hul

LeverCare - Enhancing CustomerValue at Hindustan Unilever

Suman Pal, Hindustan Unilever.Nikhil Alulkar, SAP India23rd July 2009

© SAP 2008 / © SAP 2008 / Page 2

1. Overview of Hindustan Unilever2. Changing FMCG Dynamics in India3. LeverCare – Consumer Connect Program4. Distribution Value Chain Enhancement

4.1 LeverCare - Stockist4.2 VIJETA Loyalty Management

5. VIJETA Loyalty Management5.1 Communication Channels (Web, Contact Center)

Agenda

© SAP 2008 /

About Hindustan Unilever Limited

Source: http://www.hul.co.in/investor/annual_report_2008.asp

http://www.hul.co.in/investor/annual_report_2008.asp

© SAP 2008 /

About Hindustan Unilever Limited

6 Megabrands ~ $ 150 to 200 mn each, 53% FMCG portfolio

© SAP 2008 / © SAP 2008 / Page 6




Agenda

© SAP 2008 /

Stockist

PrimaryCustomer

Wholesaler

Retailer

Modern Trade

Competition

Family GrocerSuper valueStore

Small kirana

Consumers

Consumers

Consumers

Consumers

HindustanUnilever

The Traditional FMCG Value Chain Is changing…

© SAP 2008 / © SAP 2008 / Page 8




Agenda

© SAP 2008 /

LeverCare Genesis

Lever Care is project of bold ambition, aimed at setting up a world-classconsumer connect system to help consumers reach the company, and equally infuture, to help brands reach out to consumers.

Challenges

Crystallizing process flows, functional roles & responsibilities

Migration of near 1000 SKUs to new HUL Lever Care pack artworks within a stifftimeframe and managing the regulatory sensitivities

Setting-up an outsourced call centre & courier services

Providing an elaborate IT infrastructure based on SAP-CRM architecture

Crafting comprehensive Brand FAQs and, training call agents

© SAP 2008 /

LeverCare – Business Processes

FeedbackTo Capture Consumer insight on HUL’s products and servicese.g. consumer did not like Lux Provocateur black color

QueryTo answer consumer queries on HUL’s products and servicese.g. if any product is available to remove pimple and pimple marks

ComplaintTo address consumer complaints on HUL’s products and servicese.g. consumer bought Lux Bodywash but within a week it became semi-solid mass

OthersTo address any other type of consumer call on HUL’s products and services not coveredas above.e.g. consumer had an idea which he wanted to share with us – he wanted HUL address

© SAP 2008 /

LeverCare – Consumer Connect Program

C O N S U M E R S

Phone SMS eMailSnail Mail

TechShastra.com LeverCareback-office

Ageis Call Centre

LeverCare – core team

Escalation

Category QA Category LTMBrand CDLegal

EscalationF E

E D

B A

C K

F E E D B

A C

KF

E E

D B

A C

KF E E D

B A

C K

Enqu

iry /

feed

back C

omplaintsC

ourie

r SPO

CSa

mpl

es: r

epla

cem

ent/c

olle

ctio

n

Com

munication

Personal contact

Web

© SAP 2008 /

LeverCare – Consumer Interactions

© SAP 2008 /

LeverCare – Consumer Knowledge SearchResult

Answer to anybrand query

© SAP 2008 / © SAP 2008 / Page 14




Agenda

© SAP 2008 /

LeverCare – Primary Customer ConnectProgram

HUL Retail Store

Phone

Call Centre @ CMC Hyderabad

ASM

Inte

rnal

Not

e Resolution

Inte

rnal

Not

e Resolution

SMS

eMail

Complaint Feedback Query Others

eMail

RSM Branch Legal Branch Commercial CSE

Phon

e / e

Mai

l eMail / SM

S

© SAP 2008 / © SAP 2008 / Page 16




Agenda

© SAP 2008 /

Challenges in Current Landscape

Manual TierManagement

ManualO/L Enrollment

Redemption

TargetSetting

Point Calculation

VIJETA Program

Channel Team /ADC

Unify

High manual consolidationLonger Redemption timeOne version of the truth on sales,inventory and margin in real timeCommunication channels

Process related challenges

Vijeta Member

Member Relatedchallenges

Lack of transparency on points accrualFaster Goto Market, lack of agilityLimited transparency

© SAP 2008 /

We choose SAP CRM Loyalty Management

Integrate / Analyze / Collaborate

ProgramManagement

MembershipHandling

Program PartnersManagement

PointsManagement

Tier based PointExpiration

Dynamic Attributes

Tier Management

Program Creation

Point ExpirationProcessing

Online MemberActivity Processing

Batch MemberActivity Processing

Simulation of RuleProcessing

Scalable EngineComponent

Tier EvaluationProcessing

Point AccountManagement

Member TierManagement

Member Activities

Basic MembershipCard Handling

Membership Typesand Registration

Member ProfileMaintenance

ProcessingEngine

Sales OrderIntegration IC IntegrationLoyalty API

ConnectivityWeb Channel

Integration

Reward RulesManagement

VersionManagement

Template & Expertmode maintenance

PartnerSponsorship

Robust RuleModeling

Rule Scheduling

CampaignIntegration

HUL’s strategy, SAP CRM as single platform forcustomer related initiativesOffers integrated Loyalty Management Solutionalong with Marketing campaigns.Rich functionality & Integration capabilityClear future Road Map.Support from SAP.

© SAP 2008 /

Program ManagementTier Management: Example

Ability to have different point based tiers on point accrualsSystem Initiated

Tier transition rules – transition based on member attributes / monthly sales volumeUser Initiated

User Initiated – Based on evaluation by HUL Representative.Marketing Specials :

Campaigns/ Rules which evaluate and reward member behaviour

TierLevel

TierGroup

TierLevel

Base

Gold Platinum

TierLevel

Silver

QualifyingTurnover

Qua

lifyi

ng P

urch

ase

TierLevel

Value in

INR

LoyaltyProgram

30K to 1.49L

20K to 49K

10K to 99K

1.5L - 2.99 L

50 K – 99 K

1L - 1.99 L

3 Lac+

1 Lac+

2 Lac+

Program

Management

Rew

ardM

anagement

Proc

essi

ng

Engi

ne

Membership

Handling

© SAP 2008 /

Loyalty Management - OverviewCommunication

Vijeta ProgramMembers

Internet

Phone

Email

MultiChannel

Interaction

Membership Handling

Web Shop Interaction Centre CRM UI

Retailers

Program Management

ProcessingEngine

LoyaltySalesOrder

MemberActivities

Rew

ardR

uleM

anagement

BillingDocument

PointRedemption

PointAccount

LoyaltyManagement

Rule Engine

Program

Management

Rew

ardM

anagement

Proc

essi

ng

Engi

ne

Membership

HandlingLead

© SAP 2008 /

Vijeta Outlets earn points…

Earning linked to value of Sales250 INR = 1 Point

Base Point

Earning linked to sales Vijeta Packs.Points = Product + Quantity + TierPower Point

Earning linked to quarterly sales target achievementIntegration with Unify system.Bonus Point

Earning linked to achievement of VISI schemeVisibility of HUL products at the retail outlet

Visi Point

Base Point Calculation

Power Point Calculation

Point Account

© SAP 2008 /

HUL Vijeta - Reward Rule Management

Base Reward

BonusPromotion

MonthlyPromotion

Tier changeevaluation

One Point for purchase of every INR 250.

If member exceed its quarterly target, give % of base point earned duringthe

quarter as Bonus PointsSilver Members get 50% pointsGold Members get 75% pointsPlatinum Members get 100% points

If member buys any of the published power packs for the month, awardpower

points depending on the Product / Tier / Quantity combination

Rules based Quarterly update on purchase

System RulesCharacteristics

Simple administrationInvolve rule based conditionsBonus Points (Triggers)Visibility Points based on sales visitTier transition rules

Exception RulesCharacteristics

Complex conditionsNot administered frequently

ExamplesMultiple activities promotionssuch as time locationmerchandise and customer/targetgroup dependent

Generic User Interface

Common RulesCharacteristics

Represent frequently employedmarketing techniques to achieve specificresultsFollow a limited number of “templates”Need to be deployed quickly and reliably

ExamplesPower pack PromotionsRetail promotions (src. of revenue)Seasonal promotionsFixed ratio between receipt value andpoints rewardedVisibility points

Templates

© SAP 2008 /

VIJETA – Contact Center

I am Santosh, calling fromGeetha Rani General

Store.

Hi, Welcome to VijetaCall Centre..

How may I help you !

My HUL Party Code isHUL-101015D-9

Easy Member Identification

© SAP 2008 /

VIJETA Member Inquiry

Customer identified by the call centre agent

Customer identified by the call centre agentCustomer identified by the call centre agentBy HUL Party CodeBy HUL Party Code

© SAP 2008 /

You have 2284.91 Basepoints and 1400 powerpoints in your account

I want to know my accountbalance

VIJETA Member Inquiry

© SAP 2008 /

Cont….

Anything else I canassist you with?

May I know my lasttransaction details.

© SAP 2008 /

You have cut a bill of amount Rs.18,228 forCAC DNDRF CLN 512X5M.

You have received 72.91 base points for thesame.

VIJETA – Point Inquiry

© SAP 2008 /

Thanks

Redeem Request for “Trip to Malaysia” hasbeen processed which will consume 150 Points.

Our Customer Support team will call you forfurther details

VIJETA – Redemption Processing

© SAP 2008 /

Stockist

PrimaryCustomer

Wholesaler

Retailer

Modern Trade

Competition

Family GrocerSuper valueStore

Small kirana

Consumers

Consumers

Consumers

Consumers

HindustanUnilever

Proposed Benefits – VIJETA @ SAP CRM

Long Term Relationship with Retailers

Operational Efficiency in Administrating Loyalty Programs

To understand market insights and launch Campaigns (Power Packs)

© SAP 2008 /

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