Market The Superbrands award for 2010 is a sequel of Konzum’s successful three-year tradition of a Superbrand. During this time, Konzum has additionally confirmed and strengthened its market leader position in , with more than 700 sales locations. Konzum is also proud of its leading position in the segments of innovation, introduction of new technologies and services for its customers. Furthermore, in all its business segments, Konzum operates as a socially responsible company, contributing to environment protection, energy efficiency, helping the underprivileged and collaborating as the partner of the communities where it operates. Besides the national leader position in Croatia, ’s retail, i.e. Konzum and Idea, with 2.67 billion euro of consolidated income realised from the 2009 sales, they are also the largest retail group in the “Adria” region, according to Deloitte’s regional analysis of the retail sector on territories of Croatia, and .

Achievements and thus became the first retail chain in Croatia to Thus customers can choose from In 2010 Konzum has carried on with continuous possess this valuable international certificate. approximately fifty different sorts of fresh fish in investments in the development and expansion of bulk or packaging. Apart from the daily fresh white the network of new shops, as well as redecoration History fish and oily fish from the Adriatic Sea (bream, sea of the existing ones. Thus they opened 40 new Konzum’s business began more than 60 years ago, bass, sardine and others) or freshwater fish (carp, sales locations, 4 of which are Super Konzum as early as 1952, when it was founded and in 1957 catfish, trout), Konzum’s fish offer includes salmon, shops, Konzum shops of the largest format. They they opened their first shop. crabs, prawns, shrimps, mussels, cuttlefish and completed the logistics and distributional centre In 1994, Agrokor became the majority owner squid. Konzum’s fish market professional personnel in as well as in Dugopolje near Split, which and in 2000 they initiated a period of Konzum’s are always willing to help with the customers will be the largest and most modern centre of intensive expansion outside Zagreb choice, and they also provide the customers the such sort in the region. into all parts of Croatia. The service of cleaning the fish, in order to make In collaboration years to follow were marked by its preparation as simple as possible. Konzum is with partners, Konzum further expansion and business planning future investments in the development introduced the development in accordance with of this segment of its offer, since fish is food with first loyalty coalition the most modern retail standards, exceptional nutritional value and its consumption programme – the which resulted in the leading is in line with current world trends in healthy living MultiPlusCard. This card market position in Croatia and nutrition. enables all customers and the region. In its everyday Precisely in the segment of customer care to collect even more business, Konzum is living its vision and rising the level of service, Konzum made prize points and benefits of being the best retail chain in the an additional significant step forward within and save money. The region and setting the benchmark of quality and the project “We are here for You”, providing MultiPlusCard loyalty programme is a partnership professionalism in all segments of its business – the customers a number of warranties for the high programme of six leading companies in their first choice to its customers, a desirable employer level of service. Thus all Konzum’s customers enjoy respective sectors – Konzum, Zagrebačka banka, to its employees, a reliable partner to businesses additional protection of consumer rights and the T-Mobile, Kozmo, Tisak and Atlas Airtours. It and a socially responsible company. The values highest quality of service, making Konzum unique was created as an upgrade of Konzum’s highly on which Konzum builds its success are quality, in the overall Croatian retail and service industry. successful Plus Card prize programme. With courtesy, trust, innovativeness and understanding With the introduction of additional high service the joining of more brands in the MultiPlusCard, of the needs of its customers. standards, Konzum facilitated quick and efficient the users of the programme have the option of solving of possible complaints on the spot of sales choosing from the expanded offer of products Product location, which will certainly contribute to higher and services, which is available in the widest retail Konzum’s customers recognise it as a place of the customer satisfaction. Through the very name of network of partners, on more than 2,000 sales most favourable and quality purchase, as well as the initiative, “We are here for You”, Konzum has locations in Croatia, as well as abroad. For the a shop that guarantees its customers the widest yet again shown that its customers and their wishes first time in Croatia, this coalition programme assortment of fresh fruit and vegetables and and needs are again the focus of their business offers its users prize points from several partners fresh meat of controlled origin. Furthermore, a and that precisely their suggestions and remarks through only one purchase. Apart from creating significant step taken during the past year was the serve as the basis for their continual upgrading of added value for all MultiPlusCard users, it is also expansion of their fish market offer and service, business and an even higher quality of service. significant for raising the level of customer care as well as the logistics of everyday supply of fresh Quality service for customers requires quality in on the market. fish. Currently, Konzum has 3 fresh fish packing the education of personnel. Thus in 2010, Konzum Konzum has continually been recognised with facilities in Zagreb, Split and , in order to opened its own Centre for selection and education, various awards and recognitions for its business, provide the highest quality of retail network including Konzum Academy. Within the modernly awarded by professionals and their institutions, supply. This is also the largest fish market chain equipped and finely decorated Centre on over as well as its customers. Konzum has successfully in Croatia, offering daily fresh saltwater and 1,500 m2, every day they carry out the processes attained the Environmental Management System freshwater fish at affordable prices in more than of personnel selection and education from various certificate according to ISO 14001:2004 standard 250 sales locations. parts of the business system with a total of over

240 SUPERBRANDS 12,000 employees. All educational activities take customers, as well as the optimisation of purchase Konzum “lives” its ecological mission under place in modernly equipped classrooms, the and charge process. By using new technology, the the motto “With you through life in nature amphitheatre lecture room, computer lab and clients are provided a faster flow of purchase and preservation” every day. Konzum is the largest the “Konzum school shop”, which enables the considerable time saving. buyer of used packaging in Croatia on more education of quality work practice and preparation than 260 sales locations. Promotional material for work in all Konzum stores, in controlled Promotion in circulation of over 900,000 is printed on conditions. Thus new Konzum employees learn all Konzum provides its customers best value for their recycled paper and all Konzum’s customers can needed skills of new technologies and processes money through numerous daily special offers, in choose between bags made of recycled materials that are carried out in Konzum’s shops, enabling the order to respond to their needs and habits .. and specially designed reusable bags. Konzum highest level of readiness in their further work and Regular special offers include is the first retail chain in Croatia to in providing quality service for Konzum’s customers. weekly and weekend actions, use ecological cleaning machines Employee selection is guided by the “open door” discounts for certain assortments at such number of sales locations. principle, thus candidates interested in offered job of products and the always Through the implementation of the vacancies come to Konzum’s centre for selection attractive and convenient offer of most advanced control systems and and education without prior arrangement, where regular Konzum catalogues, which technologies in all areas of business, they receive all information on the specific vacancy, guarantee Konzum’s customers the they provide reduction of harmful deliver their application and carry out preliminary most favourable purchase. gas emission, as well as other types of interviews. Apart from the best prices, pollution, and a higher level of energy In 2010, within the centre, they carried out Konzum is always looking for efficiency. Alongside environment 700 trainings and education events, which were additional activities through which responsibility, Konzum has grounded attended by more than 9,000 Konzum’s employees. it can exceed its customers’ its business on the principles of With the opening of its Centre for selection expectations. Thus it is important social responsibility and has always and education, Konzum invested significantly in to note their campaign “Konzum been a quality partner to the local the profiling of the best personnel in all fields of makes you dreams come true”, community where it operated and business, which in the end leads to the highest level face of which was Halit Ergenc, helped the underprivileged, as well of service for all Konzum’s customers. the popular Onur from the even as invested in sports, culture and more popular series “Thousand and education. Recent Developments one nights”. Within this campaign Apart from the market leader position, Konzum is Konzum enabled its customers to meet and Brand Values extremely proud of the fact that it is the leading socialise with the popular actor of the currently In Croatia, out of the total number of consumers retail chain in the segments of trade innovation, most popular series in Croatia and rewarded the that buy private label, more than a half (57 new services and technologies, as well as social and customers with travels to Istanbul and valuable percent) consider them to be of equal quality as environmental responsibility. cash prizes. the brands of well-known producers. Konzum’s K In order to create added value and benefits for Social Responsibility plus brand is the most popular among consumers its customers, Konzum has continually developed Konzum bases its business on the principles in Croatia. new services. At more than 330 Konzum sales of social responsibility and thus continually helps The offer under Konzum’s private label locations, customers can pay their 2D bar code the neediest segments of the society. Konzum’s is segmented in such way that it responds to utility bills, and considerably save time and money. donating and sponsoring activities have always customer’s wishes and needs through several This service is being developed continually and thus focused on children and the youngest, since such subcategories – Standard, K plus and Volim najbolje. it is including more and more sales locations, as initiatives represent the best investment in the All products under the Konzum private label are well as partners of the programme, bills of which future of the entire social community. Konzum created mainly in cooperation with domestic can be paid at Konzum’s cash desks. has traditionally invested in education of children suppliers and this part of Konzum’s offer is marked Konzum online store is continually developing; and the youngest, thus they donated more than a with continual development and redesigning, with the number of users is increasing and new areas thousand computers to elementary schools across the goal of offering customers the most modern of delivery have been included, thus apart from Croatia and created prerequisites for a quality and attractive packaging. Strict quality control of the Zagreb, Rijeka and their surroundings, they recently information technology education. private label and testing of production processes, as expanded the delivery area to Split and . Alongside the opening of new shops, Konzum well as additional control within the Konzum lab, are This service is soon to be available to all Konzum’s has traditionally been helping the local communities all necessary to ensure the highest level of quality customers also in other larger cities and regions where it operates, as well as their associations and safety for customers. across Croatia. and institutions, and thus in such way it has been Precisely because of this, Since recently, Konzum online store purchase contributing actively as a responsible member Konzum’s private label has been available also to all smartphone users of the local community. Konzum is also a proud will remain the most through a simple application, which enables all sponsor of numerous local sports associations and recognisable retail store users of iPod Touch, iPhone, iPad and BlackBerry top Croatian athletes. brand in Croatia. to buy through Konzum online store, no Konzum’s responsibility towards the matter their location. This is a quality solution environment stimulated a number of initiatives that www.konzum.hr implemented by Konzum, as the first one among resulted in fund donations for the preservation retail chains in Croatia and the region. In the of biodiversity within the eco-project, Green City future they plan to provide purchase for users of Project. Furthermore, in collaboration with its THINGS YOU DIDN’T KNOW ABOUT... mobile phones based on Android platforms, as well suppliers, Konzum initiated two other humanitarian the realisation of the integration of new services projects - “Give wings to butterfly children” to Konzum through social networks. help the association DEBRA and children suffering The need to accelerate purchase process and from Epidermolysis bullosa, and the project “Music Konzum’s sales locations in Croatia are visited by introduce innovative solutions adjusted to demands moment corner”, through which they will equip 30 more than 650,000 customers daily. of a growing number of customers resulted in kindergartens with a music corner. All mentioned the implementation of self-scanning and self- activities are only some of the numerous The new logistics and distributional centre in checkout solutions at certain sales locations. In humanitarian activities realised by Konzum in this Dugopolje stretches over more than 83,000 m2 of combination with the existing POS systems, these segment. They also stimulated smaller but equally total surface, which is the size of 7 football fields. systems enable a new level of service quality for valuable initiatives.

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