Proctor & Gamble behind in winning the India franchise
Wednesday, December 28, 2011
P&G India added A&M expenses to 37% of Sales in the period to March 2011 as it plans a new look entry into its strong product categories in the Indian market, trying to take out the resurgent consumer staples major Unilever. P&G India despite commitments to India and China has revenues below $1 bln in the Calendar 2011 as well after scoring $710 mln in March 2011
Unilever has managed wafer thin margins on its exteneded distribution network as it keeps marketing spends below 20% while ITC has been able to build 3-4 $1 bln brands in the Indian retail lifetyle markets and Ashirvad in Consumer staples
Unilever india has posted nearly $4 bln sales in the same period and the drop in Ad spend borught back profits by almost 5% P&G's late introduction of value market brands like Tide, also led to a price and advertising war between the two, but P&G is still way behind as Modern retail almost moves to a different horse in the subcontinent with cola war like situation roping in Dabur, HUL P&G ITC and others into a different orbit in their negotiations with the Modern retail channel( supermarkets etc)
P&G will have to go much further than the $250 mln it spent in India last year and a % of revenues calculation is hardly the right parameter
Labels:


0 comments:
Post a Comment