Padang Sidimpuan Key Success Story. 2 CONTENTS Situation Analysis BOWATTS and Key Strategy Strategy...

Padang Sidimpuan

Key Success Story

2

CONTENTS

• Situation Analysis• BOWATTS and Key Strategy• Strategy Implemented• Summary Result• Conclusion

3

SEP1

2

OCT12

NOV12

DEC12

JAN13

FEB1

3

MAR

13

APR1

3

MAY

13

JUN13

JUL1

3

AUG13

SEP1

30

20406080

100120

0.0

1.0

2.0

3.0

4.0

85

76

4.0

UMLD DL Performance

WOOS WDL SOM

0

20

40

60

80

100

120

0.0

2.0

4.0

6.0

8.0

10.0

12.0

86

92

8.0

InMild DL Performance

WOOS WDL SOM

SITUATION ANALYSIS

SpontaneousAwareness Trial Smoker

SharePurchased

P1YPenetration

FY ‘12

FY’13

JU AU SEOC

NO D

E JA FE MA AP

MA JU JU

7.2

1.31.7

UMLDTrial

Purchase

14.5 146%

21.245%

9.652%

5.088%

4.0

14.6 120%

17.532%

5.648%

2.770%

1.9

InMild has better performance compare to UMLD both in SoM and WDLCompare to FY’12 UMLD performance soften from Trial to Smoker Share

4

SITUATION ANALYSIS

IRD 7,000 IRD 8,000 IRD 9,000 IRD 10,000 IRD 15,000

Source : RTA Nielsen NXP YTD SEPT’12 vs YTD SEPT’13

Brand Price /pack(YTD

Sept’13)

SoM (YTD

Sept’13)

WDL(YTD

Sept’13)

UML IRD 9.038 3.482 % 76

InMild IRD 9,177 8.096 % 92

Clas Mild IRD 12,800 2.455 % 79

Club Mild IRD 9,092 0.415 % 34

GG Mild IRD 10,000 0.398 % 57

InMild is the biggest SOG for UMLD in regards to TMLD delisting as it has similar price and better WDL performance

5

SITUATION ANALYSIS

Source Data : ROL6 LA-64 ASO P SIDEMPUAN – FY’13ALL ADULT MALE SMOKERS LA64 WHO AGED 19+ ('000)

Actual No.Of Intv : FY’12 = 749FY’13 = 744

InMild price point break increase and getting closer to UMLD price, offer opportunity to drive switch in

Meanwhile InMild soften in regular smoker share but performance is started to recovering

33.00%

0 0%

9.6

164%

15.7

92%

14.4

FY ‘12

FY’13 29.1

0%0

0%0

0% 10.2

87%

8.9

1.2

9.3

IN Mild

Occ. Smoker Reg. Smoker


SharePurchased

P1YPenetration

Q1 Q2 Q3 Q4

8,700 8,800 8,900 9,000 9,723

554/stick

600/stick

8,900 9,000 9,177

9,400

9,600

9,780

560/stick

600/stick

6

SITUATION ANALYSIS

• UMLD DL is not yet optimal while TMLD DL is decreasing as InMild SoM and WDL keep increasing

• UMLD is soften in most key performance parameters

• InMild is the highest SoG for UMLD regarding TMLD delisting

CHALLENGES

• TMLD and In Mild price point break create switch in chance for UMLD

• In Mild key parameter in BAM are all softening

OPPORTUNITIES

7

BOWATTS

How can UML strengthen its position as the safety net for AMLD while accelerate its position to gain smoker shares

due to TML delisting

CHALLENGES / OPPORTUNITIES

DL is not yet optimalCompetitive price in LTLN segment

1. Implement “BEAT SPIRIT”2. Seize the opportunity in affected District Focus through fundamental activities.3. Generate trial and purchase through CE Activities.

STRATEGIES:

Opportunities due to TML delisting

BOWATTS AND KEY STRATEGY

8

STRATEGY IMPLEMENTATION

1.Implement “BEAT SPIRIT”

Spirit Number

One!!

Employee Initiative Activities

One Day With Brand

- Retail Advocacy

- Mystery Shopper by Employees

50 outlets

Mystery Shopper

- Mystery shopper by Employees

200 outlets

Brooming

- TPOSM placement- Endorse PVP and SP- Retail advocacy

Salesman Kit

Salesman Kit for SEOutlet & consumer more aware for UML

Bring all integrated program in District Focus

Early execution deliver early harvest

Act and optimized every opportunity

Tough determination on excellent execution

BEAT

“BEAT SPIRIT” is the value endorsed to all team representing the strategy conducted for every activity.

Additionally, it encourage initiative activities executed by team to further accelerate performance

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2. Seize the opportunity in affected District Focus through

fundamental activities.

a. Understanding competitive landscape and be focus on Selected District with huge

SoG competitor

b. Optimize the opportunity of TML delisting to increase sales volume UML

c. Enhance brand presence in district focus via scalable tactical OOH deployment

d. Increase visibility and availability in trade channel through massive trade program

e. Enhance merchandising and DL reach by coverage expansion implementation.

10


KAB. PADANG LAWAS

KAB. PADANG LAWAS UTARA

KAB. TAPANULI TENGAH

KAB. TAPANULI SELATAN

KOTA SIIBOLGA

KOTA P SIDIMPUAN

NIAS ISLAND

KAB. MANDAILING NATAL

193.95

192.76

InMild Volume Contribution(mio stick)

SUM 1 PSD

99.39%

12.8%

5.5% 1.9%

14.7%

6.8% 1.6%

11.3%

1.8% 11.6%

15.1%

1.8% 1.9%

18.0%

2.7% 7.7%

15.5%

3.7% 3.9%

15.5%

1.3%

13.0%15.3

%1.1% 1.7

%

Source : RTA Nielsen NXP YTD SEPT’12 vs YTD SEPT’13 data DAI

Safety Net for AMLD

Seize Opportunity from TML DelistingClaiming smoker share from SoG

2. Seize the opportunity in affected District Focus through

fundamental activities.

a. Understanding competitive landscape and be focus on Selected District with huge

SoG competitor

District focus was determined by prioritizing district where AMLD has high SoM to serve as the safety net.

SoG are TMLD and InMild as we want to seize their market share.

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Cluster Contribution Target

50% in 2013 to be 70% in 2014

30% in 2013 to be 20% in 2014

20% in 2013 to be 10% in 2014

Distribution Strategy Shifted Customized WS Program

Remind WS to consistently offers UML for downline

and consumer

2. Seize the opportunity in affected District Focus through fundamental activities.

b. Optimize the opportunity of TML delisting to increase sales volume UML

On 2014, target contribution was shifted to Executive to enhance reach.Personal approached was done to persuade volume switch from TMLD to UMLD

12

KAB. PADANG LAWAS

KAB. PADANG LAWAS UTARA

KAB. TAPANULI TENGAH

KAB. TAPANULI SELATAN

KOTA SIIBOLGA

KOTA P SIDIMPUAN

NIAS ISLAND

KAB. MANDAILING NATAL

VB HB

Phase 1 30 50

Phase 2 30 25

VB HB

Phase 1 20 30

Phase 2 20 30

VB HB

Phase 1 20 30

Phase 2 20 30

Phase 3 50

VB HB

Phase 1 60 30

Phase 2 30 30

Phase 3 13


c. Enhance brand presence in district focus via scalable tactical OOH deployment.


Tactical OOH was highly deployed mainly in district focus to enhance awarenessIn Paluta, additional tactical banners installed in integration with community and trade program.

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Panel Mechanism Remarks

RRO Number or participants : 1,430 outlets (58% of RRO outlets)

WS Number of participants : 113(78% of WS registered)


d. Increase visibility and availability in trade channel through massive trade program

Massive trade program in 2014 was done continuously for the whole year to maintain visibilityTrade program in WS was focused on WS Executive to get more reach by utilizing their downlines

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Channel Remarks

Sales Coverage:- Additional outlets : 1,168 outlets

Merchandising Coverage:- Additional outlets : 2,628 outlets

- 2 additional stars- Additional outlets : 500 outlets

- 5 TF- Additional outlets : 4,700 outlets


e. Enhance merchandising and DL reach by coverage expansion implementation.

Sales coverage was expanded by changing the proportion of 1x1/1x2 call cycle, emphasizing more on 1x2 call cycle

Merchandising coverage expansion was done by converting 3 drivers into merchandisers.

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- Generate Trial from Scalable DST program particularly in district focus- Conduct personalized program through community program for relevant

community to invoke switch in from competitor smoker base

3. Generate trial and purchase through DST and community program intensification

Channel Remarks

DST- No. team : 9 team- CC Achievement : 39,854 - ECC Achievement : 20,217

Community - NO. CAM : 70 CAM- CC Achievement : 70,466- ECC Achievement : 50,489

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2013 2014

ACTIVITY SUMMARY

SUMMARY RESULTS

MASS / REACH

TARGETED / PREMIUM

PERSONALIZED / IMAGE

- HB : 545 - VB: 220

- HB : 463 - VB: 483

DST:- Team : 4- CC : 15,863

(131%)- ECC : 6,182 (109%)

DST :- Team : 9- CC : 39,854 (125%)- ECC : 20,217 (100%)

Community Program:- CAM : 70 - CC : 70,466 (140%)- ECC : 50,489 (134%)

Trade Program:- RRO : 1,095 (40%

coverage)- WS : 30 (20%

coverage)

Trade Program:- RRO : 1,430 (57%

coverage)- WS : 113 (78%

coverage)

- Sales coverage : 2,648- MR coverage : 3,273- Star : 3,000

- Sales coverage : 3,816 outlet

- MR coverage : 5,901 outlet

- Star : 3,500 outlet- TF : 4,700 outlet

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SEP1

3

OCT13

NOV13

DEC13

JAN14

FEB 1

4

MAR14

APR14

MAY14

JUNE1

4

JULY

14

AUG14

SEPT

14

OCT14

NOV1470

75

80

85

90

76

7978 78

79

8281 81

7982 82

8887

88 88

WDL

WDL WDL Trend line

SUMMARY RESULTS


SharePurchased

P1YPenetration

All program conducted as integrated and ongoing chain of effect started from 2013 to create sturdy brand positioning in the market. Continuity of relevant activity and consistency to execute in

district focus accentuate the brand image. As Awareness and trial increase favorably, DL also grew stronger to ensure availability.

YTD NOV'13 YTD NOV'14

3.55%

5.03%

SoM

2013 2014

104

162

IMS

Source : RTA Nielsen NXP YTD NOV’13 vs YTD NOV.14, ICT TRN ROL6 ASO PSD FY14, IMS data

FY ‘13

FY ‘14

14.6120%

17.532%

5.648%

2.770%

1.9

19.2147%

28.251%

14.538%

5.576%

4.2

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CONCLUSION

KEY LEARNING POINT:

• Implement integrated massive activities in all channel, particularly in fundamental aspects, while endorsing “BEAT Spirit” to always strive for excellent execution

NEXT IMPROVEMENT :

• Maintain core strategies while nurturing “BEAT Spirit” to establish never ending determination from all team

Padang Sidimpuan Key Success Story. 2 CONTENTS Situation Analysis BOWATTS and Key Strategy Strategy...

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