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  1. 1. P a g e | 1 INTRODUCTION Advertising aims at selling something, a product, a service or an idea. The real aim of advertising is effective communication between marketer and consumers. Advertising is an art of persuading others to purchase what marketer has. The effectiveness of advertising depends upon to what extent the advertising message is received and accepted by target audience. The effectiveness of advertising message can be determined through AIDA model of advertising. According to AIDA model an advertising to be effective has to: Attract Attention (A) – Secure Interest (I) – Build Desire for the product (D) – and Obtain Action (A) i.e. in the form of sale. Advertising is multidimensional. It is a form of mass communication, a powerful marketing tool, a component of the economic system, a means of financing the mass media, a social institution, an art form, an instrument of business management, a field of employment and a profession. In India advertising industry has seen a phenomenal growth. In India, the advertising business is growing at the rate of 30% to 35%. It has been accepted that the size of the advertising industry is the true indicator of the level of the living standard in a country and its economy. Advertising ranks fifth among the big industries of the world. Today, we are exposed to large number of commercial messages than at any time in the past. Newspapers and magazines are full of advertisements.
  2. 2. P a g e | 2 What is advertising? When a marketer or a firm has developed a product to satisfy market demand after thoroughly analyzing the market, there is a need for establishing contact with the target market eventually sell the product. Moreover, this has to be a mass contact, which means that the marketer is interested in reaching a large number of people so that his product may receive optimum exposure. Naturally, the best way to reach this mass market is through mass communication and advertising is one of the means of such communication along with such other means as publicly, sales promotion and public relations. As a means of forceful communication, advertising promotes the sale of goods, services, images and ideas through information and persuasion. But advertising itself cannot sell the product. It can‟t sell the products of poor quality, products which are too costly, or items which do not come up to the expectations of the consuming public. Advertising only helps in selling. Definition of Advertising The simplest definition of an advertisement is that it is a „public announcement’. It is an announcement made to the public of a product, service or idea through a medium to which the public has access. The medium may be print (such as newspapers, posters, banners and hoardings), electronic (radio, video, cable, phone, internet) or any other. An advertisement is usually paid for by an advertiser at rates fixed or negotiated with the media. The American Marketing Association, Chicago, defines advertising as “Any paid form of non- personal presentation of ideas, goods and services by an identified sponsor”. Advertising as a tool of Communication: Advertising is as old as man is. There is a semblance of advertising in the many activities of a human being, especially those activities, which influence others, either favorably or otherwise. A baby crying for its feed, a girl wooing the prince charming, a doting wife desirous for having a new sari are aspects of advertising. They want to communicate, to persuade, to influence and to lead to some action. All this has been a part of human life almost from the time it took shape. The persuasive form of communication that is advertising pre-existed ion human life. Advertising aims at drawing attention to a product .It seeks to create awareness about the
  3. 3. P a g e | 3 existence of advertised product. It passes on information about the product in such a way that interest is created in the minds of the prospective consumer about the product. Then there is a growing desire to possess a product. There are convincing arguments in favor of the product. All this leads us to a buying inclination. The Persuasive Nature of Advertising: Advertising, whether we like it or not, is an integral part of the society and it is not a question of whether it persuades, but to what extent. All our lives, some sort of advertisement virtually constantly surrounds us. From the morning newspaper to the bus ride, from watching TV to surfing the net, advertising is with us. It is hence very important that we understand its impact on society and the individual. Many years ago advertising began to center on the user instead of the product. Advertisements began explaining the benefits that the consumer will achieve through the use of the product, rather than giving information about the product. New visual media such as TV were used much more effectively to persuade than the old, non-visual media such as print. Advertising persuades by the promise of fulfillment of our desires because rational argument will not sell enough products that are produced. Advertising creates desires through changing social values and attitudes, creating life styles to suit those new values and by supporting the culture of consumption. The impact of advertisement on popular culture is immense. Advertisements affect what we eat, wear how we act and talk. Advertising can be seen as a communication channel for cultural change. For the ads to make sense, it is important that the ads draw upon the common experiences, perception and attitudes of the audiences. Every ad substance taken from many cultural references, but returns an image back to society, thereby changing it. For example, an ad for condoms takes the common belief that AIDS needs to be stopped, but returns to society the image that condoms are the only way to stop AIDS, thereby changing society. It is claimed that some ads offer not only a product but also a „lifestyle‟.
  4. 4. P a g e | 4 “Advertisements provide pictures of reality and define the kinds of people we could be and the kinds of lives we could lead”. In a lifestyle ad the person and setting are all stereotypical of a particular social group and the consumption style is shown in terms of an activity a leisure activity. Implicit to the activity is the consumption of the product advertised. A prominent example is the “Just do it” NIKE. There is a very active , sporty, and aggressive lifestyle is proposed by the ad and it is , of course, suggested that NIKE products can help you “do it”. Therefore, the ad‟s immediate objective is to create a desire for this lifestyle, but the ultimate objective is to create a desire for the consumption of the product. It would be underestimating not to consider the influence of such powerful lifestyle image ads on our culture. Advertising is often criticized for promoting a culture of consumption. Advertisers claim that they give people so many choices, but in fact we are encouraged doing only one thing –to buy the products. Critics “argue that advertisements create false needs and encourage the production and consumption of things that are incompatible with the fulfillment of genuine and urgent human needs “. It is increasingly harder to distinguish between ideals and pseudo- ideals as portrayed in ads. Advertisers create demand by changing the desires of individuals. Ads suggest that persons using the products will be changed socially too psychologically by the experience. The object of most advertisements is to persuade us that we will be truly happy after purchasing the product. Consumerism is the effect on society of being bombarded for years by advertisements persuading us in such ways. People do get persuaded to purchase things because they believe it will make them happier, only to discover often that they are still not happy. Then they become targets of an ad promising another solution. One ad, that in the view criticizes the culture of consumption, is a VISA commercial, where prices of different products are listed, but the actual experience that follows is said to be „priceless‟. At the end of the ad there is a statement: “Some things in life money can‟t buy. For everything else there is VISA”. Let‟s turn now to the needs and desires that advertising communicates the product or service will fulfill. Persuasion in today‟s changing world is aimed at promoting or selling ways to meet people‟s physiological and emotional needs.
  5. 5. P a g e | 5 Abraham Maslow, a famous psychologist, identified 5 groups of needs that people emerge one after another, after each need is meet. The order in which they emerge and are fulfilled is as follows: 1. Basic Physiological needs. 2. Safety and security needs. 3. Belongingness and love needs 4. Esteem needs , and 5. Self-actualization needs. The effect of an ad, therefore, largely depends on in which stage we are and what our main needs are. Another method of advertising persuasion can be that no new needs are created but that many existing needs are exploited all at once by the advertisers. For example, some ads exploit the need for emotional security. Ads for security alarms, for example, use the claim that crime levels are rising to persuade us to buy their products and services. The need for ego gratification is very often exploited in advertising. Some ads, therefore, persuade by promising that the product will make the viewer distinguished and special yet another persuasive method is to appeal to the need for a sense of power. Car or truck ads exploit this need by promising us more power, a bigger engine, or better acceleration. So essentially, consumers are manipulated by ads that promise them something special- something that will transform their lives. In order to effectively persuade ads often associate some value or attitude with the product thereby transferring the value or attitude to the product. Advertising uses signs to convey meaning. A basic example to illustrate this would be a NIKE ad starring Michael Jordan. The qualities that he represents, namely greatness and professionalism are transferred to the shoes. But the ad does not say anything about the shoes, we must associate the qualities ourselves and come to the conclusion that the shoes have the same qualities as Michael Jordan has. “Certain values such as love, friendship, pleasure, happiness and sexual attraction are the staple diet of ads and are often confused with or transferred to the possession of things.” Ads therefore, create symbols. The product (signifier) is connected to a value, idea or feeling (signified). The goal of the ads is therefore to persuade us that the products are the means to
  6. 6. P a g e | 6 achieve the value, idea, or feeling. For example, the Ceat commercial on TV, where the tyres are said to be “Born tough!” The significance of a rock (solid, unbreakable) is transferred to the ceat tyres. “Advertising has a particular function in evoking emotions and feeling through promise of pleasure connected to the purchase or possession of a product”. The image created in the ad is another technique to persuade us to buy the product. This image is public impression created with the help of visual techniques. Advertisements increase expectations of reality because they are more vivid and dramatic than reality. We are lead to believe that if we buy the product the image in the ad will become reality. Complex ads use visual and verbal imagery to merge the product with a certain feeling or status. The product is buried in the total image created, and the ads don‟t sell just the product, but the whole image. The Magi Noodles package is a prime example. Nice cutlery, an elegant setting, added vegetables and ingredients all create an image that persuades us to buy the noodles. We therefore, buy not only the product, but also the image that comes with it. Various lines of appeal are used persuading us to consume. The “rational appeal” has somewhat declined in use. The most common appeal is to associate the product to success in career, happy families, and pride. The “social appeal” is also very powerful. Here we are persuaded on the basis of our social needs, Maslow‟s third need – to belong to a social group, to be able to identify ourselves in that group. If such an ad is successful then we were persuaded to buy something in order to identify ourselves socially. By owing the product, the consumer is supposed to appeal to the senses and desires of other people, just like the product was made to do for the consumer. Concluding, we have to be aware that advertising does persuade and that it is very effective at communicating societies needs and desires. Some critics maintain “advertising plays on our fears, insecurities, and anxieties by constantly reminding us that our lives could be better if only we were to buy this or that.” But most people are not uncritical of ads and advertising is obviously not the only influence in their lives. Individuals interpret the ads in terms of their biases and experiences, social and group status and are definitely not passive.
  7. 7. P a g e | 7 MEDIA SELECTION, PLANNING AND SCHEDULING: In advertising terms, media is a channel for communication, such as newspapers, magazines, radio and television. A media is a vehicle for carrying the sales message of an advertiser to the prospects. It is indeed a vehicle by which advertisers convey their message to a large group of prospects and thereby aid in closing the gap between producer at the one end and the consumer at the other end. Once a medium has been well established and has built up a significant readership or audience. It is in a stronger position to attract themselves who are on the look out for such media to reach audiences with their selling messages. Today, every medium, be it a newspaper or magazine, the radio or television, has a department with the responsibility of selling advertising space and time. The media themselves do advertise and promote the sale of their advertising space and time, for this is one of the important activities of the media. Types of Media The media are classified into two categories: Above-the-line-media: Press, TV, outdoors, posters, cinema and radio. The recognized agencies get commission from those media. Below-the-line-media: Those who do not give commission to ad agency. The agency adds a percentage as a handling or profit charge or charges a service fee. The examples are Direct mail, POS, SP, and merchandising, exhibitions and sales literature. The following are the various categories of media available to a media buyer or an advertiser: 1. Print Media (i) Newspapers (a) Daily (b) Weekly (c) Sunday (d) Weekend Supplement (ii) Magazine (a) Consumer Magazines: general interest, special interest magazines like Auto World, Interior India
  8. 8. P a g e | 8 (b) Business Publications: Industrial publications, trade publications, institutional publications etc. (iii) Direct Advertising: Direct Mail 2. Broadcast media (i) Radio: Vividh Bharti, FM (ii) Television: Terrestrial channels like DD and satellite channels like Star, Zee TV. (iii) Narrowcast media: Video and Cable TV, Cinema, Ad Films. 3. Outdoor Media 4. Transit Advertising Media 5. Other Media (a) Specialty Media: T-shirts, buttons, caps, stickers, badges etc. (b) Direct Advertising or Direct Marketing (DM) (c) Internet: Media of the new millennium. MEDIA SELECTION Effective advertising refers to informing the public about the right product at the right time through the right medium. Therefore, the right media selection is the crux of the success of the entire advertising campaign. Decisions involved are: What are those available media that will serve our advertising needs best? What could be the best combination or mix of the media for our total advertising? What would be the best specific schedule fro the release of our ads in each of these media? MEDIA PLANNING Apart from proper medium, the right message, the right timing and the right place of advertising are equally important. Media planning is the general term encompassing decisions involving the time and place of advertising. For the right media planning and selection, the advertiser must know the consumer profile accurately and the market to be reached, i.e. target market. If you direct advertising to people
  9. 9. P a g e | 9 who have neither the inclination nor the money to buy your product, you are wasting your effort which otherwise may be good advertisement effort in itself. MEDIA SHCEDULING The schedule shows the number of advertisements that are to be appearing I each medium, the size of the advertisements, and the date on which they appear. Each advertiser must prepare a specific schedule most suitable for its market and its advertising objectives. What may be good for one may be bad for another. Even for the same advertiser, the best at one stage of the product life cycle may not be suitable at another page. Six types of schedule available are: 1. Steady pulse: It is the easiest. For instance, one ad/week for 52 weeks or one ad/month for 12 months. 2. Seasonal pulse: Products like Vicks Balm, Glycodin, Terp-vasaka Syrup, Pond‟s cream follow this approach. 3. Period pulse: Scheduling follows a regular pattern, e.g. media scheduling of consumer durable, non-durable. 4. Erratic pulse: The ads are spaced irregularly. Perhaps, we want to change the typical purchase cycles. 5. Start-up-pulse: It is concentrated media scheduling. It launches a new product or a new campaign. 6. Promotional pulse: A one-shot affair it suites only a particular promotional theme. Heavy concentration during a period is the characteristics of this scheduling. For instance, financial advertising of company‟s issue.
  10. 10. P a g e | 10 TELEVISION HISTORY OF INDIAN TELEVISION INDUSTRY Television in India has been in existence for three decades. For the first 17 years, it spread haltingly and transmission was mainly in black & white. The thinkers and policies maker of the country, which has just been liberated from countries of colonial rule, frowned upon television, looking on at it as a luxury Indians could do with out. In 1955 a cabinet decision was taken disallowing any foreign investments in print media which has since been followed religiously for nearly 45 years. Sales of TV sets, as reflected by licenses issued to buys were just 676,615 until 1977. Television has come to the forefront only in the past 15 years and more so in the past seven. There have been two ignition points: the first in the eighties when color TV was introduced by state owned broad caster Doordarshan (DD) during the 1982 Asian games. It then proceeded to install transmitters nationwide rapidly for terrestrial broadcasting. In this period no private enterprise was allowed to set up TV stations or to transmit TV signals. The second spark came in the early nineties with the broadcast of satellite TV by foreign programmers like CNN followed by star TV and a little later by domestic channels such as Zee TV and sun TV into Indian homes. Prior to this, Indian viewers had to make with DD‟s chosen fare, which was dull, non-commercial in nature, directed towards only education and socio- economic development Entertainment programmers were few and far between. And when the solitary little soap likes Hum Log (1984) and mythological dramas: Ramayana (1987-88) and Mahabharata (1988-89) were televised, millions of viewers stayed glued to their sets. When urban Indians learnt that it was possible to watch the Gulf War on TV, they rushed out and bought dishes for their homes. From the large metros satellite TV delivered via cable moved into smaller towns, spurring the purchase of TV sets and even the up gradation from B&W to color TVs. DD responded to this satellite TV invasion by launching an entertainment and commercially driven channel and introduced entertainment programming on its terrestrial network. This again fuelled the purchase of sets in the hinterlands where cable TV was not available.
  11. 11. P a g e | 11 The initial success of the channels had a snowball effect: more foreign programmers and Indian entrepreneurs flagged off their own versions. From 2 channels prior to 1991.Indian viewers were exposed to more than 50 channels by 1996. Software producers emerged to cater to the programming boom almost overnight. Some talent came from the film industry, some from advertising and some from journalism. More and more people set up networks until there was a time in 1995-96 when an estimated 60,000 cable operators existed in the country. Some of them had subscriber bases as low as 50 to as high as in the thousands. Most of the networks could relay just 6 to 14 channels as higher channel relaying capacity required heavy investments, which cable operators were loathe to make. American and European cable networks evinced interest, as well as large Indian business groups, who set up sophisticated headedness capable of delivering more than 30 channels. These multi-system operators started buying up local networks to the smaller operators for a fee. This phenomenon led to resistance from smaller cable operators who joined forces and started functioning as MSOs. The net outcome was that the number of cable operators in the country has fallen to 30,000. The government started taxing cable operators in a bid to generate revenue. The rates varied in the 26 states that go from India and ranged from 35% upwards. The authorities moved in to regulate the business and a Cable TV Act was passed in 1995. The apex court in the country, the Supreme Court, passed a judgment that the airwaves are not property of the Indian govt. and any citizen wanting to use them should be allowed to do so. The govt. reacted by making efforts to get some regulation in place by setting up committees to suggest what the broadcasting law of India should be, as the sector was still being governed by laws, which were passed in 19th century India. A broadcasting bill was drawn up in 1997 and introduced in parliament. But it was not passed into an Act. State-owned telecast DD and radio caster All India Radio (AIR) were brought under a holding company called the Prasar Bharti under an act that had been gathering dust for seven years, the Prasar Bharti Act, 1990. The Act served to give autonomy to the broad casters as their management was left to a supervisory board consisting of retired professionals and bureaucrats. A committee headed by senior congress (I) politician Sharad Pawar and consisting of other politicians and industrialist was set up to review the contents of the Broadcasting Bill. It held discussions with industry, politicians, and consumers and a report was even drawn up. But the
  12. 12. P a g e | 12 United front govt. fell and since then the report and the bill have been consigned to dustbin. But before that it issued a ban on the sale of Ku-band dishes and on digital direct- to- home Ku-band broadcasting, which the Rupert Murdoch-owned News TV was threatening to start in India. Sky, the Murdoch DTH venture, has since been wallowing in quicksand and in recent times has even shed a lot of employees. But News Corp has been running a C-band DTH venture in the country, which has around 20,000 subscribers. In 1999, a BJP-led govt. has been threatening to once again allow DTH Kuband broadcasting and it has been talking of dismantling the Prasar Bharti and once again reverting DD‟s and All India Radio‟s control back in the govt. hands. Some things change only to remain the same. TV Versus Other Media: Television as advertising media used to be considered as the best media as compared to radio and print to persuade the customers. There are several reasons for preference of T.V. media as compared to Radio and Print. Firstly, it attracts the attention of the viewer very easily and creates the interest among the viewers in the theme of advertising message and injects the desire in the minds of the public to make actions to purchase the same product. Secondly, TV is also preferred as compared to Radio and Print due to its more coverage, which can be pinpointed to the target audience only. For instance, if a marketer has to make market its product in Punjab only he will advertise his products on Punjabi channels like Alpha Punjabi / Punjab today / DD Punjab etc. This ensures effective utilization of resources and also less wastage in the form of unnecessary coverage to other regions where the product has no market. Thirdly, TV advertising has wider coverage. At present TV services are available to more than 80% of India‟s population. The ad revenue has increased from Rs.1, 504 cr. In 1991 to around Rs.3, 300 corers in 1995. This is due to satellite TV, and the availability of foreign brands. The value of ads in the press has grown up by about Rs.800 cr. However the share of the print medium in total ad revenue has fallen from about 70% to under 60%.
  13. 13. P a g e | 13 TV has been the single biggest factor in opening up a huge rural market for customer products and creating a higher level of aspirations among the huge Indian middle class-estimated at over 150m people. TV’s Effect: TV affects the behavior. Its effects are debatable since most of the studies so far conducted are laboratory studies consisting of experiments, but their findings run contrary field studies. TV considered a prime suspect for violent playground behavior. It is often quoted as evidence of the adverse effect of TV. Some people argue if TV can persuade us to buy products by airing commercials, it can affect us in many other ways too. However, selling products does not necessarily mean changing behavior. David Gauntlet finds no relationship between TV and behavior. This research work is published by institute of communication studies, Leeds. It is entitled “moving experience- understanding television‟s influence and effects.” TV Commercials A TV commercial is the advertising message that is carried in a limited time span of 10sec, 30sec or 60sec. The copy of the commercials includes the audio part the word spoken by the characters and the video parts consisting of the visuals, action, and cameras cues. TV copy also includes music and sound effects. In TV commercials, the advertiser, in effect may be visible on the screen, may chat with the prospects and display the products, including a demonstration of its performance. TV advertising is very nearly face to face personal selling, except that the communication is one-way, and the viewer‟s feedback or reaction cannot be received by the advertiser while he is on air. TV copywriters have to visualize the pictures and movements, and they should, therefore, have an understanding of production process. Though TV is an advertising medium, it is also an entertainment medium. The commercial must have entertainment value, but at the same time must not obscure the sales message that is being conveyed. TV commercials are produced at a great cost. Before Production, one has to decide about the script, the sets and the props. This is pre-shooting phase. It generally takes one to three weeks. This is followed by a shooting phase of four to ten weeks. This is called as production stage.
  14. 14. P a g e | 14 After the commercial is complete it is subjected to post production process consisting of editing, dubbing, special effects and super imposing. TV sells its advertising time in terms of 10sec spots or its multiples or as free commercial time (FCT) along with sponsored programs. The DD gets revenue from the sponsors for using FCT. The sponsors have to bear revenue charges by DD and the cost of the program. The private producers get advertising time, which he sells, to the advertisers to recover his costs-production as well as fees. There are middlemen-time sellers who buy up programs from the producers on a minimum guarantee basis and then sell these to advertisers and agencies, e.g. outfits like prime time, show time and multi-channel. These companies have 2 marketing teams, one for marketing the software to the channel and the other to market the program to the advertiser. The readers will appreciate that TV commercials are aired before the program, at the end of the program during the course of program by taking what is called a commercial break. TV programs are generally serialized and are teleserials producer as independent individuals who evolve a script and get approval of the TV channels to become a producer of that serial. The main task is to arrange some advertisers who are generally reputed organizations in the private or public sector as his sponsor. The sponsor actually finances the production. He makes a pilot prototype, get approval of the channel. He then cans the first few episodes before getting the time slot. Concept advertising of shobha doctor originated the concept of sponsored serials, beginning with Hum Log. MERITS AND DEMERITS OF ADVERTISING First let us consider some special characteristics of commercial TV. Here on national network the advertisers reach the national market .On second channel they reach the regional market. On satellite channels, they reach markets of several countries. TV is a home and family medium. Viewing on TV is effortless. There is a movement so product is close to reality. For e.g. an aircraft acquires a beauty not seen when flying high above in the sky or static as in print ads. The expression of Ankita Jhaveri, the child model in Rasnaad signifies that Rasna is very delicious. Malalvika conveyed what frooti is all about in her rustic outfit. In India also, we get now viewer ship data and ratings of different programmers.
  15. 15. P a g e | 15 SPECIAL MERITS OF TV TV has immense impact: No other medium can ever compete TV as far as effective presentation is concerned. It attracts attention immediately. Computer graphics has made it still more effective. It arouses interest in the product. In print ads, these 2 steps require deliberation. Here it comes spontaneously. TV commercials and sponsored programs have impact even when the viewer is temporarily not before the set. 1. Excellent quality of production: TV‟s sponsored programs a DD programs have been improving in terms of quality –content wise as well production wise-consistently over a period of time. The agency exercises overall supervision. Some sponsored programs are lavishly made. They do a lot of outdoor shooting. 2. Familiar Friendly voices: Models are all familiar and their presence is reassuring. The Audience likes the face and welcomes it. The models attract the attention in his or her own right. It adds to our pleasure .This is a distinct advantage of TV. 3. Retailers also watch TV: Both consumers and distributors are TV viewers. The retailers might miss out the ads in print media. But they are exposed to TV ads. Thus they feel inclined to stock these products. 4. It is a comprehensive Technique: In TV there is a unique blend of sight, color, movement, sound, timing, repetition, and presentation in the home. Put together it has more attributes than any other medium. It, therefore, produces quick results. Only the product should be a nationally marketed consumer product. 5. Evocation of Experience: It stimulates the experience of using and owing the product. 6. Demonstration: TV can show product benefits most effectively. Benefits may accrue over a period of time. But by using the technique of time compression, product benefits can be shown in a ten second spot. 7. Creative use of Environment and Mental Makeup of viewers: The editorial environment of sponsored program can be creatively used to produce a commercial e.g. circus artist can be shown using ACTION shoes before the tele-serial of CIRCUS. 8. Animation: It is possible to vest the product/logo with human qualities. Animated characters do not alienate us.
  16. 16. P a g e | 16 9. Image Building: TV Succeeds in building a powerful image of the company and its products. It can also project an image of the users rendering it excellent lifestyle advertising. 10. Emotional Content: TV Triggers off nostalgia, tenderness, generosity, kindness and such other emotions. The special effects enhance the impact. SPECIAL DEMERITS OF TV ADS 1. It takes time to produce commercial and sponsored programs: This medium requires planning and deliberation. The consent for sponsorship is hard to come by. It lacks the flexibility of press and radio. If not rightly produced, the add looks very crude. But once produce as per our requirements, these ads can be repeated over a period of time (Nirma Ad). 2. It is a transient medium: Here the commercial flickers for a second and goes off the air. We work over hard with insistent jingles and repeated sales message. Sometimes, the commercial is repeated frequently. TV ads alone may not be sufficient. They need supportive ads in other media. More than one or two spots are necessarily to be as noticeable as one insertion in print. 3. Time Gap to purchasing: If TV advertisement sinks into the mind it is okay. But, otherwise, a mind that is well prepared for buying a certain product cannot do so immediately because there is a night to go by and only next morning the action can be taken. By that time, we might not have kept the product in mind. The „buy now‟ pressure exerted on the TV viewers is totally wasted because the stimulus is often lost by the following morning. This is one of the reasons what TV needs a very high frequency to sustain the impact. 4. An Immobile Medium: Radio can be listened to either in car or while walking. Newspapers are read in locals, offices and at many other locations. Right now, TV is watched only at home. It requires a captive audience. It penetrates at home. This is an advantage as well as disadvantage.
  17. 17. P a g e | 17 5. Difficult to Gain Enquires: TV restricts itself to typical purchases. Detailed enquires cannot come. It is difficult to either the telephone number or the address. Another major problem is that too much is compressed in a TV commercial lasting for a few seconds. It is a digest, and is easily assimilated and absorbed. At first viewing, there is novelty. But on absorption, this wears off. ON repeated viewing, it becomes monotonous. Everything is anticipated. This problem can be overcome if we can serialize a commercial. It is better to produce several less ambitious films than to produce one super production. Slight change makes all the differences in results. 6. Time constraint: In a few seconds, we can put forward only one selling proposition. 7. Production costs: Cost of producing a commercial is high as compared to costs of the print production. The paying capacity of the client, the nature product, and the commercial values of the program that accompanies the commercial determine the final production cost. 8. Hardware Capability: The TV set of the viewer and its technical capability determine the total impact of the commercial. Cinema can afford the luxury of long shots but not TV commercial. All commercials should be tested in real life situations, mostly on portable B&W sets. The color reproduction is controlled in print media, but on color TV set the capability of the TV set itself determines the color reproduction. 9. Statutory Controls: TV commercials have to conform to broadcast code strictly. 10. Fragmentation of Audiences: All channels have a diversity of programs to attract viewers. They intend to penetrate the viewers of other channels by a diverse program mix. This channel penetration at the same time gives program options. This naturally leads to fragmentation of audiences and lower regularities of viewer ship. 11.Effect of Clutter: The viewer ship of commercials is less than the viewer ship of the programme which accompanies them. The lengthier the chain of commercials, the less is the viewer ship. The duration of ad commercial does not seem to play a significant role in brand name recall. Top rate programs on any channel have high commercial clutter leading to poor ad recall.
  18. 18. P a g e | 18 PANAROMA OF MEDIA SCENE IN INDIA The milestone that changed the Indian media scene completely was the launch of STAR TV. With the explosion of channels and the proposed additional channels, DD has lost its monopoly over the electronic broadcasts. Even then, DD itself is gearing itself up to meet the challenge by starting its own satellite channels, and if the response to the Metro channel is also very encouraging, there is no reason why DD cannot take head on the foreign channels and other indigenous channels, provided a right kind of software is offered to the public for viewing. In this complex scenario, media planner‟s task will be quite a challenging one. Advertiser will have to pick and choose a right type of channel/program to reach his target audience. With multiplicity of TV channels, the advertisers are not sure whether the message is reaching the right target audience. Space selling/time is going to be more aggressive. Each channel will be a „brand‟. We may have to match a channel and the advertising. The channel profile will consist of its audience and its programming. A channel manager may in fact work like brand or product manager of a marketing company. Getting ads for electronic media is more difficult than getting ads for the print media. The TV viewers in India can now be put into four major categories: Only DD1 DD1 + satellite channels DD1 + Metro DD1+Metro + Satellite Channels Satellite C&S Star + Sony + Zee + Pvt. Satellite Channels DTH Direct To home There is fragmentation of audience. It is simply the best program which carries the day. There cannot be channel loyalty.
  19. 19. P a g e | 19 Selectivity Besides fragmentation we have now entered an era of segmentation. There will be geographic as well as demographic segmentation. To illustrate: Socio Economic Class Viewing Habit A1, A2 25%of these watch Star Plus A1, A2 30-35% don‟t tune in DD1 even once In weak Moral: Premium brands like Dove and Sun silk and Lakme orchids will opt for Star TV to reach those who are not covered by DD1 at all. Life – Style Changes The exposure to other cultures through satellite media on such a massive scale for the first time will have a significant impact on the life style of people. We now view ad commercials of alcoholic beverages and jeweler on Zee, Star Plus and BBC routinely, though so far they have been banned by DD. Asia Net and sun TV used to carry ad commercials of cigarettes too. There is a multiplicity of channels available and those being planned. TELEVISION TRENDS The total number of people who watch any TV increased to 369.9m (up 7%) and those who watch C&S channels increased to 181.7m ( up 22.9%). Top 10 C&S Channels: 1. Star Plus viewers increased to 55.9m (Up 22%). 2. Sony TV dropped to 39.1m (Down 43%). 3. Zee dropped to 33.3m (Down 43%). 4. Sun TV increased to 31.9m (Up 7%). 5. Endue increased to 31.9m (Up 10%). 6. Gemini increased to 31.7m (Up 21%). 7. Zee Cinema dropped to 25.1m (Down 36%); 8. Aaj Tak increased to 23.7m.
  20. 20. P a g e | 20 9. Udaya increased to 19m (Up 35%). 10. Discovery increased to 17.7m (Up 8%). Top 10 C&S Channels by genre: The gap between the channels ranked No.1 and No.2 in different genres varies but surprisingly, the lead of Star Plus over second placed Sony entertainment is not to the extent that is generally assumed if the TRP ratings are used as a marker. Genre wise the biggest difference in viewer ship and reach was seen in English News with Star News (Pre-break with NDTV days) 73% higher than BBC. This however, is not strictly a like and like comparison. In Hindi News, Aaj Tak 58% ahead of Zee News, this is actually the biggest “blue sky” spacing between a number one and two in any genre. The lead that Zee Cinema had over MAX was the same at 58%.  Hindi general Entertainment: Star Plus viewer ship and reach is 30% more than the second placed Sony TV.  English general Entertainment: Zee English viewer ship and reach is 56% of star World  Hindi Movies: Zee Cinema viewer ship and reach is 39% more than the second placed MAX.  English Movies: star Movies viewer ship and reach is 39% more than the second placed HBO.  Hindi News: Aaj Tak viewer ship and reach is 42% more than the second placed Zee News.  English News: Star News viewer ship and reach is 27% more than the second placed BBC.  Nature/Infotainment: Discovery viewer ship and reach is 40% more than National Geographic channel.  Sports: Star Sports viewer ship and reach is 36% more than the second placed ESPN.  Music: MTV viewer ship and reach is 36% more than the second placed etc.
  21. 21. P a g e | 21 Language/Vernacular Channels: 1. Tamil: Sun TV viewer ship and reach is 65% more than the second placed Jaya TV. 2. Telugu: Eenadu TV is running virtually neck-and –neck with Gemini TV, with only 1% lead for the Ramoji Rao‟s Channel. 3. Kannada: Udaya TV viewer ship and reach is 64% more than the second placed ETV. 4. Malayalam: Asia net TV viewer ship and reach is 14% more than the second placed Surya TV. 5. Punjabi: ETC viewer ship and reach is 22% more than the second placed Lash Kara. 6. Bengali: ETV viewer ship and reach is 49% more than the second placed Alpha. 7. Gujrati: Alpha viewer ship and reach is 42% more than the second placed Gujarat. Viewer ship Trends within Different Bouquets: STAR NETWORK Star Plus viewer ship increased to 55.9m (Up 22%), Star Sports increased to 17.4m (Up 38%), NGC increased to 10.7m (Up 65%),Star Gold increased to 8.4m, Star Movies dropped to 8.3m (Down 5%), Star News increased to 7.7m (Up 24%), Channel [V] Dropped to 3.2m (Down 58%), Star World increased to 1.8m (Up 13%). The only loser on the Star Network is [V], which puts a big question mark on just what were the benefits that flowed out of the huge splash that accompanied the launch of [V] Pop stars in the first half of 2002. ZEE NETWORK Zee TV viewer ship dropped to 33.3m (Down 51%), Zee Cinema dropped to 25.1m (Down 36%), Zee News dropped to 10m (Down 5%),ETC increased to 4.8m (Up 17%), Zee Music dropped to 3m (Down 49%), Zee MGM increased to 2.3m (Up 53%), Zee English increased to 1m (Up 66%). It is all bad news as far as Subash Chandra‟s network is concerned with the notable exception of Zee English and Zee MGM. Another plus was the early 2002 Zee Acquisition etc.
  22. 22. P a g e | 22 The Zee Group‟s Alpha regional channels, however gave a much better account of themselves. Alpha Marathi increased to 7m (Up 3%), Alpha Bengali increased to 2.6m (Up 1%), Alpha Gujrati increased to 1.7m (Up 133%), Alpha Punjabi increased to 1.5m (Up 22%). SONY NETWORK The network‟s flagship channel Set‟s viewer ship dropped to 39.1m (Down 43%), MAX increased to 14.5m (Up 7%), Discovery increased to 17.7m (Up 8%), AXN increased to 4.9m (Up 4%), HBO increased to 5.1m (Up 292%). It is interesting to note that both Zee TV and SET showed big drops in their viewer ship. Ray raises the question of whether there is a link between the channels having gone pay and the drop in viewer ship. SUN NETWORK Sun TV viewer ship increased to 31.9m (Up 7%), Gemini TV increased to 31.7m (Up 21%), KTV increased to 9.1m, Udaya TV increased to 19m (Up 35%), Surya increased to 6.7m (Up 24%). IMPACT ON THE CONSUMER BEHAVIOUR Marketing communication is a unique tool in the hands of marketers, which they can use very effectively and intelligently to persuade their present and prospective consumers to act in a desired way to purchase a product. Advertising is a part of marketing communication, which helps marketers to meet customers. The latest craze in advertisements seems to be to adopt the formula “celebrity advertising”. In their attempts to improve the effectiveness of their advertising, a number of marketers utilize celebrities to present their ad message. A well-chosen celebrity can draw attention to a product or brand. The primary advantage of using celebrities is that they improve product recognition in a promotional environment filled with hundreds of competing commercials. As competition is increasing at greater at greater pace among the marketers the need arises for them to attract consumers and they are adopting this technique of using celebrities is ads. The use of celebrities makes the user move through different stages of consumer adoption of or decision-making process, very quickly at each and every stage. The use of celebrities in ads brings faster „awareness‟ in the first stage. This is because of the high recognition a celebrity has. In the second stage „Interest/knowledge‟ celebrity ads kindles
  23. 23. P a g e | 23 interest very quickly as it endorsed by the celebrity. A celebrity ad makes evaluation easy for consumers so that the trial is automatic is well designed. Consumers will try to evaluate it and would like to make a trial because of belief in celebrity. If the celebrities don‟t have high positive image, consumers may not go through this stage. The adoption may be for longer period of time. During post adoption stage, the use of celebrity reinforces the confidence of consumers, which is often known as “Reinforcement advertising”. The choice of celebrity is critical. The celebrity should have high recognition, high positive effect and high appropriateness of the product. Any celebrity who possesses these factors will significantly influence the consumer. In today‟s world where competing ads try to gain attention of viewers/readers, the formula of celebrity advertising will click and ads will have a definite edge over other ads. Because of high recognition of celebrity among masses, celebrity ads will easy awareness and high recall of a brand. Another factor of high positive effect plays an important role. Because of high positive image celebrities have, consumers will feel the genuineness of the product / brand and their believability will be high, in terms of the product functionality. High appropriateness to the product is a critical one in arousing interest among consumers. Celebrity advertising is ineffective when there is no reasonable relationship between the celebrity and the advertised product or service. It is to be seen how far the celebrity and the advertised product or service. It is to be seen how far the celebrity resembles the product. Robert B. Evans in his book “Production and creativity in Advertising” asserts the use of celebrities if they don‟t have a distinct and specific relationship consumer believe that the celebrity has been bought, and handsomely paid to say fine things about the product they are advertising, tends to produce the “vampire effect” the audience remembers the celebrity but not the product. Testimonials given by the experts will have a scintillating effect. For a food item being endorsed by an expert like Sanjeev Kapoor will have a significant effect, as he considered being an expert in his field. This way of relation ship will definitely bring substantial benefits to the advertiser. As Alistair Crompton in “The Craft of Copyright” asserts “if you do choose a star, be sure he or she has kind of relationship with the product”. If this is not always possible, it is at least desirable that the star in the commercial should bear some resemblance to the image not too different from what is conveyed.
  24. 24. P a g e | 24 Further if they celebrity involves in a scandal it will create a negative image of the product. The trustworthiness of the product is at stake if such an incidents happen. As one such cricketer‟s ads were withdrawn immediately after such incident. As now a celebrity endorses various, different kinds of products, confusion will develop in the minds of consumers, as to with which product the celebrity is associated. This will ultimately make consumers forget the product and solely remember the celebrity only. The real goal of celebrity advertising will be missed. David Ogilvy in his book, “Ogilvy on advertising” asserts the same point. He says “Testimonials from celebrities get high recall scores but consumers remember the celebrity and forget the product”. THE BUYING DECISION PROCESS Marketers have to go beyond the various influences on buyers and develop an understanding of how consumers actually make their buying decisions. Specifically, marketers must identify the types of buying decisions and the steps in the buying process. BUYING BEHAVIOR Consumer‟s decision-making varies with the type of buying decision. The decision to buy toothpaste, a tennis racket, a personal computer or a new car is all very different. Henry Assail distinguished four types of consumer buying behavior based on the degree of buyer involvement and the degree of differences among brands. Complex Buying Behavior In this the buyer first develops the beliefs about the product; second he develops attitudes and then makes a thoughtful choice. This is usually the case when the product is expensive, bought infrequently, risky and highly self-expressive, like an automobile. The marketer needs to develop strategies that assist the buyer in learning about the product‟s attributes and their relative importance. He needs to differentiate the brand‟s features, use print media to describe the brand‟s benefits and motivates sales personnel to influence the final brand choice. Dissonance Reducing Buyer Behavior In this case the buyer will shop around to learn what is available as he highly in the purchase. If the consumers find quality differences in the brands he might go for the higher price or on convenience.
  25. 25. P a g e | 25 After the purchase the consumers might experience dissonance that stems from hearing favorable things about other brands. The marketer should supply beliefs and evaluation that help the consumer feel good about his choice, through proper marketing communications. Habitual Buying Behavior Many products are bought under the conditions of low involvement and the absence of significant brand differences. Consumers don‟t pass through the normal sequence of beliefs; attitude and behavior are passive recipients of information on TV or print ads. Ad repetition creates brand familiarity rather than brand conviction. Marketers find it effective to use price and sales promotions to stimulate product trial. Variety Seeking Buying Behavior These buying situations are characterized by low involvement but significant brand differences. Consumers often do a lot of brand switching which is for the sake of variety rather than dissatisfaction. Marketers should try to dominate the shelf space, avoid out of stock conditions and sponsoring frequent reminder advertising. STAGES OF THE BUYING DECISION PROCESS Smart companies will immerse themselves in trying to understand the customer‟s overall experience in learning about a product, making a brand choice, using the product, and even disposing of it. Marketing scholars have developed a stages model of buying decision process. The consumer passes through five stages: 1 2 3 4 5 Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Behavior
  26. 26. P a g e | 26 A Multi Stage Model of the Consumer Decision Process: 1. PROBLEM RECOGNITION The buying process starts when the buyer recognizes the problem or need. The need can triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a particular need. By gathering information from the number of consumers, the marketers can identify the most frequent stimuli that spark an interest in a product category. 2. INFORMATION SEARCH An aroused consumer will be inclined to search for more information about the product. Consumer information sources fall into following four groups: Personal Sources: Family, friends, Neighbors and Acquaintances. Commercial Sources: Advertising, Sales Persons, Dealers, Packaging, Displays. Public Sources: Mass media, Consumer rating Organizations. Experimental Sources: handling, Examining, Using the product. The relative amount and influence of these information sources vary with product category and the buyer‟s characteristics. Each information source performs a different function in influencing the buying decision. Through gathering information the consumer learns about competing brands and their features. From the total set of brands available, the individual consumer will come to know only a subset of these brands awareness set. Set brands will meet the initial buying criteria consideration set. As the person gathers more information, only a few will remain as strong contenders‟ choice set. The person makes a final choice from this set. 3. EVALUATION OF ALTERNATIVES There is no single process used by all the consumers in all the buying situations. Consumers vary as to which product attributes they see as most relevant and the importance they attach to each attribute. They will pay most attention most attention to attributes that deliver the sought benefit. When evaluating potentials alternatives consumers tend to use two types of information. List of brands from which they make selection evoked set.  Criteria they will use to evaluate each brand.
  27. 27. P a g e | 27 Evoked set refers to the specific brands a consumer considers in making a purchase within a particular category. A consumer‟s evoked set is distinguished from his inept the set the consumer excludes from purchase consideration because they are felt to be unacceptable, and from the inert set, which consists of brands the consumer is indifferent towards because as they are not perceived as not having any particular advantages. The consumer develops a set of brand belief about where each brand stands on each attribute. The set of beliefs about a brand make up the brand image. Thus, when a company knows that consumers will be evaluating alternatives it sometimes advertises in away that recommends the criteria that consumer should use in accessing product options. 4. PURCHASE DECISION In the previous stage the consumer forms the preferences among the brands in the choice set. However, two factors can intervene between his purchases intentions. The First factor is attitude of others. The more intends the other person‟s negativism and the closer the person is to the consumer will adjust his purchase intention. The converse is also true. The Second factor is unanticipated situational factors-that may irrupt to change purchase decision. A consumer‟s decision to modify, postpone or avoid a purchase decision is heavily influenced by perceived risk. 5. POST PURCHASE BEHAVIOR After purchasing the product the consumers will experience some level of satisfaction or dissatisfaction. Marketers must post purchase satisfaction, actions and product uses. Post purchase Satisfaction The buyer‟s satisfaction is a function of the closeness between them buyer‟s expectations and the products perceived performance. The importance of post purchase satisfaction suggests that product claims must truthfully represent the products likely performance. Post Purchase Actions If the consumer is satisfied, he will exhibit a higher probability of purchasing the product again. Dissatisfied consumers may abandon or return the product. They may seek information that
  28. 28. P a g e | 28 confirms its high value. They may take public action by complaining to the company or make a decision to stop buying the product. Post Purchase Use and Disposal Marketers should also monitor how buyers and disposes off product. If consumers store a product in a closet, the product is probably not satisfying and word of mouth will not be strong. BACK GROUND OF FMCG The FMCG sector has been the cornerstone of the Indian Economy. Though, the sector has been in existence for quite long time, it began to take shape only during the last fifty-odd years. To date, the industry is yet to crystallize in terms of definition and market size, among others. Generally, FMCG refers to consumer non-durable goods required for daily or frequent use. The sector touches every aspect of human life, from looks to hygiene to palate. Perhaps, defining an industry whose scope is so vast is not easy. Post-reforms, the industry‟s growth has been hinging around a burgeoning rural population, which has witnessed significant rise in disposable incomes. Consequently, the rural markets have been witnessing intense competition in almost all the consumer product classes. Another reason that has led to rise in this trend is the saturation in urban markets in most of the consumer non- durable goods categories. This has led to the industry players scrambling for greater rural penetration as a future growth vehicle, the area that accounts for 70% of the total Indian households. The FMCG sector consists mainly of sub segments viz. Personal care, oral care and household‟s products. This can be further sub-divided in to oral care, soaps and detergents, Health and Hygiene products, beauty cosmetics, hair care products, food and dairy-based products, cigarettes, and tea and beverages. Of late, there seems to be a liberal approach towards branding of the companies/products as FMCG, companies in businesses like liquors (United Breweries), paints (Asian Paints), adhesives (Fevicol), too Being labeled as FMCG stocks in the stock market parlance. Quite interestingly media stock Zee Telefilms was labeled as FMCG stock by a mutual fund, which had Zee as its top holdings in its FMCG sector scheme at one of time.
  29. 29. P a g e | 29 So far, it has been a checkered graph for the MNC‟s operating in the Indian FMCG industry. Domestic companies are only beginning to make their presence felt in the industry. It has taken tremendous consumer insight and market suaveness for the FMCG players to reach where they are today. But, the journey seems to have just now begun for the players as the majority of the rural populace is yet to get access to the items of daily usage like toothpaste, soaps and shampoos.
  30. 30. P a g e | 30 STRUCTURE With domestic consumption close to Rs.80, 000 crore, the FMCG sector today is one of the largest in the country. One of the biggest challenges facings the Indian FMCG industry is to get the next level of innovation, besides presence of a huge unorganized market. The Key Characteristics of the Indian FMCG market are as follows: Heavy Launch Costs: Companies incur huge costs on the launch of new products. The entire launch process goes through a series of processes such as product development, market research, test marketing. All this requires huge cash outflow. Further, in order to build brand awareness and develop franchise for a new brand initial expenditure is incurred on launch advertisements, free samples and product promotions. Launch Costs are as 50-100% of revenue in the first year and these costs progressively reduce as the brand matures, gains consumer acceptance and turnover rises. For established brands, advertisement expenditure varies from 5-12% depending on the categories. It is common to give occasional push by re-launches, which involves repositioning of brands with sizable marketing support. Less Capital Intensive: The sector is not so capital intensive, as majority of the product classes requires very low investment in fixed assets. The sector is also characterized by high turnover to investment ratio; turn over is typically five to eight times the intensive made in a Greenfield plant at full capacity. Another reason for the sector being less capital intensive is that bulk of sales from manufacture takes place on a cash basis. Contract Manufacturing: Manufacturing of products by third party vendors is quite common. In order to keep a check on costs and hence increase affordability of their products, companies in many cases prefer to go for contract manufacturing by third party. Marketing Drive: Marketing assumes a significant place in the brand building process of the industry players. This helps in reaching out to large consumer‟s base and fight with the existing brands. Even for an existing brand it requires constant marketing efforts to keep the demand alive and kicking.
  31. 31. P a g e | 31 Marketing Research: Before the launch of any new product, conducting market research to gauge the consumer‟s reaction is very important. This is because consumer‟s purchase decisions are based on perceptions about brands and which keep on changing with fashion, income and changes in lifestyle. Also in case of consumer goods it is difficult to differentiate products on technical or functional grounds, unlike in the case of industrial products. Now with increasing competition, there is tremendous pressure on the companies to do extensive market research, test market research, test market it before coming with any new product. Presence of a Large Unorganized Market: A huge unorganized market characterizes the FMCG sector. Factors like low entry barriers in terms of low capital investment, fiscal incentives from government, low brand awareness, especially in rural areas led to the mushrooming of the unorganized sector. Of late, there has been a decline in the share of non-branded products, according to the said study. This all indicates that the coming days will witness more fierce battles for a pie in the lucrative rural segment. Other Features: In urban areas, the consumption dispersion is logically and practically broken up by the population strata i.e. the Town Class. The urban elite, or the people living in metros, consumes a proportionately higher value of FMCGs. This has an effect on the retailing structure also, as the retailer varies his stocking pattern and his basket of services, according to the needs and the purchasing habits of the consumer on the one hand and his own desire to differentiate from other such service providers on the other. The key to success in the Indian FMCG industry lies in; Cutting costs, investing in brand building in the form of marketing, advertisements and promos, providing good price points and aggressive pricing, offering products such as packaged Flour and Milk that add value and convenience and protecting their human talents from poachers. Alongside, FMCG players need to go in for new initiatives. Considers HLL for instance. The Company has made it clear that Internet is going to be its key delivery vehicle, which would expedite its distribution and sales efforts. Sure, Internet is going to change the way FMCG companies strategize and do business,
  32. 32. P a g e | 32 with reasons. Internet presents vast opportunities to FMCG companies in the areas of logistics interface with consumers and value chain. Build a Solid Distribution Network: It calls for massive investments. Indian FMCG players, unlike their foreign counterparts, could not take chances with new brands, just in case they failed. But more than their financial handicaps, it was a mindset that was responsible for the laid back attitude: they were complacent, anti-change and anti-growth. This mindset clouded their vision and strategy. Dabur has been a slow changer to date. Some of the McKinsey recommendation such as exiting from no core businesses met with strong objection from some members of the promoter family. Family feuds, so typical of Indian corporate, left domestic FMCG majors with little time of marketplace battle and strategizing. Major Indian consumer product companies (like Britannia, P&G, HILL, etc.) have a very strong presence through their strong brands. These companies make considerable investment in R&D to sharpen and maintain their edge in the business Diversified portfolios, wide distribution networks and scale economies of these companies deter few players from entering. Brand equity, therefore, is an extremely important factor is the ability to build, develop, and maintain a robust distribution network. The major issues that new MNC entrants face are low income levels, non-existence of super markets in India, an incredible 5 million retail outlets, and a typically slow moving low consumer demand resulting in dealers/retailers being reluctant to allocate their resources and time. The Pace of Competition MNCs had both good product propositions and deep pockets to back them. Their parent‟s wide product portfolio‟s ensured that new products kept hitting the Indian market. Players such as Cadbury redefined the basic tenets of the chocolate confectionery industry. It not only launched new varieties and flavors, but also in fact helped to change the consumption patterns. For long, Indian FMCG players have remained low-decibel advertisers. It was only Nirma, which was a deliberate low-decibel advertiser. It still is. Such has been its corporate philosophy. It does not even figure in the 1999 top-ten list of advertisers, which had Dabur at number two, and Marico at
  33. 33. P a g e | 33 four. When practically everybody else has hiked their ad-budgets, Nirma continues to gain volumes by passing on the cost-benefits to consumers. Value for Money: Ever since the global recession of 1991-94, which hit consumer spending hard, value-for-money has become the buzzword for FMCG companies globally. These FMCG companies embarked upon major restructuring and cost rationalization exercises as business continued to become fiercely competitive. Several packaging innovations were also resorted to. India was no different. There was a paradigm shift towards value-for-money products and, to some extent, towards the rural market. What Nirma did all these years suddenly become the buzzword for many FMCG players Price cuts became inevitable to keep the market share from shrinking. Economic recession hit the urban pockets badly and forced companies to train their guns on rural India, which was witnessing a major change in its aspiration and lifestyles and even had an income that, translated into increasing volumes. Companies such as HLL, Colgate and Britannia, who already had a strong rural focus, stepped up the gas further. HLL unleashed its “operation Bharat”. Britannia pushed its Tiger biscuits to every nook and corner of the country, while Colgate went about wooing the rural masses by offering low-priced products in convenient package. Future outlook Domestic market is witnessing a structural shift in terms of demand with rural markets beginning to show increased demand for FMCG products. This is happening at a time when the urban market is showing signs of saturation. However, the low level of penetration in the rural areas is a cause of concern. For a number of consumer expendables the penetration levels are extremely low, but are expected to increase with the passage of time and rise in income levels. For instance, for toilet soap, the average expenditure per used household for low-income households is Rs.237, while it has increased to rs.706 for high-income groups. Rural market at a staggering 122m, five times the urban market, is hard to ignore for anyone. This on the other hand also provides an excellent opportunity for the industry players in the form of a vastly untapped market. However, to propel the demand in the rural areas, issues like taxes
  34. 34. P a g e | 34 and costs would be very crucial, given the cost-class-conscious nature of the consumers there. Recent Budget hike in FMCG products like toothpaste don‟t bode well for the company‟s efforts to focus on spreading awareness about oral care in these areas and the increased usage of oral care products there. Another area, which offers immense growth opportunities, is unbranded segment. However, cost will again be the determining factor for success here. The increased inflow of imported consumer goods in the country, especially from China, as a result of lifting of the QRs (Quantitative Restrictions) by the govt. is also expected to give the domestic players a run for their money. In recent times, the markets have been seeing a veritable war over the retail shelf, which promises to intensify in the foreseeable future. Lifting of quantitative restrictions & dereservation of several items, which were earlier reserved for Sis‟s, are expected to lead to intense competition in the market place. In the wake of such developments, the crucial successes factor will be the distribution strength a company would be able to have or develop. However, in the wired world that alone won‟t be a entry barrier. Internet is fast emerging as a strong distribution channel and the new players are finding it easier to launch assaults through this medium very effectively. That is why we are seeing web initiatives from market majors like HLL, Godrej etc. which want to pre-empt competitors in that space. And, it won‟t be an exaggeration to say that the next FMCG war will be fought on the wired turf. Brand building will be another key issue. There has been a spurt in promotional activities, which has resulted in an increasing fight for the customer‟s attention at the point of purchase. This has made brand differentiation at the retail level extremely difficult. This has been further aggravated by brand extension strategies adopted by the companies. One good example is the Hindustan lever. The companies, in some of the product categories like soaps, have relied heavily on brand extension. In case of lifebuoy, toilet soap, so many variants have flooded the shelves; however this could also mean diluted focus, on part of company and confusion for the consumers. HLL has recently planned to trim its product portfolio and concentrate on key brands only. It is expected to withdraw from the markets variants of its toothpaste brand “Close up” such as close up renew and Close up Oxy fresh.
  35. 35. P a g e | 35 Companies will be increasingly reviewing the quantity versus quality equation, as well as distribution synergies, to try and leverage for the best possible distribution at the least possible cost. This could be a crucial factor in deciding the fate of players. The key factors that are expected to trigger future growth for the FMCG industry include reduction in excise duties, relaxation of licensing restrictions and reduced dominance unorganized sector due to creation of level playing field. The growing reach of advertising Medias like Satellite and cable TV too is expected to give a boost to the market penetration initiatives of industrial players. Advertising trends by Product Categories for Key Channel Genres Star Group is mulling over structuring their ad tariff to other different product categories. So if FMCG brands „need‟ general entertainment channels more and hence end up using a high share of inventory, they should be charged higher. If implemented, this approach will signal a paradigm shift. Categories using less ad-inventory will be charged less and vice-versa. As a result FMCG majors might end up paying maximum rate. Analysis shows they have over 80% of the share of cumulative advertising audiences generated by on general entertainment channels. Levers, P&G, Colgate, Pepsi and others, watch out for this googly. Let’s look at some top line first. FMCG firms have a huge reliance on general entertainment channels to get audience exposure. As much as 70% of their GRPs, in CS homes General entertainment satellite channels. For the period of six months (Feb-July 02), the Cumulative GRPs, generated by all FMCG brands were 4.46 lakhs of which about 2.9lakhs were accounted for by General Channels. Durable however has a better spread across genres. While General entertainment channels account for 51% share of total category GRPs, Sports has high 20% share and News has 12% share. The rationale for higher dependence of FMCGs on General channels is the consumption. Most categories, like Colas have „impulse‟ buying pattern. This entails across the year presence on high visibility programs, like those on Star Prime Time. Sporting events have spread out annual calendar, which works well for „considered‟ purchases like two-wheelers. But given that news genre is delivering consistent TRPs all across the year now, perhaps the FMCG majors should look at this genre more closely. Let‟s now look at the data from the channel perspective. Chart 2 below has some interesting insights. While English Movies and Music Channels (like MTV and
  36. 36. P a g e | 36 Star Movies) and Sports channels have very similar product category breaks ups, Hindi Music & Filmy Channels and General entertainment channels are akin. Finally, what is interesting to note is how the total portfolio of Star Network breaks down by categories. My analysis of data suggests that 77% of Ad GRPs across Network is accounted for by FMCG brands. And only 16% by Durable. So, while FMCGs rely on star plus and other channel, this Network too has a huge dependence on them. Data Tables: Data Tables 1: Total GRPs for each product category and share of each genre. News General Entertainme nt Music & Movie – Hindi Music & Movie – English Sports DD1,2 & Regional Other s Total Ad GRPs FMCG 6% 69% 5% 3% 6% 7% 4% 341959 Durable 12% 51% 4% 6% 20% 4% 3% 66006 Service 5% 65% 2% 7% 14% 2% 4% 16757 Others 10% 55% 5% 5% 7% 14% 4% 21467 Data Table 2: Total GRPs for channel genre and share of individual product category News General Entertainment Music & Movie- Hindi Music & Movie- English Sports DD 1,2 & Regional Other
  37. 37. P a g e | 37 FMCG 64% 81% 83% 57% 52% 82% 82% Durable 26% 11% 11% 28% 37% 8% 12% Service 3% 4% 2% 8% 6% 1% 4% Others 7% 4% 5% 7% 4% 9% 5% Total Ad GRPs 30438 292793 22677 15133 36277 31141 17732 UNDERSTANDING SECTOR RANKINGS As you can see from Chart 1, no year is exactly the same as the other. There are certain industries that do well in one year have not been very good for durable. And sure enough, that gets reflected in the rankings itself. Look at Chart 2 and Chart 3 for the kind of changes that have place in the last eight years. This kind of an analysis would give you a feel of the market and the changes happening within. Chart 1: Sector rankings constantly changing in terms of their mass media spends Rank Year 2002 Year 2004 1 Corporate/Brand image Toilet Soaps 2 Toilet soaps Corporate/Brand image 3 Soft Drinks Aerated Two-Wheelers 4 Car/Jeeps Washing Powder/ Liquids 5 Toothpaste Soft Drinks Aerated Source: Tam Addax Chart 2: Top Categories on TV Product Category Rank in 1994 Rank in 2004 Toilet Soaps 1 1
  38. 38. P a g e | 38 Washing Powder/Liquids 3 2 Soft Drink Aerated 12 3 Corporate Brand Image 6 4 Shampoo 8 5 ANALYSING SECTORS: FMCG INDUSTRY FMCGs Dominate: Given the high popularity of these shows amongst women, one would expect FMCGs to be the largest advertisers on these shows. A look at the usage trends of these shows reveals a definite tilt in the favor of FMCGs, especially the Female products. These product categories occupy the top 5 slots (see table below) in terms of advertising duration though Motorcycles seem to be an exception.
  39. 39. P a g e | 39 571 574 624 668 750 959 962 1022 1027 1084 1228 1360 1390 1449 2469 0 500 1000 1500 2000 2500 3000 HairOil Pen DeodorantsPerfumes MosquitoRepellant JewelleryGem HairDye InstantCoffee Toothpaste SkinCare Motorcycles MilkChocolates ToiletSoap Detergent Shampoo FairnessCream Duration(Secs) Products TOP PRODUCT CATEGORIES UTILISING EVENTS
  40. 40. P a g e | 40 350 370 400 410 430 500 556 590 740 770 800 0 100 200 300 400 500 600 700 800 900 DeBeerDiamond NescafeClassic Fadeodrant MargoAllPurposeCream WhirlpoolWhiteMagic BruInstantCoffeee Fair&LovelyFairness NomarksHerbalCream HeroHondaDKD-2 HenkoPowerPearlsDetergent GodrejFairGlowCream Duration(Secs) Products TOP BRANDS ON EVENTS ACROSS ALL CHANNELS
  41. 41. P a g e | 41 Using TV Advertising in FMCG Brands The key challenge in advertising FMCG brands is achieving and maintaining Saliency, and media thinking plays a key part in addressing this. The traditional solution of a few weeks radio campaign is highly questionable for most brands-radio audiences are fragmenting, and achieving high levels of frequency is extremely expensive. Theories vary on the way advertising works in the FMCG sector, but it seems likely that brands need high levels of demonstration and support in the longer term- brand maintenance is the key. TV can play a useful role in the FMCG sector, as it typically uses high levels of emotional content, while creative use of environment and animation is available for brand maintenance strategies. TV viewing is at its highest in the evening time when families are together in their homes and also when shopping trips are being made. This means campaigns can get closer to the point of purchase. A very high share of visuals is available on TV, as the level of competitive visuals is completely missing in the radio. This means that an FMCG brand can use TV to achieve a disproportionately high share of mind, which has a natural link to brand saliency. In communication terms, TV offers the benefits of intrusiveness as well as frequency –like radio, people sit through the ads in real time, but unlike TV, radio has low levels of advertising avoidance. TV can play a wide range of roles in the advertising media mix-its important strength in supporting other media, typically print. This is a proven role for the medium, and makes sense in terms of up weighting frequency, filling gaps in schedules or extending the length of campaigns. Campaigns that feature Sonic Brand Triggers are especially effective, as they offer branded impact even for the most passive TV viewer or radio listener.
  42. 42. P a g e | 42 CHART ONE It is worth briefly considering the role that different media play, and their strengths and weakness, before going on to look at TV in particular. However, TV is still the single biggest medium used, but spend on TV is clearly slowing as advertisers look for innovative media solutions elsewhere. Coverage and Profile Growth in TV in the last ten-fifteen years has been dramatic and it is now recognized to be a genuine mass medium – over 31.5 million adults‟ view TV every week. In terms of age profile, TV is still broadly skewed towards the younger age groups but, as the graph shows, this is progressively changing over time. This is partly because of new channels coming on air and partly because many new programs are specially featured keeping in mind the older class of people too. Like there are examples of many TV channels viz. Sanskar, Aastha etc. Intrusiveness All the real-time media- cinema, TV and radio- are intrusive, in the sense that they act on the passive consumer as the advertising message elapses readers can simply avoid looking at the ads). This is extremely valuable for advertisers in the FMCG category – consumers might not be motivated to read about your product, but they are happy enough to sit through a commercial. This does not of course mean that all consumers listen to all TV commercials the evidence is that attention is selective, and depends to a large extent on either relevance or the creative approach, or both. Sonic brand Triggers are also important in terms of ensuring branded recall of advertising. Share of visuals, Share of Mind Radio is still a relatively inexpensive medium in which to secure a high share of voice. This is far than TV, simply because levels of competitive noise are so much lower. But share of voice is only one way to look at this. More importantly, is share of viewing which is available only in TV, brand which dominates a category through TV can secure disproportionately high share of mind, and this is because of the large proportion of the media time which is accounted for by TV.
  43. 43. P a g e | 43 CHART TWO Radio listening is at its highest in the mornings. But viewing TV is higher than listening of commercial radio after mid-afternoon. This is of-course primary shopping time, and this is one of the key reasons why retailers use radio so consistently. But now trends are changing and most of the retail outlets are equipped with TV. People while shopping or even sitting in a cafeteria are more use to watch TV rather than listen radio. TV 57% Magazines 2% Radio 29% Newspapers 12% SHARE OF MIND
  44. 44. P a g e | 44 The “Intimate Medium” People tend to be their own when they are viewing their chosen TV channel, and tend to be in their personal space- the bedroom or the living room. People tend to relax. Themselves by including watching TV as one of their good pass times. So TV messages are consumed in an intimate way to the listener/viewer, relating to him/her at a more personal level. There is a similarity here with magazines and radio, which also have a very personal relationship with the individual. Consumers describe both media as being “like a friend”. Identification with station Listeners feel a very strong sense of identification with the channel they watch, and this varies very little between different types of satellite channels. Implicit within this relationship is an assumption that products advertised on that satellite channel are also aimed at “people like me”. This is potentially very valuable for brands, which seek to be seen as accessible and relevant. FMCGs Players prefer to advertise in Local Languages It is localization in times of globalization. That‟s more the rule than the exception. At least as far as the Rs. 80,000cr. FMCG industry is concerned. Now, research findings by advertising tracking agency, TV Ad Index, have sealed a home truth. Across the leading 20TV channels, Hindi remains the most preferred language for advertising, followed by the Southern languages. Very few FMCG players prefer to advertise in English, according to the TV Ad Index data. Within FMCGs, of the 46 new TV commercials released between March3 and March9, only four were in English among the top 20TV channels. These were for Axe cologne tale, Nestle Munch Chocolate, McDonald‟s and 7Up. As many as 23 ads across categories such as food, beverages and personal care were released in Hindi. Parle-G biscuits, Itch Guard talc, Pond‟s prickly heat tale, Pond‟s Dream flower talc, Coca-Cola, Thumps Up, Pizza Hut, Livon Silky Potion hair conditioner, Ayush Dandruff shampoo, Pond‟s Angel face make-up, Lakme face Magic make-up and Lay‟s Saif „N‟ Kaif Hot
  45. 45. P a g e | 45 & sweet chili snack were some of the brands which broke their TV advertising campaigns in Hindi. Southern language channels came second, with eight ads being released either in Tamil or some other South Indian language. These included ads for Cadbury bytes biscuits, Fair & Lovely talc, Gokul santol talc, Bru Coffee, Sahaja herbal face cream, Coco Cool hair oil, Horlicks, and Godrej Fair Glow soap. The Southern languages followed, with eight brands breaking advertising in one of these languages. These included Britannia Double Cream Treat biscuit, Boro Plus prickly heat talc, and Solano candy, deluxe Green label coffee and two ads for Mr. Bean Coffee, Mirinda, and Arun ice cream. Only tree brands –Alpenliebe Lollipops candy, Pepsi Blue soft drink, and 7Up – broke ads in English.
  46. 46. P a g e | 46 An Overview of Advertising and Marketing Mix Advertising and the product Advertising is an important component of the marketing mix. Marketing executives decide about the marketing mix elements to be used, and the proportion in which they are to be blended into their marketing mix programs. The right choice determines the executive‟s success, and make for the marketer‟s reputation. Almost all consumer goods manufacturer and many industrial products marketers include advertising in their marketing mix. Advertising‟s specific role is of pre-selling to present and potential customers. Together with other elements of the promotion mix, such as Personal selling and sales promotion activities, the point of purchases displays, coupons, lead to a successful marketing programme of selling mass produced, mass marketed consumer goods. In the marketing of industrial products, too, advertising plays a useful role, it informs unknown prospects and enables the salesman in the field to obtain a hearing from the buyers. Not only this; marketing concepts and techniques can be well applied to non-commercial social ventures; and advertising promotes such as family planning, adult literacy, etc. even political candidates use banners, outdoors signs, and other forms of advertising to get elected. Product Classification The obvious broad categories are consumer goods and industrial goods. Those products which satisfy our personal wants and needs, such as food, clothing and household items, are consumer goods, whereas, industrial goods are used for a multitude of business purposes, ranging from blast furnaces, pig iron and forklift trucks to wash basin cleaning compounds and typewriters ribbons. Since the markets, the consumer market and the industrial market have different characteristics and different requirements, the marketing strategies, including advertising, have to be different. For example, table salt is different from several varieties of salt processed for industrial uses. Similarly, the writing paper consumed by school children is different from the industrial papers used in printing and Xeroxing. Many more such distinctions can be cited; but the fact remains that since products are neither identical, nor are the markets which necessarily require differing modes of advertising.
  47. 47. P a g e | 47 Consumer goods may be further classified as convenience goods, shopping goods and specially goods. It can also be classified as consumer durable and fast moving consumer goods (FMCG). Consumer durables are divided into three categories. The first category includes all forms of two-wheelers and four-wheelers. The second category white goods include refrigerators, washing machines, ovens, AC'‟ and dishwashers. The third category brown goods include TV'‟, music systems, tape decks, and radio among others. Computer forms a separate category by them. One more category of consumer durable is called domestic or small appliances and includes mixers, shavers, toasters and hair dryers. Advertising and Price Price is an important consideration in buying decisions. Every one of us would like to know the price of a product for comparison purposes before finally deciding to buy. Indian consumers are by, and large, price conscious. Price is also indicative of quality. The costlier the product, the better the quality. The reverse is also true. Advertisements sometimes carry the price tag for the products, when many identical products are competing with each other for consumer preference, the price may be important influencing factor. Think of any cigarette ads, in which the maximum price fro a pack of 20 and 10, are given at the bottom. The other purpose of giving the price in the advertisements is to discount the possibility of higher prices being charged by the retailer from the ignorant customer. The price of a product is sometimes made the theme of its advertisement to inform the prospects that the total product offering is economical. Even the dose of advertising during the different stages of the product life cycle has to be in accordance with price strategy adopted during each stage. Advertising and Channels of distribution The “place” objectives of various categories of goods require varying channels of distribution and exposure. For example, convenience goods need the maximum exposure and widespread distribution at low cost. Shopping goods need adequate representation in all major centers, whereas specialty goods may have a limited availability. For the supplies of industrial goods, widespread distribution and prompt delivery are required. Similar is the case for industrial
  48. 48. P a g e | 48 services. However, for equipment and accessories, varying distribution networks, are called for. Market exposure may vary from intensive to selective to exclusive for different product groups. Advertising in the promotion mix The activities of the sale force, the advertising and publicity programs and all the other promotional efforts should be properly efforts should be properly coordinated for the marketing success of the product
  49. 49. P a g e | 49 RESEARCH OBJECTIVES To study which medium is the most important source of information for the FMCG sector. To find the preferred purchasing attributes for an FMCG product. To analyze the Advertisements viewing habits of the people. To find out the effect of celebrities on consumers in their purchase decision. To study the attitude of people towards TV programmers and channels. To investigate and study the opinion of people for TV advertisements. To study the influence of TV ads on people. To study how TV ads influence values, lifestyle and aspirations of people. To study the Brand Awareness and recall level for different brands of FMCG LIMITATIONS 1. The data obtained is available to Lajpat Nagar and Shayam Park. 2. Due to shortage of time study was restricted. 3. Inaccessibility to certain areas also restricted the study to a limited sample size. 4. Inaccessibility of the respondents at times at their houses
  50. 50. P a g e | 50 RESEARCH METHODOLOGY Introduction 1. Objective of research 2. Meaning of survey 3. Research design 4. Sampling design Sampling method Sample size Sample type Type of data 5. Data collection method Source of primary data Source of secondary data
  51. 51. P a g e | 51 INTRODUCTION Research methodology deals with the various methods of research. The purpose of the research methodology is to describe the research procedure used in the research. Research methodology overall includes the research design, data collected method and analysis procedure which are used to explore the insight information from the research problem. Research methodology helps findings collected through the data collection methods. OBJECTIVE OF RESEARCH To study the attitude of people towards TV programmers and channels. To investigate and study the opinion of people for TV advertisements. To study the influence of TV ads on people. To study how TV ads influence values, lifestyle and aspirations of people. To study the Brand Awareness and recall level for different brands RESEARCH DESIGN Research design is an important and the vital part of research. Research design is comprehensive master plan specifying the procedure for collecting and analysis the needed information. Research design provides an excellent framework for the research plan of action. The function of the research design is to ensure that the required data is in accordance; research design is a blue print for the research study, which guides research in collecting and analysis the data. Here in my research report I have used the two types of research design. EXPLORATORY RESEARCH DESIGN Exploratory research design helps the research in getting the insight information from the research problem. Generally all the marketing research reports innuendos exploratory research that helps the researcher in providing the sharp focus of the problem under research. Exploratory research lays emphasis on the discovering of ideas and possible inside to get the information needed to carry out the research has used the exploratory from to research design in the project under study.
  52. 52. P a g e | 52 CONCLUSIVE RESEARCH DESIGN Conclusive research design is the design, which helps the researcher in studying the research problem in the conclusive form; this helps the researcher in choosing the possible cause of action from various alternatives to make a rational design. Hence this type of research is being used in this research report. SAMPLE DESINE SAMPLE METHOD A Sample survey is a survey, which is carried out using a sampling method in which portion only and not the whole universe is surveyed. He sampling method ,which I applied here, conduction the survey, is random sampling method. A random sampling is give every point of the population known and non –zero probability of being selected. SAMPLE SIZE The size of sample should neither be exclusive large, not too small. It should be optimum. An optimum sample is one, which fulfills the requirement of efficiency, representative-ness, reliability and flexibility. Sample size 100. SAMPLE TYPE I used SAMPLE RANDOM SAMPLING in my survey. I used following sample unit in my research TYPE OF DATA I used questionnaire and schedule for conducting survey. DATA COLLECTION METHOD The success of any project or market survey depends heavily on the data collection and analysis. It is necessary that the data collected is a reliable data in order to achieve the research objective. All data sources can be classified into two data: PRIMARY DATA SECONDARY DATA
  53. 53. P a g e | 53 1. PRIMARY DATA: Primary data is the data, which are fresh and collected for the first time, and original in character. There are various Primary data collection techniques, which have helped in data gathering. The primary data collection techniques used in the project is as follows: PERSONAL INTERVIEW METHOD SURVEY METHOD QUESTIONNAIRE METHOD OBSERVATION METHOD EXPERIMENTATION METHOD 2. SECONDARY DATA: Secondary data are those data, which have been already collected or published for the purpose other than specific research need at hand. This data is simply used up by the researcher for his purpose of collection of data and its use is now not the same. The secondary data sources here in this project are: MAGAZINES WEBSITES JOURNALS
  54. 54. P a g e | 54 INTERPERTATION SOURCE TV ADS NEWSPAPERS FRIENDS HOARDINGS TOTAL % of Respondents 60% 18% 14% 8% 100% Buyer is exposed to many external and internal stimuli‟s that help in decision-making. It is very important to know from whom they come to know about the product knowing the source of information is important for the study of buyer behavior. The above table shows that the TV ads are the major source of information for a 2-wheeler. Therefore companies should broadcast their ads on proper channels and appropriate time slot keeping in mind the target segment. 60 18 14 8 0 10 20 30 40 50 60 70 TV ads Newspaper Friends Hoardings %ofRespondents Various Sources of Information SOURCES OF INFORMATION ABOUT THE PRODUCT
  55. 55. P a g e | 55 INTERPERTATION Factors Brand Name Availability Features Price Total 40% 20% 15% 25% 100% The external influencing factors especially the marketing stimuli‟s are of great importance since it is only through these factors that the buyers make decisions. The study shows that buyers look for Brand name followed by Price, Availability, and finally Price. Thus, we can say that Brand name and Price is the two important factors, which are considered while purchasing any FMCG product. Hence, companies have to try to build a brand name and emphasis on the features in their ads. 40 20 15 25 0 5 10 15 20 25 30 35 40 45 Brand Name Availability Features Price %ofRespondents Factors FACTORS INFLUENCING THE BUYING DECISION
  56. 56. P a g e | 56 INTERPERTATION Habits Often Regularly Very Regularly Total % 34.4% 50% 15.6% 100% With the advent of satellite TV channels, it can be said that there is a substantial increase in the number of advertisements. This made more scope for consumers to watch the same ad on different points. The study shows that more than 50% of the respondents watch ads regularly whereas 34.4% of people are „often‟ viewers. Therefore, the advertiser should see that advertisements should reach the target audience. Thus ads should be broadcast at proper time slot. Advertisements should be attractive and they should be able to gain the attention. The four main basic functions they have to perform are: Very Regularly 50% Often 16% Regularly 34% ADVERTISEMENTS VIEWING HABITS
  57. 57. P a g e | 57  Attention: For this ads should be appealing so that it can catch the attention of viewers.  Interest: Repetition of an ad should be there to remain interest.  Arousal of Desire: For this, consumer compares and evaluates different brands and thus comparative ads should come.  Action.
  58. 58. P a g e | 58 INTERPERTATION Contents Informative Sports Personalities Film Stars Makes u Laugh Total 75% 8% 12% 5% 100% While people do watch advertisements, they have different preferences for the various things which featuring them. Respondents prefer to watch ads, which fulfills their information needs. As per the study 75% of the people preferred to watch ads because of informative reasons. This is followed by ads, which features film stars and then sports personalities being at 12% and 8% respectively. 75 8 12 5 0 10 20 30 40 50 60 70 80 Informative Sports Personalities Film Stars Makes U Laugh %ofRespondents Contents PREFERENCE AMONGST RESPONDENTS FOR CONTENT OF ADS
  59. 59. P a g e | 59 INTERPERTATION Influence Yes No Total 75% 25% 100% The image created in the ads is one of the techniques to persuade the consumers to buy the product. This image is public impression, which leads us to believe that if we buy the product the image in the ad will become reality. Thus in one or the other way brand preference is affected by TV commercials. This is evident from the study as 75% of the respondent said that their brand preference is affected by TV commercials. Yes 75% No 25% INFLUENCE OF TV COMMERCIALS ON BRAND PREFERENCE
  60. 60. P a g e | 60 INTERPERTATION Opinion Reliable Sometimes Deceptive Mostly Deceptive Total 36.5% 40% 23.5% 100% It is evident from the study that only 36.5% of the respondents felt that the ads are reliable. The remaining 60% believed that they were either mostly or sometimes deceptive. Advertising has been blamed for exaggerating the benefits of the products and services advertised and concealing the limitations and drawbacks. By advertising, one can fool some people for sometime but not all the people for all times. Thus an advertisement will have to be truthful and ethical. It should not mislead the consumers. If it so happens, the credibility is lost. What it promises must be there in the product. 40% 36.50% 23.50% OPINION OF RESPONDENTS ABOUT THE TRUTHFULNESS OF ADS Sometimes Deceptive Reliable Mostly Deceptive
  61. 61. P a g e | 61 INTERPERTATION Comparison Very Similar Similar Not Very Similar Not at all Similar Total 10% 25% 27.5% 37.5% 100% It is claimed that some ads offer not only a product but also a lifestyle. Advertisements provide picture of reality and define the kinds of people we could be and kinds of lives we could lead. The study reveals some favorable result in this regard where almost 35% people consider their lifestyle to be similar with that shown in the ads 27.5% are completely disagree with the above notion. Advertisers should therefore try to understand the target segment, their lifestyle, and their purchase considerations. They should show lifestyle in their ads related to the lifestyle of the target segments. So that a common man can associate himself with the product. 10% 25% 27.50% 37.50% 0% 5% 10% 15% 20% 25% 30% 35% 40% Very Similar Similar Not very Similar Not at all Similar COMPARISON OF RESPONDENTS LIFESTYLE WITH THAT SHOWN IN THE ADS
  62. 62. P a g e | 62 INTERPERTATION Necessity Yes No Total 70% 30% 100% In today‟s environment, where consumers have became so conscious about the products and advertisements, advertisers are facing difficulties in attracting the viewers. Therefore, advertisers are looking for more creative and innovative ideas to reach consumers in their attempt to capture their attention. One such way is the celebrities. It is evident from the study that 70% of respondents feel that necessity of celebrity in ads. They feel that celebrity‟s endorsement is required for such products like Soft Drinks, Cars, Premium range goods and Luxurious Items, and Suiting. Very Regularly 50% Often 16% Regularly 34% ADVERTISEMENTS VIEWING HABITS
  63. 63. P a g e | 63 INTERPERTATION Recall Yes No Total 90% 10% 100% To measure the advertising recall, the respondents were asked to point out, if they were able to recall any advertisement or punch line regarding any FMCG product. 90% of the respondents were able to recall the ads. They were able to recall the ads of different products such as –Soft Drinks, Soaps, Washing Powder and tea etc. Yes 90% No 10% ADVERTISING RECALL