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Colgate-Palmolive hikes ad spend to Rs 194 crore 

Namrata Singh  
Mumbai: Dental care major Colgate-Palmolive (India), in a bid to strengthen its leadership position, accelerated its expenditure on advertising to touch Rs 194 crore during the year ended March 2000.

This represents an 18 per cent growth over the previous year's expenditure of Rs 164 crore. The ad-spend as a percentage of sales has grown from 16 per cent last year to 17 per cent during the fiscal 1999-2000.The growth in ad-spend during 1998-1999 over fiscal 1997-98 was 10 per cent. Analysts had predicted that Colgate's advertising expenditure would cross Rs 180 crore during 1999-2000.

According to the company, Colgate-Palmolive invested a huge Rs 194 crore as marketing investment to fuel further growth of its brands. ``Once again, Colgate-Palmolive has reasserted its omnipresence in the Indian consumer products market, retaining its position as the No.1 brand across categories for the seventh time in the past eight years,'' the company hassaid in its annual report.

Major milestones achieved during the year: Colgate Dental Cream market share is up by two per cent between April 1999 and March 2000; market share of Colgate Tooth Powder crossed the 50 per cent mark in March 2000; and Colgate toothbrushes recorded a volume growth of 27 per cent.

The company re-launched Palmolive Soap in February-for which the market response has been positive, the company says. Also, the flagship brand Colgate Dental Cream was revitalised and enriched with the `super shakti' formula.

The strengthening of its marketing muscle comes in the wake of Vikram Kaushik taking charge as VP (marketing) of the company. Kaushik, who was earlier vice-president (marketing & exports) at Britannia Industries, has been appointed additional director by the board of Colgate-Palmolive effective July 1, 2000. The move is in recognition of Kaushik's outstanding experience of 26 years in the field of sales and marketing, the company says.The company is of the opinion that the investment made in strategic marketing and infrastructure resulted in the strong 11 per cent unit volume growth during the year.

With the initiatives undertaken and the anticipated growth in demand for its products, "the board is confident that the company will record a reasonable sales and profit growth during the current year". The company reported a sales growth of 12 per cent to Rs 1,121.20 crore, and a 13 per cent growth in net profit to Rs 51.79 crore during the year 1999-2000.

Analysts feel that the growth in advertising and marketing expenditureby Colgate-Palmolive is expected to be on the upswing, considering that the multinational faces a tough competition with rival Hindustan Lever in the Rs 1,000 crore toothpaste market.

The recent splurge of new advertising revolving around "the big super shakti" have already been unleashed by Colgate-Palmolive. The media plan to covers not only television but also full-page print ads in leading dailies.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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