Unilever, with its impressive $8bn advertising spend, has long been a beacon in the marketing world. The company championed a purpose-driven approach, insisting that brands from Knorr to Marmite embody meaningful values. This sparked a trend, as other companies jumped on the bandwagon, aiming to connect with consumers on a deeper level than just transactions.
From Purpose to Pragmatism
Fast forward to today, and there’s a seismic shift under Unilever’s new CEO, Hein Schumacher. He’s signaling a move away from the all-encompassing embrace of purpose, suggesting that for some brands, a social mission might be irrelevant or even a distraction. This pragmatic turn raises questions about the future of ‘purpose marketing’ and whether we’re witnessing a market correction.
The Tug-of-War: Purpose vs. Profit
Schumacher’s approach reflects a broader reevaluation in the business world. As economic and political uncertainties rise, companies are reassessing their priorities. For example, Unilever’s own Ben & Jerry’s faced backlash over its stance on the Palestinian Territories, illustrating the reputational risks tied to purpose-driven strategies.
This change isn’t dismissing the concept of purpose entirely. Schumacher acknowledges the effectiveness of purpose when executed with credibility, citing Dove and Lifebuoy as successful examples. Yet, he emphasizes not “force fitting” purpose across all brands, aiming for a more nuanced, brand-specific approach.
Consumer Perspectives and Business Realities
There’s also growing consumer cynicism. Many feel bombarded by messages of world issues on product packaging and question the sincerity of brands preaching change. The cost of living crisis further shifts consumer priorities, with price often trumping purpose. Brands like Victoria’s Secret, shifting focus from body positivity to more light-hearted themes, exemplify this trend.
Focused Investment and Performance Culture
Unilever’s new strategy isn’t just about purpose; it’s about focusing resources. Schumacher plans to concentrate on the company’s 30 “power brands,” which make up a significant portion of its revenue. This targeted approach, coupled with a commitment to a performance-driven culture, suggests a refined vision for Unilever’s future.
Unilever’s evolution from a purpose-centric to a more balanced, pragmatic approach reflects changing market dynamics and consumer attitudes. It’s a reminder that in the fluid world of business and marketing, adaptability and nuanced strategies are key to staying relevant and successful. As Unilever navigates these changes, it sets an example for others in the industry, balancing purpose with profitability and consumer engagement with business realities.