FMCG companies to spend more on advertising ahead of festive season

Fast Moving Consumer Goods companies are set to spend a lot more on advertising in the coming months of the year.
  • According to a report, customers spend a lot more on FMCG goods in the festive months as compared to the other months of the year.
  • Companies have witnessed their consumer base shrinking due to the impact of demonetization and GST.
  • Big spenders, such as makers of daily grocery products including biscuits, snacks, juices, toothpaste and hair oil, said expenditure on consumer promotions would increase by 15-20% in the September-December period.
  • FMCG companies have struggled a lot due to demonetization and GST and festival season is one of the biggest opportunities to offset this impact.
  • Also, the other factors which will drive the growth in sales include a great monsoon and exposure of the rural population to TV and internet. That will, according to the companies, help in bigger sales figures.
  • Big FMCG companies, including Parle, Marico, Dabur and PepsiCo have big hopes for the festive season and are set to increase their expenditure in the coming months.
  • Along with advertising their existing range of products, the companies are also looking to launch new products. According to the industry trends, companies spend a total of 25% on advertising their new products.
In order to recover the lost ground and to woo customers, FMCG companies will spend at least 20% more on advertising in the coming festive season. This shows that big or small, companies are leaving no stones unturned in order to increase their sales figure.
Source: http://bit.ly/2wF7hL

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