Despite tumbling media costs in Europe and America, Unilever does not intend to cut its second-quarter spend on advertising and promotion.
Revealing forecasts for the second-quarter, head of investor relations Howard Green announced the consumer goods colossus would keep its ad and promotional budget at around 14.9% of sales.
The group also predicts Q2 sales – excluding acquisitions (eg Bestfoods) and divestitures (eg Elizabeth Arden) – will increase 4% overall to about $11.5 billion, less than the previous forecast of 4.5%. Growth promises to be even slower in Europe and the USA at 3%. Earnings, however, are set to jump 5%.
Green also declared that the US launch of laundry detergent tablets has so far had less impact than desired – the segment accounts for only 2% of the laundry detergent market, compared to over 10% in parts of Europe. Unilever’s Wisk tablet brand, however, is outdoing rival Procter & Gamble’s Tide.
News source: Advertising Age - Daily Deadline