Here are the top 3 accounts based on the weighted parameters: 1. PETROBRAS - Highest loyalty level and largest contract values and historical spending. Clear top priority account. 2. EMBRATEL - Second highest loyalty level and above average contract values and historical spending. A core priority account. 3. GRUPO TELEFONICA - Second highest contract values and spending but lower loyalty level than top two. Still a priority account but perhaps slightly lower focus than the top two.

1. Beyond São Paulo and Mexico city: How Do You Segment Your
Market Opportunities and Design Your Coverage
Model?
André Echeverria
LA Marketing VP

5. The 1 Billion U$ questions:
Which markets must we concentrate on?
Which are the most efficient coverage models?
How do we find, develop and fit my Partners in?
How many accounts to serve?
Which are those target accounts?
Where are them?

6. 1 Sub-Continent, 28 Countries
500M+ people, 4 major languages
MEX C&CA
mexico porto rico
NOLA
brasilia
bogota
BRA
sao paulo
SOLA
Lima
rio janeiro
santiago buenos aires

7. Country Profiles or Fortune 500-type Rankings
…not enough

8. …at least…
…not enough UNIQUE!

9. LA Markets Maturity Level Analysis
China
Size of bubble = 2010 IT
India
Russia spending value (US$M)
IT spending 2009-2010 Growth
2010 IT spending as a % of GDP
Source: IDC Latin America IT Spending Patterns, Q4 2010
© 2010 IDC

10. Latin America IT Spending by Industry
Free trade between LA countries
Local investment to equalize Asian product levels
Consumption reactivation Commodities exporters leading the recovery
Retail growth / New retails entering
% Growth 2009/2010
6.3%
growth
Tourism reactivation
Outsourcing growth in the
local and off-shore markets
Relative Size of IT Spending, 2010
Source: IDC Latin America Vertical Markets Spending Patterns, 1H 2009
© 2010 IDC

11. Latin America Product Segments Maturity
© 2010 IDC

12. Building your Racing Plan:
Segmenting Market Opportunities

13. A key concept: the Addressable Market definition
o Available market where your portfolio of products and
services offer concrete potential, not likelihood, to
address customers needs
o What would your business value be if you had 100%
market share in all areas where your products/services
provide a solution?
o Key to Accounts Segmentation and SOW (Account Share
of Wallet) calculations
o Standardized on IDC data: BlackBook Taxonomy (industry
definitions) and WW Vertical Market definitions (product
segments)
o But... You have to make your own assumptions

14. Addressable Market Calculator (TM)
Input: IDC IT Data Input:
2001 <- Year IT Market Addressable Addressable Market 1-Year Original Estimates
Brazil <- Market (No DataCom) Market Growth Brazil Mexico Argentin Chile Colombia Venezuel PuertoR
13780 <- Total IT Market Value (U$ M) 12567 Assumption % $ %
Services
4.4% IT Consulting 4.8% 15% 0.7% 90.9 15.7% 30% 20% 50% 25% 0% 0% 0%
9.6% Operations Management 10.5% 14.3% 0% 0%
2.8% Training and Education 3.1% 15% 0.5% 57.9 13.1% 20% 10% 40% 30% 40% 20% 20%
9.3% Support Services 10.2% 8% 0.8% 102.5 10.7% 15% 15% 10% 10% 40% 20% 20%
9.9% Implementation 10.9% 5% 0.5% 68.2 13.9% 10% 5% 10% 0% 0% 0%
36.0% Services Total 39.5% 2.5% 319.6 13.4%
6% 12% 9% 9% 10% 9% 8% 11%
Packaged Software
3.3% System Infrastructure 3.6% 10% 0.4% 45.5 11.5% 20% 10% 20% 25% 20% 20% 20%
5.7% Application Tools 6.3% 5% 0.3% 39.3 8.7% 10% 10% 5% 10% 10% 10%
4.2% Application Solutions 4.6% 16.9%
13.2% Packaged Software Total 14.5% 0.7% 84.7 12.4%
5% 9% 4% 10% 6% 9% 11% 11%
Hardware
Systems
2.2% High-End Servers 2.4% 75% 1.8% 227.4 -1.6% 100% 100% 100% 100% 100% 100% 100%
1.9% Mid-Range Servers 2.1% 100% 2.1% 261.8 2.9% 100% 100% 100% 100% 100% 100% 100%
1.2% Low-End Non-Intel Servers 1.3% 40% 0.5% 66.1 5.4% 100% 50% 100% 100% 100% 100% 100%
1.8% Low-End Intel Servers 2.0% 10% 0.2% 10.5% 20% 20% 20% 30% 20% 10%
24.4% Personal Computers 26.8% 11.4% 1%
0.7% Traditional Workstations 0.8% 60% 0.5% 57.9 1.8% 100% 100% 100% 100% 100% 100% 100%
32.2% Systems Total 35.3% 5.1% 613.2 9.9%
Peripherals and Add-Ons
4.0% Add-On Storage Devices 4.4% 60% 2.6% 330.7 16.8% 100% 80% 100% 100% 100% 100%
4.0% Desktop Printers 4.4% 5.4%
0.8% Other Printers 0.9% 5.2%
1.0% Other Add-Nos 1.1% 8.0% 100%
9.8% Peripherals Total 10.7% 2.6% 330.7 9.1%
17% 25% 16% 15% 15% 24% 17% 12%
8.8% Data Communications 0.0% 24.6%
Market Evolution
50.8% Hardware Total 46.1% 7.7% 943.9 12.1%
100%
13.2% Package Software Total 14.5% 0.7% 84.7 12.4%
36.0% Services Total 39.5% 2.5% 319.6 13.4% 90%
80%
10.9% 1348.2 13.2% 70%
Address U$ M % 60%
50%
40%
30%
20%
10%
0%
2002 2007

15. Apply with the Vertical Industries effect on IT investments
Addr.
Revenue Cum. Addr.
Account INDUSTRIA %IT/Rev IT Invest Market –
(US$ M) Market 2003
10.9% 2003
PETROLEO BRASILEIRO S.A. Quimica e Petroquimica $49,008.90 2.50% $1,225.22 $133.55 $133.55
BANCO BRADESCO S.A. Financeiro - Multiplo $10,956.10 6.00% $657.37 $71.65 $205.20
TELEFONICA Telecomunicação $9,780.30 4.50% $431.79 $47.06 $252.27
TELEMAR Telecomunicação $6,956.30 4.50% $313.03 $34.12 $286.39
BANCO ITAU S/A Financeiro - Multiplo $5,151.10 6.00% $309.07 $33.69 $320.08
BANCO DO BRASIL SA Financeiro - Comercial $4,583.30 6.00% $265.23 $28.91 $348.99
BANCO SANTANDER BRASIL S/A Financeiro - Multiplo $3,836.40 6.00% $230.18 $25.09 $374.08
UNIBANCO-UNIAO DE BANCOS BRASILEIROS S.A. Financeiro - Multiplo $3,236.60 6.00% $194.20 $21.17 $395.24
BRASIL TELECOM S/A Telecomunicação $3,913.60 4.50% $176.11 $19.20 $414.44
BANCO ABN AMRO REAL S.A. Financeiro - Multiplo $2,540.50 6.00% $152.43 $16.61 $431.06
EMPRESA BRASILEIRA DE TELECOMUNICACOES S A EMBRATE
Telecomunicação $3,167.60 4.50% $142.54 $15.54 $446.59
CAIXA ECONOMICA FEDERAL Financeiro - Comercial $1,906.20 6.00% $114.37 $12.47 $459.06
ELETROPAULO METROPOLITANA ELETRICIDADE DE SAO PAUL
Serv. Publicos $3,056.50 3.50% $106.98 $11.66 $470.72
VOLKSWAGEN DO BRASIL LTDA Automotivo $4,952.60 2.00% $105.49 $11.50 $482.22
COMPANHIA ENERGETICA DE MINAS GERAIS ¿ CEMIG Serv. Publicos $2,649.00 3.50% $92.72 $10.11 $492.32
ELETROBRAS Serv. Publicos $2,465.50 3.50% $86.29 $9.41 $501.73
BRASKEM S.A. Quimica e Petroquimica $3,345.20 2.50% $83.63 $9.12 $510.85
GENERAL MOTORS DO BRASIL LTDA Automotivo $4,131.50 2.00% $82.63 $9.01 $519.85
COMPANHIA DE BEBIDAS DAS AMERICAS ¿ AMBEV Bebidas $5,344.10 1.50% $80.16 $8.74 $528.59
IPIRANGA PETROQUIMICA SA Atacado e Com. Ext $5,229.60 1.50% $80.14 $8.74 $537.32
AGIP DO BRASIL S.A. Serv. Publicos $2,108.40 3.50% $73.79 $8.04 $545.37
EMPRESA BRASILEIRA DE CORREIOS E TELEGRAFOS Serv. Publicos $2,074.50 3.50% $72.61 $7.91 $553.28
SHELL BRASIL LTDA Atacado e Com. Ext $4,774.30 1.50% $71.61 $7.81 $561.09
LIGHT SERVICOS DE ELETRICIDADE S A Serv. Publicos $1,934.00 3.50% $67.69 $7.38 $568.47
BANCO SAFRA S A Financeiro - Multiplo $1,117.60 6.00% $67.06 $7.31 $575.78
FURNAS CENTRAIS ELETRICAS S A Serv. Publicos $1,757.70 3.50% $61.52 $6.71 $582.48
COPEL DISTRIBUICAO S.A. Serv. Publicos $1,734.80 3.50% $60.72 $6.62 $589.10
BUNGE ALIMENTOS S/A Alimentos $5,591.30 1.50% $57.99 $6.32 $595.42
COMPANHIA BRASILEIRA DE DISTRIBUICAO (PAO DE ACUCA Varejista
Com. $3,858.70 1.50% $57.88 $6.31 $601.73

16. Refining your Model:
Customer Loyalty does make a difference

17. What if we concentrate our coverage resources?
How should we compare Key Accounts opportunity levels?
On a mid to long term strategy!
• Revenue historical series (weighted)
• Future contract values
• Share of Wallet x competition analysis
• Services Attach rates
• Customer Satisfaction index
• Opt-in Programs members
• Number of reference Executives
• Customer Lifetime Value TM
• …and avoid the “Mermaid” Accounts

18. Analyze your Customer Loyalty levels
Customer Lifetime ValueTM
model, Dr. Peter Wilton
Business
Attitudinal Partner
Loyalty
Behavioural
Loyalty
Client
Customer
Prospect

19. Compound and reorder based on the weighted parameters
Customer LOYALTY LEVEL CONTRACT VALUES QUOTA 06th FY POND 01~05th FY
1 PETROBRAS 4 19.0% 19.0% 23.0% 14%
2 EMBRATEL 3 13.8% 10.5% 5.9% 23%
3 GRUPO TELEFONICA 2 9.9% 13.5% 10.7% 30%
4 BANCO DO BRASIL 4 5.7% 8.4% 7.5% 37%
5 CEF 4 6.2% 5.2% 7.3% 43%
6 TIM 2 3.9% 5.2% 7.1% 47%
7 TELEMAR 2 4.1% 4.6% 7.4% 51%
8 SAINT-GOBAIN 4 4.4% 0.5% 1.0% 55%
9 CVRD 3 2.8% 3.9% 3.6% 59%
10 GRUPO FOLHA 3 2.3% 1.3% 6.9% 63%
11 UNIBANCO 2 3.9% 3.3% 0.8% 66%
12 MINISTERIO DA SAUDE 2 3.3% 0.0% 1.4% 68%
13 MINISTERIO DA FAZENDA / SEFAZ 2 1.8% 1.3% 2.3% 71%
14 BRASIL TELECOM 2 1.1% 2.4% 2.2% 73%
15 BANKBOSTON 2 2.8% 0.4% 0.8% 75%
16 EMBRAER 2 2.4% 1.0% 0.8% 77%
17 MINISTERIO DAS COMUNICACOES/CORREIOS 2 1.2% 2.6% 0.1% 79%
18 ITAU 1 2.4% 2.6% 0.6% 81%
19 ABN 1 2.9% 1.3% 1.1% 83%
20 LIGHT 2 1.0% 0.7% 1.2% 85%
21 BRADESCO 1 0.9% 4.7% 0.5% 87%
22 GM 2 0.5% 0.7% 1.9% 88%
23 SERASA 2 0.7% 0.7% 1.0% 90%
24 SIEMENS 2 0.2% 0.7% 2.1% 92%
25 MINISTERIO DA JUSTICA 2 0.0% 0.0% 0.7% 93%
26 GLOBO 1 1.3% 0.7% 1.3% 94%
27 MINISTERIO DA PREVIDENCIA 2 0.0% 0.0% 0.0% 96%
28 CITIBANK 1 0.5% 1.3% 0.4% 97%
29 BANCO CENTRAL 1 0.2% 1.6% 0.0% 98%
30 FURNAS/ELETROBRAS 1 0.5% 0.7% 0.2% 98%
31 VW/GEDAS 1 0.1% 1.0% 0.2% 99%
32 SANTANDER 1 0.0% 0.4% 0.2% 100%
(modified account names and data)

20. The courageous decision: from 30 Direct Coverage Accounts…
●
Petrobras ●
Telefonica ●
Caixa Econom Federal
●
CVRD ●
Bradesco ●
Banco do Brasil
●
Telemar
●
Itau ●
Banco Central
●
TIM
●
Unibanco ●
Min. of Fin/Sefaz/Serpro
●
Embratel
●
GM Telco ●
Min. of Just/TJs
●
Light ●
VW/Gedas ●
Min. of Comun/Correios
●
Globo ●
Embraer ●
Min. of Social Security
●
Furnas ●
Saint Gobain ●
Brasil Telecom
●
BankBoston
●
ABN
●
Santander
●
Citibank
●
Serasa
●
UOL/Folha
●
Siemens
(modified account names and data)

21. The courageous decision: to 13 Direct Coverage Accounts only
●
Petrobras ●
Telefonica ●
Caixa Econom Federal
●
TIM
●
Unibanco ●
Banco do Brasil
●
Embratel ●
Saint Gobain
●
CVRD ●
UOL/Folha
●
Telemar
●
Bradesco
●
Itau
(modified account names and data)

22. Adjusting Accounts x Partners Coverage Model
Account Management AMM
Relational Sales Process 13
Client driven
17 P-AMM
Territory Management
Transactional Sales Process
Opportunity driven 400 EMM
Channel Management
Transactional Sales Process
Product driven
Open CDP

23. Sharing and Selling the Opportunity to your Partners
Actual Revenue Addressable Mkt Share of Opportunity New Addressable Mkt
Account 76% U$ 660M 17% U$ 430M
Territory 7% U$ 315M 3% U$ 650M
Channel 17%

24. Geographic Coverage Models
2%
6%
11%
8%
U$ 650M 15%
27%
18%
opportunity
8%

25. Finding your right Partners
o Take advantage of your regional executives knowledge
o Existent partners from your pre-entry or pre-acquisition
o Leverage local markets information services
o Channel analysts surveys
o Channel and general IT ranking publications
o Channel oriented publications
o Review public bids announcements
o IT solution oriented events and associations
o Social Media is removing relationship barriers
o Don't forget… asking for references from your customers

26. Results achieved (over two sequential years)
o U$ U32M (+78%) growth in booking levels from Direct
coverage accounts
o U$ 18M (3.7x) growth in booking levels from Partners
coverage accounts under the company relationship
leadership
o Increased participation in the share of wallet at the
selected Direct coverage accounts
o Partners achieved margin and cash flow levels necessary
to fund the technical readiness and regional sales
coverage investments

27. Final Recommendations
o Invest time on segmenting your opportunities
o Make your choices and stick to it for 1 or 2
years at least
o Don’t change your key accounts too
frequently; your customer will notice and
tacking breaks boat momentum
o Customers need to trust you to share strategic,
long term projects
o Partners need to trust on your commitments
to support capacity building investments
o Consistency builds trust
o Yes... It takes courage (analytical self confidence)

28. aecheverria@uol.com.br