Unilever wanted to change its operations and follow a more differentiated and dynamic strategy of offering a service rather than a selection of products. This follows in line with PIMS which illustrates that growth in brand sales and market share is directly related to innovation and without a complete customer focus, market share and Return on Investment performance will suffer. Unilever also believe that by adopting an innovative approach to its brands, they will experience continued sales growth.
Unilever would also restructure its organisation and seek to cut out many of its suppliers in an effort to cut costs and simplify the supply chain. This tactic accompanied with the factory and job cuts would enable them to use the additional cash on top-line brand promotion and pass cost savings onto the consumers. Another tactic was to cease advertising expenditure on its smaller brands and switch its resources and capabilities away from them. Maintenance advertising is crucial to performance of both small and large... [continues]
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