Impact of advertising in business

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Impact of advertising in business

  1. 1. TITLE OF THE REPORT:
  2. 2. PREFACE It is a matter of great honour for me to present before my humble readers thisproject based on the study of “Advertising Agencies”. The foregoing presentation is anhonest and painstaking effort on my part in black and white about the colourful world ofadvertising agencies. The data collected by me is both primary as well as secondary. Ihave taken assistance from knowledgeable and apt taskmasters shouldering work f greatresponsibility in some of the reputed advertising agencies. However, with due respect tothe urge of these agencies for maintaining secrecy about their operations and financialdata ,I also had to resort to secondary sources for obtaining data like newspapers,magazines and the websites of these agencies. Although the information obtained fromsecondary sources may prima facie seem to be paralysed by window dressing, to beabsolutely frank with my understanding readers, it has been discovered that this data is asreliable as the one I have obtained from the horse’s mouth for other agencies. Due to paucity of time and reluctance of certain internationally acclaimedadvertising agencies in co-operating with me for this project due to some obvious reasonson their part ,I have been able to cover in this project a study of 6 agencies. But theforegoing pages will warrant my painstaking efforts and the extensive study undertakenby me for each of them. So, with due respect to my patient readers for the time they will spare for myproject and with confidence flowing through my nerves that both the time and patience ofmy readers will not be tried and tested and but duly rewarded with the intensity of myefforts , I carry you gracefully into my world of advertising agencies…………… 2
  3. 3. ACKNOWLEDGEMENTS 3
  4. 4. EXECUTIVE SUMMARY1. OBJECTIVE : To study the various advertising agencies; the ones having local operations as well as the ones have international scale of operations, their modus operandi, styles and the manner of functioning, their profiles, their upswing and their downfall and last but not the least their position in the world of advertising on the basis of the contributions to the ad world and society at large.2. METHODOLOGY : In order to achieve the above-mentioned objective and finish the study to perfection, I have made a judicious and a balanced use of primary sources as well as secondary sources of data collection. Well, the primary sources comprise of personal visits to the administrative offices of some known advertising agencies and a direct communication with the persons who were knowledgeable and in-charge of the operations. To facilitate in my operations, I had first chalked out a detailed questionnaire covering in length all questions that would serve the purpose in the most efficient and productive way. The preparation and the formulation of the questionnaire was on the basis of many considerations viz., the time that the answeree would require to give me the required answers, the importance of that time and the cost involved. A copy of the said questionnaire is included elsewhere in this project as an Annexure. Although the efforts were directed basically towards obtaining information required for the study from primary sources to the maximum possible extent, due to factors like lack of co-operation anticipated from stalwarts and internationally acclaimed agencies, considerations of these agencies over secrecy of data regarding their operations, lack of time for answering the questionnaire and unavailability of the persons-in-charge, I 4
  5. 5. also had to resort to secondary sources like websites, magazines, newspapers etc. Bibliography of these sources forms a part of this Project for ready reference of the reader. A sample of six agencies was chosen on the basis of their scale of operations, reputation and quick accessibility.3. CONCLUSIONS : During the course of this study I have observed many a facet of the advertising agencies ----- their strengths, their weaknesses, their opportunities and threats which deserve a mention :⇒ Most of the advertising agencies are basically interested in catering to just the needs of the consumer irrespective of the nature of the product or service proposed to be advertised.⇒ The primary objective of the agencies is basically profit generation and profit maximisation.⇒ The agencies conduct a SWOT of the client but not of the product at the time of accepting an assignment.⇒ There is not much of a dynamism in this agencies as far as expansion plans are concerned, diversification objectives are involved or specialisation motives are in question.⇒ Not much is done by these agencies for the social welfare and advertising of social values⇒ The agencies are highly committed to their activities but sometimes they tend to be over-professional in their attitudes, over-reserved in the choice of strategies, over- confidential in their operations and over-aggressive in competition.⇒ Not many agencies are laying too much emphasis on selection of proper human resources or managerial personnel. They appear over-burdened by objectives of cost control. 5
  6. 6. ⇒ There is not proper training imparted to people working in the modestly positioned advertising agencies. Due to this, there is lack of specialisation, improvisation and dynamism.4. RECOMMENDATIONS: The following are recommended in view of the importance and the strategic position occupied by these agencies :⇒ The advertising agencies should function in a healthily competitive environment rather than in an aggressive world of cut-throat competition.⇒ The agencies should definitely give importance to profit maximisation but at the same time function in public interest as far as charges and quality of products is concerned.⇒ The agencies should also conduct a SWOT analysis of the products to be advertised at the time of accepting assignments alongwith the routine SWOT analysis of the clients.⇒ There should also be a provision for staff training whereby the staff is properly motivated and educated for the roles they perform in the organisation leading them to specialisation and perfection.⇒ The advertising agencies should also have a perspective of tapping new avenues, creating mew markets and pursue global expansion for the benefit of themselves and for the country at large. 6
  7. 7. Table of ContentSr.No Topic Page NoCH 1 Research Methodology 11CH 2 Introduction 14CH 3 Profile 3.1 Introduction to Advertising Agencies 18 3.2 Functions of Advertising Agencies 18 3.3 Model Organization Structure 22CH 4 ADVERTISING AGENCIES 1 XEBEC 1.1 The Whereabouts 23 1.2 Modus Operandi 23 1.3 The Canvas on which Xebec paints its product 24 1.4 How can I know about Xebec? 24 1.5 SWOT Analysis 25 1.6 Case Studies 27 1.7 Awards and Achievements 30 1.8 Who’s who in Xebec 31 1.9 Divisions of Xebec 31 1.10 List of Clients 33 2 CARAT 2.1 The Whereabouts 34 2.2 Modus Operandi 34 2.3 SWOT Analysis 35 2.4 List of clients 37 3 CANCO 3.1 The Whereabouts 38 3.2 Modus Operandi 38 3.3 SWOT Analysis 38 3.4 Canvas on which Canco paints its product 41 3.5 How can I know about Canco 41 3.6 Organization Structure 41 3.7 Facilities offered by Canco 42 3.8 Awards 42 4 MCCANN - ERICKSON 4.1 History 43 4.2 Who’s Who 43 4.3 Modus Operandi 45 4.4 SWOT Analysis 57 5 MUDRA 5.1 History 60 5.2 Pioneers in Advertising Agencies 61 5.3 Divisions 62 5.4 Founder 62 7
  8. 8. 5.5 List of Awards 63 5.6 Major Clients 64 5.7 Organization Structure 66CH 5 SWOT Analysis of Advertising Agencies-Comparative 67 StudyCH 6 Statistics 6.1 Comparison between Gross Income of Top 25 Agencies 69 6.2 Growth of Advertising Agencies 70 6.3 Top 20 Advertising Agencies 72 6.4 Top 20 Advertising Spenders 73 6.5 Agencies Ranking 74 6.6 2001- Top Ten Multinational Advertisers 75 6.7 2001- Top Ten Advertising Agencies 75 6.8 Comparison of Agencies on the basis of Worldwide Gross 76 Income 6.9 Graph of Growth of Agencies 77CH 7 Suggestions and Recommendations 78CH 8 Conclusion 80CH9 Annexure 82CH10 Bibliography and Webliography 84 8
  9. 9. RESEARCH METHODOLOGYTopic : STUDY OF ADVERTISING AGENCIES1. OBJECTIVE : The project deals with the study of advertising agencies encompassing a multi- dimensional discussion on the whereabouts of these agencies, their modus operandi, their manner and coverage of operations, their strengths, weaknesses, opportunities available to them and the threats posing obstacles in their journey to the max. This study shows the diversity underlining their operations and at the same time the unity in aims, objectives and target. As during the preparation of this project, some inevitable obstacles and natural hindrances restricted the scope of this study just as these agencies are restricted by many environmental and socio-economic factors, nonetheless, its a sincerest attempt to do the best possible justice to the said topic.2. AGENCIES COVERED : (1) Xebec (2) Canco (3) McCann-Erickson (4) Carat (5) Percept (6) Mudra3. FROM PLACES TO PAPER : 9
  10. 10. The data required for this study as per my vision was collected from the following two types of sources : (1) Primary Sources (2) Secondary Sources Primary Source of data collection was tapped in the following manner :(1) Personal visits : This was given the topmost priority. Well, any information from the horses mouth gives a touch of reality, practicability and conviction to every study and this aspect made it an area of key importance. I visited three agencies viz., Xebec, Carat and Canco, though I approached many others including the topnotch like Ogilvy & Mather, Mudra, Lowe. However to my utter disappoin”ent and ill-fate, I never succeeded in getting appoin”ents from the ones. In the agencies I visited, I contacted those taskmasters who were holding positions of no less importance and who had a thorough knowledge of the environment of their respective agencies, the operation, the style of working and the clientele. At the same time, I found these people quite enterprising, professional-to-the-core in their approaches, knowledgeable, speech-conscious and very co-operative. I basically got answers to all the questions that were put in the questionnaire in an unhesitating and amicable way. (2) Sending questionnaires : To those organisations that showed their firm unwillingness in attending to me personally, I sent my questionnaires through internet to the key personnel in an attempt to convince them into giving some information about the agencies for whom they toil. Some replied back courteously; either disclosing their helplessness in giving information or informing me to surf their websites and get all possible information to my u”ost satisfaction (an advertisement for advertisers). Secondary sources of data collection : 10
  11. 11. On account of the cold shoulder given to me by the media-giants and their contemporaries, I had to resort, as also advised by some of them, to secondary sources of information like newspapers, websites and books for supplementing the information obtained from primary sources and sometimes for the main information. Honestly, the information obtained from the websites was detailed and sufficient to an extent that would even surpass those of primary sources. In the ocean of the information that the websites contained for each agency, I had to fathom for the most precious gems which required crisp editing, preciseness and good scissor-work. Also newspapers like The Economic Times and its supplementary called Brand Equity did leave their imprints on the papers of the project to follow and their contribution to this presentation cannot undermined and unnoticed. Help was also taken from books based on advertising and marketing to give a better appeal to this study and enrich it with more detailing and liveliness.4. RESULT The cummulative result of primary sources of data collection and secondary sources is obvious from the pages that follow. However, I have been able to generate sufficient information and moreover, in detail from all the sources employed in an endeavour to leave no stone unturned in justifying the selection of this topic and advertising agencies, at large. Though marred by some obstacles, I am convinced that my painstaking efforts and drops of sweat that have made the papers intangibly wet and the ink of the pen go dry will convince my patrons carrying good doses of expectation from this project.5. DIFFICULTIES FACED : 1. Stipulations and urge for strict adherence to the length of this project upto a maximum of 80 pages forced me to run the merciless scissor on many points. The pen was on but the papers were gone. 2. Lack of co-operation from the stalwarts and the internationally acclaimed ad- giants has been the biggest obstacle in the way. Though, they are very much 11
  12. 12. justified and I give due consideration to their urge for maintaining confidentiality about their operations and financials, I still believe that had this information, however explanatory it is, been obtained from them directly, it would have definitely made neighbours envy and owner pride. 3. Unavailability of concrete sources of secondary data was another hindrance. Though websites form an exception, barring them there was hardly a source that carried some potential in meeting the requirements. Prestigious publications like A & M have faced shut doors of printing presses and a replacement is still hiding in some unknown corner of invisibility. In a nutshell, all these ingredients which have gone into the making of this recipe wait a verdict from the readers for their taste. INTRODUCTIONThe word that bridges the gap between “no more” to “know more”- Advertising……….and further between “know more” and “grow more”. Knowledge is power, they say andtoday the biggest weapon of power in anyone’s hands is that of advertising. Just as wateris to a fish, advertising is to business; something without which the basic question ofsurvival is bound to rise.In this jungle of name and fame, where every creature confidently defies WilliamShakespeare when he says,” What’s there in a name” there is definitely everythingattached to name and it’s this name which gives you fame……And what gives an identityit’s name? Well, the only golden word “Advertising” Definitely roses will not smell lesssweet by any other name but businesses will undoubtedly go back to the coffers if theworld forgets their names and to keep them alive in the minds of billions, you go forpublicity.Today everyone advertises – from crèches to crematorium ,from hotels to hospitals, fromclubs to pubs,from marriage bureaus to lawyers…… well name it and you have it.Everyone needs recognition, from a 6 month baby in the cradle to a 60 year old preparingfor a graveyard, from a beggar to a billionaire…… everyone wants you to recognize in atrain or in a plane , irrespective of what you are. In the yesteryears , everything was 12
  13. 13. considered fair in love & war and advertising . It does not mind if you have to pullsomeone down, important is that you should rise.And who helps you to project yourself in the public, who brings you from the greenlightto the limelight, who brings you from the darkness of ignorance to the light ofrecognition? Obviously, the advertising gurus seated comfortably in their mind-blowingofficesThese Advertising Agencies may be raking in big “moollahs” but no one can questiontheir contribution in enabling the business to burn their “choolahs” .Today there are themovie moghuls and cricketing badshahs dancing on their fingertips, models andcelebrities weaving their irresistible web of magic around people like us. Well, necessityis the mother of invention and our necessities have opened the doors of prosperity forthese agencies.Be it a product or be it a service, they have the magic formulae for everything and mindyou, these formulae really work on our minds as is clear from our very own experiences.And sometimes their roles really makes a layman wonder as to what would have happento those hundreds of unsung brands appearing as faces in the crowd on some rack orshelves of a huge supermarket or a not-so-popular stores if these agencies would havenever risen from the sands of time.Today, the exposure of every individual to advertisements and advertising has increasedmanifolds than what it was in the past. Kudos to these agencies ; at least they have turnedout to be major trend-setters and torch-bearers for people like us showing us the way tothe magnanimous world of sophisticated products & services. However unethical andmaterialistic these agencies may be, at times in a bid to grab the lion’s share of thebuyers’ market, it is doubtlessly certain that without these agencies we would have nevercome out from the age of transistors to reach the modern age of home theatres. Well,every cloud has a silver lining to it. 13
  14. 14. Who can forget the extent and the manner in which Reliance Infocomm marketed itsWireless in Local Loop (WLL) Technology on the onset of the launch of its mobileservice. Irrespective of the post-use catastrophes, the impact of solid marketing &publicity on the minds of an ordinary laymen for whom having a mobile in hand wasnothing less than wearing a gold ring in the ring finger is reflected in the way such aperson is today using a cell phone. The hype was created by the agencies like XebecCommunications who advertised the product of one of the Fortune 500 Companies ofIndia and the hysteria still continues.Today, may products like chocolates and butter come to be identified by their brandnames like “CADBURYS” & “AMUL”. On the other hand, many others are identified bytheir slogans, catchlines & punchlines devised by the advertising wizards like“BLACKMAGIC MOTION PICTURES” for their clients’ products like “HamaraBajaj (Bajaj Auto)”, “Utterly Butterly delicious Amul (Amul)”, “A gift for someone youlove(Cadburys’)”, “Yeh Dil Maange More (Pepsico)” , “Taste the Thunder (Thums-Up)”etc.Before we go ahead with the discussions about the advertising agencies & the brainsbehind them, it’s pertinent to bring to limelight the benefits which we, as a society, arederiving from these agencies and the not-so acceptable traits.PRESENTING... The pros…(1) Creating awareness : Due to the increasing role of the advertising agencies and so-called dominion over our minds, today the level of consumer awareness could be well adjudged from the fact that even a toddler identifies in the spur of the moment an ad of Cadburys’ chocolates or Amul Butter been run on the screen of the idiot-box ornamenting our spacious drawing rooms. (2) Enabling wider choice and access to products : So many products and so many ads for each of them…leaves the poor customer gasping for some free space. Well, with the bombardment of so many commercials, universal hoardings, from advertisements stuck on the walls of the 14
  15. 15. building compounds to those stuck on the walls of the railway compar”ents, the customer has multitude options and ample of choices to really get “ better than the best”. Well, people are after all paying handsomely for their requirements and they deserve choices and options. But, it all owes to these agencies who have spread out before us 10 different types of toothpastes for making out teeth the whitest and the hardest, 100s of moisturizers for giving the best glow to our skin an all sorts of luxuries which have become more necessary than the necessities.(3) Uplif”ent of standard of living : Well, its said that “Money makes a mare go”. Today, this not be any more emphasized as everyone knows that depending on the financial background, people can get the best of everything. From a cycle to a car, or from a dhaba to a restaurant, the customer knows where he is the most comfortable and is able- bodied to plan out his budget as he knows the price tags stuck on every product and service. And all this, is possible because of the constant exposure to media and publicity.(4) Necessary for the growth of the businesses : From the Ambanis to the paanwalla, from the Bachchans to the street-actors, every soul is convinced of the power of these agencies in giving them a larger than life size image. Every business house, big or small, though cutting the cloth according to the size of its coat, needs the services of these agencies to project its brand image before the laymen and convert these laymen into prospective and from prospective to loyal customers for their products and services. Revenue generation is the prime objective behind every business and to rotate the wheel of success, its important for them to use the services of these think-tanks and always remain on the topmost rank.The cons.....(1) A cold shoulder to social responsibilities : The advertising agencies today are not performing to the non-material welfare of the society. Their commit”ents and obligations to the society are mani-fold. Being the torch-bearers of the world of publicity and media, they are on a huge platform from where they can spread messages of public interest in every nook and corner 15
  16. 16. of the country. Alongwith their professional assignments for profit maximisation, they can also design propagandas for conveying important social messages like harmfulness of smoking and drinking liquor, abolishing evil practices and dogmas deeply rooted in the blood of the rural illiterate, importance of a nuclear and small family etc. Accepting these assignments for a social cause will not create a dent in their pockets but will surely go a long way in revolutionising thoughts, attitudes and mindset of every Indian.(2) No SWOT of products advertised conducted : All the advertising agencies are conducting a SWOT analysis of the prospective clients that approach them with a product or service meant to be advertised but no one is bothered about a scrutiny of the products to be so advertised. It is not their business, perhaps it is anti-business; thats the feel and the flavour. PROFILE ADVERTISING AGENCYADVERTISINGThe American Marketing Association, defined advertising as “any paid form of non-personal presentations of idea, goods or service by an identified sponsor.”In other wordswe can say that Advertising is brand building through effective communicationINTRODUCTION TO ADVERTISING AGENCYThe global market has expanded manifold in the last few decades. More and moreproducts are being launched practically everyday. The companies are engaged incutthroat competition to highlight their products to the forefront. Herein enters theglamorous field of advertising. Advertising is actually brand building through effectivecommunication and is essentially a service industry. This requires the help of the mediato reach more and more people to communicate brand effectiveness and here advertisingagencies comes picture.The role of advertising agency has been accepted because it provides specialist servicesto the companies, which have inadequate services of experts for the promotion of their 16
  17. 17. goods and services. Many institutions have established the services of advertisingagencies to make their products and services known to the potential consumers.FUNCTIONS OF ADVERTISING AGENCY:The advertising agency performs all the managerial functions. Some of these areplanning, creation and execution, co-ordination, accounting, media, research and internalcontrol.  Planning: The advertising agency plans the advertising campaign. The management delegates the responsibility of advertising planning and execution to the agency. The agency must have a fair knowledge of the firm’s products, its history, the present market conditions, distribution methods, price level and other conditions. A successful advertising programme is built on the basis of these data.  Creation and Execution: Specific advertisements are created. The advertising copy is written; the layout is prepared; illustrations are drawn; photographs are finalized; and a correct mechanical form for running it in the selected media is produced. The advertising agency prepares a suitable advertising copy for insertion in all the media.  Co-Ordination: The advertising agency co-ordinates several activities. It often works with the client’s sales force and distribution network to ensure the long-run success of the advertising programme. The combined efforts of sales persons, distributors and retailers ensure maximum sales. Ideas, media, copy and decisions are co-ordinated properly to project and implement the advertising programme.  Accounting: The advertising agency maintains proper accounts in co-operation with the client. The account executives see to it that the agency keeps to the stated plan. The accountant is in charge of the administration of the advertising programme on the agency side. A misunderstanding arising between the agency and the client is eliminated by the accountant. The amount of fees received from the client and the payment of taxes, bills and other charges are accounted for by the accountant.  Media: The advertising agency selects the media or a set of suitable media for the client to reach the right type of audience which is an important factor in media 17
  18. 18. selection. The rates, circulation, population, audience, income and other important information are collected for the purpose. It has to see to that the media plan is carried out properly which is devised to implement the campaign’s communication objectives. The media experts know all about the media and their coverage. They prepare the schedule of advertising, publication, data on printing and the time available from television and radio. Research: Research is a key function in an advertising campaign. The decisions on creativity and media selection are taken on the findings uncovered for research. Research makes every decision systematic and logical, based as it is on facts and figures. Internal Control: The advertising agency manages its employees, finances and other resources effectively and economically. It conducts the business behind the scenes and exercises proper control over activities and funds. Public relations, sales promotion functions and client contacts are maintained by the management for the effective operations of the advertising agency. 18
  19. 19. CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS COPYWRITING ILLUSTRATING LAYOUTS CLIENT APPROVAL PRODUCTION BROADCAST STAGE PRINTTYPOGRAPHY ENGRAVING FILMING EDITING PRINT AD COMMERCIAL PRINT MEDIA BROADCAST MEDIA AD REACHES THE TARGET AUDIENCE 19
  20. 20. TYPICAL ADVERTISING AGENCY STRUCTURE Chairman & Managing Director (Chief Executive Officer) Finance Management Administration Accounts Client service Media Director Creative Director Director Studio Films Print & Media Associate Creative Production Controllers Directors Group Account Manager Media Supervisors Creative Group Heads Account Supervisor Media Media Planners Buyers Copywriters Art DirectorsAccount Executives Media Media 20
  21. 21. ADVERTISING AGENCY # 1 X E B E CTHE WHEREABOUTSHEAD OFFICE : 20, Santosh Heights, 1st Floor, 39/4, J.N. Marg, Opp. Apsara Theatre, Pune – 411 037.BRANCH OFFICE : Jain Chambers, 1st Floor, Next to Saga Shopping Centre, S.V. Road, Bandra (West), Mumbai – 400 050.Incorporated in the year 1991, this rapidly-growing “FULL SERVICE” Agency locatedat the above-mentioned places has today achieved for itself a decent position in thejampacked arena of the biggies and is continuing its progressive march.It is solely indigenous with no foreign collaboration or foreign equity participation ;something really very praiseworthy.MODUS OPERANDI :Being a truly professional & competitive in approach, Xebec Communications has awell-defined and a well-organised method of operations. When the prospective clientapproaches them for getting his purpose served, they conduct a SWOT analysis prior toacceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersomeand patience-testing exercise for the client, it is designed in such a way that the agencygets a total assurance of the output.The agency first understands the requirements of its customer and gets a complete profileabout the product or the service to be advertised from the horse’s mouth. Further, it 21
  22. 22. makes a complete assessment of such a product or service, based on the representationsand the explanations given by its client in terms of the life of the product, itsmarketability and its commercial value. Continuing on these lines, the agency also makesan assessment of the requirements of the client, their budget, cost constraints etc. Finally,last but not the least, the agency makes an estimate of the benefits, both monetary as wellas non-monetary which it is subsequently in the long run, going to derive out of everysuch assignment.On the basis of such a study made about the product, its target audience and the psycho-analysis of the creator as well as its creation, the agency then selects the type of mediawhich is the most appropriate one in terms of the cost constraints laid down by the clientand accordingly intimate the client about the cost-benefit ratio of the entire exercise. So,it’s a thorough professional approach wherein the client is rest assured about the benefitshe is going to reap from the seeds he is planning to sow in the field of advertisement.Ultimately, its not a no-win no-lose situation for both of them but is entirely a winners’outcome.THE CANVAS ON WHICH XEBEC PAINTS THE PRODUCT :Xebec provides its customers with a wide-range of media to select from viz., in fineprint, or on celluloid like television, radio, theatres etc.HOW CAN I KNOW ABOUT XEBEC :Well, being professional and competitive in approach, it is Xebec who approaches itsprospective clients and not wait for the the clients to fathom for it. So, the client does nothave to run in sun and shower for finding a proper canvas for its product. Xebec providesall the facilites for its client coupled with a very co-operative in-house, interactiveresponse and hospitality. As far as a payment term is concerned, Xebec also takes care ofthe pocket-size of its customers. So on one hand, it gives you the option to pay the entirefees in lumpsum, on the other hand it also extends credit to its continuous andcreditworthy customers. 22
  23. 23. STRENGTHS : The agency first understands the requirements of its customer and gets a complete profile about the product or the service to be advertised from the horse’s mouth. Further, it makes a complete assessment of such a product or service, based on the representations and the explanations given by its client in terms of the life of the product, its marketability and its commercial value. Continuing on these lines, the agency also makes an assessment of the requirements of the client, their budget, cost constraints etc. Finally, last but not the least, the agency makes an estimate of the benefits, both monetary as well as non-monetary which it is subsequently in the long run, going to derive out of every such assignment. On the basis of such a study made about the product, its target audience and the psycho-analysis of the creator as well as its creation, the agency then selects the type of media which is the most appropriate one in terms of the cost constraints laid down by the client and accordingly intimate the client about the cost-benefit ratio of the entire exercise. So, it’s a thorough professional approach wherein the client is rest assured about the benefits he is going to reap from the seeds he is planning to sow in the field of advertisement. Ultimately, its not a no-win no-lose situation for both of them but is entirely a winners’ outcome.WEAKNESSES : Xebec is facing a major problem of Time Management i.e. it is over-dependent on its staff. Hence, the quality and the efficiency of its human resources always causes some sort of a problem in making and implementing fast decisions. Again, multiplicity of brains, though an asset for any organization is also sometimes a hindrance in its development when the agency is not able to reach to a definite conclusion about its strategies and policies in the nick of the time due to conflicting ideas presented by its too many decision-makers. As it is aptly quoted, “Too many cooks spoil the broth” 23
  24. 24. Secondly, as far as client servicing is concerned, Xebec does not make adequate attempts to update its services. This is the main reason why this organization though reputed, is not able to expand its paraphernalia. Lack of creativity is also a major backdrop in its success story. Next, Xebec has also failed to make any renowned celebrity from the fields of cinema, sports, politics or business as its brand ambassador as other reputed agencies in this world are in a practice of doing. Hence, the agency fails to create a long-lasting and huge appeal for the products of its clients amongst the masses. As far as the profiles of the team members of Xebec are concerned, the people in the topmost levels of organizational hierarchy who are mainly shouldering the responsibility of devising strategies, policies, media plans, client servicing, account planning, market recognition and strategic decision-making are not from the fields of management or advertising. Though, they may be well-groomed for excellence in the environment in which they are functioning, there is always an undisputed difference between those able-bodied people who are from the field of management and those who are not. And finally, in this field of cut-throat competition where agencies rise and fall like a pack of cards day in and out, you definitely need professionals and professionalism in your approach at the time of decision-making and implementation of ideas.OPPORTUNITIES : There is a tremendous scope for diversifying its paraphernalia as currently Xebec is just specializing in one particular media. Secondly, by recruiting and taking more benefits from services of professionals in this field, Xebec can overcome its problems of Time Management and slow decision- making. Instead of having too many heads with different contents in them, it can always go for quality staff. 24
  25. 25. Xebec can also concentrate on making some of the eminent personalities as its Brand Ambassador, which it has already started as is evident from its forthcoming contract with a cricket star named Salil Ankola. If it continues to do so on these lines it can lead to more aggressive response for its clients’ products and services.THREATS : Xebec also does not make a SWOT analysis of its clients at the time of taking an assignment. This also exposes it to a major threat of losing its own ground in its field as not many of its clients are too reputed, well-organised and aware of their requirements. Another major threat to the growth and development of Xebec is its over-dependence on Print Media. That is to say, Xebec has not taken too many efforts of diversification and growth into other media. It is quite understandable that in today’s world to remain sellable in the market you have to keep on diversifying yourself into other fields which this agency is not very much keen in today, there is a definite threat on its future existence. Survival is first, growth afterwards and just trying to be a master in one amidst a crowd of experts who are Jack of all trades is not at all a good sign for any organization. CASE STUDIES 1. KIMBERLY CLARK1.1 Brief Associate Kimberly Clark with personal hygiene by a campaign encouraging people to adopt health habits and educate offices and hotels about the importance of giving their employees and guests access to hygiene products.1.2 Execution A Poster Campaign placed in and around washrooms (where Kimberly Clarks products are most used)reminding people about the importance of personal hygiene with a byline by Kimberly Clark. 25
  26. 26. 1.3 Result A direct association between Kimberly Clark and personal hygiene and increased usage of Kimberly Clark products and supplies. 2. KINETIC2.1 Brief Relaunch Kinetic Honda Marvel and build on Kinetics reputation as an all family 2 wheeler maker. Create a new buzz around the Marvel as an exciting bike.2.2 Execution A series of concurrent road-shows and test rides all over India handled by our events division with live performances by Indias most exciting and talented performer - REMO - to stir up the excitement.2.3 Result Excitement about Marvel and renewed interest in the scooter and Kinetic. 3. THYSSENKRUPP3.1 Brief To occupy mindspace as a core infrastructure sector/industry player.3.2 Execution A creative campaign in Indian and foreign magazines and journals closely targeted at industrial decision makers.3.3 Result Increased awareness of ThyssenKrupp activities and brand recall as a hi-tech German company. ThyssenKrupp continues to be a valued client. 4. INDIACOM4.1 Brief Build the INDIACOM brand as a most easily accessible and widely disseminated yellow pages directory. 26
  27. 27. 4.2 Execution Strategic press spots and hoardings timed with the beginning and end of the bookings period designed to drive demand for ads and insertions and increase awareness of the INDIACOM edge.4.3 Result More recall for the INDIACOM brand as the most easily accessible and widely disseminated yellow pages directory resulting in more placements in their directory. 5. LIPI DATA SYSTEMS5.1 Brief Position LIPI as a total data solutions company with a wide range of high quality print solutions for small businesses and corporates5.2 Execution A creative campaign focusing on the flexibility of LIPI printing solutions.5.3 Result Increased awareness about the LIPI brand name as a provider of superior printing solutions. 6. INTELLIGENT INVESTOR6.1 Brief Raise Intelligent Investors profile through high powered personal finance exhibitions in the metros.6.2 Execution A series of full page ads in outlook and Intelligent Investor designed to engage the readers attention by trumpeting the sheer volume of financial services and free advice on offer.6.3 Result A tremendous response to the personal finance exhibitions leading to increased awareness about Intelligent Investor and an increase in its brand equity. 27
  28. 28. 7. CENTURION BANK7.1 Brief Establish Centurion Bank as a one stop shop for all banking needs with superior banking services for small customers.7.2 Execution The target audience was identified as the small customer who was perhaps not getting the best service in big banks. The creatives were designed to inform him about Centurion Banks thrust towards them.7.3 Result More new accounts for Centurion Bank with its brand firmly established among the smaller customers. 8. DISHNET DSL8.1 Brief Leverage Dishnet strengths as the only DSL high speed ISP provider in the country. Target soho and heavy net users promoting the benefits of high speed access.8.2 Execution A creative campaign bringing out the cost and speed advantages of broadband.8.3 Result Increased interest and awareness about broadband Internet access, establishing Dishnet DSL as the pioneer in broadband technology and generating inquiries and sales.AWARDS & ACHIEVEMENTS :Best Radio Jingle[A refreshing jingle for Electronica Leasing & Finance Ltd’s Fixed Deposit Schemes]CEAD - Best Radio Jingle[An innovative jingle for Kinetic Spark which was set in a folk tune]Trade Fair/Exhibition Design 28
  29. 29. [First prize for Kinetic Honda stall at Auto Expo ‘98][First prize for “Impressive Stall & Innovative Displays” at TECHEX-6 at WorldTrade Centre, Mumbai, November ‘98]WHO’S WHO IN XEBEC ? People make all the difference, nurturing talent and allowing space for independent thought and initiative are our hallmarks which explains the low attrition rates. Key people behind the success of Xebec are - Kiran Bhat - Chief Executive Anil Bhat - Executive Director Vincent Sebastian - Branch Manager Radhika Akolkar - Account Director Samir Wagh - Manager (Media & Events) Sandeep Ghodke - Art Director Anil Rane - Asst. Art Director Abhay Bengeri - Branch Director Praveen Meloth - Sr. Account Executive Bhavana - Sr. Account ExecutiveDIVISIONS OF XEBECM.A.R.S.Our in house Research division - an independent profit centre - allows clients to identifycustomer preferences, trends, deliver a more focused message and track customerresponse.M.A.R.S. delivers professional research services within the Xebec umbrella.M.A.R.S. Services: Qualitative and Quantitative Research... Dipstick Studies... Focus Groups... Preand Post Launch Surveys / Studies... Feasibility Reports... Customer SatisfactionSurveys... Dealer Audits...STELLAR - P.R. 29
  30. 30. In todays fast paced media driven world with shrinking attention spans, PR is animportant vehicle to increase mindspace and mindshare.Stellar is a Xebec group company run by experienced PR professionals with strongcontacts in press and TV for national coverage.CUSTOMER CONNECTC2 is Xebec CRM arm with specialized Direct Marketing and Customer Response skills. LIST OF CLIENTSADVERTISING AGENCY # 2 C A R A TTHE WHEREABOUTSHEAD OFFICE : CARAT MEDIA SERVICES INDIA PRIVATE LIMITED Barodawala Mansion, 81, Dr. Annie Besant Road, Worli, Mumbai 400 018 India. Email : pat@carat-india.com Website : www.carat-india.comCEO: Sulina MenonEmail : sulina@carat-india.comCarat India - New DelhiAddress : E82A, Greater Kailash Part-1,New Delhi, Pin-110048, IndiaTel No : (91) 11 629 4112Fax No : (91) 11 629 3680Email : carat@ndb.vsnl.net.in 30
  31. 31. Website: www.carat-india.comWebsite: www.carat-asiapacific.comCarat is operated by AEGIS MEDIA which operates alongwith Carat 2 other reputedworldwide organizations viz., Vizeum & Postersope Worldwide.MODUS OPERANDI :Being a truly professional & competitive in approach, “CARAT ” has a well-defined anda well-organised method of operations. When the prospective client approaches them forgetting his purpose served, they conduct a SWOT analysis prior to acceptance of anyassignment. Although, this SWOT Analysis is not at all a cumbersome and patience-testing exercise for the client, it is designed in such a way that the agency gets a totalassurance of the output.SWOT ANALYSIS OF CARAT :  STRENGTHS 1. Carat has a very educated and well-groomed set of clientele. They know that the ability to understand and exploit the opportunities of the evolving media market is key to their future success. Media communication, and assessing its short, medium and long-term effect, is becoming central to every business. 2. Carat’s aim is to deliver business advantage for its clients through effective communication programmes that maximize return on inves”ent. This means partnering with its clients to produce sustainable improved sales by building brand loyalty, value and awareness. They combine insights into brand, media and consumer behavior to spark innovative media solutions that are unique to every brand. The Carat approach to communication planning gets results. 3. The marketing strategy of Carat is defined as a “360° communication”. This means exploiting the whole range of media channels available to a brand which is fundamental to building effective communication strategies. As messages reach consumers in new and different ways, they can refresh and renew a relationship, create excitement and loyalty, even advocacy for a product. The task is to build a programme which engages consumers with the brand and reveals the inherent 31
  32. 32. values in a product or service that cause consumers to say "Thats for me". In a nutshell, this type of a strategy helps in building a brand loyalty and the customer starts relating himself with it.4. Carat’s clients are very much impressed with its ability to work as an international team. The breadth of their service and their strong coherent network give Carat the scope to truly partner international advertisers who are winning the race for global media effectiveness.5. Every brand, market and competitive situation requires a unique solution. Carat has a rigorous and proven framework to develop innovative and creative media solutions throughout its network. Its approach extends across all media - 360° communication. It works with a suite of sophisticated analysis tools and research, helping it to understand consumers and to design media campaigns that deliver measurable improvements in its clients business.5. Incisive management of media delivers business advantage to Carat’s clients. Carat has invested over US$30 million on research and tools to manage and measure media effectiveness, across traditional and online media channels.6. Consumers relationships with brands and product sectors need to be linked to their relationships with media and attitudes to advertising. Analysis using tools such as Charisma and Ad-itudes helps Carat’s clients reach their core targets more effectively and develop strategies to attract new customers. WEAKNESSES1. The major weakness of Carat is diversification. Carat has grown, flourished and made a tremendous progress in the field of electronic media only. However, for a long-term and sustained growth and development it is the need of an hour for every agency to stretch its arms and reach out for the world through all possible avenues.2. Carat does not have a broad clientele base which means that it does not enjoy a very diversified brand loyalty. 32
  33. 33.  OPPORTUNITIES 1. Carat has tremendous growth and diversification opportunities in the field of advertising specially because of its skilled labour force and dynamic vision. 2. Carat has international tie-ups which means that there is ample of scope for it to diversify its operations and tap the market worldwide.  THREATS 1. Carat is specializing only in electronic media. This overdependence on one media only is definitely fatal for future growth and sustained development. Today, there are many new entrants in the market and these agencies are making progress by heaps and bounds in all types of media. Carat needs to tap other media also to emerge as a genuine world leader. 2. Being a multinational agency, it is extremely difficult for small customers to approach this agency for their requirement. Carat should also concentrate more on Indian market which has a very large base of clientele. Firms worldwide have also established themselves firmly in the Indian Market which if Carat cannot do or does not do will hamper its growth and development process. CLIENTSAdidas Diageo EMI Group Ferrero InternationalFiat Henkel Kellogg Kraft JacobsSuchard LVMH Mannesmann- VodafoneMerloni Beiersdorf Bertelsmann BMWCable & Wireless Carrefour Coca-Cola Club MedDanone Group Nissan Pernod Ricard Pfizer 33
  34. 34. Philips Renault Sara Lee SCASmithKline Beecham Telefonica Walt DisneyADVERTISING AGENCY # 3 C A N C OTHE WHEREABOUTSHEAD OFFICE : 518, Tulsiani Chambers, Nariman Point, Mumbai – 400 021. Incorporated in the year 1985-86, this rapidly-growing “FULL SERVICE” Agencylocated at the above-mentioned place alongwith branches at Bangalore, Chennai & Delhi,has today achieved for itself a decent position in the jampacked arena of the biggies andis continuing its progressive march.It is solely indigenous with no foreign collaboration or foreign equity participation ;something really very praiseworthy.MODUS OPERANDI :Being a truly professional & competitive in approach, “Canco Advertising Pvt. Ltd.” hasa well-defined and a well-organised method of operations. When the prospective clientapproaches them for getting his purpose served, they conduct a SWOT analysis prior toacceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersomeand patience-testing exercise for the client, it is designed in such a way that the agencygets a total assurance of the output.SWOT ANALYSIS OF CANCO : 34
  35. 35.  STRENGTHS1. Canco is a full-service agency providing all types of services related to the field of advertising & marketing to its clients.2. It conducts a SWOT Analysis of its clientele to assess their strengths and weaknesses. It also first understands the requirements of the client, their knowledge about the field of advertising, the characteristics of the products and services to be advertised by its client, the type of target market and the cost constraints under which its client is functioning. This overall study about the client and its products helps Canco to devise and develop a proper marketing and advertising plan for its client which can optimize client’s returns in the restrictive environment in which it functions.3. As far as offering facilities to clients are concerned, amongst others, Canco also provides its client the facility to make payments of its fees in installments which goes a long way in helping the client overcome its financial hurdles, if at all posed on him. This is a major breakthrough in client servicing and definitely is a major weapon in anyone’s hands to have a stable and a loyal base of clientele.4. The top level of organizational structure in Canco consists of people who are professionals having the academic qualifications which are must in this field. Understandably, on this account there is bound to be professionalism in the approach, attitude and decisions made by the agency for its growth and development.5. Canco offers its customers a wide selection amongst the media for canvassing their product or services. It advertises in newspapers, uses electronic media and also provides the facility of online advertising. As the choices are more for the customers, depending on their requirements, the characteristics of their products and their cost constraints, it helps them in selecting the proper medium for advertising their product or service. WEAKNESSES1. The biggest weakness of Canco is its organizational structure. The organizational structure is such that people who are at the top most level in the hierarchy and 35
  36. 36. who are professionals in this field are few whereas the line staff is quite much. This may lead to centralization of decision-making and an obvious influence of one or two people in policy decisions. Centralization of decision-making and authority being given to only few can prove to be disastrous for the growth of the organization.2. It does not have a very broad base clientele. The list includes just a few major names like HDFC. This means that the agency does not enjoy the patronage of many of the big names and is dependent on the patronage of privileged few.3. CANCO has not hired any of the eminent celebrities for endorsing the products and services of its clients. This is why the appeal created for the products and services of its clients does not reach to a large group of masses.4. In this world of cut-throat competition where it is important for every agency to have some sort of transparency which will make popular its strategies, achievements, client patronage, diversification in services offered, CANCO has not made any effort to bring itself in the limelight. With no URL and no other self-advertisement, it still lingers in some dark corner of isolation. OPPORTUNITIES1. With professionals at the decision-making level, CANCO has an opportunity to expand its operations and diversify itself into new avenues if it makes a concentrated effort on improvising the strength of professional staff.2. Making use of the brand image of some celebrities for endorsing the products of its clients can give it an upper hand and help in having more reputed customers into its kitty.3. It can project its achievements before the public and through the medium of website can lend more transparency to its operations. On these lines, this agency is working presently and a website is in the development stage. THREATS 36
  37. 37. 1. CANCO, though making use of print and electronic media for advertising products of its clients is a Jack of all trades, master on none. Specialisation is required in at least one sphere for expansion and further diversification.2. The strength of the staff and the quality of human resource is also a major hindrance it is growth and development. When decision-making is centralized and that too based on few brains, there is bound to be lack of impulsiveness, aggression, timeliness and dynamism.3. CANCO is suffering a big threat from other agencies operating in the same set of environmental conditions who are constantly offering more and more services to their customers and diversifying themselves day in, day out.THE CANVAS ON WHICH CANCO PAINTS THE PRODUCT :CANCO provides its customers with a wide-range of media to select from viz., infine print, or online through the medium of internet, external advertising likehoardings, pamphlets etc.HOW CAN I KNOW ABOUT CANCO?Well, being professional and competitive in approach, it is CANCO who approachesits prospective clients and not wait for the the clients to fathom for it. So, the clientdoes not have to run in sun and shower for finding a proper canvas for its product.CANCO provides all the facilities for its client coupled with a very co-operative in-house, interactive response and hospitality. As far as payment terms is concerned,CANCO also takes care of the pocket-size of its customers. So on one hand, it givesyou the option to pay the entire fees in lumpsum, on the other hand it also extendscredit to its continuous and creditworthy customers.ORGANISATION STRUCTURE OF CANCO ORGANISATION STRUCTURE Mr. Ramesh Narayan, (Managing Director) 37
  38. 38. Creative Director Copywriters (1) Mr. Dhananjay Neelam (2) Mr. ArunTotal Staff Strength : 24FACILITIES OFFERED BY CANCO TO ITS CUSTOMERS : CANCO fixes the budget for its client depending on the requirements of the client, the characteristics of the product to be advertised, the target customers, the marketing strategy, the aggressiveness or otherwise of the advertising campaign, the type of customers to be targeted, the cost constraints of the environment in which the client is functioning etc. Based on this study, the budget is given by the agency to its client.AWARDS WON BY CANCO a. Given by Alert India, Non-Government Organization (NGO) which creates awareness for leprosy . b. Given by Advertising Club, Mumbai 38
  39. 39. ADVERTISING AGENCY # 4 McC A N N - ERICKSONHISTORYMcCann-Erickson WorldGroup was chartered in 1997 as a new model for integratedmarketing communications. The WorldGroup was created by uniting best-in-classmarketing communications firms in a range of disciplines behind a common mission andvision.In only a few years, McCann-Erickson WorldGroup has emerged as one of the worldsleading integrated brand communications organizations--in global size, in professionalquality, and in the number of clients we serve with multiple-communications services.Each WorldGroup agency retains the best of its distinctive heritage. Most notably,McCann-Erickson, is currently celebrating its 100th anniversary, representing a centuryof innovation and excellence in advertising and communications The rich histories of themember agencies of World Group provide the foundation for the WorldGroupsunparalleled expertise and their unique shared culture. In its brief history, theWorldGroup has cultivated a common culture across its global network, based on sharedstrategic tools and a shared vision for effective marketing communications.WHO’S WHO : John J. Dooner CHAIRMAN, CHIEF EXECUTIVE OFFICER McCANN- ERICKSON WORLDGROUP 39
  40. 40. Arther D’Angello CHIEF FINANCIAL OFFICER McCANN-ERICKSON WORLDGROUP Eric Einhorn EXE. VICE PRESIDENT, CHIEF STRATEGY OFFICER MCCANN-ERICKSON WORLDGROUP President, CEO Max Gosling Representative Director McCann-Erickson Japan REGIONAL DIRECTOR Peter Hamilton MCCANN-ERICKSON ASIA PACIFIC CHAIRMAN AND CEO Robin Kent UNIVERSAL MCCANN PRESIDENT AND CHIEF OPERATING OFFICER Bill Kolb MOMENTUM WORLDWIDE REGIONAL DIRECTOR, McCANN-ERICKSON EUROPE, Ben Langdon MIDDLE EAST & AFRICA Pamela Maphis CHIEF EXECUTIVE OFFICER Larrick MRM PARTNERS WORLDWIDE VICE CHAIRMAN, CHIEF CREATIVE OFFICER Marcio M. WORLDWIDE DIRECTOR OF MULTINATIONAL ACCOUNTS Moreira MCCANN-ERICKSON WORLDGROUP REGIONAL DIRECTOR LATIN AMERICA/CARIBBEAN Jens Olesen MCCANN-ERICKSON WORLDWIDE EXECUTIVE VICE PRESIDENT Dr. Joseph DIRECTOR OF RESEARCH & INSIGHT DEVELOPMENT Plummer MCCANN-ERICKSON WORLDGROUP CHAIRMAN EMERITUS Stan Rapp MRM PARTNERS WORLDWIDE Joe Torre CHAIRMAN AND CEO TORRE LAZUR MCCANN HEALTHCARE WORLDWIDE Chris Weil CHAIRMAN AND CHIEF EXECUTIVE OFFICER 40
  41. 41. MOMENTUM WORLDWIDEMODUS OPERANDI OF McCANN-ERICKSONTOOLSMcCann-Erickson WorldGroups unique and proprietary shared tools help unite differentmarketing communications disciplines. They unite professionals in different officesaround the world. They provide a common "language" for diverse teams workingtogether for common clients.Our tools also set us apart. They are disciplined yet flexible. They combine our bestpractices with our cutting-edge thinking.We have specialized tools in various disciplines, but the centerpiece is the holistic BrandOptimization Map™. Building off of the foundation of the Road Map to EffectiveCommunications™, The Brand Optimization Map incorporates the thinking behind thebest strategy and planning processes of various disciplines into a unique, universalstrategic service.By offering a holistic, integrated approach to strategy development, creative execution,and campaign evaluation, the Brand Optimization Map service can generate brand ideasthat have the potential to solve clients fundamental business problems and position theirbrands for long-term growth.CREATING THE DEMAND-CHAINBy systemically linking supply activities from sourcing and manufacturing to distributionand customer orders, corporations have successfully solved what is called the supplychain. By enabling "just in time" delivery of products or services to meet demand, thisprocess benefits marketers through increased efficiency, productivity and lower costs.But in todays competitive marketing climate, with a renewed focus on building customerand top-line growth, demand creation is, arguably, the new success factor. To meet thisimportant business need among all types of manufacturing and service corporations,McCann-Erickson WorldGroup has developed a service that links demand creation 41
  42. 42. activities to make them more synergistic and powerful, thus helping corporations tocreate enduring marketplace growth.This proprietary service offered by McCann-Erickson WorldGroup is known as Creatingthe Demand Chain. This service, also known as the McCann Demand Chain™, providesmarketers with all the critical steps in demand creation in a cohesive, effective, andoptimized manner.The ultimate benefit of the McCann Demand Chain™ service in whole, or in part, is toimprove demand creation for companies and brands, increasing the sale of products andservices and optimizing top-line revenue.Creating the Demand Chain™ encompasses a linked set of services involving six "links."Importantly, marketers can leverage the McCann Demand Chain™ service as a whole, orin part, since many of the service components can be adapted to the marketers existingcompany activities.These six service elements encompass Demand Vision, Brand Idea, ResourceOptimization, Brand Contact, Relationship Management and Demand Performanceactivities.While this service and its component services are delivered through an array of marketingcommunications operations across multiple channels, their unique linkage makes themmore than the sum of the parts. Each element leverages proprietary, market-testedMcCann-Erickson strategic, collaborative and measurement tools; and each is supportedand optimized by specialized expertise, resources, creativity, software and infrastructure.Brand Optimization MapThe Brand Optimization Map (BOM) has been created by McCann-EricksonWorldGroup to provide our corporate clients with a new, more inclusive approach tostrategy development, one that fully recognizes the evolving nature of brandcommunications. This strategy development service recognizes that brand marketersaround the world are in a changing relationship to their customers. The BrandOptimization Map™ thus takes a broader and deeper strategic perspective to account forthe new realities facing marketing-focused businesses today, including their requiredcoordinated usage of a full range of marketing communications disciplines. 42
  43. 43. In todays highly demanding business environment, the focus has shifted away fromimproving profits through operating efficiencies to generating top-line revenue growth.Demand creation is the new priority.Demand creation in the new marketing communications environment has becomeespecially challenging. The technology revolution has surrounded customers andconsumers with a plethora of information and entertainment options, and, as a result theyhave become more elusive. The consumer is firmly in control. They expect choice,information, speed of service, and ease of acquisition. This new multi-channelenvironment adds a whole new dimension to the challenge of marketing integration. Andwith critical mass so hard to achieve, integration has become the new imperative.Traditionally, the focus of integration has been the development of a common brandplatform or idea to unite the marketing message across multiple disciplines. Thisintegration of content is still a core priority.But today, given the confusion of marketing channels, the increased sophistication andscope of all our marketing communications disciplines and the emergence of newinternet-based business models, there is a demand for a new kind of integration - theintegration of resources.The Brand Optimization Map™ is a unique service that brings together these twofundamental needs in integration, content and resources, under a unified strategicframework to optimize the marketing communications plan.It leverages proprietary strategic principles, tools and software that identify marketingpriorities, optimize budget allocation and leverage the full spectrum of marketingcommunications disciplines for what they do best, in the right "proportions." The BrandOptimization Map™ also introduces a proprietary method of evaluating the ROI of thefully integrated marketing program.From a standpoint of "the user," The Brand Optimization Map™ is intuitive in concept,but sophisticated in its ability to embrace the complexities of the new marketingenvironment. It facilitates collaboration, idea generation, resource allocation and creativeexecution. It is flexible in its ability to be used locally or regionally, for brands, sub-brands or marketing initiatives, and for any specified marketing period. 43
  44. 44. McCann-Erickson World Group uses The Brand Optimization Map™ service to leveragethe specialized talent and creative energies of all our marketing communications"corridor" centers of expertise while working collaboratively with our clients to createpowerful brand communications strategies.The following are the key steps of The Brand Optimization Map™ service:BRAND OPPORTUNITYBrand Health CheckIn order to create big ideas, we must step back and look at the big picture. To this end,BOMs Brand Health Check™ service offers a due-diligence process for assessing theoverall health of a brand.The Brand Health Check™ service factors in evolving consumer perceptions, industrytrends and competitive pressures. By forcing answers to critical questions, it provides theclarity to recognize major brand opportunities and solve brand problems.Using the framework of McCanns Universal Marketing Drivers - a set of marketingobjectives that are common to all marketing communications disciplines regardless ofmedia and message specifics - the service captures the essence of the competitivemarketing situation and diagnoses priorities for both content and resource integration.McCann PulseMcCann Pulse™ serves as a leading-edge method of generating consumer insight thatinforms marketing innovation and execution. McCann Pulse™ insights feed thedevelopment of brand imagery, new products and services and channel strategy.The McCann Pulse™ service output is based on consumer dialogue held at McCann-Erickson offices around the world and is reported on the company intranet. Regionaldecisions can be made through the collection of key market data, and they in turn areused to create a comprehensive global picture of evolving trends.The focus of McCann Pulse™ is as much on the here and now, as where things areheading. Through proprietary probes, it uncovers what is important in the lives ofconsumers, how they view the world changing and what their evolving goals are. Theseissues direct us to new product, service, and communications ideas. 44
  45. 45. This McCann Pulse™ service provides the consumer backdrop for the evaluation of theBrand Opportunity as well as development of the McCann Brand Idea™, via the BrandFootprint™ and McCann Selling Strategy™ service components.McCANN BRAND IDEAThe Brand Optimization Map™ platform for content in marketing communications isdetermined by the Brand Footprint™ - a statement of the desired meanings, values andpersonality of the brand - and the McCann Selling Strategy™ which determines apowerful strategic idea for creative execution across all marketing communicationsdisciplines.The Brand Footprint™ uses McCanns Brand Archeology techniques to uncover the fulldepth of meanings and values associated with the brand through the eyes of its customersand consumers. The McCann Selling Strategy™ draws on this "brand insight" todetermine where the brand needs to be in the future, thus creating a relevant and crediblestrategic platform to "propel" the brand towards its destination.MARKETING MIXMcCann Fusion™ 2.0 is a proprietary marketing mix software model that provides theoptimal allocation for each marketing discipline to attack the stated marketing challenge.It looks at the marketing picture "top down," through software that captures relationshipsbetween our marketing communications disciplines and the Universal Marketing Driversin the context of each category and country. The input to McCann Fusion™ 2.0 is theBrand Health Check. The output is a benchmark budget allocation across marketingdisciplines for Brand Optimization.As a complement to this "top down" evaluation, McCanns Marketing Task Cycle works"bottom up" to determine the ideal role for each marketing communications discipline.The Marketing Task Cycle identifies the barriers that need to be overcome, and assignsthe marketing that can best overcome them. This ensures we address critical brand needsand leverage our marketing communications disciplines for what they do best, and to theextent that they can make a difference.BRAND PERFORMANCE: 45
  46. 46. The McCann Brand Clout IndexThe Brand Clout Index™ measures a brands competitive ability to attract and retaincustomers in the marketplace - both currently and in the future. It can be used to helpquantify the Brand Health Check and to track the performance of an integrated program.Thus it serves as the performance benchmark of The Brand Optimization Map™.The McCann Brand Clout Index™, managed by NFO WorldGroup research, is currentlybeing rolled out of test market.Road Maps to Effectiveness :The Road Map to Effective AdvertisingThe Road Map to Effective CommunicationsWhy the McCann Road Map Service was Created:Consumer behavior is harder to understand and predict. Media is proliferating.Distribution channels are changing. And competition is increasingly fierce. In this fast-moving environment, it is no wonder many established brands lack a powerful strategy,often lose direction and many new products fail to connect with customers.To navigate the ever-changing landscape, McCann-Erickson WorldGroup has developedThe Road Map to Effective Advertising™ and, for total marketing communicationsprograms, the Road Map to Effective Communications™. This comprehensive service ofproprietary tools is designed to create effective advertising and communicationsstrategies that make an impact in todays cluttered marketplace. The McCann Road Mapservice results in communications strategies that create loyal customers when audiencesare moving targets and strengthen core brand values.McCann Erickson WorldGroup recognizes the need for consistent, tested methods andtools for creating communications that build brand value around the world and acrossmarketing communications disciplines. The McCann Road Map service is used globallyto ensure the consistency and high quality of communications programs around theworld. It is also used throughout the WorldGroups range of marketing communicationscompanies to make certain that integrated marketing campaigns work in synergy.The McCann Road Maps Key Components: 46
  47. 47. The Road Map to Effective Advertising™, the prototype system on which The Road Mapto Effective Communications™ is based, is a full arsenal of services to guide the creationof effective communications. It begins with the development of consumer and brandinsights and ends with the evaluation of the ideas that are used to create customers andbuild brand values.Components of The Road Map to Effective Advertising™ include:McCann Pulse™ -- the on-going exploratory service for gaining an in-depthunderstanding of consumer trends in order to develop relevant consumer insights.Brand Footprint™ -- for articulating the core brand essence that allows a brand to travelsuccessfully across marketing landscapes.McCann Selling Strategy™ -- for converting consumer insights and brand essence into afocused communications strategy that is unified by a single, driving selling idea.And finally, McCann AdWorks™ -- a qualitative consumer validation and feedbackprocess to assess the effectiveness of marketing communication campaigns.McCann PulseMcCann Pulse™ is the regular monitoring of collective cultural undercurrents at work onglobal consumer groups. Its goal is to better understand how these undercurrents affectconsumers and their consumption; whether observed crosscurrents are connected orisolated; and whether they represent a momentary fashion, a sustainable trend, or a realcultural shift within a market.McCann Pulse™ is a proprietary service that provides complete immersion in the lives ofconsumers through ongoing monitoring and personal dialogues. Following are the threecomponents of McCann Pulse™:The Pulse of Popular CultureIn-depth analysis of the content and symbolism of the various forms of media that bothreflect and influence consumers.The Pulse of Observers of ChangeOngoing dialogues with leading-edge thinkers whose fields of interest relate to our targetconsumer groups.The Pulse of the Consumer 47
  48. 48. Unconventional dialogues with selected consumer constituencies that probe personalinsights and what is new in their lives.Pulse can offer clients:• Insight into new values, ideas and trends• An ability to talk more accurately in the language of consumers• Consumer perspectives of major marketing issues or events• Context for new creative ideasBrand FootprintThe Brand Footprint™ service uses a tool that defines a brands essence, so thatmarketers can manage and build their brands most effectively. It provides a clearunderstanding of which values need to be protected and leveraged in brandcommunications. And it helps charter a brands growth into new territories, fromexpanding a brand in new geographic regions, to establishing it across multiple productor service categories, to extending it to an electronic marketspace.As brands expand, their value and meaning are often put at risk. These risks stem fromthe need to reconcile a brands heritage with product innovation, and from the need to re-express the brand in the context of new competitive sets, new cultures, and new media.The Brand Footprint™ service is designed to protect the equity of the brand byconveying the brand essence clearly and succinctly, but with enough texture to inspire arange of marketing activities, from product development to integrated communications.The Brand Footprint™ articulates the three most central brand meanings and its threemost prominent personality characteristics.McCann Selling StrategyThe McCann Selling Strategy™ is a service that is single-mindedly focused ongenerating brand-building ideas. Ideas that attract customers. Ideas that build corporateand brand franchises. And ideas that create marketplace dominance for clients.While traditional strategy has often been highly analytic, the McCann Selling Strategy™offers imaginative conceptualization. It is guided by the McCann Selling Strategy™platform, a process of analysis and idea generation that helps move a brand from itscurrent position in consumers minds to a desired perceptual space. 48
  49. 49. The McCann Selling Strategy™ uncovers the motivations of conceptual target audiencesand results in a strategic concept that pinpoints a Selling Idea.Unlike many traditional strategy briefs that are formulaic, the McCann Selling Strategy™is a dynamic and living process. Its a way of thinking, working and creating as a team. Itis a discipline pursued with passion - - that ensures that we stay true to our role ofcreating ideas that add perceptual value to clients brands.McCann AdWorksAs the last stage of the Road Map to Effective Advertising™ service, McCannAdWorks™ tool ensures more effective marketing communications by providingfeedback from consumers to a proposed campaign expression of the Selling Idea.McCann AdWorks™ service is tailored to a specific product, a market situation, acultural environment. Unlike most leading ad testing firms that offer a simple go/no-godecision on creative work, McCann AdWorks™ is designed to help us understandwhether we have communicated the Selling Idea we set out to communicate, whether theBrand Footprint™ is understood and if the campaign is entertaining.With McCann AdWorks™, we can take the lead in facilitating a real-time discussionabout advertising effectiveness and help clients make the right decisions that lead toadvertising, direct marketing or other marketing communication work that produces greatmarketplace results at the earliest stages of creative development.The McCann Road Map service of proprietary tools has proven valuable to a range ofMcCann-Erickson WorldGroup clients around the world. We believe that, as competitionescalates on a global scale, our Road Map service will become even more valuable in thefuture.MOMENTUM EXPERIENTIAL MARKETING PLATFORMToday, consumers take functional features, benefits, quality, and a positive brand imageas a given. What they want are breakthrough service offerings, cutting-edge products, andbrands that they can relate to, connect with and incorporate into their lifestyles.Increasingly, marketers understand that consumers are living human beings withexperiential needs: consumers want to be stimulated, entertained, educated andchallenged. They are looking for brands that provide meaningful experiences and thusbecome part of their lives. 49
  50. 50. The degree to which a company is able to deliver a desirable consumer experience - anduse brands to do so - will largely determine its success in the global marketplace in thefuture.Trained to think of marketing and branding in terms of experiences, MomentumExperiential Marketing™ Services create unique, nearly impenetrable emotional bondswith consumers. These bonds are based on consumers real experiences with the brand onevery interactive level. Momentum Experiential Marketing™ Services are designed todeliver the brand experience during both the pre-purchase period (brand in mind) and thepost-purchase period or consumption period (brand in hand). At Momentum, we knowthat companies that spend money on acquiring customers (brand in mind) but fail todeliver on the brand promise (brand in hand) will ultimately fail, causing highdissatisfaction and high brand switching.STRATEGIC APPROACH TO DEVELOPING THE BRAND EXPERIENCEOur goal is to have the brand embody an experience that is valuable, optimal, and cannotbe duplicated by competitors.MOMENTUM EXPERIENTIAL MARKETING SERVICESThe ultimate goal of Momentum Experiential Marketing™ is to create holistic brandexperiences for customers. Our strategic approach is guided by a simple formula:Brand = Reputation (in the marketplace) + Promise (to the marketplace) + Experience (ofcustomers)BRAND = REPUTATION (in the marketplace)The first step is to develop a Brand Footprint™. The Brand Footprint™ is Momentumsunique tool for defining a brands essence. The Brand Footprint™ is a coherent statementof a brands meaning and personality.Specifically it embodies:• What the brand "means". What the brand "means" is what a brand gets credit forin the eyes of consumers - its reputation across a number of key dimensions. Forexample, Bayer means aspirin, doctor recommended, and prevention against heartattacks. 50
  51. 51. • What the brand "is". What the brand "is" is how we would describe the brandsdominant personality traits - generally those that correspond to its principal meanings.For example, Bayer is experienced, safe, and versatile.BRAND = PROMISE (to the marketplace)The Brand Footprint™ provides critical insight into how the brand is perceived in themarketplace; this understanding allows us to build meaningful relationships withconsumers. The relationship is a promise that their experience with the brand will bepersonally relevant, consistent, meaningful and memorable - an experience that will besought after time and time again.A Brand Promise is essentially a reason for being, a companys long-term ambition fortheir brand. It encompasses how the company views its industry today and tomorrow andthe role they want their brand to play in it. It seeks to carve out a premium, non-duplicable point of differentiation in the marketplace.A Brand Promise sets forth the foundation needed for organizations to focus in on howthey want the external world to view the brand, redesign operations and strategies inorder to deliver on the promise, and then develop marketing communications to fit withthe image they are trying to portray.A Brand Promise incorporates every aspect of a brands business model in order to createa holistic brand experience for the consumer. At Momentum, we know that publicimpressions of brands are based only in part on communication and public images. Morethan anything, they are based upon the daily explicit and implicit interactions that peoplehave with a brand. In other words, the Experience.BRAND = EXPERIENCE (of customers)Experiences are personal events that occur in response to some stimulation (e.g. asprovided by marketing efforts before and after purchase). An experience involves theentire living being and can be infused into a product, used to enhance a service, or createdas an entity into itself. Experiences provide consumers a way to engage physically,mentally, emotionally, socially or spiritually in the consumption of the product or servicemaking the interaction meaningful and real.A comprehensive set of Momentum Experiential Marketing™ Service Drivers creates theoptimal consumer brand experience for your product or company. 51
  52. 52. Momentum Experiential Marketing™ Service Drivers ,CommunicationsAdvertisingPromotionsCo-BrandingEventsSponsorshipsProduct PlacementVisual/Verbal IdentityNameLogos and SignageProduct PresenceProduct DesignPackagingBrand IconsWeb Sites and Electronic MediaSite DynamicsIn summary, to effectively develop a brand experience that is meaningful and continuallysought after, we must:• Fully understand the meaning of the brand, its personality and what consumersare willing to give the brand credit for in the marketplace - Brand Footprint.• Relate the brand to the consumer in unique, consistent, relevant and meaningfulways, creating a non-duplicable point of differentiation - Brand Promise.• Realize the promise in every interaction the consumer has with the brand - The Experience.Developing a sound strategy will allow us to determine the best way to actualize thepromise as part of a full-scale consumer experience platform. Momentum ExperientialMarketing™ Services enable us to bring the experience platform to life.Brand CitizenshipWhy the Brand Citizenship Service was created: 52
  53. 53. Due to the revolution in global communications and commerce, McCann-EricksonWorldGroup recognize that there has been a sea change in the perception of brands.Brands, these global icons, have become the new symbols, the new coats of arms thatrepresent vast global constituents. They cross borders and national culture at will. Theyare neither products nor companies; they are worldwide constituencies of millions aroundthe globe bound by common beliefs, values and point of view that transcend alltraditional boundaries. They have become repositories and symbols of a globalcommunity of individuals who share core values, lifestyles and beliefs.Brand Citizenship™ is a service that facilitates the development of marketing andcommunications strategies in this ever more global constituency led market environment.It begins with the development of new mindset tools, and practices before moving on tohow brands and corporations should operate in a world where brands begin to supercedestates and other organizations.Brand Citizenship™ utilizes the very latest thinking in considering the brand in its newenvironment. The role of the brand steward in worldwide constituency management isexamined: in particular how he identifies his citizenship, and the means and methods toenter a dialogue with the citizen. Analogies are drawn from the past in order to gain freshinsight on the role and the responsibilities of the brand steward - someone we come toconsider more akin to a leader of a nation rather than a manager of a product. Attention isalso given to the role of the employee who plays a vital part in Brand Citizenship™ bycreating and perpetuating the brand.The Brand Citizenship™ Service incorporates the use of other McCann-Ericksonproprietary tools such as The Brand Footprint™ and The Selling Strategy™ (as detailedin The Roadmap to Effective Communications™) in the process of managing globalBrand Citizenships. This process is broken down into three key areas - citizenshipdefinition tools, communications corridors and a pervasive worldwide system.The Brand Citizenship™ Service has proven valuable to a range of McCann-EricksonWorldGroup clients around the world. We believe that in the increasingly competitiveglobal village in which we operate, our Brand Citizenship™ Service will become evenmore valuable in the future. 53
  54. 54. SWOT ANALYSIS:-STRENGTHS:- 1) Planning is a major strength of this agency. This is because Mc Cann is the only agency whose president is the planner. 2) Also, as far as overall account planning ability , Mc Cann Erickson stands 4 th amongst all advertising agencies worldwide. 3) On the creative ability front, Mc Cann Erickson bags third position in the list of top ten advertising agencies. 4) Mc Cann Erickson is a worldwide organization with its roots firmly penetrated into the soils of advertising and marketing with many subsidiaries and group concerns , Mc Cann Erickson has aggressively tapped the world market and consolidated its ground in all spheres. 5) Mc Cann Erickson is a highly professionally managed organization. Its executives are its major assets as is clear from their contributions to Mc Cann and their portfolios. 6) In India, an overall basis i.e. on the grounds of quality of client servicing, overall creative quality, account planning, overall partnership, media, market recognition, overall organization/people, billing procedures, management of financial dealings with clients &logistics, Mc Cann stands 4th in the list of Top 20 agencies. 7) Mc Cann Erickson’s biggest strength is the quality of human resources it possesses. With people like Sorab Mistry who is the CEO South-Asia Mc Cann- Erickson , Santosh Doshi, Prasoon Joshi and Chintamani Rao, Mc Cann not only races ahead of agencies like Contract , Mudra and Leo Burnett but also has a huge potential for the future. Prasoon Joshi, earlier creative director of O&M’s Mumbai Office, now a national creative director of Mc Cann Erickson is the second amongst India’s hottest creative directors. In a short period of time, he has managed to upstage a number of heavyweights to sit pretty at number two on the list of most admired creative directors. WEAKNESSES:- 54

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