Godrej Consumer Products Boosts Ad Spend By 47%

Godrej Consumer Products (GCPL) increased its advertising investment by 47 per cent to Rs 1,011 crore in FY24 for the domestic market. This surge coincides with a 30 per cent reduction in SKUs as part of their rationalisation efforts. Aiming for double-digit volume growth, GCPL is channelling more resources towards brands, automation and SKU rationalisation, focusing on simplification as emphasized in their latest annual report.

"In line with our strategy of category development, we have made significant investments in advertising. We were the fifth largest advertiser in India in 2023, up from number 17 in 2021. We are also increasing our investments in distribution," said Sudhir Sitapati, Managing Director and CEO, GCPL. 

"In India, we are now spending over Rs 1,000 crore on advertising, compared to ₹350-400 crore a few years ago, which represents a substantial increase. We found that our categories were being managed differently around the world, with varied advertising agencies and production methods," he added.

GCPL's spending on 'Advertising and Publicity' soared to Rs 1,011 crore for the financial year ending March 2024, a 47 per cent increase from the Rs 687.34 crore spent the previous year.

"From multiple agencies, we moved to a single agency, which is our in-house agency, the LightBox. From multiple executions, we are moving to a single execution, shooting differently in the same location with different models for different countries."," Sitapati explained. 

On a consolidated basis, encompassing international markets such as Indonesia, Africa, and the US, GCPL invested Rs 1,336.12 crore in advertising and publicity. Sitapati also mentioned, “We have reduced our SKUs overall by roughly 30 per cent.”

The report indicates that GCPL has concentrated on resource optimization and operational efficiency through an SKU rationalisation strategy. This approach emphasizes prioritizing high-performing products in alignment with the company's overall strategy.