 Hi, good evening everyone in the whole space of marketing more importantly marketing in the connected world You know, I feel very amused when people talk about digital marketing Yeah digital and marketing. It's not that digital is going to influence only marketing The entire connected world will be significantly influenced by the fourth industrial revolution So it's very important for us to take cognizance that marketing as one of the key functions and It's going to be certainly be impacted But all industries in the entire value chain would be impacted in a significant way as we go forward Now a decade ago not many years back just a decade ago No one owned a smartphone. Twitter was an English word. We didn't know the Facebook and we shop exclusively in real shops Yeah, that was the kind of context in which all of us grew up learning marketing Now that world has changed significantly and dramatically But we certainly believe that the change that we have seen in the past It will really be put to shame by change which is going to come in the future Now the important trends that are shaping India is of course Mobile in a very big way. The other important bit is Urbanization and the empowerment of the rural consumers in India unlike China Urbanization has yet to take place We are still talking about 67% of our countrymen living in rural areas But these consumers would be empowered like we have never seen before The other is the power of vernacular content When Google started its vernacular services, the search spiked up by 60% in the very first week That's the kind of power of vernacular and of course the other is how voice is going to change the world and The role that influences play in making consumers pick up the choice Now the future of industry is Already here But the key aspect is that what technology exists today will get reshaped tomorrow And what was best in class or a next-gen practice? Last year has already become outdated today That's the shape of the change that is taking place across our world Now for decades, I come from a fast-moving consumer goods background And an FMCG over the years the business model was built around scale Scale in manufacturing scale in distribution Scale in advertising you have the scale you get better purchasing power Branding was of course key to the consumer choice Then we had a massive distribution setup and then you leverage cloud to drive down your costs Now if we look at the classical business model that we had You would go and do consumer research in a very traditional way knock on the doors Try to find out the unmet needs Come back make prototypes get them tested again through a classical market research Then you would give it for factory trials Then you would once having manufactured it then you would have the massive distribution machinery Then we would have the classical thirty second TV C's Then you would spray and pray that hope you hit the audience and that is how the value got created If we look at it today Technology is going to reshape every aspect of it the classical market research that is becoming possible today In our people data center we monitor conversations happening across the world on all our brands 24 by 7 so we know the trends that are shaping Yeah, today in our PRM we have consumers call us 10,000 times a day And they don't talk about Yeah, I've made it risk making promotion key. Yeah, maybe the car may name right They talk more about that I have a wedding in the family. What kind of hairdo should I have? Yeah, my I'm going out with my friends. What is the kind of makeup? I need to have this is the kind of skin I have so what kind of cream I need to use so they are conversing with us When you have a PRM base like we do and the PDC that we have and then you are able to convert voice into text You don't need a classical market research to find out trends When we develop prototypes today We don't need to do real prototypes because we do all the simulation on computers Even the trial runs on the plants that we used to do earlier. We simulate it on computers today There was a time when market makes modeling of seeing which of the levers you need to play in the market Would take you months to come out with the results Today, we have got Bayesian network where it is done on an iterative basis and you play around going beyond regression and looking at different levers and the simultaneous play in the market Now think of a context in our business Where we have thousands of SK use where we reach millions of outlets But in any given outlet, you will find 150 to 200 SK use of Hindustan Unilever The critical aspect is In an outlet out of the thousands of SK use, which of those hundred fifty two hundred SK use are the most relevant for that Outlet today technology allows you to customize your offering to each outlet a Grocery on Pedder Road will have a completely different assortment based compared to say a grocery in thaisar That's what again technology allows you to do So the entire business model of FMCG is up for grabs and whoever can reinvent it Will be able to get a lion's share of the profit that would come out of the new business model Consumer journeys, but that was a very simple life Yeah, you watch that either on the print or on the hoarding or on the commercial Yeah, you talk to a few of your friends go to the store pick up your brand and you're home Today consumer journeys have become extremely complicated and that is where you need to get a deeper Understanding of what you need to do where you need to do how you intervene in the consumer journey to make a Difference to your brands and to convert the consumers from intent to purchase The three ABCs that are she reshaping marketing and changing the way are of course Machine learning and artificial intelligence the big data and analytics and of course in a very big way It is the content Now underpinning all this is data In Hindustan Unilever I've got a chief data officer who now sits on my top table and That is for the simple reason we have massive amount of data both online and offline data and It is all about Storing data it is all about ensuring the safety of data It is all about using data in the most meaningful way It is no longer about the raw data, but increasingly it is becoming intelligent data that you put forth to use Now we have got profiles of nearly 150 million consumers and Based on 150 million consumers you can easily group them into cohorts and Mimic the entire population in a very big way That's where the challenge exists as to where in their shopper journey. Can you intervene with the right kind of content? So data becomes the most important ingredient in this entire digital Landscape and that is the reason people talk about data being the new oil in Hindustan Unilever we have a framework called the feisty framework At the heart of this feisty framework the consumers will always be there Yeah, irrespective of Whether you're online or offline Whether it is a connected world or an offline world At the end of the day you are looking at the needs wants and desires of a consumer and doing your best to meet them That's what a job is that's how we create value for the consumer and that's how we create value for ourselves The other big four C's are of course content connect. Yeah, that's so important in the new world and When we look at from the lens of connect it is not just connecting it In the traditional way that we are talking about but also things like geo tagging That's when you're able to influence the consumers in a very big way. The other is the community Community becomes so important, especially when you talk about purposeful brands. It's only when and you know the Classical stories about marketing are when they can be co-created together with your consumers That is when it really becomes a very telling effect and makes a huge impact on the business The other of course is the commerce Commerce is something which I would believe you would have been discussing throughout the day in India still Commerce is a very small part of the total FMCG landscape though galloping at a very fast pace Even globally it is about six seven person It may be six seven person, but the impact of the five C's goes beyond the online to the offline as well Consumers are a true north. That's what we talk about from triggers influences to actions And the important bit is that in your quest towards technology If you lose the sense of consumers, then you miss the game altogether Yeah, what? technology allows us to do is Rather than treating and going in a classical mass marketing way It allows you to do precision marketing or it allows you to do massive customization That's what technology allows you to do The other is content that consumers love as Hindustan Unilever we want to be the Wikipedia of personal care That's a very clear stated intent if there is any question that a consumer has on Personal care it should be answered by one of our brands and that's what we are working towards You know when we have a lack my fashion week During a classical days a few hundred people would attend the lack my fashion week Then we would make TV program out of it But today when we run the lack my fashion week and we set up the command center a Girl sitting in Gorakhpur can relate to lack my fashion week as if she was sitting and watching the lack my fashion She can engage with the brands with the same passion as a woman sitting and watching the fashion show That's what again technology allows you to do Now content has to be delivered across delivery channels different channels. Now. This is a great example of life Now this happened when we had the crisis of the South African team Yeah, when they were tampering with the ball Now within a few hours life I came out with that rub your hands clean with this and not with the ball Yeah, now that is contextual content That is where you make a difference a Couple of years back. We had that classic one of women This was when an e-commerce company instead of delivering a Smartphone delivered a bar of Wim dishwash The consumer raved and ranted on the social media Before the e-commerce company could react We had picked up a smartphone and delivered it to the consumer. Yeah, now that is where content plays So it plays such a big part in HUL. We have created what we call as the you studio That's the Unilever studio So we don't have to go outside to create meaningful content. We have started creating it ourselves because today the time lag between when you need to Put the content up for the consumers has become very small It is has become nanoseconds if you don't react with speed. You'll miss the boat Now when we look at commerce Commerce is not just about selling a product It is the entire experience that the consumer goes through That is how it becomes very fulfilling that is where you see that you get start to converting from intent to purchase If you're just looking at a transactional Then it is short lived then you're not developing a relationship with your consumers When you provide an experience that is where the relationship gets strengthened with the consumer This was an axe example that we did we launched a axe ticket recently and we did it with with a movie ticket buyers on patreon and That was an amazing success Reaching out to lakhs of people in a very meaningful way But it is not just about the transaction you have to build on that relationship Which you have done and follow it through if you have to convert him into a regular consumer Now this is what we did is like I was talking about when we talk about connect It is not just with a television or it is not just with your Devices And giving the same kind of mobile television add on the mobile This was geo tagging that whoever was within the vicinity of a magnum freezer Would get an ad to come and try out the magnum ice cream Yeah, now this will become a way of life. This is a way of personalizing it this is the way of targeting it with precision and You know again when we had this the last 26th Jan the big day for the The big Bazaar and that it was a time when for a certain brand of ours We had look at a living standard measure and we had said which is the locality where the chance of conversion is the maximum We have geo tagged it and in those markets the running rate went up by about 70 percent Because you have identified who precisely your target is and then you are able to customize your approach to them Rather than reaching out to all the population and then hoping that someone will succeed in buying your products Community becomes so important Especially when you talk about purposeful brands Yeah, when they start talking about your brands when they start talking about Conversing that is where you are building brand loyalties and today what you're trying to do is build relationship with the consumers What technology allows you to do is build relationships when we talk about 160 million consumers whose profile we have we are not just looking at the width of data We're looking at the depth of data Every day we are asking ourselves. How do we enrich and get more about the consumers so that we can Help them in their journey in a far better manner. That's what we seek to do on a daily basis Now marketing in the new age is all about the right message at the right time in the right place to the right person Yeah, now, this is something which you may say was even there before marketing in a connected world invented on us But I think the difference is today technology allows you to do earlier. This was just about a wishful thinking That's the big change that has happened Now personalization clearly stems from a belief that each individual is distinct Each one has his own quirks Each one has his own distinct needs and desires and if you can customize your message to him At the point when his most receptive to read that is when you would have the biggest impact on the consumer while talking about The marketing in a connected world. There are some things which don't change First is the art of storytelling Yeah Marketing is a lot of not just about functional needs But it is about Traversing the emotional space in the consumers mind That's what it does and the best way to do it is in a way. You can communicate the story to the consumers So that you not only tell him about your functional needs, but you tell him how In the emotional space you can occupy that space and make a meaningful difference to him Now if you look at some of the great ads of today You will see branding done in a very subtle manner Because you don't need to talk about it. Yeah, if we talk about say I'll pick up few examples from my stable If you pick up a brand like Brookborn Brookborn is all about togetherness Yeah, when Thomas Brooke Came out with the brand Brookborn more than 100 years ago. It was still founded on the essence of togetherness Even 100 years later. It is all about swadapne panka If you see the kind of communication we had whether it was the Hindu Muslim whether it was the live-in Relationship whether it is the transgender band This is all about that over a great cup of tea you come together and break barriers That's what about Brookborn advertising communication is about Similarly, if you look at our dirt is good of surf excel You don't need to talk about What necessarily a surf excel does because consumers know it but the message that you're trying to communicate to the mothers is Let your kid blossom Let your kid go and play if he doesn't get dirty. He won't grow up But remember there is surf excel to take care of the stains if he gets dirty That's what dirt is good is all about So the fundamentals remain very consistent though the way of communicating has undergone a dramatic shift The other big thing is the purpose We certainly believe that the brands with purpose are able to impact the society in a meaningful manner and Very importantly, they're able to reduce the environmental footprint today the consumers are getting increasingly conscious about Where the brand comes from does it come from a tickle company? Does it have a purpose bigger than meeting the functional needs? And if it does that the consumer is willing to pay you more money for that We did a study to find out that brands with a purpose Are the consumers willing to pay more money for that and the overwhelming evidence we got the answer was yes Of course, there is a difference between Communicating that yes We want to pay for more for it and opening up your purse and paying for it But the very idea that they are willing to pay more will sooner or later get converted into The real life where they'll be willing to pay more for those brands Now marketing like I said is undergoing a big shift it is not just the marketing It is the entire business in a connected world our philosophy of five C's The center is still the consumer Then comes the connect the content the commerce in the community Conventional marketing mass marketing will give way to mass customization or increasingly precision marketing Brands with purpose grow faster and companies with purpose are valued higher Yeah