Unilever calls $ 4.65 b global media review

Thursday, 15 December 2011 00:17 - - {{hitsCtrl.values.hits}}

Unilever has started a global review of its estimated US$ 4.65 billion media planning and buying business, currently handled by WPP’s Mindshare in the UK.

The review follows Unilever unveiling ambitions to double the size of its business by 2020, while reducing its environmental impact.

The global FMCG conglomerate has also launched a new marketing strategy, Crafting Brands for Life, designed to better position products within consumers’ lives.

The global review will include the services for its four core categories – Foods, Refreshment, Home Care and Personal Care – around much of the world, including the UK, North America, France, Germany, Spain, Russia, India and China.

The group’s international portfolio of brands includes Knorr, Hellmann’s, Lipton, Dove, Vaseline, Persil, Cif, Marmite and Pot Noodle. Unilever spent £ 137 m on media activity in the UK in 2010, according to Nielsen. Mindshare currently handles all of the business in Western Europe, valued at £ 700 m, and also its £ 515 million ($ 800 m) business in North America. Unilever’s media business in China is valued at £ 450 m and is currently handled by Omnicom’s PHD. The business in Eastern Europe is also held by PHD.

The latest global review process will start next month (January 2012), and be led by Luis Di Como, senior vice president of global media at Unilever.

Incumbents Mindshare and PHD will be invited to repitch for the business, with their current three- year contracts with Unilever due to expire in the second half of 2012 and early 2013 respectively. Other networked media agencies large enough to handle the business will also be invited to pitch.

Di Como said: “Our new marketing strategy, Crafting Brands for Life, and our determination to continue leading in the digital marketing space also drive us to ensure that we are working with the best agencies to deliver our ambitions. “The exercise is also in line with company policy to review media agency arrangements periodically.”

Unilever is one of the world’s leading suppliers of fast moving consumer goods with operations in more than 100 countries and sales in more than 180. According to company statistics, consumers buy 170 billion Unilever packs around the world every year, and its products are used over two billion times a day.