Unilever Marketing Strategy 2024: A Case Study

Unilever, a global consumer goods company, has established an effective marketing strategy that focuses on trust, transparency, and responsible practices. With over 400 brands operating across global markets, Unilever has successfully reached an astounding 2.5 billion people daily through its investment in brand management and advertising.

Unilever utilizes a combination of traditional and modern mediums for advertising, ensuring a diverse and engaging approach to reach its audience. The company’s branding strategy places a strong emphasis on trust, transparency, and consistency, creating a unified brand experience across its portfolio.

Key Takeaways:

• Unilever reaches 2.5 billion people daily through its investment in brand management and advertising.
• Unilever operates over 400 brands across global markets.
• Unilever’s branding strategy emphasizes trust, transparency, and consistency.
• Unilever utilizes traditional and modern mediums for advertising to engage with its audience.
• Unilever’s marketing approach aligns with responsible practices and adherence to industry codes.

Unilever’s History and Business Model

Unilever, a global consumer goods company, has a rich history that dates back to 1929 when Lever Brothers and Margarine Unie merged. Their business model is built upon key pillars, including consumer insights, manufacturing efficiency, logistics, marketing, sales, collaboration, innovation, and responsible sourcing.

Unilever recognizes the importance of consumer insights in shaping their operations. By gaining a deep understanding of consumer needs and preferences, Unilever is able to develop products and strategies that resonate with their target audience. This approach allows them to stay ahead in the market and meet consumer demands effectively.

The company also places a strong emphasis on manufacturing efficiency and logistics. By optimizing their manufacturing processes and supply chain, Unilever ensures that their products are delivered to consumers efficiently and cost-effectively. This streamlined approach contributes to their overall success in the industry.

In terms of marketing and sales, Unilever adopts a collaborative and innovative approach. They actively seek partnerships and collaborations to enhance their marketing efforts and reach a wider audience. By leveraging new technologies and platforms, such as digital marketing and e-commerce, Unilever is able to engage with consumers in innovative ways.

Furthermore, Unilever is committed to responsible sourcing throughout their supply chain. They prioritize ethical practices, sustainability, and the well-being of communities and the environment. By sourcing responsibly, Unilever aims to create a positive impact and contribute to a more sustainable future.

Overall, Unilever’s history and business model exemplify their commitment to delivering top-tier financial results, fostering growth, and operating with integrity. They prioritize consumer insights, manufacturing efficiency, logistics, marketing, sales, collaboration, innovation, and responsible sourcing to stay at the forefront of their industry and meet the evolving needs of their consumers.

Unilever’s Product Portfolio

Unilever’s success lies in its diverse product portfolio, which spans across multiple categories. The company boasts over 400 brands, covering personal care, home care, food and beverages, and even ice cream. Each division within Unilever’s product portfolio plays a crucial role in meeting the needs and preferences of consumers worldwide.

The Beauty & Personal Care segment is a significant contributor to Unilever’s revenue, with renowned brands such as Dove, a leader in skincare products, and Omo (Persil), a trusted name in laundry care. Unilever’s commitment to providing high-quality personal care products is evident in its emphasis on brand superiority, focusing on product attributes, proposition, packaging, place, promotion, and pricing. By continuously innovating and investing in these brands, Unilever maintains its market position and drives growth in this segment.

In the Foods & Refreshment division, Unilever offers a wide range of food and beverage products enjoyed by millions worldwide. Well-known brands like Knorr and Hellmann’s are household names, recognized for their quality and taste. Unilever’s marketing strategies for this segment revolve around emotional branding, purpose-driven marketing, and sustainability. By aligning with consumers’ values and creating meaningful connections, Unilever strengthens the bond with its customers and drives loyalty.

The Home Care segment encompasses brands such as Domestos, known for its impactful initiatives like World Toilet Day, and many others. Unilever’s commitment to responsible practices is demonstrated in its support for the development of international self-regulatory codes and the adoption of global guidelines to promote body positivity by avoiding the use of ‘size zero’ models or actors in advertising. Additionally, Unilever has specific commitments and principles for marketing foods and beverages to children, ensuring responsible advertising practices.

Unilever is also active in the Tea segment, offering popular tea brands like Lipton. As a company that recognizes the importance of sustainability, Unilever invests in renewable energy, sustainable packaging, and responsible sourcing. Moreover, Unilever’s marketing strategies extend to influencer collaborations, including partnerships with events like the FIFA Women’s World Cup, and social media campaigns like the #CleanTok Awards.

Unilever’s dedication to sustainable growth extends beyond its core business. The company focuses on four key priorities: climate, nature, plastics, and livelihoods. By setting ambitious sustainability goals and implementing a short-term roadmap, Unilever takes a proactive approach to minimize its impact on the environment and contribute to a better future. Through its product portfolio and sustainable practices, Unilever continues to make a positive difference in the lives of millions of people around the world.

Unilever’s Branding Strategy

Unilever, a global leader in the consumer goods industry, has crafted a powerful branding strategy that revolves around trust, transparency, consistency, and the delivery of a unified brand experience. By embodying these core principles, Unilever has established itself as a reputable and reliable brand across the globe.

One of Unilever’s key focuses is on ensuring trust. This is achieved by consistently delivering high-quality products that meet consumer expectations. Unilever’s commitment to transparency allows consumers to have a clear understanding of the ingredients, sourcing, and manufacturing processes behind their beloved brands.

In addition to trust and transparency, Unilever places great importance on consistency. This means that consumers can rely on a consistent brand experience across Unilever’s vast portfolio of over 400 brands. By maintaining a consistent image and message, Unilever has created a sense of familiarity and reliability for consumers.

Unilever’s branding strategy also encompasses responsible business practices, sustainability, and social impact. As a company that operates in more than 190 countries, Unilever understands the importance of catering to the diverse needs and preferences of consumers while prioritizing the well-being of the planet and society. This commitment is reflected in their focus on climate, nature, plastics, and livelihoods as their key sustainability priorities.

Unilever’s approach to branding extends beyond traditional marketing channels. The company embraces digital marketing, harnessing the power of social media platforms such as Facebook, Instagram, and Twitter to connect with consumers and drive brand awareness. By leveraging e-commerce as a key channel, Unilever ensures that its brands are easily accessible to consumers.

Unilever’s extensive brand portfolio allows them to invest heavily in research and development, constantly driving innovation and product improvement. By collaborating with influencers and celebrities, Unilever maximizes its brand reach and engages with a wide audience. Furthermore, Unilever actively engages with customers through social media and digital channels, fostering a sense of community and connection.

Unilever’s Advertising Approach

Unilever is committed to responsible marketing practices and ethical advertising. They adhere to the International Chamber of Commerce code for advertising and marketing communication, ensuring transparency and ethical conduct in their advertising approach. Unilever’s advertising strategy promotes healthy body images and aims to combat harmful stereotypes.

Unilever has been a pioneer in responsible marketing, with a history of implementing principles for marketing foods and beverages to children. They have updated their Marketing to Children Principles to stop marketing to under-16s by January 2023. It is important to note that Unilever’s commitment to Principle 1 on marketing to children is focused on paid media.

In addition to promoting responsible marketing, Unilever recognizes the power of advertising to shape societal perceptions. They strive to create advertisements that are unstereotypical and progressive. In fact, in 2020, 98% of Unilever’s global advertisements tested were unstereotypical, and 60% were strongly progressive.

Unilever understands the impact that advertisements can have on consumer attitudes and beliefs. They acknowledge that nearly half of people from marginalized communities feel they have been stereotyped through advertising, and 71% of people believe that stereotypes in the media are harming the younger generation. Unilever is committed to creating advertising that breaks free from stereotypes and fosters a more inclusive and equitable society.

Unilever’s multi-channel advertising strategy allows them to reach a wide audience across various platforms and channels. They leverage traditional mediums such as television, print, and radio, as well as modern mediums like digital and social media. This multi-channel approach ensures that their advertising messages are accessible and impactful.

To further support their responsible marketing approach, Unilever has taken significant steps towards improving advertising practices. They have announced a 100% ban on any digital alteration that changes a person’s body shape, size, proportions, or skin color. This commitment reflects Unilever’s dedication to promoting healthy and realistic body images.

Unilever’s Advertising Approach at a Glance

Unilever’s advertising approach reflects their commitment to responsible marketing practices, ethical conduct, and promoting healthy body images. They understand the influence of advertising and strive to create progressive, unstereotypical ads that contribute to a more inclusive society.

Unilever’s Digital Marketing Strategy

In today’s digital landscape, Unilever understands the significance of utilizing digital marketing and social media platforms to engage with consumers effectively. By leveraging various digital channels, such as Facebook, Instagram, and Twitter, Unilever can connect with its target audience, create engaging content, run targeted advertising campaigns, and build brand engagement.

Unilever’s digital marketing strategy focuses on delivering relevant and compelling content that resonates with its audience. Through storytelling and captivating visuals, Unilever aims to create deeper connections and foster brand loyalty. By embracing digital platforms, Unilever can reach a wide range of consumers globally and effectively communicate its brand message.

The use of targeted advertising is another crucial aspect of Unilever’s digital marketing strategy. By leveraging data-driven insights, Unilever can deliver personalized and relevant advertisements to its target audience, ensuring maximum impact and return on investment. This targeted approach allows Unilever to optimize its advertising spend and reach consumers who are most likely to be interested in its products.

Additionally, Unilever embraces e-commerce strategies and online retail partnerships to enhance customer accessibility. By providing customers with convenient and seamless online shopping experiences, Unilever ensures that its products are easily accessible, driving sales and customer satisfaction.

Furthermore, Unilever actively collaborates with influencers and celebrities to effectively promote its brands. Leveraging the influence and reach of these individuals, Unilever can expand its brand’s visibility and connect with new audiences. This partnership approach allows Unilever to tap into the power of influencer marketing and create authentic connections with consumers.

It’s important to note that Unilever is committed to responsible marketing practices and upholds ethical standards in its digital marketing efforts. By adhering to industry guidelines and regulations, such as the International Chamber of Commerce code, Unilever ensures that its digital marketing is transparent, ethical, and respects consumer privacy.

Unilever’s Digital Marketing Strategy at a Glance

Unilever’s digital marketing strategy is a key component of its overall marketing approach. By leveraging the power of digital platforms, Unilever can effectively engage with consumers, create meaningful connections, and drive brand growth in today’s digital-first world.

Unilever’s Growth Action Plan

Unilever has developed a comprehensive Growth Action Plan to deliver higher-quality growth and maximize its potential in the consumer goods industry. This strategy encompasses several key priorities, including productivity, simplicity, and a strong performance focus.

One of the main strategic moves highlighted by Unilever’s Growth Action Plan is the emphasis on focusing on its 30 Power Brands. By directing more resources and attention to these brands, Unilever aims to drive faster growth and consolidate its position in the market.

To ensure unmissable brand superiority, Unilever has implemented a robust measurement system for its brands. This system evaluates six key attributes including product, proposition, packaging, place, promotion, and pricing. By continuously monitoring and improving these aspects, Unilever aims to maintain a competitive edge and ensure customer satisfaction.

Investing in brand management and marketing is a crucial aspect of Unilever’s Growth Action Plan. The company recognizes the importance of brand investment and aims to increase returns by leveraging digital platforms. By focusing on digital channels, Unilever aims to connect with consumers on a deeper level and drive growth in the digital landscape.

Unilever also plans to leverage its strong science and technology platforms to scale multi-year innovations. By combining scientific advancements with consumer insights, Unilever aims to drive category growth and deliver innovative products that meet the evolving needs of consumers.

Portfolio optimization is another critical component of Unilever’s Growth Action Plan. The company is selectively optimizing its portfolio by divesting underperforming brands and pursuing transformational acquisitions cautiously. This strategic approach allows Unilever to focus on brands with the greatest growth potential and ensure long-term success.

Unilever aims to simplify its operating model and strengthen customer development roles by adopting a category-focused organization structure. This streamlined approach enhances efficiency and effectiveness, allowing the company to better serve its customers and meet their evolving demands.

In order to build back gross margin, Unilever is shifting its focus from gross savings to net productivity. This disciplined approach to restructuring and cost control will enable the company to achieve sustainable growth and improve its financial performance.

The Growth Action Plan places a strong emphasis on sustainability goals, including climate, nature, plastics, and livelihoods. Unilever has set short-term roadmaps to drive progress towards these objectives, aligning their business goals with a commitment to a better future.

Unilever is dedicated to creating a performance culture within its organization. By setting clearer priorities, enhancing accountability, and aligning the reward framework with value creation, Unilever aims to foster a high-performance environment that drives growth and delivers consistent results.

Unilever’s Growth Action Plan sets ambitious targets for the company’s future performance. They expect underlying sales growth to be within the multi-year range of 3% to 5%, focusing on striking a balance between volume and price. With an anticipated modest improvement in underlying operating margin, driven by gross margin expansion and increased productivity, Unilever is poised for sustained growth and success.

In addition to these strategic initiatives, Unilever’s Growth Action Plan includes a focus on higher growth, higher-margin brands. By prioritizing these brands, Unilever aims to drive profitability and achieve sustained growth post-separation.

With its comprehensive Growth Action Plan, Unilever is committed to delivering higher-quality growth, driving productivity and simplicity, and maintaining a strong performance focus. By investing in brand management, optimizing its portfolio, and driving innovation, Unilever is well-positioned to achieve its growth goals and continue its success in the consumer goods industry.

Unilever’s Financial Performance

Unilever has demonstrated a strong financial performance, marked by a return to volume growth and a significant improvement in gross margin. In the full year, Unilever achieved underlying sales growth of 7.0%, driven by a positive volume growth of 0.2% and a substantial contribution of 6.8% from price.

By the fourth quarter, Unilever experienced a notable jump in volume growth, with a 3.9% increase attributed to the performance of the 30 Power Brands. This growth showcases Unilever’s successful brand management strategies and consumer appeal.

The company’s gross margin expanded by 200 basis points, reaching an impressive 42.2%. This improvement can be attributed to productivity gains achieved throughout the year, resulting in a gross margin expansion of 330 basis points in the second half of 2023.

Unilever’s commitment to investing in its brand and marketing efforts is evident in the reinvestment of over half of the gross margin expansion. This investment led to an increase in brand and marketing investment by 130 basis points, reaching 14.3%. This demonstrates Unilever’s focus on driving growth through effective marketing strategies and brand building.

Despite these positive financial indicators, Unilever acknowledges areas that require improvement, as reflected in the percentage of its business winning market share on a rolling 12-month basis, which stood at 37%. Unilever remains dedicated to continuously evolving and adapting its strategies to enhance its market position.

Unilever’s financial performance was also influenced by its presence in different markets. The emerging markets, accounting for 58% of Group turnover, recorded an underlying sales growth of 8.5%, primarily driven by a combination of volume growth (1.6%) and price growth (6.9%). On the other hand, developed markets, accounting for 42% of Group turnover, reported an underlying sales growth of 4.8%, largely driven by price growth (6.7%), partially offset by a decline in volume (-1.8%).

In terms of overall financial figures, Unilever’s turnover for the year reached €59.6 billion, marking a minor decline of -0.8% compared to the previous year. This decline can be attributed to adverse foreign exchange translation and disposals net of acquisitions.

Unilever’s underlying operating profit amounted to €9.9 billion, signifying a 2.6% increase compared to the previous year. The company also witnessed an improvement in its underlying operating margin, which increased by 60 basis points to 16.7%, showcasing enhanced profitability and operational efficiency.

In line with their growth strategy, Unilever executed strategic acquisitions in 2023 to expand their premium brand portfolio. This included the acquisition of Yasso Holdings, Inc., a premium frozen Greek yogurt brand, and K18, a premium biotech hair care brand. Moreover, divestments such as the Suave, Dollar Shave Club, and Elida Beauty brands were executed by Unilever to reallocate capital and further optimize their brand portfolio.

Unilever’s commitment to creating value for their shareholders is evident through their substantial returns. In 2023, shareholder returns amounted to €5.9 billion through dividends and share buybacks, underscoring the company’s dedication to rewarding their investors.

In terms of divisional performance, the Beauty & Wellbeing division experienced a strong underlying sales growth of 8.3%, with balanced growth between volume and price. Hair Care within the Beauty & Wellbeing division recorded growth in the mid-single digits, particularly in Latin America and Turkey.

Unilever’s focus on innovation and sustainability is evident in the Prestige Beauty and Health & Wellbeing portfolios, which achieved double-digit growth in the US, outpacing the market.

The Personal Care division achieved an underlying sales growth of 8.9%, driven by a balanced combination of volume and price growth. Notably, the Deodorants segment within Personal Care experienced double-digit growth, particularly in Europe and Latin America. Additionally, Dove delivered double-digit growth supported by successful new product launches.

The Home Care division reported underlying sales growth of 5.9%, with a positive volume trend in the second half of the year. The Fabric Cleaning segment within Home Care exhibited mid-single-digit growth, primarily driven by high-single-digit growth in Latin America.

The Nutrition division reported underlying sales growth of 7.7%, primarily driven by the success of Knorr and Hellmann’s brands, which accounted for a significant portion (60%) of the division’s turnover in 2023. The Scratch Cooking Aids category, led by Knorr, achieved high-single-digit growth and reached €5 billion in turnover. Moreover, the Dressings segment experienced double-digit growth driven by price, showcasing Unilever’s commitment to sustainability foundations and innovative packaging.

The financial performance of Unilever reflects its strategic focus on growth, optimization, and sustainability. With a return to volume growth, gross margin expansion, and continued investments in brand and marketing, Unilever is poised for further success.

Unilever’s Sustainability Efforts

Unilever is committed to driving sustainable practices and making a positive impact on the environment and society. Their sustainability efforts focus on four key priorities: climate, nature, plastics, and livelihoods.

For climate, Unilever aims to achieve net zero emissions across its entire value chain by 2039. They have set ambitious targets to reduce greenhouse gas emissions, integrate solar solutions in their operations for energy savings, and actively participate in UN negotiations to end plastic pollution.

In terms of nature, Unilever has mapped 67 million hectares of forests and assessed thousands of palm estates to source deforestation-free suppliers. They invest in regenerative agricultural practices to store carbon, improve soil health, and reduce emissions from dairy production.

Unilever also places a strong emphasis on addressing the issue of plastics. They aim to end plastic pollution through reduction, circulation, and collaboration. By using sustainable packaging and promoting responsible consumption, Unilever has significantly reduced their distribution CO2 emissions by 83%.

Lastly, Unilever is dedicated to improving livelihoods. They prioritize ensuring a decent livelihood for people in their global value chain, including earning a living wage. Unilever invests in landscape programs to support sustainable palm oil sourcing, benefiting smallholder farmers, forests, wildlife, governments, businesses, and communities.

Overall, Unilever’s sustainability efforts are guided by their short-term roadmaps and long-term commitments. By integrating sustainable practices into their operations, Unilever is paving the way for a more sustainable and responsible future.

Sustainability Efforts Overview:

Unilever’s Team and Culture

Unilever, a global consumer goods company, recognizes that a strong team and culture are essential for driving success and achieving their goals. With a renewed team and new leaders at the helm, Unilever is addressing the opportunities and challenges of 2024 with urgency and decisiveness.

Unilever places a strong emphasis on cultivating a performance culture that encourages innovation, collaboration, and accountability. They believe that investing in their people is key to driving sustainable growth and delivering superior results.

To support their performance culture, Unilever has implemented a new reward framework that aligns with their values and goals. This framework recognizes and rewards individuals and teams for their contributions and achievements, fostering a sense of ownership and motivation.

Integrity and business integrity are integral to Unilever’s team and culture. They value integrity, respect, responsibility, and pioneering as guiding principles in all their business operations. Unilever expects all employees to uphold the highest ethical standards in their work.

Unilever’s leadership team plays a crucial role in shaping the company’s culture and driving performance. They lead by example, inspiring and empowering employees to reach their full potential and contribute to the company’s success.

To foster a diverse and inclusive culture, Unilever encourages collaboration and values different perspectives. They believe that a diverse workforce brings fresh ideas and insights, leading to better decision-making and innovation.

Unilever’s commitment to team and culture extends beyond their internal operations. They strive to create a positive impact on society and the environment through their sustainable business practices and responsible sourcing.

Unilever’s team and culture are the backbone of their success. By prioritizing performance, integrity, and collaboration, Unilever is building a strong foundation for sustainable growth and continued excellence.

Unilever’s Leadership Team

Unilever’s leadership team, led by CEO Alan Jope and Chairman Nils Andersen, brings a wealth of experience and expertise to guide the company’s strategic direction. They are committed to upholding the values and principles that define Unilever’s team and culture.

Conclusion

Unilever’s marketing strategy for 2024 is built on trust, transparency, and responsible practices. With a diverse portfolio of over 400 brands, Unilever is well-positioned to cater to the diverse needs of consumers worldwide. By investing in research and development, Unilever continues to innovate its products and stay relevant in the ever-evolving consumer goods industry.

The company’s focus on building customer loyalty through loyalty programs and engagement strategies has resulted in strong relationships with consumers. Utilizing digital marketing and maintaining a strong presence on platforms like Facebook, Instagram, and Twitter, Unilever effectively reaches and engages with its target audience.

Unilever actively listens to customer feedback, promptly addressing concerns to ensure customer satisfaction and loyalty. By measuring the impact of its marketing efforts, Unilever continuously evaluates the effectiveness of its strategies and optimizes them for success.

Operating in over 190 countries worldwide, Unilever’s commitment to sustainable growth, financial performance, and a strong team and culture sets the stage for continued success and business growth in the coming years.