A RESEARCH REPORT ON THE STUDY OF CONSUMER PERCEPTION OF EDUCOMP SMARTCLASSES AND ITS VARIOUS PRODUCTS

ACKNOWLEDGEMENT One of the most pleasant aspects of writing an acknowledgement is the opportunity to thank all those who have contributed to it. Unfortunately, the list of expression ofgratitude- no matter how extensive is always incomplete and inadequate. This acknowledgement is no exception.First of all, I wish to express my sincere gratitude to Mr. Sumit Sharma for giving me opportunity to do research under his profound guidance. Because of his inspiring guidance, motivation, positive criticism, continuous encouragement and untiring supervision this work could be brought to its present shape.I would also like to thank Mr. Vishal Vashisht Manager , Marketing Mr. Ajay Assitant manager marketing , Mr. Ravinder saini Head BBA and everyone from Educomp Solutions Ltd.

2. Projectsformba.blogspot.com CERTIFICATEThis is to certify that the Research Report entitled MARKETINGSTRATEGIES OF CADBURY being submitted by .fulfillment of the requirement of U.P.Technical University is a recordof an independent work done by his under my guidance and supervision.Projectsformba.blogspot.com 2

3. Projectsformba.blogspot.com DECLARATIONI,. to declare that the Research report entitledMARKETING STRATEGIES OF CADBURY being submitted tothe U.P.TECHNICAL UNIVERSITY for the partial fulfillment of therequirement for the degree of Master of Business Administration is myown endeavors and it has not been submitted earlier to anyinstitution/university for any degree.Place:Date:Projectsformba.blogspot.com 3

4. Projectsformba.blogspot.com ACKNOWLEDGEMENTOne of the most pleasant aspects of writing an acknowledgement is the opportunityto thank all those who have contributed to it. Unfortunately, the list of expression ofgratitude- no matter how extensive is always incomplete and inadequate. Thisacknowledgement is no exception.First of all, I wish to express my sincere gratitude to for giving meopportunity to do research under her profound guidance. Because of her inspiringguidance, motivation, positive criticism, continuous encouragement and untiringsupervision this work could be brought to its present shape.I would like to thank all of them who in one way or the other have helped me.Projectsformba.blogspot.com 4

5. Projectsformba.blogspot.com PREFACEThe success of any business entity solely depends on how effectively does itutilizes its optimum resources and how soon does it make arrangements forthe removal of the customers grievances. Moreover, the company shouldalways be ready to make necessary changes according to the requirementin order to attract more customers so as to maintain a substantial growth inthe market. The topic given to me was: MARKETING STRATEGIES OF CADBURYI have tried to put my best efforts to complete this task on the basisof skill that I have achieved during my studies in the institute.I have tried to put my maximum effort to get the accurate statistical data. Ifthere is any error or any mistake in collecting the data, please ignore it.Projectsformba.blogspot.com 5

6. Projectsformba.blogspot.com INDEXS. NO. CONTENTS1. Executive Summary2. Introduction3. Company Profile4. Objective5. Research Methodology6. Data analysis and Findings7. Conclusion8. Suggestion9. Bibliography10. QuestionnaireProjectsformba.blogspot.com 6

7. Projectsformba.blogspot.com EXECUTIVE SUMMARYThe Cadburys Indias number one chocolate is able to share with their marketinsights based upon unparalled breath of chocolate experience.The merge in 1969 with Schweppes and the subsequent development of the businesshave led to Cadbury Schweppes taking the led in both, the confectionery and softdrink market intech UK and becoming a major force in the international market.Cadbury Schweppes today manufactures product in 60 countries and a trade instaggering 120.This project is a sincere effort to look for the market potential in chocolate andconfectionery industry. A descriptive research procedure had been applied to cometo the conclusions of the project. A detailed questionnaire had been prepared and theresponses of the concerned people had been collected for the analysis. The projectlater concluded in recommending the market potential of the chocolate andconfectioneries.Projectsformba.blogspot.com 7

8. Projectsformba.blogspot.com INTRODUCTIONThe Cadburys Inc has taken the opportunity to offer us a broader view of chocolatecategory. The Cadburys Indias no.1 Chocolate is able to share with their marketinsights based upon unparalleled breath of chocolate experience.Cadbury has grown from strength to strength with new technologies beingintroduced to make the Cadbury confectionary business, one of the most efficient inthe world. The merge in 1969 with Schweppes and the subsequent development ofthe business have led to Cadbury Schweppes taking the led in both, theconfectionary and soft drink market intech UK and becoming a major force in theinternational market. Cadbury Schweppes today manufactures product in 60countries and a trade in staggering 120. The Cadbury story is a fascinating story of afamily business that grew in one of the biggest, most loved chocolate brand in theworld. A story that you will remember as the story of The taste of life.Projectsformba.blogspot.com 8

9. Projectsformba.blogspot.com OBJECTIVE OF THE PROJECTMy main objective of the study on this project is to demonstratethe marketing strategies of Cadbury India Ltd.And to arrive at my findings, I have done few analysis:-(a) SWOT Analysis(b) PEST AnalysisAnd also 5 Ps of Marketing:- Product Price Physical Distribution Promotion PositioningProjectsformba.blogspot.com 9

10. Projectsformba.blogspot.com RESEARCH METHODOLOGYAchieving accuracy in any research requires in depth study regarding the subject. Asthe prime objective of the project is to compare Cadbury with the existingcompetitors in the market and the impact of Nestle on Cadbury, the researchmethodology adopted is basically based on primary data via which the most recentand accurate piece of first hand information could be collected. Secondary data hasbeen used to support primary data wherever needed.Primary data was collected using the following techniquesQuestionnaire MethodDirect Interview Method andObservation MethodThe main tool used was, the questionnaire method. Further direct interview

method,where a face to face formal interview was taken. Lastly observation method hasbeen continuous with the questionnaire method, as one continuously observes thesurrounding environment he works in.Procedure of research methodology# Target geographic area was Delhi. NCR.# To these geographical area questionnaire was given, the questionnaire was acombination of both open ended and closed ended questions.Projectsformba.blogspot.com 10

11. Projectsformba.blogspot.com# The date during which questionnaires were filled was between six week.# Some dealers were also interviewed to know their prospective. Interviews with thehonour of retailer of Cadbury were also conducted.# Finally the collected data and information was analysed and compiled to arrive atthe conclusion and recommendations given.Sources of secondary dataUsed to obtain information on, Cadbury and its competitor history, current issues,policies, procedures etc, wherever required.# Internet# Magazines# NewspapersProjectsformba.blogspot.com 11

12. Projectsformba.blogspot.comProjectsformba.blogspot.com 12 13. Projectsformba.blogspot.comThe legend called Cadbury1824 A once business was opened in 1824 by a young Quaker, John Cadbury, inBull street Birmingham was to be the foundation of Cadbury Limited, now one ofthe worlds largest producer of chocolate.1831 By this year the business had changed from a grocery shop and JohnCadbury had become a manufacturer of drinking chocolate and cocoa. This was thestart of Cadbury manufacturing business as it is known today. A larger factory inBridge Street Birmingham was rented in 1847, John Cadbury was joined by hisbrother Birmingham and the business became Cadbury Brother of Birmingham.1861 John Cadbury resigned his business and handed over to his sons, Richard, 25and George, 21 who after 5 difficult years almost shut down the business to take upother vocation. Fortunately for generation of chocolate lovers, they didnt.1866 Saw a turning point for the company with the introduction of a process forpressing the cocoa butter from the coca beans. This not only enabled CadburyBrothers to produce pure coca essence, but the plentiful supply of coca butterremaining was also used to make new kind of eating chocolate. The essence wasadvertised as Absolutely pure, therefore best.1879 Business prospered from this time and Cadbury Brother outgrew the BridgeStreet factory, moving in 1879 to a Greenfield site some miles from the center ofBirmingham which came to call Bourneville. The opening of the Cadbury factory inProjectsformba.blogspot.com 13

14. Projectsformba.blogspot.coma garden also heralded a new era in industrial relations and employee welfare withjoint consultation being just one of the introduced by the pioneering CadburyBrothers.1899 In this year the business private limited company Cadbury BrothersLimited. Progress since the start of the century through the inter war years onwardahs been rapid. Chocolate has moved being a luxury item to well within thefinancial reach of everyone.1905 Cadbury has many famous brands with one of major success story beingCadburys Dairy Milk chocolate launched in 1905, today Britains favorite moduledchocolate bar.Cadbury today is the market leader in the U.K chocolate confectionary

market,employing the most advanced processing technology and management informationand control techniques. The company is the confectionary division of CadburySchweppes plc which is major force in the confectionary and soft drinksinternational market.World - wide Cadbury is one of the pre eminent names in confectionary withimpressive range of famous brands.Quality has been the focus of the Cadbury business from the very beginning asgenerations have worked to produce chocolate with that very special taste,smoothness and snap, so characteristics of Cadburys chocolate.Projectsformba.blogspot.com 14

15. Projectsformba.blogspot.com ORGANIZATIONAL STRUCTURE MANAGING DIRECTOR GENERAL MANAGER VICE PRESIDENTMARKET MANUFACT SALES FINANCE DISTRIBUTI ING URING ON Projectsformba.blogspot.com 15

16. Projectsformba.blogspot.comDesign DevelopmentMilk chocolate for eating was first made by Cadbury in 1897 by adding milk powderpaste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By todaysstandards this chocolate was not particularly good as it was very coarse and dry andwas not sweet or milky enough for public tastes.At that time there was a great deal of competition in the U.K from continentalmanufactures, not only the French with their fancy chocolates but also from theSwiss, who were renowned for their milk chocolate. Led by George Cadbury junior,the Bourneville experts set out to meet the challenge. A considerable amount of timeand money was spent on research and new plant design to produce the newchocolate in much large quantities.A new recipe was formulated fresh milk and new production processes weredeveloped to produce milk chocolate not as merely as good as but better than theimported milk chocolate.Four years of hard work were invested in the project and in 1905 what was to beCadburys top selling brand was launched. Three names were considered JerseyHighland Milk and Dairy Maid. Dairy Maid became Dairy Milk and CadburysDairy Milk with its unique flavor and smooth creamy texture was ready to challengethe Swiss domination of the milk chocolate market.By 1913 it had become the companys best selling line and in the mid twentiesCadburys Dairy Milk gained its status as the brand leader, a position that it has heldProjectsformba.blogspot.com 16

17. Projectsformba.blogspot.comever since. Today more than 250 million bars of Cadburys Dairy Milk are madeevery year and sales reach over 100 million Pound in value.While advertising and label design g-have changed with fashion and considerablestrides have been made in manufacturing technologies, the recipe for CadburysDairy Milk its glass and a half of full cream milk in every half pound produced isstill basically the same as when it was launched.Cadburys Dairy Milk StoryChocolate has been enjoyed by successive generation since the manufacturingprocess was developed in the Victorian Times. Good chocolatiers is an art formdepending on recipe traditions, which have grown over the years. Chocolatiers haveuse their skills to make balanced recipe in which all the ingredients combine toproduced chocolate with all the characteristics that enable full delicious taste to beenjoyed by the consumers.By todays standards the first chocolate for eating would have been considered quiteunpalatable. It was the introduction of the Van Houten cocoa press from Hollandthat was the major break

through in the chocolate production as it provided extracocoa butter needed to make a smooth glossy chocolate.Cadburys Milk Tray 1915Milk Tray has maintained its popularity in the changing world since the milkchocolate assortment made with the famous Cadburys Dairy Milk chocolate wasfirst introduced in 1915.Projectsformba.blogspot.com 17

18. Projectsformba.blogspot.comThe name tray derived from the way in which the original assortment wasdelivered to the shops. Originally Milk Tray was packed in five and as half poundboxes, arranged on trays from which it was sold loose o customers. The half pounddeep lidded box with the traditional purple background and gold script wasintroduced in 1916, followed by one pound box in 1924.With its stylish, without frills presentation Milk Tray was the assortment foreveryday, not just special occasion and it represented the best buy in the chocolatefor millions of people. The pack design has been regularly updated and theassortment itself has changed in line with consumers taste and preferences.By the end mid thirties the Cadburys Milk Tray assortment outsold all itscompetitions and today it is still one of the most popular boxes of chocolates in thiscountry.Cadbury SchweppesCadbury Schweppes plc, a global beverage and confectionary giant with annual saleof Rs 20,ooo crores,is the worlds number one non cola soft drink company havingbottling and partnership operations in 14 countries and franchises of its brand in afurther 86 countries around the world. Its Hundred Percent subsidiary in Indianamed Cadbury Schweppes Beverage India (private) Limited (CSBIL) startedoperation in March 1995. The first brand was launched was crush which was laterfollowed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter Lemon.Projectsformba.blogspot.com 18

19. Projectsformba.blogspot.comCSBIL with its franchise agreement with 19 bottles throughout India proposes to bea household name. It has a policy for FOBOs (Franchise owned bottling operationsunlike Coke and Pepsi which prefer COBO,s (Company owned bottling operations).In FOBO the beverages company only supplies the concentrate and the marketingsupport to build brand equity. The other aspects like machinery, bottling line, landand distribution is the responsibility of the bottler. As its CEO Mr. Ashok Jain says,we are the software, they are the hardware.Projectsformba.blogspot.com 19

20. Projectsformba.blogspot.com PRODUCT PROFILECHOCOLATE & CONFECTIONARYDairy MilkFruit & NutPicnicPerkGemsclairsNuttiesTemptationProjectsformba.blogspot.com 20

21. Projectsformba.blogspot.comFOOD DRINKSOvaltineDrinking chocolateBournvitaHorlicksProjectsformba.blogspot.com 21 22. Projectsformba.blogspot.com SWOTStrength 1. Very strong brand equity in India. 2. Due to its 54 years presence in India has deep penetration 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers. 3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown segment). 4. Low cost of production due to economic of scale. That means higher profits and / or more competitioners. Better market penetration. 5. Second best manufacturing

location throughout Cadbury Schweppes.Weakness 1. Poor technology in India compared to current international technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...) 2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India. 3. Make in India tag once the economy opens up wore and imports rush in.Opportunities 1. Tremendous scope for per capita consumption (160 gms of 8 10 kg)Projectsformba.blogspot.com 22

23. Projectsformba.blogspot.com 2. Increasing per capita national income resulting in higher disposable income. 3. Growing middle class and growing urban population. 4. Increasing gifts cultures. 5. Substitute to Mithais with higher calories/cholesterol. 6. Increasing departmental stores concept impulse @ at cash counters. 7. Globalisation: optimal use of global Cadbury Schweppes.Threats a) Major :- None. Due to low cost and highest brand equity, it is today in India. b) Minor :- Globalization will being in better brands for upper end of the market (Liest, Monarch, Godiva, etc).Conclusion:-Will lose market share with globalization (a la Maruti) but will remain brand leader.Projectsformba.blogspot.com 23

24. Projectsformba.blogspot.comPest AnalysisP: since the budget range is decontrolled, no political effects are envisaged.E: 1) increasing per capita income resulting in higher disposable income 2) Growing middle class/urban population increase in demand 3) Low cost of production better penetrationS: 1) Per capita consumption expected to increase fashionProjectsformba.blogspot.com 24

25. Projectsformba.blogspot.com 2) Increasing gifts culture increase in demand 3) Lower cholesterol than mithais (sweet meat) substitute demandT: Will have to reinforce technology to international levels once India is a free economy4 PS Of MarketingPRODUCT Satisfaction suffices. But delight dazzles the average company will compete forcustomer by conforming to her expectation consistently. But the winner will surpassthem by constantly exceeding her expectation, delivering to her door step additionalbenefits which she would never have imagined possible. Cadburys offer suchproduct. The wide variety products offered by the company include:Projectsformba.blogspot.com 25

26. Projectsformba.blogspot.com I. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat II. Beverages III. Food Drinks 1) Bournvita 2) Drinking chocolate 3) CocoaProjectsformba.blogspot.com 26

27. Projectsformba.blogspot.comPricingMake no mistake. Second P of marketing is not another name for blindly loweringprices and relying on this strategy alone to increase sales dramatically. The strategyused by Cadburys is for matching the value that customer pays to buy the productwith the expectation they have about what the production is worth to them.Cadburys has launched various products which cater to all customer segments. Soevery customer segment has different price expectation from the product. Thereforemaximizing the returns involves identifying right price level for each segment, andthen progressively moving through them. Dairy Milk Rs. 15 Perk Rs. 10 5 Star Rs. 10 Friut and Nut Rs. 22

Gems Rs. 10 Break Rs. 5 Nutties Rs. 18 Bournvita (500 gm) Rs. 104 Drinking chocolate Rs. 50Physical Distribution PlaceProjectsformba.blogspot.com 27

28. Projectsformba.blogspot.com BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager need anew term to evaluate their business:Distribution Equity. It takes much more time and effort to build, but once built,distribution equity is much together to erode.The fundamental axiom of Indian consumer market is this:You can set up a state-of the-art manufacturing facility, hire the hottest strategieson the block, swamp prime television with best Ads, but the end of it all, you wouldbe know of selling your products. The cardinal task before the Indian market ismanaging is to shoe-horn its product on retail shelves. Buyers are paying fordistribution equity not brand equity and market shares.Why does the company need distribution equity more anything in India? Withtechnology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for ling period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers.India 1 billion people, 155 million household has over 4 million retail outlets in5351 urban markets and 552725 villages, spread cross 3.28 million sq. km.Projectsformba.blogspot.com 28

29. Projectsformba.blogspot.comtelevision has already primed and population for consumption, and the marketer whocan get to the to the consumer ahead of competition will give a hard to overtakelead. But getting their means managing wildly different terrains-climate, language,value system, life style, transport and communication network. And your brandequity isnt going to help when it comes to tackling these issues.Own distribution network consist of clearing and forwarding (C&F) agents &distribution stockiest. This network of distribution can either contact wholesalersand which in turn retailers or the distributors can contact to the retailers directly.Once the stock product reaches retailers, the prospective customers can have accessto the product.Cadburys distributes the product in the manner stated above.Cadburys distribution network has expanded from 1990 distributors last year to2100 distributors and 4,50,000 retailers. Beside use of TI tom improves logistics,Cadbury is also attempting to improve the distribution quality. To address the issueof product stability, it has installed visi colors at several outlets. This helps inmaintaining consumption in summer when sales usually drops due to the fact thatthe heal effects product quality and thereby off takes.Looking at the low penetration of the chocolate, a distribution expansion woulditself being incremental volume. The other reason is arch rival Nestle reaches morethan a million retailers.Projectsformba.blogspot.com 29

30. Projectsformba.blogspot.comThis increase in distribution is going to be accompanied by reduction in channelcosts. Cadburys marketing costs, at 18% of total costs, is much higher than Nestls12% or even pure sugar confectionery major Parrys 11%. The company is lookingto reduce this parity level. At Cadbury, they believe that selling confectionery is itlike selling soft drinks.Projectsformba.blogspot.com 30

31. Projectsformba.blogspot.comProjectsformba.blogspot.com 31

32. Projectsformba.blogspot.comPromotionIf an advertisement is to communicate effectively, the receiver must at least halfwant it to, and be prepared too take step toward the sender. Effective advertising israrely hectoring or loudly explicit. It often both attracts and generates armfeelings. More often than not, a successful campaign has a stronger element of theunexpected a quality that good advertising shares with much worthwhile literature.To penetrate into the inner recesses of her memory, communication must first ensureexposure, grab her attention evoke her comprehension, grab her acceptance and thenextract retention competing with thousands of other units of communication tryingto do the same.Finding showed that the adults felt too conscious to be seen consuming a productactually meant for children. The strategic response address the emotional appeal ofthe band to the child within the adult. Naturally, that produced just the valuevacuum that Cadbury was looking to fill. Thereafter it was the job of the advertisingto communicate customer the wonderful feeling that he could experience by re-discoursing the careful, unself conscious, pleasure seeking child within himself agraft these feeling onto the Ad campaign like Khane Walon Ko Khane KaBahana Chahiye for CMD and Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi forPerk have been sure shot winner with the audience.Whirl with the new launched temptations with the slogan Too To Share thecommunication resolves around the reluctance of a person whos got their hand on abar of temptation to let anyone else to have a bite. As well as outdoor and radio ads,Projectsformba.blogspot.com 32

33. Projectsformba.blogspot.comad agency contract has created communication for cinemas and even ATM machinesfor the brand.All ICICI s ATM a message flashes on the screen as soon as customer insert hisATM card. It tells the customer that this would be good time to get out of hertemptation since he/she is bound to be alone. Something familiar is planned forphone-book as well. In cinemas, Cadbury has a message on-screen just before thelights are dimmed to give them a chance to get their temptations. There will also beafter dinner sampling in restaurants to begin with, 30 catteries in Mumbai havebeen selected.The next round of activity will include the wafer-chocolate Perk and the Picnic bar,which has faced problems with its taste, because of the peanut it contains. Milk treathas also been launched in a module bar form, just in time of Diwali gifting market.clairs has got potential for much wide distribution, in a small sweets that airlines,hostels, and up market retail outlet offer to guest and customers.Ad spend in 2000 was about 14% of sales and the management said that plans tomaintain as spend at this level in the current year also.Ad since any discussion today would be incomplete without mention e word, themanagement plans to tap this new channel of marketing. Beside three companywebsite (i.e. www.cadburyindia .com, wwww.bourvita.com, www.cadburygift.comthat the company has launched, it had also entered into various marketingrelationship with other portals, specially targeted during festivals and events such asValentines day , etc.Projectsformba.blogspot.com 33

34. Projectsformba.blogspot.comIts a combination of spiffing up its key brand, researching and improving the newerproducts that havent taken off, supported with high ad spends that Cadbury hopeswill see it emerges stronger after the current slowdown, as well as expand themarket.PositioningIn the 1970s consumers were ready to pay more for more, and luxury goodsflourished. In the 1980s, consumers

began to demand more for same, and thediscounting era grew strong. Todays consumer demanding more for less, and thewinner will be that super value marketers. Some of todays most successfulcompanies recognize those customers are more educated and able to recognize truecustomer valuePositioning is simply concentrating on an idea or even a word defines thatcompany in the mind of the consumer. It is more efficient to market one successfulconcept to one large group of people than 50 product or service ideas to 50 separategroup repositioning is a must when customer attitude have changed and producthave strayed away from the consumers long standing perception of themCadburys is an anchor in sea of confectionary products. As a variety of competitiveclaims assails her senses, today customer uses complicated decision making processto assess the alternative before making a purchase. Since Cadburys is more clearlyassociated with a particular set of attributes in terms of benefits and prices, thequicker becomes her search process.Positioning of individual product:Projectsformba.blogspot.com 34

35. Projectsformba.blogspot.com 1) CMD: is and always remain flagship brand. The punch by the company for advertising this product life. Real taste of Life, itself defines the positioning of the product. The chocolate is meant for all age groups. It symbolizes fun, enjoyment, good items. It has goodness of milk, taste and appetite appeal. 2) 5 star: although positioned internationally as an energy bar, 5 star was positioned on an emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star was originally targeted at teenagers. In June 1994, the company reworked the strategy for 5 star to make it a source of energy. In fact, before the launch of Perk, 5 stars energy bar positioning made it a snacking chocolate. 3) clairs: competing in the chewable toffees segment. clairs was relaunched during the mid-nineties with a new name, Dairy Milk clairs. 4) Gems: broadcasting Gems, though, didnt prove to be feasible proposition for Cadbury. Targeted at children under 12 years with Gems Bond advertising. Cadbury decided to too teenagers with the Smart Very Smart campaign. But now, the company is retargeting children with its animated commercial. Gems are the best brand to speak to children. Colorful chocolate buttons appeal most to children and that is why Cadbury is re-targeting children.Projectsformba.blogspot.com 35

Cadbury takes into account all these factors when producing a range of products. It targets different segments within the market, such as the.Projectsformba.blogspot.com 36 The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. Demographic variables (e.g. Consumers are groups, gender, material states income etc) 36. Projectsformba.blogspot.com 5) Crackle: it was the first Cadburys chocolate to have crunch in it. It was targeted as a funky chocolate to add spark to life. 6) Perk: in September, 1995, Cadbury preempted the launch of Nestls Kit-Kat by rushing a new brand, Perk into the market. Positioned much further on the functional scale than 5 star, Perk was meant to be light snack-product for subduing the first pangs of hunger. 7) Bournvita: positioned as tasty health drink. While its competitors concentrated only on health aspect, Bournvita combined the nutritious value with taste.Cadburys Market SegmentMarket place for any product is comprised of many

different segments ofconsumers, each with different needs and wants. Markets segmentation can bedefined in a number of ways such as:

Take home segment this describes product that are normally purchased in supermarkets, taken home consumed at a later stage.The Real Taste of RejuvenationIt was the market leader, but sales inched along. It focused firmly on its targetsegment, but the real buyer lay beyond. For seven long years, Cadburys Dairy Milkchocolate suffered stagnancy even as other consumer products boomed. Ju Impulse segment these products are often purchase on impulse, eating these and then. They include product such as Cadburys Dairy Milk. Break segment products which are normally consume as a snatched break and often with tea and coffee, for example Cadburys Perk and snack range. 37. Projectsformba.blogspot.com st howdid the company rejuvenate an old brand to create the marketing megs-hit of the199s?It Stand First Among Second coming. And it wasnt so much a re-launch as it wasa process of rejuvenation. Over a period of 12 months, starting February, 1994, theRs. 314 crore confectionery makers Cadbury embarked on the most outrageousrepositioning exercise in the recent history of Indian marketing. For, itProjectsformba.blogspot.com 37

38. Projectsformba.blogspot.comsystematically dismantled the franchise that the company had built over 30 years ofits flagship brand, Cadburys Dairy Milk (CDM)Cadburys Milk chocolate until1986-destroying the very fundamental of generic association that had made millionof Indians refer to a bar of a chocolate as a Cadbury.More proof of the chocolate is in the eating: two years into process, CDMs marketshare at 25%, with sale rising by an average 40% per annum.The DiagnosisToday, The Real Taste of Life campaign, which servedUp chocolate in general, and COM in particular, into the consciousness of adult, hasalready become a classic of advertising and marketing. By 1993, Cadbury wasdesperately seeking growth for the brand With a market share of 70%, trying towin away customers from competitors in this stagnant market wouldnt help. Theyhad to find new customers, people whod never bought chocolate before. Or, theyhad to increase consumption levels. The obvious solution, in a peculiarpredicament. Despite low penetration, both the brand and the category weredisplaying symptoms of age: faltering growth, high recognition, and lack ofexcitement. The market research revealed the cause of the graying: chocolate wasnta snack in India. In mature markets, chocolate straddle a continuum, from boutiqueproduct packaged raw indulgence to a casual food. So, Cadbury whipped up agrowth solution that involved associating the brand with snacking and functionally,which inevitably go together with high consumption rates in the Western markets.Projectsformba.blogspot.com 38

39. Projectsformba.blogspot.comThe next step: identify the barriers preventing consumers from chocolate as a snack.A battery of test, both quantitative and qualitative, comparing chocolateconsumption to a basket of competitive products revealed an unmistakable answer.Projectsformba.blogspot.com 39

40. Projectsformba.blogspot.comCadburys Was Caught In Its Own TrapHow? The company had, over decades, created a context of chocolate consumptionthat

was now chocking growth possibilities. The baggage of the past was sooverpowering that people didnt get influenced by minor shifts in the message.In fact, the behavioral and attitudinal patterns conveyed by the communication tobuild the brand were proving restrictive. For, Cadbury had, using the traditionaldemographic variables of age, socio-economic groups, and usage intensity,positioned COM as a product that elders typically, parents bought for children typically, their own.But admittedly enduring values of love and sharing, parental affection, and rewardthat Cadbury had labored to associate with the brand, which had helped it forge arelationship with customers, had relegated it to being a special occasion item,ruling out increased individual consumption. After all, special occasion item, rulingout increased individual consumption. After all, special occasion were meant to be arare.A typical Ad would show parents bringing home chocolate for their child. It wouldnever, ever, show the child, or the parent, buying it for himself or herself. The punchline Sometimes Cadburys Can Say It Better Than Words, and Nothing ButThe Best Will Do reinforced the notion, with an unwelcome side effect: adults,as research showed, felt distinctly guilty and embarrassed about eating chocolate,whether alone or socially.Projectsformba.blogspot.com 40

41. Projectsformba.blogspot.comNot only were adults not indulging in chocolates, but they were also activelycurtailing child consumption solution? Forget children as the core consumer.Universalize the product, targeting the parents.The TestsDespite the Need To Clear The residual memory of CDMs former association,caution prevented a big break with the past, forcing Cadbury to experiment with acombination of continuity and change. The process entailed understanding thefoundation of the brand, since it was these that would support the new structure.Out went the caring - and - sharing element, but the family context stayed. Cadburyhad two pillars, so it made sense to change one.Chocolate should be eaten whenever you feel like. It was an impulse item, so whyshouldnt it be sold as one?. The first of the two commercial focused onfunctionality, purging the emotional element.Is the storyline, The father watches TV, engrossed, gnawing away at a bar of CDM.The children enter, followed by the mother-but, by that time, the father hascompleted the distinctly un paternal act of devouring the entire bar. The children areshocked, where upon the produces another bar for them-only to eat that up too.Finally, the mother brings another bar out of her bag. The last shot more CDM barsstrew around casually.The second commercial conveyed the same message, depicting four member of afamily doing their own thing on a Sunday afternoon, each casually munching awayon chocolates. The less than subtle message: eating chocolates just an everydayProjectsformba.blogspot.com 41

42. Projectsformba.blogspot.comaffair, without special occasion or relationship coming into play. Despite theirstrategic intent, both ads failed on pre airing tests.Why for stators, children were outraged at the idea of a parent consuming chocolate,while adults were down right angry at the notion of the father depriving his childrenof chocolate bar. Just as important, consumer rejected the idea that chocolate-eatingcould be equated with mechanical activities like combing ones hair. After all,chocolates were about feelings. There had to be magic, romance, love and emotion.These elements had been ripped away from the advertising. It

was sans emotion.Parent Are Different From AdultsEven as the ad failed, however, they generated a valuable byproduct, in the form of anew insight, into adult behavior. Using transactional analysis on response,Cadburys found that adult as parents behave very differently from adults as adults.People forbid their children from having chips, but gorge themselves. Theimplication:-The moment the adult was shown in the context of his role as a parent, all hiscognitive preconception about the product would come to the fore. Hed think aboutthe reasons why, and the block would automatically come up. Tap child-ego statewithin the adult, stimulating desire, spontaneity, and the craving for instantgratification.The PrescriptionProjectsformba.blogspot.com 42

43. Projectsformba.blogspot.comThe crucial question that Cadbury was confronted with: what strategy should itdeploy to rejuvenate COM in a way that would appeal to the child lurking within theadult? To inject a modern flavor into COM, they chose to create a new brandidentity, borrowing a leaf from marketing guru David Aaker, who decrees that brandidentity should establish a relationship between the brand and the customer bygenerating value proposition involving functional, emotional, or self-expressivebenefits.Projectsformba.blogspot.com 43

44. Projectsformba.blogspot.comThe Ads Had To Be LinkableThe consumer will always tell what his current belief system is, not what it shouldbe Cadburys job to mould has habits and behavior in a way that would increaseconsumption for product and brand.Impulse Drives Chocolate SalesOne of the tools Cadburys used was Jean Neal Kapferers Brand Prism model toexamine whether contemporary value systems offered a peg on which the brandcould be judge. The study disclosed, interlaid, a distinct shift from collectivism toindividualism, with the pre 1990s sacrosanct values of filial and family love beingovershadowed by the manifestation of a larger need for self expression. Therewas a definite yearning to be free child. Therein lay the opportunity for bothunshackling consumption and creating all-new association for CDM.Projectsformba.blogspot.com 44

45. Projectsformba.blogspot.comThe ElixirHaving decided to barter the distinctly use selfish values of sharing and caring forthe suspiciously self-centered one of self-expression, Cadburys people insisted thatthe rejuvenate be enriched with compensation and equally enduring positivevalues: universal truths, enduring human values, and universal moment of joy. Totranslate the brief into the commercial, they decide to simply portray occasion ofchildlike-but not childishbehavior from adults, without explicitly identifying adultsas the target customer.They left the connection to be made by the customer In the process they wereable to get viewer involvement and high levels of empathy. Nowhere did theyactually say, youre an adult, you can eat it. Because nobody wants to be told. Thusit was that, the montage of the child in the man-the old man kicking the football; thepregnant woman carving a chocolate; young girl breaking into a spirit; the youngman tossing a bar of chocolate at his sweet-heart departing in a bus-was created.That the consumption had to be liked before it could penetrate the cultural resistanceto chocolate consumption by adults was obvious. Taking a contrition stance,Cadbury decided to test the commercial being devised by O&Ms creative team notfor the tire battery of likeability, comprehension, credibility and

behaviormodification but only for the first two. If asked upfront, the consumer was hardlylikely to consider the dramatically-different idea credible. Nor was there muchchance of her announcing an immediate change in behavior. But why likeabilityand comprehension? Simple: the first was meant to be the vehicle on which theProjectsformba.blogspot.com 45

46. Projectsformba.blogspot.comdaring idea-that adults should enjoy chocolatewould ride into the consumerspsyche.In other words, the commercial was meant to make him smile at first-and only thenrealize the import once of the message, which is where the comprehension had to betested. What was clear in this case was that likeability would have to includeidentification and feeling warmth.Projectsformba.blogspot.com 46

47. Projectsformba.blogspot.com Thodi Se Pet Puja, Khabi Bhi Kahin Bhi!The Real Taste of Life CampaignThe very first ad in the campaign in 94 was block Buster. It depicted the essenceof one and a half glass of milk pouring in to a boy Dairy Milk unique glass and halfin to a chunk icon shows the glass and a half of full cream milk flowing in to thechunk of dairy milk conveying the deliciousness and taste appeal of the gooey,creamy, smooth chocolate inside the pack that children like. The mnemonic of 1 glass reached to consumer through every magazines, poster, T.V, newspaper.The second ad was montage of vignettes from every day lives of young and oldwhich focused on showing a series of emotions. The ad created a being out the childin the man created to bring out the child in the. The old man kicking the football, thepregnant women craving chocolate, young girls breaking into a spirit, the youngman tossing a bar chocolate at his sweet heart departing into a bus. The commonrefrain linking them was the adult in a free child mode spottiness, impulsive andcarefree.The ad was protested among adults trough focus groups. The ad received anoverwhelming response. It was high on likeability, evoked a great degree ofProjectsformba.blogspot.com 47

48. Projectsformba.blogspot.comempathy and identification consumers response were those me Feel likethat.. Every feels like this.. Brand usage was perceived to cut across allage groups and accessions. Consumers described dairy milk as of all agesEat, when ever you feel like ityou do not have to wait for an occasion.Dairy Milk had successfully enabled the free child in the consumer subsequentadverting used the same communication strategy.Projectsformba.blogspot.com 48

49. Projectsformba.blogspot.com Kya Swaad Hai Zindagi Ka!Projectsformba.blogspot.com 49

50. Projectsformba.blogspot.comThe next ad featured an on going match in the field. Think of a match India battingagainst Pakistan. The score, 6 runs to win with 1 ball left and India wins the match.The ad shows a girl dancing with jubilation on the cricket field when her hubby hitsthe winning stroke. The award winning campaign, designed by ogilvy and matter,were intended to rid the Indian chocolates eater of that guilt complex. Theadvertisement suggested, through not in so many words, that it was ok to be seenincluding in a chocolate in public. You could relate the

sweetness of success ofchocolate. The ad draws attention to the actual eats experience.The fourth in this series was the girl with on her hands. The ad focused on showinghow the girl relishes the Dairy Milk when she has mehandi on her hands. The ideabehind this advertisement was to show the nature of chocolate as an impulse driven product. Post campaign saw a great turn around. Dairy Milk transformed in toa young full brand full of zest. It came to be recognized as an expression ofspontaneity and in pulse. The campaign succeeded I softening attitude towardschocolate and lifting then out of the ream of kiddies / special occasion only. Itembraced a wide range emotion all build around them that chocolate means differentthings to different people at different times, but most importantly chocolate isCadbury.The New CampaignAnd finally, with the launch of the new colloquial advertising campaign KhaanneinWallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus Broacha, CadburyProjectsformba.blogspot.com 50

51. Projectsformba.blogspot.comIndia aimed to substantially increase penetration level of the chocolate category inthe next few years.The new campaign is worth noting as it clearly differ from the earlier one in terms ofrectifying the consumer perception about chocolate being an up market impulse driven product. The attempt now is to change the image, to make chocolate eating aregular habit.The current estimated penetration level of the chocolate category is 19% in theurban market. The objective behind tne new communication on Cadbury Dairy Milkis to make the chocolate category more socially and culturally relevant and drivepenetration in the process.The new campaign has been launched in tandem with the old ar@@ Winning KuchKhass Hai campaign and the media strategy is to let the two co exist towards acommon vision providing a Cadbury in every pocket.Projectsformba.blogspot.com 51

52. Projectsformba.blogspot.com Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!Projectsformba.blogspot.com 52 53. Projectsformba.blogspot.comChocolate Market ShareThe Indian chocolate market is getting bigger and better. While on one hand, thepremium segment (composing imported varieties) is opening up on the other,companies like Cadbury India are launching indigenous product made tointernational standards. Of the 20,000 tonne chocolate market worth aboutRs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share ofaround 20%. Amul has about 5% of the market, with minor player taking the rest.The battle, though, is between Cadbury and Nestle. Though with a much smallerportfolio, Nestle is putting up a tough fight.From a treat for kids, chocolate are now being positioned near meal substitutes,thanks to the initiative taken by the Cadbury India during early nineties. The marketitself has become more broad based, in the sense adults are an important targetsegment now. The reposting of Cadburys Dairy Milk in 1994 as the real taste oflife (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grewthe entire milk chocolate by 20%, and gave the Cadburys range 5 Star, Gems,Projectsformba.blogspot.com 53

54. Projectsformba.blogspot.comclairs, Fruit & Nut, Crackle, Nutties, Butterscotch & Tiffns a new lease of life. Inother words, it facilitated the repositioning of Cadburys sub brands in the basket.Some o the strategic clicked, while other did not quite take off.The company is pushing the gifting segment, through occasion linked gifts.Chocolates contribute to 64% of Cadburys turnover. Confectionary salesaccounting for 12% of turnover is contributed largely by clairs. The companyattempted expanding its confectionary product portfolio, with launch of sugar basedconfectionary goodly and fruits, without much success. Cadbury also has a strongbrand vita in the malted health drink category which account for 24% of turnover.There exists an even larger unorganized market in the confectionary segment.Cadbury has 4% of the market share in this segment. Leading national players arenutrine, Parys Ravalgoan, Candico, Parle, Joyoco India and Perfetti, the MNCssuch as Joyco and Perfetti have aggressively expanded their presence in the countryin the last few years.Malted food drinks category consists of white drink and down drink. White drinksaccounts for almost two third market of the 82,000 for market south and east arelarge market for drinks, accounting for largest proportion of all Indias sale.Cadburys Bourn Vita is leader in the down drink coca based segment in the whitedrink segment Smith Klines Horlicks in the Nestle Milo , GCMMF nitramul andother Smith Kline brand Boost, Maltova and Viva Cadbury bold 14% market sharein food drinks segment.Projectsformba.blogspot.com 54

55. Projectsformba.blogspot.comDespite tough market condition and increased competition Cadbury managed torecord a double digit (11%) top line growth in 2000. The company achieved avolume growth of 5.2%. This was achieved through innovative marketing strategiesand focused advertising campaign foe flagship brand Dairy Milk. Net profit rosesharply by 41.8% to Rs. 520 million. Reduced material and energy cost and tiotercontrol over working capital over working capital and capital expenditure enabledthe company to improve the profitability. Company added 8 million new consumersand saw its outlets grow to 4.5 lakhs and consumer to 60 million.In the foodsegment, Britannia is the leader brand with 21% among those who expressed anopinion saying that they like advertising for the brand Cadbury was clearly No.2with 18% to which CDM throw in its weight with 13% and pork with 4%. For theChowlate company, Khane Walo Lo, Khane Ka Bhanna and the Karwa Cauth,Sports are clear winners.Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5%each. Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%)each.Projectsformba.blogspot.com 55

56. Projectsformba.blogspot.com Cadburys TemptationProjectsformba.blogspot.com 56

57. Projectsformba.blogspot.com Cadburys Health Drink Cadburys Creamy BarProjectsformba.blogspot.com 57 58. Projectsformba.blogspot.com Cadburys Fruit & NutProjectsformba.blogspot.com 58 59. Projectsformba.blogspot.comProjectsformba.blogspot.com 59

60. Projectsformba.blogspot.comNew LaunchCadbury target kids with Milk Treat: It is a product that talks directly to thetarget consumer. The product benefits havebeen defined as The goodness of milk to thefun of chocolate. it combines both goodhealth, multinational value of milk along withthe values of fun and excitement. The kindsformally associate with Cadbury chocolate offering.Temptation :- It is aimed at the niche international chocolate segment of thechocolate market a segment how upgrade from brands such as Cadburys topremium international offering such as Tolerance, Lindit and Hersheys. Roughly 5%of the total domestic consumption expected to grow to some 10%. This segment is too good to miss out on. The Previous Cadburys range available in India did not offer consumer an option to upgrade to international chocolate within the Cadburys fold. Temptation is an attempt to lug niche, priced Rs. 30.Projectsformba.blogspot.com 60

61. Projectsformba.blogspot.comFuture StrategyIn the branded impulse market, the share of chocolate in 6.6% and Cadburys sharein the impulse segment is 4.8% factor like changing attitude, higher disposableincome, a large youth population, and low penetration of chocolate (22% of urbanpopulation) point towards a big opportunity of increasing the share of chocolate inthe branded impulse among the costly alternative in the branded impulse market.It appears that company is likely to play the value game to expand the marketencouraged by the recent success of its low priced value for many packs.Various measures are undertaken in all areas of operation to create value for thefuture.New channel of marketing such as gifting and child connectivity and low end valuefor money product for expanding the consumer base have been identified.In terms of manufacturing management focus is on optimizing manufacturingefficiencies and creating a world class manufacturing location for CDM and clairs.The company is today the second best manufacturing location of CadburysSchweppes in the world.Efficient sourcing of key raw material i.e. coca through forward purchase ofimports, higher local consumption by entering long term contract with farmer andundertaking efforts in expanding local coca area developing. The initiatives in theterms of development a long term domestic coca a sourcing base would fieldmaximum gains when commodity prices start moving up.Projectsformba.blogspot.com 61

62. Projectsformba.blogspot.com Use of it to improve logistic and distribution competitiveness Utilizing mass media to create and maintain brands. Expand the consumer base. The company has added 8 million new consumer in the current year and how has consumer base of 60 million although the growth in absolute numbers is lower than targeted, the company has been able to increase the width of its consumer base through launch of low priced products. Improving distribution quality by addressing issues of product stability by installation of visi coolers at several outlets. This would be really effective in maintaining consumption in summer, when sales usually dip due to the fact that the heat effects product quality and thereby consumption. The above are some steps being taken internally to improve future operation and profitability. At the same time the management is also aware of external changes taking place in the competitive environment and is taking steps to remain competitive in the future environment of free imports, lower barrier to trade and the advent of all global players in to the country. The

management is not unduly concerned about the huge deluge of imported chocolate brands in the market place.It is of the view that size of this imported premium market is look small to threatenits own volumes or sales in fact, the company looks at the tree important as anopportunity, where it could optimally use the global Cadbury Schweppes portfolio.Projectsformba.blogspot.com 62

63. Projectsformba.blogspot.comThe company would be able to not only provide greater variety, but it would also bemore cost effective to test market new product as well as improve speed of responseto change in consumer preference through imports. The only concerns that thecompany has in this regard is the current high level of duties, which limit theopportunity to launch value for money products.Changing Product Mix Contributing to turnover Contributing to turnover 1994 2000Chocolate 59% 64%Sugar Confecting 9% 12%Food Drink 32% 24%Current Market ShareChocolate 69.2%Sugar Confectionary 4.0%Food Drink 14.2%Expanding Distribution Reach2001 + DistributionProjectsformba.blogspot.com 63

64. Projectsformba.blogspot.com450000 Retail Outlet60 Million ConsumersProjectsformba.blogspot.com 64

65. Projectsformba.blogspot.com RECOMMENDATIONS Maintain dominance in chocolate, confectionery and market leadership in blown drinks. New channels such as gifting, child connectivity and value for money offering to be the key growth drives. Grow volume sales at least 20% p.a. over the next years. Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and clairs. One new major product launch every year.Projectsformba.blogspot.com 65

QualityProjectsformba.blogspot.com 6666. Projectsformba.blogspot.comThe Cadbury StoryCadburys success storyIn 1984, John Cadbury founded U.K. company with one aim:- to create the highestquality chocolate. By1969, when Cadbury merged with the soft drink giant.Schweppes, Cadbury brands were already famous all around world.Today Cadburys production are enjoyed in 120 countries, with 40 chocolateconfectionary brands, Cadbury dominated markets as far as the U.K. and Australiathats why Cadbury have been dubbed The worlds master chocolate makers.The secret of Cadburys successWhat is the secret of Cadburys continuing success first theres the careful selectionof the finest coca beans from west Africa, as well as tasty hazel nuts from Turkeyand the fine sheet and choicest natural ingredient available to us anywhere.Finally theres skillful marketing Cadbury always takes extreme care in selectingand marketing the right range of product in every cause.The right product, the right partners, the right marketing, the promotional back up andthe right employees. These are the ingredients in Cadburys latest recipes for success.Right from the stand Cadbury Dairy Milk Chocolate success has been based on 4factors:-

AdvertisingProjectsformba.blogspot.com 67 Value for money 67. Projectsformba.blogspot.com

68. Projectsformba.blogspot.comCase StudyPrior to deciding on the communication strategy for Cadbury Dairy Milk it wasimportant to understand the habits and mindset towards chocolates. A large scaleusage and attitude study was conducted among adults. The research revealed that:Adults were primarily purchasers, and not consumers of chocolates. However, as formost childrens product, they exercised a strong influence on the childrensconsumption behavior. Adults acted as gatekeepers of sorts when it came to fooditems. Considering the advertising history, it came as no surprise that chocolate wereperceived as kiddy product and certainly not part of the repertoire for productsconsumed socially. Chocolate consumption among adults evoked feeling of selfindulgence and guilt.Chocolates seemed to offer virtually no significant positive and certainly no overtpsychogenic benefits. Food and nutritive values associated with chocolates werelow. And, in fact they were categorized as ahazard, being responsible for obesity, dentaland respiratory problems.Brands images were undifferentiated and thecategory had low saliency, can do without.Purchase was almost always planned andtriggered by motives ranging from celebration,bribing and reward to gifting. For an impulseproduct category such as chocolates, this wasProjectsformba.blogspot.com 68

69. Projectsformba.blogspot.comlikely to limit market growth. This conditioning and social learning about chocolateswas restricting consumption among adults as well as driving them to restrictchildrens consumption.There was evidence to suggest the need for shifting focus from child as chocolatesconsumers to adults communication, hitherto, had always addressed adults aspurchasers rather than consumers. Communication had positioned chocolates forspecific situations, thus imposing boundaries for the growth of the market. Emphasison casual everyday situation could help promote core consumption opportunities.For low involvement product categories like chocolates which offer emotional andsensory benefits, it is suggested that communication is most effective with repeatedlikeable ads promising unique and authentic emotional benefit a shift fromportraying everyday moments as an opposed to special ones.The radical change however was focus on bringing out the spontaneity in adults.And, finally CDM a symbol of manipulation was henceforth to symbolize fun,enjoyment and good times.The mnemonic of a glass and half milk was to reinforce the goodness of milk andcue physiological benefits.The only variation was in the Rituals, where communication had shifted from, andspecial occasion to every moment. A strong volume growth was witnessed in theearly 90s when Cadbury, repositioned chocolates from children to adultconsumption. The biggest opportunity is likely to stem from increasing theconsumer base.Projectsformba.blogspot.com 69

70. Projectsformba.blogspot.com Nutties Roast AlmondProjectsformba.blogspot.com 70 71. Projectsformba.blogspot.comProjectsformba.blogspot.com 71 72. Projectsformba.blogspot.com PicnicThe OutlookThe Cadbury management has cut down on its growth target by setting a 10%average volume target for next 3 years (as against previous growth) coupled with infactionary price increases, this

could translate into top line growth of 14 15%. Thistarget also appears difficult to achieve given the consumer slowdown and the factthat the companys consumer slow down and the fact that company is dependent ona single category chocolates to drive growth. Effect it expanding confection anyportfolio have also not yielded desired results. The management has declared itsintention to focus only in clairs (which forms a major position of its 4% share inthe confectionary segment) for the time being in this category.In chocolates too ones remain on the 2-3 key brands as CDM, perk in E claimswhich have supported growth in the past. While new launched such as milk @ andPerk slims have been doing will, the management expects that dairy milk wouldcontinue to be the central driving force in Cadburys growth and that all other brandswould remain peripheral to this central brand.Projectsformba.blogspot.com 72

73. Projectsformba.blogspot.comFew Concerns Come To MindWith a market share of 70% in the chocolate category and with the free availabilityof international brands that you see in the market today, it is only natural thatCadburys market share will move down from here marinating a 70% market sharein a closed environment may have been easy, but it certainly wont be easy inliberalized environment of free imports. And whatever be the anomalies of taxationor low, the consumer is surely going to have a wider choice. And it is going to beshared with other brands too in future. There is additional challenge of Cadburysbrand just aiming market share when the consumer has a wide portfolio of brand tochoose from.While there would be new chocolates launch towards the end of the year, thecompany has ruled out a real big chocolates launch in the current year. And it is tooearly yet to comment on the long term response to the new launch temptations. Theysay chocolates are mostly am impulse purchase. Therefore consumer would prefersmaller, low cost packs to bigger higher priced ones.The growth trend of the brands therefore clearly indicates that the only brand thathas grown is the one that gas received tremendous marketing and advertisingsupport Dairy Milk withdraw support for any brand and growth loses momentum. Insuch scenario, for how long and how many brands can the company continuouslysupport?Projectsformba.blogspot.com 73

74. Projectsformba.blogspot.com POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED BELOW Cadburys Positioning Nestles brands Positioning brandsCadbury Dairy The Real Taste Classic Milk Positioned as anMilk of Life Chocolate affordable enriched milk chocolate Positioned asFruit n Nut Position as Bar One Trendy, Cool, adults as anCreamy bar any time snack. impulse anyRoast Almond time purchase Crackle self expression values attachedBournvita5 Star / Perk KitKat Positioned as aPerk/Break Positioned as snacking Snacking consumptionProjectsformba.blogspot.com 74

75. Projectsformba.blogspot.com consumption Have a Break, Thodi si Pet Have a Kit Kat Pooja 5 Star Energy bar Reach for the Stars.Projectsformba.blogspot.com 75

76. Projectsformba.blogspot.com DATA ANALYSIS AND FINDINGSData was tabulated manually and was also analysed manually.Excel was used to make graphs had pie charts.Main technique used were :Modal value was used to analyse

the questions, which has 2 ormore choices as their answers.Simple average were used to get answer to questionsProjectsformba.blogspot.com 76

77. Projectsformba.blogspot.com FINDINGS AND SURVEY1. Do you eat chocolates? Yes 26% No 74%Projectsformba.blogspot.com 77 78. Projectsformba.blogspot.com2. Which brand of chocolates do you use? 80 75 65 70 60 60 50 40 30 30 20 10 0 Cadburys Nestle Amul OthersProjectsformba.blogspot.com 78

79. Projectsformba.blogspot.com3. Where do you buy chocolates from? Others 6% Movie Halls Super stores 17% 32% Restaurants 10% Retail stores 35%Projectsformba.blogspot.com 79

80. Projectsformba.blogspot.com4. Are you aware of any campaign of the above brands? Yes 46% No 54%Projectsformba.blogspot.com 80

81. Projectsformba.blogspot.com5. Which cadburys product do you usually prefer or use? 80 70 80 60 40 24 35 40 20 0 Dairy Milk 5 Star Fruit & Nut Perk TemptationProjectsformba.blogspot.com 81

82. Projectsformba.blogspot.com6. Do you think Cadburys chocolate is easily available in market ? No 9% Yes 91%Projectsformba.blogspot.com 82

83. Projectsformba.blogspot.com CONCLUSIONThis company project has demonstrated CADBURYSMARKETING AND COMPETITIVE STRATEGIES that hasproved to be extensive through, and of great benefit to the company infurthering its competitive advantage.In this project it possible to see the success of Cadburys in its indorseits strong potential to continue to do well.Projectsformba.blogspot.com 83

84. Projectsformba.blogspot.com Bibliography A L Ries (1996), Focus Harper Collins Publishers Ltd. David A. Aaker (1991), Managing Brand Equity, The Free Press. David A. Aaker (1996) Building Strong Brands, The Free Press. Philip Kotler (Eighth Edition) Marketing Management, Prentice Hall of India Ltd. Advertising and marketing Magazine The Economic Times Brand Equity Company Literature Market survey and questionnaires Web site: www.cadburyindia.comProjectsformba.blogspot.com 84

85. Projectsformba.blogspot.com Web site: www.Cadbury.uk.com Business World Business Today ANNEXUREProjectsformba.blogspot.com 85 NoProjectsformba.blogspot.com 86 Yes Others4. Are you aware of any campaign of the above brands? Movie Halls Restaurants Retail Stores Super stores Others3. Where do you buy chocolates from? Amul Nestle Cadburys No2. Which brand of chocolates do you use? Yes 86. Projectsformba.blogspot.com QUESTIONNAIRE1. Do you eat chocolates?

Fruit 5 Star Dairy Milk 87. Projectsformba.blogspot.com5. Which cadburys product do you usually prefer or use? & No7. Describe Cadburys Chocolate in one word? ______________________________________________________8. Your comments on Cadburys products? Yes Temptation6. Do you think Cadburys chocolate is easily available in market ? Perk Nut

1. A PROJECT REPORT ON A STUDY COMPARATIVE ANALYSIS OF ADVERTISING AGENCIES SUBMITTED BY: Sumeet bassi UNIVERSITY ROLL NO.:- 80507317054 (IN PARTIAL FULFILLMENT FOR THE DEGREE) OF M.B.A SUBMITTED TO:- mrs.shivani singh A&M INSTITUTE OF MANAGEMENT AND TECHNOLOGY PUNJAB TECHNICAL UNIVERSITY, JALANDHAR APRIL, 2010 1

2. BONAFIDE CERTIFICATE Certified that this project report COMPARATIVE ANALYSIS OF ADVERTISING AGENCIES is the Bonafide work of SUMEET BASSI who carried out the project work under my Supervision. ------------------- ------------------- SIGNATURE SIGNATURE MR.RISHI DOGRA MRS.SHIVANI SINGH (HEAD OF DEPATMENT) (GUIDED BY) (LECTURAR OF MGT.) A&M GROUP OF COLLEGE A&M GROUP OF COLLEGE OPPOSITE TO CANADA PALACE OPPOSITE TO CANADA PALACE JALANDHAR-DALOUSIE JALANDHAR-DALOUSIE BYE-PASS BYE-PASS PATHANKOT PATHANKOT 2

3. PREFACE It is a matter of great honour for me to present before my humble readers this project based on the study of COMPARATIVE ANALYSIS OF ADVERTISING AGENCIES The foregoing presentation is an honest and painstaking effort on my part in black and white about the colourful world of advertising agencies. The data collected by me is secondary. I have taken assistance from knowledgeable and apt taskmasters shouldering work of great responsibility in some of the reputed advertising agencies. However, with due respect to the urge of these agencies for maintaining secrecy about their operations and financial data ,I also had to resort to secondary sources for obtaining data like newspapers, magazines and the websites of these agencies. Although the information obtained from secondary sources may prima facie seem to be paralysed by window dressing, to be absolutely frank with my understanding readers, it has been discovered that this data is as reliable as the one I have obtained from the horses mouth for other agencies. Due to paucity of time and reluctance of certain internationally acclaimed advertising agencies in co-operating with me for this project due to some obvious reasons on their part ,I have been able to cover in this project a study of 6 agencies. But the foregoing pages will warrant my painstaking efforts and the extensive study undertaken by me for each of them.So, with due respect to my patient readers for the time they will spare for my project and with confidence flowing through my nerves that both the time and patience of my readers will not be tried and tested and but duly

rewarded with the intensity of my efforts , I carry you gracefully into my world of advertising agencies 3

4. ACKNOWLEDGEMENT I would like to sincerely thank the University for giving me this opportunity of taking up such a challenging project which has enhanced my knowledge about the Advertising Industry & the advertising agencies. I am very grateful to Mrs. Shivani Project Coordinator, under whose guidance and assistance I was able to successfully complete my project. I am also thankful to Mr. Rishi Dogra, Project Guide whose advice and thoughts helped me gain a better understanding of this huge advertising industry and the flambouyant, magnanimous world of advertising agencies. Last but not the least; I also thank the below-mentioned honourable dignitaries and task-masters who have played a major role in leading their respective agencies to the sky of glory. This is a special thanks to them for sparing their precious time, fitting my out-of-the-way appoinent into their diary and giving almost all the information required by me in an unbelievably amicable manner. Without the priceless contribution and coveted guidance of all the abovementioned people, this project would have never got a shape of reality and emerged before all of you in the manner and in the style as it now appears. 4

5. EXECUTIVE SUMMARY 1. OBJECTIVE: To study the various advertising agencies; the ones having local operations as well as the ones have international scale of operations, their modus operandi, styles and the manner of functioning, their profiles, their upswing and their downfall and last but not the least their position in the world of advertising on the basis of the contributions to the ad world and society at large. 2. METHODOLOGY: In order to achieve the above-mentioned objective and finish the study to perfection, I have made a judicious and a balanced use of primary sources as well as secondary sources of data collection. Well, the primary sources comprise of personal visits to the administrative offices of some known advertising agencies and a direct communication with the persons who were knowledgeable and in-charge of the operations. To facilitate in my operations, I had first chalked out a detailed questionnaire covering in length all questions that would serve the purpose in the most efficient and productive way. The preparation and the formulation of the questionnaire was on the basis of many considerations viz., the time that the answeree would require to give me the required answers, the importance of that time and the cost involved. A copy of the said questionnaire is included elsewhere in this project as an Annexure. 5

6. Although the efforts were directed basically towards obtaining information required for the study from primary sources to the maximum possible extent, due to factors like lack of co-operation anticipated from stalwarts and internationally acclaimed agencies, considerations of these agencies over secrecy of data regarding their operations, lack of time for answering the questionnaire and unavailability of the persons-in-charge, I

also had to resort to secondary sources like websites, magazines, newspapers etc. Bibliography of these sources forms a part of this Project for ready reference of the reader. A sample of six agencies was chosen on the basis of their scale of operations, reputation and quick accessibility. 3. CONCLUSIONS: During the course of this study I have observed many a facet of the advertising agencies ----- their strengths, their weaknesses, their opportunities and threats which deserve a mention: Most of the advertising agencies are basically interested in catering to just the needs of the consumer irrespective of the nature of the product or service proposed to be advertised. The primary objective of the agencies is basically profit generation and profit maximization. The agencies conduct a SWOT of the client but not of the product at the time of accepting an assignment. 6

7. There is not much of dynamism in this agencies as far as expansion plans are concerned, diversification objectives are involved or specialisation motives are in question. Not much is done by these agencies for the social welfare and be advertising of social values The agencies are highly committed to their activities but sometimes they tend to be over-professional in their attitudes, over-reserved in the choice of strategies, over-confidential in their operations and over-aggressive in competition. Not many agencies are laying too much emphasis on selection of proper human resources or managerial personnel. They appear over-burdened by objectives of cost control. There is not proper training imparted to people working in the modestly positioned advertising agencies. Due to this, there is lack of specialisation, improvisation and dynamism. 4. RECOMMENDATIONS: The following are recommended in view of the importance and the strategic position occupied by these agencies: The advertising agencies should function in a healthily competitive environment rather than in an aggressive world of cut-throat competition. The agencies should definitely give importance to profit maximisation but at the same time function in public interest as far as charges and quality of products is concerned. The agencies should also conduct a SWOT analysis of the products to be advertised at the time of accepting assignments alongwith the routine SWOT analysis of the clients. 7

8. There should also be a provision for staff training whereby the staff is properly motivated and educated for the roles they perform in the organisation leading them to specialisation and perfection. The advertising agencies should also have a perspective of tapping new avenues, creating mew markets and pursue global expansion for the benefit of themselves and for the country at large. Table of Content Sr.No Topic Page No CH 1 Research Methodology 11 CH 2 Introduction 14 8

9. CH 3 Profile 3.1 Introduction to Advertising Agencies 18 3.2 Functions of Advertising Agencies 18 3.3 Model Organization Structure 22 CH 4 ADVERTISING AGENCIES 1 XEBEC 1.1 The Whereabouts 23 1.2 Modus

Operandi 23 1.3 The Canvas on which Xebec paints its product 24 1.4 How can I know about Xebec? 24 1.5 SWOT Analysis 25 1.6 Case Studies 27 1.7 Awards and Achievements 30 1.8 Whos who in Xebec 31 1.9 Divisions of Xebec 31 1.10 List of Clients 33 2 CARAT 2.1 The Whereabouts 34 2.2 Modus Operandi 34 2.3 SWOT Analysis 35 2.4 List of clients 37 3 CANCO 3.1 The Whereabouts 38 3.2 Modus Operandi 38 3.3 SWOT Analysis 38 3.4 Canvas on which Canco paints its product 41 3.5 How can I know about Canco 41 3.6 Organization Structure 41 3.7 Facilities offered by Canco 42 3.8 Awards 42 4 MCCANN ERICKSON 4.1 History 43 4.2 Whos Who 43 4.3 Modus Operandi 45 4.4 SWOT Analysis 57 5 MUDRA 5.1 History 60 5.2 Pioneers in Advertising Agencies 61 5.3 Divisions 62 5.4 Founder 62 5.5 List of Awards 63 5.6 Major Clients 64 5.7 Organization Structure 66 CH 5 SWOT Analysis of Advertising Agencies-Comparative 67 9

10. Study CH 6 Statistics 6.1 Comparison between Gross Income of Top 25 Agencies 69 6.2 Growth of Advertising Agencies 70 6.3 Top 20 Advertising Agencies 72 6.4 Top 20 Advertising Spenders 73 6.5 Agencies Ranking 74 6.6 2001- Top Ten Multinational Advertisers 75 6.7 2001- Top Ten Advertising Agencies 75 6.8 Comparison of Agencies on the basis of Worldwide Gross 76 Income 6.9 Graph of Growth of Agencies 77 CH 7 Suggestions and Recommendations 78 CH 8 Conclusion 80 CH9 Annexure 82 CH10 Bibliography and Webliography 84 10

11. RESEARCH METHODOLOGY Topic : STUDY OF ADVERTISING AGENCIES 1. OBJECTIVE: The project deals with the study of advertising agencies encompassing a multi-dimensional discussion on the whereabouts of these agencies, their modus operandi, their manner and coverage of operations, their strengths, weaknesses, opportunities available to them and the threats posing obstacles in their journey to the max. This study shows the diversity underlining their operations and at the same time the unity in aims, objectives and target. As during the preparation of this project, some inevitable obstacles and natural hindrances restricted the scope of this study just as these agencies are restricted by many environmental and socio-economic factors, nonetheless, its a sincerest attempt to do the best possible justice to the said topic. 2. AGENCIES COVERED : (1) Xebec (2) Canco (3) McCannErickson (4) Carat (5) Percept (6) Mudra 11

12. 3. FROM PLACES TO PAPER : The data required for this study as per my vision was collected from the following type of sources : Secondary Sources Secondary sources of data collection: On account of the cold shoulder given to me by the media-giants and their contemporaries, I had to resort, as also advised by some of them, to secondary sources of information like newspapers, websites and books for supplementing the information obtained from primary sources and sometimes for the main information. Honestly, the information obtained from the websites was detailed and sufficient to an extent that would even surpass those of

primary sources. In the ocean of the information that the websites contained for each agency, I had to fathom for the most precious gems which required crisp editing, preciseness and good scissor-work. Also newspapers like The Economic Times and its supplementary called Brand Equity did leave their imprints on the papers of the project to follow and their contribution to this presentation cannot undermined and unnoticed. Help was also taken from books based on advertising and marketing to give a better appeal to this study and enrich it with more detailing and liveliness. 4. RESULT 12

13. The cummulative result of primary sources of data collection and secondary sources is obvious from the pages that follow. However, I have been able to generate sufficient information and moreover, in detail from all the sources employed in an endeavour to leave no stone unturned in justifying the selection of this topic and advertising agencies, at large. Though marred by some obstacles, I am convinced that my painstaking efforts and drops of sweat that have made the papers intangibly wet and the ink of the pen go dry will convince my patrons carrying good doses of expectation from this project. 5. DIFFICULTIES FACED : 1. Stipulations and urge for strict adherence to the length of this project upto a maximum of 80 pages forced me to run the merciless scissor on many points. The pen was on but the papers were gone. 2. Lack of co-operation from the stalwarts and the internationally acclaimed ad-giants has been the biggest obstacle in the way. Though, they are very much justified and I give due consideration to their urge for maintaining confidentiality about their operations and financials, I still believe that had this information, however explanatory it is, been obtained from them directly, it would have definitely made neighbours' envy and owner pride. 3. Unavailability of concrete sources of secondary data was another hindrance. Though websites form an exception, barring them there was hardly a source that carried some potential in meeting the requirements. Prestigious publications like A & M have faced shut doors of printing presses and a replacement is still hiding in some unknown corner of invisibility. 13

14. In a nutshell, all these ingredients which have gone into the making of this recipe wait a verdict from the readers for their taste. INTRODUCTION The word that bridges the gap between no more to know moreAdvertising. and further between know more and grow more. Knowledge is power, they say and today the biggest weapon of power in anyones hands is that of advertising. Just as water is to a fish, advertising is to business; something without which the basic question of survival is bound to rise. In this jungle of name and fame, where every creature confidently defies William Shakespeare when he says, Whats there in a name there is definitely everything attached to name and its this name which gives you fameAnd what gives an identity its name? Well, the only golden word Advertising Definitely roses will not smell less sweet by any other name but businesses will undoubtedly go back to the coffers if the world forgets their names and to keep them alive in the minds of

billions, you go for publicity. Today everyone advertises from crches to crematorium ,from hotels to hospitals, from clubs to pubs,from marriage bureaus to lawyers well name it and you have it. Everyone needs recognition, from a 6 month baby in the cradle to a 60 year old preparing for a graveyard, from a beggar to a billionaire everyone wants you to recognize in a train or in a plane , irrespective of what you are. In the yesteryears , everything was considered fair in love & war and advertising . It does not mind if you have to pull someone down, important is that you should rise. 14

15. And who helps you to project yourself in the public, who brings you from the greenlight to the limelight, who brings you from the darkness of ignorance to the light of recognition? Obviously, the advertising gurus seated comfortably in their mind-blowing offices These Advertising Agencies may be raking in big moollahs but no one can question their contribution in enabling the business to burn their choolahs .Today there are the movie moghuls and cricketing badshahs dancing on their fingertips, models and celebrities weaving their irresistible web of magic around people like us. Well, necessity is the mother of invention and our necessities have opened the doors of prosperity for these agencies. Be it a product or be it a service, they have the magic formulae for everything and mind you, these formulae really work on our minds as is clear from our very own experiences. And sometimes their roles really makes a layman wonder as to what would have happen to those hundreds of unsung brands appearing as faces in the crowd on some rack or shelves of a huge supermarket or a not-so-popular stores if these agencies would have never risen from the sands of time. Today, the exposure of every individual to advertisements and advertising has increased manifolds than what it was in the past. Kudos to these agencies ; at least they have turned out to be major trend-setters and torch- bearers for people like us showing us the way to the magnanimous world of sophisticated products & services. However unethical and materialistic these 15

16. agencies may be, at times in a bid to grab the lions share of the buyers market, it is doubtlessly certain that without these agencies we would have never come out from the age of transistors to reach the modern age of home theatres. Well, every cloud has a silver lining to it. Who can forget the extent and the manner in which Reliance Infocomm marketed its Wireless in Local Loop (WLL) Technology on the onset of the launch of its mobile service. Irrespective of the post-use catastrophes, the impact of solid marketing & publicity on the minds of an ordinary laymen for whom having a mobile in hand was nothing less than wearing a gold ring in the ring finger is reflected in the way such a person is today using a cell phone. The hype was created by the agencies like Xebec Communications who advertised the product of one of the Fortune 500 Companies of India and the hysteria still continues. Today, may products like chocolates and butter come to be identified by their brand names like CADBURYS & AMUL. On the other hand, many others are identified by

their slogans, catchlines & punchlines devised by the advertising wizards like BLACKMAGIC MOTION PICTURES for their clients products like Hamara Bajaj (Bajaj Auto), Utterly Butterly delicious Amul (Amul), A gift for someone you love(Cadburys), Yeh Dil Maange More (Pepsico) , Taste the Thunder (Thums-Up) etc. Before we go ahead with the discussions about the advertising agencies & the brains behind them, its pertinent to bring to limelight the benefits which we, as a society, are deriving from these agencies and the not-so acceptable traits. 16

17. PRESENTING... The pros (1) Creating awareness : Due to the increasing role of the advertising agencies and so-called dominion over our minds, today the level of consumer awareness could be well adjudged from the fact that even a toddler identifies in the spur of the moment an ad of Cadburys chocolates or Amul Butter been run on the screen of the idiot-box ornamenting our spacious drawing rooms. (2) Enabling wider choice and access to products : So many products and so many ads for each of themleaves the poor customer gasping for some free space. Well, with the bombardment of so many commercials, universal hoardings, from advertisements stuck on the walls of the building compounds to those stuck on the walls of the railway comparents, the customer has multitude options and ample of choices to really get better than the best. Well, people are after all paying handsomely for their requirements and they deserve choices and options. But, it all owes to these agencies who have spread out before us 10 different types of toothpastes for making out teeth the whitest and the hardest, 100s of moisturizers for giving the best glow to our skin an all sorts of luxuries which have become more necessary than the necessities. (3) Uplifent of standard of living : Well, its said that Money makes a mare go. Today, this not be any more emphasized as everyone knows that depending on the financial background, people can get the best of everything. From a cycle to a car, or from a dhaba to a restaurant, the customer knows where he is 17

18. the most comfortable and is able-bodied to plan out his budget as he knows the price tags stuck on every product and service. And all this, is possible because of the constant exposure to media and publicity. (4) Necessary for the growth of the businesses : From the Ambanis to the paanwalla, from the Bachchans to the street- actors, every soul is convinced of the power of these agencies in giving them a larger than life size image. Every business house, big or small, though cutting the cloth according to the size of its coat, needs the services of these agencies to project its brand image before the laymen and convert these laymen into prospective and from prospective to loyal customers for their products and services. Revenue generation is the prime objective behind every business and to rotate the wheel of success, its important for them to use the services of these think-tanks and always remain on the topmost rank. The cons..... (1) A cold shoulder to social responsibilities : The advertising agencies today are not performing to the non-material welfare of the society. Their commitents and obligations to the society are mani-fold.

Being the torch-bearers of the world of publicity and media, they are on a huge platform from where they can spread messages of public interest in every nook and corner of the country. Alongwith their professional assignments for profit maximisation, they can also design propagandas for conveying important social messages like harmfulness of smoking and drinking liquor, abolishing evil practices and dogmas deeply rooted in the blood of the rural illiterate, importance of a nuclear and small family etc. Accepting these assignments for a social cause will not create a 18

19. dent in their pockets but will surely go a long way in revolutionising thoughts, attitudes and mindset of every Indian. (2) No SWOT of products advertised conducted : All the advertising agencies are conducting a SWOT analysis of the prospective clients that approach them with a product or service meant to be advertised but no one is bothered about a scrutiny of the products to be so advertised. It is not their business, perhaps it is anti- business; that's the feel and the flavour. 19

20. PROFILE ADVERTISING AGENCY ADVERTISING The American Marketing Association, defined advertising as any paid form of nonpersonal presentations of idea, goods or service by an identified sponsor.In other words we can say that Advertising is brand building through effective communication INTRODUCTION TO ADVERTISING AGENCY The global market has expanded manifold in the last few decades. More and more products are being launched practically everyday. The companies are engaged in cutthroat competition to highlight their products to the forefront. Herein enters the glamorous field of advertising. Advertising is actually brand building through effective communication and is essentially a service industry. This requires the help of the media to reach more and more people to communicate brand effectiveness and here advertising agencies comes picture. The role of advertising agency has been accepted because it provides specialist services to the companies, which have inadequate services of experts for the promotion of their goods and services. Many institutions have 20

Accounting: The advertising agency maintains proper accounts in cooperation with the client. The account executives see to it that the agency keeps to the stated plan. The accountant is in charge of the administration of the advertising programme on the agency side. A 21 Co-Ordination: The advertising agency co-ordinates several activities. It often works with the clients sales force and distribution network to ensure the long-run success of the advertising programme. The combined efforts of sales persons, distributors and retailers ensure maximum sales. Ideas, media, copy and decisions are co-ordinated properly to project and implement the advertising programme. Creation and Execution: Specific advertisements are created. The advertising copy is written; the layout is prepared; illustrations are drawn; photographs are finalized; and a correct mechanical form for running it in the selected media is produced. The advertising agency prepares a suitable advertising copy for insertion in all

the media. Planning: The advertising agency plans the advertising campaign. The management delegates the responsibility of advertising planning and execution to the agency. The agency must have a fair knowledge of the firms products, its history, the present market conditions, distribution methods, price level and other conditions. A successful advertising programme is built on the basis of these data. 21. established the services of advertising agencies to make their products and services known to the potential consumers. FUNCTIONS OF ADVERTISING AGENCY: The advertising agency performs all the managerial functions. Some of these are planning, creation and execution, co-ordination, accounting, media, research and internal control.

Internal Control: The advertising agency manages its employees, finances and other resources effectively and economically. It conducts the business behind the scenes and exercises proper control over activities and funds. Public relations, sales promotion functions and client contacts are maintained by the management for the effective operations of the advertising agency. 22 Research: Research is a key function in an advertising campaign. The decisions on creativity and media selection are taken on the findings uncovered for research. Research makes every decision systematic and logical, based as it is on facts and figures. Media: The advertising agency selects the media or a set of suitable media for the client to reach the right type of audience which is an important factor in media selection. The rates, circulation, population, audience, income and other important information are collected for the purpose. It has to see to that the media plan is carried out properly which is devised to implement the campaigns communication objectives. The media experts know all about the media and their coverage. They prepare the schedule of advertising, publication, data on printing and the time available from television and radio. 22. misunderstanding arising between the agency and the client is eliminated by the accountant. The amount of fees received from the client and the payment of taxes, bills and other charges are accounted for by the accountant.

23. EXTERNAL CLIENT BRIEF ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS COPYWRITING ILLUSTRATING LAYOUTS CLIENT APPROVAL PRODUCTION BROADCAST STAGE PRINT TYPOGRAPHY ENGRAVING FILMING EDITING PRINT AD COMMERCIAL PRINT MEDIA BROADCAST MEDIA AD REACHES THE TARGET AUDIENCE 23

24. TYPICAL ADVERTISING AGENCY STRUCTURE Chairman & Managing Director (Chief Executive Officer) Finance Management Administration Accounts Client service Media Director Creative Director Director Studio Films Print & Media Associate Creative Production Controllers Directors Group Account Manager Media Supervisors Creative

Group Heads Account Supervisor Media Media Planners Buyers Copywriters Art Directors Account Executives Media Media 24

25. ADVERTISING AGENCY # 1 X E B E C THE WHEREABOUTS HEAD OFFICE : 20, Santosh Heights, 1st Floor, 39/4, J.N. Marg, Opp. Apsara Theatre, Pune 411 037. BRANCH OFFICE : Jain Chambers, 1st Floor, Next to Saga Shopping Centre, S.V. Road, Bandra (West), Mumbai 400 050. Incorporated in the year 1991, this rapidly-growing FULL SERVICE Agency located at the above-mentioned places has today achieved for itself a decent position in the jampacked arena of the biggies and is continuing its progressive march. It is solely indigenous with no foreign collaboration or foreign equity participation ; something really very praiseworthy. MODUS OPERANDI : Being a truly professional & competitive in approach, Xebec Communications has a well-defined and a well-organised method of operations. When the prospective client approaches them for getting his purpose served, they conduct a SWOT analysis prior to acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome and 25

26. patience-testing exercise for the client, it is designed in such a way that the agency gets a total assurance of the output. The agency first understands the requirements of its customer and gets a complete profile about the product or the service to be advertised from the horses mouth. Further, it makes a complete assessment of such a product or service, based on the representations and the explanations given by its client in terms of the life of the product, its marketability and its commercial value. Continuing on these lines, the agency also makes an assessment of the requirements of the client, their budget, cost constraints etc. Finally, last but not the least, the agency makes an estimate of the benefits, both monetary as well as non-monetary which it is subsequently in the long run, going to derive out of every such assignment. On the basis of such a study made about the product, its target audience and the psycho-analysis of the creator as well as its creation, the agency then selects the type of media which is the most appropriate one in terms of the cost constraints laid down by the client and accordingly intimate the client about the costbenefit ratio of the entire exercise. So, its a thorough professional approach wherein the client is rest assured about the benefits he is going to reap from the seeds he is planning to sow in the field of advertisement. Ultimately, its not a no-win no-lose situation for both of them but is entirely a winners outcome. THE CANVAS ON WHICH XEBEC PAINTS THE PRODUCT : Xebec provides its customers with a wide-range of media to select from viz., in fine print, or on celluloid like television, radio, theatres etc. HOW CAN I KNOW ABOUT XEBEC : 26

27. Well, being professional and competitive in approach, it is Xebec who approaches its prospective clients and not wait for the the clients to fathom for it. So, the client does not have to run in sun and shower for finding a proper canvas for its product. Xebec provides all the facilites for

its client coupled with a very co-operative in-house, interactive response and hospitality. As far as a payment term is concerned, Xebec also takes care of the pocket-size of its customers. So on one hand, it gives you the option to pay the entire fees in lumpsum, on the other hand it also extends credit to its continuous and creditworthy customers. STRENGTHS : The agency first understands the requirements of its customer and gets a complete profile about the product or the service to be advertised from the horses mouth. Further, it makes a complete assessment of such a product or service, based on the representations and the explanations given by its client in terms of the life of the product, its marketability and its commercial value. Continuing on these lines, the agency also makes an assessment of the requirements of the client, their budget, cost constraints etc. Finally, last but not the least, the agency makes an estimate of the benefits, both monetary as well as non-monetary which it is subsequently in the long run, going to derive out of every such assignment. On the basis of such a study made about the product, its target audience and the psycho-analysis of the creator as well as its creation, the agency 27

28. then selects the type of media which is the most appropriate one in terms of the cost constraints laid down by the client and accordingly intimate the client about the cost-benefit ratio of the entire exercise. So, its a thorough professional approach wherein the client is rest assured about the benefits he is going to reap from the seeds he is planning to sow in the field of advertisement. Ultimately, its not a no-win no-lose situation for both of them but is entirely a winners outcome. WEAKNESSES : Xebec is facing a major problem of Time Management i.e. it is overdependent on its staff. Hence, the quality and the efficiency of its human resources always causes some sort of a problem in making and implementing fast decisions. Again, multiplicity of brains, though an asset for any organization is also sometimes a hindrance in its development when the agency is not able to reach to a definite conclusion about its strategies and policies in the nick of the time due to conflicting ideas presented by its too many decision-makers. As it is aptly quoted, Too many cooks spoil the broth Secondly, as far as client servicing is concerned, Xebec does not make adequate attempts to update its services. This is the main reason why this organization though reputed, is not able to expand its paraphernalia. Lack of creativity is also a major backdrop in its success story. Next, Xebec has also failed to make any renowned celebrity from the fields of cinema, sports, politics or business as its brand ambassador as other reputed agencies in this world are in a practice of doing. Hence, the 28

29. agency fails to create a long-lasting and huge appeal for the products of its clients amongst the masses. As far as the profiles of the team members of Xebec are concerned, the people in the topmost levels of organizational hierarchy who are mainly shouldering the responsibility of devising strategies, policies, media plans, client servicing, account planning, market recognition and strategic decision-making are not from

the fields of management or advertising. Though, they may be wellgroomed for excellence in the environment in which they are functioning, there is always an undisputed difference between those able-bodied people who are from the field of management and those who are not. And finally, in this field of cut-throat competition where agencies rise and fall like a pack of cards day in and out, you definitely need professionals and professionalism in your approach at the time of decision-making and implementation of ideas. OPPORTUNITIES : There is a tremendous scope for diversifying its paraphernalia as currently Xebec is just specializing in one particular media. Secondly, by recruiting and taking more benefits from services of professionals in this field, Xebec can overcome its problems of Time Management and slow decision-making. Instead of having too many heads with different contents in them, it can always go for quality staff. Xebec can also concentrate on making some of the eminent personalities as its Brand Ambassador, which it has already started as is evident from 29

30. its forthcoming contract with a cricket star named Salil Ankola. If it continues to do so on these lines it can lead to more aggressive response for its clients products and services. THREATS : Xebec also does not make a SWOT analysis of its clients at the time of taking an assignment. This also exposes it to a major threat of losing its own ground in its field as not many of its clients are too reputed, well- organised and aware of their requirements. Another major threat to the growth and development of Xebec is its over- dependence on Print Media. That is to say, Xebec has not taken too many efforts of diversification and growth into other media. It is quite understandable that in todays world to remain sellable in the market you have to keep on diversifying yourself into other fields which this agency is not very much keen in today, there is a definite threat on its future existence. Survival is first, growth afterwards and just trying to be a master in one amidst a crowd of experts who are Jack of all trades is not at all a good sign for any organization. 30

31. CASE STUDIES 1. KIMBERLY CLARK 1.1 Brief Associate Kimberly Clark with personal hygiene by a campaign encouraging people to adopt health habits and educate offices and hotels about the importance of giving their employees and guests access to hygiene products. 1.2 Execution A Poster Campaign placed in and around washrooms (where Kimberly Clark's products are most used)reminding people about the importance of personal hygiene with a byline by Kimberly Clark. 1.3 Result A direct association between Kimberly Clark and personal hygiene and increased usage of Kimberly Clark products and supplies. 2. KINETIC 2.1 Brief Relaunch Kinetic Honda Marvel and build on Kinetic's reputation as an all family 2 wheeler maker. Create a new buzz around the Marvel as an exciting bike. 2.2 Execution A series of concurrent road-shows and test rides all over India handled by our events division with live performances by India's most exciting and talented performer - REMO - to stir up the excitement. 2.3 Result 31

32. Excitement about Marvel and renewed interest in the scooter and Kinetic. 3. THYSSENKRUPP 3.1 Brief To occupy mindspace as a core infrastructure sector/industry player. 3.2 Execution A creative campaign in Indian and foreign magazines and journals closely targeted at industrial decision makers. 3.3 Result Increased awareness of ThyssenKrupp activities and brand recall as a hi-tech German company. ThyssenKrupp continues to be a valued client. 4. INDIACOM 4.1 Brief Build the INDIACOM brand as a most easily accessible and widely disseminated yellow pages directory. 4.2 Execution Strategic press spots and hoardings timed with the beginning and end of the bookings period designed to drive demand for ads and insertions and increase awareness of the INDIACOM edge. 4.3 Result More recall for the INDIACOM brand as the most easily accessible and widely disseminated yellow pages directory resulting in more placements in their directory. 32

33. 5. LIPI DATA SYSTEMS 5.1 Brief Position LIPI as a total data solutions company with a wide range of high quality print solutions for small businesses and corporates 5.2 Execution A creative campaign focusing on the flexibility of LIPI printing solutions. 5.3 Result Increased awareness about the LIPI brand name as a provider of superior printing solutions. 6. INTELLIGENT INVESTOR 6.1 Brief Raise Intelligent Investor's profile through high powered personal finance exhibitions in the metros. 6.2 Execution A series of full page ads in outlook and Intelligent Investor designed to engage the readers attention by trumpeting the sheer volume of financial services and free advice on offer. 6.3 Result A tremendous response to the personal finance exhibitions leading to increased awareness about Intelligent Investor and an increase in its brand equity. 7. CENTURION BANK 7.1 Brief 33

34. Establish Centurion Bank as a one stop shop for all banking needs with superior banking services for small customers. 7.2 Execution The target audience was identified as the small customer who was perhaps not getting the best service in big banks. The creatives were designed to inform him about Centurion Bank's thrust towards them. 7.3 Result More new accounts for Centurion Bank with its brand firmly established among the smaller customers. 8. DISHNET DSL 8.1 Brief Leverage Dishnet strengths as the only DSL high speed ISP provider in the country. Target soho and heavy net users promoting the benefits of high speed access. 8.2 Execution A creative campaign bringing out the cost and speed advantages of broadband. 8.3 Result Increased interest and awareness about broadband Internet access, establishing Dishnet DSL as the pioneer in broadband technology and generating inquiries and sales. AWARDS & ACHIEVEMENTS : Best Radio Jingle [A refreshing jingle for Electronica Leasing & Finance Ltds Fixed Deposit Schemes] 34

35. CEAD - Best Radio Jingle [An innovative jingle for Kinetic Spark which was set in a folk tune] Trade Fair/Exhibition Design [First prize for Kinetic Honda stall at Auto Expo 98] [First prize for Impressive Stall & Innovative

Displays at TECHEX-6 at World Trade Centre, Mumbai, November 98] WHOS WHO IN XEBEC ? People make all the difference, nurturing talent and allowing space for independent thought and initiative are our hallmarks which explains the low attrition rates. Key people behind the success of Xebec are - Kiran Bhat - Chief Executive Anil Bhat - Executive Director Vincent Sebastian - Branch Manager Radhika Akolkar - Account Director Samir Wagh - Manager (Media & Events) Sandeep Ghodke - Art Director Anil Rane - Asst. Art Director Abhay Bengeri - Branch Director Praveen Meloth - Sr. Account Executive Bhavana - Sr. Account Executive DIVISIONS OF XEBEC M.A.R.S. 35

36. Our in house Research division - an independent profit centre - allows clients to identify customer preferences, trends, deliver a more focused message and track customer response. M.A.R.S. delivers professional research services within the Xebec umbrella. M.A.R.S. Services: Qualitative and Quantitative Research... Dipstick Studies... Focus Groups... Pre and Post Launch Surveys / Studies... Feasibility Reports... Customer Satisfaction Surveys... Dealer Audits... STELLAR - P.R. In today's fast paced media driven world with shrinking attention spans, PR is an important vehicle to increase mindspace and mindshare. Stellar is a Xebec group company run by experienced PR professionals with strong contacts in press and TV for national coverage. CUSTOMER CONNECT C2 is Xebec CRM arm with specialized Direct Marketing and Customer Response skills. LIST OF CLIENTS ADVERTISING AGENCY # 2 C A R A T THE WHEREABOUTS HEAD OFFICE : CARAT MEDIA SERVICES INDIA PRIVATE LIMITED Barodawala Mansion, 81, Dr. Annie Besant Road, 36

37. Worli, Mumbai 400 018 India. Email : pat@carat-india.com Website : www.carat-india.com CEO: Sulina Menon Email : sulina@carat-india.com Carat India - New Delhi Address : E82A, Greater Kailash Part-1, New Delhi, Pin-110048, India Tel No : (91) 11 629 4112 Fax No : (91) 11 629 3680 Email : carat@ndb.vsnl.net.in Website: www.carat-india.com Website: www.carat-asiapacific.com Carat is operated by AEGIS MEDIA which operates alongwith Carat 2 other reputed worldwide organizations viz., Vizeum & Postersope Worldwide MODUS OPERANDI : Being a truly professional & competitive in approach, CARAT has a well-defined and a well-organised method of operations. When the prospective client approaches them for getting his purpose served, they conduct a SWOT analysis prior to acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome and patience-testing exercise for the client, it is designed in such a way that the agency gets a total assurance of the output. 37

STRENGTHS 1. Carat has a very educated and well-groomed set of clientele. They know that the ability to understand and exploit the opportunities of the evolving media market is key to their future success. Media communication, and assessing its short, medium and long-term

effect, is becoming central to every business. 2. Carats aim is to deliver business advantage for its clients through effective communication programmes that maximize return on invesent. This means partnering with its clients to produce sustainable improved sales by building brand loyalty, value and awareness. They combine insights into brand, media and consumer behavior to spark innovative media solutions that are unique to every brand. The Carat approach to communication planning gets results. 3. The marketing strategy of Carat is defined as a 360 communication. This means exploiting the whole range of media channels available to a brand which is fundamental to building effective communication strategies. As messages reach consumers in new and different ways, they can refresh and renew a relationship, create excitement and loyalty, even advocacy for a product. The task is to build a programme which engages consumers with the brand and reveals the inherent values in a product or service that cause consumers to say "That's for me". In a nutshell, this type of a strategy helps in building a brand loyalty and the customer starts relating himself with it. 3838. SWOT ANALYSIS OF CARAT :

WEAKNESSES 1. The major weakness of Carat is diversification. Carat has grown, flourished and made a tremendous progress in the field of electronic media only. However, for a long-term and sustained growth and development it is the need of an hour for every agency to stretch its arms and reach out for the world through all possible avenues. 3939. 4. Carats clients are very much impressed with its ability to work as an international team. The breadth of their service and their strong coherent network give Carat the scope to truly partner international advertisers who are winning the race for global media effectiveness. 5. Every brand, market and competitive situation requires a unique solution. Carat has a rigorous and proven framework to develop innovative and creative media solutions throughout its network. Its approach extends across all media 360 communication. It works with a suite of sophisticated analysis tools and research, helping it to understand consumers and to design media campaigns that deliver measurable improvements in its clients' business. 5. Incisive management of media delivers business advantage to Carats clients. Carat has invested over US$30 million on research and tools to manage and measure media effectiveness, across traditional and online media channels. 6. Consumers' relationships with brands and product sectors need to be linked to their relationships with media and attitudes to advertising. Analysis using tools such as Charisma and Ad-itudes helps Carats clients reach their core targets more effectively and develop strategies to attract new customers.

OPPORTUNITIES 1. Carat has tremendous growth and diversification opportunities in the field of advertising specially because of its skilled labour force and dynamic vision. 2. Carat has international tie-ups which means that there is ample of sco40. 2. Carat does not have a broad clientele base which means that it does not enjoy a very diversified brand

loyalty. THREATS 1. Carat is specializing only in electronic media. This overdependence on one media only is definitely fatal for future growth and sustained development. Today, there are many new entrants in the market and these agencies are making progress by heaps and bounds in all types of media. Carat needs to tap other media also to emerge as a genuine world leader. 2. Being a multinational agency, it is extremely difficult for small customers to approach this agency for their requirement. Carat should also concentrate more on Indian market which has a very large base of clientele. Firms worldwide have also established themselves firmly in the Indian Market which if Carat cannot do or does not do will hamper its growth and development process. CLIENTS 40pe for it to diversify its operations and tap the market worldwide.

41. Adidas Diageo EMI Group Ferrero International Fiat Henkel Kellogg Kraft Jacobs Suchard LVMH Mannesmann- Vodafone Merloni Beiersdorf Bertelsmann BMW Cable & Wireless Carrefour Coca-Cola Club Med Danone Group Nissan Pernod Ricard Pfizer Philips Renault Sara Lee SCA SmithKline Beecham Telefonica Walt Disney ADVERTISING AGENCY # 3 C A N C O THE WHEREABOUTS HEAD OFFICE : 518, Tulsiani Chambers, 41

42. Nariman Point, Mumbai 400 021. Incorporated in the year 1985-86, this rapidly-growing FULL SERVICE Agency located at the abovementioned place alongwith branches at Bangalore, Chennai & Delhi, has today achieved for itself a decent position in the jampacked arena of the biggies and is continuing its progressive march. It is solely indigenous with no foreign collaboration or foreign equity participation ; something really very praiseworthy. MODUS OPERANDI : Being a truly professional & STRENGTHS 1. Canco is a full-service agency providing all types of services related to the field of advertisingcompetitive in approach, Canco Advertising Pvt. Ltd. has a well-defined and a well-organised method of operations. When the prospective client approaches them for getting his purpose served, they conduct a SWOT analysis prior to acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome and patience- testing exercise for the client, it is designed in such a way that the agency gets a total assurance of the output. SWOT ANALYSIS OF CANCO : & marketing to its clients. 2. It conducts a SWOT Analysis of its clientele to assess their strengths and weaknesses. It also first understands the requirements of the client, their knowledge about the field of advertising, the 42

WEAKNESSES 4343. characteristics of the products and services to be advertised by its client, the type of target market and the cost constraints under which its client is functioning. This overall study about the client and its products helps Canco to devise and develop a proper marketing and advertising plan for its client which can optimize clients returns in the restrictive environment in which it functions. 3. As far as offering facilities to clients are concerned, amongst others, Canco also provides its client

the facility to make payments of its fees in installments which goes a long way in helping the client overcome its financial hurdles, if at all posed on him. This is a major breakthrough in client servicing and definitely is a major weapon in anyones hands to have a stable and a loyal base of clientele. 4. The top level of organizational structure in Canco consists of people who are professionals having the academic qualifications which are must in this field. Understandably, on this account there is bound to be professionalism in the approach, attitude and decisions made by the agency for its growth and development. 5. Canco offers its customers a wide selection amongst the media for canvassing their product or services. It advertises in newspapers, uses electronic media and also provides the facility of online advertising. As the choices are more for the customers, depending on their requirements, the characteristics of their products and their cost constraints, it helps them in selecting the proper medium for advertising their product or service.

OPPORTUNITIES 1. With professionals at the decision-making level, CANCO has an opportunity to expand its operations and diversify itself into new 4444. 1. The biggest weakness of Canco is its organizational structure. The organizational structure is such that people who are at the top most level in the hierarchy and who are professionals in this field are few whereas the line staff is quite much. This may lead to centralization of decision-making and an obvious influence of one or two people in policy decisions. Centralization of decision-making and authority being given to only few can prove to be disastrous for the growth of the organization. 2. It does not have a very broad base clientele. The list includes just a few major names like HDFC. This means that the agency does not enjoy the patronage of many of the big names and is dependent on the patronage of privileged few. 3. CANCO has not hired any of the eminent celebrities for endorsing the products and services of its clients. This is why the appeal created for the products and services of its clients does not reach to a large group of masses. 4. In this world of cut-throat competition where it is important for every agency to have some sort of transparency which will make popular its strategies, achievements, client patronage, diversification in services offered, CANCO has not made any effort to bring itself in the limelight. With no URL and no other self-advertisement, it still lingers in some dark corner of isolation.

THREATS 1. CANCO, though making use of print and electronic media for advertising products of its clients is a Jack of all trades, master on none. Specialisation is required in at least one sphere for expansion and further diversification. 2. The strength of the staff and the quality of human resource is also a major hindrance it is growth and development. When decision-making is centralized and that too based on few brains, there is bound to be lack of impulsiveness, aggression, timeliness and dynamism. 3. CANCO is suffering a big threat from other agencies operating in the same set of environmental conditions who are constantly offering more and more services to their customers and diversifying themselves day in,

day out. THE CANVAS ON WHICH CANCO PAINTS THE PRODUCT : 4545. avenues if it makes a concentrated effort on improvising the strength of professional staff. 2. Making use of the brand image of some celebrities for endorsing the products of its clients can give it an upper hand and help in having more reputed customers into its kitty. 3. It can project its achievements before the public and through the medium of website can lend more transparency to its operations. On these lines, this agency is working presently and a website is in the development stage.

46. CANCO provides its customers with a wide-range of media to select from viz., in fine print, or online through the medium of internet, external advertising like hoardings, pamphlets etc. HOW CAN I KNOW ABOUT CANCO? Well, being professional and competitive in approach, it is CANCO who approaches its prospective clients and not wait for the the clients to fathom for it. So, the client does not have to run in sun and shower for finding a proper canvas for its product. CANCO provides all the facilities for its client coupled with a very co-operative in-house, interactive response and hospitality. As far as payment terms is concerned, CANCO also takes care of the pocket-size of its customers. So on one hand, it gives you the option to pay the entire fees in lumpsum, on the other hand it also extends credit to its continuous and creditworthy customers. ORGANISATION STRUCTURE OF CANCO ORGANISATION STRUCTURE Mr. Ramesh Narayan, (Managing Director) Creative Director Copywriters (1) Mr. Dhananjay Neelam (2) Mr. Arun Total Staff Strength : 24 FACILITIES OFFERED BY CANCO TO ITS CUSTOMERS : 46

47. CANCO fixes the budget for its client depending on the requirements of the client, the characteristics of the product to be advertised, the target customers, the marketing strategy, the aggressiveness or otherwise of the advertising campaign, the type of customers to be targeted, the cost constraints of the environment in which the client is functioning etc. Based on this study, the budget is given by the agency to its client. AWARDS WON BY CANCO a. Given by Alert India, Non-Government Organization (NGO) which creates awareness for leprosy . b. Given by Advertising Club, Mumbai ADVERTISING AGENCY # 4 47

48. McC A N N - ERICKSON HISTORY McCann-Erickson WorldGroup was chartered in 1997 as a new model for integrated marketing communications. The WorldGroup was created by uniting best-in-class marketing communications firms in a range of disciplines behind a common mission and vision. In only a few years, McCann-Erickson WorldGroup has emerged as one of the world's leading integrated brand communications organizations--in global size, in professional quality, and in the number of clients we serve with multiple-communications services. Each WorldGroup agency retains the best of its distinctive heritage. Most notably, McCann-Erickson, is currently celebrating its 100th anniversary, representing a century of innovation and excellence in advertising and

communications The rich histories of the member agencies of World Group provide the foundation for the WorldGroup's unparalleled expertise and their unique shared culture. In its brief history, the WorldGroup has cultivated a common culture across its global network, based on shared strategic tools and a shared vision for effective marketing communications. WHOS WHO : John J. Dooner CHAIRMAN, CHIEF EXECUTIVE OFFICER McCANN- ERICKSON WORLDGROUP 48

49. Arther DAngello CHIEF FINANCIAL OFFICER McCANN-ERICKSON WORLDGROUP Eric Einhorn EXE. VICE PRESIDENT, CHIEF STRATEGY OFFICER MCCANN-ERICKSON WORLDGROUP President, CEO Max Gosling Representative Director McCann-Erickson Japan REGIONAL DIRECTOR Peter Hamilton MCCANN-ERICKSON ASIA PACIFIC CHAIRMAN AND CEO Robin Kent UNIVERSAL MCCANN PRESIDENT AND CHIEF OPERATING OFFICER Bill Kolb MOMENTUM WORLDWIDE REGIONAL DIRECTOR, McCANN-ERICKSON EUROPE, Ben Langdon MIDDLE EAST & AFRICA Pamela Maphis CHIEF EXECUTIVE OFFICER Larrick MRM PARTNERS WORLDWIDE VICE CHAIRMAN, CHIEF CREATIVE OFFICER Marcio M. WORLDWIDE DIRECTOR OF MULTINATIONAL ACCOUNTS Moreira MCCANNERICKSON WORLDGROUP REGIONAL DIRECTOR LATIN AMERICA/CARIBBEAN Jens Olesen MCCANN-ERICKSON WORLDWIDE EXECUTIVE VICE PRESIDENT Dr. Joseph DIRECTOR OF RESEARCH & INSIGHT DEVELOPMENT Plummer MCCANNERICKSON WORLDGROUP CHAIRMAN EMERITUS Stan Rapp MRM PARTNERS WORLDWIDE Joe Torre CHAIRMAN AND CEO TORRE LAZUR MCCANN HEALTHCARE WORLDWIDE Chris Weil CHAIRMAN AND CHIEF EXECUTIVE OFFICER 49

50. MOMENTUM WORLDWIDE MODUS OPERANDI OF McCANNERICKSON TOOLS McCann-Erickson WorldGroup's unique and proprietary shared tools help unite different marketing communications disciplines. They unite professionals in different offices around the world. They provide a common "language" for diverse teams working together for common clients. Our tools also set us apart. They are disciplined yet flexible. They combine our best practices with our cutting-edge thinking. We have specialized tools in various disciplines, but the centerpiece is the holistic Brand Optimization Map. Building off of the foundation of the Road Map to Effective Communications, The Brand Optimization Map incorporates the thinking behind the best strategy and planning processes of various disciplines into a unique, universal strategic service. By offering a holistic, integrated approach to strategy development, creative execution, and campaign evaluation, the Brand Optimization Map service can generate brand ideas that have the potential to solve clients' fundamental business problems and position their brands for long-term growth. CREATING THE DEMAND-CHAIN By systemically linking supply activities from sourcing and manufacturing to distribution and customer orders, corporations have successfully solved what is called the supply

chain. By enabling "just in time" delivery of products or services to meet demand, this process benefits marketers through increased efficiency, productivity and lower costs. 50

51. But in today's competitive marketing climate, with a renewed focus on building customer and top-line growth, demand creation is, arguably, the new success factor. To meet this important business need among all types of manufacturing and service corporations, McCann-Erickson WorldGroup has developed a service that links demand creation activities to make them more synergistic and powerful, thus helping corporations to create enduring marketplace growth. This proprietary service offered by McCann-Erickson WorldGroup is known as Creating the Demand Chain. This service, also known as the McCann Demand Chain, provides marketers with all the critical steps in demand creation in a cohesive, effective, and optimized manner. The ultimate benefit of the McCann Demand Chain service in whole, or in part, is to improve demand creation for companies and brands, increasing the sale of products and services and optimizing top-line revenue. Creating the Demand Chain encompasses a linked set of services involving six "links." Importantly, marketers can leverage the McCann Demand Chain service as a whole, or in part, since many of the service components can be adapted to the marketer's existing company activities. These six service elements encompass Demand Vision, Brand Idea, Resource Optimization, Brand Contact, Relationship Management and Demand Performance activities. While this service and its component services are delivered through an array of marketing communications operations across multiple channels, their unique linkage makes them more than the sum of the parts. Each element leverages proprietary, market-tested McCann-Erickson strategic, collaborative and measurement tools; and each is supported and optimized by specialized expertise, resources, creativity, software and infrastructure. 51

52. Brand Optimization Map The Brand Optimization Map (BOM) has been created by McCann-Erickson WorldGroup to provide our corporate clients with a new, more inclusive approach to strategy development, one that fully recognizes the evolving nature of brand communications. This strategy development service recognizes that brand marketers around the world are in a changing relationship to their customers. The Brand Optimization Map thus takes a broader and deeper strategic perspective to account for the new realities facing marketing-focused businesses today, including their required coordinated usage of a full range of marketing communications disciplines. In today's highly demanding business environment, the focus has shifted away from improving profits through operating efficiencies to generating top-line revenue growth. Demand creation is the new priority. Demand creation in the new marketing communications environment has become especially challenging. The technology revolution has surrounded customers and consumers with a plethora of information and entertainment options, and,

as a result they have become more elusive. The consumer is firmly in control. They expect choice, information, speed of service, and ease of acquisition. This new multi-channel environment adds a whole new dimension to the challenge of marketing integration. And with critical mass so hard to achieve, integration has become the new imperative. Traditionally, the focus of integration has been the development of a common brand platform or idea to unite the marketing message across multiple disciplines. This integration of content is still a core priority. But today, given the confusion of marketing channels, the increased sophistication and scope of all our marketing communications disciplines 52

53. and the emergence of new internet-based business models, there is a demand for a new kind of integration - the integration of resources. The Brand Optimization Map is a unique service that brings together these two fundamental needs in integration, content and resources, under a unified strategic framework to optimize the marketing communications plan. It leverages proprietary strategic principles, tools and software that identify marketing priorities, optimize budget allocation and leverage the full spectrum of marketing communications disciplines for what they do best, in the right "proportions." The Brand Optimization Map also introduces a proprietary method of evaluating the ROI of the fully integrated marketing program. From a standpoint of "the user," The Brand Optimization Map is intuitive in concept, but sophisticated in its ability to embrace the complexities of the new marketing environment. It facilitates collaboration, idea generation, resource allocation and creative execution. It is flexible in its ability to be used locally or regionally, for brands, subbrands or marketing initiatives, and for any specified marketing period. McCann-Erickson World Group uses The Brand Optimization Map service to leverage the specialized talent and creative energies of all our marketing communications "corridor" centers of expertise while working collaboratively with our clients to create powerful brand communications strategies. The following are the key steps of The Brand Optimization Map service: BRAND OPPORTUNITY Brand Health Check 53

54. In order to create big ideas, we must step back and look at the big picture. To this end, BOM's Brand Health Check service offers a duediligence process for assessing the overall health of a brand. The Brand Health Check service factors in evolving consumer perceptions, industry trends and competitive pressures. By forcing answers to critical questions, it provides the clarity to recognize major brand opportunities and solve brand problems. Using the framework of McCann's Universal Marketing Drivers - a set of marketing objectives that are common to all marketing communications disciplines regardless of media and message specifics the service captures the essence of the competitive marketing situation and diagnoses priorities for both content and resource integration. McCann Pulse McCann Pulse serves as a leading-edge method of generating consumer insight that informs marketing innovation and

execution. McCann Pulse insights feed the development of brand imagery, new products and services and channel strategy. The McCann Pulse service output is based on consumer dialogue held at McCannErickson offices around the world and is reported on the company intranet. Regional decisions can be made through the collection of key market data, and they in turn are used to create a comprehensive global picture of evolving trends. The focus of McCann Pulse is as much on the here and now, as where things are heading. Through proprietary probes, it uncovers what is important in the lives of consumers, how they view the world changing and 54

55. what their evolving goals are. These issues direct us to new product, service, and communications ideas. This McCann Pulse service provides the consumer backdrop for the evaluation of the Brand Opportunity as well as development of the McCann Brand Idea, via the Brand Footprint and McCann Selling Strategy service components. McCANN BRAND IDEA The Brand Optimization Map platform for content in marketing communications is determined by the Brand Footprint - a statement of the desired meanings, values and personality of the brand - and the McCann Selling Strategy which determines a powerful strategic idea for creative execution across all marketing communications disciplines. The Brand Footprint uses McCann's Brand Archeology techniques to uncover the full depth of meanings and values associated with the brand through the eyes of its customers and consumers. The McCann Selling Strategy draws on this "brand insight" to determine where the brand needs to be in the future, thus creating a relevant and credible strategic platform to "propel" the brand towards its destination. MARKETING MIX McCann Fusion 2.0 is a proprietary marketing mix software model that provides the optimal allocation for each marketing discipline to attack the stated marketing challenge. It looks at the marketing picture "top down," through software that captures relationships between our marketing communications disciplines and the Universal Marketing Drivers in the context of each category and country. The input to McCann Fusion 2.0 is 55

56. the Brand Health Check. The output is a benchmark budget allocation across marketing disciplines for Brand Optimization. As a complement to this "top down" evaluation, McCann's Marketing Task Cycle works "bottom up" to determine the ideal role for each marketing communications discipline. The Marketing Task Cycle identifies the barriers that need to be overcome, and assigns the marketing that can best overcome them. This ensures we address critical brand needs and leverage our marketing communications disciplines for what they do best, and to the extent that they can make a difference. BRAND PERFORMANCE: The McCann Brand Clout Index The Brand Clout Index measures a brand's competitive ability to attract and retain customers in the marketplace - both currently and in the future. It can be used to help quantify the Brand Health Check and to track the performance of an integrated program.

Thus it serves as the performance benchmark of The Brand Optimization Map. The McCann Brand Clout Index, managed by NFO WorldGroup research, is currently being rolled out of test market. Road Maps to Effectiveness : The Road Map to Effective Advertising The Road Map to Effective Communications Why the McCann Road Map Service was Created: Consumer behavior is harder to understand and predict. Media is proliferating. Distribution channels are changing. And competition is increasingly fierce. In this fast-moving environment, it is no wonder many 56

57. established brands lack a powerful strategy, often lose direction and many new products fail to connect with customers. To navigate the everchanging landscape, McCann-Erickson WorldGroup has developed The Road Map to Effective Advertising and, for total marketing communications programs, the Road Map to Effective Communications. This comprehensive service of proprietary tools is designed to create effective advertising and communications strategies that make an impact in today's cluttered marketplace. The McCann Road Map service results in communications strategies that create loyal customers when audiences are moving targets and strengthen core brand values. McCann Erickson WorldGroup recognizes the need for consistent, tested methods and tools for creating communications that build brand value around the world and across marketing communications disciplines. The McCann Road Map service is used globally to ensure the consistency and high quality of communications programs around the world. It is also used throughout the WorldGroup's range of marketing communications companies to make certain that integrated marketing campaigns work in synergy. The McCann Road Map's Key Components: The Road Map to Effective Advertising, the prototype system on which The Road Map to Effective Communications is based, is a full arsenal of services to guide the creation of effective communications. It begins with the development of consumer and brand insights and ends with the evaluation of the ideas that are used to create customers and build brand values. Components of The Road Map to Effective Advertising include: 57

58. McCann Pulse -- the on-going exploratory service for gaining an indepth understanding of consumer trends in order to develop relevant consumer insights. Brand Footprint -- for articulating the core brand essence that allows a brand to travel successfully across marketing landscapes. McCann Selling Strategy -- for converting consumer insights and brand essence into a focused communications strategy that is unified by a single, driving selling idea. And finally, McCann AdWorks -a qualitative consumer validation and feedback process to assess the effectiveness of marketing communication campaigns. McCann Pulse McCann Pulse is the regular monitoring of collective cultural undercurrents at work on global consumer groups. Its goal is to better understand how these undercurrents affect consumers and their consumption; whether observed crosscurrents are connected or isolated;

and whether they represent a momentary fashion, a sustainable trend, or a real cultural shift within a market. McCann Pulse is a proprietary service that provides complete immersion in the lives of consumers through ongoing monitoring and personal dialogues. Following are the three components of McCann Pulse: The Pulse of Popular Culture Indepth analysis of the content and symbolism of the various forms of media that both reflect and influence consumers. The Pulse of Observers of Change Ongoing dialogues with leading-edge thinkers whose fields of interest relate to our target consumer groups. 58

59. The Pulse of the Consumer Unconventional dialogues with selected consumer constituencies that probe personal insights and what is new in their lives. Pulse can offer clients: Insight into new values, ideas and trends An ability to talk more accurately in the language of consumers Consumer perspectives of major marketing issues or events Context for new creative ideas Brand Footprint The Brand Footprint service uses a tool that defines a brand's essence, so that marketers can manage and build their brands most effectively. It provides a clear understanding of which values need to be protected and leveraged in brand communications. And it helps charter a brand's growth into new territories, from expanding a brand in new geographic regions, to establishing it across multiple product or service categories, to extending it to an electronic marketspace. As brands expand, their value and meaning are often put at risk. These risks stem from the need to reconcile a brand's heritage with product innovation, and from the need to re-express the brand in the context of new competitive sets, new cultures, and new media. The Brand Footprint service is designed to protect the equity of the brand by conveying the brand essence clearly and succinctly, but with enough texture to inspire a range of marketing activities, from product development to integrated communications. The Brand Footprint articulates the three most central brand meanings and its three most prominent personality characteristics. McCann Selling Strategy 59

60. The McCann Selling Strategy is a service that is single-mindedly focused on generating brand-building ideas. Ideas that attract customers. Ideas that build corporate and brand franchises. And ideas that create marketplace dominance for clients. While traditional strategy has often been highly analytic, the McCann Selling Strategy offers imaginative conceptualization. It is guided by the McCann Selling Strategy platform, a process of analysis and idea generation that helps move a brand from its current position in consumers' minds to a desired perceptual space. The McCann Selling Strategy uncovers the motivations of conceptual target audiences and results in a strategic concept that pinpoints a Selling Idea. Unlike many traditional strategy briefs that are formulaic, the McCann Selling Strategy is a dynamic and living process. It's a way of thinking, working and creating as a team. It is a discipline pursued with passion - - that ensures that we stay true to our role of creating ideas that add perceptual value to clients' brands. McCann AdWorks As the last

stage of the Road Map to Effective Advertising service, McCann AdWorks tool ensures more effective marketing communications by providing feedback from consumers to a proposed campaign expression of the Selling Idea. McCann AdWorks service is tailored to a specific product, a market situation, a cultural environment. Unlike most leading ad testing firms that offer a simple go/no-go decision on creative work, McCann AdWorks is designed to help us understand whether we have communicated the Selling 60

61. Idea we set out to communicate, whether the Brand Footprint is understood and if the campaign is entertaining. With McCann AdWorks, we can take the lead in facilitating a real-time discussion about advertising effectiveness and help clients make the right decisions that lead to advertising, direct marketing or other marketing communication work that produces great marketplace results at the earliest stages of creative development. The McCann Road Map service of proprietary tools has proven valuable to a range of McCann-Erickson WorldGroup clients around the world. We believe that, as competition escalates on a global scale, our Road Map service will become even more valuable in the future. MOMENTUM EXPERIENTIAL MARKETING PLATFORM Today, consumers take functional features, benefits, quality, and a positive brand image as a given. What they want are breakthrough service offerings, cutting-edge products, and brands that they can relate to, connect with and incorporate into their lifestyles. Increasingly, marketers understand that consumers are living human beings with experiential needs: consumers want to be stimulated, entertained, educated and challenged. They are looking for brands that provide meaningful experiences and thus become part of their lives. The degree to which a company is able to deliver a desirable consumer experience - and use brands to do so - will largely determine its success in the global marketplace in the future. Trained to think of marketing and branding in terms of experiences, Momentum Experiential Marketing Services create unique, nearly impenetrable emotional bonds with consumers. These bonds are based on 61

62. consumers' real experiences with the brand on every interactive level. Momentum Experiential Marketing Services are designed to deliver the brand experience during both the pre-purchase period (brand in mind) and the post-purchase period or consumption period (brand in hand). At Momentum, we know that companies that spend money on acquiring customers (brand in mind) but fail to deliver on the brand promise (brand in hand) will ultimately fail, causing high dissatisfaction and high brand switching. STRATEGIC APPROACH TO DEVELOPING THE BRAND EXPERIENCE Our goal is to have the brand embody an experience that is valuable, optimal, and cannot be duplicated by competitors. MOMENTUM EXPERIENTIAL MARKETING SERVICES The ultimate goal of Momentum Experiential Marketing is to create holistic brand experiences for customers. Our strategic approach is guided by a simple

formula: Brand = Reputation (in the marketplace) + Promise (to the marketplace) + Experience (of customers) BRAND = REPUTATION (in the marketplace) The first step is to develop a Brand Footprint. The Brand Footprint is Momentum's unique tool for defining a brand's essence. The Brand Footprint is a coherent statement of a brand's meaning and personality. Specifically it embodies: What the brand "means". What the brand "means" is what a brand gets credit for in the eyes of consumers - its reputation across a number of key 62

63. dimensions. For example, Bayer means aspirin, doctor recommended, and prevention against heart attacks. What the brand "is". What the brand "is" is how we would describe the brand's dominant personality traits - generally those that correspond to its principal meanings. For example, Bayer is experienced, safe, and versatile. BRAND = PROMISE (to the marketplace) The Brand Footprint provides critical insight into how the brand is perceived in the marketplace; this understanding allows us to build meaningful relationships with consumers. The relationship is a promise that their experience with the brand will be personally relevant, consistent, meaningful and memorable - an experience that will be sought after time and time again. A Brand Promise is essentially a reason for being, a company's long-term ambition for their brand. It encompasses how the company views its industry today and tomorrow and the role they want their brand to play in it. It seeks to carve out a premium, nonduplicable point of differentiation in the marketplace. A Brand Promise sets forth the foundation needed for organizations to focus in on how they want the external world to view the brand, redesign operations and strategies in order to deliver on the promise, and then develop marketing communications to fit with the image they are trying to portray. A Brand Promise incorporates every aspect of a brand's business model in order to create a holistic brand experience for the consumer. At Momentum, we know that public impressions of brands are based only in part on communication and public images. More than anything, they are based upon 63

64. the daily explicit and implicit interactions that people have with a brand. In other words, the Experience. BRAND = EXPERIENCE (of customers) Experiences are personal events that occur in response to some stimulation (e.g. as provided by marketing efforts before and after purchase). An experience involves the entire living being and can be infused into a product, used to enhance a service, or created as an entity into itself. Experiences provide consumers a way to engage physically, mentally, emotionally, socially or spiritually in the consumption of the product or service making the interaction meaningful and real. A comprehensive set of Momentum Experiential Marketing Service Drivers creates the optimal consumer brand experience for your product or company. Momentum Experiential Marketing Service Drivers , Communications Advertising Promotions Co-Branding Events

Sponsorships Product Placement Visual/Verbal Identity Name Logos and Signage Product Presence Product Design Packaging 64

65. Brand Icons Web Sites and Electronic Media Site Dynamics In summary, to effectively develop a brand experience that is meaningful and continually sought after, we must: Fully understand the meaning of the brand, its personality and what consumers are willing to give the brand credit for in the marketplace - Brand Footprint. Relate the brand to the consumer in unique, consistent, relevant and meaningful ways, creating a non-duplicable point of differentiation - Brand Promise. Realize the promise in every interaction the consumer has with the brand - The Experience. Developing a sound strategy will allow us to determine the best way to actualize the promise as part of a full-scale consumer experience platform. Momentum Experiential Marketing Services enable us to bring the experience platform to life. Brand Citizenship Why the Brand Citizenship Service was created: Due to the revolution in global communications and commerce, McCann- Erickson WorldGroup recognize that there has been a sea change in the perception of brands. Brands, these global icons, have become the new symbols, the new coats of arms that represent vast global constituents. They cross borders and national culture at will. They are neither products nor companies; they are worldwide constituencies of millions around the globe bound by common beliefs, values and point of view that transcend all 65

66. traditional boundaries. They have become repositories and symbols of a global community of individuals who share core values, lifestyles and beliefs. Brand Citizenship is a service that facilitates the development of marketing and communications strategies in this ever more global constituency led market environment. It begins with the development of new mindset tools, and practices before moving on to how brands and corporations should operate in a world where brands begin to supercede states and other organizations. Brand Citizenship utilizes the very latest thinking in considering the brand in its new environment. The role of the brand steward in worldwide constituency management is examined: in particular how he identifies his citizenship, and the means and methods to enter a dialogue with the citizen. Analogies are drawn from the past in order to gain fresh insight on the role and the responsibilities of the brand steward - someone we come to consider more akin to a leader of a nation rather than a manager of a product. Attention is also given to the role of the employee who plays a vital part in Brand Citizenship by creating and perpetuating the brand. The Brand Citizenship Service incorporates the use of other McCann- Erickson proprietary tools such as The Brand Footprint and The Selling Strategy (as detailed in The Roadmap to Effective Communications) in the process of managing global Brand Citizenships. This process is broken down into three key areas citizenship definition tools, communications corridors and a pervasive worldwide system. The Brand Citizenship Service has proven valuable

to a range of McCann- Erickson WorldGroup clients around the world. We believe that in the 66

67. increasingly competitive global village in which we operate, our Brand Citizenship Service will become even more valuable in the future. SWOT ANALYSIS:- STRENGTHS:- 1) Planning is a major strength of this agency. This is because Mc Cann is the only agency whose president is the planner. 2) Also, as far as overall account planning ability , Mc Cann Erickson stands 4th amongst all advertising agencies worldwide. 3) On the creative ability front, Mc Cann Erickson bags third position in the list of top ten advertising agencies. 4) Mc Cann Erickson is a worldwide organization with its roots firmly penetrated into the soils of advertising and marketing with many subsidiaries and group concerns , Mc Cann Erickson has aggressively tapped the world market and consolidated its ground in all spheres. 5) Mc Cann Erickson is a highly professionally managed organization. Its executives are its major assets as is clear from their contributions to Mc Cann and their portfolios. 6) In India, an overall basis i.e. on the grounds of quality of client servicing, overall creative quality, account planning, overall partnership, media, market recognition, overall organization/people, billing procedures, management of financial dealings with clients &logistics, Mc Cann stands 4th in the list of Top 20 agencies. 67

68. 7) Mc Cann Ericksons biggest strength is the quality of human resources it possesses. With people like Sorab Mistry who is the CEO South-Asia Mc Cann- Erickson , Santosh Doshi, Prasoon Joshi and Chintamani Rao, Mc Cann not only races ahead of agencies like Contract , Mudra and Leo Burnett but also has a huge potential for the future. Prasoon Joshi, earlier creative director of O&Ms Mumbai Office, now a national creative director of Mc Cann Erickson is the second amongst Indias hottest creative directors. In a short period of time, he has managed to upstage a number of heavyweights to sit pretty at number two on the list of most admired creative directors. WEAKNESSES:- 1) Client Servicing is a major weakness for Mc Cann Erickson. On grounds of client servicing, Mc Cann is the 5th position in the list of 15 advertising agencies; way behind agencies like JWT, O&M, Lowe &Mudra. 2) Also, though McCann bags the third position on grounds of creative ability, it is mainly due to the strength of its Coke campaign and to a lesser extent the work on chlormint. 3) As far as media planning is concerned, universal McCann is not very strong. Its on the 9th position and just followed by R K Swamy .In terms of market recognition also, Mc Cann is not very commanding. McCann Erickson hasnt bagged too many awards and its also not very strong at managing its P.R 4) Universal McCann also lags behind most of its competitors in media buying and planning. That is to say, it does not incur much of an 68

69. expenditure on advertising i.e. buying media, research and development. OPPORTUNITIES :- 1) McCann Erickson is a worldwide

organization ; having its branches in many parts of the world. With international tie-ups and subsidiaries in every nook and corner of the world, McCann is in a very strong position to fruitfully tap the resources unique to every country and also make an optimum exploitation of the conditions and the environment prevailing in each of these nations. 2) McCann is empowered with professionals having diversified experience and skills in the field of advertising and marketing. This can be utilized by the organization in overcoming its above-mentioned weaknesses to a greater extent. 3) Empowered with a worldwide reputation, McCann is also capable of diversifying into other sectors of advertising and marketing and also other forms of media. Besides, being an organization of international repute, it is also capable of recruiting some of the best people in the industry on whose individual strengths it can continue to remain a worldleader and a trail-blazer in this field. THREATS :- 1) If McCann does not improve its client-servicing, then it can prove to a major threat in the growth of the organization. This is because of the fact that most of the other organisations who are close competitors of McCann have already improvised on their client-servicing abilities. 69

70. 2) McCanns poularity is mainly due to some of its successful campaigns. It has still to improve a lot on its creative abilities. Barring a few clients like Coke and Chlormint, the other ad campaigns of McCann have lacked creativity. So in order to remain in the top frame, McCann has to concentrate on its creativity. 3) Lack of proper media planning is also a major threat for McCann. It has to improve a lot on this aspect to survive the competition. ADVERTISING AGENCY # 5 MUDRA HISTORY It was a rather humble beginning ;No thunder, no lightning, no guardian angels showering of blessings In 1980, Mudra had one client - Vimal and a 500sq.ft. Office Its objective was very simple To create the best contemporary advertising which Mudra did. Mudra really is not sure if it made the advertising fraternity sit up and take notice But others definitely did which explains how nine years hence, Mudra was the largest Indian advertising agency And today, 23 years hence, Mudra have 125 clients nationwide And 3 agencies, 8 offices and 6 divisions in India and an equity partnership with DDB Worldwide And a capitalised billing of Rs. 7.8 billion And a 70

71. portfolio of some of Indias best brands And Agency of the Year awards six times And if its words are not enough, here are a few from its clients If youre looking for an agency that can be part of hits own team, that cannot be called an agency, but is a part of its family. That treats its products as their product and whose people will work as if theyre working in its organization, theres only one agency. That is Mudra. -Piruz Khambatta, CMD Rasna Enterprises Ltd. Theyre completely involved in the brand. They take an active role and see them as a partner. -Amit Jatia, MD McDonalds Hardcastle Restaurants. Spirit Every brand has a descriptor. Every brand has a baseline. And being in the business of creating them makes Mudra eligible for four Made in India Mudra was

created by a group of individuals whose only credentials were being Indian and knowing India Together they took India to the Indian and went on to become the largest Indian advertising agency Mudra (starting with the name) is made in India, for India, by Indians Success is Mudras Oxygen It is constant discontent and craving that has taken Mudra where they are It has forced them to continually raise their own benchmarks thereby helping them stay ahead of the competition. Success is what keeps them going, success is what they keep going for 71

72. PIONEERS IN ADVERTISING INDUSTRY In an industry that sets trends, to be a trendsetter is no mean achievement. Yet, in the 23 years of its existence, Mudra has set trend after trend. To the extent that if it is something new, Mudra is somewhere in the picture. Here are some of the examples : It was Mudra that first gave India double spread colour ads It was Mudra that first sponsored commercial telecast of a major sporting event with the India-West Indies series of 1983 It was Mudra that first branded a public issue, `Reliance Khazana' It was Mudra that made India's first telefilm, `Janam' It was Mudra that gave Doordarshan `Rajani", the serial that heralded a new consumer awareness in India It was Mudra that gave India its first academy for advertising The Mudra Institute of Communications, MICA It was Mudra that gave India its first transnational agency, Mudra International It is Mudra that gave India her first advertising archives, the MAGIndia DIVISIONS OF MUDRA DIVISION PROFILE Public Relations: Horizons Horizons is Mudras PR division. Currently, it has three full service offices in Delhi, Mumbai and Bangalore with access to human resources and infrastructure in Ahmedabad, Calcutta, Chennai, Chandigarh, Hyderabad, Indore, Jaipur and Pune 72

73. Horizons is an affiliate of Porter Novelli International the world's third largest PR network spread across 40 countries worldwide. Over the past ten years, Horizons has been instrumental in helping clients from various industries enter the Indian market. And having worked with a range of clients gives Horizons the experience to handle projects of any kind and magnitude. Horizons handle the Public Relations activity not only for some of Mudra's clients but for a large number of other corporates as well. Activities include communications strategy, Media relations, corporate communications, brand communications, event management, sponsorships, Employee communication and Crisis management. Founder A.G. Krishnamurthy :- We are not really sure whether the local astrologer saw what the boy born on the 28th of April, 1942 at Vinukonda in Andhra Pradesh would go on to achieve nor whether Shri A. G Krishnamurthys teachers saw that their student would go on To make advertising history In 68, he joined Calico Mills in Ahmedabad and in 72, moved to their advertising agency, Shilpi Advertising In 76 he moved to Reliance Industries as their advertising manager Four years later, on 25th March, 1980, he founded Mudra Communications. This is where the story begins: 73

74. Once he said that as a result of all the years he spent in Ahmedabad, a little bit of the Gujaratis entrepreneurial spirit has rubbed off on him May be such things do happen Shri Krishnamurthy started with 1 brand, Vimal The chain he set up today has a 125 links, a 125 clients In 91, he created the Mudra Institute of Communications, Ahmedabad (MICA), the only advertising school of its kind in Asia A couple of years later came Mudra International, again the first time an Indian agency had opened shop abroad In 95 Shri Krishnamurthy was nominated Advertising Person of the Year by A&M, Indias leading marketing journal In 97, he was inducted into the Calcutta Ad Clubs Hall of Fame In 98, the British magazine Media International nominated Shri Krishnamurthy as one of the 25 key figures in the international advertising industry In 99 he was awarded the AAAI-Premnarayen Award in recognition of his pioneering spirit and entrepreneurial vision After an eventful stint spanning 23 years as Chairman and Managing Director of Mudra, Shri A G Krishnamurthy retired on 31st March 2003 LIST OF AWARDS Mudra has collected many accolades over the years including the "Agency of the Year" award for 6 years besides the induction of Shri A.G.Krishnamurthy (CMD) into the Calcutta Ad Club Hall of Fame; his being chosen as the Ad Person of the Year by A&M; his nomination as "one of the 25 key figures of the international Ad Industry" in 1998 by British 74

75. Magazine - Media International; and the AAAI-Premnarayen Award in recognition of his pioneering spirit and entrepreneurial vision 1993 | Total awards 55 Agency of the Year - A&M 1994 | Total awards 52 Agency of the Year - Bangalore Ad Club 1995 | Total awards 84 1) Agency of the Year - A&M 2) Advertising Person of the Year (A.G.Krishnamurthy) - A&M 1996 | Total awards 90 Agency of the Year - Calcutta Ad Club 1997 | Total awards 67 Agency of the Year - The Pioneer Hall of Fame (A.G.Krishnamurthy) - Calcutta Ad Club 1998 | Total awards 87 The British magazine "Media International" nominated A.G.Krishnamurthy as one of the 25 key figures of the international advertising industry 1999 | Total awards 60 Agency of the Year - Delhi Ad Club AAAI - Premnarayen Award A.G. Krishnamurthy in recognition of his pioneering spirit and entrepreneurial vision 2000 | Total awards 72 (36 Awards of MAG) 2001 | Total awards 50 (16 Awards of MAG) Creativity 31, USA (7 Gold Awards) 2002 | Total awards 27 (2 Awards of MAG) 75

76. MAJOR CLIENTS Product/Service Brand Name Client Name Category Adhesives Jubilant Vam Organics Air Coolers Symphony Symphony Ltd. Airline Air India Air India Anti-Infective Prickly ItchGuard DermiCool Paras Pharmaceuticals Ltd. Heat Antiseptic Creams - Heel Krack SR Paras Pharmaceuticals Ltd. Care Antiseptic Lotion BoroSoft Paras Pharmaceuticals Ltd. Automobile Dealers Popular Popular Vehicles & Services Ltd. DIVISIONS D.D.B PROFILE: In 1988, Mudra decided to collaborate with an international agency an agency with the vision, experience and determination to set standards for the profession .That agency was DDB Worldwide, part of the Omnicom Group. This affiliation

gives them access to the best creative product, latest information technology, media modelling, direct marketing and other international advertising and marketing inputs 76

77. But the theme that binds them together is their definition of advertising. The concept of the Third Dimension as they put it, and Return on Invesent (ROI) as their colleagues at DDB see it. Over the years, the interactions have led to a better creative product and a better understanding of product categories It is this spirit of trying to be the best at everything one does that today binds Mudra and DDB together INTERACT VISION: Interact Vision Advertising and Marketing (P) Ltd. was the combination in 1992 of two Mudra Group companies, Interact and Vision. If there is anyone today who can claim to be as close to India and Indian values as Mudra is, it is Interact Vision This tradition has helped shape its characterThe agency does not just take on an account It adopts the business sharing the burdens, responsibilities, rewards and disappoinents. Today, the Interact Vision portfolio includes several multinationals as well. At Interact-Vision, the stress has always been on effectiveness .This they did by never losing sight of the three factors that have contributed to our effectiveness - relevance, impact and focus. In 1980, Mudra started with a modest turnover of Rs.30 lakh in the first year of operation The first few years indicated a placid growth rate of 25% From 1985 onwards, turnover accelerated at a furious pace 77

78. Managing Director & Chief Executive Officer Mr. Madhukar Kamath Executive Director & Chief Creative Officer Mr. Alan DSouza Executive Director & Head Leadership, Learning & New Initiative Total Branding (South) Change Mr. R. Lakshminarayanan Mr. Dilip Upadhyaya Mr. Prabir Purkayashta Branches Bangalore & Hyderabad / Kolkata AhmedaChennai Kochi Mumbai Bad Vice President Vice CFO Hemant Exe. Vice S. President Mishra President President Radhakrishnan Mr. Bal Jude Mr. Branch Director Deshpande Director Fernandes Chandan Manager Amritendu Roy Nath Ashok Mr. G. Vidyasagar Serenity SWOT ANALYSIS OF ADVERTISING AGENCIES - A COMPARATIVE STUDY 78

79. S. Basis No. Name of the agency National Agencies International Agencies Xebec Mudra Canco Carat McCann Ercikson 1 Does the agency conduct a SWOT Analysis of its clients i.e. whether it assesses the strengths, weaknesses of its clients and whether Yes Yes Yes Yes Yes it makes an assessment of the level of knowledge possessed by its client pertaining to the field of advertising 2 Does the agency This is an This is an have any international international international tie-ups agency with No No No agency with subsidiaries subsidiaries all all over the over the world world 3 Does the agency enjoy patronage Mostly the Mostly the from any Yes Yes No clients are clients are multinational clients multinational multinational ? 4 Scope of Medium Large Medium Large Large operations 5 Does the agency specialise in any Yes Yes No Yes No

one type of media ? 6 Media in which the Print Print There is no Electronic There is no such agencies specialise such one one media in media in which which this this agency agency specialises specialises 7 Quality of human The top level As far as the As far as the As far as the As far as the top resource of top level of top level of top level of level of management management management is management management is does not is concerned, concerned, the is concerned, concerned, it comprise of it consists of office-bearers it consists of consists of people who professional are professional professional are from the people as is professional people as is people as is field of reflected in people having reflected in reflected in the adveritising the approach an academic the approach approach and or who are and the background in and the the decisionhaving some decision- the field of decision- making activities sort of an making management making of the agency. experience. activities of or marketing activities of The founders of Though they the agency and having an the agency this agency were 79

80. may be well- experience in themselves men groomed in this field. of dignified their However, the stature, decision- number of personified making people in the background and abilities and top level who dynamic framing of have the entrepreneurs. It policies, they decision- is basically don't have making because of the that proper authority are foot-work of academic too few and the these founders background line staff is on which the relatively much successors have tread and led the agency to great heights of name and fame. 8 Decision-making Largely Decentralised Largely Decentralised Decentralised centralised centralised 9 Area of operation Local as well Local as well Local Mostly Mostly as as international international international international 10 Clientele base Broad based Broad based Not broad Broad based Broad based ; based throughout the world 11 Transparency of The agency The agency Although the Though, the Though, the operations believes in believes in agency has not agency has agency has making its making its created any given plenty given plenty of operations operations website of information information transparent transparent (which is about its about its as is quite as is quite presently operations on operations on evident form evident form under websites etc. websites etc. it is the fact that the fact that a development) it is practically a lot of lot of being a local practically difficult for a information information and a small- difficult for a small can be can be sized agency it small prospective obtained by obtained by is possible for prospective customer to any one from any one from local and customer to hunch out for various various medium-sized hunch out for them sources like sources like prospective them websites, websites, customers to personal personal avail of its visits etc. visits etc. services. 12 Types of customers Mostly Mostly Every type of Mostly Mostly catered to corporates corporates customer from corporates corporates individuals to corporates. 13 Whether the agency has engaged the No services of any No information Yes Yes No information celebrities for available available

endorsement of its clients' products and services ? COMPARISON BETWEEN GROSS INCOME OF TOP 25 AGENCIES 80

81. S.No. AGENCY GROSS INCOME (Rs. In lakhs) (2001) 1 JWT 20743 2 O&M 12587.4 3 Mudra 10696 4 FCB-Ulka 8648.4 5 Rediffusion DY & R 7520.4 6 McCann-Erickson India Ltd. 6183.6 7 R K Swamy / BBDO Advertising 4415.9 8 Grey Worldwide (I) Pvt. Ltd. 4250 9 Leo Burnett India Pvt. Ltd. 3759.1 10 Contract 3209.8 11 Euro - RSCG 3060 12 Pressman Advertising 2928.4 13 MAA 2676 14 IB&W Communications 2665.7 15 Triton Communications Pvt. Ltd. 2186.2 16 Ambience D'Arcy 2180 17 Bates India 2107.2 18 Percept Advertising Ltd. 2076.6 19 Saatchi & Saatchi 1599.8 20 TBWA Anthem 1438.9 21 Everest 1329.6 22 Madison Communications P.Ltd. 1148 23 SSC & B Lintas 1120 24 Publicis 1108.1 25 Quadrant 985.8 81

82. 21000 COMPARITIVE STUDY 20000 19000 18000 17000 16000 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Saatchi & Saatchi Grey Worldwide (I) Pvt. Ltd. Triton Communications Pvt. Ltd. Quadrant IB&W Communications Contract AGENCY Euro - RSCG Madison Communications P.Ltd. R K Swamy / BBDO Advertising Rediffusion DY & R JWT Ambience D'Arcy Mudra McCann-Erickson India Ltd. TBWA Anthem Leo Burnett India Pvt. Ltd. O&M SSC & B Lintas Pressman Advertising MAA Bates India Publicis FCB-Ulka Percept Advertising Ltd. Everest ADVERTISING AGENCIES Growth of Advertising Agencies : The XIIth Agency Report of A&M magazine makes the remarkable disclosure that the ad industry remained steady in 2000-01, with a growth figure of 23.51 per cent, only slightly less than the XIth Agency Report's figure of 24.83 per cent for 1999-00. No surprise there, given that the ad industry growth rate is typically four times the economic growth, in any country (though India had a higher ration during the mid-1990's boom). 82

83. The magazine has made a shift in the reporting emphasis following change in accounting policies of many agencies, from capitalised billings earlier to gross income. "This makes no difference to the agency ranking, since it was always done by gross income - which is the audit-certified figure that agencies submit to A&M. But it does influence the way we speak of the industry's size," the survey said. In rupee terms, the Gross Income of the Top 100 agencies stands at Rs 12,753.60 million for 200001, as compared to their total of Rs 10,325.81 million in 1999-2000. In terms of Capitalised Billings (Gross Income multiplied by 6.67), the industry figure for 2000-01 stands at Rs 85,066.51 million. Together, the Top 5 participating agencies this year, HTA, O&M, Mudra, FCB-Ulka and Rediffusion DY&R (Lowe Lintas opted not to participate), account for 47.2 per cent of the Top 100's total Gross Income. WPP Group has penetrated India so well (with HTA, O&M, Contract, Fortune, Equus and Rediffusion DY&R) that it has a 34.7 per cent share of the Indian ad pie in 2000-01 with five participating agencies in this year's report. More than

half the Top 100 agencies (62) have grown between 0 and 40 per cent. Eight agencies have growth rates above 100 per cent - Bates, Capital, Rashtriya, MX, Brand.comm, Quiksel, Triple ESS and RMG. Of the Top 100, 13 agencies have reported negative growth - Impulse, Interact Vision, National, Crescent, Thumbprint, Elegant, Shells, Avishkar, TV ADS, Siddhartha, Batha, Wide Reach and TAS Vision. 83

84. The big surprise comes from Moulis Euro RSCG, which jumps from No 44 to No 17. The Havas umbrella seems to have worked some wonders. In the globalisation era, big agencies have found it impossible to survive without any foreign partnership. That's the power of globallynetworked advertising agencies - still the biggest force of change in Indian advertising, a decade after the market was thrown open to foreign invesent. Though Indian agencies have no real cause to rejoice as growth may not be anything compared to the advertising exuberance of the mid1990s when growth peaked at 49.5 per cent in 1994-95, but it is good by global standards, the magazine noted while releasing the survey report 84

85. Top 20 Advertising Agencies RANK AGENCY 1999-00 2000-01 1 1 Hindustan Thompson Associates Ltd 2 2 Ogilvy & Mather Pvt Ltd 3 3 Mudra Communications 4 4 FCB-Ulka Advertising Ltd 5 5 RediffusionDY&R 6 6 McCann Erickson (India) Ltd 7 7 R K Swamy/BBDO Advertising Pvt Ltd 8 8 Grey Worldwide (I) Pvt Ltd 9 9 Leo Burnett India Pvt Ltd 11 10 Contract Advertising (India) Ltd 15 11 Euro RSCG Advertising Pvt Ltd* 10 12 Pressman Advertising & Marketing Ltd 12 13 MAA 13 14 iB&W Communications Pvt Ltd 16 15 Triton Communications Pvt Ltd 18 16 Ambience D'Arcy Advertising Pvt Ltd 44 17 Moulis Euro RSCG Advertising Service Pvt Ltd -- 18 Bates India 17 19 Percept Advertising Ltd 19 20 Saatchi & Saatchi Ltd Top 20 Advertising Spenders CHANGE OVER RANK COMPANY YR. ENDING AD SPEND PRVS YEAR (%) 1999-00 2000-01 1 1 Hindustan Lever Dec 2000 696.58 -5.60 2 2 ColgatePalmolive India Mar 2001 213.96 10.30 3 3 ITC Mar 2001 183.32 -0.96 4 4 Dabur India Mar 2001 146.08 21.71 -- 5 LG Electronics India Dec 2000 131.4 70.16 85

86. 5 6 Nestle India Dec 2000 128.46 13.59 6 7 McDowell & Co Mar 2000 118.94 26.60 7 8 Bajaj Auto Mar 2001 102.53 13.62 -- 9 Maruti Udyog Mar 2000 88.20 34.39 -- 10 Herbertsons Mar 2000 85.93 13.16 9 11 Britannia Industries Mar 2001 85.29 10.75 8 12 Godfrey Phillips India Mar 2000 85.15 30.94 12 13 Marico Industries Mar 2001 79.82 36.03 -- 14 Godrej Industries Mar 2001 77.54 106.55 14 15 Telco Mar 2001 71.89 47.56 25 16 SKB Consumer Healthcare Dec 2000 69.36 61.98 10 17 Tata Tea Mar 2001 64.63 -5.22 -- 18 Hyundai Motor India Mar 2000 63.73 222.52 17 19 Hero Honda Motors Mar 2001 61.12 30.57 -- 20 Reckitt Benckiser India Dec 2000 61.01 8.48 Source : www.mind-advertising.com/us/om_us.h CHANGE OVER RANK COMPANY YR. ENDING AD SPEND PRVS YEAR (%) 2003-04 2004-05 1 1 Coca cola ltd Dec 2005 3900 25.81 2 2 Pepsi ltd Mar 2005 3800 31.03 3 3 Colgate pomolive Mar 2005 795 35.89

4 4 ITC Mar 2005 710 26.78 -- 5 Reliance ind ltd Dec 2005 690 20.72 5 6 Videocon ind ltd Dec 2005 680 41.67 6 7 Dabur India ltd Mar 2005 400 60.00 7 8 Hinhustan ltd Mar 2005 350 55.55 -- 9 Nestle India ltd Mar 2005 325 47.05 -- 10 Bajaj auto ltd Mar 2005 190 85.88 9 11 Britannia Industries Mar 2005 85.29 10.75 8 12 Godfrey Phillips India Mar 2000 85.15 30.94 12 13 Marico Industries Mar 2001 79.82 36.03 -- 14 Godrej Industries Mar 2001 77.54 106.55 14 15 Telco Mar 2001 71.89 47.56 25 16 SKB Consumer Healthcare Dec 2000 69.36 61.98 86

87. 10 17 Tata Tea Mar 2001 64.63 -5.22 -- 18 Hyundai Motor India Mar 2000 63.73 222.52 17 19 Hero Honda Motors Mar 2001 61.12 30.57 -- 20 Reckitt Benckiser India Dec 2000 61.01 8.48 Agencies Ranking ( on the basis of services offered) Agency Ranks (On the basis of) Creativity Client Account Ability Servicing Planning Ability O&M 1 2 2 Lowe 2 3 3 McCannErickson 3 5 4 Contract 4 6 6 JWT 5 1 1 Mudra 6 4 7 Leo Burnett 7 9 8 Publicis Ambience 8 15 15 Enterprise Nexus 9 14 11 Rediffusion DY & R 10 8 10 FCB-Ulka 11 7 5 Grey Worldwide 12 10 13 R K Swamy BBDO 13 11 12 Bates 14 12 9 Euro RSCG 15 13 14 87

88. On the basis of topography West North East O&M 1 1 1 Lowe 2 3 3 JWT / HTA 3 2 2 Contract 4 6 5 McCann 5 4 9 Leo Burnett 6 8 NA* FCB Ulka 7 7 NA* Mudra 8 5 6 Publicis Ambience 9 NA* NA* Grey Worldwide 10 10 NA* Rediffusion DY & R NA* 9 7 Bates India NA* NA* 4 Saatchi & Saatchi NA* NA* 10 * NA = Not Available 2001 Top 10 Multinational Advertisers (Ad Age International Nov 11, 2002) 1. Procter & Gamble Co. Worldwide advertising expenditure US$3,820.1 million 2. General Motors Corp. Worldwide advertising expenditure US$ 3,028.9 million 3. Unilever. Worldwide advertising expenditure US$3,005.5 million 4. Ford Motor Co. Worldwide advertising expenditure US$2,309 million 5. Toyota Motor Corp. Worldwide advertising expenditure US$2,213 million 6. AOL Time Warner. Worldwide advertising expenditure US$2099.8 million 7. Philip Morris. Worldwide advertising expenditure US$1,934.6 million 88

89. 8. Daimler Chrysler Worldwide advertising expenditure US$1,835.3 million 9. Nestle SA. Worldwide advertising expenditure US$1,798.5 million 10. Volkswagen Worldwide advertising expenditure US$1794.1 million Major Advertisers by Region 2001 Top 10 Multinational Advertising Agencies (Ad Age Intnl., April 2002) 1. Dentsu. Worldwide gross income: US$2,078.1 million 2. McCann-Erickson. Worldwide gross income: US$1,857.9 million 3. BBDO Worldwide. Worldwide gross income: US$1611.7 million 4. J. Walter Thompson. Worldwide gross income: US$1,536.1 million 5. Euro RSCG: Worldwide gross income: US$1,441.2 million 6. Grey. Worldwide gross income: US$1,321 million 7. DDB Needham. Worldwide gross income: US$1,214.6 million 8. Ogilvy & Mather. Worldwide gross income: US$1,135.4 million 9. Leo Burnett. Worldwide gross income: US$1,072.3 million 10. Publicis Worldwide. Worldwide gross income: US$1,066 million 89

90. COMPARISON OF AGENCIES ON THE BASIS OF WORLDWIDE GROSS INCOME S.No. Name of the Agency Worldwide Gross Income (Rs. In millions) 1 Dentsu 2078.1 2 McCann-Erickson 1857.9 3 BBDO 1611.7 4 J. Walter Thompson 1536.1 5 Euro RSCG 1441.2 6 Grey 1321 7 DDB Needham 1214.6 8 Ogilvy & Mather 1135.4 9 Leo Burnett 1072.3 10 Publicis 1066 Worldwide Gross Income 2100 2000 1900 1800 1700 1600 1500 Gross Income 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 Thompson Grey Needham Ogilvy & RSCG Publicis Dentsu McCann- Burnett Erickson J. Walter Euro BBDO Mather Leo DDB 1 2 3 4 5 6 7 8 9 10 Name of the Agency GROWTH OF ADVERTISING AGENCIES Year No.of Agencies Year No.of Agencies 1939-40 14 199293 591 1949-50 61 1993-94 620 90

91. 1959-60 74 1994-95 651 1969-70 108 1995-96 702 1979-80 168 1996-97 718 1983-84 310 1997-98 741 1987-88 460 1998-99 750 199091 568 1999-2000 757 1991-92 588 Growth of Advertising Agencies 800 700 600 500 No. of Agencies 400 300 200 100 0 1939- 1949- 1959- 19691979- 1983- 1987- 1990- 1991- 1992- 1993- 1994- 1995- 1996- 19971998- 1999- 40 50 60 70 80 84 88 91 92 93 94 95 96 97 98 99 2000 Years SUGGESTIONS AND RECOMMENDATIONS The world of advertising and advertising agencies has experienced a revolution. Its a jungle out here, the one who slays survives. In an attempt to be fiercer and outsmart the competitors, today the agencies dont spare a second thought in going to any heights. Quality is compromised, games are 91

92. played and the poor customer is made the scapegoat. Code of conduct is restricted to paper, the reality is different and darker than it appears. We may find agencies doing some honest business but the names are few and heard once in a blue moon. In a bid to conquer the world, we have seen many a agency becoming Alexander. In view of the current scenario and with a vision of the future, the following recommendations can be cited:- 1) Agencies should accept more social responsibilities and endeavor towards their maximum fulfillment. They can win the game by winning the customers. Feelings should not be encashed and emotions should not be auctioned. There have been recent cases of agencies making misuse of situations of immense tension and riots in propoganding their product in a bid to rake in a big fortune. 2) Agencies must be made to contribute a fixed percentage of their gross incomes for advocating social cause. This will also help agency earn a very good patronage and maximize customer loyalty. 3) There should be certain standardization of fees and benchmarks should be laid down for the advertisements that are put on display on our minds, in aspects of quality, vieworship. 4) They should improve their accessibility and transparency. Though big agencies cater to the needs of the elite, they should also be available to the less deprived ones too. Education and knowledge should be spread through these agencies in the form of advertisements. 5) Products and services should be made to pass through several tests

before they are put to display. Also a SWOT analysis of the product or the service to be advertised should be done pre-hand. 92

93. 6) After sales-services should be improved and customers should be spontaneously attended at the times of dissatisfaction and appeal. 7) Services provided should be diversified and new avenues should be tapped for own growth and for providing better service to everyone. 8) Outsmarting competitors in a bid to capture the market at the cost of quality and customer well-being should be replaced by healthy competition and a humane touch. 9) Co-operation should be provided at all levels and accessibility even to the master minds should be improved for better management and better relationships. CONCLUSION From the study presented hereinabove, we come to know many faces of the multi-faceted world of advertising agencies, some dark horses and some aggressive lions. Each and every agency is a world in its own ----- with uniqueness in its modus operandi, variance in their aggressiveness and 93

94. intensities and relativity in their positions. From agencies catering to the needs of localised with a modest level of infrastructure and human resources, we have seen king-size ones who make it to the Cannes every year. The aim is the same, the game is different. The goal is the same, the ball is different. The mission is the same, the vision is different and the objective is the same, the perspective is different. They are all preparing the same dish to satisfy guests like us but their recipe is unique. Their manouverability, vulnerability to threats, opportunities, strengths and their intrinsic weaknesses posing obstacles in their journey to the sky all vary drastically and understandably. though the blood running in their veins is the same, their brains are unique thinktanks. Whatever may be the unity in diversity, the world of advertising is very much flambouyant, enthusiastic, glamourous and appealing and so is the fantasyland created on our minds by the advertising agencies. It's only because of these advertising agencies that we are subject to mind-boggling bombardment of commercials and advertisements. This bombardment has not only increased the level of awareness amongst us but also the stupendous technological, industrial and commercial development but has also given a new makeover to our static lifestyles. If knowledge is power, then we are so empowered due to the powerful impact of the Medias on our minds, bodies and souls. Although for these professional-to-the-core agencies, its nothing but a mint, for us its a revolution. Revolution resulting into evolution --- of products, services and people. Just like food without salt is indelible, a day in one's life without an exposure to some new advertisement is unbelievable. Just as every coin has two sides and every person has two faces, a fair and a dark one, so do these agencies. All that glitters is not gold and all that is unrequired is also sold. 94

95. These advertising agencies have doubtlessly opened many new paraphernalias and made the wind of revolution blow on our continent. They have enlightened the entire country, made the life of an ordinary

laymen extraordinary, raised the standard of living, helped in the economic and commercial development, unfolded a red carpet for new ideas, imagination, innovations and qualitative sophistication but then they sometimes appear in front of our eyes as skeletons dressed in bridal vein. Why is it so? Some call it over-professionalism, others call it overmaterialism but then we all know that today everything is fair in love, war and advertising. Every agency wants to pull down the other to make it to the top. Well, in this cat-race and times of cut-throat competition, the common layman always gets the maximum benefit since he is responsible for the bread and butter of these agencies. However, it is also pertinent to note over here the fact that many a time the audience is subject to foulplay. Unfortunately, in an attempt to scale the highest peak, the consumer is made a dumping ground where even garbage is covered by garland for easy dumping. The agencies make use of super-humans in the field of cricket, movies, T.V. sops to endorse the products and services of the companies which may also be of a sub-standard quality for they know that imitation and emulation is in the nerves of every Indian and that glamour always has a mesmerising, hypnotising impact on nerve cells. It is a very sorry state of this industry that following ethics is itself unethical today, and ethical is considered as impractical. The books propose, the crooks dispose. And every damage to health and peace is backed by the sincerest of the justifications and the most convincing demonstrations churned out from the advertising gurus' brain factories. 95

96. Take the incident-of-the-day case of soft drinks like Coke and Pepsi. Brands of multinational giants and advertised so appealingly that they have created an appalling effect. Too late to realise the fact (or is it ?) and too late to affect the producers' and marketers' images. Well, it is certain that many injurious products are also publicised as items of harmless consumption and the buyer is an easy prey to the bombardment of sophisticated publicity. What is required of these agencies is to unearth the deeply buried ethics and codes of conduct under the burden of overprofessionalism, over- materialism and selfish profiteering. Though profits are the key benchmarks for every company, no profit can last on dissatisfaction and denudation of consumer and his welfare. "A stitch in timesaves nine" and "it is never too late to mend". It will announce a bright future for producers and advertising agencies that advertise their products and services if they stitch one button before the shirt becomes buttonless. And ...... buttonless shirts are immediately discarded. BIBLIOGRAPHY & REFERENCES : 1. Marketing Management ---- Philip Kotler 2. Advertising Management Amita Shankar 3. Adverting, Marketing and Sales Management- Takur D 4. The Economic Times 96

97. 5. Brand Equity 6. INA Handbook 2000-2001 WEBLIOGRAPHY 1. Www. Indiantelevision.com 2. www.adage.com 3. www.mind-advertising .com 4. www.xebecindia.com 5. www.mudra.com 6. www.eurorscg.com 7. www.mccann.com 8. www.perceptindia.com 9. www.carat.com 10. www.thehoot.org 11. www.mind-advertising.com/us/om_us.htm 97