Several leading consumer companies in India are enhancing their planned marketing and advertising budgets by 15-20% this festive season, extending through Christmas, following goods and services tax (GST) cuts that take effect September 22. These companies will be looking to attract new customers through lower product prices to drive sales and market share, executives said.
Reliance Retail, LG, Sony, Daikin, Haier, Blue Star, Parle Products, Amul, and V-Mart Retail are among companies set to step up spending from Navratri, which starts later this month, through December, coinciding with the period of highest consumer demand in the country. Automakers Hyundai, Maruti Suzuki, Stellantis India, and Mercedes-Benz India, among others also confirmed the trend.
Sony India is increasing its marketing activities and investments this Diwali season to capture and build on positive consumer sentiment, said Sunil Nayyar, managing director. The company expects sales of its large-screen televisions to grow 5-10% more than its earlier projections.
The GST cuts will reduce taxes on a wide range of products, including cars, two-wheelers, large-screen TVs, air-conditioners, dishwashers, apparel and footwear priced up to Rs 2,500, and multiple daily use items such as biscuits, namkeens, toothpaste, butter, ghee, and toilet soap.
Mayank Shah, vice president at biscuit and confectionery maker Parle Products, said value growth may face pressure despite increased sales due to GST-driven product pack expansions and higher purchases. "So, we must increase our advertising spend than originally planned to grow revenue-led from market share-gain. After all, the October-December period is a big quarter," he said. Parle Products is increasing its budget by 10%, while value retail chain V-Mart Retail will also raise its by 20%.
Hyundai Motor India, the country's second-largest carmaker by sales, is planning a double-digit increase in festive promotional spend over last year.
Virat Khullar, associate vice president, marketing, explained that the carmaker's advertising campaign, featuring brand ambassador Pankaj Tripathi, "has been designed to extend a range of attractive benefits and irresistible offers across product portfolio."
Stellantis India, which sells Jeep and Citroen vehicles, is boosting regional campaigns across print, TV and radio, with CEO & MD Shailesh Hazela noting, "I wouldn't call it our highest spend since we entered India, but compared to last year, the increase is significant. All I can say is-it's a huge amount."
At Reliance Retail, as much as 80-90% of the fashion business is covered under the revised lower GST slab. AC manufacturers like Daikin and Blue Star are utilising unused budgets from the summer quarter, which was hit by unseasonal rains. "Every year we do a festive campaign around Diwali, but this year, it will be from Navratri itself," said B Thiagarajan, managing director, Blue Star.
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Reliance Retail, LG, Sony, Daikin, Haier, Blue Star, Parle Products, Amul, and V-Mart Retail are among companies set to step up spending from Navratri, which starts later this month, through December, coinciding with the period of highest consumer demand in the country. Automakers Hyundai, Maruti Suzuki, Stellantis India, and Mercedes-Benz India, among others also confirmed the trend.
Sony India is increasing its marketing activities and investments this Diwali season to capture and build on positive consumer sentiment, said Sunil Nayyar, managing director. The company expects sales of its large-screen televisions to grow 5-10% more than its earlier projections.
The GST cuts will reduce taxes on a wide range of products, including cars, two-wheelers, large-screen TVs, air-conditioners, dishwashers, apparel and footwear priced up to Rs 2,500, and multiple daily use items such as biscuits, namkeens, toothpaste, butter, ghee, and toilet soap.
Mayank Shah, vice president at biscuit and confectionery maker Parle Products, said value growth may face pressure despite increased sales due to GST-driven product pack expansions and higher purchases. "So, we must increase our advertising spend than originally planned to grow revenue-led from market share-gain. After all, the October-December period is a big quarter," he said. Parle Products is increasing its budget by 10%, while value retail chain V-Mart Retail will also raise its by 20%.
Hyundai Motor India, the country's second-largest carmaker by sales, is planning a double-digit increase in festive promotional spend over last year.
Virat Khullar, associate vice president, marketing, explained that the carmaker's advertising campaign, featuring brand ambassador Pankaj Tripathi, "has been designed to extend a range of attractive benefits and irresistible offers across product portfolio."
Stellantis India, which sells Jeep and Citroen vehicles, is boosting regional campaigns across print, TV and radio, with CEO & MD Shailesh Hazela noting, "I wouldn't call it our highest spend since we entered India, but compared to last year, the increase is significant. All I can say is-it's a huge amount."
At Reliance Retail, as much as 80-90% of the fashion business is covered under the revised lower GST slab. AC manufacturers like Daikin and Blue Star are utilising unused budgets from the summer quarter, which was hit by unseasonal rains. "Every year we do a festive campaign around Diwali, but this year, it will be from Navratri itself," said B Thiagarajan, managing director, Blue Star.
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