unlocking our potential - imperial brands · jps range building jps international profile sep 04...
TRANSCRIPT
1
Unlocking Our PotentialFewer, bigger, better execution
Arthur van BenthemGroup Sales Director
2
My Journey
3
Unlocking Our Potential
1. Sales Growth Drivers… fewer, bigger, better execution
2. Customer Engagement… leveraging shopper & customer insights
4
Unlocking Our Potential
1. Sales Growth Drivers… fewer, bigger, better execution
2. Customer Engagement… leveraging shopper & customer insights
5
Total Tobacco portfolio of Global, Regional and Local brands targeting core consumer needs
Margin growth from superior Excise and BPPC capability
Consumer needs based game-changing and scalable innovation
A customer-centric route to market which maximizes Availability and Customer Advocacy
Priority Sales Growth Drivers
6
Prioritise key initiatives
Scale initiatives
Sustainability
Fewer, Bigger, Better Execution
7
Reinvestment for Growth
High quality investments, high returnsInvestment in growth
Investment efficiency
Scale ideas within/across markets
Performance managementProcess, Leadership and Organisation Capabilities
Our Key AssetsOur Key Assets
BrandEquityBrandEquity
TotalTobacco
TotalTobacco
MarketFootprintMarket
Footprint PeoplePeople
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Portfolio
9
0
20
40
60
80
100
120
140
160
180
200
220
May 09
Nov 09
Aug 09
Feb 10
May 10
Aug 10
Nov 10
Feb 11
May 11
Davidoff SSLDavidoff SlimDavidoff PL
Davidoff KSSL
Ukraine Davidoff (Indexed) Total Davidoff (Indexed)
Davidoff Driving Premium Growth
143
131127
113111106
100
HY11FY10FY09FY08FY07FY06FY05
HY11 is annualised
10
Morocco +13%
Algeria +40%
Tunisia +36%
Gauloises Success in North Africa
11
0
2
4
6
8
10
12
Apr 11
Oct 10
Apr 10
Oct 09
Apr 09
0
2
4
6
8
Sep 10
Sep 09
Sep 08
Sep 06
Sep 07
Germany UKJPS Silver
0
100
200
300
400
500Total JPS indexed volume
0
1
2
3
Oct 10
Apr 10
Oct 09
Apr 09
Apr 11
Australia
Pall Mall
JPS range
Building JPS International Profile
Sep04
Sep05
Sep06
Sep07
Sep08
Sep09
Sep10
Germany, UK, and Australia show market shares
JPS
12Imperial estimates; combined market volumes for Poland, Hungary, Czech Republic, Slovakia and Slovenia
50
60
70
80
90
100
110
120
130
FY06 FY10FY08 FY09FY07
billi
on s
tick
equi
vale
nt
FMC FCT
Driving FCT Growth in EU Accession
Cigarette CAGR -2%FCT CAGR +7%SE CAGR -1%
13Imperial estimates; weighted average shares for Poland, Hungary, Czech Republic, Slovakia and Slovenia combined
0
5
10
15
20
25
30
35
40
FY06 FY10FY09FY08FY07
Weighted Avge FMC Share Weighted Avge FCT Share
mar
ket s
hare
(%)
17.2
7.2
18.3
13.6
22.7 21.723.2 22.2 23.4
39.7
EU Accession Share Momentum
14
Ducados Rubio MYO in Spain
0
5
10
15
20
25
30
Apr10
May10
Jun10
Jul10
Aug10
Sep10
Oct10
Nov10
Dec10
Jan11
Feb11
Mar11
Apr11
May11
% s
hare
of F
CT
cate
gory
25%
Rolling Out C. Europe Growth Model
15
Innovation
16
0
5
10
15
20
25
KS Superslims
Capitalising on Eastern Europe Growth
Superslims
Fair share13%
Impe
rial s
hare
of G
row
th
17
Exploiting Scalable Innovation
Patented GlideTec innovation
Consumer “wow” effect
Initial launch in UK – Asda, BP, Shell & Esso
Significant capacity investment
Multi market roll-out planned
VIDEO – GlideTec Customer Focus Group
This video has not been made available on our website
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Pricing
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Excise Approach Germany
Long term excise tax predictability
Mix between Specific and Ad Valorem
Innovative minimum excise tax
Tax differentials between product categories
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Enhancing our Capabilities
IdentifyIssue & Opportunity
Define BPPCArchitecture
Execute Picture of Success Monitor & Measure
Adjust What it is
in brand, pack, price by channel
22Source: Imperial estimates
% s
hare
of m
arke
tPricing Strategy Drives Growth
0
1
2
3
4
5
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Abso
lute
Cha
nge
In B
rand
% S
hare
of M
arke
t
12
13
14
15
16
17
18
19
HY 09 FY 09 HY 10 FY 10 HY 11
Australia UK
Sterling
Windsor Blue
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Customer Engagement
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Outperforming in Dark Markets
Optimise local Trade Marketing capability
Australia increased share by 1.8% to 18.8% in HY11
Norway market share of snus up 1.1% and cigarettes up 0.3% in HY11
25
Outlet Distribution
USA Gold
Dutch Masters
Sonoma
Backwoods
Phillies
0% 10% 20% 30% 40% 50% 60% 70% 80%
USA Gold
Dutch Masters
Sonoma
Backwoods
Phillies
Integration to Maximise USA Growth
This space appears blank because we have removed the
images that appear in the presentation.
This is because we currently donot feature tobacco product
brand imagery on our website.
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Unlocking Our Potential
1. Sales Growth Drivers… fewer, bigger, better execution
2. Customer Engagement… leveraging shopper & customer insights
2727
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Understanding Stakeholder Needs
High non-availability on-shelf for the industryDisappointed shoppers, missed revenue/marginRoute to Market
4. Purchase Experience
Availability Shop convenience
shopper
Cash flowRetention &
acquisition of shoppers
customer
29
Where we compete
How we make it happen
CapabilitiesOrganisationaldesign
How we deliver it
Sales and channelstrategy
With adistinctive proposition
To the consumerShopper marketing
To the customerAccount managementTrade activationTrade investments
3-partymanagement
Supply chainalignment
Sales force effectiveness
Route-to-market model
Customer Engagement Agenda
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Maximising Shareholder Returns
Sales
HighMargins
Strong Cash Flow
Reinvest
Strong Cash Flow
Sales
Reinvest
Strong Cash Flow