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A

Research report on

ROLE OF ADVERTISING IN FMCG SECTOR


IN THE PARTIAL FULLFILLMENT OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
SESSION 2005-2007

Under The Guidance of:Mr. Vishal Bishnoi


Faculty IPEM
Submitted by:Surneendu Srivastava
MBA 4th SEM
ROLL NO:- 0511470114

INSTITUTE OF PROFESSIONAL EXCELLENCE &


MANAGEMENT A-13/1 S.S. G.T. ROAD, INDUSTRIAL AREA
N.H. 24 GHAZIABAD 210001

[1]

DECLARATION

I Surneendu Srivastava Here by declared that this research report entitle


ROLE OF ADVERTISING IN FMCG SECTOR has been completed based on
actual study carried out by me. I am presenting an authentic record of my. Our
work carried out under the guidance of Mr. Vishal Bishnoi (research report
guide) IPEM, which is required in the partial fulfillment for the degree of
MASTER OF BUSINESS ADMINISTRATION affiliated to U.P. Technical
University, Lucknow.
This declaration is original and the information data in this research report
for the award of any other degree or diploma in the best of my knowledge.

(Surneendu Srivastava)

[2]

PREFACE

In spite of the theoretical gained through classroom study, a person is


incomplete if not subjected to practical exposure of real corporate world and may
have to face hurdles, which will be difficult to overcome without any first-hand
experience of business.
In the context, research program has been designed to make the person
aware of the happenings of the real business world. The research entitled ROLE
OF ADVERTISING IN FMCG SECTOR of has been done at as a completion
part of MBA programme.

I whole heatedly appreciated the harmonic atmosphere provided to me by


the staff of marketing. The data has collected at primary source through interviews
with the customer & discussions with the retailer of different -different sections.
The data which used in this project report are secondary data. These secondary
data so obtained were mostly collected from the management. It would not have
been possible to complete my research report in a manner. I reckoned & within
such a limited time. For this nice obliged to them.

[3]

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


Mr. Vishal Bishnoi who has been a source of guidance and has rendered
constant encouragement to complete this project.

I extend my gratitude to IPEM college authorities, classmates and friends


who were helpful at every step.
Last but not the least would be falling short of duties if I dont mention. My
sincere thanks to all the staff members for providing me with great help.

(SURNEENDU SRIVASTAVA)

[4]

CONTENTS
Sub Topics

Page No.

1. Introduction

6-13

2. Executive Summary

14-16

3. Objective

17-17

4. Research methodology
5. Scope
6. Use and importance of study
7. DESCRIPTIVE WORK OF SUBTOPIC ON STUDY
a) Profile Of HLL
b) Profile Of P&G
c) Product Of HLL
d) Product Of P&G
8. Different Advertising Strategies
a) HLL: Advertising Strategies
b) P&G: Advertising Strategies
9. Data Analysis & Interpretation
10. Vision 2007
11. Finding
12. Conclusions
13. Suggestion
14. Limitation
15. Bibliography

[5]

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 departments job is to propose a budget; develop advertising
strategy; approve ads and campaigns and handle direct mail advertising, dealer
displays, and other forms of advertising. Most companies use an outside agency to
help create advertising campaign and to select and purchase media.
Advertising and promotions is bringing a service to the attention of potential and
current customers. Advertising and promotions are best carried out by
implementing an advertising and promotions plan. The goals of the plan should
depend very much on the overall goals and strategies of the organization, and the
results of the marketing analysis, including the positioning statement.
The plan usually includes what target markets you want to reach, what features and
benefits you want to convey to them, how you will convey it to them (this is often
called your advertising campaign), who is responsible to carry the various
activities in the plan and how much money is budgeted for this effort. Successful
advertising depends very much on knowing the preferred methods and styles of
communications of the target markets that you want to reach with your ads. A
media plan and calendar can be very useful, which specifies what advertising
methods are used and when.For each service, carefully consider: What target
markets are you trying to reach with your ads?
What would you like them to think and perceive about your products (this should
be in terms of benefits to them, not you)?What communications media do they see
or prefer the most? Consider TV, radio, newsletters, classifieds, displays/signs,
[6]

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, 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'.
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
[7]

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 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 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.

[8]

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.
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.
[9]

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
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
[10]

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.
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.
[11]

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.
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
[12]

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

[13]

EXECUTIVE SUMMARY
The report involved analysing and evaluating advertising strategies for various
companies:
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 Ps
(3) Calls for or invites people to buy the product
(4) Mass communication
(5) Attract attention
(6) Lousing interest

[14]

(7) Building desire


(8) Obtaining action.
How much advertising a given budget and brief will buy.
Costs are usually reckoned on the basis of 'CPT' the average Cost Per Thousand
people
reached in the target group. This of course varies according to the size of the ad,
the rates
charged by the individual media, and whether a printed ad is black and white, or
full colour, etc.
Nowadays virtually every 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.
[15]

More media
One of these is that it largely finances the media. Without advertising revenue, the
UK would have no commercial TV or radio, far fewer and much more expensive
newspapers and magazines, and of course no posters. Cinema tickets would be
more expensive.
In this regard, advertising's effect is vastly to enrich the variety and numbers of
media available, and it is an authentic engine of freedom of speech. It also claims
this freedom itself, within the law. (In the UK the principle of 'editorial
independence' means that advertisers pay for the media, but cannot much influence
the media's editorial content, whether excellent or deplorable. Broadcasters and
editors say what they want to say: the advertisers are simply allowed to buy a
proportion of discrete spaces to say what they want to say.)
Choice
Advertising, because it is 'competitive', is an agent to improve the range of
products available, the speed with which new ones can be introduced, and even the
ways in which we shop.
Prices
Finally, despite its cost (quite often as much as 5 per cent of total product costs) it
has the
tendency to reduce prices, because of the efficiency it creates through economies
of scale, and the nature of competition.
Advertising is often 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

[16]

That it exploits consumers and creates unnecessary needs.

OBJECTIVES of RESEARCH :
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.

[17]

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.
Collect the information: - The information can be collected by primary data or
secondary data, or by the combination of both methods.

[18]

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.

INSTRUMENT TO BE USED:

INTERNET
MAGAZINES
JOURNALS
NEWS PAPERS

[19]

SCOPE

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
TIME DURATION
CORRESPONDENT

NCR
:

10 days

: Advertising Manager, Retailers

[20]

USE AND IMPORTANCE OF 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
management.

an advertising

You can choose your campaign duration, from one week to one year.
Advertise to a motivated audience of new parents, voyeurs and teens.

[21]

DESCRIPTIVE WORK OF SUBTOPIC ON STUDY

[22]

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'.
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.
[23]

However the word 'advertising' from here on means display advertising unless
otherwise stated.

Advertising audiences
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 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.
[24]

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.
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
[25]

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.

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.
[26]

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.
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
otherresponsibilities. 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'
Sales Promotion
Management
Administration

[27]

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 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
[28]

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).
6. Post Launch Dipstick After the advertisement is released, a postlaunch study may be conducted

in order to gauge advertising

effectiveness. This is typically conducted among users as well as non[29]

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.

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 trierrejectors 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.
[30]

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 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
[31]

message to have an impact. For this reason, newspapers and magazines are often
referred to as high-involvement medias 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.
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.
[32]

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 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
companys 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
[33]

winning strategy. Moreover, the study findings are consistent across industry
sectors, making results relevant regardless of business category.
Long-term investing
While the Yankelovich/Harris study offers compelling data to support the benefit
of advertising especially in slower times, other business gurus also support the
theory.
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. Thats when you can build market
share. Thats when you have less competition for share of mind. While others are
in a cocoon, hibernating until things blow over, its 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 shows for different reasons. B-to-b magazines are favorably evaluated with
[34]

respect to being highly credible sources and providing information you can
trust. B-to-b Web sites rate high for being 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, its important to seek information
from multiple media sources, like business-to-business magazines, Web sites and
trade shows, said the study authors.
DoubleClick, 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, DoubleClick. "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 massmarket 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 Clicks Ad Serving Trend Report gives deeper insights about what works
on the Web. Double Clicks ad serving data reveals a major variance in the clickthrough rates of rich media ads (2.4 percent), which is six times higher than nonrich media ads (0.4 percent).
Rich media uses a combination of voice, interactive video, streaming video and
data sharing. The ads, then, are more interactive than static banners.
[35]

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?
Regardless of the medium, the Yankelovich/Harris concludes that advertising
during all economic times is critical to the future success of companies.
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.

[36]

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 its valued
at Rs. 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
villages

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

of rural

distribution network from 50,000 to one lakh

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
[37]

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.

The P&G community consists of over 135,000 employees working in over 80


countries worldwide. What began as a small, family-operated soap and Candle
Company now provides products and services of superior quality and value to
consumers in 140 countries.

Spotlight On: Our New Orleans, Louisiana, Folgers Employees


What They've Done: In the aftermath of Hurricane Katrina's devastation, these
employees many of them suffering great losses of their own banded together to
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.

[38]

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.

If James Gamble and William


Procter hadn't married the Norris
sisters, P&G might not exist.

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.
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!
[39]

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 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.
Hamam
Launched in 1934 in India.
[40]

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 readyto-drink products. For mothers and children, Kissan is today one of the most
trusted brands in the country. Kissan continues to be a pioneer in the categories that
it operates in.
Annapurna Salt
Annapurna Salt, first introduced in 1997, was relaunched in 2001 with a
breakthrough technology, patented in India and several other countries. This
technology helps encapsulate iodine with salt. It thereby prevents the loss of
iodine from salt, either during its storage and transportation or cooking.
Iodine deficiency is a serious health issue in India. About 278 million people are
at risk of iodine deficiency disorders. Iodine deficiency not only leads to goiter,
but also has an impact on the mental development of growing children.
The International Council for Control of Iodine Deficiency Disorders (ICCIDD)
has endorsed Annapurna Salt. Annapurna has also taken initiatives to educate
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
[41]

global leader in ice cream - with a deep insight of the Indian market, to deliver a
range of superior quality products under its international brands.
Key launches include Cornetto, Feast, Viennetta, and a range of Sundaes, and also
exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone.
Kwality Wall's ensures that while each of its offerings is unique in taste and flavour,
they are also accessible to more consumers through breakthrough cost
reengineering and value delivery.
Lifebuoy
Making a billion Indians feel safe and secure by meeting their health and hygiene
needs is the mission of Lifebuoy.
The world's largest selling soap offers a compelling health benefit to the entire
family. Launched in 1895, Lifebuoy, for over a 100 years, has been synonymous
with health and value. The brick red soap, with its perfume and popular Lifebuoy
jingle, has carried the Lifebuoy message of health across the length and breadth of
the country.
The 2002 and 2004 relaunches have been turning points in its history. The new mix
includes a new formulation and a repositioning to make it more relevant to both
new and existing consumers.
Lifebuoy is now a milled toilet soap with a new health fragrance and a
contemporary shape. The new milled formulation offers a significantly superior
bathing experience and skin feel. This new mix has registered conclusive and clear
preference among existing and new users.
The new Lifebuoy is targeted at today's discerning housewife with a more inclusive
"family health protection for my family and me" positioning. Lifebuoy has made a
deliberate shift from the male, victorious concept of health to a warmer, more
versatile, more responsible benefit of health for the entire family.
At the upper end of the market, Lifebuoy offers specific health benefits through
Lifebuoy Gold and Plus. Lifebuoy Gold (also called Care) helps protect against
germs which cause skin blemishes, while Lifebuoy Plus offers protection against
germs which cause body pouder.

Surf Excel
A pioneaer in the Indian detergent powder market, Surf Excel has constantly upgraded
[42]

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.

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.

Head & Shoulders Conditioners

[43]

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

Tide Liquid
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[44]

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[45]

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[46]

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[47]

[48]

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 peoples minds. At the other
extreme are those who view corporate communications (particularly
advertising as a magic formula and an instant panacea for every corporate
ill. In reality it is none of these things. it is in fact, a management tool to
influence the outside world-the target group. So, the real significance of
building corporate image lies in preparing and consolidating a sound
global consumer base.
Every company wants to have a favorable image in the global market. In
case of HLL also, image-building plays the most important part in
determining its marketing strategy.
Building corporate image is
concerned with building confidence and credibility by helping your target
group understand you better. Familiarity in this case normally improves
acceptability of who you are and what you are doing. Ignorance, on the
other hand, can lead to mistrust, or even contempt in some situations.
Corporate image is built through more than one strategic means, and often
a combination of activities. For instance1.

Advertising corporate and even product

2.

Public Relationsexternal 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
[49]

performance, doing it the right way the first time. Its in this regard that
creativity in PR comes to have a lions share in the entire process of
corporate image building.
Creativity in PR means more than just pretty pictures and good copy. It is
building image with activities, which generate all-round impact and
visibility for the company. What and How is the task here. Creative
corporate advertising is one route.
With respect to positioning similarly, the image communication and image
building activity must to able to find a right niche in the minds of the
target group. The quality of the message, and activity, is vital for this.
Companies which benefit most from corporate image are those who take a
long-term view and commitment towards communication and the image of
their organization through it. HLL can be presented as a striking instance
of it.
Image and Identity
There may be nothing new in saying that the corporate image is in the eye
and the mind of the receiver. Yet it is worth saying again and again. An
organization transmits, on a sustained basis, messages to publics. It is the
reception of the message, which goes to create the intended image. In
other words, corporate communication is the process that translates an
identity into an image. Again, in brief, corporate image primarily refers to
the image that a company has acquired with the public whereas corporate
identity refers to the image a company strives to achieve, in order to build
to build a reputation with its publics.
In this context, decidedly, every company like HLL needs a mission. The
mission is, in fact, a framework for business and all its activities, the
value that drive the company to achieve the corporate goals. No less
important is the belief the company has in it. The mission is the glue that
holds the company together. Here, the PR and its communication
strategies come into distinct focus. If the mission and the objectives of
the organization have to succeed, the corporate body must communicate
short-term goals, long-range objectives and even the total mission of the
organization. Inadequate communications result in an ambiguous
corporate image within as well as outside and lead to breakdown in the
co-ordination of all contributing elements in an organization.
Dare To Think Beyond Advertising.
In present situation to address the "The soprano problem", advertisers
resort to shadow advertisement where the products become endemic to the
setting of the show. Where the products are shown being consumed or
brand name is exhibited in the background.
[50]

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 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".
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
[51]

entertainment business! Of course the ad budget of HLL is far bigger than


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

PUBLIC RELATION

Public relations practice is the deliberate planned and sustained


effort to establish and maintain mutual understanding between the
organization and its publics .
By: - Institute of Public Relation (British) 1948.
To understand the definition better it in important to know as to who does
the word publics refer to.
Public are : Shareholder
: Customers
: Employees
: Trade Unions
PUBLIC RELATIONS
Here we try to identity the distinguishing factors between Advertising and
public relations:
Advertising is a commercial persuasive activity aimed at promoting a
particular idea or a viewpoint product, or service, institution and so on
through the mass media.
As refined by the British Institution & Practitioners of Advertising: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 .
[52]

Public Relations demand more time and effort than advertising because
advertising is limited to special selling and buying tasks. For advertising
the basis jobs of conceptualizing, producing, space buying etc. Can be
delegated folly to agencies whereas such total hiring of agencies for
absolute Public Relation functions cannot be conserved.
Public relations are a long-term policy measure and are not built
overnight. It is also not free of cost, it is built over a period of time.
With public opinion against it nothing can succeed.
With public opinion on its side nothing can fail
- Abraham Lincoln
Public relations, taken as a component of management discipline, are of
comparatively recent origin. As a concept, it was critically evolved in
business and industry and subsequently spread to other areas of human
activity. Applicability of this profession in government and public
institutions like corporations, municipalities, universities, hospitals,
social service organization and professional institutions it truly immense.
Admittedly, even before the emergence of industry, business and
government, a public relation was in practice in peoples 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 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[53]

seated such popular misconceptions about PR can be reflected by the fact


the even now one comes across articles published in well-known papers
and journals airing such naive ideas about PR.
Again, PR is sometimes confused with publicity. Publicity is certainly
one of the instruments of PR but is would be as wrong to equate publicity
with PR just as it would be to equate the stethoscope with the practice of
modern medicine. To continue the analogy, PR seeks to diagnose the ills
of an organization in its relations with the public or any segment of the
public, it prescribes remedies and proceeds to administer them. It then
keeps a watch on the patient to see whether the remedies prescribed are
producing the desired effect so that the medicine can be changed if
necessary after evaluating the results. Again, as in medicine prevention is
considered more important than the cure, PR believes in maintaining the
good health of the corporate body -so that drastic remedies and bitter pills
may not have to be swallowed later.
Analogies may be useful in giving a general idea but can never be as
precise as a definition. PR which is now a well-established discipline
therefore needs to be defined so that we may be clear about what we are
discussing when we talk about PR. It is the attempt by information,
persuasion and adjustment to engineer public support for an activity,
cause movement or institution. Public relations as and applied social and
behavioral science is that function which - measures, evaluates and
interprets the attitudes objectives for increasing public understanding and
acceptance of the organizations 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
governments 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 bureaucratson your side. It envisages maintaining good links
with the government which will be of benefit to the company in its overall business
[54]

plans and operations. Public relations with the government in some ways are quite
difficult and demanding. It requires special planning and efforts for the
organization to be successful. A government, local or national, comprises many
ministries, departments, individuals and personalities. Public relations people have
to acquaint themselves with the working of the government, and the intricacies and
people involved at various levels, and then handle things accordingly to be able to
achieve what they have set out to achieve.
The government should not be looked at as an adversary. In fact, you should make
all efforts to help the government and support its activities and policies as far as
possible. Government leaders must be kept informed from your side about the
organizations activities and policiesespecially 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 mediaespecially 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 problemsespecially 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 strategybe selective in the choice of media, use only influential media
(especially publications in the Press), do not spread your communication too thin,
go for quality rather than quantity. Selective and in-depth coverage is what you
must aim at, as it is more effective and produces the desired results. let your
communication be complete honest, and backed with hard facts. The organization
must be able to live up to its claims and promises in media, otherwise you can be
in for further problems. The efforts made by HLL in this respect have been
orchestrated well to build image as well as to counter negative publicity.
FINANCIAL RELATIONS
With the growth of the Indian economy and the business sector, management of
financial promotions and PR have taken on a new dimension. HLL is making
special efforts to ensure the goodwill of their shareholders, investors, financial
institutions, and the rest of the financial community. This is being done in the
mass media and specialized media ranging from annual reports to special
brochures to audio-visuals, video films, and even corporate advertising in the Press
and television.
[55]

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 companys 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.
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 companys products
or services among consumers or other special groups, and generally protecting the
companys 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 todays 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
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.
[56]

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.

P&G: ADVERTISING STRATEGY

[57]

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 highquality oleochemicals.

P&G Commercial Products supplies a variety of businesses with P&G cleaning,


laundry, and coffee, tea and snack products.

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

P&G Food Ingredients help formulators create great tasting, better-for-you


products by developing functional ingredients that reduce fat and calorie profiles,
lower cholesterol effects and improve heart health.

The P&G Legislation & Regulatory group delivers accurate and timely
information to representatives of industry trade groups, legislators and government
agencies.
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.
[58]

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 initiatives via a network of academic, biotech and
pharmaceutical company collaborations.

[59]

[60]

Data analysis & Interpretation


Year wise net sales of FMCG Companies by
advertising:
YEAR
YEAR
2002-03
2002-03
2003-04
2003-04
2004-05
2004-05
2005-06
2005-06
2006-07
2006-07

Sales
Sales in
in Cr
Cr
10667
10667
9954
9954
10139
10139
8828
8828
11060
11060

Graphical Representation:

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 200607 the expenditure on advertisement and promotion activities was
more than Rs 1000 Cr.
[61]

Year wise expenditure on advertisement :


Expenditure in Rs (Cr)
2001-02

824

2002-03

842

2003-04

760

2004-05

836

2005-06

1008

Graphical Representation:

The expenditure by FMCG on advertisement has been increased from


year 2004-05 to year 2005-06.

Year wise Net profit of FMCG:


[62]

YEAR
YEAR
2001-02
2001-02
2002-03
2002-03
2003-04
2003-04
2004-05
2004-05
2005-06
2005-06

Profit in Rs (Cr)
Profit in Rs (Cr)
1641
1641
1755
1755
1771
1771
2197
2197
2400
2400

Graphical Representation

Year wise Total Revenue of FMCG:

[63]

Activities have shown direct impact on Net profit of FMCG.

YEAR

Total Revenue in Rs (Cr)

2001-02

10721

2002-03

10038

2003-04

10245

2004-05

10135

2005-06

11193

Graphical Representation:

Continues expenditure on advertisement has increased the revenue thereby


profit. As the graph shows continues increase in revenue.

Respective share of revenue of various segment of FMCG in


2001
[64]

Products

Revenue (%) in 2001

Shop & Detergent


Beverage
Foods
Others
Exports

35
15
10
15
25

Graphical Representation:

In 2001 the highest share in total revenue was by shop and detergent
section of HLL followed by export and beverage.

[65]

Respective share of revenue of various segment of FMCG in


2002
Products

Revenue (%) in 2002

Shop & Detergent


Beverage
Foods
Others
Exports

37
12
08
16
27

Graphical Representation:

In 2002 the highest share in total revenue was again by shop and
detergent section of FMCG followed by export and beverage.

[66]

Respective share of revenue of various segment of FMCG in


2003
Products

Revenue (%) in 2003

Shop & Detergent


Beverage
Foods
Others
Exports

37
11
06
18
28

Graphical Representation:

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
Shop & Detergent
Beverage
Foods

Revenue (%) in 2004


37
10
03
[67]

Others
Exports

18
32

Graphical Representation:

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.

Respective share of revenue of various segment of FMCG in 2005

Products

Revenue (%) in 2005


[68]

32

Shop & Detergent

10

Beverage

07

Foods

16

Others

34

Exports

Graphical Representation:

In 2005 the highest share in total revenue was by Export section of HLL followed
by Retailers & Advertising manager.

[69]

[70]

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.

[71]

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 companys
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.

[72]

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 its
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 HLLs presence in the global market, it points to a healthy
flexibility in the companys fundamental approach.
Another very striking aspect of HLLs 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.

[73]

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
REGIONS:-

MARKETING

IN

NORTH

AND

EASTERN

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 HLLs 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.

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FOCUS ON GIRLS:Boys seem to be using Clinic Plus more than the girls. Its very
surprising. Its 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.

[75]

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
Dont 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 HLLs 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 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.
[76]

Though, the facilities of transportation and logistics for the supply of raw
material dont 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.

[77]

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 Companys brand image
Conforms product quality
2) Do different media play role in changing customers perception regarding
the product?
Very much/ to such extent/ Not at all/ cant say.
3) In your opinion which is the best media to communicate advertisement?
Outdoor (posters/bill boards/vehicle)
Print
TV
Film
Radio
Direct mail
Window display in shops
Specialty(dairies/calendars)
[78]

4) Do you think celebrity advertisement is working or useful?


Very much/ To such extent/ Not at all/ Cant 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.

[79]

BIBLIOGRAPHY
BOOKS

Briggs,R.(1998)."TheBigPayoff".AdvertisingAge,Spring1998,

Rae,N.&Brennan,M.(1997)."Therelativeeffectivenessofsound
andanimationinwebbanneradvertisments".MasseyUniversity
MarketingBulletin,.

MAGAZINES

A&M

Business Barons

Business Today

Business World.

INTERNET WEBSITE

www.google.com

www.indiainfoline.com

www.hll.com

www.unilever.com

[80]

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