Unilever 2015 Annual Report Download - page 17

ONSUMER INSIHT
SALES MARKETIN
OLLABORATION
UNILEVER BELIEVES PROFITABLE ROWTH
SHOULD ALSO BE RESPONSIBLE ROWTH
That approach les at the heart of our busness model, drven by sustanable lvng and the
Unlever Sustanable Lvng Plan (USLP) It gudes our approach to how we do busness and
how we meet the growng consumer demand for brands that act responsbly n a world of
fnte resources Our busness model begns wth consumer nsght that nforms brand
nnovaton, often wth partners n our supply chan, to create products we take to market
supported by marketng and advertsng across a range of dstrbuton channels
HOW WE DRIVE SUSTAINABLE VALUE
Unlever ams for a vrtuous crcle of growth wth the USLP at ts heart
It creates proftable volume growth drven by nvestment n nnovaton and
brands to delver products to 2 bllon people every day Our scale means
we can spread fxed costs and mprove proftablty
Socetes are dynamc
There wll be 236 bllon
mllennals (18 to 34 year-olds)
by 2025 wth dverse and very
dfferent preferences and
shoppng habts to other age
groups We not only need
nsght nto these trends,
through focus groups and
quanttatve studes, but also
the ablty to predct them usng
the latest dgtal research
technologes n order to mantan
our compettve advantage
We work closely wth retalers
to wn n the market place,
makng sure our brands are
always avalable and properly
dsplayed, n all channels from
supermarkets to e-commerce
We have acheved suppler
of choce status for 12% of
markets and are n the top three
supplers for 24% of markets
1-2
The addtonal spend on Unlever
products n an e-commerce shop
versus the equvalent basket n a
physcal store
We work wth governments,
NOs and other stakeholders
to drve change that’s good for
socety and good for busness,
and we work wth partners n
our supply chan, through our
Partner to Wn programme,
to create nnovatons n
products and packagng
69% of our nnovatons are
assocated wth suppler-
sourced technology, such as
from Sonoco whch provdes
reusable packagng for our
ountry rock brand n the US
We generate consumer-led
growth through a marketng
spend of about 8 bllon a year
We use multple platforms to
acheve cut-through n a hghly
fragmented meda Effectve
dgtal marketng s essental
and nfluences shoppng at all
stages of the decson-makng
process and through all
channels We partner wth many
dgtal start-ups through our
Unlever Foundry programme
to brng the most cuttng edge
marketng to Unlever brands
WE PARTNER
WITH USTOMERS
TO PIONEER NEW
PRODUTS AND
ONEPTS
236 bllon
mllennals by 2025
14 Unilever Annual Report and Accounts 2015Strategic Report
A BUSINESS MODEL THAT REATES VALUE