Elite Romania New Business Development

1. Elite RomaniaNew Business Development knowledge, dissemination & embodyment Samoila Lavinia Concept Marketing&Sales

2. New Business development • Launch of Elite biscuits • Launch of Elite extruded snacks (bamba) • Launch of Premium nuts

3. Biscuits from Elite PROJECT DESCRIPTIONLaunch Elite biscuits under Merlin name as of Nov.1, 2004 (start of Sales to Trade) in Romania.

4. BACKGROUND • packed volume is estimated to min. of 24000t and max. of 32000t out of the total market of 72000t - (National Statistics, Production data). • Biscuit market is very atomized, with only one major player, Rostar that accounts for 25.4% of the volume (Nielsen, 2003) • There is very little media support on biscuits. Ulker has max. 400$M yearly investment, mainly behind promotions. In May 2004 it launched Tempo sandwiches, price competitive to Rostar (4500lei/pack), with radio support. • Biscuit shoppers are usually married women, with children, medium social class

5. LINE UP AND VOLUME OBJECTIVES • target for Y1 is 10% volume share of the packed market, i.e min. 2440t up to 3200t for 1st year • target for the 5th year of sales is 35% of total market, i.e. 25000t (upgrading of the bulk consumers to packed)

6. STRATEGIES • Concept is: crispy but shortbread, Merlin biscuits from Elite helps you taking care of your family. They are the positive force that reveals the magic from the ordinary things of daily life. • Superior product for a mid tier pricing, indexing 150 vs. Rostar • Continuous media support on the most interesting category: cream biscuits. • Have minimum 2 product initiatives/year. To note, next initiative should be launch of specialities Apr. 2005, with a second push for trial for Merlin brand.

7. MARKETING PLAN. PRODUCT Sourcing: Vel Pitar Product performance should be net superior to competition (i.e. Rostar), qualified through a 75:25 product test. • Petite Beurre: eaten as breakfast/ dinner (soaked in tea/ coffee/ milk). • 100g (to compete with 100g&140g packs on the market) • 240g (to compete with 300g packs) • Picnic (vanilla, cacao)/ Cream (chocolate, strawberries, vanilla): desert while in society. • 60g packs picnic (to compete with 65-70g) • 65g packs cream (to compete with 72-80g) Packaging: flow packs, transparent window &with natural colors.

8. MARKETING PLAN. PRICING • Create mid tier, ensure index 150 vs. Rostar/kg (imports are at index min. 200 vs. Rostar/kg) • 15% size discount on 100g vs. 240g • Less than 10000 lei/pack

9. MARKETING PLAN. COPY STRATEGY Benefit: Merlin “from Elite” helps you taking care of yourself and your family Reason to believe: crispy but shortbread (tender) Brand character: good wizard (positive force) that turns simple things into miracle (reveals the magic from the ordinary things) Target: women 25-55y.o. Core target: women 30-40y.o., with children, medium education, low to medium income

10. MARKETING PLAN. ATLObjective: min. 80% awareness, 50% trial by month 6

11. MARKETING PLAN. BTL In store promos & promos to generate trial: TURN SIMPLE THINGS FROM THE FAMILY LIFE INTO MIRACLE : a) buy 5 packs of Merlin biscuits, send packaging to Elite office & win (via ruffle): 10 trips with your family (5 persons, 3 days) to Disneyland: 35,000USD b) taste events in 15 top stores: 7000USD c) scratch cards with prizes: 8000USD - picnic baskets - tickets to Circus (500 persons) - Elite coffee/ cappuccino/ chocolate; Budget BTL : ~ 50$M

12. FINANCIAL PERSPECTIVE • Min. 2440t, i.e 4000$M Net Sales and 1250$M profit (at a 30% profit rate) in the first year, given 780$M marketing support

13. 2. Elite Bamba Launch Elite extruded snacks as of January 2005 (start of Sales to Trade) in Romania; continuous Marketing support will start 1 month later

14. BACKGROUND • Value is estimated to min. of 12MM USD to max of 15MM USD • Key competitors are Star Foods (Star, Krax, Loto)-48% value share; Standard (Oups)- 29% value share and Best (Lotto)- 13% value share • There is no media support on bamba.

15. OBJECTIVES • Target for Y1 is 30% share of the market, i.e min. 4MM USD up to 5 MM USD • STRATEGIES Dual communication directed to mothers (main buyer): healthy product and to kids (main consumer): taste Superior product for a equal price Continuous media support on the most appealing SKU. Have minimum 2 product initiatives/year.

16. PRODUCT Sourcing: Alimex Product performance should be net superior to competition (i.e.Star Foods), qualified through a 60:40 product test. Line up: salt, cheese, pizza, pea nuts, fruits Packaging: transparent window &with natural colors.

17. FINANCIAL PERSPECTIVE Min. 800t, i.e 4000$M Net Sales and 1600$M profit (at a 40% profit rate) in the first year

18. 3. Elite Delis Premium Nuts Launch Elite Delis premium nuts as of November 2004 (start of Sales to Trade) in Romania;

19. BACKGROUND • Volume is estimated to 300t, i.e 3MM USD • Key competitor is Fiesta (over 40% value share) • There is no media support on premium nuts.

20. OBJECTIVES • Target for Y1 is 30% share of the market, i.e min. 1MM USD • STRATEGIES • Communication under Delis: joyfull host that invites you to discussions with your friends • Superior product for a equal price to competition • Continuous media support under Delis umbrella.

21. PRODUCT Sourcing: Elite Investment Product performance is net superior to competition (i.e.Fiesta), qualified through a 60:40 product test. Line up: cajou, pistacchio, almonds, 50-100g bags

22. FINANCIAL PERSPECTIVE Min. 100t, i.e 300$M Net Sales and 100$M profit (at a 30% profit rate) in the first year