Data for 2002
from AC Nielsen Retail Audit shows that there are certain sectors
that are clearly in the doldrums. The table below suggests that
consumers consumed more of food items like Biscuits and Edible
Oil.
Table 1:
| |
%Change
(2002 over 2001) |
|
Value
|
Volume
|
Ad
Spends
|
| Biscuits |
+10.3
|
+11.6
|
+71%
|
| Refined
Oil |
+25.0
|
+12.0
|
+7%
|
| Packaged
Tea |
-9.4
|
-9.2
|
+35%
|
|
|
|
|
| Source |
AC
Nielsen Retail Audit |
TAM
ADEX* |
In
contrast, FMCG categories like Soaps, Detergents and Washing Powders
came in for a sharp decline as shown in Table2. A spate of problems
including promotions, price-offs, freebies and buy-one-get-one-free
offers are being blamed for the degrowths in Soaps and Detergents.
But the trend is extremely worrying! These are the categories
that put in sackfull of Rupees every year in the TV industry.
If they are not getting results after increasing their budgets,
the way they have last year, what does the future hold? Will these
categories continue to pour monies in or will they choose the
dreaded 'BTL' (Below-The-Line) routes?
Table
2:
| |
%Change
(2002 over 2001) |
|
Value
|
Volume
|
Ad
Spends
|
| Washing
Powders/liquids |
-2.8
|
-5.4
|
+65%
|
| Detergent
Cakes/bars |
-0.6
|
-2.9
|
+116%
|
| Toilet
Soaps |
-6.0
|
-11.0
|
+7%
|
|
|
|
|
| Source |
AC
Nielsen Retail Audit |
TAM
ADEX* |
If we move
to a different industry - Pharma, which contributes around 800
million rupees to the TV & Print media, the results are just as
appalling! It again brings us to the grim reality that increases
in ad spends don't necessarily guarantee increase in category
sales as shown in Table3.
Table 3:
| |
%Change
(2002 over 2001) |
|
Value
|
Volume
|
Ad
Spends
|
| Antiseptic
cream |
-
4.0
|
-9.0
|
+14%
|
| Antiseptic
Liquids |
-1.3
|
-5.7
|
+14%
|
| Analgesics/cold
tablets |
-8.5
|
-16.0
|
+13%
|
|
|
|
|
| Source |
AC
Nielsen Retail Audit |
TAM
ADEX* |
So what's the
future hold? Will the budget change anything? Will consumers start
consuming more of FMCGs? Will companies stop using mass media and
turn to BTL activities? The S-Group will continue to bring you more
papers on the same. Watch this space for more!
Atul
Phadnis, director, S-Group, TAM Media Research
Sources used : AC Nielsen Retail Audit & TAM TV+Press ADEX
|