BCG-百威英博中国空白市场进入战略蓝图报告-201202

ABInBev–Volume-driveMarket&BlueprintFinalPresentationFebruary2012Today'sagendaWhitespacesegmentationandpriorityforentryWhitespaceRTMstrategyImplementationplanandresourceTrackingandreportingP&LprojectionPilotstudy"WhiteSpace"definedascounties/citieswithoutdirectsalescoverageandpremiummarketshare<5%As-is"Premium"marketshare<5%As-isfilteredbyW/ScoverageWithinthe"as-is"segment,NotierInortierIIW/ScoverageofthecountiesAs-isfilteredbysalescoverageWithinthe"as-is"segment,noM1salesrepcoverageofthecounties"WhiteSpace"definition#ofcounties/citiesTotalmarket3/coreabovesizeby2011(MnHL)1731(~75.8%)1148（～50.3%）1389（～60.8%）193/133(~45.4%)/(~42.7%)98/65(~23.0%)/(~20.9%)130/88(~30.6%)/(~28.2%)

1.%oftotalcoreabovemarketsize,312MnHL;2.684HL3.Includeallproductsegments,e.g.premium,core+,coreandvalueNote:DirectsalesincludingWS'ssalesforceiftheirsalariesarepaidbyABISource:ASISdatabasev7.1,BCGMACdatabaseTotalpieThetotalofthe6BUs2283(100%)425/312(100%)/(100%)ABIcurrentcoreabovevol(MnHL)10.9(~3.5%)1

0.02

(~0.0%)1.2(~0.4%)48.9(~15.7%)1

Totalmarket3/coreabovesizeby2011(BnRMB)47/37(~40.7%)/(~38.3%)24/18(~20.4%)/(~18.7%)

31/24(~27.1%)/(~24.9%)

116/96(100%)/(100%)Twotypesofwhitespaceidentified,oneishighpotentialpremiummarketandtheotheriscore/core+marketBackupFiveaspectsconsideredtosegmentthe"whitespace"marketFiveaspectstosegmentthe"whitespace"MarketpotentialSupplycapabilityProfitcontributionCompetitivelandscapeW/SpresenceIstheresufficientmarketpotential?KeyelementstoconsiderABCDEMarketpotentialmarkethassizablepremiumsegment,orlargepotentialforcoreandcore+segmentby2014ifthemarketsizeisbigenoughtosupportasalesrep(e.g.2county/M1)DoesABIhasthecapabilitytosupplyitsproducttothemarket?Brewerycoveragecapabilitybrewerycoveragedistancerangeaffordablecostrangeproductportfolio(BUDandHRB)Doesthemarketaccommodatehighprofitproductmix?Marketsize(HL)andmarketshare(%)byproductsegmentPremium&Coreplusvs.CoreTradinguppotentialDoesABIhasgoodpresenceinthemarketwherecompetitionislesssevere?ABIshare(%)byproductsegmentCompetitivenessofcompetitorscompetitors'brewerybrandstrengthHowisthecapabilityoftheWholesalersinthemarket?#W/SinthemarketW/SaveragesalesonABIproductW/Ssize(ifavailable)Step1:DividethewhitespacemarketsintotwocategoriesbymarketpotentialforCore/Core+segmentMarketpotentialLowpotentialmarket#:~221Highmarketpotentialcounty#:~1168MethodologyLowHighMarketPotential:2014Core/Core+marketvolsize(MnHL)Cut-offline:7,000HL/countyRationale:assume1,400HLcanjustifyaM1sales,onesalestocover2countiesandcanreachanaveragemarketshareof10%Total1168countiesidentifiedashighpotentialmarketDividethewhitespacemarketsintotwocategoriesHighpotentialmarkets1Step2:Segment1168highpotentialcountiesbyHRBsupplycapabilitySegmenthighpotentialmarketsbyHRBportfoliocoverageMethodologyandrationaleFurthercut-offbyHRBsupplycapability,givenHRBcoverscore+andcoresegment,morelikelythestartingpointintothe"whitespace"UnnecessarytouseBUDsupplyascutofflinePremiummarketsizerelativelysmallin"whitespace"BUDhasbroadsupplycoverage(max.1500Km)todeliveranywhereCut-offline:(Maximizedoptimalsupplycoverage1,distancefrombrewerytocounty)HRBBBT:200KmHRBCAN:800KmMethodology:benchmarklogisticcost&MACOofdifferentpackagevs.nationalaveragetodrawcut-offlinedistance1.Maximizedoptimaldistance–Withinsuchradiusofabrewery,profitabilityofallHRBproductsisequaltoorlargerthanthatofHRBIceBBT.Lowpotentialmarket#county:~221NoHRBsupplies(possibleBUDCAN)#county:~116Highpotentialmarkets(1168counties)SupplybothHRBBBTandCAN#county:~273SupplyHRBCANbutnoBBT#county:~779HighpotentialmarketswithHRBfulllinesupplytobeprioritizedinwhitespacemarketexpansionPriority2Step3:FurtherrankthehighpotentialcountiesbyprofitcontributionandcompetitivelandscapeRankhighpotentialcountiesthroughtwokeydimensionsDimensionsinProfitContribution:Marketsizebysegment,2011volumeSegmentgrowthbysegment,2011-2014volumeCAGRTrade-uppotential,2011-2014avg.consumptionpricegrowthandsegmentjump(e.g.valuetocore)bycountyDimensionsinCompetitiveLandscape:ABImarket2011volsharebysegmentCompetitorbrewerypresenceMethodologySetthelargestnumberineachdimensionasindex100,thencalculateandranktherelativeindexofothersEquallyweightthe5dimensionstogetascoretodefine/ranktheoverallattractivenessforeachmarkets34FurtherprioritizemarketsbasedonprofitcontributionandcompetitionLowpotentialmarketHighpotentialmarketwithbothHRBBBTandCANsupply(#county~273)HighpotentialmarketwithHRBCANsupplybutnoBBT(#county~779)HighpotentialmarketbutwithnoHRBsupply(#county~116)ProfitContributionCompetitiveLandscape34Furtherprioritizeby:Rankingexercisewon'timpactRTMdesign,butlocalsalescanrefertheresultwhenimplementInhighpotentialmarketwithHRBfulllinesupply,rankingonlyasreferenceforsalesInmarketswithHRBCANsupplyonly,toprank40%countiesprioritizedforexpansionsequenceHighpotentialwhite-spacecountyMktvolbysegment11-14CAGRbysegmentTradingupABImktpresenceCompetitorpresenceProfitcontributionindexCompetitivelandscapeindexDongying95.80.05.343.40.0Shuangyajiang18.10.011.694.911Fushun3.367.415.959.60.0Xiaogan25.70.07.767.7...Overallmarketattractiveness28.927.129.2................0.0...20.2Mianzhu34.00.015.370.728.829.8Sumuptotalindexpoints,rankoverallattractivenessofcountiesbytotalscoreJiyang11.645.913.79.10.016.0Fortradingup:basedonthechangeofavg.beerconsumptionprice2014vs.2011.Set0ifnopricejumpacrosssegment,otherwisesetthehighestpricegrowthasindex100,othersrankedrelativelyForcompetitorpresence,basedon#ofcompetitors'breweryandimpact.Indexcountywiththemostintensivecompetitors'brewerycoverageas0(representsthemostfiercecompetitionenvironment)Setthelargestnumberineachsegmentasindex100Drawweightedavg.indexforallsegmentsbyprofitability(MACO/HL).Premium~68%,Core+~21%,Core~11%Weightedbypremium,core+andcoreWeightedbypremium,core+andcoreBackup:RankoverallattractivenessofcountiesbyprofitcontributionandcompetitivelandscapeIllustrativeTop40%Bottom60%273whitespacecountiesidentifiedashighpotentialCore/Core+marketswithHRBsupply...LowHighHighpotentialattractivemarkets(1168counties)SupplybothHRBBBTandCANSupplyHRBCANbutnoBBTNoHRBsuppliesMarketpotentialFactsofthetotal"whitespace"market:#whitespacecounties:1389（~61%oftotalmarket）2011core+andcoremktvol.inwhitespacemarket:~85.6MnHL(~29%oftotalmarket)SupplycoveragebyHRB21SuggestedtoenterinYearICounty#:273(~20%)2011:27.0(~32%)2014:33.1(~32%)#:numbersofcounties2011:

core+andcoremarketvolume(MnHL)2014:2014core+andcoremarketvolume(MnHL)xx%:ShareofwhitespacemktPrioritizedfordeepdiveLowpotential(221counties)5LowmarketpotentialCounty#:221(~16%)2011:0.9(~1%)2014:0.6(~1%)RankedwithinTop40%1marketpotential(YearII)County#:352(~25%)2011:23.2(~27%)2014:28.4(~27%)LowprioritymarketsCounty#:116(~8%)2011:3.1(~4%)2014:3.9(~4%)Bottom60%marketpotential(YearIII)County#:427(~31%)2011:31.3(~37%)2014:38.3(~37%)341.Marketpotentialrankedacrosstype1-4marketsCore/Core+marketSimilarapproachappliedforpremiumsegment,252countiesidentifiedashighpotentialpremiummarketswithBUDsupplyMarketpotentialLowmarketpotentialCounty:~889(64%)2011Vol:0.37(18%)2014Vol:0.63(14%)SupplyBUDBBT/CANCounty:~252(18%)2011Vol:0.86(44%)2014Vol:1.68(39%)MethodologyLowHighMarketPotential:2014Premiummarketvolumesize(MnHL)Cut-offline:2200HL/countyRationale:assume440HLcanjustifyadedicatedM1salestocover2countiesandreachanaveragepremiummarketshareof10%Total500countiesidentifiedashighpotentialmarketSupplycut-offline:(Maximizedoptimalsupplycoverage1,distancefrombrewerytocounty)BUDCAN:1500KmBUDSBT:800KmBUDBBT:350KmMethodology:benchmarklogisticcost&MACOofdifferentpackagevs.nationalaveragetodrawcut-offlinedistanceDividethepremiumwhitespacemarketintothreecategoriesSupplyBUDCANCounty:~248(18%)2011Vol:0.75(38%)2014Vol:2.03(47%)AHighpotentialpremiummarketswithBUDsupplycanbeprioritizedinmarketexpansion1.Maximizedoptimaldistance–Withinsuchradiusofabrewery,profitabilityofallHRBproductsisequaltoorlargerthanthatofHRBIce.Highpotentialmarkets(500counties)ABPriorityBPremiummarketHence,~396countiesprioritizedconsideringbothPremiumandCore/Core+opportunity,segmentedinto3markettypes~396prioritizedwhitespacecountiesaresegmentedintothreetypesofmarketDefinitionPrioritymarketforPremiumonly:MarketwithgoodpotentialforPremiumsegmentandalsoBUDsupply.HoweveritisnotthetopprioritymarketforCore/Core+productsyet.Suitablefora"top-down"penetrationapproachPrioritymarketforfullproductsegments:PrioritymarketbasedonthecutbyPremiummarketvol.opportunityaswellastheCoreandabovepotential.ItisoffulllinesupplyhenceafullchannelentryRTMmodelisexecutablePrioritymarketforCoreandCore+only:MarketwithgoodpotentialforCore/Core+segmentalsoHRBBBT/CANsupply.However,thePremiummarketopportunityforthismarketisnotgoodenough.Suggestfora"bottom-up"approachPrioritymarketforPremium#County:1232014Premium:0.99Core/Core+:20.02011Premium:0.46Core/Core+:16.9IPrioritymarketforfullline#County:1292014

Premium:0.69Core/Core+:20.72011

Premium:0.42Core/Core+:17.1IIPrioritymarketforCore/Core+#County:1442014Premium:0.17Core/Core+:12.42011Premium:0.10Core/Core+:10.0IIIPriorityPremiummarketfrom"top-down"approach(~252counties)PriorityCore/Core+marketfrom"bottom-up"approach(~273counties)IIIIII~123prioritizedcountiesforPremium-onlymarket

Shandong,Hebei,Jiangsu,Guangdong,andGuangxiarethekeyprovincesInner

MongoliaXinjiangXizangQinghaiGansuYunnanGuizhouHainanShandongHebeiFujianGuangxiZhejiangJiangsuLiaoningJilinHeilongjiangShanxiHenanHubeiShaanxiHunanJiangxiGuangdongSichuanAnhuiTianjinShanghaiBeijingChongqingNingxia30-4510-291-9#Counties0BU#W-SCounties11/14Premium11/14Core-Core+CE230.09/0.273.7/4.3NO490.21/0.369.5/11.2W260.05/0.141.4/1.9NE00/00/0S250.11/0.212.2/2.7SE00/00/0Total1230.46/0.9814.6/20.1~144prioritizedcountiesforCore/Core+markets

Hebei,Henan,Hubei,Liaoning,andAnhuihavethemostconcentratedwhitespacecountiesInner

MongoliaXinjiangXizangQinghaiGansuYunnanGuizhouHainanShandongHebeiFujianGuangxiZhejiangJiangsuLiaoningJilinHeilongjiangShanxiHenanHubeiShaanxiHunanJiangxiGuangdongSichuanAnhuiTianjinShanghaiBeijingNingxiaChongqing30-4510-291-9#Counties0BU#W-SCounties11/14Premium11/14Core-Core+CE670.05/0.095.9/7.1NO460.03/0.052.5/3.4W70/0.010.1/0.2NE110/0.011.0/1.2S50/0.010/0.1SE80/00.3/0.4Total1440.08/0.179.5/12.0~129prioritizedcountiesforHybridmarket

ProvincesthataresuitablebothPremiumandCore/Core+entryInner

MongoliaXinjiangXizangQinghaiGansuYunnanGuizhouHainanShandongHebeiFujianGuangxiZhejiangJiangsuLiaoningJilinHeilongjiangShanxiHenanHubeiShaanxiHunanJiangxiGuangdongSichuanAnhuiTianjinShanghaiBeijingChongqing10-291-9#Counties0NingxiaBU#W-SCounties11/14Premium11/14Core-Core+CE650.22/0.3610.9/13.0NO150.04/0.072.0/2.8W210.06/0.111.4/1.8NE80.02/0.031.3/1.5S130.05/0.080.9/1.1SE70.03/0.040.5/0.6Total1290.42/0.6917.0/20.8BUCEBUNOBUWBUNEBUSBUSENoW-SidentifiedXinjiangXizangQinghaiGansu10/0.010/0Guizhou10/0.010/0.1HainanFujianShaanxiShanghaiNingxiaHeilongjiang40/00.4/0.4Yunnan60.01/0.060.2/0.2Sichuan260.05/0.121.8/2.2Shandong490.21/0.2810.4/12.3Guangdong220.09/0.141.5/1.8Guangxi140.06/0.101.4/1.7Hunan120.02/0.070.6/0.9I.Mongolia90/0.020.8/0.9Shanxi160.02/0.060.2/0.4Henan460.07/0.156.8/8.5Anhui450.05/0.095.3/6.6Jiangsu140.09/0.122.2/2.6Zhejiang80.03/0.040.6/0.7Jiangxi70/00.3/0.4Hubei380.13/0.295.7/5.9Jilin30/0.010.4/0.5Liaoning120.02/0.031.5/1.7Tianjin10/0.010/0.1Chongqing110.03/0.070.9/1.3Beijing20/0.010.3/0.4Hebei490.06/0.182.5/3.7Province#ofW-SCounties11/14Premiumvolume(MnHL)11/14Core/Core+volume(MnHL)Totalof~396prioritizedcountiesbyBUBU#W-SCounties11/14Premium11/14Core-Core+CE1550.36/0.7220.6/24.4NO1100.29/0.4914.1/17.4W540.11/0.263.0/3.8NE190.03/0.042.3/2.6S430.16/0.303.2/3.9SE150.03/0.040.9/1.0Total3960.98/1.8544.1/53.1KeyW-SprovincesGroupcountiesintoclustersbytheirPLCcentersineachprovinceClusterprioritizedcountiesbytheirPLCcenterineachprovince143clustersgroupedwithradiusfromPLCtocountyranges10~30Kmonavg.DifferenttypesofW-ScountieswithinthesameclusterrequiredifferentRTMmodelsMethodforclusteringRationaleClustering(usu.3-4counties)canrealisticallyreflecttherolesandresponsibilitycoverageofexistingM1/2/3andW1/2.AllowseasierinvestmentestimateandexecutionforABIGeographicdemarcationisconsistentwithdistributionrangebyT1/2wholesalersPricetreesvarylittlewithinsameclusterClusterillustration–SichuanW-SPLCClusterW-SCountyStep4:Groupadjacentcountiesinto143clusters

AmoreholisticviewtoevaluateinvestmentrequiredandfeasibilityofsalesexecutionJinzhou0.4Jianli0.2Honghu0.3Gongan0.2Shishou0.1BU:

CentralProvince:HubeiCluster:

Jinzhou2014Potential:1.34MnHL(CoreaboveW-S)Jiangling0.1ExampleSongziNotW-SCompanyABITSTCRBOtherCore/Core+PremiumHybridCountyPLC...Andfurtherprioritizeclustersbymarketpotentialor/andcompetitionrankingasreferenceforexpansionsequenceTop65clustersaccountfor~80%ofmarketpotentialforcoreandabovevolume,mainlyinBUNOandBUCE~28clusters1withhighmarketpotentialbutlesscompetitioninBUCE,BUW,andBUSmightbeidealinitialtargetsMarketpotential(MnHL)2.51.51.00.50.0Competition:easeofmarketentry(byrank)012345BUNOBUNEBUCEBUWBUSBUSE#ofCounties101Avg.#ofcompetitorbreweries2within200km:~25Thresholdfor50%potentialPrioritized28clusters(~109counties)forexpansion

Marketpotential:core&above(MnHL)2.51.51.00.50.0RankPercentile(%)100806040200Top20clusters(~110counties)

accountfor~50%oftotalmarketpotentialTop65clusters(~254counties)accountfor~80%oftotalmarketpotential1.Constitute29%of(396prioritizedwhitespacecounty)marketpotential.Namely,~16MnHLincoreandabovepotential.Totalmarketpotentialof143prioritizedclustersis~55MnHL2..Averagenumberofcompetitorbrewerieswithin200kmforthetop65clustersis~25.Theaveragenumberforall143clustersis~20competitorbreweries.Source:ABIinternaldata,BCGanalysisHigherpotentialyetlesscompetitiveclustersmoreprioritized,givenresourceandtimelineconstraintatthebeginningofexpansionYanshi(HenanLuoyang)Tengzhou(ShandongZaozhuang)Thresholdfor80%potentialBackup:competitors'brewerypresenceiscorrelatedwithcompetitorsshare,agoodindicationofcompetitionlevelCompetitorbrewerypresence(%percentile)100806040200CompetitorMarketShare1(%)1009080706050401.Top4playersandstronglocalbreweries2.TheR2ofcorrelationis0.6ClusterswithhighcompetitorpresencebutlowmarketshareareidealtargetsFragmentedmarketwithoutaclearwinneryetCurrentcompetitorstrategiesmaybelesseffectiveEasiermarketentryforABICompetitorpresenceisavalidestimationofcompetitionstrengthTwomeasurescorrelatewellforthetop50clustersbymarketpotentialOnlyinfluentialbreweries(top4andstronglocalbrands)wereconsideredCompetitorpresenceiscorrelatedwithcompetitormarketsharefortop50clustersInsights1234567891011121314151617181920BUProvince

(省)-EPLCParent

(地区)-E#CountiesMarketPotential1

CompetitorBreweries2(~#)TSTSnowYANJRank-byPotential1StrongLocal3BUNOBUNOBUNOBUCEBUCEBUWBUCEBUNOBUNOBUNOBUCEBUCEBUNOBUNOBUNOBUNOBUNOBUCEBUCEBUCEShandongShandongHebeiHenanHubeiChongqingHenanShandongShandongShandongHenanAnhuiShandongShandongShandongShandongHebeiAnhuiHubeiJiangsuHezeYantaiHandanShangqiuJingzhouChongqingZhoukouZaozhuangWeifangJiningPingdingshanHefeiDezhouJinanLiaochengDongyingShijiazhuangBengbuJingmenXuzhou/Suqian86147611524553635274432.2941.5351.4131.3581.3381.3141.2141.2081.1391.1131.0280.9480.9060.8890.8470.8330.8240.8130.8120.809412643421520353536342430384547283234123172%83%13%9%0%0%9%72%42%30%0%6%34%29%34%72%13%19%0%17%14%11%24%48%34%1%48%14%25%18%10%84%21%0%21%14%24%64%18%37%0%0%31%0%21%0%0%0%24%17%0%0%20%14%20%0%31%0%13%0%0%0%0%25%0%67%25%0%0%0%51%0%0%0%0%0%0%0%0%36%1.2014CoreandabovevolumeinMnHL2.Approximatenumberofcompetitorbrewerieswithin200kmradius3.Localplayerswith>20%marketshareSource:BCGdatabase,ABIinternaldataCompetitor

MarketShareRecommendtofocusonTop20clusterswithlargestpotential

ConcentratedinBUNOandBUCEOr,prioritized28clusterswithlargepotentialbutrelativelylesscompetitionfrombeginning12345678910111213141516171819202122232425262728BUProvince

(省)-EPLCParent

(地区)-E#CountiesMarketPotential1

CompetitorBreweries2(~#)TSTSnowYANJRank-byPotential1StrongLocal3BUCEBUWBUCEBUCEBUSBUCEBUCEBUNOBUCEBUCEBUCEBUCEBUWBUNEBUCEBUSBUWBUWBUCEBUSEBUCEBUWBUCEBUSBUCEBUNEBUSBUNOHubeiChongqingHenanHubeiGuangxiHubeiHenanInnerMongoliaAnhuiHubeiHubeiHubeiSichuanLiaoningHubeiGuangxiSichuanSichuanHubeiZhejiangHunanSichuanHubeiGuangxiHubeiLiaoningGuangdongHebeiJingzhouChongqingPingdingshanJingmenYulinHuanggangLuoyangChifengAnqingHuangshiSuizhouXiaoganYibinChaoyangYichangGuilinGuanganDeyangXiangfanLishuiHengyangDazhouEzhouWuzhouXianningDandongMaomingQinhuangdao611544743522464155445321241141.341.311.030.810.790.790.760.650.590.560.530.510.490.480.480.470.420.400.400.390.370.370.350.350.340.340.320.32152024128181782216201815169515169181211161318134250%0%0%0%7%6%0%0%4%6%6%6%7%2%3%7%7%0%6%0%34%0%25%7%3%0%14%13%34%1%10%18%0%34%10%5%74%48%34%34%68%76%52%0%68%65%34%19%0%67%58%0%52%42%0%24%21%0%0%13%74%39%0%63%0%0%39%39%6%0%0%74%6%8%39%68%33%19%0%74%0%0%10%31%0%67%51%0%0%0%51%0%0%0%0%0%0%0%0%0%0%0%0%0%21%0%0%0%0%41%38%0%1.2014CoreandabovevolumeinMnHL2.Approximatenumberofcompetitorbrewerieswithin200kmradius3.Localplayerswith>20%marketshareSource:BCGdatabase,ABIinternaldataCompetitor

MarketShareBackup:Thefulllistof35clustersprioritizedbasedonmarketpotential,competitionandABIpresence1234567891011121314151617181920212223242526272829303132333435BUProvince

(省)-EPLCParent

(地区)-E#CountiesMarketPotential1IndexCompetitorBreweries(Index)ABIpresence(MktShareIndex)ABIInfrastructure

(ExistingM1Index)Rank-byPotential1BUCEBUNOBUCEBUNOBUCEBUNOBUNOBUCEBUNOBUNOBUCEBUNOBUNOBUNOBUNOBUWBUCEBUCEBUNOBUNOBUCEBUCEBUCEBUWBUCEBUCEBUCEBUWBUCEBUWBUSBUSBUWBUSBUSHubeiShandongHubeiHebeiHenanShandongShandongHenanShandongShandongHenanShandongHebeiShandongShandongChongqingHenanHubeiShandongHebeiHubeiHubeiHubeiSichuanHubeiHubeiHubeiSichuanHubeiSichuanGuangxiGuangxiSichuanGuangxiGuangdongJingzhouJinanJingmenHandanShangqiuHezeLiaochengZhoukouDezhouWeifangLuoyangJiningShijiazhuangZaozhuangYantaiChongqingPingdingshanXiaoganDongyingQinhuangdaoXianningHuanggangYichangDeyangSuizhouHuangshiEzhouYibinXiangfanGuanganYulinWuzhouDazhouGuilinMaoming634147855644572611542447142216454225197

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5738992798969510086939048858088665663507164524914435843443815391132226437010050000001040010130025421452906220260213141003405955129958914219146621200922020230726691.2014CoreandabovevolumeinMnHLSource:BCGdatabase,ABIinternaldataAgendaWhitespacesegmentationandpriorityforentryWhitespaceRTMstrategyImplementationplanandresourceTrackingandreportingP&LprojectionPilotstudySimplifiedRTMmodelsdesignedforthreetypesofwhitespacemarketstoguidetheevolutionBlankStageMarketevolutionforpremiumcountiesMarketevolutionforcore/core+countiesBlankStageAuthorizedWS=YesPremiumMKTshare<10%10-25%>25%Core/Core+MKTshareAuthorizedWS=YesPremium1Premium2Premium3Reachmktsharetrigger=YesReachmktsharetrigger=YesCore/Core+1Core/Core+2Core/Core+3<10%10-25%>25%Reachmktsharetrigger=YesReachmktsharetrigger=YesIIIRTMmodelMarketevolutionforhybridcountiesIIIInHybridmodel,PremiumstageandCore/Core+stagecanevolveseparately;portfolioandchannelfocuswouldbecombinationofthetwostagesRTMmodeldesign:Premium-onlymarkets

Top-downpenetrationfromNLchannelandevolvesbyexpandingintoCRandTTchannelsBlankPhase<5%<10%None1T1orT2WST1mustbeexclusiveT2preferredtobeexclusiveNoneSharedW1Premium2IPortfolio&POCcoveragetarget(%)1T1orT2WST1mustbeexclusiveT2preferredtobeexclusiveSharedW11DedicatedM1Premium110-25%(30%)(50%)(30%)>25%WSmustbeT1Mustbeexclusive1DedicatedW13

1DedicatedM1Premium3WSPremiummarketshareLeveloftradeinvestmentABIsalesW1/M1KA1

NLTT2

C(100%)(80%)(50%)(30%)Cross-selling(beforesigningupauthorizedWS)1.MT,smallsupermarkets;2.TargetforlargeTTPOCs;3.W1mightbepromotedtoM2,FTEcanbeadjustedbasedonrealitycheckPOCcoverageProductportfolioPOCcoverageProductportfolioPOCcoverageProductportfolioRTMmodelAB(30%)(50%)(100%)WSsign-onNLbuy-outNLbuy-outABbuy-outNL/ABbuy-outCcapincentiveTTPOCdisplayandpromotion(50%)RTMmodeldesign:Core/Core+markets

Bottom-uppenetrationfromTT/CRDchannelsandevolvebyexpandingintoNLandpremiumCR<5%<10%10%-25%>25%LeveloftradeinvestmentIIWSNoneT1orT2WST1mustbeexclusiveT2preferredtobeexclusiveWSmustbeT1,canbemultiT1WS,bygeoorchannelQualifyT2forremotearea/ruralMultiT1WS,bygeoorchannelMultiT2WS,bygeoneedABISalesNoneSharedW1DedicatedW11DedicatedM1(fortopPOCs)DedicatedW12

2-3DedicatedM1(fortopPOCs)Portfolio&POCcoveragetarget(%)ABNLTT1

DC(60%)(50%)(80%)(50%)(100%)(100%)(80%)(50%)Core/+MarketshareCore/Core+3Core/Core+2Core/Core+1BlankPhaseCross-selling(beforesigningupauthorizedWS)POCcoverageProductportfolioPOCcoverageProductportfolioPOCcoverageProductportfolioRTMmodel1.LargeTTPOCsandKAlikePOCs;2.W1mightbepromotedtoM2,FTEcanbeadjustedbasedonrealitycheckWSsign-onTTPOCdisplayandpromotionCcapincentiveTT/DPOCdisplayandpromotionNL/ABbuy-outCcapincentiveTT/DPOCdisplayandpromotionRTMmodeldesign:Hybridmarkets

Penetratefromboth"top-down"NLand"bottom-up"TT/CRD,thenexpandintopremiumCRchannelWS<5%10%-25%<10%>25%Core/+MS1

NoneT1orT2WST1mustbeexclusiveT2preferredtobeexclusiveLeveloftradeinvestmentABISalesPremiumMS<5%10%-25%<10%>25%None1DedicatedW11DedicatedM1(fortopPOCs)1DedicatedW11DedicatedW13

2-3DedicatedM1(fortopPOCs)IIIABPortfolio&POCcoveragetarget(%)NLTT2

DC(50%)(80%)(80%)(50%)(30%)(50%)(100%)(100%)(80%)(50%)(80%)(30%)BlankPhaseCross-selling(beforesigningupauthorizedWS)1.UseCore/Core+marketshareasthetriggerfornextstage;2.LargeTTPOCsandKAlikePOCs;3.W1mightbepromotedtoM2,FTEcanbeadjus