Global Aluminum Bottle Program Overview and guidelines · l — y Functional and emotional research...
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Confidential —For Internal Use Only Global Aluminum Bottle Program Overview and guidelines
Transcript of Global Aluminum Bottle Program Overview and guidelines · l — y Functional and emotional research...
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Global Aluminum Bottle Program Overview and guidelines
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A dedicated program …
… to develop a clear, cross
functional business strategy and
identify the ideal business
opportunities to develop,
commercialize, and launch the
Aluminum Bottle innovation globally.
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OPPORTUNITY TECHNOLOGY
VALUE CHAIN
Program Scope
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SUPPLY CHAIN
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Current in-market technologies
Closure:
Std Crown Cap or
Maxi-P (Ring-Pull)
Price = $0.01
Bottle Manufacturer:
Ardagh/Boxal
(Beaurepaire, France)
Price:
= €0.242 (~$0.32)
Main Markets:
Europe, Australia
Filling:
Begano, Spain
Converted Glass lines
Bottle Weight
~23.5 gms
Capex:
High Speed
Shaping
~$8 MM
Throughput:
~300 bpm
~2.3 MM cases
~67 MM bottles
2012 KO Use:
43 MM bottles
Bottle Weight
~37 gms
Capex:
Index (Slow)
Shaping
~$4 MM
Throughput:
~120 bpm
~1.5 MM cases
~36 MM bottles
KO Use 2012:
9 MM bottles
Boxal IE (Impact Extruded) Exal C2C (Coil 2 Can)
Closure:
ROPP (Roll-On) or
Twist-off cap
CSI (Japan) = $0.04
Silgan (USA) = $0.03
Bottle Manufacturer:
Exal (Youngstown, OH)
Price:
2012 = $0.25
2013 = $0.20
Main Markets:
USA
Korea
Latam
Filling:
Truesdale, MI
Seoul Korea
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A detailed technical toolkit has been developed for local implementation
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Contact Raj Gopalaswamy in Global
Packaging to obtain the latest toolkit
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The OPPORTUNITY
-
500
1,000
1,500
2,000
2,500
3,000
Current 10 MMCases
25 MMCases
50 MMCases
100 MMCases
MM
Bo
ttle
s
Opportunity Sizing
Positioning & Pricing
Commercial strategy
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To identify the opportunity and pricing potential we have several linked research paths in progress
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Emotional Conjoint
Study
Pricing Study by
Channel / Occasion
Functional & Emotional
Benefits study
What Why
Measure consumer
preference for the package
and its differentiating
equities
• Preference vs other packages
by target consumer groups,
occasions and channels
• Develop customer selling story
Validate equities from first
study and determine the
package demand curve as
a function of price increments
• Provide data points for
customer selling story and
package strategy
• Understand pricing potential
across target consumer
groups, occasions and
channels
Assess market opportunity
in eating and drinking
channels across the broader
beverage category
• Data points for refining
opportunity assessment and
customer selling story
• Identify cross-category
opportunities to activate
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Functional and emotional research
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OBJECTIVE: Measure consumer preference for
the Aluminum Bottle and its differentiating
equities that are functional (feel, ease of
use, etc.) and emotional (cool, premium,
etc.) across six stimuli in North America
Emotionally, the Aluminum Bottle evokes
Cool/Hip, Unique, Fun, Fashionable/Stylish,
Happy, Exciting, Distinctive, Youthful,
Approachable, Authentic, Friendly,
Contemporary/Modern and Premium
Functionally, the Aluminum Bottle
communicates Expensive more than the brand,
indicating it may be worth a higher price.
For complete North
American research
See file:
Project Zebu – Final
Debrief
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Broadening & sizing the Alu Bottle reach
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Markets currently in exploring or activating the package
Estimated opportunity*
Based on available data,
assumptions and estimates
long term opportunity
estimated to be distributed
as follows:
Implications: Smaller bottle
manufacturing operations
based regionally
South America
39%
EU 30%
Asia* 16%
Other* 12%
*Excludes China and NA
*Estimated Aluminum bottle program in place
Gen 1 or 2
Active trial/in progress for a Gen 2
program
Discussions underway
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OPPORTUNITY SIZING: Background and objective
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• Estimation of the potential future volume for the Aluminum Bottle for Coca-Cola
TM, Diet Coke TM and Sprite TM
• Evaluated the opportunity for the new Aluminum bottle using multiple lenses for
the following 38 markets
Top 32
1. USA
2. Canada
3. UK
4. France
5. Germany
6. Italy
7. Spain
8. Australia
9. Korea
10. Japan
11. Argentina
12. Brazil
13. India
14. Mexico
15. Singapore
16. South Africa
17. Turkey
18. Nigeria
19. Russia
20. Greece
21. Poland
22. Switzerland
CSE & CCHBC
23. Armenia
24. Austria
25. Belarus
26. Czech Republic
27. Hungary
28. Northern Ireland
29. Romania
30. Slovakia
31. Ukraine
NWEN
32. Belgium
33. Denmark
34. Finland
35. Ireland
36. Netherlands
37. Norway
38. Sweden
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2011 Total Unit Case Volume Glass + Aluminum Bottle + Plastic + Aluminum Can
(all 38 countries)
The approach used to determine volume potential
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1
<24oz <13oz
X,XXX mUC X,XXX mUC
+ Replacement of Fountain Drinks in
Pubs/Hotels1
X mUC
Filter by Immediate Consumption
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<24oz <13oz
XXX mUC XXX mUC
Filter by Immediate Consumption + HORECA
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<24oz <13oz
XX mUC XX mUC
Aluminum Bottle Volume Estimate Replace 50% of Glass Bottle Volume
Replace 25% of Aluminum Can Volume
+ Capture 10% of remaining HORECA volume
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<24oz <13oz
XX mUC XX mUC
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1) Fountain Drink Replacement based on % of Fountain Drinks in Pubs/Hotels for USA and
the same % across other markets
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A scenario tool has been developed by K&I to help in determining the size of the opportunity in each market
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See file: 120802 Aluminum bottle scenario v1.3.xls
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OPPORTUNITY: Long term vision
Core Iconic
Package Properties Special
Editions
Current
Potential
Expansion
Other Brands
Recruitment
Future Celebrities
Partnerships
Other sizes?
Other categories?
Integrate into brand
activation plans
Channels
Targeted retail
Premium On Premise
Night Clubs
Online?
Professional
& college
sport teams?
Individual
Customization
(á la M&M’s)
Customer
Specific
Exclusives
New approaches / business models 13
New
appro
aches / b
usin
ess m
odels
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North America Aluminum bottle Repositioning &
Expansion “Premium Mainstream”
Package Expansion FSOP Expansion
• Range: Luxury to Upper-Midscale • Range: Fine dining to Fast Casual • Amusement/Leisure/Rec
• Club (in & out) • Large Store (in & out) • Specialty Retail
Channel Expansion
• Seagram’s Ginger Ale • 24pk in Club • 6pk for Large Stores
Strategy: Permanent FSOP program
Strategy: Special in & out large store program
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Permanent program
• Upscale Horeca
• Outlets not currently served (eg. Boutiques, upscale offices)
In-out programs
• Commemoratives
• Designer/music limited edition
• Seasonal (4-6 weeks activation) in upscale non permanent outlets
Activating the Aluminum bottle in “premium mainstream”
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Principles of Aluminum Bottle activation
What it IS
• Highest price per ounce
• Brands: Coca-Cola, Zero, Diet/Light, Sprite, Ginger ale
• Special
• Availability in limited (premium) channels/outlets
• Vehicle for graphic flexibility in high end channels
• Used for in-and-out promotions (4-6 weeks) If in upscale large store it must be min 6-pack
What it is NOT
• Never on deal to consumer
• Not comparable to existing
SKU’s
• Commoditized
• Not available everywhere,
especially not in ‘value’ and
large store outlets
• If in upscale grocery, never
on shelf in the beverage aisle
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In the NA the aluminum bottle is the most premium package/ounce
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Per Ounce Retail Price Comparison by Package
Value Entry Frequency Value Frequency Value Premium Premium
Size
32oz
Fountain
12.5oz
Core 16oz Core
20oz
Flavors 20oz Core 1L 8oz Glass 8.5oz Alum
32oz
Fountain (1.00) (11.91)
12.5oz (1.00) (3.71)
16oz
Core (1.00) (3.95)
20oz
Flavors (1.00) (4.94)
20oz
Core (1.00) (3.48)
1L (1.00) (5.00)
8oz Glass (1.00) (2.20)
8.5oz
Alum 11.91 3.71 3.95 4.94 3.48 5.00 2.20 (1.00)
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VALUE CHAIN: Gen 2
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Current Potential
$ /
Cas
e (
to D
C)
FreightPlant FixedPlant VariableIngredient CostsPackage Costs
$2+ / case
o Detailed North America cost breakdown; template for rest of world
o Clear line of sight to Gen 2 bottle cost
Contact Liz Gorski to obtain detailed value
chain analysis
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