Quiet on the Sets: ITC Turns Down the Volume, Turns Up the Value

Image Source: Storyboard18

In a strategic realignment, FMCG giant ITC has reduced its ad and promo outgo to Rs 1,331.69 crore in FY25—a 3.89 percent fall from the previous fiscal. But it is not a pullback; it is a realignment. The company is shifting away from splash advertisements and towards more forceful brand building, premiumization, and trade marketing muscle.

Major Events

FY25 ad spend Rs 1,331.69 crore, down from Rs 1,385.64 crore in FY24

ITC is investing in premium product portfolios and strengthening its FMCG presence

Trade promotion and multi-channel distribution are now at the forefront of its visibility strategy

Complaints against advertisements fell 50 percent year-over-year

Strategic Shifts in Emphasis

From Mass Media to Market Precision

ITC is going all out with trade promotion to provide product availability and shelf presence

The business is constructing its go-to-market channels in urban and rural markets

This change reflects a broader industry shift towards performance marketing

Premiumization Over Promotion

Core brands such as Aashirvaad, Sunfeast, and Bingo are being augmented with premium brands

The firm is banking on value-added goods to drive customer loyalty

Over 100 new segments and products were launched in FY25

Improved Brand Image

Complaints regarding advertisements decreased from 15 in FY24 to a mere 6 in FY25

This indicates closer adherence and more responsible communication

Emerging Trends

Consumer outlay on ITC's FMCG products increased to Rs 34,000 crore in FY25 from 4.6 percent.

The packaged food segment of branded foods witnessed inflationary headwinds, but ITC registered growth

The firm is increasing exports, now reaching more than 70 nations

Strategic Insight ITC's cut in ad expenses isn't an austerity measure—it's a rebalancing. By spending on high-ticket items, trade visibility, and first-party marketing, the firm is positioning itself for long-term, high-margin growth in a competitive FMCG space.

Sources: Storyboard18, Economic Times, ITC Annual Report, LiveMint, Rediff Business, Fortune India