Unilever cuts back on using external marketing consultancies

Grocery Food

Joe Thomas

February 10, 2009

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1 minute

Unilever cuts back on using external marketing consultancies

LONDON - Unilever is cutting back on its use of external consultancies following an announcement that the FMCG giant would be slashing costs.

Unilever cutting back on marketing consultancies

A spokesman said: ‘Unilever has reappraised its future use of external consultancies to ensure we optimise our marketing spend. Our relationship with existing rostered agencies remains unchanged.'

One consultant said: ‘Many consultancies have been set up by ex-Unilever people - the restriction will not only hurt them, but will hurt the sector on the whole.'

Unilever chief executive Paul Polman said the presentation of the company's fourth quarter figures last week: ‘I think it is essential to remove costs which the consumer is not prepared to pay for ... and we shall use the economic downturn to create a new sense of urgency in our approach to cost and organisational efficiency'. Polman also added that management salaries had been frozen and there would be reduced external hiring.'

Sales volumes at Unilever have decreased by 1.6% during the fourth quarter of 2008.

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