360 CLIENT SERVICING OF AN ADVERTISEMENT AGENCY

submitted in partial fulfilment of the requirements

for the award of degree in

MASTER OF BUSINESS ADMINISTRATION

By

(SAHAYA ARUN JOSE.A)

(REG. NO.2741498)

DEPARTMENT OF MANAGEMENT STUDIES

SATHYABAMA UNIVERSITY(Established under Section 3 of UGC Act 1956)

JEPPIAAR NAGAR, RAJIV GANDHI ROAD

CHENNAI 600119

MARCH 2009

DECLARATION

I SAHAYA ARUN JOSE.A hereby declare that the Project Report entitled 360 Client Servicing of an Advertisement Agency is done by me under the guidance of Ms. Joys (Internal) and Mr.Thomas Prakash (External) at Corporate Media men advertising Pvt. Ltd, Chennai. is submitted in partial fulfilment of the requirements for the award of the degree in MASTER OF BUSINESS ADMINISTRATION.

DATE:PLACE: Chennai

SIGNATURE OF THE CANDIDATE

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of Mr.SAHAYA ARUN JOSE.A Reg. No: 2741498 who carried out the project entitled 360 Client Service under our supervision from December 2007 to March 2008.

Internal Guide

External Guide

(Ms.JOYS)(Mr.THOMAS PRAKASH)

Head of the Department

(Ms.VAISHALI MAHAJAN)

Submitted for Viva Voce Examination held on_________________

Internal ExaminerExternal Examiner

(Name in Capital letters(Name in Capital letters

with Signature)

with signature)

ACKNOWLEDGEMENT

I express my gratitude to our Chancellor Thiru.Dr JEPPIAAR, M.A.B.L.,Ph.D for providing such an opportunity and also their cooperation, encourage all through this programme.I express my gratitude to our Directors Thiru.Marie Johnson, B.E., M.B.A., Tmt. Mariazeena Johnson, B.E., M.B.A. and Vice Chancellor Dr.V.S.R.K. Mouly, Ph.D.for having given us spontaneous and whole hearted encouragement for completing this project.I am indebted to Ms.Vaishali Mahagan Head of the Department, Department of Management Studies, Sathyabama University, Chennai, for her support during the entire course of this project work.

I wish to express my sincere thanks to Mr.Thomas Prakash, Branch Manager, Corporate Media Men Advertising Pvt. Ltd, Chennai, for his constant encouragement and support at all stages of project work.

I express my gratitude and sincere thanks to my project coordinator and guide Ms.Joys, Asst. Professor, Department of Management Studies, Sathyabama University, Chennai, for his valuable Suggestions and constant encouragement for successful completion of this project.

Finally, I wish to thank all the faculty members of the department of management studies and members of Corporate Media Men Advertising Pvt. Ltd, Chennai, for their continuous help to complete this project successfully on time.

TABLE OF CONTENTS

CHAPTER NO.TITLEPAGE NO.

1Introduction1

2Scope for the study2

3Objectives3

4Review of Literature4-11

5Industry Profile12-32

6Company Profile33-40

7Request for Marketing proposal to Agency41-46

8submission of Marketing proposal to Clients47-52

9360 Market Analysis53-116

10Limitations of the Study117

11Conclusion118

Addendum

Bibliography

LIST OF REPORTS

SL.NO.TITLEPAGE NO.

1Indian Automobiles customer satisfaction study53-65

2Home appliances dipstick study66-90

3Joy Alukkas customer dipstick study 91-94

4Idea cellular services pre -launching test95-97

5Sabols retailers dipstick study98-102

6Reynolds retailers Dipstick study103-105

7Meera coconut oil retailers dipstick study106-110

8Market visit report-Adyar111

9Market visit report-Anna nagar 112

10Market visit report-Purasaivakkam113

11Market visit report-T.nagar114

12Market visit report with reference to sony115-116

ADDENDUM

Questionnaires

Sl.NoTitle of the studySample sizeType of the studyClient/ Brand

1Customer satisfaction study70Consumer ResearchIndian Automobiles [Hero Honda Authorized dealer]

2Home Appliances Dipstick study [Chennai, Madurai & Trinelveli]300Consumer researchAll Home Appliances Manufacturers

3Market position analyzing Study100Consumer researchJoy Alukkas

4Pre testing survey100Consumer researchIdea cellular services

5Retailers Dipstick study50Retailers researchMeera coconut oil

INTRODUCTION

Any paid form of non-personal presentation and promotion of ideas, goods or services through mass media such as newspapers, magazines, television or radio by an identified sponsor.

-Kotler, Armstrong, Saunders and Wong

Advertising is the activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media. Advertising has not only come to reflect pop culture but has also become an important element of economic growth. Today, every person connected with the Indian economy or public should be fully aware what advertising really is and why effective advertising campaigns can be performed by full-service advertising agencies.

Advertising is a process of communication to target audience. Target audience comprises of human beings and human behaviour. Preparation of ads demands a lot of research on the psyche of the target group and their behaviour. This helps the agency in preparing advertisements that the consumers can relate to and therefore become successful.

SCOPE OF THE STUDY

1) To withdraw a complete knowledge regarding Ad Agencies.

2) To have a clear cut picture on variety of services offered by the Ad Agencies.

3) To improvise the services and the relationship of the Ad Agency with their existing and new clients.

4) To broaden the creativity of the Ad Agencies.

5) It paves way for further researches.

6) To increase the interests in this field.

OBJECTIVES OF THE STUDY

KEY OBJECTIVES:1) To analyse the involvement of the Ad agency in promoting the brand for the clients.

2) To find out how far the Ad agency is successful in their 360 Client Service.

3) To analyse the liaison between the Ad Agency and Clients.

SUPPORTIVE OBJECTIVES:1) To understand the various researches made by the Ad Agency for their Clients.

2) To measure the success of the researches for New Business Development.

3) To sketch out the marketing proposal dealings from the new clients.

4) To know the various services offered by the Ad Agency for their clients.

REVIEW- ITHE CREATIVE BRIEFThe Creative Brief is a planning tool widely used by advertising agencies and marketing personnel when designing or implementing a marketing program. It can be used when creating communications directed at clients, employees, shareholders, potential investors, the media, or any other target group. Many organizations and agencies have a very refined, occasionally bizarre, possibly even copyrighted Creative Brief tool that is specific to how they do business.

IMPORTANT ELEMENTS OF CREATIVE BRIEF:Objective: What is to be accomplished by this program? Is the goal to create awareness, knowledge, preference, or purchase? One traditional tool used for this purpose is the definition of SMART objectives: Specific, Measurable, Agreed Upon, Realistic, and Time-based.Primary audience:

Who is this campaign meant to reach? The more specific and detailed the better. When possible, list details like title(s) of audience members, industry, size of company, revenue, number of employees, geographic details, affiliations, key behavior attributes (i.e., do they make the buying decision or influence it?). Demographics and psychographics go here.

Attitudes/Beliefs/Objections of audience:

Another way to state this element is, Why hasnt the audience already done/thought what you want them to? If you were hired to argue against the purpose of this campaign, what would your points be? What is the status quo?Current/Proposed behaviour:

What is the audience doing now? How are they thinking/dealing with the situation about which you are addressing them? What do you want them to do differently?

Call-to-action:

What do you want the audience to do/think? Again, the more specific the better. One of the Ten Commandments of good advertising is: tell the audience what you want them to do. If you dont know, dont advertise until you do. Examples of good calls-to-action include: Call today, Visit our website for more information, Complete and return this form.

Tone:

Should this be a friendly, relaxed message, or a hard-sell with a sense of urgency? Should the audience feel like a confidant, pal, victim (in need of rescuing), partner, controller, etc? Should the ad convey a rich, textured impression or something more Spartan and utilitarian?

Key message:

What is the one thought that the audience should be left with? The initial level of regard given to most print advertisements has been measured at between one and two seconds. If you absolutely had to, how would you state your message in seven words or less?

Secondary message(s): If they advertisement does draw in a reader, what are the other one or two points that should be conveyed? Another advertising commandment: people never remember more than three things.REVIEW-II

AD AGENCY STRATEGIC PLANNING TOOL[A] The Category

1.What business is the brand in? 2.What is the brand's product category?

3.What stage of its life cycle is the product category in?

4.What is the current size and growth rate in this category?

[a]Volume in units:

[b]Value in Rupees:

[c] Growing per annum @:

5.Indicate seasonally skews giving weightages.

6.Mention any unique environmental factors or constraints that exert a strong influence in this category.

7.Rank the most important benefits/ attributes (in order of importance) that consumers by and large seek from this category.

[a]1st ---------------[b]2nd--------------[c]3rd --------------[d]4th----------------[B] The Competition

8. Compare all the brands in terms of delivering against each benefit/ attribute sought by consumers.

1st brand2nd brand3rdbrand4th brand5thbrand

Mostimportant

2nd most important

3rd most important

4th most important

5th most important

9.What is the unique product attribute or any other unique strength your brand has(if any) against any of the important benefits?

10.State your brand's major weakness vis-a-vis others.

11.List all the claims and positions of all the brands operating in your category. Please differentiate between the two.Claims Brand Claim

Positions Brand Position

12.List all the brands/players in this category and their market shares in volume and value terms.

Brand/ PlayerYear before last MS(%)Last year MS(%)This year MS(%)Expect for next year MS(%)

1Volume

2Volume

3Volume

4Volume

5Volume

13.Calculate total advertising spend in the category.

14.Indicate share of voice.

BrandSOV(%) Year before lastSOV(%) Last yearSOV(%) This year

15.Mention any special or relevant non advertising communication/related activities in this category.

[C] The Consumer:16.How is the market conventionally segmented?

17.Calculate the number of consumers in your segment.

18.How do you wish to segment the market using non-demographic parameters?

19.How many consumers are now there in your segment?

20.Name the competitor from whom you are likely to gain the most.

21.Where are your consumers located?

22.Describe your consumers by age, sex and income and any significant tangible, physiognomic or other specific characteristics.

23.Describe your consumers by attitudes, beliefs, habits and lifestyles.

24.Define who proposes, who recommends, who chooses, who uses and who purchases the product.

25.Define who among these is the most important target for advertising to address and why.

26.Define the consumer's degree of familiarity with your brand.

27.What is the category norm for the average frequency of purchase?

28.Define consumers loyalty towards your brand.

29.On the matrix of high-involvement/low involvement and emotional/rational where is the category?

30.How knowledgeable are consumers about the category?

31.How is the product commonly used?

32.Are there any other or secondary use of the product?

[D] The Communication:33.What need of the consumer is the brand going to satisfy? 34.What is the consumer's currently relevant motivation for purchasing the category and for your brand? Remember itcould be different for both. 35.What appeal should the brand use? 36.Brand positioning

Why?

For whom?

When?

Against whom?

37.Brand identity

Physique:

Personality:

Relationship: Culture:

Reflection:

Self-image:

38.What problem is the communication expected to solve?

39.What is the current required communication effect and its measurability criterion? a) Why do we need this communication? b) Who is this communication aimed at?

c) What are others saying?

d) What are the elements that the person does not like / have objections about this category/ brand?

e) Is the brand able to overcome these objections? Should it be communicated?

f) What is the brand USP?

g) What is the support?

h) What aspect of brand personality should the communication respect?

i) Mandatories: How does the media help to make this idea come alive?

EVOLUTION OF ADVERTISEMENTS IN INDIA

In the beginning, in the 70s and 80s, Doordarshan was the only TV channel in India. Being the only carrier, it had a mix of programmes for both the urban and rural audiences and agencies had to live with the fact. Though Doordarshan promised exceptional reach, in the coming years it fell woefully inadequate to the needs and wants of the advertisers.

THE SECOND WAVE:The advent of Satellite Television saw the advertising industry undergo a sea change in the early 90s. While the satellite channels had limited reach they could target very niche audiences at half the cost. It also opened a whole new world in terms of quality of production, content and tonality - something that advertising professional watched with keen interest.

A decade and a half later, the kind of work that Indian agencies are producing is at par and some even better than their foreign counterparts. Success after success of Indian Agencies at International Awards like Cannes, AdFest and the New York Festivals have made Advertising a sought after profession in India today with a high demand for talented individuals.

ADVERTISING IN INDIA TODAY:Advertising in India today has evolved into a highly evocative and arresting medium of portraying society. It has value-added tremendously to the quality of television programming in the country and has brought with it a new generation of ideas that can only contribute towards the progress of the nation.

ADVERTISING AGENCY:An advertising agency is a firm that specialises in the creation, design and placement of advertisements, and in the planning and execution of promotional campaigns for products and services of their clients. Advertising is required because, it explains complex issues in ways that are interesting, easy to understand and meaningful.THE VARIOUS DEPARTMENTS OF AN AGENCY:[1] Account Management:

Account Management is the face of the agency. These are the people who meet the client on a day to day basis. It is their responsibility to ensure that the work goes out on time and the bills are paid.

[2]Media Planning:It is their job to ensure that the client's money is spent efficiently to get maximum efficiency from a campaign.

Media planning is the process of identifying, analyzing and selecting the media for the brand communication. Good media planning would result into the right message being placed in the right media for the right group of consumers.

'Recency Model' In Media Planning

Recency model works on the logic that the advertising needs to be released when the consumer is closer to purchase decision. The decorative paints advertisements that are seen more before Diwali is an example of recency model in media planning exercise. All big format stores like Big Bazaar and Star India Bazaar give full page ads in local newspapers towards month end as most grocery purchases happen in the first week of the month.

[3]Account Planning:

The planners come up with insights and are the 'futurologists' of the agency. They analyse markets and consumer behaviour and are the ones who write the briefs. Account planning is a strategic tool for consumer insight mining. Account planners act as the voice of the consumer and gradually it has become one of the most important activity that an ad agency does. Planning institutionalizes knowledge within an agency.

Tracking market trends and consumer insights, and understanding the target audiences create a pool of data that is available continuously. For instance, when Ammirati Puris Lintas (1996-97 billings: Rs 451.38 crore) was creating the advertising for the Rs 424-crore Johnson & Johnson's brand, Stayfree, it was its account-planning model.

[4]Creative:

Probably the most important set of people. They are the guys who write the ads and it is their work that the world gets to see.

[5]Digital Studio:

Often called the DTP section, this set of people work on the final artworks that are sent to the various publications for release.

AD AGENCYGetting the best out of advertising is a highly skilled job. It requires the inputs of experts in many different fields like writers, artists, photographers, designers, television, production crews and many others. Even the biggest advertisers cannot afford to employ all these experts. Almost all advertising is therefore arranged through an advertising agency which provides the necessary skill to turn the message into a memorable and effective advertisement. THE FUNCTIONS OF AN ADVERTISING AGENCY:

To accelerate economic growth and create public awareness.

To provide a total, professional, experienced service which is very personal in its nature. To take the advertiser's message and convert it into an effective and memorable communication.

THE PARTS OF AN AGENCY: Advertising agencies need to have a wide expertise in the area of marketing and communications, which is why they employ specialists who can easily understand economic, demographic and psychographic data given to them.

They add significant insights to this from their own experience and data banks.ROLES IN AN ADVERTISING AGENCY:

[1]Data Analyst:

The planner is charged with ensuring that all data relevant to the brands communication decisions be properly analysed. It should be complemented with new research where appropriate, and then brought to bear on judgements of the creative strategy and evaluation of the communication.

[2]Qualitative Focus Group Moderator:

Qualitative Research (and the ubiquitous Focus Group) has taken on an increasingly significant role in everyones lives. It gives the planner a confidence and an authority he/she wouldnt otherwise be entitled to. It means you are both a psychologist and an interpreter.[3]Information Centre:

Knowing where to go to find stuff out is the key. Planners should always make time to feed their heads.

[4]Bad Cop/Good Cop:Planners tend to work in pairs. Very often, it makes sense to adopt the bad cop/good cop routine with some clients and some creative in order to deliver some bad/ challenging /alternative/ unexpected news without ruining the relationship.

[5]Brainstorming Facilitator:More challenging, more exhausting and rewarding than the average group discussion because well (hopefully) be dealing with the Chairman, the Brand Manager and the Creative Director in the same session.

[6]Soothsayer/Futurologist:

This aspect of the planners craft is to have a genuine interest in and capacity to generate knowledge about trends and anticipate social movements that their colleagues can actually use to grow their brands.

[7]Media/Communications Planner:It is increasingly more important for the planner to understand the strategic role and effectiveness of different media, by target and by category, and know when and how it is relevant to use them to achieve the brands objectives.

[8]Strategic Thinker/Strategy Developer:

The planner identifies the key issue and determines the role for communication against a specific target.[9]Writer of the Creative Brief:The brief is widely considered to be the planners main product. Theres considerably more to it than baby talk; clarity, brevity and fertility being the hygiene factors of a good creative brief.

[10]Insight Miner:"At the heart of an effective creative philosophy is the belief that nothing is so powerful as an insight into human nature, what compulsions drive a man, what instincts dominate his action, even though his language so often can camouflage what really motivates him".

These insights about the clients business come from many areas:

the consumer

the client companys culture

the marketplace/category

the competition

the brand (past, present, future) values

the product qualities

the advertising and communication conventions of the category

[11]Market Researcher:Planners need to be able to ignore, challenge or exploit the data from a perspective built on understanding.

The role of market research in developing Brand communication:

All campaigns are backed by market research. Research plays a vital role in determining the ingredients of a campaign in terms of the creative strategy and media mix decisions. Research gives a fair idea of who the target audience is and how he/she behaves as a consumer and what kind of media they consume and what factors influence his/her purchase decision. Research helps in establishing "relevance" in planning and developing a campaign.

Relevance of market research in Advertising:

Market research is very important in advertising as it is important for any other discipline. Research helps in scientific decision-making and therefore is important to all marketing activities. Research helps at three levels. It helps in developing the communication strategy, evaluating the effectiveness of advertising and keeping a constant check on whats new in the market place.

B2B market research & B2C market research:B2B is business to business and B2C is business to consumers. The marketing process, product category and type of consumer is very different in both types and therefore research process also has to be different. The research process, method of data collection would be different as the target base of consumers is not similar.

[12]Social Anthropologist:

Monitoring cultural and social trends is a specialist task. The findings need to be fed in early to brand and creative development. Differentiating between mere fashion and genuine cultural trends is not something for the inexperienced. Many people can tell you what's in and what's out, but planners should be able to tell you why.

[13]Creative:Ad man Tom Monahan once remarked Advertising is the rock-n-roll of the business world. The creative department of an ad agency thinks, acts and even smells like a Rock Band. They are often perceived to be brash, arrogant, erratic and almost every other offensive adjective in the English dictionary. Truth be told, its only because they are visibly obsessed with their work.

Creative Burnout:Working in competitive creative fields, which are fueled by business demands and the fiery desires to do better all the time, carries with it a smoldering threat of failure. One little hiccup and boom! Youre toasted. That is creative burnout.

[14]The Copy Team:

Their job is to simply and interestingly convey the brand with words, an image or maybe even a blank page. Lets suppose the client wants to say that his product smells the best. The copywriter would put it as, It smells like the earth after the first rain or a can of glue or whatever that might tickle his fancy. The headline, baseline and body copy of an ad is their area of expertise.[15]The Art Team:

Popular opinion is that they form the support staff to the copy team. But the fact is that they are both equally indispensable. They give the creative idea a definite form. If copy is about the words, art is the pictures. Simply put, if the copywriter is the singer who carries a song on his voice, the art team is the music; without which the song can often be quite empty.HOW ADVERTISING WORKS:The following chart shows that how an Advertising Agency works.

HOW A CREATIVE DEPARTMENT WORKS:Once the creative guys are handed over the creative brief and the deadline, they spend most of their time bothering about neither. Their disregard for the brief is abundant, yet they do consider it sacrosanct. Keeping the brief in mind, the team then decides the best way in which the client should say what he wants to know about his brand. They provide the product/service with a face, a feeling, an emotion, and bring it to life. Probable creative routes are explored and then discussed with the planning team for feasibility. Following that, the best routes are short-listed. The work is then broken down between the copy and art teams.

ADVERTISING CAMPAIGN:Advertising campaign starts when the client (company) feels the need to advertise and ends when the ad is ready. Client shares the advertising objective with the agency and then agency starts thinking on the objective and develops creative ideas based on consumer research, experience and brand history. After approval of ideas, the campaign is developed further. Media planners start doing up the media plan for the campaign. Finally when pre-testing of the ad is done, release orders are given and the ad is released in the selected media at the scheduled time.

ROLE OF MARKET RESEARCH IN DEVELOPING CAMPAIGN:All campaigns are backed by market research. Research plays a vital role in determining the ingredients of a campaign in terms of the creative strategy and media mix decisions. Research gives a fair idea of who the target audience is and how he/she behaves as a consumer and what kind of media they consume and what factors influence his/her purchase decision. Research helps in establishing "relevance" in planning and developing a campaign. ROLE OF AN AD AGENCY IN EVALUATION OF A CAMPAIGN:Advertising agencies are involved in the planning to the post campaign work for a client. The role of ad agencies in terms of evaluation of a campaign starts when the creative idea is conceived. They evaluate the campaign by pre-testing it with a group of consumers. Once the campaign is released in media, post advertising effectiveness is measured to find out how it has performed in terms of the desired goals.

DOUBLE HELIX MODEL IN ADVERTISING:The double helix model in advertising challenges models like AIDA Awareness, Interest, Desire and Action which show the hierarchy of effects. Due to many factors like clutter, competition, noise, media explosion, the attention and retention of advertising messages may not progress in a hierarchical fashion. The double helix model proposes that advertising gradually connects with the target audience and not necessarily in a hierarchy.

The model proposed is in the shape of a double helix, with parallel strands representing Message and Media arranged like a spiral staircase and a temporal factor, called "Time," running up the middle like a steel pole. In short this model proposes that the ad effects can be measured only if advertisers and brand managers understand that consumers process information from various sources the progression in behavior may not be in a hierarchical fashion.

CORPORATE ADVERTISING:Corporate advertising is advertising efforts of a company directed towards the corporation and not the brand. It aims at building corporate image and not brand image. It talks of company policies, ethics, values, different businesses and brands of a company.ADVERTISING IS PRIMARILY USED AS A TOOL BY COMPANIES TO: Inform people about new products and services

Brand building

To remind customers about their brand at the right time and place

To reinforce customer confidence in purchase

To build Corporate Identity

To help their sales force become more effective

To give their brand and company a personality that makes it unique

GOVERNMENT AND AUTONOMOUS BODIES USE ADVERTISING TO: Inform people about their policies

Promote birth control

Educate the masses on health care

Prevent panic during natural disasters

Dispel harmful rumours

Attract foreign investment

FEATURES THAT MAKES A PROFESSIONAL ADVERTISING AGENCY UNIQUE: With professional talent and loads of communications experience under their belts, agencies are perfectly suited to take over their clients marketing communications problems and help them with specialised services. But like everything it too has its limitations. Effective advertising can contribute immensely to the success of a product. Similarly, if the product is bad or something that the people cannot accept, then no amount of advertising can save it.IMPORTANCE OF INNOVATIONS IN ADVERTISING:Advertising is a creative process. Innovative thoughts result in creative advertising. Innovation can be in ideation process or the creative execution or the media selection process and so on. For e.g. HSBC came up with the innovative idea of launching a website for home loan disorders and caught attention of people through hoardings that talked about disorders due to home loan. It was an innovation in terms of media as well as the creative idea that supported the campaign.

IF THE ADVERTISING NEEDS TO BE SUCCESSFUL, THE PRODUCT NEEDS TO: Solve a purpose

Fulfil a need

Be satisfactory

Have a credible proposition

Myth: An agency always helps to sell a product

Fact: Advertising can never succeed in selling something which the public will not accept.

BRAND:Simply put, a brand is a set of associations:

That is related to a brand or company name

That has a special place in consumers memory

That helps the consumer understand the following:

What the brand or company is

Why it is potentially relevant to them

How it is different or similar to other products made by the firm

How it is similar or different from competitor's products

BRAND CANNIBALIZATION:Brand cannibalization takes place when A product of a company impacts B product from the same company negatively. This happens because the brands belong to the same product category. For e.g. if Balaji Telefilms have two soap operas on Star and Zee in the 9 pm slot and if the viewership is higher on Zee, then one can say that this is a case of brand cannibalization.LOGO & BRAND:A brand is not just a logo. By creating a logo one cannot create a brand. A logo is merely an aspect of a brand. A brand as a whole encompasses the physical attributes of a logo and encompasses the life of the company, its employees and its audience. A Brand is an experience. An experience gained from a company and its services or products. Brands have personality. It has a specific group of people it wants to get to know and befriend, but is open to all. Brands are powerful. It can influence someone to buy into its personality rather than the product. Brands are consistent. They need to talk the same language across all communication.

BRAND BUILDING:Brand building is about product identification and trust. To start building a brand one has to start by defining the target customer group and its needs and expectations and go on to realistically assess how well the brand currently meets them. Efforts need to be taken to fashion an image around the brand that is not only consistent with its core benefits but one that also credibly promises to bring about excitement and satisfaction to the consumer.Step 1: Defining the message.

Why should consumers care? What is different about the product?

e.g. It is about high performance outdoor apparel (Woodland);

It is about strength and durability (Ambuja Cement);

Step 2: Building the image.

How does your difference translate into the image? Both visually and verbally it needs to consistently communicate the companys message and value.

Step 3: Marketing the image.

How aggressively can the word be spread? The advertising campaign needs to establish the image.

Step 4: Living the message.

Is the message real? Can the consumer identify with it? Is the promise being delivered? Does the consumer expectation meet satisfaction on usage or association with the brand?

TOUCH POINTS:Consumer touch points are the possible points wherein a marketer can interact with the consumer. Consumer touch points are decided on the basis of the media exposure that the target audience has in his daily life. For e.g. for a person travelling some 20 days in a month, the in-flight magazine can be a strong touch point.CONSUMERS AND TARGET AUDIENCE:Consumers are people who buy or are interested in buying your product or service. Group of such people is called as the target audience. Usually, consumer and target audience are terms that are used interchangeably. For e.g. college going girls and boys looking for economy in mobile bills are consumers as well the target audience for Virgin Mobile. So the marketing strategy would be framed keeping in mind these boys and girls and advertising would be aimed at the target audience.

'CONSUMER' AND 'CUSTOMER':Consumer' and 'customer' are terms used interchangeably most of the time. However, if one wants to differentiate, consumer is the one who consumes the product and customer is the one who buys the product for further processes. In other words, consumer is the end user and customer is someone who buys the product to re-sell or use it as a raw material i.e. an industrial buyer.

TYPES OF ADVERTISING:[1] ATL (Above the line) Advertising:

Any form of advertising for which a commission or fee is payable to a recognised advertising agency operating on behalf of its client(s). Usually done through long-term above-the-line advertising and appropriate packaging and graphics. These traits inform brand behavior through both prepared communication/packaging, etc., and through the people who represent the brand - its employees. press, television, radio, cinema and outdoors.

[2] BTL (Below the line) Advertising:

Below-the-line advertising employs a variety of methods - direct mail, sponsorship, merchandising, trade shows, exhibitions, sales literature and catalogues, and so on. It is communicating without using mass media like television, print, hoardings etc. BTL uses less conventional channels of communication. In India, brands have mostly played safe with only conventional forms of BTL, like events and road shows, exhibitions, conferences and sampling. However, BTL opportunities extend to many other forms, such as word of mouth, viral marketing, podcasting, consumer generated media, field marketing, contests, as well as innovations within the conventional media."

"BTL provides immediate returns on the money that has been spent on activations. The data that is collated post activations help in closures through telecalling." There is a rising awareness among clients as well as agencies that so called 360-degree or BTL platforms are not just for the placement of the same message, but for taking forward the core brand thought and executing it in synergy with other media, to create an overall brand involvement."

"Below-the-line initiatives are gaining success because of their customer centric communication, low spillover and, above all, the ability to deliver the brand experience as against pure messaging." As far as budgets go, the average ratio of television versus other media, including BTL, is 70:30. This ratio will inch towards the midpoint.

[3]Others

[3.a] Point Of Sale & Point Of Purchase Advertising:

POP or point of purchase advertising is very important. This is the point where in the consumer is nearest to the point of making a purchase decision and therefore, if the brand is present in the retail atmosphere and communicates to the consumer, it influences his/her decision making process. For e.g. in case of a new product launch, huge display banners inside a retail store helps people in noticing this new product and may generate inquiries.

Point of sale advertising is said when one is talking from the retailers' point of view and point of purchase advertising is from the consumers' point of view.[3.b] Viral Advertising:

Viral marketing and viral advertising refer to marketers using pre-established network of people to spread word of mouth. The Word Of Mouth helps in the message reaching to multiple people like a computer virus. For e.g. when people start discussing a movie on orkut and spread the word voluntarily, its a case of viral marketing. Companies now use these networks to spread word about their brand or new product features or information.

[3.c] Surrogate advertising:

Surrogate advertising is done when the original product is not allowed to advertise itself on mass media. In India, alcohol brands are not allowed to give advertisements on television, so alcohol marketing firms use surrogate products like mineral water, soda, juice to hit consumers with the brand name. The brand name of the alcohol product is the same as the surrogate product. For e.g. Kingfisher soda.

ADVERTISING AND SOCIETY:The Government of India has for a long time relied considerably on the talents of the Advertising Agency and the Advertising Agencies Association of India for social causes. One of the biggest success stories has been the story of the simple birth control pill. A poor country like India faces a major problem with overpopulation. The Mala D commercials and the family planning campaign popularised in the 80s by advertising agencies to educate the masses were extremely successful.

One of the biggest problems facing India today, is the rising number of HIV and AIDS related cases. Again illiteracy was the core of the problem. That unsafe sex is one of the most potent ways for it to spread was a fact unknown amongst the masses. The Balbir Pasha campaign did wonders to spread awareness about the problem. Since the inception of the the advertising agencies they have donated crores of rupees worth of time and services to make the crusade a success.

ADVERTISING AND PR:Advertising and PR both belong to communication mix of a company. They are two different weapons of communication. Advertising is something that is a paid form of communication and is usually used on a continuous basis to talk to the masses whereas PR is something that can be a paid or an unpaid form of communication and is used more to build and strengthen relations with various stakeholders like press, government groups, consumers, shareholders etc. It is used more in times of crisis. But with increasing money being spent on both the types of communication, the difference is becoming insignificant as today companies draw out Integrated Marketing Communications plans rather than an ad or a PR strategy.

MEASURING THE PERFORMANCE OF A BRAND VIA ADS ON SEVERAL MEDIA:A brand is promoted through multiple mediums like television, radio, outdoors, print etc. There are chances that advertising objective for each medium is different and therefore the effectiveness would be accordingly measured. Based on the goals of advertising like awareness, information, education, preference and creation, measurement will be done.

DAGMAR Approach:

DAGMAR stands for Defining Advertising Goals for Measuring Advertising Results. It is a model developed by Colley in 1961 to measure the effectiveness of an ad. It measures the impact of an ad through the various stages of unawareness to purchase action.

THE AMOUNT ADVERTISERS SPEND ANNUALLY IN ADVERTISING: Marketers spend money as per the budget decided for a particular communication activity. The amount of money spent on advertising depends on a lot of factors like stage of the product life cycle, degree of competition, consumer awareness levels, product category and many more. FMCG is the highest spender as a category. Since the degree of competition is extremely high, consumer involvement is low and retail promotions make it essential for this category to frequently advertise in order to be on top of the mind.

MEASURING ADVERTISING RESULT:Advertising result is usually measured keeping in mind the objective of the advertisement. If the goal of advertising is to create awareness, the level of awareness among target consumers would be checked post release of an ad. Some other ways of measuring ad results are checking the brand recall, number of inquiries generated, sales volume etc. For e.g. for a new-to-the-world product like 'I-pill' which is an emergency contraceptive pill, ads focus on consumer education. In all their print ads, a toll free number is given for any doubts on the product. So, here the effectiveness of the ad can be measured by taking into account the number of calls received in response to the advertisement.

POST ADVERTISING RESEARCH: Advertising research plays an important role in making sure that ads are pre-tested before releasing it in mass media. Even after release, post advertising research is undertaken to understand the reaction of consumers to the ad. If an ad is not understood by consumers, the ad agency needs to understand the root cause of the gap. They need to find out as to why the ad was not understood or interpreted properly by the audience. Reasons can be improper language, improper metaphors, improper media planning and scheduling and so on and so forth. The agency needs to take this feedback seriously and work backwards and try and solve the problem.

EFFECTIVE MEDIA VEHICLES: Effective medium depends on a lot of factors like the product category, consumer awareness, competition, industry practice and so on and so forth. Radio may be the most effective medium for a brand targeted to rural folks while in flight, magazines may be the most effective medium for high flying executives. But today most brands try to develop a branding idea which can be used across mediums and can then be used as a strong idea to make word of mouth able for the consumers so that it spreads on its own.

Firms would use vernacular newspapers, local radio, community radio, outdoors in order to establish a strong regional presence. Moreover, the language used will be local to the concerned region. INNOVATIVE MEDIAS:Innovative media today exists in the form of new media and also in the form of innovative use of traditional media. Television is a traditional media for marketers but when used in an innovative fashion it can be considered as innovative use of conventional media. For e.g. using television shows to promote your product through in-script placement of the product. Internet and mobile telephony are today becoming a very strong media because of its potential to customize the message for the target audience. Blogs, social networking sites are new media which are slowly getting attention from marketers.

CMM PROFILE

ABOUT CMM:CMM has started in 1991 as a Proprietary Firm and Incorporated in 1996, with Rs 10 Lakhs authorized capital.It head quarted at Chennai, CMM is a fully accredited advertising agency with the Indian Newspaper Society (INS) and successfully running with a 150 members, highly talented team. To make a mark as a National Agency by opening offices in Mumbai and Delhi. To tap the Global opportunities, CMM will be opening offices in Dubai, Kuala Lampur and Singapore by 2009 2010.

We have a determined team with the right approach and talent. State-of-the-art infrastructure to meet our client's marketing and advertising needs. With experienced Media and Production groups to work in tandem, we act as perfect communication partners for our clients. BRANCHES:Established full fledged branches across India

Chennai

Bangalore

Kochi

Hyderabad

Coimbatore

Thiruvananthapuram

Delhi

Mumbai

SERVICES Consumer Advertising B to B Advertising Brand Building and Management Corporate Advertising Media Planning and Buying BTL Activities Films/Multimedia PR Events Visual Merchandising Exhibition Design and Execution

INFRASTRUCTURE: Top of the line software and hardware facilities across branches, with efficient communication systems. Online connectivity- Centralised Accounting System MIS reporting from all branches. Technically advanced Digital Creative Studios and Pre-press Operations across branches. Media software with access to constant upgradation of Media Information. Membership with ABC and having access to IRS, NRS, TAM and RAM.THE CENTRALIZED TEAM: Account Director Creative Director Director - Strategy & Planning Media Manager Production Team Research Team

VARIOUS DEPARTMENTS IN CMM:

ONLINE SECTION: Design & Development of Websites & Web Portals Web Hosting Web Analytics Site Maintenance E-commerce Sites SEO & SEM (Search Engine Optimization & Marketing) Third Party Advertising Intranet (Site Development and Maintenance) Flash Demos E-Mailers, E-cards, E-invites News Letters Microsites Interactive CD / DVD etc. Corporate Screen Savers Development of GamesEVENTS SECTION:A]Corporate Events:

Conference & Seminars

Product Launches

B2B & B2C Events

VIP Visits

Facility Inauguration

Employee Motivation Programs

Residential Conferences

Awards Functions

Media / Press Meets

Customer / Dealer Interaction Programs

Brand Extension Exercises

B]Promotions: Retail Visibility Product Awareness Product Sampling Consumer Insights Lead Generation Services for Special Events Technical Consulting Exercised Resource Proof Event Production & Direction Integrated Communication / Event Styling & Evolving Themes Planning Logistics / Production / Stage Management Artists Management Multimedia Production Exhibitions & Visual Merchandising Kiosks Installation ArtMajor E&M Events: Entertainment Sports Weddings International Events Television Events International / Indian artists Conference Hindi Film (Bollywood) Star Nights Film Awards High Profile Events & PartiesMEDIA SKY: Media Sky, a conscious progression of advertising through entertainment, is a Strategic Business Unit of CMM. Headquartered at Chennai and networked to Mumbai, Bangalore and Hyderabad, Media Sky has cutting edge access to all spectra of the media and entertainment industry.

This unit will also be functioning as a Media Research Centre for all the Group Companies.

Will be hands on with the market intelligence/information of all television channels and programmes.

Teams will constantly be monitoring the TRPs, TAM of all programmes across channels, which will help accurate and effective media plan.

CMM WILL BE THE EXCLUSIVE MARKETING AGENCY FOR: Teja tv Gemini music Gemini newsCMMS PR DIVISION: It operates in the Image Management and Public Relations space Media Relations Media Management Media Engagement Media Interaction Media Intelligence Media Monitoring AWARDS: Chennai Ad Club Award 2003 - 04

Ascent PINKSLIP CHOICE Awards, Hyderabad 2008 Ascent PINKSLIP CHOICE Awards, Bangalore 2007 FUNCTIONS OF CMM-PR : Define and prioritize key issues and objectives while developing effective lobbying /issue management strategies. Effectively interact with key policy makers on a clients behalf in Delhi and State Capitals. Interact for clients before regulatory agencies. Identify key non-partisan policy makers and enlist their participation in a clients objectives. Help raise visibility of positions and disseminate strategic materials regarding sector specific issues. Coordinate closely with our media relations team to strategically accentuate in the media the need for required policy in the desired areas.ONLINE PR: The web is ideally suited to build brandboth brand by belief and brand by experience. The enormous potential of the Web is best realized when it is used to build brand by experience. The goal of online PR is to engage consumers and create an emotional bond.REQUEST FOR MARKETING PROPOSAL

Usually these kind of proposals are conveyed from the clients to Ad Agencies to elaborate clear cut idea about their needs & wants. One of the proposals received from the Department of Tourism, Government of Karnataka is shortened & given below for the reference.

SELECTION OF TOURISM PROMOTION ADVISOR AND COORDINATORDEPARTMENT OF TOURISM, GOVERNMENT OF KARNATAKAIntroduction

Background

Department of Tourism, Government of Karnataka (hereinafter referred to as "DoT") invites detailed proposals (Qualification Submissions, Technical Submissions, Financial Proposal and a Presentation1 together referred to as Proposal) from reputed advertising agencies for promotion of tourism in Karnataka.The Successful Bidder would then have to enter into an Agreement with DoT for a period of 3 (three) years and perform his obligations as stipulated therein, in respect of the Assignment.

The submission of proposal

The submission of proposal in response to the downloaded RFP shall be accompanied with a non-refundable Demand Draft (DD) for Rs. 5000/- from any scheduled Bank drawn in favour of the Director, Department of Tourism, GoK payable at Bangalore and a copy of the DD shall be enclosed as a part of the Qualification Submission. www.karnatakatourism.org.

Bidding procedure

Number of Proposals

Each Bidder shall submit only one (1) Proposal, in response to this RFP. Any Bidder who submits or participates in more than one Proposal shall be disqualified.

Proposal Preparation Cost

The Bidder shall be responsible for all costs associated with the preparation of its Proposal and its participation in the bidding process. DoT will not be responsible or in any way liable for such costs, regardless of the conduct or outcome of the bidding process.

Rights:

DoT has all rights to Accept any Proposal and to Reject any or all Proposals.

Preparation and Submission of Proposal

Language and Currency

The Proposal and all related correspondence and documents shall be written in English language. Supporting documents and printed literature furnished by the Bidder with the Proposal may be in any other language provided that they are accompanied by an appropriate translation in English language. Supporting materials that are not translated into English may not be considered. For the purpose of interpretation and evaluation of the Proposal, the English language translation shall prevail.

Bid Security

Proposals would need to be accompanied by a Bid Security for an amount of Rs. 10,000/- (Rupees Ten Thousand Only). The Bid Security shall be kept valid throughout the Proposal. Validity Period and would be required to be extended if so required by DoT.

The Bid Security shall be forfeited in the following cases:

a) if the Bidder withdraws its Proposal except as provided in Clause 2.20.1;

b) if the Bidder withdraws its Proposal during the interval between the Proposal Due Date and expiration of the Proposal Validity Period; and

c) if any information or document furnished by the Bidder turns out to be

misleading or untrue in any material respect.

Pre-Proposal Meeting

To clarify and discuss issues with respect to the Assignment and the RFP, DoT may hold Pre-Proposal meeting(s).

DoT will endeavour to hold the Pre-Proposal meeting as per RFP Time Schedule. The details of the meeting shall be posted on the website:

Signing of Proposal

Qualification Submissions

This should include the following:

a) Covering Letter-cum- Assignment Undertaking

b) Power of Attorney as per Appendix 2, authorising the signatory of the Proposal to commit the Bidder.

c) Anti-Collusion Certificate

d) Details of Bidder.

e) Experience of Bidder as per.

f) Financial Capability of Bidder.

g) Technical Submissions.

h) Financial Proposal.

Sealing and Marking of Proposals

The Bidder shall submit each of the submission in three separate envelopes.

Confidentiality

Information relating to the examination, clarification, evaluation and recommendation for the Qualified Bidders would not be disclosed to any person not officially concerned with the process.

Clarifications

To assist in the process of evaluation of Proposals, DoT may, at its sole discretion, ask any Bidder for clarification on its Proposal or substantiation of any of the submission made by the Bidder.

Consultant(s) or Advisor(s)

To assist in the examination, evaluation, and comparison of Proposals, DoT may utilise the services of consultant(s) or advisor(s).

Modifications/ Substitution/ Withdrawal of Proposals

The Bidder may modify, substitute or withdraw its Proposal after submission, provided that a written notice of the modification, substitution or withdrawal is received by DoT before the Proposal Due Date. No Proposal shall be modified, substituted or withdrawn by the Bidder after the Proposal Due Date.

Letter of Acceptance

Acknowledgement of Letter of Acceptance (LoA) and Execution of Agreement

Within 1 (one) week from the date of issue of the LoA, the Successful Bidder shall accept the LoA and return the same to DoT. The Successful Bidder shall execute the Agreement, within 2 (two) weeks of the issue of LoA or within such further time as DoT may agree to in its sole discretion.

Evaluation of Technical and Financial submissions

The Technical Submission and the Financial Proposal of the Qualified Bidders would be evaluated as follows:

Technical Submission - maximum score 70 marks

The Scope of Services to be provided by the Agency is set out in the Draft Agreement.

The Bidders Proposal to undertake the same over a 36 month period would need to be presented to the Project Committee, constituted by DoT.

The Presentation made by the Bidders should cover the following:

a) Strategy for the assignment with special reference to VISION 2012

b) Promotion Plan (both national and international)

c) Creatives

d) Client Servicing Plan

The Presentation would be evaluated on the basis of the following criteria for which

scores would be assigned.

Evaluation Parameters

Eligible Bidders competence and capability is proposed to be established by the following parameters:

a) Agency Network

b) Experience

c) Financial capability

Strategy for the assignment with special reference to VISION 2012

Understanding of the assignment

Theme and Positioning for Karnataka

Tourism

Target markets to be covered

Conceptual plan and strategy

Evaluation Mechanism of

implementation of proposed strategy

Integrated Promotion Plan

Public relations plan

Road shows, trade fairs and conferences

Media strategy, plan and scheduling

Indicative budget spend on various activities

Computation of Composite Score

The Composite Score would be the arithmetic sum of the scores assigned to Bidders under each of the parameters listed above and the aggregate marks secured under each of the Evaluation Parameters would be tabulated as under:

Evaluation Parameter Maximum Marks Marks Secured

Presentation

Strategy for the assignment 25

Promotion Plan 25

Creatives 10

Client Servicing plan 10

Financial

Financial Offer 30

Composite Score 100

The Bidder obtaining the highest Composite Score would be declared as the Preferred Bidder.

Promotion Budget

DoTs budget for promotion of tourism (Promotion Budget) is as follows:

Year BUDGETED AMOUNT (indicative)

April 2009 to March 2010 Rs. 15 Crores

April 2010 to March 2011 Rs. 15 Crores or more

April 2011 to March 2012 Rs. 15 Crores or more

SUBMISSION OF MARKETING PROPOSAL TO CLIENTSRequest for marketing proposal will be analysed by the team through continuous brain storming sessions. Then the finalized plan for ATL & BTL activities will be made. One of the marketing proposals made by our team is given below for the reference. LEAD GENERATION PROPOSALClient WhirlpoolBrand

Purafresh Water PurifierMarket Chennai

Date

24.01.2009Background

Most households are concerned about the safety of their drinking water

But their knowledge about water purification technology [Filtration vs UV vs RO] is relatively poor

Experts in this field maintain that UV based Water Purifiers are better than Filtration and that Reverse Osmosis is the best technology around

Aqua Guard has been the market leader in water purification products because they were early entrants and they adopted a Direct Sales strategy

The low cost [Filtration based] Unilever brand Pureit, a recent entrant has been a runaway success because the consumer is attracted by the pricing of Rs.1500/-. They dont realize that there is an additional recurring cost of Rs.300 for the change of Filter, approximately every 3 months.

Since the Cost vs Benefit equation of RO Units is not clear for the average consumer, Filtration & UV based products are still popular.

RO Units started off expensive and were perceived as a rich mans product. Now their cost has come down to approximately Rs.10,000/- This is how much a sovereign of Gold Jewelry costs today and the middle income groups are catching on to it.

In a recent dipstick survey done by CMM, it was found that Whirlpools Purafresh brand did not have any recall in Chennai, Madurai and Tirunelvely. It was also observed that a local brand called Misty Aqua had scored over the market leader in Madurai due to its DM efforts The CMM report also reveals that in Washing Machines & Refrigerators, Whirlpool brand has a substantial mind-share.

This leads us to the conclusion that ATL alone will not help Substantial investments have to be made in BTL activity to establish the brand in the minds of the potential users

The problem turned around on its head is usually the solution here too the lack of awareness of RO technology & its cost vs benefits equation have to be translated as the prime driver to engage & attract the consumer

Insights we have about the Consumer and how it can be translated to a BTL activity

Whirlpools hi5H20O F F E R

Answer 5 common questions on water & win a Whirlpool Purafresh RO Water Purifier worth Rs.11,500/- absolutely FREE

Book any Whirlpool Purafresh RO Water Purifier and win an assured GIFT

Execution details

A Kiosk Stall announcing the offer will be put up in Spencer Daily outlets

Customers will be asked to answer 5 common questions about water and if they get all 5, right they will win a Purafresh basic model absolutely FREE

If they book an order in the stall they will get an assured gift

The 3 models of Purafresh will be displayed in a Stand with name / price tags and there will be 6 panels giving out key information

Panel 1Water, a source of life, can be a killer too! Beware of these water borne diseases

Panel 2Comparison chart of Filtration vs UV vs RO Technology. We know you love your family, so go for the best technology!

Panel 3For the cost of a bubble top, now buy a world class RO Purifier

Explanation of simple EMI scheme of Rs.500/- p.m.

Panel 4How Whirlpool products score over competition. Chart showing ethical comparison between Whirlpools RO and competitors

Panel 5Sales Offer: Buy model 1 & win gift 1, Buy model 2 & win gift 2, Buy model 3 & win gift 3

Panel 6Help the environment by discouraging the use of plastic Say NO to Bubble tops! Invest in an RO water purifier instead

The 5 questions will be printed on a handbill. The visitors to the stall can fill up the answers and return it to the promoter who will correct it instantly.

While the answer sheet is being corrected, promoter # 2 will explain the sales offer. If the customer pays Rs.100 and books the product, a redemption card will be provided which acknowledges that the specified gift will be delivered along with the product when it is sent for installation

If the visitor fails to get 5 out of 5 and is not interested in the sale, he / she will be given a memorabilia [eg: keychain bearing whirlpool logo] and a leaflet which has product details.

Reach & Costs involved:Reach

Spencers Daily has 22 outlets in Chennai

On an average SD outlets claim a footfall of 1000 during weekends [sat & sun]

Variable Cost

Cost per outlet per day is Rs.2000/- That means cost per weekend [2days] per outlet is Rs.4000/-

Cost of 2 promoters per day is Rs.1000/- That means cost per weekend [2days] per outlet for manpower is Rs.2000/-

Cost of Gifts, Marketing collateral like leaflets, etc is in addition to this

Coordination charges would be 17.65% on the overall Gross value of the invoice

Total cost per outlet would hence be approximately Rs.7059*

One time Cost

Space of 6x 6 is provided to us by SD. Our Stall should hence be of size 4x 4 to accommodate visitors

Stall creation would cost Rs.6000/-

TShirts, caps for promoters [2 sets per stall] would cost Rs.400

The Stand inside the Stall & the display boards would cost approximately Rs.5000

The layout & concept charges would be approximately Rs.10,000

Total one time cost would hence be approximately Rs.21,400*

* All coordination & artwork charges would be billed from CMM @ the regular Service Tax of 12.36%

Projection of RoI

Assuming a footfall of 2000 per weekend

At 10% footfall to our Stall the number of unique customers touched would be 200 [read that as 200 households]

At 10% conversion of this segment, the number of bookings expected per weekend per outlet could be as high as 20

Cost of acquiring one customer hence would be in the area of Rs.400 to Rs.500** [approx]. This is a good RoI considering that many more would have been sensitized to the brand communication and would be the brands future buyers

Database of Leads recorded during this activity could be used for Tele-Sales / DM on a later date

Note:

** Such calculations could be erroneous because most of it relies on assumptions. But if there is a strategic understanding that this medium should be seen as a Communication exercise more than a Sales exercise then it would be helpful.360 MARKET ANALYSIS Advertising agency conducts various kinds of researches to analyse the minds of consumers, retailers and the whole market. This report contains few of the researches conducted by me. They are, Consumer researches Retailers researches Market visitsCONSUMER RESEARCH REPORTS:[1] Customer satisfaction study:

Brand:Indian Automobiles (Hero Honda dealer)

Locality:Vanuvampet,

Alanthur, Chennai.

Date:10/10/08.

Marketing Objectives:

To increase footfalls in sales/service offering.

Research Objectives:

1. To investigate the reasons why / (why not) customers patronize Indian Automobiles and identify sales triggers.

2. To identify best practices from the customers point of view and suggest the brand owner for implementation.Service offering:

Hypothesis:

After free service is over, customers go back to their personal mechanic possibly because of the following reasons.

1.a. The cost is high

1.b. There is a perception that cost is high.

1.c. There is a perception that unnecessary expenses may be booked on the customer

2.a. Authorized dealer requires more time.

2.b. There is a perception that a dealer requires more time.

3. The customer has set-habit to go to his personal mechanic.

4. Customers would like more control over the service transaction / experience (which he gets from personal mechanic).

5. Customers believe that personal mechanic is more transparent.

6. The service outlet is not in the customers proximity.

7. Only new parts available with authorized service centre, whereas personal mechanic can supply used parts.

8. There is a perception that personal interaction with mechanic is not possible.Information targeted by this research activity:

The research has to deliver answers to the following questions.

1. How many free service customers convert to paid service? (Dipstick).

2. Why they convert?

3. Why they dont convert? (Check hypothesis, statements as true or false).

Sales offering:

Hypothesis:

It is assumed that the sales performance is good because of the following reasons.

1. It is located in a highly populated area.

2. Behaviour of sales person is satisfactory.

3. The ambience of the outlet is good.

4. All models & colours are available at any time.

5. It is well known to everyone.

6. Hero Hondas equity rubs off on Indian Automobiles.

Hence the task is to check the above & identify gaps.

Information targeted by this research activity:

The research has to deliver answers to the following questions.

1. Steps to be taken to improve sales

2. Is there a need of further publicity or promotion?

3. How many customers are satisfied with outlet?

4. How many customers would like to come for further purchase/ refer others?

Research methodology: After the formulation of hypothesis .Sample size of eighty customers were selected. Among them fifty were service customers and thirty were buyers. There was direct interview as well as questionnaire were used draw the information to check the hypothesis.Customer retention level in service:

ParticularsRetained customersShifting customers

Sample size257

Percentage78.13%21.87%

Reasons for retention:

ParticularsFavouredUnfavoured

Quality of service205

Accessibility223

Spares availability178

Warranty916

Free b/d service520

Reasons for shifting:Particulars Valid reasons Invalid reason

High cost43

High elasped time52

Longterm relation with personal mechanic 25

Control over personal mechanic43

Non transperancy70

Far from home & office25

Non availability of used parts16

Lack of interaction70

Booking unnecessary expenses34

Reasons for patronizing:

ParticularsFavouredUnfavoured

Caring for vehicle180

Reliability162

Reasonable cost135

Cordial relation135

Timely service126

Spares availability144

Warranty claiming153

Customer satisfaction level:

Customer mode of entry:

ParticularsBy friendsBy advertisementsDirect contact

Source of awareness12216

Percentage40%7%53%

Quality of sales person:

ParticularsYesNo

Friendly291

Informative282

Availability of model & color:

ParticularsAvailableNot available

Color & model273

Percentage90%10%

Recommending friends:

ParticularsYesNo

Favouring friends to join264

Percentage87%13%

Findings on service:

1. There is no concern to rectify the customers specific complaints while servicing.

2. The customer is not given the promised delivery. The customers are informed before the service completion.

3. The customers are compelled to change the lubricant even though they dont wish.

4. The customer at- times feel that they are not treated fairly.

5. The customers are not given enough detail about the service carried out.

6. Customers are crowded around the counter because of hurry and the customer lounge is not used by them.

7. Customer feels that there is no thorough check of their service before delivery.

8. Customers are ignorant about the existing passport programme.

9. The employees are not seen with the uniforms.

10. Fuel checking is not done after servicing.

11. There is a huge bulk of outdated magazines rather than updated ones.

12. There are no special allowances given for the loyal customers.

13. Customers are not aware of the warranty benefit.

14. Value added services are not encouraged.

15. The unsatisfied customer prefers another service station instead going for a local mechanic.

16. In order to get timely service the customer may shift the service stations.

17. Quality and reasonable cost retains the customers with Indian Automobiles.

18. The customers feel that there is little control over the services in service station.

19. The brand name brings many customers to the customers.

20. Indian Automobile is easily accessible to the customers.

Findings on sales:

1. The customers are not informed beforehand about the credit payment charges.

2. Registration consumes longer time.

3. The sales persons are informative and friendly.

4. There are less promotional activities to increase the sales.

5. Word of mouth plays a very little role in bringing in new customers.

6. There is a sufficient space for showroom facilities.

7. The much sought after colour and models are always available.

8. Sales activities fares well in comparison to the service stations.

Suggestions received to improve employees quality life:

1. There should be one day leave for all the employees.

2. There should be enough breaks for the employees to refresh.

3. There should be a stipulated time for servicing vehicle according to the need.

4. The owner should be friendly with the employees.

5. The employees benefit schemes should be introduced including ESI, PF, etc.

6. There should be periodical meeting with the employees.

7. Government holidays and other reasonable leaves should be given to prevent the absenteeism.

8. Salary reduction must be communicated to the employees with the detailed voucher (or salary slip).

9. Reasonable target should be set.[2] Home Appliances Dipstick study

Product

: Home Appliances

Date

: 19/01/09

Objectives:

To find out which brand is most salient in the consumers mind when it comes to Home Appliances

Methodology:

Sample size 300 households [100 in each city].

Questionnaire method was used

The respondents were given a sheet which listed the various product categories and were asked to fill up which brand they would prefer in each of these categories. They were also quizzed as to the reasons why they preferred that particular brand which helped in recording some qualitative observations

Target group: Middle Income GroupAverage Income level taken for consideration to qualify for Middle Income Group is as follows [Since income levels vary in each geographic location]

Trinelveli between Rs.10,000 to 15,000

Madurai between Rs.15,000 to 20,000

Chennai --between Rs.20,000 to 25,000Markets surveyed:

Trinelveli

Madurai

ChennaiDESIRED TELEVISION BRANDS

DESIRED REFRIGERATOR BRANDS

DESIRED BRAND FOR AUDIO SYSTEM

DESIRED MIXIE BRANDS

DESIRED WET-GRINDER BRANDS

DESIRED STABILIZER BRANDS

DESIRED BRAND FOR FANS

Desired Washing Machine

DESIRED IRON BOX BRAND

DESIRED WATER HEATER BRANDS

DESIRED WATER-PURIFIER BRANDS

DESIRED AIR-CONDITIONER BRANDS

DESIRED MOBILE BRANDS

DESIRED PRESSURE COOKER BRANDS

DESIRED CAMERA BRANDS

FURNITURE, VACUUM CLEANERS & MICROWAVE-OVENS

Trinelveli & Madurai: In certain product categories the respondents were not aware of any brands as consumption of such products was lean.

DESIRED BRAND FOR INVERTERS

Trinelveli & Madurai: Maximum respondents were not aware of any brands of Inverters. Remaining inverter users are satisfied with their assembled UPS.

Youngster's Favourite channels

FAVOURITE TV CHANNEL FOR MIDDLE AGE

Youngster's Favourite TV Program

Favourite Program for Middle Age

Favourite Newspaper

Favourite Magazine

FAVOURITE FILM STAR

[3]Joy Alukkas Dipstick Survey Report

BrandJoy Alukkas

Date23/12/08

Objective

To take a peek into the buying behavior of consumers with reference to Jewelry

To find out popular perceptions about Joy Alukkas

To gain insights into the construct of consumers Ideal jewelry shop

Methodology

Sample size 50 [both sexes]

Direct interview method used.

Target group: Upper middle class.

Markets surveyed

T.nagar

Velachery

Anna nagar

Nungambakkam

Alwarpet

Findings

[1] Out of 50 respondents 11 have been buying Jewelry from Joy Alukkas

[Others include Lalitha Jewellery, Prince Jewellery, Arya Diamonds, Ambhiga pearls & Jewellery, Saravana Gold palace & imported jewels]

[2] 20% respondents named Joy Alukkas as the best Jewelry Shop

[3] Out of 50 sample size, 24 have visited Joy Alukkas; Most of them say they are highly satisfied

[4] Many people felt that Joy Alukkass Advertisements does not have much impact in their mind.

[5] Apart from Joy Alukkas, most other Shops do not have enough parking facility in their regular outlet.

[6] Unique design, Reasonable cost, Good customer service, Exchange facility & Purity are the major expectations of buyers from their ideal Jewelry shop.

[7] Female buyers are very much loyal towards their regular shops due to long association.[8] Joy Alukkas, Tanishq & GRT are preferred more by Teenagers, while Kumaran Gold Palace; Saravana Gold Palace & Khazhana are preferred by middle aged as well as Senior Citizens.

[4] Idea Cellular Services Dipstick Study:Research methodology

The research had been taken in two methods; they are Questionnaire & Vox-pop method. 100 samples were taken for research. The research mainly focuses on youth as well as adults. To make the report lively we have attached voice recordings with this report.

Findings

[1] Current service providers satisfy the customers by the following ways.

Network coverage

Affordable tariff for STD & local calls

Often introducing offers

GPRS & mobile office

*M-check

Huge availability of booster packs & rate cutter cards

Free SMS service

Multi-collection of caller tunes

Low charges for landline

The facilities of an ADD-ON(friends & family plan)

M-check: Through GPRS we can recharge our account, the amount will be taken from our bank account. This service is available only on Airtel.

[2] Current service providers dissatisfy the customers by the following ways.

Irritate by cross-talking

Less concentration on customers problems

No proper coverage in coastal areas

Charging for SMS

Increased rates for ADD-ON (friends & family plan)

GPRS service is not up to the customers expectations.

Low speed internet facilities

High charges for internet facilities

[3] According to survey out of 100 sample size 36 were willing to shift their network & 64 were not eager to shift their network.

The expectations of customers

More concentration on GPRS & internet services (especially providing high speed internet).

Introduce new value added services.

Provide free SMS service.

Come up with new market strategy.

Charge minimum amount for caller tunes.

[5] SABOLS MARKET SURVEY REPORT

Brand

Sabols packaged water.

Objective

To gain understanding on brand recall and consumer reaction to the brand.

Methodology

Unstructured vox pop method used. Sample size of 70 people was selected. It includes both sex with the age group of 25-45. Apart from this 30 shops was surveyed.

Market surveyed Egmore

Central railway station

Thambaram

Velachery

Adyar

Guindy.

Findings

[1] Out of 70 people, interviewed 40 people were not aware of the brand name Sabols.

ParticularsAwareNot aware

Brand awareness3040

Percentage43%57%

[2] Out of 30 outlets, checked 16 had Sabols.

ParticularsAvailableNot Available

Sabols Availability1416

Percentage47%53%

[3] Out of 70 people interviewed, 48 people felt that there is no difference in Sabols while comparing with other existing brands.

ParticularsYesNo

Felt difference in Sabols2248

Percentage31%69%

[4] Out of 70 people interviewed, 33 people felt that the pack is not attractive.

ParticularsAttractiveNot Attractive

Pack design3733

Percentage53%47%

[5] Out of 30 outlets surveyed, all are felt that customers either ask for mineral water or if they ask for branded one only following brands are in their mind.

Aquafina

Bislery

[6]Reynolds Dip Stick Market Survey Report:

Brand:Reynolds

Date:31/10/08

Objective:

The purpose of the study was to gain an understanding about retailers reaction towards the brand.

Research Methodology:

Unstructured vox-pop method used; Selected sample - 30 retailers

The question asked was If you could stock only one brand; which brand would it be? Why?

Market surveyed:

1) Adyar

2) Royapuram

3) T.Nagar

4) Thamparam

5) Guindy

6) Velachery

7) Mylapore

Findings:

Given the imaginary simulation that the retailer could stock only one brand, only 11 out of 30 retailers preferred Reynolds. Amongst the other brands they preferred, the choice was predominantly Cello ParticularsPreferredDo not prefer

Preference level1119

Percentage37%63%

1. Reasons why retailers would stock Reynolds

It has more loyal customers.

Brand equity leads to higher preference.

2. Reasons why retailers would not stock Reynolds

Low margin to retailers.

Pricing strategy does not cover all the customers.

3. Suggestions from retailers to the brand owners of Reynolds

1) Increase retailers Margin

2) More attractive designs needed

3) Refills must be designed in such a way that it would fit all products

4) Employ more promotional activities to increase sales

[7]Meera coconut oil Dipstick Survey Report

BrandMeera Coconut Oil

Date17/11/08

Objective

The purpose of the study was to gain the Retailers reaction towards the brand.

Methodology

Sample size of the Retailers was Fifty.

Sample was a mix of Super Markets & Provision shops.

Direct interview method was used.Market surveyed

1. Adyar

2. Ambathur

3. Anna nagar

4. Ashok nagar

5. Besant nagar

6. Porur

7. Triplicane

8. Vadapalani

9. Velachery

10. Vysarpadi

Findings

[1] Out of 50 retail shops surveyed, Meera coconut oil was available in 36 shops; it was not available in the remaining 14 shops

[2] Out of the 14 shops (where Meera coconut oil is not available) 6 shops said that the company had not approached them with the product [supply not made] and 8 shops said that customers do not prefer this brand over their current brand.

[3] Among those who stocked the brand, 31 said that Meera brand loyalists are buying the coconut oil, 4 said that customers buy because of quality and 1 person felt that brand sales was because it was a new entrant [curiosity factor]

[4] When asked which brand was the most preferred, 2 retailers named Meera; 6 named VVD & 42 named Parachute

[5] On probing, retailers opined that Parachute is the highly preferred brand because of the following reasons Early market entry [37], Brand Loyalty [8], Quality [3] & Effective Advertising [2]

[6] Out of 50 retailers, 44 preferred Parachute, 4 preferred VVD and others preferred Meera, while we gave them an imaginary situation, what if only a single brand could be stored in your shop?

Suggestions from retailers to the brand owners of Meera

1. Sales can be improved by doing in-shop promotional activities.

2. Increased awareness of customers (especially homemakers) will lead to better sales

3. Creative advertisements can boost sales.

4. Brand Meera is popular among the people only as Shikakai powder. Even loyal customers are not aware of Meera coconut oil. So there is a need for more Advertising

5. Maintaining a good relationship with Distributors / Dealers will help increase sales

Market Visit Report-IDate

:13.12.08

Market / Location:Chennai, AdyarSegment

:Consumer Durables Outlets

Purpose of Market Visit

To gather information on the schemes that various Outlets / Brands have planned for New Year / Pongal Festive Season

Sl.noOutletInfo gatheredcommentsNext action

1Fomra & coThey have planned to offer price discount & warranty extension They did not announce any offer for this year Diwali festivalPlan to visit on 26/12/08

2ShahsThey have planned to offer free gifts from 20/12/08 ---Plan to visit on 22/12/08

3JainsonsOffers will be announced on 25/12/08 ---Plan to visit on 28/12/08

4ViveksThey offered December Dhamaka on 13th & 14th. It includes 1 year extended warranty, Exchange offer & free gifts.Ad has been released on Dec 13th but Sales men are not aware of the December Dhamaka offer details ---

5Vasanth & co, Offers will be announced on 22/12/08 ---Plan to visit on 24/12/08

6Samsung exclusive outlet, Offers will be announced on 24/12/08They have lots of stocks in their Outlet Plan to visit on 26/12/08

7Alankar Electronics, They have planned to offer gifts from 25/12/08 ---Plan to visit on 26/12/08

MARKET VISIT REPORT-IIDate:

17.12.08

Market / LocationChennai, AnnanagarSegment

Consumer Durables Outlets

Purpose of Market Visit

To gather information on the schemes that various Outlets / Brands have planned for New Year / Pongal Festive Season

Sl.noOutletInfo gatheredCommentsNext action

1ViveksSpecial offers will be announced on 28/12/08They achieved higher sales during December Dhamaka [13& 14th of Dec] ---

2NextNo special offers for festive seasonI observed excellent customer service. They are planning to give Travel bags, Containers & Kitchen Bowls ---

3JainsonsThey are offering price discounts for all products.I came across Philips PoP material announcing discounts in the outlet. ---

4Chandrika [Sony & Canon Authorized Dealers]Canon is offering 2Gb memory card for festive season. Canon was suggested by sales man. I observed the sales team informing customers that Canon has better features than Sony. Only Canon leaflets were issued to the customers. ---

5Jayam & CoOffers will be announced after 25/12/08They are focusing more on Samsung than any other brands.Plan to visit on 27/12/08

6ShahsPrice discounts offeredVery good customer response ---

MARKET VISIT REPORT- IIIDate:

19.12.08

Market / LocationChennai, PurasaivaakamSegment

Consumer Durables Outlets

Purpose of Market Visit

To gather information on the schemes that various Outlets / Brands have planned for New Year / Pongal Festive Season

Sl.nooutletInfo gatheredComments on outletComments on salesmen

1Vasanth&CoGodrej provides free insulation offer for all models of Air conditioners I observed that the showroom was not clean & products were not displayed properly.I observed that Sales men were performing well. They were friendly & informative

2JainsonsThey are offering free Stabilizer along with split type AirconditionerDespite being a temporary outlet the Products were displayed neatly I observed that Sales men are informative but not friendly to the customers.

3ViveksOffers will be announced on 28/12/08About 70% of the outlet was occupied by Televisions.I observed Performance of sales men were not up to the level.

4Fomra & CoPrice was lower than other outlets ---Sales men were not responsive to customers.

5SathyaFree DTH with selected models of LCD televisions. All products are available at Lower price.More products were stuffed in the Showroom Extraordinary performance by salesmen. They were Friendly, Hospitable & Informative

MARKET VISIT REPORT- IVDate:

12.12.08

Market / LocationChennai, T.NagarSegment

Consumer Durables Outlets

Purpose of Market Visit

To gather intelligence on the schemes that various Outlets / Brands have planned for New Year / Pongal Festive Season

#OutletInfo gatheredCommentsNext Action

1LG Exclusive ShowroomWarranty extension of 3 years& 5-10 % price discount. I got the feeling that we need to bargain hard to get a good deal --

2NEXTOffering special gifts & price discounts

Salesmen are not hospitable. --

3Vasanth & CoOffers will be announced on 22/12/08Friendly salesmen.Plan to visit again on 23/12/08

4ViveksNew year offer starts from 25/12/08Sales men were not informative.Plan to visit on 26/12/08

5ShahsNew year offer starts from 25/12/08There were no customers.Plan to visit on 26/12/08

6Saravana storesOffers will be announced next week.Godrej offered non stick Tawa with Refrigerator, Samsung offered price discount & warranty extension for Diwali festivalPlan to visit on 26/12/08

MARKET VISIT REPORT- VDate

:07/01/09

Brand

:SONY

Market / Location :Chennai, T.NagarSegment

:Consumer Durable Outlets

Objective:

To gauge salesmens opinion on brand Sony.

To check how salesmen handle the brand while selling.

Visited outlets

Vasanth & co

Viveks

Shahs

Next

Rathna stores (Firm)

Findings:

Salesmens opinions as follows,

Sony has high picture clarity & high tech digital audio features.

Its a reliable brand.

Its positioned as an aspirational brand in customers mind because of its quality.

It has unique features like Bluetooth in selected models.

Quality wise it has no competitors.

Sony products are usually preferred by upper middle class & high class.

Sony is a fast moving brand.

Customers expect attractive offers during festive season.

Sony is a durable product.

Other findings:

Few Sales men are insisting that price of Sony products are higher than its quality.

Very few sales men are suggesting people that better you go for Samsung or LG with the same features but with lower price.

Sony is a highly recommended brand by salesmen in most outlets.

There is a remarkable price variation among the outlets in the same location.

Rathna Stores firm offers Tata sky as freebie with all LCD TVs including Sony.

We couldnt able to find any standees represent Sony in Shahs. Sales men in Viveks were not aware of features of Sony.

Suggestions from sales men & customers :

Attractive designs sell more, so create more attractive designs

Special gifts can be offered to attract customers.

Sony should concentrate more on its after sales service.

LIMITATONS OF THE STUDY

1) Time and Finance were major constraints.

2) It was difficult to get the appointment of the clients, to know more of the services offered by the Ad Agency.

3) Many of their proposals and techniques used by the Ad Agency were kept confidential.