MAM

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

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2014/08/30/p%26g.jpg?itok=hiY9yz6K

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/2017/03/22/Ministry_Ayush-ASCI.jpg?itok=pyr8Xpnq
Over 250 complaints of misleading ads about AYUSH products since Jan 2015

NEW DELHI: The Advertising Standards Council of India (ASCI) referred 263 complaints of allegedly AYUSH products related advertisements to the Consumer Affairs Ministry since January 2015, including seven advertisements of herbal medicines in 2016.

MAM Media and Advertising Media Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/22/Woodland-800x800_0.jpg?itok=v8zCy5jP
Season 2 of Woodland's #AgainstAllOdds digital campaign returns

Mumbai: The second season Footwear and apparel and apparel accessories brand Woodland’s #AgainstAllOdds digital campaign is back with highlighting the stories of people who are pursuing offbeat adventure sports in spite of severe obstacles.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/21/Santoor-Femina_1.jpg?itok=t-ppxUD8
Manipal girl Ashna Gurav wins the Santoor Femina Style Diva South 2017

Bangalore : The winners of this year’s Santoor Femina Style Diva South were declared at a glittering ceremony attended by who’s who of the Hindi and Kannada film industry. The evening witnessed 14 gorgeous girls take over the stage at the 5th edition of Santoor Femina Style Diva South 2017 powered...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/21/BARC_0.jpg?itok=qmHu_GyY
Four brands enter the most advertised brands list in week 10 of 2017

BENGALURU: Four brands entered the list of top 10 brands in terms of television ad insertions for week 10 (Saturday, 4 March 2017 to Friday, 10 March 2017) of 2017. The new brands to enter the list of most the 10 advertised brands per week on television in week 10 were: One brand from the phone/...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/21/Jio-Airtel.jpg?itok=AC2HS5x9
Jio takes Airtel to ASCI over network speed ad

NEW DELHI: The telecom war between Reliance Jio and other telecom service providers took a new turn when a complaint was lodged with the Advertising Standards Council of India (ASCI) against broadband tester Ookla's network speed test that said Bharti Airtel has the fastest network speed.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/20/anita%20%281%29.jpg?itok=X4tBD_IG
Kohler retains Havas Media for integrated media business

Kohler has retained Havas Media as its media agency for integrated media business following a multi-agency pitch.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/20/denstu%20%281%29.jpg?itok=iCRK0sA4
Dentsu Webchutney appoints Anil Kumar as EVP

Dentsu Webchutney has roped in Anil Kumar as EVP and branch head. He will be based out of Delhi and will report to Dentsu Webchutney CEO and co-founder Sidharth Rao. Kumar will lead key accounts like Airtel, IndusInd Bank, Canon, Tetra Pack, Hike, Payback, DS Group and ITC amongst others.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/20/Mulshi%20Springs.jpg?itok=XmKDxYkx
Mulshi Springs all over GCC through Masafi

MUMBAI: Masafi, the beverage giant of the Middle-East Asia, has signed a deal with Mulshi Natural Spring Water to distribute the luxury brand in the entire GCC region.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/20/Schneider_0.jpg?itok=M0THcl_M
G.M Pens a new-age design for Schneider

MUMBAI: G.M Pens International Pvt. Ltd., the pioneer in writing instruments, manufacturer and marketer of ‘Rorito’, announced its strategic technological association with world-class expert, Schneider Schreibgeräte GmbH (Germany), for their new-age Product Design & Development. To mark the...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories