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Kesko case – The S.H.O.E competition Dr. Aleksi Horsti Development Manager K-Plus / Kesko Ltd

Kesko case – The S.H.O.E competition Dr. Aleksi Horsti Development Manager K-Plus / Kesko Ltd. Contents. Kesko Group in brief . Description of the S.H.O.E. competition . Results of the S.H.O.E. competition. Kesko is active in many product sectors. % net sales. % net sales.

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Kesko case – The S.H.O.E competition Dr. Aleksi Horsti Development Manager K-Plus / Kesko Ltd

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  1. Kesko case – The S.H.O.E competition Dr. Aleksi Horsti Development Manager K-Plus / Kesko Ltd

  2. Contents Kesko Group in brief Description of the S.H.O.E. competition Results of the S.H.O.E. competition

  3. Kesko is active in many product sectors % net sales % net sales Kesko FoodGrocery trade AnttilaDepartment storetrade 6% 41% Rautakesko Building and home improvement trade Kesko AgroAgricultural trade 8% 27% Other operating activities VV-AutoCar andspare parts trade 8% 10% Group’s total net sales€9,534 million (2007, IFRS)

  4. Growth and development in the Nordic, Baltic and Russian market areas • Finland: all divisions • Sweden: building and home improvement trade • Norway: building andhome improvement trade • Baltics: building and home improvement, agricultural and machinery, and furniture trade • St. Petersburg area: building and home improvement trade • Moscow area: building andhome improvement trade • Belarus: building and home improvement trade Finland5.3m Norway 4.5m St. Petersburg area 5m Estonia 1.4m Sweden9m Latvia 2.3m Lithuania 3.4m Moscowarea 15m Belarus9.8m Total approx. 56 million consumers

  5. Familiar and trusted store chains

  6. Market shares, 2007 (Finland) Shoe trade K-kenkä, Andiamo, Kenkäexpertti 11% Home technology trade Musta Pörssi 9% Sports trade Intersport, Kesport 33% Furniture trade Asko, Sotka 17% Other operating activities * 2007 ** incl. VAT

  7. The S.H.O.E. competition

  8. Short description of the shoe competition Objective • Come closer to Andiamo’s target group of clients witha new and innovative way Basic idea • In the competition everybody had a possibility to design and plan his/her own shoes that may be produced as a part of Andiamo’s normal shoe collection in the spring 2009. Implementation • The shoe competition was actively promoted in Andiamo shops, radio, TV, magazines, Andiamo shoe club’s direct e-mailings, Internet sites, and Facebook during the spring 2008 • The Shoe competition was organized by the following participants • Andiamo – one of Kesko’s retail chains • Pirkka magazine – a magazine of the Kesko’s customer loyalty program • Voice – a famous Finnish TV and Radio station among the youths

  9. Short description of the shoe competition Timetable • Registration Jan 21 - Feb 10 • all the drawings and plans of the shoe designs should be uploaded into internet. • Semifinals Feb 14 - Feb 29 • competitors to the semifinals were decided by the jory • altogether 20 competitors were qualified • Finals Mar 5 - Apr 27 • 6 best were qualified (3 chosen by the voters and 3 by the jory) • INCLUDING A FACEBOOK TRIAL • Selection of the winner 30 Apr • the winner is chosen by voters Prizes • Flight tickets to Milan • Several shoe vouchers both for the competitors and the persons giving their votes • The winner • visits in the shoe factory in Portugal • gets a bonus of 500 € if his/her shoe design is decided (by Andiamo) to produce as a part of the Andiamo’s shoe collection 2009.

  10. Results of the shoe competition • Altogether over 600 competitors uploaded their shoe designs • About 3 500 votes by SMS and post cards in the competition • Results of the Facebook campaign • 5 weeks period in the end of the competition • 30 000 club members took part in the Facebook by the Andiamo club e-mailing (190 000 members in total) • 16 000 new Andiamo Club members through Facebook. Three times more than expected! • 10 000 participants in the best days • 53 449 uploaded the Facebook application participants • 48 908 Uploaded the application after two weeks!

  11. During the first 3 days, about 34 000 application downloads! Main page of the Facebook application Huge start of the Facebook campaign

  12. The winner of the shoe competition • The winner is 17-years-old girl • She got 25% of votes

  13. The winner of the shoe competition • ”Andiamo by Sonja” –collection will be in the Andiamo stores in March 2009 • Andiamo Club members have a possibility to make an advance booking

  14. Thank you! Dr. Aleksi Horsti Development Manager K-Plus / Kesko Ltd aleksi.horsti@kesko.fi

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