Winning in the marketplace - Unilever
Winning in the marketplace - Unilever
Winning in the marketplace - Unilever
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<strong>Unilever</strong> Investor Sem<strong>in</strong>ar<br />
<strong>W<strong>in</strong>n<strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> Market Place<br />
Harish Manwani – Chief Operat<strong>in</strong>g Officer
Organis<strong>in</strong>g for Growth
Uniquely Balanc<strong>in</strong>g Scale and Focus<br />
Developed Emerg<strong>in</strong>g Markets<br />
Europe North<br />
La8n<br />
SEAA South Asia NAMET & RUB Africa North Asia<br />
America America<br />
Private<br />
Consump8on<br />
(PPP)<br />
0.9 billion<br />
Source: <strong>Unilever</strong> es/mates , OEF, United Na/ons, Globelgro<br />
5.9 billion popula8on (+0.8bn by 2020)<br />
48% of world<br />
Private<br />
Consump8on<br />
(PPP)<br />
52% of world (60% by 2020)
What We Are Do<strong>in</strong>g BeAer<br />
Scal<strong>in</strong>g Up<br />
Repeatable<br />
Models<br />
Roll<strong>in</strong>g Out<br />
with Speed<br />
and Agility<br />
Rais<strong>in</strong>g <strong>the</strong><br />
Bar on<br />
Performance<br />
Driv<strong>in</strong>g<br />
Dynamic<br />
Resource<br />
Allocation<br />
Driv<strong>in</strong>g<br />
Strategic<br />
Alignment
Rais<strong>in</strong>g <strong>the</strong> Bar on Performance: Driv<strong>in</strong>g “4Gs”<br />
1. Consistent Growth<br />
2. Competitive Growth<br />
3. Profitable Growth<br />
4. Responsible Growth
Consistent and Broad Based Growth<br />
Total <strong>Unilever</strong><br />
Underly<strong>in</strong>g Sales Growth (%)<br />
3.5%<br />
4.1%<br />
6.5%<br />
6.6%<br />
2009 2010 2011 YTD Sept 12<br />
* Jan-‐Sept 2012<br />
Categories *<br />
Underly<strong>in</strong>g Sales Growth (%)<br />
9.5%<br />
Personal<br />
Care<br />
10.2%<br />
Home<br />
Care<br />
2.0%<br />
5.5%<br />
Foods Refresh-‐<br />
ment<br />
Geography *<br />
Underly<strong>in</strong>g Sales Growth (%)<br />
11.7%<br />
0.8%<br />
Emerg<strong>in</strong>g markets Developed<br />
Markets
Competitive Growth<br />
Source : Retail Audit/GMI<br />
Value Share Change (bps)<br />
2011 MAT L 12 wks
Profitable Growth<br />
Driv<strong>in</strong>g Marg<strong>in</strong> Agenda <strong>in</strong> <strong>the</strong> Markets<br />
GeVng <strong>the</strong> right price Bus<strong>in</strong>ess unusual on costs Opera8onalis<strong>in</strong>g Max <strong>the</strong> Mix<br />
Scale Up<br />
SKU rationalisation<br />
High Gross Marg<strong>in</strong><br />
Low Gross Marg<strong>in</strong><br />
Accelerate Growth<br />
Low Turnover High Turnover<br />
Improve<br />
Gross Marg<strong>in</strong>
Responsible Growth<br />
Improv<strong>in</strong>g Health and<br />
Well-‐Be<strong>in</strong>g<br />
Reduc<strong>in</strong>g<br />
Environmental<br />
Impact<br />
Enhanc<strong>in</strong>g<br />
Livelihoods
What We Are Do<strong>in</strong>g BeAer<br />
Scal<strong>in</strong>g Up<br />
Repeatable<br />
Models<br />
Roll<strong>in</strong>g Out<br />
with Speed<br />
and Agility<br />
Rais<strong>in</strong>g <strong>the</strong><br />
Bar on<br />
Performance<br />
Driv<strong>in</strong>g<br />
Dynamic<br />
Resource<br />
Allocation<br />
Driv<strong>in</strong>g<br />
Strategic<br />
Alignment
Driv<strong>in</strong>g Strategic Alignment<br />
Accelerated Growth <strong>in</strong> Emerg<strong>in</strong>g Markets and Personal Care<br />
Emerg<strong>in</strong>g Markets<br />
Underly<strong>in</strong>g Sales Growth (%)<br />
7.9%<br />
11.5%<br />
11.7%<br />
2010 2011 YTD Sept 2012<br />
Personal Care<br />
Underly<strong>in</strong>g Sales Growth (%)<br />
6.4%<br />
8.2%<br />
9.5%<br />
2010 2011 YTD Sept 2012
What We Are Do<strong>in</strong>g BeAer<br />
Scal<strong>in</strong>g Up<br />
Repeatable<br />
Models<br />
Roll<strong>in</strong>g Out<br />
with Speed<br />
and Agility<br />
Rais<strong>in</strong>g <strong>the</strong><br />
Bar on<br />
Performance<br />
Driv<strong>in</strong>g<br />
Dynamic<br />
Resource<br />
Allocation<br />
Driv<strong>in</strong>g<br />
Strategic<br />
Alignment
Driv<strong>in</strong>g Dynamic Resource Allocation<br />
Potential Donors Potential Receivers<br />
Cell A<br />
Cell B<br />
Cell C<br />
Cell = category-‐country comb<strong>in</strong>a/on<br />
Cell D<br />
Cell E<br />
Compe88ve Brand<br />
Support (SoS/SoM Index)<br />
Category A Category B Category C Category D<br />
YTD August 2012<br />
100<br />
Source: <strong>Unilever</strong> Media database
%<br />
<strong>W<strong>in</strong>n<strong>in</strong>g</strong> <strong>in</strong> Key Markets<br />
18<br />
16<br />
14<br />
12<br />
10<br />
Value Shares -‐ Fabric Clean<strong>in</strong>g Ch<strong>in</strong>a<br />
Q2 2009 Q2 2012<br />
%<br />
32<br />
30<br />
28<br />
26<br />
Value Shares -‐ Hair Care US<br />
Q2 2009 Q2 2012<br />
<strong>Unilever</strong> Brand Compe/tor Brand <strong>Unilever</strong> Compe/tor
What We Are Do<strong>in</strong>g BeAer<br />
Scal<strong>in</strong>g Up<br />
Repeatable<br />
Models<br />
Roll<strong>in</strong>g Out<br />
with Speed<br />
and Agility<br />
Rais<strong>in</strong>g <strong>the</strong><br />
Bar on<br />
Performance<br />
Driv<strong>in</strong>g<br />
Dynamic<br />
Resource<br />
Allocation<br />
Driv<strong>in</strong>g<br />
Strategic<br />
Alignment
Roll<strong>in</strong>g Out with Speed and Agility<br />
> 60 countries<br />
> 60 countries<br />
Roll out to 5<br />
countries s<strong>in</strong>ce acquisition
What We Are Do<strong>in</strong>g BeAer<br />
Scal<strong>in</strong>g Up<br />
Repeatable<br />
Models<br />
Roll<strong>in</strong>g Out<br />
with Speed<br />
and Agility<br />
Rais<strong>in</strong>g <strong>the</strong><br />
Bar on<br />
Performance<br />
Driv<strong>in</strong>g<br />
Dynamic<br />
Resource<br />
Allocation<br />
Driv<strong>in</strong>g<br />
Strategic<br />
Alignment
Scal<strong>in</strong>g Up Repeatable Models<br />
Market Development<br />
Reach Up, Reach Down, Reach Wide<br />
Perfect Stores<br />
Global roll out <strong>in</strong> 75 countries<br />
Low Cost Bus<strong>in</strong>ess Model<br />
Deployed <strong>in</strong> Laundry & Ice Cream<br />
End to End<br />
Value Cha<strong>in</strong>
What We Are Do<strong>in</strong>g BeAer<br />
Scal<strong>in</strong>g Up<br />
Repeatable<br />
Models<br />
Roll<strong>in</strong>g Out<br />
with Speed<br />
and Agility<br />
Rais<strong>in</strong>g <strong>the</strong><br />
Bar on<br />
Performance<br />
Driv<strong>in</strong>g<br />
Dynamic<br />
Resource<br />
Allocation<br />
Driv<strong>in</strong>g<br />
Strategic<br />
Alignment
Employer of Choice <strong>in</strong> Key Markets<br />
20 Most Desirable Companies<br />
Now No.1 FMCG<br />
Employer Brand <strong>in</strong> 19<br />
Countries<br />
Ne<strong>the</strong>rlands<br />
Mexico<br />
India<br />
Indonesia<br />
Germany<br />
Argent<strong>in</strong>a<br />
Russia Turkey<br />
Chile<br />
Pakistan Sri Lanka<br />
Vietnam<br />
• Graduate survey, <strong>in</strong> target campuses<br />
• No 1 Foreign FMCG <strong>in</strong> Japan<br />
UK<br />
Japan<br />
Brazil<br />
Spa<strong>in</strong><br />
Peru<br />
Bangladesh<br />
South Africa
From ‘Fit to Compete’ to becom<strong>in</strong>g ‘Fit to W<strong>in</strong>’<br />
<strong>W<strong>in</strong>n<strong>in</strong>g</strong><br />
Differently<br />
<strong>W<strong>in</strong>n<strong>in</strong>g</strong> <strong>in</strong> Strongholds <strong>W<strong>in</strong>n<strong>in</strong>g</strong> <strong>in</strong><br />
Fron/er Markets<br />
Europe La8n<br />
South Asia<br />
Africa<br />
America
<strong>Unilever</strong> Investor Sem<strong>in</strong>ar<br />
<strong>W<strong>in</strong>n<strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> Market Place<br />
Harish Manwani – Chief Operat<strong>in</strong>g Officer
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