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Unilever Takes a Fresh Approach Under New Leadership

Fernando Fernandez discusses the new marketing strategy at Unilever.

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News Summary

Unilever is undergoing significant changes with the appointment of Fernando Fernandez as CEO. The company plans to cut 7,500 jobs for future growth while increasing its marketing investment, particularly in social media and influencer collaborations, indicating a major shift in their advertising strategy.

Unilever Takes a Fresh Approach Under New Leadership

Exciting changes are afoot at Unilever, one of the world’s leading consumer goods companies. With the recent appointment of Fernando Fernandez as the new CEO, Unilever is ready to shake things up! Fernandez, an esteemed leader who’s spent nearly four decades within the company, takes the reins after the resignation of Hein Schumacher in February 2025, who served less than two years in the role.

Significant Changes on the Horizon

Under Fernandez’s leadership, Unilever is not just making minor adjustments; this is a major overhaul. Recently, the company announced it would be cutting approximately 7,500 jobs to save around €800 million. While these changes may seem tough, they show a commitment to future growth and adaptability in an ever-evolving market.

Marketing Budget Empowerment

In an interview with Warren Ackerman from Barclays, Fernandez revealed some exciting news regarding Unilever’s advertising strategy. The company plans to boost their brand and marketing investment (BMI) from last year’s 13% to 15.5%. But that’s not all! The most surprising announcement was that Unilever will be shifting their media spending on social channels from approximately 30% to a whopping 50% of its total budget.

Emphasis on Influencer Partnerships

Adding to this transformation, Unilever plans to ramp up its collaborations with social media influencers by an incredible 20 times. The goal is to harness the power of social media to connect with consumers in a more personal and relatable manner. This will involve targeting key markets such as India and Latin America—two regions that are rapidly embracing social media.

Engaging with Influencers Everywhere

In India alone, Unilever has plans to engage influencers in all 19,000 zip codes, while in Brazil, they aim for connections in all 5,764 municipalities. It’s a bold move that reflects the growing importance of influencers in shaping consumer perceptions and behavior. Marketing analysts believe that if Unilever thrives with this strategy, it could significantly impact the social media landscape.

Industry Predictions and Insights

Currently, the average budget for influencer marketing stands at about 6%, according to Gartner’s CMO Spend Survey. However, if more major brands follow Unilever’s suit, we could see a dramatic increase in both competition and overall spending within the influencer marketing sphere. With industry experts keeping a close eye on this shift, many believe that the boosting of influencer collaborations could benefit marketing agencies, which have been traditionally spread thin across various accounts.

Challenges Ahead

While the increase in spending on social platforms seems promising, it doesn’t come without challenges. Particularly when it comes to measuring the impact of such investments, companies may find it hard to track return on investment (ROI) and attribution effectively. There’s also a concern that too much commercialism in influencer partnerships could lead to audience fatigue, as consumers can grow tired of constant advertising.

Evolving the Influencer Marketing Landscape

Previously, Unilever expressed skepticism regarding influencer marketing, especially around fraudulent practices. However, advancements in platforms and tools now allow for much more robust management of influencer campaigns, helping identify potential fraud effectively. A notable partnership to look out for is Alaska Airlines’ collaboration with influencer Jordan Howlett, which favors long-term engagements over short-term promotions, highlighting a maturity in the influencer marketing landscape.

Looking to the Future

As we look ahead, it’s clear that the marketing landscape is shifting dramatically. By 2025, it’s projected that U.S. marketers will spend around $10 billion on social media-sponsored content, marking a significant change in how brands approach advertising. Unilever’s dedication to targeting and aligning their campaigns effectively with audiences signifies that they are not just adapting to change—they’re leading it.

In closing, Unilever is committed to evolving its brand image and marketing strategies under its new leadership. This enthusiastic pivot towards a social-first approach evidently aligns with consumers who increasingly prioritize authenticity and connection in their dealings with brands. The road ahead for Unilever might be filled with challenges, but with a strategic, machine-like approach to content creation, they are ready to greet the future.