Is Unilever Washing Its Hands of Brand Purpose?
David Aaker
Vice Chairman at Prophet, Brand Strategist and Author of 18 books including "The Future of Purpose-Driven Branding"
Unilever has a new CEO, Hein Schumacher. This is important because Unilever is one of the global advocates and leaders for purpose-driven branding, where every business is expected to have an inspiring social purpose that goes beyond making profits and growing sales. This was supported with a social heritage starting with their initial product, Lifebuoy soap, designed to help combat cholera in Victorian England. Paul Polman, CEO from 2009 to 2019, was the father of taking Unilever along this path. He was followed by a long-term Unilever executive Alan Jope, who doubled down on purpose-driven businesses.
We can be hopeful that Schumacher will also build on this heritage of integrating a socially relevant purpose into Unilever businesses. He comes from running Friesland Campina, a food firm that has sustainability as a priority and “creating better nutrition for the world,” as a purpose. However, there are troubling signs from some of his early comments and priorities.
First, unlike Jope, in at least some of his comments, he has not reaffirmed the concept of a purpose-driven business. In fact, he has said that the company now recognizes there are some brands where the concept is simply not relevant, and the company would stop “force fitting” purpose to all its brands. Does that mean that a business manager has permission to stop looking for a social program that will impact and help the business? Does it also mean that the sought after status of being a sustainable brand is no longer a priority at Unilever? Under that policy, would a business such as the men’s fragrance brand AXE have found a social purpose as they did (from attacking women to expressing individuality)??
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Second, his focus seems to be on sales growth and the need to elevate the marketing return on investment. Both are usually code words for focusing on short-term financials instead of brand equity. This tendency may be influenced by the fact that he has a background as a CFO.?
The global business community, in my view,?needs Unilever to act as a role model for purpose-driven branding. It will be a shame if Unilever walks away from its leadership in having brands play a role in addressing societal challenges while still enhancing their business. And showing again and again that it can enhance and even power business performance.???
It would be helpful for Schumacher and other Unilever spokespeople to clarify their position about purpose-driven businesses. And to hear other opinions from those with influence in this space. It is hard to overstate the positive impact that Unilever has had in guiding businesses to find routes to help society and business. That impact needs to continue.? ?
Verbal Identity Designer, Creative Copywriter & Director, Brand Stategist
11 个月I like the purpose driven approach in general. This said, I’m concerned about narrowness and rigidity of a one-approach-fits-all mentality. I’m concerned about purpose driven branding crossing into wokeism branding, which doesn’t serve tactical or strategic branding and equity well. Finally, could the limits of purpose branding be clarified? Business are not nonprofits. By definition, hard dollars and profit should trump social virtue or virtue signaling. Business revenue and brand purpose must be held in creative tension by leaders.
Brand and innovation consultant, helping brands connect purpose to action.
11 个月Purpose, impact the language gets weaponised. What matters here is that companies earn their social license to trade. If some of their brands don't fit with this ethos, then maybe it's the brands that are no longer relevant, not the belief that business should make a meaningful contribution to society.
Marketing, Growth Executive | Management Consultant | M&A Advisor to Private Equity & SMB Owners
11 个月Thanks for your thought-provoking contribution here, David. I agree with some of it; not all. Every brand should aspire to its highest and best use in people's lives. Purpose-driven marketing works for some consumers' purchase decisions in some brand categories. I believe it's a stretch to apply it to every brand in a company's portfolio and search retroactively for the social good in a brand's origins that simply may not be there (or is less relevant to most consumers than its functional benefits). Unilever's stock price growth has lagged that of many of its peers (e.g., Procter & Gamble) in the last several years, more than enough time for the market to gauge whether it's a winning strategy. While share price isn't everything, let's not forget the amount of social good done by companies via the simple act of selling products, employing thousands of people and improving the lives of millions of consumers, if even in basic ways.
Adviser, connecting sustainability and commercial for lasting impact
11 个月Good question, David. My take on it is that the fundamental approach isn't changing - https://www.dhirubhai.net/posts/andrewlast_nike-dream-crazier-justdoit-activity-7125458615154438146-bpRY/?utm_source=share&utm_medium=member_desktop?rel=noimage.
Inspiring leaders with a future vision and the steps to navigate there!
11 个月Does Mayonaise need a purpose? Perhaps not, but the TEAMS OF PEOPLE taking it to market and fighting for dominance over the vast array of competitors do need a 'why?' they can relate to and measure against.