MAM
HUL trims ad spend by 7% in Q3
MUMBAI: Joining its peer Colgate-Palmolive, FMCG giant Hindustan Unilever Ltd (HUL) has cut down its ad spends in the fiscal-third quarter ended December amid pressure on margins and a slowdown in the economy.
The largest ad spender in India trimmed its promotional budget by 7.14 per cent in the quarter to Rs 6.9 billion compared to Rs 7.43 billion in the earlier year.
The year-on-year percentage of sales to advertising and promotional spending has also decreased from 14.5 per cent in the third quarter of FY‘11 to 11.6 per cent in Q3 FY‘12.
For the nine-month period ended December, HUL‘s ad and promotions spend dropped 7.77 per cent to Rs 19.74 billion as against Rs 21.41 billion a year ago.
Percentage of ad spend to sales during this period also took a blow, dropping to 11.84 per cent from 14.76 per cent.
HUL launched two products in the personal care category in the third quarter of the current fiscal – Dove Nourishing Oil Care shampoo and Sure for Men. In the foods category, it launched Bru Gold coffe, Brooke Bond Taj Mahal Green Tea and a range of Brooke Bond Taj Mahal tea bags in various flavours. In its water category, HUL launched a new variant of Pureit water purifier.
The company launched a promotional exercise by the name Joy of Giving Week and also celebrated Global Handwash Day both in October 2011.
Fuelled by volume growth, sales rose 16.5 per cent to Rs 58.53 billion from Rs 50.27 billion in the corresponding quarter a year ago. Sales and detergents put up a stronger performance than personal products.
Competitive pressures, however, could challenge the sustainability of this volume growth.
| Company Name | Q3FY12 Ad Spend (in Rs) | Ad/Sales Ratio (%) |
| HUL | 6.9 billion | 11.6 |
| Dabur India Ltd | 1.98 billion | 13.6 |
| Marico | 1.34 billion | 12.5 |
| Colgate- Palmolive | 1.07 billion | 16.1 |
Marico and Dabur India are the two FMCG companies that posted an increase in A&P spends in Q3FY12 of 48.63 per cent and 46.9 per cent respectively while Colgate-Palmolive cut its spends by 10.86 per cent.
MAM
McDonald’s India CBO Arvind RP exits after seven years
The chief business officer exits after a stint that took him from marketing to leading South India operations.
MUMBAI: Arvind RP is out. The chief business officer of McDonald’s India has stepped down from the fast-food giant after more than seven years, and is currently serving out his notice period.
It is a significant exit. Arvind joined McDonald’s India in 2019 as director of marketing and communications, a fairly conventional brief, but steadily accumulated responsibilities until he was running the profit and loss for the company’s entire South India operation, with store operations, new outlet development, marketing, human resources and training all falling under his remit.
In a LinkedIn post, he was characteristically warm about his time there. “Looking back, many of the moments that stand out in my career aren’t just about outcomes or milestones; they’re about the incredible people who were part of the journey,” he wrote, adding that he had been “lucky to be surrounded by fantastic team members.”
Before McDonald’s, Arvind spent six years at skincare chain Kaya, where he led marketing and analytics, overseeing brand-building, product innovation and digital and customer relationship management. His career spans a remarkable sweep of Indian industry: retail at Levi Strauss & Co, consumer goods at Britannia Industries, and automobiles at TVS Motor Company, where he also took an international posting in Jakarta.
With 25 years of experience across quick-service restaurants, beauty, fashion and FMCG, Arvind will not be short of takers. The only question is who moves first.
