MAM

Q3-2015: Tata Global Beverages q-o-q marketing spends up 6.3 per cent

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2015/03/16/mam%20brands%20financial.jpg?itok=foJiKLh0

BENGALURU: Tata Global Beverages Limited (TGBL) spent Rs 377.06 crore (17.6 per cent of Total Income from Operations or TIO) towards advertising and sales promotion (ASP) during the quarter ended 31 December, 2014 (Q3-2015), which was 6.3 per cent more than the Rs 354.80 crore (17.5 per cent of TIO) in the immediate trailing quarter, but 5.9 per cent lower than the Rs 400.71 crore (19.3 per cent of TIO) in Q3-2014.

ASP for the nine month period ended 31 December, 2015 (9M-2015) at Rs 1017.66 crore (18.2 per cent of TIO) was 3.5 per cent lower than the Rs 1054.75 crore (19.7 per cent of TIO) in 9M-2014. TGBL is the unifying entity of the Tata Group’s beverages interests under one umbrella.

Note: Rs.1 crore = Rs.100 Lakhs = Rs.10 million = Rs.100,00,000

TGBL’s Q3-2014 ASP was the highest in absolute rupees as well as in terms of percentage of TIO (19.3 per cent) during a 11 quarter period starting Q1-2013 until Q3-2015. During this eleven quarter period, ASP shows an upwards linear trend in absolute rupee spends, while the linear trend in terms of ASP as percentage of TIO is almost flat with a slight upward inclination. (Please refer to Chart A below.)

During this period, the lowest ASP in absolute rupees was in Q1-2013 at Rs 280.56 crore (16.3 per cent of TIO) and lowest ASP in terms of percentage of TIO was in Q1-2015 at 14.9 per cent (Rs 285.80 crore). The simple average ASP percentage of TIO during the period under consideration is 18.7 per cent.

For Q3-2015, TGBL reported Profit after Tax (PAT) of Rs 84.94 crore (four per cent of TIO), which was 35.9 per cent more than the Rs 62.45 crore (3.1 per cent of TIO) in Q2-2015, but 29 per cent less than the Rs 119.55 crore (5.7 per cent of TIO) in Q3-2015. For 9M-2015, PAT at Rs 243.92 crore (four per cent of TIO) was 40.7 per cent lower than the Rs 411.21 crore (7.1 per cent of TIO) in 9M-2014. During the eleven quarter period under consideration, PAT was highest both in terms of percentage of TIO as well as in absolute rupees at 9.3 per cent of TIO and Rs 180.03 crore.

PAT shows a downward linear trend in absolute rupees as well as percentage of TIO during the eleven quarter period in this report. (Please refer to Chart B below.)

Cart C below shows the company’s TIO, total expenditure (TE), PAT and ASP in HY-13, HY-14 and HY-15; in 9M-13, 9M-14 and 9M-15 and in FY-12, FY-13 and FY-14.

During Q3-2015, TGBL’s TIO at Rs 2143.89 crore was six per cent more than the Rs 2021.70 crore in Q2-2015 and three per cent more than the Rs 2080.74 crore in Q3-2014. For 9M-2015, TIO at Rs 6078.70 crore was 4.3 per cent more than the Rs 5827.68 crore in 9M-2014.

TGBL, in its earning release for Q3-2015, says that it continues to strengthen its focus on the green tea category and grow its coffee and water businesses. In India, the company says that it retains market leadership in branded tea and has recorded its highest ever monthly production in December 2014. There is exponential growth in the green tea segment. Tata Global Beverages has a portfolio of green tea brands across consumer segments in India, with Tetley Green Tea and Tata Tea Acti Green.

TGBL claims that in the water segment, Tata Water Plus- India’s first nutrient water, Tata Gluco Plus, available in five flavours and Himalayan natural mineral water, which recently launched a sparkling variant, are seeing good market response and focusing on expanding reach.

Tata Starbucks, a joint venture between Tata Global Beverages and Starbucks, now has 65 stores spread across Mumbai, Delhi NCR, Bangalore, Pune, Chennai and Hyderabad. The stores continue to witness very good customer response. Eight O’ Clock coffee K cups in the USA, are making good progress in the fast growing pods market.

TGBL managing director and CEO Ajoy Misra said, “We will focus on growing segments such as green tea, specialty teas, functional water and pods while continuing to strengthen our core markets & brands, based on key consumer trends. We remain committed to sustainable growth through innovation and strengthening our brands in key markets, in the face of a challenging market environment and economic volatility in some parts of the world.”

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/Hansa%20Research%20Ashok%20Das.jpg?itok=33nD2_TX
HANSA Research ties up with MSW ARS

MUMBAI: Hansa Research and MSW ARS have announced their partnership by launching their communication measurement services in India. “With this tie-up, we bring a significant range of services to the Indian market, thereby helping clients optimise their multimedia communication from the idea stage...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/Navratri.jpg?itok=j19eU9aA
Brands bullish this festive season but not for Navratri

MUMBAI: Marketing mavens are aware that a majority of brand spending in India takes place between August and December every year because of a range of festivals that dot this period. It begins with Raksha Bandhan and chugs ahead with Ganesh Chaturthi and gathers steam in September with Navratri,...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/21/denstu.jpg?itok=xFl58pR4
Dentsu appoints Rahul Sengupta as CCO

Dentsu India, the full-service communication agency from Dentsu Aegis Network, has brought in Rahul Sengupta as the chief creative officer (CCO).

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/21/Untitled-1.jpg?itok=-9drpSTH
The Womb will nurture ASUS' India strategy

MUMBAI: The Womb, an advertising and innovations company, has won the strategy and creative mandate for ASUS India, the Taiwanese leader in technology. The agency is tasked with the communications mandate for both smartphones and laptops business in India. The Womb has initiated work for its...

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/21/Mallikarjun%20Das.jpg?itok=9kwe0GUf
Publicis' co Starcom wins Lenskart media duties

MUMBAI: Starcom, a Publicis Media company, has won the media duties of the eyewear retailer Lenskart. Lenskart has growing business that reaches out to over 1, 00,000 customers a month via a combination of a strong online business as well as ‘home check-up' service. As per industry estimates, India...

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/20/BBH.jpg?itok=0dIZrEuC
BBH bags creative mandate for Smarton

Smartron has appointed BBH (Bartle Bogle Hegarty) as its creative strategy and advertising agency partner after a multi-agency pitch. The agency’s Delhi office will execute the integrated creative strategy for the brand across media.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/20/iprospect.jpg?itok=vAcx-0hl
Intelligent Content vital for branding: iProspect CEO about new solution

iProspect, Dentsu Aegis Network’s global digital performance agency, has launched Intelligent Content – an offering that links production and performance – in India.

MAM Media and Advertising AD Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/20/denstu.jpg?itok=B79FV15-
Dentsu Impact elevates Ramaswamy, to make 'Maruti' a vibrant brand

Dentsu Impact recently restructured its creative department and promoted Anupama Ramaswamy as the national creative director. Ramaswamy has been with Dentsu Impact for over a year now, after joining as the executive creative director.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/19/Pallavi-Goorha-Nisha_Sara_Jose.jpg?itok=W8TGSvvV
PG Communication wins Faber Castell PR mandate

MUMBAI: Faber-Castell India, a leading stationery brand, recently awarded its PR mandate to PG Communication. As part of the mandate, the agency will be providing strategic communications services to further strengthen the Faber-Castell brand equity in India.

MAM Media and Advertising Account

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories