Unilever and Sustainability

The Case for the 1 Billion People

Handwashing with soap

Dr. Myriam Sidibe, Dr PH

Santo Domingo, January 2012

AGENDA

1. Lifebuoy strategy and how it fits into sustainability plans

2. Consumption building program – Business case

– Achievements

– Challenges

3. Solutions to scaling up

About Unilever

• Over 163,000 employees in nearly 100 countries

• Products sold in over 170 countries

• $60 billion in global turnover

• 400 brands spanning the Foods and Home & Personal Care

categories

• Unilever products touch the lives of over 2 billion people every

day

About Lifebuoy (500 Million Euros brand)

Lifebuoy is available in more than 55 countries globally

Lifebuoy global presence

Existing geographies

New geographies

Possible roll outs

For Lifebuoy:

Lifebuoy is a brand with a social purpose …creating business opportunity by addressing unmet social needs

Invented 1894

Affordable Hygiene to combat Cholera

outbreak in Victorian England

“To make cleanliness common place; to lessen work for women;

to foster health and contribute to personal attractiveness, that life

may be more enjoyable and rewarding, for the people who use

our products”

William Hesketh Lever, 1890

LIFEBUOY GROWTH STRATEGY

160mio€

125mio€

Double size of brand from 500mio€ to 1billion€ by 2015

Market Development (consumption) continues to play a key role

125mio€

90mio€

Build

unbeatable

relevance &

authority on

core

Own

Advanced

Hand

Hygiene

Lead Mkt Dev

through

USLP 1billion

mission

Win in big

new D&E

markets

Billion People

HELP

1 BILLION PEOPLE IMPROVE

THEIR HEALTH

& WELL-BEING

HEALTH &

HYGIENE NUTRITION

Lifebuoy is key to delivering our Health & Wellbeing target:

Reduce Diarrhoeal and respiratory disease By 2015 our Lifebuoy brand aims to change the behaviour

of 1 billion consumers across Asia, Africa and Latin America by

promoting the benefits of hand washing with soap at key times

FILM

Achieving 1 Billion Target

700 Million Urban

300 Million Rural Population

in South Asia, South East Asia, Africa and Latin America

THE BUSINESS CASE

2,044 g a year

365 days = = X

* Assuming 100g bars, 2,044g per capita per year = 20.44 bars per year

5.6g 20

bars

Ideal habit: At least 5 soap occasions per day

Before 3 meals, after toilet + 1 daily bath

Big gap between actual vs. recommended hand washing frequency

Big opportunity to increase soap consumption and improve health

Ideal consumption = at least 20bars

MOST PEOPLE USE A LOT LESS

20

13

7-8

2

5

Sri Lanka Indonesia

India

South Africa

Pakistan

Bangladesh Vietnam

1.5 Billion people consume

8 or less bars per year

iTO opportunity + 900 mEuros

BEHAVIOUR CHANGE JOURNEY

Program design based on learning's from 18mth Mumbai Clinical study

Mumbai Clinical :

Soap consumption per person per day

0

1

2

3

4

5

6

7

Intervention Control Intervention Control

13 weeks 41 weeks

Gra

ms p

er

day

Intervention

TVC 3+

1 Direct Contact

LIFEBUOY BEHAVIOUR CHANGE PROGRAM

TARGET AUDIENCE: School children aged 6 to 12 years and their mothers from LSM 2 to 6

MARKETING OBJECTIVE: Increase in soap consumption in target population by 20%

COMMUNICATION OBJECTIVES: Raise awareness of the Lifebuoy Way (5 occasions)

Improve Lifebuoy’s expertise brand equity scores

c

PR

PARTNERSHIPS

DIGITAL

Countries implementing Vietnam Pakistan

Bangladesh Malaysia

Kenya India

Indonesia

MASS MEDIA EXAMPLES

Kerala, India

Vietnam

Indonesia

Pakistan

Play TVC Vietnam

STATUS SUMMARY

8 countries implementing program – Celebrities enrolled

– Partnerships established to deliver schools program on-the-ground

Strong results

– Delivering on Marketing & Communication objectives

e.g. +11% consumption increase in Vietnam

e.g. +100bps for Conviction in Pakistan

Driving awareness of 5 key occasions & strengthening brand equity

Next steps – Maintain strong TV support

– Find ways to scale up interventions to drive commitment, reinforce &

reward behaviour

SCALING UP: 3 SOLUTIONS

Unbranded activity

- e.g. HWWS

part of national curriculum

Achieving the 1 billion

Lower cost &

optimise

mix of

branded activity

Partnerships to

share cost

SHOW FILM

LOWER COSTS

Cut Isyana Just joined Lifebuoy 21 days program

Website

MAKE BETTER USE OF DIGITAL

Berbagi Sehat My kid now always washing hand after toilet!yeay!#proud mom

Twitter & Facebook

Brazil viral

campaign

SCALING UP: 3 BIG OPPORTUNITIES

Unbranded activity

- e.g. HWWS

part of national curriculum

Achieving the 1 billion

Lower cost &

optimise

mix for

branded activity

Partnerships to

share cost

PARTNERSHIPS TO SHARE COST

Partner with organisations who share our aims & can share costs

Move to 50:50 shared investment model:

50% Lifebuoy + Unilever Central funds; 50% Partner 50%

50:50 co investment is minimum acceptable to attract partners

Existing models:

Kenya: WSUP: 50:50 co-investment in Schools Program

USAID/WSUP: fund raising

CONFIRMED FUNDING TO DATE

Countries Extra Funding and Partners in line

Bangladesh 110k€ WSUP

600k€ Project Laser Beam

Kenya 110k€ for school of 5

Zambia

120k€ for school of 5

Pakistan

Deployment by ITA (largest NGO)

Vietnam Deployment by Ministry of Education

PARTNERSHIPS: NEXT STEPS

Fast track proposals with most positive partners : CIFF, WSUP via DFID & SNV, USAID, Gates

Develop partnerships with UL Foundation partners: PSI, Save the Children

Scope out potential to partner with Government of India

PROPOSAL FOR €25 MILLION OVER FOUR YEARS

Lifebuoy investment:

Lifebuoy invests €25m to reach

urban population via mass media

& schools program

Focus countries: India, Indonesia, Bangladesh, Pakistan, Kenya, and Nigeria

CIFF investment:

CIFF invests €25m to reach rural

population & fund evaluation

Reach

Achieves mass TV awareness

60 million urban direct contacts.

300 million with multiplier effect

Reach 40 million rural direct contacts.

200 million with multiplier effect

Contribution to Lifebuoy 1 billion goal

500 million (half our target)

SCALING UP: 3 BIG OPPORTUNITIES

Unbranded activity

- e.g. HWWS

part of national curriculum

Achieving the 1 billion

Lower cost &

optimise

mix for

branded activity

Partnerships to

share cost

UNBRANDED ACTIVITY

Lobby for HWWS

To raise profile & priority

To ‘institutionalise’ HWWS

Part of Schools curriculum

Part of healthcare interventions

Lessons learned so far

Building consumption takes time to be able to see a real

business benefit so you need to embed it within a longer

time frame in the business with clear deliverables but clear

commitment too

We need to work with partners that are interested in scale

and co-investment approaches

We don’t have one single approach to all, it needs to be

targeted but still at scale

Country Under-5

mortality

rate

Distribution of causes of

death among children

aged < 5 years (%)

Number of under-5 deaths

preventable by HWWS

Diarrhoea Pneumonia Diarrhoea Pneumonia

Brazil 21 3 6 860 842

Colombia 19 4 12 320 469

Costa Rica 11 1 3 5 7

Ecuador 20 6 17 197 274

El

Salvador

15 4 14 38 64

Nicaragua 22 9 20 169 184

Panama 16 6 13 56 60

Venezuela 15 6 6 282 138

Latin America: Relevance of HWWS