TOP LINE STRATEGY OF CCHBC: WE WILL WORK TOGETHER TO CREATE

`THE WORLD CLASS SALES ORGANISATION`

WHEREVER AND WHENEVER WE CAN TOUCH CONSUMERS:

We will be unbeaten at Availability, Affordability,

Acceptability, Activation ...
…………………………………………………………………………………..

…while driving for the lowest appropriate

Costs to Serve

CORE Product
Customer Supply chain
CAPABILITIES portfolio
management management
management

People, Management Systems, Culture

 BEING UNBEATEN AT: MARKETING ROLE WHO
AVAILABILITY

• We are everywhere (we reach the - outlet census OM R

entire universe of outlets): they write - identify profitable opportunities OM&SO C
business cases about our distribution - develop solution for new opportunities
reach, we are the subject of newspaper and allocate resources SO C
articles, people tell stories about us - monitor distribution OM C

• The right product are always in stock - identify consumption occasions OM&SO C
through relentless supply chain - develop product portfolio to cover all
reliability opportunities SO NPD
- distribution plan for each
SKU/channel OM&SO C
- monitor implementation OM C

• We have strong and professional - identify customer needs SO R

customer relationships so that our - address customer needs when
customers want to look after our planning any activity and allocate
products more than any others resources SO&OM C&P
- reword performance OM C
- monitor customer satisfaction SO&OM R

• Our full range of brands are visible and - develop innovative merchandising
accessible in stores, they are always standards, POP, equipment and SO&OM C&P
within an arms reach of desire, they solutions to provide the right &A
reach out and grab the shopper by the product everywhere at the right
arm and say ‘buy me NOWWW!’ temperature
 BEING UNBEATEN AT: MARKETING ROLE WHO
AFFORDABILITY

• Our products and packs are priced - define consumers affordability for
in each outlet to be affordable to each occasion and our products SO R
our target consumers and provide perceived value
sustainable margins for our - optimize price by occasion SO&OM C
business (channel) and region

• Our superbly efficient supply chain - SKU rationalization to optimize

funds profitable volume growth and supply chain cost versus margin SO C
provides us with consistent
sourcing advantages over
competitors

• Our fine-tuned pricing, pack and - develop programs that maximize

promotional programs deliver great perceived value of each package SO C&P
value to consumers and fine-tune price accordingly

• Our sampling campaigns recruit - develop targeted sampling activities

new drinkers without undermining with brand messages
the positioning of our brands SO&OM P
 BEING UNBEATEN AT: MARKETING ROLE WHO
ACCEPTABILITY

• Our seamless relationship with TCCC - In-store communication with relevant

allows us to dovetail store presentation messages for each consumption / SO C&P
perfectly with consumer communication purchasing occasion

• TCCC delivers powerful communication - work with TCCC to determine relevant

that really touches consumers brand positioning / communication SO P&C
(understands their relationship with the (Censidyam)
brands, uses the right media) - communicate the right brand messages
when organizing events, when SO P
rewarding promotion winners

• Our products meet the highest quality - develop merchandising skills and
standards in every county we operate standards to meet the highest quality OM C
standards

• We sell a full product portfolio that

meets customer and consumer needs - identify consumer and customer needs SO NPD
and leverages our strengths - acknowledge our strength SO NPD
- develop capabilities to offer a full
• We are innovators: we use our 30,000 product portfolio SO NPD
minds to come up with great ideas and - share best practices and come with
our disciplined processes bring new great ideas to minimize the risk and SO&OM NPD
products to market with minimum risk maximize speed
and maximum speed
 BEING UNBEATEN AT: MARKETING ROLE WHO
ACTIVATION

• I see, I want, I drink:

-Great point of purchase and displays
-The right price, in the right location
-The perfect drink for the moment

• We bring what they say about our

brands to life: we make Coke fun, big,
refreshing, lifting, carbonated with
energy, honest

- We build brand strength on local roots - identify what is really relevant for OM P
in the community community & develop activities

- Our sales equipment (coolers, - develop placement criteria and

vendors, racks, fountains) is standards by channel/ by occasion OM&SO C&A
consistently in place in every profitable - maintain the whole asset inventory in
location and positioned and activated in good working conditions OM&SO A
exactly the right places in the store - monitor performance OM&SO A

- We understand consumers intimately, - be always aware about changes in

by store, by time of day and we consumer habits and occasion SO&OM All
communicate with them in a way that - develop programs / activities and
makes sense at that point in time in that communicate appropriate SO&OM All
location message to consumer
 BEING UNBEATEN AT: MARKETING ROLE WHO
COSTS-TO-SERVE

• Everyone manages costs as though it’s

their own money - every cost, every
person

• We have the right supply chain for our

needs, with ROTA meeting world class - all marketing activities (new product
benchmarks launches, promotions, events etc) SO All
must be designed at the lowest
• Our highly utilized, efficient factories and additional cost-to-serve
powerful procurement deliver cost - develop tracking systems and
advantages across products and performance management tools SO&OM C&A
countries to improve ROTA for all marketing
assets
• Our responsible environmental policies - design marketing calendar in order
minimize risk and cost for us and our to optimize package mix and SO&OM All
communities maximize ROTA
- purchase marketing materials at the
• We touch every outlet with maximum best quality / cost by using SO All
efficiency, through carefully designed approved suppliers and
and operated selling, distribution and centralized ordering
equipment service
 Manning - SO Marketing Department

2001 2001 2002

bud. act. bud.
Country Marketing Manager 1 1 1
IC Channel Manager 1 1 1
FC Channel Manager 1 1 1
OTG Channel Manager 1
Promotions & Events Manager 1 1 1
Technical/Assets Manager 1 1 1
Pricing, Packaging Manager 1
Country New Product Development 1 1
Project Manager for New Product 1 1
Promotions Co-ordinator 1 1 1
POP Co-ordinator 1 1 1
Events Co-ordinator 1 1 1
Research Coordinator 1 1
Budget Controler 1 1
Marketing Trainee 1 1
Secretary 1 1

Total Manning 13 12 13
 OPEX - SO Marketing Department

2001 2002
Act. VS VS PY VS PY
Bud. Act. Bud. Bud. Act. Bud.
Labour Cost 322,771 248,782 -73,989 356,326 107,544 33,555
Employee Benefits 44,857 25,439 -19,418 19,910 -5,529 -24,947
HR Related Expenses 101,940 16,747 -85,193 9,073 -7,674 -92,868
Travel & Entertainment 148,100 95,756 -52,344 178,095 82,339 29,995
Depreciation & Amortisation 14,580 9,428 -5,152 7,040 -2,387 -7,539
Utilities 36,634 16,636 -19,998 19,634 2,998 -17,000
Motor Vehicle Expenses 36,917 22,732 -14,184 37,529 14,797 613
Other 168,640 186,151 17,511 202,056 15,906 33,416

Grand Total 874,437 621,669 -252,768 829,662 207,993 -44,775

 OPEX - SO Marketing Department

2001 2002
Act.
VS VS PY VS PY
Bud. Act. Bud. Bud. Act. Bud.
Labour Ordinary 185,668 140,384 -45,284 206,273 65,890 20,605 Same manning as
Christmas Bonus 7,950 6,295 -1,655 8,662 2,367 712
budgeted for 2001
Labour Cost Annual Incentive Plan 26,861 29,179 2,319 37,981 8,802 11,121
Temporary Staff Expenses 0 60 60 0 -60 0
Payroll Tax 102,292 72,864 -29,428 103,409 30,545 1,117
Labour Cost Total 322,771 248,782 -73,989 356,326 107,544 33,555
Catering 2,608 2,404 -204 5,522 3,118 2,914
Staff Allocations Free Issues 746 266 -479 652 386 -93
Staff Drinkage 1,363 541 -823 1,436 895 72
Employee Staff Transportation 0 0 0 0 0 0
Benefits Clinic Expenses 540 326 -214 1,320 994 780
Employee Clothing 0 0 0 0 0 0
Insurance Employee 0 0 0 0 0 0
Relocation 39,600 21,901 -17,699 10,980 -10,921 -28,620
Employee Benefits Total 44,857 25,439 -19,418 19,910 -5,529 -24,947
HR Related Training 101,940 16,747 -85,193 9,073 -7,674 -92,868 Too low!
Expenses Recruitment Expenses 0 0 0 0 0 0
HR Related Expenses Total 101,940 16,747 -85,193 9,073 -7,674 -92,868
 OPEX - SO Marketing Department

2001 2002
Act.
VS VS PY VS PY
Bud. Act. Bud. Bud. Act. Bud.
Travel Interstate 38,700 18,578 -20,122 15,940 -2,638 -22,760
Travel Overseas 31,800 14,779 -17,021 20,375 5,596 -11,425 Major Conference:
Travel &
Entertainment Protocol Employeee Related
17,600 14,473 -3,127 6,060 -8,413 -11,540
Entertainment • Includes transportation for 400
Entertainment Protocol Non Employeee Related
0 623 623 19,200 18,577 19,200
• 12 Mktg meetings (4 in 2001)
Major Conference Expenses 60,000 47,303 -12,697 116,520 69,217 56,520
Travel & Entertainment Total 148,100 95,756 -52,344 178,095 82,339 29,995
• Incl. RSM in meetings
Depreciation Depreciation 14,580 9,428 -5,152 7,040 -2,387 -7,539
& Amortisation Of RC 0 0 0 0 0 0
Amortisation RC Loss 0 0 0 0 0 0
Depreciation & Amortisation Total 14,580 9,428 -5,152 7,040 -2,387 -7,539
Electricity 0 0 0 0 0 0
Heating Gas Fuel 0 0 0 0 0 0
Utilities Water 0 0 0 0 0 0
Telephone 36,634 16,636 -19,998 19,634 2,998 -17,000
Rates&Taxes 0 0 0 0 0 0
Utilities Total 36,634 16,636 -19,998 19,634 2,998 -17,000
M/V Rep & Maint Trucks 0 66 66 0 -66 0
M/V Fuel Trucks 0 116 116 0 -116 0
M/V Oil Trucks 0 0 0 0 0 0
M/V Taxes&Insurance Trucks 0 0 0 0 0 0
Motor Vehicle
M/V Rep & Maint Cars 5,520 4,982 -538 11,040 6,058 5,520
Expenses
M/V Fuel Cars 29,370 15,157 -14,213 14,733 -424 -14,637
M/V Oil Cars 503 178 -325 354 176 -149
M/V Taxes&Insurance Cars 1,524 2,235 711 4,102 1,868 2,578
M/V Rental 0 0 0 7,300 7,300 7,300
 OPEX - SO Marketing Department

2001 2002
Act.
VS VS PY VS PY
Bud. Act. Bud. Bud. Act. Bud.
Rent 0 0 0 0 0 0
Rent Land&Building 0 0 0 0 0 0
Insurance General 0 0 0 0 0 0
Security 0 0 0 0 0 0
Waste Removal 0 0 0 0 0 0
Cleaning 0 0 0 0 0 0
Pest/Fire Control 0 0 0 0 0 0
Courier 960 514 -446 600 86 -360
Stationery 3,000 3,282 282 4,306 1,025 1,306
Other Cases Platf Pall Misc Pack 0 0 0 0 0 0
Audit Fees 0 0 0 0 0 0
Bank Charges 0 0 0 0 0 0
Consultant Fees 0 0 0 6,000 6,000 6,000
HQ Recharges 0 0 0 0 0 0
Legal Expenses 0 0 0 0 0 0 Market Research:
Publ Subsript Info Serv 161,800 67,484 -94,316 191,150 123,666 29,350 • Same surveys as in 2001
Project Employees 0 0 0 0 0 0 • CRA was not budgeted in 2001
(Gain)Loss from FA Disposal And Hiring(Revenue)
0 0 0 0 0 0
Other Services 2,880 114,871 111,991 0 -114,871 -2,880
Other Total 168,640 186,151 17,511 202,056 15,906 33,416