Unilever · •Unilever is one of the largest fast moving consumer goods (FMCG) companies with a...

Unilever

August 2019

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Table of Contents• Executive Summary Slide 3

• Company Insight Slide 4

‒ Company Overview

• Strategy & Strategic Plan Targets Slide 7‒ Business Strategy Slide 8

‒ Business Challenges Slide 32

• Marketing Insight Slide 36

‒ Marketing Priorities Slide 37

‒ Marketing Technology Stacks Slide 47

‒ Marketing Spend Slide 48

• Digital Transformation Strategy Slide 49

‒ Digital transformation

• Key Executives Slide 65

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Executive Summary

Overview• Unilever is a multinational

corporation selling consumer goods including foods, beverages, cleaning agents and personal care products

• The company operates across three division: Beauty & Personal Care (BPC), Foods & Refreshment and Home Care

• It is dual-listed company consisting of Unilever NV in Rotterdam and Unilever PLC in London

Business Strategy• Unilever is building purpose-

led and future-fit portfolio to deliver long term growth and sustainable value creation

• The company is increasing its digital capabilities across its business to increase efficiency and seize growth opportunities

• It is strengthening its core brands and businesses increasing its core benefits, producing superior products

Marketing Priorities• Unilever is increasing spend

in areas driving growth, such as digital media and in-store, whilst reducing production and promotional spend

• Unilever is accelerating adoption of a new model of marketing focused on brand with purpose, generating great content, delivered via digital channels using advanced data and analytics

Digital Transformation• Unilever is accelerating its

digital transformation across all areas of operation

• Its digital transformation strategy is aimed at building technology and data analytics infrastructure in order to connect directly with a billion consumers

• Unilever is in the process of hiring more skilled manpower for its digital transformation

Source: Business Brainz analysis

COMPANY INSIGHT

Headquarters Employees Customers

Major competitorsNet incomeRevenue

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UnileverCompany Overview (1/3)

London, United Kingdom

Colgate Palmolive, Kimberly-Clark, Procter & Gamble, Kerry, Nestle, J&J

€9.8 billion (FY2018)€51 billion (FY2018)

2.5 billion consumers155,000 (FY2018)

Source: Company website and reports

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Overview

• Unilever is one of the largest fast moving consumer goods (FMCG) companies with

a range of around 400 household brands and sells foods, beverages, cleaning

agents and personal care products

• Unilever is a dual-listed company consisting of Unilever NV in Rotterdam and

Unilever PLC in London

• The company operates across three division: Beauty & Personal Care (BPC), Foods

& Refreshment (F&R) and Home Care

‒ BPC is Unilever’s largest division that includes five global brands with turnover of €1 billion or above, namely Axe, Dove, Lux, Rexona and Sunsilk, as well as other household names such as TRESemmé, Signal, Lifebuoy and Vaseline

‒ F&R consists of five global brands with turnover of €1 billion or above, namely Dirt is Good (e.g. Omo and Persil) and Surf

‒ Home Care is home to two global brands with turnover of €1 billion or above, namely Dirt is Good (e.g. Omo and Persil) and Surf

Source: Company website and reports; Industry reporting

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History

• In 1929, Unilever was formed by a merger of the operations of Dutch Margarine Unie and British soap maker Lever Brothers• In 1940, Unilever led the development of a corporate structure in which local Unilever business acted with a high level of independence and

focus on the needs of local markets• In 2000, Unilever embedded sustainable thinking further into its day-to-day activities to ensure the company remains a sustainable business• In 2010, the company launched Unilever Sustainable Living Plan outlining its strategy to decouple growth from its environmental impact while

increasing its positive social impactUnilever in 2019


BUSINESS STRATEGY & PRIORITIES

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Unilever Business Strategy (1/18)

Unilever strategy is to deliver long-term growth and sustainable value creation by:

• Building purpose led and future fit portfolio • Strengthening its core brands and businesses through its focus on purpose & sustainability and market development • Increasing its digital capabilities with focus on marketing, R&D and innovation• Acquisition & disposal to drive portfolio transformation

Mission: “To make Sustainable Living Commonplace”

Vision: “To grow our business, whilst decoupling our environmental footprint from our growth and increasing our positive social impact delivered through the Unilever Sustainable Living Plan”

UnileverBusiness Strategy

Purpose Led, Future Fit Portfolio

Increasing Digital Capabilities

Strengthening Core Brands

Acquisition & Disposal


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Unilever Business Strategy (2/18)Unilever’s growth is largely driven by its purpose led sustainable living plan and its future fit portfolio. Unilever is building future fit portfolio by

digitizing its business, shifting its portfolio, reshaping the cost and asset base and unleashing the full potential of C4G (Connected 4 Growth)


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Unilever Business Strategy (3/18)

“Purpose creates relevance for a brand, it drives talkability, builds penetration and reduces price elasticity. In fact, we believe this so strongly that we are prepared to commit that in the future, every Unilever brand will be a brand with purpose”

- Alan Jope, CEO, Unilever (June 2019)


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UnileverBusiness Strategy (4/18)

Brands With Purpose

• In June 2019, Unilever CEO Alan Jope outlined his vision for the

future of Unilever’s marketing, and the product it sells, stating

that business will dispose brands that lack purposeful messaging

‒ The company is working with Kantar, a data and insight

company, to measure consumer perceptions around how

Unilever brands are achieving their purpose-driven goals and

the brands not living up to the company’s standard are likely to

be sold off

• According to the company’s CEO, the increased investment in

brands that stand for something is impacting the company’s

bottom line

‒ In June 2019, according to the company, Unilever had acquired

€2.8 billion of turnover from its purposeful brands and

disposed of €4 billion of turnover from brands that according to the

company did not have a long-term proposition and were stuck in

low-growth categories

• In June 2019, Unilever announced that its Purpose-led,

Sustainable Living Brands were growing 69% faster than the rest

of the business and delivering 75% of the company’s growth

‒ Unilever’s Sustainable Living Brands are those that

communicate a strong environmental or social purpose, with

products that contribute to achieving the company’s ambition

of halving its environmental footprint and increasing its

positive social impact

‒ In 2018, Unilever’s Sustainable Living Brands grew 69% faster

than the rest of the business, compared to 46% in 2017

Purpose-Led

Source: Company website and reports; Industry reporting; Drum

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‒ Unilever has 28 Sustainable Living Brands – the four new entrants are Close Up, Wheel, Calve and Bango

‒ Seven of Unilever’s top ten brands – Dove, Knorr, Omo/Persil, Rexona/Sure, Lipton, Hellmann’s and Wall’s ice cream – are all Sustainable

Living Brands

“We believe the evidence is clear and compelling that brands with purpose grow. Purpose creates relevance for a brand, it drives talkability, builds penetration and reduces price elasticity. In fact, we believe this so strongly that we are prepared to commit that in the future, every Unilever brand will be a brand with purpose.”

- Alan Jope, CEO, Unilever (June 2019)

People With Purpose

• In 2018, Unilever launched new Standards of Leadership to develop

purpose-led and future-fit leaders

‒ Developed in collaboration with thought leaders and groups of

young and senior leaders, the new Standards recognizes the need

for leaders to embrace both the inner and outer aspects of

leadership


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‒ The ‘outer game’ what leaders need to do to succeed; the

‘inner game’ is about their inner purpose which guides their

behaviors and actions

• Attracting and retaining talent is vital to support its growth

ambition for Unilever. Purpose and Unilever Sustainable Living

Plan (USLP) remain key talent attractors for the company

‒ In the company’s 2018 UniVoice survey, 70% of employees

believed that they could fulfil their purpose at work and 75%

of the employees believed their role contributes to the USLP

‒ To reinforce this link and give more people a stake in the

business, the company is developing its approach to reward by

including more long-term share-based incentives for business

performance and progress on its USLP targets

Company With Purpose

• Unilever takes an active part in social change and puts sustainable

development at the heart of all its activities

• Since 2010, the company has developed the Unilever Sustainable

Living Plan, a cross-cutting project that aims to improve quality of

life of millions of people and an objective intersects with one of

global projects: the United Nations Sustainable Development

Goals and the 2030 Agenda

• The Unilever Sustainable Living Plan is based on three pillars

‒ Improving health and well-being for more than 1 billion people

‒ Reducing environmental impact by half and

‒ Enhancing livelihoods for millions

Purpose-Led (continued…)


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• Unilever is building future fit portfolio by digitizing its business,

shifting its portfolio, reshaping the cost & asset base and

unleashing the full potential of C4G to drive growth and adapt to

changing environment

• Acquisition plays a major role for Unilever in its pursuit of building

a future-fit portfolio

- As of end of 2018, Unilever had acquired 13 companies

including wellbeing focused Equilibra in 2018

- Other major acquisition includes that of Quala S.A, AHC (Carver

Korea), Schmidt’s Natural and its acquisition in Prestige

portfolio

• During the year 2018, in its pursuit of building and growing the

company’s Future-fit portfolio, Unilever launched several new

brands including: RED RED (UK), Culture Republicks (US), and

Jawara (Indonesia) to support its future-fit portfolio

Future-Fit portfolio


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- In 2018, Unilever launched Breyers Delights in Europe after

success in the US

- The company launched IcecreamNow platform in partnership

with restaurant delivery services, building a new home-delivery

channel

• The company’s strategy to build future-fit portfolio is to lead new

trends

‒ To catch up with the latest trend, Unilever intensified its

efforts and increased its footprints in the fast-growing natural

segment through the launch of Omo naturals in New Zealand,

France and Brazil among others, the roll-out of Seventh

Generation in more markets and the launch of Sunlight

Naturals across South-East Asia and South Africa

‒ Considering growing concern about plastic waste, Unilever’s

brands such as Cif, Omo/Persiland Seventh Generation

responded by including recycled plastic in their packaging

‒ The company’s Home Care Segment launched Day2, a dry

wash spray that revives clothes between washes – saving time

and water

‒ Unilever increased its presence in e-commerce, crossing €500

million of sales and continued to experiment with new

business models such as peer-to-peer laundry services

‒ Unilever is meeting the needs of local consumers and

customers by responding faster to the consumer trends with

quick decision making

o Global marketing networks called Brand Communities work hand in

hand with more than 230 Country Category Business Teams (CCBTs)

Future-Fit portfolio (continued…)


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that operate as multifunctional entrepreneurial units

o This allows for more experimentation, responsiveness and scaling up

of innovation across markets

o The company is seeing an improvement in time to market across its

portfolio as result of range of initiative to speed up the innovation

process

o According to the company, in 2018, the time to market with new

innovation to meet local trends was 40-50% faster compared to 2016

• Unilever’s efforts to transform its Food & Refreshment (F&R)

segment to a future fit portfolio is largely driven by consumer

insight. For instance, Unilever sees stronger preference for

healthier product with more natural and organic ingredients

‒ F&R launched a number of products addressing this trend,

including Magnum and Hellmann’s vegan variants in Europe,

meat-free Knorr launched in Nordics and Ben & Jerry’s non-

dairy alternative

‒ Knorr expanded its organic and 100% natural ranges in Europe

‒ In its beverages category, the company continues to grow its

‘good for me’ tea ranges. Lipton’s range, which includes

variants such as detox and stress-less, continued its global roll-

out with strong performance

‒ Pukka Herbs, acquired in September 2017, continues to grow

at pace

• The company is building future fit portfolio by unleashing full

potential of its Connected 4 Growth (C4G) program which plays a

significant role in driving growth and is also responsible for

margin expansion for profitable growth



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‒ The company has improved its speed to market by reflecting

how C4G is helping to unlock speed and agility. Also the

company is piloting new ways of working across its teams

o With C4G program, the company can respond to consumer trends

more quickly. Unilever launched nearly 30 brands in the last 2 years

(2016-2018)

o Local brands are also being launched more quickly followed by rapid

roll-out, for instance Breyers Delight, Love Beauty and Planet and

Lakmé all responded to the trend for more natural and healthy

products

‒ Through C4G, Unilever is seeing higher levels of

empowerment, collaboration, experimentation and increased

speed in decision-making

‒ The company’s C4G program is empowering its people with an

owner’s mindset and gives them the license to take greater

responsibility

‒ The company continues its saving program to reduce

structural costs, while providing funding for portfolio

transformation and margin expansion

• To build future-fit portfolio, Unilever is reshaping the cost and

asset base

‒ In 2018, Unilever’s 5S and Zero Based Budgeting (ZBB)

programs steeped up fueling the company’s gross margin and

marketing support

‒ Through sharper financial discipline governing overhead

spending and its Zero Based Budgeting (ZBB), Unilever is

reducing its costs and uncovering innovative ways of working



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‒ Unilever is applying the 5S ‘smart’ program across the Group which cuts costs and examines the business case for improvements more

broadly driving savings through smart buying, smart sourcing and a smart product portfolio as well as leveraging its supplier Partner to Win

program

o 5S also drives revenue and margin through smart mix and smart pricing delivered through its Net Revenue Management program

o 5S is delivering over €1 billion of savings per year, with the aim to reinvest two-thirds of these savings



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Unilever is increasing its digital capabilities to increase efficiency and

seize growth opportunities

• BPC is accelerating the adoption of a new model of marketing

focused on brands with purpose, generating great content,

delivered via digital channels using advanced data and analytics

‒ The model is creating many new consumer touchpoints. In

September 2018, Axe collaborated with DJ Martin Garrix to

launch his Burn Out video with over 40 million YouTube views,

celebrating the brand's message of individuality

‒ In Latin America, Sunsilk partnered with an online influencer

to co-create products for curly hair

• One of F&R segment’s strategic priority is to transform its

capabilities with a focus on R&D, lean innovation and precision

marketing

‒ The creation of state-of-the art global Foods Innovation

Centre in Wageningen (Netherlands) will further strengthens

its innovation capability which is scheduled to open in 2019

‒ The company is also enhancing its capabilities in digital-driven

marketing through extra resourcing across key markets,

upskilling its current teams and hiring digital savvy marketers

o AI, machine learning and voice related technologies are being used to

deliver personalized and immersive experiences to its consumer

platforms such as Recipedia and Cleanipedia websites

o Unilever has been aggressively hiring people for its ‘digital hubs’

located across major markets where the company operates

o As of February 2019, the company already had 1,300 digital

marketers and 85% of its marketers globally had completed its

“digital world training”

Increasing Digital Capabilities

Source: Company website and reports; Industry reporting; Marketing Week

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• Home care segment is also investing in its capabilities. This

includes partnering to tap into the opportunities that data brings

to make Home Care more efficient and better able to seize

growth opportunities

‒ In China, the company’s water purification brand, Truliva,

partnered with Alibaba to develop an online leasing market

for water purifiers

‒ It also joined forces with Ms Paris, the Chinese dress rental

platform, that allows consumers to hire designer dresses and

return without laundering

Unilever is strengthening its core brands and businesses with a focus

on purpose & sustainability, increasing core benefits, producing

superior products and developing new markets

Increasing Digital Capabilities (continued…)


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• The company’s BPC’s core brands are introducing new

innovations and formats quickly and at scale, such as the new

shower mousses from Axe, Dove and Radox as well as a growing

range of products which respond to the trend for natural and

wellbeing products

‒ During 2018, Unilever launched Vaseline Clinical Care and

Dove Derma Series in the therapeutics segment and Dove

Facial Cleansing Series infused with 100% plant-derived

botanical oils in Japan

‒ Hair care has created and launched multiple naturals products,

creating a business with over €300 million in turnover in 2018

‒ To succeed in hyper-fragmented world, Unilever launched

nine new brands over the past two years (2016-2018)

o Love Beauty and Planet has expanded from North America into four

markets in Europe and is active across several categories including

skin cleansing, deodorants, skin care and hair care

• Home Care strengthened the foundation of the business by

delivering superior products and benefits

‒ The company launched Cif Specialist sprays across 15 countries

in Europe whilst continuing to roll-out its toilet blocks to 11

more markets

‒ Unilever expanded its product portfolio into high potential

geographies, building on its most established brands such as

Omo-branded floor cleaners in Brazil

‒ The company’s Comfort Intense ultra-concentrated fabric

conditioners are now in 20 markets and continue to enjoy

strong growth

Strengthening Core Brands


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‒ The company’s brands made progress in embracing purpose to connect more meaningfully with consumer – in particular millennials

o In India, Domex enrolled renowned movie stars in its 'Pick up the brush’ campaign to help overcome the social stigma associated with

cleaning toilets, a key barrier to improve sanitation

o Home Care’s biggest brand, Omo/Persil, joined forces with National Geographic, IKEA and Lego to promote the developmental benefits of

play in children

Strengthening Core Brands (continued…)


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Turnover at the time of acquisition since 1 January 2015. Horlicks not included, expected completion end of 2019


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Unilever has undertaken an aggressive growth strategy through

acquisition, particularly in the premium beauty and natural products

space, as it seeks to grow its e-commerce business, build out a more

robust data collection operation and expand internationally

• As of May 2019 since 2015, Unilever had acquired 29 companies.

In 2018, Unilever reported spending $1.45 billion on acquisitions.

The figure stood at a significant $5.5 billion in 2017

• Acquiring brands, instead of building new ones gives Unilever

access to a new set of customer data. It also gives Unilever the

chance to import talent from smaller companies

‒ Schmidt’s Naturals – an Oregon based natural personal care

products brand acquired in 2017 has been built entirely using

data-driven marketing

• Thirteen of the 25 companies Unilever acquired between 2015

and 2018 have been in the beauty and personal-care space

‒ Six of these brands – Dermalogica, Kate Somerville, Living

Proof, Hourglass, Ren, Murad and Garancia – have been

grouped by Unilever into a new division, called the Prestige

Group, which holds Unilever’s premium beauty brands

‒ In May 2019, Unilever acquired OLLY Nutrition to further

complement its business in Beauty & Personal Care

• For Unilever, buying a new brand instead of building it in-house

allows the company to enter a new product category and

accelerate growth in key geographic regions faster

‒ In April 2019, Unilever acquired Flucaril and Parogencyl to

give the company a leading position in oral care within French

pharmacy channel as well as strong positions in Spain

Acquisition & Disposal


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‒ Unilever acquired The Vegetarian Butcher, holding company

of Graze and 75% stake in Equilibra to accelerate its presence

in the healthy snacking and increase presence out of home

markets which have lower environment impact

• The company is particularly interested in acquiring premium

beauty companies as well as brands that will help Unilever build

out its e-commerce and digital capabilities

‒ AHC (Carver Korea), acquired in 2017, showed strong e-

commerce performance and in 2018, the company expanded

to Taiwan, Hong Kong, Singapore, Malaysia and Russia

• Unilever’s acquisition and disposal is accelerating the company’s

growth and driving portfolio transformation

‒ Since 2015, the company has acquired €2.8 billion of turnover,

all purposeful brands, and disposed of €4 billion of turnover

from brands that according to the company did not have long

term propositions and were stuck in low-growth categories

o In June 2018, Unilever announced it had completed the sale of its

Spreads Business to KKR and Spreads Business in South Africa to

Remgro

‒ Unilever has made several acquisitions in 2019 to grow its

portfolio

o In June 2019, Unilever acquired skincare brand Tatcha to grow the

portfolio of prestige brand to the company

o In March 2019, Unilever acquired Garancia, the French Derma-

cosmetic brand to grow the company’s portfolio globally

o In January 2019, Unilever acquired The Laundress, a global premium

eco-friendly line of detergent, fabric care, and home cleaning to grow

portfolio of Home Care brands

Acquisition & Disposal (continued…)


FOCUS AREA - EUROPE

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UnileverFocus Areas – Europe (1/5)

Q2 2019 Highlights:

‒ Underlying sales declined 0.6% with volumes down 0.2% and price down 0.4%

‒ E-commerce and discounters channels grew strongly, helped by channel-focused divisional strategies

‒ Southern Europe performed strongly, helped by growth in Home Care and Food & Refreshment

‒ Central and Eastern Europe continued to grow well, with good performance in all categories, particularly fabric sensations

Unilever Europe in 2018:

• Turnover: €12,094 million

• Operating Profit: €3,586 million

• Total Employees: 30,000


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Future Fit

Aligned with its global strategy, Unilever is focused on building a

future fit portfolio at its business in Europe. The company is doing so

with help of consumer insight and by transforming its portfolio

• Unilever is leveraging consumer insight and is seeing stronger

preference for healthier product with more natural and organic

ingredient in Europe as well as in other geographies

‒ In Europe, Unilever launched number of products addressing

this trend, including Magnum & Hellmann’s vegan variants,

meat-free Knorr and Ben & Jerry’s non-dairy alternative

‒ In September 2018, Unilever launched Magnum’s two vegan

ice creams in the UK. Similarly, the company also launched

Hellmann’s vegan mayo to tap into the growing vegan market

‒ In 2018, Knorr expanded its organic and 100% natural ranges

in Europe

• According to Unilever, it’s market-focused organizations and

agility supports the company’s transformation towards future fit

portfolio and delivered several new brands in 2018

‒ After success in the US, Breyers Delights was launched in 10

markets across Europe performing at +12% compared to

Unilever’s original forecasting

‒ In addition, Unilever introduced innovative licensed ice cream

brand Kinder in Europe which will be produced in partnership

with Ferrero. The new frozen dessert line is marketed

exclusively in Western European countries

o The launch of Kinder ice cream alongside good weather helped the

company to deliver strong ice cream growth in Europe in 2018

Future-Fit portfolio


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• Globally, Unilever has committed to ensuring that all of its plastic

and packaging is fully reusable, recyclable or compostable by

2025

‒ In the UK and Ireland, Unilever wants to significantly

accelerate this. In June 2019, to drive progress in tackling

plastic waste, the company created five-point plastic plan,

#GetPlasticWise

o Increase the amount of recycled content the company uses and

recyclability of its packaging

o Reduce the amount of plastic in its product and business, and ensure

that the plastic it needs can be reused, recycled or composted

o Seek alternatives to plastic

o Support positive behavior change with its consumers and employees

o Work collaboratively with a range of partners to affect change

‒ In Italy, Unilever launched new tray with its Carte d’Or

segment in May 2019 which is compostable and recyclable

which is made of certified PEFC paper, coupled with layer of

PLA (polylactic acid) that allows it to be waterproof and is

suitable for ice cream

• In January 2019, as part of being a purpose led company, Unilever

disclosed all fragrance used in its home care, beauty and personal

care products sold in Europe

‒ For European consumers, Unilever’s What’s in our Products’

section on its website includes information about the

ingredients and fragrances used and their function

‒ In addition, an online search tool is available to support

people with fragrance allergies to find them suitable products

Purpose-Led

Source: Company website and reports; Industry reporting; Biovoices

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• In 2017, Unilever partnered with the European Vegetarian Union (EVU)

‒ EVU’s logo is added to around 500 of the company’s product, including Hellman’s, Flora and Knorr

• Unilever had cut down plastic use in its plastic food tubs in Europe by up to 7%, saving 12.5 tonnes of plastic in 2016 without impacting the

quality of the product packaging using compression injection technology

Purpose-Led (continued…)


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Unilever is strengthening its core brands in Europe by producing superior products and developing new markets

• Unilever’s BPC’s core brands are introducing new innovations and formats quickly and at scale, such as:‒ New shower mousses from Axe‒ Dove and Radox‒ Growing range of products that respond to the trend for natural and wellbeing products‒ In July 2019, Unilever released second Axe music in partnership with Martin Garris for Europe. It is creating content where the brand

interrupts less and converses more with young audienceso The digital campaign that surrounds music videos has amplified viewership for the videos

‒ To succeed in hyper-fragmented world, Unilever launched nine new brands over the past two years (2016-2018)o In 2018, Love Beauty and Planet expanded from North America into four markets in Europe and is active across several categories

including skin cleansing, deodorants, skin care and hair care• Home Care strengthened the foundation of the business by delivering superior products and benefits

‒ In 2018, Unilever launched Cif Specialist sprays across 15 countries in Europe whilst continuing to roll-out its toilet blocks to 11 more markets

• In 2018, Unilever increased its presence and share in Europe with the discounter channel, which continues to see growth, contributing to top line growth for Unilever while delivering gross profit

Strengthening Core Brands (continued…)


BUSINESS CHALLENGES

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UnileverBusiness Challenges (1/3)

• As of July 2019, Unilever has plans of getting more digital hubs up and running in 2019 as the company looks to apply their knowledge and

learning across all areas of its business

‒ However, Alan Jope, CEO of the company, admitted that hiring people able to run “complex” digital campaigns remains a challenge and is

adding costs

‒ He also highlighted issues such as ad fraud as concern as it shifts more spend and focus into digital. Improving standards and tacking fraud to

protect the integrity of digital marketing has been major challenge to the company

‒ “The bottleneck on great work is having warm bodies to run digital campaigns, rather than absolute digital spend. We need to get people in

place to run more complex digital campaigns”

• In June 2019, according to Alan Jope, woke-washing is beginning to infect the FMCG industry

‒ In 2018, the company threatened to withdraw its advertising from platforms such a Facebook and Google if they failed to eradicate

extremist content that creates division in society and promotes anger and hate

Source: Company website and reports; Industry reporting; The Guardian; Marketing Week; Marketing Interactive

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• Unilever sales declined 0.6% with volumes down 0.2% and price down 0.4% in Europe

‒ Its European business faced challenges from continued price deflation and adverse in the second quarter of 2019

‒ The broader retail environments difficult, particularly in Germany where there was significant decline

• Unilever Sustainable Living Plan set out ambitious target on health, environment and work, including halving the company’s water consumption

by 2020

‒ The deadline is looming but some of Unilever’s target are further off. As of November 2018, the company’s water impact per consumer had

only reduced by around 2%

• Unilever is facing challenge in maintaining its prices and margins

‒ In 2018, the company had to raise its products’ price because of rising commodity cost. With Brexit and other political uncertainties on the

horizon, consumers could become more careful with their spending again and Unilever needs to be mindful of the balance between value

and volume sales

‒ Also as companies fight to retain loyalty amid the rise of Amazon and competition from new entrants, price increases could potentially

backfire

Source: Company website and reports; Industry reporting; The Guardian; Marketing Week; Marketing Interactive

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• Hiring top talent seems to be an issue for Unilever. In a fast-paced environment FMCG’s dominance is waning as young marketers begin to

choose hands-on learning over legacy

‒ The company has been a great learning ground but it’s rigid structure can be off-putting for those who want a range of skills and working for

Unilever doesn’t have the ‘cool factor’ that saying one works for Google and Apple does

• Unilever faces challenge due to disruption by direct-to-consumer marketing

‒ The company bought subscription shaving brand Dollar Shave Club in 2016 to better understand how subscription business works. But the

company needs to develop its own brands and reshape the business models of its core products in order to keep up with the trend

• Overcrowded categories have become more challenging for the company. Since retailers are putting more emphasis on own-brand products,

the company has to compete with cheaper rivals

‒ Unilever needs to ensure that its marketing continues to engender loyalty among consumers so that they don’t defect to cheaper options


MARKETING INSIGHT

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Unilever Marketing Priorities (1/10)

Unilever is adopting new model of marketing focused on

• Investing in new competencies

‒ Increasing investment in its marketing people and in digital marketing

• Building brands with purpose

‒ To create relevance, drive talkability, build penetration and reduce price

elasticity

• Building relationship through content

‒ To ensure its brands are relevant and communicate across fragmented

consumer landscape

• Leveraging digital channels through advanced data and analytics

‒ To get right message to the right people at the right time


Uni

leve

r Mar

ketin

g Pr

iorit

ies Investing in New

Competencies

Building Brands with Purpose

Focus on Content

Leveraging Digital Channels

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UnileverMarketing Priorities (2/10)

The heart of Unilever’s data-driven marketing is the ‘digital hub,’ a physical table where a group of people sit and work in real time, seeking out

new customers for the company’s products. These analysts study the data for consumer traits, segment them, then scale it across an entire

country

“A digital hub is a game-changing way of working being deployed right now in our markets. It is the way we bring data-driven marketing to life. Gone are the days of just having brand managers assisted by advertising agencies. We know that people are working in real -time around one table making dynamic changes as campaigns develop”

- Graeme Pitkethly, CFO (February 2019)


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According to the company’s CEO, Alan Jope in June 2019, the company’s brand communication are driven by data and programmatic, with its 24

digital hubs responsible for delivering more than 600 data-driven campaigns and helped generate 1.5 billion consumer connections


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• Unilever is increasing its investment on its people in marketing and digital marketing as it moves away from big ad campaigns to manage

campaigns in real-time

‒ The increased investment has come as Unilever increases its spend on media and digital channels, which are now 40% of its entire media in

2019

• In January 2019, the company CEO, Alan Jope, announced that Unilever has been aggressively hiring people for digital hubs located across the

major markets where it operates in order to manage content driven, highly-targeted, data-led campaigns

‒ The aim for Unilever to have digital hubs in 24 countries by 2020 has been already achieved in its second quarter of 2019

‒ By February 2019, the company already had 1300 digital marketers and 85% of its marketers globally having completed its “digital world

training”

• Many of its new competencies relate to data. In February 2019, the company introduced “cloud-based data link strategy” that takes data and

coverts it to analytics and insight

Investing in New Competencies

“We are investing in people capability and digital marketing because we recognize that marketing is no longer just creating big campaigns. It is now about having the right people with the right capabilities around the globe and around the table to manage campaigns in real-time”

-Graeme Pitkethly (February 2019)


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‒ This includes more than 150 data points from source such as

device IDs, social listening, promotional satellite data from

stores, third-party data on the weather and real-time data

from its SAP systems

‒ Unilever can leverage this data to gain access to rare insights

that ensure consumers not only hear a brand’s message but

respond as well

‒ The teams in its digital hubs can use that data to segment

audiences by geography, interest and demographic

• Digital hub comes together to deploy campaign, with a content

creation specialist making targeted content, a data governance

specialist managing the data, and a measurement and

optimization specialist driving views and conversions to build ROI

Building Brands with PurposeInvesting in New Competencies (continued…)

• In July 2019, Unilever announced its plans to continue to dispose

any brands that lack social purpose

‒ The company is working with Kantar to measure consumer

perceptions around how Unilever brands are achieving their

purpose-driven goals and those not living up to the company’s

high

• In June 2019, Unilever announced that its purpose-led,

Sustainable Living Brands were growing 69% faster than the rest

of the business and delivering 75% of the company’s growth

‒ Unilever’s Sustainable Living Brands are those that

communicate a strong environmental or social purpose, with

products that contribute to achieving the company’s ambition

of halving its environmental footprint and increasing its

positive social impact

Source: Company website and reports; Industry reporting; The Drum; Marketing Week; Press Reader

| 43


• In 2018, Unilever’s Sustainable Living Brands grew 69% faster than the rest of the business, compared to 46% in 2017

• The purpose of the brand Lifebuoy is to help millions of mothers stay one step ahead of infections so that their children fall sick less often

‒ In 2018, Unilever was able to do so through its infection alert system by leveraging data and reach of mobile phones in traditionally media

dark geographies to ensure that the company acts according to its purpose

‒ Infection Alert System acts as a lighthouse to alert rural consumers when they are most vulnerable to fatal disease. It was created by

Mindshare and used Government of India’s data on disease outbreaks which was collected from 34,000 rural community health centres

across 822 sub-districts in India

‒ Over 64 million Outbound Dialler (OBD) calls were made over a period of 8 weeks to warn the locals on the outbreak of a particular

communicable disease in that area and necessary preventive measures that should be taken

Building Brands with Purpose (continued…)

Source: Company website and reports; Industry reporting; The Drum; Press Reader

| 44


Unilever is increasing its focus on content-driven marketing to ensure its brands are relevant and can communicate across a fragmented

consumer landscape by creating responsible content. The company is creating more content in-house. In 2018, its 16 U-Studios in 13 countries

created brand content faster and more efficiently than external agencies

• In June 2019, Unilever released second Axe music in partnership with Martin Garrixx

⎯ The digital campaign that surrounds music videos has amplified viewership for the videos

⎯ The company is creating content where the brands interrupt less and converse more with its target audience of young consumers

• In February 2019, Dove launched a campaign at the GRAMMY Awards, where it partnered with Kelly Rowland to develop Crown, a music

video centered around self-esteem and confidence

⎯ The sentiment became the basis for Dove’s “Campaign for Real Beauty”, garnering buzz that provided 30X the exposure compared to the

paid-for media space

⎯ According to the company’s CFO, Graeme Pitkethly, the campaign had 428 million impressions in two days, with engagement rates 15%

higher than its benchmark and 95% positive conversations.

• In June 2018, Unilever called on content creators and distributors to eradicate stereotypes

Focus on Content

Source: Company website and reports; Industry reporting; Marketing Week; MediaPost

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⎯ The move marked the company’s Unstereotype initiative, which was launched in 2016 with the aim of eliminating harmful and diminishing

portrayals of people across advertising

⎯ In June 2018, the company announced a three-year multi-million-dollar deal with Rexona and Simon Fuller’s XiX Entertainment to expand

the initiative across all forms of content and branded entertainment

⎯ Rexona partnered with NOW UNITED and co-created content across multiple channels that united different cultures through the joy of

dance and music

Focus on Content (continued…)

“Through our ongoing advertising assessment against Unstereotype criteria we already know that progressive advertising creates 25% more branded impact and new data now tells us that progressive ads are also 16% more relevant, 21 % more credible and can drive purchase intent by 18%”

- Aline Santos, Executive Vice President Global Marketing (June 2018)

Source: Company website and reports; Industry reporting; Marketing Week; MediaPost

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Unilever believes that its future growth depends on accelerating

adoption of a new model of marketing focused on brand with

purpose, generating great content, delivered via digital channels

using advanced data and analytics

• Unilever has credited its shift to a more data-driven marketing

approach for a “significant step up” it has seen in marketing

effectiveness and ROI

‒ In July 2019, the company’s CEO Alan Jope said that its brand

communication are driven by data and programmatic with its

24 digital hubs responsible for more than 600 data-driven

marketing campaign and 1.5 billion consumer connection

‒ He added that the focus to data driven insight has helped

Unilever decrease brand and marketing investment by 30 basis

points while maintaining effectiveness through new discipline

including digital advertising and real-time spend optimization

• Unilever has found that audience segments identified by its

digital teams are relevant across multiple categories and brands,

helping to improve efficiency

‒ This included segments such as vegans and fashionistas that

can be leveraged across all three of its division

‒ In June 2019, Unilever released second Axe music in

partnership with Martin Garrixx. The company is creating

content where its brands interrupt less and converse more

with its target audience of young consumers

• Unilever is working with Google Cloud, utilizing a wide array of

its analytical and AI tools, combined with extensive consumer and

social media data, to precisely target its consumers when running

campaigns

Leveraging Digital Channel

Source: Company website and reports; Industry reporting; Brand News; Marketing Week; Diginomica

| 47


‒ As of April 2019, Unilever implemented Global People Data

Centres (PDC) in 30 markets across the world, which focus on

three core elements

o First, social and business analytics, which is a team that generates

insights from consumer data and social media

o Second, there are consumer engagement centres in each PDC. These

are call centres, which collect data on complaints and suggestions

from consumers

o The third element is people marketing (or CRM), which is accountable

for data driven marketing across the organization

‒ Using these insights Unilever has improved its advertising

campaigns, by adding scale, reach and personalization

• In June 2018, Unilever’s Chief Marketing Officer, Keith Weed, said

that the company planned to build a billion “one-to-one

relationship” with consumers by investing heavily in its own data

and increasing its competency of its direct-to-consumer strategy

instead of relying on ”slow” agencies

⎯ Unilever’s 26 global “people data centres” that combines

social listening, CRM and traditional market research helped

the company to power its Dove’s owner’s shift away from

mass reach and towards more personalized communication

⎯ In 2017, Unilever’s agency cuts helped the company invest an

additional €250 million into media buying and in-store

advertising

Leveraging Digital Channel (continued…)

Source: Company website and reports; Industry reporting; Brand News; Marketing Week; Diginomica; The Drum

| 48

UnileverMarketing Insight - Technology Stack

• Marketing:

‒ 4INFO, AddThis, Admotion, Adobe Audience Manager,

AppsFlyer, Apsalar, Atlas by Facebook, Attendify, BASE for

Brands, Bookwhen, Brand Networks, Brandwatch, BrightInfo,

Capillary, Celtra, ChickAdvisor, Clint Connect, Clever Element,

Codec, CollectiveBias, Connatix, Crisp Mobile, Crowdbabble,

DivvyHQ, Effective Measure, Emerse, Facebook Login, Google

AdMob, Google Doubleclick, Google Sign-In, Google Tag

Manager, GumGum, IZEA, Iconfinder, InMobi, Index Exchange,

Klear, LinkedIn Elevate, Livefyre, Market Logic Software,

Marketing Evolution, Mavrck, Miappi, Millennian Media,

Mobilewalla, Offerpop, Oracle Datalogix, Outbrain, Oxygen8,

Engage, Percolate, Plyfe, Reve Marketing, Seevibes,

Shutterstock, Sizmek, Smaato, Smart Insight, SocialTwist, alva,

Tailwind, Tapjoy, ThisMoment, Vayner Media, Vdopia, Vpon,

Zumobi, boo-box, iPinYou, ipstack, ubisend

• Sales and BD

‒ Drawloop, DueDil, Forecast Pro, Liveminds, Oracle Siebel,

PURVEYANCE, Pocketbix, Proposal and RFP Software,

Salesforce Sales Cloud, SimilarTech, Unmetric, eMarketer,

qriously

• Sales and BD

‒ Adobe Analytics, Alteryx, Amazon Redshift, Evrythng, Google

Analytics, Grow, IBM Cognos Analytics, InfoScout, Jedox Suite,

MicroStrategy, Moat, ORION EDI, Parse Core, PeriscopeIQ, SAP

BusinessObjects BI, Saama, Snowflake, Tableau Software,

Visible Measures, Webtrends, Wylei, Yahoo! Analytics (Flurry),

adjust

Marketing Technology Stack


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UnileverMarketing Insight - Spend

Unilever’s Brand and Marketing Investment is focused on maximizing return on spend. The company is increasing spend in the areas driving

growth, such as digital media and in-store, whilst reducing production and promotional spend

• Brand and marketing investment includes costs incurred for the purpose of building and maintaining brand equity and awareness. These

include media, advertising production, promotional materials and engagement with consumers. These costs are charged to the income

statement as incurred

• Selling & Administration Expenses in 2018 (Annual Report)

‒ Brand and Marketing Expenses: €7,164 Million

‒ Research and development: €900 Million

• Over the last two years (2016-2018) the company has spent €300 million additional on media and point-of-sale which is being funded by a

reduction in things like advertising, production and agency fees

• As of April 2019, Unilever increased its spend on media and digital channels, which are now 40% of its entire media investment

Marketing Spend

Source: Company website and reports; Industry reporting; Marketing Week; The Drum

DIGITAL TRANSFORMATION STRATEGY

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UnileverDigital Transformation Strategy

• Unilever aims to be faster, simpler, more consumer and customer centric, and future ready for the connected world. As part of this, the

company is accelerating its digital transformation end-to-end – from manufacturing and innovation, to marketing and selling – to make Unilever

more competitive in an increasingly digitized world

• The push toward digital is partly to overcome market challenges faced by all consumer goods companies, including lack of growth in the food

business, the effect of weak currencies in emerging markets and the pressure to attract millennials who live by Facebook, Twitter and YouTube

instead of print, radio and TV

• In 2018, Unilever launched a digital transformation program across all aspects of value chain. The company has 30 platforms which power its

business using digital technologies

‒ By April 2019, Unilever had automated over 700 processes in operations – saving time and reducing cost. Its training programs are focusing

on digital up-skilling of its people

“What’s transformative is the way we’re connecting people, making data accessible to a broader employee base and giving them the skills to analyze the data to make better informed decisions, that can have obvious benefits, like increasing efficiency, but also an impact on topics that are central to our business, such as sustainability”

- Jane Moran, CIO (July 2019)

Source: Company website and reports; Industry reporting; Microsoft; S&P

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UnileverDigital Transformation Strategy

• In 2018, Unilever’s digital technology team made investments in AI, machine learning and voice related technologies to deliver personalized

and immersive experiences to consumer platforms such as Recipedia and Cleanipedia websites

• In March 2019, Unilever announced changes to its leadership and organization as it continues its transformation into becoming a faster, leaner

and more agile company

• Unilever is in the process of hiring more skilled manpower for its digital transformation team. The purpose is to connect with its billion plus

customers and improve its efficiency in process building efforts. The company is looking for top talent in:

⎯ Digital Marketing

⎯ Data Driven Marketing⎯ Ecommerce

⎯ Information & Analytics

Source: Company website and reports; Industry reporting; Microsoft; S&P

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UnileverDigital Transformation Strategy: Focus Area – Data Analytics

• According to S&P Global, Unilever is leveraging data to engender

overall transformation that appears to be well ahead of similar

efforts undertaken by many of its peers

• Through its digital transformation journey, the company touches

key areas of Unilever’s operations:

⎯ Many of its 2.5 billion daily customers

⎯ 161,000 employees

⎯ 400-plus household brands and

⎯ 300 production facilities it operates across 190 different

countries

• In the digital transformation model, AI systems predicts demand

better than old-school calculations, new brands are co-created

with consumers, and customers are precisely targeted only with

products they want, primarily on phone and other device

Unilever’s Digital Transformation through Technology & Data

Analytics

“It’s about digitizing all of the aspects of Unilever’s business so that we can leverage the world of data and increase our digital capabilities in everything we do”

-Alan Jope, CEO (January 2018)

Source: Company website and reports; Industry reporting; S&P

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UnileverDigital Transformation Strategy (1/10)

Unilever’s digital transformation plan is primarily aimed at building technology and data analytics infrastructure in order to connect directly with a

billion of its consumers

The company is leveraging data and analytics across

key areas of operations including:

• Consumer Insight and Marketing

• Innovation

• Customer Development

• Supply Chain

• Talent & Organization

• E2E Digitized operations


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• Unilever is linking its customers with more targeted and data-

driven marketing in order to enhance its influence of customer

buying

‒ The heart of Unilever’s data-driven marketing is the digital

hub, a physical table where a group of people sit and work in

real time, seeking out new customers for the company’s

products

‒ These analysts study the data for consumer traits, segment

them, then scale it across an entire country

‒ The Thailand data, for instance, breaks down into 240

segments. Some members of the team create content, others

send the content to consumers, another person monitors the

performance of the overall exercise. One expert is on hand to

ensure that data-privacy rules are followed

Consumer Insight & Marketing

‒ As of June 2019, according to Unilever, the hubs have

delivered over 600 data-driven campaigns and helped

generate 1.5 billion consumer connections

‒ The company plans to expands its digital hubs to 24 countries

by 2020 and across all markets by 2021

• Unilever is rapidly building its own database using customer

registration, third-party sites that consumers visit and data from

store loyalty cards

‒ As of January 2019, according to S&P Global Market Intelligence, the company had amassed 900 million individual customer records, up from 200 million in 2018

“This is probably the one big game-changing thing that we’ve deployed. It’s an end-to-end team that brings the digital hub to life”

– Stan Sthanunathan, Executive Vice President (November 2018)

Source: Company website and reports; Industry reporting; S&P Global Market Intelligence; Marketing Dive

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‒ Of those, 750 million are anonymized numbers for phone and other devices; the rest are customers’ names, addresses and consumption

patterns

‒ For example, in Thailand, in less than a year, the company collected 37 million personal record of Thai consumers, along with the consent

and approval to engage with them

‒ Unilever adheres to the EU’s new GDPR data protection standard in Europe and all other countries

• In April 2019, according to BV Pradeep, VP, Consumer and Market Insight for Europe, North America & LATAM at Unilever, there are three broad

group within the insight function:

‒ Partnering with key business leaders like Microsoft, Salesforce, SAP, Adobe– focusing on converting insights into action to create business

impacts

‒ Centres of excellence – people looking to push boundaries and integrate new technologies

‒ Back office – centralizing and making more efficient the routine work of insight, experiences people using technology

• Unilever is also working with new partners, many of whom would not have previously been in the market research/insight field. The players

have access to new and large forms of consumer data – allowing new outcomes to be achieved

Consumer Insight & Marketing (continued…)

Source: Company website and reports; Industry reporting; S&P Global Market Intelligence; Marketing Dive

| 57


• Over the next two to five year (2019/2021 – 2019/2024), the company aims to speed up as digital centres become the hubs for marketing

‒ Unilever plans to connect to a billion consumers, which has massive implications for digital and AI to enable this target. This process is blurring the boundaries between marketing, insights and commerce

• The company prefers agencies with data and tech competence. Though the company needs qualitative research, the agencies also need to be

able to integrate and leverage technology

• Unilever is leveraging its consumer insight and is seeing stronger preference for healthier product with more natural and organic ingredient in

Europe as well as in other geographies

‒ In Europe, Unilever launched number of products addressing this trend, including Magnum & Hellmann’s vegan variants, meat-free Knorr and Ben & Jerry’s non-dairy alternative

‒ In September 2018, Unilever launched Magnum’s two vegan ice creams in the UK. Similarly, the company also launched Hellmann’s vegan mayo to tap into the growing vegan market

• According to DigiDay, Unilever’s Ben & Jerry’s cereal-flavored ice cream was a result of the company’s analysis of popular songs correlating ice-

cream with breakfast. The company was inspired after it found out that there were around 50 songs that featured lyrics on “ice-cream and

breakfast”

Consumer Insight & Marketing (continued…)

Source: Company website and reports; Industry reporting; NewMR; Digiday; Techwire Asia

| 58


• For Unilever, data is key to build one billion one-to-one consumer

relationships through its People Data Centres which connects the

company with consumers in a responsible way through real-time

analytics

‒ Unilever’s 27 People Data Centres identify trends from social

listening alongside engaging with consumers on ideas for new

launches

‒ In 2018, to pitch Baby Dove in India, Unilever first assembled data

on homes that were known to buy infant products, then used that

data to create a much larger “look-alike” audience on Facebook

o It delivered Baby Dove message directly to those accounts

o It did the same thing on YouTube and found the overall results

to be promising. Typically, for such product, Unilever in India

spends €500,000 monthly on TV and digital marketing

o The new method cost just €100,000 per month and yielded

a bigger jump in brand awareness and other measures

• The company’s contact with consumer is governed by its Code

Policy on Personal Data & Privacy which sets out the steps it take

to protect personal data

• Customer development is key to growth for Unilever, Through

this, Unilever is trying to ensure that its products are available

when and where consumers want them, in the format they prefer,

and at the right price

‒ E-commerce remains a crucial channel for Unilever. In 2018,

5% of the company’s turnover was generated through online.

In China, e-commerce accounts for over 20% of turnover

Customer Development


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‒ Unilever is building its business through online channels such

as Amazon, Taobao in China, online grocery websites, and

direct-to-consumer models deployed by Dollar Shave Club, T

and its prestige brand

• According to Unilever in 2018, its digital technology team has

made investments in AI, machine learning and voice related

technologies to deliver personalized and immersive experiences

to consumer platforms such as Recipedia and Cleanipedia

websites

• Unilever is driving digital through its R&D organization,

introducing new tools to increase speed, efficiency and quality of

its innovation processes

• Unilever is leveraging big data to bring products to market faster.

The company has launched 10 new brands in 2018. According to

the company, the launches were 40-50% quicker than they used

to be

‒ In November 2018, the company introduced Purifi in China, which claims to protect the skin from pollution. The brand was created entirely out of data and was co-created with Alibaba Group

‒ Unilever used the Chinese company’s e-commerce platform to get real-time feedback and consumer insights to design and develop the product. Within seven months, it was launched in Alibaba

Customer Development (continued…)


Innovation

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‒ In 2018, as part of its digital push, Unilever tested a new AI system to predict demand. A forecast that was 70% accurate under the old

method was 74% accurate by January 2019

o For instance, the company creates 40-45 billion pieces each year in India alone, so a small improvement can have a huge impact on the

company’s profitability

Product Market Time for idea to launch

Purifi Antipollution care, China 6 months

Love Beauty and Planet Personal care, U.S 12 months

Dove self-foaming wash Personal care, Russia 3 months

Day2 Dry-wash aerosol, U.K. 10 months

Frigo Chuches Ice cream, Spain 6 months

Maizena Savory pancake. Colombia 6 months

Recent data-led brands launched by Unilever

“We used to think in years, quarters, months. As soon as you start digitizing your company, you start thinking in quarters, months and weeks. Speed is of the utmost importance”

– Peter Ter Kulve, Chief Digital Officer (January 2019)


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• In June 2019, Unilever announced the introduction of a new internal online talent marketplace, FLEX Experiences

‒ It helps employees push the boundaries of their career by using AI-powered platform to identify personalized open opportunities across the

business in real-time

‒ By accessing the platform, Unilever employees can work on projects for a small or large proportion of time, increase the depth of their

expertise of a current skill or build new skills and experience

‒ The technology is powered by Israel-based startup, InnerMobility by Gloat, which has worked closely with Unilever to create the bespoke

platform

‒ Over the past year the platform has been trialed with more than 20,000 employees within Unilever, across 90+ countries, unlocking 60,000+

hours in the last two months alone, and driving increased employee engagement and satisfaction

• By January 2019, Unilever had employed close to 1,250 people who specialize in digital technology and had plans to hire another 10,000 over

the next two years

‒ The company has embarked on a massive training program to get current employees up to speed on digital skills, including 5,000 marketers;

5,000 planning staff; supply chain personnel; and those who work in factories, robotics and automation

Talent & Organization


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• To develop the capabilities, skills and leadership that support new

way of working, the company is investing in continuous ‘always-

on’ learning programs with a particular focus on digital

capabilities

‒ In 2018, Unilever launched new Standards of Leadership to

develop purpose-led and future-fit leaders

‒ Developed in collaboration with thought leaders and groups of

young and senior leaders, the new Standards recognize the

need for leaders to embrace both the inner and outer aspects

of leadership

• Unilever is making investment in connectivity, Internet of Things

(IoT), robotics, artificial intelligence (AI) and augmented reality to

connect its supply chain with partners and consumers

• Unilever has set up a control tower to provide visibility and

management control for its multiple transport movements across

Europe

‒ It is able to offer better customer service at lower cost and

with lower carbon emissions

Supply Chain

“If executed well, the digital transformation of Unilever will be a growth and margin expansion story. It is 70% about people, culture and ways of working, and only 30% about technology”

– Ter Kulve, Chief Digital Officer (January 2019)

‒ Its ‘outer game’ includes what leaders need to do to succeed;

and its ‘inner game’ is about their inner purpose which guides

behaviors and actions

Source: Company website and reports; Industry reporting; InfotechLead; Accenture

| 63


• Unilever leverages Real Time Visibility & Analytics, Process Automation & Robotics, No Touch S&OP & Planning and E2E Integration

Operation to improve its supply chain

E2E Digitized Operations

• For an E2E Digitized Operations, Unilever is leveraging:

‒ Digital Finance

‒ HR CD Process Digitization

‒ Master Data Management

‒ Product Data Management

‒ Technology & Cyber Security

Source: Company website and reports; Industry reporting; InfotechLead; Accenture

| 64

UnileverDigital Transformation – Key Vendors (1/2)

• Google Cloud has been crucial in supporting Unilever’s goal of

creating 1 billion one-to-one relationship with its consumers

through meaningful and relevant dialogue

‒ Using broad range of consumer data alongside Google Cloud

AI tools such as translation, visual analytics, and natural

language processing (NLP), Unilever has been able to generate

insights faster and gain deeper understanding of customer

needs

‒ Using Google Cloud’s Cloud Vision API, Unilever analyzed user-

generated content around the campaign hashtag and

Valentine’s Day. These insights were then used to create and

deploy six-second bumper ads daily during the campaign on

Instagram, Facebook and YouTube

‒ The company used Natural Language API to monitor online

comments about the campaign and ads. This then allowed

Unilever to fine-tune the message delivery of ads that

resonated most with their audience across those social

channels

‒ The campaign touched nearly 500 million people and

generated positive uplift in brand engagement and

consideration

Google Cloud

Source: Company website and reports; Industry reporting; Google

| 65

UnileverDigital Transformation – Key Vendors (2/2)

• Unilever shifted from a project-based approach to a platform strategy, supported by Microsoft technology and hands-on support:

‒ Azure, Microsoft’s cloud computing service, provides the architectural backbone for the company’s digital transformation

‒ Unilever is using IoT (Internet of Things) and intelligent edge services in the Azure IoT platform to enable its digital twin, which is a next-

generation digital model of a physical environment — a Unilever factory. The machines and equipment in the factory are connected so that

they can send a mass of data — everything from temperatures to production cycle times — into the model

‒ ln its mission to become data-insights driven, Unilever is using Power BI, a business analytics tool, to help employees access the data they

need. Employees can use Power BI to visualize data in whatever way works for them to solve the problem they’re facing, and it also allows

them to create their own reports, rather than relying on a technology team

‒ A big part of that interconnected system is finding ways to help people fix their own issues. One tool the company is using to achieve this is

Microsoft PowerApps, which allows employees to build custom apps themselves, without a developer

‒ Unilever also wanted to offer its people — nearly 155,000 employees worldwide — the tools to further connect with one another and share

lessons and ideas. Unilever uses Microsoft 365, a bundle of services that includes Windows 10, as well as productivity apps such as

SharePoint, Outlook, Word, PowerPoint and Excel, and collaboration and communication tools such as Teams and Yammer

Microsoft

Source: Company website and reports; Industry reporting; Microsoft

KEY EXECUTIVES

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UnileverKey Executives(1/4)

Chief Enterprise & Technology Officer

Steve McCrystal

• Responsible for all Global Business Service capabilities spanning Information Technology, Financial Operations, HR Services, Real Estate & Facilities and Supply Chain Services

Chief Executive Officer

Alan Jope

• Alan focuses on reinventing Unilever for a more connected, more digital, faster moving future. Before being appointed as CEO, Alan served as President of Unilever’s Personal Care business from 2014

Chief Financial Officer

Graeme Pitkethly

• Graeme joined Unilever in 2002 and was previously Executive Vice President and General Manager of the Unilever UK and Ireland business

Chief Digital and Growth Officer

Peter ter Kulve

• Across his 30 years at Unilever, he has led many teams across the business and around the world. From landing end-to-end digital transformation and ambitious Connected 4 Growth program and currently leads Unilever’s South Asian business


| 68


Global Chief Information Officer

Jane Moran

• Responsible for driving Unilever’s sustainability agenda through technology. Leads the global IT agenda within Unilever by driving strategy, implementation and support for internal and external business tech applications, platforms, networks and data centres

Digital Transformation Director

Sarah Laker

• Drives the marketing strategy and campaign of multiple global brands. From managing Unilever website to consulting brands on digital strategy, and supporting the launches of global reaching marketing campaigns

Global Analytics and Digital Insights Lead

Maija Hovila

• Leads Global Foods and Refreshments People Data Centre team utilising a variety of data sources, specialist tools, data science platform, AI and smart analysts

Global Head of Data & Analytics

Alex Owens

• Leads people data centres- social and business analytics, consumer engagement centres and accountable with IT and marketing for building and deploying CRM capability. Looks after consumer data governance, AI initiative for marketing & digital performance measurement and tracking


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EVP Digital Transformation

Rahul Welde

• Leads digital transformation for Unilever globally. The role covers digital strategy, execution, infrastructure and tools. Through a range if interventions across the triad of people, process and technology, the team is making digital presence more compelling and impactful

Global Director for Digital Transformation

Fikerte Woldegiorgis

• An experienced global marketer with a uniquely blended background of classical marketing, digital marketing and digital transformation. A passionate believer that creative excellence powered by data is the stuff incredible brands are made of

President Europe and President Global Foods & Refreshment

Hanneke Faber

• Responsible for Unilever European Region and for Foods & Refreshment business including brands like Knorr, Lipton, Magnum and Hellmann’s

Chief Marketing & Communication Officer

Keith Weed

• Responsible for the marketing, communications and sustainable business functions. As CMO, he led the development of Unilever’s brands with purpose, digital transformation in marketing and the creation of the Unilever Sustainable Living Plan


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Chief R&D Officer

Richard Slater

• Accountable for the development of R&D as a key growth driver for Unilever. This includes oversight of strategy and innovation across the 3 division and leadership of R&D capabilities; Safety & Environmental Assurance, Regulatory Affairs, Digital, Packaging and Operations

Global Director, Innovation Lab and Digital Accelerator, BPC Division

Jane Buck

• Jane is passionate about developing brands with purpose and meaning at its core, bringing technology and data into the heart of everything the company does

Global Innovation Director

Rachel Stanford

• Innovation marketing professional with 18+years od experience in FMCG globally, regionallyand locally across Home care, Personal care andFoods with functional expertise that spans R&D,Marketing Capability building

Global Ecommerce Director, BPC

Claire Hennah

• Digital experience working within entrepreneurial and creative B2B/B2C environments. Confident, self-motivated, innovative and commercially minded with strong record of producing creative & digital strategies that deliver significant return on investment across major platforms


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Unilever · •Unilever is one of the largest fast moving consumer goods (FMCG) companies with a...

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