1. Insight Information in Category Management

2. Insight Information in Category Management Co-operation

7. Strong Market Positions Across the Region 2009 Finland FF # 1. (53 %) FB # 1. (39 %) FC # 1 (35%) Sweden FF # 2. (28 %) FB # 2 . (28 %) FC # 4. (8%) Denmark FF # 3. (15 %) Norway FF # 4. (10 %) The Nordic countries Fazer Food Services: 1. (28 %) Fazer Bakeries: 1 (18%) (fresh bread) Fazer Confectionery: 2 (15%) Baltics FF # 1. FB # 2. (16%) FC # 3. (>10%) Russia / FB St Pete # 1. (44 %) Moscow # 5. (~7%) Fazer Group

8. Over 50 FMCG retail and supplier customers Our FMCG supplier customers’ combined market share is over 70% in Finland. Comprehensive management system from strategic to tactical level • Advanced customer segmentation • Planning tools for category management processes, supplier collaboration and marketing • Corporate performance management, analysis and reporting systems • Product information maintenance • Consulting in customer insight Customer and trend insight for competitive advantage

9. Partnership

11. Fazer has many interfaces towards Kesko Food Optimal assortment and delivery accuracy towards K-food stores Best shelf availability and quality to consumers Seasons Campaings Novelties Demand analysis Assortment and spacem. planning Pro-curement Plano- grams Log. model Buying to WH Ware- housing Store Replenish-ment Delivery Instore logistics In store Pro-motion Customer service Buying Satisfaction, re-buying Several co-operation interfaces

14. Rolling 12 months partnership calendar Jan Feb March April May June July Aug Sep Oct Nov Dec Management Marketing Tactical Logistical . Tactics for the Christmas Tactics for the summer Locistical plans for the summer . Tactics for the autumn Insight information Locistical plans for the autumn . Tactics for the start of the next year Locistical plans for the start of the next year .

15. Partnership as a process Strategical level -top management Marketing level - Chain marketing Tactical level - Purchasing Operational level -Logistics, Sales field - projects - Main guidelines - Sources of differentation - Management Scorecards - Trade as a media - Marketing plans - Brand synergy - Assortment and Space Management - Activities - Business scorecards Feedback / Best Practices - execution

17. Fazer Confectionary’s Key Account Manager’s workbench Fazer Confectionary’s Sales Reps / Kesko Food’s information tools Kesko Food’s Customer segmentation Kesko Food’s Store Clusters by Chains Kesko Food’s marketing Plans by chains Kesko Food’s POS- data Fazer’s DW Mutual Scorecards And information tools Kesko Food’s DW Market reports And studies Observations And feedback From Sales Reps

19. Services for Kesko and suppliers Consumer trend modelling Product attributes (about 100) Product information Segmentations Planning tools and reporting Customer and category tracking Performance measures Expert services Assortment planning and pricing Marketing, campaigns, NPIs Portfolio management and R&D Store segmentations Customer segmentations Product information maintenance (30 000) products Training Consulting Support Customisation of reports

20. K-food stores use a set of unique structures and equipment for assortment planning Page 20 Food Styles – customer segmentation Store clustering Analyse² Galaxy – planning tool for assortments and pricing

21. Revised assortment structure Cluster based assortment Store size based assortment Formats nationwide assortment for chains Core assortment for K-food Store

22. Consumers buy product benefits Shopping behavior reveals important trends describe consumers’ needs and values, and their changes associated with product attributes: certain attributes certain trends Trends .. ...this product has less salt.... ...it’s good for my health... ...this brand I can trust....

23. Trends linked to Nordic Gourmet Quality New experiences and sensory Indulgence Strong brands

24. Nordic Gourmet trends in FoodStyle groups New experiences and sensory Quality

25. Customer emphasis for Nordic Gourmet

26. Nordic Gourmet trends in store clusters – FoodStyle groups are basis of store cluster assortments New experiences and sensory Quality

28. Thank you!