“ROLE OF ADVERTISING IN FMCG SECTOR” final
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Transcript of “ROLE OF ADVERTISING IN FMCG SECTOR” final
Project Report
On
“ROLE OF ADVERTISING IN FMCG SECTOR”
Submitted for the partial fulfillment of the Award
Of
Master of Business AdministrationDEGREE
(Session 2008-2009)
SUBMITTED BY
PRAKASH CHANDRoll No. 0703270036
UNDER THE GUIDANCE OF MISS FATIMA ISLAM
[1]
DEPARTMENT OF MANAGEMENT
ACADEMY OF BUSINESS & ENGINEERING SCIENCES, GHAZIABAD
[2]
[3]
AFFILIATED TOUTTER PRADESH TECHNICAL UNIVERSITY, LUCKNOW.
CANDIDATE DECLARATION/CERTIFICATE
I hereby declare that the work which is being presented in this report
entitled “ROLE OF ADVERTISING IN FMCG SECTOR” is an authentic
record of my own work carried out under the supervision of Miss. Fatima
Islam.
The matter embodied in this report has not been submitted by me for the
award of any other degree.
Dated: (Prakash Chand)Roll No. 0703270036Department of MBA
This is to certify that the above statements made by the candidate are cored to the best of my knowledge.
(Head of Department) (Miss Fatima Islam)Date: Lecturer
[4]
Department of MBA
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 leart filled thanks to my project guide
“Miss Fatima Islam” who has been a source of guidance and has rendered constant
encouragement to complete this project.
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 providing me with great help.
(PRAKASH CHAND)
[5]
CONTENT
Page No.
CHAPTER-1
Introduction 6
Need of the Study 18
Scope of the Study 19
Objective of the Study 20
CHAPTER-2
Research Methodology 21
Limitation 24
CHAPTER-3
Descriptive work on subtopic of study 26
o Profile Of HLL
o Profile Of P&G
o Product Of HLL
o Product Of P&G
Different Advertising Strategies 63
o HLL: Advertising Strategies[6]
o P&G: Advertising Strategies
CHAPTER-4
Data Analysis and Interpretation 79
o Vision 2007
o Finding
CHAPTER-5
Conclusion & Suggestion 90
CHAPTER-6
Bibliography 95
[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?
[9]
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)?
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
[10]
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.
Direct response advertising (also called 'direct marketing', ie using the ad in place of a
retail outlet) cuts across these divisions. It variously employs direct mail, sendaway
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 eg 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, [11]
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 simply to get the public to reappraise its opinion of a particular company or
organization, or just to provide information.
Moreover noncommercial advertiser’s 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.
[12]
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 program 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.
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
colors, 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 [13]
(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 modelling.
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.[14]
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.
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.
[15]
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 is 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
[16]
in all three sectors, partly because handsom 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
aggresive revenue initiatives are now also needed. If FMCG companies can make
consumers more enthusiastic about their products, the sector could be revolutionised”
The report involved analysing and evaluating advertising strategies for various
companies:
[17]
Advertising:
“DOING BUSINESS WITHOUT ADVERTISING IS LIKE WINKING AT A
GIRL IN THE DARK; YOU KNOW WHAT YOU ARE DOING, BUT
NOBODY ARE DOES”
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
[18]
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 organisation 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 specialised forms of market research, and econometric modelling.
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 recognised to have several practical benefits for
society at large.
More media
[19]
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 criticised, 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.
[20]
NEED OF THE STUDY
It gives the company immediate access to strong brands, manufacturing facilities
and logistics and also an established customer base of retailers.
The acquisition will also enhance its skills in marketing and management of
modern trade channels, which is relevant in a changing Indian retail
environment.
A review of the methodologies being used by FMCG operatives to sustain
consumer enthusiasm about their products and services and to create
sustainable, high revenue positionings.
Opportunity to reach a large audience.
You will have up-to-the minute statistics reports and an advertising management.
You can choose your campaign duration, from one week to one year.
Advertise to a motivated audience of new parents, voyeurs and teens.
SCOPE OF THE STUDY[21]
“Consumer enthusiasm can best be generated if companies go beyond simply
creating products for specific groups of potential customers and start engineering
whole consumer trends and fashions.”
“FMCG are losing ‘share of wallet’. ECR has helped to improve profitability, but
aggresive revenue initiatives are now also needed. If FMCG companies can make
consumers more enthusiastic about their products, the sector could be
revolutionised”.
"The people of Asia are realising that a brand is not just putting a name on a
product, but that they've got to invest in it. They've got to look at advertising and
promotion as an investment rather than as expenditure. That awareness is
increasing. And for us in the consulting business, there lies tremendous
opportunity.”
GEOGRAPHICAL AREA : NCR
TIME DURATION : 10 days
CORRESPONDENT : Advertising Manager, Retailers
[22]
OBJECTIVES OF STUDY :
A study of media strategy and fact as they related to an advertising campaign explore
media analysis selection and advertising campaign.
To show the benefits of an advertising.
To identify the problem in national advertising.
To describe the step involved in designing an advertising.
To creation of awareness and interest of the new product by advertising.
[23]
RESEARCH METHODOLOGY
Research methodology is simple framework or plan for the study that is as guide in
collection and analyzing the data. It is the blue print that is followed in completes the
study. Thus, good research methodology ensures the completion of project efficiency
and affectivity. Since there are many aspect of research methodology, the line of action
has to be chosen from the variety of alternatives, to choose the suitable method through
the assessment from various alternatives.
Research methodology gives the researcher an opportunity to put
forward his argument for having opted for certain alternatives and also at the same time
he can justify his ruling out some other possibility likes. Why research study has been
undertaken, how the research problem has been formulated what data has been collected,
what particular technique if analyzing the data has been used and lot of similar type
question are usually answered when we talk of research problem in study.
Keeping in view the above stated objectives the following methodology was adopted:
The Marketing Research Process
Define the problem and Research Objectives: - The first and main step of any
research is to define the relevant problems or objective for which the researcher wants to
do research.
Develop the research plan: - To makes the plan for overall research as how, when,
where and from whom researcher will collect the data.
[24]
Collect the information: - The information can be collected by primary data or
secondary data, or by the combination of both methods.
METHODS OF DATA COLLECTION:-
PRIMARY DATA
Market Survey
Personal Interview
SECONDARY DATA
Magzines
Internet
Business Journal
Analyze the information: - After collecting the data the next step is to analyze the
information.
Present the findings: - To make a summary on the basis of analyzing the collect data
and find out the situation .
Make the decision: - The last step is to take a decision on the basis of finding that what
action should be regarding the findings.
[25]
INSTRUMENT TO BE USED:
INTERNET
MAGAZINES
JOURNALS
NEWS PAPERS
[26]
LIMITATIONS
Though HLL seems to be ruling the roost in various segments of household goods
industry, findings suggest that its marketing strategies are not without loopholes. Let us
have a look at these loopholes or limitations in brief.
One very striking limitations is the fact that even though these products with all-
pervasive marketing and distribution channels, flourishing increasingly in different
parts of the world there appears to be a visible lack of channels providing them
substantial access to semi-urban and rural areas. In other words, the products of HLL
have a weaker grassroots bases.
The availability of these products to common people does not only depend on
marketing network, but also on the advertising strategies adopted by HLL. On this
count culinary products
Don’t seem to offer much to create any stir and betray manifest upward trends in
terms of widening consumer base.
The pricing strategy adopted by HLL shows considerable fluctuation which has led
the consumer base to remain almost stagnant in many segments. Usually, the prices
of these products are too high to make these affordable to the common masses and
particularly those belonging to low income groups. This phenomenon seems to be
most evident in culinary goods segment, which constitutes the backbone of HLL’s
industrial base.
Agricultural pursuits have not yet attained the status of industrial activities to a
considerable degree. So, the supply mechanism adopted by HLL for the raw
materials tends more often to suffer from a kind of unpredictability syndrome in
[27]
terms of communication and planning. On certain occasions, the readily available
agricultural input is too low to cater to the needs of manufacturers because
‘cultivation for industrial.
Production’ or ‘industry-oriented farming’ is not popular concepts even today in
many countries of the world including India.
Though, the facilities of transportation and logistics for the supply of raw material
don’t lack substantiality as much in case of HLL as most other players in the
industry even HLL is not totally luinune to the problems posed by it. On many
occasions, transportation costs are too high, which affect the overall pricing strategy
adopted by HLL.
HLL manufactures a large range of products along with those we call culinary
products. This diversification in products. But culinary products are usually
bracketed with other (major) products in case of these companies. So, no serious or
special attention is paid to devising separate or exclusive strategies for these
products. It makes their brand name rather than considerations of their qualitative
excellence.
[28]
DESCRIPTIVE WORK OF SUBTOPIC ON STUDY
ADVERTISING
'Advertising' is not easily defined, though many people have tried. Narrowly, it means
clearly identifiable, paidfor communications in the media, which aim to persuade,
inform or sell. But theword is also used to cover a much broader range of activities from
design to public relations by what are often the same organisations, using similar skills.
The main players
Advertising is not a single industry, but spreads untidily across at least three separate
kinds of employer organisation those who are
use it (the advertisers);
make it (the advertising agencies); and
display it (the media).
A number of other, more specialised organisations eg market research companies are
also involved.
Different sorts of advertising
Using its narrower definition, advertising takes two main forms
'display', and 'classified'.
[29]
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.
Direct response advertising (also called 'direct marketing', ie using the ad in place of a
retail outlet) cuts across these divisions. It variously employs direct mail, sendaway
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 eg 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[30]
Finally, we also categorise 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, behaviour, 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 simply to get the public to reappraise its opinion of a particular
company or organisation, or just to provide information.
Moreover noncommercial advertisers government departments, charities, political
parties and trade unions will have entirely different objectives from, say, a catfood or
computer manufacturer. Advertising objectives do not lend themselves to generalisation.
The best generalway 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 [31]
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 usally 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.
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.
[32]
Nowadays virtually every organisation 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 specialised forms of market research, and econometric modelling.
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 recognised to have several practical benefits for
society at large.
More media
[33]
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 criticised, 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[34]
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.
However as a final thought, most people who work in advertising come to acquire a
healthy respect for the public's good judgement.
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 recognised jumpingoff 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.
[35]
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 is 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 because handson 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'[36]
Sales Promotion
Management
Administration
ADVERTISING PROCESS:
The Frozen Products Division of HLL follows the advertIsing procedures laid
down by the company. The advertising agency also adheres to the company
norms. A clear sequence of activities is followed. This has been outlined
below:
1. Usage and Attitude Study – Before a new product or advertising idea is
involved, a complete quantitative research study is carried out in order
to fully understand the needs, wants, preferences, purchases and
consumption habits of the target segment. The results of the study
typically point out any opportunities that can be exploited in terms of
unsatisfied consumer needs. On the basis of the above results, a new
product or advertising concept is evolved.
2. Concept Testing –Once the new concept has been thought of, it goes
into qualitative research. This qualitative research primarily focuses on
testing the acceptance of the concept by the target segment as well as
the evolving of an appropriate positioning plank. The positioning could
be attribute, cost or benefit based. Based on consumer feedback, an
appropriate positioning platform is determined.
3. Agency Brief –Once the concept testing is successfully complete, the
Brand Manager prepares a brand positioning statement. This is a
[37]
description of the brand and includes the product description, likely
brand name, category, name, variants (if any) and key brand benefits
(sensory, functional and emotional). An agency brief is then prepared
for the Agency, which includes the BPS as well as answers to the
following questions:
Why do we want new advertising?
Whom are we talking to?
What is the benefit to be perceived by the consumer?
4. Animating Testing: The storyboard is developed by the agency. After
this has been approved by the client, the anima tics go into testing.
These are advertisements made from frame-by-frame shots of the
storyboard with appropriate music/dialogue/voice over. This is more
economical when compared to shooting the actual advertisement. The
anima tics are shown to the sample audience for feedback and frame-
by-frame analysis. The name, product design, ambience, music and
overall purchase intention after viewing the advertisement are
measured. Brand personification may be included. If the results are
positive, the advertising concept is frozen.
5. Media Brief – This is given to the media planner and is similar to the
agency brief. However, it includes media vehicles desired required awareness,
frequency (number of exposures) and reach (% target segment who should
view it).
[38]
6. Post Launch Dipstick –After the advertisement is released, a post-launch
study may be conducted in order to gauge advertising effectiveness. This is
typically conducted among users as well as non-users. It measures advertising
recall, awareness of the advertisement and the brand, intention to try after
viewing the advertisement overall purchase intention, etc.
In my experience companies advertise because it has been the traditional thing to do.
Certainly it has delivered the most compelling results, but maybe it's because that has
been the primary medium of communication of advertising agencies. I truly believe that
companies would be well served by looking at all of the media communications
available to them and then make the decisions that will give the best ROI for the long
and short term. Question everything! Is the media able to reach your specific target
audience and get a transfer of trust that moves them to become your customers? Over the
years I have used "Balloon grams" through traditional advertising and everything in
between to reach consumers of client's products. In conclusion you must look at the long
term growth but at the same time get traffic to the store this week, so it is a balance of
effective communications across a variety of media that will enable you to do just that.
The big key is Integrated Marketing Communications and a consistent message
delivered across all media.
There are several possible objectives for advertising, and different companies have
different reasons for advertising the way they do.
When you have an awareness problem, advertising is a way to increase
awareness.
[39]
When you have an alternate use that people may not know about, advertising is a
way to tell them about it.
When you have a product improvement, advertising is a way to get trier-rejectors
to think again about their decision. And, of course, advertising is a classic way to
create, explain, and reinforce a brand's positioning.
The objectives are all different, and the metrics you'll use need to recognize your
particular objectives. Some companies see advertising as a long-term investment. They
expect advertising to sustain a brand over a long period of time.
They'll want to track consumer attitudes, brand image, and (perhaps) unaided
awareness.
Other companies want to create quick awareness of a new brand or a product change.
They'll want to track advertising awareness and brand awareness (aided and unaided).
Still other companies haven't even thought about their objectives. They just like to see
their name all over the place. They don't need to spend any money measuring
effectiveness. They're advertising to the board room anyway, not the consuming public.
Net, like so many other things, it depends. There's no one-answer fits all.
Magazines and newspapers are an important part of our lives. For many consumers,
newspapers are their primary source of product information. They would not think of
going shopping without checking to see who is having a sale or clipping coupons from
the weekly food section or Sunday inserts. Many people read a number of different
magazines each week or month to become better informed or simply entertained.
Individuals employed in various occupations rely on business magazines to keep them
[40]
current about trends and developments in their industries as well as in business in
general.
While most of us are very involved with the print media, it is important to keep in mind
that few newspapers or magazines could survive without the support of advertising
revenue. Consumer magazines generate an average of 47 percent of their revenues from
advertising; business publications receive nearly 73 percent. Newspapers generate 70
percent of their total revenue from advertising. In many cities, the number of daily
newspapers has declined because they could not attract enough advertising revenue to
support their operations.The print media must be able to attract large numbers of readers
or a very specialized audience to be of interest to advertisers.The role of magazines and
newspapers in the advertiser's media plan differs from that of the broadcast media
because they allow the presentation of detailed information that can be processed at the
reader's own pace. The print media are not intrusive like radio and TV, and
they generally require some effort on the part of the reader for the advertising message
to have an impact. For this reason, newspapers and magazines are often referred to as
high-involvement media’s Over 80 percent of U.S. households subscribe to or purchase
magazines, while the average household buys six different magazines each year.
Newspapers are received in nearly two-thirds of American households daily. Most
magazines, however, reach a very selective audience. Like radio, they can be valuable in
reaching specific types of consumers and market segments. While both magazines and
newspapers are print media, the advantages and disadvantages of the two are quite
different, as are the types of advertising each attracts. This chapter focuses on these two
major forms of print media. It examines the specific advantages and limitations of each,
along with factors that are important in determining when and how to use newspapers
and magazines in the media plan.
[41]
Magazines are the most specialized of all advertising media. While some magazines-
such as Reader's Digest, Time, and TV Guide-are general mass-appeal publications,
most are targeted to a very specific audience. There is a magazine designed to appeal to
nearly every type of consumer in terms of demographics, lifestyle, activities, interests, or
fascination. Numerous magazines are targeted toward specific businesses and industries
as well as toward individuals engaged in various professions (Exhibit 12-1).
Over the past several decades, magazines have grown rapidly to serve
the wide variety makes magazines an appealing medium to a vast number of advertisers.
Although TV accounts for the largest dollar amount of advertising expenditures among
national advertisers, more companies advertise in magazines than in any other medium.
Users of magazines range from large consumer products companies such as Procter &
Gamble and General Motors, which spend over $400 million a year on magazine
advertising, to a small company advertising scuba equipment in Skin Diver magazine.
Magazines and newspapers have been advertising media for more than two centuries; for
many years, they were the only major media available to advertisers. With the growth of
the broadcast media, particularly television, reading habits declined.More consumers
turned to TV viewing not only as their primary source of entertainment but also for news
and information. But despite the competition from the broadcast media, newspapers and
magazines have remained important media vehicles to both consumers and advertisers.
Thousands of magazines are published in the United States and throughout the world.
They appeal to nearly every specific consumer interest and lifestyle, as well as to
thousands of businesses and occupations. By becoming a highly specialized medium that
reaches specific target audiences, the magazine industry has prospered. Newspapers are
still the primary advertising medium in terms of both ad revenue and number of [42]
advertisers. Newspapers are particularly important as a local advertising medium for
hundreds of thousands of retail businesses and are often used by large national
advertisers as well.
Companies advertise to get new customers, keep existing ones, and to confirm to recent
customers they did the right thing.
They advertise to tell shareholders they are doing something active to keep the company
growing.
Competitive advantage
Advertising during a sluggish economy clearly creates a competitive advantage,
according to the study, with a majority of executives agreeing that seeing a company
advertise during slower times makes them feel more positive about the company’s
commitment to its products and services. But perhaps most important is staying at the
top of buyers’ minds when purchase decisions are made.
“For advertisers interested in maximum profit from their investment in b-to-b media,
these research results indicate that advertising frequently and capitalizing on the
synergistic effect of print, Web sites and trade shows is a sure path to increasing
awareness, interest and purchase,” said the study authors.
Add to that the fact that there have been dramatic increases in the time executives spend
visiting b-to-b Web sites over the past three years and online advertising is a winning
strategy. Moreover, the study findings are consistent across industry sectors, making
results relevant regardless of business category.
Long-term investing
[43]
“Advertising in a down economy is even more important than advertising during the
good times,” says Joyce Gioia, president of the Herman Group, a firm of strategic
business futurists in Greensboro, N.C. “That’s when you can build market share. That’s
when you have less competition for share of mind. While others are in a cocoon,
hibernating until things blow over, it’s a great time to invest in your business.”
Gioia says sign industry suppliers need to establish themselves as the brand of choice
and halting advertising during tough times is counteractive to that goal.
The bottom line is clear: If a company is not communicating with customers when they
enter the market, then that company will not be considered in the buying decision. That
fundamental truth does not change, regardless of the economy.
While many companies readily understand the value of short-term advertising
generating new sales, generating repeat business from existing customers and generating
new leads that turn into future sales it can be more difficult to comprehend the long-
term value. Think of a snowball rolling down a mountain consistent advertising has a
cumulative effect. The more familiar buyers are with your brand, the more likely they
are to purchase the brand.
Cross media approach
A cross media approach is the best approach, according to experts, because it allows
your company to stay in front of customers consistently.
The Yankelovich/Harris study shows executives value magazines, Web sites and trade
.B-to-b magazines are favorably evaluated with respect to being “highly credible
sources” and “providing information you can trust.” B-to-b Web sites rate high for being
[44]
“primary sources of research” and providing “access to the latest information.” And b-
to-b trade shows are highly regarded for enabling “interaction with industry peers.”
“To stay on top of developments in your field, it’s important to seek information from
multiple media sources, like business-to-business magazines, Web sites and trade
shows,” said the study authors.
Double Click, leading provider of marketing tools for advertisers, direct marketers and
Web publishers, recently conducted a cross media study that compared the relative
audience reach of Internet sites, network TV programs and consumer magazines.
"Earlier this year we talked to over 200 marketers who told us their top reason for not
spending more online was that their customer was not online," says Susan Sachatello,
chief marketing officer, Double Click. "In comparing these mediums side-by-side using
industry standard metrics, this study demonstrates that both in aggregate and in key
target groups, the Internet is in fact a mainstream mass-market medium and that
marketers should be going online to reach their customers." So what works best on the
Web? Experts say banner ads are the most effective tool because they build the brand
and generate leads. And since online advertising is less expensive than traditional print
media, TV and direct mail, the online channel makes more sense in a down economy.
Rich media rules
Double Click’s Ad Serving Trend Report gives deeper insights about what works on the
Web. Double Click’s ad serving data reveals a major variance in the click-through rates
of rich media ads (2.4 percent), which is six times higher than non-rich media ads (0.4
percent).
[45]
Rich media uses a combination of voice, interactive video, streaming video and data
sharing. The ads, then, are more interactive than static banners.
Double-Clicks also found that Flash increased branding metrics by 71 percent for three
different-sized ads measured, demonstrating the branding power of richer media.
"While click-through rate is only one method of assessing online advertising
effectiveness, its stability over the past several months reflects the mainstream adoption
of online advertising at levels consistent with traditional direct response rates," says
Doug Knopper, vice president and general manager of advertiser solutions at Double-
Clicks. "We are very encouraged by the growth of rich media usage and the significantly
higher click-through rates that these formats have been generating, which together
reflect the increasing sophistication and performance of the online advertising medium."
When is the best time to advertise?
Ninety-nine percent of those surveyed said it is important to keep abreast of new
products and services during tough times and 97 percent said it is important to continue
to invest in these products and services to remain competitive in the future.
The study stresses that executives are not going to let their guards down even during
slower economic times they must stay current on what is new in the industry and must
position their organizations for the future. Advertisers, then, must not let their guards
down, either, say experts.
[46]
PROFILE OF HLL:-
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 Lever 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. HLL has been growing very rapidly, especially in 1996 the
growth was 88.6% HLL 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.
[47]
11764.31 crore.1 its rapid growth has given HLL 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 HLL is an undisputed leader in FMCG
products in urban as well as rural area. HLL caters to 850 million people in
India which becomes 85% approx. of the total population. Hence the study of
HLL can give us a wide knowledge in the fields like successful
implementations of marketing strategy in 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.
[48]
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.
[49]
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
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.
If James Gamble and William
Procter hadn't married the Norris
sisters, P&G might not exist.
In the 1970s, P&G was one of
the first companies to put its
safety testing data in a computer
database, helping to avoid
duplicative testing.
[50]
Products OF HLL:
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.
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.
[51]
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 Lever 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
[52]
lightening to develop Fair & Lovely. The formulation is patented. Its formulation acts
safely and gently 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 Niacinamide
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. Niacinamide (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.
[53]
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 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 Lever 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.
[54]
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
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
[55]
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.
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
[56]
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.
[57]
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".
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.
[58]
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
Features a clean, refreshing fragrance
Leaves hair shiny and manageable
[59]
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
Tide Powder
Tide Powder detergents get to the bottom of dirt and stains to help
keep your whites white and your colors bright.
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.
[60]
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
Tide Coldwater
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
[61]
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
Ocean Mist Powder
[62]
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
[63]
Tide HE
Get the most out of your high-efficiency washer. Tide HE is
specially formulated to unlock the cleaning potential of high-
efficiency 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 Tide 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.
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
[64]
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,
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
every stage.
[65]
HLL: 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
[66]
what you are doing. Ignorance, on the other hand, can lead to mistrust, or even
contempt in some situations. 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.
[67]
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.
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
[68]
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
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
[69]
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 Coca-
Cola, 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".
[70]
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[71]
: 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:-
“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.
[72]
“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.
THE SIGNIFICANCE OF PR IN HLL
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
[73]
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
[74]
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.
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
[75]
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.
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
[76]
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,
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.
[77]
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.
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
[78]
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 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.
[79]
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.
[80]
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.
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.
P&G Pharmaceuticals sources all of its new drug development and commercialization
[81]
initiatives via a network of academic, biotech and pharmaceutical company
collaborations.
Data analysis & Interpretation
Year wise net sales of FMCG Companies by advertising:
[82]
Graphical Representation:
YEAR
0
2000
4000
6000
8000
10000
12000
2001-02 2002-03 2003-04 2004-05 2005-06
RS IN Cr
[83]
YEAR Sales in Cr
2002-03 10667
2003-04 9954
2004-05 10139
2005-06 8828
2006-07 11060
YEAR Sales in Cr
2002-03 10667
2003-04 9954
2004-05 10139
2005-06 8828
2006-07 11060
In 2001 the sales of FMCG was Rs 10,667 Cr and it was Rs
10,139 Cr in 2003 where as it was Rs 11,060 Cr in 2006-07 reason being in 2006-07 the expenditure on advertisement and promotion activities was more than Rs 1000 Cr.
Year wise expenditure on advertisement :
Graphical Representation:
YEAR
0
200
400
600
800
1000
1200
2001-02 2002-03 2003-04 2004-05 2005-06
Rs IN Cr
[84]
Expenditure in Rs (Cr)
2001-02 824
2002-03 842
2003-04 760
2004-05 836
2005-06 1008
YEAR
0
500
1000
1500
2000
2500
3000
2001-02 2002-03 2003-04 2004-05 2005-06
Profit in Cr
The expenditure by FMCG on advertisement has been increased from year 2004-05 to year 2005-06.
Year wise Net profit of FMCG:
[85]
Graphical Representation
Year wise Total Revenue of FMCG:
Activities have shown direct impact on Net profit of FMCG.
Graphical Representation:
YEAR
9400
9600
9800
10000
10200
10400
10600
10800
11000
11200
11400
2001-02 2002-03 2003-04 2004-05 2005-06
Revenue in Cr
Continues expenditure on advertisement has increased the revenue thereby profit. As the graph shows continues increase in revenue.
[86]
YEAR Profit in Rs (Cr)
2001-02 1641
2002-03 1755
2003-04 1771
2004-05 2197
2005-06 2400
YEAR Profit in Rs (Cr)
2001-02 1641
2002-03 1755
2003-04 1771
2004-05 2197
2005-06 2400
YEAR Total Revenue in Rs (Cr)
2001-02 10721
2002-03 10038
2003-04 10245
2004-05 10135
2005-06 11193
Respective share of revenue of various segment of FMCG in 2001
Products Revenue (%) in 2001
Shop & Detergent 35Beverage 15Foods 10Others 15Exports 25
Graphical Representation:
Share in revenue (%)
Shop & Detergent
Beverage
Foods
Others
Exports
In 2001 the highest share in total revenue was by shop and detergent section of HLL followed by export and beverage.
[87]
Respective share of revenue of various segment of FMCG in 2002
Products Revenue (%) in 2002
Shop & Detergent 37Beverage 12Foods 08Others 16Exports 27
Graphical Representation:
Share in revenue (%)
Shop & Detergent
Beverage
Foods
Others
Exports
In 2002 the highest share in total revenue was again by shop and detergent section of FMCG followed by export and beverage.
[88]
Respective share of revenue of various segment of FMCG in 2003
Products Revenue (%) in 2003
Shop & Detergent 37Beverage 11Foods 06Others 18Exports 28
Graphical Representation:
Share in revenue (%)
Shop & Detergent
Beverage
Foods
Others
Exports
In 2003 the highest share in total revenue was by shop and detergent section of HLL followed by export and beverage. Minimum share was from food Section.Respective share of revenue of various segment of HLL in 2004.
Products Revenue (%) in 2004
Shop & Detergent 37Beverage 10Foods 03Others 18Exports 32
[89]
Graphical Representation:
Share in revenue (%)
Shop & Detergent
Beverage
Foods
Others
Exports
In 2004 the highest share in total revenue was by shop and detergent section of HLL followed by export and beverage. Minimum share was from food Section.
[90]
Respective share of revenue of various segment of FMCG in 2005
Products Revenue (%) in 2005
Shop & Detergent32
Beverage10
Foods07
Others16
Exports34
Graphical Representation:
Share in revenue (%)
Shop & Detergent
Beverage
Foods
Others
Exports
In 2005 the highest share in total revenue was by Export section of HLL followed by Retailers & Advertising manager.
[91]
VISION 2007
The firm must recognize that it cannot make this journey alone. Companies that
want to be industry leaders realize they must reinvent the total network in which they are
merely one player. To achieve such leadership, a firm must cooperative in creating the
value chain constellation that will dominate an industry. This network consists of a
linked set of agile companies that not only react to market challenges but in fact
dynamically anticipate and exploit new opportunities that can sustain profitable revenue
growth and exceptional shareholder value well into the next decade.
Considering the importance of targeting markets and consumers, a company must
also choose its value chain partners very carefully because they are the key to future
profits and competitive advantage. In short, alliances must be built with organizations
that are qualified to assist in the process..
With the road map laid out and the destination defined, value chain partners can
pursue a jointly determined set of process improvement initiatives based on what works
for other networks or on new and innovative designs created by the members of the
value chain constellation.
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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.
81% believe the internet is a vital component of their company’s advertising
strategy.
88% 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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CONCLUSIONS
A look at the contemporary profit of the global industrial segment of household
goods brings it into clear focus that the situation prevailing in major markets is very
much in flavor of HLL. The fact that should be acknowledged on the basis of current
trends betrayed by this segment tells us that HLL veritably stand out as on indisputable
market leader in this field and is sure to surge way ahead of other players in future. The
competitive strength, strategic acumen and ability to reach out for a considerably larger
consumer base that the company has been able to attain through the years since its
inception also point to this fact categorically.
An extremely pertinent views that emerges out of it amply suggests that it is the
dominance of HLL operating under the banner of Unileaver in most of the countries that
contribute in a large measure to the creation of a market situation in which consumers
are nearly forced to purchase their ‘choice’ at prices that might not be in congruence
with their speculations and calculative consideration of affordability – something that
largely determines the phenomenon called consumer behaviors. It is absolutely
doubtless to assume are incomparable in term of their qualitative excellence.
It is a bit surprising to observe that HLL is the market leader even though it’s
capable of manufacturing and marketing a vast range of products with an international
consumer base. Moreover, the tie-up of Prima India with HLL reflects that the latter is
not unwilling to share its technological expertise and infrastructural contrivances with
others. So, in spite of the near monopoly situation caused by HLL’s presence in the
global market, it points to a healthy flexibility in the company’s fundamental approach.
Another very striking aspect of HLL’s global marketing strategy and operations, as
it has been pointed out and dwelt upon in the present study, is its enormous ability to
capitalize on the resources available to it.
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SUGGESTIONS
Based on findings and conclusions the following suggestions have been recommended.
DETERGENTS (SURF EXCEL)
1. USE SACHETS MORE FREQUENTLY
Since the rural income has been increasing and consumers are becoming
quality consumers of middle and lower segments so that they at least try the
product.
TOOTH PASTE (CLOSE-UP)
1. FOCUS ON MALES: During a recent survey of ORG-MARG it was found that
young girls were more loyal to Close-up than males and house wives target youths but
housewives and much earners in the family.
2. AGGRESSIVE MARKETING IN NORTH AND EASTERN REGIONS:-
These are the regions where Close-up is way behind Colgate. Hence to improve its performance these markets should be attached aggressively.
SHAMPOO (CLINIC PLUS)
SHOULD GIVE ATTENTION TO HIGH INCOME GROUP CONSUMER
This is one place where Clinic-Plus is not being used extensively. So these consumers should be attacked. Higher income group consumers have purchasing power hence it can boost HLL’s sales much higher.
ATTENTION TO NORTH & WEST MARKETS
The brand performance is nearly half of that in South and East. Hence there is immense development potential is North and West.
FOCUS ON GIRLS:-
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Boys seem to be using Clinic Plus more than the girls. It’s very
surprising. It’s the girls who use Shampoo more frequently than boys
hence there is development potential.
ICE- CREAM
VENDING –Kwality Walls can expand its reach to the consumers by setting up counters at departmental stores (like Nilgiris), shopping malls etc. where the product is not available as of date. The objective behind making the product available in these places would be to cash in on the impulse purchase. The ice cream counters should be installed at the entry/exit points and suitably loaded with the appropriate point of purchase material to induce purchase. This could also offer convenience to the consumer which at present soft drinks are doing.
Advertising in Theatres –This can help induce an impulse purchase since ice cream is usually associated with outings and movies. The theatre food stalls have ice cream counters and hence not only POP material but also on-screen commercials are necessary.
Sampling is Low –One of the reasons why the purchase of novel brands like Cornetto takes time to pick up, is the low rate of sampling. The recommendation to generate new product trial is to create media hype along with offering promotions to induce trail purchase of the new product. Since, this is a fairly new product, to induce trials ‘Reach’ is more important than ‘Frequency’. The promotions should be designed in a way so as not to discount the premium image of the brand. Thus they could be in the form of discount coupons offered along with another premium brand of Kwality Walls family of ice cream.
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Questionnaire
Name: ………………………………………………………
Age (years): ……………
Sex: Male/Female
Respondent: Advertising Manager/ Retailers
1) Do you like advertisements? Yes/No
2) Can you buy a product which is not much advertised? Yes/No
3) How advertising benefits you as a customer?
(Rank them)
Create awareness
Educate about new product & its uses.
Supports your purchase decision
Illustrates Company’s brand image
Conforms product quality
2) Do different media play role in changing customer’s perception regarding the
product?
Very much/ to such extent/ Not at all/ can’t say.
3) In your opinion which is the best media to communicate advertisement?
Outdoor (posters/bill boards/vehicle)
TV
Film
Radio
Direct mail
Window display in shops
Specialty(dairies/calendars)
4) Do you think celebrity advertisement is working or useful?
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Very much/ To such extent/ Not at all/ Can’t say.
5) Do you think advertising is a social waste? Yes/No
6) What is the disadvantage of advertising in your life?
(Rank them)
It multiplies your need
Amount spend on advertising increases your product
It create brand monopoly
Most of them undermines ethical or esthetic values
Corrupts the mind of youngsters.
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BIBLIOGRAPHY
BOOKS
Briggs,R. (1998). "The Big Payoff". Advertising Age, Spring 1998,
Rae,N. & Brennan, M. (1997). "The relative effectiveness of sound and animation in web banner advertisments". 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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