Mapping Categories and Brands to the Beverage Landscape

1. Mapping Categories and Brands to the Beverage Landscape David Schmidt - Group Director, Portfolio Insights & Trends, Marketing Knowledge and Insights info.shoppermarketing@coca-cola.com

2. CATEGORYANDBRANDMAPS Category and Brand Maps is the art within Portfolio Strategy/Brand Role. The purpose of Category and Brand Maps is to understand people’s lives—their emotions, needs, desires, and relationships; this will informour decision to position and expand existing categories and brands, ordevelop new ones. HIGHLIGHTS AsourworkaroundCategoryandBrandMapshasevolvedforDNA3.0, we’veaddedacategory/brandbenefitsegmentationtomorequantifiablyassertabrand’spotentialtodeliveragainst Consumerneeds. TheCategoryandBrandMapsprocesshelpsusuncoverthecoreemotionalandphysical Consumerbenefitsthatourbrandsandcompetitor’sbrandsmustdelivertocapitalizeonmarketopportunities. Thisprocessalsoprovidesaninitialvolumesizingforeachopportunity. CategoryandBrandMapsareusedinconjunctionwithProfitMapstobreakdownthebusinessimperativescomingfromBusiness GrowthStrategiesanddeveloptheseintoprofitableportfoliostrategiesanddistinctcategory/brand roles. Confidential-­Internal Use Only

3. CONTEXT MAPPINGEMOTIONS MARKETS HAVE HUMAN FOUNDATIONS Themarketsweplayin are fundamentallyshapedbypeople—theirhopes,desires,andmotivations.Category andBrandMapsbenchmarkcategoriesandbrandsagainstthesehumanfoundations. BRANDS CANNOT BE FORCED ON CONSUMERS Peopleinvitebrandsinto theirlives.Theobjectivefactsofconsumption—who consumeswhat,when,howmuch,andsoon—areimportant,butthey are notenoughto create outstandingbrands. CONNECTING TO PEOPLE’S LIVES Byunderstandingtherolesourbrandsplayinpeople’slives,wegaininsightintohowwe can deepenourbondswithConsumersanddeliverthefeaturesandbenefitsthatwillresonatewiththemonseverallevels. Confidential-­Internal Use Only

4. FRAMEWORK:CATEGORYANDBRANDMAPS TheworkofCategoryandBrandMapsistoproduceandanalyzeavarietyofmapsandaxes, searchingforthecombinationthatprovidesthebestinsightintoopportunity. Thisexampleisneedstates/demographics. Bymappingabrand’sabilitytoaddressaneedstatefora Consumersegment, weidentifythebrand’sepicenterandanyopportunitiestoexpandtherelevanceofthebrand. Wealsoilluminatewhitespaceopportunitiesinthemarket. Anotheralternative, mappingcategories/brandsonaneedstate/occasionbasisportraysanexecutionlens. NEED STATES MENTALRENEWAL HEALTH,BEAUTY, ANDNUTRITION COMFORT ANDRELAXATION SELFCONFIDENCE ANDINDIVIDUALITY ENERGY/STIMULATION ACTIVEREPLENISHMENT SENSORYPLEASURE ANDFOODENHANCEMENT HAVINGAGOODTIME HUNGERANDDIGESTION ROUTINEREFRESHMENT SUSTAININGENERGY ACTIVE REPLENISHMENT ENERGYKICK MENTAL RENEWAL PURPOSEFUL NUTRITION VIBRANT ANDALIVE BODY PURIFICATION WEIGHT MANAGEMENT COPING WITHSTRESS SELFCONFIDENCE ANDINDIVIDUALITY RELAXED ANDATEASE COMPLEMENT FOOD ENJOYTHE MOMENT CONNECTING WITHOTHERS COMFORT SENSORY PLEASURE RELIEVE HUNGER AID DIGESTION ROUTINE REFRESHMENT TEENS Category/ Brand D Category/ Brand A YOUNGADULTS Category/ Brand C CONSUMERSEGMENTS Category/ Brand B ADULTS Category/ Brand E MATUREADULTS Confidential-­Internal Use Only

5. PROCESS:CATEGORYANDBRANDMAPS 1 2 3 4 5 DEFINEANDMAP BEVERAGELANDSCAPE UNCOVERTHE ESSENCEOFANDMAPBEVERAGECATEGORIES MAPTCCCANDCOMPETITIVE BRANDSWITHINTHE BEVERAGELANDSCAPE INTEGRATECATEGORYAND BRANDMAPSAGAINSTEXECUTIONAL LEVERAGEPOINTS(OCCASIONS, DEMOGRAPHICS, DAYPARTS,CHANNELS) DETERMINEANDPRIORITIZE EXPANSION, COMPETITIVEANDWHITESPACEOPPORTUNITIES Confidential-­Internal Use Only

6. PROCESS:CATEGORYANDBRANDMAPS DEFINE ANDMAP UNCOVERTHEESSENCE MAPTHELANDSCAPE INTEGRATEMAPS DETERMINE ANDPRIORITIZE STEP1:DEFINEANDMAPBEVERAGELANDSCAPE A. CBLMAPS BEVERAGE BENEFITS TO PEOPLE’S UNDERLYING FUNCTIONALAND EMOTIONALNEEDS Fundamentally,beveragesplayafunctionalandemotionalroleinmany aspects ofpeople’slivesbyaddressinga broad range of Consumer needs. Usingbeveragestoreleasetensions E T M I C E X N /E T N U F C O N N E Y C G T I R N E N G / E B / Y O ENJOY THE MOMENT CONNECTING WITHOTHERS T N I L VIBRANT& ALIVE D A I T N I G V ENERGYKICK C Y A R SENSORY PLEASURE R E E T / S C Usingbeverages tointegrate myself ACTIVE REFRESHMENT SUSTAINING ENERGY A O Usingbeveragestoafirmmyself M COMPLEMENT FOOD M / S F COMFORT U O PURPOSEFULNUTRITION T R A T ROUTINE REFRESHMENT T RELIEVEHUNGER T S CONFIDENCE/INDIVIDUALITY RELAXED ANDATEASE COPING WITHSTRESS BODY PURIFICATION D MENTAL RENEWAL I S N T I O N I WEIGHT MANAGEMENT T C A T X AIDDIGESTION I O A L N / E I R N / Y D I T V I I L D I U U A Q L N I T A Y R T C Y O T N I T IL R B O A L T / S Usingbeverages tocontrolcertaintensions DIVIDE THE BEVERAGE LANDSCAPE INTO FOURAREAS Each area ischaracterizedbyanunderlying set ofbenefitssoughtanddeliverysolutionsrequired. REFRESH THE CBLFORYOUR MARKET BYMAPPING CURRENT VOLUMESAGAINST THE DATABASE Confidential-­Internal Use Only

7. PROCESS:CATEGORYANDBRANDMAPS D. CREATE OPPORTUNITYAND RISK MAPS TO UNDERSTAND BUSINESS LANDSCAPE CORE STRENGTHS: GREATERTHANAVERAGEVOLUME ANDSHARE>120INDEX;ALSOAREAOFGREATRISK IFWELOSE SHARE SPACESWHEREWEAREUNDER-­DEVELOPEDANDINCREMENTALOPPORTUNITYISGREATERTHANAVERAGE;LARGERSPACESFORPORTFOLIOEXPANSION OTHER STRENGTHS: SHARE >120INDEX,HOWEVER,LESSTHANAVERAGEVOLUME;SMALLERSPACESTODEFENDANDGROW Note:OTGconsumptionisnotlargeinvolume,butwehavestrengthinthisprofitable occasion and need togrow Note:OTGconsumptionisnotlargeinvolume,butwehavestrengthinthisprofitable occasion and need togrow Note:TeensandYoungAdults are strongholds to defend AtHome AwayFromHome Total NAB and TCCC Share Lunch Dinner Snack at Home Work, Study, Routine at Home Eating Away From Home Leisure Away From Home Other Leisure at Home At School Watching TV at Home Breakfast At Home At Work On The Go Total (12-69) Age12-19 Age20-29 Age30-39 Age40-49 Age50-59 Age60-69 SOURCE:Jan2007—CBL databasesfor35countriesprojectedto TCCCIndex>120Total Bev Vol>Average (CoreStrengths) TCCCIndex>120Total Bev Vol<Average (OtherStrengths) TCCCIndex<90Total Bev Vol>Average (Opportunity) totalworld(ages12-­69)andTCCCIndustryEstimates.TotalNon-­AlcoholicBeverages(RTDandNRTD)annualunitcasevolumeinbillionsandKO share. Excludestapwater,alcohol,anddairyusedfornon-­beveragepurposesandnon-­commercialbeverages. Confidential-­Internal Use Only

8. PROCESS:CATEGORYANDBRANDMAPS DEFINE ANDMAP UNCOVERTHEESSENCE MAPTHELANDSCAPE INTEGRATEMAPS DETERMINE ANDPRIORITIZE STEP2:UNCOVERTHEESSENCEOFANDMAPBEVERAGECATEGORIES MapthefootprintsofbeveragecategoriesbasedonCBL. TheworldofEnergyDrinks TheworldofSports TheSparklingbeverageworldis stronglylinked tospontaneous pleasure which inturnis associated withthe universeofbeing youthfulandcarefree. TheworldofFruitJuice drinks is stronglylinked topleasurable sensationsofgoodness fromnature. is stronglylinkedtoaneagerness toperformand thedesiretotransformor unleashyourself. Drinks is stronglylinked to dominance,cultivating powerorcontrol. SPECIFIC PURPOSE BASED UNCOMPLI- CATED MYSTICAL UNDEFINED PRACTICAL ANDEASY SENSORIAL UPLIFTING RICH E T M I C E X N /E T N U LIBERATING INTENSIFYING F C O N N E Y C G T R I N E G N / E B / EnergyDrinks Y O T N I L D A I T N PERFORMING VITALIZING I G V C Y Sparkling A R R E Beverages E SOOTHING T / S Sports Drinks C A O M M / S F U O T R A T Fruit T T S Juices Coffees Tea Tea Waters D I S N T I O N I T C A Soya T X I O RESTORING CALMING A L N E / I R N / D Y I T V I I L D I U U Q A L N I T A Y R T C Y O T N I T IL R B HEALING O A L T / S FAMILIAR RITUALIZED SACRED SPECIFIC BENEFITBASED TheworldofTea-baseddrinksis stronglylinkedtomaintaining a balancedstateofmentaland physicalwell-beingbothforyourself andyourcompanions. TheworldofCoffee-based drinks is stronglylinkedto easinglife’s intensities and findinginnerstrength. TheworldofWaterbeveragesis stronglylinkedtothe purificationofthebodyand maintainingyourself/family. Confidential-­Internal Use Only

9. PROCESS:CATEGORYANDBRANDMAPS DEFINE ANDMAP UNCOVERTHEESSENCE MAPTHELANDSCAPE INTEGRATEMAPS DETERMINE ANDPRIORITIZE STEP3:MAPTCCCANDCOMPETITIVEBRANDSWITHINTHEBEVERAGELANDSCAPE A. BRAND ASSESSMENT Eachbrandintheportfolioisevaluatedtounderstanditscurrentperformanceandlong-­termpotential. ASSESSMENTAREAS DATAPOINTS BrandLove/Preference Loyalty BrandVision 4.Brand Awareness BrandRelevance BrandPersonality BrandLandscape Metrics: FavoriteBrandScore BrandPersonalityIndicators E V O L ND A R B BRANDLOVE Data Sources: B3 BrandPerformanceIndicator CBL SPAN BrandProfitability BrandSize BrandGrowth MarketShare BrandPremium Metrics: EconomicProfitGenerated VolumeGenerated Brand Contribution/DME RefuelRate MarketShare ELU A V ND A R B BRANDVALUE Data Sources: BrandFinancials,BrandContributionTool MarketInsights BrandExtendibility BrandBusinessFit BrandEquityTransferability Possibilitytobemergedwith other Brands IconicStatusofBrands: Cultural/Emotional/Available Metrics: 1.PotentialVolume/Revenue/Profit E C N NDM A AR ROBF ER P BRAND POTENTIAL Data Sources: 1.CBL 2. B3 Database 3.SPAN Confidential-­Internal Use Only

10. PROCESS:CATEGORYANDBRANDMAPS BRANDLOVE BRANDVALUE Confidential-­Internal Use Only

11. PROCESS:CATEGORYANDBRANDMAPS BRANDPOTENTIAL B. ASSESSVERSUSTHEGLOBALBRAND/BENEFITSEGMENTATION(A.K.A.LANDGRAB STUDY) Usethistoquantifiablyassertabrand’scredentialstodeliveragainstConsumerneeds. Source:CBL Confidential-­Internal Use Only CategoryBrandMaps_dwnld— pg. 10/14

12. PROCESS:CATEGORYANDBRANDMAPS C. BRAND MAPPING WITHIN THE BEVERAGE LANDSCAPE Then, wemapbrandsintothebeveragelandscape. M E TE I N C T X /E N C FU O N N E C TI Y G N G R / E B N O E N / Y D T I I N L A G T I BrandA V C A R Y E R / E C T O S M A F M O / S R T U CategoryX T A T S Confidential-­Internal Use Only

13. PROCESS:CATEGORYANDBRANDMAPS DEFINE ANDMAP UNCOVERTHEESSENCE MAPTHELANDSCAPE INTEGRATEMAPS DETERMINE ANDPRIORITIZE STEP 4:INTEGRATEALLCATEGORYANDBRANDMAPSAGAINSTEXECUTIONALLEVERAGEPOINTS(OCCASIONS,DEMOGRAPHICS, DAYPARTS,CHANNELS) A. MAP ALL CATEGORY AND BRAND FOOTPRINTS AGAINST CONSUMER TARGETS AND DOFURTHER ITERATIONS AGAINST OCCASIONS, DEMOGRAPHICS, DAYPARTS, CHANNELS Thisstepbringstogetherafullmarketplacepicturebyintegratingallcategoriesandbrands—ourownandourcompetitors’. NEEDSTATES MENTAL RENEWAL HEALTH,BEAUTY, AND NUTRITION COMFORT AND RELAXATION SELFCONFIDENCE ANDINDIVIDUALITY ENERGY/STIMULATION ACTIVE REPLENISHMENT SENSORYPLEASURE ANDFOOD ENHANCEMENT HAVINGAGOODTIME HUNGER ANDDIGESTION ROUTINE REFRESHMENT RELIEVE HUNGER AID DIGESTION SENSORY PLEASURE COMPLEMENT FOOD ENJOYTHE MOMENT CONNECTING WITH OTHERS PURPOSEFUL NUTRITION BODY PURIFICATION WEIGHT MANAGEMENT ROUTINE REFRESHMENT COMFORT RELAXED ANDATEASE MENTAL RENEWAL COPING WITHSTRESS SELFCONFIDENCE ANDINDIVIDUALITY VIBRANT ANDALIVE ENERGYKICK SUSTAININGEN- ERGY ACTIVE REPLENISHMENT TEENS BrandI BrandA BrandB BrandH YOUNGADULTS BrandJ BrandC BrandD CONSUMERSEGMENTS BrandK ADULTS BrandG BrandE BrandF BrandL MATURE ADULTS Confidential-­Internal Use Only

14. PROCESS:CATEGORYANDBRANDMAPS B. THIS MAPPING ALLOWS US TO IDENTIFY CATEGORY AND BRAND-SPECIFICOPPORTUNITIES. THESE OPPORTUNITIES ARE EITHER: EXPANSION OPPORTUNITIES, COMPETITIVE OPPORTUNITIES OR WHITE SPACES Brand Stretch= OpportunitytoexploitlatentequitiesortargetnewConsumers White Space = Opportunitiesthatourcurrentportfolioisunabletocapitalizeon,butwhichareaccessiblethroughbrandextension,repositioning, oracquisition NEEDSTATES SELFCONFIDENCE ANDINDIVIDUALITY ROUTINE REFRESHMENT HUNGERAND DIGESTION SENSORY PLEASURE ANDFOOD ENHANCEMENT ENERGY/ STIMULATION HAVINGA GOODTIME COMFORT ANDRELAXATION MENTAL RENEWAL ACTIVE REPLENISHMENT HEALTH,BEAUTY, ANDNUTRITION SUSTAININGENERGY ACTIVE REPLENISHMENT MENTAL RENEWAL PURPOSEFUL NUTRITION ENERGYKICK BODY PURIFICATION WEIGHT MANAGEMENT VIBRANT ANDALIVE COPING WITHSTRESS SELFCONFIDENCE ANDINDIVIDUALITY RELAXED ANDATEASE CONNECTING WITHOTHERS SENSORY PLEASURE COMPLEMENT FOOD ENJOYTHE MOMENT COMFORT RELIEVE HUNGER AID DIGESTION ROUTINE REFRESHMENT TEENS BrandH CONSUMERSEGMENTS:DEMOGRAPHIC BrandA BrandB BrandJ YOUNGADULTS BrandI BrandC BrandG BrandD ADULTS BrandE BrandK MATURE ADULTS BrandF Brandstretchopportunities Whitespaceopportunities:Brandextension,repositioning,acquisition Confidential-­Internal Use Only

15. PROCESS:CATEGORYANDBRANDMAPS DEFINE ANDMAP UNCOVERTHEESSENCE MAPTHELANDSCAPE INTEGRATEMAPS DETERMINE ANDPRIORITIZE STEP5:DETERMINEANDPRIORITIZEEXPANSION,COMPETITIVEANDWHITESPACEOPPORTUNITIES HereweoverlayProfitMapstoinformPortfolioStrategy. WhileCategoryandBrandMapsidentifyequityopportunities, ProfitMapsprovidethevalue/volumequantificationofthoseequityopportunityspaces. Thiscombinationuniquelyinformsourportfoliodecisions. Itisimportanttoconvenerelevantcross-­functionalteam membersforaworkshoptodetermineandthenprioritizeopportunitiesandrisks. NEEDSTATES HEALTH,BEAUTY, ANDNUTRITION ENERGY/ STIMULATION MENTAL RENEWAL ACTIVE REPLENISHMENT SELFCONFIDENCE ANDINDIVIDUALITY HAVINGA GOODTIME COMFORT ANDRELAXATION ROUTINE REFRESHMENT SENSORY PLEASURE ANDFOOD ENHANCEMENT HUNGERAND DIGESTION ACTIVE REPLENISHMENT PURPOSEFUL NUTRITION BODY PURIFICATION WEIGHT MANAGEMENT SENSORY PLEASURE COMPLEMENT FOOD ENJOYTHE MOMENT SUSTAININGENERGY MENTAL RENEWAL RELIEVE HUNGER AID DIGESTION CONNECTING WITHOTHERS COMFORT RELAXED ANDATEASE COPING WITHSTRESS SELFCONFIDENCE ANDINDIVIDUALITY VIBRANT ANDALIVE ENERGYKICK ROUTINE REFRESHMENT 17 81 2 44 21 80 97 38 18 11 52 32 60 23 BrandH 82 15 26 71 39 TEENS BrandH CONSUMERSEGMENTS:DEMOGRAPHIC BrandA BrandA BrandB BrandB 36 45 9 BrandJ BrandJ 5 13 63 27 40 58 BrandC 77 30 12 96 18 3 BrandG 23 56 29 13 35 29 51 20 19 YOUNG ADULTS BrandI BrandI BrandC BrandG BrandD 47 34 61 37 90 BrandD ADULTS 37 22 2 27 79 14 10 26 70 BrandE BrandE BrandK BrandK MATURE 80 18 24 67 55 95 33 76 6 69 41 19 99 46 93 31 83 65 4 BrandF BrandF ADULTS Brandstretchopportunities Whitespaceopportunities:Brandextension,repositioning,acquisition Confidential-­Internal Use Only