MAM

Q1-2015: Bajaj Corp ad and sales promo spend up 7 per cent

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2014/08/04/bajaj_logo_8.jpg?itok=nrtDnjNU

BENGALURU:  Note: (1) Bajaj Corp’s  Advertisement and Sales Promotion (ASP) expense comprises  two parts – Advertisement (AdSp) and Sales Promotion (SPSp). The ASP figures have been obtained from the Company’s investors’ presentations over various quarters and the Ad Exp from its financial results. SP results have been obtained by deducting the Ad Exp from the ASP Exp. The figures in the investors’ presentations have been rounded off by the company and hence are assumed as approximate. Consequently the SP figures are assumed to be approximate.

(2) Bajaj Corp Limited is a subsidiary of Bajaj Resources Limited (BRL) and is an exclusive licensee of the brands owned by BRL for a period of 99 years starting 2008.

(3) Rs 100 lakh = Rs 100,00,000 = Rs 1 crore = Rs 10 million.

Bajaj Corp spent Rs 30.53 crore (15.8 per cent of total income from operations or TIO) towards advertising and sales promotion (ASP) in Q1-2015, which was 7 per cent more than the Rs 28.54 crore (15.5 per cent of TIO) in the immediate trailing quarter and also 7 per cent more than the year ago quarter Q1-2015’s Rs 28.53 crore (16.8 per cent of TIO). Over 10 quarters starting Q4-2012 until Q1-2015, Baja Corp’s ASP shows an upward linear trend in rupee terms, with Q1-2015 registering the highest amount of ASP spend.

In terms of percentage of TIO also, Bajaj Corp’s ASP shows a linear upward trend over the 10 quarters under consideration.  However, the highest ASP in percentage of TIO terms was in Q3-2014 at 17.9 per cent. Please refer to

In terms of percentage of TIO as well as rupee terms, the company’s AdSp in Q1-2015 at Rs 13.17 crore (6.9 per cent of TIO) was 28.7 per cent more than the Rs 10.23 crore (5.5 per cent of TIO) in Q4-2014, but was 12.1 per cent lower than the Rs 14.98 crore (8.8 per cent of TIO) in Q1-2014.

Bajaj Corp’s SPSp in Q1-2015 at Rs 17.36 crore (8.9 per cent of TIO) was 5.2 per cent lower than the Rs 18.31 crore (9.9 per cent of TIO) in Q4-2014 and was 28.2 per cent more than the Rs 13.55 crore (8 per cent of TIO) in Q1-2014.

Bajaj Corp’s Q1-2015 TIO at Rs 191.32 crore is the highest reported across the 10 quarters under consideration. Q1-2015 TIO was 3.7 per cent more than the Rs 184.13 crore in Q4-2014 and was 12.4 per cent more than the Rs 170.23 crore in Q1-2014.

Since Q1-2014, Bajaj Corp’s PAT has shown a downward trend, from a peak value of Rs 49.16 crore (26.7 per cent of TIO) in Q4-2013. In Q1-2014, the company’s PAT at Rs 47.01 crore though lower was higher in terms of percentage of TIO at 27.6 per cent because of lower TIO in that quarter.

However, the downward PAT trend across the three quarters – Q1-2014, Q2-2014 and Q3-2014 seems to have reversed. In Q4-2014, the company’s PAT was Rs 38.31 crore (20.8 per cent of TIO). In the current quarter Q1-2015, PAT was higher by 3.4 per cent at Rs 39.62 crore (20.7 per cent of TIO) as compared to Q4-2014, was 15.7 per cent lower than the year ago Q1-2014 PAT of Rs 47.01 crore (27.6 per cent of TIO).

Bajaj Corp’s mother brand is Bajaj with sub brands/products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan, and creams, soaps, face washes and face scrubs under the brand name Nomarks.

The company had earlier announced that it was focussing on rural penetration to tap the increase in disposable income of rural India and to convert rural consumers from unbranded to branded products by providing them with an appropriate value proposition. The initiative seems to be working.  In its investor presentation for Q1-2015, Bajaj Corp says that in Q1 FY 15 its Bajaj Almond Drops Hair Oil got 39.9 per cent of its sales from rural India.  The company reports volume growth in rural India by 4.4 per cent (Urban + Rural = {-2.7} per cent, hence showing a decline in the urban market) and claims a market share in rural India of 63.5 per cent (urban + rural = 58.5 per cent).

Click here to read investor presentation

Click here to read full financial report

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/gurukul.jpg?itok=bPkYLh9n
Cricketer Yuvraj Singh joins as partner and brand ambassador at Creator's Gurukul

Cricketing icon Yuvraj Singh has become partner and brand ambassador of Delhi-based new-age business space and services provider Creator’s Gurukul, and agreed to be the face-of-the-brand for the next four years.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/suhas.jpg?itok=4sIdtyGy
Rickshaw's design unit nets Future Consumer, Cambay Tiger & BarBar

Mumbai-based creative and communication agency Rickshaw has announced the launch of its design unit so as to cater to client needs and communication requirements.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/Anupam%20Roy_1.jpg?itok=XGD4mlA1
JSW portable slag cement TVC launched

MUMBAI: ITW Playworx, the entertainment, media & communication arm of ITW Consulting, conceptualised and managed the launch of JSW Portable Slag Cement and celebration of Salboni Plant at Kolkata recently.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/Untitled-1.jpg?itok=--vdD5Ui
Brand Street sets up fourth branch in Chennai

MUMBAI: Brand Street India , an integrated marketing agency, continues geographic expansion with the opening of it’s branch in Chennai. This will be the brand’s fourth office in India and second office in southern India after Delhi, Mumbai and Bangalore. The Chennai branch will be headed by Sreeram...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/Aditya_Birla_Fashion.jpg?itok=MSuO2mO0
Aditya Birla Fashion embarks on national expansion

MUMBAI: Aditya Birla Fashion and Retail Ltd.’s Van Heusen Innerwear & Athleisure business has announced a pan-India growth plan in this emerging segment. Since its foray last year, Van Heusen Innerwear & Athleisure has created a strong presence across 1700+ outlets across 80+ towns in South...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/19/guest.jpg?itok=aSc2eH-h
Guest Column: Start-up hacks: A cheat sheet for success

With the convergence of technology and media, we are witnessing tremendous activity in the start-up space.  From content to distribution to broadcast to affiliate opportunities, there is no dearth of new ideas and their backers.  Surprisingly not all of them are covering all their bases to crack...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/24/test.jpg?itok=m4erCRO8
India-Sri Lanka test series net a bagful of ground & instadia sponsors

The folks at India-based sports management firm ITW Consulting are sporting broad smiles on their faces. The reason: a clutch of brands has signed up as on-ground sponsors for the upcoming India vs Sri Lanka test series starting 26 July in the Emerald isle.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/24/ch.jpg?itok=Nyf60UeV
Gutenberg appoints Christina Daniels as director of content for India

Renowned content writer and author Christina Daniels has joined Gutenberg as director of content for India.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/24/tip.jpg?itok=OW-Erj_P
WATConsult gives humorous twist to Motilal Oswal marketing TIP

WATConsult, a leading and awarded digital and social media agency, part of Dentsu Aegis Network along with Motilal Oswal, India’s leading financial service company has launched a digital campaign called #TheOnlyTIP.

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories