Advertising

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ITM,VASHI
Advertising and Media Management
Biscuit industry in India- Parle
Arun Balkrishna Khedwal
2nd August 2014
Ref No: VAS2012XMBA25P001

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Chapter No
Topic details
Page No
1
Introduction - Advertising
3-32
o Overview, Definition, History & Developing an advertising program
o Social Effects of Advertising
o Types of Advertising Agencies & Agency Departments
o Top Advertising Companies of India
o Advertising Media Selection is the Process
o Advertising media scheduling
o What is an advertising appeal?
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Biscuits Industry India
33-41
o SWOT & PEST Analysis
o Government inactivate & Road ahead
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Parle Products Pvt Ltd
42- 50
o Introduction & Glorious History & Success of Parle-G
o Quality Commitment
o The Customer Confidence & Marketing
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Britannia Industries Limited
51- 53
o Company Profile, Global presence & Products
o Brand Category
5
Media Plan for Newly launched Biscuit
54-58
o Communication Objectives & Public relations
o Sales Promotion, Budget & Implementation Strategies
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Conclusion and Recommendation
58-59

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1. Advertising
1.1 Overview
Advertising—the use of paid media by a seller to communicate persuasive information about its products, services, or organization—is a potent promotional tool. Advertising takes on many forms (national, regional, local, consumer, industrial, retail, product, brand, institutional, etc.) designed to achieve a variety of objectives (awareness, interest, preference, brand recognition, brand insistence).
Advertising decision-making consists of objectives setting, budget decision, message decision, media decision, and ad effectiveness evaluation. Advertisers should establish clear goals as to whether the advertising is supposed to inform, persuade, or remind buyers. The factors to consider when setting the advertising budget are: stage in the product life cycle, market share, competition and clutter, needed frequency, and product substitutability. The advertising budget can be established based on what is affordable, as a percentage budget of sales, based on competitors’ expenditures, or based on objectives and tasks, and based on more advanced decision models that are available.
The message decision calls for generating messages, evaluating and selecting between them, and executing them effectively and responsibly. The media decision calls for defining the reach, frequency, and impact goals; choosing among major media types; selecting specific media vehicles; deciding on media timing; geographical allocation of media. Finally, campaign evaluation calls for evaluating the communication and sales effects of advertising, before, during, and after the advertising.
Sales promotion and public relations are two tools of growing impor¬tance in marketing planning. Sales promotion covers a wide variety of short-term incentive tools designed to stimulate consumer markets, the trade, and the organization’s own sales force. Sales promotion expenditures now exceed advertising expenditures and are growing at a faster rate. Consumer promotion tools include samples, coupons; cash refund offers, price packs, premiums, prizes, patronage rewards, free trials, product warranties, tie-in promotions, and point-of-purchase displays and demonstrations. Trade promotion tools include price-off, advertising and display allowances, free goods, push money, and specialty-advertising items. Business promotion tools include conventions, trade shows, contests, sweepstakes, and games. Sales promotion planning calls for establishing the sales promotion objectives, selecting the tools,
Chapter 1: Introduction

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developing, pretesting, and implementing the sales promotion program, and evaluating the results.
Marketing public relations (MPR) is another important communication/promotion tool. Traditionally, it has been the least utilized tool but is now recognized for its ability in building awareness and preference in the marketplace, repositioning products, and defending them. Broadly, MPR is those activities that support the ultimate sale of a product or service. Some of the major marketing public relations tools are news, speeches, events, public service activities, written material, audio-visual material, corporate identity, and telephone information services. MPR planning involves establishing the MPR objectives, choosing the appropriate messages and vehicles, and evaluating the MPR results.
1.2 Introduction
Marketing is dynamic, fascinating, challenging and exciting. The polices adopted by manufacturers to attain success in the marketing mix promotion aspect is viewed as a mean of implementing a communication strategy. The promotion is directed towards facilitating and enhancing specific products and brands. Thus promotion is most often intended to be a supporting component in a marketing mix. This does not mean that it is less important than the product of other marketing decision areas. Rather, promotion decisions must be integrated and coordinated with the rest of the marketing mix, so that it may effectively support an entire marketing mix strategy. The promotion mix consists of four basic elements:
Figure 1.1.1 Shows the ingredients of Promotion Mix.

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It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. In marketing, this is commonly known as "promotion". Promotion is all about companies communicating with customers. A business' total marketing communications programme is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools. In this revision note, we describe the four key elements of the promotional mix in more detail. It is helpful to define the four main elements of the promotional mix before considering their strengths and limitations.
Figure 1.1.2 The Promotional Mix (1) Advertising Any paid form of non-personal communication of ideas or products in the "prime media": i.e. television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform. The two basic aspects of advertising are the message (what you want your communication to say) and the medium (how you get your message across) (2) Personal Selling Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale".

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(3) Sales Promotion Providing incentives to customers or to the distribution channel to stimulate demand for a product. (4) Publicity The communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly. Otherwise known as "public relations" or PR.
Advantages and Disadvantages of Each Element of the Promotional Mix
Today the word ' Advertising ' is a very common term known to us. It figures in each of our lives every day. The term ' Advertising ' is derived from the Latin word ‘Advertere’ which means 'to turn the attention '. Definition: Advertising: American Marketing Association (AMA) defines advertising as, “Any paid form of non - personal presentation of ideas, goods or services by an identified sponsor ".

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Advertising:-
Definition:- Paid form of non-personal communication about an organization or its products that is transmitted to a target audience through a mass/broadcast medium.
Meaning of Advertising: - Advertising is promotion of a company’s product and services carried out primarily to drive sales of products and services but also to build a brand identity and communicate changes. Advertising is a good way to inform and persuade, whether the purpose is to sell coco cola worldwide or to get consumers in a developing nation to use birth control measures or to pay taxes.
Marketing management must make 4 decisions when developing an advertising program:-
Figure 1.4.1 Developing an advertising program
1. Setting Advertising Objective:-
An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.
Advertising objective can be classified by primary purpose-whether the aim is to inform, persuade or remind.
 Informative: - Used heavily when introducing new product category, objective is to build primary demand. Example: early launch of dvd’s
 Persuasive: - Objective is to build selective demand. Can be termed as comparative: a company directly or indirectly compares its brand with one or more other brands. Examples:- Cadbury tagline “meetha

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hain khana aaj pehli tareeekh hain”, whereas Nestlé’s munch tagline “khao bina tareek ke”.
 Reminder: - Important for mature products, helps to maintain customer relationship and keep consumers thinking about the product. Example:- coco cola
2. Setting Advertising Budget:-
A brand’s advertising budget often depends on its stage in product life cycle. New products typically need large advertising budgets to build awareness and gain consumer trial.
Market share also impacts the amount of advertising needed. Example:- for capturing the competitors market share or building market share, larger advertising spending is required.
Low share brands need more advertising.
At the end managers must rely large on judgement along with more quantitative analysis when setting advertising budget.
3. Developing Advertising Strategy:-
Creating Advertising Messages:-
No matter how big the budget is, advertising can succeed only if advertisement gains attention and is communicated well. It involves:-
 Message strategy: - first step to create effective advertising messages s to plan a message strategy i.e. to decide what general message will be communicated to consumers. It should be meaningful, must be believable and should be distinctive.
 Message execution: - creative team must find the best approach, style, tone, words and format for executing the message. Style can be musical (eg: Limca), endorsements (i10 by shahrukh khan), fantasy (axe), scientific evidence (Colgate). The tone of the message can be positive or humorous.
 Selecting Advertising Media:-
It involves:-
o Deciding on reach and frequency and its impact
o Choosing among the major media types
o Selecting specific media vehicles

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o Deciding on media timing,
4. Evaluating Advertising Effectiveness And Return on Investments:-
Advertising accountability and return on investments have become hot issues for most of the companies. Advertises must regularly evaluate two types of advertising results.
 Communication effects: - It tells whether the advertising media are communicating the advertising message well. For this pre and post evaluation of communication effects can be made.
 Profit and sales effect: - often harder to measure as they are effected by many other factors like product, price and availability. One way can be through comparison btw pat sales and profit with advertising expenditure.
Pros
 Flexibility allows you to focus on a small, precisely defined segment (school newspapers) or a mass market (baseball show = males, 35-50).
 Cost efficient-reach a large number at a low cost per person, allows the message to be repeated, and can improve public image.
 Allows for repeating the message-lets the buyer receive and compare the messages of various competitors.
 Very expressive, allows for dramatization.
 Also used to build a long term image of a product.
 Trigger quick sales, sears advertising a weekend sale.
Cons
 Absolute $ outlay very high, make a national TV ad. Approx $150,000, local ad. $60,000. 30 second spot, superbowl $1.1 m 1995
 Rarely provides quick feedback, or necessarily any feedback
 Less persuasive than personal selling
 Audience does not have to pay attention
 Indirect feedback (without interactivity)
Scope and Importance of Advertising
Advertisements are important for:
1. Standardized products
2. Products aimed at large markets
3. Products that have easily communicated features
4. Products low in price
5. Products sold through independent channel members and/or are new.
Broadcast Ad spending is at an all time high due to heavy competition in the:

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 Computer industry
 Telecommunications industry
 Auto industry
Whenever severe competition between marketers, introducing new products etc. Even with evolution of direct marketing, and interactive media.
Nature of Advertising
 Used by many types of organizations including churches, universities, civic groups and charities, politicians!!
 Need to consider the following issues:
 Does the product possess unique, important features to focus on unique selling point (USP)
 Are the hidden qualities important to the buyers
 Is the general demand trend for the product adequate
 Is the market potential for the product adequate
 Is the competitive environment favourable
 Is the organization able and willing to spend the required money to launch an
Use of Advertising
Classic distinctions
Promoting Products or Organizations
 Institutional advertising promotes organizations, images, ideas or political issues. i.e. beer company sponsors responsible drinking to promote the company image.
 Philip Morris advertising
 Product advertising promotes goods and services.
Stimulating Primary and Selective Demand
 First to introduce product needs to stimulate primary demand. Pioneer advertising informs people about the product (introduction stage of the product life cycle). Do not emphasize the brand name.
 Can also be used to stimulate the demand for a product group, ie beef council.
 For selective demand, advertisers use competitive advertising, brand uses, benefits not available with other brands. Can use comparative advertising, 1988 trademark law revision act, cannot misinterpret. American Express et al.
Handout...When Visa and American Express...
 Deals with the competitive advertising between visa and amex
 At&t true rewards...using new kind of math/use former mci customers mci friends and family...hammer advantages of friends ff..."put it in writing"...Sprint 10 cents a minute

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Offsetting Competitors Advertising
 Defensive advertising, offset to lessen the effect of competitors advertising. Used in fast-food industry, extremely competitive consumer products markets.
Making salespersons more effective
 Tries to presell product to buyers by informing them of uses, features and benefits- encourage them to contact dealers etc. Cars...bring to retail store.
Increasing use of product
 Consumer can consume only so much of a product, this limits absolute demand. May need to convince the market to use the product in more than one way.
Reminding and reinforcing customers
 Reminder, need to keep company/product name at the forefront of consumers' minds in the competitive marketplace. Reinforcement prevents cognitive dissonance.
Reducing Sales fluctuations
 Increase sales during slow periods will help increase production efficiency, ie advertising reduced prices of lawn mowers in the winter months (reduce inventory costs). Coupons for pizza only Mon-Thurs.
1.4 Social Effects of Advertising
A discussion of the social issues in advertising covers the means of advertising as well as its effects. The points raised below include questions of manipulation of consumers against their will.
1. Deception / Deceptive advertising :
There should not be misrepresentation to make it appear that it is true. Some advertisements may be deceptive, although technically or literally it may not be true. The claim may be untrue in the light of prevailing practises.
2. Manipualtion :
Critics of advertising feels that the freedom of choice of consumers is restricted by the power of advertising since it can manipulate buyers into making a decision against their will or interests.
3. Taste :
Some critics feel that advertising has adverse effects as creative exposition may not always be in good taste.

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4. Materailism:
Advertising is accused of promoting materialism by inducing people to attach too much importance to the material aspects of life.
5. Promoting stereo types :
By portraying certain individuals in certain roles, advertising promotes stereo types. Women are usually portrayed as housewife’s or mothers.
6. Advertising to children:
It is argued that children are more susceptible to deception, lack of perceptual defences that adults have and cannot objectively evaluate advertisement. Thus there is substantial scope for manipulation of children specifically through TV advertising.
7. Advertising creates insecurity :
Advertising can make people worry about tooth decay, body odour, lack of self- confidence and many other ills while claiming that the advertised products will reduce these worries.
An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients. an ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. an agency can also handle overall marketing and branding strategies and sales promotions for its clients. typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce an advertising campaign.
1.5 History
George Reynell, an officer at the London gazette, set up what is believed to be the first advertising agency in London, United Kingdom, in 1812. This remained a family business until 1993, as 'Reynell & son', and is now part of the tmp worldwide agency (UK and Ireland) under the brand tmp reynell.[citation needed] another early advertising agent in London was charles barker, and the firm he established traded as 'barkers' until 2009 when it went into administration.
Volney B. Palmer opened the first American advertising agency, in Philadelphia in 1850. This agency placed ads produced by its clients in various newspapers
Produce "photographs, ambrotypes and daguerreotypes. His ads were the first whose typeface and fonts were distinct from the text of the publication and from that of other advertisements. At that time all newspaper ads were set in agate and only agate. His use of larger distinctive fonts caused a sensation. Later that same year Robert Bonner ran the first full-page ad in a newspaper.

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In 1864, William James Carlton began selling advertising space in religious magazines. James Walter Thompson joined this firm in 1868. Thompson rapidly became their best salesman, purchasing the company in 1877 and renaming it the James Walter Thompson Company, which today is the oldest American advertising agency. Realizing that he could sell more space if the company provided the service of developing content for advertisers, Thompson hired writers and artists to form the first known creative department in an advertising agency. He is credited as the "father of modern magazine advertising" in the us.
1.6 Types of Advertising Agencies:-
Ad agencies come in all sizes and include everything from one or two-person shops (which rely mostly on freelance talent to perform most functions), small to medium sized agencies, large independents such as smart and taxi, and multi-national, multi- agency conglomerates such as Omnicom group, wpp group, publicis, interpublic group of companies andhavas.
1. Limited-Service Advertising Agencies:-
Some advertising agencies limit the amount and kind of service they offer. Such agencies usually offer only one or two of the basic services. For example, although some agencies that specialize in "creative" also offer strategic advertising planning service, their basic interest is in the creation of advertising. Similarly, some "media- buying services" offer media planning service but concentrate on media buying, placement, and billing.
When the advertiser chooses to use limited-service advertising agencies, it must assume some of the advertising planning and coordination activities that are routinely handled by the full-service advertising agency. Thus, the advertiser who uses limited-service agencies usually takes greater responsibility for the strategic planning function, gives greater strategic direction to specialist creative or media agencies, and exercises greater control over the product of these specialized agencies, ensuring that their separate activities are well-ordered and -coordinated.
2. Specialist Advertising Agencies:-
In addition to the full-service, general-line advertising agencies, there are also agencies that specialize in particular kinds of advertising: recruitment, help-wanted, medical, classified, industrial, financial, direct-response, retail, yellow pages, theatrical/entertainment, investment, travel, and so on.
Specialization occurs in such fields for a variety of reasons. Often, as in recruitment advertising, for example, specialized media or media uses are involved that require knowledge and expertise not ordinarily found in a general-line agency. In other cases, such as medical or industrial advertising, the subject is technical and requires that writers and artists have training in order to write meaningful advertising messages about it.

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Such specialist advertising agencies are also usually "full-service," in that they offer all the basic advertising agency services in their area of specialization plus other, peripheral advertising services related to their area of specialization.
3. In-house advertising agencies:-
Some advertisers believe that they can provide such advertising services to themselves at a lower cost than would be charged by an outside agency.
4. Interactive Agencies:-
Interactive agencies may differentiate themselves by offering a mix of web design/development, search engine marketing, internet advertising/marketing, or e- business/e-commerce consulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the internet. Offering a wide range of services, some of the interactive agencies grew very rapidly, although some have downsized just as rapidly due to changing market conditions. Today, the most successful interactive agencies are defined as companies that provide specialized advertising and marketing services for the digital space. The digital space is defined as any multimedia-enabled electronic channel that an advertiser's message can be seen or heard from. The 'digital space' translates to the internet, kiosks, cd-roms, dvds, and lifestyle devices (ipod, psp, and mobile). Interactive agencies function similarly to advertising agencies, although they focus solely on interactive advertising services. They deliver services such as strategy, creative, design, video, development, programming (flash and otherwise), deployment, management, and fulfilment reporting. Often, interactive agencies provide: digital lead generation, digital brand development, interactive marketing and communications strategy, rich media campaigns, interactive video brand experiences, web 2.0 website design and development, e-learning tools, email marketing, seo/sem services, ppc campaign management, content management services, web application development, and overall data mining & roi assessment.
The recent boost in the interactive agencies can also be attributed to the rising popularity of web-based social networking and community sites. The creation of sites such as Myspace, facebook and YouTube have sparked market interest, as some interactive agencies have started offering personal and corporate community site development as one of their service offerings. It still may be too early to tell how agencies will use this type of marketing to monetize client roi, but all signs point to online networking as the future of brand marketing and interactive being the core of brand's communication and marketing strategy.
Due to the social networking explosion, new types of companies are doing reputation management. This type of agency is especially important if a company needs online damage control. If a customer becomes disgruntled, it is very easy to damage a company's reputation via social networking sites. Because of how rapidly the information spreads, it becomes absolutely necessary to address any rumors, gossip or other negative online press immediately.

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5. Search Engine Agencies:-
Lately, pay per click (ppc) and (seo) search engine optimization firms have been classified by some as 'agencies' because they create media and implement media purchases of text based (or image based, in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency', however with the creation of ads (either text or image) and media purchases; they do technically qualify as 'advertising agencies'.
6. Social Media Agencies:-
Social media agencies specialize in promotion of brands in the various social media platforms like blogs, social networking sites, q&a sites, discussion forums, microblogs etc. The two key services of social media agencies are:
 Social media marketing
 online reputation management
7. Healthcare Communications Agencies:-
Healthcare communications agencies specialize in strategic communications and marketing services for the healthcare and life science industries. These agencies distinguish themselves through an understanding of the strict labelling and marketing guidelines mandated by the U.S. Food and drug administration (FDA) and industry group guidelines, most notably advanced and pharma.
Notable examples include: dudnyk
8. Medical Education Agencies:-
Medical education agencies specialize in creating educational content for the healthcare and life science industries. These agencies typically specialize in one of two areas:
 Promotional education - education and training materials tied to the promotion of a given product or therapy
 Continuing medical education - accredited education and training materials created for continuing physician and medical professional education.
9. Other Agencies:-
While not advertising agencies, enterprise technology agencies often work in tandem with advertising agencies to provide a specialized subset of services offered by some interactive agencies: web 2.0 website design and development, content management systems, web application development, and other intuitive technology solutions for the web, mobile devices and emerging digital platforms.
The student-run advertising agency model, which mainly operates out of university classrooms or as a student groups, provides free advertising services to clients in exchange for the educational opportunity.

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1.7 Agency Departments
1. Creative Department
The people who create the actual ads form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-by-project basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience. Although copywriters have the word "write" in their job title, and art directors have the word "art", one does not necessarily write the words and the other draw the pictures; they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). Creative departments frequently work with outside design or production studios to develop and implement their ideas. Creative departments may employ production artists as entry-level positions, as well as for operations and maintenance. The creative process forms the most crucial part of the advertising process.
2. Account Services
Agencies appoint account executive to liase with the clients. The account executives need to be sufficiently aware of the client’s needs and desires that can be instructed to the agency’s personnel and should get approval from the clients on the agency’s recommendations to the clients. Creativity and marketing acumen are the needed area of the client service people. They work closely with the specialists in each field.
3. Media Services
The media services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can.
4. Production
Without the production department, the ads created by the copywriter and art director would be nothing more than words and pictures on paper. The production department, in essence, ensures the tv commercial or print ad, etc., gets produced. They are responsible for contracting external vendors (directors and production companies in the case of tv commercials; photographers and design studios in the case of the print advertising or direct mailers). Producers are involved in every aspect of a project, from the initial creative briefing through execution and delivery. In some agencies, senior producers are known as "executive producers" or "content architects".
Modern agencies might also have a media planning department integrated, which does all the spot's planning and placements

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5. Other departments and personnel
In small agencies, employees may do both creative and account service work. Larger agencies attract people who specialize in one or the other, and indeed include a number of people in specialized positions: production work, internet advertising, planning, or research, for example.
An often forgotten, but integral, department within an advertising agency is traffic. The traffic department regulates the flow of work in the agency. It is typically headed by a traffic manager (or system administrator). Traffic increases an agency's efficiency and profitability through the reduction of false job starts, inappropriate job initiation, incomplete information sharing, over- and under-cost estimation and the need for media extensions. In small agencies without a dedicated traffic manager, one employee may be responsible for managing workflow, gathering cost estimates and answering the phone, for example. Large agencies may have a traffic department of five or more employees.
Advertising interns are typically university juniors and seniors who are genuinely interested in and have an aptitude for advertising. Internships at advertising agencies most commonly fall into one of five areas of expertise: account services, interactive, media, public relations and traffic.
An internship program in account services usually involves fundamental work within account management as well as offering exposure to other facets of the agency. The primary responsibility of this position is to assist account managers. Functions of the account management intern may include:
 research and analysis: gathering information regarding industry, competition, customer product or service; as well as presenting findings in verbal/written form with recommendations
 involvement in internal meetings and, when appropriate, client meetings
 assisting account services in the management of creative projects
Interns often take part in the internal creative process, where they may be charged with creating and managing a website as well as developing an advertising campaign. Hands on projects such as these help interns learn how strategy and well- developed marketing are essential to a sound advertising and communications plan.
During their internship, the intern will experience the development of an ad, brochure and broadcast or communications project from beginning to end. During the internship, the intern should be exposed to as much as possible within the agency and advertising process.

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1.8 Top Advertising Companies of India
1. Ogilvy and Mather:
This is one of the leading advertising company in India. This organization believes that devotion to the brand defines the profile of their company. This company has offices across the globe. The objective of the company is to build brands. I t is a subsidiary of wpp group plc. The headquarter of the company is in New York.
2. J Walter Thompson India:
One of the most popular company in the advertising industry is j Walter Thompson India. Their objective is to make advertising a part of the life of the consumers. This is also world's best advertising brand with about 200 offices in 90 countries. This company is the first one to introduce pioneer careers in ad for women, sex-appeal ads and also produced the first ever sponsored -TV program.
3. Mudra communication Pvt Ltd:
This is one of the renowned advertising company of India. This advertising organization was founded in the year 1980 at Mumbai. Recently the ad company declared the addition of public relations, rural marketing, events etc. The head office of the company is in Bombay area.
4. Fcb-Ulka advertising ltd:
One of the best company in India in the advertising arena is fcb-ulka advertising ltd. In us, this advertising company ranks third and tenth in the world having about 188 offices in 102 countries. Their aim is to reflect the needs of the brand and not the personality of the brand. It has about 500 professionals and no prima donnas.
5. Rediffusion-dy&r:
This advertising company of India has made a benchmark in the field of creativity. India’s 5th largest advertising company is rediffusion. This advertising agency offers a wide array of integrated PR services for external and internal communications. The primary strength of the company lies in the media relations.
6. McCann-Erickson India ltd:
The prominent name among the best advertising companies of India is McCann- Erickson India ltd. They define work in relation to the impact that advertising has on the lives of masses. The testimony of the company in which it firmly believes is the campaign of coca -cola-'thanda matlab coca cola'.
7. RK Swamy/BBDO Advertising ltd:
It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973, this advertising reached great heights. This is

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also India’s no.1 research company in the market sector and is fully run by Indians. Brand equity is an integral part of the company.
8. Grey Worldwide (i) Pvt ltd:
A significant name in India in the world of advertising agencies is grey worldwide (i) Pvt ltd. The company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of grey worldwide. the company specializes in advertising and marketing services.
9. Leo Burnett India Pvt ltd :
It has a significant presence in about 96 offices in 10 countries. this advertising agency was awarded the 'worldwide agency of the year' in 2004.they are proficient in explaining how a single image is worth thousand words and can break the barriers of language but not at the cost of the ad's emotional power.
10. Contract advertising India ltd:
This advertising company of India is one of the leading advertising agencies in india. it is one-to-one customer lifecycle management advertising agency. it was founded in 1992 and is situated in Mumbai. it offers a wide range of services like online marketing and strategy and many others.
1.9 Advertising Media Selection is the Process
Choosing the most cost-effective media for advertising, to achieve the required coverage and number of exposures in a target audience.
Performance
This is typically measured on two dimensions: frequency and spread.
Frequency:-
To maximize overall awareness, the advertising must reach the maximum number of the target audience. There is a limit for the last few per cent of the general population who don't see the main media advertisers use. These are more expensive to reach. The 'cumulative' coverage cost typically follows an exponential curve. Reaching 90 per cent can cost double what it costs to reach 70 per cent, and reaching 95 per cent can double the cost yet again. In practice, the coverage decision rests on a balance between desired coverage and cost. A large budget achieves high coverage—a smaller budget limits the ambitions of the advertiser.
1. Frequency: - even with high coverage, it is insufficient for a target audience member to have just one 'opportunity to see' (ots) the advertisement. In traditional media, around five ots are believed required for a reasonable impact. To build attitudes that lead to brand switching may require more. To achieve five ots, even in only 70 per cent of the overall audience, may require 20 or 30 peak-time transmissions of a commercial, or a significant number of insertions of press

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advertisements in the national media. As these figures suggest, most consumers simply don't see the commercials that often (whereas the brand manager, say, sees every one and has already seen them many times before their first transmission, and so is justifiably bored).
The life of advertising campaigns can often extend beyond the relatively short life usually expected. Indeed, as indicated above, some research shows that advertisements require significant exposure to consumers before they even register. As David Ogilvy long ago recommended, "If you are lucky enough to write a good advertisement, repeat it until it stops selling. Scores of good advertisements have been discarded before they lost their potency."
Spread:-
More sophisticated media planners also look at the 'spread' of frequencies. Ideally all of the audience should receive the average number of ots. Those who receive fewer are insufficiently motivated, and extra advertising is wasted on those who receive more. It is, of course, impossible to achieve this ideal. As with coverage, the pattern is weighted towards a smaller number—of heavy viewers, for example—who receive significantly more ots, and away from the difficult last few percent. However, a good media buyer manages the resulting spread of frequencies to weigh it close to the average, with as few audience members as possible below the average.
Frequency is also complicated by the fact that this is a function of time. A pattern of 12 ots across a year may be scarcely noticed, whereas 12 ots in a week is evident to most viewers. This is often the rationale for advertising in `bursts' or `waves' (sometimes described as `pulsing'). This concentrates expenditure into a number of intense periods of advertising, spread throughout the year, so brands do not remain uncovered for long periods.
Media buyers:-
In the end, it is the media buyers who deliver the goods; by negotiating special deals with the media owners, and buying the best parcels of `slots' to achieve the best cost (normally measured in terms of the cost per thousand viewers, or per thousand household `impressions', or per thousand impressions on the target audience. The "best cost" can also be measured by the cost per lead, in the case of direct response marketing). The growth of the very large, international, agencies has been partly justified by their increased buying power over the media owners.
1.10 Types of media and their characteristics
In terms of overall advertising expenditures, media advertising is still dominated by press and television, which are of comparable size (by value of 'sales'). Posters and radio follow some way behind, with cinema representing a very specialist medium.
1. Press
In the United Kingdom, spending is dominated by the national and regional newspapers, the latter taking almost all the classified advertising revenue. The

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magazines and trade or technical journal markets are about the same size as each other, but are less than half that of the newspaper sectors.
a) National Newspapers: - These are still traditionally categorized, from the media buyer's viewpoint, on the basis of class; even though this is of declining importance to many advertisers. `Quality' newspapers for example, tend to have a readership profile of in excess of 80 per cent of abc1 readers, though it is more difficult to segment readerships by age categories. They are obviously best matched to national advertisers who are happy with black and white advertisements, although colour is now available - and high-quality colour is available in some supplements. National newspapers in general, and the quality press in particular, are supposed to carry more `weight' with their readers (since they are deliberately read, not treated just as `background'); so that an advertisement placed in one is taken more seriously than a comparable one in a regional newspaper, although it may be more transitory (since it is not kept for reference as some local weeklies may be).
b) Regional Newspapers: - These may be dailies, which look and perform much like the nationals, or weeklies, which are more specialized, though they dominate the classified advertising market. There is usually much more advertising competing for the reader's attention, and the weekly newspaper is now largely the province of the 'free-sheet'—typically delivered free to all homes in a given area—which earn revenue from their high proportion of advertising, and accordingly having the least `weight' of all.
Advertisements in newspapers, referred to as ìnsertions', are usually specified as so many centimetres across so many columns. In these days of metrication, a multiple of 3 cm is used as the standard measure in the UK, instead of the previously traditional inch. Thus, a `30 cm double' is an advertisement that is 30 cm long, down the page, and across two columns of type; where the width of columns varies from paper to paper - an important consideration when you are having the printing `blocks' made. The position is also often specified; so that, for example, an advertiser of a unit trust will probably pay extra to make certain that the insertion is next to the financial pages.
2. Magazines: - These offer a more selective audience (which is more ìnvolved', with the editorial content at least). Magazines are traditionally categorized into general interest, special interest and trade or technical. The advertiser will, therefore, be able to select those that match the specific profile demanded by the advertising strategy. The weight, or àuthority', of magazines is correspondingly high, and they may be kept for a considerable time for use as reference - and passed to other readers (so that `readership' figures may be much higher than `circulation' figures). They can offer excellent colour printing; but, again, the clutter of many competing advertisements may reduce the impact of the advertiser's message.
3. Trade and Technical: - in the trade and professional fields there are now a significant number of 'controlled circulation' magazines. These are like the `free press', in that they are delivered free to the recipients; but, at least in theory, those recipients should have been carefully screened to ensure that they are of value to the advertisers - and the circulation can, if properly controlled, represent a wide cross-section of the buyers, and influencers, in

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the advertiser's target audience. The rates for positioning are usually more varied than for newspapers, with premiums being paid for facing editorial matter and, of course, for colour.
4. Television
This is normally the most expensive medium, and as such is generally only open to the major advertisers, although some regional contractors offer more affordable packages to their local advertisers. It offers by far the widest coverage, particularly at peak hours (roughly 7.00—10.30 p.m.) And especially of family audiences. Offering sight, sound, movement and colour, it has the greatest impact, especially for those products or services where a 'demonstration' is essential; since it combines the virtues of both the 'story-teller' and the `demonstrator'. To be effective, these messages must be simple and able to overcome surrounding family life distractions—especially the TV remote.
Television is relatively unselective, and offers relatively poor coverage of upper class and younger age groups. Being regionally based, however, it can be used for regional trials or promotions (including test markets).
The price structures can be complicated, with the 'rate card' (the price list) offering different prices for different times throughout the day. This is further complicated by a wide range of special promotional packages and individual negotiations. This complication provides work for specialist media buyers.
5. Satellite Television: -
Long believed the medium of the future as once was cable television— has largely fulfilled that expectation in the us. It is now an important feature in other countries, though terrestrial 'Freeview' broadcasting poses a challenge.
6. Posters
This is something of a specialist medium, which is generally used in support of campaigns using other media. On the other hand, some advertisers, particularly those in brewing and tobacco, have successfully made significant use of the medium; although, to achieve this, they have developed the requisite expertise to make efficient use of its peculiarities.
The main roadside posters are described in terms of how the poster is physically posted on to them (pasted on, one sheet at a time, by a bill-poster); as 16 sheet (the main, 10' x 6'8" size in vertical format) and 48 sheet (10' x 20', in horizontal/landscape format). Those smaller ones, seen in pedestrian areas, are typically four sheets (5' x 3'4"). The best sites are typically reserved for the long-term clients, mainly the brewers and tobacco companies (hence one reason for their success in use of the medium), so that new users may find this a relatively unattractive medium.
This industry is also known as out of home media. However, this category is not limited to posters and billboards. It may involve the use of media space in airports,

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malls, convenience stores, etc., and it could even tie into guerrilla marketing, a non- traditional approach to advertising that may involve grassroots tactics (e.g. posting branded stickers or static clings to buildings, restrooms, and other surfaces in metropolitan areas).
In Malaysia there are numerous sizes from 10'x40', 20'x60', 20'x80' to 40'x60'. In both formats. Landscape and portrait. Current outdoor media owners include semi jaya and big tree.
7. Radio
Radio advertising has increased greatly in recent years, with the granting of many more licenses. It typically generates specific audiences at different times of the day—adults at breakfast, housewives, and commuters during rush hours. It can be a cost-effective way of reaching these audiences—especially since production costs are much cheaper than television, though the lack of visual elements may limit the message.
8. Cinema
Though national audience numbers are down, this may be the most effective medium for extending coverage to younger age groups, since the core audience is 15 to 24.
9. Internet/web advertising
This rapidly growing marketing force borrows much from the example of press advertising, but the most effective use—adopted by search engines—is interactive.
10. Mobile advertising
Personal mobile phones have become an attractive advertising media to network operators, but are relatively unproven and remain in media buyers' side-lines.
Audience research:-
Identifying the audience for a magazine or newspaper, or determining who watches television at a given time, is a specialized form of market research, often conducted on behalf of media owners.
Press figures are slightly complicated by the fact that there are two measures: readership (total number of readers of a publication, no matter where they read it), and circulation (the number of copies actually sold, which is mostly independently validated).
Advertising-free media:-
Advertising-free media refers to media outlets whose output is not funded or subsidized by the sale of advertising space. It includes in its scope mass media entities such as websites, television and radio networks, and magazines.

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The public broadcasters of a number of countries air without commercials. Perhaps the best known example of this is the United Kingdom’s public broadcaster, the BBC, whose domestic networks do not carry commercials. Instead, the BBC, in common with most other public broadcasters in Europe, is funded by a television licence fee levied on the owners of all television sets.
A 2006 report by the senate of Canada suggested that the country's public broadcaster, the Canadian broadcasting corporation, be funded sufficiently by the federal government so that it could air without any advertising.
1.11 Advertising media scheduling
Scheduling refers to the pattern of advertising timing, represented as plots on a yearly flowchart. These plots indicate the pattern of scheduled times advertising must appear to coincide with favourable selling periods. The classic scheduling models are continuity, flighting and pulsing.
Continuity:-
This model is primarily for non-seasonal products, yet sometimes for seasonal products. Advertising runs steadily with little variation over the campaign period.
There may be short gaps at regular intervals and also long gaps—for instance, one ad every week for 52 weeks, and then a pause. This pattern of advertising is prevalent in service and packaged goods that require continuous reinforcement on the audience for top of mind recollection at point of purchase.
Advantages:-
 Works as a reminder
 Covers the entire purchase cycle
 Cost efficiencies in the form of large media discounts
 Positioning advantages within media
Program or plan that identifies the media channels used in an advertising campaign, and specifies insertion or broadcast dates, positions, and duration of the messages.
Flighting (or "bursting"):-
In media scheduling for seasonal product categories, flighting involves intermittent and irregular periods of advertising, alternating with shorter periods of no advertising at all. For instance, all of 2000 target rating pioneered in a single month, "going dark" for the rest of the year. Halloween costumes are rarely purchased all year except during the months of September and October.

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Advantages:-
 Advertisers buy heavier weight than competitors for a relatively shorter period of time
 Little waste, since advertising concentrates on the best purchasing cycle period
 Series of commercials appear as a unified campaign on different media vehicles
Pulsing:-
Pulsing combines flighting and continuous scheduling by using a low advertising level all year round and heavy advertising during peak selling periods. Product categories that are sold year round but experience a surge in sales at intermittent periods are good candidates for pulsing. For instance, under-arm deodorants, sell all year, but more in summer months.
Advantages:-
 Covers different market situations
 Advantages of both continuity and flighting possible
An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame.
The critical part of making an advertising campaign is determining a champion theme as it sets the tone for the individual advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that will be communicated in the promotional activities. The campaign themes are usually developed with the intention of being used for a substantial period but many of them are short lived due to factors such as being ineffective or market conditions and/or competition in the marketplace and marketing mix.
The goal of advertising is to cost-effectively reach a large audience and attract customers. If done correctly, advertising can enhance the success of your business. Here are 10 advertising tips to pay attention to:
1. Go after your target audience: - An advertising campaign should be geared to your niche market. It is a common mistake to create generic ads that do not speak the language or grab the attention of your potential customers. For more information, read how to identify and reach niche markets for your business.
2. Highlight your competitive advantage: - One of the keys to all advertising is to accentuate the pros of your company, those factors that give you your competitive edge. Too many ads are clever but fail to sell the benefits of the product or service.
3. Establish an image: - You can recognize the McDonald’s arches while whizzing by on the highway. Likewise, there are plenty of products that you recognize by their packaging or logo. Image counts when it comes to

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advertising and promoting your business. Too many advertisers do not work to build a consistent image. Check out three brand identity myths that will bring your business down for additional issues to avoid.
4. You have to spend money to make money: - There are ways to save money, but typically advertising is not the place to cut corners. It will affect sales, and that affects the bottom line. Successful advertising may cost some money, but that is because it works. Check out more bang for your advertising buck for cost-cutting tips that won't cut your goals.
5. Advertise in the right places: - Your favourite magazine, radio station, or even television program might not be a favourite of your audience. Know what they read, watch, and listen to, and advertise in media that reaches your target market.
6. Don't allow your budget to run your advertising campaign: - If you budget $5,000 per month for advertising, you've made it very easy from a bookkeeping perspective. However, if like most businesses you have seasonal highs and lows, you are spending too much money advertising during down times and not enough when you want to attract customers. Too many entrepreneurs do not budget according to their seasonal advertising needs.
7. Diversify: - It is all too common for business owners to choose the best place to advertise based on price and potential rate of returns and then stop. As is the case with investing, you do not want to put all of your eggs in one basket. Spread your advertising dollars around.
8. Don't try to be everything to everyone: - No product or service will appeal to everyone. Many business owners, including corporate executives, try to come up with ways to reach every market. Typically, this does not work. It can spell disaster for small businesses, who cannot afford to spread themselves too thin. Therefore, find your market and be everything you can be to that audience.
9. Test your ads in advance: - If you have the time or money to invest in focus groups, you should test your ads on other people. Do they understand and accept the message that you are trying to convey? For further information, read focus groups: how they can work for your small business. There are other less-expensive ways to test your ads as well: questionnaires, for example. The article creating questionnaires for gathering market research can be helpful.
10. Monitor your ads: - It is very easy to ask new customers or clients where they heard about you. As simple as this is, many entrepreneurs do not bother to do so. It is advantageous to know which ads generate business.
A wise man once said, "The person who saves money by not advertising is like the man who stops the clock to save time." in today's fast-paced, high-tech age, businesses have to use some form of advertising to make prospects aware of their products and services.
Even a famous company like Coca-Cola continually spends money on media advertising to support recognition of their products. Last year Coca-Cola spent more than $150 million to keep its name in the forefront of the public's eye. So the question isn't whether or not you can afford to advertise, you simply must if you want your business to succeed.

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Some questions you should consider before buying ads are (small business advertising marketing media):
1. What marketing media is the best to use?
2. How important is creativity?
3. Is there a way to buy space and time that will stretch my advertising budget?
When it comes to advertising, a lot of people really don't know what they want, where to get it or what to do with it after they have it. This guide will help you learn to determine what type of advertising media is best for you, and learn to identify guidelines you can use to obtain the advertising exposure you need. It will help you identify ways to make your advertising more cost efficient.
Advertising is an investment in your business's future. And like any investment, it's important to find out as much as you can before you make a decision. You'll be able to use this guide as a reliable reference tool often in the months and years to come.
1.12 Advertising media generally include
a. Television
b. Radio
c. Newspapers
d. Magazines (consumer and trade)
e. Outdoor billboards
f. Public transportation
g. Yellow pages
h. Direct mail
i. Specialty advertising (on items such as matchbooks, pencils, calendars, telephone pads, shopping bags and so on)
j. Other media (catalogues, samples, hand-outs, brochures, newsletters and so on)
When comparing the cost and effectiveness of various advertising media, consider the following factors:
 Reach: - Expressed as a percentage, reach is the number of individuals (or homes) you want to expose your product to through specific media scheduled over a given period of time.
 Frequency: - Using specific media, how many times, on average, should the individuals in your target audience be exposed to your advertising message? It takes an average of three or more exposures to an advertising message before consumers take action.
 Cost Per Thousand: - How much will it cost to reach a thousand of your prospective customers (a method used in comparing print media)? To determine a publication's cost per thousand, also known as cpm, divide the cost of the advertising by the publication's circulation in thousands.
 Cost Per Point: - How much will it cost to buy one rating point for your target audience, a method used in comparing broadcast media. One rating point

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equals 1 percent of your target audience. Divide the cost of the schedule being considered by the number of rating points it delivers.
 Impact: - Does the medium in question offer full opportunities for appealing to the appropriate senses, such as sight and hearing, in its graphic design and production quality?
 Selectivity: - To what degree can the message be restricted to those people who are known to be the most logical prospects?
Reach and frequency are important aspects of an advertising plan and are used to analyse alternative advertising schedules to determine which produce the best results relative to the media plan's objectives.
Calculate reach and frequency and then compare the two on the basis of how many people you'll reach with each schedule and the number of times you'll connect with the average person. Let's say you aired one commercial in each of four television programs (a, b, c, d), and each program has a 20 rating, resulting in a total of 80 gross rating points. It's possible that some viewers will see more than one announcement--some viewers of program a might also see program b, c, or d, or any combination of them.
For example, in a population of 100 TV homes, a total of 40 are exposed to one or more TV programs. The reach of the four programs combined is therefore 40 percent (40 homes reached divided by the 100 TV-home population).
Many researchers have charted the reach achieved with different media schedules. These tabulations are put into formulas from which you can estimate the level of delivery (reach) for any given schedule. A reach curve is the technical term describing how reach changes with increasing use of a medium. The media salespeople you work with or your advertising agency can supply you with these reach curves and numbers.
Now let's use the same schedule of one commercial in each of four tv programs (a, b, c, d) to determine reach versus frequency. In our example, 17 homes viewed only one program, 11 homes viewed two programs, seven viewed three programs, and five homes viewed all four programs. If we add the number of programs each home viewed, the 40 homes in total viewed the equivalent of 80 programs and therefore were exposed to the equivalent of 80 commercials. By dividing 80 by 40, we establish that any one home was exposed to an average of two commercials.
To increase reach, you'd include additional media in your plan or expand the timing of your message. For example, if you're only buying "drive time" on the radio, you might also include some daytime and evening spots to increase your audience. To increase frequency, you'd add spots or insertions to your existing schedule. For example, if you were running three insertions in a local magazine, you'd increase that to six insertions so that your audience would be exposed to your ad more often.
Gross rating points (grps) are used to estimate broadcast reach and frequency from tabulations and formulas. Once your schedule delivery has been determined from your reach curves, you can obtain your average frequency by dividing the grps by

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the reach. For example, 200 grps divided by an 80 percent reach equals a 2.5 average frequency.
Frequency is important because it takes a while to build up awareness and break through the consumer's selection process. People are always screening out messages they're not interested in, picking up only on those things that are important to them. Repetition is the key word here. For frequency, it's much better to advertise regularly in small spaces than it is to have a one-time expensive advertising extravaganza.
1.13 Which Type of Advertising is best?
The best type of advertising depends on the business or organization and its particular needs. If a company needs mass-market exposure and has the capital, television advertising is probably a good fit. For a local company on a budget, a customer referral program to stimulate word of mouth might be the best option. The best advertising campaigns typically involve several forms of media to effectively gain maximum exposure.
What is an advertising appeal?
An advertising appeal refers to the approach used to attract the attention of consumers and/or to influence their feelings toward the product, service, or cause. It's something that moves people, speaks to their wants or need, and excites their interest. Often it is the underlying content of the advertisement; think of it as a “movie script”. Don’t confuse this with executional framework that will be another topic.
Deciding on an Advertising Appeal:-
When you all are deciding on a direction for your submissions, review the Creative Brief (specifically objectives section) for tone, the nature of the product, the preferences of the client (very important). Most importantly though, use your common sense and gut feelings. There are two major types of appeals. They are:
1. Emotional
2. Rational
1. Emotional Appeal
This relates to the customers’ social and/or psychological needs for purchasing a product or service. This appeal is so effective because many consumers’ motives for purchase decisions are emotional. Many advertisers believe an emotional appeal to

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work better at selling brands that do not differ markedly from competing brands. Within the emotional appeal, there are two subsets - the personal and the social. These are made up of:
Personal: -
 Safety, Security, Fear, Love, Affection, Humor, Happiness, Joy, Nostalgia, Sentiment, Excitement, Arousal/stimulation, Sorrow/grief, Pride, Achievement/accomplishment, Self-esteem, Actualization, Pleasure, Ambition, Comfort
Social: -
 Recognition, Status, Respect, Involvement, Embarrassment, Affiliation/belonging, Rejection, Acceptance, Approval
 So, a little more detail on some of the important Personal Appeals...
Fear Appeal:-
 Increases viewer interest in the ad and the persuasiveness of the ad.
 Used with health and beauty products, idea marketing, insurance.
 Most experts believe that a moderate level of fear is most effective.
Humor Appeal:-
 Used in 30% of all advertisements.
 Excellent at capturing attention.
 Score high in recall tests.
 Should be related directly to customer benefit. Or else, the joke can overpower the message.
Sex Appeal: -
 Subliminal techniques
 Nudity or partial nudity
 Sexual suggestiveness
 Overt sexuality
 Sensuality
 Are Sex Appeals Effective?

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Research Results -
 Sex and nudity do increase attention.
 Rated as being more interesting.
 Often leads to strong feelings about the advertisement.
 Brand recall is lower.
 Often interferes with message comprehension
 Using Sex Appeals Effectively
 Be aware of differences in the international arena.
 Should be an integral part of the product.
 Should utilize a variety of models in terms of age, size, ethnicity and gender.
 Should consider using “regular person” models.
 Be careful sex does not overpower advertisement.
 Consider shifting to more sensuality.
 Music Appeals
 Has intrusive value.
 Gains attention and increases the retention of visual information.
 Can increase persuasiveness of an advertisement.
 Design Questions -
 What role will music play?
 Will a familiar song be used or new song created?
 What emotional feeling should song solicit?
 How does the music fit with the message of the ad?
 Tunes and Taglines
 See if you can think of the tune that matches each of the following taglines:
 Like a good neighbour, State Farm is there.
 Feel like a woman (Revlon).
 Come see the softer side of Sears.
 The ABC News theme (also used in commercials for the news).
 I am stuck on Band Aid, because Band Aid is stuck on me.
 Scarcity Appeals
 Based on limited supply or
 Based on limited time to purchase.
 Often tied with promotion tools such as contests, sweepstakes and coupons.
 Encourages customers to take action.

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2. Rational Appeals
Focus on the consumer’s practical, functional, or utilitarian need for the product or service and emphasize features of a product or service and/or benefits or reasons for owning or using a particular brand
Print media is well-suited for rational appeals.
Used by business-to-business advertisers.
Well-suited for complex and high involvement products.
Consumer purchase decisions are often made on the basis of both emotional and rational motives, and attention must be given to both elements in developing effective advertising.

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2.1 Industry Overview
India Biscuits Industry came into major existence and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for ready-made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. But today it has become one of the most loved fast food products for every age group. Biscuits are always easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal are the most industrially developed states; hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 % of the biscuits in the bakery products.
Biscuit Industry:-
Indian Biscuits Industry seems to be the largest among all the food industries and has a turnover of around Rs.3000 crores. Indian subcontinent is known to be the second largest manufacturer of biscuits, the first being USA. The industry is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 % of the total bakery products in India. Biscuits today stand at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production.
In the year 1990 the total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes. Today Biscuits contributes to over 33 % of the total production of bakery and above 79 % of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units in the country. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56, 78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 % of the entire bakery production. Today the large scale bakery manufacturers like Cadbury, Nestle, and Brooke bond had traded in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits. Government has established The Federation of Biscuit Manufacturers of India (FBMI) which has confirmed a bright future of India Biscuits Industry in the year 1953. According to FBMI, a steady growth of 15 % per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully.
Today the total production of biscuits in India is estimated to be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume and the organized sector is
Chapter 2: Biscuits Industry India

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valued at above Rs 8000 crores. While the biscuit industry is estimated to grow over 15-17% in the next few years. The biscuits per capita consumption in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The export of biscuits is approximately 17% of the annual production, the export of sweet biscuits for year 2007-08 was Rs 145.93 Cr and for year 2008-09(April-Dec) was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA, Ghana, UAE. The imports are not significant amount as compared to the total consumption.
The penetration of biscuits in India among the urban and rural market is 85% and 55% respectively. The annual turnover for the organized sector of the biscuit manufacturers at 2001-02 is Rs. 4,350 crores. The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100% hike in Central Excise Duty (from 9% to 16%) by the government. Production in the year 2001- 02 increased very marginally by 2.75% where in 2002-03 the growth is around 3%. Government took initiative for the development as The Union Budget for 2003-04 granted 50% reduction in the rate of Excise Duty on Biscuit i.e. from 16% to 8%. The Federation's estimate indicates a growth of approximately 8% to 9% per year.
Biscuit is always hygienically packaged nutritious snack food available at very competitive prices, volumes and different tastes. According to the NCAER analysis, biscuits are predominantly consumed by people from the lower strata of society, particularly children in both rural and urban areas with an average monthly income of Rs. 750and above.
Trends:-
The sustained economic growth in the country has led to increased disposable incomes among Indian consumers. Urban dwellers are becoming increasingly health conscious and are demanding healthier options. Along with this consumers are also willing to spend more and experiment. As more women join the work force, convenience and time have become major factors among urban households. Consumers are increasingly relying on snacks and baked goods as substitutes to traditional breakfast. With the launch of a series of cookies and sandwich biscuits offerings, biscuits are now being viewed as a quick breakfast option among women and children. This has helped drive sales of biscuits, especially cookies and sandwich biscuits, over 2013.
Competitive Landscape:-
The biscuits category is dominated by Britannia Industries, Parle Products and ITC, which together are set to hold a combined retail value share of 80% in 2013. These are well established domestic players and have strong distribution networks across the entire country, including rural areas.

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Prospects:-
The biscuits category is expected to grow by a CAGR of 10% in constant value terms over the forecast period. Sustained economic growth has led to an increase in disposable incomes among Indian consumers. Indian consumers are now willing to spend more and indulge themselves. As a result there has been a shift in eating habits with consumers willing to experiment. Consumers are moving towards premium biscuits offerings and are increasing their consumption of cookies and sandwich biscuits. This trend is expected to continue over the forecast period. Premium biscuit offerings, such as cookies and sandwich biscuits, are expected to witness strong growth over the forecast period. Manufacturers are also likely to launch a number of premium biscuits over the forecast period in order to tap into this demand.
The organized and unorganized sector of the biscuit industry is in the proportion of 70%:30% ratio.
Exports of Biscuit was 14% of the annual production during the period of 2012- 13.
Imports of biscuits into India (mainly high end products) has not shown any significant growth during the last few years and has not affected production/sales by the Indian Biscuit industry.
2.2 Indian Biscuit Industry
The Indian biscuits industry is growing at the rate of 13-15 per cent. But it is still in its nascent stage when compared to the global biscuit industry. The bakery sector in India is still the cheapest form of ready-to-eat food .The rate of growth is approximately 13-15 per cent. According to Research and Markets reports, the bakery/biscuit industry is the third-highest revenue-generator in the processed food sector. The market size for the industry is pegged at $5.5 billion in 2013, and is expected to reach $7.6 billion by 2015.
The unorganized sector accounts for about half the total biscuit produced in India, which is estimated at about 1.8 million tonnes. Today, the Indian biscuit industry has an important place in the country. Biscuits are items of mass consumption, in view of their low prices and high nutrient values. With rapid growth and changing eating habits of people, biscuits have gained popularity among the masses. If the urban population shirks the usage of imported biscuits and start consuming locally made biscuits then the industry shall make rapid inroads.
Biscuits Industry is the largest among all the food industries and has a turnover of around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and

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unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stand at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production.
Major Players: -
The major players in the biscuit segment are:
 Britannia
 Parle
 Bakeman
 ITC Foods Ltd.
 Surya Food and Agro Pvt. Ltd.
 HLL
Major Brands the major brands of biscuit are:
Parle
Britannia
ITC
Figure 2.2.1 Market share in Indian Biscuit Industry

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Figure 2.2.2 Parle Success Story
For more than 80 years, it's been a popular landmark in suburban Mumbai. Ask any shopkeeper in Vile Parle for directions to the Parle Products factory and he won't think twice. "Just turn into the next lane and thereafter, the aroma of the Parle-G biscuits will automatically lead you to the factory.
Chances are if you ask people anywhere in India about Parle, they will break into a similar smile. For millions of Indians such as the Mumbai paan shop owner, the country's largest biscuit maker doesn't just make any other biscuit: it makes comfort food. Across the country, many people wake up to the same ritual every morning: they dunk a crisp Parle-G biscuit into a hot cup of milky tea and quickly pop the soggy piece into their mouths before it disintegrates in the steaming brew. Parle may be synonymous with the ubiquitous glucose biscuits for many, but competition has been nipping at the biscuit manufacturer's heels. Although it is still the market leader in the Rs 21,213-crore biscuit market, shop shelves are groaning under the weight of a host of other biscuits - and consumers are biting. With an increasing number of biscuit makers jostling for a share of the pie, the third generation of Parle's Chauhan family - cousins Ajay and Arup - has turned to the snack market and premium biscuits to stay ahead in the game. "They already have a strong presence in biscuits and confectionary. In the food category, snacks form one of the fastest growing categories, so it was natural for a company like ours to venture

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into the snacks market," says Parle Products Executive Director Ajay Chauhan, who has been in the business since 1989.
Even as Britannia Industries Ltd (BIL) is unwrapping a new advertising strategy for its re-launched brand Marie Gold, Parle Products Pvt Ltd has roped in Ogilvy & Mather India to design the advertising plans for its yet-to-be launched brand Monaco Bites. With the entry of Hindustan Lever Ltd.’s biscuit brand Modern Energy Biscuits, competition is hotting up in the Rs 2,500-crore Indian biscuits market.
For starters, BIL has recently relaunched its flagship brand Marie Gold with value additions in a bid to rejuvenate the brand. Along with the re-launch, the company has also revamped the advertising and packaging strategy of the brand in the overcrowded category.
Strapped with a new tagline ‘Packed with wheat energy', the new avatar of Marie Gold in a new packaging hit the Indian marketplace just a few days ago. The company is still in the process of rolling out the re-launched brand across the country, inform sources from the company.
And to announce the re-launch of Marie Gold, BIL is rolling out a multi-media ad campaign which includes press advertisement, television commercials and radio advertising. “BIL will be using all the media vehicles that are available. To start with, BIL have launched a television commercial in Hindi. Very soon, we will roll out print ad campaign first in Hindi. Later we will go for press ads in English”.
On the other hand, Parle Products Ltd has hired the services of Ogilvy & Mather India to create communication plans for its new product called ‘Monaco Bites’. “Amid stiff competition”. The other agencies in the fray were Everest Communications and Grey Worldwide. It's a prestigious account as our client plans to launch ‘Monaco Bites' in different flavours, including cheese.”
Ogilvy & Mather has been handling the ad account of Parle Krack-Jack for the last 15 years.
At present, Britannia Industries and Parle Products Ltd are considered dominant players in the overcrowded branded biscuits category Biscuit majors mapping out new growth strategies in India
The economic slowdown hasn't dented this market. On the contrary, the food major’s ares plurging big time on the biscuits market. To accelerate the volumes in the Rs 9,000-crore branded business market, three of India's food majors plan to spend heavily. ITC Foods is working out a full-fledged plan to expand its manufacturing capacity, retail activities and brand activation activities. Britannia Industries Ltd (BIL), on its part, is focusing on consumer promotions and new launches to maintain its position in the overcrowded category. Even Parle Products, which reportedly has 42% share in this category, is mapping out an aggressive growth strategy that comprises of re-launches, launches and high- profile television campaigns.
Clearly, the sector will face a whole lot of action in the next two months. The slowdown has not affected this sector. The sector will be registering a sound growth

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rate of around 15% this year, informed a Mumbai based analyst. The category has some strong regional presence like Priya Gold in the north and east, Cremica in the west and Dukes in the south.
On ITC's plan, ITC Foods informed that we will be exploring different opportunities for profitable growth. We are planning to reach out to select markets in India.
ITC is intending to expand its operations to meet the increasing demand for its biscuits brands. The company entered this sector about five years back. And now it is ranked the third largest player with a market share of over 12%.
BIL has launched a vigorous consumer promotion by enlarging the pack sizes of its flagship brand Tiger Glucose by almost 18%. The offer has helped Britannia sell more packs than competitors Parle and ITC's Sunfeast.
Parle Products, on the other hand, is increasing its existing manufacturing capacity across the country. The company is concentrating on all brands with no less than 42% share in the branded biscuits market. The company is leading the pack now. In addition, Parle with a new advertising campaign is planning to re-launch Krack jack.
Apart from the ad campaign for Krack jack, Parle is also rolling out a high-profile ad campaign for its brand Monaco. The company had recently launched an ad campaign featuring Hrithik Roshan to promote the new alternate of Hide &Seek.
2.2 SWOT Analysis – Indian Biscuit Industry
Strength:-
 Fulfil one of our Basic Requirement among Air , Water , Food, Shelter
 Widely accepted in all Generations
 Easily available in various forms
 Provide good Instant Remedy for hunger in the form of readymade food
 Preserves the non-seasonal food and makes it available all throughout the year
Weakness:-
 Decreases nutritional value
 Increases the cost of food product
 Industry and technology requires high investment
 Regular usage of processed food can cause alteration in health
Opportunities: -
 Increase economy of India
 Generate employment opportunity
 Good quality of Goods
 Provide competition to foreign companies
 Improve living standard

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 Provide goods to nation at cheaper rate
 Inflow of foreign reserve and funds for the govt.(taxes)
Threats: -
 Many companies are result oriented
 Increase in pollution
 Sometimes provide poor quality of product for more profit
 Lack of technology
 Unable to utilize all the resources efficiently
2.3 PEST analysis
Political:-
Opportunity
Government provides subsidiaries to the biscuit industry.
Constraints
What if the government ran a health campaign to discourage people from eating too much fatty food?
Economic:-
Opportunity
Purchasing power of people has increased in India
Constraints
If there is a big economic downturn in your market? Would consumers switch to cheaper options?
Social: -
Opportunity
Public demand for health biscuits
Constraints
Public are now aware of fatty food.

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2.4 Government Initiatives
According to the recently announced Union Budget 2012-13 following initiatives will be taken by the Government:
National Mission on Food Processing:-
 A new centrally sponsored scheme titled "National Mission on Food Processing" to be started in 2012-13 in co-operation with State Governments
 Steps taken to create additional food grain storage capacity in the country
 Subsidies fully provided for effective administration of the proposed Food Security Legislation
 To promote private sector activity and invite foreign investments in the sector the Government allows 100 per cent FDI in the food processing & cold chain infrastructure
2.5 Road ahead
India is one of the fastest growing branded restaurants markets in the world, where the organized eating-out market is estimated at US$ 2 billion and growing at a CAGR of 25 per cent. With massive scope for value addition, growing trend in the consumption pattern of processed food products in India and many fiscal incentives being planned by the Government, this sector is capable of maintaining the growth momentum in the future

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3.1 Introduction of PARLE-G
Parle Products Pvt. Ltd. engages in the manufacture and marketing of biscuits and confectionaries. It offers glucose, milk, sweet and salted cream, wafer crème, cumin seed, and cheese biscuits; chocolate, mint, cola, and tropical fruit flavoured toffees and candies; and snacks. The company offers its products in India, the Middle East, Africa, South East Asia, the United States, the United Kingdom, Canada, Australia, and New Zealand. Parle Products Pvt. Ltd. was founded in 1929 and is based in Mumbai, India.
Parle Products Ltd. entered the snack market with the launch of Musst Chips and Musst Six in Maharashtra. It is selling these two new products at price points of INR 10 and INR 5 but giving more quantity as compared to competition. The company has set up a unit in Nashik for manufacturing the new brands. It intends to promote these two products by extending its distribution network.
It's a brand that has held its price line at Rs 4 for 25 years now -- the price was last raised in 1994 by 25 paise. So, it's not for nothing that Parle-G is the world's largest- selling biscuit by volumes.
Not that the company didn't try to raise prices to offset the overall hike in costs. Three years ago it did so, but quickly rolled it back after volumes fell sharply and consumers wrote to lodge their protest.
"We want to cater to the masses and have consciously tried not to increase the price. Parle-G is available for Rs 50 a kg. There are very few food items that are available for Rs 50-60 a kg," says Pravin Kulkarni, general manager (marketing), Parle Products.
Parle is, of course, not doing it for charity. Soaring input prices meant it opted for reducing the weight of the biscuit than increasing the price -- first from 100 gm to 92.5 gm in January 2008, and then to 88 gm in January this year -- in line with other biscuit-makers and FMCG players.
Regular customers would have noticed the number of biscuits in a pack come down from 16 to 15 even as each biscuit became lighter, but they seemed to understand the cost pressures on the firm. The gamble paid off: Parle was able to sustain its volumes.
Strict cost control at every point in its supply chain also helped -- Parle entered into forward contracts with suppliers, outsourced production, increased the number of manufacturing locations to 60 and consolidated buying.
Chapter 3: Parle Products Pvt. Ltd

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Raw material costs account for 60 per cent of the total costs in this segment and packaging costs (plastic films) account for 20-25 per cent of this.
Nirmalaya Kumar, professor of marketing at London Business School, feels it's a very smart strategy. "At this price point, price becomes more important than the weight of the biscuit. It's very interesting and similar to the dollar stores in the US," he says.
But price is not its only USP.
What makes the Parle G brand tick is also that it has been positioned on the health platform (a single pack of biscuit offers 450 calories). Its earlier punchline was Parle- G: swadh bhare, shakti bhare (full of taste and energy). Currently, the brand uses two punchlines. Parle-G: G for Genius and Hindustan ki Taakat (the country's strength).
The brand, says Kulkarni, meets different needs of customers: calories (energy), nutrition and value-for-money -- enough reasons why Parle-G enjoys close to 70 per cent market share in the glucose biscuit category and probably has the deepest reach.
It reaches 2.5 million outlets, including villages with a population of 500 people, on a par with Unilever's Lifebuoy, ITC's cigarettes or mobile pre-paid cards.
It's also one of the few FMCG brands in the country, whose customers straddle across income segments.
The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the company's turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion).
Competition has, of course, been trying to wean away customers from Parle. Britannia re-launched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18 per cent share, while ITC's Sunfeast glucose has captured 8-9 per cent, according to industry sources.
Even Levers had forayed into this segment in 2003 and launched a glucose biscuit branded as Modern, after it acquired the bakery business of Modern. There are strong regional brands, including Priya Gold (west), Cremica (north) and Anmol (east).
But they still have their work cut out.
Nirmalaya Kumar feels the Parle-G story is so fascinating that it deserves to be a case study. What would be interesting to see is whether it will be able to retain its leadership in the coming years as income grows in the hinterlands and consumers upgrade and develop new tastes

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Parle Products has been India's largest manufacturer of biscuits and confectionery, for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands, the Parle name symbolizes quality, nutrition and great taste. With a reach spanning even the remotest villages of India , the company has definitely come a very long way since its inception.
Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India, Parle has grown to become a multi-million dollar company. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance.
For over 65 years, Parle G has been a part of the lives of every Indian. From the snow-capped mountains in the north to the sultry towns in the south, from frenetic cities to laid back villages, Parle G has nourished strengthened and delighted millions. Filled with the goodness of milk and wheat, Parle G is not just a treat for the taste buds, but a source of strength for both body and mind. Tear over a packet of Parle G to experience what has nourished Generations of Indians since last sixty five years, making it truly Hindustan Ki Taakat.
Nutritious Parle- G Biscuits is the product of Parle Products Pvt. Ltd. The company Parle Products Pvt. Ltd is the manufacturer of biscuits and confectionery. The product Nutritious Parle- G Biscuits are tea- time snack and are considered to be an important part of daily food. Nutritious Parle- G Biscuits cater to all tastes from kids to senior citizens. Nutritious Parle- G Biscuits is prepared from milk and wheat. Nutritious Parle- G Biscuits is a meal substitute and includes wheat flour, sugar, partially hydrogenated edible vegetable oils, invert syrup, leavening agents, salt, milk solids, emulsifiers and dough conditioners. Nutritious Parle- G Biscuits also contains added flavors and Glucose, Levulose.
3.2 Glorious History of Parle-G
Parle-G has been a strong household name across India. The great taste, high nutrition, and the international quality, makes Parle-G a winner. No wonder, it's the undisputed leader in the biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of getting charged whenever they are low on energy. Because of this, Parle-G is the world's largest selling brand of biscuits.

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Launched in the year 1939, it was one of the first brands of Parle Products. It was called Parle Glucose Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the Mumbai factory, Vile Parle and sold in units of half and quarter pound packs.
The incredible demand led Parle to introduce the brand in special branded packs and in larger festive tin packs. By the year 1949, Parle Glucose biscuits were available not just in Mumbai but also across the state. It was also sold in parts of North India. The early 50s produced over 150 tons of biscuits produced in the Mumbai factory. Looking at the success of Parle-G, a lot of other me-too brands were introduced in the market. And these brands had names that were similar to Parle Glucose Biscuits so that if not by anything else, the consumer would err in picking the brand. This forced Parle to change the name from Parle Glucose Biscuits to Parle-G.
Originally packed in the wax paper pack, today it is available in a contemporary, premium BOPP pack with attractive side fins. The new airtight pack helps to keep the biscuits fresh and tastier for a longer period.
Parle-G was the only biscuit brand that was always in short supply. It was heading towards becoming an all-time great brand of biscuit. Parle-G started being advertised in the 80's. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In 1989, Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years.
Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of life like honesty, sharing and caring.
In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended this association with Shaktimaan and gave away a lot of merchandise of Shaktimaan, which was supported by POS and press communication. The children just could not get enough of Parle-G and Shaktimaan.
In the year 2002, it was decided to bring the brand closer to the child who is a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children. There were over 5 lakh responses and of that, over 300 dreams were fulfilled.
Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching etc.

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The year 2002 will go down as a special year in Parle-G's advertising history. A year that saw the birth of G-Man - a new ambassador for Parle-G. Not just a hero but also a super-hero that saves the entire world, especially children from all the evil forces. A campaign that is not just new to the audiences but one that involves a completely new way of execution that is loved by children all over the world – Animation
To make the brand much more interesting and exciting with children, it was decided to launch a premium version of Parle-G called Parle-G Magix in the year 2002. Parle-G Magix is available in two exciting tastes - ‘Cocoh’ and ‘Cashew’. The year 2002 also witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of milk and honey, especially launched for the southern market.
Parle-G continues to climb the stairs of success. Take a look at the global market where it is being exported. First came the Middle East then USA followed by Africa and then Australia. An Indian brand, that's exported to almost all parts of the world. After all that's what you would expect from the Parle-G World's Largest Selling Biscuit.
3.3 Success Story of Parle-G
Story on How They Won Customers:-
Many years ago, Shailendra Saraf was a biscuit salesman in Bombay. At his heart, he is still a salesman, and he will continue to remain so. He has several reasons to be a proud salesman, though he never allowed pride to come between him and his job. The company Shailendra worked for was neither number one nor number two in biscuit trade. Back then we did not know it was FMCG. The term ‘Brand’ wasn’t in our horizon either. I do not remember being familiar with these in those days. Today even school children know- “Which one is the leading Brand in what category.” Just like Shailendra, we also liked to believe that he worked for a company which was number three in the trade.
His territory was between Bandra and Andheri. Vile Parle, a station between Bandra and Andheri is home to the number one biscuit Brand. Yes, you got it right, “Parle G”. If you ever travelled by a local train in that section, you could smell the rich aroma of Parle G biscuits when the train halted at Vile Parle station. It is well known that ‘Olfaction’, the sense of smell, has an overriding influence in shaping consumer behavior. And this accidental and occasional encounter people had with aroma at Vile Parle was deeply engraved in their minds. Consumers would rather have a brand they had already smelt than to try something entirely unknown.
Against such odds Shailendra did his work. His customers were mainly grocery store owners. He was required to visit at least 50 customers before calling it a day. Each morning he would submit his report and orders received on the previous working day. Before leaving for the field he would obtain, from his boss, special instructions for the day, which among other things included a stereotyped quipping

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“TARGET!” and the look (on boss’s face) that went with it. Though he fulfilled his target each month but had this nagging feeling that next month he may fail.
One late afternoon when he was doing the Khar-Danda beat, he walked into a store that was empty of customers and the owner had a painful expression on the face. He struck a conversation with the shopkeeper and came to know that poor-rich soul has been standing since six o’clock in the morning and was cursing himself for being in such a vocation. Shailendra did his best to pacify the guy before he walked out without asking for an order. He also carried with him the guilt of not doing his duty, ‘asking for the order.’
He kept on debating in his mind, if he had done the right thing. As a result of this the whole episode remained fresh in his mind till late that evening. It was at the bed time he had this flash, “If this guy is at work at 6 am so will be other shopkeepers. Why don’t I try to meet these people when they are fresh in the morning?” Next day he got up at 5 am and was in field by 6 am. He could finish all his calls by 10 am and reached office half an hour too late. Boss was angry, but Shailendra had two day’s reports and orders with him. The orders looked good. If the boss suspected something, he kept his suspicion to himself and decided to do back checking himself. In a few weeks’ time Shailendra’s order book seemed comfortable and he was now more confident about keeping his job even for the next few months.
Future had more exciting things in store for Shailendra and he didn’t have any idea about those. One day the same Khar-Dandha shop keeper wanted to talk to him in confidence. By now the shopkeeper had figured out that Shailendra has changed his routine as a result of the conversation they previously had. He told Shailendra, “I know you are working so hard and proper, but your boss has some other plans for you. He has been back checking you and is going around the beat like a mad man. He wants to frame you up into something. Tell me if you have been fulfilling your target or not.” Then without waiting for an answer, he went on to say, “I have made a plan to silence your boss for ever. Can you meet me this Friday night for a few drinks? Of course it’s on me.”
That Friday night Shailendra was in for a bigger surprise. This shopkeeper had a friend who was a supplier for the outgoing ships from the Bombay Port. Each Friday he would order supplies required for next week’s sea faring vessels. Shopkeeper's friend gave him his card and asked him to meet next Friday. From the shopkeeper’s friend, next Friday, Shailendra received an order far in excess of his monthly target. Shailendra was asked to come back again next Friday, and this routine went on for several years even after Shailendra left that company.

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3.4 How Parle Fought to Make Biscuit Affordable to All
Biscuits were very much a luxury food in India, when Parle began production in 1939. Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands. However, during the Second World War, all domestic biscuit production was diverted to assist the Indian soldiers in India and the Far East. Apart from this, the shortage of wheat in those days, made Parle decide to concentrate on the more popular brands, so that people could enjoy the price benefits.
Thankfully today, there's no dearth of ingredients and the demand for more premium brands is on the rise. That's why; they now have a wide range of biscuits and mouth-watering confectionaries to offer.
3.5 Quality of Parle
Parle Quality:-
Hygiene is the precursor to every process at Parle. From husking the wheat and melting the sugar to delivering the final products to the supermarkets and store shelves nationwide, care is taken at every step to ensure the best product of long- lasting freshness. Every batch of biscuits and confectioneries are thoroughly checked by expert staff, using the most modern equipment hence ensuring the same perfect quality across the nation and abroad.
Concentrating on consumer tastes and preferences, the Parle brand has grown from strength to strength ever since its inception. The factories at Bahadurgarh in Haryana and Neemrana in Rajasthan are the largest biscuit and confectionery plants in the country. The factory in Mumbai was the first to be set up, followed soon by the one in Bangalore, Karnataka. Parle Products also has 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries, on contract.
Quality Commitment:-
Parle Products has one factory at Mumbai that manufactures biscuits & confectioneries while another factory at Bahadurgarh, in Haryana manufactures biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in Rajasthan and at Bangalore in Karnataka. The factories at Bahadurgarh and Neemrana are the largest such manufacturing facilities in India. Parle Products also has 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries, on contract.
All these factories are located at strategic locations, so as to ensure a constant output & easy distribution. Each factory has state-of-the-art machinery with automatic printing & packaging facilities.
All Parle products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials; packaging materials & rigid quality standards are ensured at every stage of the manufacturing process.

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Every batch of biscuits & confectioneries are thoroughly checked by expert staff, using the most modern equipment
3.6 Marketing Department
The Marketing Strength:-
The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. The Parle marketing philosophy emphasizes catering to the masses. They constantly endeavour at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on their understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products.
However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters a range of products to a variety of consumers.
3.7 The Customer Confidence
The Parle name conjures up fond memories across the length and breadth of the country. After all, since 1929, the people of India have been growing up on Parle biscuits & sweets.
Today, the Parle brands have found their way into the hearts and homes of people all over India & abroad. Parle Biscuits and confectioneries, continue to spread happiness & joy among people of all ages.
The consumer is the focus of all activities at Parle. Maximizing value to consumers and forging enduring customer relationships are the core endeavours at Parle.
Their efforts are driven towards maximizing customer satisfaction and this is in synergy with their quality pledge. “Parle Products Limited will strive to provide consistently nutritious & quality food products to meet consumers' satisfaction by using quality materials and by adopting appropriate processes. To facilitate the above we will strive to continuously train our employees and to provide them an open and participative environment."

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3.8 Ingredients
There are mainly 6 ingredients in Parle – G glucose biscuits.
1) Wheat Flour.
2) Sugar.
3) Vegetables Oil.
4) Milk Powder.
5) Salt.
6) Flavours.
These materials make the glucose Biscuits tasty & eatable. And following material makes it healthy & increases the quality of a product.
1) Partially Hydrogenated Edible.
2) Invert Syrup.
3) Iron.
4) Calcium.
5) Dough Conditioners.
6) Baking Soda.
The raw material is mixed in certain proportion, to get the best quality of biscuits. All the ingredients are tested in laboratory so that no low quality of raw material is used in manufacturing process. The raw material is tested for their acidic value, moisture it contains, and quality of milk powder.

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4.1 Company Profile
Britannia Industries Limited is an Indian company based in Kolkata that is famous for its Britannia and Tiger brands of biscuit, which are popular throughout the country.
Britannia has an estimated 38% market share. The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.
In 1892, Britannia started in a nondescript house in Kolkata) with an initial investment of Rs 295. By 1910, with the advent of electricity, mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens.
In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indian’s of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.
In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand Britannia'.
Britannia strode into the 21st Century as one of India's biggest brands and the preeminent food brand of the country. In recognition of its vision and accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World', and The Economic Times pegged Britannia India's 2nd Most Trusted Brand.
The brand Britannia is the trust of almost one-third of India's one billion populations and a strong management at the helm on its path of innovation and quality.
Britannia is the leading biscuit manufacturer in the Rs 124 billion Indian bakery market. Its primary business is bakery consisting of biscuits, bread and cakes. In 2006, Britannia picked up a 50% stake in Daily Bread (retailer of high-end bakery products.) from Cafe Coffee Day. The company operates in the dairy segment through its subsidiary Britannia Dairy. The dairy segment comprising of milk, butter, cheese, ghee and curds accounts for 4.7% of Britannia's group turnover.
Chapter 4: Britannia Industries Limited

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4.2 Products Overview
The company's offerings are spread across the spectrum with products ranging from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese.
 Britannia NutriChoice Oat Cookies
 Britannia NutriChoice Ragi Cookies
 Britannia Veg Cakes
 NutriChoice Health Starter Kit
 Britannia NutriChoice 5 Grain
 Tiger Banana
 NutriChoice Sugar Out: Litetime, Chocolate cream, and Orange cream
 NutriChoice Digestive Biscuit
 Treat Fruit Rollz: Juicy Apple, Strawberry Surprise, Tangy Orange and Delicious Dates
 New Britannia Milk Bikis
4.3 Global Presence
In March 2007, Britannia Industries Limited formed a Joint Venture with the Khimji Ramdas Group, one of the largest and the most respected business conglomerates in the Middle East. Britannia and its Associates have acquired a significant stake in Dubai based Strategic Food International Co. LLC and Oman based Al Sallan Food Industries Co SAOG. The two companies are key regional players in the biscuits, wafers and cookies segment in the GCC markets and export their products across the world.
Strategic Food International Co. LLC (SFIC) is one of the largest biscuit and wafer manufacturing companies in the Middle East. An ISO and HACCP certified company. SFIC is also a proud winner of the Dubai Quality Appreciation Certificate. It offers a wide spectrum of products under the brand Nutro, which is a leading biscuit brand in the Middle East.
Al Sallan Food Industries Co is one of the foremost companies for the production of cookies, rolls and chocolates. The products are well known under the brand name of Baker's Pride.

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4.4 Brands Category
Figure 4.4.1 Brand Category
Dairy products: -
Britannia holds an equity stake in Dynamix Dairy and outsources the bulk of its dairy
products from its associate. The products in this segment include Butter, Milk, Dahi,
Diary Whitener, Ghee, Actimind, Tigerzor Choco Milk, Tigerzor Badam Milk, Cheese
and Gourmet.
Biscuits:-
The brand names of biscuits include Timepass, Bourbon, Cookies, VitaMarieGold,
Tiger, NutriChoice Junior, Good day, 50-50, Treat, Pure Magic, Milk Bikis, Good
Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts, Marie Gold and many more.

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A product should be viewed in three levels.
Level 1:- Core Product. What is the core benefit your product offers? Customers who purchase a camera are buying more then just a camera they are purchasing memories.
Level 2:- Actual Product All cameras capture memories. The aim is to ensure that your potential customers purchase your one. The strategy at this level involves organisations branding, adding features and benefits to ensure that their product offers a differential advantage from their competitors.
Level 3:- Augmented product: What additional non-tangible benefits can you offer? Competition at this level is based around after sales service, warranties, delivery and so on.
5.1 Communication Objective
Create awareness among 90 % of target audience:-
To make people aware of new product that has all daily required nutrients that are needed for the body through continues advertisement in newspaper, magazines, TV and radio
Message is a biscuit that can keep u fit and fulfil Ur body with all nutrients.
Create an image among 70% of target audience:-
To create an image that will differentiate the product for all other competing products of its kind and create an image of a health related product. Contains fewer fats as compared to other competitors.
Develop preferences among 60 % audience:-
To develop people preference to this product by telling them the benefits of this product.
Stimulate purchase intentions:-
To make people think through promotional program that product worth of buying.
Stimulate trial of new product among 40 % of target audience
To make people to try the product by following extensive sales promotion and personal selling like coupons and sales presentation.
Chapter 5: Media Plan for Newly launched Biscuit

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5.2 Public relations
 Seminars: - We will give seminars on the topic of nutrition which are required for our daily needs. How we can increase our immune power and how can we keep our self-healthy and how n-bickies biscuit helps your family with this.
 Charitable donations: - We will donate money to the areas where maximum people suffer from nutrition problem thus relating it with our product.
 Publications: - We will release a monthly publication of what achievements are made my company.
 Community relations: - Our aim is to increase their knowledge and understanding of what we do and our aim is at giving people the nutrients of everyday life, so that they can feel part of “our community” and where appropriate join with us
5.3 Sales promotions
 Contests: - We will organise contests which will be on the theme of heath awareness and new biscuit will make people aware of this.
 Games: - We will organise games at major areas like universities, government offices on the name of new biscuits.
 Lotteries: - We will tie up with some very good brands and new biscuits will be distributed as lotteries.
 Premium and gifts: - We will distribute this product as gifts and premium when a product is bought.
 Fair and trade shows: - We will organise fair and trade shows
 Coupons: - coupon will be distributed in mall, on the purchase of various good which.
 Rebates: - rebate will be implemented at staring stage to enforce sales.
 Samples: - We will distribute samples to know the taste of the product.
 Sponsorship programme
 Entertainment programs in television and radio.
 Sponsoring health awareness programs
 Rallies to make people aware of health.
Direct marketing:-
 Catalogs: - We will distribute catalogs which will communicate all the best features of my product.
 Mailings: - We will mail people the catalogs of the company and product so that if they are interested they can contact us directly.
 Telemarketing: - We will communicate our product through tele calling also.
 E-mail and voice mail: - We will email all the target market so that they are aware of our product.
 The objectives for various promotional elements

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5.4 Budget allocation
Percentage of the budget is stated for indicating the allocation:-
Estimated budget: Rs.50, 000,000
Promotional budget estimate (in lakhs)
Advertising:-
 TV Commercial 50 lakhs - (Production & broadcasting)
 Newspaper advertisement 8 lakhs - (Design & publishing)
 Magazine 10 lakhs
 Radio advertisement 20 lakhs
Event:-
 Exhibition (venue & Setup, etc.) 50 lakhs
Direct Marketing:-
 Mailing (design, printing & postage, etc.) 4 lakhs
Personal Selling: -
 Sales presentations 20 lakhs
 Sales meetings 5 lakhs
 Incentive programs 85 lakhs
 Sales promotions
 Contests; Games; Lotteries; premium and gifts;
 Fair and trade shows; coupons;
 Rebates. 100 lakhs
 Sponsorship program
 Entertainment programs in TV
 Sponsoring pollution awareness programs
 Rallies to make people aware of health 100 laths
 Miscellaneous expenses 48 lakhs
Marketing Strategies:-
The campaign objectives of New Biscuit
Advertising Strategy:-
Advertising design: - Story board to tell the about the product as an important aspect of life
 Type of appeal: Emotional.

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 Target audience: All age group.
 Message strategy
 Meaning : N means nutrition and bickies means biscuit
 Tag Line : Charge up yourself
 Media selection: Television, newspaper, magazines, Internet, etc.
 The Unique Selling Proposition
 The biscuit that contains very less fatty acids.
 The biscuit that has all nutrients which are needed for body every day.
 Will complete daily requirement of body for nutrients.
 Other promotional tools strategy
5.5 Implementation Strategies
For television advertisement the spot that will be bought is between 5-7 p.m. Monday -Friday.
For radio the spot that will be bought is between 6 to 10 a.m. And 5 -8 p.m. Monday- Friday.
Creative tactics for print advertisement
New Biscuit: CHARGE URSELF
Creative tactics for television:-
Video: - the visual will communicate the message given by biscuit that it is give the most benefits compared to others and will provide you with all nutrition which is required for everyday life
Audio: - the audio will be created which will force consumer to see the video and will help an appropriate mood
Jingle used: gear up with new biscuit.
Company: New Biscuit

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6.1 Growth Potential
The Indian food and drinks market has witnessed strong growth over the past few years. Liberalization of the economy and growing income of middle class population have had a positive impact on consumer spending and consumption in both rural and urban areas. Indian consumers now spend a significant proportion of their income on food and other essential commodities. Numerous other factors like demographic and macro-economic conditions have also given boost to expenditure on food and beverages in the country.
The total food production in India is expected to double in the next ten years and there is ample opportunity for huge investments in food and food processing technologies, skills and equipments.
The food processing industry in India stands at US$ 135 billion and is projected to grow with a compound annual growth rate (CAGR) of 10 per cent to reach US$ 200 billion by 2015.
The food industry is divided into various segments namely, milk and allied products (dairy), meat and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and oilseeds (staple) products, alcoholic and non-alcoholic products (beverages), and packaged food.
The food processing industry in India is witnessing quick growth. In addition to the demand side, there are changes happening on the supply side as well with the growth in organized retail, increasing foreign direct investment (FDI) in food processing and introduction of new products.
The growth has happened because the Government of India has given a priority status to all agro-processing businesses. Government incentives in the field of mega food parks, cold chain and exports benefits are also playing an important role in encouraging food processing.
Food processing industry is one of the major sectors in India in terms of production, growth, consumption, and export. The turnover of the total food market is approximately US$ 69.4 billion out of which value-added food products comprise US$ 22.2 billion. India's food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc.
Chapter 6: Conclusion and Recommendation

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Breakfast biscuits – key growth area
Sweet biscuits comprise the bulk of biscuit sales, contributing to both volume and value growth in the sector. The savoury biscuit category is smaller, but there has been steady volume and value growth. Demand has been supported by new product launches over the last few years, introducing greater variety to the sector, and allowing savoury biscuits to compete with a widening range of alternatives- from crisps to bread.
Growth in breakfast biscuits has been particularly strong, tapping into consumer demand for convenience and portability, a growing trend seen across food categories. Substantial and targeted advertising, along with the establishment of strong convenience credentials compared to competing breakfast alternatives, have seen breakfast biscuits become a major sub-category in recent years. While a decline in the average pack price may have contributed to some of the growth, this may be a reflection of the increased rivalry for market share as new products have entered the market at competitive price points.
Closing comments
Demand for both sweet and savoury biscuits has grown over the past year, a time of weak consumer confidence. The strongest growth has been seen for products which have actively accommodated consumer desires for health and portability, which the biscuits and savoury snacks sector appears to have been relatively successful in doing. Demand should continue to grow for categories such as, breakfast biscuits, if they continue to tap into these trends. The question is whether recent growth for biscuits came despite low consumer confidence or because of low consumer confidence. If the latter is true, the perception of biscuits as an affordable treat may result in slower growth as consumer confidence increases. However, indications that consumers will continue to exercise thrifty behaviour, even with greater budgets, suggest this may not be such an issue.

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