 All right, ladies and gentlemen, this is one session I truly want to see from the bottom of my heart He's not only the CEO and managing director of Hindustan Unilever limited He also leads Unilever's business in South Asia as the executive vice president And is currently the vice president of Bombay Chamber of Commerce and Industry and member of National Committees of CII and FICI Ladies and gentlemen, he's also our 2018 Indian Digital Marketing Awards grand cheery chair And he will be talking about the changing role of marketing and achieving business objectives Ladies and gentlemen, I said hot gun and personally look up to him so much Please a warmest round of applause for mr. Sanjeev Mehta You want me to start? Okay We've got a few minutes guys anyone wants to sing a song you're welcome Yeah, if you want to I can I can come to you you can sing a lovely song and You want me to? All right, why not man, but I need an audience for that. All right Anybody who's outside the ballroom I'd request you please come inside you hear that cunti bajoing that cunti is to tell you That coffee won't be served outside Snacks won't be served outside. Nothing is going to be served outside because Mr. Sanjeev Mehta is about to begin in the next two minutes from now in the meanwhile ladies and gentlemen Please come inside take your seats because it's not going to happen. It's not going to happen. You're taking my voice outside You're like my crusader. Can I have the doors open, please sir? Kulli Jay pretty I was barb watch it was a jayar CUNY right all right if you can hear me outside the ballroom We are about to begin Everything outside is shut two minutes to go for mr. Sanjeev Mehta to be talking about the changing role of marketing No tea coffee outside. What happens is only inside Okay, mr. Mehta before people come in I've got someone who wants to sing a song. It'll take us a minute more Come on. Let's do this wonderful mr. Mehta Let's give her a big round of open the doors, please and I can I request my lovely volunteers who are here? Just open the door we'll get people inside because this is a session. I really want to honestly since the morning I've been waiting for this session. So mr. Mehta What's your name lady? Stuti An Singh Stuti we'd like to dedicate it to mr. Mehta. You love music. You love singers You love great talent and everyone here as well. So here goes This is a song by Adele set five to the ring I let it fall as it fell you rose to claim it It was dark And I was over Until you kiss my lips my hands They were strong But my knees were far too weak To stand with that fall into your feet But there's a sigh to you that I know the things you say they will never true never true in the games You play you would always been always be lovely. Let's give her a big round of applause. Thank you I'm a fan of her sir. I know You know all of us are Adele just got very insecure like I got insecure of a Samir like that. So mr. Mehta Lights all right camera. Hi. Good evening everyone So I have about 15 20 minutes. I want to share some of my thoughts with you 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 has 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 percent 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 percent 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 on 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 30 second tbcs 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 passive 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 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 based 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 plans that we used to do earlier. We simulated 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 skus Where we reach millions of outlets But in any given outlet you will find 150 to 200 skus of Hindustan Unilever The critical aspect is In an outlet out of the thousands of skus which of those 150 200 skus 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 Dhaesar 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. Oh, 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 abc's that are reshipping 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 are 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 I 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 I'm 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 may fashion week During the classical days A few hundred people would attend the lack may fashion week Then we would make tv program out of it But today when we run the lack may fashion week and we set up the command center A girl sitting in gurukpur can relate to lack may fashion week as if she was sitting and watching the lack may fashion week 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 boy 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 boy 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 whim 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 Okay Yeah, now that is where content plays so it plays such a big part In hul we have created what we call as the u studio That's the uniliver 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 an axe ticket recently and we did it with With a movie ticket buyers on patreon And that was an amazing success Reaching out to lots 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 the television or it is not just with your devices And giving the same kind of mobile television ad 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 looked 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 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 A dwindled 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 he's 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 consumer's 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 a few examples from my stable if you pick up a brand like Brookborn Brookborn is all about togetherness Yeah, when Thomas Brook 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 swad apne 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 ethical 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're 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 All right. Do I have a few Minutes to take a few questions You want to ask a question? Hi new from business world. I thank you sir for a great presentation as always I wanted to get a sense of because of precision marketing and mass Customization this whole notion about 50% of the ad budget was wasted How much are we now saying have that 50% gone down? Do we know where it's wasted? No, no We are nowhere close to talking about high degree of Can you ask the entertainer to stop please? Yeah, we are nowhere talking about you know, it has taken us years To try to raise the efficiency and effectiveness of television spins Even now we keep learning The good bit is that with new technology It is also Significantly impacting the efficiency of our television spins as far as the digital space is concerned Or there is a long way to go before you can say that you are really getting the value for every dollar spin This science is evolving at a very fast pace But because I'm very confident that with more of data We will be able to get much better learnings out of how we have been spending the money Thank you, sir. Anybody else lift your hands up and I will be there Uh, sir. Okay. Come I'm Shashi Sena from Laksh media. Hi. I'm Smith. I met you sometimes back at Mumbai airport. My question is While digital is giving us lots of insight and lots of precision, etc Is it still delivering the numbers? That marketer a large marketer like you and many large marketers in a large Society country like India are looking at and are these numbers or data insights which are coming? Are they more symptomatic than comprehensive marketing tools? You know again now when people talk about that 100% of the spin should be moving to digital and all this is again. I find the question very amusing honestly Hamare Desh may 67 of the person of the people still look and still are in rural India. Yeah in our country Still wall painting Hordings are still very relevant So talking about that you move 100% of the spins to digital and all You are talking about an age where you would be seriously either not reaching those consumers Or you're not interested in those consumers. I think the important bit first to ask yourself is Who are my consumers? Who are my target consumers? And what is the most efficient way in reaching them? We have brought in a lot of science behind it. We still believe that for our mega brands Even today the most cost effective reach Up to about 30 35 person is still television It is only beyond that you supplement it With other mediums to improve the efficiency of your reach There could be niche brands where you could be living with Only digital But a company like Hindustan Unilever Where we reach 95% of the households in the country with one or more of my brands I can very safely tell you that television Print Hordings Wall paintings will still remain relevant for many years to come Though our incremental spins more are going into the new age marketing But that does not mean that we are going to pull the plug on the other mediums Our job is to reach the consumers in the most effective way So that's what we are doing. But what we are bringing in Amazing science which was not available earlier To digit to non-digital Like television like hoarding. We've now got a huge amount of science Into where we need to place our hoarding What hide how many days that hoarding should remain before it gets changed? So that's where we are bringing in the science All right two more questions to go Yes, sir Good evening, sir. Good evening. I have an entrepreneur in the food and beverages space So my question is specifically directed to that in the context of A lot of e-commerce Growth even though it is only 4% out of the entire commerce that is happening If we see a brand like a quality walls I mean my question is that sir Like do you see a potential or an opportunity for a startup in the future Where there is less of a physical presence for a product like a quality walls In terms of a physical retail store versus selling online. Do you see that happening or Is that a Distinct possibility at all, you know, where is the challenge today in e-commerce the biggest challenge in e-commerce today is the last mile delivery Yeah, unlike say air bnb or book my show Where you can go and get your ice cream Or go and get your ticket at the movie hall or make my trip where you don't need anything physical In our business, we can virtually give you ice cream Okay, you have to give you a magnum, you have to taste it So that's the critical difference We can create models Where the last mile cost is phenomenally high Yeah, then it will not be sustainable It will be great for a presentation. I can come here and tell the audience man I don't need the thousands of freezers that I've placed all over India Yeah, you can place it all and I'll have someone like swiggy come and deliver it to you and all But the cost will be so phenomenal. It will not make sense So because in the food service space right now about 15 to 20 percent of the sale Is online and swiggy is actually expecting it to be 40 to 50 percent in the next three years So in this context, uh, would you see a potential where a brand is not having a physical store? Of course the freezers will still be there, but it'll not have a physical store in the mall, but it'll be only Pickup or again, it depends on your ambition You can live with it. It's a niche If you have a brand like ours brands like ours, which are spread across The length and breadth of the country You know our intention is that we would like you to have magnum at arms reach of desire Jabbi man kia khalia And even if you're traveling somewhere Yeah, if you're going to Vaishnaw Devi, you should also have a magnum there You know Kerala, you should also have a magnum there in that case I don't see where we don't have freezers. So we have to be very realistic about your ambition And then come to a conclusion whether Is it feasible or not? If it's a very small brand you can play around with it. Thank you so much Yeah You know, he's got a brand called thick shake which grape is great milkshake. Sir. It's outside. You should try it out, sir And you know what ladies and gentlemen, he's so happy Asking mr. Mehta question. He's announced just now everybody here gets a free thick shake from him outside Round of applause for him ladies and gentlemen Not only that for a month for a month. Thank you brother for the love and you won't have to go to his store He will deliver it to you Sir, it's a known next show may be not come to get here. I got sir Brother said god bless you may you always have thick shake. I mean sell thick shake All right, anybody has last question for mr. Mehta. Who's kebaad? We're getting the awards anybody else at the back You look like a man who's had a lot of thick shake, sir Kado yes, sir. Can I come to you there? All right This lovely man. What a beautiful smile. You're smiling as we just got married today Yes, sir Sir, it was quite enlightening to hear you. I've heard you earlier also I wanted to ask you about retail business. Yeah, you see For every business consumer is always at the heart of the business What about retail if a retailer is not your consumer of your product? Then and also in the case when he's a part of your he's a consumer also and a retailer also How do you manage all that stuff because we didn't We will love both the retailers The one who is already my consumer or my customer? Of course, we will deepen our relationship with them But those who aren't storing h.u.l products I would love to go and understand from them. Ki yaar ab kyoni kartheo. These are some of the best brands in the country Yeah, our products are available today in about eight million stores across the country So agar koi aisi dukhaan hai jaan hamara product nahi rata. Ab mujhe bataye. Gaa mai jaunga. Un se milunga It's not about he not keeping your products actual product, but promoting Competitiveness product keeping your product as well. Achha You know first, I think we have to accept that business is not a zero sum game agar usne Or koi company ka brand grow karta that doesn't mean that I won't grow In a country like India there is a space for everyone to grow From my brands to the milkshake guy Everyone has immense opportunity to grow. Now we have to remember something. There's something called a push and something called a pull Why do many of the retailers By perforce store our brands Because they know that there'll be many consumers who will come and ask for tress may or lack may or lux or life boy Or Taj mail or surf excel Agar vo naik rakhe gaa he will lose his throughput Yeah, now when a retailer generally does a push when he gets a higher margin for it So our story to a retailer is key. I may not give you the highest margin on a product But you need to look at the total throughput Of hl that goes through your store and the total money that you make on a brand And then you should ask yourself. Is it worthwhile to store our brands or not? A retailer is a very sensible man He's a much smarter than you and me And he knows that when he's going to make money, he'll store our brands Yeah Gentlemen, so we call it here, sir. You're you're okay for one more All right. One more question Sir, where where are you sir money 25th question of the day, sir Quarter century Sanjay Banerjee Digital advertising tech. I have two questions One is you are saying that I mean Consumers are prepared to pay a higher price when they understand about the environmental and the impact in the society So this includes a rural area also See this is what we did was more of a urban survey and this we did it not just in India across the world And most of the places the overwhelming evidence was that consumers today Are increasingly interested in knowing the purpose behind the company and the brand I'll give you another anecdotal evidence When we every year I go to many of the IM's to talk to the potential students To the students who are our potential employees And the maximum number of questions that I get from them are on a sustainable living plan Because today's generation is far more conscious About what we are doing to the planet. What is our purpose? What is our values? What are our ethics? They're very conscious about that My second question Sir He he so many questions. So sir for four days. Thank you so much. Thank you. Mr. Mehta. You were talking about IIM's I have a humble request. I've been trying to get into the gate of IIM. They don't allow me, sir How do I get in sir? You tell me that that is very important. I want to click a picture there and show to my mother They're going to cool dude. Then they will let you in Absolutely without any problem. I love you, sir All right, mr. Mehta, we've got a gift for you which mr. Ulf will give you Please come in ladies and gentlemen for mr. Ulf and remember We are taking a 40 minute break after this Thank you Thank you mr. Mehta