Both Colgate-Palmolive and Unilever announced profit warnings this week. And the answer for both FMCG giants is to increase marketing spend. This looks like the classic cycle of companies cutting back on promotional spend during a recession and only starting to spend when sales begin to suffer.
What will be interesting is what the companies spend their promotional dollars on. The FMCG companies were once inventive enough to create their own housewife dramas -- soap operas. Will they be inventive again and explore the new media landscpe or just revert back to the comfort blanket of the 30 sec slot ?
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