A Project Report on the impact of surrogate advertisement in surrogate products at ogilvy & mather
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A Project Report on the impact of surrogate advertisement in surrogate products at ogilvy & mather

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EXECUTIVE SUMMARY ...

EXECUTIVE SUMMARY
As in today’s advertisement scenario, surrogate advertisements holds great potential and growth when compare to other advertisements.

This growth and potentiality directed to enter into this sector. The success story of a good advertisement depends on how it creates image before customer’s mind. This study tries to reveal the knowledge and perception of customer’s by exploring their experiences and valuable suggestions.

Also trying to find out whether the surrogate advertisements make some impact throughout the market. Only some advertisements make the customers to try the product.
So descriptive type of research is adopted for studying the overall market. Non probability sampling technique, convenient sampling is carried out for collecting the primary data. Though the percentage method data’s is being interpreted .

Primary as well as secondary data’s were collected through questionnaire method, and it helps to experience the advertisement perception of customer directly.
Customers mainly remind the surrogate advertisements because on the medium, it is represented through different media’s. The entire study points out the area of improvements, while doing the surrogate advertisements.

As every advertisement were intended to create some good impacts on customer’s mind; ethically it has to satisfy all the desires and needs of customer. It came to know that people remember the brand names and ask for the surrogate products. Because of the knowledge and awareness level of surrogate advertisements are high, it is sure that liquor companies can take the mileage through surrogate products.

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A Project Report on the impact of surrogate advertisement in surrogate products at ogilvy & mather Document Transcript

  • 1. School Of Management And Business Studies. Page 1 A Study on Impact of Surrogate Advertisement in Surrogate Products at OGILVY AND MATHER PVT LTD, BANGALORE A Project Report submitted to Mahatma Gandhi University for the partial fulfillment of the Award of Master of Business Administration Submitted by: AHAMMED SHAMEER P.M. (Reg. No: 121004) Under the supervision of Dr. Johney Johnson SCHOOL OF MANAGEMENT AND BUSINESS STUDIES Mahatma Gandhi University, Priyadarshini hills P.O. Kottayam, Kerala- 686560 2010-2012
  • 2. School Of Management And Business Studies. Page 2 SCHOOL OF MANAGEMENT & BUSINESS STUDIES MAHATMA GANDHI UNIVERSITY KOTTAYAM C E R T I F I C A T E This is to Certify that the report on “A study In Impact of Surrogate Advertisement on Surrogate Product” at Ogilvy and Mather Pvt Ltd, Bangalore submitted by Ahammed Shameer P.M. is based on the project study conducted by him/her under the guidance of Dr. Johney Johnson in partial fulfillment of the requirements for the award of the degree of Master of Business Administration, Mahatma Gandhi University, Kottayam, Kerala. Dr. Johney Johnson Dr. Sreeranganathan Faculty Guide Director Place: Date: (Office Seal)
  • 3. School Of Management And Business Studies. Page 3 D E C L A R A T I O N This is to declare that the project report titled “A Study In Impact Of Surrogate Advertisement On Surrogate Product “ at Ogilvy and Mather Pvt Ltd is a bonafide work done by me under the guidance of Dr. Johney Johnson in partial fulfillment of the requirements for the award of the degree of Master of Business Administration, Mahatma Gandhi University, Kottayam, Kerala and that no part of this report was submitted earlier for the award of degree, diploma or title. Place: Date: Ahammed Shameer P.M
  • 4. School Of Management And Business Studies. Page 4 ACKNOWLEDGEMENT I express my deep gratitude to the director Dr. K. Sreeranganathan, School of Management and Business Studies, Mahatma Gandhi University, kottayam for giving me an opportunity to do this project work. I do hereby express my sincere gratitude towards Dr. Johney Johnson, Faculty, School of Management and Business Studies, Mahatma Gandhi University, kottayam for his valuable suggestions and patronage of this report. He has provided many insights and Suggestions that I feel have increased the quality of information presented here. I would like to express my warmest thanks to Mr. C.P. Nitin Menon, Account Director,for granting me an opportunity to do my studies at Ogilvy and Mather Pvt Ltd. My special thanks to Ms. Ayani Sarkar, Senior Account Executive for kindly help, valuable suggestions and generous encouragement they have given me all through the span of my work. I am thankful to faculty members in SMBS and to my parents for encouragement over this manuscript. Finally I would like to record my thanks to each and everyone who have helped me to compile this work.
  • 5. School Of Management And Business Studies. Page 5 AHAMMED SHAMEER P.M. EXECUTIVE SUMMARY As in today’s advertisement scenario, surrogate advertisements holds great potential and growth when compare to other advertisements. This growth and potentiality directed to enter into this sector. The success story of a good advertisement depends on how it creates image before customer’s mind. This study tries to reveal the knowledge and perception of customer’s by exploring their experiences and valuable suggestions. Also trying to find out whether the surrogate advertisements make some impact throughout the market. Only some advertisements make the customers to try the product. So descriptive type of research is adopted for studying the overall market. Non probability sampling technique, convenient sampling is carried out for collecting the primary data. Though the percentage method data’s is being interpreted .Primary as well as secondary data’s were collected through questionnaire method, and it helps to experience the advertisement perception of customer directly. Customers mainly remind the surrogate advertisements because on the medium, it is represented through different media’s. The entire study points out the area of improvements, while doing the surrogate advertisements. As every advertisement were intended to create some good impacts on customer’s mind; ethically it has to satisfy all the desires and needs of customer. It came to know that people remember the brand names and ask for the surrogate products. Because of the knowledge and awareness level of surrogate advertisements are high, it is sure that liquor companies can take the mileage through surrogate products.
  • 6. School Of Management And Business Studies. Page 6 Chapter 1 INTRODUCTION
  • 7. School Of Management And Business Studies. Page 7 1.1 INTRODUCTION Research is the scholarly or scientific practice of gathering existing or new information in order to enhance one's knowledge of a specific area. Research has many categories, from medicine to literature. "Marketing research is the function that links the consumer, customer, and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes, and communicates the findings and their implications."- American Marketing Association (AMA) - Official Definition of Marketing Research. We identify or define the marketing research problem or opportunity and then determine what information is needed to investigate it, and inferences are drawn. Finally, the findings, implications and recommendations are provided in a format that allows the information to be used for management decision making and to be acted upon directly. It should be emphasized that marketing research is conducted to assist management in decision making and is not: a means or an end in itself. Thus research replaces intuitive business decision by more logical and scientific decisions. INDIAN MARKETING & ADVERTISING SCENARIO The Indian marketing & advertising sector have shown a tremendous growth since the early 90’s with several progressive plans implemented by the Indian government. The government then decided to open the Indian market for foreign investors and allowed foreign equity. That paved the way for the opening the floodgates of the boom in these sectors which is still shining high. Marketing & advertising (M&A) are the tools which can be used by an organization to relate
  • 8. School Of Management And Business Studies. Page 8 itself to its target audience at a large scale. The 'Grand Old Man' of Indian advertising’, R.K.Swamy, was instrumental in bringing advertising to the Indian map at the age of 50. Several big names such as Ogilvy & Mather, JWT and Mudra have established large business houses and have made a name for them in this large growing M&A market. There are several benefits attached with the promotion of a company using the medium of marketing & advertising. It is economical, easy-to-use, appeals to a large public group and it provides the company an opportunity to be on a more interactive and more informative platform. The prospective customers can get the required information and also purchase the products of the company by using credit cards or pay-pal (online payment). This has proved to be beneficial for both the companies and the customers as that helps in the growth of the market overall and ensures availability of right products at the right time and that too economical. Many of the Indian M&A companies are earning their deserved name and fame by being conferred with the honor of market-leaders and several others are on an emulating spree to achieve the feat of their peers. Lowe India was recently conferred at the recently concluded Asian Advertising Awards by Media Magazine Awards. Ogilvy & Mather recently won the “Pink slip” recognition by the Times Of India Group for its unmatched work skills. The current growth of 18-20 per cent in M&A is among one of the highest among various industries in India. Nowadays famed global agencies are getting attracted towards the growing Indian market and the Indian economy is slowly but steadily opening its doors to World market capitalism. The 10000-crore M&A industry accounts for about 33 percent of the total industry profits in the Asia-Pacific belt. The recent NASSCOM-McKinsey report indicated that India is believed to build a $17-billion web-based Industry by the end of 2008. Outdoor Advertising in India is one of the most opted modes of brand promotion. Indian Outdoor advertising industry comprises of a major share in the overall advertising industry. Outdoor Advertising avenues such a billboard ads, kiosks ads, airport/metro/mall ads are popularly adopted by brand owners. Billboard advertising is one of the most widely adopted forms of outdoor advertising. One can see billboard ads almost anywhere in the city- at the traffic point,
  • 9. School Of Management And Business Studies. Page 9 at the metro stations, at the shopping malls, at the roadsides, at the highway etc. Until the launch of some technologically enhanced tools of outdoor advertising, Indian outdoor advertising was synonymous to billboard and poster advertising. Billboard ads have been effectively used by brand owners and advertisers on a larger scale. With digital technology, Indian Outdoor Advertising has seen a drastic change. Billboard ads are even digitalized in contemporary outdoor advertising, thereby providing a richer impact on target groups about the various endorsed brands. The rising numbers of shopping malls again provide lucrative advertising opportunities to brand owners who want to advertise their brands through the rich and interactive mall media. Mall culture is spreading at each and every nook and corner of the country, thereby providing brand owners striking opportunities to popularize and position their brands amongst target groups. Airport Advertising, another popular avenue of outdoor advertising is also gaining much acclamation as one of the most effective avenues of brand promotion. Airport ads are considered exclusive because of the rich ambience as well as the ‘state-of-art advertising mediums’ used by brand owners to launch their promotion campaigns. Airport ads target rich people/decision makers who can easily spend for the advertised brands. Hence, various posh brand ads are launched through airport media with a targeted impact on those rich customers. The growing numbers of airports in the country further provide brand owners exclusive brand advertising opportunities through airport media in the near future. 1.2 NEED FOR THE STUDY Surrogate advertisement resemble the original product or could be a different product altogether, but using the established brand of the original product. The trend of surrogate advertisement gathered momentum with several Medias around worldwide. As heated debates are going over the issue of surrogate advertising; whether it is needed or not, by doing the study expects to throw light on the subject. Being these advertisements attracted criticism from various people as they are not only misleading, but also false and dishonest in many cases.. And mainly concerned with knowing the knowledge of public about surrogate advertisement.
  • 10. School Of Management And Business Studies. Page 10 1.3 SCOPE OF WORK: 1. The study was conducted in Bangalore City for collecting information. 2. The present study was conducted to help the company , how surrogate advertisements hits customers mind. 3. The study helps to work on the media though which customer knows about the surrogate products. 4. The study was conducted keeping in mind to understand the customer knowledge of surrogate advertisements. 1.4 PROBLEM IDENTIFICATION: O&M would like to know what is the perception of customers, their knowledge and how can they develop new advertisement campaigns and strategies for their client, to make surrogate advertisements in a better way. 1.5 SURROGATE ADVERTISEMENTS: A surrogate advertisements is one in which a different product is promoted using an already established brand name. Such advertisements or sponsorships help in contribute to brand recall. The different product shown in the advertisement is called the “Surrogate.” It could either resemble the original product or could be a different product altogether, but using the established brand of the original product. The sponsoring of sports/cultural/leisure events and activities also falls under the purview of surrogate advertising. In India, the trend of surrogate advertisement gathered momentum with the Cable TV Network Regulation Act, which prohibits tobacco and liquor advertisements on TV channels. The liquor industry has intentionally blurred the line between products, advertising `old wine' in a `new bottle,' only this time with a soft-drink label.
  • 11. School Of Management And Business Studies. Page 11 By August 2002, the I&B Ministry had banned 12 advertisements and leading satellite TV channels including Zee, Sony, STAR and Aaj Tak were issued show cause notices to explain their rationale behind carrying surrogate liquor advertisements. Product advertising for liquor and cigarette companies is banned in the country since 1995 by Cable Television Network (Regulation) Act. According to Rule 7 (2) of the Act, no broadcaster is permitted to show advertisement which promotes directly or indirectly promotion, sale or consumption of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants, infant milk substitution, feeding bottle or infant food. This ban is now likely to be extended to advertising of extended brands. In June 2002, the Indian Information and Broadcasting (I&B) Ministry served notices to leading television broadcasters to ban the telecast of two surrogate ads of liquor brands McDowell No.1 and Gilbey’s Green Label. The Ministry also put some other brands ---Smirnoff Vodka, Hayward’s 5000, Royal Challenge Whiskey and kingfisher beer on a “watch list.” The surrogates used by these advertisements ranged from audiocassettes, CDs, perfumes to golf accessories and mineral water. A market survey in 2001 revealed that advertising has a direct influence on the consumption habits of 431 million people in India and an indirect impact on 275 million `aspirants' from the lower income group. Considering this and realizing that nearly 50 per cent of the television owners have access to cable channels, there is no doubt that the hidden call for alcohol consumption behind the surrogate advertisements is not escaping the eyes of viewers in the world's fourth highest liquor-consuming country. The very purpose of banning liquor advertisements is defeated by surrogate advertising. Answering to the notices, Zee and STAR stopped telecasting the advertisements, followed soon by Aaj Tak and Sony. In addition, the I&B Ministry hired a private monitoring agency to keep a watch on all the advertisements for violation of the Act. These developments led to heated debates over the issue of surrogate advertising by liquor companies being allowed on national media. Though the companies involved came out strongly
  • 12. School Of Management And Business Studies. Page 12 against the I&B Ministry’s decision, they seemed to have no other choice, given the highly regulated nature of the liquor business. Analyst remarked that there was lot of hypocrisy underlying the government policy. They said “on the one hand they allow these ‘socially bad’ products to be manufactured and sold and then they deny the manufacturers the right to propagate knowledge of their products in order to drive sales. If something is bad and cannot be advertised, why allow it to be sold at all?” Liquor producers spent heavily on advertising on the electronic media, particularly TV. Though the broadcasters were bound by the 30 yrs old advertising code, which stated that “No advertisements shall be permitted which relates to or promotes cigarettes and tobacco products, liquor, wines and other intoxicants,” the telecast of such product continued blatantly over the years. More over the satellite channels garnered about 50% of their revenue from liquor and cigarettes advertisements. In the peak seasoned it gets almost doubled. Due to the ban, liquor companies focused more on promotions for brand building. They started sponsoring events that projected the “glamour” of the brands, like track racing, car rallies etc. for instance Shaw Wallace Co. one of the leading liquor companies in India, conducted the Royal Challenge Invitation Golf tournament, which became an annual event. Some companies also promoted their product through corporate advertising, distributing free gifts like Caps and T- Shirts with the brand name and using glow-signs outside the retail outlets. The ban on advertising of alcohol beverage products has severely handicapped communication with consumers. The industry is naturally compelled to make the best use of the channels and media of communications still open to it. Companies with liquor brands are not advertising liquor products; instead they have extended the equity of their brands into other fields. Over a period of time these products have become independent businesses for companies. However as the TV was the most effective medium of advertising, surrogate advertising on TV became popular. The liquor producers seemed to have ensured that the ban was only on the paper.
  • 13. School Of Management And Business Studies. Page 13 In the mean time, some producers entered new segments under the liquor brand or advertised these products under liquor brand. Most of the liquor producers entered into packaged water segment, such as Kingfisher Mineral water. McDowell used surrogate advertising by using its mineral water and soda brands, which generated additional revenues for the company. In the early 2001, SWC started marketing its range of golf accessories under the liquor brand Royal Challenge. It also announced that India’s flagship Golfing Event – the Indian open would be sponsored by the company till 2006. The surrogate advertisements from liquor companies intensified further through sponsorships of movies, music shows, and other programs and attracting youth. For instance, Seagram’s Royal Stag was promoted by sponsoring movie related activities and Indian pop music using the banner Royal stag Mega Movies and Royal stag Mega Music. In late 2001, the broadcasters began airing socially responsible advertisements sponsored by liquor companies. By early 2002, surrogate advertising of liquor brands had intensified like never before on satellite TV channels. These advertisements attracted criticism from various people. There were numerous other advertisements selling music cassettes, CDs, water, clothing, fashion accessories and sports goods --- many of them accused of being sexually provocative and offensive. Exhibit-1
  • 14. School Of Management And Business Studies. Page 14 The Advertising Standards Council of India (ASCI) has clarified that as per its code, the mere use of a brand name or company name that may also be applied to a product whose advertising is restricted or prohibited is not reason to find the advertisement objectionable provided the advertisement is not objectionable and the product is produced and distributed in reasonable quantities and the objectionable advertisement does not contain direct or indirect cues for the product that which is not allowed to be advertised. However the analyst opined that the ban could turn out to be advantages for the domestic players. In March 2001, as per the commitment to the WTO agreement, MNCs would have an unrestricted license to sell their products. After the ban, these MNCs would not have access to the quickest and most effective form of advertising --- the TV. Some analyst argued that the ban would not affect the established domestic players severely. It would only affect the new launches and new brand building of these companies. The ban was also expected to improve the margins for these players. The latest television ad for “AC Black Apple Juice” epitomizes so many things that are wrong with surrogate advertising in India.
  • 15. School Of Management And Business Studies. Page 15 Most of the surrogate advertising is done pretty blatantly with the “harmless” product being nothing more than a front for advertising the “harmful” brand. So you have various liquor/cigarette manufacturers resorting to ingenuous ways to peddle their wares. Of course there are a very few brands which start off as a surrogate brand, but over a period of time actually become full-fledged brands in themselves. The “Wills Sport” clothing line from the manufacturers of “Wills” cigarettes is one of those rare cases. But on the whole, surrogate advertising is dedicated towards using an insignificant, “harmless” product to increase/maintain awareness for their primary “harmful” brand. And that’s not an easy task. For instance, how do you portray the essence of a whiskey or vodka or a cigarette using a bottle of bottled water or a pack of apple juice? Similarly "HUM tum or mera Bagpiper". This Bagpiper club soda advertisement, featuring cine celebrities, is similar to the earlier one for Bagpiper whisky. The advertisement comes with the same music and punch line as the one for the popular liquor brand telecast before the ban on liquor advertisements. Not easy. And guess who/what suffers when faced with this quandary? 1. Consumers - because we have to put up with the lameass, stupid advertising that’s designed to sell booze/ciggies but pretends to be all about water or apple juice! It’s like everyone knows what’s going on - the manufacturers know what the real reason for the ad is, the consumers know what’s really been advertised, and the government knows that too. So why not either (i) do away with this wholesale scam and just let them advertise all their stuff, or (ii) ban such surrogate advertising? 2. Advertising - because ad agencies have to come up with silly ads based on briefs from clients who are not interested in the surrogate brand, but the primary brand. I agree some might consider it a worthy challenge to do something like this, but from what I’ve seen of surrogate advertising in India the output is pretty lame.
  • 16. School Of Management And Business Studies. Page 16 Surrogate advertisements are not only misleading, but also false and dishonest in many cases. With surrogate advertising so widespread, this is the moment to tackle the problem head-on. There should be stringent regulatory measures to curb the practice, such as: i) Making transparent laws banning surrogate advertisements for different products under a single brand name, by amending the Trade Marks Act, for instance. ii) Providing teeth to the Advertising Standards Council of India to enable it take action against false and misleading advertisements, and keep a close vigil over clever evasion of the law. iii) Asking the electronic and print media to adhere to the advertisement codes and not encourages surrogate advertisements. iv) Calling on the ASCI address complaints received from consumers against surrogate advertisements and take appropriate actions immediately. v) Creating a consumer awareness programme to help people understand the negative impact of surrogate advertisements. vi) Adopting strict laws to penalize those companies featuring surrogate advertisements without any real existence of the product. vii) Requiring advertising agencies to have full knowledge of the products under the same brand for which they are promoting advertisements, and taking legal actions against those agencies which design surrogate advertisements. If one believes that honesty is the best policy and truth ultimately gains, the best policy would be to stand up strongly to the dishonest practices of surrogate advertising. Senior sources at IBF also said that the industry body had sent out show-cause notices to a couple of channels regarding ads of certain alcohol and tobacco products. Most channels have reportedly complied with the Government panel’s directive to the extent that the ads of a liquor company – that purportedly makes apple juice after drinking which anything can happen (‘kuch bhi ho sakta hain’) – have been taken off air.
  • 17. School Of Management And Business Studies. Page 17 PROBLEM STATEMENT When the Advertising Standards Council of India (ASCI) withdrew its code to regulate tobacco, liquor products etc. consumer activists were concerned over the impact of the move. The issue has taken a new twist with the Central Government deciding to ban these product companies from sponsoring sports and cultural events. Liquor or tobacco advertising in banned in India and hence companies that sell these products have to resort to advertising their wares using less “harmful” products which carry almost the same names and looks - surrogate advertising. 1.6 RESEARCH OBJECTIVES: Does the surrogate advertisement have any impact on the consumers buying behaviour for buy the surrogate products? To find customers perception on surrogate ads. Do the liquor companies able to utilize the established brand names on surrogate advertisement.
  • 18. School Of Management And Business Studies. Page 18 To know the media pattern, through which the companies able to retain their brand names through ads. Do Customers believe on unethical ways of advertising by brand recalling even if they know that it is a surrogate one? 1.7 LIMITATIONS OF THE STUDY: 1. The time schedule given to the researcher was too short; due to which the researcher was not able to meet more potential customers. 2. There were customers who gave vague as well as no responses to get complete information needed for the research study. Chapter 2
  • 19. School Of Management And Business Studies. Page 19 Literature Review Literature Review Surrogate advertising is advertising which embeds a brand or product message inside an advertisement which is ostensibly for another brand or product. For example, a cigarette company might issue public service announcements relating to a topic such as lung cancer, using the company's logo or distinctive brand colors in the ads so that people are exposed to the company's branding without seeing an explicit ad for the company's product. The company would justify the advertisement by claiming that it's an example of social responsibility. There are a number of reasons for companies to use surrogate advertising. One of the most common reasons is to circumvent a ban on direct advertisements of particular products. Many nations have laws restricting alcohol and tobacco advertising, for example, so companies use surrogate advertising to market their products. Techniques used might include advertising another product with the same brand name, sponsoring community events, issuing public service announcements, or sponsoring sports teams. All of these activities technically do not violate the ban on direct advertising, but they still get consumers familiar with the company's branding.
  • 20. School Of Management And Business Studies. Page 20 Surrogate advertising may also be used when companies want to cultivate an image of social responsibility. For example, many health advocates have criticized advertisements for sweet treats aired during children's cartoons. A company might pull outright advertising during these time slots and instead air a series of public service announcements about eating a balanced diet, with the announcements coincidentally bearing the company's branding. Pharmaceuticals are another product with advertising restrictions. Historically, pharmaceutical companies were not allowed to advertise prescription medications at all. Once this regulation was relaxed, some restrictions were left in place. Using surrogate advertising allows companies to get around regulations. For instance, the manufacturer of an asthma medication might sponsor informational commercials about managing asthma, with the medication branding scattered throughout the advertisement to get consumers used to the brand and to imply that the medication plays an important role in managing asthma. COMPANIES FOLLOWING SURROGATE MARKETING
  • 21. School Of Management And Business Studies. Page 21 SU RR OGATE ADVERTISEMENTS PROMOTED BY LIQUOR AND TOBACCO INDUSTRY The liquor industry is a prominent player in this game. Few surrogate advertisements shown in print, electronic and outdoor media are - Bagpiper soda and cassettes & CDs, Haywards soda, Derby special soda, Gilbey green aqua, Royal Challenge golf accessories and mineral water, Kingfisher mineral water, White Mischief holidays, Smirnoff cassettes & CDs, Imperial Blue cassettes & CDs, Teacher's achievement awards etc. These products bear exactly the same brand name and logo, which we had seen earlier in liquor advertisements. It was little surprising to LEGITIMATE BUSINESS SURROGATE ADVERTISEMENT Mc Dowell’s Walt whisky Mc Dowell’s soda/water Radico khaitan’s 8 pm whisky Radico khaitan’s water Hayward’s 500 beer Hayward’s soda/water Derby special Derby special soda Bacardi liquor Bacardi blast cds and cassettes Bagpiper liquor Bagpiper soda and cassettes Four square cigarettes Four square white water rafting Kingfisher beer Kingfisher bottled drinking water Smirnoff vodka Smirnoff cds and cassettes Red and white cigarettes Red and white bravery awards Pan Parag gutka Pan Parag pan masala Rajnigandha tobacco mix Rajnigandha pan masala Chaini Khaini Chaini Chaini pan masala Gopal Zarda Gopal Supari 132 Pataka 502 Bidi Pataka 502 Tea
  • 22. School Of Management And Business Studies. Page 22 know that liquor giants like McDowell's and Seagram's have entered into new segments like cassettes & CDs, mineral water, sports accessories etc. Later it was found that the basic aim of these surrogate advertisements was to promote their liquor brands like beer, wine, vodka etc. This brand extension is an act of bypassing the advertisement ban. A similar trend is followed by companies making Cigarettes, Paan Masala and Gutkha. Few examples of surrogate advertisements in this category are - Red & White bravery awards, Wills lifestyle, Four Square white water rafting, Manikchand awards etc. Though a ban has been imposed on advertisements endorsing tobacco products, this industry has resorted to surrogate advertising a few years ago. The Health Ministry has recently implemented the tobacco control legislation which will imply a complete ban on advertisements and all direct & indirect promotional campaigns for tobacco products. In 2001, Indian Tobacco Company (ITC) had voluntary withdrawn the Wills Sports sponsorship of the Indian cricket team when the Government had first proposed a ban on advertising through legislation. THE CORPORATE STANDPOINT The industry segment has its own standpoint in defense. The liquor lobby claims that everything is in accordance to the Government regulations. "If a brand has equity, why shouldn't it be allowed to advertise? Also, brand extension is an industry practice adopted by different product categories," comments Alok Gupta of UB group. "When we advertise our products, we follow all the guidelines," declares president, sales & marketing, Radico Khaitan. They clarify that they have stopped showing liquor advertisements and they are free to use the brand name for any other products. Even the Confederation of Indian Alcoholic Beverages Companies (CIABC) advertising code maintains that advertisement of products (real brand extensions) by the liquor industry must be allowed. From a layman's point of view, their claims seem to be justified. But this is a clear example of taking advantage of the loopholes. There is a point to ponder. When they have stopped showing liquor advertisements, why the same brand name and logo is used to promote products like cassettes & CDs or mineral water? They could have assigned different brand names. It seems they have a hidden agenda of highlighting the liquor or tobacco brand.
  • 23. School Of Management And Business Studies. Page 23 A similar tussle over the issue of surrogate advertisements in politics was raised in April 2004 on the eve of Lok Sabha elections. Complaints of slanderous and offensive advertisements were raised by two major political parties - BJP and Congress against each other. The issue became so serious that the Supreme Court had to interfere in this affair. Finally on 13 April 2004, the Court gave a verdict to curb smear advertisements on electronic media. By appointing Election Commission as referee, the court has tried to put an end to surrogate advertising in politics. According to the Cable Act under the ministry of information and broadcasting,- "no broadcaster is permitted to show an advertisement which promotes directly or indirectly, sale or consumption of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants…" Now a new clause has been added under the act stating that "any advertisement for a product that uses a brand name which is also used for cigarette, tobacco product, wine, alcohol, liquor or any other intoxicant will not be permitted". Finally, in April 2005, the ministry resorted to a ban on surrogate advertisements of liquor and tobacco products on television. After this directive, the surrogate advertisements are seldom shown on television. Now the companies will have to reframe their policies. But who will take care of print and outdoor media is not certain. According to ASCI (Advertising Standards Council of India), surrogate advertisements are harmful. Now it will be up to the ASCI to take up the matter with the respective companies. SURROGATE ADVERTISING: EMERGING TREND A recent series of hoardings led me to delve into a very unique trend specific to Indian advertising – Surrogate advertising… a trend which is fast catching up and has suddenly attracted a lot of innovative and creative brains around the country. Reason? On one hand, the govt cannot allow public advertising of liquor companies. But ironically, liquor and cigarette sales are the biggest revenue generators in terms of taxes and duties on these items. That’s why an overt acceptance of the marketing in these sectors is not legally acceptable. This has led to one of the biggest ironies of the country – Sales of these items are not banned, yet advertising on the same has strictly been prohibited!
  • 24. School Of Management And Business Studies. Page 24 Talking about the market size and the different segments would not be pertinent to the discussion (for the records, it is more than 100 million cases in India!). But what is the significance of this trend vis-à-vis the entry points for new players and sustainability of existing ones? Multinationals which would like to explore the Indian markets find the double-faced attitude of the government as an impediment to their ventures. Since no policy has been formalized in this regard, foreign companies continue to be skeptical about their entry. Domestically, it has led to innovative ways and methods of spending on different media for Advertising from the companies, where companies do more of a brand building exercise than direct advertising. Be it promotions for brand building, or sponsoring events that can be mapped with the “showbiz” and “glamour” of the brand, advertisers don’t leave many avenues to enhance their visibility. The rule says “Advertisements which lead to sale, consumption and promotion of liquor should not be allowed.” So, in Surrogate Marketing, a product which is different from the main product is advertised, and has the same brand name as the main product. The product is called as “surrogate” and advertising through this channel is called “Surrogate Advertising”! It may include CDs, water, clothing, Apple juice, fashion accessories, sports goods or even events sponsoring! These gimmicks, in turn, help the consumers build a strong equity of the parent brand, and with the enhanced visibility, the equity of the brand would definitely become higher! Liquor companies were forced to look at innovative ways of building their brands. With an objective of enhancing brand recall, companies either engage into “surrogate advertising” or displaying “socially responsible messages”. Again, out of the two viable options for Advertising, Surrogate Advertising has been surrounded by controversies and legalities for a long time. There is no clear policy from the government for
  • 25. School Of Management And Business Studies. Page 25 obvious reasons and companies do not want to risk their investments on Ads, which might not be screened after a while. So, a safer choice available where companies can exercise their grey cells is advertising “socially responsible” messages. Take a look at these billboards which I noticed on a private flyover a few days back. There is also another print ad in continuation with the Johnnie Walker billboard. Must say, this is one of the best elements of innovation that I have seen so far. Though it would be too premature to attribute this to the industry per se, it has become imperative for the companies to change their line of thought completely, to work around the system. What are the other practices companies are looking at?
  • 26. School Of Management And Business Studies. Page 26 (a) Companies are getting involved in Sponsorships of events and have launched their own awards for bravery or lifetime achievements! (b) Internet advertising has become a lucrative area which has so far not been delved into. The medium holds a lot of potential to enhance visibility, and companies have lately realized that. (c) Catchy jingles have become the norm of the day to ensure that their brands have a high brand recall. (d) With restrictions in other marketing elements – in terms of pricing and distribution, companies have ventured into another important element – Packaging. Innovative packaging makes their brands stand out of the clutter, and most of the Multinationals are revisiting this element in their brand portfolio. Though the industry is not healthy for the young consumers, some processes and laws need to be formalized and established in the system. Else, innovative workarounds and arm-twisting of laws would be the norm of the day for the entire liquor industry! CONSUMER PSYCHOGRAPHICS AND SURROGATE ADVERTISING 'Surrogate advertising' is one of the emerging ethical issues in advertising in India. This is used as a strategy to advertise products like liquor or tobacco - the advertisement of which otherwise, is banned in our country. It relates to advertising by duplicating the brand image of one product extensively to promote another product of the same brand. When consumers look at these advertisements, they associate these with banned products. Hence, such products are indirectly advertised, and therefore, influence their behaviour. There is no doubt that the hidden call for alcohol consumption behind the surrogate advertisements is not escaping the eyes of viewers of the world's fourth highest liquor consuming country. Hence, surrogate advertising defeats the very purpose of banning liquor advertisements. The central issue of the ethical discussion in the present study is regarding the attitude of targeted consumers towards the practice of surrogate advertising vis-à-vis their psychographic profile towards advertising in general. The
  • 27. School Of Management And Business Studies. Page 27 psychographics of the target audience are important to be discussed since they are the final evaluators of advertising. The study concludes that surrogate advertising is not perceived positively by the various sections of the society. Though there were some positive perceptions found for this practice, on the whole, the attitude of most of the targeted consumers, i.e., the respondents were more dominating towards the negative side for the surrogate advertising and they consider it to be an unethical practice. The ethical perception of the targeted consumers affect the acceptability of surrogate advertisements and hence, the attitude of the consumers towards it, with majority of these consumers considering it as immoral and unethical. The implications thus, are left for the advertisers to modify and redesign their advertising strategies in accordance to the consumer psychographics, so that they can find a way out which is more ethical and positive for the society or their target market rather than resorting to surrogate advertising. Impact of Surrogate Advertisements on Children Each day 55,000 children in India start using tobacco, Gutkha the chewable tobacco is aimed at the younger generation of the country. But you may wonder how these companies manage to reach the minds of these children when they are not allowed to advertise these products. After the ban the companies opened their doors to surrogate advertisement, an advertisement has the logo or brand of another company advertised within it. Lets take a look at this report done by a French channel on surrogate advertisements done in India.
  • 28. School Of Management And Business Studies. Page 28 One of the biggest surrogate advertisement market is the film Industry Bollywood, in 2004 and 2005, 89% of all the released movies had smoking scenes in them. Below is a small documentary on smoking in movies, with interesting statistics on the current scenario in India with regards to smoking. According to research done by the Salaam Bombay Foundation, 3260 children between the age of 12 to 17 years fro municipal and private schools were asked to fill out a self-administered questionnaire. When asked to recall slogans of any tobacco company or brand… 71% recalled Manikchand – Oonche log, oonchi pasand 12% recalled Goa – Yahan bhi Khilate hain, whan bhi, Goa No 1 2% recalled Sanket 0.4% recalled Shimla 15% recalled other brands When asked to associate slogans with brands 63% could associate the slogan while 37% could not. What kind of a message will a child get from, Oonche log, oonchi pasand Some of the observations learnt through this research is that, Gutkha advertising has had a deep impact on the minds of children although it has been banned since August 2002. As children cannot easily disassociate Manikchand Water fromManikchand Gutkha, tobacco manufacturing companies should not be allowed to use surrogate advertisements. TV and radio are the hotspots as to where these messages are broadcasted to the children. Legal concern – “Blanket Ban on "Surrogate Advertising" An advertisement unmistakably and profoundly directs one’s life. The extent to which advertisements persuades a person depends upon its pushing publicity. The adverse impact of advertisements of unhealthy products is a matter of concern for this hour.
  • 29. School Of Management And Business Studies. Page 29 Impact of tobacco, liquor, cigarettes is far alarming than we can think for one’s health. Due to the widespread unfavorable impact of advertisement of unhealthy products, Indian government has always struggled and strived to curb or atleast restrict rampant advertisements of such products by appropriate legislations. Result to the directive of Government to ban advertisements of products that are adverse to health, the major companies of liquor & tobacco sought other ways of endorsing their products. They have found an alternative path of advertising through which they can keep on reminding the people of their liquor/tobacco brands. They have introduced various other products with the same brand name. The problem occurs when heavy advertising is done so that the customers do not forget their liquor & tobacco brands, for which advertisements are banned. The advertisements for such new products are placed under the category of "Surrogate Advertisements". Surrogate advertising (duplicating the brand image of one product extensively to promote another product of the same brand), has become commonplace. Their only objective is to compensate the losses arising out of the ban on advertisements of one particular product (i.e. liquor). The companies can always claim that the order is being implemented and advertisements of liquor are banned, but the objective of the Government behind imposing the ban is not fulfilled. A new weapon of Fill-in or replacement war. Surrogate advertisement by Companies Players in tobacco industry - Wills lifestyle, Four Square white water rafting, etc Players in liquor industry – Kingfisher beer, airlines and mineral water, Royal Challenge golf accessories and mineral water, Bagpiper soda and cassettes & CDs, Haywards soda,, White Mischief holidays, Smirnoff cassettes & CDs, Teacher's achievement awards, Imperial Blue cassettes & CDs etc.
  • 30. School Of Management And Business Studies. Page 30 Chapter 3 INDUSTRY ANALYSIS THE ADVERTISING INDUSTRY & COMPANY PROFILE 2.1 ADVERTISING Introduction
  • 31. School Of Management And Business Studies. Page 31 Advertising is a non-personal form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These brands are usually paid for or identified through sponsors and viewed via various media. Advertising can also serve to communicate an idea to a mass amount of people in an attempt to convince them to take a certain action, such as encouraging 'environmentally friendly' behaviours, and even unhealthy behaviours through food consumption, video game and television viewing promotion, and a "lazy man" routine through a loss of exercise . Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Mass media can be defined as any media meant to reach a mass amount of people. Several types of mass media are television, internet, radio, news programs, and published pictures and articles. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages. Advertising may be placed by an advertising agency on behalf of a company or other organization. Non-commercial advertisers that spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Non profit organizations may rely on free modes of persuasion, such as a public service announcement. In 2007, spending on advertising was estimated at more than $150 billion in the United States and $385 billion worldwide. THE AD INDUSTRY TRANSITION
  • 32. School Of Management And Business Studies. Page 32 Advertising agencies are the link between the product and the market. They cannot be classified as just one service provider. As they provide a bundle of services to make and build a brand. Advertising agencies first began as space selling agencies. They would buy space in bulk, then sell it and live on the commission gained. Slowly they began to give the client more than just one service. Media began to creep in. And slowly the creative personnel too were made the pillars of the organization. Today advertising agencies give the clients a 3600 view of their product. HOW AN AD AGENCY FUNCTIONS? First the brief is provided by the client that is brought into the company by the client servicing personnel. The brief is about what the client needs to communicate to his target audience. Target audience is categorized according to their income, consumption, purchasing power etc. Once the target audience for a particular product is identified the strategy to communicate the product is taken on. The strategies are carefully planned by strategic planners and then communicated to the creative. The creative team then takes on the task on how best to communicate the necessary to the common people. Smart headlines, attractive visuals are then brainstormed among the creative personnel. Finalized ideas are given birth to on paper, which are then presented to the client. Deliberations, presentations follow in the conference room and the final ad to be released is settled upon. Sometimes rework is demanded, sometimes corrections are given until the ad is finalized. The estimate for media releases as requested is placed before the client. In-depth planning is undertaken for colossal product releases. The media too works on the estimate for days to finally sum up on the release plan that will give the product and the client maximum reach. On release of the ads, feedback from the client’s end is anxiously awaited by the agency. A good response to the ad only elevates the relationship between the client and the agency and stands as a motivator for some more good work. Different types of Advertising
  • 33. School Of Management And Business Studies. Page 33 Television Advertising The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3 million (as of 2009). The majority of television commercials feature’s song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. This technique is especially used in televised sporting events . Virtual product placement is also possible. Infomercial An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" is a portmanteau of the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals. Radio advertising Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcasted as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the obvious limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage.
  • 34. School Of Management And Business Studies. Page 34 Press advertising Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service. Online advertising Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. Billboard advertising Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums. Mobile billboard advertising Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements.
  • 35. School Of Management And Business Studies. Page 35 In-store advertising In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays. Covert advertising Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Celebrities This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favorite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental to the public relations of a brand. For example, following his performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate with him after he was photographed smoking marijuana. Overview of Advertising Industry in India
  • 36. School Of Management And Business Studies. Page 36 The structure of the advertising industry in Asia Pacific has been affected by globalisation and international alignments creating a smaller number of very large agencies and the growth of independent major media buying houses. Very sophisticated software optimisation and planning systems are now integral to the industry, enabling agencies to offer a unique positioning in the marketplace to attract new business. American companies are discovering the appeal of marketing their products in India. With a population of approximately one billion, and a middle class that's larger than the total population of the United States, there's definitely money to be made. Local retailers in apparel, food, watches and jewellery have all increased their average ad spending by almost 50% in the past two years. Coupled with many other local players big retailing brands are spending to the tune of Rs 12,000 crores annually on advertising and promotional activities. This figure, according to industry estimates, was less than Rs 400 crores about 3 years ago. This means the growth has been a whopping 40%. The local firms are using all the available advertising tools from electronic to print, outdoor advertising and even models. The advertising and promotional spending by local brands is substantial during the festival season and almost 70% of the spending is done between September to January. The advertising industry in India is growing at an average rate of 10-12% per annum. Over 80% of the business is from Mumbai and Delhi followed by Bangalore and Chennai. Online Ad Spending in India Online advertising spending is holding its own and will continue to grow steadily over the next several years. Marketers are responding to the economic challenges with new techniques and strategies, along with research data to prove their effectiveness. According to statistics, online ad spending has reached $23 billion. Nonetheless, nearly three-quarters of web advertising space goes unsold and more than 99.7 per cent of banner ads are not clicked on. Scope of Advertising Industry in India
  • 37. School Of Management And Business Studies. Page 37 The advertising industry in India has several competitive advantages: • India has a rich pool of strategic planning, creative and media services personnel: Indeed, Indian advertising industry has been exporting senior-level talent to many countries, particularly to the Gulf, South-East Asia, China, the UK and the US. Indian talent is recognised and respected in global agency networks. • No other country has access to so many trained management graduates who can provide strategic inputs for brand and media planning. • Indians are multicultural: we learn at least two languages and that gives us a head start in understanding cultural diversity. • Most of the top 20 agencies in India have a global partner or owner, which should provide an immediate link to global markets. • Our production standards in TV and print have improved: With a vibrant animation software industry, we have access to this area of TV production. • India's advanced IT capabilities can be used to develop Web-based communication packages for global clients. The Indian advertising industry is a very upcoming and promising sector. However there is severe competition and survival is for the fittest and the best. In this sector what matters the most is knowledge and experience of the work and the industry and its functioning. The more the knowledge you can provide the better the productivity you give. The various departments in an ad agency The number of departments varies from agency to agency depending on their size. However the main divisions are as follows: Account Servicing: Client servicing is a crucial part of the advertising industry. The main aim of this department is to generate customers and business for the company and also develop the existing customer relationships. This department also covers the responsibilities of the public relationship officers. Advertising can be done through television media, print media and the internet. Similarly, client
  • 38. School Of Management And Business Studies. Page 38 servicing for the customers is mostly done by using the internet as the medium. A lot of advertisements are campaigned by using internet and email promotions. A client servicing agent would also need to design new schemes to attract many companies to take their offer. Pricing and design models of the offer are also covered by this department. To be able to design good ad campaigns, the agent should also be capable of doing appropriate online research. This job also needs the person to be creative and progressive. The person should be abreast of the industry's changing facets. Account Planning: Account planners combine research and strategic thinking. If the account manager is closest to the client, the account planner is closest to the consumer. The account planner is the person on an advertising team who is most likely to have spent time with consumers using the product, or in focus groups asking them about how they think about the product. And in an era in which the brand is sometimes at least as important as a specific product (for instance, Nike as a brand has a place in the culture that far exceeds the particular performance characteristics of their shoes), the account planner is responsible for understanding the place of the brand in the consumer imagination. They are different than a simple research function in that they stay engaged in the campaign process throughout. Rather than offering research insights to others at a single point in time, they use research to continue to provide insights within the campaign process. Creative Department: The people who create the actual ads form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-by-project basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience. Although copywriters have the word "write" in their job title, and art directors have the word "art", one does not necessarily write the words and the other draw the pictures; they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). Creative departments frequently work with outside design or production studios to develop and implement their ideas. Creative departments may employ production artists as entry-
  • 39. School Of Management And Business Studies. Page 39 level positions, as well as for operations and maintenance. The creative process forms the most crucial part of the advertising process. As the project was part of the client servicing team at O & M, a small brief on what client servicing is all about, how it functions, the various key positions and the importance of the Client servicing team in an Ad company is mentioned below. THE CLIENT SERVICING TEAM The Client Servicing department is the link between the client and the agency. It is an important part of any advertising firm like what the heart is to the body. This department is responsible for meeting prospective clients and getting business for the company. It involves a study of the client, the product and the market; an analysis of consumer behavior and marketing; knowledge of all available media and their cost effectiveness, and a strategic plan to be presented to the client. Those in client servicing must therefore interact with clients, gather information, oversee research where necessary, gauge consumer attitudes and based on this, work along with the various departments of the agency to formulate the most appropriate and effective advertising strategy within the specified budget. To be an effective client-servicing person, the candidate has to have a thorough knowledge of the client's business and also know his weak points so that, through advertising and communications, the gap can be minimized. An accounts executive who works in the client servicing department takes care of all the monitory dealings. He should know the most effective way to advertise client’s product or service i.e. the media and their cost effectiveness. Account executives should also have an idea about market research and target audiences. Client servicing is a crucial part of the advertising industry. The main aim of this department is to generate customers and business for the company and also develop the existing customer relationships. This department also covers the responsibilities of the public relationship officers. Advertising can be done through television media, print media and the internet. Similarly, client
  • 40. School Of Management And Business Studies. Page 40 servicing for the customers is mostly done by using the internet as the medium. A lot of advertisements are campaigned by using internet and email promotions. A client servicing agent would also need to design new schemes to attract many companies to take their offer. Pricing and design models of the offer are also covered by this department. To be able to design good ad campaigns, the agent should also be capable of doing appropriate online research. This job also needs the person to be creative and progressive. The person should be abreast of the industry's changing facets. Advertising Client Servicing Education The main role of client servicing agent is selling. He or she would need to sell the products and packages of the company. For this, a degree in Marketing or an MBA is required. These are the basic qualifications. However, an added knowledge of Computers, Microsoft Office tools and other qualifications in multimedia design is also crucial for the job functionalities. The MBA degree is a must because the person performing this role needs to have the industry knowledge and also technical knowledge of the market dynamics in order to be able to design and modulate good packages for the company. An additional education in Public Relation Skills could also very helpful to perform the job role. A person opting for this role could choose to do additional advertising courses after completing their MBA to take up a job in the client servicing industry. Advertising Client Servicing Skills The key skills required to perform this job role are mainly used in business development and client servicing. The business development aspect of the job would need the person to talk to new customers and prospect new business for the company. This would require the person to have excellent verbal communication skills, as well as a convincing ability and marketing tactics to be good at the job. The job prospects are high in the client servicing industry and a person can hope to go to higher levels using their verbal skills.
  • 41. School Of Management And Business Studies. Page 41 A person doing this job should have a dynamic personality. The client servicing part of the job would also require all of the above mentioned qualities in a person, and simultaneously the person should also have problem solving abilities. This role mainly involves keeping good relations with existing customers and making them continue with the business and also prospect for more business. The majority of relationship management is done by the personnel of this department. Advertising Client Servicing Role The job roles in this department are Account servicing manager and executives, Account managers, and marketing executives. An account would be company specific. Big advertising companies treat each individual company as an account for example like a Pepsi Account, or a Coca Cola account. An account manager would be a person who is handling all the needs of that specific company and also improving the business aspects simultaneously. Advertising Client Servicing Benefits The benefits of this job role are that the person working in client servicing can improve their business contacts and also earn a good reputation among the fellow business community. These people are the first contact and are the main relationship managers, so they can have many contacts in the industry which will help them in the future.
  • 42. School Of Management And Business Studies. Page 42 Chapter 4 THE COMPANY PROFILE
  • 43. School Of Management And Business Studies. Page 43 OGILVY AND MATHER INDIA LTD. Ogilvy & Mather is an international advertising, marketing and public relations agency based in Manhattan and owned by the WPP Group. The company operates 497 offices in 125 countries with approximately 16,000 employees. History Ogilvy & Mather was founded in 1948 by David Ogilvy, as "Hewitt, Ogilvy, Benson, & Mather" in Manhattan. The company became a leading worldwide agency by the 1960s. Central to its growth was its strategy of building brands such as American Express, BP, Ford, Barbie, Maxwell House, IBM, Kodak, Nestlé, and Unilever brands Pond's and Dove. Ogilvy & Mather was built on Ogilvy's principles, in particular, that the function of advertising is to sell and that successful advertising for any product is based on information about its consumer. His entry into the company of giants started with several iconic campaigns: "The man in the Hathaway shirt" with his aristocratic eye patch; "The man from Schweppes is here" introduced Commander Whitehead, the elegant, bearded Brit, bringing Schweppes (and"Schweppervesence") to the U.S.; "At 60 miles an hour the loudest noise in this new Rolls- Royce comes from the electric clock"; and "Pablo Casals is coming home – to Puerto Rico", a campaign that Ogilvy said helped change the image of a country and was his proudest achievement. One of his greatest successes was "Only Dove is one-quarter moisturizing cream". This campaign helped Dove become the top selling soap in the U.S. In 1989 The Ogilvy Group was purchased by WPP Group.
  • 44. School Of Management And Business Studies. Page 44 Clients The major clients of O&M are:- Adidas American Express Amway British Gas BP Citizens Financial Group Cisco Coca-Cola Company DHL DuPont Gap Gillette GlaxoSmithKline IBM Kodak Kraft Lenovo Mattel MetLife Motorola Nestle NexCen Brands SAP Siemens TABASCO Tobacco Institute Unilever (Parent Company) Vodafone OGILVY AND MATHER INDIA LTD: AT A GLANCE • A subsidiary of WPP Group. Global revenues US$ 4.9 billion • One of India’s leading advertising agencies, 800 employees, over 300 domestic and MNC clients. O&M’s International’s 5th largest operation in terms of profit. • Ranked India’s number one agency by Brand Equity survey on leadership, creative ability, investment in employees, client servicing, most influential people and hottest creative directors. • Factors for success: Quality human resources, first mover advantage in introducing global practices • For O&M, India is: a global sourcing hub for creative and non-creative services. Have back office operations in Bangalore • Future plans India: Increase operations for the global clientele. Establish development centers for database marketing, B2B communications and creative for international clients
  • 45. School Of Management And Business Studies. Page 45 HOW IT WORKS AT THE HUB?
  • 46. School Of Management And Business Studies. Page 46 Chapter 5 RESEARCH METHODOLOGY
  • 47. School Of Management And Business Studies. Page 47 4. RESEARCH METHODOLOGY: On defining the objective of the project, a plan was developed to gather information most efficiently. Decisions were taken on the data sources, sampling plan, research tools. Research is essentially a systematic enquiry seeking facts through objective verifiable methods in order to discover the relationship among them to deduce from them broad principles of laws. 4.1 TYPE OF STUDY: As the characteristics of a certain group the certain variables are to be determined, a descriptive method is chosen for this study. The descriptive research portrays accurately the characteristics of a particular individual, situation or a group. The descriptive research includes surveys and fact enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The major characteristic of this method is the researcher has no control over the variables, he can only report what has happened or what is happening. 4.2 SOURCE OF DATA:- • Primary data: it includes data collected directly from the customers in Bangalore city so as to meet the direct requirements of the investigation at hand. • Secondary data: it includes data from magazines, websites and reference books. 4.3 METHOD: • The research is done through a survey in the form of an interaction with about 14 main questions as points of reference. The interaction is done with the target group at different places in the Bangalore city. 4.4 SAMPLING TECHNIQUE Non –probability sampling was adopted to conduct the survey. Customers were selected on the basis of ease of access. So convenience sampling was carried out for collecting primary data. In this method a desired number of sample unit is selected deliberately or purposely depending
  • 48. School Of Management And Business Studies. Page 48 upon the object of the enquiry, so that only the important items representing the true characteristics of the population are included in the sample. 4.6 SAMPLE SIZE: A sample size of 96 respondents was interviewed through the interactive methodology. The interaction was limited to 5 minutes wherein discussion happened about the choice of brands, perception about surrogate advertisements. Also questions related to various brand preferences and their purchase intention was posed. 4.7 DATA COLLECTION METHOD Data collection has been done through a very useful & popular survey method. The survey was conducted through personal interviews to study the impact of surrogate advertisements on the customers buying behaviour to buy the surrogate products. To understand each individual response, the personal interview method is better than other methods like telephonic interviews, mailing questionnaire etc. Because this method gives the researcher enough flexibility to ask any other question which is relevant for research. 4.8 DATA COLLECTION INSTRUMENT The survey method was used for the research; the personal interviews were conducted with the help of a structured questionnaire. 4.9 STATISTICAL TOOLS USED FOR ANALYSING THE DATA Percentage method Graphical Representation using Figures& Bar diagram CRITERIA TAKEN FOR SAMPLES 1. The sample size of 96 is for representative of the population. 2. Respondents have no bias. 3. Only people know surrogate advertisements are taken as samples.
  • 49. School Of Management And Business Studies. Page 49 Chapter 6 DATA ANALYSIS AND INTERPRETATION
  • 50. School Of Management And Business Studies. Page 50 DATA INTERPRETATION Analysis of data involves a number of closely related operations that are performed with purpose of summarizing the collected data and organizing these in such a manner that they will yield answer to the research questions. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data group. Interpretation is often inextricably interwoven with analysis; it should more properly be conceived as a special aspect of analysis. Interpretation is necessary for the simple reason that the usefulness and utility of research findings lie in proper interpretation. The statistical interpretation shows various responses relating to the variable. The analysis and interpretation of data lead the researcher to the objectives of the study. It is through interpretation that the research can well understand the abstract principle works beneath his findings.
  • 51. School Of Management And Business Studies. Percentage Method 6.1 Most seen Media used by the people for watching the advertisements Valid print media Radio television Internet Mobile Total Source: Market Survey Findings: 50% of the people uses Television, 15.6% for Print media and Internet,13.5% for Mobile and 5.2% on Radio to Refer the media. School Of Management And Business Studies. Data Analysis Most seen Media used by the people for watching the advertisements Frequency Percent Valid Percent Cumulative Percent print media 15 15.6 15.6 15.6 5 5.2 5.2 20.8 television 48 50.0 50.0 70.8 Internet 15 15.6 15.6 86.5 13 13.5 13.5 100.0 96 100.0 100.0 Market Survey 50% of the people uses Television, 15.6% for Print media and Internet,13.5% for Mobile and 5.2% on Radio to Refer the media. print media Radio television Internet Mobile Page 51 Most seen Media used by the people for watching the advertisements Cumulative 50% of the people uses Television, 15.6% for Print media and Internet,13.5% for Mobile and print media Radio television Internet Mobile
  • 52. School Of Management And Business Studies. Inference: The question is to find out the advertising is more reachable than any other media advertising . 6.2 How often people watch the advertisements of alcohol Valid Dont remember Not at all Rare Occasional Regular Total Source: Market Survey 0 5 10 15 20 25 30 35 40 45 50 Dont remember percentage School Of Management And Business Studies. The question is to find out the effective means of media advertising , through which television advertising is more reachable than any other media advertising . people watch the advertisements of alcohol Frequency Percent Valid Percent Cumulative Percent remember 19 19.8 19.8 19.8 7 7.3 7.3 27.1 42 43.8 43.8 70.8 Occasional 15 15.6 15.6 86.5 13 13.5 13.5 100.0 96 100.0 100.0 Market Survey remember Not at all Rare Occasional Regular Attributes Page 52 effective means of media advertising , through which television Cumulative Percent 19.8 27.1 70.8 86.5 100.0 Series1
  • 53. School Of Management And Business Studies. Findings: Out of 96 respondents 43.8 % of people were remembering,7.3% were not at alcohol. Inference: The question aim’s to find out how much the customer watches an advertisement; shows a negative tone such that advertisements has to be more effective. 6.3 Purchase of surrogate Product Valid Never Occasionally Often Regularly Total Source: Market Survey 0 5 10 15 20 25 30 35 40 45 Never Percentage School Of Management And Business Studies. Out of 96 respondents 43.8 % of people were seeing rarely, 19.8% were don’t remembering,7.3% were not at all,15.6% regularly seeing surrogative advertisements of ’s to find out how much the customer watches an advertisement; shows a ertisements has to be more effective. urchase of surrogate Product Frequency Percent Valid Percent Cumulative Percent 10 10.3 10.3 10.3 28 28.9 28.9 39.2 38 39.2 39.2 78.4 21 21.6 21.6 100.0 97 100.0 100.0 Market Survey Never Occasionally Often Regularly Attributes Page 53 seeing rarely, 19.8% were don’t ogative advertisements of ’s to find out how much the customer watches an advertisement; shows a Cumulative Percent 10.3 39.2 78.4 100.0 Series1
  • 54. School Of Management And Business Studies. Findings: From above figure 39.2% people often, 28.9% occasionally, 21.6% regularly , surrogate product after see the advertisement on media. Inference: Figure shows surrogate products have 6.4 Which Advertisement is remembered most by the people Valid Bacadi Smirnoff Royal Challenge Kingfisher Mcdowells Total Source: Market Survey School Of Management And Business Studies. From above figure 39.2% people often, 28.9% occasionally, 21.6% regularly , surrogate product after see the advertisement on media. surrogate products have sufficient market by surrogate advertisements. Which Advertisement is remembered most by the people Frequency Percent Valid Percent Cumulative Percent 24 25.0 25.0 25.0 10 10.4 10.4 35.4 13 13.5 13.5 49.0 40 41.7 41.7 90.6 9 9.4 9.4 100.0 96 100.0 100.0 Market Survey Bacadi Smirnoff Royal Challenge Kingfisher Mcdowells Page 54 From above figure 39.2% people often, 28.9% occasionally, 21.6% regularly , 10.3% never buy sufficient market by surrogate advertisements. Cumulative Percent 25.0 35.4 49.0 90.6 100.0 Smirnoff Royal Challenge Kingfisher Mcdowells
  • 55. School Of Management And Business Studies. Findings: Majority of people remember king fisher brand of 41.7 % when compared to Bacardi, 25.0%; Smirnoff, 10.4 %; royal challenge 13.5% and Inference: Among above data’s people remember Bacardi and kingfisher the most , as it is shown continuously through several medias. The advertisements shown will depends on the geographical area they belongs to. 6.5 What made the people Valid Celebrities Creativity Voice Wordings Logo Familiarity Total Source: Market Survey 0 10 20 30 40 Celebrities Percentage School Of Management And Business Studies. Majority of people remember king fisher brand of 41.7 % when compared to Bacardi, 25.0%; Smirnoff, 10.4 %; royal challenge 13.5% and Mc dowells9.4 %. above data’s people remember Bacardi and kingfisher the most , as it is shown continuously through several medias. The advertisements shown will depends on the geographical area they belongs to. What made the people to remember the Advertisement Frequency Percent Valid Percent Cumulative Percent 36 37.5 37.5 37.5 30 31.3 31.3 68.8 7 7.3 7.3 76.0 14 14.6 14.6 90.6 Logo Familiarity 9 9.4 9.4 100.0 96 100.0 100.0 Market Survey Creativity Voice Wordings Logo Familiarity Attributes Page 55 Majority of people remember king fisher brand of 41.7 % when compared to Bacardi, 25.0%; above data’s people remember Bacardi and kingfisher the most , as it is shown continuously through several medias. The advertisements shown will depends on the Cumulative Percent 37.5 68.8 76.0 90.6 100.0 Logo Familiarity Series1
  • 56. School Of Management And Business Studies. Findings: Out of the above people remember because of influence of celebrity 37.5%, creativity voice 7.3 %, wordings 14.5% and logo 9.4%. Inference: People remember advertisements easily recalled. 6.6 Opinion of people about the requirement of Surrogative Advertisement Frequency Valid Yes 41 No 55 Total 96 Source: Market Survey Findings: 57.3% of people doesn’t support the requirement of surrogate advertisement , while 42.7% support surrogate advertisement. 0 10 20 30 40 50 60 70 Percentage School Of Management And Business Studies. Out of the above people remember because of influence of celebrity 37.5%, creativity voice 7.3 %, wordings 14.5% and logo 9.4%. People remember advertisements due to celebrities which are more reachable and found to be Opinion of people about the requirement of Surrogative Advertisement Frequency Percent Valid Percent Cumulative Percent 41 42.7 42.7 42.7 55 57.3 57.3 100.0 96 100.0 100.0 Market Survey 57.3% of people doesn’t support the requirement of surrogate advertisement , while 42.7% support surrogate advertisement. Yes No Attributes Series1 Page 56 Out of the above people remember because of influence of celebrity 37.5%, creativity 31.3%, more reachable and found to be Opinion of people about the requirement of Surrogative Advertisement Cumulative Percent 57.3% of people doesn’t support the requirement of surrogate advertisement , while 42.7% Series1
  • 57. School Of Management And Business Studies. Inference: Companies need to find out more enticing 6.7 People evaluation of Surrogative Advertisement Valid Entertaining Boring Informative Misguiding Disturbing Total Source: Market Survey Findings: 39.6% of people believe surrogate advertisement as misguiding, 25.0% as entertainment, as disturbing, 12.5 % as informative and 8.5 % as boring. School Of Management And Business Studies. Companies need to find out more enticing surrogate advertisements to reach the People evaluation of Surrogative Advertisement Frequency Percent Valid Percent Entertaining 24 25.0 25.0 8 8.3 8.3 Informative 12 12.5 12.5 Misguiding 38 39.6 39.6 14 14.6 14.6 96 100.0 100.0 Market Survey 39.6% of people believe surrogate advertisement as misguiding, 25.0% as entertainment, disturbing, 12.5 % as informative and 8.5 % as boring. Entertaining Boring Informative Misguiding Disturbing Page 57 surrogate advertisements to reach the customers. Cumulative Percent 25.0 33.3 45.8 85.4 100.0 39.6% of people believe surrogate advertisement as misguiding, 25.0% as entertainment, 14.6% Entertaining Informative Misguiding Disturbing
  • 58. School Of Management And Business Studies. Inference: More areas to be explored to make surrogate advertisements since it creates negative ideas in public’s mind, as majority of people’s doesn’t like to entertain these ad’s. 6.8 Opinion of people about the Su Valid Strongly Agree Agree Neither Agree or Disagree Disagree Strongly Disagree Total Source: Market Survey 0 5 10 15 20 25 30 35 40 45 50 Strongly Agree Percentage School Of Management And Business Studies. areas to be explored to make surrogate advertisements since it creates negative ideas in , as majority of people’s doesn’t like to entertain these ad’s. Opinion of people about the Surrogative Advertisement which are Frequency Percent Valid Percent Strongly Agree 10 10.4 10.4 20 20.8 20.8 Neither Agree or Disagree 45 46.9 46.9 17 17.7 17.7 Strongly Disagree 4 4.2 4.2 96 100.0 100.0 Market Survey Agree Neither Agree or Disagree Disagree Strongly Disagree Attributes Page 58 areas to be explored to make surrogate advertisements since it creates negative ideas in rrogative Advertisement which are banned in india Cumulative Percent 10.4 31.3 78.1 95.8 100.0 Strongly Disagree Series1
  • 59. School Of Management And Business Studies. Findings: About 46.9 % doesn’t agree or disagree, 20.8% totally agree, 10.4% strongly agree, 17.7% disagree and 4.2% people strongly disagree about the knowledge of surrogate ad’s banned in India. Inference: As this question is to identify public’s opinion, data shows they don’t have much idea about that advertisement which has banned in India. 6.9 Impact of Surrogative Advertisement on sales of Surrogate Products Valid Definitely will not affect Probably will not affect Undecided Probably will affect Definitely will affect Total Source: Market Survey 0 5 10 15 20 25 30 35 Definitely will not affect School Of Management And Business Studies. About 46.9 % doesn’t agree or disagree, 20.8% totally agree, 10.4% strongly agree, 17.7% disagree and 4.2% people strongly disagree about the knowledge of surrogate ad’s banned in to identify public’s opinion, data shows they don’t have much idea about that advertisement which has banned in India. Impact of Surrogative Advertisement on sales of Surrogate Products Frequency Percent Valid Percent Definitely will not affect 8 8.3 8.3 Probably will not affect 12 12.5 12.5 20 20.8 20.8 Probably will affect 24 25.0 25.0 Definitely will affect 32 33.3 33.3 96 100.0 100.0 Market Survey Probably will not affect Undecided Probably will affect Definitely will affect Page 59 About 46.9 % doesn’t agree or disagree, 20.8% totally agree, 10.4% strongly agree, 17.7% disagree and 4.2% people strongly disagree about the knowledge of surrogate ad’s banned in to identify public’s opinion, data shows they don’t have much idea about Impact of Surrogative Advertisement on sales of Surrogate Products Cumulative Percent 8.3 20.8 41.7 66.7 100.0 Series1
  • 60. School Of Management And Business Studies. Page 60 Findings: 33.3% definitely affect, 25.0% probably affect, 20.8% not decided, 12.5%probably not affect and 8.3% definitely will not affect, opines surrogate ad’s will affect sales of surrogate products. Inference: It gives clear idea that surrogate advertisements create strong impact on surrogate products. 6.10 The television ad for “Bacardi” creates strong misleads with respect to surrogative advertisements in India Frequency Percent Valid Percent Cumulative Percent Valid Defenitely will not Think 22 22.9 22.9 22.9 Probably will not Think 14 14.6 14.6 37.5 Neutral 43 44.8 44.8 82.3 Probably will Think 11 11.5 11.5 93.8 Defenitely will Think 6 6.3 6.3 100.0 Total 96 100.0 100.0 Source: Market Survey
  • 61. School Of Management And Business Studies. Findings: About the ad of Bacardi 44.8% of people had mixed opinion, while 22.9% about definitely will not think,14.6% probably will not think, 11.5% probably misleads will happen with respect to surrogate ad’s. Inference: Public generally doesn’t support liquor advertisements, that some ethical concepts prevails in India. 0 5 10 15 20 25 30 35 40 45 50 Defenitely will not Think Probably will not Think Percentage School Of Management And Business Studies. About the ad of Bacardi 44.8% of people had mixed opinion, while 22.9% about definitely will not think,14.6% probably will not think, 11.5% probably think 6.3 % definitely opine misleads will happen with respect to surrogate ad’s. Public generally doesn’t support liquor advertisements, that some ethical concepts prevails in Probably will not Think Neutral Probably will Think Defenitely will Think Attributes Page 61 About the ad of Bacardi 44.8% of people had mixed opinion, while 22.9% about definitely will think 6.3 % definitely opined that Public generally doesn’t support liquor advertisements, that some ethical concepts prevails in Defenitely will Think Series1
  • 62. School Of Management And Business Studies. 6.11 Product Recalling of Surrogate Ads Valid Dont Remember Not at all Occasionally Most Probably Definitely Total Source: Market Survey Findings: 39.6% most probably recall 26 % definitely, 26.0% occasionally, 6.3% not at all and remember the original product after see the surrogate ad’s. 0 5 10 15 20 25 30 35 40 45 Dont Remember Percentage School Of Management And Business Studies. roduct Recalling of Surrogate Ads Frequency Percent Valid Percent Cumulative Percent Dont Remember 2 2.1 2.1 2.1 6 6.3 6.3 8.3 25 26.0 26.0 34.4 Most Probably 38 39.6 39.6 74.0 25 26.0 26.0 100.0 96 100.0 100.0 Market Survey 39.6% most probably recall 26 % definitely, 26.0% occasionally, 6.3% not at all and remember the original product after see the surrogate ad’s. Not at all Occasionally Most Probably Definitely Attributes Page 62 Cumulative Percent 2.1 8.3 34.4 74.0 100.0 39.6% most probably recall 26 % definitely, 26.0% occasionally, 6.3% not at all and 2 % don’t Definitely Series1
  • 63. School Of Management And Business Studies. Inference: People remember the ad’s well and their Brand name in surrogate ad’s are effective in customer’s mind. 6.12 Surrogative Advertisements induce to try the original Valid Never Occasionally Sometimes Often Regular Total Source: Market Survey 0 5 10 15 20 25 30 35 40 Never Percentage School Of Management And Business Studies. People remember the ad’s well and their Brand name in surrogate ad’s are effective in Surrogative Advertisements induce to try the original Frequency Percent Valid Percent Cumulative Percent 8 8.3 8.3 8.3 4 4.2 4.2 12.5 28 29.2 29.2 41.7 33 34.4 34.4 76.0 23 24.0 24.0 100.0 96 100.0 100.0 Market Survey Occasionally Sometimes Often Regular Attributes Page 63 People remember the ad’s well and their Brand name in surrogate ad’s are effective in Cumulative Percent 8.3 12.5 41.7 76.0 100.0 Regular Series1
  • 64. School Of Management And Business Studies. Page 64 Findings: 34.4% oftenly, 29.2% sometimes, 24.0% regularly, 4.2% occasionally, 8.3% never induced by surrogate ad’s to try the original product. Inference: The analysis is to find out whether the surrogate ad’s makes the customer to try the product; yes, it makes considerable amount of time for the customer to buy the product. So surrogate advertisements are found to be effective in nature. 6.13 Liquor Advertisement is ethical compared to other products in India Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 11 11.5 11.5 11.5 Disagree 6 6.3 6.3 17.7 Neither Agree or Disagree 45 46.9 46.9 64.6 Agree 22 22.9 22.9 87.5 Strongly Agree 12 12.5 12.5 100.0 Total 96 100.0 100.0 Source: Market Survey
  • 65. School Of Management And Business Studies. Findings: 46.9% has mixed opinion, 22.9% agree, 12.5% strongly agree, 6.3% disagree and 11.5% strongly disagree about the ethical behaviour of liquor ad’s when compared to other products in India Inference: People opine that these advertisements are needed and liquor advertisements are acce and ethical when compared to other products in India. 0 5 10 15 20 25 30 35 40 45 50 Strongly Disagree Percentage School Of Management And Business Studies. 22.9% agree, 12.5% strongly agree, 6.3% disagree and 11.5% strongly disagree about the ethical behaviour of liquor ad’s when compared to other products in India People opine that these advertisements are needed and liquor advertisements are acce and ethical when compared to other products in India. Disagree Neither Agree or Disagree Agree Strongly Agree Attributes Page 65 22.9% agree, 12.5% strongly agree, 6.3% disagree and 11.5% strongly disagree about the ethical behaviour of liquor ad’s when compared to other products in India People opine that these advertisements are needed and liquor advertisements are accepted Strongly Series1
  • 66. School Of Management And Business Studies. Page 66 Chapter 7 FINDINGS, CONCLUSION AND SUGGESTIONS
  • 67. School Of Management And Business Studies. Page 67 6.1 FINDINGS • Out of different Medias for advertisement, it is found that television advertising is more effective and reachable to the customers. • The advertisements of King Fisher and Bacardi are remembered more , since repeated ads are able to create brand image on such products • Customers identifies the surrogate products in the market, with their existing brand names of original product. • It’s the effective use of celebrities and creativity , the surrogate products makes their product success. • People remind only continuously seen surrogate advertisements , it means more areas of advertisements to be explored . • Surrogate advertisements induces the customer to try the product, which means it hit the mind of customer directly. • Companies had to concentrate since customer is looking for ethical aspects also regarding the surrogate advertisements
  • 68. School Of Management And Business Studies. Page 68 6.3 CONCLUSION This study had conducted to know the knowledge and perception of customers about surrogate advertisements in the Bangalore city and analyses the factors for knowing the surrogate advertisement have any impact on the consumers buying behaviour for buy the surrogate products. It got understood that the brand is able to make the customers to purchase the product. During the study a sample of 96 respondents were analysed that customer’s purchasing style has any relation with the surrogate advertisements shown through medias and to know what interest elements did the customer find in them in order to use of surrogate products. The knowledge of customer, their preferences and knowledge are analysed. The data’s were filled by questionnaire method. It’s mainly though the brand name of established brands these products are made to meet the company requirements, ie; to make maximum mileage from the existing brands. It’s through the existing brands of companies were that existing in the market. Moreover, the knowledge and awareness level about surrogate advertisements were also low, but when explained them, everybody are known and thus selected for sampling purpose. The main reasons given by the respondents for not knowing about most of surrogate advertisements are they are not exposed to see that many times So, with this research it was concluded with an underline that effective surrogate advertisements induce the customer to purchase surrogate products.
  • 69. School Of Management And Business Studies. Page 69 6.2 SUGGESTIONS • As the people see surrogate advertisements , through different medias , but they seek more innovative way of such advertisements. • The effective surrogate advertisements will create considerable change in companies sales, So there is huge opportunity for liquor companies to develop advertisement strategies and make more sales. • Surrogate products creating some negative impacts ethically; if companies able to convert that negative impacts to positive , they can take the mileage of surrogate advertisements. • Companies need to introduce various advertisement strategies depending on different geographical areas . • Company have to give prior importance to customer’s preference while doing liquor surrogate advertisements. • Companies are generally doing advertising in soda, mineral water, music cd’s etc.. they can go for more diversified advertisements like sponsoring Indian Premier League etc.....
  • 70. School Of Management And Business Studies. Page 70 BIBLIOGRAPHY
  • 71. School Of Management And Business Studies. Page 71 BOOKS REFERRED • Philip Kotler ,Kevin Lane Keller, Marketing Management,(12th edition, New Delhi, Pearson Education,2006) • Malhotra.N.K, Marketing Research: An Applied Orientation, (4th edition, New Delhi, Pearson Education,2006) • Advertising management concept and cases by Mahedra Mohan • Ogilvy on Advertising by David Ogilvy WEBSITE • www.ogilvy.com • www.ogilvyindia.com • www.scribd.com • http://en.wikipedia.org/wiki • www.marketing research.com • www.researchandmarkets.com
  • 72. School Of Management And Business Studies. Page 72 ANNEXURES
  • 73. School Of Management And Business Studies. Page 73 QUESTIONAIRE FOR IMPACT OF SURROGATIVE ADVERTISEMENT ON SURROGATE PRODUCTS (THROUGH ALCOHOL AS EXAMPLE) NAME… QUALIFICATION… Please supply the following details about yourself: Age: Sex: male female Geographic Location : a) Rural b) Urban 1) From which media you used to watch the most in advertisements? (Tick one) a)Print media b) Radio c)Television d)Internet e)Mobile 2) Do you see any Advertisements of alcohol? a)Regular b)Occasional c)Rare d)Not at all e) Don’t remember 3) Do you know about surrogate advertisements? a) Yes b) No 4) Do you buy the surrogate products like soda; water etc. after seeing their Ads on the media? a)Never b)Occasionally c)Often d)Regularly 5) From the following alcoholic brand’s surrogate advertisement, u sees the most?(Tick one ) a)Bacardi b)Smirnoff c) Royal challenge d) King fisher e)Mc dowells 6) What made you to remember that product? (Tick one only) a) Celebrities b) creativity c) voice d) wordings e) Logo 7) Do you think that advertisement of such product is required? a) Yes b) No The image cannot be displayed. Your computer may not The image cannot be displayed. Your computer may not The image cannot be displayed. Your computer may not The image cannot be displayed. Your computer may not
  • 74. School Of Management And Business Studies. Page 74 8) How will you evaluate such advertisements? (Tick one only) a) Entertaining b) Boring c) Informative d) Misguiding e) Disturbing 9) What is your opinion about such advertisement of product which has banned in India? a) Strongly Disagree b) Disagree c) Neither Agree or disagree d)Agree e)Strongly agree 10) Do you think that the Advertisements on the media will have any Impact on the sales of surrogate products? a)Definitely will not affect b)Probably will not affect c)Undecided d) Probably will affect e) Definitely will affect 11) The television ad for “Bacardi” creates strong misleads with respect to surrogate advertisements in India. Do you think so? a) Definitely will not think b) Probably will not think c) Neutral d) probably will think e) definitely will think 12) Do you recall the original product while looking at the surrogate ads? a)Definitely b)Most probably c)Occasionally d)Not at all e) Don’t remember 13) Does the ad induce you to try the original product? a)Never b)Occasionally c)Sometimes d)Often e)Regularly 14) What you feel, whether liquor advertising and its marketing when compared to any products is ethical in India …? a) Strongly Disagree b) Disagree c) Neither Agree or disagree d) Agree e) Strongly agree