‘Other Say’ marketing activity systems are a core principle at Unilever: Fernando Fernandez

New Delhi: As Unilever ramps up its social-first strategy, increasing its marketing spend from 30% to 50%, CEO Fernando Fernandez has reaffirmed the company’s strong commitment to influencer-driven marketing.

In a conversation with Warren Ackerman of Barclays, Fernandez stated, "Desirability at scale and marketing activity systems of ‘other say’ will be the fundamental principles of our marketing strategy."

Fernandez underscored the importance of "other say" marketing, explaining, "Today, brands—by definition and by default—are met with skepticism when their messages come directly from corporations. So, creating marketing activity systems where others can speak for your brand at scale is incredibly important. Influencers, celebrities, TikTokers—these are the voices that matter."

Unveiling an ambitious influencer strategy, Fernandez outlined a vision for hyper-local engagement: "There are 19,000 zip codes in India and 5,764 municipalities in Brazil. I want at least one influencer in each of them. In some, I want 100. That’s a significant shift. It requires a machine-like approach to content creation—very different from what we’ve done in the past. AI will play a crucial role in this, and I’m absolutely committed. This is one of the things I will drive like hell in the company over the next few years."

Fernandez also revealed a significant increase in Unilever's marketing investment, emphasising its critical role in brand growth. "We spent 13.1% in 2022, increased to 14.3% in 2023, then 15.1% in the first half of 2024, and 15.9% in the second half of 2024. We're pleased that our improved gross margin has enabled us to reinvest in brand building. We believe a marketing spend of 15–16% keeps us at competitive levels."

He further expressed a firm stance against underinvestment: "I follow a principle I learned from an old boss—being consciously uncompetitive is a criminal act. We will always ensure our investment levels keep us competitive."

Finally, Fernandez emphasised the importance of measuring returns on these investments: "We now use UBS methodology to measure brand performance and its impact on brand equity. We have a very clear understanding of the returns on all these efforts. The key question is not whether returns are higher than in the past, but whether they are higher than any alternative allocation of funds today."