Post on 24-Sep-2020
Revenue ManagementFabricio ZonziniVP Disruptive Growth APAC
Connection with Strategy
Personal Introduction
CPI
NR/HL
• Maximize revenue potential in comparison to CPI
Growth Index Evolution
• Drive aggressive expansion plan while still maintaining a strong revenue management agenda
Volume Share Evolution
12.3%
13.4%
15.0%
17.5%
1pp
0.9pp0.3
pp0.1
Org var
Share
2011 2012 2013 2014
Revenue management is a driver of both revenues and market share in a sustainable way.
Grow NR/HL ahead of CPI Allocate resources for market share expansion
2012 2013 2014 2015
100
127
106
Pro
mo
tio
nC
ont
ract
NL
AB
White Areas
Stage 1 (Early)
Stage 1 (Late)
Stage 2 (Early)
Stage 2 (Late)
Stage 3
Consolidate
NL AB Top CD/TT
KA
100%
100%
100%
100%
100%
30%
50%
50%
100%
100%
20%
30% 30%
100% 100%
Packages/ Price Segments
Premium
5%< --- ---
5-20% --- ---
20-35% --- ---
>35% --- ---
>35% 15-30% ---
>35% >30% ---
>35% >30% >25%
Core+ Core
100% 100% 100% 100%
100% 100% 100% 100%
• Distribution and investment type align with channel focus
• Align with distribution expansion approach
• Strengthen controls in order to build competitiveness in portfolio, channel and geographic coverage
+9%
Rate: 10%
Mix: 90%
• Key mechanism for supporting trade up and mix strategy.
• Rate increase coupled with strict investment controls.
NR/HL CAGR
1H12-1H15
Revenue Management – Strategic Priorities
Mix Designed for Trade-Up
Right portfolio/price in the right channel
Support Market Share Expansion
Centralization & Process Control
TT
CD
• Portfolio built with clear price architecture
HarbinBudweiser
• Build PTC laddering to facilitate trading up• Revenue management to support share
gains through penetration and/or frequency
Super Premium
Premium
Premium +
Core++
Core/Core-
Core+
• Build PTC laddering to facilitate trading up• Continuously lifting the premium ceiling
premiumness through innovation and pricing
90% Mix contribution to Net revenue / Hectoliter growth(Actual 1H12 – 1H15)
Strategic Priorities – Mix designed for Trade-up
Mix Designed for Trade-Up
NL AB CD TT
Product placement and
investment guidelines by
channel to protect
premiumizationobjectives
BRAND(communication)
PACK(lead)
Promotional pricing
(Y/N)
Alum. bottleSmall Bottle
Big bottle Big bottle Cans
NO NO YES YES
Distribution and investment type align with channel focus
Strategic Priorities – Right portfolio/price in the right channel
Right portfolio/price in the right channel
Resource allocation to support right brand growth
NO PRESENCE HIGHLY DISTRIBUTED
NL/KAAB
CDTT
Expansion direction
Inve
stm
ent
Leve
l
CH
AN
NEL
S
Strategic priorities – Support market share expansion
Support Market Share Expansion
Core Segment Requires clear
pricing strategies
• Pricing strategy specific to segment and brand positioning
Premium Image Commands
Premium Price
not keeping pace with
19% 27%50%
80%
0%
50%
100%
2012 2013 2014 2015
Rate as % of CPI(H1 all years)
10% Rate contribution to Net revenue / Hectoliter growth(Actual 1H12– 1H15)
Investment Guideline
Centralized pricing
Commercial Process
Platform Enablement
AB iPrice
$i
AB iTarget
ii
AB iInvest
i
Discount Declining(% of revenue)
2013 2014 2015H1
Strategic priorities – Centralization and process control
Centralization & Process Control
COMPLEX
CENTRALIZED
OPERATIONAL
DE-CENTRALIZED
1
2
3
4
SUB-OPTIMIZATION
CONFUSION VALUE CREATION
CONTROL
2010
2012
2015
FUTURE
Continuous improvement – Journey