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Driving Growth through Innovation
11th November 2008
Vindi BangaPresident Foods, Home & Personal Care
Driving Growth through Innovation
A G E N D A
• Category Organisation
• Driving growth
• Delivering more & better innovation
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Q3 2005
Q4 2005*
Q1 2006
Q2 2006
Q3 2006
Q4 2006
Q1 2007
Q2 2007
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Strong Organic Growth
* days adjusted
Underlying sales growth
Annualised growth rate
Leading Category Positions
Laundry
Household Cleaning
Daily Hair Care
Oral Care
Savoury
Dressings
Ice Cream
Deodorants
Spreads
TeaMass Skin
World Number 1
World Number 2
Local Strength
Big Global Brands
Top 25 brands = ¾ of Unilever’s sales
12 billion Euro + brands
Category Goals
Profitable Growth through:
• superior innovation with differentiated technologies
• deep global/local consumer insight
• global category and brand strategies
• global communication platforms
• increased productivity of marketing investment
From Local to Global Organisation
Global Marketing
Global R&D
CategoryCategory
Englewood
London
Moscow
Sao Paulo
Mumbai
Singapore
Buenos Aires
Shanghai Dubai
Durban
Rome
Rotterdam
Hamburg
ParisChicagoIstanbul
Posznan
Port Sunlight
Heilbronn
Category Organisation: 17 Brand Centres, 15 Design Centres
MilanTrumbull
Leeds
Dijon
Casale
Colworth
January 2006
• “Not a question of resource – money or people”
• “Need to step-change productivity & delivery of
innovation”
CEO Review: Science & Technology
Our Commitment:Delivering more, differentiated innovation
Actions Taken
- Embedded Role of Science
- Focused resources
- Fewer, Bigger projects
- Category Technology Strategies
- Embraced Open Innovation
- One Unilever S&T platforms
- Strengthened R&D leadership
10
CEO Review: Science & Technology
How We Are Driving Growth
How We Are Driving Growth
Innovation:40%
� New benefit
� New segment
� New format
Renovation:40%
� Quality
� Packaging
� Communication
FranchiseExpansion:
20%
� More users
� More consumption
� Trading up
How We Are Driving Growth
Innovation:40%
� New benefit
� New segment
� New format
Renovation:40%
� Quality
� Packaging
� Communication
FranchiseExpansion:
20%
� More users
� More consumption
� Trading up
Brewed
Dust
Cooked largeleaf
GreenIced tea
Black
Brewedwith milk
Black+ Mate
Brewed with milk
Brewedwith milk
Brewed with milk
ChunmeeGreen
Dust
Cooked largeleaf
Greenlarge leafIced tea
Boiled withmilk dust /brokens
Green / black
Black
Built Global/Local Consumer Understanding
Wide Variation in Tea Preparation Habits
Simplifying Brand Portfolios: From Local Past
Historic Laundry Portfolio
Simplifying Brand Portfolios: Now Global
Global Laundry Brand Portfolio
Laundry – Covering the Price Piano
Harmonization of Formulations
Skin Cleansing• 56 Base Formulas reduced to 4 Globally
• Providing Cost Savings & Speed of Roll-Outs
Formula 1
Formula 2
Formula 3 Formula 4Formula 4
Formula 2
Formula 3
Formula 3 Formula 3
Formula 3
Focused Funnel: Fewer, Bigger Innovations
• From 5000+ projects to 700
• Average project size increased 10x
Number of Category Innovation Projects
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Faster Roll-Outs To More Markets
20 markets
52 markets
30 markets
40 markets 16
markets
8 markets25markets
Delivering More, Better Innovation
Personal Care D&E Vitality
Personal Care
Packaging technology for superior usage, less plastics usage
Clinically proven to provide prescription strength moisturisation
Superior skin whitening & anti-ageing technology
Compelling Sensorials: “Wake Up. Go Fresh”
Developing & Emerging Markets
Foam cutting technology: single
rinse instead of three
Superior fragrance and sensorials
Low cost technology for liquid skin cleansing
Mealmakers - formulation & processing technology
Ambient stability & low cost supply chain
Vitality: Making Healthier Foods
Best tasting fat free ice cream
Formulation & processing technology
Light spread rich in vitamins (B3, B5, B6, D,
E, A and B1)
Bouillon jelly proprietory technology
Vitality: Stronger Functional Claims
White Now!Unique optical whitening technology
Removes dandruff & nourishes the scalp through ClearTech
Catechin rich tea helps to take care of your body shape
Clinical strength protection based on world class expertise
Vitality: Driving Sustainability
Ben & Jerry’s FairtradePartnerships
Rainforest Alliance certified tea
Detergent concentration technology for less
water, less transport, higher margins
Recession impact category segmentation
Consumer Dynamics in Challenging Times
Source: Nielsen; CMI Europe; McKinsey analysis
Recession impact on
overall volume
Positive
Neutral
Negative
Positive Neutral Negative
– Sauces– Hand &
Body
“Trade up/ Thrive”
“Hold”
– Oral Care– Skin
Cleansing
– Bouillons
– Deodorants– Shampoo– Conditioner– Leaf Tea
“Trade down”
“Consume less”
Recession impact on category mix
– Fabric Cleaners
– Household Cleaners
– Dressings
1 3
2
4 – Ice Cream
– Meals and Dishes
– Margarine
– Soups
Recession impact category segmentation
6Ps – Winning in Challenging Times
Proposition
Promotion
Product Place
Pack
Price
Underline Value and Quality
Protect Advertising Investment and Spend More
Wisely
Do not cut Product Quality Catch the moving Shopper
Small Packs, Big Packs
Range-up, Range-down
Better Products are still worth paying for…
Key Messages
• Combining local insight with global scale
and expertise
• Delivering fewer, bigger innovations
• Leveraging differentiated technology
• Faster roll-outs to more markets
• Action plans to win in challenging times
Raising the Bar
Unilever Investor Seminar11th – 12th November 2008