SANGAM : Transforming HUL’s Marketing Strategy in the Digital Age

This is an extract from Mr. Tejas Apte of Unilever keynote presentation at ad:tech India 

In the rapidly evolving landscape of digital marketing, Hindustan Unilever (HUL) is setting a new standard for innovation and efficiency. At the heart of this transformation is Sangam, an AI-driven media planning tool that has revolutionized the way HUL approaches advertising. By integrating AI, automation, and influencer marketing, HUL is not only adapting to the digital age but also reshaping it.

Transforming HUL’s Marketing Strategy

The introduction of Sangam has marked a significant turning point in HUL’s marketing strategy, enabling the company to achieve remarkable efficiency and personalization at scale. The key transformations it drove are : 

Streamlined Media Planning: Sangam has reduced the media planning turnaround time from 25 days to just 5 days. This dramatic improvement allows HUL to respond swiftly to market changes and tailor campaigns to India's diverse consumer base.

Enhanced Ad Spend Allocation: Sangam’s automated media buying capabilities have transformed how HUL allocates its advertising budget. A case in point for a premium brand of HUL ad spends it recommended TV have decreased from 60% to 39%, while digital video spends have increased from 20% to 29%, social media from 12% to 15%, and OTT platforms from 8% to 17%. 

The outputs of the tool reflect shift in HUL’s strategic focus on digital-first engagement, ensuring its brands remain relevant in the age of streaming and social media.

Inputs

The data inputs that SANGAM considered for its decision making are : 

• Category-Specific Data: With consumer preferences varying widely across product categories, HUL leverages category-specific insights to optimize media planning and engagement strategies.

• Consumer Behaviour Analytics: Levaeraged AI-powered tools analyse purchasing habits and engagement trends, enabling HUL to refine its media allocation and deliver more personalized campaigns.

• Media Consumption Trends: By understanding how audiences interact with different platforms—be it television, digital video, social media, or OTT—Sangam ensures strategic ad spend distribution.

• Influencer and Content Performance Metrics: Data-backed insights assist in selecting the most effective influencers, ensuring that marketing investments yield maximum impact.

• Market and Competitive Analysis: Real-time insights into industry trends and competitor strategies to help positioning HUL at the forefront of innovation.

Outcome 

Using the SANGAM planning tool drove the visible changes in the the execution of its transformative marketing strategy. 

Increased Digital Contribution: The platform has facilitated a substantial increase in HUL’s digital media contribution, which has grown by 2.5X over the past two years. Today, digital channels account for 45% of HUL’s total advertising expenditure, underscoring the company’s commitment to embracing digital transformation.

Hyper-Personalized Marketing: Sangam leverages AI-driven insights to create hyper-personalized marketing strategies. For example, TRESemmé uses AI tools like TY, a virtual salon assistant that provides real-time styling recommendations through conversational AI and advanced graphics. Such innovations allow HUL to engage with consumers on a deeper level, delivering tailored experiences that resonate with individual needs.

Integrated Campaigns: Operating on a fully integrated model, Sangam ensures seamless alignment between creative and media strategies across channels. This cohesive approach enhances campaign effectiveness and strengthens brand messaging across diverse platforms.

Conclusion

The transformation driven by Sangam highlights how AI and automation can redefine marketing strategies for large-scale businesses like Hindustan Unilever. By reducing planning time, shifting ad spend towards digital channels, enabling hyper-personalized engagement, and fostering integrated campaigns, Sangam has become a cornerstone of HUL’s marketing success in the digital age.

As Tejas Apte, Head of Media and Digital Marketing at HUL, aptly points out, tools like Sangam are essential for navigating India’s diversity while scaling personalization efficiently. This approach ensures that HUL remains at the forefront of innovation while addressing the unique needs of its vast consumer base.

HUL’s strategy serves as a blueprint for businesses seeking to thrive in an increasingly digital world—a testament to how embracing technology can drive meaningful transformation and sustained growth in today’s competitive marketplace.