MAM

GlaxoSmithKline healthcare Q2-2014 marketing spend down 24 per cent q-o-q

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2014/09/01/gsk.jpg?itok=S77hmCc-

BENGALURU: Nutritional products and OTC drug major GlaxoSmithKline Consumer Healthcare Limited (GCHL) spent 23.9 per cent less towards advertising and sales promotion (ASP) in the quarter ended 30 June 2014 (Q2-2014) at Rs 141.40 crore (14.6 per cent of Total income from operations or TIO) versus Rs 185.75 crore (16.6 per cent of TIO) in Q1-2014 and just 2.8 per cent more than the Rs 137.56 crore (15.5 per cent of TIO) in Q2-2013.

The company’s nutritional product brands include Horlicks, Boost, Foodles , while its OTC drugs brands include Crocin, Eno and Iodex.

Notes: (1) GCHL’s follows the calendar year and its fiscal ends on 31 December, hence quarter ended31 March is Q1, quarter ended 30 June is Q2, quarter ended 30 September is Q3 and quarter ended 31 December is Q4.

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

GCHL’s TIO in Q2-2014 at Rs 965.97 crore was 13.7 per cent less than the Rs 1119.82 crore in Q1-2014 and 8.5 per cent more y-o-y than the Rs 890.30 crore in Q2-2013. The company’s TIO shows an upward trend over a nine month period commencing Q2-2012 and ending with the current fiscal Q2-2014.

In terms of actual rupees spent, the company’s ASP shows a slightly upward simple linear trend, while in terms of percentage of TIO, ASP seems to have flattened out. The simple average ASP across the nine quarters under consideration is Rs 148.42 crore, which means that the current quarter’s ASP is 7.9 per cent below par when compared to the average of the nine quarters under consideration in this report. Please refer to Fig 1 below.

GCHL’s PAT in terms of absolute rupee value shows an upward simple linear trend, while in terms of percentage of TIO, the linear trend is flat, tapering downwards slightly, a fact that could easily change with a slightly higher than average PAT  in percentage of TIO terms in the next few quarters. The company’s simple average PAT across the nine quarters under consideration is 13.4 per cent of TIO.

GCHL reported PAT of Rs 130.12 crore (13.5 per cent of TIO) in Q2-2104, 24.2 per cent lower than the Rs 171.71 crore(15.3 per cent of TIO) in Q1-2014 and 8.5 per cent more than the Rs 119.96 crore (13.5 per cent of TIO)  reported in the year ago quarter Q2-2013.

GCHL’s analyst presentation says that its domestic sales have grown 10 per cent despite an extremely challenging environment. It has witnessed a 24 per cent drop in export sales due to certain one-offs and slowdown in Bangladesh. Overall, domestic growth can be attributed to a 3 per cent growth in volume and 7 per cent due to increase in pricing.

Strong innovation led re-launches of sub-brands - Mother’s Horlicks, Horlicks Lite and Chocolate Horlicks were re-launched during the quarter. GCHL says that it ran new impactful campaigns on Mother’s Horlicks and Chocolate Horlicks, and has added focus on digital marketing during the current quarter.

Click here to read the financial report

Click here to read the unaudited financial report

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