MAM
Report on Shemaroo

Nestle India ad and sales promotion expenses up 44% in 2018

Nestle India has seen average PAT of 10.33 of operating revenue over the past 6 years.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/03/15/Nestle_India.jpg?itok=A4QEx1mw

BENGALURU: Food and Beverages major Nestle India Ltd (Nestle India) spent Rs 729.44 crore or 6.46 percent of its operating revenue towards advertisement and sales promotion expenses for the year ended 31 December 2018. This was the highest spends towards ad and sales promotion (promo) by the company in absolute terms – in terms of percentage of operating revenue, this was the highest percentage that Nestle India has spent towards ad and sales promotion since 2013. Nestle’s India’s ad and sales promotion spends in 2018 were 44.16 percent higher than the Rs 506 crore (4.96 percent of operating revenue).

The figures below indicate Nestle India’s operating revenue and ad and sales promotion expenses growth. The number for 2014 in the first chart is with respect to the number for 2013.

In 2017, the company claimed in an annual report, that it was the first purely food and beverages company in India to cross the milestone of operating revenue of Rs 10,000 crore (Rs 100 billion). The company had reported operating revenue of Rs 10,192.18 crore for 2017.

Nestle India has been a profitable company with average profit after taxes (PAT) of 10.33 percent of operating revenue over the past 6 years (from 2013 to 2018) despite a downturn in 2015. In 2015, the company had a huge setback due to one of its biggest products – noodles sold under the Maggi brand. Operating revenue, profit after tax plummeted. The company had to spend more towards ad and sales promotion for damage control. If one were to neglect the numbers for 2015, the company’s average operating profit was 12.22 percent of operating revenue during five years from 2014 to 2018 excluding 2015.  Its PAT of Rs 1,606.9 crore in 2018 has been the highest in terms of rupees as per well as in terms of percentage of operating revenue at 14.23 percent during the period under consideration.

When comparing Nestle India’s ad and sales promotion expenses with PAT, the average ad and sales promotion spends during the six year period between 2014 and 2018 was 50.48 percent of PAT. If one were to neglect the numbers for 2015 during which the company spent an equivalent of 93.27 percent of its PAT towards ad and sales promotion, the five year average works out to 41.92 percent.

Company speak

Nestle India chairman and managing director Suresh Narayanan said in the company’s annual report, “2018 has been memorable and a year of many ‘firsts’. We started the year on a bright note, as by the end of 2017 we became the first listed pure play food and beverage Company in India to reach a milestone crossing Rs 10,000 crore in revenue. This historic milestone signifies the strength of our 106-year old business in India and will serve as a moment of inspiration as we continue to build for a healthier future. It is clear that a healthier future requires a healthier business and a healthier society, and my team and I are fully committed to this. We continued to build trust with consumers and communities by being responsible, transparent and maintained our focus on building long term relationships.”

“Consumers have always been at the heart of our initiatives. We continued to offer exciting new product categories by introducing NESPLUS Breakfast Cereals, MAGGI Nutri-licious Baked Noodles, MAGGI Dip & Spread, NESCAFÉ Ready-to-Drink Cans, NESCAFÉ É Smart Coffee Machine and EVERYDAY Chai Life,” added Narayanan.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/02/meesho.jpg?itok=6oKaxZXR
Meesho calls on women entrepreneurs to take the social commerce dip

Social commerce platform Meesho has launched a new TVC to create awareness about the wide range of products available on the platform for micro-entrepreneurs to choose from, share with their customers and make earnings towards their small-scale businesses.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/02/wm.jpg?itok=Cih5QsLo
Global washing machine market to exceed $32,000 million by 2026

With the outbreak of Covid2019 and people becoming more hygiene conscious, the global washing machine market is forecast to grow at a rate of over seven per cent during 2021-2026, revealed a report by global management consulting firm TechSci Research.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/02/tata.jpg?itok=u9UVwTjd
What Tata Sky's ‘Khidki’ is all about

Despite the emergence of varied new-age devices to consume content, Indian viewers are still connected to television sets. Drawing upon this fact, leading DTH player Tata Sky has unveiled a new campaign that shows different shades of consumers’ emotions if the screens were looking at them.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/02/amit.jpg?itok=I8noh5aM
Taking the IPL Cricket Live sponsorship was great: Byjus’ Atit Mehta

The Indian Premier League (IPL) provides a fabulous bang for the buck. Many a marketer has testified to its effectiveness over the years and more so recently with the explosion in interest in the tournament.

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/dabur.jpg?itok=7BQ5qoG4
Havas Creative bags creative mandate for Dabur Vedic Suraksha Tea

NEW DELHI: Dabur Vedic Suraksha Tea has awarded its creative communication mandate to Havas Creative. As part of the mandate, Havas will be handling the creative duties for Dabur Vedic Suraksha Tea and all its extensions. The business will be managed out of the agency's Delhi office.

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/gk.jpg?itok=uLLQrMZz
Goodknight Fabric Roll-On readies kids for outdoor playtime

NEW DELHI: As restrictions ease and children begin venturing outdoors again, Goodknight has launched a new digital film for its Fabric Roll-On, a personal mosquito repellent that is made with natural ingredients. The video highlights how along with precautions of post-Covid world, children need...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/3.jpg?itok=WOKbFu-P
Pulse leverages World Compliment Day to praise brands on social media The campaign has been conceptualized by FoxyMoron

Mumbai, 1st March 2021: On World Compliment Day, FoxyMoron (part of the Zoo Media network) partners with Pass Pass Pulse to compliment brands who are leveraging social media to engage with consumers in the most appealing manner. Through a series of smartly curated messages, the confectionery brand...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/2.jpg?itok=92rtHRw4
No more waiting: McDonald’s makes birthdays special for leaplings

Every year, we eagerly look forward to our birthdays. But ever wondered about leaplings – people who were born on 29 February, a date that comes only once in four years? What an unusual day to be born on, right? To make this year special for leaplings, McDonald’s is curating an exclusive menu which...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/surf.jpg?itok=oaUFdLun
Surf Excel on celebrating a socially distant Holi

With Holi right around the corner, Surf Excel, the daag acche hain-brand, has released a special campaign for the festival of colours. The film looks to address the emotional need of connecting with loved ones with a heart-warming story featuring a young child wanting to play Holi with an elderly...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required