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Major companies cut down their adspend

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Major companies cut down their adspend

Hindustan Lever, notched up a sales growth of 5 per cent, but slashed advertising by 6 per cent. ITC too slashed adspend by one per cent when sales moved up by 9 per cent. Bata’s sales dipped by 2 per cent and its adspend was down 13 per cent. Castrol India sales were up a meagre 2.5 per cent and the company slashed adspend by 8 per cent.

In contrast, S Kumars’ sales were up 15 per cent, but money spent on advertising moved up by a whopping 209 per cent to Rs 25.61 crore in the last fiscal compared to Rs 8.29 crore in 1999-00. Birla VXL, stepped up adspends by 137 per cent from Rs 12.49 crore to Rs 29.60 crore.

Indian Rayon did a similar act but in a even bigger scale. It spend Rs 38.41 crore on ads last year which is 455 per cent more than the previous year. This happened because it bought out Madura Coats brands like Louis Philippe, Allen Solly, Peter England and San Frisco. Madura Coats (an MNC once again) saw sales dip 16 per cent and adspend fall 88 per cent.

Satyam Infoway and Infosys too increased adspend by 188 per cent and 197 per cent, respectively.


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