Advertising/Media
The FMCG sector in India is more robust than it is globally.


By Kajal Sharma - 24 Jan 2024 03:56 PM
According to Sudhir Sitapati, FMCG is the biggest advertiser in India by a wide margin, and advertising is essential to the FMCG sector.According to Sudhir Sitapati, CEO and MD of Godrej Consumer Products, the FMCG business in India is stronger than it is globally, and advertising is the driving force behind this."The FMCG business depends heavily on advertising, and it continues to be the biggest spender on advertising in India. In my opinion, the FMCG industry in India is stronger than it is globally, with advertising playing a major role in this. the top 5 FMCG firms on the list. Speaking at the recently held Subhas Ghosal memorial lecture, Sitapati stated, "Their EBITDA is on average 20–25 percent compared with their global peers at 15-20 percent, and they list at 60X P/E multiples vs. 20X for their global peers."Sitapati thinks that if businesses identify a trend that would propel their share values over the next 12 to 36 months, they will be willing to pay advertising firms, as FMCG is the industry in India that spends the most on advertising.Sitapati made the argument that people in charge of profit and loss, not those in charge of advertising budgets, are the true clients of advertising companies."Even though it meant sacrificing profitability, the first thing I did when I joined GCPL two years ago was drastically raise advertising spending.
Two realizations influenced my personal views on advertising. As the brand manager for Surf Excel, I saw that our sales rates increased a few weeks after a measure dubbed "Proven ad recall" on our Milward Brown brand tracker increased. Put differently, a customer only needed to be able to tell the ad's tale on the spot to beg for further purchases. This idea, in my opinion, should "be famous before you get persuasive." Be renowned for what you sell, don't try to sell," he said."It is better to whisper to many than to shout to a few" has been his second advertising philosophy, and it has to do with the media.brand encroachment He went on to say that penetration, not consumption, is what spurs growth, saying, "My favorite brand in India is Santoor from Wipro. It has bravely kept to large-scale wall murals in order to reach extremely light TV viewers in rural India, all while adhering to its big notion of "Mistaken Identity" for years. Fame > persuasion because salience, not equity attributes, drives penetration, and salience is fueled by having your brand mentally accessible to as many individuals as possible. Regarding media, reach—rather than impact—is what counts, he stated.For a marketing and advertising agency, Sudhir said, building a database is essential because customers want to see figures.