loss  associated  with  pricing  strategies  

PRICING  IS  THE  MOST  EFFECTIVE  

PROFIT  DRIVER  

PRICINGIS  THE  MOST  EFFECTIVE  

PROFIT  DRIVER

Optimizing  pricing  and  promotion  is  an industry-­‐wide  challenge

Optimizing  pricing  and  promotion  is  an industry-­‐wide  challenge

Ineffectiveinvestment  …

…  that  is  gettingworse…

…  and  impacts  all  industry  players.

59%LOSE  MONEY

41%MAKE  MONEY

33%RETAILERGROWTH

24%MANUFACTURER

GROWTH

16%MUTUALGROWTH

28%SUBSIDIZATION

LOW

RETAILER  BEN

EFIT

HIGH

HIGH

LOWMANUFACTURER  BENEFIT

Q1  2012 Q3  2014

$1.00

$0.94

5,4%

4.4%

TRADE  EFFICIENCY

%  OF  WEEKS  ON  PROMOTION

6.0%

6.5%

7.0%

7.5%

$0.60

$0.65

$0.70

$0.75

2012  1Q

2012  2Q

2012  3Q

2012  4Q

2013  1Q

2013  2Q

2013  3Q

2013  4Q

2014  1Q

2014  2Q

2014  3Q

Trade  COST  OF  GOODSPRICING  COMPLEXITY

Source:  Nielsen  Trade  Promotion  Landscape  Analysis  2015  (US,  Canada,  FR,  DE,  UK,  IT,  SP)  

Breaking  the  Cycle...  Even  in  Traditional  Trade

?

POOR  VISIBILITY  INTO  FINANCIAL  PERFORMANCE  OF  TRADE  EVENTS

COMPLICATED  TRADE  FUNDING  STRUCTURES  BY  CUSTOMER

HISTORICAL  STRATEGY  EXCEPTIONS  ARE  DIFFICULT  TO  UNWIND

DISPARATE  DATA  SOURCES  NEEDED  TO  MEASURE  TRADE  EFFECTIVENESS  

DISCONNECTED  TRADE  SPEND  PLANNING  

SYSTEMS

SKILLSET  NOT  DEVELOPED  ACROSS  THE  ENTIRE  

ORGANIZATION

CCI’s  Need

ANSWERRMO  will   improve  the  pricing  and  promo  strategy  capability  of  the  system  thru  leveraging  robust  models,  analytics  and  scenario  planning  tools.  Simple   to  use  platform  to  support  the  promotional  planning  process  and  develop  a  post-­‐event  analytics  capability

COMPLICATION

Decisions  based  on  market  dynamics  and  experience   lacking  a  prospectus  post-­‐analysis,  closed  loop  process  and  a  good  understanding  of  what  worked  what  did  not.  Regional &  segmentbased focus is  inadequate

SITUATION Traditional   trade  oriented  business  and  we  need  a  holistic  portfolio  approach  in  pricing  and  promotion  decisions.

QUESTION What  is  the  best  tailor-­‐made  solution  for  the  specific  market  requirements  as  to  develop  wining  strategies    and  holistic  portfolio  approach  in  pricing  and  promotion  decisions?

Define  ideal  trade  margin

Understand  the  drivers  of  shop  owners’  

preferences

End-­‐to-­‐End  TPO  

solution

Project  Objective

Improve  efficiency  and  trade  promo  optimization  in  Traditional  Trade via  analytical   tools  &  guidelines  

The  Size  of  the  Prize  

3,2%Of

Operating  Income

opportunity  for  TT  on  Trade  Promotion  Optimization  to  be  re-­‐invested  on  accelerating   growth!