Serve the Underserved GLOBAL ENTERPRISES - LOCAL BUSINESSES - CONSUMERS Empower consumers with communications and drive sustainable economic development with medium and small businesses Powered by 06 - 20 - 2012 Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 Introduction: What is Soli? A multi-device, loyalty and marketing platform for Coca-Cola that work with small businesses Global brands drive sales via loyalty networks of small businesses and consumers Brands offer relevant inducements to enroll and content for ongoing engagement Small businesses receive a free, multi-brand loyalty program with sponsored offers Consumers redeem offers for discounts, free airtime, content or social services Operators drive incremental revenues with existing network infrastructure Soli operates in over 140 markets, has one patent approved and two pending Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 2 Market Opportunity Emerging markets and small businesses represent the largest opportunity for incremental retail growth “ITU is committed to connecting all the world’s people” Many of the world’s people cannot afford to communicate freely Soli leverages ITCs to enable development via communications and commerce Soli works with world leading brands to enable sustainable economic development in emerging markets via medium and small businesses Soli’s model subsidizes consumer cost of communications, social services and provides digital literacy through training Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 3 Global Retail Market Emerging markets represent the largest incremental retail growth opportunity Emerging Markets $2.5T USD Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 4 Consumer Communications Most consumers in emerging markets do not have Internet access A global solution must support Non-Internet and Internet users Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 5 Global Grocery Market Medium and small businesses dominate market share in emerging markets Medium and small businesses also represent a major share of advanced markets Penetration of Traditional Trade Percentage of grocery sales via 2010 traditional trade 2010 Percent grocery sales via modern trade, 98% 100% 90% 88% 78% 80 70% 59% 60 52% 52% 40 32% 29% 19% 20 16% 0 India Vietnam Indonesia Philippines China Turkey Brazil Russia Nascent/taking-off Consolidating Primarily fragmented retail: individually owned single-store entities with low channel specialization Significant share of organized trade; greater corporatization, mainly by general merchandisers US UK Germany France Mature Dominant share of organized trade; very high specialization by channel, category and format Sources: Euromonitor; IMF and National Statistics Office; UN; Bain experts Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 6 Medium and Small Business Channels Small and medium points of sales are a major opportunity for ITU development General Stores Restaurants Grocery Stores Market Stalls Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 7 Soli Opportunity WHAT IS SOLI? AND CASE STUDIES Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 Market Demand Soli has established partnerships with some world leading brands and agencies Brands can promote non-competitive adjacent marketing partners to add value Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 9 Global Market Demand Local markets have implemented Soli as a global standard Brands include: Coke and Hershey’s with L’Oreal, ExxonMobil and InBev in process Live (including Olympics) Active Demand Micro-Loyalty Demand Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 10 Case Study: Coca-Cola Mexico Soli enables consumers earn Coke sponsored rewards from neighborhood shops Business to Business to Consumer Loyalty 1. Activation: Shopkeepers register their store, receive their user name and display in-store notices to inform consumers 2. Engagement: Consumers register with the shop and shopkeeper selects which offers they promote to registered shoppers 3. Transaction: Shoppers choose their offers upon check-in and validate purchases at checkout Registration Pilot Results (3 Months): Shopkeepers: 85% of shopkeepers register Shoppers: Avg. 50 registered shoppers per shop Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 11 Case Study: Coca-Cola Mexico Awareness is generated with traditional collateral Shopper Engagement Retailer Engagement Deliverables ✓ Hangers ✓ Flyers and posters ✓ Fridge stickers ✓ Shopper website Deliverables ✓ Promotion Plan ✓ Shop onboarding plan ✓ Call to action and triggers ✓ Website ✓ Sales force manual incl. annual promo plan Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 12 Case Study: Coca-Cola Australia Soli enables consumers to earn rewards by integrating Coca-Cola’s website with SMS Business to Consumer Loyalty 1. Activation: Consumers sign up with Coca-Cola 2. Engagement: Consumers receive an offer from Coca-Cola and go to their local store to purchase 3. Transaction: Consumers purchase products and enter in-pack codes to earn rewards !."' ) H+(()$I#(4I:5)) 6# &8)&84#/:4)!%/8( (@(#7)4&7G !"#$%&'() &) *+,-.) /#) 0,,-.) 1$/$&2$/.&3) !#/4"$5) 6/#) 7/"#) $%&8$() 5/) 9:8) ;) /6) <) -/5/#/.&)6.:!/"5=)!%/8()!&$>&?(')(@(#7)4&7A)6:84)7/"#)"8:B"()$/4()/8)5%()C&$>)/6) .&C(.')&84)'-')5/);DE);DE)/#)(85(#)/8.:8()F)$/>("8.(&'%(4A$/-A&" /66(#)&@&:.&C.()/8)$/$&2$/.&J)$/>()K(#/)&84)4:(5)$/>( Simply visit www.cokeunleashed.com.au and enter the unique code online, or submit the unique code via SMS to 195195* (Max. SMS cost 25c per msg. Help desk: 1800 006 552). *You must register for the ‘Coke Unleashed’ program to enter this ‘Coke Unleashed’ instant win competition. If you haven’t registered & you send a unique code by SMS, you have 72 hrs to register at the website, otherwise the unique code will be invalidated & you will not be entered into competition. SMS entrants require a mobile with premium SMS access. U18s need parent/guardian consent, or if entering by SMS the bill payer’s. Conditions for the program & competition apply: see the website. Open to eligible Aust. residents 13+. Competition starts: 1/11/10. Ends: 24hrs 31/01/11. Sydney time applies. Limit 10 entries per week. 9L[HPU\UPX\LJVKLZMVYHSSLU[YPLZ7YPaL!46;6963(-3076<;^P[O46;6)3<9OHUKZL[YYW HWYLWHPK=VKHMVULJYLKP[WYPaLZWLYKH`PU[V[HS>PUULYZW\ISPZOLK!HSSVUSPUL"=0*:(PU;OL(\Z[YHSPHU7YVTV[LYPZ*VJH*VSH:V\[O7HJPÄJ Pty Ltd (ABN 50 003 029 794) L9, 40 Mount St., Nth. Sydney 2060. (INSERT PERMIT NUMBERS) ‘Coca-Cola’, ‘Coke Zero’, ‘Diet Coke’, the Contour Bottle, the Dynamic Ribbon device, the Grip & Go bottle and ‘Coke Unleashed’ are trademarks of the Coca-Cola Company. Results (17 months): Unique Users: 522,922 to date Sales: 4,483,450 units to date Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 13 Case Study: Coca-Cola 2012 Olympics Soli powers Coca-Cola branded product, sports or music content preferences Business to Consumer Engagement 1. Activation: Global consumers register with the Coca-Cola campaign via SMS, App or Home Page 2. Engagement: Consumers choose to receive offers, sports or music content 3. Transaction: Consumers receive content optimized according to their device Campaign Markets: Canada • United States • Mexico • Colombia • India • Russia • China • South Africa • Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 14 Our Platform GLOBAL ENTERPRISES - LOCAL BUSINESSES - CONSUMERS Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 How Soli Works Leverage existing media and distribution systems to activate networks of small business and consumers that emulate the scale of modern, mass retail Brands add a simple call to action to their media and merchandising collateral Distributors register business owners to activate the small business network Small businesses promote consumer loyalty via personalized in-store media Loyalty adds value to small business’ trust and convenience advantages Consumers accumulate value with ongoing engagement and transactions Brands build proprietary audiences that are managed by existing agencies Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 16 Platform Overview Established and proven turn-key platform Brand Campaign Creation Brand Reporting Analytics Cloud Based User Interface ✓ 20+ campaigns Mobile Operators executed globally Local Business ✓ Pre-integrated with Coca-Cola systems Campaign Management Loyalty Points System Rewards Management End User Preferences Carrier Gateway ✓ Passed Coca-Cola Social Media security scan ✓ Compliant with MMA Guidelines ✓ Compliant with Apps Coca-Cola Marketing Requirements ✓ Global reporting for Server Management, Connection and Security campaign results comparison Websites Consumer IM Brand Analytics Brand Loyalty Brand CRM Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 17 Loyalty Program Overview Unique loyalty ecosystem developed for easy integration Brand Campaign Creation Brand Offers & Rewards Campaign Messaging Offers & Rewards Mgmt Customer Opt-in List Alert Scheduling Offer & Rewards Selection Offer Redemption ✓ Previous executions in the US and Mexico ✓ Average 50 unique Local Business registered shoppers per shop ✓ Real-time Store Preferences Offer Opt-in performance feedback Offer Redemption Network Operators Consumer Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 18 User Experiences GLOBAL ENTERPRISES - LOCAL BUSINESSES - CONSUMERS Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 Enterprise Interfaces Global brands underpin multi-modal campaigns with consumer loyalty Brands use simple web-based tools to manage content, offers and analytics Global Campaign Management Multimedia Management Real-Time Analytics Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 20 Small Business Interfaces Businesses use SMS and web-based tools to register and manage their shop Business owners personalize sponsored offers and rewards for local relevance From: 23421 MyCoke Shop ID: 003 Reply: “ID” to change shop ID. “CLUB” for total users, “TOP” for top 5 loyal users, “OFFERS” for offers of the week, “REW” for rewards SMS Smart phone Web Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 21 Consumer Interfaces Multi-device compatibility optimizes brand experiences across markets Consumers easily manage branded content, offers, social referrals and rewards From: 23421 Congratulations, you have joined MyCoke and linked to shop 003. Reply “MENU” to see content options, “BAL” to get points history, “PTS” for rewards or “OUT” to quit SMS Smart phone Web Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 22 Soli Global Rewards Consumers and local businesses accumulate value across brand campaigns Brand Points Content Airtime Social Services Mock-up of Soli Channel plug-in with Messenger and media player Private & Confidential, Growth & Emerging Markets, LLC 2012 Wednesday, June 20, 2012 23