Advertisement and promotion expenditure play a crucial role in enhancing brand visibility, influencing consumer behaviour, and driving sales performance in the Fast-Moving Consumer Goods (FMCG) sector. The present study examines the relationship between advertisement expenditure and sales performance of selected FMCG companies in India. The study focuses on four leading FMCG companies, namely Hindustan Unilever Limited (HUL), ITC Limited, Dabur India Limited, and Nestlé India Limited, over a period of five financial years from 2020–21 to 2024–25. The study is based entirely on secondary data collected from the annual reports and financial statements of the selected companies. Advertisement and Promotion Expenditure has been considered as the independent variable, while Revenue from Operations has been used as the dependent variable. Various analytical tools such as trend analysis, comparative analysis, percentage analysis, and Pearson’s correlation coefficient have been employed to analyse the data and examine the relationship between the selected variables. The findings reveal that all the selected companies experienced growth in revenue from operations during the study period, although the level of advertisement expenditure varied across companies. Correlation analysis indicates a positive relationship between advertisement expenditure and revenue generation, with the strength of the relationship differing among the selected companies. Nestlé India exhibited the strongest positive correlation, while Dabur India showed a comparatively weaker relationship. The results suggest that advertisement expenditure contributes to sales performance; however, its impact varies depending on factors such as brand strength, market position, and consumer loyalty. The study concludes that effective advertising and promotional strategies are important for sustaining revenue growth and maintaining competitiveness in the FMCG industry. The findings may assist marketers and management professionals in making informed decisions regarding advertising investments and marketing strategies.
Binay Kumar Sahu (2026) studied this question.