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Walmart Coca-Cola 2014 Annual Report “Coca-Cola” and “Coke” are registered trademarks of The Coca-Cola Company. ©2015 The Coca-Cola Company www.stewardingvalue.com/2014
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Page 1: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

Walmart Coca-Cola 2014 Annual Report

category leadership

“Coca-Cola” and “Coke” are registered trademarks of The Coca-Cola Company. ©2015 The Coca-Cola Company

www.stewardingvalue.com/2014

Page 2: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

Rob Gehring President Global Walmart & Sam’s Club Team

In 2014, Coca-Cola and Walmart collaborated to innovatively drive shopper value and grow our joint business. As the needs of shoppers continue to change, we remain committed to strategically delivering relevant and meaningful solutions.

Throughout this report, we will share challenges posed by Walmart leadership and how Coca-Cola is answering, with exclusive programs and key initiatives. Together, we are building personalized and localized connections with shoppers around the world.

In the USA, our success with Effortless Meals® has helped us effectively launch similar programs in China, Japan, Mexico and Canada. With nearly every market participating in activating the FIFA World Cup™, we generated tremendous excitement and results. We’ve also remained laser-focused on driving category leadership by analyzing data, identifying opportunities and implementing solutions that enable us to better serve Walmart shoppers today and tomorrow.

Through these platforms, our teams around the world are helping mom live better by making the most of the moments she shares with her family. Together, we are redefining the evolving retail landscape by delivering value and convenience in exclusive and engaging ways. We are learning what works, building on our achievements, and making improvements and adjustments to meet the unique needs of each market.

Our supply chain advancements have earned us recognition as “Supplier of the Year” in China and the United Kingdom. Wins such as these contribute to a solid foundation from which Coca-Cola and Walmart will grow our mutual business moving forward. Together, we will continue to challenge ourselves to create opportunities that help Walmart shoppers live better every day.

Page 3: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

Our teams were proud

to be recognized by Walmart for efforts

made in 2014.

President’s Award

CANADA

Best Overall AwardCHINA

Supply Chain Supplier of the YearCHINA

Ambient Supplier of

the YearUNITED

KINGDOM

Coca-Cola leadership also

provided recognition

for moving the business forward.

These successes inspire us to find innovative solutions to challenges that lie ahead.

Page 4: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

Available at:

OFFICIAL FIFA PARTNER

categ ry leadership

Walmart and Coca-Cola are constantly identifying new opportunities to drive sales by connecting

with mom online, in-store and ultimately with her family. Through exclusive platforms like

Effortless Meals® and the FIFA World Cup™ program coupled with our efforts driving category

growth, we are not only enhancing her shopping experience, but also helping her make the most

of the times she shares with family and friends. While our approach is tailored to each market we

are serving, globally we are creating moments to help mom and her family live better.

Page 5: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

In 2014, the FIFA World Cup™ generated excitement

around the world. Coca-Cola and Walmart leveraged

the largest global, social and sports event to connect

with mom. Together, we helped equip her with

everything she needed to bring the FIFA World Cup™

home to her family and friends. Our joint efforts

inspired her to create memories with her “home team”

that will last a lifetime.

FIFA World Cup TM

Page 6: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

CANADACoca-Cola and Walmart Canada collaborated to drive sales by connecting with shoppers through FIFA World CupTM activations. Canada grew sales by 27 percent over the previous year with increases in sparkling, isotonics, Glaceau and vitaminwater® sales. With more than 200 stores participating, Walmart Canada implemented in-store displays, online advertising and a Trophy Tour Experience. Over 450 associates attended the FIFA World CupTM Trophy Tour at the Walmart Canada home office. Associates were entertained by a football freestyling group and engaged with an interactive “Hug” vending machine which distributed Coca-Cola beverages. Many in attendance wore football jerseys supporting their home country or favorite club team.

MEXICOIn Mexico, Coca-Cola and Walmart brought the FIFA World CupTM to life, delighting shoppers with promotional activations, exclusive value-add gifts with purchases, and large, impactful in-store displays. The joint efforts pleased shoppers, with Mexico growing sales by 9.5 percent over the previous year.

Pallet POS (Point of Sale)

100+ spots on TV Azteca

Ball-Shaped 365ml 7-pack

Walmart Banners Nationwide FWC Coca-Cola Packaging

Making Winning Moments TogetherFIFA World Cup TM

+27%

Trophy Tour at Walmart Home Office

In-Store Displays & Media

Incremental Displays

CHINACoca-Cola and Walmart China leveraged the 2014 FIFA World CupTM to create moments of happiness through consumer promotions, large in-store activations, interactive in-store display contests, and special events. For only the second time in the Coca-Cola/FIFA partnership, the FIFA World CupTM Trophy made an appearance at Walmart’s location in Shanghai. Shoppers, associates and executives were all eager to get their picture with the Trophy. The Walmart/ Coca-Cola FIFA World CupTM Roadshow also generated excitement for the games by mixing performances, games and consumer participation in high-traffic, on-site gatherings at six Walmart stores in six different cities over 12 days. Participating Walmart stores in China grew sales by 32.4 percent through this holistic execution.

Interactive “Hug” Vending Machines

We will continue to focus aggressively on driving comp sales in each of our markets. This is the most efficient manner for us to drive top-line as well as returns.”

DAVID CHEESEWRIGHTPresident/CEO Walmart InternationalQ4FY14 Earnings Call

INCREASE IN SALES OVER PRIOR YEAR

+9.5% INCREASE IN SALES OVER PRIOR YEAR

+32.4% INCREASE IN SALES OVER PRIOR YEAR

FIFA WORLD CUPTM

TROPHY TOUR

TO

DEDICATED PORTFOLIO

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BRAZILIn the host country of the 2014 FIFA World CupTM, Coca-Cola and Walmart Brazil advanced momentum and excitement for the games in the six months leading up to the matches. The integrated approach to marketing activations spanned online, at home and in-store, driving traffic to Walmart and increasing sales of Coca-Cola products. Together, Coke and Walmart teams enhanced the shopper experience through major in-store activations, large displays, engaging point of sale (POS), and exclusive merchandise. The strategic implementation captured the spirit of the FIFA World CupTM, increasing sales by 3 percent over the prior year.

MultipackShoppers could buy Coca-Cola beverages, and text or visit the website to enter the code for a chance to win prizes.

TROPHY TOUR

1 0 0 % of stores

participated !

“You’ve Got Power” POWERADE® PromotionShoppers earned the chance to win prizes with their POWERADE® purchases.

48,000 vouchers

distributed

29 stores distributed vouchers

in 5 cities

Making Winning Moments TogetherFIFA World Cup TM

Minibottle MemorabiliaTO

28 pallets of Coca-Cola 2L were

sold in only 3 days

Page 8: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

Together, Coca-Cola and Walmart strive to help

mom make the most out of mealtime with her

family. Through the Effortless Meals® platform

at Walmart, we help mom get dinner on the table

without the hassle of cooking. We deliver a fresh,

affordable meal the whole family can enjoy by

pairing deliciously prepared foods from the

Walmart Deli with refreshing Coca-Cola beverages.

Because mom spends less time cooking and more

time with loved ones, Effortless Meals® provide

a value that goes way beyond price.

TM

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DOUG MCMILLONPresident/CEO Walmart Stores Inc. Q4 FY14 Earnings Call

“ Customers’ shopping habits are changing more rapidly than ever before.We must be more nimble and flexible as we operate our businesses to adapt to these changes. So, our focus is to invest in the capabilities that connect with customers on their terms.”

category leadershipMaking Every Day Easy

UNITED STATESThe US Coca-Cola and Walmart teams are effectively leveraging the combined strength of our brands to create meaningful value for Walmart shoppers. We looked outside the beverage aisle and found an immense opportunity to drive sales by combining Walmart meals with Coca-Cola beverages. Coca-Cola’s largest nationwide meal platform to date has made the Walmart Deli a destination for mom to get a delicious, convenient meal for her family. The 3-year program continues to gain momentum in the US, in addition to expanding to other markets.

Happy Eating & Drinking elements unveiled at 2014 Year

Beginning Meeting

3-YearPartnership

Coca-Cola’s largest nationwide

meal platform to date

Effectively selling more Walmart food with more

Coca-Cola beverages

CHINACoca-Cola and Walmart China have built a program that emulates and builds on the success of the Effortless Meals® program in the US. In-store elements of China’s Happy Eating and Drinking platform were unveiled at the 2014 Year Beginning Meeting (YBM). Since then, Walmart China and Coca-Cola have launched the program in several test markets, continuing to refine the program’s visual identity, marketing strategy, and combos. Happy Eating and Drinking continues to gain momentum, with the goal being to roll out the program nationally in 2015.

Page 10: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

category leadershipMaking Every Day Easy

JAPANIn October of 2014, Japan launched their program leveraging the natural connection between Coca-Cola beverages and meals. Posters in train stations, engaging point of sale (POS), and strategically placed coolers encouraged shoppers to take advantage of convenient and inexpensive mealtime solutions. Participating stores saw growth in sales of featured meals along with Coca-Cola (500ml and 1.5L), Ayataka (525ml and 2L) and Sokenbicha (525ml) beverages.

MEXICOAt the end of 2014, inspired by the execution of Effortless Meals® in Walmart US stores, Coca-Cola Mexico began partnering with Walmart to execute their version of this concept. The Mexico team designed the execution of Effortless Meals® so that each format was tailored to meet the needs of distinctive shopper profiles. A test is underway. After obtaining results, the program will gradually be launched in over 300 stores.

JURIQUILLA● Cambio de Copete preciador. Se utilizaron soportes metálicos para fijarlo y mantenerlo en su posición

correcta.

● Colocación de cenefas de estireno sobre el “porta-cenefa”.

● Se sustituyeron los viniles del cooler tipo “paletero” .

Page 11: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

Coca-Cola and Walmart recognize that the needs

of shoppers continue to change, leading to a rapidly

evolving retail landscape. Together, we are fully

committed to meeting mom’s needs by delivering

meaningful, creative beverage solutions that matter

most to her. We are constantly striving to innovate and

drive category leadership by giving mom the variety,

value, and convenience she and her family crave.

Our efforts in this arena help make her the hero at

home, sharing happiness with those closest to her.

category leadership

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We’re aggressively focused on leading the business with a long-term view on our customer.”

DAVID CHEESEWRIGHTPresident/CEO Walmart InternationalQ4FY14 Earnings Call

category leadershipAchieving Best In Class

CANADAGrocery continues to be a growth area for Walmart Canada. The Project 8 initiative provided key learnings for reclaiming valuable space to allow for growing and emerging categories and trends. Based on the findings, Coca-Cola Canada provided guidance to Walmart on category size, placement and flow in addition to designing and ordering fixtures to accommodate category needs while operating more efficiently. Together, we are delivering more of the convenience and variety shoppers crave.

Space Categories Efficiencies

CHINAChinese retail’s long-term outlook is solid, with modern trade growth and e-commerce rapidly growing share. Coca-Cola and Walmart recognize category growth opportunities exist to drive long-term scale, loyalty, and efficiency. Coca-Cola is committed to converting high consumer confidence into mass consumption by winning at the shelf through the development of an enhanced multi-pack portfolio and the introduction of new products; winning with food through the advancement of the Happy Eating and Drinking platform; and winning at checkout with upgraded coolers that entice shoppers with an impulse purchase as they wrap up their shopping trip.

BRAZILCoca-Cola Brazil worked with Walmart store managers to increase sales by adjusting the placement of beverages throughout the entire beverage department. This holistic approach will improve the shopper experience by creating an attractive environment, separating alcoholic and non-alcoholic beverages, and segmenting categories based on shopper needs. The project will initially be implemented in a completely renovated store in Sao Paulo – Vila Leopoldina, with adjustments expected to increase profit by five percent.

>> >>

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asia

category leadershipIn every market that Walmart and Coca-Cola serve, we are creating moments to help shoppers live better. Our joint successes around the

world provide a solid basis from which we will continue to grow moving forward.

africacanada united kingdom

latin america

united states

Page 14: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

CHINAWith the support of senior management, Coca-Cola and Walmart worked closely to develop sustainable improvements to the supply chain process. Our teams worked with bottlers to improve fill rates and in-stock availability, decrease operating costs, and drive sales growth.

Initial results of this joint partnership effort are favorable. We are committed to taking what we’ve learned, in conjunction with the aligned 3-year supply chain Joint Business Plan (JBP), as basis for implementing improvements moving forward.

$1.5MM USD SALES INCREASE

2014FILL RATE

IMPROVEMENT

70%85%

In Q4 it sustained

at 90%

In-stock % went from

85% in Q1 2013 to

98% in 2014

COST SAVINGS& EFFICIENCY

5M pieces of paper

4,000+ operating

hours

asia3 countries • 11 banners • 850+ outlets

Page 15: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

In partnership with our global leverage teams, we’re driving innovative technology and process improvements, all with a lens on greater customer relevance.”

DAVID CHEESEWRIGHTPresident/CEO Walmart InternationalWalmart 2014 Annual Report

CHINAIn 2014, Coca-Cola and Walmart China worked together to strengthen their Joint Business Plan (JBP). Coca-Cola implemented a new Vertical Management Model (VMM) approach, using Walmart as the exclusive pilot customer. The approach focuses on effectively managing one centralized customer with more than 25 bottlers. Additionally, Coca-Cola and Walmart held several workshops to ensure everyone understands their role in delivering the JBP. Together, our teams are working on several key initiatives including the development of the first Yihaodian JBP.

Vertical Management Model (VMM) Working Group

Asia

JAPANUnderstanding Japan’s shoppers became a primary, joint focus for Coca-Cola and Seiyu in 2014. Based on Seiyu’s desire to drive sales growth by creating an emotional connection with shoppers, Coca-Cola executed a neuroscience study that provided key insights regarding store layout and merchandising. Together, we learned about strengths and opportunities with the new Hibarigaoka Danchi store format compared with the more established Minami Urawa format. The shopper insight gathered, and how we leverage our findings, will serve as a roadmap for how we continue our work as strategic business partners moving forward.

FIFA World Cup TM

Coca-Cola and Seiyu leveraged the 2014 FIFA World Cup™ to build connections with shoppers through new and innovative executions. Japan successfully launched unprecedented in-store activations, an exclusive trophy tour consumer event, engaging in-store POP and exposure. Chief Merchandising Officer, Gary Severson, recognized Coca-Cola’s efforts as “best-in-class” and encouraged others to follow Coca-Cola’s lead at the Year Beginning Meeting.

Hibarigaoka Danchi

Minami Urawa

+5.6% INCREASE IN SALES OVER PRIOR YEAR

CMO Gary Severson, Japan YBM

Best-in-ClassExample

2014 REGIONAL JBP WORKSHOPS

TO

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UNITED KINGDOMCoca-Cola UK is committed to driving sustainable growth at ASDA through variety and a more balanced large PET portfolio. In 2014, Coca-Cola launched Coca-Cola Life at ASDA. Initial sales have been strong and our teams see significant opportunities to leverage the brand and drive sales. Coca-Cola and ASDA also collaborated on the launch of the new 1.75L bottle using the iconic contour bottle shape, which improves visual impact and differentiation on shelf vs competitors while helping to maintain a competitive price point. The 1.75L bottle fits in existing merchandising units, and research shows that the majority of consumers prefer the new 1.75L shape. Initial sales results show gains with light buyers.

SWEETNESS FROM NATURAL

SOURCESLOWER CALORIE

canada /uk/africa21 banners • 1,375+ outlets

Page 17: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

As a global company, we have responsibilities to the countries in which we operate. We earn trust through our commitment to compliance, social and environmental issues.”

DAVID CHEESEWRIGHTPresident/CEO Walmart InternationalQ4FY14 Earnings Call

UNITED KINGDOMTogether, Walmart and Coca-Cola collaborated to delight ASDA shoppers through exclusive, experiential activations and product launches.

Coca-Cola Christmas Truck

Oasis Mighty Drops

launch expanded from 100 to 250

ASDA stores 2014 FIFA World Cup™ Trophy Tour

CANADACanada leveraged TV and cinema advertising, experiential marketing, an abundance of point of sale (POS), and social media to drive awareness for the Share a Coke program. Shoppers were reminded to Share a Coke from the time they entered the store, across their shopper journey, and as they prepared to leave. Strategically placed share bins also enticed shoppers to search for the perfect Coke to share. The program increased Coca-Cola’s immediate consumption soft drink sales by 55% over ten weeks.

Canada/UK/AfricaFIFA World Cup TM

37%

2,400 people

got photos taken with the trophy

The 2014 FIFA World Cup™ Trophy made a stop at ASDA Eastlands in Manchester, making it the first time ever this amazing asset was shared with shoppers. It was the first time social media had been used as a mass driver for an activation like this.

Coca-Cola launched Oasis Mighty Drops exclusively at ASDA prior to rolling it out nationally. Our teams worked with ASDA to extend the launch from 100 stores to 250 stores, giving more ASDA shoppers the first taste of this innovative product.

The iconic Coca-Cola Christmas Truck Tour brought the spirit of the season to ASDA shoppers and associates, with more than 68,000 people participating in the event that spanned six days. Sales increased by 37% in stores the truck visited compared to six control stores.

INCREASED SALES AT CHRISTMAS TRUCK TOUR STORES

TOSOUTH AFRICACoca-Cola South Africa partnered exclusively with Makro to raise R200,000 (over $16,000) to support PinkDrive. The breast cancer awareness nonprofit company (NPC), educates women about the importance of early detection in the prevention and management of breast cancer. We promoted this joint effort in-store through displays and packaging, online and in print ads.

TO

+

Page 18: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

MEXICOIn 2014, Walmart Mexico rolled out the Global Replenishment System (GRS). As a warehouse-delivered juice business in Mexico, the Jugos del Valle team proposed working with Walmart to leverage a tool embedded in GRS called Truck Load Optimization (TLO).

To date, the tool has helped improve picking efficiency and pallet performance, and reduced items damaged during shipment.

In 2015, the Jugos del Valle team is committed to collaborating with Walmart to master GRS. Working together, we expect to increase our fill rate to 98%, improve our service level and achieve optimal in-stock levels, ensuring full shelves at Walmart stores.

Multi-saving Lunchbox Stand

Breakfast Execution

Multipacks

latin americaHome to 64% of Walmart banners outside the US

Page 19: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

ARGENTINAIn Argentina, Coca-Cola collaborated with Walmart to redesign the layout of the Sparkling Soft Drink (SSD) category within the Changomas format. By relocating all SSDs to a more relevant area within the store, we successfully connected with Walmart shoppers. We expanded the SSD segment within the NARTD Category by providing increased visibility. The adjustment improved the shopper experience by making it easier to navigate throughout the store, in addition to driving sales of Coca-Cola beverages.

ARGENTINAIn Argentina, Coca-Cola collaborated with Walmart and bottler, ARCA Continental, to define and address root causes for fill rate issues. We created an initial pilot program focused on leveraging essential data to improve this key metric in three stores in northern Argentina. Based on our findings, we adjusted delivery frequency and lead time before implementing a second pilot program. This approach yielded a 20% improvement in fill rate for the 2nd pilot program, and also set the foundation for us to improve fill rates in other areas of Argentina.

Latin AmericaFIFA World Cup TM

MEXICOTwo days after the final game of the FIFA World Cup™, Coca-Cola Mexico launched the Share a Coke program in all Walmart stores. Engaging displays, personalization stations and social media successfully drove sales of Coca-Cola beverages.

2014FILL RATE

IMPROVEMENT

20%

We must have the lowest cost to operate. Our ability to work together to share ideas and best practices is having a big impact across our operations.”

DAVID CHEESEWRIGHTPresident/CEO Walmart International2014 Walmart Shareholders Meeting

Page 20: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

Growing our Joint Business with CARS

A ‘One System’ approach to

managing data across LCBU

More consistent and reliable

information for all users

Latin AmericaFIFA World Cup TM

LATIN CENTER CARS, The Coca-Cola System’s dynamic, in-house business intelligence tool, has played an integral role in helping the Latin Center Business Unit (LCBU) optimize their usage of Walmart’s data. CARS has consolidated Walmart’s worldwide Retail Link transactional data into a single secure database for more efficient reporting.

Prior to introducing CARS, the LCBU lacked local Walmart data analytics capabilities, limiting the potential to effectively manage the business. In collaboration with the Walmart International team, the LCBU implemented CARS in early 2014, providing comprehensive training for bottlers and company personnel. Best practices from other countries were used to develop tailored business scorecarding routines.

Assistance prioritizing

resources behind the real

opportunities

CARS (Customer Analysis & Reporting System) has provided a strong foundation for accessing and leveraging critical customer data, enabling fact-based decisions to grow the local Walmart business. It has also facilitated a consistent business approach across the five markets, driving greater focus on discovering and pursuing new growth opportunities.

CARSCustomer

Analysis and Reporting

System

A proactive approach

MEXICOCoca-Cola Mexico is leveraging the CARS tool to execute operational strategies that drive our product availability at Walmart. In collaboration with the Walmart International team, Coca-Cola Mexico developed a weekly CARS scorecard to monitor Walmart Supply Chain Key Performance Indicators (KPIs). The scorecard enables greater focus on performance by bottler, category and store format. It also provides the ability to more quickly identify opportunities to course-correct. The team identified the fill rate metric as an opportunity to improve execution and utilized the tool to innovatively manage shopper demand and product shortages. New metrics were created in CARS to enable monitoring of in-stock and out-of-stock levels. Utilizing CARS has ensured a consistent source of data for all bottlers, and alignment on agreed metrics and calculations. The CARS scorecard helps bring complex data together in a simple user-friendly format, todrive continuous improvements in our inventory management.

Mexico Walmart Inventory Analysis

THE SCORECARD CAN BE ANALYZED BY:Bottler • Autoreplenishment Type • Category • Brand

Bottler Store Sub Format Franchise Category

Replenishment TypeDOH Segments

Brand

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MEXICOCoca-Cola FEMSA is the largest franchise bottler of Coca-Cola beverages in the world. Coca-Cola is the largest recycler of PET packages in Latin America. Leveraging Coca-Cola’s sustainable package commitment, Coca-Cola FEMSA is testing a recycling initiative in partnership with six Walmart Supercenter stores.

Walmart shoppers are invited to bring their empty PET packages to the collection containers as part of the “Together We Take Care of the Environment” campaign.

The pilot test will explore logistic routes to optimize the effort. If successful, the test will be expanded to all Supercenter stores in Mexico City.

Latin AmericaFIFA World Cup TM

BRAZILIn Brazil, Coca-Cola launched a cross-merchandising pilot program with General Mills. In-store point of sale (POS) leveraged the connection between Coke beverages and snacks at Walmart stores. The pilot program was a success, leading to plans to roll out the program throughout Brazil.

BRAZILIn Brazil, Coca-Cola collaborated with Walmart and Centro de Serviço Compartilhado (CSC), Walmart’s Shared Service Center in Brazil that reviews invoices with pricing issues, to improve order accuracy, inventory and delivery. The Coca-Cola Brazil team created a training video that helped our sales, merchandising and delivery personnel better understand Walmart’s ordering system. We worked together to reduce duplicate and delayed orders in addition to minimizing wait time at delivery. Coca-Cola fully supported the rollout of Walmart’s Global Replenishment System (GRS) in the southeast, while bottler, Vonpar, efficiently transitioned to Retail Link. The improvements we made throughout the year provide a solid foundation for success moving forward.

ACCURACY

3INVENTORY DELIVERY

Coca-Cola Life® arrived in Walmart Mexico stores in September, 2014. The beverage was launched in more than 95% of Walmart stores in less than ten days. Over 1,000 endcaps introduced Coca-Cola Life® to Walmart shoppers.

Page 22: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

The Share a Coke program got people talking and boosted sales in Walmart stores around the country, encouraging shoppers to not only purchase 20-ounce bottles for themselves, but also for friends, family and co-workers.

The Coca-Cola #shareitforward marketing program got teenage and millennial shoppers talking about Coke and Walmart, and sharing it across their social circles.

The program grew 20 oz. sales at Walmart by 47%. The growth doubled that of all other US grocers combined.

united states4,339 outlets • 41% of total global outlets

The Share it Forward campaign at Walmart won a

Gold Effie Awardfor shopper marketing effectiveness

#shareitforward

Page 23: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

United StatesFIFA World Cup TM

As part of our commitment to surprise and delight Sam’s Club members, we are providing more beverage choices than ever before with the launch of Coca-Cola Freestyle. The innovative Coca-Cola Freestyle machines were initially introduced at a Sam's Club location in Bentonville, AR in November, 2014. The machines are now in more than 30 Sam’s Club Cafés around the country. Coca-Cola Freestyle offers shoppers up to 125 different flavor varieties from the Coca-Cola sparkling and still portfolios and are a channel exclusive for Sam’s Club.

Sam’s Club and Coca-Cola partnered to introduce an EDLP meal solution exclusively for Club members. The Sam’s Club Fresh-n-Ready Pizza Pack, which included one 2L bottle of Coca-Cola or Diet Coke, cheesy breadsticks and marinara sauce, chocolate chip cookies, and a 16” pizza was tested in select Clubs. The offer was promoted in-store and online. Initial sales results were strong, and the program is scheduled to launch nationally in Q3 of 2015 in time for back-to-school.

TO

UNITED STATES

Together, Coca-Cola and Walmart launched the joint equity “Earn It” campaign that harnessed the spirit of giving during the holiday season. The spot featured a boy working odd jobs, including selling Coca-Cola beverages, to raise enough money to buy a bicycle at Walmart for his younger brother. The heartwarming video was shared on social media outlets including YouTube, Vimeo, Facebook and Twitter and was featured on the Today Show for capturing the meaning of the holidays.

Today, about everyone has a computer in their pocket or purse, and they’re using it to shop. The power that now lives in the hands of everyday customers is empowering them to shop differently – moving across channels and across screens.”

ANDY MURRAY SVP of Creative for Walmart

“Truth About Shopping” April, 2015

https://www.youtube.com/watch?v=kR7v1RJc9Lg

Page 24: category leadership Walmart Coca-Cola Walmart Annual Report.pdf · Effortless Meals ® and the FIFA World ... and winning at checkout with upgraded coolers that entice shoppers with

As we look ahead, we are committed to maximizing the

value of our portfolio to innovatively meet the needs of

Walmart shoppers around the world. Working together,

we will continue to redefine the retail landscape by

creating moments that help Walmart shoppers

live better every day.


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