Godrej Consumer Products spent over ₹1,000cr on advertising in FY24
What's the story
Godrej Consumer Products Ltd (GCPL) has ramped up its advertising investment by 47% to ₹1,011 crore in FY24. This move is part of GCPL's strategy to attain double-digit volume growth through brand development and stock-keeping unit (SKU) rationalization. "In line with our strategy of category development, we have made significant investments in advertising," stated GCPL Managing Director and CEO Sudhir Sitapati.
Spending surge
Ad expenditure skyrockets from previous years
The company's expenditure on 'Advertising and Publicity' for the fiscal year (FY) ending March 2024 was ₹1,011 crore, marking a significant increase from ₹687.34 crore in the previous year. "In India, we are now spending over ₹1,000 crore in advertising, from ₹350-400 crore a few years ago," noted Sitapati. This surge in spending demonstrates GCPL's aims to bolster its brand presence and market share.
Process overhaul
Streamlining advertising process achieves savings
GCPL has revamped its advertising process by transitioning from multiple agencies to a single in-house agency, LightBox. "From multiple executions, we are moving to a single execution, shooting differently in the same location with different models for different countries," explained Sitapati. This efficient restructuring has resulted in savings of 40 basis points for the company.
SKU reduction
Reduced SKUs, optimized resources for efficiency
In addition to increasing its advertising spend, GCPL has cut down its overall SKUs by approximately 30%. Raymond Consumer Care, which it acquired last year from the Singhania family with brands like Park Avenue and KamaSutra, has reduced 550 SKUs to just 100. "On people, we also reduced the number of managers overall by creating larger, richer roles and introducing more modern tools," said Sitapati.