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DNA 3.0 MARKETPLACE EXECUTION

DNA 3.0Marketplace ExecutionEvolving our DNA to include a holistic view on Marketplace Execution

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MARKET INSIGHTS

REVENUE MAPS

BRAND GROWTHSTRATEGY

PRODUCT, PACK ANDEQUIPMENT AGENDA

OCCASION BRAND PACK PRICE

CUSTOMER PLANS(OBBPC)

HUMAN AND CULTURAL INSIGHTS

CATEGORY AND BRAND MAPS

BRAND VISIONAND ARCHITECTURE

COMMUNICATION ANDCONNECTION AGENDA

BRAND COMMUNICATIONAND EXPERIENCE PLANS

MANIFESTO FOR GROWTH

BUSINESS GROWTH STRATEGIES

PORTFOLIO STRATEGY/BRAND ROLE

BRAND STRATEGY

BRAND PLANS

MARKETPLACE EXECUTION

DNA 2.0 defined the Coca-Cola way of marketing …

… though our opportunities to evolve continue

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MARKET INSIGHTS

REVENUE MAPS

BRAND GROWTHSTRATEGY

PRODUCT, PACK ANDEQUIPMENT AGENDA

OCCASION BRAND PACK PRICE CUSTOMER PLANS(OBBPC)

HUMAN AND CULTURAL INSIGHTS

CATEGORY AND BRAND MAPS

BRAND VISIONAND ARCHITECTURE

COMMUNICATION ANDCONNECTION AGENDA

BRAND COMMUNICATIONAND EXPERIENCE PLANS

MANIFESTO FOR GROWTH

BUSINESS GROWTH STRATEGIES

PORTFOLIO STRATEGY/BRAND ROLE

BRAND STRATEGY

BRAND PLANS

MARKETPLACE EXECUTION

Marketing Commercial Franchise

8 Lens Analysis 5% 14% 0%

EEEE 2% 5% 0%

Brand Map 11% 14% 0%

Opportunity Space 3% 5% 0%

Portfolio Strategy 10% 18% 7%

Revenue Map 8% 23% 7%

Brand Strategy Template

18% 0% 7%

Brand Growth Strategy 26% 0% 0%

Brand, Vision and Architecture (BVA)

46% 0% 7%

BP Value Process 6% 5% 0%

Product Development 16% 14% 7%

Agency Framework 22% 0% 13%

IMC Process 43% 5% 27%

IMC Tree 33% 0% 20%

Marketing Asset Process

7% 9% 0%

OBPPC 13% 36% 20%

Retail Messaging 6% 23% 20%

Q:% of People Responding: “Totally Part of My Work”(n=292)

Not all parts of the DNA have been consistently leveraged across our system

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So, to further evolve DNA to 3.0, we’ve focused on …

• Simplifying language & content

• Providing a holistic portfolio perspective

• Better balancing Art + Science, Commercial + Consumer

• Integrating the role of bottlers + customers

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Including, a complete overhaul of the Marketplace Execution fusion point

Channel /Customer

Experiences

BrandExperiences

Integrated Marketing

Communications

Marketplace Execution

Picture of Success Framework

• We no longer make the distinction between ‘above the line’ and ‘below the line’- rather, we believe that everything communicates and so we need to plan communication holistically.

• We have broadened our approach to Channel / Customer Experiences to include not just OBPPC thinking, but holistic retail activation.

• Together with our bottling partners, we are responsible for how Consumers and Shoppers experience our brands everywhere and we must collaboratively inspire excellence in all areas.

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All as part of the evolved DNA 3.0

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Channel & CustomerExperiences

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Purpose

This is the base where Brand and Portfolio Plans are brought to life in Channel, Customer and Bottler plans.

Channel / Customer Experiences reflect the combination of the OBPPC and the in-store elements of the IMC Connection Plan creating a holistic Picture of Success in store.

Collaboration and alignment between Consumer Marketing and Commercial Leadership with Franchise Leadership and Bottlers is important for the Picture of Success to become a reality.

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Our system objective:

Value Creation for all Stakeholders

As marketers we must remember that as a System, we must create value for all three of these stakeholders.

For the consumer, it’s creating brands people love.

For the shopper, it's bringing those brands to life in store in a way that converts shoppers to buyers.

For customers, it is collaborating for value. Our strategies for each of these stakeholders converge in the marketplace.

Consumer Proposition

Shopper Proposition

Customer Proposition

= More People Using Our Brands

= More People Purchasing Our Brands

= More Retail Activation for Our Brands

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Defining the Picture of Success

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A fully integrated execution agenda specific to a Channel /

Customer outlet

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Identifying our Shopper target based upon growth opportunity.

Questions answered: Which Occasions and Missions? Which Customers and Channels? Which Shopper segments? How do we unlock value?

Franchise Leaders

Brands

Innovation

Knowledge & Insights

Customers

Customers

Design

Communications

Core

Part

ners

Core

Part

ners

Prioritizing the Shopper Opportunities

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Differentiating our brand / pack strategy

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Franchise Leaders

Brands

Innovation

Knowledge & Insights

Customers

Customers

Design

Communications

Tailoring our brands, and especially our packages, based upon our Shopper segmentation.

Questions answered: Which brands? Which packages?, Which price points? Which equipment?

Core

Part

ners

Core

Part

ners

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Activating the store for optimal impact

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Franchise Leaders

Brands

Innovation

Knowledge & Insights

Customers

Customers

Design

Communications

Core

Part

ners

Core

Part

ners

Utilizing our knowledge of the shelf to ensure that our materials and plan reflect tactics that provide the best results.

Questions answered: How can we optimize shop-ability, in-store communication, promotions, packages?

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4. Commercializing with customers

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Franchise Leaders

Brands

Innovation

Knowledge & Insights

Customers

Customers

Design

Communications

Core

Part

ners

Core

Part

ners

Tailoring our portfolio and activation to our Customers and their Shopper’s needs.

Questions answered: How do we integrate with the Customer’s agenda? How do we execute this in channels?

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Target ChannelsTarget CustomersTarget Shoppers

Core Insights

AssortmentEquipmentAvailability

Pricing

Retail ExperienceMerchandising

PackagingPromotions

Customer Growth StrategyCategory Roles

Margin Expectations

Then, bringing all of the component parts together to define the picture of success

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Brand Experiences

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Purpose

Brand Experiences are the art within Marketplace Execution. The purpose of Brand Experiences is to design and deliver uniquely engaging Brand Experiences across relevant connection points — for our Consumers, Shoppers, Customers, and System.

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Brand Experiences include the executional elements of the IMC Development Process

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PRODUCTION AND IMPLEMENTATION

RESULTS

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Step 4

Production and Implementation

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This is literally the execution of the plan, including …

• Trafficking the ads to the TV and radio stations

• Inserting the print ads into newspapers, magazines, etc.

• Getting the billboards up

• Physically setting up the event (sampling, other)

• Key account managers negotiating and implementing key initiatives

into the calendar with large Customers

• Category management associates building the planograms

• Success metrics loaded into RED for Picture of Success execution

• The Bottler sales force executing the Picture of Success in store

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Step 5

Tracking Results

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It is at this step that you are actually tracking the Consumer and Shopper response to your marketing efforts against pre-determined metrics.

Tools employed may be:• B3 Consumer Tracking• IMC Measurement System (Continuous Communication Tracking)• Right Execution Daily (RED)—tracks execution of the Picture of Success• Bottler Sales Data: Availability, velocity, sales trend• Household Panel: Trial and repeat purchase

• Results must be fed back and discussed by all key stakeholders (Marketing, Commercial, Franchise Leadership, Bottlers, Customers) and programs should be refined appropriately

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Step 5

Analysis and Program Refinements

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• All tracking information for a program must be analyzed for its ability to build Brand Love and Brand Value

• Analysis of results must be fed back and discussed by all key stakeholders (Marketing, Commercial, Franchise Leadership, Bottlers, Customers) and programs should be refined appropriately:

– We must continually strive to improve our programs to maximize the impact to our business

– Because of the speed in which we can track and receive results, we should be able to “course correct” relatively quickly

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Fusing Art + Science for

Marketplace Execution

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• In Marketplace Execution, we make disciplined decisions on our portfolio execution choices based on segmentation, pack/price differentiation, and execution and support them with compelling brand messages.

• We have codified a high-level view of the process that shows the key steps from your Brand and Portfolio Plan through to executing materials in the marketplace, the measurement of results and refinement based on market learnings

• We no longer make the distinction between “above the line” and “below the line”—rather, we believe that everything communicates and so we need to plan communication holistically

• Together with our bottling partners, we are responsible for how consumers and shoppers experience our brands everywhere and we must collaboratively inspire excellence in all areas

Marketplace Execution fuses “Channel + Customer Experiences” with “Brand Experiences”

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A disciplined approach to holistic, Marketplace execution

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1. OPERATIONALIZE

2. PRODUCE

3. EXECUTE

4. MEASURE

5. REFINE

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Step 1

Operationalize

• The starting point of Marketplace Execution is the development of the Portfolio Execution Plan, where our 3-year-plus strategic Brand and Portfolio Plan truly becomes granular and actionable on a day-to-day, week-to-week, month-to-month basis

• All projects are reviewed and “calendarized” against:– The realities of the marketplace, e.g., what the bottler can actually deliver– What each key customer will accept in lieu of other brands and programs– Which channels will be activated, what the competition is doing– What events and holidays are taking place, etc.

• This calendar is continually reviewed and refined in light of marketplace dynamics and/or any discrepancies that may occur in the planned activation from Marketing, customer or bottler

• The success of the Portfolio Execution Plan being truly meaningful and actionable is dependent upon the continual collaboration among senior members of Marketing, customer, Franchise and bottler

– All four groups are stakeholders in this plan and must work in concert toward a shared end goal

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Step 1

Operationalize (continued)

In order to ensure success, the following elements are essential:

1. CULTURE

A collaborative culture must be instituted in which all parties:– Are aligned to the business goals– Feel they are equal stakeholders and have a share in the results– Accept accountability and are performance/end-result driven– Are flexible and can adjust plans to meet business goals in light of the realities of the marketplace – Are open, honest and act with integrity

2. PROCESS AND ROUTINES

The four stakeholder groups (Marketing, Customer, Franchise and Bottler) must institute a process and set of routines for working.

This will likely include:– Meeting role sort and responsibility (who leads, who contributes what, who decides)– Rules for engagement (how meetings will be conducted and participants will act)– Regularly scheduled meetings (weekly or monthly) to review the Plan – It is important to have a consistent date and time delineated– Meeting summary with clearly defined action points (who will do what, when)– Supporting templates and calendars

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Step 2

Produce

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The detailed Portfolio Execution Plan determines what materials go into production and when initiatives will be deployed into the marketplace.

The next step is the production of materials for both in and out-of-outlet execution.

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Step 3

Execute

This is literally the execution of the plan, including …

– Trafficking the ads to the TV and radio stations– Inserting the print ads into newspapers, magazines, etc.– Getting the billboards up– Physically setting up the event (sampling, other)– Key account managers negotiating and implementing key initiatives

into the calendar with large Customers– Category management associates building the Planograms– Success metrics loaded into RED for Picture of Success execution– The Bottler sales force executing the Picture of Success in store

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Step 4

Produce

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We measure performance based on pre-agreed benchmarks and analyze outputs. The core business measures below give the best method of evaluating the impact of Marketplace Execution on the basis of Brand Value and Brand Love.

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Step 5

Refine

Measuring results without an established feedback loop to share results and refine actions based on learnings is meaningless.

• The impact of Marketplace Execution should be measured through independent metrics and enhanced with judgment and experience to ensure that decision-making is informed with both facts and opinions

• Tools to measure the impact of Channel/Customer and Brand experiences can be found under on the DNA site

• Operational learnings together with corrective actions are fed back into the Portfolio Execution Plan and strategic learning to other parts further up the DNA process

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Want to learn more?

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Spark City has a fantastic archive of details, learnings, best practices surrounding DNA, the Coca-Cola Way of Marketing.

For more information visit:http://apps.ko.com/sparkcity/DNA