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8.2.2011 Unilever seeks quality ads

Unilever, the consumer goods giant, is focusing on innovation and producing high-quality advertising as a means of driving growth. The owner of Hellmann's and Ben & Jerry's posted an 11% increase in revenue last year to €44.3bn. Its strategy is based on the "Compass", with goals like doubling sales, adopting eco-friendly practices and modernising its portfolio, having purchased haircare specialist Alberto Culver and Sara Lee's personal care arm. "We have undoubtedly raised the bar on performance. The significant gaps to competitors that we faced a couple of years ago have been closed," Paul Polman, Unilever's ceo, said on a conference call.

The company's advertising and promotional spending reached €5.6bn in 2010, a €330m expansion on 2009 and €700m greater than 2008. "This is a key driver of our long-term success - investing in our brands, the lifeblood of the business," Polman asserted. In the second half, expenditure rose in developing economies and Western Europe, and the US saw a redirection of funds to "competitive pricing". "We have substantially increased our advertising spend over the last two years. But it is not just the quantity of investment behind our brands that is improved, quality is higher also," Polman said. "The metrics we use to assess the strength of our brand communication continue to trend steadily upwards." "We set out to launch fewer bigger innovations, to reach more markets more quickly and to improve product quality throughout our portfolio. All supported with higher levels of better quality advertising," said Polman. "So, a powerful combination of more advertising, which delivers key messages more effectively, and acts in support of better quality products."

B.L. 8.2.2011