France

1. E R C France Efficient Consumer Response Tous droits réservés ECR France

2. ECR LEARNING PROGRAM Status, Experience, Evaluation March 18th, 2005 Tous droits réservés ECR France

3. ECR LEARNING PROGRAM A project about alignment and implementation Tous droits réservés ECR France

4. Carrefour Cora Bel Bongrain Coca Cola Colgate-Palmolive Lesieur Nestlé Procter & Gamble ECR LEARNING PROGRAMAre involved in the Pilot tests Tous droits réservés ECR France

5. ECR LEARNING PROGRAM • ECR France approach • 6 steps methodology • Carrefour Colgate-Palmolive pilot • Some feed back from all the pilots AGENDA Tous droits réservés ECR France

6. Work group = Best Practice elaboration About 25 companies Pilots validation (& implementation) Research & development 4 to 6 pilots Book of best practices Dissemi nation 94 ECR member companies ECR France approach : training as lever to implement Best Practices Learning together and implementing Tous droits réservés ECR France

7. Learning together To know : the knowledge The know-how : the practice Implementation with partners Behaviour : long lasting Behaviour change Implementation within the company ECR France approach Training units (virtual or face-to-face partnership class) one customer and some suppliers having decided to implement together From Best Practice knowledge to implementationThe training is based on 3 learning steps Tous droits réservés ECR France

8. Signature of the partner charter Constitution of the “partner group” Choice of process of dissemination 1 Learning the best practice by the partner class 2 Implementation of the best practice within each partner company 3 Certification of the partner group 4 Best practice for dissemination within each partner company 5 Best practice for propagation with other partner companies 6 The 6 steps of the ECR processFrom « learning together » to « working differently in an ongoing process » Learning together Working differently Perpetuating the change Tous droits réservés ECR France

9. The sponsor signs Signature of the partner charter 1 Partner group BP on Optimisation of Promotions Bel Coca Cola Colgate Palmolive Cora Lesieur « Partner group »Creation Designation of a guardian within each partner company Partner group BP on New product launches Bongrain Carrefour Colgate Palmolive Nestlé Procter & Gamble Step 1 : creation of 2 partner groups What does this mean Learning together Tous droits réservés ECR France

10. ExampleNew Product launchBest Practice applied by Partners GroupCarrefour & Colgate-Palmolive Tous droits réservés ECR France

11. Shared project for implementation • Study of 2 new products launches 2 products at different phases of their development. Palmolive Shea butter shower gel • Actibrush battery toothbrush • Working Methodology • Working group within each Company. • Common Working group Carrefour-Colgate • Coaching points • Retroplanning : • September 6th : launch kick off and formal training • 6 meetings Colgate-Carrefour : study of the 2 launches of which 2 with coaching (IMPP, Serge Cogitore) Tous droits réservés ECR France

12. From concept to product From consumer to loyal consumer LAUNCH PERIMETER Launch J + x months J – x months J DEVELOPMENT INTRODUCTION CONSOLIDATION From product to consumer Operational Launch Phase 4 Preparation Phase 3 Conception Phases 1 et 2 Evaluation Phase 5 Perpetuation Phases 6 et 7 Internal company Joint scope Joint scope Joint scope Internal Cy scope Enlarged perimeter Enlarged perimeter Joint perimeter Palmolive Karité shower (launch : June 14th, 2004) Electric toothbrush Colgate Actibrush (launch : November 15th, 2004) Tous droits réservés ECR France

13. AGREED KEY KPI’s • Sales figures • Category market shares • Average week sales • Numerical distribution • Penetration rate • Repurchase rate • Facings • Products noted as « missing » for logistics • Inventory level Tous droits réservés ECR France

14. Knowledge & Results vs KPI KARITE SHOWER GEL STUDY – POST LAUNCH PHASES • ND : 92% in 3 weeks vs ND maximum in 3 months • Weekly average sales : target reached • Inventory level : respect of objectives (< 13 days) Tous droits réservés ECR France

15. Record DN growth in Carrefour ! Source Nielsen – Panel Distributeur Tous droits réservés ECR France

16. Positive points Formalization of a process already used Improvement of communication inter and intra company Transmission of shared information to Carrefour stores and to the Colgate sales team Proof of the efficacy of the banner’s tools Difficulties Lack of alignment between Carrefour promo process and Colgate production process KEY LEARNINGS Tous droits réservés ECR France

17. Implications / Improvementsfor the future • Implementation of a retro-planning to be used for each product launch • Share with the manufacturer a table to follow the main KPIs • Process : • Knowledge of the industrial processes • Share the retro plannings of Carrefour with manufacturers • Align the process between Carrefour / manufacturers. Tous droits réservés ECR France

18. What remains to be done ? • Individually (Step 4) • Pursue the implentation accordingly to the ECR best practice • Complete certification report Tous droits réservés ECR France

19. A written report of implementation Validated by the Guardians and presented to the Jury (ECR France + IMPP) Certification of the learners Certification of the group 4 Step 4: detail Signature of the partner charter 1 Creation « partner group » Learning the Best Practice By the partner group 2 What does this mean Implementation of the Best Practice In binomial 3 Learning together Tous droits réservés ECR France

20. What remains to be done • As a company (Step 5) • Implementation the workshop on process alignment • Prepare tranining for dissemination whithin the CY Tous droits réservés ECR France

21. 5 Additional training If necessary within each partner group + Process integration workshop of the BP process Dissemination of the Best Practice Within the Company Step 5 : detail Signature partner charter 1 Creation « partner group » Learning the Best Practice by the partner group 2 Learning together Implementation the Best Practice In pairs 3 Certification of the group 4 This means Working differently Tous droits réservés ECR France

22. Main feed back • The 8 pilots’ participants have expressed their deep interest in the project: - Learning about each other processes - Discovering importance of complete communication and retro plannings - Appreciating quick positive results on both parties - Willing to go ahead with the methodology Tous droits réservés ECR France

23. Participants’ Verbatims • « In the future we should better share each one internal processus knowledge, both for a better adaptation , and to be more efficient » • « We must in the future better integrate in our general planning , each own lead time » Tous droits réservés ECR France

24. Participants’ Verbatims • « Sharing a common methodology allows to be more effective in sharing at the right time the main points » • « Stores’ implication upstream has permitted exceptionnal dramatizations » • « For the first time we have involved all the concerned functions of the specific operation, this has had as effect a greater involvement of everyone on his own commitments which became more bound up » Tous droits réservés ECR France

25. Participants’ Verbatims • But also : • « We observed on both sides, that cultural mindset is still hesitant for a total transparency, and that we will have to overpass this difficulty to spread out this best practise implementation » Tous droits réservés ECR France

26. ECR SUMMARY • Good alignment between ECR Europe and ECR France • Common training drives better business results • Top management support critical (partner charter) • Next step is to perpetuate behaviour change • Dissemination within the companies • Roll-out to other partners. Tous droits réservés ECR France

27. THANK YOU Tous droits réservés ECR France

28. BACK UP Wording of the ECR Summary Tous droits réservés ECR France

29. ECR SUMMARY • A collective & paired ambition which is not limited to acquiring common knowledge • The current practice gives business results • The experience shows that the signature of the charter is an indispensable pre-requisite for the implementation • From the beginning the identification of the learners is a guarantee of efficiency • On the 73 learners of step 2, 18 are no longer registered in the project team and 19 have appeared • The partner charter, the nominative CD Rom and the certification are absolutely necessary for follow up and control quality of the learning and also for the business model • The next step is to perpetuate behaviour change and appropriation • Dissemination within the company • Dissemination to other partners. Tous droits réservés ECR France

30. BACK UP Cora – Colgate-Palmolive Pilot Tous droits réservés ECR France

31. ExamplePromotion OptimisationBest Practice applied by Partners GroupCORA & Colgate-Palmolive Tous droits réservés ECR France

32. Supplier’s team Project Leader : Raphaël Moreau (Category Marketing Manager) Team Members : Carol Raynaud De Lage (Sales Forecast manager ) Philippe Vasseur (Customer Service Grouper) Etienne Plauche Gillon (Category manager Provera) Olivier Roussel ( Key Account manager Provera) Distributor’s team Project Leader : Antony HEMMER ( Oral Care Marketing manager) Équipiers : M Deroff (Cora Logistic manager) Melle Pasquier ( Sourcing manager) M Choley (Personnal Care products coordinator ) Mme Soucy (Personnal Care buyer) M Jaeger (Advertising manager) Teams Tous droits réservés ECR France

33. Shared Project :2005 « Beauty Operation » on Oral Care Our Objectives : • Optimise 2005 turnover vs 2004 (lower potential due to whitening kits) • Increase Total Oral Care consumption (toothpastes & toothbrushes) by recruting new consumers and bringing added value. • Create an « Event »: Improve the « Beauty Operation » image in Cora by dramatization. Tous droits réservés ECR France

34. Process steps: • Sept-04 • Joint definition of the project (2005 Beauty Operation) • Fixing the schedule • October 12 meeting • Cora & Colgate Objectives definition • Comparison of Cora & Colgate specific timings • Performance analysis of previous « Beauty Operation » • Présentation of Cora’s Folder Constitutive Elements (FCE) • October 18 meeting • Colgate’s recommandation on FCE for Cora 2005 Beauty Operation. • November 16 meeting • Colgate products proposition according to the FCE jointly defined. • Décember meeting • Products selected by Cora • Test on Oral Care kit making (co-packing, transport,…) Tous droits réservés ECR France

35. Process Steps (Ctd) • January 05 • Communication to Cora’s store department managers and Colgate sales team on the ECR project. • Pre-orders from the stores on the dental kit for production planning forecast purpose. • February 05 • Colgate sales team appointments in the stores. • Firm orders from Cora’s stores. • Colgate’s production start. • Next steps : • March 2005 : joint work on Folder dramatization. • April 2005 : deliveries on Cora’s warehouses. • May 2005 : Operation implementation in stores. • June 2005 : Operation evaluation (scorecard) Tous droits réservés ECR France

36. 2 2 1. Turnover Optimization(joint definition of FCE) • Promote market segments • On the wider possible consumer demand segment (ex: « family » toothpastes) • On the growing faster segments (ex : Toothbrushes in packs and the more technical toothbrushes) • Invest on the most efficient promo formats (ex: Toothpaste by 2 or by 3) • ECR Action= Redefine Folder Constitutive Elements Tous droits réservés ECR France

37. 1 toothpaste+ 1 toothbrush for child =Win a Looney tubes DVD Toothbrushes: buy 2 get 1 free2 Nouveautés 2005 2. Dévelop consumption • Create value by developping the less used segments : • Toothbrushes : encourage renewal => Multiple purchases + impulse • Children : train for daily brushing gestures => purchase of a toothpaste AND a toothbrush. • Push forward innovations • ECR Action= Set up trade concept Tous droits réservés ECR France

38. 3. Create an Event • Store dramatization : • Improve identification: create universes (Ex: dental universe) • Harmonise communication « between universe » • Expose and explain innovations • Action ECR = Oral Care kit creation • Store delivered pallet • KIT of 2 displays + Products • + 4 M² of red carpet • (to set up directly in the main aisle) Tous droits réservés ECR France

39. Key KPI’s Following KPI’s have been selected : • Y vs Y-1 sales figures • Implementation rate of End of aisle display. • Cannibalisation on standard • Repurchase rate • Out of stock rate • Time for disposing the remaining stock • Quantities ordered vs quantities produced • Quantities delivered vs quantities ordered • Customer Service rate Tous droits réservés ECR France