Analysis Framework for Developing Actionable Insights

1. Analysis Framework for Developing Actionable Insights Rita Houston - Director, Marketing Capability Development, Marketing Capabilities info.shoppermarketing@coca-cola.com

2. MARKETINSIGHTS In Market Insights, weidentifyrelevantmarketinsightsthatdriveidentificationandprioritizationofopportunitiesforbusinessgrowth. CombiningtraditionalmarketplacedatawithmoreexpansiveHumanandCulturalInsightsenhancesourabilitytoidentifygame-­changinginsightswellbeforeourcompetitorsdo. HIGHLIGHTS Aswe’veevolvedourworkaroundMarketInsightsforDNA3.0, we’veprovidedmorestructurearoundhowyouusethe8LensAnalysistoevaluateMarketInsightsinputs. It’snotonlythedataandinsightthatisimportant, buthowweconverttherichestandmostmeaningfulinsightstobusinessopportunitiesandhowwedevelopactionablestrategiestoexploitthem. Confidential-­Internal Use Only

3. CONTEXT InMarketInsights, welookatthepowerfulcombinationofourbusinessknowledge—over120yearsofexperience—andtheeconomic, humanandfinancialforcesshapingtheworldaroundus. MarketInsightsguideustouseourdeepandenduringknowledgeofthebeveragebusinessasthelensthroughwhichweinterpretthemarket. MarketInsightsasksmoreofusthananalysis. Itasksustoforecastmarketshifts basedonglobaland/orlocaleconomic, social, technological, environmental, Consumer, andShoppertrends. Thesetrendsoftenmanifestfirstasseeminglysmallshiftsinourbusiness—aslightupsurgeinvolumeorsmalldeclineinprofitability—which, whenaggregatedglobally, areleadingindicatorsofmarketplacechanges. InMarketInsights, wedeliberatelycombinethemacroandthemicrotointelligentlyanticipatethefuturesowecanprepareforit. Wedothisbyusingthe8LensAnalysistoguideanin-­depthunderstandingoftheSysteminthecontextofthemarket. WeuseasequentialprocessthatdrivesustofocusonthemostappropriatedataandthenintegratethatwithHCItogenerateopportunities. Confidential-­Internal Use Only

4. MARKETINSIGHTSCOMPONENTS The8LensAnalysisfocusesusonthemostimportanttypeofdatathatwecanuse todevelopactionableinsightsandisleveragedeverywhereinDNA. Clickheretoreviewquestionstailoredbylenstohelpyouinthiswork. Notethat, forBusinessGrowthStrategiesspecifically, weprovideafine-­tunedsetof8LensAnalysisquestions, tailoredbygrowthscenarioneeded. ListedinthetablebelowaretheprimarydatasourcesweallshareasaSystem. Itisrecommendedyouturntothesesourcesfirst, thenaugmentthemwithothersources. MostofthesedatasourcesareavailableontheDNAToolspage. MARKETINSIGHTS PRIMARY DATASOURCES Consumer CBL, B3, Custom Qualitative Reports Shopper SONAR, MOTOR Direct from Customer data, SONAR, MOTOR Customer Channel Nielsen Retail Audit, Euromonitor Category CBL, B3, Canadean, Industry Estimates CBL, B3, Nielsen Retail Audit, Euromonitor Competition System Economics and Operational Insights Finance, Procurement, Technical Teams Confidential-­Internal Use Only

5. FRAMEWORK:8LENSANALYSIS TherearesevendifferenttypesofMarketInsights, eachexaminedthroughtheinternallensesofthe8LensAnalysisframework. Clickontheselensesintheimagebelowforasummaryofquestionsyoucanasktohelpguideyoutowardthemostuseful, appropriatedataforeach. Notethatthesequestionsaremorethoughtstartersthanchecklists—helpfulinthattheyletyouseethevarioustypeofdatayoumightconsidersoyoucanmakeinformeddecisionsaboutwhatdatatocollectandwhatdatayouconsciouslydecideislessrelevant. Attemptingtogatherallthedatamentionedintheselistswouldbeanenormoustask, andisthereforenotrecommended. • SYSTEM ECONOMICSANDOPERATIONALINSIGHTS • THECOMPANYANDBOTTLERS • Portfoliovolumeandprofit(geographies, categories, brands, packs, channel, Customers) • Volume, operatingincome, otherkeyfinancialtrends • BalanceSheetstructure • Volumeandvaluesharetrends • SWOT • HOWDOESTHESYSTEMBUSINESSMODEL WORK? • ValuechainacrosstheSystemand Customer/channel • ExtentofSystemalignment • Incidence orconcentratepricingmodel • Routetomarketflexibility • WHAT ARETHESYSTEM’SINFRASTRUCTURE, PROCESSES,AND CAPABILITIES? • Manufacturinganddelivery • Sales, marketing, andinnovation • WHAT ISTHESYSTEM’SIMAGE? • Corporatereputation • Heritage • Relationshipwithkeystakeholders Confidential-­Internal Use Only

6. FRAMEWORK:8LENSANALYSIS • COMPETITION • WHAT ISTHECOMPETITIVELANDSCAPE? (NARTDS, BEVERAGES, FMCGS) • Directcompetitors(TraditionalNARTDmanufacturers: PepsiCo, etc.) • Retailers(storebrands/privatelabel, Starbucks, brewedtea/coffee) • Nontraditionalbeveragemanufacturers(alcohol, dairy, etc.) • TransshipmentDSDsandwholesalers • Nontraditionalcompetitors(impulse, songdownloads, talk-­time, etc.) • WHAT ISTHECOMPETITORPROFILE? • Vision, strategy, tactics, portfolio, growth/size • Investment/DME, profitability • CompanySWOT • WHAT ISTHEIRPERFORMANCE? • Financialhealth • Brandperformance • BrandSWOT Confidential-­Internal Use Only

7. FRAMEWORK:8LENSANALYSIS • CATEGORY • WHAT ISTHE CATEGORYLANDSCAPEANDPROFILE? • Volume, value, profitability, investment • Keyplayersandfragmentation • Distributionchannels • Innovation, format, anddelivery • WHAT ISTHECONSUMER/SHOPPERVIEWOF THECATEGORYANDBRANDS? • Image/perceptions, benefits, barriers • Occasionsandmotivationsforconsumption • Decisionhierarchy • WHAT ISTHE CATEGORYANDBRAND PERFORMANCE? • Growthrates/trends, sourcesofvolume • Volumeandvaluegrowth opportunities—withinandoutsidebeverages • Shareof occasionsandneedstates • CategorySWOT Confidential-­Internal Use Only

8. FRAMEWORK:8LENSANALYSIS • CUSTOMER • WHAT ISTHECUSTOMERIMPORTANCETOTCCS? • Roleof CustomerwithinTCCS, profitability, typeofservice, etc. • Customerstrategy, plans, andvision(forselfandthepartnership) • Customerstructurebychannel • Customercontributionto ourvolumeandvalue • WHAT ISTHECUSTOMERIMPORTANCETOSHOPPERS/CONSUMERS? • Shareofwallet, shoppingtrips, shoppingmissions • PITA/SITCA, price/valueperception • Consumer/Shopperloyalty • Consumerimageof Customerandtheircompetitors • HOWDOTHEYMANAGETHEIRBUSINESS? • Sourcesofincome, sourcesofprofit • Spacededicatedtoproducts, prices • Demanddrivers, costdrivers • WHAT ISTHECUSTOMERSATISFACTIONLEVEL? • Expectationvs. delivery • Benchmarking Confidential-­Internal Use Only

9. FRAMEWORK:8LENSANALYSIS • CHANNEL • WHAT ISTHECHANNEL PROFILE? • Whatarethedifferenttypesofchannels?Howcanwesegmentthem? • Universeof outlets, percentshareofFACV, beveragedistribution, volume, value, andshare • HOWDOTHEYMANAGETHEIRBUSINESSWITHINNARTDS? WITHINBEVERAGES? WITHIN FMCGS? • Sourcesofincome, sourcesofprofit • Spacededicatedtoproducts, pricingpolicy • Demanddrivers:advertising,merchandising,promotions, etc. • Costdrivers: sourcesofsupply, levelofdiscounts, service, productdelivery • WHAT ISTHEIRCUSTOMERSATISFACTIONLEVEL? • Supplierperceptionandcustomerscommitment, advantagesanddisadvantagesbysourceofsupply—driversandbarriersinsuppliersearch • Serviceevaluation/benchmarking Confidential-­Internal Use Only

10. FRAMEWORK:8LENSANALYSIS • CONSUMER • WHOARETHEY? (UNDERSTANDINGCONSUMERSEGMENTS) • Demographics(age, gender, geography, diversity) • Socio-­economicclass(education, occupation, income) • Lifestage, lifestyle, andpsychographic/attitudinalsegments • Values, needs, aspirations, fearsandconcerns, passions • HOWDOTHEYSTRUCTURETHEIRTIME? • Whataretheactivitiespeopleengageinwhileconsumingbeverages? • Generally(dry occasions)? • Whatneedstatesarebeingsatisfiedatwetanddryoccasions? • Whatistheirconsumptionbehavior? • HOWDOTHEYSTRUCTURETHEIRSPEND? • Howdotheymanagetheirmoneybyneedstateinthehousehold(shareofbudget)?Atanindividuallevel(shareofwallet)? • Whatisthevalueequationforbeverages?Othercompetingcategories? Confidential-­Internal Use Only

11. FRAMEWORK:8LENSANALYSIS • SHOPPER • WHAT ISTHEPROFILEOF SHOPPERS? • Demographics, Shoppertypology, socialclass • Frequency, budget, Shopper/Consumerdynamics • Dispositiontowardcategories • Dispositiontowardchannels • WHAT ISTHEPROFILEOF SHOPPINGTRIPS? • Shoppingmissions • Basketsizeandvalue(incidence, frequency, spend) • SITCA • Pricevalueequation • WHAT ISTHESHOPPINGEXPERIENCE? • In-­storebehavior(browsing, timespent, trafficflow) • Influencers(in-­storedrivers, pesterpower, recommendations) • Decisionhierarchy(price, category, brand, flavor, pack) Confidential-­Internal Use Only Market_Insights — pg. 10/10