Adrian Terron, Executive Director, Nielsen India, Nielsen Retail & Shopper Team May 2013 TURNING INDIA INSIDE OUT

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 2 ADDITIONAL $3 BILLION USD FMCG SALES BY 2015 Driven by 2 segments LOW-INCOME VALUE EXPLORER FIRST-TIME MODERN TRADE SHOPPER L.I.V.E.F.T.M.T.S

L.I.V.E LOW INCOME VALUE EXPLORER

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 4 Source: NSS Nielsen Estimates INCOME UP TO RS 72,000 SOCIAL CLASS SEC E SIZE 10M + URBAN HHs L.I.V.E. CONSUMERS

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 5 ADDING +$1 BILLION USD FMCG SALES BY 2015 EVERY 6TH URBAN HOUSEHOLD IS “L.I.V.E” SPEND GROWS 50% TO $3.5B USD SPEND $2.4B USD ON FMCG

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 6 MORE CONFIDENT THAN SINGAPOREANS! Consumer Confidence Index

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 7 GROWING & EXPLORING 1 IN 2 SAW INCOME INCREASE IN IN 2 SWITCHED FROM UNBRANDED TO BRANDED 1 IN 4 EXPECT INCOME TO RISE IN 2013

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 8 DREAMING & DARING BELIEVE CHILDREN WILL HAVE BETTER FINANCIAL STABILITY 2 IN 3 COLOR TV & MOBILE PHONES 1 IN 5 ASPIRE TO HAVE A COOLER IN IN 4 SEND KIDS TO ENGLISH SCHOOL

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 9 SENSITIZED TO HEALTH… NOT SOLUTIONIZED CAN’T AFFORD TO GET SICK, STILL EXPLORING HOW TO STAY WELL AWARE OF IMPORTANCE OF SURROUNDINGS, WATER, SANITATION, & INFECTIOUS DISEASE 1 IN 2 NOT CONFIDENT MANAGING FAMILY MEDICAL EXPENSES 2 IN 3 NOT INSURED

Copyright ©2012 The Nielsen Company. Confidential and proprietary IN 5 SHOPPERS WILLING TO TRY NEW THINGS YET TO FORM HABITS +$1 BILLION FMCG SALES POTENTIAL INFLUENCED IN-STORE

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 11 NOT MODERN TRADE SHY 1 IN 2 HAVE VISITED MODERN TRADE SPENT CLOSE TO 5% OF HH BUDGET AT MODERN TRADE 5% OF MODERN TRADE SALES MADE BY LOW INCOME SHOPPERS

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 12 TACKLE INFLATION THROUGH VOLUME GAME

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 13 LOW CONSUMER CONFIDENCE MORE CONFIDENT THAN MIDDLE INDIA PLAN THEIR PURCHASESINDULGE IN IMPULSE MODERN TRADE SHY$120 MM USD TRADE SPEND IN MT PERCEPTIONREALITY AN UNCOMMON SENSE

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 14 Placeholder for video on L.I.V.E.

F.T.M.T.S FIRST TIME MODERN TRADE SHOPPER

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 16 ADDING ~$1 BILLION USD FMCG SALES BY 2015 EVERY 4 TH MODERN TRADE SHOPPER IS FTMTS MODERN TRADE GROWS +300% TO $1BN + USD SPENDS $280M USD AT MODERN TRADE

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 17 SIZEABLE, INCLUSIVE & GROWING 1 IN 3 FROM SEC C; MIDDLE SEGMENT SHOPPERS 35% OF FAST MOVING CONSUMER GOOD SPEND IS AT MODERN TRADE FIRS TTIME SHOPPER SEGMENTGROWING BY 15% EACH YEAR

Copyright ©2012 The Nielsen Company. Confidential and proprietary IN 5 SHOPPERS BOUGHT MORE THAN PLANNED EVEN PLANNED PURCHASES SEE SUPERSIZING +$100 MILLION FMCG SALES POTENTIAL INFLUENCED IN-STORE

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 19 EMPHASIZE PULL TO ENSURE SUSTAINABILITY PULL PUSH

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 20 F.T.M.T.S buys same brand as purchased at Kirana 1 in 2 switch brands Range is about more of more Range has different meanings across categories Personal care category purchases are planned 2 in 5 shoppers purchase on impulse PERCEPTIONREALITY AN UNCOMMON SENSE

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 21 Placeholder for video on F.T.M.T.S.

KEY RECOMMENDATIONS

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 23 WINNING WITH L.I.V.E 1 BUILD A BOND NOW Communicate brand benefits at point of sale to help L.I.V.E upgrade to branded products 2 WELLNESS WORKS Address L.I.V.E health needs to capitalize on their desire for well being 3 BIGGER CAN BE BETTER Help L.I.V.E. tackle inflation through bulk packs

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 24 WINNING WITH F.T.M.T.S 1 ENLIGHTEN ME Drive continuity through new products and premium-ization without impacting ease of spotting 2 SUPERSIZE ME Redefine ‘range’ for your category to facilitate either large packs or multi- pack purchases 3 INSPIRE ME Give me reasons to be your brand ambassador