How

 Coca  Cola  İçecek  is  Advancing  Revenue  Growth  

Management  Capabilities  through  Big  Data,  Advanced  
Technology  and  Effective  Business  Processes?
 Speakers

A.  Sıtkı  Ozcan Murat   Yıldırım

Revenue  Management  &  A nalytical  
Revenue    Growth  Manager
Consultancy  Leader
 Agenda

Understanding   the  
Business Revenue  Growth  
Market  Overview Management   Capabilities
Big  Data  ʺ″The  New  Oilʺ″
01 Technology ʺ″Simpler   Terms  Getting   Complexʺ″

02
04 03

Learnings  &   Outputs Revenue  Management   Journey

Revenue  Management  and  Optimization  Capability
Joint  Business  Plan
Understanding  
the  Business
Market  Overview
 Spotlight  on  Turkey

FAST  MOVING  CONSUMER

MEDIAN  AGE GOODS   LANDSCAPE
29.6 %  SALES CCI  MARKET   SHARE  
IN  TRADITIONAL  
MODERN  TRADE
TOTAL  POPULATION TRADITIONAL  TRADE TRADE
DISCOUNTER
78,741,053
19% 24%

68
57%

PERCENT  BETWEEN
41% 15-­‐39  AGES TRADITIONAL  TRADE
SHARE   BUSINESS
GROSS  DOMESTIC   PRODUCT
63% 67%
$ 798 NON-­‐ALCOHOLIC CARBONATED  
BILLION BEVERAGE SOFT  DRINKS
 Spotlight  on  Business

FMCG  Value  Split % Beverage Value  Split %

Traditional Modern Discounters

57.9 52.6 50.0

64.0 67.6 65.9 63.8 61.0 58.8
75.7

24.4 25.0
23.6 23.4 23.5
24.0 23.0 23.1 23.2
18.0 23.0 25.0
12.0 18.5 13.0 15.6 17.6
6.4 9.4 6.4 11.0

2005 2010 2014 2018 2020 2005 2010 2014 2018 2020

Shift  thru  Modern   Channel  and  Discounters,   however   Traditional  Trade  will  
keep   its  strong  position  for  our  business
Spotlight  on  CCI

2 nd Largest   bottler  in  

terms  of  population

5 th Largest   bottler  in   terms  

of  volume
 CCI’s   Revenue   Management   Vision
Administrator Counselor Strategist Revenue  Leader

Year  1 Year  2 Year  3 Year  4+

Elevate  The   Capability  Push Defining   Delivering  

Low  skill Agenda RGM  Culture Excellence Excellence High   skill
Business  Strategy Strategic
Tactical Every  Day  !
Process
Re-­‐active Pro-­‐active

Generate  the  Fuel  to  Ensure  Sustainable  and  Profitable  Business  Growth  with  a  Holistic  RGM  Approach
 RGM   as   a  key  lever  to  drive  value  

Lead  Value  Growth  Initiatives

Build  Brand   Sustainable  

Portfolio   Trade  Promo   Trade  Spend  
&  Category   New  Growth   Planning
Prioritization Optimization Efficiency
Roles Model

Foundation  for   SKU  optimization Clear  guidelines Improve  

robust  O BPPC predictive  
Maximized  ROI  of  
Pack  roles capabilities  for  
trade  promo  and  
forecasting  
Channel   POS  investments
architecture
 Revenue  Management  
Capabilities
ʺ″Simpler  Terms  Getting  Complexʺ″
10
Data   has  no  limits!
Data   in  Real   Time
 CCI’s   Big  Data   in  Traditional  Trade

Traditional  Trade  :  Vital  for  Coca  Cola  Icecek  to  optimize  &  track  it

1 2 3 4 5

+3  Million  
311 160,000   37  Region  /  
44%  of  Total   Invoices/
Seperate   Sales  
CCI  Revenue Distributor month   to  
POS Manager
Track
 ʺ″The  Journeyʺ″
Joint  Business  Plan  of  Two  Giants
 Optimizing  pricing  and  promotion  is  an industry-­‐wide  
challenge

More   and   more  business  leaders  are  investing   in   sophisticated  

predictive  analytics to   drive   tomorrow’s   pricing  models  

PRICING   Studies  show   that  a   gain   in  Net-­‐Net  price  of   +1%

IS  THE  MOST  
PRICING NET-­‐NET   could   deliver  8%   to  12%  improvement   in   profit
EFFECTIVE  
IS  THE  
MOST   PRICE
PROFIT  
EFFECTIVE  DRIVER  
PROFIT  DRIVER

Sophisticated  pricing  capabilities  are   key  to   asses  risk  of  

revenue  &   profit  loss  associated  with   pricing  strategies  

Source:  Gartner  Vendor  Panorama  for  TPM  i n  Consumer  Goods  2 014

 Optimizing  pricing  and  promotion  is  an industry-­‐wide  
challenge

Ineffective …  that  is  getting …  and  impacts  all  

investment  … worse… industry  players.
TRADE   %  OF  WEEKS  
EFFICIENCY ON  PROMOTION
$0.75 7.5%

$1.00
5,4%
$0.70 7.0% HIGH

33% 16%
$0.65 6.5% RETAILER MUTUAL

RETAILER  BENEFIT
GROWTH GROWTH
$0.94
$0.60 4.4%
6.0% LOW HIGH
2012  1Q
2012  2Q
2012  3Q
2012  4Q
2013  1Q
2013  2Q
2013  3Q
2013  4Q
2014  1Q
2014  2Q
2014  3Q
28% 24%
Q1  2 012 Q3  2 014

Trade   SUBSIDIZATION MANUFACTURER

COST   OF  GOODS GROWTH
41% 59% PRICING   LOW
MAKE  MONEY LOSE  MONEY COMPLEXITY MANUFACTURER  BENEFIT

Source:  Nielsen  Trade  Promotion  L andscape  Analysis  2 015  (US,  Canada,  FR,  DE,  UK,  IT,  SP)  
 Breaking  the  Cycle...  Even  in  Traditional  Trade

POOR  V ISIBILITY  INTO  FINANCIAL  

PERFORMANCE  OF  TRADE   EVENTS

SKILLSET   NOT  DEVELOPED   COMPLICATED   TRADE  

ACROSS  THE   ENTIRE   FUNDING  STRUCTURES   BY  
ORGANIZATION CUSTOMER

DISCONNECTED   TRADE  
? DISPARATE  DATA  SOURCES  
SPEND  PLANNING   NEEDED   TO   MEASURE  
SYSTEMS TRADE   EFFECTIVENESS  

HISTORICAL  STRATEGY  
EXCEPTIONS  ARE   DIFFICULT  
TO   UNWIND
 CCI’s   Need
ANSWER SITUATION Traditional   trade   oriented   business  
and  we   need   a   holistic   portfolio  
RMO  will   improve   the  
approach   in   pricing   and   promotion  
pricing   and  promo  
decisions.
strategy   capability   of  the  
system  thru   leveraging  
robust  models,   analytics  
and  scenario   planning  
tools.  Simple   to  use  
platform   to  support  the  
promotional   planning  
process   and  develop   a   COMPLICATION
post-­‐event  analytics  
Decisions   based   on  
capability
market   dynamics   and  
experience   lacking   a  
prospectus   post-­‐
analysis,   closed   loop  
process   and  a   good  
understanding   of  what  
What   is   the  best   tailor-­‐made   solution   worked  what   did  not.  
QUESTION
for  the   specific   market   requirements   Regional &   segment
as  to   develop   wining   strategies    and   based focus is  
holistic   portfolio  approach   in   pricing   inadequate
and  promotion   decisions?
 Project   Objective

Improve  efficiency   and  trade  promo  optimization  in  Traditional  

Trade via  analytical   tools  &  guidelines  

Understand  
Define  ideal   the  drivers   End-­‐to-­‐End  
trade   of   shop   TPO  
margin owners’   solution
preferences

The  Size  
of  the  Prize  
3,2%
Of
opportunity  for  TT   on   Trade  
Promotion  Optimization  to   be   re-­‐
invested  on   accelerating   growth!
Operating  Income