Marico has upped its advertising and promotional spends by
a mammoth 76.52 per cent for the three-month period ended
31 March 2012, reinforcing its focus on volume growth rather
company spent Rs 1.19 billion towards advertising in the final
quarter, significantly higher than Rs 671.85 million that
it consumed in the year-ago period.Advertisements and promotional
spends were 14.3 per cent of the net sales in the quarter.
advertising budget will continue to be higher in the coming
fiscal as it focuses on growth through value-added products
in its various segments.
net profit for the quarter fell by 2.67 per cent to Rs 696.971
million despite cut in product prices and high volume growth
due to an increase in ad spend. Net sales grew 22.89 per cent
to Rs 9.18 billion compared to Rs 7.47 billion a year ago.
the full fiscal also, Marico's ad spend rose 29.78 per cent
to Rs 4.49 billion, from Rs 3.46 billion in the earlier year.
Marico had said in August last year that the company would
cut it ad spends and other costs to offset input cost pressure
and avoid price hike.
the company increased its spending on advertising and promotions
in each quarter of FY12, barring the second quarter
when it remained flat.
major chunk of the spent was on the Saffola life World Heart
Day Campaign 2011, which started in Q2 and continued in Q3
the three-month period ended 31 December 2011, the company
had spent Rs 1.34 billion on advertising, a 48.62 per cent
jump from the earlier year. During the second-quarter of the
fiscal, the advertising spends were at Rs 941.49 million.
in the first quarter of the fiscal, Marico had increased spend
on advertisement by 9.1 per cent as it had launched new products.
the full fiscal, the net profit stood at Rs 3.17 billion,
up from Rs 2.86 billion in the previous fiscal, a 10.71 per
annual net sales stood at Rs 33.97 billion as opposed to Rs
31.26 billion in the last year, registering a growth of 8.66