Deutsche Bank Global Consumer Conference 2014

Transcription

1 Deutsche Bank Global Consumer Conference 2014 Imperial Tobacco Group PLC Paris 17 June

2 Alison Cooper Chief Executive 2

3 Disclaimer Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company s future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per share of the Company for current or future financial years will necessarily match or exceed the historical or published earnings per share of the Company. This announcement has been prepared for, and only for the members of the Company, as a body, and no other persons. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. 3

4 Our Priorities for 2014 Strengthening our portfolio Backing growth with increased investment in Growth Brands Growth Markets Returns Markets Fontem Ventures Building resilience cost optimisation stock optimisation programme 4

5 How Will We Win With Our Brands? Peter Corijn Group Marketing DB Conference June 2014

6 Marketing is: 1 Maximising benefits to consumers 2 Selling as high as possible and have consumers come back for more 6

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8 Agenda What are our goals and aspiration? Where will we play? How will we win in chosen markets? What capabilities must be in place to win? Source: Roger Martin Copyright 2000 Monitor Company, Inc. Confidential CAM 8

9 Consumer inspired, brand centric 9

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11 How big can our brands be? JPS Australia 13% UK 10% Germany 9% Davidoff Saudi Arabia 8% Taiwan 6% West Slovenia 18% Azerbaijan 17% GoB Algeria 18% Germany 6% Source: *Market Share & Size P6 YTD 11

12 How to Win? 1. We focus on 5 global brands: Davidoff, JPF House, West House, Gauloises, USA Gold, as per the global portfolio model. 12

13 JPF & West House are a chassis a chassis = a group of brands managed as one brand despite different brand names West West 13

14 Mainline 14

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16 How to Win? 2. Total Tobacco 10 Specialist Brands managed for value FMC Unique Proposition Fine Cut Specialist Cigar Mass Market Smokeless Papers Cigar Premium 16

17 21 30% 15 simplification 17

18 Benefits of Simplification Procurement Buying larger quantities of fewer items Manufacturing Longer runs of fewer brands/ fewer SKUs Marketing + Focus investment and effort behind fewer, bigger, better roll out initiatives faster across fewer chassis Sales Focus on driving 2+2 brands = better execution This simplification enables the 300m cost optimisation by

19 How to win? Brand Equity Innovation Drive superior consumer/shopper lead Brand Equity Simplification People Execution 19

20 So how are we delivering in equity? The Sales Growth Drivers 20

21 Gauloises Enjoy the freedom to be yourself 21

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25 Retail shop, Casablanca, May

26 Building Capabilities: One Agency 1 26

27 How to Win? Brand Equity Innovation Simplification Fewer, bigger, better initiatives. People Execution 27

28 Example Lead Brand Initiatives Specific to Cluster Demand Shifts Additive Free In Western Europe Freshness In Middle East Menthol in ASIA 28

29 Innovation in e-vapour (Fontem Ventures) Puritane Launched February 2014 healthcare channel brand launched at 2400 Boots stores marketing campaign started in April opportunities to expand in UK and internationally One more launch before year end Our strategy remains measured: regulation is developing working on patented technology 29

30 How to Win? Brand Equity Innovation Simplification People Execution Plan and execute migrations and SKU reductions, and the portfolio strategy. 30

31 Consumers get added benefits Equity Migrating = Focus Innovation Quality Availability 12 Migrations on track in FY14. More to come! 31

32 Migration Creates Value for ITG Value Brand with Migration Value Uplift Brand Migration Brand without Migration Time 32

33 Clear Portfolio Strategy ASSETS NON- ASSETS Growth (5) Specialist (10) Portfolio Brands All other total tobacco category brands in local ITG portfolios Now need to align Market priorities & management implications... 33

34 Portfolio Strategy Primary Secondary Cash Delist Migrate 34

35 How to Win? Brand Equity Innovation Simplification Build a world class Marketing Team People Execution 35

36 New Brand focused Structure Upgraded talent via internal and external recruiting 36

37 How to Win? Brand Equity Innovation Simplification People Improve the executional quality in everything we do: on time, great content Execution 37

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40 Alison Cooper Chief Executive 40

41 Our Priorities for 2014 Strengthening our portfolio Backing growth with increased investment in Growth Brands Growth Markets Returns Markets Fontem Ventures Building resilience cost optimisation stock optimisation programme 41

42 Deutsche Bank Global Consumer Conference 2014 Imperial Tobacco Group PLC Paris 17 June