2014 Sample Strama Defense 2

PHILIPPINE BEVERAGE PARTNERS INC.
100% Owned Company of The Coca-Cola Company as part of the

Coca-Cola Beverage Group which includes Coca-Cola Bottlers
Philippines Inc. and Cosmos Bottling Corporation
Manufacturer, marketer and distributor of Still Beverages

Owner of several top brands in categories such as Water, Sports Drinks,
RTD Orange Juice, Powdered Juices and Powdered Teas
Currently partnered with consumer giant Nestle under Beverage

Partners Worldwide (BPW) to manufacture and distribute its Ready-To-
Drink Tea Products under the Nestea Brand
We aspire to be the most respected, preferred, and trusted global company by:
REFRESHING THE BEING A TRULY LEADING WITH

WORLD GLOBAL COMPANY. HUMBLE CONFIDENCE.
EVERY DAY, ALL DAY. We are local and we are We are resolved to make a
We are invited into our global, which makes us truly difference in the world. To
customers daily lives and global and allows us to create value and make a
are trusted to refresh their build unique relationships difference everywhere we
bodies, minds, and spirits between people. engage
Customers Products Markets Concern for Survival, Growth and Profitability
PROFIT Maximizing return to shareowners while being mindful of our overall responsibilities.
PEOPLE Being a great place to work where people are inspired to be the best they can be
Bringing to the world a portfolio of beverage brands that anticipate and satisfy people's
PORTFOLIO
desires and needs
Nurturing a winning network of partners while capitalizing on technologies to build
PARTNERS
capabilities for the future and maintain leadership in all beverage categories
PLANET Being a responsible global citizen that makes a difference

Self-Concept

Technology Philosophy
PORTFOLIO
desires and needs
PARTNERS


Concern For Employees Concern for Nation Building Concern for Public Image
PORTFOLIO
desires and needs
PARTNERS

TARGET MARKET SEGMENTATION
Focus on 0-14 population
4.30%
34.60% 0-14 years

15-64 years:
65 years and over:
61.10%
STRATEGIC POSITIONING
High Nutrition
Kraft
Philbev
Lightly Flavored Strong Fruit
Company Market Share
Philbev (Eight OClock) 39%
Low Nutrition Kraft (Tang) 51%

PORTERS FIVE FORCES OF COMPETITIVE ANALYSIS
Substitute Products
High
RTD Juice Multipacks, Fresh

Juice, Water and other NAB
Supplier Bargaining Power Competitor Rivalry Consumer Bargaining Power

Low High High
Packaging & dry ingredients are Highly competitive industry Easy to switch brands
common In industry with many players
Entry of New Competitors

High
Easy entry
COMPETITOR PROFILE MATRIX (CPM)
Critical Success Factors Wt Score Ave Score Ave
Distribution Capability 0.25 3 0.8 4 1.0
Price Competitiveness 0.20 4 0.8

If you are4 available,
0.8
affordable and
acceptable then its
Quality Product 0.20 4 0.8 4 0.8
a good chance you
(AOT and Freshness) will succeed
Advertising 0.15 3 0.5 4 0.6
Brand Added Value 0.10 3 0.3 4 0.4
Product Range 0.05 4 0.2 3 0.2
Market Share 0.05 4 0.2 4 0.2
Total 1.00 3.5 4.0
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
Price Competitiveness 0.20 4 0.8 4 0.8

(AOT and Freshness) EOC has 37% availability vs Tangs
48%
Advertising 0.15 3 0.5 4 0.6
Market Share 0.05 4 0.2 4 0.2
Total 1.00 3.5 4.0
Quality Product 0.20 4

Parity pricing 0.8 4 brands
for the two 0.8
(AOT and Freshness)
Advertising 0.15 3 0.5 4 0.6
Market Share 0.05 4 0.2 4 0.2
Total 1.00 3.5 4.0

(AOT and Freshness)
Consumer Test results consistently
Advertising 0.15 3 0.5 4 0.6
conclude parity acceptability and
Brand Superiority 0.10preference
3 for the two4products
0.3 0.4
Market Share 0.05 4 0.2 4 0.2
Total 1.00 3.5 4.0

Kraft is outspending Philbev 1.5:1
Quality Product 0.20 4 in advertising
0.8 4 0.8
(AOT and Freshness)
Advertising 0.15 3 0.5 4 0.6
Market Share 0.05 4 0.2 4 0.2
Total 1.00 3.5 4.0
Quality Product 0.20 4

Lower Brand 0.8 for EOC.
Recall 4 0.8
Tang
offers more fortification
(AOT and Freshness)
Advertising 0.15 3 0.5 4 0.6
Market Share 0.05 4 0.2 4 0.2
Total 1.00 3.5 4.0

Unique to Tang is Grape and
(AOT and Freshness) Guyabano. Unique to EOC is
Advertising 0.15 Calamansi,
3 Dalandan
0.5 4 and 0.6
Lemonade
Market Share 0.05 4 0.2 4 0.2
Total 1.00 3.5 4.0

(AOT and Freshness) EOC Market Share is 39.3% vs
Tangs 50.9%
Advertising 0.15 3 0.5 4 0.6
Market Share 0.05 4 0.2 4 0.2
Total 1.00 3.5 4.0
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers that
translates to lower cost
0.05 3 0.15
6-E Stabilizing currency
0.05 4 0.20
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs
0.10 2 0.20
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
3-C Consumption shift of powdered juice users to competitive functional beverages with
value-added propositions
0.05 2 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
Weighted
Score
0.20 2 0.40
0.20 3 0.60
0.10 3 0.30
4-SC Philippine population growth rate
17%is expected
Not tryingtotocontinue to increase
50% lose 0.05 3 0.15
weight
5-T New 5%
Technology allows greater efficiency for package material suppliers that
Very
0.05 3 0.15
overweight
6-E Stabilizing
13% currency
Somewhat
0.05 4 0.20
overweight Wide positively acceptance as
EXTERNAL THREATS 83% Trying to lose Nutritious Refreshment for the family:
1-C weight
Decreasing sales growth of refill packs
A little
Vitamins are well 0.10 2 with 0.20
associated
32%
overweight
2-SC Decreasing trend of in-home consumption fruits and fruit juices
0.05 3
Vitamin and mineral content is
0.15
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions
standard 0.05 2 0.10
Vitamin C is the most immediate
of associations 0.05 3 0.15
Source: ACNielsen Regional
Consumer Confidence Survey- First Most products contain multiple
5-E Decreasing
Semester 2004CPI for food, share of wallet is shifting to telecommunicationas
0.05 perception
vitamins and minerals: 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitabilityof
of completeness
industry or robustness
0.05 3 0.15
Weighted
Score
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households
0.20 3 0.60
0.10 3 0.30
0.05 3 0.15
0.05 3 0.15
BEVERAGE PhP/ 200mL
Pwd Juice 2.00
0.05 4 0.20
EXTERNAL THREATS
Juice DOY 6.00
1-C Juiceof
Decreasing sales growth Bottle
refill packs 10.00
0.10 2 0.20
CSD 6.00
0.05 3 0.15
0.05 2 0.10
0.05 3 0.15
0.05 3 0.15
0.05 3 0.15
Weighted
Score
0.20 2 0.40
0.20 3 0.60
0.10 3 0.30
0.05 3 0.15
0.05 3 0.15
0.05 4 0.20
EXTERNAL THREATS
0.10 2 0.20
0.05 3 0.15
with value-added propositions 2006 Growth in PCS
TOTAL 0.05 2
2006 TOTAL 0.10
Sales EOC Tang POWDERED POWDERED JUICE
JUICE UCS Offtake
and imported such as Zuko Total Brand/ Cat +9% +1% +5% 0.05 3-1% 0.15
Litro Packs +19% +6% +12% +12%
Refills -12% -18% -16%
0.05 3-16% 0.15
0.05 3 0.15
Weighted
Score
0.20 2 0.40
0.20 3 0.60
0.10 3 0.30
0.05 3 0.15
Projected
100,000,000 0.05 3 10 0.15
76.5 Million in 90,000,000 9
May 2000 to 0.05 4 0.20
80,000,000 8
141.7 Million in
EXTERNAL2040
THREATS 70,000,000 7
60,000,000 0.10 2 6 0.20
2-SC Decreasing trend ofmeans 50,000,000
in-home consumption 5
Which 0.05 3 0.15
that 65 Million 40,000,000 4
people will be
with value-added propositions 30,000,000
0.05 2 3
0.10
added to the
countrys
20,000,000
0.05 3 2
0.15
population 10,000,000 1
5-E Decreasing CPI year
for food, share of wallet is shifting to telecommunicationas
every from 0 0.05 3 0 0.15
year 2000 toP=Political, T=Technological,
E=Economic, SC=Socio-cultural, 1995C=Competitive
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
2040 Source: Results from 2000 Population Census - NSO
0.05 3 0.15
TOTAL 2.70
Weighted
Score
0.20 2 0.40
0.20 3 0.60
0.10 3 0.30
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers
that translates to lower cost
0.05 3 0.15
0.05 4 0.20
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs New filler lines and case packing was
introduced last year that allowed plants to
0.10 2 0.20
2-SC Decreasing trend of in-home consumptionincrease their output 0.05 3 0.15
Improvement in alternative pouch
material allowed for cost-savings 0.05 2 0.10
0.05 3 0.15
0.05 3 0.15
0.05 3 0.15
Weighted
Score
0.20 2 0.40
0.20 3 0.60
0.10 3 0.30
0.05 3 0.15
0.05 3 0.15
0.05 4 0.20
EXTERNAL THREATS
0.10 2 0.20
0.05 3 0.15
0.05 2 0.10
0.05 3 0.15
0.05 3 0.15
0.05 3 0.15
Weighted
Key External Factors % FOOD EXPENDITUREWeight Rating
Score
TO TOTAL FAMILY EXPENDITURE
1- SC
60
Increasing trend in health and wellness with purposeful nutrition
50 3.8 0.20 2 0.40
2-SC
4.2
Absolute affordability still the main concern of40majority of households4.7
today 5
0.20
5.3 3 0.60
3-C Increase consumption of Tipid Litro Packs 30
0.10 3 0.30
20 44.7 43.5 39.5 38.7 37.3
10 0.05 3 0.15
5-T 0
New Technology allows greater efficiency for package material suppliers that
0.05 3 0.15
translates to lower cost 1991 1994 1997 2000 2003
6-E Stabilizing currency Consumed At Home Consumed Out Of Home
0.05 4 0.20
Source: Family Income and Expenditure Survey, NSO
EXTERNAL THREATS
0.10 2 0.20
0.05 3 0.15
0.05 2 0.10
0.05 3 0.15
0.05 3 0.15
0.05 3 0.15
Weighted
Score
PPT CHG
% Beverage Units Consumed by Powdered Juice Users vs YA
2 2 Fresh Juice(Fruit/Veg)
1- SC Increasing trend in health and wellness34 with purposeful nutrition 5
4
0.20
RTD Tea
2 -0.4
0.40
4.9 +1
6.0
0.20
RTD Juice 3 - 0.60
22 15
3-C Increase consumption of Tipid Litro Packs 3-in-1 Coffee
0.10 3 +2
0.30
Milk Powder
+0.2
23
21
0.05
Choco (Powdered) 3
+1
0.15
0.05
Powder Juice
3 -7 0.15
27 Carbonated Softdrinks
23 -2
0.05 4
Instant Powder Coffee
+4
0.20
EXTERNAL THREATS 2005 2006

0.10 2 0.20
0.05 3 0.15
3-C Consumption shift of powdered juice users to competitive functional
beverages with value-added propositions
0.05 2 0.10
0.05 3 0.15
0.05 3 0.15
0.05 3 0.15
Weighted
Score
0.20 2 0.40
0.20 3 0.60
0.10 3 0.30
0.05 3 0.15
0.05 3 0.15
0.05 4 0.20
EXTERNAL THREATS
0.10 2 0.20
0.05 3 0.15
0.05 2 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia
powders and imported such as Zuko
0.05 3 0.15
0.05 3 0.15
0.05 3 0.15
Weighted
Score
Miscellaneous 0.20 2 0.40
2-SC 14% today
Absolute affordability still the main concern of majority of households
Transport & 0.20 3 0.60
Communications
6% 0.10 3 0.30
Household 0.05 3 0.15
Food and
5-T 13% material suppliers that
New Technology allows greater efficiency for package
0.05
Beverages3 0.15
Fuel, Light,
Water
54%
5% 0.05 4 0.20
Clothing &
EXTERNAL THREATS Footwear
Tobacco
1-C Decreasing sales growth of refill packs 4% Beverage
0.10 2 0.20
2% 2%
0.05 3 0.15
Source : National Statistics Office (NSO), 2000
0.05 2 0.10
0.05 3 0.15
0.05 3 0.15
0.05 3 0.15
Weighted
Score
0.20 2 0.40
0.20 3 0.60
0.10 3 0.30
4-SC Philippine population growth rate
is In
expected
earlyto2004,
continueExecutive
to increase
0.05was 3
Order No. 295 0.15
5-T New Technology allows greaterpassed which
efficiency for raises
package materialthe tariffthat
suppliers rate on pre-mixed
0.05 3 0.15
translates to lower cost sugar, which is used mainly for powdered juices,
6-E Stabilizing currency from zero to 65%, 0.05 4 0.20
EXTERNAL THREATS Pending bill in Congress which seeks to
Decreasing sales growth of refillprohibit the use of aspartame, a sweetener
1-C packs
0.10 used2 0.20
in powdered juices. If approved, players say such
a scenario may lead cost to increase by 0.05
30% to 3 0.15
3-C Consumption shift of powdered40% as they
juice users will have
to competitive to shift
functional to refined
beverages sugar 2
with value-added propositions which costs more than the artificial sweetener.
0.05 0.10
0.05 3 0.15
0.05 3 0.15
6-P Legislations on tariff rates, aspartame use threaten industry profitability
0.05 3 0.15
Weighted
Score
0.20 2 0.40
0.20 3 0.60
0.10 3 0.30
0.05 3 0.15
0.05 3 0.15
0.05 4 0.20
EXTERNAL THREATS
0.10 2 0.20
0.05 3 0.15
Philbevs slightly better than average score in the
EFE shows that the company is still slow 0.05 2
in reacting 0.10
or capitalizing to external opportunities and threats
and imported such as Zuko which is a significant contributor to its decreasing
0.05 3 0.15
5-E
market share
Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
0.05 3 0.15
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional product
development
0.05 3 0.15
5- M Revitalized consumer hotline number with increased capability and total
service mindset
0.05 3 0.15
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
4- R Philippines
Strong R&D resource asfrom
with strong support development center
Asia group in regional for APAC
product
0.05 3 0.15
development India and Brazil as sources of good market
5- M practices
Revitalized consumer for powder
hotline number market
with increased capability and total
0.05 3 0.15
service mindset Marketing Exchange and Global Teams in Brand
Teams and Commercial Execution
INTERNAL WEAKNESS
0.20 2 0.40
0.10 1 0.10
Group
0.05 1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-
out
0.10 4 0.40
0.10 4 0.40
development
0.05 3 0.15
5- M Organizational
Revitalized consumer alignment
hotline number with increased up and
capability to top
management
total
0.05 3 0.15
service mindset
Joint Plan presented and approved by Coca-Cola
INTERNAL WEAKNESS Atlanta Corporate Head Office
1-F Low profit margins Approved
and 3-year plan by both parties agreed and
cash realization
approved up to Corporate 0.20 2 0.40
0.10 1 0.10
Group
0.05 1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong expertise
in Brand building
0.20 4 0.80
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global
Procurement
0.10 4 0.40
development
0.05 3 0.15
5- M Revitalized consumer hotline number with increased capability and total service
mindset
0.05 3 0.15
Global sourcing and pricing for strategic materials
INTERNAL WEAKNESS
such as sugar, CO2, frozen juice and packaging
Bulk requirements (aggregated) for region 0.20 2 0.40
2-F CP
High Inventory coupled with system regionalized
low turnover forhas
and slow collection operating
weakened effectiveness
0.10 1 0.10
Negotiations done by CEPG through SRM
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc. 0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional
product development
0.05 3 0.15
service mindset
0.05 3 0.15
Regional R&D Centers available in Shanghai, Tokyo,
INTERNAL WEAKNESS
India, Brussels and Atlanta
1-F Low profit margins
andGlobal
cash realization of formulations and new 0.20
product 2
databases 0.40
2-F launches
High Inventory coupled with low available
turnover and slow collection has weakened
Common Innovation Framework operationalized
0.10 1 0.10
3-M through
Distribution capability Stage
hampered due to Gate Process
the separation andKey
with SMC Innova
Accounts
0.05 1 0.05
Group
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
development
0.05 3 0.15
service mindset
0.05 3 0.15
INTERNAL WEAKNESS
0.20 2 0.40
2-F
Newly created Coke service arm has opened its
High Inventory coupled with low turnover and slow collection has weakened
own call center to service complaints, promotions,
0.10 1 0.10
3-M and
Distribution capability requests
hampered from
due to consumers
the separation with SMC Key Accounts
Group Boasts of 40 strong service agent, 24-hr
0.05
service, a
1 0.05
4-HR/C toll-free
High turnover of talent number
lost to other and high
multinationals tech
like J&J, telecom
P&G, etc. facilities
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
development Profit Margin for powders is currently at
0.05
2%
3 0.15
5- M Cash
Revitalized consumer realization
hotline number is at a
with increased low 0.83
capability and total
service mindset Revenues declined at -1.00%
0.05 3 0.15
INTERNAL WEAKNESS
0.20 2 0.40
0.10 1 0.10
Group
0.05 1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
Inventories steadily increasing reaching a high of
4- R Strong R&D resource with strong support from Asiafrom
group in regional product
development
P1.2M, a 15% increase LY 0.05 3 0.15
Days inventory increased to 117 days (from a low
service mindset
of 46 days in 2002) 0.05 3 0.15
Inventory Turnover is 3.12 (vs 46 in 2002)
INTERNAL WEAKNESS AR Turnover is 1.93 (vs 5.85 in 2002)
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has
weakened companys asset quality
0.10 1 0.10
Group
0.05 1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
4- R Coke
Strong R&D resource KAG
with strong group
support stillgroup
from Asia organizing
in regional product
0.05 3 0.15
development Sales force still re-organizing
5- M Rationalizing
Revitalized consumer hotline number withof Distributors
increased andtotal
capability and Wholesalers
0.05 3 0.15
service mindset
INTERNAL WEAKNESS
0.20 2 0.40
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key
Accounts Group
0.05 1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
4- R Turnover
Strong R&D resource rate from
with strong support of 2.3
Asiaper month
group vsproduct
in regional 1.4 LY
0.05 3 0.15
development Low morale based on Employee Survey
5- M Decline
Revitalized consumer hotline numberin rating
with forcapability
increased Leadershipand totalTrust
0.05 3 0.15
service mindset Decline in rating for Career Development
INTERNAL WEAKNESSDecline in rating for Compensation & Benefits
0.20 2 0.40
0.10 1 0.10
Group
0.05 1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
Currently the plant is operating at 96% Capacity 0.10 4 0.40
4- R Projection
Strong R&D resource shows
with strong support plant
from Asia will
group be 180%
in regional overcapacity
product
0.05 3 0.15
development in one year
service mindset
0.05 3 0.15
INTERNAL WEAKNESS
0.20 2 0.40
0.10 1 0.10
Group
0.05 1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
4- R No
Strong R&D resource with alternative supplier
strong support from forincarton
Asia group regional product
0.05 3 0.15
development No alternative supplier for pouches
5- M Unique
Revitalized consumer ingredients
hotline number forcapability
with increased all formulations
and total
0.05 3 0.15
service mindset
INTERNAL WEAKNESS
0.20 2 0.40
0.10 1 0.10
Group
0.05 1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
Weighted
Score
INTERNAL STRENGTH
0.20 4 0.80
0.10 4 0.40
0.10 4 0.40
development
0.05 3 0.15
service mindset
0.05 3 0.15
INTERNAL WEAKNESS
0.20 2 0.40
Philbevs slightly better than average
0.10
score 1 0.10
3-O
indicates that the Company still has a lot of
Distribution capability hampered due to the separation with SMC Key Accounts
Group weaknesses to address to better support their 0.05plans.1 0.05
0.05 2 0.10
0.05 2 0.10
0.05 2 0.10
QSPM
TALLY TABLE
STRATEGY OPTIONS TOWS SPACE BCG GE IEM GSM TOTAL
INTEGRATION STRATEGIES
1 Forward Integration 1 1 2
2 Backward Integration 1 1 2
3 Horizontal Integration 1 1 2
INTENSIVE STRATEGIES
4 Market Penetration 1 1 1 1 1 1 6
5 Market Development 1 1 1 1 1 5
6 Product Development 1 1 1 1 1 1 6
DIVERSIFICATION STRATEGIES
7 Related Diversification 1 1 2
8 Unrelated Diversification 1 Strategic Alternatives 1
QS PM Wt. Market Penetration Market Development Product Development
Critical Success Factors AS TAS AS TAS AS TAS
Sum Total 1 6.15 5.25 4.80
Attractiveness Score
Market Penetration Seeking increased market share for present products in present market through
greater marketing efforts
Market Development Introducing present products or services into new geographic area
Product Development Seeking increased sales by improving products or developing new ones
Key Strategy for Philbev
Why Market Penetration?

Company needs to capitalize on rebuilding efforts of its
sales force and distribution capability due to the recent
buy-out of San Miguel
Strengthen market share of EOC & Ponkana which are
being diluted by the new small players such as Oishi
Sundays and Magnolia
Need to increase Brand support in order to regain #1
spot from archrival Tang who is outspending them 1.5:1
in advertising and promotions
Very low availability figures for North GMA, South GMA
and South Luzon areas offer huge opportunity for growth
if penetration rates are increased to parity levels with
other areas
Strategic Objective: 69MM UCS by 2009
System is committed to turnaround the powdered juice business through
investments in:
Capacity: Purchase of a new filling machine
Innovation: Philippines is marked as DC for powders
Distribution: Separate KAG and MEP to push powdered products
Marketing: DME allocation to powder increased
YTD figures of 2007 already show positive volume growth for both EOC
and Ponkana even with distribution and marketing programs still not being
in place
Three A Strategy
AVAILABILITY AFFORDABILITY ACCEPTABILITY
Increase penetration rate Maintain dealer margins at Launch new campaign to
to 60% for all flavor 11% through distribution and highlight products nutrition
variants OPEX optimization programs proposition
No stock-out policy Push cheaper aspartame Package redesign to create
(current est. 35%) packs to achieve 16% volume market excitement
200 outlets/MEP; 4,500 growth for the new SKUs Double the number of
Account Developers, Decrease cost through an 8% merchandised outlets based on
1,500 mini-bodegas, 200- increase in efficiencies via picture of success by end-2007
strong Key Accounts filling line upgrade Launch new seasonal flavors in
Group and operational 24- 2009
hour Call Center
Departmental KRAs: Marketing and Sales
Activity By When Output By Whom

Coke Accounts Turnover October 42% availability in Marketing
2007
supermarkets, Director
Fully operationalize Call October accounting for 3%
2007
Center. Update all incremental volume Commerci
packaging and POS mats Increase penetration alization
to reflect new number in NGMA, SGMA and Director
Launch new distribution December SL to at least 40%
2007
system with MEPs and incremental volume
BPPC Program MEPs
of 1.5M UCS from
Launch new EOC IMC March EOCs IMC
Program 2008
incremental volume KAG
Launch new SKU formats June 2008 of 900,000 UCS from
for aspartame packs new SKUs Regional
March Incremental volume Directors
Launch seasonal flavors
(at least three) to sustain 2009 of 1.5M ucs for
momentum seasonal flavors
Departmental KRAs: Supply Chain Management

Reorganize and September Increase forecast Supply
2007
centralize reporting accuracy to +/- 5% Chain
structure by region to Director
reflect true volume
projections
Increase capacity by
Increase capacity through November
2007 24MM UCS to
the purchase of new filling anticipate increase in
machine demand
Implement a modified JIT December

system wherein incoming 2007 Reduce stock-outs
stocks are reduced to two RM and FG to zero
weeks and shifted to by year end
suppliers
Departmental KRAs: Finance and Procurement

Implement stricter OPEX September OPEX savings of Finance
2007
controls per department $0.25M USD Director
Implement Supplier October
2007
Relationship Procurement Strategic
Management in the savings of $2.6M Procureme
system USD from alternative nt Director
Widen supplier base and November sourcing of materials
2007
set-up performance
measures for evaluation Reduce stock-out of
purposes and to create raw materials to zero
alternative sourcing to prevent production
Identify common and November stoppage
2007
generic material 100% on-time
requirements for cost- delivery of suppliers
savings through bulk or on all requirements of
regional purchasing production
Departmental KRAs: IT and Human Resources

Fully supply personnel September Fully manned and HR
2007
requirement of KAG and operational Sales Director
Sales with appropriate Force and KAG Team
channel development and IT
management training Increased efficiency Manager
Fully integrate systems of April 2008 of system through
bottler and division for reduced process time
quick data exchange and and less resource
real time updating of need to manage
information (e.g. SAP,
Innova, BASIS, etc)
P3.7M systems
savings due to
systems integration
Philbevs Balanced Scorecard
Goals Measures Current Targets
Customer Service
Increase Brand Value Brand Awareness 31 points 55 points
Brand Recall 21 points 35 points
Customer Satisfaction Consumer Acceptability 82% 95%
Consumer Preference 37% 51%
% Complaints 7% 3%
Customer Retention Increase Repeat Consumption 62% 80%
Financial Performance
Revenue Growth Total Revenue -22% AGR 12% AGR
Market Share Increased Market Share 39% 55%
Profitability Profit Margin 2% 15%
Internal Business
Improved Cost Controls Cost Per Department 26.2% OB 0%
Overhead Costs Hit Target Hit Target
Distribution Costs Hit Target Hit Target
Effective Marketing Campaign Incremental Volume - 3%
Innovation and Learning
Employee satisfaction and motivation Employee Survey Low High
Talent Retention Employee Turnover Medium Low
Performance & competency evaluation Performance Rating 82% 85%
Training based on
Competency Analysis 100% Hit 100% Hit

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PHILIPPINE BEVERAGE PARTNERS INC.

100% Owned Company of The Coca-Cola Company as part of the

Manufacturer, marketer and distributor of Still Beverages

Currently partnered with consumer giant Nestle under Beverage

REFRESHING THE BEING A TRULY LEADING WITH

Customers Products Markets Concern for Survival, Growth and Profitability

PLANET Being a responsible global citizen that makes a difference

REFRESHING THE BEING A TRULY LEADING WITH

PLANET Being a responsible global citizen that makes a difference

REFRESHING THE BEING A TRULY LEADING WITH

PLANET Being a responsible global citizen that makes a difference

Focus on 0-14 population

34.60% 0-14 years

Company Market Share

Philbev (Eight OClock) 39%

Low Nutrition Kraft (Tang) 51%

RTD Juice Multipacks, Fresh

Supplier Bargaining Power Competitor Rivalry Consumer Bargaining Power

Entry of New Competitors

Critical Success Factors Wt Score Ave Score Ave

Distribution Capability 0.25 3 0.8 4 1.0

Price Competitiveness 0.20 4 0.8

Advertising 0.15 3 0.5 4 0.6

Brand Added Value 0.10 3 0.3 4 0.4

Product Range 0.05 4 0.2 3 0.2

Market Share 0.05 4 0.2 4 0.2

Total 1.00 3.5 4.0

Critical Success Factors Wt Score Ave Score Ave

Distribution Capability 0.25 3 0.8 4 1.0

Price Competitiveness 0.20 4 0.8 4 0.8

Quality Product 0.20 4 0.8 4 0.8

Brand Added Value 0.10 3 0.3 4 0.4

Product Range 0.05 4 0.2 3 0.2

Market Share 0.05 4 0.2 4 0.2

Total 1.00 3.5 4.0

Critical Success Factors Wt Score Ave Score Ave

Distribution Capability 0.25 3 0.8 4 1.0

Price Competitiveness 0.20 4 0.8 4 0.8

Quality Product 0.20 4

Brand Added Value 0.10 3 0.3 4 0.4

Product Range 0.05 4 0.2 3 0.2

Market Share 0.05 4 0.2 4 0.2

Total 1.00 3.5 4.0

Critical Success Factors Wt Score Ave Score Ave

Distribution Capability 0.25 3 0.8 4 1.0

Price Competitiveness 0.20 4 0.8 4 0.8

Quality Product 0.20 4 0.8 4 0.8

Product Range 0.05 4 0.2 3 0.2

Market Share 0.05 4 0.2 4 0.2

Total 1.00 3.5 4.0

Critical Success Factors Wt Score Ave Score Ave

Distribution Capability 0.25 3 0.8 4 1.0

Price Competitiveness 0.20 4 0.8 4 0.8

Brand Added Value 0.10 3 0.3 4 0.4

Product Range 0.05 4 0.2 3 0.2

Market Share 0.05 4 0.2 4 0.2

Total 1.00 3.5 4.0

Critical Success Factors Wt Score Ave Score Ave

Distribution Capability 0.25 3 0.8 4 1.0

Price Competitiveness 0.20 4 0.8 4 0.8

Quality Product 0.20 4

Brand Added Value 0.10 3 0.3 4 0.4

Product Range 0.05 4 0.2 3 0.2

Market Share 0.05 4 0.2 4 0.2