hul
TRANSCRIPT
LeverCare - Enhancing CustomerValue at Hindustan Unilever
Suman Pal, Hindustan Unilever.Nikhil Alulkar, SAP India23rd July 2009
© SAP 2008 / Page 2© 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 / Page 3
About Hindustan Unilever Limited
Source: http://www.hul.co.in/investor/annual_report_2008.asp
© SAP 2008 / Page 4
About Hindustan Unilever Limited
Source: http://www.hul.co.in/investor/annual_report_2008.asp
© SAP 2008 / Page 5
About Hindustan Unilever Limited
6 Megabrands ~ $ 150 to 200 mn each, 53% FMCG portfolio
© SAP 2008 / Page 6© SAP 2008 / Page 6
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 / Page 7
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 / Page 8© SAP 2008 / Page 8
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
4. VIJETA Loyalty Management5.1 Communication Channels (Web, Contact Center)
Agenda
© SAP 2008 / Page 9
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 / Page 10
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 / Page 11
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 / Page 12
LeverCare – Consumer Interactions
© SAP 2008 / Page 13
LeverCare – Consumer Knowledge SearchResult
Answer to anybrand query
© SAP 2008 / Page 14© SAP 2008 / Page 14
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 / Page 15
LeverCare – Primary Customer ConnectProgram
HUL Retail Store
Phone
Call Centre @ CMC Hyderabad
ASM
Inte
rnal
Not
e Resolution
Inte
rnal
Not
e Resolution
SMS
Complaint Feedback Query Others
RSM Branch Legal Branch Commercial CSE
Phon
e / e
Mai
l eMail / SM
S
© SAP 2008 / Page 16© SAP 2008 / Page 16
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 / Page 17
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 / Page 18
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 / Page 19
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 / Page 20
Loyalty Management - OverviewCommunication
Vijeta ProgramMembers
Internet
Phone
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 / Page 21
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 / Page 22
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 / Page 23
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 / Page 24
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 / Page 25
You have 2284.91 Basepoints and 1400 powerpoints in your account
I want to know my accountbalance
VIJETA Member Inquiry
© SAP 2008 / Page 26
Cont….
Anything else I canassist you with?
May I know my lasttransaction details.
© SAP 2008 / Page 27
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 / Page 28
Cont….
Anything else I canassist you with?
I want to Redeempoints
© SAP 2008 / Page 29
VIJETA – Redemption Request
© SAP 2008 / Page 30
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 / Page 31
Last Interactions by Geetha Rani GeneralStores
VIJETA – Contact CenterMember Interactions
© SAP 2008 / Page 32
Knowledge Management - VIJETA ContactCenter
Problem
Solution proposed by system
© SAP 2008 / Page 33
VIJETA Member – web self service
© SAP 2008 / Page 34
VIJETA Member – Sales Transactions
SAMPLE PRICES, NOT ACTUAL
© SAP 2008 / Page 35
VIJETA Member – Billing Transactions
SAMPLE PRICES, NOT ACTUAL
© SAP 2008 / Page 36
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 / Page 37© SAP 2008 / Page 37
Thank you!
© SAP 2008 / Page 38
Copyright 2009 SAP AGAll Rights Reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained hereinmay be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries,eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+,POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, ParallelSysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.
Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or othercountries.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logosare trademarks or registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products andservices mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in othercountries. Business Objects is an SAP company.
All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only.National product specifications may vary.
These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only,without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAPGroup products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein shouldbe construed as constituting an additional warrant.