1.

EXECUTIVE SUMMARY
As the profit earning and enhancement is the focus of any company, have to compete
rivalry in the market to increase market share. Beating competition is not easy task.
Company have to increase market shares through increasing potential customers for
high sales volume. Attracting potential is become focusing centre for organization.
Costumers are attracted by various activities of marketing.
Marketing today is mainly about creating customer value and building customer
relationship that benefits both parties. The world of marketing is fast changing, and
because of the new technology, the marketing channels have changed during the past
years into the Internet.
Different ways of marketing will attract different type of customers and that can give
challenges to companies. In this study of direct marketing, status of direct marketing
is studied. The purpose of this study is to study current status of direct marketing
ways to attract more customers. Whenever company is trying to seek more customers,
this study will be helpful to the company to find out and evaluate different and
effective direct marketing ways for them.
Direct selling is studied with the help of descriptive research method. Direct
marketing is explained in this study. Data is collected from secondary data sources.
Main sources of secondary data are reports of correspondent industry and various
newspaper. Websites are as considered for the source of data collection.
 2. OBJECTIVES
Objective of Study are,
1. To study direct marketing and its methods.
2. To study current status of direct marketing.
3. To study the factors influencing direct marketing.
 3. INTRODUCTION
1.1 Direct Marketing
Direct marketing is a channel of Marketing, of advertising communication and
distribution serving the needs of a wide spectrum of business and non-profit
organizations. Direct marketing is increasing in importance in the field of marketing
and according to (Chaturvedi-1999) it is of strategic importance in reaching today‘s
consumer. It makes a significant contribution to our economy, as virtually all big
businesses; respond to societal change in which the marketer contacts consumers
through a medium and growing sophistication of technology. Direct Marketing lowers
marketing costs e.g. direct response (a method of direct marketing) in which the
manufacturer makes direct sales contacts with consumers, provides consumers with
enough information about products and services to make a buying decision. Other
methods of direct marketing e.g., direct mail, print advertising, catalogues, the
telephone, the personal computer, cable television, and other media, are used to
transfer product information and knowledge to consumers. According to (Mary Lou
Roberts, Paul Berger 2000) direct marketing communication is targeted to specific
individuals not to segmented mass markets by way of mass media.
Direct Marketing is the use or access or resort to the direct channels to reach
customers and deliver goods and/or services to customers without using marketing
middlemen, intermediaries or agents or brokers. The channels of Direct Marketing
include face-to-face selling, direct mail, catalogues, telemarketing, response
advertising, direct selling methods like, multi-level marketing, company‘s
salesmen/agents, interactive Kiosks, web sites, mobile devices, a host of devices.
According to (Mary Lou, Paul Berger 2000), the strategies of direct marketing have a
distinct level of personalization, meaning the communication is directed to an
individual rather than to a mass of customers. Therefore, the strategies of direct
marketing are less visible to competitors than are strategies that must be implemented
in mass media. The many definitions of direct marketing also convey the same.
Direct marketing uses a variety of media, including mail, magazine ads, newspaper
ads, television and radio spots, infomercials (also television but longer format), free-
standing inserts (FSIs), and card decks. This flexibility allows direct marketing to
provide interactivity and measurability and still be able to take advantage of new
technologies. By being able to utilize virtually any media, direct marketing will lead
marketers into the 21st century as interactive television, the information highway, and
other new technologies become a reality.

1.2 Definitions of Direct Marketing

1. Any advertising activity which creates and exploits a direct relationship between
the business and their prospect/s or customer/s as an individual. (Drayton Bird –
1990)

2. Direct Marketing is any type of marketing that seeks some sort of reply from the
reader, typically by phone, mail, E-mail, fax etal Direct Marketing print materials
usually have response coupons or reply cards, the reader can use to request more
information or order the product – TV & radio commercials typically use toll-free
numbers. (Robert Bly – 1998).

3. Direct Marketing is simply a marketing operation where the sale is made direct to
the consumer, without resort to normal retail outlets, and includes employing door-to-
door selling and traditional mail-order and off the page (response ad) (Bill Living
stone 1998 )

4. Direct marketing is promotion via a direct mail, e-mail or telemarketing initiative,

guaranteeing to identifiable individuals in a chosen target audience in return for the
price of postage, computer time or telephone calls pub the cost of producing the mail
shot, email message, or telesales operator‘s script. (Paul & others, 2003)

1.3 Objective of Direct Marketing

 A purchase over the telephone or by post
 A request for a catalogue or sales literature
 An agreement to visit a location/event (e.g. An exhibition)
 Participation in some form of action (e.g. Joining a political party)
 A request for a demonstration of a product
 A request for a salesperson’s visit.
1.4 Methods of Direct marketing
Direct marketing, then, is the distribution of products, information and promotional
benefits to target consumers through interactive communication in a way which
allows response to be measured. It covers a wide array of methods, including the
following:
 Direct mail
 Telemarketing
 Direct response advertising
 Catalogue marketing
 Text messaging

1.4.1 Direct Mail

Direct mail is one of the most common and recognised forms of direct marketing. It is
posted mail that advertises your business and its products and services. Direct mail
campaigns are generally organised geographically and sent to all postal customers in
an area or to all customers on a list.
Direct mail campaigns encourage good customer response rates by precisely tailoring
messages to audiences and allowing potential customers to read your advertising
without being distracted by competing advertising.

1.4.1.1 Types of direct mail

The most common types of direct mail include:
 Catalogues - bound, multi-page promotions of products
 Self-mailers - created from a single-printed sheet that has been folded
 Envelope mailers - with inserts inside the envelope
 Postcards - with your promotional message on one side and the customer's
address on the other
 Snap mailers - folds and seals with pressure
 Dimensional mailers - for example, a small box
 Intelligent documents - printed with personalised information from a database.
1.4.2 Telemarketing
Telemarketing involves contacting customers by phone to make product or service
offers. A successful telemarketing campaign turns contacts into new customer
prospects. Businesses running telemarketing campaigns either use their own sales
staff or outsource to a specialist call centre.
Telemarketing is personal and interactive, and capable of generating new customer
prospects in large volumes. However, as many businesses use telemarketing, people's
tolerance of and responsiveness to telemarketing campaigns has reduced. You should
approach telemarketing campaigns with clear thought and caution.
Successful telemarketing campaigns tend to be highly targeted, relying on accurate
and well-defined customer data that matches customer profiles to product profiles.

1.4.2.1 Types of telemarketing

Types of telemarketing include:
 Cold-calling - calling someone for the first time and without their permission
to generate a new lead
 Warm-calling - a cold call that uses 'warm' communication techniques
designed to create a rapport, or a call made to follow-up on an initially
positive response
 Follow-ups - calls designed to turn a lead into a prospect, renew contact with a
lapsed customer, thank a customer for their support or check customer
satisfaction
 Fundraising calls - contact made for the sole purpose of seeking charitable
donations
 market research-calls to individuals made according to customer or
demographic segments to gather information for research surveys
 Database clean up - calls made to update customer records or establish a
customer's level of ongoing interest in your products or services.

1.4.3 Direct response advertising

Direct response advertising is meant to compel people to take
an immediate  action from an ad while offering a measurable response from that
action. These campaigns use direct response ads, like the Google Ads examples
below, to capture prospects’ attention and lead them to the next page where they
can complete the desired action.
Direct response marketing is a type of sales technique designed to evoke an on-
the-spot response and encourage a prospective customer to take action by opting
in advertiser’s offer. Unlike other marketing types, the direct response requires
little or no time waiting to see measurable results. Advertisers are able to access
the performance from the moment the campaign is launched. Direct response
marketing facilitates the delivery of a “call to action” via direct or online
interaction.
Direct response marketing could be found nearly in all forms of advertising,
including TV commercials, print marketing (magazines, newspapers, etc.), radio
spots, websites and online ads. By creating an irresistible offer, advertisers push
prospects through all marketing channels and generate leads. Lead generation is
a process of converting strangers and passers-by into paying customers. The
desired response massively depends on the goals of a specific ad. For instance,
in exchange for the free offer the advertiser may ask a prospect to sign up, share
contacts, register on a website, and so on.

1.4.4 Catalogue marketing

Catalogue marketing is a sales technique used by businesses to group many items
together in a printed piece or an online store, hoping to sell at least one item to the
recipient. Consumers buy directly from the catalogue sender by phone, return
envelope or online using information in the catalogue. Some catalogue marketers act
as intermediaries between consumers and manufacturers, while businesses with more
than a few items create their own catalogues.

1.4.4.1 Types
1. Print catalogue
A print catalogue usually consists of a cover that announces what type of items the
piece contains, followed by the items. Some catalogue feature a single product
category, such as clothing, while others include a diverse collection of goods. The
catalogue contain photos and descriptions of the items, as well as prices and ordering
information. Some come with order forms and return envelopes with prepaid postage.
Others require shoppers to order by phone. Catalogue marketers use targeted mailing
lists to increase sales and decrease the printing and mailing costs associated with
waste circulation. Some print catalogue are included with items shipped to online
buyers to generate additional sales.

2. Online Catalogue
To save on the cost of printing and mailing and to allow retailers to update prices,
products and promotions more quickly, some business put their products in an online
catalogue. The products are grouped and displayed in a similar fashion to a print
catalogue, but consumers can sort items by price, category, manufacturer or other
criteria. These catalogue allow shoppers to purchase immediately, using a virtual
shopping cart and an electronic payment method.

3. Single Company Catalogue

Some companies with many products produce their own catalogue. Examples include
manufacturers of apparel, footwear, sporting goods, kitchen accessories, auto parts,
home furnishings, lawn and garden items, health, beauty and food items. The
manufacturer might group similar products to allow consumers with a specific interest
to quickly find what they want, or they might spread items throughout the catalogue
to make shoppers view more items, hoping to increase impulse buys. The
manufacturer processes the orders, ships the items and handles customer service,
cutting out the cost of wholesalers or distributors.

4. Multiple Company Catalogue

Some catalogue feature products from a variety of manufacturers, giving companies
with fewer products a chance to use catalogue marketing. This allows mass retailers
to include more items in their catalogue. In these types of catalogue, you might see
several competing products on the same page. The producer of the catalogue takes
direct payment from the consumer, giving a portion of the sale to the manufacturer
after the money is collected. Some multi-company catalogue marketers fulfil orders
from their warehouses, while others send orders to the manufacturer, who ships the
item and handles returns and customer service.

1.4.5 Text Messaging

Direct text marketing is a form of SMS marketing. This includes using a medium
which involves text messaging over a mobile device and can be done from a mobile
phone or in bulk using an SMS Aggregator and distributor online. Some businesses
provide the entire service including creating the messages and sending them via an
aggregator on behalf of a business. Today, direct text marketing has been subsumed
under mobile marketing, which includes rich media embedded into the marketing
messages as well as those messages sent v, m m mia mobile applications besides
SMS.

1.4.6 Direct selling

Direct selling consists of two main business models: single-level marketing, in which
a direct seller makes money by buying products from a parent organization and
selling them directly to customers, and multi-level marketing (also known as network
marketing or person-to-person marketing), in which the direct seller may earn money
from both direct sales to customers and by sponsoring new direct sellers and
potentially earning a commission from their efforts.
According to the FTC: "Direct selling is a blanket term that encompasses a variety of
business forms premised on person-to-person selling in locations other than a retail
establishment, such as social media platforms or the home of the salesperson or
prospective customer."
Modern direct selling includes sales made through the party plan, one-on-one
demonstrations, and other personal contact arrangements as well as internet
sales. Some sources have defined direct selling as: "The direct personal presentation,
demonstration, and sale of products and services to consumers, usually in their homes
or at their jobs.

1.5 Characteristics of Direct Marketing

The essential character of direct marketing lies in its action orientation. General
advertising may inform, persuade, or remind prospects about products about products
or services, but does not sell. To sell, or to invite a step towards a sale, direct
marketers include a call to immediate action and an easy-to Use response device.
Direct marketers make specific offers: they tell prospects what they‘re going to get
and what they have to do to get it be it a product in exchange for a price, free
information exchange for a phone call, or some other quid pro quo. In addition to
action orientation, direct marketing has several other important characteristics.

1) Direct marketing is targeted

Successful direct marketers develop products and services that will appeal to specific
groups of consumers groups that are measurable, and sizable enough to ensure
meaningful sales volume. Direct marketers ‘ability to tailor a list of prospect names
combining several characteristics for instance, proven mail-order buyers who own
home exercise equipment and take at least two ski vacations a year allows them to
carve out new market segment with profit potential.

2) Direct marketing is personal

Because direct marketers can record so much about their customers‘ and prospects
buying habits and preferences as well as lifestyle information, they are able to address
these people in very specific terms—as tennis enthusiasts, old—movie buffs, or
whatever. What‘s more, today‘s database and printing applications make possible a
broad range of personalization techniques as well as one-to-one customized messages
and offers.

3) Direct marketing is measurable

Each direct marketing message carries a call to action, the advertiser is able to
measure the effectiveness of mailings, calls and ads by tracking the sales, leads, or
other responses received. This makes direct Marketers accountable for every dollar
that is spent.

4) Direct marketing is testable

Direct marketers can generate firm numbers that measure the effectiveness of their
efforts, it is possible for them to devise accurate Head-to-head tests of offers, formats,
price, payment terms, creative approach, and much more—all in relatively small and
affordable quantities.

5) Direct marketing is flexible

Direct marketing‘s flexibility is especially apparent in direct mail, where few
constraints limit size, colour, and format. Other than conformance to Postal standards,
a direct mail marketer can sell with formats ranging from a postcard to a 9‖ X 12‖
envelope to a three-dimensional Package. The mailing date is set by the marketer not
by a publication.

4. RESEARCH METHODOLOGY
4.1 Research:
 Research is the systematic investigation into and study of materials and
sources in order to establish facts and reach new conclusions.
 According to the American sociologist Earl Robert Bobbie, “Research is a
systematic inquiry to describe, explain, predict and control the observed
phenomenon. Research involves inductive and deductive methods.”
 Inductive research methods are used to analyse the observed phenomenon
whereas, deductive methods are used to verify the observed phenomenon.
Inductive approaches are associated with qualitative research and deductive
methods are more commonly associated with quantitative research.
 One of the most important aspects of research is the statistics associated with
it, conclusion or result. It is about the “thought” that goes behind the research.

Research methodology
Sr.n Title
o
1 Research method Descriptive research method

2 Data collection Secondary data sources

3 Secondary data sources 1) Report-

i) Indian direct selling association

ii) Direct mail association

iii) Advertisement industry of India

 2) Newspaper-
i) Economic times

Table: 4.1

4.2 Research method used

Descriptive Research
Descriptive research focuses on throwing more light on current issues through a
process of data collection. Descriptive studies are used to describe the behaviour of a
sample population. In descriptive research, only one variable (anything that has
quantity or quality that varies) is required to conduct a study. The three main purposes
of descriptive research are describing, explaining and validating the findings.
In this study current status of direct marketing is explained. Study of direct marketing
is described.

4.3 Data collection

Data is collected from secondary data sources. Secondary data sources used for this
study are books, reports of industry newspaper etc. Secondary data is collected from
reports of Indian direct selling association, Direct mail association, and the report of
Advertisement industry of India. Newspaper like Economic times, Employment news
and business standard are also referred for the study.

 List of documents referred,

1) Reports: i) Indian direct selling association
ii) Direct mail association
iii) Advertisement industry of India
2) Newspaper: i) Economic times

4.4 Scope
1. Telemarketing
2. Catalogue marketing
3. Text Messaging
4. Future of direct marketing.

4.5 Limitation
1. Area: India.
2. Reliability of data: Secondary data sources.
3. Duration: 4 months

5. DATA ANALYSIS
Appropriate analysis tools are used to convert collected data in to proper analysed
information that can be used in any research problem. Percentile & Ratio are some
elementary methods of data analysis.
In this study percentile data analysis method is used.

Objectives of data analysis,

 Assessment & improvement of the quality of data
 Making inference & taking decisions
 To acquire insights regarding the relationships which are being observed or
not attended.
Data that we supposed to be getting from the secondary data sources is in RAW
format which need to give a proper shape with analysis & only from that we can have
findings for the research.
Various reports of associate industry are studied for this study. Past data is found in
those reports which helped to know status of direct marketing few years ago.
Newspaper like ECONOMIC TIMES is read for the getting knowledge of direct
marketing through published news.

In this study following listed ways of direct marketing are studied,

 Direct Mail marketing
 Direct Advertisement marketing
 Direct selling
5.1 DIRECT MAIL MARKETING

5.1.1 Mail Response Rate and Popularity by ANA/DMA response rate report
2018

Fig.: 5.1 Direct mail response rate

 In 2018, the average response rate of direct mail amounted to 4.9% for
prospect lists and 9% for house lists. This is significantly higher than in 2017,
with 2.9% and 5.1% respectively (ANA/DMA response rate report 2018).
 House lists comprise people who have already bought or ordered from
you. Prospect lists are your potential customers who are likely to use your
services.
 Compared to the 9% house lists response rate, email, paid search, and social
media have only a 1% response rate (ANA/DMA response rate report 2018).
 Advertising cards, catalogues, or flyers made 31% of baby boomers purchase
a service or product. In this case, direct mail out performed online consumer
 reviews, recommendations from friends and family, TV ads, email, and other
marketing channels. (Marketing Charts).
 Consumers claim that they are 46% more likely to respond to an offer from a
familiar company. You can use direct mail to familiarize people with your
services and make other marketing channels more effective. Direct mail has a
higher response rate than digital marketing, so it’s an excellent first point of
touch (Tax Marketing HQ).
 Direct mail continues to remain among the most popular marketing (B2B
Marketing Mix Report).
 B2B marketers still make large investments in traditional marketing methods
including direct mail. Top areas of marketing spend comprise website
development (63%), trade shows & events (53%), digital marketing (47%),
social media (29%), and direct marketing & print advertising (25%) (B2B
Marketing Mix Report).
 Nevertheless, highly qualified marketers usually strive to combine and align
several marketing channels to create a multichannel or Omni channel
marketing strategy. Using three or more channels they manage to achieve a
250% higher purchase and engagement rate than in the case of single-channel
marketing (Omni channel).
 Print advertising (8%) and direct mail (6%) are listed among top sources
generating sales and marketing leads (B2B Marketing Mix Report).
 78% of executives and marketers (51% of whom are B2B businesses) claim
that integrated, branded, and personalized direct mail is a highly effective
channel. Non-personalized direct mail gets 61% of credits compared to 55%
social media (Marketing Charts).

Findings
1. Avg. response rate to mail of prospected list and house list is more for year 2018.
2. Avg. response rate to mail of prospected list is less for year 2017.
3. Avg. response rate to mail of house list is less for year 2017.
4. From the above data it is found that customer replied to offer in mail from familiar
company more.
5. According to executive and marketers integrated, branded, personalized mail are
more effective.
6. Omni channel marketing strategy is used to achieve high engagement rate.

Conclusion
1. Avg. response rate to mail by both prospect list and house list is increased in 2018
2. Increment in avg. response rate to mail by prospect list means no. of potential
customers interested in availing services/ product.
3. Company can mail offers to loyal customers for more sales.
4. Company should send personalized mail for getting more response.
5. Omni channel marketing is one of the way of increasing engagement rate.

5.1.2 No. of catalogues mailed per year by Data And marketing association
report 2017
The number of catalogues mailed per year was steadily decreasing, having reached
9,412 million in 2017. Expected catalogue to be mailed in 2019 are 9000 million.
 Fig.: 5.2 No. of catalogues mailed year wise
Interpretation
1. It is interpreted that in 2001 no. of catalogues mailed are 16661 million.
2. In 2005, 19161 million catalogues are mailed for direct mail marketing is
interpreted.
3. It is interpreted that in 2007 no. of catalogues mailed are 19621 million.
4. In 2011, 12497 million catalogues are mailed for direct mail marketing is
interpreted.
5. In 2015, 10637 million catalogues are mailed for direct mail marketing is
interpreted.
6. It is interpreted that in 2017 no. of catalogues mailed are 9412 million.
7. It is expected that in 2019 no. of catalogues mailed are 9000 million.

Findings
1. Highest no. of catalogues mailed in the year 2007.
2. Lowest no. of catalogues are mailed in 2019.
3. Avg. no. of catalogue mail from 2001-19 is 14246 million.
4. Avg No. of catalogue mail are increased up to 2007 and get reduced year by gear.

Conclusion
1. Trend of mailing catalogue for direct marketing is reduced year by year. From
2001 to 2019.
2. Trend of mailing catalogue for direct mail marketing is reducing.
3. Company have to choose another way of direct marketing/ direct mail marketing
rather than catalogue mailing.

5.1.3 Education level based targeted audience by Direct mail association 2019
 It turns out that college graduates receive more direct mail than households
with a lower level of education. In particular, out of 4.8 million households that
get 45> pieces of mail per week, 59% are college graduates, 15% have some
college or tech school, and 18% are high school graduates , remaining are
uneducated audience.(DMA, Statistical Fact Book).
Findings
1. College graduates are more targeted audience for the purpose of mail marketing by
sending mails.
2. High school graduates are less targeted than tech school graduates and uneducated
audience.
3. Among college graduates and tech school graduates and high school graduates,
high school graduates are targeted less for direct mail marketing.
4. Uneducated customers get targeted for mil marketing in very less amount.

Conclusion
1. It may be concluded that college graduates can be targeted for direct mail
marketing.
2. Company can send mail to tech school graduates for increasing sales.

5.2 DIRECT ADVERTISEMENT

5.2.1 Advertising industry in India by Statista Research Department, Jan 16,

2020
 Asia Pacific is the second largest regional advertising market in the
world with projections to maintain this position in the coming years.
 Advertising spending in the region reached a total of 158.3 billion U.S. dollars
in 2015, and is forecast to increase to about 235.5 billion U.S. dollars by 2020.
 The growth in the region is mainly driven by China, the world's second largest
ad market, and India, one of the fastest growing advertising markets in Asia.
 The ad market in India is forecast to increase by 2.84 billion U.S. dollars
between 2015 and 2018; this is the fifth largest ad expenditure growth in the
world during this time period. Fast moving consumer goods, automobile and e-
commerce are the most advertised industries in India.
 Traditional mediums, such as television and print, are still popular amongst
advertisers in India.
 In 2015, print had the highest advertising revenue in India, while TV’s
revenue figures closed the year shortly behind. TV and print were by far the
 strongest advertising media in India, as each medium is expected to account for
about 37 percent of all advertising spending in India by 2017, taking the lead as
the two most important mediums for advertisers in the country. 
 Newspaper advertising spending in India is forecast to add up to an estimate
of 3.25 billion U.S. dollars in 2016. Physical out-of-home advertising is also an
important platform in the Indian ad market.
 The medium is projected to maintain revenue of 24.5 billion U.S. dollars up
until 2020. While physical out-of-home advertising is expected to remain the
same in the coming years, digital out-of-home advertising in the country is
forecast to consistently grow, with projections to grow from about 10 billion U.S.
dollars in 2015 to 18.5 billion U.S. dollars 2020.
 In India since 2006, when only 39 million U.S. dollars were spent on internet
advertising. Internet advertising spending in India is estimated to pass the 700
million U.S. dollars mark for the first time in 2016. Despite this aggressive
growth, internet’s share of the total ad market in India is rather timid; the medium
is projected to hold about 14 percent of ad market share in the country by 2017.
Search advertising is the most popular ad format in India, accounting for about 30
percent of the total digital ad spending in India as of 2015. Social, display, video
and mobile held from 16 to 18 percent of the market share each in that particular
year. (Digital ad spend in India 2013-2024 Published by Sanika Diwanji, Oct 16,
2019.)
 In fiscal year 2019, the total digital advertising expenditure across India amounted
to over 160 billion Indian rupees. This was estimated to go up to almost 540
billion rupees by fiscal year 2024, marking a 28 percent growth rate in digital ad
spends.

Findings
1. It is expected to increase in spending of direct adv. about 235.5 billion U.S. dollars
by 2020.
2. It is found that Adv. Spending is more in 2018 than 2015
3. Spending on internet advertising is continuously increasing.

Conclusion
1. Companies are using various adv. Methods like print media, Tv adv. Etc. for more
customer engagement and purchase from customer.
2. Trend of internet adv. is increasing.

5.2.2 Indian Advertisement industry report

5.2.2.1 Statistics 2011-12 by Indian Advertisement industry report 2011-12
 In the year 2011, the total share of the Indian advertising industry stood at Rs
25,594 crore, recording a growth of 8 per cent when compared to the previous
figures. The figure was far below the earlier projection of 17 per cent as the Indian
economy faced a severe inflation that touched 10 and the weakening of the Rupee
against the Greenback.
 The growth projections for the advertising industry for 2012 remains a cautious 8-
9 per cent, with a total share of Rs 28,013 crore.
 Now for a breakdown of the share: television continued to dominate with a share
of 44.8 per cent, followed closely by the print media with a share of 42.2 per cent.
 The growth of Internet's share had been the most impressive, claiming the third
largest share of the ad share at 3.8 per cent. Radio saw a flat growth of 3.1 per
cent share of the ad pie, on the other hand, outdoor ads did better with a 5.1 per
cent share. Cinema related advertising was at the bottom of the pie with a mean
share of 0.5 per cent.

5.2.2.2 Statistics 2012-13 by Indian Advertisement industry report 2012-13

 The total annual advertising spend in India is currently estimated at USD 5 billion
(around Rs 26,000 crore), of which around 45 per cent is spent on television and
radio alone. The advertising industry grew from Rs 728 billion in 2011 to Rs 820
billion in 2012, registering an overall growth of 12.6 per cent.
 Total advertising spend across media was Rs 327.4 billion in 2012. Despite the
economic slowdown, advertising revenues saw a growth of 9per cent in 2012, as
against 13 per cent in 2011 and 17 per cent in 2010.
 Print continues to be the largest beneficiary, accounting for 46 per cent of the
advertising pie at Rs 150 billion. While television continues to be the dominant
segment in the advertising arena, new media sectors are coming along.
 Radio is anticipated to see a spurt in growth at a CAGR of 16.6 per cent over
2012-17, post the rollout of Phase 3 licensing. Industry estimates show that India's
online advertising market is likely to touch Rs 2,938 crore by 2014. The online
advertising market, which includes search, display, mobile, social media, email
and video advertising has grown by 29 per cent year-on-year to Rs 2,260 crore by
March, 2013. It was valued at Rs 1,750 crore in March, 2012. The online
advertising market on an average is expected to grow by 40% annually in four
years.
 Search and display advertising formed a large portion of the overall pie in 2011-
2012. Their percentage share has, however, declined somewhat in 2012-2013,
owing to the rise in the mobile, social media and video advertising. The spends on
mobile advertising have doubled from Rs 115 crore in 2011-12 to Rs 230 crore in
2012-13. Advertisements on mobile phones and tablets grew from a 7% share in
FY 2011-2012 to 10% of the Indian online ad market in FY 2012-2013, totalling
to spend of around Rs 230 crore. Social media, email and video advertising
constitute 13% (Rs 300 crore), 3% (Rs 68 crore) and 7% (Rs 150 crore) of the
online advertising market, respectively

5.2.2.3 Statistics 2013-14 by Indian Advertisement industry report 2013-14

 The size of the advertising industry in India is estimated to be around Rs 36,200
crores. The print media accounts for a larger share at 44.7% followed by TV at
38.2%.
 By 2017, it is estimated that the size of the Indian advertising industry would be
Rs 63,000 crores with both print and TV having a share of 38-40% each.
 Digital advertising is estimated to post a robust 32.1% growth to reach Rs 8,720
crores from the current level. The Indian advertising industry is an economic
enterprise which is capable of creating employment and wealth much faster in the
modern period.
 The industry is likely to grow further when supported by bold policies and
regulatory initiatives.
5.2.2.4 Statistics 2014-15 by Indian Advertisement industry report 2014-15
 The Indian advertising industry in 2014 grew by 16.4%, almost at par with the
growth projection of 16.8%. In terms of absolute numbers, the advertising
industry increased by Rs 5,200 crore and touched Rs 37,100 crore in 2014.The
online advertising market in India touched Rs 3,575 crore (577.97 million) by
March 2015, a 30 per cent rise from Rs 2,750 crore (US$ 444.59 million) in
March 2014, as per a joint study by the Internet and Mobile Association of India
(IAMAI) and IMRB International. Of the current Rs 2,750 crore (US$ 444.59
million) digital advertisement market, contributed the most - search
advertisements constitute 38 percent of total advertisement spends followed by
display advertisement at 29 per cent.
 The Internet's share in total advertising revenue is anticipated to grow twofold
from eight per cent in 2013 to 16 per cent in 2018, as per a joint report by
Confederation of Indian Industry (CII) and PricewaterhouseCoopers (PwC).
Online advertising, which was estimated at Rs 2,900 crore (US$ 468.84 million)
in 2013, could jump threefold to Rs 10,000 crore (US$ 1.61 billion) in five years,
increasing at a compound annual rate of 28 per cent.
 The two main categories that fuelled the overall growth in 2014 were the
elections, both the Lok Sabha General Elections and the five state elections, and
e-commerce players. While the elections contributed as much as Rs 2,300 crore,
e-commerce players added Rs 1,150 crore to the overall growth. Out of the
registered 16.4% growth rate, nearly 7.2% was on account of elections. The
advertising market in India is equally bullish for 2015. A 9.6% growth rate is
forecast for year 2015 which will take the industry to reach nearly Rs 41,000
crore. The overall market is expected to grow by more than Rs 3,500 crore.

5.2.2.5 Statistics 2017-18 by Indian Advertisement industry report 2017-18

 The Indian Advertising industry is one of the fastest growing market in the world,
next only to China. The advertising revenue accounts for around 0.38 per cent of
India’s gross domestic product. In the financial year 2017 to 2018, Indian
advertising industry was estimated to be Rs 63,000 crore (US$ 10 billion) with
both print and TV having a share of 38-40% each. It is estimated that in 2018, the
share of Ad spend in India’s Gross Domestic Product (GDP) will be around 0.45
 per cent. Print contributes a significant portion to the total advertising revenue,
accounting for almost 41.2 per cent, whereas TV contributes 38.2 per cent, and
digital contributes 11 per cent of the total revenue. Outdoor, Radio and Cinema
make up the balance 10 per cent.

5.2.2.6 Online Advertising

 Online advertising market is worth around Rs 10,000 crore (US$ 1.5 billion In
2017, there is a noticeable expected increase in the share of digital advertising,
which is expected to account for 15.5% of total ad spends in 2017, at around Rs
9490 crores, as compared with Rs 7300 crores last year. Digital Advertising is the
third highest category of advertising spends, whereas lagging far behind is TV (Rs
27,378 crores, 44.7% of total) and Print (Rs 18258 crores, 29.8% of total). The
first quarter of the financial year was quite slow, with the market picking up from
March-April, fuelled by a stable recovery process post demonetization.

5.2.2.6.1 Industry Forecast

 The Indian Digital Advertising industry is expected to grow at a Compound
Annual Growth Rate (CAGR) of 32 per cent to reach Rs 18,986 crore (US$ 2.93
billion) by 2020 thanks to the ongoing digital revolution.

5.2.2.7 Statistics 2018-19 by Indian Advertisement industry report 2018-19

5.2.2.7.1 Industry Overview
 Pegged at $61,878 crore ($8.76 billion) in 2018, the Indian advertising market is
estimated to grow with a CAGR of 10.62 per cent till 2021, to reach a market size
of $85,250 crore ($12.06 billion).

5.2.2.7.2 Share of Ad industry

 Television and print media would continue to garner the largest share of media
spends at 70 per cent aggregated followed by digital media at 17 per cent. Digital
will contribute 29 per cent of the ad market size by 2021. According to industry
reports, this is the first year when Indian advertising will reach the $10 billion
mark, which now makes us a major advertising market, growing at roughly 11 per
cent.
Findings
1. Contribution of Television adv. to revenue of year 2017 is reduced.
2. Contribution of print media adv. to revenue of year 2017 is less than year 2012.
3. Radio adv. contributed more to revenue of 2017 than year 2012.
4. Contribution of outdoor adv. to revenue of year 2017 is increased in year 2017.
5. Internet adv. contributed more to revenue of 2017 than year 2012 by 7%.
6. Spending on online Ad. is more in 2020.
7. Spending on online Ad. is less in 2016.

Conclusion
1. Radio adv. become comparatively more effective way of direct marketing in year
2017 than year 2012.
2. Internet adv. and outdoor adv. are also contributed more in year 2017 than year
2012. Reason may be digital India movement of government started from year 2014.
3. Spending on online adv.is increasing over the year.
4. Trend of online adv. is increasing.

5.3 DIRECT SELLING

5.3.1 Market size according to the KPMG direct selling report 2015
 Fig.: 5.3 Direct selling market size in India 2009-14

The direct selling market of india has gowth rate at of 16% over the past 5 years to
reach INR 75 billion in 2013-14. A market grew at lower rate at 4% in 2013-14 due to
slowdown in the industry.

Findings
1. Market size of direct selling is increasing year on year.
2. Expected market size of direct selling is huge in 2025. Reasons may be growth in
consumer markets and increase in the penetration of direct selling to globally
comparable levels is contingent on creating an enabling environment for the industry.

Conclusion
1. The growth in consumer markets and increase in the penetration of direct selling to
globally comparable levels is contingent on creating an enabling environment for the
industry and huge market size shows huge growth in direct selling industry in 2025.

5.3.2 Revenue growth

Fig.: 5.4 Annual Sales revenue

  The rate of growth of sales revenue in the direct selling industry has been
robust and has increased at a steady pace.
 It was found that the industry revenue grew at 9% during 2006-07, at 13%
during 2007-08, at 17% during 2008-09, at 24% during 2009-10, at around
27% in 2010-11 and at 22% in 2011-12.
 The marginal decline in sales revenue may be attributed to stagnation in
consumption demand owing to the persisting slowdown in the economy.
Further, there has been a lack of policy framework for the direct selling
industry which may have strained growth.
 However, the advent of young population and popularization of the concept of
social networking have been major driving force behind its steady growth,
 Direct selling is one of the oldest, most traditional forms of selling globally,
involving a direct interaction between the seller and the buyer. Today, it is a
successful industry operating in over 100 countries with a market size of USD
182.8 billion.
 The direct selling industry in India is estimated to be Rs.74 billion (2014-15),
and forms only around 0.4 per cent of the total retail sales. This is far lower
than other comparable economies (one-half of China and one-tenth of
Malaysia).
 With growth in consumer markets and increase in its penetration to globally
comparable levels, the industry has the potential to reach a size of Rs.645
billion by 2025, according to a recent KPMG report.
 Modern direct selling made its entry in India in 1990s. The industry witnessed
major growth post-liberalisation with many global players entering the Indian
market. The Industry has registered a growth rate of about 6.5 per cent in
2014-15 as compared to 4.3 per cent in 2013-14.

5.3.2.1 Growth and Revenues in 2014-15 by Indian Direct Selling

Association (IDSA)
Indian Direct Selling Association (IDSA) in association with PHD Chamber of
Commerce and Industry conducted a survey recently and the annual survey
report highlighted the following facts and figures:
  Wellness and healthcare products are the most popular category of products in
Indian direct selling contributing 42 per cent of the sales revenue for the
industry. Cosmetics and personal care products contributed 34 per cent,
homecare products, 11 per cent and consumer and household durables seven
per cent.
 While there is a 6.5 percent growth in the direct selling industry all over the
country, Southern India has recorded a negative growth of 1.8 per cent, owing
to loss of consumer confidence due to fraudulent practices.
 Northern region has contributed around Rs.2388 crores to the gross sales in
2014-15, registering a growth rate of 10 percent

5.3.2.2 ECONOMICS TIMES

 New Delhi: The Indian direct selling industry grew around 13 per cent in
2018-19 with sales totalling around Rs 13,000 crore, in which wellness
products contributed over half of the total volume, said IDSA report.
 Besides, the industry also contributed around Rs 2,500 crore to the exchequer
during the period, according to the Indian Direct Selling Association's (IDSA)
Annual Survey 2018-19.
 Fig.: 5.5 News from Economic Times
Findings
1. Market size of direct selling is increasing year on year.
2. It is found that growth rate of direct selling of north India is more than south India
due to fraudulent practice.
3. Expected market size of direct selling is huge in 2025. Reasons may be growth in
consumer markets and increase in the penetration of direct selling to globally
comparable levels is contingent on creating an enabling environment for the industry.
4. Overall direct selling industry of India is increasing year by year.

Conclusion
1. Revenue growth rate is also increasing year on year.
2. Increasing Revenue growth rate indicate growth of direct selling industry.
3. Direct selling will be the effective way of revenue growth in upcoming years.
Findings are,
1. Avg. response rate to mail of prospected list and house list is more for year 2018.
2. Avg. response rate to mail of prospected list is less for year 2017.
3. Avg. response rate to mail of house list is less for year 2017.
4. From the above data it is found that customer replied to offer in mail from familiar
company more.
5. According to executive and marketers integrated, branded, personalized mail are
more effective.
6. Omni channel marketing strategy is used to achieve high engagement rate.
7. Highest no. of catalogues mailed in the year 2007.
8. Lowest no. of catalogues are mailed in 2019.
9. Avg. no. of catalogue mail from 2001-19 is 14246 million.
10. Avg No. of catalogue mail are increased up to 2007 and get reduced year by gear.
11. College graduates are more targeted audience for the purpose of mail marketing
by sending mails.
12. High school graduates are less targeted than tech school graduates and uneducated
audience.
13. Among college graduates and tech school graduates and high school graduates,
high school graduates are targeted less for direct mail marketing.
14. Uneducated customers get targeted for mil marketing in very less amount.
15. It is expected to increase in spending of direct adv. about 235.5 billion U.S.
dollars by 2020.
16. It is found that Adv. Spending is more in 2018 than 2015
17. Spending on internet advertising is continuously increasing
18. Contribution of Television adv. to revenue of year 2017 is reduced.
19. Contribution of print media adv. to revenue of year 2017 is less than year 2012.
20. Radio adv. contributed more to revenue of 2017 than year 2012.
21. Contribution of outdoor adv. to revenue of year 2017 is increased in year 2017.
22. Internet adv. contributed more to revenue of 2017 than year 2012 by 7%.
23. Spending on online Ad. is more in 2020.
24 Spending on online Ad. is less in 2016
25 Market size of direct selling is increasing year on year.
26. Expected market size of direct selling is huge in 2025. Reasons may be growth in
consumer markets and increase in the penetration of direct selling to globally
comparable levels is contingent on creating an enabling environment for the industry.
27. Market size of direct selling is increasing year on year.
28. It is found that growth rate of direct selling of north India is more than south India
due to fraudulent practice.
29. Expected market size of direct selling is huge in 2025. Reasons may be growth in
consumer markets and increase in the penetration of direct selling to globally
comparable levels is contingent on creating an enabling environment for the industry.
30. Overall direct selling industry of India is increasing year by year.
Conclusion are,
1. Avg. response rate to mail by both prospect list and house list is increased in 2018
2. Increment in avg. response rate to mail by prospect list means no. of potential
customers interested in availing services/ product.
3. Company should make customer familiar by regular engagement activities and
services.
4. Company can mail offers to loyal and familier customers for more sales.
5. Company should send personalized mail for getting more response.
6. Omni channel marketing is one of the way of increasing engagement rate.
7. Omni channel marketing can be used by company for more revenue.
8. Trend of mailing catalogue for direct marketing is reduced year by year. From
2001 to 2019.
9. Trend of mailing catalogue for direct mail marketing is reducing.
10. Company have to choose another way of direct marketing/ direct mail marketing
rather than catalogue mailing.
11. It may be concluded that college graduates can be targeted for direct mail
marketing.
12. Company can send mail to tech school graduates for increasing sales.
13. Companies are using various adv. Methods like print media, Tv adv. Etc. for more
customer engagement and purchase from customer.
14. Trend of internet adv. is increasing.
15. Radio adv. become comparatively more effective way of direct marketing in year
2017 than year 2012.
16. Internet adv. and outdoor adv. are also contributed more in year 2017 than year
2012. Reason may be digital India movement of government started from year 2014.
17. Spending on online adv.is increasing over the year.
18. Trend of online adv. is increasing.
19. It is concluded that company should increase internet / online adv for more
revenue growth.
20. The growth in consumer markets and increase in the penetration of direct selling
to globally comparable levels is contingent on creating an enabling environment for
the industry and huge market size shows huge growth in direct selling industry in
2025.
21. Revenue growth rate is also increasing year on year.
22. Increasing Revenue growth rate indicate growth of direct selling industry.
23. 2. Increasing Revenue growth rate indicate growth of direct selling industry.
24. Direct selling will be the effective way of revenue growth in upcoming years.