Parle to retain ad spend at 7-8% of turnover

Biscuits-maker Parle has decided to rationalise its ad spends in slowing categories such as glucose, and stay away from investing on big-ticket events such as the Indian Premier League (IPL).

The company, however, will retain its ad spend at 7-8 per cent of turnover this fiscal. In 2013-14, it had reported a turnover of ₹8,500 crore.

“Since discretionary spends are still down, we are maintaining our ad spends and balancing spends between categories.

“Today, we would rather invest behind growing categories such as creams and cookies than stagnant categories like the glucose segment,” said B Krishna Rao, Assistant Marketing Manager. In the glucose segment, Parle G continues to be the market leader.

Unlike the glucose segment, which has recorded flat growth, the cookies segment is growing at 18 per cent, while creams are at 12 per cent.

Last year, Parle had launched its Gold Star cookies during the IPL with actor Amitabh Bachchan endorsing the brand.

As associate sponsors for the previous season of the cricketing extravaganza, Parle is now negotiating to only buy airtime, and will have some ads played during the match.

Currently, becoming an associate sponsor on IPL would require a minimum investment of ₹25 crore.

“This year, IPL would be sharing eyeballs with news channels due to national elections, which are going to be equally exciting. We are negotiating for a good deal on the ad rates, since part of the tournament is not going to be in the country,” Rao added.

The company has also decided to extend its snacks portfolio into new categories such as peanuts. It might also launch dry fruit products, but entering the ‘healthy’ snack platform is unlikely.

“We did not get a good response for our smart chips under Monaco,” Rao said. Though Parle continues to have ‘healthy’ biscuits under Parle Digestive, volumes in the portfolio are nearly negligible.

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