ADVERTISING THE INSIDE STORY

Presented By Mirza Babar Roll No. 74-MBA-06

How advertising works first requires a definition of what advertising is?

- One definition of advertising is: "Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media. (Bovee, 1992.) - Another advertising definition: The activity of attracting public attention to a product or business; the business of designing and writing advertisements. (ciaadvertising.org) (Contd.)

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Ads can be a cost-effective way to disseminate messages, whether to build a brand preference or to educate people. (Philip Kotler)

Five Ms of Advertising
Mission (Sales goals, Advertising objectives) Money (Stage in PLC, Market share & Consumer base, Competition & Clutter, Advertising frequency, Product substitutability) Message (Message generation, evaluation, selection & execution; Social responsibility) Media (Reach, frequency, impact; Major media types; Specific media vehicles; Media timing; Geographical media allocation) Measurement (Communication impact; Sales impact)

Myths about Advertising

Advertising is an unethical and dishonorable profession. Everyone in advertising makes a fortune. It's really hard to get started in advertising. You'll finally be able to put all those great ideas to good use. It's a glamorous, fun-filled career. Every day is a day at the beach.

Advertising as described by some Prominents

My entire inventory, a famous Madison Avenue ad agency supreme once said goes down the elevator at 5.30 p.m. every night. This agency chief had worked out what his real assets were: the copywriters, the art directors, the visualizers and the paste-up artists, the account directors and the executives, the media planners and buyers, the research heads, the finance people. Without them, he had no product to sell. I know that half of every dollar that I spend on advertising is wasted, a well known manufacturer of consumer goods, Lord Leverhulme, once said, but the problem is I dont know which half! (Contd.)

Ed McCabe, the recently retired advertising genius who created Scali, McCabe and Sloves New York, once said, Only 10% of advertising created anywhere is any good at all. While this is a harsh judgment, the fact remains that most advertising can be so boring that it can put people to sleep. And nobody buys much while they are asleep. Bill Bernbach another advertising genius who advanced the science of advertising by a few million light years said, Just because your ad looks good is no insurance that it will get looked at. How many people do you know who are well groomed but dull? (Contd.)

Nobody counts the number of ads you run; they just remember the impression you make. Sometimes the ad is very difficult to sell, If you dont buy this ad, I will jump out of the window.
(George Lois to reluctant client in Manhattan skyscraper office)

Something funny happened to advertising on the way back from the theater: It lost some of the drama and impact. It lost some of the urgency, some of the pizzazz, some of the persuasion. Some agencies with their layers of hierarchies and departments stand in the danger of losing their reason for being: advertising!

Global Advertising Scenario

According to Zenith Optimedia, the global advertising expenditure in 2004 was approximately $371 billion, out of which outof-home accounted for just 5.3 per cent, which would put it at around $ 19 billion. In many countries associations have been formed which knit the advertising agencies for smooth functioning and uniform code of work e.g. Founded in 1917, the American Association of Advertising Agencies (AAAA) is the National Trade Association representing the advertising agency business in the United States. (Contd.)

Again The American Advertising Federation (AAF), headquartered in Washington, D.C., acts as the "Unifying Voice for Advertising." The AAF is the oldest national advertising trade association, representing 50,000 professionals in the advertising industry. Another is OAAA which is the lead trade association representing the outdoor advertising industry. Founded in 1891, the OAAA is dedicated to promoting, protecting and advancing outdoor advertising interests in the U.S.

Globally renowned Advertising Agencies

AQKA

BBDO

BBH

Bernstein Rein

Wieden + Kennedy Nike and Starbucks Doyle Dane Bernbach Volkswagen Goodby Silverstein & Partners Got Milk Campaign Young and Rubicam Ford Motor Company Ogilvy & Mather Rolls- Royce

Largest advertising groups

WPP Group: $48.055 Billion Publicis: $34.365 Billion Interpublic Group: $27.870 Billion Omnicom Group: $25.230 Billion Aegis Group: $20.355 Billion Havas: $8.775 Billion

Indian Scene of Advertising

In comparison, according to a Pitch Madison Advertising Outlook 2005, the Indian outdoor industry was worth Rs 800 crore in 2004. It had grown by 10 per cent over 2003 and accounted for around 8 per cent of the total ad spends in the country. The Indian advertising industry is doing pretty well for itself, growing at 20 percent in 2006, and expected to end calendar 2007 with another robust double-digit growth number. (Contd.)

Globally, advertising makes up 1 recent of GDP. In the western world, its 1.5 percent. In some smaller markets like Malaysia it makes up 2 percent of the GDP. In India, a country where a 10 percent increase in mobile phone penetration improves GDP by 0.75 percent, advertising as a part of total GDP is only 0.34 percent. So to speak, India is a highly underadvertised economy.

Top 10 advertising agencies in India

- JWT J Walter Thompson India; Gross Income: Rs 2074.3 million -O&M Ogilvy & Mather Pvt. Ltd; Gross Income: Rs 1258.74 million - Mudra Mudra Communications Pvt. Ltd; Gross Income: Rs 1069.6 million - FCB-Ulka Advertising Ltd; Gross Income: Rs 864.84 million - Rediffusion-DY&R; Gross Income: 752.04 million

(Contd.)

- McCann-Erickson India Ltd; Gross Income:

618.36 million - RK Swamy/BBDO Advertising Ltd; Gross Income: 441.59 million - Grey Worldwide (I) Pvt. Ltd; Gross Income: 425.00 million - Leo Burnett India Pvt. Ltd; Gross Income: 375.91million -Contract Advertising (India) Ltd; Gross Income: 320.98 million

Mudra

Started in 1980, Mudra rose to become the third largest agency in the country in a short span of 9 years. Today, the Mudra group, with more than 125 clients nationwide with three creative agencies, eight full services offices, seven specialized business units and an integrated media offering, has a portfolio of some of Indias biggest brands; Mudra has bagged the Agency of the year award six times. In the present year, the Mudra Group is poised to exceed a turnover in excess of Rs. 10 billion, as it continues to maintain its aggressive growth rate. (Contd.)

One client-Vimal and a 500 sq.ft. Office, that was Mudra, in the year 1980.

Mudra group - over 150 clients - seven specialized business units - a portfolio of some of Indias biggest brands - 900 people

Memorable Advertising
Only Vimal I love you Rasna My Daddy Strongest Humko Binnies Mangta The Mint with the hole Team Samsung McDonalds mein hai kuch baat Kar lo Duniya Mutthi Mein Peter England, the Honest Shirt (Contd.)

International Awards Number of awards - 136 (which includes Cannes, D&AD, Clio, One Show, Adfest, Communications Arts, New York Festivals & others).

National Awards Number of awards- 730 (which includes Abby, CAG, Ad Clubs, AAAI, Showcase of Indian Advertising & others). (Contd.)

Departments in the agency

Client Servicing Creative Planning Studio/ Department Department Production

Accounts

IT

Copy

Art

(Contd.)

Description of Client Servicing Department in detail

Client servicing department is a link between the ad agency and the company which is its client. The professionals who are in Servicing meet the clients and discuss regarding their priorities, their plans and requirements from the agency. From this a brief is made which is the tool to narrate to the Creative what the client wants from the advertising agency.

Products Handled
Categories Aasav (Women health) Stomach problems Cough & Cold Vigor & Vitality Oils Products Ashokarisht, Dashmularisht Churnas, NatureCare Double Action Honitus Shilajit Mahanarayan Tail, Mahabhringraj Tail, Brahmi Amla, Super Thanda Tail Madhurakshak Sarbyna Mansi

Diabetes Headache Blood Purifier

Label Designs & ads

Reference shots

Shot1 Mother & child Mood Stre ngth/Active/Playing/Happy

Ad made after Shoot

Ads precise Details

Research Methodology
Area of study The area included parts of South Delhi namely; Saket, Malviya Nagar and Sheikh Sarai The Sample Size A sample of 100 respondents was taken which includes women from various socio-economic backgrounds. Data Collection Primary sources i.e. personal interview method Questionnaire First few questions were regarding hair wash and hair-oil use Next few questions were about the hair oils used and the frequency of use Last part was about knowledge of Dabur Brahmi Amla and other Dabur oils (Contd.)

Data Analysis In the study variables used for data analysis are: Age, Profession and Income Category Below 20 20-30 30 above No. of Respondents 15 55 30

Profession Category Self employed Professionals House wives/ Students No. of respondents 10 30 60

Income Category No. of respondents Below 10000 25 10000-20000 20000 above 60 15

Findings of the Study

Respondents were asked about their frequency of hair wash
T

T wi 6%

O 7 %

i 4%

Respondents were asked about their use of hair oil 100% responded positively

Respondents were asked to give their frequency of hair oil use

      
Mo 2 6 h i

 

  

On

Respondents were asked about the brand they most commonly used on their hair

Brahm i Am la Clinic All 9% Clear 12% Clinic Plus 12%

Vatika 31%

Parachute Bajaj Alm ond 13% 23%

Respondents were asked about their knowledge of Dabur hair oils

no 10%

yes 90%

Respondents were asked whether they had used Brahmi Amla hair oil from Dabur
no 5% yes 65%

Conclusions:
Majority of city women still prefer to use hair oil on their hair although various other nourishers are available in the market The use of oil on hair normally depends on the frequency of hair wash Vatika has a good market in South Delhi followed by Bajaj Almond and Parachute Bajaj Brahmi Amla is used by lesser no. of ladies as compared to other oils Majority of the respondents washed their hair once a week and so oiled their hair once after that Most of the respondents knew about Dabur hair oils Again a good no. out of them had used Brahmi Amla hair oil on their hair Majority of the respondents were in age group 20-30 and used Vatika hair oil Brahmi Amla was used mainly by older folk Other hair oils had no particular pattern of usage None of the people surveyed remembered any communication regarding Brahmi-Amla in the form of ads or TVC

Suggestions
Television commercials can be used to bring it into the focus of people - Advertorials are an effective means to bring forward the special features of this oil - Regular ads in the newspapers can increase the sale many times - Highlighting the harmful effects of the chemical based potions for hair can go a long way in helping these oils sell more - Many a people complained of stinging smell of the oil which irritated them. So research can be carried out to add some kind of fragrance to it
(Contd.)

- Dabur is not regarded as a prominent brand by upper class people because there is no unique identity in its products just like Himalaya or Baidyanath. There is need that brand identity be extended to all the Dabur products - Dabur is introducing a unique concept of Dabur Ayurvedic Centers (DAC) where Ayurvedic doctors will be treating people free of cost. Dabur can window display its products at such locations and provide pamphlets and magazines for knowledge of people - Workshops and programmes emphasizing the salient features of Ayurveda can go a long way in building customer base for its products - Internet is fast becoming a means of communication and entertainment. Therefore Dabur needs to focus prospective customers from internet - Sales can be boosted through internet by giving a detailed account of Dabur, its products and creating an effective delivery system. (Contd.)

Special offers are very much needed to bring the product to use and showing its qualities - Oil needs to be made available in small pouches just like Parachute and Himani Navratan have done - A single space for Dabur products in the medical shops and sale counters can boost sales - Small questionnaires attached to the bottles can help the company people know the drawbacks of its products - Giving the Ayurvedic products a modern look and feel through television, packaging, making available different variants, etc.

Thanks!