1 [email protected] ray bremner svp, marketing operations foods, asia, africa, middle east

1

[email protected]

Ray Bremner

SVP, Marketing Operations

Foods, Asia, Africa, Middle East

2

Ray Bremner - CV

-Senior Vice President, Marketing Operations Foods Asia, Africa and Middle

-Previously Chairman of Unilever Mashreq

-Marketing Vice President of Unilever Arabia, Unilever Development Co. Lipton International, Beverages UK.

-Joined Unilever UK 1979 as Customer and Marketing trainee.

3

Scale and geographic reach

4

Demographics

Source: OEF

6.1

4.7

Asia AMET

75%

Share

4.4GDP Growth Rate (PPP)

6.3Population – Billion

2005e World

5

Our Consumers are Diverse

300 m

1.2b

3.2b

Affluent

Aspiring

Striving

6

Our portfolio

7

Adding Vitality to life

8

Growth Strategy

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Local Roots with Global Scale Local roots Global scale

Brands

Cost advantage

Tech

no

log

yVal

ues

&

rep

uta

tio

n

Portfolio

Affordability

Availab

ility &

reach

Peo

ple

& C

om

mu

nit

y

Talent

Culture Insi

ght

Connectio

n

Strategic Approach

Local Roots with Global Scale

10

Marketing Tasks in Unilever

Category Planning

Brand Planning

Integrated Brand Communication

Innovation

Customer

Measurement

Consumer Understanding

11

Marketing Processes in Unilever

Consumer Market & Shopper Understanding

Brand Key VisionBrand Vision Plan Brand Marketing Plan

CommunicationActivation

Category StrategyCategory Building

Innovation/RenovationLaunch ManagementEvent Management

Channel PropositionsCustomer,Marketing & Category Management

Measure and evaluate performance

Category Planning

Brand Planning


Innovation

Customer

Measurement


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Marketing organisation

Category Planning

Brand Planning


Innovation

Customer

Measurement


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Winning in the market place

Through world class brand mixesThe Role of Brand Development

Bought to market brilliantlyThe Role of Brand Building

With Category & Region working seamlessly & interdependently

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Communication In store In use

Consumers Buyers Consumers

3 Points of Consumer Contact

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Understanding buyer behaviour

People shop on auto-People shop on auto-pilotpilot

Shoppers are not Shoppers are not closely involved with closely involved with our brandsour brands

Buyer behaviour follows Buyer behaviour follows certain “rules”certain “rules”

Helps us understand Helps us understand how to drive market how to drive market shareshare

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So what are these “rules”?

Market shareMarket share

==

How many people buy our brand How many people buy our brand - Penetration- Penetration X X

How often they buy the categoryHow often they buy the category - Category- Category frequency frequency X X

How often they choose usHow often they choose us - Loyalty- Loyalty X X

How much they buyHow much they buy - Average pack - Average pack size size

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The Unilever 6P’s Model

Buyer behaviour

Market Dynamicsand

Financial Return

6Ps(Brand Levers)

TO Volume

Price

TO Value

Volume Mkt Size Volume Share

Value Mkt Size Value Share

Market growth

Profit

Pack ProductProposition Promotion PricePlace

Choice:Loyalty

Consumption: Category frequency

Consumption: pack size

How much they buy

Penetration

How many people buy

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Product

The Unilever 6Ps Model

The brand that consumers have in their heads.Proposition

Promotion

Place

Pack

Price

Promoting the brand wherever the consumer is.

What happens wherever consumers buy the brand

The packaging the consumer sees and uses

The price the consumer pays, regular or on promotion.

The product or service offered.

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Market dynamics & financial

returns

Profit

Turnover

Price

Volume

Value market size

Market growth

Volume market size

Value share

Volume share

Buying behaviour

Penetration

Loyalty

Share of purchase

Average pack size

Purchase frequency

6P's (brand levers)

Pack•On shelf

impact•Variant

diff’tiation•Perceived

quality•Competitor

impact

Price

•Price elasticity

•Competitor pricing

•Value pricing

Product

•Performance vs. claims

•Performance vs. competition

The Unilever 6P’s Model

Place

•Distribution•Visibility•Number of

lines•Share of

shelf

Proposition

•Consumer attitude

•Brand health

•360º comms

•Brand investment

•ROI•Competitor

activity

Promotion•ROI

•Depth of discount

•Number of promotions

•Compliance•Competitor

activity

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6 P’sDetective Tool

Science and Art

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6Ps Detective Worksheet

Who? What? When? Where?• Who specifically is

driving changes in consumption?

• Who specifically is most loyal to brand?

• What are the sources of growth/decline?:-more/less people buying-buy more/less often-buy more/less product

• When specifically are consumption changes happening?-all the time-seasonally-linked to promotions

• Where specifically is this behaviour being observed?-at national, regional, channel or retailer level

Buying Behaviour

WHY?

Proposition

• How relevant, differentiated & credible do consumers perceive the brand benefit?

Price• Consumer

perception of brand value for money vs competition?

Pack• How effective

is brand packaging both at point of sale & in-use?

Product• How well do

products perform vs competition vs BVP KPIs?

Promotion• Are

promotion activities delivering against their objectives?

Place• Available

right place & right time when consumers might want to buy?

6P Brand Levers

TV

Volume in market

• Is market volume growing or declining?

• Down to retailer level

• Are there shifts between brands in volume market share?

Value in market

• Is market value growing or declining?

• Down to retailer level

• Are there shifts between brands in value market share?

Price in market• Does price in-market reflect pricing strategy?

• Competitor pricing activity?

• What is the impact of price on value share?

Internal financials• Market volume the

key measure• What are the

reasons for difference between internal & external trends?

Market Dynamics

& Financials

Surface Issue • A description of the headline issue which you have observed or which has been presented to you

Root Issue

• A highly specific and insightful description of the issue you are facing, identified by interrogating and cross referencing data from the various levels of the 6P’s Growth Model

Next Steps

• What action must you now take to help identify the relevant Job to be Done?

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Case Study:

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Completed 6Ps Detective Worksheet for ‘Magnum’ case study

Who? What? When? Where?

‘Savvy seekers’ segment

•Switching to competitor Choc Snack brands

•Switching driven by competitor promotional activity

•All grocery retail, especially Tesco & Asda

Buying Behaviour

WHY?

Place

•Holding distribution

Pack

•No issues

Price•EDLP not in

line with premium positioning in the market

Product

•Superior chocolate quality in blind tasting

Proposition

•90% aided awareness

•Falling Conviction score benefit

Promotion

•Losing promotional slots to Cadbury

6P Brand Levers

Volume in market

•Magnum volume down

•Market volume growing

Value in market

•Magnum value down

•Dilution of category profitability

Price in market

•Magnum at ‘Every Day Low Price’

•Magnum price 25% below Choc Snack segment price ceiling

Internal financials

•Margin hit if heavy promotions on top of EDLP

Market Dynamics

& Financials

Surface Issue Magnum core variants losing share of multipacks market

Root Issue

Declining loyalty to Magnum amongst Savvy Seeker group due to stronger competitor promotional activity and perceived lack of Magnum unique benefits

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6Ps Brand Growth Model

Buyer behaviour

Market Dynamicsand

Financial Return

6Ps(Brand Levers)

TO Volume

Price

TO Value



Market growth

Profit


Choice:Loyalty



How much they buy

Penetration

How many people buy

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Brands built on ideas that endure...

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... that may provoke debate

...even social change!

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…wherever they may run.

Europe Latin America

USA

Asia

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Brands that are driven by insight

Sunsilk for mulatto hair Sunsilk for afro hair

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...and foresight...

Weight Management Growth of over 50’s

Hispanic & Asian Non-traditional Households

Example from Foods North

America

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Brands that deliver health.....

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...hygiene...

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…nutrition…

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...and vitality.

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Brands that make you feel good…

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…Look good...

Visibly whiter teeth in two weeks

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…and get more out of life

Flora Pro Activ: clinically proven to significantly reduce cholesterol

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Buyer behaviour

Market Dynamicsand

Financial Return

6Ps(Brand Levers)

TO Volume

Price

TO Value



Market growth

Profit


Choice:Loyalty



How much they buy

Penetration

How many people buy

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Brands that talk to the head…

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Brands that talk to the heart….

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…. Through messages one cannot miss

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… that arrive with bravado...

Knorr boat party

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Viso Washing Powder: the Guinness Book of Recordslongest washing line ever at 5.2 kms: Phnom Penh

…that stage spectaculars...

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Lux Super Rich : Bangkok -longest catwalk ever

…with style & drama...

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…that break world records...

Vaseline Durban - South Africathe Guinness Book of Records largest bar of soap at 12.5 tons

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….across all Communications

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Cornetto ‘Love’ campaign

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Exploiting the lid

Buy Cornetto Flip the Lid SMS Free Download

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Cornetto Love Songs Website 2007

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Love Songs 2007 “romantic’ press conference…

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….generated record media coverage, in print…

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… and On-line

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Pop Concerts in major cities……..

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…. a great platform to engage with our core target

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> 2 million SMS’s in 2007 ….

April August

5 months

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+4%

Cornetto 2007 25% Growth YTD

+18%

+20%

+21%

+23%

+48%

+24%+29%

Sale

s V

alu

e

0

10,000

20,000

30,000

40,000

50,000

60,000

Jan~M

ar AprM

ay Jun Ju

lAug

Sept

Oct

200520062007

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FlipThe Lid

BTL

Pres

ence

ATL

…. Its all about CONSISTENCY

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Appropriate communication

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BD’s & BB’s seamlessly working to bring the brands to life in the market place...

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Buyer behaviour

Market Dynamicsand

Financial Return

6Ps(Brand Levers)

TO Volume

Price

TO Value



Market growth

Profit


Choice:Loyalty



How much they buy

Penetration

How many people buy

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Retail Trade Development in Asia/Africa

1% 3% 5% 10%22%

32%40%

51%60%

87%99% 97% 95% 90%

78%68%

60%49%

40%

13%

Niger

ia

India

Iran

Egypt

Indones

ia

China

Turkey

Philippin

es

S Afri

ca

Austra

lia

Modern TradeTraditional

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Serve our diverse retail portfolio

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Widest Coverage in Asia/Africa

> 5,9005,900 core distributors

> 9 million> 9 million retail outlets

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Winning in Modern Trade

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... dominate the gondola...

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... enliven the aisle...

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...and bring powerful in-store events.

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And dominate the General Trade

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Buyer behaviour

Market Dynamicsand

Financial Return

6Ps(Brand Levers)

TO Volume

Price

TO Value



Market growth

Profit


Choice:Loyalty



How much they buy

Penetration

How many people buy

69

Packs that leap from historic disarray...

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…. to design alignment.

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Brands that have proprietary design

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…outstanding ergonomics...

Anti-Hangover Re-load Snake Peel Boost

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Aspirational but

unaffordable Affordable & accessible

Toothpaste,

margarine, tea,

laundry powder

Shampoo Category

One Shot Usage Re-closable Sachets

Sachets Only

Deo MinistickTeabag 3sMini Cubes

Packs that are affordable

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Buyer behaviour

Market Dynamicsand

Financial Return

6Ps(Brand Levers)

TO Volume

Price

TO Value



Market growth

Profit


Choice:Loyalty



How much they buy

Penetration

How many people buy

75

Our Consumers are Diverse

300 m

1.2b

3.2b

Affluent

Aspiring

Striving

76

International Competitors - Top of the pyramid

Local Competitors - Bottom of the pyramid

Unilever - “Work the pyramid”

Leverage the full potential of the market

Unilever - Business Approach

77

Unilever Marketing Approach

4000m

Striving<$1,500

1500mAspiring$1,500-15,000

800mAffluent

Making the aspirational affordable

Affordably priced basics

Fulfilling Aspiration

Income shown at Purchasing Power Parity rates in U.S. dollars

78

Business Strategy: Differentiated Brand Portfolio

Laundry, India Hair, Indonesia

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Affluent

Aspiring

Striving

Business Strategy : Research and Development Approach

Leverage global mixes

Increase consumption & uptrade

Drive penetration

Superior benefits

Sensory edge

Packaging innovation

Appropriate functional benefits

Aggressive cost engineering

Low unit price (LUP)

R&D

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Cost + Margin = PriceCost + Margin = Price

“Reverse Engineering”

Affordable Unit Price – Margin = Target CostAffordable Unit Price – Margin = Target Cost

Conventional

Business Strategy: Pricing and Cost Approach

81


Buyer behaviour

Market Dynamicsand

Financial Return

6Ps(Brand Levers)

TO Volume

Price

TO Value



Market growth

Profit


Choice:Loyalty



How much they buy

Penetration

How many people buy

82

x7x7

Product quality is THE key driver of the long term success of a new launch

Bases data suggests that only products with strong purchase

intent should be launched

4

3

Magnifying

Innovations:

Magnifying

Innovations:

BASES Product Purchase Intent Ranking

0

10

20

30

40

50

60

70

80

<20% 20-39% 40-59% 60-79% 80%+

In-M

arke

t S

urv

ival

Rat

e

BASES Success Hurdle

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Demonstrably superior whites performance

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…novel tastes…

Larger leaf, superior infusion, bigger fruit

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…superior sensories...

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BIG Unilever Brands...

• distinctively positioned & insightful• underpinned by great technology• supported through great

communication• can be adapted to different

consumer needs• can be expressed with local touch • surprise & delight the consumer

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Made BIGGER...Via Brilliant Local Touch

• distinctive, insightful local positioning • supported through locally-effective

communication• adapted to local consumer needs• expressed & made relevant via local

touch • surprise & delight the local consumer,

shopper & customer

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To fulfill our Mission

1 [email protected] ray bremner svp, marketing operations foods, asia, africa, middle east

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