New Unilever boss to sharpen social media focus and influencer marketing as part of restructuring plans

The new CEO of Unilever, Fernando Fernandez, has pledged to increase social media spending and use more influencers to drive marketing rather than focus too much on corporate branding, which he believes many consumers find “suspicious.”

Just a few weeks after the sudden change of leadership at Unilever, Fernandez spoke with Barclays analyst Warren Ackerman during a fireside chat that is published on the company’s website. 

One of the most significant points was his changes in Unilever’s marketing philosophy. 

Social media-first advertising model

Fernandez — who Unilever has announced is taking over from Hein Schumacher, who has spent just 18 months in charge — outlines changes in advertising strategies. This includes increasing social media investment from 30% to 50% of total marketing spend.

“It’s probably the biggest change in our company going forward…Today, brands by default are suspicious, so creating marketing activity systems where others can speak for your brand is very important.”

“There are two things I will drive like hell: desirability at scale and marketing systems with what others say about our brands at scale. Our marketing spending has moved from 13% in 2022 to now close to 16%, which we see as a competitive level. Our spending on social [media] will move from 30% to 50% of our total spend. We will work with 20 times more influencers,” he says.

Historically, Unilever’s marketing strategy has linked its products with broader purposes, oftentimes linked to the environment and sustainability. For instance, Hellmann’s mayonnaise marketing campaign was connected to combating food waste. 

However, these marketing models are seen as out of favor by Fernandez, who says this approach has lost traction because consumers are looking to online influencers rather than corporations for recommendations. 

“There are 19,000 zip codes in India. There are 5,764 municipalities in Brazil. I want one influencer in each of them,” Fernandez continues. “That’s a significant change. It requires a machine of content creation, very different to the one we had in the past.” 

“AI plays a very important role in this, and this is one of the things that I will drive in the company over the next few years.”

Unilever is currently going through a restructuring plan that includes cutting 7,500 jobs and separating its ice-cream business.