Selective Coverage Plan

2

1 POS per 7,000hab.-9,000hab.

1 POS per 9,000hab.-11,000hab.

1 POS per 11,000hab.-15,000hab.

1 POS per 15,000hab.-19,000hab.

1 POS per 19,000hab.-25,000hab.

1 POS per 25,000hab.-+,000hab.

Tumbes

Madre de Dios

Loreto

Puno

Ucayali

Amazonas

Tacna

Cuzco

Pasco

Junín

Huacavelica

Arequipa

Moquegua

Ica

AyacuchoApurimac

Callao

Lima

Huanuco

San Martin

Ancash

Lambayeque

Piura

La Libertad

Cajamarca

•In Huancayo, there is 1 POS every 15-19000 people•In Arequipa, there is 1 POS every 9-11000 people

4

Population

•Urban 91%

•Rural 9%

•Urban > 18 years old 62%

Department objective 761,062 people

Zone objective 622,616 people

Economic data

•Average salary S/.939 (in Lima the AVG is of S/1,103). Arequipa is below by 15%

•Income pyramid: 48% received less than S/.700/month

4.1

6.8

16.5

21.0

14.8

8.7

20.5

5.6

2.0

- 5.00 10.00 15.00 20.00 25.00

-

100

300

500

700

900

1,500

3,000

6,000

Ing

reso

s M

ed

ios S

ole

s

% Población

5

Actual business (only Arequipa city, 11 districts Arequipa, Yanahuara, Cayma, Alto, Jacobo, Jose Luis Bustamante, Mariano Melgar, Miraflores,

Paucarpata, Socabaya, Yanahuara)

•Operated 33 AVG (S/.13,500)

•Non Operated 36 AVG (S/.1,700)

The zone has increased by 84% against 2008

The penetration is 1 POS/9000 people

The average price/coupon is of S/.4.60. 71% of the sales belong to Tinka.

It is important to analyze the return on the following POS:

Botica Garcia, CHN, Farmasalud, Bazar Rivera, Todo Celular, Valdivia, Farma Lourdes, Ccahuana, Calderon, El Milagro and Sophia (all of them are non operated)

69%77%

12%

7%

10%8%

5% 4%

4% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009

Tinka Ganadiario Ganagol Instantaneas Otros

6

Objective of the project

• To increase visibility in the zone

• To double the sales

• To capture impulse purchasing

• To achieve profit projection of the zone

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¿How to do it?

To increase visibility in the zoneTo increase visibility in the zone

100% application of POP standards

100% corners at NON operated POS (including accessories)

Attractiveness of new brands

Application of new type of booths:

Municipality kiosks

Own kiosks

Street vendors

Aisles at commercial centers

Kiosks at main mercados

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¿How to do it?

To double the salesTo double the sales

A minimum of 90 POS to be working in the zone in order to achieve 1 million sales/month in 6 months

In addition:

•Improve execution of actual POS, relocation if needed over and above the POP standards application.

•Implement all available remote served POS (54) and install more if needed.

9

¿How to do it?

To capture impulse purchasingTo capture impulse purchasing

To locate and relocate POS next to population conglomeration such as the followings:

Bus stop

Institutes

Universities

Market Stalls

10

¿How to do it?

To achieve profit projection of the zone

To analyze actual contribution of the zone and define the project objectives

While having the target:

Assure executions with adequate product mix, POS mix and POP allocation according to profitably needs

Commercial Centers: CC Panorámico CC Patio del Ekeko CC La Gran Vía CC Global Plaza

Newspaper kiosks: Plaza de Armas Calle Mercaderes Plaza Sto.Domingo Boulevards: Pasaje de la Catedral, Calle San Francisco

High traffic avenues: Av. Ejercito Av. VA Belaunde Av. Mariscal Castilla

Neighborhoods: Yanahuara Cayma Vallecito

Markets: Mercado del Altiplano Mercado del Avelino Siglo XX

Street vendors: Mercado del Avelino

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13

Population data

•Urban 68%

•Rural 32%

•Urban > 18 years old 42%

Department objective 502,114 people

Zone objective 266,543 people

Economic data

• Average salary S/. 868 (21% below Lima which is at S/.1103)

•Income pyramid: more than 60% of the population is below S/.700/month

5.6

5.4

15.3

17.8

17.5

10.4

23.1

3.9

0.8

- 5.00 10.00 15.00 20.00 25.00

-

100

300

500

700

900

1,500

3,000

6,000

Ing

reso

s M

ed

ios S

ole

s

% Población

14

Actual business (only Huancayo city, 2 districts Huancayo and El Tambo)

•Operated 9 AVG (S/.12,800/month)

•Non Operated 4 AVG (S/.1,600/month)

The zone has increased by 97% (comparing cumulative May figures)

The penetration is of 1 POS/every 19,000 people

It need to be analyzed the results of the following non operated POS:

Quinto Ibarra

Luis Felipe

66%75%

10%

6%12%

10%

10% 4%

2%5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009

Tinka Ganadiario Ganagol Instantaneas Otros

15

Objective of the project

• To increase visibility in the zone

• To triplicate the sales

• To capture impulse purchasing

• To achieve profit projection of the zone

16

¿How to do it?

To increase visibility in the zoneTo increase visibility in the zone

100% application of POP standards

100% corners at NON operated POS (including accessories)

Attractiveness of new lauchments

Application of new type of booths:

Municipality kiosks

Own kiosks

Aisles at commercial centers

Kiosks at Mercados

17

¿How to do it?

To triplicate the salesTo triplicate the sales

A minimum of 35 POS to be working in the zone in order to achieve S/.300,000 sales/month in 6 months

In addition:

Improve execution of actual POS, relocation if needed over and above the POP standards application.

Implement all available remote served POS (2) and install more if needed.

18

¿How to do it?

To capture impulse purchasingTo capture impulse purchasing

To locate and relocate POS next to population conglomeration such as the followings:

Bus stop

Institutes

Universities

Market Stalls

19

¿How to do it?

To achieve profit projection of the zone

To analyze actual contribution of the zone and define the project objectives

While having the target:

Assure executions with adequate product mix, POS mix and POP allocation according to profitably needs

Commercial Centers: Real Plaza Centro Constitución Astoria Plaza, Mega Plaza

Gas Stations Primax Huancavelica

Bus Stops: Parque Industrial Los Andes

Neighborhoods: to be confirmed Markets:

Mercado EL TAMBO Supermarkets:

PLAZA VEA CASA SUELDO FERIA 13

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