Home industry media-and-entertainment Media Review Initiated by GCPL to Enhance Advertising Strategy
Media And Entertainment
CIO Bulletin
2024-11-08
Godrej Consumer Products takes a classic media review for its Rs 700 crore account kickstarts staking out cost efficiencies through media and advertising strategy given steady sales.
The Mumbai-headquartered Godrej Consumer Products Limited (GCPL) has kicked off a media review for its integrated media as well as advertising account worth approximately Rs 700 Crores. Madison is the incumbent media agency for GCPL, and the company wants to improve cost efficiencies in its media approach.
Harshdeep Chhabra, GCPL’s Global Media Head, emphasized the company’s commitment to optimizing media spending and conducting a compliant media pitch to select the best agency partner for this initiative.
Advertisement expenses of Rs 363.95 crore incurred by GCPL for second quarter of FY 2025 decreased by 0.56 percent as against Rs 365.94 crore in same quarter a year ago. Even with this cut, GCPL grew sales by 7 per cent in India during the quarter.
Company growth in volume and value continued in its India business, although CEO Sudhir Sitapati added that it faced challenges from rising palm oil costs and subdued consumer demand. In Q2 FY 2025 EBITDA grew only modestly, as pressure from palm oil prices and import duties caused inflation.
The media and advertising review currently underway at GCPL indicates a resolve on the part of the company to reinforce its brand equity amidst the shifts taking place in both the domestic and international markets. These include efforts to flatten the cost curve while enhancing the margins through pricing.
This media review comes as another initiative within GCPL aimed at gaining higher clasp and efficiency of media and advertising in the major product segments.
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