MAM

Q4-16: Colgate marketing spends up 28.4 percent

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2016/06/22/colgate.jpg?itok=RUBbnCT2

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 Café 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

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/26/img_26012022_120917_800_x_800_pixel.jpg?itok=z2_6JZiB
Glad U Came bags PR Mandate for Huedee

Mumbai: PR and influencer marketing agency Glad U Came has bagged PR mandate for Huedee, India’s first tie-dye brand.  “Our young, dynamic, and agile team's synergies match Huedee's which is an added plus point," commented Glad U Came founder Maddie Amrutkar. "We look forward to create some amazing...

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/26/img_26012022_120042_800_x_800_pixel.jpg?itok=89oJDGv6
Astral Adhesives celebrates 25 years of Bondtite with its first campaign

Mumbai: Astral Ltd's adhesives manufacturer Astral Adhesives has launched a nationwide campaign for its epoxy adhesive brand - Bondtite. The TVC is conceptualised by The Womb in co-operation with Astral Adhesives team and it is in sync with Republic Day which unifies India.

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/26/parleg.jpg?itok=eriUOhyB
Parle-G reminisces about India’s journey on 73rd Republic Day

Mumbai: Reminiscing the yesteryears of India’s redefining moments, food company Parle Products celebrates the spirit of a sovereign India in its Republic Day film. Tracing the journey of its flagship brand Parle-G, the film depicts the journey of the homegrown brand as the country evolved from...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/26/11.jpg?itok=iBjLKNNO
Brands rekindle patriotic fervour, as the nation celebrates 73rd Republic Day

The nation marks 73 years of its transition to a republic on 26 January. To commemorate the day on which the Constitution of India came into effect, brands have come out with varied campaigns and initiatives that celebrate the important day.

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/25/img_25012022_180049_800_x_800_pixel.jpg?itok=rS1g1fgR
L&K Saatchi & Saatchi wins integrated creative mandate of Embassy

Mumbai: Real estate company Embassy Group has roped in L&K Saatchi & Saatchi as its creative partner. The agency would begin its partnership with the real estate group by managing the integrated creative mandate for its premium residential portfolio Embassy Springs.

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/25/img_25012022_164330_800_x_800_pixel.jpg?itok=jY-B7Ci_
ICICI Lombard names Sheena Kapoor as marketing, corporate communications & CSR head

Mumbai: Private general insurance company ICICI Lombard has named Sheena Kapoor as its new head - marketing, corporate communications and CSR.   In this role, Kapoor will focus on developing and strengthening corporate advertising and branding, customer-oriented awareness strategies, across all...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/25/img_25012022_145849_800_x_800_pixel.jpg?itok=MR2yWbUW
CredAvenue onboards Abhishek Mehrotra as its CHRO

Mumbai: Homegrown debt markets platform CredAvenue has announced the onboarding of Abhishek Mehrotra as chief human resource officer (CHRO). In this role, Mehrotra will be responsible for leading the company’s human resource function, thereby bolstering CredAvenue’s people culture while cultivating...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/25/img_25012022_163430_800_x_800_pixel.jpg?itok=uEHMopYC
Kiran Anthony, Mahesh Gharat step down as Ogilvy South CCOs

Mumbai: Ogilvy India (South) has announced changes in its creative leadership with chief creative officers (CCOs) Kiran Anthony and Mahesh Gharat having put in their papers and deciding to move on from the agency. Gharat will be moving into a full-time direction and Anthony will continue to lead Vi...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/25/img_25012022_123748_800_x_800_pixel.jpg?itok=83s9geEf
Amin Lakhani elevated as Mindshare CEO, Parthasarathy Mandayam is GroupM CSO

Mumbai: GroupM, the media investment group of WPP on Tuesday announced the appointment of Parthasarathy Mandayam (Maps) as GroupM South Asia's chief strategy officer (CSO) and Amin Lakhani, who is elevated to the role of Mindshare South Asia's chief executive officer (CEO), which was earlier led by...

MAM Media and Advertising People

Sign up for our Newsletter

subscribe for latest stories

* indicates required