Assessing and analysing the impact of advertisement & sales promotion expenses on net profit of Emami Ltd (An Indian FMCG listed company)

Abstract

The ultimate goal of any commercial organization is to earn profit. Advertising plays crucial role in reaching the ultimate consumer. The awareness of any product depends largely on the advertisement & sales promotion expenses of any company. The quality of products is judged by the people endorsing the products. Hence, advertisement & sales promotion expenses find a very important place in the cost sheet of the company. This study is to understand the correlation of advertisement & sales promotion with net profit of the company. Emami Ltd has been taken as subject of study. The company is listed on both the National stock exchange and Bombay stock exchange. The data required for this research has been compiled from annual general report of the company, NSE and BSE. The period under consideration is 5 years (FY 2020-2025). Correlation and paired t-test have been used as tools of assessment. The same have been applied to understand the relation between advertisement &sales promotion expenses and net profit