Known for using Bollywood stars and celebrities, including Amitabh Bachchan and Shahrukh Khan, to promote its products, homegrown FMCG major Emami spent Rs 531 crore last fiscal on its branding activities.
Known for using Bollywood stars and celebrities, including Amitabh Bachchan and Shahruk Khan, to promote its products, homegrown FMCG major Emami spent Rs 531 crore last fiscal on its branding activities.
The company — which had over 15 different brand ambassadors such as Hrithik Roshan, Shruti Hassan, Shilpa Shetty, Yami Gautam, Sania Mirza, Parineeti Chopra and Huma Qureshi, among others — spent is 20.2 per cent of its revenue on branding exercise.
“Emami invested Rs 531 crore in brand building and promotions in 2015-16, one of the largest spend in India’s FMCG sector. This investment accounted for nearly 24 per cent of the total costs incurred by the company,” said Emami in its annual reports for FY 2015-16.
In FY 2014-15, the company had spent around Rs 392 crore, which was 17.7 per cent of its revenue and 15.2 per cent of its revenue in FY 2013-14, which was Rs 277 crore. Emami had a consolidated net sales of Rs 2,624 crore last fiscal, which was up 18.3 per cent.
“We have been one of the pioneers when it comes to leveraging the power of celebrity appeal to bring in more customers. It has allowed us to reinforce positive recall for our brands while raising aspirational levels among our customers,” Emami Director Aditya V Agarwal said.
Commenting on the company’s strategy of utilising the brand ambassadors, Emami Director Harsha V Agarwal said: “One of the priorities during FY 2016 was to figure out what was the most effective means of reaching out to or widening consumer base.
This increased our A&P (advertising and promotion) cost by 35 per cent with new brands accounting for nearly 28 per cent of our overall A&P spends.” Among other products, Emami banked on Amitabh Bachchan, Shahruk Khan, Shruti Hassan and Shilpa Shetty for its Navratna brand, while it roped in Hritik Roshan for Fair & Lovely range of face wash and HE range of deodorants.
Emami is one of the pioneers of celebrity endorsement engaging regional state actors and sportsperson. In the 80s it had even initiated the in-film branding in Rajesh Khanna starrer ‘Agar Tum Na Hote’ in which the actor played the role of Chief of Emami.
“When people were exploring the idea of celebrity endorsers, Emami was already a few steps ahead. The company has an army of celebrities from different fields that have vouched for its products for decades,” the company said.
Apart from celebrity endorsements, Emami is also title sponsors over 10 national TV programes and was sponsor of Pro-Kabbadi league.
“Besides, with HD channels gaining prominence, Emami is betting big on IPL to promote its brand,” the company said.