Unilever cuts marketing jobs and product range

Unilever cuts marketing jobs and product range

British-Dutch Unilever will continue its rationalization as it seeks to reduce its product references by another 30 %. On top of that, more than 800 marketing jobs will be cut in an attempt to save an additional 500 million euro.

Sizeable reduction of its array of products

Unilever has been streamlining for quite a while: with 1,600 brands in 2000, it only has 400 at this point. Unilever wants to focus its attention on several main brands, like Dove and Magnum.

 

Another way of cutting costs is reducing the number of products per brand, meaning a number of formats and flavours will disappear. This would not only mean a reduction in production costs, but also in marketing costs. 

 

Marketing takes a pounding

Partly as a result of a more simplified product range, Unilever also wants to lower the costs in its marketing department. 12 % of the jobs will be cut, meaning a loss of 800 jobs. At this moment in time, Unilever employs some 7,000 marketing people.

 

The concern also wants to lower the cost of its commercials, which will result in agencies having to content themselves with a lower fee. In 2010, the fee was 32 % of a promotional campaign, 24 % this year and the goal is to get to 20 %. Unilever will increase its focus on digital promotions and adverts: 15 % of the budget currently is for this type of advert, with merely 12 % in 2011.

 

With the new cost-saving plan, Unilever want to “align itself to altered market situations” as especially emerging markets are growing slower than expected. Unilever currently gets half of its turnover out of nations like China and India.

 

 

(Translated by Gary Peeters)

Questions or comments? Please feel free to contact the editors


Facebook launches its Marketplace in Europe

16/08/2017

In October 2016, Facebook launched a marketplace for used items in several countries, including the United Kingdom and the United States. That marketplace is now also coming to Belgium, the Netherlands and fifteen other European countries.

AS Adventure acquires German McTrek

14/08/2017

Belgian outdoor chain AS Adventure has acquired its German competitor McTrek. The acquisition opens up the largest European outdoor market for the Belgians, thanks to McTrek’s 39 stores and web shop.

American department store chains continue to struggle

11/08/2017

Several American department store chains continue to underperform. Both Macy’s and Kohl’s experienced turnover slumps compared to the previous year, even though they both managed to beat analysts’ expectations.

Amazon wants to compete with Ticketmaster

11/08/2017

Amazon is in talks with American event location owners to see whether it could sell tickets for their events on its web shop.

Record turnover for Henkel

10/08/2017

German Henkel has had a record second quarter, when turnover reached nearly 5.1 billion euro. For the first time ever, its six-month turnover surpassed the 10 billion euro milestone, thanks to its acquisition of laundry detergent company Sun.

Lion Capital once again wants to sell Hema

08/08/2017

Lion Capital has approached business bank Credit Suisse to look into “strategic options” for Hema, which basically means it has to find an interested buyer for the Dutch store chain.

Back to top