METRO Cash Carry Russia Instore marketing of Fish

METRO Cash & Carry Russia – In-store marketing of Fish and Seafood Moscow, October, 28 th, 2010 Copyright © 2009 METRO Cash & Carry International Gmb. H Member of METRO Group

Agenda 3 METRO Cash & Carry Russia 6 Customers and assortment 8 Our marketing strategy for Fish and Seafood METRO Cash & Carry International Gmb. H 2 Member of METRO Group

METRO Group – general data METRO Group is in TOP 500 World’s largest companies (Fortune Global 500) METRO Cash & Carry International Gmb. H 3 Member of METRO Group 3

METRO Group – general data METRO Cash & Carry – international leader in wholesale trade Over 670 stores in 31 country of the world* Total trading space - 5, 3 mio sq. m More than 106 thousand employees Sales in 2009 € 31 bln * As of 23 March 2010 г. METRO Cash & Carry International Gmb. H 4 Member of METRO Group 4

METRO Group – general data METRO Cash & Carry in Russia Sales in 2009, bln euros Employees by 01. 10. 2010 Quantity of METRO Cash & Carry stores by 01. 10. 2010 2, 6* 13 000 52 5 Member of METRO Group * Calculated based on local currency to eliminate exchange rate distortions METRO Cash & Carry International Gmb. H

METRO Cash & Carry Russia – customers METRO Cash & Carry‘ CUSTOMERS Ho. Re. Ca METRO Cash & Carry International Gmb. H TRADERS 6 Offices, service companies, etc. Member of METRO Group

METRO Cash & Carry Russia – assortment strategy DESTINATION PREFERRED CONVENIENCE SEASONAL/ OCCASIONAL Category role: Destination Ø Category very important for the key customers Ø Category for which the seller is seen as the best possible source Ø “If I shop in this category, I go there” Ø Category for which METRO aims for an above average market share Ø Dedicated METRO resources for this type of category METRO Cash & Carry International Gmb. H 7 Member of METRO Group

METRO Cash & Carry Russia - Fish marketing strategy Destination category’s functions: ØTraffic building Ø Excitement creation Ø Image creation Strategic elements of Destination Department Product Place Price Promotion Full assortment Optimal placement Leader High level of activity Best choice in market Large space Best value for the customer Frequent advertising Sub-categories High customer frequency Multiple channels Strong segmentation Long contact time Individual adjustment All brands/articles METRO Cash & Carry International Gmb. H 8 Member of METRO Group

Product CUSTOMER FEEDBACK ASSORTMENT OWN BRANDS QUALITY Assortment group Quality strategy Own Brand Positioning Chilled fish No compromise ARO First price Delicatessen fish and caviar First price assortment + top quality assortment Ho. Re. Ca Select Value brand professional solution for Ho. Re. Ca customers Frozen Fish Shift to high quality assortment Fine Food Quality value brand *Supplier must conform to the IFS or GFSI standards METRO Cash & Carry International Gmb. H 9 Member of METRO Group

Place Scales Water Tanks Processed salmon, trout (steaks, medallions) River / Sea fish fillet Sea whole fish 127 SKU of chilled and alive fish River whole fish Professional main flow METRO Cash & Carry International Gmb. H 10 Fish Delicatessen (self service) Salmon, trout Exotic fish Oysters, prawns Private needs flow Member of METRO Group

Place Alive goods Sea Sea Sweet Sweet Ø Exotics sold by eyes and by smell Ø Full load of the aquariums Ø Lighting of the water tanks Ø “Meet your meal” METRO Cash & Carry International Gmb. H 11 Member of METRO Group

Place Delicatessen goods Planogram’s functions: • Guiding the customer • Selling the store-focus goods • Moving the sales • Helping to track the stock • Increase of impulse sales Ø Strong competition in Delicatessen subcategory Ø Vast quantity of the suppliers Ø Abundance of alike goods Ø Own Brands control mechanism Ø Control of the store staff Ø Common storage conditions METRO Cash & Carry International Gmb. H 12 Member of METRO Group

Pricing Ho. Re. Ca: Ø Flexibility (daily price changes) Ø Not branded goods Ø Availability of goods and reliability of prices Trader: Ø Assortment sustainability Ø Weak brand dependency Ø Bulk offers Ø Competitiveness SCO: Ø Assortment sustainability Ø Brand dependency Ø Competitiveness METRO Cash & Carry International Gmb. H 13 Member of METRO Group

Promotion INCREASE NUMBER OF CUSTOMERS PROMOTION INCREASE CUSTOMERS’ LOYALTY ATTRACT NEW CUSTOMERS Ø Specialized catalogues Ø “Crazy price” promotion Ø “Dokazano” (Proved) promo Ø Own Brand catalogue Ø Customer-targeted Metromail Ø BTL means (master-class, degustation) Ø POS-materials to support Own Brand customers METRO Cash & Carry International Gmb. H 14 Member of METRO Group

Contact Andrey Ignatov Category manager Fish & Seafood METRO Cash & Carry Russia Leningradskoe Shosse, 71 G 125445, Moscow Russia Phone: +7 (495) 981 -18 -45 Fax: +7 (495) 502 -13 -02 Andrey. Ignatov@metro-cc. ru © Copyright This concept is intended only for the purpose of presentation and is the intellectual property of METRO Cash & Carry Russia. Passing on to third parties as well as the use and exploitation of the presentation either in whole or in part is expressly forbidden. METRO Cash & Carry International Gmb. H 15 Member of METRO Group