think global, think global,

act localact local

DORNA SUCCESS STORYDORNA SUCCESS STORYRazvan TudorNon-Carbonated Beverage ManagerCoca-Cola HBC RomaniaMarch 18th , 2005

The story began in 2001The story began in 2001

ROMANIA BOTTLED WATER TYPES, 2001

BonAqua

BonAqua

# 5bottled water market

The story began in 2001 (cont.)The story began in 2001 (cont.)

Market Share

5%6%

32%28%

Mar

-00

Jun-

00Se

p-00

Dec

-00

Mar

-01

Jun-

01Se

p-01

Dec

-01

Mar

-02

Jun-

02

Numeric Distribution

35%30%

59%56%

Mar

-00

Jun-

00Se

p-00

Dec

-00

Mar

-01

Jun-

01Se

p-01

Dec

-01

Mar

-02

Jun-

02

Source: MEMRB Retail Audit

BonAqua

ED

BonAqua

ED

• 1st launched in Germany in 1984 – current No.1

• Sold in 38 countries under BonAqua name

• Launched in 1995 in Romania

• Marketing support

• Category extension –BonAqua still in 2001

• 1st launched in Germany in 1984 – current No.1

• Sold in 38 countries under BonAqua name

• Launched in 1995 in Romania

• Marketing support

• Category extension –BonAqua still in 2001

BonAqua

BonAqua

Bottled water market: TRADITIONBottled water market: TRADITIONnatural mineral water

natural mineral water

•• great tastinggreat tasting

•• thirstquenchingthirstquenching

•• healthyhealthy

•• trustworthytrustworthy

•• high qualityhigh quality

•• naturalnatural

•• balancedbalanced

•• purepure

•• 3 main players for almost 60% of the market3 main players for almost 60% of the market

•• 21 players struggling for 40% of the market21 players struggling for 40% of the market

2001: DECISION2001: DECISION

24 PLAYERS in Natural Mineral Water Category

Water market

Water market

CARBONATED STILL

Balanced natural mineral water, naturally carbonated

Rich natural mineral water, naturally carbonated, bold taste, 2 version of carbonation

Natural mineral water, oligomineral characteristic

full water portfolio

full water portfolio

2002: DORNA ACQUISITION2002: DORNA ACQUISITION

Challenge: BRANDING BOTTLED WATERChallenge: BRANDING BOTTLED WATER

•• colorlesscolorless

•• odorlessodorless

•• tastelesstasteless

water is unique

water is unique

product

• To be extracted from an unpolluted / clean mountain area

• Not to have a particular taste

• Not to have a particular smell

• To be clean / not to contain impurities

• To have an equilibrate mineral content

• To be extracted from an unpolluted / clean mountain area

• Not to have a particular taste

• Not to have a particular smell

• To be clean / not to contain impurities

• To have an equilibrate mineral content

package

• To have a distinctive / easy to recognize:

• Distinctive and appealing shape

• Pleasant color

• Appealing label

• Transparent bottle so as the product to be visible

• Practical package / easy to carry

• To have a distinctive / easy to recognize:

• Distinctive and appealing shape

• Pleasant color

• Appealing label

• Transparent bottle so as the product to be visible

• Practical package / easy to carry

price

• Offering good value for money –rather “medium price”

• Offering good value for money –rather “medium price”

IDEAL MINERAL WATER

portraying the ideal

portraying the ideal

mineral water

mineral water

Question: WHAT ARE WE LOOKING FOR?Question: WHAT ARE WE LOOKING FOR?

•• extrinsic attributeextrinsic attribute

pure emotionpure emotion

•• intrinsic attributeintrinsic attribute

trusted source from protected areatrusted source from protected area

premium brand

premium brand

TVC 1

Communication: DORNA 2003Communication: DORNA 2003

TVC 2

•• extrinsic attributeextrinsic attribute

emotionemotionslogan: Dorna brings the nature into the cityslogan: Dorna brings the nature into the city

•• intrinsic attributeintrinsic attribute

naturalnaturalpremium brand

premium brand

Communication: DORNA 2004Communication: DORNA 2004

TVC

premium brand

premium brand

• Integrated campaign drove sales in excess of 50% v YA

• National outdoor campaign-walls, back-lit billboards (3 motifs)

• POS communication

Communication: IZVORUL ALB 2004Communication: IZVORUL ALB 2004

TVC

premium brand

premium brand

Execution: EXCELLENCE & INNOVATIONExecution: EXCELLENCE & INNOVATION

TVC

With Food

Modern market activationWith wine-Restaurants

With wine-Home

racks

Value for money – Increase

transaction size

TVC

Sport

Dorna at the end of Y 2004Dorna at the end of Y 2004

Dorna Volume [M uc]

13,67313,67314,565

22,200

25,322

2000 2001 2002 2003 2004

Market Share

20%

10%

20%

32%

19%

15%

Jan-

02Ap

r-02Ju

l-02

Oct-02

Jan-

03Ap

r-03Ju

l-03

Oct-03

Jan-

04Ap

r-04Ju

l-04

Oct-04

Jan-

05

Value Share

28%

14%

20%

31%

21%16%

Jan-

02Ap

r-02Ju

l-02

Oct

-02

Jan-

03Ap

r-03Ju

l-03

Oct

-03

Jan-

04Ap

r-04Ju

l-04

Oct

-04

Jan-

05

Numeric Distribution62%

23%

60%

59%

60%44%

Jan-

02Ap

r-02Ju

l-02

Oct

-02

Jan-

03Ap

r-03Ju

l-03

Oct

-03

Jan-

04Ap

r-04Ju

l-04

Oct

-04

Jan-

05

• Dorna brands leads bottled water market (market & value share)

• Izvorul Alb lead still water market (27% market share / 36% value share)

Source: MEMRB Retail Audit

Dorna

Borsec

ED

Dorna

Borsec

ED

Dorna

Borsec

ED

+14.1%

+62.4%

The key of success: INTEGRATIONThe key of success: INTEGRATIONCoca

Coca-- Cola portfolio

Cola portfolio

•• CocaCoca--Cola distribution networkCola distribution network

•• inin--store cooling spacestore cooling space

•• premium brand communicationpremium brand communication

•• investment in productioninvestment in production

capabilitiescapabilities

Future: DORNA BRANDS FAMILYFuture: DORNA BRANDS FAMILY

TVC