Unilever leans on strong brand equity as prices rise

Unilever, the global FMCG company with brands including Dove, Sunsilk, and Ben & Jerry’s, is leaning on decades of experience in pricing for hyper-inflationary markets as it navigates the global economic downturn.

Why it matters 

“By pricing early, we continue to be able to invest in our brands and ensure that they are well placed to come out stronger from this remarkable period of inflation,” said CEO Alan Jope on the company's Q2 2022 earnings call. 

Relying on brand equity 

Unilever is leading on pricing, and has been able to withstand market changes due to its strong brand awareness and equity, Jope explained, adding that pricing has been sequentially increased over the past seven quarters. 

Unilever's top 13 brands, each with a turnover in excess of €1bn, have done particularly well. “Our billionaire brands are outperforming and, frankly, it's because that's where we have the strongest brand equities,” the chief executive said.

“Many of our billionaire brands have found that magic spot, the intersection of superior functional product performance, great value and long-standing purposeful brand campaigns that create tremendous consumer resonance,” he continued. “The brand health measures for our billionaire brands are particularly strong.”

Unilever’s price strategy

• A well-rehearsed strategy for landing pricing, which has been practised in high-inflation regions such as Latin America and Southeast Asia.
• Playing with pack and price architecture, mixing carefully and adjusting consumer promotion.
• Investing not just in advertising but in product quality.
• Building brand equity to reduce price sensitivity.