Moneycontrol PRO

Parle to step up ad spends to pre-Covid levels this year

The FMCG brand which was the most chosen by consumers in 2021 will continue to focus on penetration and advertising this year.

July 29, 2022 / 09:07 AM IST
Source: Shutterstock

Source: Shutterstock

  • bselive
  • nselive
Todays L/H

FMCG company Parle, which emerged as the most chosen brand in 2021, according to a study by data analytics and consulting firm Kantar, looks to spend more on advertising this year.

The brand had the highest consumer reach point (CRP) at 6,531 million, the study said. CRP is calculated by taking into consideration number of households in a country, percentage of households buying a brand and a brand's consumer interaction in a year.

With more consumers choosing Parle last year, the brand has plans to increase its ad spends this year.

"Last year was a little difficult, so we rationalised our (advertising) spends. This year you will see more advertising from us. Our ad-to-sales ratio, which was 4-5 percent pre-pandemic, was 3-3.5 percent last year. So, it is coming to the pre-Covid levels," said  Mayank Shah, senior category head, Parle Products.

He said the upcoming festive period will be very important. "After two years, people will be stepping out for festivities. We are poised for good festive period, we expect good demand revival and we have started to see that happen. As a result of that we see good amount of advertising investments for festive campaigns," Shah said.


In terms of the medium, digital will be key for the brand. Shah said that in the last three years digital's contribution in the overall ad budget has gone up for Parle.

"In the last three years, there has been a shift in spends to digital which was 10-15 percent of our overall ad budget earlier. Today, almost 25 percent advertising investments is on digital. During the pandemic, it went as high as 40 percent but the contribution of digital is 20-25 percent and TV is 50-55 percent now, he said.

The company which has more than 50-odd brands in its portfolio continued to be the top FMCG brand even during the pandemic years. Shah said that the focus was on availability and penetration.

"They are reaching a large number of people. So, their distribution network is working for them. Also, the pack play is key as they continue to hold on to Rs 2-Rs 5 packs. The lower the pack size the higher the CRP. Both these factors can be attributed to success of Parle and other top brands," said K Ramakrishnan, MD - South Asia at Worldpanel Division, at Kantar.

Last year, the brand saw 14 percent growth in CRP over 2020 and became the most chosen brand for 1oth year in a row.

Amul came in at the second position with a CRP of 5,561 million followed by Britannia, Clinic Plus and Tata Consumer Products with a CRP of 5,370 million, 4,506 million and 2,723 million respectively.

India is possibly the leading market in CRPs with a 9 percent growth at 98 billion CRPs, said Ramakrishnan. "Overall, the consumer reach point has increased as against last year when CRPs had grown three percent due to the pandemic impact and people were not going out to shop so frequency dropped."

He said that the growth was significant in food and beverage categories, followed by health and beauty. Number of brand which grew in consumer reach points also grew last year as 70 percent of brands grew in CRP in 2021.  ​
Maryam Farooqui
Tags: #Companies
first published: Jul 29, 2022 09:07 am
ISO 27001 - BSI Assurance Mark