See More, See Clear

Evaluation of impact of Advertisement in awareness and demand of the
commodity product: Glass




   ...
See More, See Clear

                        June, 2009




2 | Summer Project Report
See More, See Clear

Evaluation of impact of Advertisement in awareness and demand of the
commodity product: Glass




   ...
See More, See Clear




              Sinhgad Institute of Management
                       Vadgaon, Pune
               ...
See More, See Clear




                               Certificate of Approval
       We approve this Summer Project Repor...
See More, See Clear




                Certificate from Summer Project Guides

This is to certify that Mr. Dev Masand a s...
See More, See Clear




                             ACKNOWLEDGEMENT

       I am elated to extend my gratitude to the man...
See More, See Clear




Table of Contents
Table of Figures...................................................................
See More, See Clear

  Background............................................................................................
See More, See Clear




Table of Figures
Figure   1: Domestic Float Glass Sales..............................................
See More, See Clear




List of Tables
Table 1 : Domestic Float Glass Sales..................................................
See More, See Clear




Abbreviation

SGG                                          SAINT GOBAIN GLASS INDIA LIMITED

AIS  ...
See More, See Clear




Abstract

Asahi India Glass Ltd. (AIS) is the largest integrated glass company in India, manufactu...
See More, See Clear

Scope of the Study

The study will be conducted in India with limited scope of A and B class cities w...
See More, See Clear

Research is going to be descriptive as well as applied in order to achieve the desired objectives.
Th...
See More, See Clear



Recommendations

   •   The commodity market has very less involvement of the end consumers in the ...
See More, See Clear




Industry Overview

Float Glass Industry in India
India with more than one billion people, one sixt...
See More, See Clear

use of glass. The switch from low quality sheet glass with limited range and thickness to
the sophist...
See More, See Clear

December 1994. It started off as a joint venture between the Tatas and Asahis of Japan.
With the exit...
See More, See Clear

plant are from Europe and America and Yaohua Glass Group of China.
Sejal Glass – another prominent ma...
See More, See Clear

isn’t all roses for Indian glass industry, problems like the overcapacity of raw glass (and
a project...
See More, See Clear

           2005-06                        1402             14.22

           2006-07                 ...
See More, See Clear



Gold Plus Float Glass Industry Ltd.           400

Sejal Architectural Glass Ltd.                55...
See More, See Clear

                                             5

 Export sales on an average/day              350

   ...
See More, See Clear


                         Table 4 : Market Share




Figure 5 : Domestic Market Share




25 | S u m ...
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Company Profile
AIS is the largest integrated glass company in India, manufacturing a wide range o...
See More, See Clear

AIS Float Glass is the leading manufacturer of international quality float glass in the country.
Prio...
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Mission
AIS’s Mission is “JIKKO” – Execution for Excellence

With major investments in place, the ...
See More, See Clear

with 12% global market share in the flat glass segment and 30% global market share in the
automotive ...
See More, See Clear

AIS Auto Glass has state-of-the-art plants located at Rewari-Haryana, Roorkee-Uttrakhand
(North India...
See More, See Clear



Product Range

  AIS Auto Glass is India's largest manufacturer of automotive safety glass. The uni...
See More, See Clear

   Reva Motors                                   100
   Honda Motors                                 ...
See More, See Clear




AIS Glass Solution
AIS Glass Solutions is the face of the architectural glass processing business ...
See More, See Clear




AIS Float Glass
OVERVIEW

AIS Float Glass is a premier manufacturer of international quality float...
See More, See Clear




35 | S u m m e r P r o j e c t R e p o r t
See More, See Clear



Application Of AIS Glass

       With its wide product range and its status as the undisputed quali...
See More, See Clear

       Balustrades: The use of AIS Float Glass in balustrades gives a graceful effect to the
       s...
See More, See Clear


   •   Automotive Safety Glass Manufacturers

   •   Processors

   •   Dealers and Retailers

   • ...
See More, See Clear

Quality

       Owing to the greater degree of quality control in the furnace conditions, the final p...
See More, See Clear




Control

       Because the product passes horizontally from one chamber to another, a greater deg...
See More, See Clear




Market Research

Background
       In the present era of cut throat competition there is a very li...
See More, See Clear

media used, etc., all reflect tactical aspects of the branding process. However, these are only
vehic...
See More, See Clear

from your brand. Once credibility in your brand is lost, it is near impossible to regain it. Just see...
See More, See Clear




Introduction
Can Advertising Contribute?

       On the heels of what seems to be a never-ending s...
See More, See Clear

as the Deutsche Bank data contend, major advertisers such as Coca-Cola, Heinz, and Colgate are
realiz...
See More, See Clear

their targets and reexamine their strategies. Some time ago, companies began shifting their
emphasis ...
See More, See Clear

still defining what works according to an outmoded customer acquisition model. They are
looking at wh...
See More, See Clear

and exploit attributes of their beers, instead of the weird people who drink their beers, they
would ...
See More, See Clear

costs have increased significantly from only 20 per cent of the total corporate costs 50 years ago
to...
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school of research, we believe that the amount spent on different media such as broadcasting,
print, ...
See More, See Clear

the resources to different marketing efforts in a better manner, so as to improve the effectiveness
o...
See More, See Clear

coefficient is 7.36. This shows that customer satisfaction has a positive impact on shareholder
value...
See More, See Clear

behaviour of a sample of consumers (via retail scan cards). However, while providing useful
insights,...
See More, See Clear

approach suggested in Reference [7] can be used when advertising appeals are ambiguous and
need to be...
See More, See Clear

advertising spending. Hanssens and Ouyang [13] empirically examined hysteresis in the
computer printe...
See More, See Clear

advertising/marketing expenditures on financial metrics (see for example Reference [29]). kFor
exampl...
See More, See Clear

average exposures per week per person, the awareness index drops to only 50. Thus, an effect of
incre...
See More, See Clear

the effect of competitive interference on recall, recognition, or brand evaluations rather than the
a...
See More, See Clear

(2004, p. 76) note that marketers have not been held accountable for showing how marketing
adds to sh...
See More, See Clear

       ➢ Give your customer the reason to keep buying from you
       ➢ Attract Must -Have customers ...
See More, See Clear

predictor of brand performance. Thus, we conclude that advertising and brand value benefit the
brand a...
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  1. 1. See More, See Clear Evaluation of impact of Advertisement in awareness and demand of the commodity product: Glass By Dev Masand PGDM (HR) Sinhgad Institute of Management Vadgaon, Pune 1 | Summer Project Report
  2. 2. See More, See Clear June, 2009 2 | Summer Project Report
  3. 3. See More, See Clear Evaluation of impact of Advertisement in awareness and demand of the commodity product: Glass By Dev Masand Under the guidance of Mr. Alok Agarwal Zonal Head- West Zone Prof. M.M. Marathe (Sales & Marketing) College Project Guide Asahi India Glass Ltd. Mr. Shailesh Ranjan Area Manager (Head Office) (Sales & Marketing) Asahi India Glass Ltd. 3 | Summer Project Report
  4. 4. See More, See Clear Sinhgad Institute of Management Vadgaon, Pune June, 2009 4 | Summer Project Report
  5. 5. See More, See Clear Certificate of Approval We approve this Summer Project Report titled " Evaluation of impact of Advertisement in awareness and demand of the commodity product: Glass " as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post Graduate Diploma in Management ( HR) for which it has been submitted. It is understood that by this approval we do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Summer Project Report only for the purpose it is submitted. Summer Project Report Examination Committee for evaluation of Summer Project Report Name Signature 1. Faculty Examiner 2. PGDM Summer Project Co-coordinator 5 | Summer Project Report
  6. 6. See More, See Clear Certificate from Summer Project Guides This is to certify that Mr. Dev Masand a student of the Post Graduate Diploma in Management (HR), has worked under our guidance and supervision. This Summer Project Report has the requisite standard and to the best of our knowledge no part of it has been reproduced from any other summer project, monograph, report or book. Faculty Guide Organizational Guide Designation Designation SIOM Organization AddressDate Date 6 | Summer Project Report
  7. 7. See More, See Clear ACKNOWLEDGEMENT I am elated to extend my gratitude to the management of Asahi India Glass Ltd. for providing me an opportunity to undertake the summer internship program in their organization. The knowledge gained from the organization during the project is of immense help that enables me to understand the practical applications of the Business concepts in consonance with academic learning. I owe sincere thanks to my Project Guide Mr. Alok Agarwal-Zonal Head ( Sales & Marketing- Mumbai) for guiding me towards every step in completion of this project. And a special thanks to Mr. Shailesh Ranjan, Mr. Anish, Mr. Sumeet for sharing their knowledge. I would like to thank Mr. Milind Marathe for guiding me at every step during Summer Internship. And in the end I would like to thank all the House owners, Dealers Sales Executive team and drivers without whom this project would definitely have been incomplete. Dev Masand PGDM(HR) SIOM 7 | Summer Project Report
  8. 8. See More, See Clear Table of Contents Table of Figures.........................................................................................................5 List of Tables..............................................................................................................5 Abbreviation...............................................................................................................5 Abstract......................................................................................................................5 Industry Overview......................................................................................................5 Float Glass Industry in India....................................................................................5 User Segments.......................................................................................................5 Major Producers......................................................................................................5 New Entrants..........................................................................................................5 Current capacity versus demand in India................................................................5 Future Prospectus...................................................................................................5 Current Scenario.....................................................................................................5 Market Share...........................................................................................................5 Company Profile.........................................................................................................5 Vision and Mission...................................................................................................5 Vision...................................................................................................................5 Mission.................................................................................................................5 Guiding principles...................................................................................................5 Collaborators...........................................................................................................5 SBU’S......................................................................................................................5 AIS Auto Glass......................................................................................................5 AIS Glass Solution................................................................................................5 AIS Float Glass.....................................................................................................5 Market Research........................................................................................................5 8 | Summer Project Report
  9. 9. See More, See Clear Background.............................................................................................................5 Introduction............................................................................................................5 Problem Formulation...............................................................................................5 Literature Review....................................................................................................5 Gaps in The Literature.........................................................................................5 Time Frame................................................................................................................5 The Research Problem............................................................................................5 Research Objective..............................................................................................5 Null hypothesis....................................................................................................5 Alternative hypothesis.........................................................................................5 Scope of The Study..............................................................................................5 Research Design.....................................................................................................5 Research Methodology........................................................................................5 Sample size..........................................................................................................5 Research Instrument...........................................................................................5 Tool of Data Analysis (SPSS)................................................................................5 Results and Conclusion..............................................................................................5 Recommendations.....................................................................................................5 REFERENCES...........................................................................................................5 Appendix -1.............................................................................................................5 Appendix -1 9 | Summer Project Report
  10. 10. See More, See Clear Table of Figures Figure 1: Domestic Float Glass Sales.........................................................................5 Figure 2 : Sales Growth of Float Glass........................................................................5 Figure 3 : Company wise capacity of production........................................................5 Figure 4 : Break-up of Capacity..................................................................................5 Figure 5 : Domestic Market Share..............................................................................5 Figure 6: Awareness of Glass brands.........................................................................5 Figure 7: Glass advertisement saw by people............................................................5 Figure 8: Awareness Vs Particular brand....................................................................5 Figure 9: Whether go for buying................................................................................5 Figure 10: Purchase of glass......................................................................................5 Figure 11: Importance of brand..................................................................................5 Figure 12: Awareness Vs whether go for buying........................................................5 Figure 13: Time Taken at Retail Counter....................................................................5 Figure 14: Preference for particular brand.................................................................5 Figure 15: Decision to choose any brand...................................................................5 Figure 16: Influencer of Recommendation.................................................................5 Figure 17: Ad recall....................................................................................................5 Figure 18: Ad influence on action...............................................................................5 Figure 19:Parameters for buying glass.......................................................................5 Figure 20: Awareness of application of glass.............................................................5 Figure 20: Awareness of application of glass 10 | S u m m e r P r o j e c t R e p o r t
  11. 11. See More, See Clear List of Tables Table 1 : Domestic Float Glass Sales.........................................................................5 Table 2 : Total Capacity.............................................................................................5 Table 3 : Break-up of Capacity...................................................................................5 Table 4 : Market Share...............................................................................................5 Table 4 : Market Share 11 | S u m m e r P r o j e c t R e p o r t
  12. 12. See More, See Clear Abbreviation SGG SAINT GOBAIN GLASS INDIA LIMITED AIS ASAHI INDIA GLASS LIMITED GGL GUJRAT GUARDIAN LIMITED MODIGUARD GUJRAT GUARDIAN LIMITED TPD TONNES PER DAY MT METRIC TONNES Ad ADVERTISEMENT 12 | S u m m e r P r o j e c t R e p o r t
  13. 13. See More, See Clear Abstract Asahi India Glass Ltd. (AIS) is the largest integrated glass company in India, manufacturing a wide range of international quality automotive safety glass, float glass, architectural processed glass and glass products. AIS is jointly promoted by the Labroo family, Asahi Glass Co. Ltd., Japan and Maruti Suzuki India Ltd. AIS have the following three Strategic Business Units (SBUs): • Automotive Glass Unit – AIS Auto Glass • Float Glass Unit – AIS Float Glass • AIS Glass Solutions Ltd – AIS Glass Solutions The Indian Glass Industry is still at nascent stage and it is rapidly developing. The glass industry is very organized. The business environment is getting more competitive by the entry of new players beside the three major companies as Saint Gobain, AIS and Modiguard. Problem statement The impact of advertisement on the demand of commodity product specifically Glass is to find out. India is the only country where glass as commodity product is being advertised on TV. But their effectiveness in impacting consumers mind for using more glass is not clear. How the ad affects the market share and perception of the glass in the mind of consumers is to be figured out. 13 | S u m m e r P r o j e c t R e p o r t
  14. 14. See More, See Clear Scope of the Study The study will be conducted in India with limited scope of A and B class cities where 80% (building material) commodities are sold. Primary focus of the study will be on Glass. The most of the survey is limited to Mumbai and nearby city around it. Literature survey This is the most researched topic and various methods were adopted to check the effectiveness of advertising by different researchers. But that previous research has not specifically measured the impacts of advertising and brand value, and their joint effect, on firm performance for the glass kind of commodity product. We could not find the study which talks the likeable attributes in commodity products like glass. What exactly customers are looking for in a glass? By examining the effects of advertising and brand value, our work contributes to the existing literature. The Research Problem The research problem is to find out the impact of advertisement on demand of commodity product specifically glass. Research Objective Based on the problem statement, the research objectives are: • To find out whether consumers are really involved in Glass buying decision if yes then to what extent? • To find out, Are consumers really aware of any Glass or cement Co, brand or Glass products? • To find out Does advertising has any impact in the minds of consumers? • Can the advertising be measured or connected with a equation to the top and bottom line of the company. 14 | S u m m e r P r o j e c t R e p o r t
  15. 15. See More, See Clear Research is going to be descriptive as well as applied in order to achieve the desired objectives. The null hypothesis and the research hypothesis has been developed keeping assumption that the research will be specifically for the commodity product glass and keeping all the factors affecting the glass busying constant other than advertisements. The null hypothesis and alternate hypothesis is prepared to prove the research objectives. After the research study we should be able to judge the above hypothesis by accepting or rejecting it. The result will tell us about the effectiveness of the advertisement on glass (commodity product) and should also explain the awareness on the different glass brands. The Research Design Research is going to be descriptive as well as applied in order to achieve the desired objectives. Most of the objectives will be derived from the primary data after the survey. Focus group, stratified sampling technique in A and B class cities particularly Mumbai and its nearby cities will be surveyed. Research approach In this study, both sample survey and statistical approaches will be applied to collect data and establish the relationships between variables of interest. Sources of data Both secondary (documents and records) and primary (a sample survey of customers and channel partners in this case) data sources will be used in this work. Research instrument The structured questionnaire will be used for the survey. The SPSS tool is being used for the analysis purpose. The complete research study will be done in 8 weeks parts. 15 | S u m m e r P r o j e c t R e p o r t
  16. 16. See More, See Clear Recommendations • The commodity market has very less involvement of the end consumers in the buying process , hence the company should push dealers and retailers through different schemes , gifts and by giving them awards of “Best Retailer of the Year” and “Best Dealer of the Year” awards. The visibility at the retail counter should be increased by giving them pad, cutting tools to carpenters via retailers having AIS inscribed on it. 1. The companies can provide booklet containing samples of glass to carpenter to push their products and increase their brand awareness. They can organize some kind of training on new design to carpenters. They should distribute danglers, calendars to retailers shop. 2. They can put their videos on “You tube “to increase the awareness. The company should project their positioning statement “See More, See Clear “in their advertising media. 3. The company can direct its advertisements through different channels towards these functional benefits of glass. They should organize meets and exhibition with retailers, The mode of communications like PR, sponsorships to events will be good method to create the awareness. 4. The advertisements activities should be targeted on the middle segment. The awareness can be increased by through tie-ups with the social society/community like BMC and CARE to increase the awareness level among the middle income category. 5. They can also have the tie-ups with the known builders and architects to advertise their brands on their websites. Different festivals should be targeted for the awareness. 16 | S u m m e r P r o j e c t R e p o r t
  17. 17. See More, See Clear Industry Overview Float Glass Industry in India India with more than one billion people, one sixth of the world’s total population has become an attractive destination for investment in Glass Industry for some time, it contributes around (6 %) one sixteenth of the world’s total Gross Domestic Product. It is one of the largest economies of the world that had a middle-class consumer market in excess of 300 million people. With increasing purchasing power and development of service sector, India is definitely on the radar of all the glass manufacturing companies. Float glass Industry in India is relatively new; the first float glass plant was established as recently as 15 years back. In this period India has emerged an important player in float glass production and today there are six float lines in operation and five new lines are at different stages of completion. It goes without saying that the rapid increase in demand during the late 1990s due to construction activities, in addition to provoking a cutback in exports, charmed some international firms which now are the major producers of float glass in the country. India had been using sheet and lower quality float glass through ages. Secondary processing was negligible with the majority of glass being installed in basic, monolithic form such as casting glasses. Until 1992, only sheet glass was being manufactured in the country, with a limited quantity of float glass being imported. In 1993, the first float glass plant was set. Since then new varieties of float and sheet glass capacities have been added. Against decades of old practice of casting glass in sheets over plain surfaces, the technology of float glass had brought about a significant change in the production and 17 | S u m m e r P r o j e c t R e p o r t
  18. 18. See More, See Clear use of glass. The switch from low quality sheet glass with limited range and thickness to the sophisticated float glass took place in just a decade. Totally, the flat glass industry grew by about 90% between 2000 and 2007, resulting in a compound annual growth rate of 11%. The per capita consumption of glass, which was 0.41 kg in 1999, reached 0.80% kg in 2007. The demand for flat glass in India has increased at an average rate of 12 percent to 15 percent each year for the past five years. Respective market share of float and sheet glass is 89 percent and 11 percent. However, the greater proportion of sheet and lower-quality float capacity will gradually phase out and be replaced with high-quality float. The two main consuming sectors of flat glass in India are the construction and automotive industries, both of which have been experiencing hyper growth for the last five years. User Segments Eighty-three percent of the glass produced is used in the construction industry, 15 percent in the automotive industry and 2 percent in miscellaneous industries such as furniture and photo frames. The automobile industry, four-wheelers, has registered 18.6 percent growth between January and November 2007. The construction sector is growing around 12 percent per annum. India exports about 13,000 tons of glass per month to the Middle East, African countries, Europe and South America. The rapid increase in the demand for flat glass in the domestic market has resulted in a cutback in exports by as much as 60 percent in the last couple of years. Major Producers The major producers of float glass in India are three foreign joint ventures and an Indian company: Asahi India Glass Ltd Taloja, Maharashtra, Roorkee, UP; Asahi India’s two plants produce 500 tons and 750 tons per day. Asahi India Glass Ltd. It started operations in 18 | S u m m e r P r o j e c t R e p o r t
  19. 19. See More, See Clear December 1994. It started off as a joint venture between the Tatas and Asahis of Japan. With the exit of the Asahis in 2003, it was taken over by Asahi India Safety, the automotive glass manufacturing company. The merged entity is known as Asahi India Glass Ltd. The company started a new float plant with a 750-ton capacity on Jan. 1, 2007 at Uttaranchal in North India. Saint-Gobain Glass India Ltd., Sriperumbudur, Tamil Nadu; Saint-Gobain’s two plants produce 550 tons and 700 tons per day. It started operations in 2000 and is India’s largest capacity float plant.It is a 100 percent subsidiary of the Saint-Gobain Group Gujarat Guardian Ltd., Ankleshwar, Gujarat, Gujarat Guardian, the first company to set up float glass plant in India produces 550 tons per day; It is a joint venture between Guardian Industries International Corp. of the United States and India’s Modi Group. Triveni Glass in Allahabad produces 200 tons of float glass per day. It’s a mini float plant based on Chinese float-glass technology. New Entrants Other than these four established players, a few domestic companies too are venturing in Float glass production; there float lines are at various stages of completion. All the three new players are related to glass industry. Gold Plus Glass Limited- Gold Plus glass is a New Delhi based glass processor, and has a significant market share in processing glass industry, announced that it’s Roorkie based latest float glass manufacturing plant of Gold Plus, would start production in June, 2008. The furnace may be fired on any suitable day in June; 2008.The estimated cost of this project is approximately Rs.400 Crores in the first phase. The capacity of this float glass production line would be 460tonnes per day. This float glass production line will produce clear and green tinted glass from 2 to 19mm thickness. Most of the machineries for this 19 | S u m m e r P r o j e c t R e p o r t
  20. 20. See More, See Clear plant are from Europe and America and Yaohua Glass Group of China. Sejal Glass – another prominent manufacturer of value added glass, based in Mumbai ( Western Coast) has ambitious plans to set up a Float Line. The factory site is at Bharuch, for which the construction has already begun and production will commence from March 2009. The plant will undertake manufacturing of Clear and Tinted Glass HNG Float glass - Hindustan National Glass company, the leading manufacturer of container glass in India, made the announcement of setting its float glass plant in Dec. 2007, in Halol, Gujarat. Capacity of this line will be 600 Ton/day and is expected to be on stream by middle of 2009. In its press release the company stated that equipments would be sourced from European suppliers. Current capacity versus demand in India An excess capacity of raw glass in the industry was experienced in the beginning of 2006. This excess capacity could become larger in the years to come if current investment plans see the light of day. In 2007, the excess capacity was four times that of 2006, and in 2008 it could be six times that of 2006. This is assuming demand continues to grow at the current double-digit pace. It is interesting to note that the cumulative profit of flat-glass manufacturers in India is still in the red. Future Prospectus The construction and automotive industries are the most important consuming sectors, almost 80 million square feet of land in India is earmarked for shopping malls, taking into consideration Special Economic Zones and Corporate offices, there is an immense opportunity in Indian Glass industry. Nowadays, taking climate, safety, sound attenuation, energy conservation and aesthetics into consideration, builders are opting for more glass in their construction. The glass revolution is also taking place in the automotive industry which is predicted to grow at more than 15% till 2012. Anyway, it 20 | S u m m e r P r o j e c t R e p o r t
  21. 21. See More, See Clear isn’t all roses for Indian glass industry, problems like the overcapacity of raw glass (and a projected surplus of processed glass); Chinese competition (in spite of anti-dumping duties) and the lack of codes of standards threaten Indian glass industry. As far as overcapacity concerned, analysts say that the supply will far exceed demand at least until 2009. Excess capacity, increased competition and the development of a regulatory framework are the real future challenges for the Indian glass industry. Current Scenario The domestic glass industry and trade has been progressing at a consistent impressive rate of growth of 12-13% per annum during the last nine years. However this progress has come to a rude halt in the fourth quarter of the current financial year 2008-2009 and the rate of growth has turned negative. During the last financial year 2007-08 all the three float glass manufacturing companies operating in the country – SGG, GGL and AIS had combined sales of 2043 tonnes per day of float glass on an average. However , during the fourth quarter ( January- March ) of the current financial year 2008-2009 this has slide to 1885 tonnes per day on an average having a negative growth rate of -8.38%( Glass Yug magazine, January Edition- 2009). Year MT/Day %Growth 2000-01 886 2.66 2001-02 980 10.6 2002-03 1106 12.85 2003-04 1310 18.44 2004-05 1427 8.93 21 | S u m m e r P r o j e c t R e p o r t
  22. 22. See More, See Clear 2005-06 1402 14.22 2006-07 1695 20.89 2007-08 2043 20.46 2008-09 ( Jan-Mar) 1885 -8.38 Table 1 : Domestic Float Glass Sales The float glass sales trend shows that from past nine years sales was increasing continuously, but due to economic slowdown and recessionary condition it has decreased in the beginning of 2008-09 turning into negative growth rate in the sales . Figure 1: Domestic Float Glass Sales Figure 2 : Sales Growth of Float Glass The total capacity of including all the major float glass companies in India comes 4650 tonnes per day. Out of which the three major companies like Saint-Gobain Glass India Ltd. has 1400 tonnes per day, Asahi India Glass Ltd. with 1200 tonnes per day and Gujarat Guardian Ltd. with 550 tonnes per day. The other three companies Gold Plus Float Glass Industry Ltd., H.N.G Float Glass Ltd. and Gold Plus Float Glass Industry Ltd. have corresponding capacity of 550, 550 and 400 tonnes per day. Total Capacity ( in tonnes per day) Manufacturers Capacity( in tonnes per day) Gujarat Guardian Ltd. 550 Asahi India Glass Ltd. 1200 Saint-Gobain Glass India Ltd. 1400 22 | S u m m e r P r o j e c t R e p o r t
  23. 23. See More, See Clear Gold Plus Float Glass Industry Ltd. 400 Sejal Architectural Glass Ltd. 550 H.N.G Float Glass Ltd. 550 Total Capacity 4650 Domestic Sales on an average/day 1885 Export sales on an average/day 350 Domestic + Exports 2235 Extra Supplies or Stocks 2415 Table 2 : Total Capacity Figure 3 : Company wise capacity of production So far as the concern of export sale, SGG and AIS are the performing extremely well by recording export sales of more than 700 tonnes per day on an average while the export figure for GGL is negligible as its production capacity is limited to 500 TPD. The total capacity gets absorbed mostly in domestic market with 1885 mostly whereas export sales per day are 350 TPD. The extra supplies or stocks are 2415 tonnes per day. Break-up of Capacity ( in tonnes per day) 465 Total Capacity 0 Domestic Sales on an average/day 188 23 | S u m m e r P r o j e c t R e p o r t
  24. 24. See More, See Clear 5 Export sales on an average/day 350 241 Extra Supplies or Stocks 5 Table 3 : Break-up of Capacity Figure 4 : Break-up of Capacity Market Share The SGG has the highest market share of 38.89%, whereas AIS stands second with 31.52 % market share. The GGL has 23.23% market share and the Gold plus float glass Industry Ltd. covers 6.37% market share. Float Glass : Market Share ( Domestic Market ) Market Manufacturers Share Saint-Gobain Glass India Ltd. 38.89% Asahi India Glass Ltd. 31.51% Gujarat Guardian Ltd. 23.23% Gold Plus Float Glass Industry Ltd. 6.37% 24 | S u m m e r P r o j e c t R e p o r t
  25. 25. See More, See Clear Table 4 : Market Share Figure 5 : Domestic Market Share 25 | S u m m e r P r o j e c t R e p o r t
  26. 26. See More, See Clear Company Profile AIS is the largest integrated glass company in India, manufacturing a wide range of international quality automotive safety glass, float glass, architectural processed glass and glass products. AIS has a strong strategic position in the Indian glass industry. AIS is a leader in auto glass and architectural processed glass segments and has prominent position in Float glass market. AIS is jointly promoted by the Labroo family, Asahi Glass Co. Ltd., Japan and Maruti Suzuki India Ltd. The promoters jointly hold 55.24% of paid up equity capital of AIS, with remaining 44.76% held by public. Being a widely held listed public company with close to 62,000 shareholders, AIS remains committed to maintain the highest standards of corporate governance and shareholder accountability. The equity shares of AIS are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India. AIS is transforming itself from being a manufacturer of world-class glass and glass products to a solutions provider by moving up the value chain of auto glass and architectural glass and providing design, products and services that make glass more versatile and user-friendly. AIS have the following three Strategic Business Units (SBUs): • Automotive Glass Unit – AIS Auto Glass • Float Glass Unit – AIS Float Glass • AIS Glass Solutions Ltd – AIS Glass Solutions AIS Auto Glass is India's largest manufacturer of world class automotive safety glass and is, in fact, one of the largest in the field in Asia. It meets over 80% automotive glass requirement of the Indian passenger car industry. 26 | S u m m e r P r o j e c t R e p o r t
  27. 27. See More, See Clear AIS Float Glass is the leading manufacturer of international quality float glass in the country. Prior to its merger with AIS, it was known as Floatglass India Ltd. AIS Glass Solutions is a value addition in the architectural glass business of AIS, addressing the following segments: • Architectural Processing and Glass solutions • Product and Knowledge development • Glass Services – Sales & Marketing The market and technology leader in the Indian Glass Industry, AIS continues to add to its customer base and service offerings, while maintaining and enhancing product quality Its ongoing efforts, to provide high quality products and reliable and excellent service to its customers, are the key factors for AIS’s sustained success and leadership position in the Indian glass industry. AIS recorded gross sales and operating profits of Rs. 11742 millions and Rs. 2046 millions respectively for the year ended 31st March, 2008. Vision and Mission Vision AIS’s Vision is to “SEE MORE” This byline captures AIS’s culture: • It describes AIS products and services which delight its customers by helping them see more in comfort, safety & security. • It expresses AIS’s corporate culture of merit and transparency. • It defines the quality of AIS’s people to want to see, learn, and do more, in depth and detail to transcend the ordinary. 27 | S u m m e r P r o j e c t R e p o r t
  28. 28. See More, See Clear Mission AIS’s Mission is “JIKKO” – Execution for Excellence With major investments in place, the time is now to reap the benefits by execution for excellence Guiding principles All actions of AIS are driven by the following guiding principles: • Creation of value for Shareholders • Customer Satisfaction • Respect for Environment • Use of Facts • Continuous Improvement • Strengthening of Systems • Upgradation of Human Potential through education and training • Social Consciousness Collaborators Asahi Glass Co., Ltd., Japan Asahi Glass Co. Ltd, Japan, was established in 1907. Today, it is one of the leading glass producers of the world. AGC has a global network of over 350 subsidiaries and affiliates in Japan and 20 and above other countries. The group’s operations comprise of flat glass, automotive glass, and have recently diversified into display glass, chemicals, electronics and energy. AGC has evolved as a top multinational glass manufacturer with a leading share of the global market in most key glass products. AGC group is the largest glass manufacturer of the world 28 | S u m m e r P r o j e c t R e p o r t
  29. 29. See More, See Clear with 12% global market share in the flat glass segment and 30% global market share in the automotive glass segment. It has further captured the top share in CRT glass, TFT display glass and PDP glass in the display field as well. For the year 2007, the AGC Group has recorded net sales of 1681 billions of yen, and with Operating Net Income of 69 billions of yen. SBU’S AIS Auto Glass OVERVIEW AIS Auto Glass is the most reputed and trusted supplier in Indian automotive glass industry having over 21 years of technological expertise and is the largest manufacturer of world-class automotive safety glass in India. AIS Auto Glass has been awarded the prestigious Deming Application Prize, 2007, certifying the outstanding performance improvements achieved by it through application of Total Quality Management (TQM). Today, AIS Auto Glass has a ‘body of knowledge’ to be able to deliver ‘cutting edge’ auto glass solutions and value addition to its customers, most of whom are global and demanding players. AIS Auto Glass is overwhelmingly the ‘first choice’ supplier for most automotive manufacturers in India. Hence, AIS Auto Glass is either the sole or a leading supplier of auto glass to most passenger car manufacturers in India, supplying about 80% of their auto glass requirement. Apart from supplying to OEMs in India, AIS Auto Glass has significant presence in the domestic after-market with a market share of 43%. It also exports auto glass to the after-markets in Europe and Pakistan. 29 | S u m m e r P r o j e c t R e p o r t
  30. 30. See More, See Clear AIS Auto Glass has state-of-the-art plants located at Rewari-Haryana, Roorkee-Uttrakhand (North India) and Chennai- Tamil Nadu (South India) with a combined capacity to produce 2.81 million car sets per annum. 30 | S u m m e r P r o j e c t R e p o r t
  31. 31. See More, See Clear Product Range AIS Auto Glass is India's largest manufacturer of automotive safety glass. The unit manufactures the full range of automotive safety glass, which includes: • Laminated Windshield • Tempered Glass for Side and Backlites • Silver Printed Defogger Glass • Antenna Printed Backlites • Black Ceramic Printed Flush Fitting Glass • Encapsulated Fixed Glass • Solar Control Glass • IR Cut Glass • UV Cut Glass • Reflective (PET) Windshield • Water Repellant Glass • Glass Antenna • Extruded Windshield Clients AIS Auto Glass : Share of Business Customer SOB (%) Maruti Suzuki India Ltd. 100 International Cars and Motors 100 31 | S u m m e r P r o j e c t R e p o r t
  32. 32. See More, See Clear Reva Motors 100 Honda Motors 100 Ford India 99 Toyota Kirloskar Motors 99 Fiat India 83 Hyundai Motors 72 General Motors 67 Volvo India 57 Mahindra & Mahindra 52 TATA Motors 24 Piaggio 22 Hindustan Motors 17 Eicher Motors 13 Swaraj Mazda 5 Force Motors 1 Market Position • Sole supplier to almost the entire Indian passenger car industry, with a current market share in excess of 80 %. • Significant presence in the after-market with a market share of over 43%. • Exporting auto glass to after-market in Europe and Pakistan. 32 | S u m m e r P r o j e c t R e p o r t
  33. 33. See More, See Clear AIS Glass Solution AIS Glass Solutions is the face of the architectural glass processing business of AIS. As a separate business unit, AIS Glass Solutions focuses on offering innovative architectural glass solutions to customers. AIS Glass Solutions aims at raising per capita consumption of glass in the country to bring it at par with the other developed countries in the world. It disseminates knowledge for increased awareness of the use and application of architectural glass through innovative offerings. AIS Glass Solutions has been supplying a wide range of high quality architectural processed glass, comprising of toughened glass, laminated glass, insulated glass units and value added glass products. It also caters to the project segment, meeting glass and related requirements of construction projects. Its product portfolio includes: • AIS Strong glass - impact resistant glass. • AIS Security glass - burglar resistant glass. • AIS Acoustic glass - sound resistant glass. • Glass products like shower enclosures, tabletops, shelves. The state-of-the-art architectural glass processing facilities are located at Taloja (West India), Chennai (South India), Rewari and Roorkee (North India). The Roorkee facility is the largest architectural glass processing facility in the country. 33 | S u m m e r P r o j e c t R e p o r t
  34. 34. See More, See Clear AIS Float Glass OVERVIEW AIS Float Glass is a premier manufacturer of international quality float glass and value-added glass like reflective glass and mirror. AIS Float Glass has state-of-the-art glass manufacturing plants located at Taloja near Mumbai (West India) and Roorkee (North India) with a total production capacity of 1,200 tons per day (TPD). Its newly commissioned unit at IGP Roorkee has manufacturing facilities for float glass, superior quality heat reflective glass and new generation environment friendly mirror. PRODUCT RANGE AIS Float Glass offers a diversified product range of float glass in thickness of 2 mm - 12 mm in different shades and tints of clear, green, grey, bronze and blue in varying sizes. Its product portfolio includes world-class range of international quality Supersilver heat- reflective glass, the world’s finest quality "Environment Friendly" copper & lead free premium AIS Mirrors, AIS Décor lacquered glass & AIS Krystal Frosted glass for interior applications. 34 | S u m m e r P r o j e c t R e p o r t
  35. 35. See More, See Clear 35 | S u m m e r P r o j e c t R e p o r t
  36. 36. See More, See Clear Application Of AIS Glass With its wide product range and its status as the undisputed quality leader, AIS Glass is the natural choice in most of the application segments: Window Glazing: AIS Float Glass’s superior strength, high optical clarity, distortion free, smooth surface and bigger sizes give design flexibility, making it the natural choice for all window glazing applications. Curtain walls: Availability of AIS Tinted Float & AIS Heat Reflective Glass in various shapes and sizes enable you to design the latest in curtain walls. Besides modern expression, it reduces the overall dead weight of the building, allows faster construction and requires less expensive maintenance. The heat-absorbing / heat-reflective characteristic reduces the air-conditioning load substantially, thus saving precious energy. Partition Walls: Due to its inherent strength and availability in large sizes, AIS Float Glass can be extensively used for partitions. Glass partitions add to the aesthetics of the room and give a feeling of spaciousness. Doors: AIS Float Glass is extensively used in doors and entrances, exuding beauty and elegance. Shop-Fronts: Brilliantly clear and transparent shop-fronts made of Float Glass provide a distinct image to a showroom. Decorations: Modern expression, transparency, easy maintenance and non- inflammability of AIS Float Glass makes it an indispensable material for display cabinets Shop, partitioning, screening and designing modern and high-class Showrooms and Shopping Malls. Furniture: AIS Float Glass, due to its versatility, is ideal for furniture, tabletops, shelves, cabinets, showcases and sliding doors of large almirahs and cupboards etc. 36 | S u m m e r P r o j e c t R e p o r t
  37. 37. See More, See Clear Balustrades: The use of AIS Float Glass in balustrades gives a graceful effect to the staircases. Mirrors: AIS Float Glass gives perfect reflected images when mirrored. Also AIS Mirrors, are world-class quality mirrors, being copper & lead free and corrosion resistant. Automobile Safety Glass: AIS Float Glass Unit is the single largest supplier to the OEM segment. Its European Green glass is used extensively in almost all premium cars. Special Applications: AIS Float Glass can be further processed to be used for skylights, atriums, museums, art galleries, aquariums, lifts, dance floors etc. MARKET POSITION AIS Float Glass enjoys 38.89 % market share in the Indian float glass market. CLIENTS The diversified product portfolio of AIS Float Glass includes float glass in varying sizes, shapes and thickness. AIS's quality products make it the preferred choice of a wide range of clients including 37 | S u m m e r P r o j e c t R e p o r t
  38. 38. See More, See Clear • Automotive Safety Glass Manufacturers • Processors • Dealers and Retailers • Architects • Interior Decorators • Builders • Aluminium Fabricators • Carpenters • Furniture Manufacturers • Household Consumers With glass finding applications in an array of arenas, the client base of AIS Float Glass is an ever-expanding one. Advantages of Float Glass over its Counterparts Fuel Efficiency The fuel efficiency is enhanced significantly in a float glass plant. Whereas in a sheet glass plant, the best fuel efficiency is limited to 0.3 MT of furnace oil per tonne of glass, in the float process, 0.18 to 0.20 MT of furnace oil is required to melt 1 tonne of glass. 38 | S u m m e r P r o j e c t R e p o r t
  39. 39. See More, See Clear Quality Owing to the greater degree of quality control in the furnace conditions, the final product is free from body defects such as waves, stones etc. The reason for this lies in the process itself: the molten glass is formed on a bed of molten tin, improving the accuracy of glass immensely. In the other processes, the molten ribbon of glass is drawn out mechanically between rollers, making it vulnerable to variations in thickness. Thus the float process offers better quality. 39 | S u m m e r P r o j e c t R e p o r t
  40. 40. See More, See Clear Control Because the product passes horizontally from one chamber to another, a greater degree of inspection and quality control can be exercised unlike the other process where the glass is pulled up against the force of gravity. Variety The float glass can be manufactured with thickness upto 19mm, to be used for applications such as tabletops; furniture etc.This is not possible in sheet glass, as the glass would become brittle at such high thickness. 40 | S u m m e r P r o j e c t R e p o r t
  41. 41. See More, See Clear Market Research Background In the present era of cut throat competition there is a very little scope left out for the companies to create differentiation in the products to compete, hence need to start brand building exercise by way of creating perceived images of superiority over the competition . This starts with the various kind of activities to be undertaken by the companies to create brand , among them one way is advertising. Indian commodity market ( in the building material segment )such as cement, steel, aluminum, Glass has adopted various methods to enhance the demand for their products, they have simultaneously invested sizeable amount of money in advertising to sell their products and increase their market share. VARIOUS consultants and advertising agencies were hired to create a difference but, “have they been successful in their efforts to create demand or make any kind of impact on the demand or sale due to advertising or mass media campaigns. Lots of subjective discussions (simply based on individual feelings and selected market researches to show the positive impact, which can easily be contradicted by any other agency or market research) have taken place and actually not yielded any results or tangible benefits which can distinctively be observed or verified. Whenever organizations try to establish a relationship between the advertising and the Top line, bottom line then efforts are put in to de link it so that it goes to the expenses part rather than become a part of the cost. There is a need to re-examine and evaluate the impact of advertising on the demand of commodity products and see what exactly consumers are looking for. Once companies understand that branding is a necessary (and profitable) part of doing business, the next logical question is — how do you brand? Tactically speaking, there are numerous ways to go about branding. The look and feel of the communications, the balance of advertising versus public relations versus grassroots, the 41 | S u m m e r P r o j e c t R e p o r t
  42. 42. See More, See Clear media used, etc., all reflect tactical aspects of the branding process. However, these are only vehicles used to brand, and do not inherently lend themselves to developing a brand, per se. To ensure a good, successful brand is the methodology used to develop and/or refine the brand in the first place. In other words, just like a building, a good brand starts with a strong foundation. Sound branding practice begins with addressing five key attributes present in any effective brand: uniqueness, relevance, credibility, sustainabiiity, and practicality. Uniqueness The average American is exposed to approximately 3,000 advertising messages per day. That means everything from the logo on your watch, to product placement in television and movies, down to traditional commercials and print ads. And all this static is in addition to children, family, job and various other aspects of everyday life that are constantly vying for attention. To break through all of the clutter, a brand has to stand out, has to be memorable — it has to be unique. Relevance This attribute seems like a no-brainer, but it is an important check-off. If a brand is positioned in a way that has no bearing in the life of the audience, then how can the audience be expected to develop an affinity for the brand? Credibility Things can be true, but not necessarily believable. For instance, Kia brand automobiles could spend hundreds of millions of dollars on the development of a luxury car that rivals BMW in every aspect. However, it is a good bet that such an endeavor would fail. At the very least, Kia could only command a fraction of the retail price of BMWs. The Kia brand has successfully positioned itself as a low-cost automobile maker. People would simply not believe the company had produced a car that was on par with BMW. The lessons here — don’t let your business stray 42 | S u m m e r P r o j e c t R e p o r t
  43. 43. See More, See Clear from your brand. Once credibility in your brand is lost, it is near impossible to regain it. Just see Arthur Andersen, WorldCom or Enron. Sustainability This factor represents the most significant difference between advertising and pure branding. An advertising campaign is finite, while a brand should theoretically be credible and relevant forever. The core values inherent in a brand should reflect core human values. For example, Nike's core value is achievement. McDonald's core value is convenience. Citibank’s core value is financial security. These values will be as relevant as in 2055 as they are in 2005, which gives the brand consistency, staying power, and the ability to build consumer loyalty. Advertising remains one of the cornerstones of marketing communications. However, determining its impact on a firm’s performance continues to be a difficult proposition for many marketing and advertising managers. Although firms in the USA spent over $230 billion on advertising in 2001 (Coen, 2002), a clear link Between advertising expenditures and financial performance remains somewhat Uncertain in many cases. One common belief is that advertising creativity is an Essential element of advertising success (El-Murad and West, 2004; Smith and Yang, 2004) and may lead to an improved financial performance, that is, as firms focus more resources and develop more creative advertising, they will realize marginal benefits in the form of higher sales, an increased market share and higher future earnings. While seemingly reasonable, this particular belief fails to provide much more than an anecdotal basis for determining the effects of advertising on a firm’s bottom line. While providing some useful insights, these mostly academic studies typically failed to take into consideration the myriad of other variables that also affect advertising effectiveness (e.g. differentiating message, repetition and recall). 43 | S u m m e r P r o j e c t R e p o r t
  44. 44. See More, See Clear Introduction Can Advertising Contribute? On the heels of what seems to be a never-ending series of attacks on advertising, two new studies purport to reveal more evidence of its diminishing impact. For several years, respected industry leaders have been assailing both advertisers and their agencies for lack of performance. Some experts, such as Sergio Zyman, former advertising head at Coca-Cola, claim that ad agencies have abandoned their basic responsibility to sell the brands they're paid to advertise. Others, including noted author Al Ries, have gone even further, contending that advertising's business building capabilities now pale in comparison to the "buzz" public relations can generate. (See "Is Advertising Dead?" Adding fuel to this fire are two recently released studies. The first, by Yankelovich Partners, maintains that the effectiveness of ad campaigns has been declining markedly. It cites as evidence the apparent growth in consumers' negative perceptions of advertising. According to Yankelovich, about 6 in 10 U.S. consumers report that they now feel more negatively about advertising than they used to. Furthermore, they claim to "avoid buying products that overwhelm them with advertising and marketing." The second study, recently released by Deutsche Bank, is based on a more wide ranging analysis of sales and marketing spending data. It concludes that TV advertising delivers, in most cases, a negligible return on investment (ROI) for mature package-goods brands. According to the Deutsche Bank data, only 3 of 18 major brands competing in established product categories (ranging from beer to detergent and from snacks to toothpaste) could demonstrate financial returns that exceeded the company's investments. In the other 15 cases, the companies were simply spending more money than they were making. No bang for the buck Reports such as these have caused consternation among advertisers and the agencies they've enlisted to create and deliver sales-building and business-enhancing messages. Wall Street analysts and company boards are increasingly expecting and demanding accountability for marketing expenditures. If, 44 | S u m m e r P r o j e c t R e p o r t
  45. 45. See More, See Clear as the Deutsche Bank data contend, major advertisers such as Coca-Cola, Heinz, and Colgate are realizing no tangible business benefits from their expenditures, then ad money will likely be reallocated to other, higher-return uses. The dilemma, of course, is to identify what those alternatives might be. According to the Deutsche Bank report, the solution is not an increase in trade-promotion spending, as this tactic also falls short when it comes to ROI. So where are companies to turn? What are these studies telling today's brand marketers? Perhaps, as some have suggested, the solution is simply "better advertising." The argument is that the money is squandered -- not because all Advertising is wasteful, but because too many companies have been lured into creating ad campaigns that just don't work. Either marketers are employing the wrong media mix (for example, relying on expensive and inefficient TV commercials), or they're relying on the wrong selling strategies (such as creating messages that have little or no potential impact). Does a company's advertising just need to "work harder"? Or is the real problem that today's advertisers are heading in the wrong direction, and as a result, are making no apparent progress toward meeting their ROI challenge? It appears that far too many companies operate under an incomplete or erroneous model of how advertising can best contribute to building a healthier brand. Consequently, they fail to hold their ads -- and their ad agencies -- accountable for the end results they should be delivering. Consider the Yankelovich study, which apparently equates "liking" advertising with its impact. The study suggests that if people say they're feeling increasingly negative toward advertising, then that means that advertising has increasingly less impact. This argument would imply that the solution for enhancing the return on advertising expenditures would be to make the ads more entertaining and fun to watch, hear, or read. But should that be the goal? Is advertising's real purpose to entertain -- or to sell? As experts from David Ogilvy to Sergio Zyman have pointed out, advertising's objective is not to be "fun to watch." Entertaining consumers is not the reason companies invest billions of dollars in ads. Customer acquisition or customer retention? What should advertising's goal be? What are the appropriate objectives for today's marketers to pursue? These are the questions that marketers must answer as they rethink 45 | S u m m e r P r o j e c t R e p o r t
  46. 46. See More, See Clear their targets and reexamine their strategies. Some time ago, companies began shifting their emphasis from customer acquisition to customer retention. That's because myriad published studies have emphasized what has now become a management mantra: It costs a lot less to keep a customer than it does to acquire a new one. (See "The Constant Customer" and "Maximizing Return" in See Also.) Yet the goals that many companies set for their advertising have remained essentially the same as they were decades ago, when brands were being launched and the aim was to attract new customers. What are these stated objectives? What do today's marketers demand of their ad agencies? They want agencies to build brand and advertising awareness, increase consumers' positive attitudes toward identifiable purchase motivators, and boost the number of customers who state a positive intention to buy the brand. But these measures all derive from a time past, when package-goods companies were defining what marketing was all about (the "Four Ps" of product, place, promotion, and price) and focusing on building brand share for frequently purchased, low-involvement consumer products. And they were pursuing these goals through advertising that was designed and executed to increase the brand's profile and make it more "top of mind." But those outcomes are not the hallmarks of increased customer retention. Rather, they are indicators of the potential for customer acquisition. As several Gallup Organization studies have pointed out, the health of a company's customer relationships is reflected in the nature and depth of the emotional connections that have been forged between the brand and the customer. (“Beyond Customer Loyalty”) Brand awareness is an insensitive and even inappropriate indicator of the strength of a company's customer relationships. However, that may be exactly why the Deutsche Bank study has concluded that advertising typically doesn't work for mature brands in mature categories. What should the role of advertising be for brands such as Coke and Heinz? Should their ads focus on increasing the awareness of these already-familiar names? Or should they seek to deepen and extend brand relationships by enhancing the engagement of their current customers? The problem with attacking the issue of advertising that reportedly doesn't work is that too many companies are 46 | S u m m e r P r o j e c t R e p o r t
  47. 47. See More, See Clear still defining what works according to an outmoded customer acquisition model. They are looking at what it takes to generate trial, and that's a mistake. In a world that's now strongly focused on customer retention, advertising must be designed, crafted, and held accountable for its ability to enhance the customer relationship, not just initiate it. This means that company marketers -- at least those who are marketing established brands -- must rethink not just what they're spending, but what they're doing, what they're saying, and how they're monitoring their progress. Unless advertisers and their agencies reexamine where they're heading and reconsider what they're striving to achieve, marketers will continue to read bleak and scary reports about advertising's lack of impact and effectiveness. Ad expenditures, already clearly in jeopardy, will decline. And the real promise and potential of advertising will, sadly, continue to be left unrealized. Marketers are too willing to concede that their products have reached commodity status. That's a major reason why advertising effectiveness has suffered mightily. Here's the problem: When companies treat their brands the same as their competitors', they no longer focus on attributes of the brand itself as reasons to buy it. Instead, they talk about the people who buy the product, or they make fun of the advertising -- anything to keep from admitting that their product purportedly has no real advantage over the next guy's. So, when advertising is forced to get away from concentrating on what makes it most effective and efficient -- tangible and meaningful product benefits -- the result is likely to be disappointing. It's amazing how sophisticated marketers make this mistake. The contention is that they are selling their products short; that their products have advantages that can be exploited by great advertising if only their custodians would look harder for the hidden gems buried deep within the product -- or maybe just under the surface. Although the agency is only too happy to oblige, the client is clearly the place to lay the blame. After all, if the top guys at Miller Brewing Co. had insisted that their agencies dig out 47 | S u m m e r P r o j e c t R e p o r t
  48. 48. See More, See Clear and exploit attributes of their beers, instead of the weird people who drink their beers, they would be gainfully employed today. The agencies, of course, were glad to be let off the hook. It's hard work to come up with an advantage that can give a product an edge and convey that advantage in a meaningful, creative and entertaining way. How much easier to ignore the product altogether and focus on the lifestyles of the consumers who use the product. That way, you can say anything you want.It's easy to go down the road that says most products are the same. You see that most often when companies are floundering. Kellogg Co. is a sad case in point. Its troubles started when the cereal companies drastically lowered the prices on their products, giving consumers the impression that they were all the same. (Kodak did the same thing with its film.) When that line of thinking takes hold, management starts looking for non-product-related things to talk about. So now, the head marketing guy at Kellogg concedes that, because "the functional benefits are the same" from brand to brand, Kellogg is intent on creating a personality for each brand -- and a relationship with its consumers. If the "functional benefits" of a brand are all the same, how can the brand's personality be distinct, other than by fabricating it out of whole cloth? A brand's uniqueness comes out of its real and tangible product advantages. “The moral of the story is that few consumer products are commodities unless their owners concede that they are”. And because so many companies today are making that concession, smart marketers have a terrific new weapon at their disposal. Marketing is at the top of the list because this is the area where rigorous financial evaluations have not been used extensively to justify the expenditures within a firm. Manufacturing costs have been reduced from 50 per cent to 30 per cent, and general management costs have also declined as a proportion of the total corporate costs from 30 per cent to 20 per cent, but in contrast to manufacturing and general management costs, marketing 48 | S u m m e r P r o j e c t R e p o r t
  49. 49. See More, See Clear costs have increased significantly from only 20 per cent of the total corporate costs 50 years ago to 50 per cent today. In spite of the huge marketing expenditures, managers frequently do not have concrete measures or knowledge of what is obtained in return from a significant investment in marketing. Moreover, many have doubted that definite quantitative measurements of marketing effectiveness could ever be made Problem Formulation The impact of advertisement on the demand of commodity product specifically Glass is to be find out. India is the only country where glass as commodity product is being advertised on TV. The huge amounts of investment in ads are happening in the industry. But their effectiveness in impacting consumers mind for using more glass is not clear. Do the advertisements help the company in commanding more market share, has become the main issue. The connection of ad to the top and bottom line of the company is not yet established clearly for the commodity product such as glass. The perception of consumers towards glass is still very traditional as that of fragile nature etc. The relationship between glass buying behavior and the awareness towards the brand among the commodity glass market is to be figured out. All these issues are the rationale behind choosing this research study. Literature Review RIEDESEL (2002) COMMENTS that the modeling of company sales and income as a function of three types of media spending using Data Envelopment Analysis (DEA) by Luo and Donthu (2001) is questionable. He acknowledges that the relationship between media spending and company sales may be reciprocal, but the impact of sales on media spending is more direct than vice versa. First, there are numerous marketing, management science, econometrics, and advertising studies that have established the causal relationship from media spending to sales volume ( Aaker and Carman, 1982; Feinberg, 2001; Mesak, 1999; Simon and Arndt, 1980; Stewart, 1989). Danaher and Rust (1994) theoretically propose that optimal level of media spending can be achieved by maximizing the advertising productivity/efficiency. Following this 49 | S u m m e r P r o j e c t R e p o r t
  50. 50. See More, See Clear school of research, we believe that the amount spent on different media such as broadcasting, print, and outdoor can be treated as DEA inputs, while sales and income as DEA outputs. Second, while some firms may be using a fixed percentage of previous sales as current media spending budget, the approach is ad hoc and not supported by science. One hopes that many firms are actually setting advertising budget based on future sales goals. However, irrespective of how advertising budgets are set, advertising expenditure may or may not be efficient (given level of advertising may produce different levels of sales) and DEA can be used to investigate this. It is not the setting of the budget that creates sales but the spending of the budget. If sales fall below or above projected levels, real-time changes have to be made in spending. DEA can be used to model such contemporaneous spending/sales data. Finally, a pure empiricist may argue that DEA is a correlation technique used to analyze the relationship between two sets of variables. In conclusion, advertising theory dictates that media spending be treated as inputs and sales be treated as outputs. Media spending should reflect sales goals. Irrespective of how advertising budgets are arrived at, inefficiencies exist in advertising and that inefficiency can be benchmarked using DEA. ( Mehir Kumar Baidya and Partha Basu Measurement and Analysis for Marketing 2008) did one study with the aim to check the impact of individual marketing efforts (advertising, sales force , promotion, distribution and price) on sales and overall customer satisfaction for a brand by taking into consideration both the financial and non financial aspects of the measurement. The return on- investment (ROI) has been calculated for each effort on the basis of sales The findings suggest that all the marketing efforts have significant positive impact on sales except price. Moreover, all the marketing efforts have significant positive effects on overall customer satisfaction for the brand. Furthermore, among all the marketing efforts the adjusted ROI is the highest for sales force. These results will assist the managers in allocating 50 | S u m m e r P r o j e c t R e p o r t
  51. 51. See More, See Clear the resources to different marketing efforts in a better manner, so as to improve the effectiveness of marketing expenditures. Stone and Duffy , and Basu and Batra used the judgmental and mathematical (ADSPLIT) models to frame the relationship between sales and advertising expenditures. Both studies used response function to allocate marketing budget to advertising as well as to different brands. Effects of sales promotion : (Bawa and Shoemaker) performed a study to identify the influence of sales promotion activities on customers ’ brand choice behaviour. The authors found that sales promotion activities have short-term and long term positive effects on the brand choice behaviour of customers. In the same direction, Jones made an attempt to examine the short term and long-term impact of sales promotion activities on sales by a multivariate technique Regression model estimation indicates that the short-term effect is more prominent than the long-term. The author found that the effect of a low price on attracting buyers depends on the level of advertising. The high advertising plan produces sales 50 per cent above the low plan at the base price. At the middle price it was 34 per cent, and at the highest price with the high advertising level it was only 11 per cent.( Effectiveness of marketing expenditures © 2008 Palgrave Macmillan Ltd 0967-3237 Vol. 16, 3, 181–188 Journal of Targeting, Measurement and Analysis for Marketing 183). Customer Satisfaction Studies: Anderson analysed a database matching the CSI with ROI, and the productivity of each company covered by the Swedish Customer Satisfaction Barometer (SCSB) from 1989 to 1992. Regression model estimation indicates that the coefficient for the direct relationship between the customer satisfaction and ROI is positive and significant. Similarly, Ittner and Larcker 12 extend this study by using stock price as a dependent variable and CSI as an independent variable. The authors found that the estimated regression 51 | S u m m e r P r o j e c t R e p o r t
  52. 52. See More, See Clear coefficient is 7.36. This shows that customer satisfaction has a positive impact on shareholder value. Advertising remains one of the cornerstones of marketing communications. However, determining its impact on a firm’s performance continues to be a difficult proposition for many marketing and advertising managers. Although firms in the USA spent over $230 billion on advertising in 2001 (Coen, 2002), a clear link between advertising expenditures and financial performance remains somewhat uncertain in many cases. One common belief is that advertising creativity is an essential element of advertising success (El-Murad and West, 2004; Smith and Yang, 2004) and may lead to an improved financial performance, that is, as firms focus more resources and develop more creative advertising, they will realize marginal benefits in the form of higher sales, an increased market share and higher future earnings. While seemingly reasonable, this particular belief fails to provide much more than an anecdotal basis for determining the effects of advertising on a firm’s bottom line. In addition, while positive returns are expected, this type of unsubstantiated claim has become unacceptable as more marketing managers are being asked to validate the links between traditional marketing variables and financial performance (Jedidi et al., 1998). Although the search for the true value of advertising has led to the completion of numerous experimental and econometric studies, evaluating the effectiveness of specific advertising campaigns continues to be problematic for practitioners and academics alike. For the most part, past studies have tended to focus on a handful of ‘executable devices such as the use of humor, sex, and celebrity presenters’ (Stewart and Furse, 2000, p. 85). While providing some useful insights, these mostly academic studies typically failed to take into consideration the myriad of other variables that also affect advertising effectiveness (e.g. differentiating message, repetition and recall). Exceptions to these fairly limited studies are practitioner studies that rely on an experimental design and use single-source data (e.g. Eskin, 1985; Lodish et al., 1995). Such studies are able to estimate advertising performance by tracking the actual purchasing 52 | S u m m e r P r o j e c t R e p o r t
  53. 53. See More, See Clear behaviour of a sample of consumers (via retail scan cards). However, while providing useful insights, many of these experiments were not well documented in terms of methodology (Stewart and Furse, 2000) and were very expensive, technically difficult to conduct and relied heavily on the ability for tracking exact consumer purchasing patterns carefully. While both categories of studies have helped to extend our general understanding of how advertising affects firms’ performances, more research is needed. Consequently, a number of empirical studies have recently been conducted in order to extend our understanding of the links between specific aspects of a firm’s advertising function and various financial performance measures (e.g. market share, profitability and stock price). While market share and profitability continue to demand attention as managers attempt to link their decisions to financial outcomes directly, many researchers have opted for a more unique approach and have begun to examine the impact of specific marketing and advertising decisions on expected future earnings (as manifested in higher or lower abnormal stock returns). Specifically, researchers have explored the links between stock price and the use of celebrity endorsers (e.g. Ohanian, 1991; Agrawal and Kamakura, 1995; Mathur et al., 1997; Farrell et al., 2000), corporate sponsorship and the marketing of sporting events (e.g. Miyazaki and Morgan, 2001; Tomkovick et al., 2001), changing a company’s name (Horsky and Swyngedouw, 1987) and changing a firm’s advertising slogan (Mathur and Mathur, 1996). However, while some progress has been made in this area, more research is needed. Managerial relevance. Jointly examining weight and content effects on market response can be extremely appealing to brand managers who try to strike a balance between copy and weight and may ultimately help them achieve higher advertising efficiencies. The results of MacInnis et al. are encouraging, since they suggest that media expenditures are not a waste of money when combined with the appropriate type of copy appeal (in their case emotional) in mature markets. Similarly, the implications of the study by Chandy et al. [3] may help managers in copy-changing decisions depending on the maturity of the market they compete. The 53 | S u m m e r P r o j e c t R e p o r t
  54. 54. See More, See Clear approach suggested in Reference [7] can be used when advertising appeals are ambiguous and need to be inferred by examining their effects on response. Long-term effects and hysteresis Although the long-term effectiveness of advertising has long been a popular subject of academic research with the Koyck model being the main methodological tool (e.g. Reference [8]), in recent years new paradigms in the study of long-term advertising effects have emerged. Most notably, Dekimpe and Hanssens [9, 10] proposed the use of ‘persistence modelling’ to study long-term advertising effects. Applying vector auto-regressive (VAR) models to data from evolving markets, Dekimpe and Hanssens essentially redefine what should be considered as ‘long term’ and contrast it with the more traditional Koyck modelling approach. Koyck models may be applied to stationary markets but their advertising effects cannot be permanent (and thus really ‘long term’), because market performance in these markets reverts to its mean. In evolutionary markets, however, market performance can exhibit permanent increases and if such increases can be attributed to advertising spending then advertising effects may be considered long term. More specifically, Dekimpe and Hanssens [9] estimated a VAR model using home-improvement chain sales and advertising data. A relevant, but not identical, approach to measuring long-term effectiveness of advertising is to examine whether it causes hysteresis, a concept introduced in the marketing literature by Simon [12]. Hysteresis suggests that a temporary increase in advertising expenditures can lead to a permanent increase in market performance (sales). The critical assumption in the econometric modelling of hysteresis is that there is not a one-to-one relationship between advertising and market performance, since decreasing advertising to its previous level would not affect sales but increasing advertising from the same level would. In other words the ‘sales path’ is different for decreases from, than for increases to any level of 54 | S u m m e r P r o j e c t R e p o r t
  55. 55. See More, See Clear advertising spending. Hanssens and Ouyang [13] empirically examined hysteresis in the computer printer market. They distinguish between full hysteresis, where temporary changes in advertising cause permanent changes in sales without needing additional spending to maintain the new high sales levels, and partial hysteresis, where some maintenance advertising is needed. Their empirical results provided evidence for partial hysteresis caused by print media advertising. The studies by Mela et al. [14] and Jedidi et al. [15] offer an alternative approach to studying long-term advertising effects. The first study looks at the effects of quarterly advertising expenditures on quarterly price sensitivities, while the second examines the cumulative effects of advertising on choice and quantity and their short-term pricing and promotion sensitivities. Advertising effects on stability of performance While recent research has addressed the issue of advertising effects in evolutionary markets, the question remains whether advertising has a significant impact on mature markets. The results reported in Reference [5] are encouraging as they suggest that increased advertising effort can increase sales in mature markets. However, the ‘maintenance’ role of advertising in mature markets (see Reference [33]) should also be investigated. In other words, whether advertising contributes to the stability of a brand’s performance, since many markets especially for frequently purchased goods are mature The issue may be of greater importance for big brands that would like to maintain leadership in a market but it could also be important for smaller ‘niche’ brands that enjoy a healthy profit margin and are satisfied with their market position. There are two possible approaches to modelling advertising effects on stability of performance. One is to examine the effects of advertising on the variance in the performance (sales or share) of a brand across time. If advertising is expected to increase performance stability, it should decrease variance in performance. To make comparisons meaningful across } It should also be acknowledged that recent research has started examining the effects of 55 | S u m m e r P r o j e c t R e p o r t
  56. 56. See More, See Clear advertising/marketing expenditures on financial metrics (see for example Reference [29]). kFor example, P&G, Unilever and GM are the top three media spenders worldwide. Although they do introduce new products annually, they also support a lot of mature brands.(Copyright # 2005 John Wiley & Sons, Ltd. Appl. Stochastic Models Bus. Ind., 2005; 21:351–361 358 D. VAKRATSAS) The specification of advertising effects on the variance of performance should follow from the specification of advertising effects on the mean performance (e.g. Reference [34]), which may complicate matters. Furthermore, showing that advertising contributes to lower variance in performance may not easily convince managers to continue investing in advertising since performance variance is not explicitly linked to profitability. An alternative approach to evaluate advertising’s ‘maintenance’ role would be to look fordifferential effects of increases and decreases in advertising. In other words, a mature brand’s performance may be resistant to advertising increases (due to ‘ceiling’ effects) but may be sensitive (declining) to advertising decreases (due to lack of critical support). The implication then would be that although advertising does not lead to increased performance, it helps maintain it as declining advertising spending would result in deterioration of brand performance. This is conceptually the opposite of hysteresis, where brand performance is resistant to advertising decreases, as it focuses on losses in performance as a result of lower advertising investment. Both approaches to measuring maintenance effects need sufficient variability in the data in order to produce reliable results (see Reference [35]), which may be difficult to attain as such studies should be carried in mature markets where managers may not change status quo advertising practices. Europe shows that advertising recall is lower in countries with higher levels of television advertising. Specifically, yfield and Nazaroff (2003) report that in Denmark, where there are only 80 average television exposures per week per person, the Millward Brown awareness index is 150 (compared with the U.K. benchmark of 100).1 However, in Italy, where there are 300 56 | S u m m e r P r o j e c t R e p o r t
  57. 57. See More, See Clear average exposures per week per person, the awareness index drops to only 50. Thus, an effect of increasing advertising levels is to decrease the recall of all advertisements. In addition, academic studies have found lower ad recall and recognition in the presence of too much advertising from competitors (Burke and Srull 1988; D’Souza and Rao 1995; Keller 1987, 1991). Increasing advertising content on television also increases ad avoidance behavior (Danaher 1995; Lafayette 2004), such as channel switching or time-shift viewing with a personal video recorder (Green 2003). A commonly used term to describe the presence of high levels of advertising is “clutter.” For television, clutter is the combination of commercials and other nonprogram material,such as program promotions and public service announcements. The increase in clutter over the past 40 years is due to both an increase in nonprogram time and an increase in the number of 15-second commercials (Brown and Rothschild 1993; Kent 1995). The topic of increasing advertising clutter is one of the most publicized issues in the advertising trade literature and continues to be one of the greatest concerns facing the advertising industry (Chunovic 2003; Lafayette 2004). Kent (1993) makes a distinction between competitive and noncompetitive clutter. Competitive clutter, which is also called “competitive interference” (Burke and Srull 1988; Kent and Allen 1994), is clutter that arises from advertisements delivered by competing brands (within a category) at or near the same time and place as those for a focal brand.Kent (1993, 1995) finds that competitive clutter has a more harmful effect on ad recall than noncompetitive clutter. In this study, we focus on competitive clutter. Most previous research on brand advertising interference has been conducted in laboratory settings, in which participants are exposed only to commercials and no editorial material (Burke and Srull 1988; Keller 1991; Kent and Allen 1994), resulting in limited external validity. Other studies of this topic have used unfamiliar brands, which Kent and Allen (1994) show are more prone to interference effects. Finally, previous marketing studies have examined 57 | S u m m e r P r o j e c t R e p o r t
  58. 58. See More, See Clear the effect of competitive interference on recall, recognition, or brand evaluations rather than the all-important effect on sales (East 2003, p. 19). Advertising response models with managerial impact: an agenda for the future Faculty of Management, McGill University, 1001 Sherbrooke St. W, Montreal, QC H3A 1G5, Canada ALBA, Athens, Greece.This paper discusses recent advances in advertising response models and identifies new opportunities for managerially relevant research. First, it establishes that recent research has shifted attention from topics such as duration of advertising effects in mature markets and short-term advertising elasticities to issues such as combined effects of ad content and weight and effectiveness in evolving markets. Then, motivated from recent trends in advertising practice, it presents a research agenda consisting of four main topics: (1) new media and forms of advertising (e.g. product placement), (2) media synergies, (3) advertising productivity and (4) advertising effects on performance stability. Copyright # 2005 John Wiley & Sons, Ltd. This paper has two main objectives. The first is to discuss new research findings (of the last ten years) in advertising response research, their implications for managers and their importance for broadening the scope of advertising research. The second objective is to propose an agenda consisting of four new areas of research: non-traditional media, media synergies, advertising productivity and advertising’s role in performance stability. The choice of these four issues was based on their practical relevance and the lack of sufficient academic research to consider them resolved. The discussion of the proposed research agenda includes suggestions for potential methodological approaches, data requirements and measurement. Given the focus of the paper on advertising response models, the discussion mainly concerns empirical econometric studies that use market-based performance measures (e.g. sales, share). Marketing managers are under increasing pressure to justify marketing spending. The issue of quantifying the returns to marketing activities in financial terms is one of the greatest challenges facing marketing and brand managers today. For example, Rust and colleagues 58 | S u m m e r P r o j e c t R e p o r t
  59. 59. See More, See Clear (2004, p. 76) note that marketers have not been held accountable for showing how marketing adds to shareholder value and that “this lack of accountability has undermined marketers’ credibility, threatened the standing of the marketing function within the firm, and even threatened marketing’s existence as a distinct capability within the firm.” Brand-The initial framework, developed in the 1990s, was based on four pillars: differentiation, relevance, esteem, and knowledge (Agres and Dubitsky 1996). Implications from this model have helped shape thinking on various brand issues. For example, Aaker (1996, Chap. 10) uses the BAV model as one of the key inputs into formulating his “brand equity ten” and has continued to make use of the framework to highlight the crucial role of differentiation in brand building (Aaker 2004, p. 136; Aaker and Joachimsthaler 2000, p. 263). Y&R recently modified its framework and introduced a fifth pillar called “brand energy.” 1 The measure is based on the Y&R survey questions reflecting the degree to which the brand is viewed as (1) innovative and (2) dynamic. The Pillars of the Initial Y&R BAV Model Researchers have repeatedly established that the brand beliefs generated by an advertisement affect consumer perception of the physical product during subsequent trial (e.g., Deighton and Schindler 1988; Kempf and Laczniak 2001; Kempf and Smith 1998; Marks and Kamins 1988; Olson and Dover 1979; Smith 1993). However, those studies have typically exposed consumers to the physical product shortly after exposing them to advertising. It is therefore likely that in the marketplace a more extensive time lag occurs between both exposures with beliefs decaying over time and that effects exist from perceived product physical attributes on specific post experience brand beliefs in such cases (Kempf and Smith 1998). Advertisement Effectiveness The role of advertisement is to 59 | S u m m e r P r o j e c t R e p o r t
  60. 60. See More, See Clear ➢ Give your customer the reason to keep buying from you ➢ Attract Must -Have customers to try your products ➢ Increase the sales and profits (Core customers are company’s most loyal customers who are willing to pay a fair price for a product or service. Must-Have customers are people who could become the core customers, but they currently do business with the competition. Advertisement effectiveness can be checked a process call “Plus Over Normal”. To determine the Plus over Normal results every ad is benchmarked against the normal business baseline. The lift from the ad is sales can then be evaluated. There are only three measures of advertising effectiveness: ➢ Did core customers increase their spending with the company after seeing my advertising? ➢ Did any Must-Have customers start doing business with the company after seeing the advertising? ➢ Did the ads generate a net profit? The Effects of Advertising and Brand Value on Future Operating and Market Performance Li Li Eng and Hean Tat Keh This paper examines the joint effects of advertising and brand value on the firm’s future operating and market performance. We operationalize future operating and market performance as future accounting returns and future stock returns, respectively. Our results show that both advertising and brand value improve future accounting returns at the firm level. The impact of advertising and brand value on future stock returns is minimal. We find that spending on advertising results in better brand sales and brand profitability. Brand value is also a good 60 | S u m m e r P r o j e c t R e p o r t
  61. 61. See More, See Clear predictor of brand performance. Thus, we conclude that advertising and brand value benefit the brand and the firm through improved accounting performance. In this paper, we investigate the impact of advertising and brand value on future operating and market performance. Key intangible assets such as brand value (or brand equity), product differentiation, and goodwill are the outcomes of investment in advertising. It is generally believed that advertising contributes to the creation of brand value (Chaudhuri 2002; Chu and Keh 2006; Kimelman 1993; Sheinin and Biehal 1999). Mizik and Jacobson (2003) argue that brand-based advertising can create a comparative advantage for firms through its ability to differentiate the firm’s product. The brand can be a formidable barrier to imitation, as brand equity is difficult for competitors to copy, becoming an effective entry deterrence strategy. Industry observers and analysts note that many companies continue to emphasize brand-building activities. For example, Samsung has been rated by Interbrand, a brand-consulting firm, as the fastest-growing brand over the past few years (“Yun Jong Yong” 2004). The CEO of Samsung, Yun Jong Yong, has been instrumental in driving the creation of its brand value, claiming, “Our future will depend on our brand equity.” While brand value creation is generally regarded as a “good thing,” we need to have more concrete measures of brand value appropriation (i.e., extracting profits from brand value). Merely knowing the effect of brand value on purchase intent (Cobb-Walgren, Ruble, and Donthu 1995) is inadequate; Chaudhuri (2002) proposes a stylized model of how brand reputation affects the advertising–brand equity link. Using survey data, the models brand reputation as a mediator on the effect of brand advertising, brand familiarity, and brand uniqueness on brand equity outcomes. His results suggest that advertising directly or indirectly affects brand equity measured as brand sales, market share, and relative price. Second, firms spend large amounts annually on advertising and brand value creation with the expectation of reaping returns in the future. As such, it is important to examine not only the contemporaneous effect of advertising or brand value on firm performance, According to Low and Mohr: “To be sure, advertising is vital to brand equity. However, advertising, per se, is not a 61 | S u m m e r P r o j e c t R e p o r t

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