Top Story

e4m_logo.png

Home >> Advertising >> Article

Top firms defies slowdown, increase spending on promotional activities

27-June-2002
Font Size   16
Top firms defies slowdown, increase spending on promotional activities

Among the BSE 30 index companies, Dr Reddy’s Laboratories has posted the highest percentage increase in advertisement during 2000-01.

The general slowdown in the economy has not deterred these select majors in the Fast Moving Consumer Goods (FMCG), pharma and electronics sectors from expanding their reach through promotional activities, says a quick survey conducted by the Federation of Indian Chambers of Commerce and Industry for 2000-01.

The print media has emerged the largest source for promotional activities for corporates followed by outdoor promotional activities and television. As for the product mix, the print media captured 37 per cent of the total spending on promotional activities, out door catering had a 31 per cent share while television had a 24 per cent share. Web-based promotional activities had a minuscule five per cent share.

The survey conducted among the 38 bigger companies (predominantly FMCG firms) says that around 54 per cent of respondents increased their spending on promotional activities and around 27 per cent respondents maintained the spending at previous year’s level. Only 19 per cent of respondents said their total expenditure on promotional activities went down.

According to the survey constraints faced by firms are on the demand side, and companies are investing on promotional activities to ensure greater mobility and better target reach of their brands, in an attempt to capture a larger share of a buyers’ market.

In section II of the study, the Ficci survey has categorised the companies into three categories. Type A companies are those with increased level of investments, Type B companies having the same level of investments and Type C companies showing a decline in investments over the last one year.

Among the Type A companies, 50 per cent of the companies increased their expenditure on promotional activities. What’s important is that among the Type C companies, despite the overall decrease in investments, spending on promotional activities has gone up in 66.66 per cent of the respondents.

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

Launches third phase of TVC campaign ‘Think it. Done’

Based in Mumbai, Usha has nearly two decades of experience in the Indian media and entertainment sector and will serve as a strategic advisor to H+K’s diverse portfolio of clients with a special empha...

Report based on media channel data in 96 countries and detailed findings from the world‘s key ad markets, which between them account for approximately two-thirds of the value of global advertising tra...