Building Marketing Capability

Simon Clift Chief Marketing Officer

Safe harbour statement

This presentation may contain forward-looking statements, including forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Further details of potential risks and uncertainties affecting the Group are described in the Groups filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this presentation.

One core competence

Superior branded selling propositions

Personal Care growing at 6% +

Global habits, global competitors

Development of Deo global model

1994-95
Regional Centres
Global Network Established

1996

1997-98

1999

2000

Global economies of excellence, speed & scale

Starting to work together

Cross-regional Projects

Global Projects Full Global Working

Different global habits

Leveraging experience from Personal Care

Brilliantly differentiated

NEW FRAGRANCE

TV

Commission a TRACK

Axe Pulse
Release TRACK across Europe

goes where our target goes

PRINT

DIGITAL PR EVENTS

POS

Dove Pro-Age 360 PR Coverage Oprah

Family Goodness Brand

Family Goodness Brand Mission

To nourish children to reach their full potential.

Rama Idea!
Rama Idea! is the first margarine that contains important nutrients that support mental development!
Product: Low fat (39%) spread Rich source of selected brain nutrients (DHA, ALA, B-vits) Packaging One design for the world

Universal insights

No te abandona Nao te abandona Ne vous laisse pas tomber Lasst Dich nicht im stich Nigdy ci nie zawiedzie Setia Setiap Saat

Setia Sepanjang Hari

Daar kun je op vertrouwen

Japan Gets the Axe Effect 2007

The Global / Local challenge

judging the balance

Global
global brand = global bland?

Local

Domestos from Europe to India

Europe India

INTEGRATED BRAND COMMUNICATION

Unilevers 360 degree marketing programme

INTEGRATED around a single idea Encompasses ALL touch points Exploitation of the idea across the most APPROPRIATE channels, phased, to meet OBJECTIVES Planned in TALKABILITY

UNILEVER

IBC: Television is no longer enough eg Sunsilk Malaysia

10 opening bumper

45 opening followed by solution to last weeks dilemma

10 closing bumper

5 minute episode

30 Predicament with SMS callto-action segment

30 SunSilk spot

30 station spot

Illyanas Dreams
A prime-time TV drama featuring Sunsilk character Illyana SMS competition: What should Illyana do?

UNILEVER

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ILLYANA ON MOBILE
4. Illyanas Wap Site 1. SMS Contest

2. Mobile Downloads

3. Illyanas diary on SMS

RM0.50/SMS. Yana slalu terfkir Kak Ju yg keje srg kat kafe. Yg plg rindu - nasi lemak! Gembira sgt blk KL. Im hm at last! Siapa nak belikan sy nasi lemak?!

UNILEVER

ILLYANA ON-LINE

UNILEVER

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ILLYANAS BLOG
Illyanas WAPSite Illyanas Diary
July 6th, 2006 Lama Yana X update blog. Tulah, bila kat Aust sbuk sgt, pegi sini sana. Tiap2 hari ada benda nak buat. Shopping mmg best! got sumthin 4 evry1.. Harap2 mrk sk. Tp klau dorang x suka, Yana bole simpan je. Catch Illyana on TV3@3pm on 28 Aug 06 Tinggal sama mama lain rasanya.. mmg seronok klau hol, tp its nt hme! Yana slalu terfikir Kak Ju yg keje srg kat kafe. Yana rindu Kak Ju & Kak Faz &Fasha& Yg paling Yana rindunasi lemakcari2 pun x dptx kan nk mkn vegemite tiap pagi! Yana gembira sgt balik KL.Im home at last! Siapa nak belikan saya nasi lemak?! Read past entries (Price: RM0.50/per entry)

1
1. 2. 3. 4. 5. Illyanas Diary Mobile Downloads Past Episodes SMS Contest About Illyanas WAP site

Brought to you by Sunsilk & eBuzz

UNILEVER

PRINT COVERAGE

UNILEVER

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Measurable Marketing Objectives: Sunsilk strengthens leadership in shampoo to 24%

UNILEVER

Measurable Marketing Objectives:

Sunsilk becomes No 1 in Conditioner

UNILEVER

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as half the world dont yet use a deo

e.g. Asia is half the worlds population But only 7 out of 100 Asians use Deos
100% 90% 80% 70%

+ =

60% 50% 40% 30% 20% 10% 0% Deos 80 20 Oral 11 89 Hair 7 93 Soap 6 95

Non Users Users

3B Non-users 1.500 bn Euro OPPORTUNITY!

Its our market to grow

Russia Deodorant Market from 1999 164 148

139 105

168

mio

10

25

19 99

20 01

20 00

20 02

20 03

20 04

20 05

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Unilevers first global masstige innovation

Launched in: *China Sep06 *Thailand Oct 06 *Philippines Nov 06 *Indonesia Nov 06 *India Dec 06 *Vietnam Jan 07 *Taiwan Jan 07

Its time to believe in miracles

with leading edge formulation

has breakthrough CLA anti-aging technology

Age spots and wrinkles are reduced in just 7 days

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Rama/Blueband Idea! Launched in 14 countries in 5 months

2006 2007

Knorr fast roll-out

Dry Wet

CUBITOS From Latin America to a fast coordinated rollout throughout CEE and Africa (harmonised mix)

WET SOUPS (DOY PACK) From the Netherlands to a fast coordinated rollout to Western Europe under Knorr (harmonised mix)

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Marketing ROI
100 80

Source of Volume by Business Driver

180,000

60 40 20 0

Detailing
160,000

0.2 0.0 -0.2 -0.4 -0.6 -0.8

140,000

Samples Online

5.0

120,000

4.8 4.6 4.4 4.2 4.0

1200 1000 800 600 400 200 0

Sales

100,000

80,000

Meetings Events DTC Long Term Brand Equity Growth Base Competitor Advertising

60,000

40,000

1200 1000 800 600 400 200 0

1200 1000 800

20,000

-20,000 Sep-97

600

Jan-98

May-98

Sep-98

Jan-99

May-99

Sep-99

Jan-00

May-00

Sep-00

400 200 0

Marketing ROI: Measuring Effectiveness of Advertising Content

Ad Profile
Efficiency at getting the brands message across

(Illustrative Example)
Effectiveness of message Whether on strategy

3% 5% 15% Top 30% 50% Bottom 30% 15% 5% 3%

3% 5% 15% 30% 50% Bottom Main Point 30% 15% 5% 3% Top

Enjoyment

Engagement

Branding

Perceived Relevance Understanding

Persuasion

Brand Appeal

Brand Difference

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Marketing ROI: Key research and Planning / Buying tools

AIM
Budget Setting

MAC

Marketing ROI: Example of

Brand Quarterly Tracker
GMI-1 Internal Fin. Data AC Nielsen / World Panel

Millward Brown

AC Nielsen / IRI / GMI-1 Millward Brown CARAT

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Econometric Modeling Process

Response Curves 40 35 Incremental Sales 30 25 20 15 10 5

Spend In Channel

Data Collection

Build models that show how individual marketing and other drivers impacted sales
Optimal Spend 40 Incremental Sales 35 30 25 20 15 10 5
TV Brand TV Promo Outdoor Direct Mail Yellow pages Online Print

Establish historical marketing sales response curves

Current Spend 40 Incremental Sales 35 30 25 20 15 10 5

Spend In Channel

Spend In Channel

Run optimizers for ROI maximizing budget allocation

Report historical ROI

ROI of A&P spend: Summary

Input Metrics Content Development
- Qualitative Research - Preview Adprofile

Output Metrics

Operational (ongoing)

Innovation Quality
- Concept Product Tests - Simulated Test Markets

Launch

Dynamic Tracking
- Brand Image metrics with attribution of source

Market Mix Modelling

- Disaggregation of mix effects

Media Planning
- Advertising Investment Measure (AIM) - Marketing Activity Costing (MAC) -Minimum Investment Level (MIL) -Mindshare Industry Metrics - Accenture Benchmarks

Loop back to development process

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Marketing: an art as much as a science

infectious brand ideas

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