Studying the Link Between Volume of Media Coverage and Business Outcomes. 

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My study is based on exploring the Link between Volume of Media Coverage and Business Outcomes. The main purpose of this study is to gather and classify the varying factors used in marketing mix modeling, and to look at how public relations is represented therein. Only a few studies albeit have actually been published on the topic within industry literature lacking especially in the Indian context. I would also like to bring upon the issue of Online Media an emerging area for marketing mix modeling which is of particular interest to the practitioners for measuring public relations through websites and consumer-generated media.

Understanding how news and advertising interact is important, from two perspectives. From a business management perspective, this understanding would enable a company to develop optimally-effective integrated communications plans and to allocate resources appropriately. From a theoretical perspective, there is the promise of deepening our understanding of how people integrate messages received from different forms of mass
communication.

While this study focused on how the volume of media coverage relates to brand value, reputation in the media is often a greater predictor of brand value and business outcomes such as sales. In industries that involve more research before purchases are made, the editorial content that results from PR can account for nearly half of brand value.

In industries that exhibit a stronger link between media coverage and brand value, managers in these product categories need to pay special attention to the way the brand’s value is impacted by its communications activities.

‘Earned media’ that results from public relations efforts may be more important than advertising to brand value, especially for companies that sell feature-rich, high-involvement and complicated products such as consumer durables. Findings from the study reveal that industries that sell high involvement products - where a buyer invests time and effort in deciding what to buy than buying by impulse.

Public Relations could be used as a powerful tool to draw customer attention. A timely and topical issue can be news that drives media coverage, getting the company’s name or brand more visibility.

Objectives
As a researcher I delve into the following spheres:

1. Constituents of Brand identity and role of PR in Brand identity
2. Reaching your direct customer through PR with stress on online PR efforts.
3. Empowering customer to make an informed decision.
4. Helping customer research the product at the information seeking stage of the buying decision model.
5. Trust has become a major issue in the post-bubble business world. Relationship building protects a firm’s long-term competitiveness.

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Studying the Link Between Volume of Media Coverage and Business Outcomes. 

  1. 1. Paper on<br />Studying the Link Between Volume of Media Coverage and Business Outcomes. <br />By,<br />Udit Joshi<br />2009 - 2010<br />Under the guidance of: <br />Dr. Manish AgarwalMr.Ashutosh Srivastava<br />Amity Business SchoolHanmer MS&L<br /> <br /> <br />INDEX<br /> CONTENTS PAGE NO.<br />Executive Summary6<br />Introduction9<br /> 1.1 Recession killing the marketing budgets13<br /> 1.2 LG Electronics India turnover15 <br />Critical Review of Literature16<br /> 2.1 LG Electronics in India19<br /> 2.2 Press Releases of LG India21<br /> 2.3 Industry Coverage of Consumer Durables in India31<br /> 2.4 Public Relations for LG India34<br /> 2.5 Functioning of LG’s PR Agency37 <br />3. Research Methodology40<br /> 3.1 Calculating Corelation40<br /> 3.2 Effect of PR on Consumer Behaviour42<br />4. Data Analysis44<br /> 4.1 Corelation44<br /> 4.2 Findings from the Survey45<br /> 4.3 Innovative ways of PR by LG’s PR Agency56<br />5. Conclusion58<br />6. Annexure<br /> 6.1 Case Studies60<br /> 6.1.1 LG Electronics India60<br /> 6.1.2 Diamler Chrysler62<br /> 6.1.3 CNBC TV 1864<br /> 6.1.4 Sony Pictures Casino Royale66<br /> 6.2 Model of Buyer Behaviour68<br /> 6.3 Information Search Sources69<br /> 6.4 Buying Decision Behaiouor70<br /> 6.5 Public Relations Variables and Marketing Mix73<br /> 6.6 Questionnaire74<br />7. References77<br />Executive Summary<br />So far there has been relatively little research into the contribution of public relations to brand value. In this study, the statistical correlation between a brand’s media prominence and sales was assessed. While this study focused on how the volume of media coverage relates to brand value, reputation in the media is often a greater predictor of brand value and business outcomes such as sales. In industries that involve more research before purchases are made, the editorial content that results from PR can account for nearly half of brand value.<br />In industries that exhibit a stronger link between media coverage and brand value, managers in these product categories need to pay special attention to the way the brand’s value is impacted by its communications activities. ‘Earned media’ that results from public relations efforts may be more important than advertising to brand value, especially for companies that sell feature-rich, high-involvement and complicated products such as consumer durables. Findings from the study reveal that industries that sell high involvement products - where a buyer invests time and effort in deciding what to buy - have much higher correlations between media prominence and sales than industries selling low involvement products, which are more likely to be bought on impulse. <br />The current economic crisis has once again thrust the marketing ROI issue into the spotlight. I decided that it is an extremely relevant time to take a close look at the role public relations played in brand formation and sales. It was my opinion that public relations would prove to play a crucial role in the marketing mix. A sizable amount of brand value, particularly for high involvement industries, is tied into media coverage. The study is exercised around the consumer durable company LG Electronics as it was one of the clients I had worked for during the internship.<br />John Grebe, who established Dow’s Physical Research Lab, once said “If you cannot measure it, you cannot control it.” The words ring especially true for marketers, who often struggle to show the direct value and impact of their programs on an organization’s bottom line or their contribution to a brand. The question of getting a good return on marketing spend has been at the forefront of marketers minds since clever people started coming up and spending money on, creative ways to sell products. Demonstrating a good return has been easier for some forms of marketing than others. Showing the financial impact of online marketing, for example, is relatively easy. Online marketing allows marketers to see direct connections between ad placements and consumer behavior. <br />It has however been significantly more difficult to measure the value of PR, however, since the effects of media coverage (a composite of headline, lead paragraph and text mentions in independent media coverage that is not paid for by the brand owner) on behavior has to be measured indirectly. While more difficult, it is not impossible to draw connections between how much a company spends on PR and how much value the company is creating.<br />‘Earned media’ that results from public relations efforts may be more important than advertising to brand value, especially for companies that sell feature-rich, high-involvement and complicated products such as consumer durables. Findings from the study reveal that industries that sell high involvement products - where a buyer invests time and effort in deciding what to buy - have much higher correlations between media prominence and brand value than industries selling low involvement products, which are more likely to be bought on impulse. <br />While debates may rage over exactly how to assess the value of brands, virtually everyone agrees that brands represent real and significant financial value to their owners. Managing a brand therefore requires careful and strategic investment and stewardship. But what are the drivers of brand value? Product quality, customer services, and in particular advertising, are some drivers most commonly cited and studied. One could interpret this study as showing that high brand value leads to more media coverage, it is still important for media coverage to be carefully managed since it is the window through which others will see the brand. <br />This paper argues the significance and identity as a profession as not just a service industry of influential experts but it has a strong connection to issues of size and economic impact on society at large. While most public relations practitioners would instinctively agree to the existence of this prolific industry, only a few studies albeit have actually been published on the topic within industry literature. This is lacking especially in the Indian context.<br />Chapter 1<br />Introduction <br />Today, it seems that there is the limitation of cost expense. Many corporation need to keep their expenditure as low as they can and also think carefully about cost efficiency and effectiveness. PR can take that responsibility because, in terms of MPR, there is low, and sometimes no cost of expenditure. Sometimes, the business is able to ask the media to release its news and to expand the time frequency, if it has good media relations. As a result, it can be modified to any kind of business including governmental, private and non-governmental organizations. Although PR could offer many advantages, there is the limitation of media control. Unlike the advertising, PR is powered by the influence of the media. That is to say, the satisfaction of time and space as well as news contents are confined by the hand of media, while, in terms of advertising, the company can control such issues by itself. Consequently, it seems that PR is more advantageous than disadvantageous. However, in some cases, the company needs to realize the PR drawbacks before making decisions. PR is not only managed by the internal influence, an organization, but the marketing perspective and consumer-orientation also power PR execution. Many companies are employing marketing public relations (MPR) which can lead the organization to outstanding achievement and effectiveness. <br />Public Relations involves a variety of programs designed to maintain or enhance a company's image and the products and services it offers. Successful implementation of an effective public relations strategy can be a critical component to a marketing plan. <br />A public relations (PR) strategy may play a key role in an organization's promotional strategy. A planned approach to leveraging public relations opportunities can be just as important as advertising and sales promotions. Public Relations is one of the most effective methods to communicate and relate to the market. It is powerful and, once things are in motion, it is the most cost effective of all promotional activities. In some cases, it is free. <br />The success of well executed PR plans can be seen through several organizations that have made it a central focus of their promotional strategy. Paul Newman's Salad Dressing, The Body Shop, and Ben & Jerry's Ice Cream have positioned their organizations through effective PR strategies. Intel, Sprint and Microsoft have leveraged public relations to introduce and promote new products and services. <br />Similar to the foundational goals of marketing, effective public relations seeks to communicate information to: <br />Launch new products and services. <br />Reposition a product or service. <br />Create or increase interest in a product, service, or brand. <br />Influence specific target groups. <br />Defend products or services that have suffered from negative press or perception. <br />Enhance the firm's overall image. <br />The result of an effective public relations strategy is to generate additional revenue through greater awareness and information for the products and services an organization offers. <br />Goals and Objectives <br />Good strategy begins with identifying your goals and stating your objectives. What are the goals and objectives behind your public relations strategy and can they be measured and quantified. <br />Each of these areas may reflect the goals your public relations campaign may seek to accomplish. <br />Press relations Communicating news and information of interest about organizations in the most positive light. <br />Product and service promotionSponsoring various efforts to publicize specific products or services. <br />Firm communicationsPromoting a better and more attractive understanding of the organization with internal and external communications. <br />LobbyingCommunicating with key individuals to positively influence legislation and regulation. <br />Internal feedbackAdvising decision makers within the organization regarding the public's perception and advising actions to be taken to change negative opinions. <br />Tasks - responsibility areas<br />Experts prescribers <br />Communication technicians <br />Communication facilitators <br />Problem solving process facilitators <br />Experts prescribers <br />Initiate and recommend PR projects<br />Develop long term strategic PR plans<br />Define PR problems and solutions<br />Serve as liaisons, interpreters and mediators between the organisation and its publics<br />Evaluate public opinion, program results and competitive intelligence<br />Plan a budget, operating on it, accounting for the outcome<br />Superve institutional advertising programs<br />Communication technicians <br />Arrange for production of printed matter, slides, films (News releases, house publications, publicity of products & services, competitive intelligence, shows, exhibits & special events)<br />Writing (preparation of speeches, scripts)<br />Editing (preparation of graphics or films)<br />Preparing speeches for others and giving speeches<br />Training spokespersons; being one<br />Communication facilitators <br />Industrial relations, <br />represent employer at various events, <br />contact other public officials, <br />co-ordinate activities among various functional groups to achieve PR objectives<br />Prepare reports, position papers, public statements<br />Submit newsworthy material to appropriate outlets<br />Problem solving process facilitators <br />Collaborate with other managers to define and solve organisational problems<br />Prepare annual PR plans<br />Implement approved plans and programs<br />Regularly analyse and report PR research data to management<br />Monitor actual results against planned performance<br />Monitor environmental developments likely to have a significant impact on PR performance<br />Chapter 1.1<br />Recession killing the marketing budgets<br />Today’s economic uncertainty is causing many companies to rethink and cut their marketing expenditures for year 2009. Managers are working hard to determine where next year’s smaller budget can be best spent.<br />What this means is that marketing budgets are among the first to be cut when managers are trying to find ways to drive down costs in order to retain shareholder confidence and stay afloat. Because marketing expenditure is treated as an annual expense, managers often justify the decimation of marketing budgets on the basis that the effects will only be felt in the current year. The view is that once the recession ends we can return to our previous levels of marketing expenditure <br />The Nielsen Company has just released data that shows advertising expenditure in the US fell 15.4% in the first half of 2009. A total of $56.9 billion was spent on advertising in the first six months of the year, $10.3 billion less than the same time period in 2008. All evidence that in times of recession, marketing budgets are amount the first to be cut.<br />A new Association of National Advertisers (ANA) study this summer shows that 53% of ANA member respondents believe their overall marketing budgets will be reduced up to 10%, with almost a third saying it will be in the 11-20% range. What else is new? Isn’t marketing seen as a luxury in some organizations? Are you battling the Big Cheese to maintain your marketing budget?<br />Our own MarketingProfs guru and founder, Roy Young, says we need to make marketing matter to the CEO. I guess these ANA members are having a hard time doing that.<br />The study indicates what respondents plan to cut:<br />69% said ad campaign media budgets<br />63% said production budgets<br />63% are making their agencies cut internal expenses and/or identify cost reductions<br />63% said travel and expenses<br />61% said eliminating or delaying new projects<br />When business is good, these basics can be applied to all marketing media including publication ads, tradeshow exhibits and direct mail. Today markets are down. Sales are uncertain and budgets are being reduced. Magazine advertising and tradeshows are expensive and ROI is difficult to track. As advertisers trim their budgets, publications will lose ad lineage and cut their editorial coverage and distribution. This means less people are reading a less interesting magazine that contains your ad. Though print media is ideal for creating top of mind awareness and reinforcing brand recognition, it seems more expensive during down markets. <br />Tradeshows also suffer during economic downturns. Attendees suspend costly travel and exhibitors reduce floor space or cut the number of events they support. Direct mail does not fare much better. Even with printers holding prices down, short run full color projects still begin around $1000 and go up. Add postage and direct mail becomes an expensive proposition. <br />Chapter 1.2<br />LG Electronics India, turnover in 2008 and in 2009.<br />LG India achieved Rs 10,730 crore turnover in calender 2008. Unfazed by the slowdown, LG Electronics India has revised upwards its revenue targets for 2009. While the turnover in the year 2009 could have gone down the Korean consumer electronic firm’s revenue grew by 20-25% against the original target of 15%. LG India is the country’s largest consumer electronics firm by way of revenue. <br />In August - September ‘09, the company saw a near 50% sales growth. The company has undertaken a spate of initiatives to ensure such a high growth rate — roll out India-centric products, build its brand, motivate employees through rewards and complete decentralisation of branches across the nation. <br />The company reported a 40% rise in sales in July-December 2009 from a year ago that helped total revenue for 2009 grow 21%, aided by robust sales of home appliances and LCD TVs. LG, whose total sales hit Rs 13,000 crore in 2009, has had a spectacular surge since entering India in 1997, though growth slipped to 10-15% in the last five years as demand waned.<br />LG's expansion plans come after it has set a 45% revenue growth target for 2010, the highest in six years, to generate Rs 19,000 crore in sales. The company sees sales to be largely driven by demand for LCD TVs and GSM handsets.<br />Chapter 2<br />Critical Review of Literature:<br />Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of Indian PR industry is worth $ 3 billion. Attrition has seized PR industry with its rate exceeding 40% even if its growing at an annual rate of 32% and likely to double its size to over US$ 6 billion by 2010 from over US $3 billion presently since corporates are relying more on PR professional to hike their brand image to take maximum benefits of current economic boom for increased sales & turnover volumes. <br />These findings are result of a random survey carried out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on “ATTRITION VS. PR & ITS FUTURE PROSPECTS” in which over 400 PR professionals views were elicited, however, adds that a result of growing opportunities costs in PR industry, attrition  has become a core concern. <br />Releasing its findings, the ASSOCHAM President, Venugopal N. Dhoot who himself is a lead consumer durables players said that over 90% of PR professional at entry levels with enthusiasm and passions for hard work are shifting for greener pastures with in the industry in a year’s time. <br />Venugopal Dhoot, whose group spends roughly Rs 3000 crore in building its brand image annually pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting to rope in PR professional  for their increased sales turnover as one of finest marketing strategies”. The survey reveals that pressures apart, in PR activities diversification of intellect is most attracting part which avail them lot of opportunities. A majority of PR professional said that in the economic boom, a huge competition has emerged for brand building as result of which PR agencies are in demand and quoting a very market driven prices for their services for which takers are available. <br />Since demand for PR professional are rising and so are opportunities galoring for relationship industries and it is because of this reason it has shown a growth rate of about 22-25% in last couple of years  which has risen to 32%  and the trend will continue in future and even grow for better, said Mr. Dhoot. Quoting finding of survey, the ASSOCHAM Chief said that by 2010, the PR industry size would grow to more than US $6 billion. According to estimates by the ASSOCHAM, the Indian PR industry comprises 1200-1500 agency with their manpower strength of between 30,000 to 40,000. Business is booming for the public-relations (PR) industry. <br />It is in this discipline that the industry has seen most growth and expects to see continuing growth in the future. In terms of vertical markets, healthcare has been identified by several of the industry as the fastest-growing sector; however, the public sector, the environment and corporate social responsibility (CSR) are all emerging as growth areas for PR. The overriding concern of the industry is the skills shortage. Almost all agencies are hiring, a trend that is itself indicative of growth, and some are looking outside the PR industry to bring in new skills. Although there are many thousands of small agencies and individual consultants serving very local markets, larger agencies are forging partnerships across the globe to meet demand from clients that themselves are extending their global reach. <br />There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations, Genesis PR, Hanmer MS & L and Vaishnavi, medium size ones with 4-5 branches and smaller city specific PR agencies. Many of these are affiliated or are Indian subsidiaries of global PR companies. For instance, Weber Shandwick and O&M have their India offices. Likewise, Fleishman Hillard has affiliation with Lexicon.  There are industry specific agencies like Text100 and 2020 for IT companies, Imprimis for health care companies, and Adfactors majorly to financial companies. <br />Public relation is being used as a supplement along with advertising to form an effective communication strategy. This is primarily because at times advertising does not suffice in communicating the exact message. Public relation services not only help in communicating their message but can also help in generating a favorable response. <br />A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that in several instances illustrate corresponding trends between increased media coverage and a desired business outcome occurring. For example, they speak of a campaign on the importance of mammograms with the desired business outcome being an increase in the number of relevant medical procedures undertaken. Looking at the number of articles published on the issue and comparing it to the number of medical procedures, a correlation seems to exist. This can be seen in the above graph which shows in blue the number of press articles on the issues and in red the number of medical procedures undertaken (over 2 years in the US).<br />The authors of the study readily admit that they are making a jump in assuming “cause and effect” but what they are looking for is a “preponderance of evidence” that supports a correlation between media coverage and business outcomes<br />The 2008 PR Week / MS&L Marketing Management Survey conducted by PR Week and Millward Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts, the reasons among those who would cut PR reflect a nagging problem for the industry – measurement and ROI. 65.9% of the respondents cited difficulty to quantify ROI, lack of effectiveness, or inability to measure PR efforts when asked why they would consider cutting PR budgets. <br />Noted American author and Marketing Expert, Sara Lee’s Schaillee holds the view that PR is never going to be an exact science; there is always a little bit of art and gut in it. PR is a difficult one to measure. What makes the measurement of PR easier, he says, is having a clear target audience and focused message. For work on the Senseo brand, which is geared toward “coffee-loving explorers,” the company has been able to measure the effectiveness of PR within the media mix, yet still finds measurement of PR to be difficult overall. The more specific the message that you’re bringing and the more narrow the target, the more measurable PR will be. To measure brand’s health on a consistent basis across all our brands the impact of different media mix elements is measured. <br />However, in an economic climate where budgets are tight, research and measurement are very often the first portions of a PR budget to be cut. Yet measurement is necessary to prove ROI, which can help increase budgets, providing a Catch-22 situation for firms and in-house PR pros. PR is vulnerable unless it can convince its clients to invest in measurement says MS&L’s Hass. despite those challenges, several companies have been able to put into place programs that measure the impact of their PR activities . According to the survey, 40.6% of respondents believe PR agencies do an “excellent” or “very good” job of measuring the effectiveness of their performance. This is at par with direct marketing agencies (54.8%), internet/new media shops (53.2%), advertising agencies (35.7%), and media agencies (31.3%). Public relations would remain vulnerable and it has to device a way to establish its ROI and values. If the PR Industry is going to continue the inroads, a way to demonstrate the value in an objective way instead of a subjective way is to be figured out. <br />Natalie Johnson, manager of social media communications for General Motors, an MS&L client, sees the company’s use of social media and networking as “a true grassroots approach” to PR. In his article in the Impact Journal in California, USA he writes, “Fundamentally we’re trying to go out and build relationships with those users who are interested in connecting with other people.” <br />KRC RESEARCH, in their report on ‘Market Research and Effective Public Relations’ the most common way market research is used in public relations is to draw attention. A timely and topical survey can be news that drives media coverage, getting our client’s name or brand or issues more visibility. The best surveys of this kind are short, easy to understand, and easy to explain, and are most likely to be created when the research firm and PR professionals work together to define the desired outcome (visibility for the brand? the category? the client?), then to develop a survey concept likely to drive the headlines we want, where we want them. Context Analytics a strategic communications research and consulting company provides customized, actionable analysis to leverage public perceptions in order to better manage corporate reputation. <br />Chapter 2.1<br />LG Electronics India<br />Established in 1997, LG Electronics India Pvt. Ltd., is a wholly owned subsidiary of LG Electronics, South Korea. In India for a decade now, LG is the market leader in consumer durables and recognised as a leading technology innovator in the information technology and mobile communications business. LG is the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide reach, latest global technology and product innovation. <br />One of the most formidable brands, LGEIL has an impressive portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT products. <br /> <br /> LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB). <br />The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and 1/2 months with the commencement of operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. This facility manufactured Colour Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit.The beginning of 2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.<br />In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that commences operations in October 2004. Covering over 50 acres, the facility manufactures LCD TV, GSM Phones, Color Televisions, Air Conditioners, Refrigerators, Microwave Ovens Color Monitors. Both the Indian manufacturing units has been designed with the latest technologies at par with international standards at South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world.<br />LG has been able to craft out in ten years, a premium brand positioning in the Indian market and is today the most preferred brand in the segment. LG Electronics is pursuing the vision of becoming a true global digital leader, attracting customers worldwide through its innovative products and design. The company’s goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by 2010. To achieve this, we have embraced the idea of “Great Company, Great People,” recognizing that only great people can create a great company.<br />LG strives to enhance the customer’s life (and lifestyle) with intelligent features, intuitive functionality, and exceptional performance. Choosing LG is a form of self-expression and self-satisfaction. Our customer will take pride in owning the amazing and take comfort in knowing he/she made a smart, informed decision. The LG brand comprises four basic elements: Values, Innovation, People, and Passion.<br />Chapter 2.2 <br />Press Releases<br />1. LG begins the New Year with the launch of its full touch screen handset <br />Date : 08-JAN-09<br />LG KP500 (Cookie), the latest full touch screen phone hits the Indian market at the most attractive price ever <br /> <br />2. LG achieves record sales of 2 mn DVD writers in Y2008 <br />Date : 07-JAN-09<br />100% growth over Y2007 <br />3. LG Electronics introduces First Time Ever in India -"Global Home Chef Award 2008" <br />Date : 10-DEC-08<br /> * Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec, 2008 <br /> <br /> 4. LG Presents Tech-Imagination at its best <br />Date : 14-OCT-08<br /> * Introduces World's best Feature-Filled Energy Efficient Monitors<br /> <br />5. Timeless memories this festive season with LG <br />Date : 07-OCT-08<br />* Launches two new 5 mega-pixel camera phones after the successful<br />launch of Viewty in India - the KC550 and the Secret (KF750)<br />* Dazzles with innovation, technology and style <br /> <br /> 6. LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers! <br />Date : 24-SEP-08<br />* First time ever Auto sliding speakers, 500w sound, Built-in<br /> 3.1-channel virtual surround sound and in-built woofers<br />* Full High Definition Models available in 32 inches and 42 inches<br />* Targets 30% market share in the FPD segment by 2008 year end <br /> <br />7. LG introduces ultra-slim ultra-light LED Notebook <br />Date : 15-SEP-08<br /> * Launches the P300 notebook<br />* LED Back-Light LCD perfect for high-definition images and easy on the eyes<br />* Targeted at the performance- and style-minded younger generation <br /> <br /> 8. Talk endlessly with LG KP199 GSM phone <br />Date : 01-SEP-08<br /> * Launches the new LG Dynamite KP199 <br />* Boasts of the best battery in its class <br /> <br />9. LG Electronics unveils the Steam Tromm <br />Date : 25-AUG-08<br />* Steam Tromm machine forays into the Indian market <br />* State-of-the-art design with latest technology <br />* Aims at a 30% market share in washing machine category in India by year end <br /> <br />10. Get 5 years warranty only on LG LCD monitors <br />Date : 18-AUG-08<br />Special freedom offer starts on 16th August 2008 <br />11. LG unveils new B2B monitor <br />Date : 24-JUL-08<br />* Launches 1942S LCD monitor <br />* Target segment: commercial & business establishments <br />* Designed to help people work more effectively <br />12. LG Electronics unveils its exceptional Top Loading Washing Machines <br />Date : 22-JUL-08<br /> * International Top Loader machine models foray into the Indian market <br />* State-of-the-art design with latest technology <br />* Aims at a 30% market share in washing machine category in India by the year end <br /> <br /> 13. LG joins hands with Redington <br />Date : 01-JUL-08<br /> * Strengthens distribution structure <br />* Caters to the increasing consumer demand for LG Notebooks <br />14. LG launches world’s first frameless Plasma TV <br />Date : 30-JUN-08<br />* Aesthetically designed PG61 launched for the Indian market<br />* Winner of 2008 CES Best of Innovations Award<br />* Targets 30% market share in the FPD segment by 2008 year end <br /> <br />15. LG Electronics announces prike hike on IT Peripheral products <br />Date : 02-JUN-08<br /> * Price hike announced on monitors and OSDs <br /> <br /> <br /> <br />Publication: Financial Express<br />Publication: Business Standard<br />Publication: Mint<br />Publication: Living Digital <br />Publication: Hindu<br />Publication:Digital<br />Chapter 2.3<br />Industry Coverage of Consumer Durables India<br />It is estimated that over next two decades, the income level will almost triple and India will climb from 12th position to become the 5th largest consumer market by 2025. As per an estimate, over 290m people will move from desperate poverty to a more sustainable life, and India’s middle class will expand by over ten times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban populace, but rural India as well. It is estimated that annual real rural income growth per household will zoom from 2.8% over past two decades to 3.8% in next two.One of the industries to wallet all the benefits arising out of this growth, among others, is consumer durables.<br />INDUSTRY ANALYSIS<br />With easy availability of finance, emergence of double-income families, fall in prices due to increasing competition, government support, growth of media, greater disposable incomes, improvements in technology, reduction in customs duty, and growth in consumer base of rural sector, the consumer durables industry is growing at a fast pace. Given these factors, a good growth is projected in the future too.<br />Overview<br />Consumer durable products have life expectancy of at least three years. These products are hard goods, which cannot be used at once. The consumer durables market can be stratified into consumer electronics comprising TV sets, CONSUMER DURABLE players and others; and appliances like washing machine, microwave ovens and air conditioners. The consumer durable market in India has seen a proliferation of brands and product categories in recent years. The industry is dominated by CTVs. Most major multinational consumer durable brands, especially Korean and Japanese, are operating in the country with varying degree of success. One of the biggest bottlenecks for multinational companies entering Indian market is a dilapidated distribution network.<br />Penetration level of white goods<br />The penetration level of white goods in India, vis-à-vis other countries, is still in a very nascent stage. In CTVs, India is having a very minuscule penetration level of 24% compared with 333% in the US, 235% in France and 98% in China. Talking about an entire white goods portfolio, the demand in India, during 2006-07, was 319 per 1,000, which is further expected to rise to 451 per 1,000 by 2009-10. This increase is going to be backed by:<br />• Booming economy<br />• Changing lifestyle<br />• Higher disposable income<br />• Falling price<br />SWOT analysis for the sector<br />Strength<br />• Presence of established distribution networks in both urban and rural areas<br />• Presence of well-known brands<br />• Increasing organised sector share vis-à-vis the unorganised sector<br />• Appreciating rupee compared with dollar<br />Weakness<br />• Seasonality of demand, high during festive season<br />• Poor government spending on infrastructure<br />• Low purchasing power of consumers<br />Opportunities<br />1 Lower penetration level of white goods vis-à-vis other countries<br />2 Unexploited rural market<br />3 Rapid urbanisation<br />4 Increasing purchasing power of consumers<br />5 Easy availability of finance<br />Threats<br />􀂾 Higher import duties on raw materials imposed in Budget 2007-08<br />􀂾 Cheap imports from Singapore, China and other Asian countries<br />OUTLOOK FOR THE SECTOR<br />Presence of many competitors in Consumer Durables and the influx of so many new media the PR function of getting media coverage would be at a real high. There is a perception that media efforts would result in sales. How much of it is true is a question not yet answered. <br />With easy availability of finance, emergence of double-income families, fall in prices due to increasing competition, government support, growth of media, higher disposable incomes, improvements in technology, reduction in customs duty and growth in consumer base of rural sector, the consumer durables industry is growing at a fast pace. Given these factors, a commendable growth is projected for the future.<br />The rural consumer durables market is growing faster at around 25% annually as against the urban market, which is growing at 7-10% only. Consumer preference for high-end quality and high-value products is driving the growth of the consumer durables industry across all segments and the trend will propel growth in the future.<br />Chapter 2.4<br />Public Relations for LG Electronics India<br />LG electronic PR (LGePR) was first launched back in 2004, LG Electronics shared information through PR Info. It was a simple data base of press releases and marketing materials. LGePR took it to another level and strengthened its news monitoring and added an evaluation function. In the beginning, a total of 16 countries used the system and as the system went through upgrades and changes, the number of participating countries increased also.<br />LG Electronics takes a two-pillared approach in its PR activities. <br />The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better position itself as a top notch brand in the world market. To the end, efforts are being made at the headquarter level to strengthen global media relations. <br />The second pillar is aimed at product PR in the local markets, thereby boosting overall sales with its respective target market strategy. In this regard, subsidiaries beef up PR activities with the local media. <br />Against the backdrop, LGePR assumes a bridging role linking the LG Electronics headquarters and its subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping information-sharing among local PR agencies and strengthening existing functions such as reporting and databasing.<br />LG in News<br />Source: Data received from Hanmer M S & L Communications Pvt Ltd. Data provided is old because of company’s policy on confidentiality about its database.<br />Chapter 2.5<br />Functioning of LG India’s PR Agency<br />The “PR center” has been broken down into two categories; HQ Center and PR Room. <br />While HQ Center provides materials on corporate PR strategies, PR Room provides success cases to be shared among participating agencies. The “Press Release” provides HQ and local market released PR sources and the “Community” menu works as a bulletin board among users to help information-sharing. <br />The Agency lists and provides articles (news coverage) published through LG’s overseas PR agencies along with related information such as update date, publication date, headline, article (news) grade, media and country. Among the posted articles, “top news”, is sorted out.<br />The Agency also issues PR Value Reports to evaluate PR performance, based on a criteria which includes the number of news releases and articles (news coverage), media grade and article (news) grade among many others.<br />LGePR is basically composed of 6 areas which are News Monitoring, Press Release, HQ Center, PR Room, Community and My LGePR. One can view all the latest uploaded news coverage , press releases from HQ and local regions, latest notice from HQ and daily top news. <br />Workflow at the agency level is as follows: submit and modify Target Media List , assess PR value, upload coverage and press releases, check the status of the files and check global performance report issued monthly. Meanwhile, news approval, top news selection and sharing of global performance report is the order which the HQ operates.<br />When local PR agencies (countries) upload their news articles in MY LGePR, they are required to mark the media which ran the articles in order to tally PR value. Target Media List is a catalog showing all those media covering LG Electronics and related information. Overseas PR agencies beginning their operation should fill out the template provided and submit it to the HQ.<br />Information to be presented in Target Media List, are publication, media type, media overview, issue frequency, language, industry, circulation, foundation date and standard Ad value. First, local PR agencies (countries) are required to put name of listed medium.<br />Second, the agencies (countries) are required to mark the specific media type of the listed medium. The types are newspaper, magazine, TV, radio and on-line.<br />Third, the agencies (countries) are required to present characteristics of the media deemed as significant in Media Overview column. All Grade A media must be given a media overview. For example, Wall Street Journal, a Grade A media, should be given a brief introduction such as “one of the world’s top three economics newspapers.” <br />Fourth, the agencies (countries) are required to specify whether listed media are daily, weekly, bi-weekly or monthly publication.<br />Fifth, the agencies (countries) are required to specify the language the media is published.<br />The agencies (countries) are required to put official circulation figures and are required to specify the foundation date of the listed media.<br />The number of listed media is left to the local PR agencies discretion and their knowledge about the local media. Familiarity to local media are respected in this regard. We, however, require the submitted list to be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to HQ.<br />As for the media grade, listed media should be categorized into 3 groups. A, B and C. <br />The categorization should reflect target readers/ audience, circulation and industry trends. <br />As a proper breakdown for grouping, the share of media in Group A should be 20% out of the entire listed media while those in Group B and Group C should approximately account for 70% and 10% respectively.<br />Calculating standard Ad Value.<br /> <br />First, broadcast coverage ; Ad Value for TV will break down into “Highest” class, matching prime time price and “Average” class of B-Time/ non-prime Time level. Second, Ad Value for print; based on using the highest value. Finally, to calculate Online Media Ad value Ad value of the highest-priced banner Ad on the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by UV (Unique Visitor/one day).<br />PR Value assessment<br />PR value is an index we use to evaluate our local PR performance. The Agency generates PR value, reflecting the inputs such as media grades and article (news) grades. And, here is how PR Value is assessed. The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for Print media and per second in case of Broadcast media. Then, we multiply the gained ad value by weights of the covering media and the article. What we get, finally, is PR value. <br />All these activities are to pursue a goal-oriented PR.<br />Chapter 3:<br />RESEARCH METHODOLOGY:<br />While the papers, journals and articles read claim proof of causality between media coverage and business results, the case studies cited (in the annexure) offer very high correlations, which indicate a relationship between the two. The research design used for this research is Exploratory research Design.<br />This research was conducted in the Delhi/NCR region.<br />Chapter 3.1<br />Calculating a correlation<br />A measure of the strength of linear association between two variables. Correlation will always between -1.0 and +1.0. If the correlation is positive, we have a positive relationship. If it is negative, the relationship is negative.<br />Our two variables X and Y are : <br />X = no. of articles publishes or news covered about LG Electronics India in the newspapers, TV Channels, Radio, Online, Magazines<br />Y = Volume of sales<br />Formula:<br />Correlation Co-efficient :<br />Correlation(r) =[ NΣXY - (ΣX)(ΣY) / Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] <br />where <br /> N = Number of values or elements <br /> X = First Score<br /> Y = Second Score<br /> ΣXY = Sum of the product of first and Second Scores<br /> ΣX = Sum of First Scores<br /> ΣY = Sum of Second Scores<br /> ΣX2 = Sum of square First Scores<br /> ΣY2 = Sum of square Second Scores<br />[Correlations use the Pearson Product Moment Coefficient (r=X), which is a measure of association describing the direction and strength of a linear relationship between two variables. A perfect correlation is an r=1.0.] <br />Aggregate Score<br />Positive, on-message media coverage seems to have an effect on outcomes.  But what happens when competitive products, services or concepts are a major factor? To bring in quantity and quality of an organization’s non-paid media coverage compared with that of its competitors we device a system where in calculate an organization’s Aggregate Score. We can attain the aggregate score by subtracting negative coverage from positive and neutral media coverage.<br />Steps<br />Capture media coverage of the organization and its competitors. <br />Measure the tone of each story. Then, add together all neutral and positive media values or impressions, and subtract all negative, to get net favorable results.<br /> <br />Chapter 3.2<br />Effect of PR on Consumer Behaviour<br />This chapter will link to the consumer trends that were sighted while undertaking the research.<br />A questionnaire was developed and effect of PR on consumer’s mindset was noted. The facts that come out Prove the strength of the correlation that was established.<br />Information Needed<br />The information needed can be classified into the following heads: -<br />Primary: - <br />Media watching behavioiur of the consumer.<br />Media following habits of the consumers.<br />Preffered media typesof consumers of different age groups, gender and professions.<br />Purchasing behavior of the consumer.<br />Secondary: -<br />Details about the Consumer Durables and Public Relations Industry<br />Concepts and theories on Brand Equity and Brand Value, Positioning , Consumer Behaviour and Media Proliferation.<br />Sample Design:<br />a) Sample Unit: The sample unit for conducting the survey consist of various people from different age group, gender, occupation etc.<br />b) Sample size: The sample size for the survey was 200.<br />c) Sampling Procedure: - Simple random sampling method was used to choose the respondents <br />Sources of primary data<br />The primary data was collected through a questionnaire from various people. These were the probable owners of the consumer durables.<br />Sources of secondary data<br /> The secondary data was collected from research journals, research and informative websites.<br />Scaling techniques<br />Scaling techniques used in the questionnaire were Likert Scaling<br />Questionnaire design <br />Keeping in mind the information required for achieving the objectives of the research, the questionnaire was designed. The questionnaire was a blend of following types of questions: -<br />Questions generating classification and identification information (name, phone number, profession, address of the respondent)<br />Dichotomous and multiple choice questions.<br />Codes were assigned to the responses of the classification questions and to the rating question <br />5- Very satisfactory<br />4- Satisfactory<br />3- Neither satisfactory nor dissatisfactory<br />2- Dissatisfactory<br />1- Very Dissatisfactory<br />Data Collection: The data was collected from various sources as defined in the plan. The data was collected by both Face-to-Face interviews and telephonic interviews.<br />Data Analysis and representation<br />The data collected was analyzed using simple statistical measures and frequency distribution. The average ratings of performances were arrived at by taking out the simple average of the sum of the ratings given to a particular performance parameter.<br />The representation is done by using graphs and charts. <br />Chapter 4<br />Data Analysis<br />While debates may rage over exactly how to assess the value of brands, virtually everyone agrees that brands represent real and significant financial value to their owners. Managing a brand therefore requires careful and strategic investment and stewardship. But what are the drivers of brand value? Product quality, customer services, and in particular advertising, are some of drivers most commonly cited and studied. <br />Until now, however, there has been relatively little research into the contribution of public relations to brand value. In this study, we assessed the statistical correlation between a brand’s media prominence (a weighted composite of headline, lead paragraph and text mentions in independent media coverage that is not paid for by the brand owner) and brand value.<br />Chapter 4.1<br />Correlation<br />X = no. of articles publishes or news covered about LG Electronics India in the newspapers, TV Channels, Radio, Online, Magazines<br />Y = Volume of sales<br /><ul><li>VariableQty (Jan 2009 – Jun 2009)X1428Y650 Mil USD
  2. 2. Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a consumer durable company) were highly correlated. During 2004-05 correlation was r=0.97 and during 2003-04 it was r=.98.</li></ul>Chapter 4.2<br />Findings from the Questionnaire about consumer behavior and trends.<br />1. Sources of Information<br />(For the consumer to know more about its consumer durable brand)<br />The respondents placed the news derived from the newspaper and the magazines to be of much utility to them than the other media. These are chosen mostly for their credibility and convenience of reach and readership. While family and friends giving word of mouth publicity is a good approach but it is only a chance that the topic of Consumer durables gets initiated. Public Relations functions to maintain the brand in news even when there is no occasion to. <br />LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would represent India at the ceremony. By this the LG India brand was in news since January - February even when the sales are at the lowest. Brand remembrance led to high sales of Air Conditioners and LCDs soon after.<br />2. Publications read<br />(Type of Publications the consumers tend to read)<br />The respondents from random backgrounds have been found to be reading mainlines the most. As per the records provided by LG Electronics, the maximum number of coverage for consumer durables is in the mainlines or the financials. <br />3. Page read with higher emphasis<br />(This is based on the consumer’s interest)<br />The respondents are found to be reading the Business Page with maximum emphasis than the other pages which only have individual excitement for each individual. Business Pages carry news based on Corporate and the Company i.e. LG in our case. It also provides information on the Industry i.e. Consumer Durable and any new product launches or sponsorships. Lastly it gives the quarterly/ Annual performance of the company. LG focuses on this page for its coverages. The news clippings attached have been published in The Economic Times, The Business Standard etc.<br />4. Current Consumer Durable<br />Most of the homes have consumer durables from LG as the figure depicts.<br />5. Satisfaction assessed with the current brand<br />People have shown their satisfaction with the brand i.e. LG. Shows high brand value and higher Brand Equity, a result of effective Public Relations.<br />6. Preferred brand to buy<br />The respondents have replied for LG to be their preferred brand among others. This reflects their attitude and the equity they hold with the brand. Hence, we see that How Effective Public Relations Contributes to a Brand.<br />7. Varied buying decisions<br />The consumers have shown that their decision to buy a consumer durable would depend on accepted brand, maximum recall and the brand they have been reading about. Therefore, the brand which is in news and has maintained itself throughout the year has made it to the minds of the people.<br />This brings to our understanding that for right Postioning we the Brand Managers of the Company are to concentrate on better Media Proliferation. This is where the domain of Public Relation comes in.<br />8. Influence on mindset<br />The respondents have agreed that any news on brand that they hear makes them react to it as a choice or not. <br />9. Factors considered while buying<br />Image of the company and its reputation in the mind of the consumer are the factors considered while taking a decision on whether to buy the consumer durable or not.<br />The image/ reputation is a result of effective public relation. With the news story on LG India coming out with Star of India Range of consumer durables directed towards the Indian Homemakers, LG has earned the image of a respected, middle income based and a brand that cares.<br />10. Decision makers at home<br />Consumer Durables being good s of ‘high involvement’ are a sensitive choice to make. The respondents have chosen the decision of buying to be a collective choice. When we see that it is a collective choice, we also see that it is the durable which is much researched on. Effective Public relations give a platform to begin the research from and undertake the reviews etc. <br />11. Readiness to pay higher price<br />Readiness to pay a higher price is the biggest Litmus Test for any product. The respondents have chosen their brand to be LG and have agreed to show no reluctance in paying a higher price for it.<br />Chapter 4.3<br /><ul><li>Innovative ways of PR implied by LG India's PR agency
  3. 3. PR follows the marketing function, i.e. it brings the concept of consumer-orientation. Corporate performance is up to the consumer’s thinking and attitude. There are two types of PR consisting of pro- active and reactive.
  4. 4. They are regarded as a cycle, i.e. the proactive strategy is required to act first, and the reactive will be performed later. However, they are explained in more detail as follows:
  5. 5. 1. Proactive: The technique that influences the company’s strengths through long-term marketing objectives and policy, i.e. the marketer tries to release the company’s benefits and its products or services in order to achieve its goal; gain the highest sale and good image and the highest revenue.
  6. 6. This type of this PR strategy is “offensive rather than defensive, opportunity-seeking rather than problem-solving, and proactive rather than reactive”. In other words, for this PR form, the marketer tries to seek the opportunity that is influenced by internal factors such as its reputation, reliability, and life-long history, instead of dealing with problems. At the same time, the marketer pushes such opportunities to support and publicize the matters that the company wants. As a result, the output of this type will be positive. The process of this PR form, like PR process, consists of decision making, planning and programming. The company makes a decision which opportunity is offered, then, it is planned how to use that chance to meet the required goal, what medium/ media should be used to carry the message, and what kind of event should be created, and eventually communicated to the consumers. However, all of them are foreseeable, if not entirely controllable. To conclude, the proactive technique provides the company with how to do it, but not what to do.
  7. 7. 2. Reactive: Unlike the proactive, the reactive seeks to find a solution to solve a problem that is regarded as weaknesses of the company. As a con- sequence, the company want to defend itself and get rid of all of the facets that threaten the company, with the purpose of restoring the company’s reputation, preventing market erosion, and regaining lost sales. For this method, the company needs to concern itself with both how to do and what to do. That is to say, in terms of how to do, which channel and media as well as event should be used; on the other hand, which performance to use and what is to be done.
  8. 8. In general, PR provides both benefits and drawbacks as follows. In terms of advantages, first of all, PR can effectively and efficiently create credibility by supporting other marketing communication tools, because information released is based on facts and rationality even though it is positively publicized. Unlike only a power of advertising, for instance, some advertisers use different techniques such as half-truth telling and exaggeration only for the purpose of selling goods. As a consequence, the organization is more reliable and gains more positive opinion and attitude as well as distributes correct knowledge among the public. Apart from giving a good point for its own organization, its products are also granted at the same time. In a favour of visibility and reach, it means there is a high ability of the consumer’s reach and aware- ness. There are several reasons to support such opinion. Due to very expensive advertising rates, many companies invest a lot of money. However, PR can save such bulk budget and sometimes advertising can also be replaced by the influence of PR.
  9. 9. Also, nowadays, the company is encountered with the problem of advertising clutter. Today, it seems that there is the limitation of cost expense. Many corporation need to keep their expenditure as low as they can and also think carefully about cost efficiency and effectiveness. PR can take that responsibility because, in terms of PR, there is low, and sometimes no cost of expenditure. Sometimes, the business is able to ask the media to release its news and to expand the time frequency, if it has good media relations. As a result, it can be modified to any kind of business including governmental, private and non-governmental organizations.
  10. 10. Product Involvement : Effectiveness of public relations
  11. 11. The relationship between media prominence and brand value depends on “product involvement”. It is the degree to which customers research a given product or solution prior to purchase. Media prominence was more associated with brand value for “high involvement” products compared to “low involvement” products. Advertising expenditures, however, were a leading indicator only for “low involvement” products, and accounted for very little brand value among “high involvement” products.</li></ul>Media prominence was a particularly important component of brand value for computer-related industries, such as software and hardware manufacturers, as well as computer and Internet service companies, accounting for 48 percent of differences between companies’ brand values.<br />The results suggest that, in general, media prominence accounts for approximately one quarter of brand value, although this value is often higher for high-involvement brands, and particularly so in technology. This underscores the importance of managing and growing brand value through public relations efforts.<br />Chapter 5<br />Conclusion(s) and RECOMMENDATIONS<br />Public Relations has proved to be a very powerful tool for LG India. It had employed its marketing budget for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India). This gave them enough time to prepare the consumer’s mindset and build a high brand image and reputation. Over the period the consumers attached a higher Brand Equity to the brand LG as compared to others.<br />We see the influence of PR in the consumer’s buying behaviour. The buyer decision process comprises of the need recognition , information search, evaluation of alternatives, purchase decision and post purchase behaviour stages.The Public Relations come to effect majorly at the information search phase. And this is where it is of help to the consumer making a correct collective choice for the high-involvement good.<br />How a company through PR can influence buyers in selecting alternatives.<br />Real Repositioning<br />Psychological Repositioning<br />Competitive De-positioning<br />Influencing by promoting the major attributes<br />Influencing on the neglected attitude<br />Persuading the buyers to change their ideas for major attributes<br />Visit the web site of almost any global public relations firm, and you’ll find a commitment to market research. There’s a reason. Good market research is critical to building and measuring effective public relations campaigns. Most people know, of course, that opinion polls can be good ways of generating visibility. They provide news and interesting facts that can help draw media attention and get a brand or a message into the news. But market research plays a much bigger role. It can be invaluable in uncovering the insights and understanding needed to come up with that big idea on which to rest a program. It can be used to develop and test messages, to make sure that they’re as relevant and compelling as possible. It can be used to develop and test materials—that is, the speeches, brochures, Web copy, toolkits, advertisements, and the other collateral that can bring a campaign to life. And, of critical importance, it can be used to measure effectiveness.<br />Getting the Messages Right. One of the first rules of communications is that you cannot say everything to everybody. You have to choose, and effective communications are often about repetition—repeating one key idea in as many places as possible. Identifying that one key idea can be the difference between success and failure, and Public Relations can help identify it. Surveys can be used to identify the attributes of a product or program that are most appealing or interesting, or the arguments that are most persuasive. Focus groups can be used in a similar way, and they can also help us understand why people respond more positively to some messages than others. In addition, even when the clients kalready what messages they want emphasized, research can help emphasize them in the right way. <br />Getting the Materials Right. A brochure or poster or Web site can look great at the office, but consumers do not always react to things the way we hope or intend. Particularly when the client’s investment in materials is substantial, Public Relations is a good way to make sure materials draw attention, communicate clearly, and deliver the right messages.<br />In addition, new online technologies make using research to test materials faster and less expensive than ever, and in more and more places around the world. Particularly in B2B campaigns, where our target audiences often have high speed Internet access at work, taking the time to have a small sample look at materials and react to them—do they like them? Would they read them? What is their main point? Are they believable?<br />What needs to be improved or changed? — Can make an enormous difference, not only in<br />the effectiveness of the materials, but in building our clients’ confidence that they get the job done right.<br />Getting Attention.<br />Of course, the most common way market research is used in public relations is to draw attention. A timely and topical survey can be news that drives media coverage, getting our client’s name or brand or issues more visibility. The best surveys of this kind are short, easy to understand, and easy to explain, and are most likely to be created when the research firm and PR professionals work together to define the desired outcome (visibility for the brand? the category? the client?), then to develop a survey concept likely to drive the headlines we want, where we want them.<br />When a PR campaign is intended to create awareness or influence perceptions, research is a critical piece of the ROI puzzle. By designing carefully targeted research programs at the very beginning of a campaign, research can provide real data to measure whether awareness in fact increases, or perceptions in fact change.<br />Of course, as most public relations professionals know, market research can be costly. What they don’t always kis how scalable it can be. It may not make sense to invest in largescale quantitative surveys, but creative research agencies, experienced in public relations and communications research, can generally find ways to provide insights, testing, and measurement that fit within a campaign’s budget. Good ideas, effective implementation, and measurement. These are pillars of good public relations, and research enhances them all.<br />Annexure<br />Case Studies<br />1. LG Electronics<br />SITUATION<br />§ LG Electronics Mobile Communications Company (LG) (www.lge.com) is a leading producer of UMTS (WCONSUMER DURABLEMA), CONSUMER DURABLEMA and GSM handsets. LG began as a late entrant in the GSM segment in India; therefore it was an uphill task to get consumers to embrace the brand which was dominated by Nokia the current market leader; besides, draw their attention from newly launched phones especially the iPhone which was making news worldwide.<br />§ To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it as a lifestyle brand rather than just an innovative gizmo.<br />STRATEGY<br />§ Position the LG Viewty as a top-of-the-line smart phone with style, an iPhone alternative.<br />§ USP was proposed - “LG Viewty – the iPhone killer”, a state-of-art multi functional mobile<br />device which highlighted its innovative features.<br />§ Create and leverage a brand ambassador that would influence target consumer audiences.<br />§ Throughout the launch, the goal was to incorporate LG Mobile's brand promise of ‘Life is Good’s an underlying aspect to the new LG Viewty brand.<br />PROGRAM<br />§ Pitched story ides to key reporters across media.<br />§ Sent brochure/press kit to key technology publications and lifestyle magazines.<br />§ Organised an Asia press tour to ‘Viewty’ launch in Macau for media.<br />§ Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador.<br />RESULTS<br />§ LG Viewty received an overwhelming response in excess of 200 stories and an equally positive feedback across all media. LG Viewty became a rage in the country and enquiries were pouring in for the LG GSM team.<br />§ Prominent coverage in NDTV, Zee Business,T3 ,Hindustan Times, My Mobile, Financial Express, Economic Times from Asia launch in Macau.<br />§ Sales of phones significantly exceeded forecasted target of 500,000, setting several internal records.<br />2. DaimlerChrysler – A Green Evolution<br />SITUATION<br />§ Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of commercial vehicles in<br />the world, and especially, the Mercedes-Benz luxury car.<br />§ Being a trendsetter, they wanted to highlight the need for a clean and pollution free environment;and for this, they were<br />showcasing their new car range (C-class) running on Biofuel.<br />STRATEGY<br />§ To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the country from<br />North to South and then measure the impact of the carbon footprint.<br />§ This in turn would position DCIL’s (DaimlerChrysler India Ltd) commitment to Ecology and Environment – a CSR<br />initiative and at the same time be a role model to the entire automobile industry.<br />§ Educating the target groups about Bio Fuels/alternative fuel options available.<br />§ Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim Germany who would be conducting the experiment thereby adding genuineness to the entire campaign.<br />PROGRAM<br />§ To highlight this mega development - the target was niche publications (National media, regional and local media)<br />concerned with environment, corporate responsibility, science and technology.<br />§ Also through this initiative leverage DaimlerChrysler’s long-term commitment to Indian market.<br />§ Plan Press Conferences even 1-1 Interviews with key DCIL members.<br />§ Photo opportunities (cars on display) at various centers<br />§ Test ride to promote the car – ideally given to key senior auto journalist.<br />RESULTS<br />§ The cars did the 5,900 kms run without any hitch covering 9 cities over a period of 35 days.<br />§ The emissions were negligible thereby maintaining the car’s high standards of engineering.<br />§ People have acknowledged the role of hybrid models/alternative fuels.<br />§ 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles highlighting the need<br />for Biofuels.<br />CNBC-TV 18 – Leading The Pack<br />SITUATION<br />§ CNBC is India’s No.1 Business news channel. The channel's benchmark coverage extends from corporate news, financial markets coverage, expert perspective on investing and management to industry verticals and beyond.<br />§ There were other channels in the market in the same category and the challenge was to differentiate CNBC-TV18 from the clutter of other news channels.<br />§ To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC AWAAZ and the other ventures such as - SAW, moneycontrol.com, etc.<br />STRATEGY<br />§ Showcased Corporate & Financials of CNBC-TV18.<br />§ Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows.<br />§ Highlight major marketing events of CNBC-TV18.<br />PROGRAM<br />§ Initiated coverage of their various shows such as Storyboard, India business<br />hour, Face of the nation etc. in leading newspapers and magazines.<br />§ Highlight the other channels in the bouquet of TV 18, thereby leveraging its<br />qualitative advantage in terms of reach and the cost effective ROI on advertisements.<br />RESULTS<br />§ Established CNBC-TV18 as the leading business news channel in India– the only credible source of business information amongst the target audiences comprising of corporate, investors, analysts, media etc.<br />§ CNBC-TV18 leading in TAM Ratings.<br />Sony Pictures (India) – Casino Royale<br />SITUATION<br />§ Sony Pictures India is one of the global divisions of Sony Pictures Entertainment, the world wide leader in the television and film production/distribution industry. In India they were going to launch the Bond movie ‘Casino Royale’ and they needed good publicity to justify the worldwide franchise of the Bond lineage.<br />§ Though Bond is known worldwide and has a mass appeal, this time around the actor playing Bond was new and there had been a lot of negative publicity around him. The distributors did not want to take a chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie.<br />STRATEGY<br />§ Create curiosity about the movie to draw millions to the box office.<br />§ To create hype around Casino Royale and the new Bond – Daniel Craig.<br />§ Generate awareness about the legend that began with ‘Casino Royale’ - the novel in which James Bond earned his 007 title. The progression from a dutiful secret agent into an all round hero with the ‘Licence to Kill’.<br />PROGRAM<br />§ Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and magazines, which highlighted the various aspects of the Bond persona such as ‘Look & Style’ of Bond, Bond’s favourite drink-The Martini, Hi-tech gadgets et al. in short the Bond quotient which generated enormous publicity for the Bond franchise.<br />RESULTS<br />§ Sony Pictures India release for "Casino Royale“ by far had the biggest opening for any Hollywood movie.<br />§ The movie grossed Rs 15 Cr over the 3 day weekend. Besides, the high profile campaign helped in every possible way to counteract any negativity/hate campaign the actor had for the lead role.<br />2. <br />Sources: Philip Kotler<br />3. <br />EVALUATION OF ALTERNATIVESSELECTIVEPERCEPTION DISTORTION RETENTION BRAND IMAGEINFORMATION SEARCH (SOURCES)PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL<br />Sources: Mass Communication and Us (Gandharv Walia)<br />4.<br />6 - 12Types of Buying-Decision BehaviorDifference between brandsSignificantDifferencesComplex buying behaviorLowFewDifferencesDissonance-reducing buying behaviorHabitual buying behaviorVariety-seeking buying behaviorHighInvolvement Level<br />Sources: Kotler<br />5. <br />Sources: Shekhar and Premanshu (PR in India)<br />6. <br />The Buyer Decision ProcessNeed recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behaviorConsumers exhibit heightened attention or actively search for information.Sources of information:PersonalCommercialPublicExperientialWord-of-mouthProcess Stages <br />Sources: Shobhit Bakshi ( The Buyers’ Mind)<br />7. <br />Source: A Study on Public Relations Variables in Marketing Mix Modeling by Brian G. Smith<br />8. QUESTIONNAIRE<br />Dear Respondent,<br />Good morning / afternoon.<br />I am student of MBA (G) doing Major Research Project. <br />The research deals with gathering your view on consumer durables. <br />I would request you to answer a small questionnaire so that we can know your valuable opinion.<br />Name: Contact Number:<br />Age:Marital Status:<br /><ul><li>How do you get the product Consumer Durable related news?
  12. 12. Newspaper and magazines
  13. 13. Friends and family
  14. 14. The impact of TV advertising
  15. 15. TV news
  16. 16. Online
  17. 17. Other
  18. 18. Which publication(s) do you read?
  19. 19. Financials
  20. 20. Mainlines
  21. 21. Regionals
  22. 22. Magazines
  23. 23. What do you read majorly in the newspapaer:
  24. 24. Main Page
  25. 25. Sports Page
  26. 26. Business Page
  27. 27. Editorials
  28. 28. Political
  29. 29. Does getting to kabout the brand influence your decision to buy the same?</li></ul>Yes No Cant Say<br /><ul><li>What factor do you consider before buying the CONSUMER DURABLE?
  30. 30. Price
  31. 31. Features
  32. 32. Reputation
  33. 33. Image
  34. 34. Competitor
  35. 35. Which CONSUMER DURABLE brand do you like most?
  36. 36. IFB
  37. 37. Videocon
  38. 38. Sony
  39. 39. LG
  40. 40. Samsung
  41. 41. Godrej
  42. 42. If you intend to buy (or replacement) your CONSUMER DURABLE, what brand you will eventually choose?
  43. 43. LG
  44. 44. Videocon
  45. 45. Samsung
  46. 46. Godrej
  47. 47. Sony
  48. 48. IFB
  49. 49. Have you recently bought any of the following products? If yes of which company?
  50. 50. Frost-free refrigerators
  51. 51. CTVs (21'' and above)
  52. 52. Fully automatic washing machines
  53. 53. Air-conditioners
  54. 54. Microwave ovens
  55. 55. How does your decision vary before buying consumer durables?
  56. 56. Go for a new brand
  57. 57. Go for the poplar brand
  58. 58. Go for brand with maximum recall.
  59. 59. Go on experience
  60. 60. Who’s the decision maker in the family?
  61. 61. Collective choice
  62. 62. Children centric
  63. 63. Mother
  64. 64. Father
  65. 65. Grand Parents
  66. 66. What is the key element that leads you to buy a CONSUMER DURABLE product:
  67. 67. Service
  68. 68. Experience
  69. 69. Access
  70. 70. Price
  71. 71. Product features
  72. 72. Would you be willing to give a higher price for the product of your choice of company?
  73. 73. Yes No Can’t Say</li></ul>Chapter 6<br />References <br /><ul><li>Background (personal) characteristics of the PR managers (Grunig 1984, Habermann et al. 1988, Kitchen and White 1992, Panigyrakis and Veloutsou 1998, Panigyrakis and Veloutsou 1999)</li></ul>The public relations development and the practices employed by the companies (Aho Ryan & Lemmond 1989, Kitchen & Proctor 1991, Kitchen 1993, Moss et al. 1996) <br />The relationship of PR to the promotional mix (Kotler & Mindak 1978, Kotler 1986, Kitchen & Moss 1995, Kitchen 1997, Kitchen & Papassolomou 1997)<br />“Impact and sequence effects,” Journal of Consumer Research<br />Gibson, R., and Zillmann D., “The impact of quotation in news reports on Issue perception,” Journalism Quarterly<br />Miller, J., and Krosnick, J., “News media impact on the ingredients of evaluations: Citizens are guided by a trusted source,” American Journal of Political Science<br />Valkenburg, P., Semetiko, H., and DeVreese, C., “The Effects of News Frames<br />on Readers’’ Thoughts and Recall”, Communication Research<br />Vaughn, R., “How PR works: A planning model,” Journal of Advertising Research<br />Vergeer, M., “Exposure to Newspapers and Attitudes toward Ethnic Minorities: A longitudinal analysis,” The Howard Journal of Communications,<br />

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