Triple Play Lexicon First Edition - May 2023

Triple
Play
Lexicon
One common language for
Sales, RMG and E-Business
2 Introduction
Dear Commerce community,

We are an extremely international Company and interact with colleagues
around the globe on a daily base. With being a learn, share and re-apply
organization on knowledge, expertise, data and insight generation – having
one common and coherent language is vital.
To ensure we keep speaking the same language, I proudly present our first
Triple Play Lexicon, covering Sales, RMG and E-Business. I encourage you to
use this Sales Lexicon as a reference document when you work on your Annual
Plans (AP), interact cross functionally or doubt certain terms.
The Sales Lexicon is a living document, which is kept up to date through your
input and feedback. I therefore invite you to share your feedback, thoughts and
missing terms to the Sales Lexicon team for consideration in future editions.
James Thompson
"
3 chapters
Revenue
Sales Margin E-Business
Growth
"The Sales function is changing "The impact of what we can "We are ambitiously adding
and expanding to new achieve through Revenue eBusiness activities to our
boundaries. And so is our way Margin Growth relies on how strategies and this requires
of working, how we describe well and fast we can collaborate some clarifications and
activities, how we measure with different (sub-)functions. alignment on definitions.
success. Join us in welcoming A common language is vital We have captured the these
the rise of a new language for for this and facilitates quick definitions in this lexicon which
Heineken Sales" learning as well. Together we can will be further enriched in the
make step-changes in our RMG coming years, following our
capability and create value for further eBusiness learnings"
the Category, our Consumers, our
Customers and our Company"
Anna Campagna Steven Siemer Murk Spits
Go to index
4 Click-through Index
• Below the Line • Channel Activation

A • Blind Spots • Channel Landscape
• Brand Block • Channel Strategy
• A/B Testing • Brand Equity Score • Churn Rate (Net new outlets)
• A²QVP² • Brand Portfolio Pricing • Click-Through-Rate
• Above the Line • Bricks & Clicks • Closed-Loop Feedback
• Acquisition • Bricks & Mortar • Closing the loop (24h)
• Activation (Customer Value Driver) • Bulk Breakers • Competitive Set
• Active Customers • Business Segment • Complementary Categories
• Active Outlets • Business-to-Business • Compounded Annual Growth Rate
• Addressable Beer Universe • Business-to-Consumer • Conditional Discounts
• Addressable Universe • Business Transaction Value • Consulting (Customer Value Driver)
• Adjacencies • Buying Group • Consumer
• Affordability • Consumer Insights
• Aisle • Content Management Service
• API • Convenience Store (C-Store)
• Asset Coverage C • Conversion Rate
• Assortment • Conversion Rate Optimisation
• Assortment (Customer Value Driver) • Call Abandon Rate • Cookies
• Availability • Call Duration (Telesales) • Cost of Goods Sold
• Average Frequency of Visits •C all Duration Compliance Rate • Cost per Contact
by HNK Sales Rep (Telesales) • Cost to Sell
• Call time in hold (Telesales) • Cost to Serve & Sell
• Call to Action • Coverage
• Case Fill Rate • Coverage by HNK Sales Rep
B • Cash & Carry • Customer
• Category • Customer Advocacy
• B2B Platform • Category Management • Customer Centric
• Back-office / Support Functions • Category Strategy • Customer Centricity
• Base Discount • Category Value Drivers • Customer Effort Score
• Base Margin • Central Backoffice • Customer Experience
• Base Price • CF&VE % of Revenue • Customer Facing Activities
• Baseline Functional Gross Profit • CF&VE Costs • Customer Journey
• Basket Size • Channel • Customer Journey Map
• Customer Lifetime Value • Direct-to-Consumer • eRetail (Online Retail)

• Customer Loyalty •D irect-to-consumer via eChannel • eRetail coverage in JBP %
• Customer Outlet Data •D irect-to-consumer via HNK owned • eRetail Sell Out Volume
• Customer Relationship pub • eWholesale (Online Wholesale)
Management • Discounter • Excellence Omnichannel Execution
• Customer Retention Rate • Discounts • Excellent Execution
• Customer Satisfaction Score (CSAT) • Distribution • Excise Duty
• Customer Self-Order • Distributor • Execution
• Customer Technical Services • Distributor Exclusivity • Execution Score (PICOS)
• Customer Touchpoints • Distributor Own Brand • Execution Unit
• Distributor Skill/Will
• Driver Tree
•D ynamic Data Exchange
D F
• Data Analytics • Fair Share
• Data Discount E • FASCAR
• Data Drive Sales • Feet-on-street (Frontline)
• Data Visibility • eB2B • First Contact Resolution (FCR)
• Days Stock on Hand • eB2B Active Customers • Fold-in (List Price)
• Deep Promo • eB2B Penetration • Food delivery
• Defensibility • eB2B Revenue • Footfall
• Demand Spaces • eBusiness • Forward Buy Loss
• Depletions • eBusiness-to-Consumer • Forward Buying
• DESIRE tool • eChannel (Frontline) • Forward Stock
• Detractor (NPS) • e Commerce as % of Retail Sales • Frequency of Purchase
• Development/Rationalization Plan • e Commerce or Electronic Commerce • Front Facing
• Digital Investments • eCommerce Platform • Front-End-Development
• Digital Order Transfer • Elasticity • Full time equivalent
• Digital Payments Penetration • Employee Empowerment
• Digitally Empowered Salesforce • End-to-End
• Direct Coverage • EOE Score
• Direct Fulfillment Model • eProgress
• Direct Traffic • eRetail
• Innovation (Product)
G • Innovation Rate M
• I ntegrated Commercial Planning
• Gains & Losses • Interactive Voice Response • Main Aisle
• Gamification • Main Shelf
• General Sales Support • Margin
• Geo-marketing • Market Share
• Gold Location J • Merchandiser
• Gondola / Gondola End / End Cap • Merchandising
• Gross Merchandise Value • Joint Business Plan • Mindset (Planning)
• Gross Profit Margin • Joint Business Plan Coverage • Minimum Viable Product
• Gross Retail Sales • Joint Value Creation • Mixed Channels
• Gross Revenue • Mix Management
• Mobile Penetration (3G/4G/5G)
• Modern Trade
K • Mom & Pops Stores (Traditional
H Trade)
•K ey Performance Indicators • Moving Annual Total
• HEINEKEN (partially) owned • Kiosk • MSOP
wholesaler • Must Stock List
• Hypermarket / Hyper • Must Win Battles
L
I • Landing Page N
• Last Year
• Immediate Consumption Outlets • Latest Estimate • Natural Language Processing (NLP)
• Impulse • List price • Net Promoter Score
• Inbound Call Centers • LOGS • Net Sales Uplift
• Incremental Profit • Net Sales Value
• Incremental Volume • Net VC Margin Uplift
• Indirect Coverage • Net1
• Indirect Fulfilment Model • Net2
• Individual Data Driven Marketing • Net3
• New product innovations • Outbound Call Center • Planogram

• NPS Revenue Coverage % • Outlet • Point of Consumption
• Numeric Distribution • Outlet Coverage • Point of Sale / Point of Purchase
• Outlet Segmentation • Point of Sale Material
• Outlet Universe • Price Compliance
• Outlets per FTE • Price Elasticity
O • Outlets per Sales Rep • Price Elasticity Gross
• Owned Transaction • Price Elasticity Net
• O2O • Price Segments
• Occupancy Time (Telesales) • Pricing Waterfall
• Off Premise • Primary Drivers (NPS)
• Offline Value Market Share P • Primary Location / Primary Display/
• Omnichannel Primary Shelf
• On Premise • Pack Price Architecture • Primary Packaging
• Online Fair Share • Page Views • Private Label
• Online Market Place • Passive (or Neutral) - NPS • Product Mix
• Online value market share • Path to Purchase • Product View Rate
• On-shelf Availability • Pay-for-performance • Profit
• OOS (Out of Stock) • Payment Service Provider • Profit Capture
• Open Source • Payment Settlement Discount • Profit Pool
• Operating Company • Pay-Per-Click • Promoter (NPS)
• Operating Profit • PCI Compliance • Promotion
• Opt-In • Penetration • Promotion Compliance
• Order Fulfillment • Permanent Display • Promotional Baseline
• Order Generation • Personalization • Promotional Depth
• Order Management & Customer • Personas • Promotional Discount
Services Costs • Persuasion • Promotional Effectiveness
• Order Management System • Picos availability % • Promotional Efficiency
• Order Strike Rate •P ICOS availability score % Strategic • Promotional Funding
• Order To Cash Brand 1 • Promotional Golden Rule
• Order Value •P ICOS availability score % Strategic • Promotional Intensity
• Order Volume Brand 2 • Promotional Mechanic
• Orders requiring (tele)support • Picture of Success • Promotional Pressure
• Out of Stock • Planned Purchase • Proof of Concept
• Proof of Value • Route-to-Consumer GRIP • Selling

• Prototype •R oute-to-Consumer Powermap • Selling Story
• Pure Players Assessment • Sell-In-Price
• Returnable Packaging Material • Sell-Out
• RPM Circulation Time • Sell-Out-Price
• RPM Market & Site Loss • Sentiment Analysis
Q • RTC Strategy • Service (Customer Value Driver)
• RTC x Channel • Service Standards
• Quality • RTC GRIP: Customer Loyalty • Share of Asssortment
• Quick Response Barcode • RTC GRIP: Distribution Power • Share of Market
• RTC GRIP: Execution Excellence • Share of Shelf index
• RTC GRIP: Transaction Capture • Share of Shelf/Space
• Share of Wallet (Forward Stock)
R • Shelf Image Recognition
• Shopper
• Rate of Sale S • Shopper Data Discount
• Retail Environment • Shopper Insights
• Recommended Retail Selling Price • Sales Execution Mobile (SEM) • Shopper Lens
• Relationship Management • Sales Force Automation • Shopper Marketing
(Customer Value Driver) • Sales Promoters • Shopping Mission
• Relative Market Share • Sales Rep Payout Realization • Short Term Incentives
• Repeat Order Rate •S ales Rep (SR) Variable • SNOW Funnel
• Responsible, Accountable, Compensation • Spans of Control
Consulted, Informed •S alesforce Routing Compliance • Spillover
• Retail Back Margin • Sales Transference • Sales Rep Payout realization
• Retail Front Margin • Scale Discount • Stock Keeping Unit
• Retail Margin • Search Engine Marketing • Strategic Plan
• Retail Sales Price • Search Engine Optimisation • Strategic Portfolio Optimization
• Retail Sales Value •S econdary display / Secondary • Stronghold Regions
• Retention Rate Placement • Sub-distributor
• Retrospective Discount • Secondary Packaging • Substitutability
• Return on Investment • Secondary Placement Discount • Supermarket
• Revenues • Secondary Space • Supply Chain
• Route-to-Consumer • Sell-in
T U W
• TeleSales (Frontline) • Unique Selling Proposition • Weighted Distribution
• Temporary Price Reduction • Uplift
• Territory/Price/Data Compliance • Urbanization rate
• The % of Distributors Revenue • Use Case X
covered by JBP • User Acceptance Testing
• Third Party Logistics • User Experience • X+1
• Third Party Seller • User Interface
• Time in Outlet • User Journey
• Time Required per Order
• Total Touchpoint Interactions
• Touchpoint Strategy
• Trade Census V
• Trade Lever
• Trade Margin • Value Chain
• Trade Term Optimisation Program • Value-at-stake
• Trade Terms (Financial Terms) • Value Chain Profit Share
• Trade Terms (Non-Working) • Vendor Management Inventory
• Trade Terms (Working) • Visibility
• Trading Down • Visibility Score (PICOS)
• Trading Up • Visit Strike Rate
• Traditional Trade • Visited Universe
• Traffic • Volume per FTE
• Traffic Builder • Volume per Outlet
• Transaction • Volume/Price/Mix
• Transaction Capture (RTC GRIP)
• Transaction Value
10
Sales
11 Sales
A²QVP² All activities that drive value by influencing Consumers'/

Shoppers’ choice in an Outlet. Those elements known to appeal
to the target Consumer/Shopper and likely to provoke the
individual to consume or buy the product/brand.
These are A2QVP2:

A – Availability,
A – Affordability,
Q – Quality,
V – Visibility,
P – Persuasion,
P – Promotion.
Above the Line ATL Above the Line Media spend; proportion of total media
investment (advertisement), usually per brand allocated on
SKU level based on proportion of volume sold
Acquisition The process to capture new customers selling HNK portfolio
Activation (Customer The activities, materials and equipment that Heineken prepares
Value Driver) and delivers to customers to enable them to increase the sale
of Heineken products.
Active Customers The # of Customers (outlets) selling HNK portfolio that have
purchased in the last month. Specifcally within eBusiness, a
self-service customer (outlet) who has placed at least one order
in the B2B platform in a given month.
12
‘A²QVP²’
All activities that drive value by influencing Consumers'/Shoppers’ choice in an Outlet.
Those elements known to appeal to the target Consumer/Shopper and likely to provoke the
individual to consume or buy the product/brand.
These are A2QVP2:
A A Q
Availability Affordability Quality
V P P
Visibility Persuasion Promotion
13 Sales
Active Outlets % of outlets selling HNK portfolio that have purchased in the
last month. Can be measured by full portfolio or per brand/
category/etc.
Formula:
# outlets that have purchased in last 1 month / # outlets selling
HNK Portfolio (excl seasonable outlets)
Addressable beer Number of relevant outlets licensed to sell beer, and are selling
universe beer in the market
Addressable universe Number of relevant outlets licensed to sell any of the HNK
portfolio products, within and beyond beer
Adjacencies Categories located just beside our categories in store. E.g.

retailers often put confectionery and biscuits in adjacent aisles.
Affordability All activities that influence the price perception of a particular

brand or product.
Aisle A corridor in store
Asset Coverage % of customer with specific commercial asset (fridge, DBEs, ice
machine…)
Formula:
# customer allocated with specific commercial assets / #
customer selling HNK portfolio
Assortment Agreed range of SKUs for an outlet or an RE, usually defined by

to satisfy Consumer & Shopper Needs
14 Sales
Assortment The range of products (brands/pack-types/categories) offered

(Customer Value Driver) to Customers to satisfy their Shoppers' needs.
Availability When the HNK portfolio is present and available (cold) at the
point of sale.
Average frequency of Average # of visits done by HNK Sales Rep to a unique outlet
visits by HNK salesrep per month (actual, not scheduled)
Formula:
# visits by HNK Sales Reps per month/total # of outlets
assigned to Sales Reps
Back-office / Support Non-customer facing support perssonnel in the sales function

Functions - e.g. (General Sales Support, Order & Request Handling,
Customer Technical Services, Other Back-Office)
Basket Size Average transaction size of the average shopper. This can be
expressed in terms of volume (e.g. average basket of 7 items)
or more commonly as a currency value (e.g. average basket size
of $25).
Below the Line BTL Proportion of total Below the Line (non ATL) commercial spend,
usually per brand allocated on SKU level based on proportion
of volume sold. Incl. POSM, 3rd party merchandising, trade
advertising.
Formula:
Customer BTL Cost/ Net Revenues
15 Sales
Blind Spots Those points within a planogram of primary shelf or any other
displays which are not clearly visible to the shopper in a normal
shopper line of sight
Brand Block Merchandising practice in which all of a brand's SKUs are

stocked contiguously on the shelf, thereby creating a de facto
billboard. Min. 30cm vertical blocks lead to higher conversion
than horizontal
Bulk Breakers Subset of sub-distributors. Sells to retailers or end consumer

sometimes; Can buy from sub-distributors and/or wholesaler;
not expected to be exclusive to, and from brand owner
Business segment A cluster of Channels with similar characteristics regarding

shopping or consumption (e.g. On-Trade versus Off-Trade)
Buying Group Group or alliance that negotiates for a set of independent

Customers and often leverages its purchasing scale in order to
obtain more favourable trade terms from suppliers.
Call abandon rate Percentage of inbound calls where customer hangs up before
call is answered by an agent
Call duration Average duration (mins) of incoming telesales calls

(Telesales)
Call duration Percentage of outbound TeleSales calls completed within the

compliance rate scheduled timebox
(Telesales)
16 Sales
Call time in hold Average time a caller is on hold, including initial queue time
(Telesales) before initial contact and time on hold during call
Case Fill Rate CFR % of customer order that is available upon order and delivered
OTIF (on time, in full)
Formula:
Volume ordered and delivered to customer OTIF / Total volume
ordered by customer
Cash & Carry A type of outlet, across the world more commonly known
as Wholesale - a store format intended for resellers and
commercial customers. Sales area normally bigger than
5000m2. In some countries (e.g. Romania) open to any
shopper, also non-commercial shoppers. Sometimes also
referred to as Wholesaler. Example Metro, Costco.
Category A collection of SKUs/products/brands that share similar

characteristics, are interchangeable and are grouped together.
In the eyes of the consumer satisfies similar needs and are
made of similar/same ingredients.
Category Management A databased & insight driven management of product

categories, in order to meet specific consumer & category
objetives. Usually done in collaboration with the retailer.
17 Sales
Category Strategy The combination of a longer term category vision with

objectives and a plan to create sustainable, profitable growth
of a product Category. The Category Strategy drives portfolio
and brand strategies and addresses multiple factors such as
environmental, legal, Consumer, Shopper, Channel, Customer,
Competitor and Supply issues and opportunities
Central Backoffice Includes all other Sales back-offce roles - e.g. commerce general
commercial services, RMG
CF&VE % of Revenue Commercial Fixed and Variable Expenses. CF&VE % of Revenue
Formula:
CF&VE spend / Net Revenues
CF&VE costs Commercial Fixed and Variable Expenses. Incl. commercial

-related direct personnel costs, depreciation on commercial
assets, vehicle costs, & other CF&VE
Channel A cluster of outlets with similar characteristics (e.g.

hypermarkets, convenience, luxury hotels, fine dining, discos)
grouped together to enable efficient activation of common
opportunities.
Channel Activation The operational process of annual planning, execution and

tracking by channel and/or customer to ensure high quality
activation at point of sale in line with channel strategy
18 Sales
Channel landscape Analysis of all channels in the market regarding current

position, trends and future potential (volume and value for
HNK versus the competition, pack types, price levels, etc. by
channel). Usually developed as an output of a trade census
project or updated periodically via the integration of 3rd party
market data sources
Channel Strategy A 3-year plan to achieve sustainable and profitable growth of

the portfolio and brands in channels. channel strategy uses
the channel landscape alongside shopper and on-premise
consumer, category and customer insights to prioritise
investment choices. The outputs of channel strategy would
include an effective OpCo channel segmentation model, growth
driver priorities by channel and clearly identified activation
pillars or programs
Churn Rate The rate at which existing customers stop doing business with
(Net new outlets) a company over a given period of time
Formula:
# customers at the end of the beginning of the period- #
customers at the end of the period)/ # customers at the
beginning of the period
Closed-loop feedback Closed-loop feedback, or closing the loop, involves following

up with customers who have provided feedback. The purpose
of closed-loop feedback isn’t simply to collect valuable data;
instead, to start a conversation with the customer that will
yield mutual benefits.
Closing the loop (24h) % of RQC (Requests, Queries and Complaints) tickets closed
within 24 hours since ticket creation
19 Sales
Complementary Complementary Categories are categories that go well in usage

Categories with other categories (e.g. coffee and cookies / or milk and
cookies) and are thus good to place displays into.
Consulting (Customer The information and advice given to customers to assist them
Value Driver) in optimizing their business to meet both their and HNV’s
objectives.
Consumer The person who drinks the product, either in an On-Trade

outlet, or at any location reached via the Off-Trade channel
(at home, with friends, etc.). The consumer may be (but is not
necessarily) the shopper, or the person who buys the product
Convenience Store C-Store Small self-service food shop with particularly long opening
hours and a noticeable focus on convenience items, such as
ready meals and fast food. In addition, regular food items and
a small choice of non-food products are sold. 35 sq.m - 400
sq.m store size with an assortment of upto 1500 SKUs. Open
longer than most other retail formats. All Missions occur but
more likely to be medium Mission bias.
Cost Per Contact Refers to the expenses related to running a contact center (i.e.,
operational costs, wages, benefits). To calculate the average
cost per contact, the total cost associated with operating the
business is divided by the total number of contacts handled.
20
‘Coverage’
Layers of outlet universe in assessing coverage
1. Total Addressable Outlet Universe

1. Number of relevant outlets licensed to sell any of
Total Addressable the HNK portfolio products, within and beyond
Outlet Universe
beer
2.Total Coverage/ Numeric Distribution Portion of

2. addressable outlet universe where HNK products
indirect Total are available – can be served either directly (Sales
Coverage
reps, direct distributors) or indirectly (by sub-D,
wholesalers, bulk breakers …)*
3. 3. Direct Coverage
Direct
Coverage
% of outlets in addressable universe served by
either HNK Sales Reps or Distributor Salesreps,
direct including Telesales, DOT, with data sharing in
place
4. 4. Visited Coverage (by HNK SR)

Visited % of outlets in addressable universe visited by
Coverage
HNK Sales Rep (can be in combination with
Telesales, B2B)
*) Indirect coverage defined as portion of visited outlets supplied by 3rd parties, that are NOT HNK Sales Rep nor direct
distributors (e.g. sub-distributors / wholesalers / bulk breakers etc.) Not category exclusive; Not invoiced by HNV (circle
2-/- circle 3 and 4)
21 Sales
Cost to Sell C2S/CTS Cost to Sell is a method for assessing the sum total of a large
number of transaction costs which will vary by product, by
market, by channel of trade, and will vary between individual
Customer. There are 2 types of C2S according to HNK
perspective: E2E C2S includes Consumer price to net revenues,
logistics Cost to Sell and commercial spend. Logistical C2S talks
about cost to deliver only
Formula: Formula:
Cost to Sell / Net Revenues
Cost to Serve & Sell C2SS/CTSS Cost to Serve & Sell goes one step further than C2S to
include costs associated with driving sales at/within the
Point of Purchase. It gives a more accurate picture of overall
commercial costs for the full value chain but is often harder to
accurate calculate. Beyond C2S, C2SS includes Outlet Coverage
& Logistics costs, In-Store Assets, Overheads and Intermediary
costs such as sub-Distributor incentives
Coverage by HNK sales # of outlets that HNK distribute to through distributors / total #
rep of outlets in addressable universe
Formula:
# of outlets that HNK distribute to through HNK sales rep. /
total # of outlets in addressable universe
Customer Any individual or entity within the RtM Value Chain who
purchases HNK products either directly or indirectly from HNK
with intent to sell them forward and make a profit. A Customer
may have a varying level of influence over a Consumer or
Shoppers' decision to choose HNK products at the Point of
Purchase. The term Customer does not include Consumers,
Shoppers, or On-Trade Consumers
22 Sales
Customer Advocacy Customer Advocacy is the measure to which customers actively

advocate/recommend/promote the use of product or service to
a friend or colleague
Customer Centric Being Customer Centric means that every department in the
Company understands that the Customer comes first and
everything they do is to obtain, retain, and build relationships
with Customers
Customer Centricity A strategy that aligns the development and delivery of a

company’s products and services with the current and future
needs of its highest valued customers in order to maximize
these customer’s long-term financial value to the firm
Customer Effort CES A customer experience metric that measures how

Score much effort your customer needs to use to complete
a transaction, resolve a support issue, or interact with
your company/product in general. Quantifying the response to
the statement: “[Placeholder for company name] made it easy
for me to handle my issue.” The respondents can choose to
score from strongly disagree (score 1) to strongly agree (score
7). The CES score is calculated by finding the average of all
responses. This means, taking the total sum of responses and
dividing it by the total number of survey respondents
Formula:
Total sum of responses / number of responses
Customer Experience The sum of all interaction with our company, measured in both
utility and emotional value
23
‘Customer Centricity
Framework’
A strategy that aligns the development and delivery of a company’s products and services with the
current and future needs of its highest valued customers in order to maximize these customer’s long-
term financial value to the firm.
D YOUR CUSTOMER
STAN S
D ER
UN
Performance
Metrics
Voice of the Customer

Customer Personas
Governance & Customer

Performance Journeys
EMPOWER TH
CUSTOMER
CENTRICITY
CE
Enabling Touchpoint
IEN
Technology Strategy
E OR
PER
GA
EX
NI
E
TH
Culture & Employee

ZA
Mindset Experience
E
TI
OV
ON
PR
IM
24 Sales
Customer Facing Customer Selling

Activities The first of the four customer facing activities performed
by the brewer or one of their agents comprising selling and
negotiating outlet contracts, securing product listings, selling of
promotions and activations, agreement on product assortment
and overall relationship management
Customer Execution
The second of the four customer facing activities performed by
the brewer or one of their agents, comprising such activities as
merchandising, consumer price verification, assortment, shelf-
filling, and promotion execution support
Order Generation
The third of the fourth customer facing activities performed
by the brewer or one of their agents, including taking and
influencing orders with a customer, advising on retail price,
credit control and managing assortment
Order Fulfilment
The fourth of the four customer facing activities consisting of
such activities as product delivery, cash collection, invoicing
and credit control, empties collectionomer facing activities
performed by the brewer or one of their agents, including take
and influence orders with customer, control price-to-retail,
control credit, and manage assortment
Customer Journey The complete sum of experiences that customers go through

when interacting with a company and its brands. It considers
the complete path from brand discovery to purchasing and
beyond. The focus in not on purchases made, but rather on
how the customer feels about the interactions throughout their
journey with the company.
25 Sales
Customer Journey A visual depiction (diagrammed or written) detailing the path

Map the customer takes from the time the customer first discovers
the brand, to purchasing, and beyond
Customer lifetime CLV One of the key statistics to track as part of a customer
value experience program. CLV is a measurement of how valuable
a customer is to your company, not just on a purchase-by-
purchase basis but across the whole relationship.
Formula:
(Customer Revenue per Year * Number of Years as a HNK
Customer) - Cost of Acquisition
Customer Loyalty Customer Loyalty is a measure of a Customer’s likeliness to

do repeat business with a company or brand. It is the result of
Customer Satisfaction, positive Customer Experiences, and the
overall value of the goods or services a customer receives from
a business
Customer retention % of existing Customers that continuing ordering HNK products

rate via a the same RtM over a given period of time
Customer Satisfaction CSAT CSAT is short for customer satisfaction score. It's a commonly
Score used metric that acts as a key performance indicator for
customer service and product quality in all kinds of businesses
Formula:
0-5, 5 being very satisfied.
Customer self-order % of orders completed solely by the Customer's effort, without

the help of an SR/DSM
26 Sales
Customer Technical CTS Customer Technical Services (CTS) is the back office function
Services that provides equipment/assets to our Customers to support
the selling our products at the outlet (e.g. draught beer
equipment, fridges, high value merchandise such as furniture
and parasols). The CTS team are also responsible for the
installation, maintenance, cleaning and refurbishment of this
equipment through in-house or outsourced workforces.
Customer Touchpoints A touchpoint is any interaction between a customer and

HEINEKEN. A touchpoint can be either remote (telesales,
customer service) physical (sales reps, distributors (sales rep) or
digital (B2B Portals)
Data analytics Data analytics is the study of data sets to identify patterns and
draw conclusions. Data analysts apply the method to analyze
the collected raw information to generate insights and trends.
Days Stock on Hand Number of days of HNK stock levels maintained by distributors
Formula:
Average value of HNK Inventory / Sales of HNK inventory per
day
Demand Spaces A demand space is the intersection of context (the consumer’s

demographic profile, where he or she is, at what time, and with
whom) and the consumer’s emotional and functional needs,
and each unique space has a unique set of demands.
Depletions Sales by Distributors to the retail trade or other Customers (e.g.

sub-wholesalers)
27 Sales
DESIRE tool HNK tool to assess the capabilities of distributors and

allows an OpCo to resturucture or rationalize the distributor
network, select the right distributors, feed the Distributor
Capability Development plans and review legal and financial
arrangements with existing partners
Detractor (NPS) % detractors (people dissatisfied) on working with HEINEKEN
Formula:
% of customers/partners that score below a 7 with the question
on “how likely are you to recommend working with HEINEKEN
to a friend?”
Development/ Percentage of low skill-low will distributors that have been

rationalization plan identified and placed under development / rationalization plan
Formula:
# of low skill-low will distributors placed under development/
rationalization plan / Total # of low skill-low will distributors
Direct Coverage % of outlets visited by either HNK Sales Reps or 3rd party (i.e.
direct distributors) with data sharing in place. Can also be a
combination of servicing via HNK touchpoint (Telesales, EB2B)
with Distributor physical visit/ delivery.
Formula:
# of outlets visited by HNK sales rep or 3rd part sales rep / #
total number of outlets in the full universe
Direct Fulfillment RTC model in which HNK directly serves the

Model customer, including order fulfillment, without going through a
Distributor or Wholesaler"
28 Sales
Direct-to-Consumer DTC Direct-to-consumer refers to the consumer brands or FMCG's

that sell straight to the end-user without going through a
retailer, wholesaler, or distributor
Direct-to-consumer RTC Model in which consumer is directly served via online

via E-channel intermediaries - e.g. Amazon, Lazada, Grab or Getir
Direct-to-consumer RTC Model in which consumer is directly served via an Heineken

via HNK owned pub owned and/or operated pub
Discounter Efficiency based food outlet selling a small number of SKUs in

vast quantities, with a very strong focus on price, positioning
themselves as the price leaders in the market. Especially strong
in Europe, where the concept has its origin. It exists in two
versions: Hard - stores almost exclusively private label based
and completely price driven, and Soft - stores which feature
wider ranges of both branded products and fresh food.
Distribution The mechanism to ensure physical availability of the product/

brand at the required points of purchase
Distributor A 3rd party that buys HNK’s products directly from Heineken in
order to re-sell them to other customers. This excludes cash and
carry customers (such as Makro and Metro) unless they have
a Sales Force and their distribution business unit is strategic
to Heineken, but includes distributors where Heineken has a
minority shareholding.
29 Sales
Distributor Exclusivity Exclusivity for HNK categories and HNK brands (either on beer
category alone or entire distributor business)
Formula:
# Distributors with beer exclusivity agreement with HNK / Total
Distributors selling HNK portfolio
Distributor Skill/Will An evaluation of the distributor’s capabilities (skills), but also

the willingsness to work with Heineken (will)
eB2B Digital Business to Business platform, used to sell products

from HNK to other RTC partner
eChannel (Frontline) Staff directly associated with sales via eChannels
E-Commerce as % of % penetration of eCommerce sales over Retail sales

retail sales
Formula:
Total eCommerce sales / Total Retail sales
Employee Means giving Employees the authority, right technology,

empowerment systems, and freedom to go the extra mile to make Customers
happy
30 Sales
End-to-End E2E End-to-end describes a process that takes a system or service

from beginning to end and delivers a complete functional
solution, usually without needing to obtain anything from a
third party
EOE Score Excellent outlet execution score is a composite score taking

into account outlet execution metrics such as Touchpoint score,
NND, FS, visibility scores
Excellent Execution Sell-out activities to drive (omnichannel) sales per outlet

(assumes product availability)
Execution All activities performed by HNK or one of the RTC partners,

comprising such activities as merchandising, consumer price
verification, assortment, (digital) shelf- filling, and promotion
execution support
Execution Score Average of all PicOS execution KPIs scores for Availability,
(PICOS) Affordability, Quality, Visibility & Price
Formula:
(Sum of all PicOS execution KPIs scores) / (# of PicOS execution
KPIs)
31 Sales
Execution Unit Intersection of "RTC x Channel" and functional roles within

corersponding linkage to the P&L and organization structure,
offering a platform for comparison of similar units across
OpCos.
Fair Share Means to give at least the share of shelf to a brand or product
that corresponds to its market share. Give double facings to
high selling products. Consider "online" & "offline" market share
may differ
FASCAR All activities that drive outlet penetration by influencing

Customers’ choice of supplier. These are FASCAR:
F – Financial Terms
A – Assortment
S – Service
C – Consulting
A – Activation
R – Relationship Management.
The importance of the different elements of the drivers can

differ across Customers.
Feet-on-street Staff directly associated with sales through the tranditional,

(Frontline) physical sales process (e.g. Sales reps, merchandisers, KAMs,
Brand Ambassadors) and direct management of the physical
sales processes (e.g. SR/DSM, sales leaders, supervisors)
First Contact FCR Metric shows how many customer requests were solved during
Resolution the first contact
32 Sales
Footfall # of Shoppers entering a Retail environment.

Means to give at least the share of shelf to a brand or product
that corresponds to its market share. Give double facings to
high selling products. For eRetail this is referred to as "traffic"
Forward Stock The percentage or units of (visible) stock of our SKUs as

percentage of the total stock available (cold in case of On
Trade) in the outlet or shop floor area of the outlet (cooler,
shelf, 2nd placements, displays in the case of Off Trade).
Frequency of Purchase # of trips the shoppers make to buy a Category, brand or SKU in
a specific period (usually in a month)
Front Facing The best way of merchandising a product such that the main
front part of the packaging faces the shopper and the brand
name/SKU Name is clearly visible
Full time equivalent FTE Measurement of how much personnel is needed if work would
be done by full time employees
Gains & Losses # of permanent Draught Beer Outlets gained compared to the
number of Outlets lost (Net
Acquisition)
General Sales Support General Sales support is a Sales back-office sub-bucket that
includes activies around for Sales Support, Sales General,
Commercial Services, Event Services
33
‘Front Facing’
The best way of merchandising a product such that the main front
part of the packaging faces the shopper and the brand name/SKU
Name is clearly visible
34 Sales
Gold Location The best space/ trading area with maximum Shopper
Conversions due to high visibility of products, in the Shopper
Line of Sight (1-1.4 m from the ground) & easy accessibility
e.g. Main high-traffic aisle which most Shoppers pass through
irrespective of shopping mission. This can apply to secondary
displays/ checkout units a.k.a. Diamond Principle
Gondola / A particular display at the beginning or end of an aisle made of

Gondola End / wood, plastic and steel with adjustable shelf heights.
End Cap
Heineken (partially) HNK (partially) owned entity that purchases goods from HNK
owned wholesaler and serves as a distributor and commercial agent to customers
along the value chain. Often sells broader assortment of
multiple categories.
Hero Image In eRetail, part of the digital shelf/webshop designed to

grab a shopper's attention with the aim of driving traffic to a
particular brand, promotion or page
Hypermarket / Hyper Large out of town stores - self-service, with a grocery product
offer and with significant presence of non-food items. This
Retail Environment includes 10+ check-outs, starting at 2.000
sqm., minimum 20.000+ SKU, primarily large shopping mission.
Immediate Consumption Outlets visited by the shopper to buy small quantities of

Outlets products, in general for immediate consumption.
35 Sales
Impulse Impulse is not a particular product format, category or channel.

Impulse is a mindset. We differentiate between three kinds of
impulse.
PURE Impulse – there has been no pre-planned or previously

identified need (candy/chocolate)
REMINDER Impulse – the shopper remembers she needs a

product as she sees it in store (gum)
OPPORTUNISTIC Impulse – the shopper takes a product she

sees in store due to a special offer (cheese/coffee/beer)"
Inbound call centers Inbound call centers tend to focus on assistance for customers
who need instructions, a technician, problems solved, questions
answered, or other assistance with products, services, and
orders
Indirect coverage % of Addressable Universe Outlets that sell HNK products,

made available through Sub-Distributors (incl. wholesalers…)
only
Indirect Fulfilment RTC model in which HNK serves the customer through
Model distributors that execute certain sales activities as well as
fulfillment of product
Innovation (Product) A SKU is an innovation if it was not sold 36 months before date,
and is new in content (line ext.), pack size or pack type
36 Sales
Innovation Rate Innovation rate out of Net Revenue in %
Formula:
Revenue generated by innovation / Total Revenue
Integrated Commercial ICP A collaborative process that guides the Commercial Team to
Planning deliver an Integrated Commercial Plan based on the "Winning
with Consumer and Customers" framework
Interactive Voice IVR IVR is an automated telephony system that interacts with
Response callers either before routing them to the right agent or
department - or as a digital counterpart to a human agent. The
feature aims to ease or resolve a situation for callers
Joint Business Plan JBP Process to create an agreed plan between a retailer and a
supplier covering business objectives (sales, profit, volumes
etc.).
Structured business plan jointly developed by HNK and
distributor, focusing on aligned multi-year outcomes & long
term value creation with the following elements:
1) 3+ year horizon
2) Alignment on target, strategies, actions and ownership
between both parties, signed off CEO to CEO
3) Joint initiatives between HNK and distributor, and win-win
for both parties across initiatives
4) Framed through lens of distributor’s ambitions, and
incorporates all key distributor priorities"
37
‘Gold location’
The best space/ trading area with maximum Shopper Conversions due to high visibility of products, in the
Shopper Line of Sight (1-1.4 m from the ground) & easy accessibility e.g. Main high-traffic aisle which most
Shoppers pass through irrespective of shopping mission. This can apply to secondary displays/ checkout
units a.k.a. Diamond Principle
38 Sales
Joint Business Plan Percentage of Modern Trade Off Trade revenue covered by a
Coverage Joint Business Plan
Key Performance KPI Also known as Key Success Indicators. A set of qualitative and
Indicators quantitative performance criteria to be measured (on a regular
basis) to assess the performance/success of an organization or
a program
Kiosk Kiosks are fixed location small stores which sell newspapers and
magazines, as well as limited ranges of: food, sweets, tobacco
and drinks, usually through a counter window, usually with long
opening hours.
Main Aisle Aisle within a Store where our category is located
Main Shelf One of the distinct areas in store, Main shelf is the main
placement of the category in larger stores, where the majority
of sales come from (also known as primary shelf, back of store,
main aisle or home shelf)
Market Share The portion of a market controlled by a particular company or

product
Formula:
Company total revenue/Industry revenue over a specific period
of time
39 Sales
Merchandiser Person or entity executing the Picture of Succes (PICOS) at

outlet level, both permanent as well as promotional
Merchandising At retail in-store level, merchandising refers to the variety of

products available for sale and the display of those products
in such a way that it stimulates interest and entices customers
to make a purchase (including pricing, assortment, product
placement, signage, displays, etc.)
Mindset (Planning) Is the level of purchase planning, it can be:
Planned: Specific brand item on physical or mental

shopping list
Semi-planned: Category is on physical or mental

shopping list but not a specific brand item
Impulse: Neither category nor brand on physical or

mental shopping list"
Mixed channels A channel type that clusters outlets catering for both
immediate, On-Premise consumption and "over the counter/
assisted sale" for future consumption
Mobile penetration % population with 3G, 4G or 5G

(3G/4G/5G)
Formula:
% of population with 3G, 4G & 5G / Total population
40 Sales
Modern Trade Modern Trade Channels are comprised of outlets owned and/
or managed by organized, local, regional and international
customers. This channels include online retailers and hard
discounters (e.g. Lidi, Amazon, Peapod) but excludes Wholesale.
The customers would typically have a strong brand identity, well
defined store formats, focus on centralization, professionalism
and shopper experience (e.g. Carrefour, Walmart, Esselunga,
Albert Heijn for Off Trade, KFC, Pizza Hut, HardRock Cafe for On
Trade)
Mom & Pops Stores Very small outlets typically run by members of a family, can be
(Traditional Trade) self-service but often service is over a counter. A subset of the
Groceries Retail Environment (RE)
MSOP Minimum Standards of Performance. Qualifier for Execution

KPI's
Must Stock List SKUs which are defined as must be stocked by the outlet
Must Win Battles MWB Must win battles are the HEINEKEN way to define 'How to Win'
in accordance with its commercial strategy, specified in the
WWCC framework
41 Sales
Natural language NLP) Natural language processing (NLP) applies computational

processing techniques to the analysis and synthesis of natural language
and speech. It’s considered a branch of artificial intelligence
and helps computers understand, interpret and manipulate
human language.
Net promoter score NPS The net promotor score is a customer loyalty metric that
denotes a customer’s willingness to recommend a product or
business, as well as a gauge in order to monitor their overall
satisfaction. It is measure on a scale of 0-10.
Formula:
(% of customers/partners that score a 9/10 - % of customers/
partners that score below a 7) with the question on “how likely
are you to recommend working with HEINEKEN to a friend?”
New product NPI NPI refers to a new product introduction and follows NPI Gate
innovations process
NPS Revenue The revenue coming from outlets included in the NPS
Coverage % survey as part of total revenue
42
‘Must Win Battles'

Must win battles are the HEINEKEN way to define 'How to Win' in accordance with its
commercial strategy, specified in the WWCC framework
Winning with
consumers & customers
Winning with Winning with
consumers customers
Win at the
distinctive relevant point of sale valued trusted
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Create unique Establish Develop Offer great Innovate to Ensure right Maximize Amplify Optimize Drive Develop & Optimize Target, acquire & Improve customer
brand iconic brand breakthrough taste & quality drive pack & price availability of visibility & activations & category grow trade terms retain customers experience
positioning identity communi- drinks penetration focus SKU's experience promotions growth customers & discounts
cation
43 Sales
Numeric Distribution ND The % of outlets (out of a total pre-defined outlet universe) in

which a product is sold. Numeric distribution gives a sense of
the reach of product distribution.
Formula:
# of outlets in which a HNK product is available/ total # of
outlets in addressable universe
Occupancy time % of time spent on a call vs total working

(Telesales) time
Off Premise Also known as Off-Trade. Outlets licensed to sell alcohol for
consumption in future, off the premises (e.g. traditional trade,
supermarkets)
On Premise Also known as On-Trade/Out of Home. Outlets licensed to sell

alcohol where consumption is allowed on the premises and
usually purchased for immediate consumption (e.g. bars)
OOS (Out of Stock) OOS When a listed product is temporarily unavailable for purchase
by a consumer or shopper
Operating Company OpCo HEINEKEN business unit

44 Sales
Operating Profit Profit from business operations; excluding interests and taxes
Formula:
Profit - operational expenses
Order Fulfillment Order fulfilment refers to the steps involved in getting a product
to a customer once it has been ordered, starting with the point
of sale and ending once delivery occurs
Order Generation Capturing customer and/or consumer demand in a HNK or RTC

partner system and thereby formalizing and committing to the
financial transaction.
Order Management & Incl. order management & customer service technology and
Customer Services direct personnel (excl. commercial) costs
Costs
Formula:
Order management & customer service cost /
Net Revenues
Order Strike Rate % of productive visit by HNK sales rep that generate an order
Formula:
# of outlets visited with order/# of outlets visited
Order value Average order value (eur) of SR/DSM managed outlets in a

given timeframe.
45 Sales
Order volume Average order volume (HL) of SR/DSM managed outlets in a

given timeframe
Orders requiring % of total online orders requireing telesupport during ordering

(tele)support process
Out of Stock OOS % of Outlets (including Online) handling a specific product

in the last period that, at the time of auditing, had no stock,
neither on the shelf nor in stock room
Formula:
# of evaluated outlets with specific product out-of-stock/ total #
of evaluated outlets selling specific products
Outbound Call Center In an outbound call center, agents call potential or existing
customers rather than receiving calls from them
Outlet The Out-of-Home place where Shoppers and Consumers go

to buy and/or to consume a product. It covers both the On-
Trade (e.g. pubs, hotels, restaurants) and the Off-Trade (e.g.
supermarkets, traditional Outlets)
Outlet Coverage Number of Outlets visited at least one time during a month by
a Sales Rep, Merchandiser or 3rd Party Sales Company for and
on behalf of HEINEKEN
46 E-Business
‘Net promoter score’

NPS: The net promotor score is a customer loyalty metric that denotes a customer’s
willingness to recommend a product or business, as well as a gauge in order to
monitor their overall satisfaction. It is measure on a scale of 0-10.
47 Sales
Outlet segmentation The process of grouping outlets into different channels

according to a certain set of criteria. The criteria can be based
on the outlet’s structure (i.e. size, quality, layout) and offer to
consumers to meet their functional and/or motivational needs
Outlet Universe The total number of places where the shopper makes a final
purchase decision and buys the product. This includes all
possible places where the shopper can buy and consume, e.g.
hawker, kiosk, supermarket, cinema or café
Outlets per FTE Average number of outlets served per sales rep or DSM
Outlets per Sales Rep Number of outlets in sales rep territory
Formula:
Total # outlets served by HNK sales rep / Total # of HNK sales
rep
Passive (or Neutral) % of responsdents that are classified as Passives (score 7-8) in a
- NPS NPS survey
Formula:
% of customers/partners that score a 7/8 with the question on
“how likely are you to recommend working with HEINEKEN to a
friend?”
48 Sales
Path to Purchase A framework for understanding the purchase decision journey

of Shoppers (and On-Premise Consumers) considering pre-store,
in-store and post store behaviours. This framework is used to
develop insights that enable targeting of the most significant
opportunities and that they are activated at the right time and
in the right way.
Permanent Display Any display which is placed in store for a longer period of time
(1 Yr+) and usually negotiated as a part of the main contract.
Permanent displays are usually placed in 1 single pre-planned
and pre-identified location within a store. Could be a cooler,
metal rack, permanent branded gondola end
Personalization Integral to the customer journey and is now a key driver of

brand loyalty across all channels. Consumers are much more
likely to buy from brands, both in-store and online, when offers
are personalized.
Personas Fictional customer types created to represent real target

customer groups that can lead to better segementation,
tailored activities & investments
Persuasion All activities at the Point of Purchase related to actively or

passively recommending a particular brand or product.
Picos availability % Average score of availability on Focus SKUs (aggregated at

Opco level for all outlets) according to PICOS measurement
49
‘Personas’
Fictional customer types created to represent real target
customer groups that can lead to better segementation,
tailored activities & investments.
50 Sales
PICOS availability Average score of availability of Strategic brand 1 SKUs

score % Strategic (aggregated at Opco level for all outlets) according to PicOS
Brand 1 measurement.
PICOS availability Average score of availability of Strategic brand 2 SKUs

score % Strategic (aggregated at Opco level for all outlets) according to PicOS
Brand 2 measurement.
Picture of Success PicOS The Picture of Success is what we expect to see in every outlet
every day covering the execution of the portfolio including
both permanent as well as promotional activations. A PicOS is
channel specific and it is a workable outlet standard for sales
reps to execute effectively at outlet level.
Planned Purchase A purchase the shopper intended to make before entering the
store
Planogram A schematic diagram used to direct the exact placement of

specific SKUs on store shelves. Planograms typically are created
for product categories and sub-categories
Point of Consumption It is the point where a product is consumed.
Point of Sale / Point of Is a place where a shopper can pick a product, this is where the
Purchase shopper has the opportunity to see, find and buy products
51 Sales
Point of Sale Material POSM Communication material used to advertise products;

communicate promotions, offers or price points in an outlet e.g.
shelf talkers, header signage, Posters
Price Compliance % of outlets compliant with Recommended Retail Selling Price

(RRSP)
Formula:
# of evaluated outlets compliant with RRSP / Total # of
evaluated outlets selling HNK products
Price segments Breakdown of overall market into premium, mainstream and

economy
Primary Location / The principle location, display or shelf and main selling area of
Primary Display/ the category (or category isle).
Primary Shelf
Primary Packaging The packaging of a product that touches the food item. This
is the item that people usually buy and in which the product is
presented.
Promoter (NPS) % Promoters/advocates on working with HEINEKEN
Formula:
% of customers/partners that score a 9/10 with the question on
“how likely are you to recommend working with HEINEKEN to a
friend?”
52 Sales
Promotion Compliance % of outlets in compliance during promotion execution
Formula:
# outlets compliant during promotion execution / Total # of
outlets that executed promotion
Quality The HNK standards as against which our portfolio should be

available and served at the point of sale.
Retail Environment A type of retail outlet or groups of outlets which cater for
similar shopper needs and share similar characteristics;
typically defined by: size of outlet, mission and shoppers’
attitudes.
Exist multiple retail environments, each of them satisfies a

variety of shopper needs
1. Hypermarkets
2. Supermarkets
3. Discounters
4. C-Stores
5. Groceries/M&Ps
6. Kiosks
7. Specialists
8. Club Warehouse
9. Wholesalers
10. Online Pure Players
11. Online Brick & Clicks
12. Online Quick Commerce
53 Sales
Relationship All activities that help build and manage the professional short
Management and/or long-term partnership with customers/RTC partners,
(Customer Value Driver) continuously developing a mutually beneficial approach.
Repeat order rate Percentage of repeat orders on the eB2B platform (of total
orders)
Retention rate % of platform users continuing to use the platform over a given
timeframe
Return on Investment ROI Return on Investment is a performance measure used to

evaluate the efficiency of an investment or to compare the
efficiency of a number of different investments. To calculate
ROI, the benefit (return) of an investment is divided by the cost
of the investment; the result is expressed as a percentage or a
ratio
Route-to-Consumer All steps covered in bringing products from brand owners to

consumers being both physical as well as digital
Route-to-Consumer RTC GRIP Diagnistic tool to assess the OpCo's RTC Grip on the market
GRIP based on 4 pillars: Customer Loyalty, Distribution Power,
Execution Excellence & Transaction Capture
54 Sales
Route-to-Consumer A process to assess OpCO’s RTC Grip, which will be crucial

Powermap Assessment to define RTC strategy and ultimately serve as an enabler
of Commercial strategy. The assessment is a joint exersize
between Global Commerce and the OpCo
Returnable Packaging RPM Packaging that can be returned to the vendor for reuse or for
Material legal reasons against which a deposit is collected and refunded
RPM Circulation Time The time required to complete a cycle from the filler until the
RPM returns to the production location
Formula:
(Return date – Production date); weighted by # of bottles (or
other formats) shipped from specific production locations
RPM Market & Site Loss The proportion of RPM items which is broken, discarded,
disappeared or lost at the production locations or in the market
and therefore will not become available again
Formula:
(Volume shipped – Volume returned) / Volume shipped into the
market
RTC Strategy A review and plan of an OpCo Omnichannel Sales and

Distribution approach. This review would consider Channel
Strategy objectives and then identify the most effective and
efficient Touchpoint Strategy to win in all Channels and/or
Customers
55
‘Point of Sale’
Is a place where a shopper can pick a product, this is where the shopper has the
opportunity to see, find and buy products
56 Sales
RTC x Channel Intersection of Route to Consumer (Direct or Indirect) and

Channel (Traditional or Modern, On Trade or Off Trade)
RTC GRIP: Ability to create and retain loyal customers that spend more
Customer Loyalty
RTC GRIP: Ability to ensure availability of the HNK portfolio in outlets,

Distribution Power directly or indirectly through capable partners
RTC GRIP: Ability to execute PicOS/ePicOS at the Point of Sale, influencing

Execution Excellence consumer & shopper behavior
RTC GRIP: Ability to own the transaction and capture data from
Transaction customers and consumers
Capture
57 Sales
Sales Force Automation SFA Sales Force Automation systems are information systems used
in Customer Relationship Management (CRM) marketing and
management that help automate some operational functions.
They are often combined with a Marketing Information
System. SFAs can include a Contact Management System
which tracks all contact that has been made with a Customer,
the reason for the contact, and any follow-up that may be
needed. This ensures that Sales efforts are not duplicated,
reducing cost & the risk of irritating Customers. SFAs can also
include Sales Lead Tracking Systems, which lists potential
Customers through paid phone lists, or Customers of related
products. Other elements of an SFA system can include Sales
Forecasting, Order Management and product information.
Please note that SFA (information system) is often confused
with Salesforce.com (vendor of CRM systems)
Sales Promoters Personnel active in on-trade outlets, promoting the

consumption of HNK brands to consumers at the outlet
Sales Rep Payout Average % variable compensation received by HNK Sales Rep
Realization
Formula:
Avg. % SR variable compensation realized / Max achievable
Sales Rep variable compensation
Sales Rep (SR) Variable % mix of HNK sales rep compensation composition, focusing on
Compensation variable comp and contribution from execution KPIs
Formula:
% SR Variable compensation: Avg. sales rep salary from variable
comp. / Avg. sales rep salary
58 Sales
Salesforce Routing Rate at which the planned routes were visited at the intended
Compliance date and frequency
Formula:
# of outlets visited according to plan/# of Planned Outlets
Secondary display / Placement of product in a location separate from its main shelf
Secondary placement position or hot zone. Can be permanent or temporary (floor
stand, pallet display, dump bin, gondola end, cooler, metal
rack). NOT: shelf decoration, hangers
Secondary Packaging A variation of SKU with packaging visible to the consumer/

shopper used to contain multiples of the primary SKU - usually
sold together as one unit e.g. 12x pack of 330ml bottles, 4x
pack of 440ml cans
Secondary space A secondary placement away from the main category isle in
Off Trade (e.g. Display, Gondola end, Pallet displays)
Sell-in Products sold from HNK to distributors/sub-distributors/

wholesalers; includes basic sell-in activities (low value-added
basic activities such as order taking, invoicing, collection and
credit, logistics delivery) and value-added sell-in activities
(prospecting and relationship building, account planning and
tracking, pricing, trade terms and contracting, proactive selling)
59 Sales
Selling All activities performed by the brewer or one of the RTC

partners comprising: selling and negotiating outlet contracts,
securing product listings, selling of promotions and activations,
agreement on product assortment and overall relationship
management
Selling Story It is one common framework (usually a one pager) which gives
a snapshot of a growth driver/ NPD. It starts with background
brief, defines the growth driver/NPD/ idea relevance, reinforces
its benefits, handles objectives, negotiates and finally closes
with a contract/sales order
Sell-out Products sold to end-consumers (incl. management of stock,

technical services, PicOS and outlet asset investment, promos
and pricing execution)
Sentiment Analysis As applied to understanding consumers, Sentiment Analysis

refers to the systematic process of identifying specific aspects
related to a particular product or service feature, extracting
them, quantifying them, and analyzing the data. The
method uses natural language processing, text analysis, and
computational linguistics
Service (Customer All activities undertaken to facilitate the order generation,

Value Driver) delivery & merchandising of product. Also includes
maintenance of Heineken equipment related to selling the
product
60 Sales
Service standards Guidelines for employees to follow when interacting with

customers. E.g., ordering conditions, delivery conditions, and
product or working capital related conditions
Share of Asssortment Space given to a certain segment (e.g. Mainstream Lager

vs.Premium Lager vs specialties)
Share of Market Value/Volume/Transaction share of business as a percentage of

the total business for that category in a particular geography
Share of Shelf index Shelf Share divided by Value Market Share
Share of Shelf/Space Share of space refers to the current space of all SKU's as a % of
the total beer space available in the shop floor of the outlet. It
can be measured by primary shelf space, fridge shelf space or
secondary shelf space
Formula:
Total HNK SKU's visible shelf space (meters) / total relevant
categories visible shelf space (meters) at outlets
Share of Wallet % share of HNK beer / total beer available for sale in outlet
(Forward Stock)
Formula:
Vol. of HNK beer available for sale in outlets / Vol. of beer for
sale in outlets
61 Sales
Shopper An individual who purchases products or services for

themselves or others to consume or use
Shopper Insights An indepth understanding about shoppers and/or their

shopping habits that can inspire actionable ideas to drive
competitive advantage, and modify behaviors
Shopper Lens Any observation/conclusion/analysis made keeping the shopper

behavior as the primary lever/ focus
Shopper Marketing Insights-driven marketing and merchandising initiatives to

satisfy the needs of targeted shoppers, enhance the shopping
experience, and improve business results and brand equity for
retailers and manufacturers
Shopping Mission The primary reason for someone to visit a Retail Environment
(the intent of a mission is to actually buy something). There are
distinct Missions based on the number of categories selected.
E.g.,
Small: 1-3 categories

Medium: 4-7 categories
Large: 7+ categories
Spans of control Average number of direct reports to manager

62 Sales
Stock keeping unit SKU A numerical identification tag given by a retailer to a specific
product, brand, flavor, variety and/or package size
Stronghold Regions Regions where HNK is the market leader or strong #2 player (i.e.
close to market leader)
Sub-distributor Buys from distributors or other sub-distributors, sells to

customers. Either through delivery and/or cash & carry. Can
have the opportunity for consumers to buy products. In AMEE
often refererred to as bulkbreakers
Formula:
% of outlets in addressable universe that is served by sub-distr.
indirectly for HNK
Supermarket Self-service stores with a grocery product offer. Depending on

individual store sizes or concepts there are also a limited range
of non-food items available. Between 2-20 check-outs, 400
sq.m - 5000 sq.m store size, with an assortment of 7500-20000
SKUs, Mostly large shopping mission but all missions occur
Supply chain Activities required to manufacture and transport raw materials

to finished goods in the brand owners’ warehouse
TeleSales (Frontline) Staff directly associated with sales over telephone (inbound
and outbound) and the handling of RQCs (requests, queries,
complaints) over telephone or chat
63 Sales
Territory/Price/Data Compliance of distributors on territory / price /data terms and

Compliance agreements with HNK
Formula:
# of territory/price/data compliance breaches identified from
distributors
The % of distributors' The revenue from distributors with whom we have a Joint
revenue covered by JBP Business plan in place divided by total revenue from (all)
distributors
Third Party Logistics Third party logistics in logistics and supply chain management
is an organization's use of third-party businesses to outsource
elements of its distribution, warehousing, and fulfilment
services. Third-party logistics providers typically specialize
in integrated operations of warehousing and transportation
services that can be scaled and customized to customers'
needs, based on market conditions, to meet the demands and
delivery service requirements for their products
Time in outlet Average time Sales Rep spends in one Outlet (minutes)
Formula:
Total time spent in Outlets in period / # of Outlets
Time required per Average time from landing page to finishing order (minutes)
order
64 Sales
Total Touchpoint The total number of interactions a Customer has with HNK
Interactions through on of the touchpoints per month e.g. visit, call center,
B2B, other
Touchpoint Strategy Touchpoint Strategy is the process of creating the best

connections (offline/online) with our customers to improve
customer experience and reduce (bad) cost to serve in each
step of the journey
Trade Census Research designed to deliver a reliable and consistent database

containing local market information at outlet level. A Trade
Census is executed by interviewing the outlet owner/manager
about data like outlet details, functional and motivational
segmentation, volume sold per SKU per week, purchasing and
selling price per SKU, source of supply, stock position, POSM
and fridges. The research can cover all outlets in the market
(full Trade Census) or a sample
Traditional Trade A sub-set of the Off-Trade Business Segment. Typically

including channels addressing ‘Over-the-Counter’ and ‘Self-
Service’ shopping occasions and made up of independently
owned outlets with a less clearly defined and/or flexibly
managed offer (eg. Pop&mom stores)
Traffic In Retail, refers to the number of shoppers in a particular area

of the store e.g. beer aisle, promo zone. In eRetail, referes to
number of visitors landing on your page/interacting with your
webstore.
65 Sales
Traffic Builder Products or segments or category that motivate people to a

particular retail environment. Categories e.g. like beer, bread,
milk etc. / could also be a special promotion.
Transaction The basket / trolley / item purchased by a person in exchange

for money on 1 occasion
Transaction Capture Ability to own the transaction and capture data from
(RTC GRIP) customers and consumers
Transaction Value Average Order Value (AOV) or Average Transaction Value (ATV).
The average value of all orders placed during a specific period
(usually a month). AOV is also known as Average Transaction
Value or ATV
Formula:
Total Revenue/ # orders
Urbanization rate % of population in urban areas
Formula:
# of population in urban areas / Total population
Value-at-stake The potential impact on an industry's operating profits that

will be generated as a result of implementing digital initiatives
(value addition) and/or the operating profits that will shift
between different industry players (value migration)
66
‘Traffic’
Number of shoppers in a particular area of the store. (see Footfall).
67 Sales
Visibility All activities that influence the visual presence of a particular

portfolio or category in or near the Point of Sale where the
purchase/shopping decision is made
Visibility Score (PicOS) The degree in which we are able to achieve the visibility items
as defined in the Picture of Success (PicOS) for the specific
outlet/channel
Formula:
Weighted achievement of the score on visibility items as a % of
the total possible score as defined in the picture of success
Visit Strike Rate Compliance of HNK sales rep in executing outlet visits as
required for routed outlets. Not to be confused with Order Strike
Rate. See Salesforce Routing Compliance definition
Visited Universe Number of relevant outlets that are visited by HNK directly
and indirectly (including for purposes of merchandizing, data
collection, order taking, delivery…)
Volume per FTE Average volume per HNK FTE (Full-Time Equivalent). Can be
defined at different levels (eg. Team, region, channel, total
salesforce)
Formula:
Total volume / Total # of HNK sales rep
68 Sales
Volume per Outlet Average volume distributed to each outlet
Formula:
HNK volume delivered to all outlet selling HNK portfolio/ total #
of outlets selling HNK portfolio
Weighted Distribution The % of outlets that a product is sold in but weighted by the
category volume of the outlets. Weighted distribution gives a
sense of the quality of distribution
Formula:
Total value of HNK sales in active outlets/Total value of
category sales in the market. Interpretable by category, brand.
X+1 Sales rep. receive individual, incremental, monthly and

stretching sales and execution KPIs for their routed universe
69
Revenue
Margin
Growth
70 Revenue Margin Growth
Base Discount Discount based on a customer’s strategic value within an OpCo.

Often in line with customer hierarchy or strategic customer
segmentation/tiering (e.g. Platinum/ Gold/ Silver/ ...)
Base Margin Difference between Retail Selling Price and List Price, excluding
all Taxes. Calculated field difference between the two price
points
Formula:
RSP - List Price excl. Taxes
Base price Average in store price excluding promotional discounts
Baseline Functional Baseline The profit you would have made if you wouldn’t have run the
Gross Profit FGP/HL promotion
Formula:
Sell-out Baseline x Baseline FGP/HL
Brand Equity Score A score used to describe the value of a given brand based on
the brand perception by consumers
Brand Portfolio Pricing BPP Capturing the full value of our brands and innovations through
optimized pricing in line with brand portfolio strategy
Category Value Drivers The levers that drive a Category’s performance within Channels
or Customers delivering:
P – More People (Penetration)
O – More Often (Frequency)
V – More Value (Expenditure)
Competitive set A selection of products that compete for the same consumers
in a given category, demand space or repertoire
Compounded Annual CAGR Means annual growth rate over a defined period of time
Growth Rate
Formula:
((Ending value / Beginning value) *(1/No. of years) – 1)) * 100%
Conditional Discounts Any incentive program whose terms reflect conditionality

requiring the customer to behave in a specific manner or satisfy
qualifying criteria intended for incentivizing trade
Cost of Goods Sold COGS The carrying value of goods sold during a particular period
Data Discount Discount for the receipt or access to Customer Data
Deep Promo Price reduced beyond normal promotional discount

Defensibility Ability to externally explain the differences in Trade Term value

between retailers
Discounts A reduction from a recognized (list) price
Distributor Own Brand DOB See Private label definition
Driver Tree Analysis to determine the influence of individual price

components (drivers) on sell out performance
Elasticity Describes the relationship between product price and product

demand (volumes sold)
Excise Duty Various excise duty regimes exist which is country

specific, e.g. alcohol strength, volume, degrees plato and ad
valorem. Each regime has its own calculation and determinants
Fold-in (List Price) A process of substantially reducing the list price and Trade
Terms for a given brand while remaining Net3 neutral (no
change in Net3 price); more info in TTOP manual
Forward Buy Loss Waste in promo expenses because of a difference between sell-
in and sell-out volume (= extra margin for the retailer)
Formula:
(Sell-in Promo Volume – Sell-out Promo Volume) x (FGP/HL
Promo-FGP Base)
Forward Buying Effect of retailers buying stock at promotional sell-in prices but
selling part of the stock to consumers at off-promo sell-out
prices
Gross Profit Margin GP Net margin from sales less taxes, discounts, promotions and
COGS
Formula:
GP as % of Net Revenue
Gross Retail Sales Total retailer revenues from a given product/brand/category
Gross Revenue Total income before any deductions or allowances
Formula:
Total Revenue excluding Discounts and VSE
Incremental Profit Determines actual incremental profit vs. ‘do nothing’ scenario
Formula:
Promo total profit – Baseline Profit – Forward Buy loss –
Cannibalized profit (expressed in ‘000 €)
Incremental Volume Determines actual incremental volume vs. ‘do nothing’ scenario.
Estimation of baseline volumes, cannibalization, forward
buy volumes and other effects should be consistent between
promotions in the OpCo
Formula:
Sell-in volume - Baseline Sell-in Volume without promotion -
Forward Buy Volume - Cannibalized profit
(expressed in HL)
Joint Value Creation JVC An intensified version of Joint Business Planning, covering the
full end to end collaboration between suppliers and retailers
aimed at long term value creation for both parties
Last Year LY Full previous year to the current year
Latest Estimate LE Latest estimate on expected periodical result.
List price The published price list excluding tax, duties, from which
discounts are deducted.
Logistics Cost of LOGS are Logistics Cost of Goods Sold

Goods Sold
Margin The difference between the in-store price excluding tax and
cost of production
Formula:
Incl. both mark-up on HNK/Distributor/sub-D sales (base/front
margin) & customer trade terms (back margin)
Mix Management Mix Management drives our packs and brands to where the
greatest growth and profit is by identifying the most attractive
combinations of brands, SKUs, regions, channels and customers
Moving Annual Total MAT Presentation of a given metric over the past 12 months
Net Sales Uplift Retail sales value increase (versus baseline), measured in
monetary value
Formula:
Increase in % or absolute vs Baseline sales
Net Sales Value NSV Value of sales after deduction of trade terms returns,
allowances for damaged or missing goods
Net VC Margin Uplift Margin pool increase (versus baseline) for entire Value Chain
(HEINEKEN + retailer)
Net1 The final price of a given product after deducting unconditional

trade discounts; sub total of list price minus all unconditional
trade driving discounts
Formula:
List Price - Unconditional Trade Discounts = NET1
Net2 The final price of a given product after deducting all discounts
and trade terms; sub total of Net 1 minus all trade driving
conditional and efficiency discounts
Formula:
Net 1 - Trade driving Discounts = NET2
Net3 The final price of a given product after deducting all discounts
and Trade Terms; presents the actual price retailer pays. Also
called Pocket Price
Formula:
Net 1 - Trade Driving Discounts - Consumer Promotions = NET3
On-shelf Availability The physical presence of an SKU on the shelf/shop floor

that acts as a key lever in PicOS scoring and Trade Term
negotiations
Order To Cash OTC Order To Cash is the process going from the Customer's order
(Purchase Order) to the Payment settlement
Pack Price Architecture Optimising pack line up to satisfy shopper/consumer needs

by delivering the right format, right pack, right price for each
occasion, channel and shopper mission
Pay-for-Performance Where the Customer has to deliver a counter performance in

order to receive the discount
Payment Settlement Reward for early payment of invoices. Commonly tied to

Discount payment date terms, often contained in contracts (e.g. n/30,
cash payments, etc.). Often the sooner the invoice is paid the
higher the discount
Penetration Percentage of households that have purchased SKU at least

once in last year
Price Elasticity Describes the relationship between product price and product
demand (i.e. volumes sold)
Price Elasticity Gross Consumer/Shopper reaction to price change
Price Elasticity Net Portfolio impact of price change

78
‘Net 1,2,3’
Net 1 - The final price of a given product after deducting unconditional trade discounts;subtotal of list price
minus all unconditional trade driving discount
Net 2 - The final price of a given product after deducting all discounts and trade terms;
sub total of Net 1 minus all trade driving conditional and efficiency discounts
Net 3 - The final price of a given product after deducting all discounts and Trade Terms; presents the actual
price retailer pays. Also called Pocket Price
‘Pricing Waterfall’
Gross
Revenue Retailer
Margin
Discounts
Distributor
VSE Margin
Excise Duty
COGS
LOGS
Gross Profit Net Revenue Retailer Consumer Price

Price (RSP)
private label Beer offered under the retailer's own brand manufactured by a
3rd party brewer
Product Mix Mix of Products/SKUs to optimize revenue and profitability for

the OPCO
Profit A financial gain created by a sale of a product
Profit Capture Part of the profit pool taken, expressed in %
Profit Pool Describes the combined margin of HEINEKEN and its

competitor as the maximum potential profit
Promotion A temporary price reduction granted to our customers to pass

onto the consumers & shoppers to drive a change in behaviour
Promotional Baseline SKU sell-out volume that would have occurred without
promotional activity
Promotional Depth Percentage discount versus non-promo price when on product is

on promo
Formula:
[(promo price/non promo price)-1]
Promotional Temporary price reduction paid on invoice or given as a rebate

Discount to achieve lower consumer prices for a limited period of time.
It can be calculated against all orders, certified sales or a fixed
allocation
Promotional Measure of promotional success in terms of changing

effectiveness consumer behavior in a targeted way to drive brand / category
growth
Promotional Measure of financial success of promotional activities (return

efficiency on investment)
Promotional Cost of promotional discounts; including value loss due to lower

funding price
Promotional Guardrail on what should or should not be done when doing

Golden Rule promotions derived from analyses of past promotions
Promotional The amount of discount given to consumers

intensity
Formula:
[Promo pressure X Promo depth]
Promotional The method of applying promotional discount; for example 3

mechanic for 2, 20% off...
Promotional pressure Percentage of volume sold on promo
Formula:
[on promo volume/total volume]
Rate of sale Measurement of average number of units sold in a given time

period per outlet or customer
Recommended Retail RRSP Also known as recommended retail price (RRP). The price which
Selling Price the manufacturer recommends that the retailer sell the product
Relative market share Market share expressed in % compared to the market leader (or
closest follower for market leader)
Responsible, RACI Refers to a framework that governs roles in a process or a

Accountable, meeting
Consulted, Informed
Retail back margin Total retrospective investment or discounts expressed as a % of

the selling price (excl. VAT)
Retail front margin Difference between selling price and net income price
expressed as a % of selling price (excl. VAT)
Retail margin Total margin given to outlets
Formula:
Retail Back Margin + Retail Front Margin
Retail sales price RSP Price the consumer pays in store
Retail sales value RSV Value of total consumer spend on a given brand/SKU
Retrospective discount (Off Invoice discounts) Discounts that are paid retrospectively
Return on investment ROI The concept of an investment of some resource, yielding a

benefit to the investor. (A high ROI means the investment gains
compare favorably to investment cost)
Formula:
[(gain from investment-cost of investment)/cost of investment]
Revenues Total income of an organization (OpCo)
Sales Transference Data driven analysis that leverages market data to predict how
volume & value of a delisted SKU will transfer to other SKUs in
the market
Scale Discount Discount based on customer scale (revenue for OpCo) to

improve defensibility. Not driving/incentivizing trade or
consumer behavior to align with HNK strategic goals.
Secondary Placement Reward for permanent/temporary secondary display

Discount
Sell-in-price The price at which HEINEKEN sells the product to the Retailer;
equals Net3 price (List price minus all applicable discounts)
Sell-out-price The price at which the Retailer sells the product to the
consumer, equals RSP
Shopper Data Discount Reward customer for sharing data from their shopper
purchasing behaviours (selling out, frequency , basket size,
gender,…)
Short term incentives STI Usually refers to personnel performance incentives. Yearly
objectives set.
SNOW Funnel ServiceNOW (SNOW) tracks delivery of Gross Savings and

RMG initiatives linked to EverGreen. It uses a unified approach
including stages gates, and clear roles and responsibilities to
enable disciplined execution.
Spillover Value of sales sold through channel A meant to be sold through

channel B; for example, value of products bought by bar owners
at retailers instead of distributors
Stock Keeping Unit SKU A specific unit of inventory that is carried as a separate
identifiable unit. A pint bottle and a quart bottle of the same
product would be separate SKUs for physical distribution
definition
Strategic plan SP Refers to the strategic plan that OpCo prepares once a year for
the following 3 years
Strategic Portfolio SPO Reduce costs to re-invest in profitable growth, by simplifying

Optimization and right-sizing our SKU portfolios based on consumer and
customer needs, while allocating resources intentionally, end-2-
end
Substitutability Measure of how likely consumer is to buy a different product

instead
Temporary Price TPR A promotion or price reduction for the retailer that is for a short
Reduction period of time
Trade lever Trade Investment categories/buckets; presents 27 investment

levers that are used as the basic unit of Trade Term allocation
Trade Margin Trade Margin is the profit made by the Trade/Customer (can be
in absolute or in %)
Formula:
Trade Margin = Retail Price - VAT - Net 3
Trade Term TTOP Refers to program to run for optimizing and improving trade
Optimisation Program terms
Trade Terms TT The investment and discounts that we grant our customers to
(Financial Terms) support and sell through our brands to our consumers
Trade Terms Non- Used to indicate if a trade term is ''working'' for Heineken: i.e. is
(Non-Working) working term driving specific customer behavior beneficial for Heineken?
TT Structural, unconditional terms are also called 'non-working' as
they are provided without a counterpart to it
Trade Terms (Working) Working Used to indicate if a trade term is ''working'' for Heineken: i.e. is
TT term driving specific customer behavior beneficial for Heineken?
Trading down Buying a product that is less premium than the reference
product
Trading up Buying a product that is more premium than the reference

product
87
‘Trade Terms ’
The investment and discounts that we grant our customers to support and sell through our brands to our
consumers
Trade Terms - Working: Used to indicate if a trade term is ''working'' for Heineken: i.e. is term driving
specific customer behavior beneficial for Heineken?
Trade Terms - Non-Working: Used to indicate if a trade term is ''working'' for Heineken: i.e. is term
driving specific customer behavior beneficial for Heineken? Structural, unconditional terms are also
called 'non-working' as they are provided without a counterpart to it
Uplift The actual real increase in margin/sales/volume due to an

intervention (Margin, Sales, Volume…)
Value Chain Profit Split of total value chain profit pool to brewer, distributor/sub-D,
Share and outlet
Formula:
Total value chain profit pool = Brewer profit pool + Distributor/
Sub-D profit pool + Outlet profit pool
Value Chain The sum of all entities that are involved in bring the product
to the consumer; example: The sum of HEINEKEN and Retailer
margin (off-trade) or HEINEKEN, distributer and restaurant
owner margin (on-trade)
Volume/Price/Mix VPM The split of value creation across drivers (Volume, Price & Mix)
89
E-Business
90 E-Business
A/B Testing A/B Testing or split testing involves presenting two versions
of something, such as a marketing campaign or product
images, to different consumers. The goal is to determine which
version resonates strongest or boosts sales more significantly.
A/B Testing can also take place on a website where we
test different versions of the same thing to get a better
understanding of consumer behaviour.
API API Application programming interface refers to a set of tools,

functions and procedures which allow software applications
to communicate with one another. The reason programs
would have an API is so there is a description of the standard
way other programs can access that program. In this way
any programmer who has a description of the API can make
software that can connect to the API. API's are often used to
allow companies to easily share their information.
B2B Platform Online environment allowing customers and distributors to

browse through and buy products
Bricks & Clicks Cluster of retailers products both online (clicks) and off line
(bricks). Their business originated offline. Bricks & clicks refer
to the online extensions of the brick and mortar convenience
stores and supermarkets
Bricks & Mortar A business that operates conventionally rather than (or as well
as) over the internet
91
‘B2B Route
to Consumer’
RTC entails the combination of RTM + Excellent Execution, building strong physical/
digital customer and consumer connections
Flow of goods Consumer needs/ occasions/ $
Raw material Brand owner Brand owner Distributor Sub-Distributor Wholesaler Customer Consumer
source factory warehouses Outlet
Supply Chain Route-to-Market Excellent Execution
Channel Segments
Fragment. Brand owner Distributor Sub-distributor Wholesaler Outlet

Trade
Modern Direct from brand owner to outlet

Trade
Digital Direct from brand owner to consumer (D2C)

Brand owner Distributor Sub-distrib. Wholesaler Outlet
B2B (through all value chain that exists)

92 E-Business
Business Transaction BTV Business Transaction Value. Measures the value of digital
Value transactions with our customers, excl. VAT and transactions
coming from 3rd aprty goods sold by the vendors. It excluses
transactions between breweries and distributors.
Business-to-Business B2B Business-to-Business refers to transactions between two

companies, instead of sales to consumers
Business-to-Consumer B2C Business-to-Consumers refers to transactions between a seller

and a consumer
Call to Action CTA A call to action refers to any request for the customer to do a
particular task, like sign up for a newsletter, make a purchase,
or ask for more information about a product
Click-Through-Rate CTR Click-through-rate is a metric that measures how well your

marketing campaigns are performing. It's calculated by
dividing the number of shoppers who clicked on an ad by the
number of impressions the ad receives. A lower CTR usually
means that your ads need a refresh. A high CTR generally
indicates your marketing content is relevant to your audience.
Consumer Insights CI Consumer insights relates to information about a seller’s

current or prospective customers, usually generated by
gathering data from a range of sources
93 E-Business
Content Management CMS Content management services refers to technology and

Service services used to create, publish, edit, and manage a range of
website content, including landing pages, blogs posts, and
more
Conversion Rate CR The conversion rate is a metric that refers to the number of
visitors to your website that make a purchase compared to
your total number of website visitors
Conversion Rate CRO Conversion rate optimisation refers to the process of adjusting
Optimisation the website visitor's experience to increase the chances of
conversion
Cookies Cookies are small text files that track a website visitor’s actions
while browsing often used for optimizing user experience,
analitics and ad targeting. These cookies are managed by your
browser (e.g. Chrome, Safari etc.)
Customer Outlet Data COD Customer outlet data is data that is collect based on the
transactions that are conducted through one particular outlet.
94 E-Business
Customer Relationship CRM Customer relationship management refers to software

Management designed to enhance and track customer interactions with the
goal of improving processes and driving profitability. Items
like customer contact information and appointments can
be monitored with CRMs. Well known customer relationship
management tools are Salesforce.com, Microsoft Dynamics
CRM, SAP AG and Oracle
Data Drive Sales DDS Data Driven Sales is a 4-step thinking frame that helps
OpCos unlock the power of big data and advanced analytics
within the sales domain. It helps OpCos to: (1) Prioritize use
cases by value opportunity (Power Decisions); (2) Leverage
(advanced) analytics for the creation of relevant insights
(Advanced Analytics); (3) Validate the data insights in real-life
circumstances (Test & Learn); (4) Unlock value at scale (Scale-
Up & Embed)
Data visibility % of data visibility tool/% volume deployed/attributable to

sales rep, distributors, sub-distributors and outlets
Formula:
# of HNK sales rep with SFA equipped / total # of HNK sales rep
Digital Investments Digital investments in the last 5 years, % GDP
Formula:
Digital investments in last 5 years/ current year GDP
95
‘Data Driven Sales’

DDS: Data Driven Sales is a 4-step thinking frame that helps OpCos unlock the power of big data and
advanced analytics within the sales domain. It helps OpCos to:
1 Prioritize use cases by value opportunity (Power Decisions);

2 Leverage (advanced) analytics for the creation of relevant insights (Advanced Analytics);
3 Validate the data insights in real-life circumstances (Test & Learn);
4 Unlock value at scale (Scale-Up & Embed)
96 E-Business
Digital Order Transfer DOT Digital Order Transfer is HEINEKEN's online B2B e-commerce
platform that supports online customer ordering and sales in
markets where HEINEKEN operates with an indirect-route-to
market. Via this platform HEINEKEN transfers customer orders
to third party distributors for completion and fulfilment
Digital payments % of e-commerce sales through digital payments

penetration
Formula:
Total amount of e-commerce sales through digital payments /
total e-commerce sales
Digitally Empowered Salesforce equipped with electronic devices and software that
Salesforce allows for mobile access to customer CRM and B2B platform
Direct Traffic Direct traffic refers to website traffic generated by the visitor
typing your site’s URL into the browser, or accessing your
store’s website link through a saved bookmark.
97 E-Business
Dynamic Data Exchange DDE Dynamic data exchange is an interprocess communication

system which allows data to be communicated or shared
between the applications in operating systems such as
Windows. DDE works based on the client and server model. The
application requesting the information is known as the client
and the application offering the information is considered the
server. An example used within HEINEKEN is the DDE program
that provides common tools and capabilities (framework and
training) for OpCo's to collect quality distributor data and
leverage the date to drive business results in order to provide
OpCo's with deeper and real time visibility into the route to
Market
eB2B Active Customers The # self-service eB2B customers (outlets) who have placed at
least one order on the eB2B platform in a given month.
eB2B Penetration % of HNK sales through eB2B
Formula:
HNK internal eB2B sales/ HNK total sales
eB2B Revenue The # self-service eB2B customers (outlets) who have placed at
least one order on the eB2B platform in a given month.
EBusiness Digital sales tools to support our business, customers and

consumers
98 E-Business
eBusiness to Consumer eB2C Digital platforms supporting our consumers (also through
customers). It supports them to sell more by providing
them services/technology. Examples within HEINEKEN are
DRINKIES Malaysia delivering beer, wine, spirits within 1 hour
to consumers by using an independent distributor. Or SWIFTY
supporting on trade customers (bars/restaurants) with order,
pay, and loyalty technology. Key element of the business model
is that the brand manufacturer owns the transaction (data).
However there is a customer involved
eCommerce or Electronic commerce refers to the activity of electronically

Electronic Commerce buying or selling products via online platforms or over the
Internet
eCommerce Platform An ecommerce platform refers to the software solution
that provides sellers with critical eCommerce tools, such as
shopping cart functionality, as well as operation management
benefits
eProgress Measures the split between online (BTV) and offline sales. It
reflects the progress of digitization.
eRetail iB2C (Indirect Business to Consumer). Sale of goods to consumers

through online retailer owned platforms. Indirect B2C or
eRetail comprises of all online channels through which
products are sold to the end customer that are not owned by
HEINEKEN.
99 E-Business
eRetail (Online Retail) Online sale of goods to the public in relatively small quantities
for use or consumption rather than for resale. Online channels
of retail (eRetail) include: Bricks and Clicks, Pureplayers and
Last Milers. When CPGs own any type of eRetail channel, they
are commonly known as D2C (direct-to-consumer) eCommerce
platforms. *HEINEKEN’s Global eRetail team focuses on
building and strengthening eRetail partnerships, as creating
and managing a D2C eCommerce platform requires different
capabilities. However Beerwulf, Glup and Drinkies (for example)
are considered eRetailers by consumers and therefore are part
of the eRetail Landscape of the markets they operate in.
eRetail coverage in The revenue from eRetail customers where we have a Joint
JBP % Business plan in place divided by all e-Retail customers
eRetail Sell Out Volume Total volume of good sold through eRetail platforms.
eWholesale The business of selling of goods online in large quantities and

(Online Wholesale) at low prices, typically to be sold on by retailers at a profit.
Excellence EOE Excellence Omnichannel Execution refers to a pragmatic

Omnichannel framework that creates a common language around sales
Execution execution with a focus on common key performance indicators
and principles and involving an annual audit. Excellence
Omnichannel Execution is now implemented in almost
all HEINEKEN OpCos and really is making a difference in
HEINEKEN's overall sales approach
100 E-Business
Food delivery Services/ platforms that deliver prepared meals and drinks that
were ordered online for direct consumption
Front-End-Development A front-end system is part of an information system that is

directly accessed and interacted with by the user to receive
or utilize back-end capabilities of the host system. It enables
users to access and request the features and services of the
underlying information system. The front-end system can be a
software application or the combination or hardware, software
and network resources. In short the front-end is what we see
such as buttons, text, beautiful colors and the layer you see on
your screen when interacting with a system or platform
Gamification Gamification is the process of integrating game-design

elements and principles into products in an effort to drive user
engagement
Geo-marketing An advertising approach that displays specific ads to people in

a particular geographic region, such as a country, state, or city
Gross Merchandise GMV Value of all products sold via our eB2B platforms. This includes
Value both HNK and third-party products including all duties.
Bigger in value therefore than BTV as it includes: VAT, excise
and discounts and that’s how it is measured in eCommerce,
what customer sees on the screen before check-out is GMV
101 E-Business
Individual Data iDDM It's an important way of getting closer to consumers. It's
Driven Marketing about using consumer data - think about an individual's
location, behaviors or preferences, for example - to offer more
personalized marketing campaigns to very different consumers
- which drives engagement and sales and thus improve the
impact of our marketing spend and brand communication.
Landing Page A landing page is the first page a user lands on. Landing pages
are often tied to ads and search results and are designed to
meet specific conversion goals
Minimum Viable Product MVP A minimal viable product is a version of a product with just
enough features (basic functions) to satisfy early customers
and provide feedback for future product development.
Products are often launched as MVPs in order to release a
product quickly and to gather valuable user feedback to
further improve the product
O2O O2O O2O means "Online To Offline" but also "Offline to Online",
indicating the two-way flow between the online and the
physical world, especially retail and eCommerce
Offline value market The Value Market Share of all HEINEKEN’s products sold offline
share via all off trade customers. Offline Market Share data can be
obtained through either third-party suppliers (like Nielsen or
IRI) or directly via Retailers
102 E-Business
Omnichannel Omnichannel refers to a selling approach that recognizes the

numerous touchpoints that a Customer/Consumer/Shopper
has available to interact with our company and brands across
multiple platforms, including mobile, in-store, websites, call
centers, chatbots, face-to-face etc.
Online Fair Share Online share divided by offline share expressed as an index.
Online Market Place An online market place is an e-commerce site or application

that supports online shopping where the site owner does
not maintain the product inventory, instead displaying items
available through other sources, like third-party sellers. In an
(online) marketplace, consumer transactions are processed by
the marketplace operator and then delivered and fulfilled by
the participating third party sellers or their logistics providers.
In general, because marketplaces aggregate products from a
wide array of third party providers, selection is usually more
wide, and availability is higher then in-vendor specific online
retail stores. main examples of successful marketplaces are
Amazon, Ebay, TaoBao and Flipkart
Online value market The value market share of all HEINEKEN’s products sold via
share online retailer platforms to consumers in a particular market.
Online Market Share data can be obtained through either 3rd
party suppliers (like Nielsen or IRI) or directly via eRetailers.
103
‘NPS Drivers’
NPS drivers for detractors/passives (to be improved) and promoters (satisfied)
Drivers % to be improved satisfied %
Sales or Account Management 4763 14% 86% 29823
Delivery 5432 16% 84% 27629
Ordering 5252 17% 83% 26554
Business Support 6365 22% 78% 22322
Product Quality 2820 15% 85% 16366
In-store execution Off Trade 3827 21% 79% 14835
Customer Service 854 10% 90% 7408
Technical Services / Product Quality 1215 16% 84% 6272
Invoicing / Finance 814 13% 87% 5477
Online Portal 316 31% 69% 705
Field / Account Management Off Trade 1 100%

104 E-Business
Open Source Open source software refers to a type of software inwhich

the source code (the original code of a programas written by
the program's creator) is available or "open" for use, study
alteration and distribution by anyone for any purpose. In
the open-source community, code is typically created as a
collaborative effort in which programmers improve upon the
code and share the changes within the community. Open-
source usually means that the software is free and that you
can modify and use it without costs
Opt-In Opt-in refers to the act of giving active consent to be included,

such as providing contact information for the purpose of
joining a mailing list or receiving in-app notifications
Order Management OMS An order management system is a software solution or

System platform that provides oversight into order filling activities
Owned Transaction eTrade. Owned transaction is HEINEKEN's online B2B

eCommerce platform that supports online customer ordering
and sales in markets where HEINEKEN operates with an direct-
route-to market. Via this platform HEINEKEN sells directly to
end-customers (transaction owned by HEINEKEN).
Page views Page views or page impressions refer to a metric showcasing

how often a webpage is viewed by a visitor
105 E-Business
Payment Service PSP A payment service provider is a third party that enables a
Provider seller or company to accept certain forms of payment, such as
accepting credit cards or debit cards through the online store.
Popular PSP's are PayPal, Klarna and Adyen
Pay-Per-Click PPC Pay-per-click is a form of advertising where the brand is

charged for digital ads only when a user actively engages with
the advertisement by clicking on it
PCI Compliance PCI compliance is a standard that credit card companies

require to ensure credit card processing and personal
information is secure
Primary Drivers (NPS) Represent the drivers of (dis-)satisfaction that influence

NPS responses by customers. They are presented as number
of responses by promoters ("satisfied") against number of
responses by detractors and passives ("to be improved") per
driver. After being grouped into promoters and detractors, NPS
responders are asked to select the specific reasons for their
(dis-)satisfaction.
Product View Rate PVR Product view rate is a metric that compares the number of
times a product page was viewed in comparison to non-
product pages on the website
106
‘Omnichannel’
Omnichannel refers to a selling approach that embraces numerous touchpoints,
including websites, call centers, chatbots, brick-and-mortar stores, etc.
107 E-Business
Proof of Concept POC A proof of concept is an exercise in which work is focused on

determining whether an idea can be turned into a reality. A
proof of concept is meant to determine the feasibility of the
idea or to verify that the idea will function as envisioned
Proof of Value POV A proof of value takes a deeper dive into the value of that
solution for the business or for the user or customer, so you can
justify adoption and measure success
Prototype A prototype is an early sample, model, or release of a product

built to test a concept or process. It is a term used in a variety
of contexts, including semantics, design, electronics, and
software programming. A prototype is generally used to
evaluate a new design to enhance precision by system analysts
and users
Pure players Retailers that started of selling products solely online. Some
of them are opening physical stores in addition to their online
business. Pureplayers include Marketplaces (like Amazon and
Mercado Libre), Online Supermarkets (like Ocado) and Quick
Commerce (like Gorillas and Getir)
Quick Response QR QR code. A quick-response barcode is a machine-readable code

Barcode code consisting of an array of black and white squares, typically
used for storing URLs or other information which is read by the
camera on a smartphone
108 E-Business
Sales Execution Mobile SEM Sales execution mobile is the HEINEKEN sales force
automation tool used by sales managers and sales reps to
plan, execute and evaluate sales visits. This tool delivers
information to the sales community of OpCo's in such a way
that it allows them to perform, be efficient, reduce paperwork,
capture data, acquire new outlets, activate in alignment
with marketing campaigns, capture orders, drive revenue
management, deliver PICOS, and optimize sales effectiveness
performance across all OpCos to a consistent standard
Search Engine SEM Search engine optimisation refers to the process of increasing
Marketing a website’s visibility in free, or organic, search results. It often
involves writing useful content on a website around words and
phrases users use in searches related to the brand’s product or
service. To measure your SEO within an eRetailer's own search
engine, calculate the % of HNK SKUs on sale that appear on
the first page of the webstore when typing category key term
(e.g. "beer" or "cider")
Search Engine SEO Search engine optimisation refers to the process of increasing
Optimisation a website’s visibility in free, or organic, search results. It often
involves writing useful content on a website around words and
phrases users use in searches related to the brand’s product or
service
109 E-Business
Shelf Image SIR Shelf image recognition refers to technology which digitizes
Recognition store checks and is important in gathering key consumer
information through AI. It is able to detect objects within an
image of a shelf and classifies them based on category, brand,
and item. If allowed under local law, it can also help track the
competitor brands, their product placements, brand presence,
and strategies. If a certain product does not perform well
when placed beside a competitor’s product, a new placement
strategy can be devised for it
Third Party Seller 3P A third party seller refers to a third party who makes use of
an online marketplace to sell products to consumers, where
the company or retailer behind the marketplace has no direct
involvement in fulfilment. Often, when a third party seller
wants to access a marketplace, they must pay the company or
retailer behind the marketplace an access fee, commission, or
both
Unique Selling USP USP. A unique selling proposition refers to a feature or

Proposition characteristic of your products or company that distinguish it
from others of a similar nature and make it more appealing to
consumers.
Use Case A use cases covers one aspect of the process with a value
proposition, a tech case, a business case and an impact
assessment attached to it
110 E-Business
User Acceptance UAT User acceptance testing consists of a process of verifying that
Testing a solution works for the user. It is not system testing (ensuring
software does not crash and meets documented requirements)
but rather ensures that the solution will work for the user (i.e.
tests that the user accepts the solution); software vendors
often refer to this as "Beta testing". User acceptance testing is
typically the final phase in the software development process
before the software is made available for full use.
User Experience UX User experience refers to an emotion, attitude, and

perceptions of users about a product, system, or service. In
other words, it is how you feel while interacting with an app or
website. Good UX makes a product useful, usable, desirable,
findable, accessible, and credible. Most websites try to create a
seamless and frictionless experience for their customer in order
to increase its online sales
User Interface UI The user interface is the point at which human users interact
with a computer, website or application. The goal of effective
UI is to make the user's experience easy and intuitive, requiring
minimum effort on the user's part to receive maximum desired
outcome
User Journey User journey refers to the sequence of steps a user may take
when interacting with something, particularly software, to
reach a particular action. A The journey is generally mapped by
those involved with user experience design, to get insight into
the overall experience of a specific user, in order to improve
and reduce the effort needed.
111
‘User Interface'
UI: The user interface is the point at which human users interact with a computer,
website or application. The goal of effective UI is to make the user's experience easy
and intuitive, requiring minimum effort on the user's part to receive maximum desired
outcome
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Vendor Management VMI Vendor-managed inventory is an inventory management

Inventory practice in which a supplier of goods, usually the manufacturer,
is responsible for optimizing the inventory held by a distributor.
A business model in which the distributor of a product
(business) provides certain information to a vendor (supplier)
of that product and the supplier takes full responsibility for
maintaining an agreed inventory of the material, usually at the
distributor's consumption location
113 E-Business
Business Agility though Standard BASE Link to video (Pedro)

Execution
Connected Brewery Link to video (Pedro)

CORE
Data Driven Sales DDS Link to video (Pedro)
Individual Data Driven Marketing iDDM Link to video (Pedro)
MyHR Link to video (Pedro)
Revenue Management Link to video (Pedro)
Sharp-X Link to video (Pedro)

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Triple

Dear Commerce community,

Anna Campagna Steven Siemer Murk Spits

• Below the Line • Channel Activation

• Customer Lifetime Value • Direct-to-Consumer • eRetail (Online Retail)

• New product innovations • Outbound Call Center • Planogram

• Proof of Value • Route-to-Consumer GRIP • Selling

A²QVP² All activities that drive value by influencing Consumers'/

These are A2QVP2:

Acquisition The process to capture new customers selling HNK portfolio

These are A2QVP2:

Adjacencies Categories located just beside our categories in store. E.g.

Affordability All activities that influence the price perception of a particular

Aisle A corridor in store

Assortment Agreed range of SKUs for an outlet or an RE, usually defined by

Assortment The range of products (brands/pack-types/categories) offered

Back-office / Support Non-customer facing support perssonnel in the sales function

Brand Block Merchandising practice in which all of a brand's SKUs are

Bulk Breakers Subset of sub-distributors. Sells to retailers or end consumer

Business segment A cluster of Channels with similar characteristics regarding

Buying Group Group or alliance that negotiates for a set of independent

Call duration Average duration (mins) of incoming telesales calls

Call duration Percentage of outbound TeleSales calls completed within the

Category A collection of SKUs/products/brands that share similar

Category Management A databased & insight driven management of product

Category Strategy The combination of a longer term category vision with

CF&VE % of Revenue Commercial Fixed and Variable Expenses. CF&VE % of Revenue

CF&VE costs Commercial Fixed and Variable Expenses. Incl. commercial

Channel A cluster of outlets with similar characteristics (e.g.

Channel Activation The operational process of annual planning, execution and

Channel landscape Analysis of all channels in the market regarding current

Channel Strategy A 3-year plan to achieve sustainable and profitable growth of

Closed-loop feedback Closed-loop feedback, or closing the loop, involves following

Complementary Complementary Categories are categories that go well in usage

Consumer The person who drinks the product, either in an On-Trade

1. Total Addressable Outlet Universe

2.Total Coverage/ Numeric Distribution Portion of

4. 4. Visited Coverage (by HNK SR)

Customer Advocacy Customer Advocacy is the measure to which customers actively

Customer Centricity A strategy that aligns the development and delivery of a

Customer Effort CES A customer experience metric that measures how

Voice of the Customer

Governance & Customer

Culture & Employee

Customer Facing Customer Selling

Customer Journey The complete sum of experiences that customers go through

Customer Journey A visual depiction (diagrammed or written) detailing the path

Customer Loyalty Customer Loyalty is a measure of a Customer’s likeliness to

Customer retention % of existing Customers that continuing ordering HNK products

Customer self-order % of orders completed solely by the Customer's effort, without

Customer Touchpoints A touchpoint is any interaction between a customer and

Demand Spaces A demand space is the intersection of context (the consumer’s

Depletions Sales by Distributors to the retail trade or other Customers (e.g.

DESIRE tool HNK tool to assess the capabilities of distributors and

Detractor (NPS) % detractors (people dissatisfied) on working with HEINEKEN

Development/ Percentage of low skill-low will distributors that have been

Direct Fulfillment RTC model in which HNK directly serves the

Direct-to-Consumer DTC Direct-to-consumer refers to the consumer brands or FMCG's

Direct-to-consumer RTC Model in which consumer is directly served via online

Direct-to-consumer RTC Model in which consumer is directly served via an Heineken

1. Total Addressable Outlet Universe

2.Total Coverage/ Numeric Distribution Portion of

4. 4. Visited Coverage (by HNK SR)