MAM

P&G Health halves q-o-q marketing spends in Q4-2014, ups 3.2 per cent in FY-2014

BENGALURU: Consumer goods company Procter & Gamble Hygiene and Health Care Limited (P&G Health) reduced its ad and sales promotion spends  (ASP) to less than half in the quarter ended 30 June 2014 (Q4-2014, current quarter) as compared to the immediate trailing quarter (Q3-2014). The company says that its focus on innovation and productivity continued to sustain growth momentum by delivering an increase in net sales.

P&G Health spent Rs 37.99 crore (7.8 per cent of Operating Income or TIO) towards ASP in Q4-2014 versus Rs 83.16 crore (16.6 per cent of TIO) in the quarter ended 31 March 2014 (Q3-2014) and was 33.1 per cent lower y-o-y than the Rs 56.75 crore (13.4 per cent of TIO).

Across 10 quarters starting Q4-2012 until the current quarter, its Q4-2014 APS spends both in terms of absolute rupees and as percentage of TIO were the lowest. Though in terms of absolute rupees, P&G Health’s ASP shows an upward linear trend, in terms of percentage of TIO, the linear trend is downwards.

Notes: (1) The company’s financial year ends on30  June, hence results for the quarter ended30 June  2014 are Q4-2014, for the quarter ended 30 September 2013 are Q1-2014; for the quarter ended31 December 2013 are Q2-2014 and for the quarter ended 31 March 2014 are Q3-2014. Similar nomenclature is applicable for other years.

(2) 100,00,000 = 100 lakh = 10 million = 1 crore

P&G Health’s ASP is made up of two components – advertisement (ad) and trade incentives (incentive) spends. From FY-2008 (year ended 30 June 2008) until FY-2013, the company’s ASP is split has shifted towards increasing incentive spends – the company’s incentive spend has moved from about 20 per cent of ASP to 44 per cent in FY-2014, with ad spends proportionately moving downwards from 80 per cent in FY-2008 to 56 per cent in FY-2013. This does not mean that the company has been spending lower amount of money towards ad spends, it’s just that with higher budgets, the skew is more towards spending more on trade incentives.

P&G Health’s ASP in FY-2014 at Rs 294.49 crore was just 3.2 per cent more than the Rs 285.27 crore in FY-2013, again, the lowest percentage growth over the last 7 financial years starting FY-2008 until FY-2014.

The company’s TIO in Q4-2014 was down 2.9 per cent to Rs 486.1 crore versus the Rs 500.67 crore in Q3-2014 and was 14.9 per cent more than the Rs 423.08 crore in Q1-2014. P&G Health’s FY-2014 TIO at Rs 205.09 crore was 21.6 per cent more than the Rs 168.68 crore in the preceding financial year. Please refer to Fig 1 below.

P&G Health’s PAT in Q4-2014 at Rs 89.92 crore (18.5 per cent of TIO) was 11.3 per cent more than the Rs 80.76 crore (16.1 per cent of TIO) in Q3-2014 and was 73.4 per cent more than the Rs 51.87 crore (12.3 per cent of TIO) in Q4-2013.

In FY-2014, PAT at Rs 302.02 crore (14.7 per cent of TIO) was 48.6 per cent more than the Rs 203.22 crore (12 per cent of TIO) in FY-2013.

P&G Health, in its earnings release says that both its feminine and healthcare businesses continued to deliver double digit growth in a competitive market environment behind superior products, strong initiatives and product portfolio strength. It says further that the launch of Old Spice is delivering in line with its expectations. Among its product portfolio, the company has brands such as Whisper (feminine hygiene) and Vicks (healthcare), and Old Spice.

Click here to read the audited financial result

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/28/Chakra_1.jpg?itok=885MCmNg
Chakra movies to air on Toonami; Astral Force coming soon

MUMBAI: After its successful debut on Cartoon Network in 2013, Graphic India and Stan Lee’s "Chakra The Invincible" is back with three new installments of "Made for TV" movies for Turner International. Chakra is the brainchild Graphic India’s Sharad Devarajan, and POW Entertainment founder Stan Lee...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/27/Untitled-1_26.jpg?itok=Xk83DILP
Neeraj Roy elected as IAA India chapter president

The India Chapter of International Advertising Association has elected Hungama Digital Media CEO Neeraj Roy as its president.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/27/Untitled-1_1.jpg?itok=fwyfOMMp
Salman endorses 'fully fantastic' Dixcy

Dixcy Textiles has rolled out its new advertising campaign. The TVC features the biggest entertainer in Bollywood Salman Khan.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/27/Swachh%20Bharat.jpg?itok=TacDOT_p
Swachh Bharat Week: Sachin, Amitabh lead promotional videos

NEW DELHI: A series of promotional videos promoting the idea of constructing toilets in every household in the country was released by the prime minister Narendra Modi. The government is celebrating the Swachh Bharat Week, from September 25- October 2.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/26/Untitled-1_14.jpg?itok=U3BTPEWF
When brands think like publishers: CMS Asia 2016

As more brands are waking up to the perks of content marketing, they increasingly realise the need to think like a content platform or publisher. But, are they doing it right? -- was the question raised in the panel discussion at CMS Asia 2016. The panellists were -- Autocar’s Hormazd Sorabjee, Mxm...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/26/Untitled-1_13.jpg?itok=wW6tfUjZ
Budweiser brings 'What's Brewing' to India

Budweiser's latest campaign ‘Always Brewing' derives its genesis from the brand’s core principles of freedom, authenticity and ambition, and engages with today’s generation- who, like the brand, are infused with the drive of constant progress and perfection.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/27/Nestle.jpg?itok=Yk8kYeJT
Nestlé supports 'Nanhi Kali'; changes packaging

Nestlé India has changed the packaging of its iconic brands, Maggi, Nescafe and Kitkat to support girl child education in association with Nanhi Kali, an NGOs imparting education to underprivileged girl children across India.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/24/Untitled-1_2.jpg?itok=MCFWy-vX
Maxus, Tata Sky shine at Big Bang Awards

The award-winning spree for the GroupM company Maxus continues as it won the Social Media Agency of the year at the Big Bang Awards 2016 (constituted by Advertising Club of Bangalore). Tata Sky was named 'Client of the Year' for its innovative 13-episode TVC campaign called Daily Dillagi.

MAM Media and Advertising AD Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/09/24/Untitled-1_0.jpg?itok=rEOZqSB1
Dentsu, Facebook: the problem with digital advertising

The advertising industry just got a hit in an area where it hurts: right in the solar plexus. Last week, Japanese ad agency Dentsu which accounts for a lion’s share of advertising in Japan, admitted that it had overcharged (read: “fleeced”) digital clients to the tune of Yen 230 million between...

MAM Media and Advertising AD Agencies

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories