MAM

Q4-16: Colgate marketing spends up 28.4 percent

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2016/06/22/colgate.jpg?itok=FDQrtLYN

BENGALURU: Colgate-Palmolive (India) Limited (Colgate-Palmolive) spent 28.4 percent more towards advertisement and sales promotion (ASP) in Q4-16 (quarter ended 31 March 2016, current quarter) at Rs198.37 crore (18.1 percent of Total Income or TI) as compared to the Rs154.49 crore (15 percent of TI) in the corresponding year ago quarter (year-over-year or y-oy-). The Indian FMCG major?s ASP in the current quarter was 25 percent higher quarter-over-quarter (q-o-q) as compared to Rs 158.65 crore (15.6 percent of TIO) in the immediate trailing quarter.

During the year ended 31 March 2016 (FY-16, current year) Colgate-Palmolive spent 1.4 percent more towards ASP at Rs 724.20 crore (17.4 percent of TI) as compared to Rs 714.25 crore (17.9 percent of TI) in the previous year.

Note: The unit of currency in this report is the Indian rupee - Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

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

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

Colgate-Palmolive managing director Issam Bachaalani said, ?We strongly believe in developing innovative new products which is a key driver of the company?s long term sustainable growth. Long term growth potential for ?oral care products? remains positive and is anticipated to drive progression in the next five years. This can largely be attributed to external factors like increasing disposable earnings, increasing lower and upper middle class strata, opportunity to convert under penetrated toothpaste market and rising oral health awareness and solution in the segments.?

Successful new product launches included Colgate Pain Out, Colgate 360 Toothbrush ? Gold and Black, Colgate Total Charcoal Deep Clean, Colgate Active Salt Neem, Colgate Zig Zag Black and Colgate Sensitive Pro-Relief (CSPR) Enamel Repair, and Palmolive Hand wash.

Trends

Over a 16 quarter period starting Q1-13 until Q4-16, the company?s ASP showed a linear increasing trend in terms of absolute rupees as well as in terms of percentage of TIas per the figure (A) below. Colgate-Palmolive?s ASP was highest during this 16 quarter period in Q2-15 at Rs 201.00 crore (20.1 percent of TI), while the second highest ASP spend was in Q1-6 at Rs 200.50 crore (19.8 percent of TI). Its ASP spend in Q4-16 is hence the third highest ASP spend during the period under consideration.

The company reported 6.8 percent y-o-y growth in TI in Q4-16 at Rs 1,091.11 crore as compared to Rs 1,022.00 crore and was 8.3 percent higher q-o-q as compared to Rs 1,000.36 crore. For FY-16, TI increased 4.5 percent to Rs 4,162.29 crore from Rs 3,891.94 crore in FY-15. TI shows a linear increasing trend during the 16 quarter period under consideration.

Please refer to the figure (B) below. Colgate Palmolive reported profit after tax (PAT) of Rs 145.89 crore (13.4 percent of TI) for Q4-16, which was 10.8 percent lower y-o-y as compared to Rs 163.63 crore (16 percent of TI) and 8.5 percent lower q-o-q as compared to Rs 159.41 crore (15.8 percent of TI). The company?s PAT showed a slow linear increase in PAT in absolute rupees, but a marked linear decline in terms of PAT as percentage of TI over the 16 quarter period under consideration.

For FY-16 PAT increased 3.1 percent to Rs 576.51 crore (13.9 percent of TI) from Rs 558.98 crore (14 percent of TI) in the previous year.

Among the major brand building and ATL marketing initiatives by the company inf fiscal 2016 include:

On 5 April 2016, Colgate-Palmolive announced Virat Kohli, India?s T20 cricket captain as the new ambassador of Colgate Super Flexi toothbrush. On 17 March 2016 the company announced Ranveer Singh as the new brand ambassador for Colgate MaxFresh. TVC campaigns featuring both the icons and the respective products were launched.

On 3 August 2015, after two months of a nationwide hunt, the Colgate Visible White Makeover Contest reached its culmination and announced winners. These 10 winners of the contest received personal grooming tips from the brand ambassador Sonam Kapoor at a makeover session in Mumbai.The campaign rolled out in March 2015, when consumers across the nation were encouraged to click a picture of their dazzling white smile and upload it on a Facebook URL and through WhatsApp. Furthermore, the grooming session was filmed by youth television channel, Bindaas and aired on 9 August.

Actress and former Miss Universe Lara Dutta had been roped in as the brand ambassador fo rColgate Total Charcoal Deep Clean on 21 July 2015 and a new TVC was launched for the product.

On 15 July 2015, Colgate MaxFresh launched a new age energetic music video, which teamed up the dancing flair of Telugu superstar Allu Arjun with the vocal prowess of singer Anushka Manchanda. The track is called taazgi ka dhamaka and has been directed by renowned filmmaker Pradeep Sarkar.

On 9 June 2015, the oral care player launched a toothpaste to address the inflammatory gum problem of pyorrhea ? Colgate Active Salt Neem. Colgate signed Bollywood actress and former Miss World Priyanka Chopra as the brand ambassador.

In May 2015, the company launched promotional offer with Baskin Robbins, Gelato and Caf? Coffee Day encouraging consumers to try the efficacy of Colgate Sensitive Original and Colgate Sensitive Pro-Relief and at the same time enjoy their all-time favourite ice cream or coffee.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/17/Conekt_Rohit_Sharma.jpg?itok=REckYYCB
Conekt to connect Indians with quality electronic accessories

What started off as a personal need for two young entrepreneurs, has shaped into a full fledged technology company. Conekt, a gadget and smart phone technology accessories brand has forayed into the already cluttered space of accessories technology where consumers can choose from over 1000 products...

MAM Marketing Brands
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/17/jonty.jpg?itok=9Sup3Jl_
Isuzu Motors signs Jonty Rhodes as Indian brand ambassador

Isuzu motors, Japanese car manufacturer, has signed on former South African cricketer Jonty Rhodes as the brand ambassador to promote the brand and its latest product V-Cross in India. The brand will complete six years on 21 August 2018 in the Indian market.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/17/UCB.jpg?itok=8WZWVqTC
UCB's first social experiment in India #UNITEDBYHOPE

Reaffirming its commitment to challenge social norms and fearlessly address issues focused on secularism and non-discrimination, United Colors of Benetton marked India’s 72nd Independence Day with a digital film titled #UnitedByHope, celebrating India’s unity in its diversity.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/16/money.jpg?itok=7KNzWnjT
Matrimony.com bolsters senior management team to pursue expansion plan

To pursue its ambitious growth and expansion plans, Matrimony.com recently strengthened its senior management team with experienced talent.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/16/mar.jpg?itok=jNxxH45I
The Advertising Club announces the Category Awards for Marquees 2018

The Advertising Club today announced the various sector and special category awards for Marquees 2018.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/16/RIVERS.jpg?itok=TaXS7yhM
White Rivers Media celebrates 6th anniversary

In India, one of the fastest growing independent agencies White Rivers Media has recently completed its six years in social media and digital marketing industry.  

MAM Marketing Brands
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/16/team_1.jpg?itok=AN_y8HiE
The Minimalist strengthens leadership team

The Minimalist, one of the fast-growing design and digital companies, has boosted it leadership team with the appointment of head of interaction design Rohan Saraf, lead, user interface Amit Rajapurka.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/16/wat_0.jpg?itok=kCLmmIa3
WATConsult bags Domino’s India’s digital media mandate

WATConsult, the digital and social media agency from Dentsu Aegis Network India, has recently won the social media mandate for Domino’s.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/08/16/main.jpg?itok=8YOhQkDh
Ad industry calls for regulatory body to monitor plagiarism

Creativity sometimes takes inspiration from past creatives but what if it is an entirely copied one? Plagiarism (or inspiration), is a never-ending burning issue in the advertising world. A little similarity can be overlooked but complete knockoffs are just astonishing.

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories