Godrej Consumer spends over ₹1,000 crore on FY24 advertising

Godrej Consumer Products (GCPL) significantly increased its advertising investment by 47% to ₹1,011 crore in FY24 for the domestic market. This increased spending is coupled with a 30% reduction in SKUs as part of a rationalization process aimed at streamlining the product lineup for better efficiency and focus on core offerings. GCPL, which targets double-digit volume growth, is directing more resources towards its brands, automation, and SKU rationalization, with a strong emphasis on simplification, as highlighted in its latest annual report.

"In line with our strategy of category development, we have made significant investments in advertising. We were the fifth largest advertiser in India in 2023, up from number 17 in 2021. We are also increasing our investments in distribution," said GCPL Managing Director and CEO Sudhir Sitapati.

GCPL's expenditure on 'Advertising and Publicity' reached ₹1,011 crore for the financial year ending March 2024, marking a 47% increase from ₹687.34 crore the previous year. "In India, we are now spending over ₹1,000 crore on advertising, compared to ₹350-400 crore a few years ago, which represents a substantial increase. We found that our categories were being managed differently around the world, with varied advertising agencies and production methods," Sitapati added.

"From multiple agencies, we moved to a single agency, which is our in-house agency, the LightBox," Sitapati explained. He added that "from multiple executions, we are moving to a single execution, shooting differently in the same location with different models for different countries."

On a consolidated basis, including foreign markets like Indonesia, Africa, the US, and others, GCPL allocated ₹1,336.12 crore to advertising and publicity. Additionally, Sitapati noted that "we have reduced our SKUs overall by roughly 30 percent."

According to the report, GCPL has focused on resource optimization and operational efficiency by implementing a stock-keeping unit (SKU) rationalization strategy across its product lines. This approach prioritizes high-performing products in line with the company's strategy.