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 – – – 3. Business case Achievements Challenges 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 global presence For Lifebuoy: Existing geographies New geographies Possible roll outs Lifebuoy is available in more than 55 countries globally Lifebuoy is a brand with a social purpose …creating business opportunity by addressing unmet social needs 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 Invented 1894 LIFEBUOY GROWTH STRATEGY Double size of brand from 500mio€ to 1billion€ by 2015 Market Development (consumption) continues to play a key role 160mio€ Build unbeatable relevance & authority on core 125mio€ Own Advanced Hand Hygiene 125mio€ Lead Mkt Dev through USLP 1billion mission 90mio€ 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 Big gap between actual vs. recommended hand washing frequency Big opportunity to increase soap consumption and improve health Ideal habit: At least 5 soap occasions per day Before 3 meals, after toilet + 1 daily bath 5.6g X 365 days = 2,044 g= 20 a year bars Ideal consumption = at least 20bars * Assuming 100g bars, 2,044g per capita per year = 20.44 bars per year MOST PEOPLE USE A LOT LESS 20 1.5 Billion people consume 8 or less bars per year 13 iTO opportunity + 900 mEuros 7-8 5 2 Sri Lanka Indonesia Pakistan India Bangladesh South Africa Vietnam BEHAVIOUR CHANGE JOURNEY Program design based on learning's from 18mth Mumbai Clinical study Mumbai Clinical : Soap consumption per person per day Intervention TVC 3+ 1 Direct Contact 7 Grams per day 6 5 4 3 2 1 0 Intervention 13 weeks Control Intervention 41 weeks Control 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 DIGITAL c PR PARTNERSHIPS Countries implementing Vietnam Pakistan Bangladesh Malaysia Kenya India Indonesia MASS MEDIA EXAMPLES Indonesia Pakistan Kerala, India Vietnam 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 Lower cost & optimise mix of branded activity Partnerships to share cost Achieving the 1 billion Unbranded activity - e.g. HWWS part of national curriculum LOWER COSTS SHOW FILM MAKE BETTER USE OF DIGITAL Brazil viral campaign Website Cut Isyana Just joined Lifebuoy 21 days program Twitter & Facebook Berbagi Sehat My kid now always washing hand after toilet!yeay!#proud mom SCALING UP: 3 BIG OPPORTUNITIES Lower cost & optimise mix for branded activity Partnerships to share cost Achieving the 1 billion Unbranded activity - e.g. HWWS part of national curriculum 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 : Develop partnerships with UL Foundation partners: CIFF, WSUP via DFID & SNV, USAID, Gates PSI, Save the Children Scope out potential to partner with Government of India PROPOSAL FOR €25 MILLION OVER FOUR YEARS Focus countries: India, Indonesia, Bangladesh, Pakistan, Kenya, and Nigeria Lifebuoy investment: CIFF investment: Lifebuoy invests €25m to reach urban population via mass media & schools program 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 Lower cost & optimise mix for branded activity Partnerships to share cost Achieving the 1 billion Unbranded activity - e.g. HWWS part of national curriculum 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 Latin America: Relevance of HWWS Country Distribution of causes of Number of under-5 deaths Under-5 death among children preventable by HWWS mortality aged < 5 years (%) rate 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
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