1. Copyright 2005 ACNielsen Shopper Trends 1 March 2005 SHOPPER TRENDS 2004

2. Copyright 2005 ACNielsen Shopper Trends 2 Research Objectives To provide retailers and manufacturers with a comprehensive overview of the Romanian/Bucharest retail environment Understand the local consumer: what they buy, when they shop, where they shop – and why Identify the key factors driving shopper satisfaction and loyalty What differentiates one retailer from another? Store Equity: how strong is it, and what factors are driving it? How do shoppers rate retailers on key drivers of satisfaction and loyalty?

3. Copyright 2005 ACNielsen Shopper Trends 3 Research Methodology  Target Respondent  Sampling  Interview Methodology  Sample Size  Sample segments  Fieldwork Period Primary Grocery Shopper for household, 15-65 years Randomly selected respondents that meet the screening criteria and live in Bucharest Face-to-face home interviews 500, with the following split: 338 Main Shoppers* 162 Key Influencers** gender: 70% of female / 30% of male age: 15 - 24 yrs – 15%35 - 49 yrs – 33% 25 - 34 yrs – 25 %50 - 65 yrs – 27% November, 2004 *Main Shopper: The person in the household who is mostly responsible for most of the food, grocery, and personal care shopping. **Key Influencer: The person in the household who is not most often doing the household shopping, but who frequently buy food, grocery and personal care items for the household or actively participate in the decision-making.

4. Copyright 2005 ACNielsen Shopper Trends 4 Shopper Trends Executive Summary - Retail Environment The purchasing power is low compared to the CEE-countries, nevertheless the situation should improve due to a lowering inflation (however still very high compared to CEE) and a GDP which is on the increase the past 3 years. Modern trade is evolving also in Romania compared to other CEE countries, but this sector is still in its infancy (only 7 hypermarkets, mainly Bucharest based) Overall store numbers are decreasing significantly, while modern trade outlets are on a slight increase due to the consolidation process happening. Value shares of modern trade in Romania has jumped to the level of neighbouring countries within the last year. Traditional trade still represents over ¾ of total trade in this country. There is currently 129 modern trade stores spread over Romania, with 48 of them located in Bucharest.

5. Copyright 2005 ACNielsen Shopper Trends 5 Shopper Trends Executive Summary - Shopper Profile Women are still dominating the main shopping, however men have considerable influence on purchasing decisions and engage extensively in partial shopping. Main shoppers and key influencers have household income in line with the general population, claiming low to medium incomes. Only 1/3 of the Romanians visit modern shops only, which is a sign of the weak grip modern trade formats have on Romanians as the majority are still frequently visiting traditional stores as well. The average frequency of visit in modern trade stores fluctuates between once every two weeks for hypermarkets and cash & carries to up to 2 visits a week for supermarkets.

6. Copyright 2005 ACNielsen Shopper Trends 6 STORE EQUITY DRIVERS In general, store equity is driven by two broad factors: Familiarity with the stores, in terms of awareness and consideration Store associations, in terms of image and positioning Among the retail stores in Romania, familiarity (i.e. awareness and consideration) is much more important than associations in driving store equity (72% vs. 28%). Brand associations have a very low weight in driving equity, which is an indicator that the brands in the market are yet not strongly differentiated in the consumers’ mind and shoppers are still unable to strongly perceive rational or/and emotional distinctions between them. Shopper Trends Executive Summary - Key Drivers of Store Equity (1)

7. Copyright 2005 ACNielsen Shopper Trends 7 The main image drivers relate to: Pricing and Value for Money Large Store Format and Wide Selection Quality products The key attributes that truly drive store equity relate to the differentiation points of a modern trade type compared to other trade types such as convenience stores or traditional groceries. These also differentiate a retailer from another and should be capitalised on. Shoppers say that these benefits are important and mean it; Assortment, in terms of;  Good range of fresh products  Everything in one shop  Wide product range & variety Promotions Spaciousness Good value for money Shopper Trends Executive Summary - Key Drivers of Store Equity (2)

8. Copyright 2005 ACNielsen Shopper Trends 8 For further information, please contact our Senior Research Executive - Customized Research: Bogdana Baltasiu Bogdana.Baltasiu@ACNielsen.ro Telephone:+40 21 323 4008 Fax:+40 21 323 3959 137, Theodor Sperantia Street, Bl. 84, First Floor, Sector 3, Bucharest Contact information

9. Copyright 2005 ACNielsen Shopper Trends 9