The Hindu Business Line : `Sensex 30 companies up promotional expenditure'

A FEDERATION of Indian Chambers of Commerce and Industry (FICCI) survey's findings show that Sensex 30 companies have had an increase in promotional expenditure.

However, this need not imply that the advertising firms have directly benefited from this trend, the Chamber said.

About 53.84 per cent of the total respondents in the survey have said that their total expenditure on promotional activities have gone up in the last one year.

Further, the survey results show that the print media emerges as the largest shareholder of the total promotion mix, whereas, outdoor activities, including events, account for less than one-third of the total promotion mix.

"The study of the Sensex 30 companies further validates this point - we see that the advertisement costs of these companies have increased by 3.31 per cent between 2000 and 2001," the Chamber said.

Among them, Dr. Reddy's Laboratories has posted the highest percentage increase in advertisement costs between 2000-2001.

The constraints faced by the firms are from the demand side, and for the companies, `expenditures' on promotional activities is an investment — they are pegging up their expenditure on promotional activities to ensure greater mobility and better target reach of their brands, in an attempt to capture a larger share of a buyer's market, the Chamber added.

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