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[CBO] unilever's big action: cut global marketing

author:adminrelease:2018-03-14

  Unilever's latest results show, the company 2015 annual income increased by 4.1%, net profit fell by 5%, however, in the face of this dilemma, start to look for the way of open source throttling, unilever will first put "knife" in the marketing. However, according to the investigation, there is not much change in its policy in the Chinese market. The goal this year is to increase the number of distributors to 290 and increase the investment and construction of e-commerce.


  Tighten your belt and cut marketing spending worldwide.


  In the market forecast, unilever CEO Paul Polman judged 2015 to be a turbulent year and 2016 was more challenging than 2015. Macroeconomic growth, he argues, is unlikely to improve, you can see, the more tense geopolitical situation, stock market pulse, currency instability, abnormal climate change more increased the instability of the economy.


  Amid the gloom, unilever's plans to sell 20 to 30 per cent more than in previous years have been overshadowed by better products.


  In a presentation to analysts and investors, Polman noted that unilever's marketing spending rose by 0.2% in 2014, to 15% of sales, about $8.7 billion. In absolute terms, its marketing spending is up nearly 12% from a year ago, given the dollar's exchange rate.


  In fact, in 2014, unilever experimented with a "zero budget" in Thailand, and the results were ideal, with overall spending falling by 2%. Unilever's chief financial officer, Graeme Pitkethly said, in order to cut costs further, unilever will use a new "functional model" to reduce the cost of internal marketing and other personnel, is expected to be for unilever to save $1 billion a year.


  The Chinese market delivered a satisfactory answer: "the policy changes are small, increasing the agent to 290".


  Unilever a agents in western China in an interview with the cosmetics online financial journalist said, according to the information he got, at present in China, unilever's marketing model is not too much adjustment, just plan to 290 distributors across the country.


  In the previous analysis, Paul Polman was satisfied with unilever's development in China. Although China's economic growth in 2015 than in previous years, but due to the unilever adjustments to inventory work very early, a lot faster than many other competitor response, thus in China, unilever has more than the average economic growth of China.


  Unilever's good news in China comes mainly from the second and third-tier cities and coastal cities, especially in e-commerce, where it has gained 80% of the growth. Unilever's agents also said that e-commerce was indeed the focus of unilever's presence in China and that it would continue to invest more in 2016.


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