APPLICATION FORM Award Category: Best Ease of Shop Execution Program / Project: Licorerías Caminantes Program

Name (Group or individual): Kike La Hoz, Ursula Valdivia, Pamela Wong, Mónica Muñoz, and Luben Rousenoff

Market / Cluster: Perú IMC

Context: There were 1,300 indirect liquor stores (LS) in Lima where shoppers were having an unsatisfied shopping experience due to sales drivers were not

activated: Quality: damage/dirty cases, Distribution: opportunities in core and non-core sku’s (i.e. JWBLx750ml with 74% Numerical Distribution) Visibility: Outlets did not have a clear layout making difficult to find a sku in the shelf, no POP material implementation, Price: Not all sku’s have marked prices, Promotion: Diageo consumer/shopper promotions were only implemented at the supermarket channel. Persuasion: Store owners & employees had a low connection with Diageo. Shoppers and Consumers Understanding: The Traditional Channel represents 60% of Peru’s domestic business. Shoppers want to have a pleasure shopping experiences, where it is easy to buy according to their every-occasion need. Shoppers want to ensure that Diageo’s brand purchase decision is the correct one among Traditional Channel comparing to the Modern Channel. (Almost same prices between the channels, same promotions: price discounts, VAP’s, gifting) Shoppers & Consumers want to buy in their convenience liquor store with confidence of the product’s quality.

Brief description of the activity: The Program was called “Licorerías Caminantes” (“walking liquor stores”) because of two reasons: i.) during the trade visits we noticed that store-owners didn’t know that JW was Diageo’s brand so we took advantage of its force to make a connection with the program. ii.) Our target is to reach 1,000 Top outlets, the ones that are walking to become a better store offering a better shopping experience. To ensure the success of the program we preferred to divide the total implementation in three phases:

1st Phase: Market Test Implementation (from Nov’09 to Feb’10): 30 LS were selected: 25 with sales drivers activation and 5 LS as “control” (did not have any SD activation) to understand the “size of the prize”

2nd

Phase (F11): May 1st, 2010. Consists of gaining deep knowledge of the LS universe, in order to select the Top 1k who will become Diageo’s Licorerías

Caminantes (LC’s). Currently we are in the 8th month, reaching 645 outlets in line with our scorecard (Target: 600 POS). These LC’s are receiving one visit a

week from a merchandiser activating SD’s in their stores.

3rd Phase (F12): Include 1k LC’s in Diageo’s cycle brief permanently and interior expansion.

Project description during 2

nd Phase:

Scope: Lima City Team: 10 merchandisers and 2 supervisors outsourced. Workstream material: uniforms identified with Diageo’s Brands, file with reports and Multiplan to recollect trade information. Way of Working: Visits to the stores (from Monday to Saturday). Review status in the BTL agency each Monday morning to see opportunities, reports and to have continuing trainings. Daily communication between: BTL Agency - Supervisor - KAM/Sales Supervisor in order to capitalize every opportunity. The SD’s activation consists in: Quality: Merchandisers are responsible to maintain Diageo’s sku’s clean and according with our guidelines. Distribution: Merchandisers persuade to stores owners to have the right sku’s in their stores. Visibility: Merchandisers persuade to have the correct layout to activate POP Material, to win faces. Price: Merchandisers put prices markers and persuade to store-owners to Promotion: Consumer promotions and category platforms now are implemented among the traditional channel. Persuasion: Mystery Shopper implemented to win connection between store-owners/store-employees with Diageo’s brands. Merchandisers also gave POP functional materials (pens, JW stickers, JW bags).

Objective: “Win at the Moment of Choice” among the Traditional Channel improving shopping experience leveraged on the “Range and Space Solutions” (level

1 – display Solution) of EoS Plattform.

Detail of outcome achieved: This program is the first step for a great business partnership between the traditional channel/indirect accounts and Diageo.

Currently we are in the process of gaining the commitment and trust of the target stores. KPI’s Results: (From May 1st week to Dec 4th week) NUMERICAL DISTRIBUTION:

SDLX +8pp driven by Swing +5pp. DLX +9pp driven by JWBLx750ml +12pp. STD +9pp on the back of JWRLx750ml +5pp & WH +2pp Creams +10pp driven by Baileys +10pp.

PRICE EXHIBIT IN SHELF: Price visibility grew from 31% to 83% by Dec’10 due to price markers. VISIBILITY: By Dec’10 the LC’s with a clear layout are the 50% (+47% vs May’10 1

st week!). All LC’s were activated with POP Material (Brand building).

PROMOTION: Promotions such as the Whisky Festival have become closer to shoppers by reaching more outlets through LC’s program. Before this project, shopper promotions were focused in the modern channel: 90 outlets, but now the scope is bigger: 90 SMKs + 600 LC’s. Also category platforms reached more outlets, for example Christmas Platform “gifting and celebration” was activated in the outside and inside of the stores. EoS is the way to BTC among this channel, PR is not reaching this liquor stores yet. However other spirit brands (local rum, beers, and local wine) have a merchandising team.