TOWARDS SUSTAINABLE GROWTH Perspectives on Dutch FMCG industry Thomas Grunzke, VP Finance, Unilever Benelux Rotterdam, 28th May 2013
AGENDA 1. UNILEVER BENELUX INTRO 2. THE CONTEXT FOR GROWTH
3. STRATEGIES FOR GROWTH 4. GROWTH THROUGH EXECUTION 5. A GROWTH MINDSET 6. SUMMARY
UNILEVER INTRO
UNILEVER GLOBALLY
Turnover: FMCG ranking: Geography:
51bn #3 190 countries
Employees: Consumer/day:
172,000 2bn
Brands > 1bn â‚Ź
Benelux Intro video
Benelux Intro video
UNILEVER IN THE BENELUX Personal Care picture
Foods
Home Care
Refreshment Key facts Turnover: Market share: Factories: R&D: People:
â‚Ź 1.6+bn 24% / 80% leading 4 Vlaardingen ~3,800
Personal Care
OUR BRANDS
THE CONTEXT FOR GROWTH
THE EXTERNAL PERSPECTIVE (1):
OUR MARKETS HAVE SLOWED DOWN consumenten vertrouwen
30
Value growth minus inflation
6 5
20
4
10
3
0
2
-10
1 0
-20
-1
-30
-2
-40
-3
-50
-4
14 12 10 8 6 4 2 0 -2 -4 -6
% Unemployment 8 33
1
9
9
8
8
6
4
3
10 10
3
0 -1 -4
-2
2
-3 -2
Purchase power
1
8 1
7 3
8
8
7
6
1
1
0 0
8
7 1
7 0
5
2
0
% Unemployment
4 0
1
7
5
4
4 34 1
7 3
0 -1
6
-2
2
5
4
0
5
5
5
6
2 0
-1
-2
THE EXTERNAL PERSPECTIVE (2):
PRIVATE LABEL / HARD DISCOUNT TO GROW FASTER 40% by 2016
THE INTERNAL PERSPECTIVE:
OUR VIRTUOUS CIRCLE OF GROWTH MODEL
GROWTH STRATEGIES
5 LEVERS FOR GROWTH
Innovation Market Development Pricing Pyramid Channel expansion
Sustainability
1
INNOVATION LED GROWTH
Product formulation
Packaging
Marketing
Generic bottle unbranded
e.g. - tastier / healthier - stronger performance - combined benefits
e.g. - more convenient - lighter - premiumization
e.g. - activation concept - integrated approach - purpose driven
EXAMPLES IN THE LOCAL MARKET Unox Soup in Pak
Calve Dressings
Axe Apollo
2
MARKET DEVELOPMENT LED GROWTH More users
More usage
More benefits
EXAMPLES IN THE LOCAL MARKET More users
More usage
Croma Liquid margarine
Ice Cream tubs
More benefits
Rexona MaxPro deo
3
PRICING PYRAMID LED GROWTH Super Premium Premium
Trend:
Mid Economy Super Economy
EXAMPLES IN THE LOCAL MARKET Ice Cream deserts pyramid premium
upper mass mass lower mass economy
Note: all consumer prices at sole discretion of the retailer
4
CHANNEL EXPANSION LED GROWTH E-commerce
HD / Budget chains
Out of Home
EXAMPLES IN THE LOCAL MARKET Sales@appie.nl
1 EURO offers
Magnum flagship store
5
SUSTAINABILITY LED GROWTH
EXAMPLES IN THE LOCAL MARKET Robijn K&K
Unox Beter Leven
Ben & Jerry’s Freezer
SOME GROWTH CHALLENGES: 1
PL/HD GROWTH
EXAMPLE: ICE CREAM COPYCATS Unilever
Lidl
SOME GROWTH CHALLENGES: 1
PL/HD GROWTH
2
PROMOTIONAL INTENSITY
3
SUSTAINABLE LIVING BEHAVIOUR
4
STRUCTURAL FACTORS
GROWTH THROUGH EXECUTION
“In FMCG, Execution is Strategy.”
Perfect Factory
Perfect Supply Chain
Perfect Shop
THE LAST METER MATTERS
OSA
Promotion Compliance
Shelf standard
WHAT GETS MEASURED GETS DONE
A GROWTH MINDSET
THE GLASS HALF FULL
STANDARDS OF LEADERSHIP
SUMMARY
SUMMARY OF THE SUMMARY:
FMCG economic context remains challenging
No single silver bullet for growth
Execution and mindset as important as winning strategies
THANK YOU