HUL Presentation - Winning in India

8/22/2019 HUL Presentation - Winning in India

1/47

WINNING IN THE INDIA OF

CLSAInvestorsForum,HongKong

11Sept2012


2/47

Safe Harbor 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 expressions or variations of these expressions or negatives of theseterms indicating future performance or results, financial or otherwise, which are forward looking statements.These forward looking statements are based on certain expectations, assumptions, anticipated developments andother factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth,intense competition and the pricing environment in the market, consumption level, ability to maintain and managekey customer relationship and supply chain sources and those factors which may affect our ability to implement

business strategies successfully, namely changes in regulatory environments, political instability, change ininternational oil prices and input costs and new or changed priorities of the trade. The Company, therefore, cannot. ,

stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such forwardlooking statement contained herein or make written or oral forward looking statements as may be required fromtime to time on the basis of subsequent developments and events. The Company does not undertake anyobligation to update forward looking statements that may be made from time to time by or on behalf of theCom an to reflect the events or circumstances after the date hereof.


3/47

Hindustan Unilever Limited : Winning in India

Drivenb

aclear

and

com ellin

strate

Strategic framework Sustainable Living Plan Our Goals

Consistent Growth

Profitable Growth

Responsible Growth


4/47

WINNING IN THE INDIA OF

TODAY & TOMORROWCLSAInvestorsForum,HongKong,11Sept2012COMPASS INTO ACTION


5/47

Compass Into Action : Strategy on Course

Ste ed u

rowth

momentum

15.0

10

10.0

5.0

FY10 FY11 FY12

(5.0)

0.0

MQ2008

JQ2008

SQ2008

DQ2008

MQ2009

JQ2009

SQ2009

DQ2009

MQ2010

JQ2010

SQ2010

DQ2010

MQ2011

JQ2011

SQ2011

DQ2011

MQ2012

JQ2012

USG: Underlying Sales Growth; UVG: Underlying Volume Growth


6/47


O eratin

Mar in

4

uarterso

recover

15.0

16.5

15.6

OperatingMargin(EBIT)%

13.9

12.612.1

13.713.1

12.7

. .

12.6

13.913.3

MQ'09

MQ'10

MQ'11

MQ'12

JQ'09

JQ'10

JQ'11

JQ'12

SQ'09

SQ'10

SQ'11

DQ'09

DQ'10

DQ'11


7/47


FY2011

12

:Delivered

on

oals

ompe ve grow

Ahead of market

ons s en grow

Volume led

ro a e grow

Margin expansion

14

18

108

18

17.5%

140bps

Domesticconsumer HULUVG Price USG

Market HUL Salesgrowth EBIT

HULFMCGgrowth%FMCGgrowth%


8/47

India macro-economic environment

NearTerm Medium

Long

Term

ow

CurrencyDepreciation

FMCGSectorGrowth(1217%CAGR)*Source:CIIFMCGRoadmap2020

Inflation

Monsoon Opportunitiesfromemergingtrends

Significantheadwinds Consumerdemanddriversintact


9/47

1

2 Winning in India The HUL experience


10/47

1. Changing attitudes and rising aspirations

ContemporaryTraditional

Experimentative, aware & discerningAddress basic necessities


11/47

2. Growing incomes amidst continued disparity

2004

196mn households

2009

219mn households

LSM8+

251mn households

15 48 LSM57125

178 162 LSM14104

Affluence will keep rising BOP will remain large

New categories New consumers

New benefits Extending reach


12/47

3. The changing landscape of Urban India

Rapid Urbanization The emerging Urban PoorHybrid Trade Structure

Growing at 2.4% > 20% of Urban live in slums

Source:Census2001&2011projectionsSource:CIAworldfactbook

Co-existence of GT & MT


13/47

4. Rural whilst evolving will continue to remain large

Rising

Income

Diversifying

income

Consumptionand

uptrading

Sizable

Footprint

>3xincreasein Significant StronggrowthMajorityof

governmentexpenditure*

diversificationin

Ruralincomein

emerging

categoriesIndia

will

continuetolive

inRural

*Overthelast5yearsSource:NREGAImplementationStatusReport


14/47

5. Technology creating a wave of change


15/47

and they come with a set of opportunities and challenges

TrendsTrends ImplicationsImplications

Changing attitudes and risingaspirations

Explosion of choice Emerging segments of future

Growing incomes amidst continued

disparity

Opportunity across the pyramid

Headroom for growth

The changing landscape ofUrban India Managing a hybrid trade structure

Pressing need for sustainable practicesRural whilst evolving will continue toremain large

Technology creating a wave of

change Newer ways of engaging consumers


16/47

1

2 Winning in India The HUL experience


17/47

A strategy focussed on delighting our consumers

VIOUR We focus on

consumers

and

customers

Our first priority is to our consumers, then customers,Our first priority is to our consumers, then customers,

employees and communitiesemployees and communities. When we fulfil our responsibilities to

them, our shareholders will be rewarded.

BEH

with a bias

for actionWe will win through a growth mentality and a positive approach to all

our stakeholders, based on clear accountability and bias for action


18/47

Embedding consumer and customer centricity

Consumer Customer

Blind

Product

Win

Credo

Consumer Shoes

Consumer & Customer License

Popeye

CoIns

Lever Care


19/47

Our approach to Winning


20/47



21/47

Portfolio which straddles the pyramid

Premium

BottomofPyramid


22/47

Better quality products, stronger brands

r p e n pro uc w ns mprove ran equ ty scores

3X

2011

2010

2X

3/4thof portfolio

holding/gaining *

X

2009

Measured for the top 25 brands; *Exit 2011 Vs second half 2009


23/47

Stepped up level of innovation

Coverin

60%+

o

ort olio

in

the

last

ear


24/47

Leading market development

SuccessfuldeploymentinSkinandHair

More usage More users More benefits


25/47

Building capabilities to win in Beauty

ReshapingthePortfolio PointofPurchaseExperience

EngagingwithConsumers


26/47

Leveraging the strength of brands

Across Geo ra hies


27/47

Driving premiumization

SKINCLEANSING LAUNDRY SKINCARE(FACE)

UM

PREM

I


28/47

Building segments of future

FacewashesFabric

Conditioners

50% 30%

Conditioners

Growth

Teabags

Growth

40%

Growth numbers are market growths (rounded off) for 2011


29/47

Connecting with the evolving Indian

Digital

Readiness

Engagement

based

Mobile,Social

search,gaming

Consumer

insights,

Buildconsumer

centric

communication andDTH analytics,ROI p at orms


30/47

Newer ways of engaging consumers

Inte rated

video

lus

social

networkin

1

st

ever

FMCG

campaign

from

IndiatoentertheFacebook

Studiohalloffame

3.3lakhs

channel

views

126subscriptions

60videos


31/47

Driving innovative new age communication

Mobile

activation


32/47



33/47

Stepping up front end execution

BetterStoresMorestores Betterserved*

310bps

ProductProposition

CORE SERVICED : 2 Mn+

DISTRIBUTED: 6.5 Mn

Pack

Price

Place

Direct

2010 2011

* Modern Trade on shelf availability


34/47

Winning in the Channel of Tomorrow : Modern Trade

WorldClassService Growingcontribution StrengthenedPartnerships

o. upp er o o ce

eQ^ scores highest in industry201011 201112

AwardedSupplieroftheYearfromWalMart,Tesco, Metro&Hypercity


35/47

Winning in the Geography of Tomorrow : Gateway to Rural

Khushiyon Ki Doli

Increasing

consumer

awareness

ProjectShakti

Expanding

presence

ro ect xpress

Leveraging

partnerships

45,000 Shaktiammas

30,000 Shaktimaans

70,000 Villages

25mln Consumers

HUL TTSL Alliance

>20,000 marketsacrossIndia

100,000 Villages 400,000 Retailers Rolledoutin4states,4moreWIP


36/47

Building differentiated capabilities to win in the market

MumbaiCustomerInsi htandInnovationCentre CiiC

1st

CiiC for Traditional Trade

Building competitive edge through Customer Collaboration

Enabled by Superior Shopper Understanding and Leading Edge Technology


37/47



38/47

Deploying Segmented Business Models


39/47

Driving savings and leverage

Indexed CEPs

Operating Leverage

Indexed Overheads as % of turnover

100110

130

200910201011

100

95

89

201112

CEPs - Cost effectiveness programmes

200910201011

201112


40/47

Driving Return on Marketing Investments (ROMI)

Gettin moreouto advertisin & romotionals ends

Improvement in Ad preview scoresUp by 800 bps

Higher ROIUp 200 bps

asion

70%

+RO

I

Posit

ive

Persu

- -

- - +TO Growth

Awareness

Production and media feesLower by 900 bps

More green activitiesHigher by 1100 bps

2010

2011

2010

2011


41/47



42/47

Building a talent powerhouse

# 1 Employer of choice by Nielsen

Campus track

# 1 Best employer in India, 2011awar e y on ew

# 1 Dream employer across campusesSurvey by Nielsen


43/47

Strengthening Performance culture

Aligned goals Sharper

differentiation

ewar n e o

performance

Leadership

Standardso

201112

Delivery

Performance culture index is up by 14% in 2011


44/47

Engaged to win

Step up in employee

engagement scores

Near Nil man days lost

preceding

5year

average

2009 2010 20112009 2010 2011

Engagement scores for WL2+

h h f i d i b i ibl


45/47

At the heart of our strategy is doing business responsiblySustainable Livin Plan with ambitious oals


46/47

And we are making steady progress

30 million people touched by Lifebuoy handwashing programs in 2010-11

30 million people have gained access to safe drinking water through

~60% of our major food and beverage brands comply with the Healthy

Choice uidelines

Reduced CO2 emissions by 14.7%, water use by 21.5%, waste by 52.8%*

Improved CO2 efficiency by 17.8% in transportation

60% of tomatoes in Kissan Ketchup are sourced sustainably

*in our factories, over 2008 baseline


47/47

WINNING IN THE INDIA OFTODAY & TOMORROW

,

11Sept2012

Date post:	08-Aug-2018
Category:	Documents
Upload:	sagar-indran
View:	227 times
Download:	0 times

HUL Presentation - Winning in India

Documents