Unilever, the transnational consumer goods giant is maintaining the spends on marketing is rethinking the way it is to be used to ensure the effectiveness of the same. The company has witnessed a flat underlying sales in its quarter as a result of the early emergence of the outbreak of COVID-19 in Asian marketing, resulting in decline.
Unilever is a leading FMCG company that usually has huge budgets set aside for marketing and advertising is now reviewing their marketing spends, because of the present situation of the global pandemic. This step is to ensure that the marketing spends are being used effectively and appropriately all the while maintaining the BMI or the brand and marketing investment levels which is said to be working relatively harder as compared to before.
The company announced its results of the first quarter on Thursday to which Graeme Pitkethly, the chief financial officer stated that the production of advertisements is on hold and the rates of the media have declined so Unilever can spend the same level of amount and still increase their reach of the advertising. The company owns several FMCG brands and is now relocating its BMI dynamically. This step is taken in accordance with the behavioral changing patterns and the change in demand levels of different products in different categories as most people are now spending all of their time inside their homes martech news.
The company reported a total turnover of €12.4 billion for the first quarter of 2020 and underlying sales growth of 0% worldwide. Though these were the worldwide figures, the results of different regions were quite contrasting because of the different stages the regions were at the COVID-19 outbreak.
The company will be shifting its BMI to the areas with the highest ROIs such as home and hygiene and skin cleansing brands. Coca-cola has a rather contrasting strategy as its sales volume witnesses 25% fall and it decides to hit the pause button on all its marketing spends.
Unilever’s underlying sales in America were up by 4.8% as people were panic stockpiling, Europe was up by 1.4%, while the rest of the world and Asia were down by 3.7% because of the early emergence of the outbreak in China.
Different business divisions of Unilever will be combating with different marketing spends and strategies. To know more about such news or information from in and around the martech world, follow the martech cube. Martech cube provides users with insights from the martech industry.