MAM

Tata Global Beverages Q3-2014 ad spend at Rs 401 crore

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2014/03/11/Tata-Global.jpg?itok=xWVQ8Az5

BENGALURU: Tata Global Beverages Limited (TGBL) spent Rs 400.76 crore in Q3-2014 towards Advertisement and sales charges (Ad spend). This was the highest Ad spend by the company in the seven quarters staring with FY-2013 until Q3-2014. 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 major brands include Tata Tea, Tetley, Good Earth, Jemca, Vitax, Eight O’Clock, Himalayan, Grand and Laager Roiboos.  The company has signed joint ventures with the global coffee company and brand Starbucks and with Pepsico . TGBL’s JV with Pepsico is Nourishco. TGBL is the second largest Tea company in the world. (Unilever is the biggest tea company in the world and its 100 year old tea brand Lipton that is available in about 100 countries).

TGBL says that it’s ‘Starbucks-A Tata Alliance’ JV has expanded to 34 stores in the country during Q3-2014 with robust store profitability.  Among the winning moments for the company in Q3-2014 were a strong branded tea topline sales performance versus previous year in a slowing market and a continued good performance by its coffee plantations. The company claims a 17 per cent top line growth across the India tea portfolio mainly due to value and volume increases despite decline in tea category. Various consumer promotions were undertaken by TGBL to drive sales growth during the quarter keeping in mind the competition’s aggressive promotions.

Let us look at the Total Net Income from Operations (Op Inc), Total Expense (Tot Exp), PAT and Ad Spend trends by the company from Q1-2013 to Q3-2014 (Note Q-o-q change figures for Q1-2013 with reference to Q4-2012 figures)

As mentioned above, the company’s Ad Spend in Q3-2014 was the highest over seven quarters in terms of money value at Rs  400.76 crore as well as in terms of percentage of Op Inc (19.26 per cent of Op Inc). During the immediate trailing quarter, TGBL’s Ad Spend was Rs 366.37 crore (18.95 per cent of Op Inc), while during Q3-2013, it was Rs 316.02 crore (16.5 per cent of Op Inc).

PAT for Q3-2014 at Rs 119.55 crore (5.75 per cent of Op Inc) was (-33.59) lower than the Rs 180.03 crore (9.31 per cent of Op Inc) in the immediate trailing quarter, but was 48.95 per cent higher than the Rs 80.26 crore (4.19 per cent of Op Inc) of a year ago quarter.

Overall, Figure A shows an upward linear trend for both PAT and Ad Spend. Given the fact that the company said that Q3-2014 was a slowing market and the aggressive moves by the competition, TGBL’s further Ad Spend should be healthy. Also, Figure B shows that Op Inc is also on an upward trend. During Q3-2014, the company reported the highest Op Inc over the seven quarters under consideration at Rs 2080.74 crore, up 7.62 per cent from the previous quarter’s Rs 1934.48 crore and 8.62 per cent more than the Rs 1951.56 crore of a year ago quarter.

TGBL says that its Op Inc growth has been understated due to revenue model for pods and restructuring. Also, its operating EBIT reflects significantly higher advertising and promotion spends as well as investments in new initiatives.

Figure C shows the Q-o-q percentage change in Op Inc, Tot Exp, PAT and Ad Exp.

Over the nine month period ended December 31, 2013, the company’s group income at Rs 5827.68 per cent was 5.93 per cent higher than the Rs  5030.94 crore in the corresponding nine month period of last year. PAT at Rs 411.21 crore (7.06 per cent of Op Inc) for 9M-2014 was 48.46 per cent more than the Rs 276.99 crore (5.03 per cent of Op Inc) in 9M-2013. The company’s Ad spend during 9M-2014 at Rs 1054.75 crore (16.85 per cent of Op Inc) was 13.05 per cent more than the Rs 932.97 crore (16.56 per cent of Op Inc) in 9M-2013. Pease refer to Figures D and E for Op Inc, Tot Exp, PAT and Ad Spend details for HY-2013, HY-2014, 9M-2013, 9M-2014, FY 2012 and FY 2013. All the numbers across all parameters clearly indicate an improvement over the respective time periods.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/17/fugay%20%281%29.jpg?itok=kmsUyQXU
Fugay: Playworx facilitates association with Richfeel

Fugay, the top starrer and the much-awaited Marathi comedy drama film has already hit the screens, and one of the most successful films at the box office this year. ITW Playworx, an arm of ITW Consulting, has facilitated a successful association between Richfeel and Fugay (the much-awaited comedy...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/17/leeco%20%281%29.jpg?itok=-MvDue2i
LeEco India massively slashes workforce, is it the end?

It came in like a storm with booming announcements about the humungous investments ($200 million, according to news reports) it intends to make in content in India for its LeEco content ecosystem.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/17/Red-Chillies.jpg?itok=oLl1MC0_
Digital campaign: Red Chillies wins 'CMO Asia' awards

MUMBAI: Red Chillies Entertainment bagged two awards for Dear Zindagi’s brilliantly executed digital marketing campaign at the CMO Asia's Social Media Marketing Awards. The marketing team won two titles for the film that included- ‘Best Viral Marketing Campaign’ & ‘Best Use Of Social Media In...

MAM Media and Advertising Digital Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/17/Ravi-Kumar.jpg?itok=FO6__J1R
Infosys a 'leader' in magic quadrant for SAP: Gartner

MUMBAI: Infosys, a global leader in consulting, technology, outsourcing and next-generation services today announced that Gartner Inc. has positioned Infosys as a ‘Leader’ in its EMEA and North America 2016 Magic Quadrant reports for SAP® Application Services.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/17/Max-Fashion.jpg?itok=C3w0c1tA
Max Fashion finds 360 'Endless Ways'

MUMBAI: Max Fashion, one of the leading fashion brands in India and the home of everyday fashion, recently executed an innovative and catchy campaign to promote the endless options available across their stores. The “Endless Ways” campaign kicked off with the very first TVC campaign for Max...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/16/Jacqueline-Fernandez.jpg?itok=gfuUgdOJ
Jacqueline is Lee brand ambassador

Lee Jeans, has always been synonymous with innovation in the world fashion scene over the last 128 years. As it’s always been, Lee’s history tells a story of constant progress and innovation. Of change. Of standing out over generations. And for the first time in India, the brand has partnered with...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/16/richard%20%281%29.jpg?itok=TpKkiYiR
Huawei upgrades on Brand Finance list

Huawei advanced to become the world’s 40th most valuable brand in 2017, up seven places from its position a year ago, according to the “Global 500 2017 world’s most valuable brands” list. In its annual ranking, British brand valuation firm Brand Finance, the world’s leading brand valuation firm,...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/16/sam-balsara%20%281%29.jpg?itok=LdYKKE53
TV ads worth Rs 850 cr lost in Nov-Dec, '17 ad-ex forecast at 13.5pc: Pitch Madison Report

The much awaited Pitch Madison Advertising Report 2017 was released at a function held in Mumbai by Crompton Greaves Consumer Electricals MD Shantanu Khosla. Releasing the Report Khosla highlighted to advertisers the importance of truthful advertising. He said, “Truthful advertising is not only...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/15/alpen%20%281%29.jpg?itok=7wtR3yJP
Alpenliebe TVC portrays small moments of joy in everyday life

Alpenliebe Gold, the flagship candy brand of Perfetti Van Melle India, has launched a heart-warming new communication campaign - chhoti chhoti khushiyon ke liye. The new campaign is based on the insight that within families there are always small moments of joy in everyday life, and celebrating...

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories