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MMS - Crm By HUL
HUL is India's largest fast-moving consumer goods (FMCG) company with over 75 years of experience in India. It has a pan-India footprint with products that touch the lives of 2 out of 3 Indians daily. HUL holds the number 1 or strong number 2 position in over 95% of the business categories. The company aims to double its size while reducing environmental impact by inspiring small everyday actions. It has demonstrated consistent growth, achieving an 11.3% CAGR from 2006 to 2010-2011. HUL also has strong brands, market leadership positions, talented employees, and global leverage that position it well to capitalize on growth opportunities in India.
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MMS - Crm By HUL
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- 2. Our Vision We workto create a better future everyday. We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small everyday actions that can add up to a big difference for the world. We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact. 5
- 3. HUL: India’s largestFMCG Company More than 75 years of experience in India Get more out of life Market Capitalization > of $ 16 Bln Products touch the lives of 2 out of 3 Indians everyday No.1 and strong No.2 in more than 95% of the business 7 brands > $200 mn*; 12 brands > $100 mn 17 out of top 100 most trusted brands in India^ ^Brand Equity Survey, 2011; *mn: million; Bln: Billion Conversion rate: 1$=INR 45.76 6
- 4. Pan India footprint Population1.2 billion 5545 Towns 638,000 villages • 2.5 million outlets 5 million outlets • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ~ 16,000 employees • ~ 2,000 suppliers & associates • ~ 70 Manufacturing Locations • ~ 43 Depots, 2700+ Distributors • ~ Direct Coverage 1.5 m outlets * Source: (1) Statistics on India, Total Coverage : AC Nielsen, Census of India 2011 (2) Statistics on Market reach: MRUC, Hansa Research - Guide to Indian Markets 2006 • HUL manufacturing locations 7
- 5. Unparalleled leadership positions MarketLeader Strong No.2 HUL - Market Share (%) * Source: AC Nielsen market share for FY 2010-11 average Competition Market Share (%) 8
- 6. Portfolio pyramid Fabric Wash PersonalWash Soaps & Detergents: 45% Shampoo Skin Tooth Paste Personal Products: 30% HOME AND PERSONAL CARE * % contribution of the segment to total revenue in FY 2010-11 9
- 7. Portfolio straddling thepyramid Tea Coffee Beverages: 12% Processed Foods Ice Creams Packaged Foods: 6% Water Others: 2.2% FOOD & BEVERAGES AND OTHERS * % contribution of the segment to total revenue in FY 2010-11 10
- 8. Recent Performance Turnover: From$2.6 bln to $4.2 bln CAGR(Cumulative Annul Growth Rate) 11.3% 2006 2007 *$/ Rupee conversion at 2010 average rate; 1$=INR 45.76 2008 2009-10 2010-11 11
- 9. External Recognition Consumers Customers Most responsive supplierof the year 6 EMVIES in 2011 6th most innovative company globally - Forbes eQ* at 89 Value Award by TESCO India (world class level) *Nielsen Equity Management Program Score Employees Communities Golden Peacock Global Award for Corporate Social Responsibility for the year 2011 No.1 Employer by Aon Hewitt Best Employer Brand in Asia, 2011 Golden Peacock Environment Management Award for 2011 in the FMCG category 1
- 10. HUL: Uniquely positionedto exploit the opportunity Portfolio Capabilities Strong brands across benefits & price points Consumer understanding, supply chain, go-to-market Talent Global Leverage No.1 Employer*, diverse talent pool R&D, brand development, buying *awarded by Aon Hewitt in 2011 18
- 11. Turbo charging theCompass Driving virtuous circle of growth 20
- 12. Win in core… Soaps& Detergents Beverages 2
- 13. …and drive categoriesof tomorrow Personal Products Packaged Foods 2
- 14. Winning in Skin& Hair Care Reshaping our portfolio Building future segments Transforming the experience Integrated communication 2
- 15. Reshaping our portfolio Towardsaspirational beauty and expertise 2
- 16. Building emerging segments Newbenefits Anti Aging Premium Whitening Colour Cosmetics New regimes Hair Conditioners Hair treatments 27
- 17. Transforming experience Through Pointof Sale Beauty Salons Assisted sales with professionally trained Beauty Advisors: Largest footprint Lakme Salons: Evolving beauty experience 2
- 18. With integrated communication Traditionalmedia CRM Online CRM: Consumer Relationship Module
- 19. Strategy delivering results PremiumSkin Lightening Hand & Body Market Size in $ Mln Market Size in $ Mln VHW Share 259 159 HUL Share 212 126 184 147 79 53 2008 2009 2010 2011 2008 2009 Hair Conditioners 2010 2011 Face Wash Market Size in $ Mln Market Size in $ Mln HUL Share HUL Share 176 128 88 35 19 2008 42 26 2009 2010 2011 2009 Market growth / share: AC Nielsen; VHW: Vaseline Healthy White; Market size and HUL shares are on different scale; 2011: MAT Sep’11; Conversion rate: 1$=INR 45.76 2010 2011 30
- 20. Personal Products: Drivinggrowth Portfolio contribution Personal Products / Total sales (FY 2010-11) Personal Products *PP: Personal Products Growth contribution Personal Products incremental/ Total incremental sales (FY 2010-11) Rest 31
- 21. Building Packaged Foodswith Knorr & Kissan Building Savoury Soups Soupy Noodles Dish Penetration Building Spreads & Dressings 3
- 22. Accelerating growth inIce Creams Leveraging strong portfolio Creating out of home experience Leading market development Delivering results $ mn revenue - CAGR 22% More than 150 parlours * Calendar Year; ^ Financial Year; Conversion rate: 1$=INR 45.76 3
- 23. Win with winningcustomers: Rural Rural coverage tripled in 2010 Every village in the country mapped Technology leveraged for blueprinting Rigorous ROI model for each state Shakti & Shaktiman 45000 Shakti Ammas & 23000 Shaktiman across villages Khushiyon ki Doli Largest ever consumer contact programme 3
- 24. Execution powerhouse: ProjectiQ • Rolled out Nationally • Drive higher throughput through perfect stores 3
- 25. Lean, responsive &consumer led value chain Consumer Perceived Quality • Product incidents • Consumer complaints End2End Competitive Cost • Manufacturing & Distribution excellence Service & Execution • Commodity Risk Management • CCFOT • OSA *CCFOT: Customer Case Fill On Time; OSA: On Shelf Availability; E2E: End to End 39
- 26. Results Service & Execution Competitive Cost 2700+ Distributors GlobalBuying Scale MT Distribution & Collaboration Multi-functional Savings Integrated Quality Culture 123 125 140 100 127 100 Reduction in consumer complaints Improvement in Shelf QDI# 2007 2009 Current Indexed CCFOT* #Quality Demerit Index * Customer Case Fill On Time 2009 2010 2011 Indexed CEPs^ ^CEPs: Cost effectiveness programmes; 4 Financial year
- 27. ROMI: Comprehensive approach Optimumallocation to advertisement, promotions & trade spends Optimised promotional sell out Optimal advertising production & fee ROMI: Return on Marketing Investment 4
- 28. Winning with People #1 Dream employer across campuses High people engagement 65 HUL 62 TAS 59 P&G 55 BCG 53 .McKinsey & Co 51 Aditya Birla Group # 1 Best employer in India, 2011 awarded by Aon Hewitt 45 ITC Goldman Sachs 39 Indexed Employee Engagement Scores 4
- 29. Building a consumer& customer centric organisation Consumer & Customer Centricity 3500 employees on street, 16,000 outlets converted into perfect stores Customer Credo 4
- 30. Driving a newperformance culture Comprehensive Framework Measured by Business Results Performance Culture Index 46
- 31. How will wewin 47
- 32. Leading responsible growth GROWMARKETS RESPONSIBLY ENSURE SUSTAINABLE PRACTICES RESPONSIBLE LEADERSHIP 48
- 33. Launched India WaterBody 4
- 34. Competitive & profitablegrowth in a challenging environment • Domestic Consumer business grows 18.5% • Strong 9.8% UVG* with good price growth • Double digit growth across all FMCG segments • Strong performance in Modern Trade and Rural • Operating profit grows by 30.1%; up 130 bm • Growth driving leverage benefits across the value chain • Inflation managed through judicious pricing and focus on buying efficiencies & CEPs • COGS^ up by 340 bps; high input costs in Soaps & Detergents • Competitive brand investment maintained across segments • PAT at $143 mn (Rs. 652 crores), grows by 22.3%; Net Profit $151 mn (Rs. 689 crores), up by 21.7% • Interim dividend of 7.6 cents (Rs.3.50) per share *UVG: Underlying Volume Growth; ^COGS: Cost of Goods Sold; CEP: Cost effectiveness programmes; Conversion rate: 1$=INR 45.76 51
- 35. Accelerated growth momentum;sustained volume growth Domestic Consumer Business Sales Growth 18% 15% 13% 9% FH'10-11 UVG* *UVG: Underlying Volume Growth; SH'10-11 JQ'11 SQ'11 12.6% 13.5% 8.3% 9.8% 52
- 36. Continued focus oninnovations Fair & Lovely Future Tube: Aspirational & affordable Relaunch of Lakme Fruit Moisture Range Lux relaunch with silk protein extract Vaseline relaunched: Multi layer moisture Face Wash: Range expansion across brands Comfort: New variant with anti bacterial action Vim relaunched with “100 Nimbuon ki Shakti” Dove: Nourishing Oil Care range with Vita Oils Pond’s White Beauty Naturals Now more accessible with Re.1 sachet Vaseline Lip Therapy with 4 new variants Deo range expanded with Axe Provoke 53
- 37. Continued focus oninnovations Kissan range relaunched: Helping moms in providing goodness and nutritive value to their kids Knorr Soupy Noodles: Accessible Rs.5 pack Unique green tea experience with 3 flavours Taj Mahal Tea Bags: 7 flavours for 7 days Pureit Marvella: Entry into “RO”segment 54
- 38. High media intensitycontinues Industry - Indexed Chart 151 139 157 165 152 131 123 124 SH'10-11 FH'11-12 100 2008-09 2009-10 FH'10-11 FMCG excl S&D S&D S&D: Soaps and Detergents Source: Mindshare & HUL internal estimates 55
- 39. Ads &Promotion remainscompetitive across segments Category Competitive SOV/ SOM* Brand investment Personal Products Packaged Foods Beverages Soaps & Detergents • A&P spends maintained at $142 mn (Rs.651 crore); lower by 200 mn • Spends increased in Personal Products, Beverages and Packaged Foods • Recalibrated in Soaps & Detergents in line with industry • Focus on ROMI continues *SOV/ SOM : Share of voice/Share of market by HUL sub category 56
- 40. Inflationary pressures remainhigh Commodity Inflation % increase in SQ’11 vs SQ’10 52% 45% 20% • Prices moderate from recent Palm Oil Crude Coffee highs • Currency depreciation to have USD INR an adverse impact going forward 10% + depreciation 49 48 45 45 44 Jan'11 July'11 Aug'11 Sep'11 Average market prices (Source: Market Rate), HUL rates may be different Oct'11 57
- 41. Looking ahead Challenges • Uncertainglobal economic environment Problems • Strong monsoon augurs well • Diverse portfolio straddling the • Inflation and adverse impact of rupee depreciation • Competitive intensity pyramid • Differentiated capabilities for competitive advantage FMCG Markets will continue to grow 60
- 42. CRM strategy andgoals remain unchanged • Competitive Growth • Profitable Growth • Sustainable Growth Winning Today Winning Tomorrow 61
- 43.