Business Review to Dumex Malaysia

By

DKSH & Dumex (Cambodia)

Schedule

June 1113:30-14:30 MY Presentation15:00-16:00 DKSH&Dumex 16:00-17:30 Issue Discussion

June 129:00-12:00 Market Visit

- Lucky Supermarket- DRC shop- Olympic Market (Wholesale)

Agenda

• About Cambodia (Geography, Population, Economic Situation)

• About Dumex Cambodia• Cambodia Vision and Mission• Sales Analysis

– Sales Trend Analysis– Distribution Analysis– Trade Promotion Analysis

• Issues to be discussion

VietnamKandal

Phnom Penh

KampotSihanouk Ville

Kampong Speu

KampongChhnang Kampong Cham

Pursat

Battambang

Banteay Meanchey

Koh Kong PreyVeng

Svay Rieng

Kampong Thom Kratie

Odar Meanchey

Preah VihearStung Treng

Rotanak Kiri

Mondul KiriPailin

CambodiaCambodia

Takeo

Siem Reap

Kep Ville

France BebeNestle

Dumex

2007 Estimates:• Population 07 : 14.5 mil.• Urban population : 18%• Birth Rate 2007 : 1.6%• New babies : 228,851 babies

• Cambodia consist of 20 Provinces• 4 municipalities

– Phnom Penh– Kampong Som– Kep– Pailin

Population Growth

Source: MOH, statistic department and ADB

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2003 2004 2005 2006 2007

Super Premium

Premium

Total

Market Growth Updates (end of Y07)

• Total market estimated 16 mil. US$ in 2007,

with +28% growth over LY (included

smuggling to VN: 3 mil. US$)• Market Growth double digits annually• SP is growing faster, 10 times in 4 years• Premium is growing very slow compare to SP• Premium is shrinking and Super premium

is growing faster

+106%

+81%+194%

+73%

-2%

+6%

+40% +1%

+28%

+11%

+55%+14%

2006

28%

72%

Super Premium

Premium

2007

45%

55%

Super Premium

Premium

Key Competitors in Cambodia

• Super Premium (45%)– Abbott (Mkt Share 23% exclude smuggling to VN ~ 3M USD)

– XO

• Premium (55%)– France Bebe (Mkt Share 27%)

– Nestle (Mkt Share 27%)

– Foremost– Lailac

Market Share - 2007

$3,054,545 , 23%

$2,160,000 , 17%

$129,538 , 1%

$3,597,264 , 27%

$4,128,348 , 32%

DUMEX FRANCE BB ABBOTT Nestlé Other brands

New Dumex Organization

Country Manager

Marketing Manager

Trade Marketing Manager

PMIFFO

PMGum

Sup PC Sup PC

Sup PC 2 TME

15 PCs 15 PCs

15 PCs 2 merchandiser

Nutrition Manager

Consumer Service Supervisor

3 NS

Asst.

ME

11 NAs

ME Asst.

Pool Secretary

Cleaner

PC

Total Staff = 89

Sales Trend Analysis

236196 187

331

231

302

120

504

148

323 341

200

448 448 448 448 448 448 448 448 448 448 448448447

263

495

267

465

0

100

200

300

400

500

600

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Act 07 Trg 08 Act 08

471

169

332

258

381404 395

319

406 419

533

355

533 533 533 533 533 533 533 533 533 533 533 533

673

367

559 566

704

0

100

200

300

400

500

600

700

800

Jan FebMar AprMayJun Jul AugSep Oct NovDec

Act 07 Trg 08 Act 08

MY Sale Trend In-Mkt Sale Trend

Overall YTD MY sales 86.4% vs Target effect from short supply and forecast accuracyWhile YTD In-Mkt sales achieve 107.6% due to outstanding sales in premium

‘000 USD ‘000 USD

Target = 5.4M USD Target = 6.4M USD

Total Sales Comparison

41 38 32 34 12

447

263

495

267

465

673

367

559 566

704

0

100

200

300

400

500

600

700

800

900

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

05101520253035404550

Stock Cover day MY In-MKT Linear (In-MKT) Linear (MY)

Due to outstanding In-market sales and out off stock issue make DKSH stock cover day below 45 days Area to focus: Inventory replenishment Plan

#day‘000 USD

In-MKT Sales Growth Trend

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

In-Market Sales 1,280,596 2,063,564 2,715,056 3,381,247 4,606,794 6,400,000

2003 2004 2005 2006 2007 2008 est

+36%+36%

+25%+25%+32%+32%

+400%+400%

+61%+61%

US$US$

+39%+39%

Dumex has double digit growth in every years since Y2003

Outlet/Distribution Management

DKSHDKSH

Gold Team (2)22%sales contribution

Gold Team (2)22%sales contribution

Premium Team (9)78% Sales contribution

Premium Team (9)78% Sales contribution

Dumex-CBDumex-CB

Total Outlet = 2,193Target = 2,500 (+14%)

Provinces (5)1,572 Outlets

46% sales contribution

Provinces (5)1,572 Outlets

46% sales contribution

Phnom Penh (4)621 Outlets

54% sales contribution

Phnom Penh (4)621 Outlets

54% sales contribution

Sales contribution targetPremium = 69% (+10%)Gold = 31% (+98%)

Sales Volume Trend by IF

0

0.5

1

1.5

2

2.5

3

3.5

4

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008

0

2

4

6

8

10

12

14

16

18

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008

Super Premium Premium

Sales in SP was sharply dropped since increased price and change to BB.Premium trend of IF also effect from last in Jan.

(Ton) (Ton)

Sales Volume Trend by FO

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008

0

5

10

15

20

25

30

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008

Super Premium Premium

The trend same as IF except Premium that effect from OOS since Apr

(Ton) (Ton)

Sales Volume Trend by GUM

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008

0

5

10

15

20

25

30

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008

Super Premium Premium

Overall, GUM in market is fluctuate and need to boost up thru the promotion/premium.

(Ton) (Ton)

Trade Marketing Trade Marketing ActivitiesActivities

Prepared by Preaksa

Trade Marketing Manager

Content

• Display Contest

• Visibility Program in Modern Trade

• Consumer Promotion (Redemption Program)

Display Contest Program• Objective

– To promote of BIG BANG products after launch– Easy consumer sight– Block competitors display program

• Scope & Timing– 30outlets of DRC in Phnom Penh and start from March to

May’08

• Result– Take good display location– Some outlet move competitors display location out– Increase off take of BIG BANG

Bun Heng (DRC)

Lim Chhun Chou (DRC)

Hour Panha (DRC)Chomrein Oudom (DRC)Lim Tai Seng (DRC)

Chea Leap Heng (DRC)

Visibility in Modern Trade• Objective

– To Promote BIG BANG in modern trade after launch

– Increase brand visibility in modern trade

– Easy consumer sight

• POSM Support BIG BANG– Gondola, Head Shelf Display, Floor Sticker, Pillar

Light Box

Consumer Promotion• Objective

– To increase off take of BIG BANG after launch– To reward consumer that used BIG BANG– To convert user from competitors

• Scope & Timing– All outlets in Phnom Penh & Siem Reap and start from March to

June’08

• Result– Increase sales volume 15%– Attractive consumer especially at supermarket– Convert some 20% user from competitors

POSM and Selling tools

Consumer Leaflet

Shelf talker

Call CardSalesman

Guide Book

Issues to be discussion

• Ordering Lead time (How to shorten time to be 2 month)

• Printed tin like VN

• Product Supply to DKSH