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HUL slashes ad spend by 15.74% in Q1

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MUMBAI: Hindustan Unilever, the Indian unit of Anglo-Dutch Unilever Plc, has slashed its advertising spend for the first quarter by 15.74 per cent, signalling a possible slowdown in the economy.

The largest Indian household products and consumer goods maker has spent Rs 6.33 billion in the quarter ended 30 June 2011, down from Rs 7.51 billion a year ago.

For the full-fiscal ended March 2011, the company had spent Rs 27.64 billion on advertising and promotions.

 

HUL said that advertising spends were stepped up in the personal products and packaged foods segments, while spending on soaps and detergents was calibrated in line with industry trends.

"Advertising and promotion spends at 11.5 per cent of sales remained competitive," the company said.

Return on marketing investments (ROMI) is an area where the company has stepped up focus in recent times.

HUL‘s first-quarter net profit at Rs. 6.27 billion grew by 17.62 per cent.

 

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