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=-wWNV2Ti

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/2021/08/02/photogrid_plus_1627904348277.jpg?itok=yxLp-L-n
ixigo introduces six independent directors to the board panel

Mumbai: Online travel app ixigo on Monday announced the appointment of six independent members to its board of directors.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/02/acko-perimeter-board.jpg?itok=g4PbFpKv
Dentsu Webchutney wins digital & social media mandate for ACKO

MUMBAI: Dentsu Webchutney, the digital creative agency from the house of dentsu India, has won the social media mandate for digital insurance policy provider, ACKO General Insurance. The account was won following a multi-agency pitch. In four years, the insurance brand, with its entire operations...

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/02/photogrid_plus_1627897161520.jpg?itok=eIcm2PmC
Manish Sharma becomes chairman and president at Panasonic India

Mumbai: Japanese electronics major Panasonic Corp on Monday announced the promotion of Manish Sharma to chairman and president of Panasonic India. In his new role, Sharma will assume responsibility for leading the Panasonic operational excellence India, and Panasonic India appliances company,...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/02/photogrid_plus_1627893405465.jpg?itok=y67oBN1h
Glad U Came wins PR mandate for Indulgeo Essentials

MUMBAI: PR and influencer marketing agency, Glad U Came has bagged the PR mandate for Indulgeo Essentials, a luxury organic skincare and haircare brand. The Mumbai-based agency's team will be handling brand enhancement and influencer engagement for the brand.  The agency’s key responsibilities will...

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/02/photogrid_plus_1627892643357.jpg?itok=LuozW62l
Specsmakers names industry veteran S Shriram as VP, sales & marketing

Mumbai: Optical retailer Specsmakers has announced the appointment of S Shriram as vice president – sales & marketing with a deep focus on the upcoming business prospects. In his new role, Shriram will oversee store operations, business expansion and handle strategic marketing.

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/02/ruchikaaa.jpg?itok=IG1yKaSB
Luminous Power Technologies elevates Ruchika Gupta to CMO

Mumbai: Luminous Power Technologies has announced the elevation of Ruchika Gupta to chief marketing officer (CMO). She earlier held the position of assistant vice president, marketing communications at the company. According to Luminous, Gupta will now be at the helm of the marketing function and...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/02/sab.jpg?itok=E4_-q0JQ
Genero onboards Subbaraju Alluri as MD for Asia

Global creative platform Genero has announced the appointment of Subbaraju Alluri as managing director (MD) - Asia, based in Singapore. Alluri joins Genero less than a year after joining communications firm Redhill Communications after spending more than 19 years with Grey Group.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/07/31/photogrid_plus_1627722831149.jpg?itok=22xU-7KC
Hyundai joins forces with BBC Future for more sustainable world

Mumbai: South Korean automotive major The Hyundai Motor Company will be the exclusive sponsor of BBC Future Planet throughout the month of August. With the sponsorship, the carmaker aims to reach global audiences looking to create a more sustainable world. Launched in February 2020, BBC Future...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required