Advertising1

ADVERTISING PLANNING CYCLE Where are we? ↓ Why are we? ↓ Where could/should we be? ↓ How could we get there? ↓ Are we getting there? ↓ Where are we?

ADVERTISING STRATEGY BASED ON COMPANY PLAN ↓ THE INDIVIDUAL BRAND’S MARKETING STRATEGY ↓ THE BRAND’S ADVERTISEMENT STRATEGY

OBJECTIVES FOR THE ADVERTISING CAMPAIGN:

.

THE TARGET AUDIENCE

. THE PROPOSITION

. THE WAYS IN WHICH THE CAMPAIGN SHOULD WORK

DEFINING TARGET AUDIENCE 1.NEW USERS ENTERING A GROWING MARKET 2.NEW USERS ENTERING A GROWING MARKET SEGMENT FROM A DIFFERENT SEGMENT 3.ATTRACTING USERS OF OTHER BRANDS WITHIN THE MARKET SEGMENT 4.INCREASED USAGE FREQUENCY 5.INCREASED USAGE QUANTITY THROUGH GENERATING NEW USERS 6.RETAIN EXISTING USERS AND MAINTAINING THEIR USAGE FREQUENCY/QUANTITY

MARKETERS ARE ADVISED TO EVALUATE THE OVERALL TRENDS IN THE MARKET, IN THE MARKET SEGMENT, AND FOR THE BRAND AND THEN DECIDE:

. HOW MUCH TO INCREASE THE PENETRATION BY ATTRACTING NEW USERS ( 1,2,3 & 6 ABOVE)

. HOW MUCH TO INCREASE PURCHASE FREQUENCY BY CURRENT USERS (4 & 6 ABOVE)

. EXPLORE NEW USAGE OCCASIONS (5 & 6 ABOVE)

PROPOSITION

DESCRIPTION OF THE ELEMENTS THAT DISTINGUISH THE BRAND ADVERTISED FROM ALL OTHER BRANDS

.

THE SIGNALS AND ARGUMENTS THAT PLACE THE BRAND IN THE TARGET AUDIENCE’S MIND ARE “ MOTIVATORS”

. THE FUNCTIONAL ASPECTS AND A DIFFERENT PERSONALITY ARE “DISCRIMINATORS”

SOME OF THE PROPOSITIONS CAN BE: PROPOSITION EXAMPLES PRODUCT CHARACTERISTICS ARIEL, WHISPER USER CHARACTERISTICS SANTRO (SHAH RUKH) TATA TEA, SPEED WAYS OF USING THE PRODUCT CADBURY’S, VIP HOW THE PRODUCT IS MADE KITPLY, DANDI PRICE CHARACTERISTICS NIRMA IMAGE CHARACTERISTICS SURF, LUX SATISFYING PSYCHOLOGICAL/ PHYSIOLOGICAL NEED PERK, KS, COMPLAN PRODUCT HERITAGE RAYMONDS, TATA DISADVANTAGE OF NON-USE HARPIC/ CEASEFIRE DIRECT COMPARISON WITH COMPETITORS THUMPS UP/ SPRITE NEWSWORTHINESS BRITTANNIA GENERIC BENEFITS DRUGS (OTC)/ DETTOL

ROLES OF ADVERTISEMENTS: KING CONTINUUM: DIRECT: . TAKE ACTION ( PROMOTIONAL ADVERTISEMENTS ) . SEEK INFORMATION ( LIC ) . RELATE TO NEEDS/WANTS/DESIRES ( KRACK CREAM ) . RECALL SATISFACTION/ SHORTLIST ( FAIR GLOW SOAP ) . MODIFY ATTITUDES ( PEPSI DURING MONSOON ) INDIRECT: . REINFORCE ATTITUDES ( SANTOOR: YOUNGER LOOK )

JAMES WEBB YOUNG:

FIVE WAYS IN WHICH ADVERTISEMENTS WORK:

. BY FAMILIARISING ( UJALA )

. BY REMINDING ( SURF AND COMMONSENSE )

. BY SPREADING NEWS ( PEPSI FOR ICC )

. BY OVERCOMING INERTIA ( WHISPER )

. BY ADVERTISING A VALUE NOT IN THE PRODUCT ( PILLSBURY ATTA- SOFTNESS )

FCB GRID: THINK FEEL HIP LEARN – FEEL –DO FEEL –LEARN –DO (CAMERA/CARS) (SHAMPOO/OIL SACHETS) LIP DO-LEARN-FEEL DO-FEEL – LEARN (GREETING CARDS) (PERFUMES/COSMETICS)

THREE CRITICAL ASPECTS OF EFFECT ON VIEWERS: INVOLVEMENT : PROVIDING IMMEDIATE CHALLENGE/ INTEREST STATUS / GENERATE ENHANCEMENT LIKEABILITY: OGILVY CENTRE STUDY: INGENUITY / MEANINGFULNESS/ WARMTH/ ENERGY/ RUBS THE WRONG WAY RECALL OF COMMUNICATION: RECALL = ATTENTION + LIKING ↑ ↑ LIKEABILITY INVOLVEMENT

THOERIES OF ADVERTISEMENT:

1. ADVERTISEMENT CREATES BRAND AWARENESS WHICH LEADS TO BRAND PREFERENCE

2. DIFFERENTIATION Vs SALIENCE THEORY

3. ADVERTISEMENT AND ITS IMPACT ON BRAND PYRAMID

BRAND PYRAMID

BONDED

ADVANTAGE

PERFORMANCE

RELEVANCE

PRESENCE

4. NO-BRANIER THEORY

CLASSIC CREATIVE APPROACHES:

. BURNETT’S “ INHERENT DRAMA”

REEVES’ “UNIQUE SELLING PROPOSITION”

OGILVY’S “ BRAND IMAGE”

BERBANCH’S “EXECUTION EMPHASIS”

TROUT AND RIES’S “ POSITIONING”

. VAUGHN’S “ MESSAGE MATRIX”

THINK FEEL

HIP

INFORMATIVE AFFECTIVE

Test:RECALL DIAGNOSTICS ATTITUDINAL CHANGE

Creative:SPECIFIC INFORMATION, EXECUTIONAL DEMONSTRATION IMPACT

Example: SAVLON CADBURY’S

LIP

HABIT FORMATION SELF SATISFACTION

Test: SALES SALES

Creative: REMINDER ATTENTION

Example: CLINIC GODREJ FAIR GLOW SOAP

ANTI-DANDRUFF SHAMPOO

WHAT MAKES A SUCCESSFUL ADVERTISEMENT? BRANDING : CLEAR, STRONG BRANDING CONSISTENCY : MUSIC,SOUND, SYBOLS, STYLES ETC. UNIQUENESS : DISTINCTIVE COMMUNICATION INVOLVEMENT : GENERATING IDENTIFICATION/ EMPATHY/TRIGGER POSITIVE EMOTIONS/AVOID CAUSING FEAR/CURRENT TRENDS LIKEABILITY: STORY/MAIN MESSAGE - DRAMATIC VALUE OF EXPERIENCING –ATTRACTIVE PICTURES/MUSIC RELEVANCE AND UNDERSTANDING: PLC/ NO OVER EMPHASIS/CLEAR UNDERSTANDING EXECUTION ELEMENTS: GOOD CASTING/NO SOUND INCOSISTENCIES/ ATTENTION TO DETAILS/ STORIES SHOULD NOT BE COMPLICATED/ ACOUSTICS/ FAST CUTS AND SEQENCES TO BE AVOIDED

ISSUES THAT AFFECT THE ADVERTISEMENT DEVELOPMENT PROCESS: MARKET INFORMATION/CONSUMER INFORMATION CREATIVE BRIEF SHORT LISTING CONCEPTS TESTING FINE-TUNING THE STORY BOARD PRODUCER’S CHOICE

COPY WRITING KINDS OF ADVERTISING COPY: NATIONAL ADVERTISING/ RETAIL ADVERTISING/ TRADE ADVERTISING/ INDUSTRIAL ADVERTISING/ PROFESSIONAL ADVERTISING/ NON PRODUCT OR IDEA ADVERTISING

THE INFORMATION NEEDED FOR COPY PREPARATION:

WHAT ARE THE DESIGN AND PERFORMANCE

CHARACTERISTICS OF A GIVEN PRODUCT?

WHAT DOES IT CLAIM TO DO?

HOW DOES YOUR PRODUCT DIFFER FROM OTHERS

ON THE MARKET?

HOW IT IS PRICED?

USP? IS IT A NEW PRODUCT? PLC?

PRODUCT OF PROVED CONSUMER APPEAL?

BUYING MOTIVES TO BE UNDERSTOOD BY COPY WRITER: DESIRE FOR RECOGNITION FROM ONE’S PEERS DESIRE FOR SUPERIORITY DESIRE FOR GOOD HEALTH AND LONG LIFE DESIRE FOR COMFORT DESIRE FOR APPETISING FOOD AND DRINK DESIRE FOR SECURITY DESIRE TO EARN MONEY DESIRE TO SAVE MONEY DESIRE TO PROTECT ONE’S FAMILY DESIRE TO WIN APPROVAL OF THE OPPOSITE SEX DESIRE TO SAVE TIME DESIRE TO MINIMISE LABOUR DESIRE FOR AMUSEMENT

COPY APPEALS ACQUISITIVENESS - ONIDA LOVE AND SEX - MOODS/ TUFF SHOES EGOTISM, STATUS OR PRESTIGE - HYUDAI ACCENT HEALTH AND VANITY - VIDEOCON/LG CURIOSITY - NESCAFE/ TITAN DUTY OR OBLIGATION - WESTERN UNION HERO WORSHIP - AB COMFORT - INDIGO SENSORY REACTION - NOKIA / KURLON OR PLEASURE FEAR - MK SWICHES/LIC HAPPY HOME LIFE - WHIRLPOOL/V-GUARD

CHECKLIST FOR HEADLINES: PRESENCE OF HEADLINE MUST BE ARRESTING DRAW THE READER’S INTEREST INTO THE BODY COPY SELECT THE INTERESTED POTENTIAL CUSTOMER CARRY THE MAIN SELLING PROPOSITION COMPLETE SENTENCE CONTAIN A VERB – ADD DRAMA AND ACTION PROVACATIVE HEADLINE IF NEEDED

CHECKLIST FOR COPY WRITING MUST INVOLVE THE SELECTED AUDIENCE SHOULD COMMUNICATE ITS OBJECTIVE CLEARLY WORK WITH THE VISUAL HELP PROVIDE IDENTITY FOR THE PRODUCT PROVIDE CONTINUITY/ MAINTAIN THE “YOU” POINT AVOID SAYING WE GIVE 50% DISCOUNT INSTEAD SAY YOU HAVE 50%. OPEN WITH CUSTOMER BENEFIT MAKE BELIEVABLE STATEMENTS SUPPORT ALL CLAIMS WITH SPECIFIC PROOF INFORM WHERE TO BUY THE PRODUCT USE LANGUAGE THAT IS APPROPRIATE, CURRENT & HONEST MAKE A CLOSING STATEMENT

GUIDELINES FOR CREATING EFFECTIVE RADIO COMMERCIALS ISOLATE THE OBJECTIVE OF A GIVEN COMMERCIAL OPEN WITH AN ATTENTION-GETTING SOUND DEVICE PRESENT AN INFORMATIVE MESSAGE THAT WILL CREATE PLEASANT PRODUCT ASSOCIATIONS KEEP SELLING POINTS TO A MINIMUM USE WORD TO CREATE PICTURES; USE THE SOUND OF WORDS REPEAT IMPORTANT WORDS, ELEMENTS AND NAMES AVOID OFFENDING YOUR LISTENERS WITH UNBELIEVABLE CLAIMS OR SUSPCIOUS OFFERS PERSUADE, DO NOT BULLY THE LISTENERS AVOID TOUNGE TWISTERS KEEP THE DIALOGUE BELIEVABLE AND UNFORCED MAKE YOUR ENDINGS STRONG, POSITIVE NEVER FORGET YOU ARE WRITING FOR THE EAR/MIND READ THE SCRIPT ALOUD FOR CLARITY AND TIMING KEEP THE COSTS OF PRODUCTION IN MIND

GUIDELINES FOR EFFECTIVE TV COMMERCIALS SINGLE OUT ONE IMPORTANT SELLING POINT OR PRODUCT BENEFIT THE VIDEO AND AUDIO MUST RELATE EACH OTHER RELY ON VIDEO TO CARRY MORE THAN HALF THE WEIGHT OF THE MESSAGE APPEAL TO YOUTH IS FULL OF ACTION TIME THE COMMERCIAL LEARN THE LANGUAGE OF TELEVISION PRODUCTION GET TO THE TELEVISION STUDIO WHEN THE COMMERCIAL IS BEING PRODUCED

Most brand advertising depends on a series of ads run over a period of time—in other words, a campaign

The Campaign

The situation analysis is the first step in developing a campaign

Situation Analysis

Planning Cycle

The Product

What are the unique consumer benefits the product will deliver?

What is the value of the product relative to the proposed price?

Are adequate distribution channels available?

Can quality control be maintained?

Situation Analysis (continued)

Prime-Prospect Identification

Competitive Atmosphere and Marketing Climate

Situation Analysis (continued)

Determine the specific claim that will be used in advertising copy

Consider various advertising executions

Develop the copy and production of advertising

Creative Objectives and Strategy

Creative Criteria for Campaigns

Visual Similarity

Verbal Similarity

Aural Similarity

Attitudinal Similarity

Creative Objectives and Strategy (continued)

Media Strategy

Prospect identification

Timing

Creative Considerations

Media Tactics

Media Scheduling

The Sales Promotion Plan

Media Objectives

Important that every aspect of your integrated marketing communication functions as one voice

Other Integrated Elements

Present a statement of the company’s marketing goals

Describe the philosophy and strategy of the advertising

Give reasons for believing the proposed plan will help attain firm’s objectives

Getting the Campaign Approved

Campaign Portfolio

Steps in preparing as national campaign for a consumer product:

Situation analysis

Creative objectives and strategy

Media objectives

The sales-promotion plan

Getting the campaign approved

Research posttests

Research — Posttests

BRITTANIA - MTV-BRAND EQUITY YOUTH MARKETING FORUM LML - FAIRS IN NORTH India LIBERTY SHOES - FASHION SHOW CANDICO - FAIRS IN FIVE TOWNS AMUL - RURAL DISTRIBUTION INNOVATIVE MARKETING CAMPAIGNS LIPTON YELLOW LABEL – PAINTING WALLS YELLOW NESCAFE – NESCAFE CAFES

CADBURY’S DAIRY MILK CHOCOLATE

USE RESEARCH TO IDENTIFY THE OBSTACLES TO INCREASE IN CONSUMPTION;

MAKE A BREAK WITH THE PAST EVEN IF THE OLD BENEFITS WERE STRONG;

REVIVE THE BRAND TO TARGET NEW SEGMENT;

REPOSITION THE PRODUCT CATEGORY FIRST;

CREATE NEW IMAGE TO APPEAL CUSTOMER’S FUTURE VALUES;

PROVIDE DISTRIBUTION SUPPORT TO SERVICE THE NEW CUSTOMERS.

HERO CYCLES - CLEVER MARKET SEGMENTATION AND WELL DEFINED BRANDING AND POSITIONING STRATEGY

TITAN:

STATE OF ART TECHNOLOGY;

INNOVATION IN PRODUCT;

HIGH QUALITY;

UNPRECEDENTED CHOICE OF MODELS;

HIGH PROFILE PROMOTION;

SHOWROOM LED DISTRIBUTION;

ENVIABLE MARKETING

How to promote in the cut throat market

Speed (Dandi salt)

Innovation – Technology (Samsung)

Exploit home grown equity (Amul)

Leverage cost leadership (Nirma)

Fragment by extension (Colgate)

Region concentration (Dabur)

Tactical promos (Cease fire)

FIGHTING COMPETITIONS SIX STRATEGIES FROM THE PANCHATANTRA

PEACE - STANCHART/ANZGRINDLAYS

WAR - COKE /PEPSI

CHANGE OF BASE - SOLIDAIRE

ENTRENCHMENT - SMALL COMPANIES SIVAKASI

ALLIANCES - P&G/GODREJ

DUPLICITY - THUMPSUP/CAMPACOLA

HINDUSTAN MOTORS - RTV TITAN INDUTRIES - SONATA BPL CELLULAR - RURAL TARIFF UNION CARBIDE - HEAVY BRASS TORCH VELVETTE - SACHETS KMP OILS - GREEN PACKS (UP) PURPLE (ORISSA) PROGNOSTIC RURAL MARKETING STRATEGIES

IN THE PERSONAL WASH SEGMENT WITH A MARKET-SIZE OF RS 3,203 CRORE, HLL HOLDS 60.1 PER CENT, WITH NIRMA AT 12.6 PER CENT.

IN WASHING POWDERS, WITH A MARKET-SIZE OF RS 2,114 CRORE, HLL HAS A MARKET-SHARE OF 39.7 PER CENT, FOLLOWED BY NIRMA AT 23 PER CENT. NEW PLAYERS ARE EMERGING WITH ACES UP THEIR SLEEVES.

KANPUR TRADING COMPANY (KTC) HAS SO FAR CONFINED ITS MARKETING ACTIVITIES TO UP AND ADJOINING MARKETS. WITH THIS LIMITED COVERAGE, ITS BRAND GHADI HAS EMERGED AS THE LARGEST SELLING SINGLE BRAND IN UP, IS ALMOST AS BIG AS SURF AND HAS CROSSED THE RS 550-CRORE SALES MARK.

CHIK SHAMPOO INTRODUCED CHIK SHAMPOO SACHETS AT 50 PAISE FOR THE RURAL CUSTOMER. CHIK HAS EMERGED AS THE SECOND LARGEST SELLING SHAMPOO.

CADBURY REPORTEDLY WAS ABLE TO INCREASE ITS SALES BY ABOUT 19 PER CENT IN THE VERY FIRST YEAR IT LAUNCHED SMALL PACKS OF DAIRY MILK AND PERK.

MAHINDRA & MAHINDRA, WHILE RECENTLY LAUNCHING ITS SPORT UTILITY VEHICLE SCORPIO CONDUCTED WEEKLY QUIZZES FOR THEIR DEALERS AND SALES-FORCE, TO UPDATE THEIR PRODUCT KNOWLEDGE.

CHIK, COLOR PLUS, GHARI, NIRMA, SHAKTHIBHOG ATTA, PRIYAGOLD BISCUITS —SUCCEEDED NOT BECAUSE OF THE MISTAKES OF THEIR COMPETITORS, BUT BY BRINGING IN RADICAL, INNOVATIVE THINKING .

LARGER ESTABLISHED COMPANIES BECOME PRISONERS OF THEIR PAST SUCCESSES. BEING MORE TASK-ORIENTED, THE CUSTOMER ORIENTATION IS LOST AND SO IS CREATIVE THINKING.

AS PER THE A&M SURVEY OF INDIA'S TOP BRANDS 2002, THE TOP 10 BRANDS ARE: COLGATE, DETTOL, TATA, LUX, LIFEBUOY, BRITANNIA, VICKS, SURF, NIRMA AND BATA . EXCEPT NIRMA ALL THE OTHER BRANDS ARE FROM THE "ESTABLISHED" MARKETING STABLES.

Product Stage in the Product Life Cycle Introduction Maturity Brand Launch Maintenance Non- Durable product Durables Use of demostration and trials to create knowledge and adoption The focus is on creating an image and getting the retailer to promote Reminder, advertising and availability Demonstration with focus on opinion, leaders to educate, create favourable attitude and conviction Image building, demonstration of advantages and use of opinion leaders Retaining image and customer satisfaction

1999-00 1995-99

21.9% BPL 22.3%

11.2% VIDEOCON 22.1%

10.9% ONIDA 17.3%

8.3% SAMSUNG 1.2%

7.6% LG NA 6.3% AIWA NA

5.1% PHILLIPS 11.3%

4.5% SONY 4.0%

4.1% AKAI 3.3%

3.6% SHARP 4.2%

3.2% SANSUI NA

2.9% THOMSON 2.8%

1.9% PANASONIC 2.8%

1.4% CROWN 2.7%

1.1% TEXLA NA

TELEVISION INDUSTRY

TV SECTOR – 2005-06 LG - 27.0% SAMSUNG - 14.5% ONIDA - 11.0% VIDEOCON - 8.6% SONY - 7.3% PHILLIPS - 6.3%

KOREAN SUCCESS:

RELENTLESS AGGRESSION

RESOURCES FOCUSED ON A SINGLE DIFFERENTIAL

LEADERSHIP IN AD SPEND

BROAD AND CONTEMPORARY PRODUCT RANGE

APPROPRIATE PRICING

MNC STRENGTHS:

Deep pockets that support brand building over several years

Superior marketing/brand building skills

Ability to adapt to the local conditions

Back up of superior technology

Experience gained from operations in several markets around the globe

DALDA EXPERIENCE

INTRODUCED IN 1936 AS AN ALTERNATE FOR GHEE

CHEAPER THAN ANY MILK BASED FAT

FIRST CONSUMER PRODUCT TO BE INTRODUCED WITH DEMONSTRATIONS AND MERCHANDISING

NATIONAL DISTRIBUTION WITH POP DISPLAYS

LINE EXTENSIONS INTO COOKING OILS FAILED

CONSUMER BEHAVIOUR HAS CHANGED TO THE EXTENT THAT THERE IS GREATER EMPHASIS ON CHEAPER REFINED EDIBLE OILS AND HELATHY LOW CHOLESTROL OILS

HLL COULD NOT LEVERAGE THE STRENGTH OF DALDA FOR OTHER PRODUCTS

JUNE 2003, BUNGE (US) OBTAINED THE BRAND FROM HLL

INNOVATIVE MARKETING CASE STUDIES HITACHI – BHOOT / DIRECT MAILERS / USE OF CONSUMER CONTACT PROGRAMME OF JOHNY WALKER WHISKY BAJAJ FANS – LAUNCHING RELATIONSHIP MARKETING EXERCISE FOR DEALERS (sabse tez) VOLTAS - AMERICAN TECH AT CHINESE PRICES – RURAL REFRIGERATOR

BRANDS THAT HAVE SUSTAINED SUCCESS

HERO HONDA

TIGER

TITAN

BISLERI

RELIANCE

NIRMA

DABUR VATIKA

PARACHUTE

NIHAR

BAJAJ – BRAHMI AMLA

BRANDS THAT HAVE SUSTAINED SUCCESS

“ No victory is permanent and one needs to sustain the territory wrested from the enemy” – You need constant aggression through promotions Panchanthanthra

Thank you