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