Top Story


Home >> Advertising >> Article

Hindustan Levers adspend up by 18%

Font Size   16
Hindustan Levers adspend up by 18%

Advertising and sales promotion expenditure of Hindustan Lever (HLL) soared to a record Rs 823.82 crore during the year ended December 2001.

In the previous fiscal, the company had spend Rs 696.58 crore. The spending on advertisement sales promotion, which is up 18.27 per cent in 2001 considered to be on a higher side as FMCG companies are facing acute demand recession.

The fierce competition among all personal care companies, particularly to maintain the market shares in shampoo, toothpaste, detergent bath-soaps and hair-dye, has compelled HLL to go for large ad spending.

The higher spending on advertisement has, however, not instrumental to increase the sales/ad spend ratio of HLL.

The company generated sales of Rs 13.32 on a rupee spend on advertisement and sales promotion. The current ratio has been the lowest last five years. In 1999, the company had net sales of Rs 13.75 on a rupee spending on advertisement and sales promotion.

The company had sales/advertisement ratio of 16.20 times in 1997. The ratio dropped to 14.17 times in 1998 and moved up to 15.22 times in 2000.

HLL’s spending on advertisement and sales promotion rose 141 per cent or Rs 341.87 crore since December 1997. The company’s sales during the period rose 40 per cent or by Rs 3,164 crore.

Though, HLL’s sales to advertisement rate drop considerably, the net profit advertisement ratio moved up considerably. In 2001, the spending on advertising accounted for 50.19 per cent of the net profit. In 2000, ad spend accounted for 53.17 per cent of the net profit and in 1998 it was 68.96 per cent of the net profit.

The company’s advertisement spend accounted for 83.06 per cent in 1997.

Source: Business Standard


Our typical marketing budget is usually 10 per cent of the topline spend

There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=

The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.

<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...

Under the watchful eye of Walt Disney, Bindass undergoes brand repackaging with a fresh new show ‘Dil Buffering’ simulcast across its linear and social media platforms on September 29 and will launch...

Apart from the mandate for the first project which is the Ashiana Town in Bhiwadi, Tomorrow and InterTwined will deliver brand solutions across film, print, radio, outdoor and activation besides provi...

Despite advertising picking up after a slow Q1, regional FM players still feel that the lingering effect of GST, RERA, demonetisation will still make its impact felt during the upcoming festive quarte...