EKULO INTERNATIONAL LIMITED & GROUP OF COMPANIES

Nigeria • Is the worlds 7th largest population (170 million) and the geography is twice the size of California•Has a nominal GDP of $ 238.9 billion•GDP percapita is $ 2,600 (2011 est)•GDP growth in 2011 was 7.2 %•Inflation at 10.8 %•Bank lending rates 16.02 %• Middle class is 20% of population•Purchasing power parity $418.7 billion

Nigeria - SWOT

Proven oil reserves of 37.2 billion barrels and projected to grow to 3 billion barrels

Consistent growth in Cocoa productionGrowing natural gas productionMature and stable democracy

Low foreign exchange reservesCurrency vulnerable to devaluation

Lack of working capital in trade

One among the fastest growing economies in the world

GDP set to double by 2016Vibrant and growing middle class

Forging partnerships built on trust and commitment…

Importing high quality

products into West Africa

Our existence depends on

service to our customers

Adhere to all laws of

commerce

Practice Corporate Responsibility

Share in marketing

campaign cost

Consultation on business

partnership agreements tor

Nigeria and Ghana

EKULO GROUP OF COMPANIES

1984 – 2012

28 years

CEO Emma Bishop Okonkw

o

BRANDS EKULO DISTRIBUTEGOYA

BLUE DIAMONDVEUVE CLIEQOT PONSARDINJP CHENET WINECANTI WINEVERDI WINEMILTON LLOYD FRANGRANCESCLEAR ESSENCE COSMETICSTCB HAIR RELAXERROYAL CROWN SHAVING POWDER

Major Supermarkets Clients

ShopRite-Lagos, Enugu, Abuja

SPAR Park N Shop-Lagos, Abuja

Goodies-Lagos

Amigos-Abuja

Exclusive-Abuja

Everyday –Port Harcourt

Grand-Abuja

Legend -Abuja

Bestway –Port Harcourt

Roban- Enugu

Esco- Warri

NIGERIAN RETAIL FOOD SECTOR

DESCRIPTION SUPERMARKET

CONVENIENCE TRADITIONAL

Average Size (sq ft)

5,ooo-10,000 200-1000 50-100

Number of Outlets

60 600,000 4,000

Market Size Served (%)

1 34 65

Average Annual Turnover ($)

2.5 million $50,000 Approx $4 million total per location

Location Urban Urban 3:2 (urban to rural, respectively

Stock Level Full Line Full Line Very Limited

Service Method Self Serve Self/Assisted Assisted

The strategy

Availability , Accessibility & Affordability

Vision

ViabilityVisibility

Ekulo GroupValue added supply chain management

Partner Brands

Consumer Marketing Production Supply and Pricing Market Logistics

•Warehousing• Local Freight

Trade Marketing•Localizing and executing BTL activities•Local POSM•Channel programs•Merchandising•Promotional calendar

Key Account Management• Modern Trade Self Service retailers•Availability•Visibility•In store promos

Channel Operations•Distribution across all channels• Direct retail redistribution• Management•Merchandising•Coverage planning•Executing initiatives

External Relations•Registration•Government Relations•Brands reputation•Counterfeit

PRINCIPAL EKULO GROUP

Ekulo Distribution – SCOPE OF SERVICES

Nigeria – Market Characteristics

Intense competition Working capital in trade Wholesale and key accounts are highly credit

driven Credit ranging from 21 to 45 days Local borrowing cost - 24 % per annum Vibrant and growing middle class Open market economy – minimal import

restrictions , peak duty at 20 % , Vat – 15 % Nigeria is a founding member of ECOWAS and a

signatory to ECOWAS Common External Tariff (CET) agreement.

•RESTURANTS•NIGHT CLUBS•HOTELS

•MEDIUM•SMALL•KIOSKS•TABLE TOPS

•HYPER MARKETS•LARGE TRADITIONAL•FUEL MARTS•PHARMACIES

•WHOLESALER•SPECIALITY WHL SALE•SEMI WHOLESALER•OTC RETAIL•TABLE TOPS

OPEN MARKETS

KEY REATIL OUTLETS

SPECIALITY &

B 2 B

TRADITIONAL RETAIL

Nigeria– MARKET LANDSCAPE

EKULO

CREDIT(Pre

Selling)

Sub

Distributor

Re Distributio

n

Wholesale

Key

Wholesaler

Semi Wholesaler

OTCRetail

OTC Table tops

General Wholesaler

Key RetailAccounts

SuperMarkets

Fuel Marts

Pharmacies

LT/MT

CASHTraditional

Retai

Medium Traditional

Small

Kiosk

Ekulo Distribution - ROUTE TO MARKET

Wholesale

DEDICATED REP(S) PER OM

TWICE/THRICE A WEEK COVERAGE PER WHOLESALER

VIBRANT CREDIT TERMS – UPTO 21

DAYS

COMPETITIVE CHANNEL DISCOUNTS

DELIVERIES AT CUSTOMER DOOR

STEPS

REGULAR MARKET ACTIVATIONS AND VISIBILITY DRIVES

ADDITIONAL IN MARKET REPS TO

SERVICE SEMI WHOLESALERS AND

RETAILERS IN OM

STOCK NORMS AND ANNUAL BUSINESS

PLANS

QUARTERLY & ANNUAL TARGET

LINKED INCENTIVESLOYALTY PROGRAMS

EKULO DISTRIBUTION BRANCHS

WHOLESALE, RETAIL , KEY ACCOUNT MGMNT AND DIRECT VAN SALES

SALES , MERCHANDISING, WAREHOUSING, LOGISTICS & ACCOUNTS.

ACCOUNT REPRESENTATIVES DELIVERY FLEET

EKULO GROUP of COMPANIES

LAGOS – ABUJA- LONDON- ONITSHA

CHANNEL MANAGEMENT

Key Retail Accounts

EXCLUSIVE REP(S)

HYPERMARKETSTWICE A WEEK

SUPERMARKETS-WEEKLY

FUEL MARTS/B-C CATEGORY STORES-

FORTNIGHTLY

INVOICING IN SMALLER UNITS

DELIVERY AT CUSTOMER

WAREHOUSE

WINNING SHELF SPACE/VISIBILITY

DEDICATED MERCHANDISERS IN

HYPERMARKETS

IN SHOP ACTIVATION PROGRAMMES

CREDIT PERIOD – 30 – 45 DAYS

Visibility Thru Placement & Promotion

Fundamental Drivers

Availability Pricing &

Merchandising

Incremental Drivers

Promotions

Direct retail redistribution More volume will come from:

1. Increasing the number of covered stores

2. Increasing the number of brands

3. Increasing the number of SKU’s

4. Improving the in-store shelving & merchandising

VOLUME

QUALITATIVE IN-STORE

WORKMORE

STORES

MORE BRANDS

MORE SKU’S

DIRECT RETAIL REDISTRIBUTION

BRANCH

CITY ZONES ROUTES

OWN FLEET WITH SALESMAN AND READY STOCK

COVERS THE ROUTES ON PRE FIXED PERIODICITY

UP COUNTRY

SUB DISTRIBUTOR

S

REDISTRIBUTION WITH SUB DISTRIBUTOR FLEET AND

SALESMAN

SUB DISTRIBUTOR VANS AND OR SALEMEN SUPPORTED BY FMC

Direct Retail Redistribution

DEDICATED VANS & SALESMEN

DIRECT COVERAE IN TIER ONE CITIES -

WEEKLY & FORTNIGHTLY CALLS

SELLING IN SMALLEST RETAIL

UNITS

PRE SET ROUTES AND PERIODICTIES

FOR VISITS

FOCUSSED MERCHANDISING AND DISPLAY MANAGEMENT

SUPERVISOR FOR A TEAM OF 4 – 6 VANS

OUTLET WISE COVERAGE DATA

SUB DISTRIBUTOR NETWORK

Leverage the basket of products with Ekulo

Viable distribution model for small partners in tier two towns

Financial support to sub d – acquiring vans, sales man salary, fuel subsidy.

Regular market visits by Ekulo – training , supervision and regular reports

Demand Forecasting

•UP TO DATE SALES DATA• INVENTORY TRACKING INCLUDING TRANSIT AND OPEN ORDERS

REAL TIME ONLINE ERP

•BRANCH LEVEL SALES PLANNING

•CHANNEL WISE PLANS

SALES PLANNING •TRADE INITIATIVES

•PROMOTIONSAND ACTIVATIONS

TRADE MARKETING

•LEAD TIMES•MOQ’S•SEASONAL VARIATIONS•NEW PRODUCTS•FINANCIAL PLANNING

FORECAST AND ORDER

99 % SUPPLIES DELIVERED TO CUSTOMERS PREMISES

CENTRAL WAREHOUSE

BRANCHES

WHOLE SALE WAREHOUSE

WHOLESALERS, SEMIWHOLESALERS AND KEY ACCOUNTS

RETAIL REDISTRIBUTION

WAREHOUSE

RETAILS REDISTRIBUTION

VANS

OUTSOURCED

OWN FLEETOWN FLEET

SUPPLY NETWORK DESIGN WITHIN MARKETS

LOGISTICS

WAREHOUSE MANAGEMENT SYSTEM In our quest to be the number one in supply chain management

and distribution solutions in the markets we operate in, we have formulated a professional warehouse management system adhering to the following.

Trained Manpower

Modern IT Systems

Adequate Space & Efficient Storage

Reduced Delivery Time

Management Structure

President /CEO Office

Sales & Merchandising

Manager

Logistics RSM/Customer Service

Operations Manager

Financial Department

Import Office

BranchManager

Sales Manager

WholesaleExecutives

Market SalesRep

Merchandiser

Key AccountExecutive

Merchandiser

Van SalesSupervisor

Van Salesmen

Merchandiser

Merchandiser

Sub Dist Capt

Sub DSalesmen

Sub DMerchandiser

Sales Structure

We create the distribution around products.

Coverage principle Tier markets based on population and outlet concentration Saturate Tier one cities ( urban ) – Direct coverage in all

tier one cities and towns Tier two cities

Direct coverage of key retail accounts – upcountry routes Direct coverage of Wholesalers and Semi wholesalers Sub distributor direct coverage – Ekulo supports with vans / salesmen

salary and incentives / fuel subsidy / training.

Tier three cities› Direct coverage of Wholesalers & Semi Wholesalers

› Sustainable and Viable coverage focused on consistent and steady increase in geography of direct coverage

Ekulo Nigeria – Tier one cities/ towns

  WHOLESALEKEY 

RETAIL HFSOM 

RETAIL

LAGOS DIRECT DIRECT DIRECT DIRECT

ABUJA DIRECT DIRECT DIRECT DIRECT

ONITSHA DIRECT DIRECT DIRECT DIRECT

PORT HARCORT DIRECT DIRECT DIRECT DIRECT

BENIN CITY DIRECT DIRECT DIRECT DIRECT

CALABAR DIRECT DIRECT DIRECT DIRECT

ENUGU DIRECT DIRECT DIRECT DIRECT

IBADAN DIRECT DIRECT DIRECT DIRECT

WARRI DIRECT DIRECT DIRECT DIRECT

KANO DIRECT SUB D SUB D SUB D

KADUNA DIRECT SUB D SUB D SUB D

Ekulo Nigeria – Value addition

Ready access to a nationwide coverage and distribution across channels

Direct retail coverage of Nigeria. Outlet wise coverage and sales data. Channel segmented distribution management –

appropriate discounts and credit in line with market dynamics.

Vibrant Sub distributor network ensuring rural penetration and coverage.

Consistent merchandising and shelving Transparent value chain and uniform pricing across

Nigeria. Strict adherence to local laws and statutory code of

ethics. Proven track record , local market knowledge and brand

building experience .

EKULO GROUP OF COMPANIES

Head Office Ekulo Distribution Co. USA

Plot 1401 B, Tiamiyu Savage street, 14900 Hilton Drive, P.O. Box 74188, Victoria Island, Lagos, Nigeria. Fontana, California, Tel: +234 14610580 Tel: 877-358-5675Fax: +234 1 4631438, 4613117 Fax: 909-823-5099 Email: info@ekulogroup.net Email:

sales@ekulousa.com             ekulogroup@yahoo.com Website: www.ekulogroup.com Website: www.ekulousa.com  

 

Thank You For Your TimePrepared By: Mrs. Kellenne Okonkwo

Sales Manager EKULO Distribution USA

310-853-9068