A

RESEARCH PROJECT REPORT

ON

“ROLE OF ADVERTISING IN FMCG SECTOR”

SUBMITTED FOR THE AWARD OF BACHELORS OF
BUSINESS ADMINISTRATION (BBA) DEGREE FROM
CHAUDHARY CHARAN SINGH UNIVERSITY (CCSU),
MEERUT.

SUBMITTED BY:
ANKUR SRIVASTAVA
BBA VI SEMESTER
1709191408
UNDER THE GUIDANCE
OF: MS MINI VERMA

YEAR 2017-20

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A-8B IMS Campus Building, Sector 62,
Noida, Uttar Pradesh 201301

1
 Declaration

I ANKUR SRIVASTAVA, Roll no. 1709191408, student of BBA-VIth Semester of Institute of

Management

Studies, Noida hereby declare that the research project report on “Role of Advertising in

FMCG Sector” is an original and authenticated work done by me. I further declare that it has

not been submitted elsewhere by any other person in any of the University for the Award of any

degree or diploma.

Date:
(ANKUR SRIVASTAVA)

2
 CERTIFICATE

This is to certify that the project entitled “ROLE OF ADVERTISING IN FMCG

SECTOR” is the original work carried out by ANKUR SRIVASTAVA student
of BBA C.C.S. University, Meerut, during the year 2017-20, in partial fulfilment
of the requirements for the award of the Degree of BBA and that the project
has not formed the basis for the award previously of any degree, diploma,
associateship, fellowship or any other similar title.

Signature of the Guide:

Place:
Date:

3
 PREFACE
In spite of the theoretical gained through classroom study, a person is incomplete if not subjected
to practical exposure of real corporate world and may have to face hurdles, which will be
difficult to overcome without any first-hand experience of business.
In the context, research program has been designed to make the person aware of the happenings of
the real business world. The Dissertation entitled” ROLE OF ADVERTISING IN FMCG
SECTOR” of has been done at as a completion part of BBA program.
I whole heatedly appreciated the harmonic atmosphere provided to me by the staff of marketing.
The data has collected at primary source through interviews with the customer & discussions
with the retailer of different -different sections. The data which used in this project report are
secondary data. These secondary data so obtained were mostly collected from the management.
It would not have been possible to complete my research report in a manner. I reckoned & within
such a limited time. For this nice obliged to them.

4
 ACKNOWLEDGEMENT

A truly independent project is a contradiction in terms. Every project involves contribution of

many people. This project also ears the imprints of many people and it is a pleasure to
acknowledge all of them. I take this opportunity to convey my heart filled thanks to my project
guide “MS MINI VERMA” who has been a source of guidance and has rendered constant
encouragement to complete this project. I extend my gratitude to IMS College authorities,
classmates and friends who were helpful at every step. Last but not the least would be falling
short of duties if I don’t mention. My sincere thanks to all the staff members for with great help.

(ANKUR SRIVASTAVA)

5
 TABLE OF CONTENTS
TOPIC PAGE NO.
CHAPTER-1
INTRODUCTION 8-15
CREATING DIFFERTIATION THROUGH ADVERTISING 16-22
EXECUTIVE SUMMARY 23-25
OBJECTIVE OF STUDY/SCOPE 26
LIMITATION 27
CHAPTER-2
LITERATURE OF REVIEW ABOUT FMCG SECTOR 29
CHAPTER-3
WORK OF SUBTOPIC ON STUDY DESCRIPTIVE
I) PROFILE OF HUL 31
II) PROFILE OF P&G 32-33
III) PRODUCT OF HUL 34-40
IV) PRODUCT OF P&G 41-46
DIFFERENT ADVERTISING STRATEGIES
I) HUL: ADVERTISING STRATEGIES 47-57
II) P&G: ADVERTISING STRATEGIES 58-59
CHAPTER-4
RESEARCH METHODOLOGY 61
DATA ANALYSIS & INTERPRETATION 63-74
CHAPTER-5
FINDINGS 76

6
 CHAPTER-6
CONCLUSION 78
RECOMMENDATION 79
QUESTIONNAIRE 80-81
BIBLOGRAPHY 82

7
8
 INTRODUCTION

ADVERTISING is any paid form of no personal presentation and promotion of ideas,goods or

services by an identified sponsor. Organizations handle their advertising in different ways. In
small companies advertising is handled by someone in the sales or marketing department, who
works with an advertising agency. A large company will often set up its own advertising
department, whose manager reports to the vice president of marketing. The advertising
department’s job is to propose a budget; develop advertising strategy; approve ads and
campaigns and handle direct mail advertising, dealer displays, and other forms of advertising.
Most companies use an outside agency to help create advertising campaign and to select and
purchase media. Advertising and promotions is bringing a service to the attention of potential
and current customers. Advertising and promotions are best carried out by implementing an
advertising and promotions plan. The goals of the plan should depend very much on the overall
goals and strategies of the organization, and the results of the marketing analysis, including the
positioning statement. The plan usually includes what target markets you want to reach, what
features and benefits you want to convey to them, how you will convey it to them (this is often
called your advertising campaign), who is responsible to carry the various activities in the plan
and how much money is budgeted for this effort. Successful advertising depends very much on
knowing the preferred methods and styles of communications of the target markets that you want
to reach with your ads. A media plan and calendar can be very useful, which specifies what
advertising methods are used and when. For each service, carefully consider: What target
markets are you trying to reach with your ads?

What would you like them to think and perceive about your products (this should be in terms of
benefits to them, not you)?What communications media do they see or prefer the most? Consider
TV, radio, newsletters, classifieds, displays/signs, posters, word of mouth, press releases, direct
mail, special events, brochures, neighborhood newsletters, etc.

What media is most practical for you to use in terms of access and affordability (the amount
spent on advertising is often based on the revenue expected from the product or service, that is,
the sales forecast)?

9
You can often find out a lot about your customers preferences just by conducting some basic
market research methods. The following closely related links might be useful in preparation for
your planning.

A word of warning
'Advertising' is not easily defined, though many people have tried. Narrowly, it means clearly
identifiable, paid for communications in the media, which aim to persuade, inform or sell. But
the word is also used to cover a much broader range of activities -from design to public relations
-by what are often the same organizations, using similar skills.

The main players

Advertising is not a single industry, but spreads untidily across at least three separate kinds of
employer organization -those who are

use it (the advertisers); make it (the

advertising agencies); and display it
(the media).
A number of other, more specialized organizations e.g. market research companies are also
involved.

Different sorts of advertising

Using its narrower definition, advertising takes two main forms -

'display', and 'classified'.

Display advertising embraces TV and radio commercials, posters, and large display spaces in the
press , newspapers and magazines. (The press media also carry a huge volume of classified
advertising -small space commercial, recruitment and personal ads.)

Then there are direct mail and circulars -advertisements using the letterbox as a medium.

10
Direct response advertising (also called 'direct marketing', i.e. using the ad in place of a retail
outlet) cuts across these divisions. It variously employs direct mail, send away coupons in the
press, and phone numbers on radio and TV as the customer's means of contact. At the broadest, a
whole gamut of other activities - e.g. sales promotion, exhibitions, design and packaging, and
even marketing itself are seen as 'advertising' too.
The aggregation of such tools, along with media advertising, price and distribution, are often
called the marketing mix.

Because all these activities require more or less the same skills (often using the same people),
and serve similar objectives, this booklet aims to provide some information about all of them.
However the word 'advertising' from here on means display advertising unless otherwise stated.

Advertising audiences

Finally, we also categories advertising in terms of those to whom it is directed -its audience. Two
most obviously contrasted audiences are consumers (the general public) and businesses.

Within these two big audience categories, advertisers use much more exact definitions of their
desired audience (or 'target group'). These describe a consumer target in terms of, for instance,
age, class, sex, region, behavior, and lifestyle. A business target can be defined by his or her
company size, its type of activity, and the buyers' or decision takers' own particulars.

The Advertising Business: Structural Diagram

Advertising objectives
If advertising takes varied forms, the objectives of individual advertisers are even more diverse.
Very often they are commercial marketing objectives - for instance

to enlarge the profitable sales of someone's goods or services. But to say such ads simply aim to
'sell the product' is an oversimplification. They may be to slow down a brand's gradual decline,
or

11
simply to get the public to reappraise its opinion of a particular company or organization, or just
to provide information.

Moreover noncommercial advertisers -government departments, charities, political parties and

trade unions will have entirely different objectives from, say, a cat food or computer
manufacturer. Advertising objectives do not lend themselves to generalization.

The best general way to look at advertising systematically is as a useful but expensive means
(and not the only one available) to achieve various ends. Incidentally, unless you know the actual
objectives and results of a particular advertisement you've seen, it's unwise to judge it as 'good'
or 'bad'. The only criterion is whether the value of its effect was worth, or more than worth, its
cost.

Briefly, once an advertiser (the client) identifies needs for which advertising is the best solution,
he briefs independent specialists (typically an advertising agency) to plan the details and create
the advertising.
When approved, this is displayed in the agreed medium (for instance television) at an agreed
cost. Research specialists commonly test the advertising beforehand and/or try to measure its
effects afterwards.
An advertising programme of this kind is generally called a campaign, and usually includes a
series of advertisements, in a number of broadcast channels or printed media. The campaign is
usually based on statistical calculations of what percentage of the target group will see it
(penetration) how many times on average (frequency). Other variables are how skillfully the
media have been bought, the size of the commission or fees paid to the advertising agency, and
the cost of producing the ads themselves. At first reading this will sound rather imprecise and
complicated. But with experience, it is possible to say fairly accurately what a particular
campaign is likely to cost or, conversely.

12
How much advertising a given budget and brief will buy.
Costs are usually reckoned on the basis of 'CPT' the average Cost Per Thousand people reached
in the target group. This of course varies according to the size of the ad, the rates charged by the
individual media, and whether a printed ad is black and white, or full colour, etc. Nowadays
virtually every organization in the UK uses advertising in one way or another, because they find
it a practical and cost effective way of achieving some of their aims. The operative words are
'cost effective'. If the objectives are commercial, one test would be whether, in the long run, the
company gets a better profit result overall from a particular weight of advertising than from, say,
a heavier or lighter weight, or none.
If the objectives aren't commercial but, for instance, to communicate information, the questions
are
(a) whether the effects of advertising are worth the cost, and
(b) whether advertising is the most inexpensive way of creating these effects.
It is difficult to measure or demonstrate exact cost benefits from advertising - and certainly to
forecast these in advance. Apart from sales statistics, the most common tools are various
specialized forms of market research, and econometric modeling.
The reason advertising so irritatingly eludes logical or scientific analysis is that three variables
are involved in its effects - two of them not easily measurable. These are the weight of
advertising, the effectiveness of the creative idea and execution, and the latent potential of the
situation to be changed - by advertising or anything else - anyway.
Like it or hate it, advertising is generally recognized to have several practical benefits for society
at large.

More media
One of these is that it largely finances the media. Without advertising revenue, the UK would
have no commercial TV or radio, far fewer and much more expensive newspapers and
magazines, and of course no posters. Cinema tickets would be more expensive.

13
In this regard, advertising's effect is vastly to enrich the variety and numbers of media available,
and it is an authentic engine of freedom of speech. It also claims this freedom itself, within the
law. (In the UK the principle of 'editorial independence' means that advertisers pay for the
media, but cannot much influence the media's editorial content, whether excellent or deplorable.
Broadcasters and editors say what they want to say: the advertisers are simply allowed to buy a
proportion of discrete spaces to say what they want to say.)
Choice
Advertising, because it is 'competitive', is an agent to improve the range of products available,
the speed with which new ones can be introduced, and even the ways in which we shop.

Prices
Finally, despite its cost (quite often as much as 5 per cent of total product costs) it has the
tendency to reduce prices, because of the efficiency it creates through economies of scale, and
the nature of competition.
Advertising is often criticized, the three most common criticisms being:

❖ That it is wasteful and increases prices (ie without its expense, the goods advertised
would otherwise be cheaper);

❖ That it is vulgar and tasteless; and

❖ That it exploits consumers and creates unnecessary needs.

Its defenders point out that advertising seems to reduce rather than inflate prices, especially in
competitive markets; taste is an individual matter, and advertisements are often more attractive,
tasteful and entertaining than the programmes or printed text that adjoin them; and ads reflect
public needs rather than creating them. Moreover consumers are not mugs.
For its part, the general public tend increasingly to like and approve of advertising, seeing it as at
worst harmless and, at best, entertaining and helpful.
You will have to make up your own mind about this question, and if you strongly share the
criticisms, it may be as well not to work in a business of which you disapprove.
14
However as a final thought, most people who work in advertising come to acquire a healthy
respect for the public's good judgment.

Advertising standards (for instance, to prevent misleading campaigns) are generally policed in
the UK by vigorously enforced voluntary codes of practice. These are underpinned where
necessary by laws and statute.
Despite its glitzy reputation, by no means all advertising work is glamorous or highly paid. On
the other hand, it offers an extraordinary wide range of interesting different jobs and career
paths.
And it's one of the recognized jumping off points for posts in top management later on.
It's also quite a small business in terms of numbers. Because of the small numbers it employs,
only a few of the many people who want to work in advertising succeed in finding jobs in it.
Also, the 'wastage rate' afterwards is rather high in some areas.
For gifted and determined people, on the other hand, it can be a particularly satisfying career
which also offers constant opportunities for advancement, or a change of direction.
Just about all advertising jobs demand an interest in people. This is more or less the only
Common denominator. If you don't like people very much, advertising won't be your cup of tea.
The other qualifications depend on the specific job, which can call for very different interests,
aptitudes and temperaments.
This section outlines the main kinds of work in which advertising are involved in one way or
another. They may be considered both horizontally, in terms of the wide spread of different
skills and aptitudes which are required, and vertically, in terms of upward career paths. An
important point to notice is that in many jobs, advertising work is only part of other
responsibilities. Sometimes it's only a small part, albeit an interesting and rewarding one. This is
worth bearing in mind in career planning: there are many options for moving sideways as well as
upwards - eg between an ad agency and a client, or perhaps in, out of, or between the media.
This is partly because similar skills and knowledge are in demand in all three sectors, partly
15
because hand son experience in one field is often thought valuable by an employer in another
one.

Here are the main categories of work available:

Creative
Planning
Statistics, Research and Analysis
'Buying and Selling'
Sales Promotion
Management Administration

FMCG is one of the most mature markets and, as younger, more dynamic sectors such as leisure,
entertainment and travel come to the fore, it has begun to lose share of private expenditure.
FMCG

manufacturers and retailers therefore need to generate enthusiasm for their offerings so that they
can compete on an even playing field for 'share of wallet'.
“FMCG are losing ‘share of wallet’. ECR has helped to improve profitability, but aggressive
revenue initiatives are now also needed. If FMCG companies can make
consumers more enthusiastic about their products, the sector could be revolutionized”

16
 CREATING DIFFERENTIATION THROUGH ADVERTISING

Advertisements convey brand differentiation and this may be important in several categories,
which consist of several brands. In FMCG products like tea, coffee and detergents,
“differentiation awareness” can be created by television advertising, but in certain categories
there may be a need to demonstrate the effectiveness of brands. Differentiation with which
consumers cannot “connect” may have a negative implication and if a brand “connects”
consumers with its differentiation, it is likely to also differentiate itself in terms of getting
identified with the consumer. A detergent or a washing machine, which claims “low water
consumption” has to demonstrate this claim at a retail outlet especially given the fact that the
quality of water varies across areas even in a specific geographical region.

It is also essential that a good “differentiation proposition” results in a positive word-of-mouth.

In a certain situation, the company may have two offerings in a product-line and there is a need
to differentiate them clearly depending on the target segments involved. This is a complex
situation where differentiation decides the growth of the brand and the perceived difference
between the offerings. An added layer to the complexity is the same brand name being used for
the offerings. Fairness cream is a category in which the benefit is the fairness of the complexion.
A brand like Fair and Lovely built over the years still has a strong association with the category
but under tremendous pressure from competitive brands and the most important criteria which
these brands is the herbal touch associated with them. Herbal ingredients are becoming popular
with consumers in several categories and personal care in India has a strong tradition of herbal
care. Fair and Lovely had to launch its herbal variant (it used the same brand probably because
of the brand equity built up over the years). The interesting fact is the differentiation being
conveyed by advertising. The original version uses an aspiration route in which the brand’s
ultimate benefit is success through confidence.

Estimates based on China's current per capita Consumption, the Indian FMCG market is set to
treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian
markets by unbranded products, change in eating habits and the increased affordability of the
growing Indian population presents an opportunity to makers of branded products, who can
convert consumers to branded products.
16
Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in
India is low. The contrast is particularly striking between the rural and urban segments - the
average consumption by rural households is much lower than their urban counterparts. Low
penetration indicates the existence of unsaturated markets, which are likely to expand as the
income levels rise. This provides an excellent opportunity for the industry players in the form of
a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories
(including the high penetration categories) in India is low as compared to both the developed
markets and other emerging economies. A rise in per capita consumption, with improvement in
incomes and affordability and change in tastes and preferences, is further expected to boost
FMCG demand. Growth is also likely to come from consumer "upgrading", especially in the
matured product categories.
Now before elaborating on differentiation and its various dimensions let us first look into India’s
FMCG market.
We find that even in this time of recession in the global economy our country is maintaining a
fair rate of growth thanks to the boom in retail sector.
If we look at the pie chart drawn on the next page we find that our citizens are the largest
consumer goods spender thanks to a survey done long time back.

EVOLUTION OF ADVERTISING INDUSTRY IN INDIA

1. PRE INDEPENDENCE INDIA

1930’s--------

The talkie and radio emerge as media.

17
 1940’s-------

Characterized by famine, fight for independence accompanied by world war.

In 1941, Leela Chitins’ became the first Indian film actress to endorse Lux soap.

2. 1950’s

Watershed years of advertising.

Many industries came up.

Burmah Shell propagated kerosene by transit advertising on vans. Philip Rose of

Burma Shell created the slogan “fill up and feel the difference.”

Cinema advertising in form of 2-3 minutes films began.

Vicks Vaporub was introduced.

Kolkata got the privilege of having India’s first ad club.

In 1956, govt. launched Vivid Bharti.

Press Syndicate was the leading ad agency at that time.

National created the Murphy baby-still a popular figure.

3. 1960’s

India’s first advertising convention.

Creativity was emphasized.

In 1965, Korsy Katrak launched MCM.

Advertising’s shift to marketing orientation.

18
 Photography found increased use.

Shop audits.
Market Rating Indices came into being.

Professionalization within agencies occurred.

4. 1970’s

Period characterized by media boom.

In 1974, MCM shuts shop.

In 1978, India’s first TV commercial goes on air.

Rural marketing

Life-style studies, positioning

5. 1980’s

Period characterized by Indianisation though there is still Western execution.

Public sector advertising

Launch of radio commercials in 1982.

Expansion and diversification of agencies.TV as a powerful medium, starting

from Aug.15,1982.

NRS 3rd by IMRB

Color printing became more popular.

In 1984,India’s first soap opera Hum Log is on air.

19
 Expansion of radio

In 1986, NIRMA offers stiff competition to multi national brands. Buniyaad as a

serial makes waves.

Regional broadcasts

Marketing techniques in print medium

Formation of Indian Chapter of International Advertising Association

Formation of ASCI

Adoption of a new code

History of Indian advertising taken up as a project by Advertising Club of

Mumbai

Media boom

Concept of sponsored programs on TV

6. 1990’s

Introduction of supplement called Brand Equity by The Economic Times

In 1991,satellite TV:

20
 CNN- first electronic channel to be beamed to India

Star channels

In 1992, Zee TV –to compete DD

DD2 or DD metro- both a terrestrial and satellite channel

Other satellite channels of DD and Indian and foreign networks

DD audience surveys

Emphasis on direct marketing

Niche magazines

Movie and pay channels

FM radio

Emphasis on Brand Equity

Internationalization of advertising

Training facilities being set up

Consumer satisfaction and tracking studies

DD3- an elite channel set up

Prasar Bharti came into existence. DD and AIR freed from the shackles of
government control (1997)

Prasar Bharti; new ordnance, was promulgated in 1998 by Sushma Swaraj

7. 2000 onwards

21
 Adasia held between 10th and 14th November, at Jaipur

Colvyn Harris is named as head, JWT in India in 2004

Launch of NDTV

The report involved analyzing and evaluating advertising strategies for various companies:

EXECUTIVE SUMMARY

Advertising:

22
According to the American Marketing Association, Chicago adverting is “any paid form of
non personal presentation of ideas, goods and services by an identified sponsor”.

Advertising is a form of persuasive communication with the public.

The object Advertising is:-

(1) Inform customers of the goods and services.

(2) Brings out the product use P’s

(3) Calls for or invites people to buy the product

(4) Mass communication

(5) Attract attention

(6) Lousing interest

(7) Building desire

(8) Obtaining action.

How much advertising a given budget and brief will buy.

Costs are usually reckoned on the basis of 'CPT' - the average Cost Per Thousand people
Reached in the target group. This of course varies according to the size of the ad, the rates
Charged by the individual media, and whether a printed ad is black and white, or full colour, etc.
Nowadays virtually every organization in the UK uses advertising in one way or another,
because they find it a practical and cost effective way of achieving some of their aims. The
operative words are 'cost effective'. If the objectives are commercial, one test would be whether,
in the long run, the company gets a better profit result overall from a particular weight of
advertising than from, say, a heavier or lighter weight, or none.
If the objectives aren't commercial but, for instance, to communicate information, the questions
are
(a) whether the effects of advertising are worth the cost, and
(b) whether advertising is the most inexpensive way of creating these effects.

23
It is difficult to measure or demonstrate exact cost benefits from advertising - and certainly to
forecast these in advance. Apart from sales statistics, the most common tools are various
specialized forms of market research, and econometric modeling.
The reason advertising so irritatingly eludes logical or scientific analysis is that three variables
are involved in its effects - two of them not easily measurable. These are the weight of
advertising, the effectiveness of the creative idea and execution, and the latent potential of the
situation to be changed - by advertising or anything else - anyway.
Like it or hate it, advertising is generally recognized to have several practical benefits for society
at large.

More media
One of these is that it largely finances the media. Without advertising revenue, the UK would
have no commercial TV or radio, far fewer and much more expensive newspapers and
magazines, and of course no posters. Cinema tickets would be more expensive.
In this regard, advertising's effect is vastly to enrich the variety and numbers of media available,
and it is an authentic engine of freedom of speech. It also claims this freedom itself, within the
law. (In the UK the principle of 'editorial independence' means that advertisers pay for the
media, but cannot much influence the media's editorial content, whether excellent or deplorable.
Broadcasters and editors say what they want to say: the advertisers are simply allowed to buy a
proportion of discrete spaces to say what they want to say.)

Choice
Advertising, because it is 'competitive', is an agent to improve the range of products available,
the speed with which new ones can be introduced, and even the ways in which we shop.

Prices
Finally, despite its cost (quite often as much as 5 per cent of total product costs) it has the
tendency to reduce prices, because of the efficiency it creates through economies of scale, and
the nature of competition.
Advertising is often criticized, the three most common criticisms being:

24
❖That it is wasteful and increases prices (ie without its expense, the goods advertised would
otherwise be cheaper);
❖That it is vulgar and tasteless; and

❖That it exploits consumers and creates unnecessary needs.

25
 OBJECTIVES OF THE STUDY-
The primary objective of this research is to study the derivation of CRM
through advertisement.

Following are the secondary objectives of this research-

1. To study the traditional scenario regarding the advertising and find out how the firm creates
differentiation through advertising.

2. To study the evolution of advertising industry in INDIA.

3. To study the impact the advertising has on the minds of a consumer while purchasing an FMCG
good.
4. To study the various mediums of advertising a firm adopts while advertising for its offering.

SCOPE OF THE STUDY

The scope of my study would include retail stores, responses of some experts in the field and
responses of some unorganized retailers as well as consumers.

26
 LIMITATIONS OF THE STUDY-

1. Time factor is an important attribute for conducting this research.

2. The authenticity of secondary information available in journals and websites.

3. The unwillingness of questionnaire respondents to provide accurate information.

4. The topic requires some expert examination which might be not possible.

27
28
 LITERATURE REVIEW ABOUT FMCG SECTOR

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.
Penetration level as well as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential.
Burgeoning Indian population, particularly the middle class and the rural segments, presents an
opportunity to makers of branded products to convert consumers to branded products. Growth is
also likely to come from consumer 'upgrading' in the matured product categories. With 200
million people expected to shift to processed and packaged food by 2010, India needs around
US$ 28 billion of investment in the food-processing industry.
Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth
and change in demand patterns, leading to an explosion of new opportunities. Around 60 per
cent of the population in India is below 30 years of age and the young population is set to rise
further. Aspiration levels in this age group have been fuelled by greater media exposure,
unleashing a latent demand with more money and a new mindset.
The importance of consumer sales promotion in the marketing mix of the fast moving consumer
goods (FMCG) category throughout the world has increased. Companies spend considerable
time in planning such activities. However, in order to enhance the effectiveness of these
activities, manufacturers should understand consumer and retailer interpretations of their
promotional activities so that appropriate differentiation can be used.
Retailers stated that role of word of mouth and television advertising was very important in
providing information inputs to the consumers regarding sales promotion activities. This
perception of retailers was supported by the consumer unaided recall of sales promotion schemes
which were widely advertised.
The research concludes with the discussion of the results, managerial implications limitation of
the study and future research directions.

29
 PROFILE OF HUL
The company was incorporated on 17th October, 1933 under the name of Lever Brothers (India)
Pvt. Ltd. (LBIL). It set up its manufacturing units in Bombay and Calcutta an associated
company viz., Hindustan Vanaspati Mfg. Co. Pvt. Ltd. (HVM), was earlier incorporated on 27th
November 1931 which set up a vanaspati factory in Bombay. Both LBILK and HVM were
wholly owned subsidiaries of Unilever Ltd., London, U.K. HVM later acquired three more
vanaspati factories at Shamnagar (West Bengal), Trichanapalli (TamilNadu) and Ghaziabad
(U.P) In order to market the toilet preparations manufactured by LBIL or imported from
Unilever companies, a marketing company under the name United Traders Pvt. Ltd. (UTL) was
incorporated on 11th may, 1935 as a wholly owned subsidiary of LBIL. In 1944, the
management of LBIL and HVM was integrated.
In November 1956, HVM and two small associated companies’ viz. William Gossage & Sons
(India) Pvt. Ltd and Joseph Cross field & Sons (India) Pvt. Ltd., which were wholly owned
subsidiaries of Unilever Ltd., were amalgamated with LBIL and the name was changed to
Hindustan UniLever Ltd. From 23rd October, 1956 activities of UTL were taken over by its
holding.Company LBIL. With the amalgamation of business under one company, Indian capital
was introduced in this integrated business in 1956. HUL has been growing very rapidly,
especially in 1996 the growth was 88.6% HUL became the second private company in India
after Reliance
Industries to cross the Rs 10000 core mark in 1998. At present it’s valued at Rs. 11764.31 crore. 1
its rapid growth has given HUL place in the top 5companies regularly in annual BT-500 survey.
This huge success has come due to:- ▪ Merger with Ponds India Limited

▪ Launch of 40 new products

▪ Doubling of rural distribution network from 50,000 to one lakh villages

▪ Launch of a marketing scheme, Operation Bharat, across 22 states.

It can be said beyond any doubt that HUL is an undisputed leader in FMCG products in urban as
well as rural area. HUL caters to 850 million people in India which becomes 85% approx. of the
total population. Hence the study of HUL can give us a wide knowledge in the fields like

30
successful implementations of urban and rural India cutting across so many cultural, social,
regional, religious, linguistic barriers.

P&G (Procter & Gamble): Profile

Three billion times a day, P&G brands touch the lives of people around the world. Our
corporate tradition is rooted in the principles of personal integrity, respect for the individual,
and doing what's right for the long-term.

Our core values and principles guide us in everything we do. Learn more about what drives our
purpose of providing products and services of superior quality and value to the
world'sconsumers.

The P&G community consists of over 135,000 employees working in over 80 countries
worldwide. What began as a small, family-operated soap and Candle Company now provides
products and services of superior quality and value to consumers in 140 countries.

Spotlight On: Our New Orleans, Louisiana, Folgers® Employees

What They've Done: In the aftermath of Hurricane Katrina's devastation, these

employees — many of them suffering great losses of their own — banded together to

31
help their city get back on its feet. Watch this inspirational video and discover how
P&G employees have risen above this tragedy and are now reaching out to help others
do the same.

In the 1970s, P&G was one of

If James Gamble and William the first companies to put its
Procter hadn't married the Norris safety testing data in a
sisters, P&G might not exist.
computer database, helping to
avoid duplicative testing.

32
Products OF HUL:
Bru:

Bru, launched in 1969, created history in the first year of launch by growing to a
record market share of 21%. Ever since, it has grown from strength to strength.

Bru has been instrumental in virtually creating the entire Instant Coffee category as it
exists today. It has been at the forefront of most innovations in the Instant Coffee
category - whether in coffee-chicory blends, refill packaging, vending operations, or
more recently the Low-unit-price packs.

The Bru franchise also includes the Bru Roast & Ground, India's most popular Roast
& Ground Coffee brand, and Bru Malabar Roast & Ground which is available in
select geographies.

Clinic Plus

Clinic Plus Health shampoo was launched in India in the year 1987. It is India's largest selling
shampoo, offering the five most important hair health benefits: strengthens weak hair, prevents
hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-
dandruff ingredient.

33
The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual shampoo
– it not only fights the last dandruff flake, but also adds back lost nutrients to make hair healthy
and beautiful. Clinic All Clear Total is a dandruff solution for everyday use.

Close-up

Close-up is the original youth brand of India. The first brand targeting youth in the oral care
market, with an edgy and youthful image which stays relevant till date. Ever since its launch in
1975, Closeup has broken every rule in the book on how toothpastes should behave!

Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste
segment ever since. In 2004, Closeup was re-launched with a bang. And this time it was packed
with the power of Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride, Mouthwash
and Micro whiteners, the perfect combination of ingredients for fresher breath and stronger,
whiter teeth.

Closeup became the first Gel toothpaste with Fluoride in the Indian Market. The brand umbrella also
includes Closeup Lemon Mint, gel toothpaste with the whitening benefits of lemon.

The latest entry in the Closeup stable is Closeup Milk Calcium – revolutionary new toothpaste
with the goodness of milk calcium in an industry-first core-in-sheath format, with white milk
calcium nutrient on the inside and a refreshing blue gel on the outside.

Fair & Lovely

A woman's passion for beauty is universal and catering to this strong need is Fair & Lovely.
Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was
launched in 1978.

The Hindustan UNILever Research Centre (it is among the largest research establishments in
India's private sector, including pharmaceutical companies, with facilities in Mumbai and
Bangalore) deployed technology, based on pioneering research in the science of skin lightening
to develop Fair & Lovely. The formulation is patented. Its formulation acts safely and gently

34
with the natural renewal process of the skin, making complexion fairer over a period of six
weeks.

Fair & Lovely is formulated with optimum levels of UV sunscreens and Niacin amide that is
known to control dispersion of melanin in the skin. It is a patented and proprietary formulation,
which has been in the market for 25 years. Niacin amide (Vitamin B3) is a water-soluble vitamin
and is widely distributed in cereals, fruits and vegetables - and its use in cosmetic formulations
has been known for various end benefits. The UV components of the formulation are
scientifically chosen and used at optimum levels to provide wide spectrum protection against UV
rays of the sun. Specifically, this patented formulation offers a high UVA protection, which is
more relevant to Asian skin than plain SPF protection creams sold in the West. All the active
ingredients in the Fair & Lovely formulation function synergistically to lighten skin colour
through a process that is natural, reversible and totally safe.

The brand today offers a substantive range of products, including Ayurvedic Fair & Lovely
Fairness cream, Fair & Lovely Anti-Marks cream, Fair & Lovely Oil control Fairness Gel, Fair
& Lovely for Deep Skin and Fair & Lovely Fairness Soap. The latest has been the Perfect
Radiance, a complete range of 12 premium skincare solutions from Fair & Lovely.

Hamam

Launched in 1934 in India.

Hamam has always been a reliable option for consumers over years. The brand has withstood
the test of time and has given the consumers the confidence and assurance of being a soap that is

35
safe on skin. Hamam is manufactured in the most modern soap plants world-class quality control
system. Hamam contains polyols, which are known to be good moisturizers. Hamam also
contains Aloe Vera, Tulsi and Neem extracts.

Hamam soap is made from a blend of vegetable oils. The optimum grade of Palm oil and
coconut oil is mixed in the right proportion to give a soap that is lasting, gives lather which is
stable and can effectively remove oil, dirt from the surface of the skin.

Kissan

Acquired by Hindustan UNILever Limited in 1994, the Kissan category consists of deliciously
wholesome products for kids to grow up.

The Kissan range consists of ketchup and other sauces, jams, squashes and ready-to-drink products. For
mothers and children, Kissan is today one of the most trusted brands in the country.
Kissan continues to be a pioneer in the categories that it operates in.

Annapurna Salt

Annapurna Salt, first introduced in 1997, was relaunched in 2001 with a

breakthrough technology, patented in India and several other countries. This
technology helps encapsulate iodine with salt. It thereby prevents the loss of iodine
from salt, either during its storage and transportation or
cooking.

Iodine deficiency is a serious health issue in India. About 278 million people are at
risk of iodine deficiency disorders. Iodine deficiency not only leads to goiter, but also
has an impact on the mental development of growing children.

The International Council for Control of Iodine Deficiency Disorders (ICCIDD)

has endorsed Annapurna Salt. Annapurna has also taken initiatives to educate

36
consumers about the benefits of iodine and its effect on the mental development
of growing children.

Launched nationally in 1998, Annapurna Atta is made with patented technology. It

absorbs more water than ordinary atta when kneaded, resulting in softer chapatis.

In 2001, it was fortified with iron and vitamins. The benefit is very relevant because
over 60% of women and children are iron deficient.

Kwality Wall

Kwality Wall's, launched in 1995, is the company's master brand for ice cream.
Kwality Wall's has combined state-of-the art technical know-how of Unilever - the
global leader in ice cream - with a deep insight of the Indian market, to deliver a
range of superior quality products under its international brands.

Key launches include Cornetto, Feast, Viennetta, and a range of Sundaes, and also
exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone.
Kwality Wall's ensures that while each of its offerings is unique in taste and
flavour, they are also accessible to more consumers through breakthrough cost
reengineering and value delivery.

Lifebuoy

Making a billion Indians feel safe and secure by meeting their health and hygiene needs is
the mission of Lifebuoy.

The world's largest selling soap offers a compelling health benefit to the entire
family. Launched in 1895, Lifebuoy, for over a 100 years, has been synonymous
with health and value. The brick red soap, with its perfume and popular Lifebuoy
jingle, has carried the Lifebuoy message of health across the length and breadth of
the country.

37
The 2002 and 2004 relaunches have been turning points in its history. The new mix
includes a new formulation and a repositioning to make it more relevant to both
new and existing consumers.

Lifebuoy is now a milled toilet soap with a new health fragrance and a contemporary
shape. The new milled formulation offers a significantly superior bathing experience
and skin feel. This new mix has registered conclusive and clear preference among
existing and new users.

The new Lifebuoy is targeted at today's discerning housewife with a more inclusive
"family health protection for my family and me" positioning. Lifebuoy has made a
deliberate shift from the male, victorious concept of health to a warmer, more
versatile, more responsible benefit of health for the entire family.

At the upper end of the market, Lifebuoy offers specific health benefits through
Lifebuoy Gold and Plus. Lifebuoy Gold (also called Care) helps protect against
germs which cause skin blemishes, while Lifebuoy Plus offers protection against
germs which cause body pouder.

Surf Excel

A pioneaer in the Indian detergent powder market, Surf Excel has constantly upgraded
itself over the years, to answer the constantly changing washing needs of the Indian
homemaker. Today Surf Excel offers outstanding stain removal ability on a wide range
of stains. This means that mothers now have the freedom to let their kids experience
life without worrying about stains.

Surf Excel quick wash is powered with a path-breaking technology- it reduces water
consumption and time taken for rinsing by 50%. It is a significant benefit, given the
acute water scarcity in most of India.

Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel Quick Wash and Surf Excel
Automatic. So whatever be the need, Surf Excel hai na.

38
Sunsilk

Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country. Positioned as the
'Hair Expert', Sunsilk has identified different hair needs and offers the consumer a shampoo
that gives her the desired results.

The benefits are more compelling and relevant since the variants are harmonised in terms of the
product mix - fragrance, colour and ingredients are all well linked to cue the overall synergy.
The range comes in premium packaging and design. The accent is on "It knows you, and hence
knows exactly what your hair needs".

39
 Products OF P&G
Head & Shoulders Shampoo
Head & Shoulders shampoo is specially formulated to give you beautiful, healthy and dandruff-
free hair.
Available in Classic Clean Shampoo and 2 in 1, Ocean Lift Shampoo and 2 in 1,
Citrus Breeze Shampoo and 2 in 1, Refresh Shampoo and 2 in 1, Restoring Shine
Shampoo and 2 in 1, Extra Volume Shampoo, Smooth & Silky Shampoo and 2 in 1,
Dry Scalp Care Shampoo and 2 in 1, Sensitive Care Shampoo and 2 in 1 and
Intensive Treatment.
Head & Shoulders Conditioners
Head & Shoulders conditioners are designed to give your hair a radiant shine and
help reduce flakes. Available in Classic Clean and Dry Scalp Care

NEW! Head & Shoulders Intensive Solutions

. Contains 2% Pyrithione Zinc for maximum strength without a prescription

Clinically designed to help prevent seborrheic dermatitis, severe dandruff and other dandruff related
problems

Clinically designed to help prevent seborrheic dermatitis, severe dandruff and other dandruff
related problems

Features a clean, refreshing fragrance

Leaves hair shiny and manageable

Tide® Liquid

3X the stain removal power for about 25 cents a load*. Tide Liquid
combines all the great stain fighting qualities you've come to expect
in Tide Powder with the pretreating ease of a liquid detergent.

Available in Tide Clean Breeze Liquid, Tide Mountain Spring

Liquid, Tide Tropical Clean Liquid, Tide Original Scent and Tide

Liquid Free

40
 Tide Powder

Tide Powder detergents get to the bottom of dirt and stains to help
keep your whites white and your colors bright.

TIDE WATER
For great stain removal in any temperature, Quick Dissolving™ Tide is formulated to immediately start
dissolving — even in cold water.

Available in Tide Clean Breeze Powder, Tide Mountain Spring Powder, Tide Tropical Clean Powder, Tide
Original Scent and Tide Powder Free.

Tide with Febreze™ Freshness

Helps clean away stains and odors with ease

Tide with Febreze™ Freshness

Helps clean away stains and odors with ease

Tide with Febreze Freshness gives you the great cleaning you expect
from Tide, now with the Febreze freshness you love.

Specially formulated to help target and remove common odors that

get trapped in fabrics, and then deposit "freshness actives"

Available in Tide with Febreze Freshness Liquid Spring & Renewal,

Tide with Febreze Freshness Powder Spring & Renewal, Tide with
Febreze Freshness Liquid Meadows & Rain and Tide with Febreze
Freshness Liquid Citrus & Light

41
Deep Clean. Save Green. Tide Coldwater provides a deep clean in the
care of cold water, making it the coolest way to clean.

Removes even stubborn stains better than the leading competitive liquid
detergent in warm water

Saves energy and money by lowering your heating bills

Helps colors stay brighter and whites stay whiter

Provides a cool new scent experience

Available in Tide Coldwater Fresh Scent Liquid, Tide Coldwater

Glacier Liquid, Tide Coldwater Fresh Scent Powder and Tide
Coldwater Glacier Powder.

Tide with a Touch of Downy®

Tide with a touch of Downy presents outstanding Tide clean with a touch
of Downy softness and freshness.

Available in Clean Breeze Liquid, April Fresh Liquid, Soft Ocean

Mist Liquid, Clean Breeze Powder, April Fresh Powder and Soft

42
 Ocean Mist Powder

Tide with Bleach

Clean even what's unseen. Tide with Bleach will clean your clothes

and help keep your colors bright and your whites white.

Available in Original, Mountain Spring and Clean Breeze scents

Tide Liquid with Bleach Alternative

The smart alternative to chlorine bleach. Tide Liquid with Bleach

Alternative uses active enzymes to break down and remove stains while
whitening whites.

Because it is not chlorine based like liquid bleach, it also is

safe to use on colors too. In fact, the Tide BrightLock™
formula actually reduces chlorine in the wash to help keep bright
colors from fading.
Available in Tide with Bleach Alternative Liquid Original, Tide with
Bleach Alternative Liquid Clean Breeze and Tide with Bleach Alternative
Liquid Mountain Spring

Tide HE

43
 Get the most out of your high-efficiency washer. Tide HE is
specially formulated to unlock the cleaning potential of
highefficiency washers.
Standard detergents can cause over-sudsing when less water is used, and using less detergent sacrifices
cleaning power. Tide HE provides excellent cleaning with the right level of sudsing.

Available in Tide HE Powder Original, Tide HE Liquid Original, Tide HE Liquid Clean Breeze and
TideA
HE Liquid Free

Available in Tide HE Powder Original, Tide HE Liquid Original, Tide HE Liquid Clean Breeze and
TideA HE Liquid Free

For more than 50 years, Oral-B® has produced the highest-quality dental
hygiene products for you, your family and dental professionals worldwide.
Trust the brand more dentists use themselves worldwide.
Power Toothbrushes
Oral-B power toothbrushes offer exceptional features and performance
benefits. In fact, an independent landmark study has concluded that
only the oscillating-rotating power toothbrush technology, pioneered
by Oral-B, offers superior cleaning compared to manual toothbrushes.

Power Brush Heads

Oral-B offers 12 advanced power brush heads designed for different

needs. Choose the perfect one based on your desired brushing
experience: deep clean, extra soft, whitening, floss-like clean,

44
traditional brushing and cleaning around braces or other dental work.
Manual Toothbrushes

At Oral-B we develop products that are used and trusted by dental professionals worldwide. From infants to
adults, Oral-B makes a manual toothbrush to meet your family's needs.

Kids' Products
Kids change a lot during the developmental years. Oral-B Stages® kids' products are designed to meet their
special oral care needs at.

45
HUL: ADVERTISING STRATEGY
BUILDING CORPORATE IMAGE

Corporate communications and public relations for building image can truly be looked upon in
the context of global business and marketing as a subject about which many professionals hold
firm views, but know surprisingly little about. Some see it as a menace, as an expensive flag
waving exercise which their company can easily do without. Others regard it as a myth, arguing
that publicity by of virtue its obvious nature, cannot hope to change perceived images in people’s
minds. At the other extreme are those who view corporate communications (particularly
advertising as a magic formula and an instant panacea for every corporate ill. In reality it is none
of these things. it is in fact, a management tool to influence the outside world-the target group.
So, the real significance of building corporate image lies in preparing and consolidating a sound
global consumer base.

Every company wants to have a favorable image in the global market. In case of HLL also,
image-building plays the most important part in determining its marketing strategy. Building
corporate image is concerned with building confidence and credibility by helping your target
group understand you better. Familiarity in this case normally improves acceptability of who
you are and what you are doing. Ignorance, on the other hand, can lead to mistrust, or even
contempt in some situations.

46
 Corporate image is built through more than one strategic means, and often a combination of
activities. For instance-

1. Advertising —corporate and even product

2. Public Relations—external and internal

3. Media Relations —especially the Press

4. Customer and Supplier Relations

5. Community Relations — good corporate citizenship

As India transits from a shod age-driven economy to a one propelled by competition the
reputation and image of a company like HLL will make difference between whether it rules the
market or merely rues it. Corporate image is what enables HLL to hold its own against rivals
like IPCL and Haldia

Good corporate image can be built if you treat it like one of the Ps’ of marketing— the fifth ‘P’
stands for Performance’ —professional corporate performance, doing it the right way the first
time. It’s in this regard that creativity in PR comes to have a lion’s share in the entire process of
corporate image building.

Creativity in PR means more than just pretty pictures and good copy. It is building image with
activities, which generate all-round impact and visibility for the company. ‘What’ and ‘How’ is
the task here. Creative corporate advertising is one route.

With respect to positioning similarly, the image communication and image building activity
must to able to find a right niche in the minds of the target group. The ‘quality of the message,
and activity, is vital for this.

Companies which benefit most from corporate image are those who take a long-term view and
commitment towards communication and the image of their organization through it. HLL can be
presented as a striking instance of it.

47
Image and Identity

There may be nothing new in saying that the corporate image is in the eye and the mind of the
receiver. Yet it is worth saying again and again. An organization transmits, on a sustained basis,
messages to publics. It is the reception of the message, which goes to create the intended image.
In other words, corporate communication is the process that translates an identity into an image.
Again, in brief, corporate image primarily refers to the image that a company has acquired with
the public whereas corporate identity refers to the image a company strives to achieve, in order
to build to build a reputation with its publics.

In this context, decidedly, every company like HLL needs a mission. The mission is, in fact, a
framework for business and all its activities, the value that drive the company to achieve the
corporate goals. No less important is the belief the company has in it. The mission is the glue
that holds the company together. Here, the PR and its communication strategies come into
distinct focus. If the mission and the objectives of the organization have to succeed, the
corporate body must communicate short-term goals, long-range objectives and even the total
mission of the organization. Inadequate communications result in an ambiguous corporate image
within as well as outside and lead to breakdown in the co-ordination of all contributing elements
in an organization.

Dare To Think Beyond Advertising….

In present situation to address the "The soprano problem", advertisers resort to shadow
advertisement where the products become endemic to the setting of the show. Where the
products are shown being consumed or brand name is exhibited in the background.

In India, the first shadow advertisement was used in movie "Bobby" where motorcycle
"Rajdoot" was advertised. Recently, there was shadow advertisement of Coca-Cola in Hindi
blockbuster "Kaho Na pyar hai". But the problem with shadow advertisement is that positioning
message of the product can't be conveyed to consumers. Hence, the concept of shadow
advertisement can be extended further so that the theme of the advertising would become

48
endemic to entertaining show. This would be no more exclusive advertising. Rather, advertising
will be a part of the entertainment. But this has to be done in a delicate manner so that the
information about the product is passed on to the viewers without disturbing the entertaining
element of the show. If this succeeds, that would be a great break-through for advertisement.
Even this should not be called advertising anymore, as that has become an irritating word in the
mind of the audience. Even though advertainment seems quite close to it, but it would be more
evolved. Since in advertainment we try to advertise and entertainment comes with it. But in the
recommended solution we want to entertain the audience only and advertisement is an integral
part of the show. The major question would be, whether the audience would be able to
comprehend the hidden positioning message? Here are few examples on how to make the
positioning message integral part of the show. We have programmes like "Antakshari" in which
participants take part in groups. The groups can be named after some brands and the participants
would be projected as such that they would be personification of brands. Suppose one group is
named Lux, the participants are expected to be beautiful women who stand for Lux. So this can
be done for many programmes, which has format like this. Suppose HLL produced a soap opera
and the dialogue of the characters at some point would be focussed on the products of HLL. Of
course the context has to be right and should be very much along the script not that it would
destroy the element of entertainment. Hence the major challenge would lie before scriptwriter
and director. Even a particular character of an opera becomes very popular as the opera becomes
very popular. Hence building such character, which would personify the brand and both the
character as well as the brand would grow in due course of time. However even if time
constraint is removed, course content constraint comes in. But the scope of story telling is far
greater. Attention grabbing will be replaced with attract attention and no zipping/zapping
problem. Audience will be more receptive and comprehension of course would be dependent
upon how it is executed. Practicability of the idea would be tested when it will be implemented.
Hence unless it is tried and tested it can be concluded that whether it will click or not. Let's take
the example of CocaCola, the scriptwriter would be creating situation in each episode of a family
soap where there would be opportunity to celebrate and drink coke! To give another example, a
multi utility vehicle with safe driving positioning plank could have exploited the plot of the
recent movie "Road".

49
If this concept clicks, there would be nothing like it for advertisers. If it happens, in future big
advertisers like HLL would be diversifying to entertainment business! Of course the ad budget of HLL
is far bigger than the total budget of many entertainment houses.

Irrespective of whatever positive points or negative points it has, this concept can be tried for
programmes aired in pay channels simply because there is no other alternative to advertise
during the programme. Besides it is expected to solve the other problems those are discussed
above. Advertisement would be no more the troublemaker and irritating. Hence catching
attention would be much easier. Only testing of this idea could help us to conclude whether to
roll out from the concept from programmes of pay channels to programmes of free channels.

PUBLIC RELATION
“Public relations practice is the deliberate planned and sustained effort to establish and
maintain mutual understanding between the organization and its publics”.

By: - Institute of Public Relation (British) 1948.

To understand the definition better it in important to know as to who does the word publics refer

to. Public are - : Shareholder

: Customers

: Employees

: Trade Unions

PUBLIC RELATIONS

Here we try to identity the distinguishing factors between Advertising and public relations:

“Advertising is a commercial persuasive activity aimed at promoting a particular idea or a

viewpoint product, or service, institution and so on through the mass media.”

As refined by the British Institution & Practitioners of Advertising:-

50
“ADVERTISING presents the most persuasive possible selling message to the light prospects for
the product or service at the lowest possible cost on the other hand “.

Public Relations demand more time and effort than advertising because advertising is limited to
special selling and buying tasks. For advertising the basis jobs of conceptualizing, producing,
space buying etc. Can be delegated folly to agencies whereas such total hiring of agencies for
absolute Public Relation functions cannot be conserved.

Public relations are a long-term policy measure and are not built overnight. It is also not free of cost,
it is built over a period of time.

“With public opinion against it nothing can succeed”.

“With public opinion on its side nothing can fail”

- Abraham Lincoln

Public relations, taken as a component of management discipline, are of comparatively recent

origin. As a concept, it was critically evolved in business and industry and subsequently spread
to other areas of human activity. Applicability of this profession in government and public
institutions like corporations, municipalities, universities, hospitals, social service organization
and professional institutions it truly immense. Admittedly, even before the emergence of
industry, business and government, a public relation was in practice in people’s daily life. In
effect, a public relations is the result of the action inherent in an individual, an institution or an
organization.

Public relations are never a private monopoly of PR practitioners. In fact, members of an

organization, and especially those in leadership, management and supervisory positions have a
PR role to play and often even singularly. People adept in the art of public relations stand better
chances of success and survival since they can always find areas of mutual interest. They also
use modern methods of communication and persuasion which go a long way in establishing
mutual understanding based on truth, knowledge and complete information.

51
THE SIGNIFICANCE OF PR IN HUL

It may be useful to begin by first getting out of the way certain popular notions which, as with
many popular beliefs are either without any basis in reality or at best express only half truths.
For instance, PR men are regarded by some to be fixers, a breed of people who will wangle
things for you by the most questionable methods. There is also a popular idea that PR men
spend most of their time winning and dining, using for the purpose fabulous expense accounts
they are supposed to have access to. While no one can prevent a charlatan from posing as a PR
man or styling himself as a PR consultant he is no more a tine practitioner of PR than a quack
selling magic remedies by the wayside is a physician. How deep-seated such popular
misconceptions about PR can be reflected by the fact the even now one comes across articles
published in well-known papers and journals airing such naive ideas about PR.

Again, PR is sometimes confused with publicity. Publicity is certainly one of the instruments of
PR but is would be as wrong to equate publicity with PR just as it would be to equate the
stethoscope with the practice of modern medicine. To continue the analogy, PR seeks to
diagnose the ills of an organization in its relations with the public or any segment of the public,
it prescribes remedies and proceeds to administer them. It then keeps a watch on the patient to
see whether the remedies prescribed are producing the desired effect so that the medicine can be
changed if necessary after evaluating the results. Again, as in medicine prevention is considered
more important than the cure, PR believes in maintaining the good health of the corporate body
-so that drastic remedies and bitter pills may not have to be swallowed later.

Analogies may be useful in giving a general idea but can never be as precise as a definition. PR
which is now a well-established discipline therefore needs to be defined so that we may be clear
about what we are discussing when we talk about PR. It is ‘the attempt by information,
persuasion and adjustment to engineer public support for an activity, cause movement or
institution. ‘Public relations as and applied social and behavioral science is that function which -
measures, evaluates and interprets the attitudes objectives for increasing public understanding
and acceptance of the organization’s products, plans, policies and personnel; equates these
objectives with the interests, needs and goals of the various relevant publics; and develops,
executes and evaluates a programmed to earn public understanding and acceptance.

52
GOVERNMENT RELATIONS

Government relations have two facets to it. First the PR for the government (as an organization)
and second, PR with the governments as the target group. Both are important and very needed by
corporations.

Public relations for the government involves mobilizing public support for government’s
activity, for instance, family planning, control, environmental protection, beautification of cites,
etc. the company generally sponsors some of these activities by providing monetary help or
other resources. The basic objective of the company is to build relations with the governments,
and also help for the good of the community of society.

Public relations with the government involves keeping the government—politicians and
bureaucrats—on your side. It envisages maintaining good links with the government which will
be of benefit to the company in its overall business plans and operations. Public relations with
the government in some ways are quite difficult and demanding. It requires special planning and
efforts for the organization to be successful. A government, local or national, comprises many
ministries, departments, individuals and personalities. Public relations people have to acquaint
themselves with the working of the government, and the intricacies and people involved at
various levels, and then handle things accordingly to be able to achieve what they have set out to
achieve.

The government should not be looked at as an adversary. In fact, you should make all efforts to
help the government and support its activities and policies as far as possible. Government
leaders must be kept informed from your side about the organization’s activities and policies—
especially those which are contributing to the welfare and development of the state or the nation.
Such

relations will be mutually beneficial in the short-term and the long-term. Corporations should, however
avoid getting involved with politics and political issues.
MEDIA RELATIONS

Media relations Is a vital tool in PR. A large amount of communications and PR are conducted
through the media—especially the Press. When a company gets media coverage, it is not always
flattering. Business is always vulnerable to attacks by the media. Media can often aggravate
problems—especially crises. As in the case of Union Carbide and HLL a few years ago.

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Hence, media, particularly the Press has to be handled very carefully. The media must be kept
on your side. All efforts must be made to ensure this strategically. It takes years to build a good
image, but to destroy it you need just a few bad reports in the media.

It is important to build a working ‘rapport’ with the media. You cannot afford unnecessary
reactions and distortions. If you do go to the media then always go with a strategy—be selective
in the choice of media, use only influential media (especially publications in the Press), do not
spread your communication too thin, go for quality rather than quantity. Selective and in-depth
coverage is what you must aim at, as it is more effective and produces the desired results. let
your communication be complete honest, and backed with hard facts. The organization must be
able to live up to its claims and promises in media, otherwise you can be in for further problems.
The efforts made by HLL in this respect have been orchestrated well to build image as well as to
counter negative publicity.

FINANCIAL RELATIONS

With the growth of the Indian economy and the business sector, management of financial
promotions and PR have taken on a new dimension. HLL is making special efforts to ensure the
goodwill of their shareholders, investors, financial institutions, and the rest of the financial
community. This is being done in the mass media and specialized media ranging from annual
reports to special brochures to audio-visuals, video films, and even corporate advertising in the
Press and television.
The main target group of a company in financial PR is its shareholders and potential investors.
They have to be given information they are entitled to have, and they have to be kept interested
in the company. Public relations must establish, maintain, and improve the company’s image
and reputation so that it can obtain funds from the public and the financial institutions on the
most favourable terms when it desires so The financial and business Press, today, is very
important in achieving this objective,

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The importance of financial PR and the need for it is seen from the number and growth of PR
agencies specializing in financial promotion, advertising and PR management in India. These
include well-known names like Pressman, Clea, and Sobhagya, now a host of others. They
provide their clients a wide range of services and expertise in PR and advertising.

CUSTOMER RELATIONS

In the past PR and marketing were considered separate and unconnected activities of business ‘in
a company. Today, PR has a role to play in marketing not only to build image, but to also help
solve problems concerning a company’s products or services among consumers or other special
groups, and generally protecting the company’s reputation at the marketplace. Public relations
with customers, and with suppliers, in industrial products/services marketing at the institutional
level are gaining more and more importance today.

In today’s competitive market customers opt for products that are known and have an image, and
are backed by quality and good after sales service. Public opinion on such aspects cannot be
ignored by marketing people. In the long run, unfavorable opinions certainly affect sales.
Public relations can help in controlling and setting right some of these opinions; it is therefore
essential for companies to assign some of their attention and resources to develop PR in
marketing.

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COMMUNITY RELATIONS

Today, the relationship between corporations and the community is a vital issue in management
of business organizations. It is acknowledged that business is no longer done for the sake of
profits alone. Because a company functions within a community, its responsibility extends to
giving back to the community something for what it makes from it. This has been the
philosophy of the Tatas in India for years; today it is accepted and is being followed by a number
of other companies. This belief is now also considered important and crucial by the government,
consumerists and opinion leaders. Company relations at an organization can vary from local

Community welfare activities, to large scale sustainable development programmers for the
betterment of lives of people. Companies have to consider the community as one of its prime
target groups. The objective of PR is to help build image of the company: as a good corporate
Citizen, a good company to do business with, and a good company to work for.

EMPLOYEE RELATIONS

In employee relations, communicators are vital at every level. From top to bottom, also from
lower level to the top management level, and even the horizontal communications among
colleagues at the same level and between functions. The basic function of communications and
PR in the organisation is not just better functioning, but a fostering of goodwill, trust, and
togetherness among employees.

INDUSTRIAL RELATIONS

This is another important area of work for PR executives. Its importance is growing, with staff
and workers getting to be united, more enlightened and demanding. Whether they are unionised
or not does not make a difference in the PR work; in either case, good relations have to be

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maintained. In the case of unions, it Is important to realise that unions have their own goals.
This makes it more difficult to deal with them in many respects. Understanding these goals, and
how they will affect Industrial relations and PR efforts, is the first priority in dealing with
unions.

P&G: ADVERTISING STRATEGY

We take pride in developing strong ties to the communities in which we live and work and are focused
on helping children in need around the world live, learn and thrive.

P&G Chemicals is committed to providing your business with consistently high-quality oleochemicals.

P&G Commercial Products supplies a variety of businesses with P&G cleaning, laundry, and coffee, tea
and snack products.

P&G EDI provides easy access to electronic data that is of value to prospective and current P&G retail
customers, transportation carriers and financial institutions.

P&G Food Ingredients help formulators create great tasting, better-for-you products by
developing functional ingredients that reduce fat and calorie profiles, lower cholesterol effects
and improve heart health.

The P&G Legislation & Regulatory group delivers accurate and timely information to representatives of
industry trade groups, legislators and government agencies.

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The Retail Customers group assists the Company's trade partners and representatives of retailers.

For current and prospective suppliers, P&G provides a Supplier Portal Web site that offers easy access
to a variety of information.

P&G is actively searching for the next game-changing products, packaging, technologies, processes and
commercial connections that can improve the lives of the world's consumers.

P&G's Tremor division designs and implements customized word-of-mouth marketing programs
for both internal brands and external clients. Tremor programs leverage national panels of
250,000 teens and 450,000 moms to deliver outstanding business.

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59
 RESEARCH METHODOLOGY

TYPE OF RESEARCH- Descriptive Research

The data used for this purpose would be both primary and secondary data.

METHOD OF DATA COLLECTION-

---Questionnaire surveys
---websites
---previously published articles
---related magazines and journals

SAMPLING PROCEDURE
I would adopt simple random sampling procedure during my research.

SOFTWARE USED
The software used for this purpose would be MS OFFICE.

I surveyed about 50 consumers and 50 retailers .based on whom responses I have arrived
at following observations

Sample size- 100

Sample area- Darya Ganj & Connaught Place

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 Data analysis & Interpretation
Year wise net sales of FMCG Companies by advertising:

Graphical Representation:

YEAR Sales in Cr
2003-04 10667
2004-05 9954
2005-06 10139
2006-07 8828
1106
2007-08 0

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 YEAR Profit in Rs (Cr)

16
2003-04 41
17
2004-05
55
17
Graphical 2005-06 Representation:
71
21
2006-07
Year wise 97 expenditure on
2007-08 24
00
advertisement Profit in Rs (Cr) :
YEAR
YEAR Expenditure in Rs (Cr)
2003-04 824

2004-05 842

2005-06 760

2006-07 836

2007-08 1008

Graphical Representation

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Q.1 Do you take advantage of promotional activity which
is given below.
• Coupons • Discounts and sales • contests
• Point of purchase displays.
• Rebates.

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2-NO. OF PEOPLE GOING FOR BRANDS WHILE PURCHASING
FOR FMCG PRODUCT

YES- 3
3

NO- 1
7

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3-NO. OF PEOPLE FEELING THAT
ADVERTISING EDUCATES A
CUSTOMER.

YES- 32
NO- 18

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NO. OF PEOPLE FEELING THAT
ADVERTISING
EDUCATES A CUSTOMER.

YES - 32
1

4-NO. OF PEOPLE GOING FOR IMPULSE PURCHASES

WHILE BUYING A FMCG PRODUCT.
YES- 3
0

NO- 2
0

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5-NO. OF PEOPLE GETTING AFFECTED BY CELEBRITY ENDORSEMENTS.

67
Yes 39
NO 11

68
6-NO. OF RETAILERS FEELING THAT ADVERTISING
BOOSTS
THE SALE OF SLOW MOVING ITEMS.

YES- 33 NO- 17

69
7-NO. OF RETAILERS FEELING THAT FREQUENTLY
CHANGING
DVERTISEMENTS IS AN EFFECTIVE WAY TO BOOST
SALES.
YES- 4
0

NO- 1
0

70
8-NO. OF RETAILERS FEELING THAT CUSTOMERS HAVE
RIGHT IMPACT OF ADVERTISEMENTS.

YES- 17
NO- 33

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9-WHICH ADVERTISING IS MORE
FFECTIVE IN VIEW OF
THE RETAILERS.

POINT OF PURCHASE- 32
TV- 18

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73
 FINDINGS
Following Are the Findings of My Study on this Topic:

➢ Problem solving and strategic planning experience having worked closely with sales teams to
generate insights to retain and grow customers. Client side and agency experience across a range
of service and FMCG companies. Degree educated with the CIM diploma in marketing.

➢ Creation of ‘Less gassy’ campaign - positive response rate of 55% in mainstream consumer tests.

➢ The aim of the study was to quantify the average impact that European ad campaigns have on
traditional branding metrics, and create benchmarks for categories such as FMCG which has
traditionally not embraced the Internet as a key advertising medium.

➢ The largest rise will be in the automotive sector with those questioned within estimating that
online will represent 8.7% of total ad spend by 2007, a 123% increase. FMCG advertisers predict
a 59% increase in the share of online ad spend while entertainment brand advertisers predict a
28% increase.

➢ People believe that internet is a vital component of their company’s advertising strategy.

➢ People say that rising broadband penetration is making online advertising more attractive.

➢ The online share of total ad spend will rise substantially over the next two years.

➢ Perceived lack of research & measurement remains key barrier for advertisers.

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75
 CONCLUSION
By conducting the analysis of the questionnaire I reached at the following conclusions-

o A significant no. of people go for brands while purchasing a FMCG PRODUCT.

o People advocated to the fact that advertising educates a customer.

o People definitely go for impulse purchases while purchasing a FMCG

PRODUCT.

o MAJORITY of people get affected by celebrities and want to use the products which their
favorites use.

o MANY retailers agreed to the fact that advertising boosts the sale of slow moving items.

o They also advocated the fact that frequently changing advertisements is an effective way to
boost sales.

o They straight forwardly negated the fact that customers have right impact of
advertisements.

o They (retailers) emphasized the importance of point of purchase advertising.

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 RECOMMENDATIONS

While going through this research I found out various inputs of advertising and learnt a lot about the
topic which I would implement in practice during the course of my job. I want to add some
suggestions which are –

1. Firms should also look to trade promotion in combination with sales promotion as an
fitting alternative to boost their sales.

2. Firms should avoid using celebrities for endorsing their products which involves a high
cost. Instead they should use common people so that the masses get attached instantly.

3 Firms should not extrapolate the features of their products during advertisements.
.
4. The consumers should use their rational thinking instead of believing on advertisements
while going to purchase any FMCG product.

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 QUESTIONNAIRE FOR CONSUMERS

NAME

ADDRESS

CONTACT NO.

1. Do you go for brands while purchasing any FMCG product(like toothpaste

or soap)
Yes ___ no ____
2. Do you feel that a product having a low price does not have a reasonable
quality
Yes ___ no ____

3. Do you feel that advertising educates a customer

Yes ___ no ____

4. Do you go for impulse purchases while purchasing a FMCG product
Yes ___ no ____
5. Do celebrity endorsements attract you?

Yes ____ no ____

6- Do you take advantage of promotional activity which is given below

• Coupons
. • Discounts and sales
• contests
• Point of purchase displays.
• Rebates.

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 QUESTIONNAIRE FOR RETAILERS
NAME

ADDRESS

CONTACT NO.

1. Do you feel that window displays are really helpful for attracting customer’s
attention?

Yes ____ no ____

2. Does advertising boosts the sale of slow moving items? Yes ____ no ____

3. Do you feel that regularly changing advertisements is an effective move to

boost sales?

Yes ___ no ____

4. Do you believe that customers have the right impact of advertisements? Yes

____ no __

5. Which advertising is more effective-point of purchase advertising or TV

advertising?

Point of purchase_______ TV_____

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 BIBLIOGRAPHY
BOOKS

• Briggs. (1998). "The Big Payoff". Advertising Age, Spring 1998,

• Rein. & Brennan, M. (1997). "The relative effectiveness of sound and animation in
web banner advertisements". Massey University Marketing Bulletin, .

MAGAZINES

• A&M
• Business Barons
• Business Today

• Business World. INTERNET

WEBSITE

• www.google.com
• www.indiainfoline.com
• www.hll.com
• www.unilever.com

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