Unilever, London, will pump an additional $1.6 billion into marketing its heavily pruned portfolio of 400 brands during the next five years. Last year, it spent $5.6 billion promoting 1,600 brands worldwide. The company is undertaking a review that will leave it three tiers of brands, for which it intends to marshal greater resources. All will be No. 1 or No. 2 in their markets or sectors. The top tier of about 50 international "power" brands will be those with the potential to cross both countries and product sectors, such as Calvin Klein fragrances, Dove soap and Lipton tea. The second tier will be brands that share an international positioning but whose names may be different. The third will incorporate "local jewels" with strong market positions, good margins and robust growth.
Copyright February 2000, Crain Communications Inc.