Evaluating Ads with decision filters

Brand filters
Is framing of brand benefits persuasive? Is expression of brand symbolism apt? Will the ad jell with target audience (language, outlook, behavior, needs)?

Communication filters
Is the ad simple and easy to grasp? Is it original and creative (dramatic, striking, strong)? Does it integrate product into story?

Evaluating Ads with decision filters

Campaign filters
Is it effective extension of campaign equities

Production filters
How much is the cost? How long will it take to produce? How confident are we that the creative treatment would be delivered on film/ photography? Do we have director/ photographer in mind?

Key Lessons
Choosing creative is a complex multi-dimensional decision which is strategic and taken at the top. It may not be a gut decision but complexity can be managed through systematic set of decision process/ filters Brand communication rely upon drama and metaphors to persuade which are rooted in consumer culture Evaluating an ad require perceiving the ad from multiple perspectives: from the brands historic equity, from consumers cultural understanding and campaigns communication code apart from product benefits Success of a communication campaign for consumer lifestyle products rely on perceived value created by symbolism Iconic brands draw on cultural knowledge, build stories that lead culture, speak rebels voice, use cultural authority to rebuild the stories,

Creative Brief

Whats the creative brief?

Objective/ role of advertising Target/ Person Profile Positioning/ Promise/ Proposition Current to Desired behavior / Insight Product Benefits/ Reason Why Emotional Benefits Brand Personality/ assets Mandatory aspects

Creative Brief - bolero

Role of Advertising

Person Profile
Insight Current Belief and Behavior Desired Belief and Behavior Our Promise

Reason Why
Our Voice Brand Personality

ROLE OF ADVERTISING
How will the client measure the success of this advertising?

To increase brand salience of Mahindra To dimensionalise

the image of Mahindra brand into tough and sophisticated, stylish and comfortable. To push offtake of

Bolero

PERSON PROFILE Whom am I talking to? Atul Sharma, 35 years of age. Lives in Jaipur. Self-made and successful. Has a marble quarry Graduate and English medium educated. English speaking. Is married with 2 kids. Kids are in English medium school. He has a computer in the house. His kids are Internet savvy. He is status conscious. Wants to get recognition from peers and family. Currently he owns a Zen. He goes to Makrana once or twice a week. Needs a second car for this purpose.

Another Example Car Consumer

Mr Shumit Malhotra, 33 years of age staying in Defence Colony a premium residential locality in New Delhi, He is married and has one son who has just started going to school. He works as a senior finance manager in an MNC. He is ambitious and aggressive, giving his best in all that he does and expects the same in return. His main motivation in life is to achieve a certain level of material well being and he has set for himself certain goals at different points of his life, which are almost like benchmarks of his success. He is used to a certain level of affluence and does not mind spending money for better things in life, but also makes sure that he always gets his money's worth. He owns a 3 year old Maruti Zen, which he bought when he got a new job. Driving is one of his passions and he loves his car almost like his second son. He also increasingly sees his car as an extension of his personality and feels that with his growing success he now needs a car that reflects his standing in life.

INSIGHT What is the single most relevant thing I must know about her to be persuasive? Wants a vehicle which is in his reach, yet gives him status, power and with-it feel.

Why do we need Insights?

They give the consumer a reason to listen to you
Advertising without Insight Telling Informing One way Communication Advertiser as Expert Stimulus Advertising with Insight Involving Connecting Two way Dialogue Consumer as Expert Response

Liril
Advertising Proposition
Liril provides you with the freshest bath experience ever

Simple Universally Recognizable Truth

Bathing is a refreshing experience

Unique Selling Proposition

Only Liril has the freshness of lime

Territory
Freshness

Accepted Consumer Belief

I will do anything to feel refreshed. Like have a glass of lemon juice . have a bath .

The Insight?
The only time when I can be me is when I have a bath. Thats when I love to pamper my body, my face, my hair. Its almost like the world outside doesnt exist, making my fantasies come alive

Insights
An insight is a true and fresh expression of the consumers experience of the brand It presents the brand from the consumers point of view, not the manufacturers While most insights relate to the brand proposition, they may equally relate to the issue/need or reason why/support

More than just a belief

Personal Connection

Personal Relevance
(Yes, the other day XYZ happened to me too)

Personal Identification
(Oh yes, I could have been the woman that said that)

Connection/Involvement
(Oh yes, and)

Interest/Freshness
(Id never thought of it like that, but now that you say it)

Example

FAIR & LOVELY

Men are attracted to women with fair skins

How to get it
Qualitative(Exploration, depth, feel) 1 x 1s Focus Groups In-house Visits Everyday observation
in-store watching friends/family personal experience

Laddering Technique Projective Techniques

Laddering Technique 5 WHY?

Detergents
Washes whiter So the clothes are cleaner So the clothes look better

Diapers
Has a stay dry liner So my babys skin stays drier So my babys happier

So my kids look clean and smart

So people can see that Im a good mother Ad: Surf with wash boosters

So Im happier
So we have better times together Ad: Pampers

CURRENT BELIEF AND BEHAVIOR

How does that person currently behave, and how would she explain that behavior in her own words?
He is not too keen on buying a Sumo. He wants to buy a second car to show that he has arrived in life. Also he will use this vehicle for his business travel. He is considering buying an Esteem or Qualis. "Mahindra is a down market brand. It doesn't have vehicles that are classy or stylish."

DESIRED BELIEF AND BEHAVIOR

How would you like her to behave, and how would she explain that behavior in her own words?
"Finally the Mahindras have delivered something which offers real style and comfort. The Bolero has got style, comfort and is very good looking. The Bolero will add to my status. My wife ad kids will love this vehicle. My trips to Makrana will be pleasurable.

OUR PROMISE What will you say to her to affect that behavior? A stylish vehicle that makes you feel powerful and in control.

Power to rule the city.

The power within - tough stylish and in control.

(Never before has toughness been so sophisticated.)

(A rare combination of power and style)

REASON WHY

Why will she believe you?

Front looks, Creature comforts Legendary Mahindra toughness

BRAND ASSETS
What brand properties and equities currently exist?

Legendary Mahindra toughness.

Brand Personality: Tough, confident, witty, young, not married, free Manly, but not a stud. Not macho, but tough and

powerful. A man in control.

May have tones of sensuality and romance. Does things his way.

"Pierce Brosnan".

Now lets see the Campaign based on the Creative brief

Gillette Dry Idea (A)

Dry Idea Problem

DI Sales Revenue
DI Sales revenue
60000

50000 48102 45088 40000 34997 30000 DI Sales revenue 41139

20000

21785

10000

0 79 80 81 82 83

Category Growth Trends

Market size (Units)
510000 505000 500000 495000 490000 485000 480000 475000 Market size (Units) 506000

470000
465000 460000 455000 79 80 81 82 83

Roll-on Share
Roll-on share
36 35 34 33 32 31 30 29.6 29 28 27 26 79 80 81 82 83 31.2 Roll-on share 34.2

35
34

DI Share
16 14.6 14 14 14

12

12.1

10 8.7 8 DI Share of D/AP DI Share of Roll-on 6 4.8 4 3.1 2 4.3 4.5

4.2

0 79 80 81 82 83

Advertising Spends
10000 9000 8000 7000 6362 6000 5000 4000 3000 2000 1000 7111 8957

6598
5762 Media Production

405
0 79 80

684
366 81 196 82 83 249

Key Issues
Whats the real Problem?
Deo market and Dry Idea What drives Deo business from consumer point of view

Client and Agency positions on the creative problem? Is the partnership going forward? What should Carol & the Bran team do?

Is it a good category to be in?

Form driven market. No cross-form switches External factors influence form preferences Roll-on share has come down from 32.3% to 29.6% between 1978 to 1983 Clear shift towards sticks and solids

Deo market & Dry idea

506 mn. units in 1983, $1 bn. sales 75% anti perspirants in which Dry Idea competed Aerosols( 80% to down 25%), Roll on (30%), Sticks (16%) and Solids (22%) 6 key players dominate. Gillette #2 in overall share and #3 in roll-on market share Dry idea 4.2% market share which is about 26% of Gillettes roll-on business and just 10% of PCD sales

 P&Gs share in roll-on market has actually increased by 0.5 share points (table B) Dry Idea shipments about 23 million units at $50 million manufacturer's revenue at an avearge $2.18 per unit. Somewhat more expensive than the average market prices (Exhibit 4)

No brand nourishment?
Advertising to Sales ratio from 1978 to 1983 moved down from 54.1% to 12.5% whereas dry idea share has moved from 1.4% to 4.2% Share of Spends = 121 mn./ 6 mn. = 5%. Little over share of market Category spends increased by 13% (pg. 6)

Creative Problem?
1983 Copy test (advertising Pre-test) results None of the new ads match the scores of even Spokesman and the 1983 and 1984 norms on recall. All you feel is dry closer to norms but much less than Spokesman

What should Gillette Do?

Fire BBDO Give another chance to BBDO Bake-off. Competitive pressure.

Client Positions
None of the BBDO ads meet the norms All they care about their new commercials They havent come up with good idea in last 5 years We dont have their best people/ talent on the brand We deserve 5 share points If we had better ads, we would have better sales For all the money we give them ( in creative exploratory, research to support and of course commissions)

Agency Positions
Dry Idea Brand has no strategy All they care about sales and not long term brand image They dont give us room/ space to do our job All they care about is Spokesman If they had a solid, it would sell They are lucky to have 4 share points We dont make normal commission (15%) in this business

Gillette/BBDO partnership
Significant disappointment in brands performance and participants positions have been hardened over time Gillette ultimately holds the money and is not an equal partnership Partnership is NOT working

IMC System
Regulating Organizations
Government (M o I&B) Industry Associations (AAAofI, ASCI, Ad Clubs) Consumer Organizations

Facilitating Organizations

Advertiser

Marketing Research agencies Communication agencies Media Companies

Target Consumer

The Advertising Agency

And its role

The Origins
Volney B Palmer, often identified as having established the first advertising agency, was a media broker. The advertiser made his own ads, Palmer released them in Media and in the bargain actually got paid by the publishers. Advertising agencies had their origins in the media function.

History - its evolution

Began as media agents in early 1900s Moved on to become program producers for radio Offered creative services there after Moved on to give value added services like positioning, brand building thereafter Diversified into integrated communications thereafter Now getting unbundled with the arrival of media independents Will they come together again?

The Advertising Agency

Understanding the business & its role in clients business

What does an agency do?

An advertising agency
Plans (advertising and communications strategy) Prepares (Creative development and execution) Places (Media planning, buying and operations) Pays for (paying of advertising media and billing to advertisers) an advertisement/ campaign.

An agency which provides all above is a full-service agency

Other agency types

Limited service agencies
Brand consultancies (Chlorophyll, Brand alchemist, Quadra) Creative boutiques (RMG david, Vyas Gianetti, ANC) Media AORs (Initiative, Mindshare, Starcom, Madison, Loadster, Carat)

Specialist Advertising Agencies

Full-service but in specialized sector Specialized communication tools eg. Healthcare (S&H, Contract health, Euro RSCG life), Financial (Pressman, Clea, Concept)

In-house agency

Agency Services
Account services
The link between agency and client Managed by the Account Executive

Marketing services
Planning department may develop brand marketing startegy Research department may design and execute research programs Media department may analyze, select and contract media resources

Creative services
Creation and execution of ads Copywriters, artists, other specialists

Media Services
Media Planning & Buying

Production Services

How does an agency grow?

Organic
More spends from current clients/brands New brands from current client New media (outdoor/rural) New disciplines(PR/DM etc)

New clients
Invitation Intelligence - Media Personal Contact Cold Call

Acquisitions and Mergers

International alignment Buyout

What does an agency do?

An advertising agency
Plans (advertising and communications strategy) Prepares (Creative development and execution) Places (Media planning, buying and operations) Pays for (paying of advertising media and billing to advertisers) an advertisement/ campaign.

An agency which provides all above is a full-service agency

Global Advertising/ Communications Groups

WPP Group ($15 Bn.) JWT, O&M, Y&R Omnicom ($12 Bn) BBDO, TBWA, DDB Needham Interpublic ($7 Bn) McCann Erickson, Lowe, FCB Publicis ($6 bn.) Leo Burnett, Publicis, Saatchi & Saatchi Havas Euro RSCG, Arnold Dentsu

Agency Family Tree 2010

Agency Organization Classical Structure

Client/ Marketer
Account Planners Research Team Client Servicing Team

Advertising Agency Structure

Media Planners

Production Planner Copy & Art team

Agency Organization Client/ Intermediate Phase Marketer

Account Planners Client Servicing Team

Research Team

Advertising Agency Structure

Production Planner Media Planners

Copy & Art team

Moved to specialists

Agency Organization Current

Client/ Marketer
Types of Planning product & brand consumer insights Account Planners Client Servicing Team Digital Specialist Media Specific Specialists

Sectoral Specialists Healthcare IT Tourism

Advertisement/ Advertising Campaign

Copy & Art team

Functional Specialists Research Media Production

Agency Organization Classical Relationships Client/

Marketer
Promotion agencies Account Planners Client Servicing Team

Research agencies

Research Team

Production Planner

Advertisement/ Advertising Campaign

Media Planners

Printers

Copy & Art team

Media sellers

Film producers

Agency Organization Current Relationships Branding Design

consultants consultants Research agencies Client servicing

Film producers

Creative team Client Printers Brand team Research Corp Com Sales Marketing Account Planning

Promotion agencies

Production

Film producers

Media sellers

Media Planning

Role of Brand Manager

Develop Brands Marketing Plan including financials Initiate Product and Communication development Evaluate output from R&D and Agency with consumer input Approve final output Deliver brand results (volume, MS and perception targets) Accountable to the Marketing Head and Sales team

 Paid for spending clients money Seen to have a plush cabin job, especially by the sales field force Like Client service counterpart, must be a jack of many trades but master of none; lots of accountability but little authority (except agencies and suppliers) Communication is important and yet a smaller component of overall mix

Role of Client Servicing/ Account Management

Understand clients business and marketing problem/needs Take brief Develop communication strategy/brief Initiate work within agency Motivate partners to generate great ideas Present and sell ideas Co-ordinate Execution Deliver final finished product Collect money and meet business targets Be day to day contact with client and keep relationship healthy

Role of Account Planning

Understand clients marketing problem Bring deeper understanding of the target audience- her life, needs, wants and desires, dreams and aspirations, tears and fears Develop alternative consumer insights relevant to the problem at hand Help brand communication make more unique connection with the consumer Develop Creative Brief & Inspire/ Direct Creative

Role of Creative
Take creative brief Develop alternative ideas Present and sell ideas Supervise execution Ensure end product is of high quality

Role of Production
Understand the idea developed to solve the problem Find the best resources to translate that idea into execution Co-ordinate with resources and supervise execution Deliver end product on time, within budget

Agency Compensation

Agency Compensation
Media commissions Mark-ups on advertising production Labour-based fee Percentage of sales Modified commissions

15% media commissions

Strengths
Encourages agency to produce superior work at lowest internal expense Simple to use Well accepted globally

Weaknesses
It ignores economies of scale in agency operations and agencies are overpaid Agency prone to propose mass media solutions even when they are not needed Agency negotiates with media and get more than 15% in some cases so clients should also squeeze. There is no difference in commissions and fees if client agrees to pay 15%

15% media commissions

When to use 15%
When communications largely involve mass media (FMCG and other consumer goods) When budgets are stable Use modified commission

Percentage Mark-ups
17.65% markup on costs of services purchased by agencies from outsiders such as printing, photography, market research match 15% commissions on other costs

Modified Commissions
Flat rates below 15%
Between 12% to 8%.

Sliding scale
When advertising accounts are large enough to produce economy of scale for agency, use sliding scale.

Sliding Scale
14

12

10

8
Comm 2 6 Comm 1

0 0 20 40 60 80 100

After Rs. 25 Crs.,For every 10 Crore Spend, reduce commission by 3%

Labor-based fees
Fixed Fees or Cost-plus Cost-Plus = Direct Labor cost + Overheads + Profit Strengths
Cost of agency varies directly with actual amount of service. Thus it is rational Provides client control over agency service costs

Weaknesses
Complicated and difficult to administer. Demands elaborate record keeping Intrusion by advertiser into agency management Diverts attention of client and agency from advertising to accounting This considers creation of advertising ideas to be formalized process

Performance-based
Single or multiple criteria usually sales, marketshare, awareness, perceptions Strengths
Agencys focus on IMC and not on expensive commissionable media More accountability

Weaknesses
Possible conflicts on measures Advertisings effect on sales?