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


Turnover for 100 largest web shops in Belgium grows 13.5 %

16/11/2017

Turnover for the top 100 web shops in Belgium grew 13.5 % from 3.7 to 4.2 billion euro. Digital sales for food items and household products have increased considerably.

Barbie rejects G.I. Joe & co (for now?)

16/11/2017

Toy giant Mattel has allegedly turned down competitor Hasbro’s bid, according to press agency Reuters’ anonymous sources close to the deal. It is still unclear what the repercussions would be.

Henkel increases full-year turnover forecast

15/11/2017

For the first time ever, Henkel will pass the fifteen billion euro turnover milestone for the first nine months of the year. The company will also increase its turnover and profit forecast on the back of these excellent performances.

Singles' Day alters the global retail calendar, even here

14/11/2017

Move aside Christmas turnover, Singles’ Day is the world’s largest shopping holiday – by far. Alibaba generated a 22 billion euro turnover in a single day and even Bol.com took advantage of the day. Are we heading to a new retail calendar?

Avoid long waiting lines at cash registers thanks to Google Maps?

13/11/2017

Google will add a new option to its Maps app on 23 November: users will then be able to assess how much time they will lose at the cash register.

This is how online retailers can beat Amazon Prime

13/11/2017

Market research firm SmarterHQ says Amazon’s bond with consumers is razor-thin and they would quickly abandon their subscription if the advantages proved to be too meagre. This should present opportunities to the competition.

Back to top