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Britannia Inds plans 10% hike in ad spend this year

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Britannia Inds plans 10% hike in ad spend this year

Even as Hindustan Lever Ltd (HLL) is switching over to fee-based compensation system, Britannia Industries Ltd (BIL) is looking at various options to enhance the efficacy of its adspend. This year, the company is also planning to hike its adspend by 10 per cent to promote its products in the Indian market.

On BIL’s future plans, Nikhil Sen, chief operating officer (COO), BIL, said, “We are evaluating new options for our ad agency compensation system with an objective to increase the potency of our company’s ad budget. As of now, we are following the ‘flat fee’ system. “At present, BIL’s advertising is handled by advertising majors Lowe India and Grey Worldwide.

To pump up volumes, the company is now unwrapping an new game plan which includes new packaging strategy. To start with, the company plans to roll out LUPs (Low Unit Pack), which are available at Re one price points, informed Mr Sen. Primarily, the company’s focus will be on promoting ‘out of home consumption’ by offering its brands in easy-to-carry packs.

As for the company’s marketing plans, Mr Sen said, “We will be promoting our brands on three platforms which inlcude health, indulgence and LUPs. We will increase our ad budget in accordance with our top-line growth.”

In the over-crowded branded biscuit category, Britannia Industries and Parle Products Ltd are considered the dominant players. With the entry of HLL’s biscuit brand Modern Energy Biscuits, competition is hotting up in the Rs 2500 crore Indian biscuit markets.

Recently, Britannia realunched its flagship brand ‘MarieGold’ with value additions in a bid to rejuvenate the brand. Along with the relaunch, the company had also revamped the packaging and advertising strategy of the brand in the Indian market. In the dairy product category, BIL is also a major player competing with Nestle and Amul.

According to industry sources, BIL is slowly phasing out its liquid milk brand ‘Britannia Milk Man’ in Delhi. “As of now it is running a skeleton services of distributing Milkman in Delhi,” added sources.


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