Tiered Pricing Modification 7/7/2008
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Transcript of Tiered Pricing Modification 7/7/2008
Tiered Pricing Modification
7/7/2008
1. CCE is committed to being your most valued suppler
2. We want to understand your business • Business Traffic, Economy impact• Your business plans• Overall Sales vs. Coke Volume
3. Business building opportunities• Optimal Beverage Program (OBP)• Business building opportunities
• Bottles to Go• Dasani at the Table• Cup set of vessel upgrades• Brand Expansion • Merchandising• Meal Bundles
• Portfolio Rewards Program rewards you for• Volume Building• Cup Standards• Incidence Building
4. Simplified fountain price structure
• Less tiers due to current economic conditions
• Lower break points provide best price at 6 units per delivery
Most Valued Supplier
BOTTLES BRANDS TM CUPS & VESSELS MERCHANDISINGLOBBY, TABLE, MENU
* Portfolio Rewards (PRP) CMA example assumes qualifying activation of all PRP elements with signed PRP agreement
Initiatives to Drive Positive Plan Performance
Syrup & Food Service PBUTiered Pricing Modification
● Rationale for change:The economy continues to slow - Q1 CREST Data reports:Overall restaurant traffic counts are declining.KO Beverage consumption is declining across all Eating and Drinking sub channels.
● Significant volume loss to broadliners:
Loss of DNGP. Loss of existing Bottle/Can volume in lost outlets.
● Minimize the Need for Price Exceptions
● Tier level for best price at 17 plus units:
Only 8.8% of customers are achieving the 17+ tier break.60.1% of customers are in three tiers (5-7/8-9/10-16): 68.3% of
the volume.Customers in the 6 - 16 tier breaks have realized a
disproportionate price increase (to the rate of $6-$10 a box).
Horizontal Growth
• Objective: BDM’s Gain more outlets• Description: Acquire new & competitve
business• Tools: Enhanced Tiered Pricing
New and Improved CMALOS tool Kit
Special Emphasis Programs
Bottle Your Profits
• Start Date: July 15th, 2008• Objective: Gain penetration of PBU in fountain
only Foodservice accounts• Description: Sell into CCE and CCNA Food
Service OutletsSell 20oz PET products
• Tools: Enhanced Tiered PricingNew and Improved CMANew BYP point of sale kitSpecial Emphasis Programs
Gold Peak Tea - BIB
• Objective: Introduce Gold Peak Tea BIB in targeted locations
• Goal: 2,100 Gold Peak Urn/2 valve towers• Implementation: LMP 500 gallon+ Food Service,
Amusement/Rec & At work Target List Training Support Via CCNA
• Sales Tools:MU BlitzesPricing of $38.00 per BIB + any CMA
Coke Zero BIB Availability
• Objective: Achieve Coke Zero BIB availability in 2,500 Outlets
• Implementation: Any LMP Account replacing water valve & Nestea Raspberry
• Sales Tools:ADM Focus Pricing falls into Tiered pricing structure + any CMA
Revised Tiered PricingFood Service Channels
•Bar/Tavern•Other Eat/Drink•QSR’s•Restaurant
Change On-Premise Fountain – 3 Tiers (1-4, 5-7, 8+)
Time Period: Annual 2008Revised: 6/16/2008 On PREMISE
Package\Brand CHI/WI Midwest
5 Gallon CSD eff 7/7 8+ cases $ 58.00 $ 58.00
5-7 cases $ 60.42 $ 60.42
1-4 cases $ 68.29 $ 68.29
2.5 Gallon Core eff 7/7 8+ cases $ 31.90 $ 31.90
5-7 cases $ 33.23 $ 33.23
1-4 cases $ 37.56 $ 37.56
2.5 Gallon Non Core eff 7/7 8+ cases $ 38.00 $ 38.00
5-7 cases $ 39.58 $ 39.58
1-4 cases $ 44.74 $ 44.74
2.5 Gallon Gold Peak $ 38.00 $ 38.00
Coca Cola Enterprises Bottling Companies - ON PREMISE PRICING
Midwest Business Unit
2.5 Core CSD Includes: All Colas, Sprite, Sprite Zero, Vault, Mello, MM CSD, Fanta CSD, P ibb Xtra, Barqs, and Fresca
2.5 P remium CSD Includes: P owerAde, MM Lemonade, HI C, Flavor Rage, Seagrams, Nestea, P epe Rico, and Master P our.
CSD
Non Carb.
Change FOODSERVICE only – 2 Tiers (1-9, 10+)
Time Period: T2 2008Revised: 6/16/2008 FOODSERVICE
MIDWEST
Can 12 oz/355 ml 6/12/24pk *All CSD Brands eff 7/7 10+ cases $8.151-9 cases $11.51
PET 2 Liter *All CSD Brands eff 7/7 10+ cases $9.801-9 cases $13.85
PET 20oz / 600 ml *All CSD Brands eff 7/7 10+ cases $21.251-9 cases $26.60
Package\Brand
Time Period: T2 2008Revised: 6/16/2008
CHI/WIS/KC/TC MIDWEST DAK
Dasani *PET 20oz/ 591ml (Incl Flavors) eff 7/7 10+ cases $13.25 $15.50 $19.501-9 cases $18.82 $21.90 $26.60
Powerade *PET 20oz/ 591ml (Loose and 8pk) eff 7/7 10+ cases $19.50 $19.50 $19.501-9 cases $26.60 $26.60 $26.60
Package\BrandFOODSERVICE
Competitive CMA
2008 Gold + Fountain 1 Program Parameters
GOLD PERFORMANCE ELEMENTS:1. All Pricing is Trade Letter tiered pricing and is subject to change.
2. CSD and NCB products purchased from the bottler will be primary bottle/can non-alcoholic beverages served. Min. 3 facings of Coca Cola Zero 20 oz. bottlesMin.1shelf of Dasani
3. Must maintain the greater of 65% of the Sparkling Beverage space or 6 dedicated Sparkling Beverage Shelves and cooler set to standard (Look of Success) in prime position. CCE Sparkling Beverages Must out space competitors by 2:1. CCE Products must represent 50% of total Still Beverage space. Dasani is a mandatory brand.
4. If fountain products are available; a) Fountain will be Coca-Cola Products only b) Must implement the Channel Standard Cup Set (16, 24, 32 oz/QSR, 24 oz. A/O Eating/Drinking).
5. Execute CCE product combo meals . 6. Display CCE Look Of Success POS .
GOLD PROGRAM CMA: (Available July 7 , 2008)
Package Description GOLD PROGRAM CMA
AMOUNT 20 oz Soft Drink $1.50
Fountain Package Description GOLD (FTN 1)
PROGRAM CMA
5 Gallon BIB $2.50
2.5 Gallon BIB $1.25
Coca-Cola Enterprises Inc. (the “Bottler”) and _____________________ [Customer Legal Name] (“Customer”) hereby enter into this agreement (the “Agreement”) to increase the marketing and sale of Bottler’s beverages at Customer’s current and after-acquired outlets located within the territory of Midwest Business Unit of Bottler (the “Outlets”).
2008 Platinum + Fountain Preferred 1 Program Parameters
Coca-Cola Enterprises Inc. ( the “Bottler”) and _____________________ [Customer Legal Name] (“Customer”) hereby enter into this agreement (the “Agreement”) to increase the marketing and sale of Bottler’s beverages at Customer’s current and after-acquired outlets located within the territory of Midwest Business Unit of Bottler (the “Outlets”).
PLATINUM PERFORMANCE ELEMENTS:1. All Pricing is Trade Letter tiered pricing and is subject to change.
2. Sparkling and Still beverage products purchased from CCE, will be the exclusive bottle/can & syrup non-alcoholic beverages served.
Min. 2 shelves of Dasani , 4 facings of Coca Cola Zero 20 oz. bottles
3. Must maintain a minimum of a 1,2 or 3-door Coca-Cola cooler depending on space limitations, set to CCE standard (Look of Success) in first or prime position.
4. If fountain products are available; a) Fountain will be Coca-Cola Products only b) Must implement the Channel Standard Cup Set (16, 24, 32 oz/QSR, 24 oz. A/O Eating/Drinking).
5. Execute CCE product combo meals daily.
6. Participate in CCE marketing programs each trimester.
7. Display Coca-Cola Look Of Success POS.
PLATINUM + FOUNTAIN PREFERRED 1 PROGRAM CMA: (Available July 7, 2008)
Bottle/Can Package Description PLATINUM PROGRAM
CMA AMOUNT 20 oz Soft Drink $3.00
Fountain Package Description PLATINUM (FTN 1)
PROGRAM CMA
5 Gallon BIB $5.00
2.5 Gallon BIB $2.50
1. Understand customers business• Business Traffic, Economy impact• Overall Sales vs. Coke Volume• Review pricing scenario• Equipment Service
2. Identify sales opportunity Optimal Beverage Program -OBP• Bottles to go• Cup set or vessel upgrades• Brand expansion (ie. Nestea Rasp)• Merchandise to standard• Create meal bundles (cokesolutions.com)
3. Opening Statement• Hello __________; due to the current economic conditions, we have recently simplified our fountain price
structure and want to communicate it to you. Also, I analyzed our beverage business and believe we have an
incremental $_________ in beverage opportunity. Can we take a few minutes to review these opportunities?
4. Review NEW tiered pricing program and incremental profit potential
5. Execute LOS; Look Of Success
LMP Fountain Insulation Plan Objective:Objective: 1. Insulate current at risk outlet base
– Explain new TL– Sell CMA
2. Resign 50% of outlets that stopped buying (target list)
Utilize the 7 Step Selling process
1. Confirm opportunities through outlet walk-around
2. Provide opening statement
3. Question and listen
4. Explore customer needs
5. Present solutions
6. Handle objections
7. Close and conclude
* Internal use only
Tiered Pricing Modification - Next Steps
• BU Pull a Customer target list of all TL On-Premise Customers for Fountain ex. Wholesale Channel (By June 23)
• BU Pull a Customer target list of all TL Food Service Customers (By June 23)
• BU Communicate via. Letter to the customers affected by the change ( By June 30)
• Communicate to Sales Team to ensure solid communication across all affected outlets