Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Day (June 2017)
68 slides from Hindustan Unilever's investor day presentation, Jun 2, 2017
Slide 1: Category Updates
CATEGORY UPDATES ANNUAL INVESTOR MEET | 2 JUNE 2017
Slide 2: Home Care
HOME CARE Priya Nair 2
Slide 3: Safe Harbour Statement
SAFE HARBOUR STATEMENT This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar
Slide 4: 2016 Performance Highlights
2016 PERFORMANCE HIGHLIGHTS COMPETITIVE, PROFITABLE, SUSTAINABLE GROWTH 30% No 1 Position Of HUL’s Size In All Key Sub Categories 450+ bps 9/10 Indians Delta Margin 2013-16 Our Consumer Franchise 4
Slide 5: Laundry Portfolio Straddles the Pyramid
LAUNDRY PORTFOLIO STRADDLES THE PYRAMID More Benefits Rising Income 5
Slide 6: Investing to Win in Many Indias
INVESTING TO WIN IN MANY INDIAS Capability and Portfolio to win everywhere Tailored actions and investments for differential results Very Low Mass Low Mass Medium Mass High Mass 6
Slide 7: Our Strategy
OUR STRATEGY eG (Ai HB! Sunlight Gor @ OO= a |
Slide 8: Strengthening Our Leading Position
STRENGTHENING OUR LEADING POSITION Innovate For Strengthen the Develop Formats Improve Premiumization Core of the Future Profitability 8
Slide 9: Innovate for Premiumization
INNOVATE FOR PREMIUMIZATION AGGRESSIVELY DRIVING PREMIUMIZATION TO STRENGTHEN POSITION IN LAUNDRY Through Consumer Centric Innovations Rin: Water Saving Detergent Bar Surf Excel Matic Liquid 9
Slide 10: Innovate for Premiumization: Rin Bar
INNOVATE FOR PREMIUMIZATION RIN BAR: WATER SAVING TECHNOLOGY THAT DELIVERS SUPERIOR BRIGHTNESS Rinsing – 30% Of Daily Water Consumption Increasing Instances Of Drought Rin 10
Slide 11: Innovate for Premiumization: Surf Excel Matic Liquid
INNOVATE FOR PREMIUMIZATION SURF EXCEL MATIC LIQUID: INDIAS FIRST LIQUID MATIC DETERGENT Delivering Formats Of The Future And Educating Consumers Surf Excel Matic 11
Slide 12: Premiumizing Dish Wash Through Innovation
INNOVATE FOR PREMIUMIZATION PREMIUMIZING DISH WASH THROUGH INNOVATION Vim 12
Slide 13: Pureit: Disrupting Category Through Affordable Innovations
INNOVATE FOR PREMIUMIZATION PUREIT: DISRUPTING CATEGORY THROUGH AFFORDABLE INNOVATIONS Gravity Range Low Cost Ro & UV Range Premium RO + UV Range 2008-12 2016-17 2014-15 Pureit 13
Slide 14: Strengthen the Core
STRENGTHEN THE CORE LAUNCH OF WHEEL 2-IN-1 With the dual benefits of deep clean and Turning around the Segmental Share Malodour Removal Trajectory Wheel 14
Slide 15: Develop Formats of the Future
DEVELOP FORMATS OF THE FUTURE Fabric Conditioner Dish wash Liquids Through Education and Sampling 15
Slide 16: The Science of Sampling: Unlocking Growth
THE SCIENCE OF SAMPLING: UNLOCKING GROWTH WHERE? WHAT? HOW MUCH? Maximizing Scale and ROMI 16
Slide 17: Educating Consumers with Scale
EDUCATING CONSUMERS WITH SCALE REACHING OUT TO PROSPECTIVE CONSUMERS DIRECTLY X 2.5X 3.1X Mn Contacts Mn Contacts Mn Contacts 2014 2016 2017 17
Slide 18: Consistent Profitable Performance
CONSITENT PROFITABLE PERFORMANCE 450+ bps improvement in Margin FY2012 FY2017 18 FY’11-12: Reinstated to reflect key IndAS impacts
Slide 19: Comprehensive Margin Improvement Plan
COMPREHENSIVE MARGIN IMPROVEMENT PLAN Increased Agility to respond better to Competition/Environment 19
Slide 20: Thank You
THANK YOU 20
Slide 21: Refreshment
REFRESHMENT Sudhir Sitapati 21
Slide 22: Our Portfolio
OUR PORTFOLIO TEA COFFEE ICE CREAM & FROZEN DESSERTS GLOBAL POSITION #1 NA #1 INDIA POSITION #1 #1 #2 22
Slide 23: Our Performance
OUR PERFORMANCE Consistently growing ahead of the Market Turnover ~ Rs. 5000 cr. in 2017 23
Slide 24: Key Highlights
KEY HIGHLIGHTS Decisive Leadership in Coffee …and in Green Tea MAT Market Shares Decisive Market Share Leadership Brooke Bond: the most awarded Indian Brand Beating Demonetization: 8% USG in DQ 24 * All nos. are indexed
Slide 25: The Opportunities
THE OPPORTUNITIES 40% of tea in India is still Only 1% of tea in India is Value added teas – Green sold loose sold in tea bags and flavoured are exploding Coffee penetration in India ….3/4th of which is in Ice Cream consumption is is at 20% conventional coffee 300 ml per capita 25
Slide 26: Our Strategy
OUR STRATEGY 26
Slide 27: The Strategy
THE STRATEGY Core Market development Accessibility Win in the core Create high margin new Allow Consumers to categories access big brands 27
Slide 28: Strategy: Core
STRATEGY: CORE Win in the core Better Products Brand Love + Tailor made tea blends Building emotional to suit region specific connect with our tastes brands 28
Slide 29: Strategy: Market Development
STRATEGY: MARKET DEVELOPMENT Create high margin new categories Insightful New ideas Sampling communication + + 29
Slide 30: Strategy: Accessibility
STRATEGY: ACCESSIBILITY Allow Consumers to access big brands Access Packs Distribution + 30
Slide 31: In Summary
IN SUMMARY Core Market development Accessibility Win in the core Create high margin new Allow Consumers to categories access big brands 31
Slide 32: Thank You
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Slide 33: Personal Care
PERSONAL CARE Sandeep Kohli 33
Slide 34: Introducing Personal Care
INTRODUCING PERSONAL CARE Largest Personal Care business in India Iconic brands leading category positions #1 1000 Crore+ A Personal Wash Skin Care Hair Care ~1/2 ~2/3 HUL’s HUL’s Cosmetics (Lipstick) revenue profit #2 2nd largest PC business Oral Care 34
Slide 35: Consistent Track Record
CONSISTENT TRACK RECORD Growing the Market Profitable Growth +Competitive Growth FY’11-12: Reinstated to reflect key IndAS impacts 35
Slide 36: Headroom for Growth Across Categories & Segments
HEADROOM FOR GROWTH ACROSS CATEGORIES & SEGMENTS CONSUMPTION PENETRATION Personal Wash 1.6x Body Wash Hand Wash Face Creams 2.7x Hair Conditioner Shampoo 2.6x Anti Perspirants Deodorants 4X Toothpastes 2x Categories with low single digit penetrations Indonesia PCC Indexed to India PCC Vol for SCL, H
Slide 37: Growing the Market
GROWING THE MARKET More Users More Usage More Benefits Penetration Consumption Premiumization 37
Slide 38: Our Strategy
OUR STRATEGY LUX Dove Pears Rexona Hamam ee, Ponos |B — Shdulekha| @Glo2fP Pepsodent ayush Axe LAKME rlves CLINIC | sunsil 38
Slide 39: Mission: Inspire a Billion Indians to Take More Care
MISSION INSPIRE A BILLION INDIANS TO TAKE MORE CARE OF THEIR PERSONAL CARE 39
Slide 40: Key Thrusts
KEY THRUSTS Make Core Brands Accelerate Premiumization Build a Naturals portfolio Aspirational & Market Development based on expertise & efficacy Enter Emerging Winning in E- Segments : e.g. Baby Commerce & Digital 40
Slide 41: Making Core Brands Aspirational: Lux
MAKING CORE BRANDS ASPIRATIONAL LUX Reviving the Premiumisation New Formats Heritage of Bollywood #1 Beauty Soap in India for the last 90 years 41
Slide 42: Making Core Brands Aspirational
MAKING CORE BRANDS ASPIRATIONAL BUILDING ASPIRATIONS IN EACH CATEGORY WITHIN THE PORTFOLIO Hair Care Skin Care - Face Skin Care – Hand & Body Skin Cleansing Oral Care Deodorants 42 Lifebuoy
Slide 43: Accelerate Premiumization: Hair Care
ACCELERATE PREMIUMIZATION & MARKET DEVELOPMENT HAIR CARE Portfolio based Premiumising the category by Building New Regimen on consumer needs Higher order benefits 5 sharply defined brands Only player adding penetration and growth Dove Mirror 43
Slide 44: Accelerate Premiumization: Skin Care
ACCELERATE PREMIUMIZATION & MARKET DEVELOPMENT SKIN CARE Building Premium Brands New Benefits & Sensorial Leading Trends HUL has ~40% of the overall Premium Skin Lightening market 44
Slide 45: Premiumizing Through Trend Setting Innovations: Lakme
ACCELERATE PREMIUMIZATION & MARKET DEVELOPMENT PREMIUMIZING THROUGH TREND SETTING INNOVATIONS: LAKME First Argan Oil Infused lip care in India Weightless Mousse Lakme is India’s No. 1 Makeup Brand Lakme Argon Oil 45
Slide 46: Deployment Through the WIMI Lens
ACCELERATE PREMIUMIZATION & MARKET DEVELOPMENT DEPLOYMENT THROUGH THE WIMI LENS Cluster based jobs & marketing campaigns High Penetration Geographies Low Share High Share Geographies Geographies Low Penetration Geographies 46
Slide 47: A Clear Model of Deployment, Focused on Sampling
ACCELERATE PREMIUMIZATION & MARKET DEVELOPMENT A CLEAR MODEL OF DEPLOYMENT, FOCUSED ON SAMPLING Sampling a key mechanism of driving trials 70 Mn Samples across various mediums 47
Slide 48: Building a Naturals Portfolio Based on Expertise & Efficacy
BUILDING A NATURALS PORTFOLIO BASED ON EXPERTISE & EFFICACY Within existing brands Building master brands Building specialist brands Toothpaste Hand wash Face wash Soap Shampoo Body Lotion Face Cream Lever Ayush & Indulekha 48
Slide 49: Entering Emerging Segments: Baby
ENTERING EMERGING SEGMENTS: BABY BABY DOVE LAUNCHED IN SELECT MARKETS 49
Slide 50: Winning in E-Commerce & Digital
WINNING IN E-COMMERCE & DIGITAL Replicating Perfect Stores online JBPs with Leading Players 5th largest Personal Care E-commerce business for Unilever globally 50
Slide 51: Leading in Marketing in a Digital World
WINNING IN E-COMMERCE & DIGITAL LEADING IN MARKETING IN A DIGITAL WORLD WITH MEASURABLE METRICS Thumb stopping creatives for Social Preferred destination for content media & mobile “Be the Wikipedia of Personal Care in India by answering all search queries on personal care through our brands “ Becom
Slide 52: Key Thrusts
KEY THRUSTS Make Core Iconic Brands Aspirational Accelerate Premiumisation and Market Development Build a Naturals portfolio on Expertise and Efficacy Enter Emerging Segments : Baby Winning in E-Commerce and Digital 52
Slide 53: Personal Care
PERSONAL CARE Sandeep Kohli 53
Slide 54: Foods
FOODS Geetu Verma 54
Slide 55: Strong Track Record
STRONG TRACK RECORD Reaching critical Scale Leadership in core categories KETCHUP #1 JAM Turnover ~1000 cr. SOUPS With double digit growth over past 5 years 55 MS-VAL MAT Mar’17
Slide 56: Brands Have Strengthened
BRANDS HAVE STRENGTHENED Brand Equity Score Increased by avg. 900 bps Increase in BMI Increased by avg. 330 bps Internal Distribution Average double digit increase Penetration scores MAT Mar’16-17 over Mar’13-14 IMRB Millward Brown Brand Equity Scores- Tracked from 56 MAT Q313 to MAT Q1 17 Distribut
Slide 57: 2016: A Modest Performance
2016: A MODEST PERFORMANCE Drought & Bread Scare Impacts Jam Noodle FSSAI Issue Demonetization Challenging 1 External Factors Fine Tuning 2 Innovations Knorr Masalas Mix fine tuned & relaunched in Maharashtra Continue to drive Trials 57
Slide 58: Our Strategy
OUR STRATEGY 58
Slide 59: Strategy
STRATEGY 1. Strengthening the Core 2. Driving Innovations Convenience cooking & eating International cuisines Health & wellness Significant growth opportunity *Numbers are indexed GREMA: Greater Maharashtra 59
Slide 60: Strengthening the Core
STRENGTHENING THE CORE A SCIENTIFIC & DISCIPLINED MARKET DEVELOPMENT MODEL 2 Building 360 Salience 1 Creating Relevance 3 Driving Access Packs 4 Driving Product Experience 60
Slide 61: Creating Relevance
CREATING RELEVANCE DRIVING STRONG CONSUMER INSIGHTS 60% of Jam consumed with bread, thus building the Increasing relevance of Soups in Breakfast Moment peak season Kissan & Knorr 61
Slide 62: Building 360 Salience
BUILDING 360 SALIENCE RANGING ACROSS ALL POSSIBLE TOUCH POINTS Winning Harnessing Partnerships Build Proposition Non TV Popular Culture Brand Love 62
Slide 63: Driving Access Packs
DRIVING ACCESS PACKS ACCELERATING GROWTH BY INCREASING PENETRATION CAGR – 30% to 100% (2012-2016) And improved category penetration 63
Slide 64: Driving Product Experience: Sampling at Scale
DRIVING PRODUCT EXPERIENCE SAMPLING AT SCALE Food Ambassadors Dry Sampling Partnering to sample ~20% Increase Over FY’16 ~Doubled Over FY’16 Building Consumer Relevance 64
Slide 65: Driving Product Experience: The Adda Model
DRIVING PRODUCT EXPERIENCE THE ADDA MODEL • “EXPERIENCE” model in Foods and Beverages- franchisee model • Specifically targeting “snacking” moments • Over 100 + locations • 3 Lakh+ consumers interact with HUL brands everyday 65
Slide 66: Driving Product Experience: Premiumizing
DRIVING PRODUCT EXPERIENCE PREMIUMIZING International Soups Premium Jams Exciting Variants 66
Slide 67: Thank You
THANK YOU 67
Slide 68: Thank You
THANK For moreYOU information & updates For More Information 68