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INTRODUCTION TO ADVERTISING
Advertising is a form of communication whose purpose is to inform potential customers
about products and services and how to obtain and use them. Many advertisements are
also designed to generate increased consumption of those products and services through
the creation and reinforcement of brand image and brand loyalty. For these purposes
advertisements often contain both factual information and persuasive messages. Every
major medium is used to deliver these messages, including: television, radio, movies,
magazines, newspapers, video games, the Internet, and billboards. Advertising is often
undertaken by an advertising agency on behalf of a company.
1.1 SECTOR OUTLOOK
The Indian Advertising scenario looks positive, with the growth in 2011 expected to be
about 10.5 per cent. From a growth rate of 19 per cent over 2007-08, the ad expenditure
grew only 4.5 per cent during 2008-09. In India, the advertising expenditure is expected
to reach Rs 246.66 billion by 2011, clocking additional Rs 23.34 billion spends over last
year.
By 2012, ZenithOptimedia predicts that India's advertising expenditure will reach Rs
307.04 billion, growing approximately 37.5 per cent over 2009.
Newspapers will continue to attract maximum spends, with expenditure going as high
as Rs 113.26 billion in 2011. Television will be the second most preferred medium for
advertisers and will clock spends of Rs 100.58 billion in 2011, as per the forecast.
In 2008, 42.6 per cent share of ad spends was by newspapers, followed by 39.8 per cent
by television. Outdoor medium and magazines garnered 7 per cent and 5.3 per cent
shares respectively, while radio and the Internet managed to grab 3 and 1.6 per cent
share of ad spends in 2008.
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If one looks at the 2008-09 ad expenditure figures, the outdoor medium and magazines
have witnessed the most decline in spends, while the Internet continued to grow at 25
per cent.
By 2012, newspapers will see investments of Rs 139.57 billion as advertising spends,
while television will attract spends of Rs 128.01 billion. Outdoor will clock ad spends of
Rs 14.08 billion, while ad expenditure on radio will reach approximately Rs 9.65 billion,
as per the forecast. Advertising spends on magazines will be around Rs 7.29 billion,
while on the Internet, the spends will increase to Rs 6.69 billion. Cinema advertising
spends will amount to Rs 1.72 billion by 2012.
The size of Indian Advertising Industry depends on the following industries.
Industry Current size Projected size by 2011
CAGR
Television Rs 148 billion Rs 427 billion 24%
Filmed entertainment
Rs 68 billion Rs 153 billion 18%
Print Media Rs 109 billion Rs 195 billion 12%
Radio Rs 3 billion Rs 12 billion 32%.
Music Rs 7 billion Rs 7.4 billion 1%.
Live entertainment Rs 8 billion Rs 18 billion 18%
Out-of-home Advertising
Rs.9 billion Rs17.5 billion 14%.
Internet Advertising Rs 1.6 Billion Rs 7.5 billion 50%.
Table 1.1:- Showing the various components of Indian Advertising Industry, their projected
size by 2011 and CAGR (Compounded Annual Growth Rate)
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Television
Film entertainment
Print Media
Radio
Music
live entertainment
Out- of- home advertaising
Internet advertising
0 20 40 60 80 100 120 140 160
148
68
109
3
7
8
9
1.6
Advertising Industry(market share in Rs. Billion)
Graph 1.1:- Bar graph showing the market share of various components of Indian
Advertising Industry
1.2 ADVERTISING AGENCY
An Ad agency is a service dedicated to creating, planning and handling advertising (and
sometimes other forms of promotion) for its clients. An ad agency is independent from the
client and provides an outside point of view to the effort of selling the client's products or
services. An agency can also handle overall marketing and branding strategies and sales
promotions for its clients.
There were only 62 advertising agencies in 1958, which increased to 168 in 1978, more than
2.5 times the numbers in 1958. There are more than 500 ad agencies today. The oldest and
largest advertisement agency in India is Hindustan Thompson Associates Ltd. The second
largest advertisement agency is Lintas.
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1.3 FOUR TYPES OF ADVERTISING AGENCIES
There are basically four types of ad agencies. They are:
In-house agencies
Creative boutiques
Media buying agencies
Full service agencies
1.3.1 In- house agencies
Some companies, in an effort to reduce costs and maintain greater control over agency
activities, have set up their own advertising agencies internally. An in-house agency is an ad
agency set up, owned and operated by the advertiser. Many companies use in-house agencies
exclusively; others combine in-house efforts with those of outside agencies.
A major reason for using in-house agency is to reduce advertising and promotional costs.
Companies with very large advertising budgets pay a substantial amount to outside agencies
in the form of media commissions. With an internal structure, these commissions go to the
in-house ad agency. An in-house ad agency can also provide related work such as sales
presentations and sales force material, package design, and public relations at a lower cost
than the outside agencies.
Saving money is not the only reason companies use in-house ad agencies. Time savings, bad
experience with outside agencies, and the increased knowledge and understanding of the
market that come from working advertising and promotion for the product or service day by
day are also reasons. Companies can also maintain a tighter control over the process and
more easily coordinate promotions with the firm’s overall marketing programmes.
Opponents of the in-house agencies say that they can give the advertiser neither the
experience nor the objectivity of the outside agency and nor the range of services. They argue
that the outside agencies have a more specialized staff and attract the best creative staff. Also
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flexibility is higher since if the company is not satisfied with the agency it can be dismissed,
whereas changes in an in-house agency could be slower and more disruptive.
In-house agencies in India are:
Levers - Lintas (previously)
Videocon – Confidence
Reliance – Mudra (when Mudra started out)
1.3.2 Creative boutiques
Creative boutique is an agency that provides only creative services. These specialized
companies have developed in response to some client’s desires to use only the creative talent
of an outside provider while maintaining the other functions internally.
The client may seek outside creative talent for two reasons:
Because he wants an extra creative effort
May be because its own employees of the in-house agency or the agency that he has
appointed do not have sufficient skills in this regard.
The full-service agencies also sub-contract work creative boutiques when they are very busy
or want to avoid adding full time employees to their pay roll. Creative boutiques are usually
found by members of the creative departments of full service agencies who leave the firm
and take with them clients who want to retain their creative talents. These boutiques
generally perform creative function on a fee basis.
Few creative boutiques in India:
RMG David
Vyas Gianetti Creatives
Chlorophyll
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1.3.3 Media buying agencies
Media buying agencies are independent companies that specialize in the buying of media,
particularly radio and television. The task of purchasing advertising media has grown more
complex as specialized media proliferate, so media buying services have found a niche by
specializing in the analysis and purchase of the advertising time and space. Agencies and
clients generally develop their own media plans and then hire the buying services to execute
them.
Some media buying agencies do help advertisers plan their media strategies. Because media
buying agencies purchase such large amounts of time and space, they receive large discounts
and can save the small agency’s or client’s money on media buying. Media buying agencies
are paid a fee or commission for their work.
Mindshare
Initiative Media (LOWE)
Starcom (Leo Burnett)
1.3.4 Full – service agency
The function of an advertising agency is to see to it that its client’s advertising leads to
greater profits in the long run than could be achieved without the ad agency. Most such
agencies are large in size and offer their clients a full range of services in the area of
marketing, communications and promotions. These include planning, creating and producing
the advertisement, media selection and research. Other services offered include strategic
marketing planning, sales training, package design, sales promotion, event management,
trade shows, publicity and public relations.
The full service agency is composed of various departments; each is responsible to provide
required inputs to perform various functions to serve the client.
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2.1 BACKGROUND AND INCEPTION OF THE COMPANY
Lowe has a complex history tracing back to the foundation of Lintas in 1899. Lintas (Lever
International Advertising) was one of the world's first advertising agencies and following
some large mergers and rapid growth in the 70s and 80s became a dominant and famous
force in the advertising field with accounts such as IBM, Master card, Johnson and Johnson
and of course Unilever . In 1981 Sir Frank Lowe set up Lowe Howard-Spink developing
world famous campaigns for Absolut, Birds Eye and Heineken while growing rapidly.
Following mergers with the then Ammirati Puris Lintas, Lowe Worldwide became the fourth
largest advertising agency in the world in 2000.
Founded in 1939 as a part of Hindustan Unilever, Lowe Lintas is one of India’s largest and
most storied communication groups. Headed by Chairman and Chief Creative Officer R.
Balakrishnan (Balki) and CEO Joseph George, Lowe Lintas employs over 650 people across
eight divisions and nine cities all over India.
Today, Lowe Lintas India is a wholly owned subsidiary of the Interpublic Group, and one of
the star offices in the Lowe Worldwide network. Headquartered out of London, Lowe
Worldwide has over 80 offices in 73 countries and a client roster that includes Unilever,
Johnson & Johnson, Nestle, Ericsson, Sharp, Saab and many more.
Lowe Lintas India leads global and regional communication for several Unilever and
Johnson’s Baby brands. It is a guiding light for Lowe offices in South Asia.
In their early days, the high-value idea was epitomised by iconic characters such as Lalitaji,
the Liril Girl, the MRF Man and Cherry Charlie; today, it is seen in high-voltage campaigns
like Tata Tea’s ‘Jaago Re’, Lifebuoy’s ‘Koi Darr Nahin’, Idea Cellular’s ‘What An Idea’,
Bajaj’s ‘Hamaara Bajaj’, Surf Excel’s ‘Daag Acchhe Hain’ and many more.
Throughout their history they have been a company of firsts, leading many developments
within the advertising industry. Most recently, augmenting the Strategic Planning division
with the discipline of Channel Planning. Channel Planning allows for the strategic and
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efficient selection of the relevant media channels for any given task within the context of the
brand idea. This helps to deliver the high-value idea seamlessly across all relevant touch-
points within the Lintas group in a cost-efficient manner.
Lowe Lintas began in 1939 as Lintas, India, the Indian division of Lintas (acronym for Lever
International Advertising), which itself was established in 1899, later a part of Unilever. In
2000, the company changed its name to Lowe Lintas following the global merger of the IPG
networks, Ammirati Puris Lintas and the Lowe Group in November 1999. Lowe Lintas India
was then helmed by Prem Mehta, with Executive Creative Directors R. Balakrishnan (Balki)
and K. V. Sridhar leading the creative function. At the time, with billings of over $12 billion,
Lowe Lintas was ranked as the fourth-largest global agency group worldwide, with offices in
80 countries, while Lowe Lintas & Partners was the second-largest advertising agency in
India, with a turnover of Rs. 750crores In 2007, Lintas India sold the 51% stake it owned in
Lowe Lintas to its international partner, the Interpublic Group (IPG). Since then, the agency
has been a part of the Lowe Worldwide network, which in turn is held by the Interpublic
Group.
Lowe Lintas has produced India's first television commercial, and also introduced the
discipline of Channel Planning to India. It has given India some of its most famous
advertising talent, including Shyam Benegal, Gerson da Cunha, Rama Bijapurkar, Gautam
Rajadhyaksha, Alyque Padamsee and Sumantra Ghoshal.
Key people
R. Balakrishnan Balki, Chairman & Chief Creative Officer
Charles Cadell, Chief Executive Officer
Fali Vakeel, Chief Operating Officer
Shahrook Munsiff, Finance Director
Joseph George, Deputy Chief Executive Officer
Amer Jaleel, National Creative Director
Arun Iyer, National Creative Director
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2.2 NATURE OF BUSINESS CARRIED
Full – service agency
The function of an advertising agency is to see to it that its client’s advertising leads to
greater profits in the long run than could be achieved without the ad agency. Most such
agencies are large in size and offer their clients a full range of services in the area of
marketing, communications and promotions. These include planning, creating and producing
the advertisement, media selection and research. Other services offered include strategic
marketing planning, sales training, package design, sales promotion, event management,
trade shows, publicity and public relations.
The full service agency is composed of various departments; each is responsible to provide
required inputs to perform various functions to serve the client.
2.3 VISION, MISSION AND QUALITY POLICY
2.3 a) Vision
Lowe Lintas believes in staying one step ahead of the competition with innovative, original
thinking. The mantra of the company is "Innovate or Die" because " ...in an industry being
crushed by a lack of innovative thinking, anything less is just that-less." The team at Lintas
feels that it is the team’s duty to provide the spectacular results the clients deserve.
2.3 b) Mission
The original philosophy of the agency “Do not outspend the competition, outsmart them.”
basically means not to necessarily spend more money than the competition, just
communicate the message more intelligently. If the work does not work, then come up with
something else.
2.3 c) Quality policy
High Value Ideas In a world where consumers are bombarded by messages from brands (be
they conversations or advertising, at the point of sale or in the repurchase cycle) Lowe
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believes that the greatest service is the provision of a High Value Idea. It’s both glue and
context – amplifying and making sense of the messages to people. High Value Ideas are
enduring, persuasive, creatively fertile - and are profound enough to work across all media
channels and around the world
Idea Communities Lowe thinks that in the world of modern communications it’s important
to draw upon a wide range of talent, but it’s cumbersome, expensive and undesirable to
duplicate and support hundreds of offices. Idea Communities is the process by which talent
from all marketing disciplines, and across all major markets can be brought together easily
and freely to produce cross channel work that can span the world. The notion of idea
communities has been recently bolstered by investments in new fields, in particular Huge Inc
( A global digital brand building business ) and Open ( a Global retail activation network)
2.4 PRODUCTS/ SERVICE PROFILE
Lowe Lintas is the mainline advertising arm of the group. The agency has helped build some
of India's largest brands, and claims that a majority of its clients have been with it for over
ten years.
Some of the services offered are Advertising and Marketing Communications, Digital
Solutions, Graphic Identity and Design, Public Relations, Rural Communications,
Healthcare, Direct Marketing, Event Management, Film Production and Entertainment
Marketing.
Lowe lintas India has the following specialized services on offering:-
LinOpinion
LinOpinion is the public relations wing of the group. It is the exclusive Indian affiliate
of Golin Harris, a public relations consultancy within the Interpublic Group network.
LinOpinion offers services like media intelligence, media relations, crisis management,
corporate training, event management and social media management.
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Linteractive
Linteractive is the full-service digital communication wing of Lowe Lintas. It offers services
like website development, social media marketing, viral marketing, online media marketing,
interactive CD-ROMs, digital outdoor, mobile marketing, online reputation management and
technology solutions.
D Cell
D Cell is the strategic design consultancy of Lowe Lintas. It was the first agency in-house
design specialist in India. D Cell offers services like consumer branding, corporate branding,
environmental branding, digital branding, communication branding, retail branding and
brand documentation.
Linterland
Linterland is the specialist rural communication and marketing arm of the group.
Lintas Productions
Lintas Productions is the newly opened film production and entertainment marketing wing of
Lowe Lintas. It offers integrated entertainment solutions including movie strategic planning
and marketing, movie production, television content and production, celebrity endorsement,
talent management and branded entertainment.
LinHealth
LinHealth is the healthcare solutions division of Lowe Lintas. Some of its offerings include
pre-launch market preparation, managed entry programmes, new product launches, brand
refreshes, compliance and concordance and integrated healthcare campaigns.
LinPersonal
LinPersonal is the direct marketing/customer relationship management wing of Lowe Lintas.
LinPersonal offers services like customer engagement programmes, personalised one-to-one
communication, direct mail (electronic and physical), CRM and analytics, B2B marketing
consulting and export marketing consulting.
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LinEvents
LinEvents is the event management wing of Lowe Lintas. LinEvents creates and executes
exhibitions, special events, conferences, product launches, award ceremonies and B2C
events.
2.5 AREA OF OPERATION
Lowe and Partners is a network with over 101 Global offices in over 60 markets around the
world. The community covers an array of disciplines including e Commerce, CRM, PR,
Branded Entertainment and Activation.Lowe's main agencies include the following -all
offering an array of services.
Lowe Sydney, Australia
Ponce BA, Argentina
BorghiErh/Lowe, Brazil
Lowe Bull, South Africa
LOLA Madrid, Spain
Lowe Bangkok, Thailand
Lowe Brindfors, Sweden
Lowe Lintas, India
DLKW Lowe, UK
Lowe Istanbul, TURKEY
Lowe Shanghai, China
Lowe Strateus, France
Lowe Bucharest, Romania
Lowe Roche, Toronto, Canada
Lowe Ginkgo, Montevideo, Uruguay
Lowe SSP3, Bogota, Colombia
Deutsch Inc, USA ( New York and Los Angeles)
Publimark Lowe, San José, Costa Rica
Research & Planning Antiguo Cuscatlán, El Salvador
Lowe lintas INDIA
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Ahemdabad
Bangalore
Kolkata
Chennai
Delhi
Hyderabad
Kochi
Mumbai
Pune
2.6 OWNERSHIP PATTERN:-
A private limited entity Lowe Lintas began in 1939 as Lintas, India, the Indian division
of Lintas (acronym for Lever International Advertising), which itself was established in
1899, later a part of Unilever. In 2000, the company changed its name to Lowe Lintas
following the global merger of the IPG networks, Ammirati Puris Lintas and the Lowe Group
in November 1999. Lowe Lintas India was then helmed by Prem Mehta, with Executive
Creative Directors R. Balakrishnan (Balki) and K. V. Sridhar leading the creative function.
At the time, with billings of over $12 billion, Lowe Lintas was ranked as the fourth-largest
global agency group worldwide, with offices in 80 countries, while Lowe Lintas & Partners
was the second-largest advertising agency in India, with a turnover of Rs. 750crores.
In 2007, Lintas India sold the 51% stake it owned in Lowe Lintas to its international
partner, the Interpublic Group (IPG). Since then, the agency has been a part of
the Lowe Worldwide network, which in turn is held by the Interpublic Group.
2.7 COMPETITOR’S INFO
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• Ogilvy and Mather Limited:- Headed by Mr. Piyush Pandey:
The most local of the internationals, The most international of the locals are words written to
describe the identity of Ogilvy. Basically, what this means is that the advertising agency
follows the local market, understands the customer's needs and then networks worldwide
with MNC and other relevant clients.
In all its years of business, Ogilvy has struggled to build brands and has proved its ability to
build brands. The agency does its best to enhance the customer-brand relation. For this, it
undergoes the process of scrutiny of the tools and techniques which work well to build a long
and lasting association with a brand.
• Mudra communications Pvt. Ltd:- Head: Mr. Madhukar Kamath:
The agency practises the art of communication in order to express ideas that can shape the
brands. As the name suggests, the agency is influenced by the artistic traditions of Indian
dance, drama and painting. These, in turn, inculcate feelings, ideas, thoughts and emotions
for the success of a brand. Mudra peeps into the local consumer markets, channels and
media, and has its own identity in communication of brands. It looks for the entrepreneurial
zeal which causes continuous and speedy growth for each brand. The advertising agency
always believed in doing interesting work that pleases its clients.
• JWT (Hindustan Thompson Associates Pvt. Ltd.):- Head:Mr.Colvyn Harris
(Chief Executive Officer):
The advertising agency has a special portfolio which includes creativity, innovation, clients,
case studies, awards, well-thought out leadership and talent. Clients perceive the agency as a
resource of ideas which tell the brand’s story to the customer, dealing with market research.
In this process, the agency includes innovative ideas.
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• FCB-Ulka advertising pvt. Ltd:- Head Mr. Anil Kapoor (Managing Director and
CEO):
FCB, being one of the the top three advertising agencies in the USA, ranks number 10 in the
world. FCB-Ulka has made its mark in India as Ulka Advertising. It was founded in 1961.
On the creative front, Ulka is known to stand out. FCB-Ulka has made a smooth transition
from a creative shop to a large mainstream agency. Around the mid-seventies, FCB-Ulka had
become the fifth largest agency in India and has sustained this status till date. The efforts of
FCB-Ulka deserve praise. It also gave recognition to those brands that were not in the
limelight earlier but are now completely above other market players. Santoor soap did
thorough research and focused on advertising which gave growing sales figures against stiff
competition from Levers and P&G brands. Not surprisingly, FCB-Ulka is seen as a
turnaround specialist - an agency that does brand building and more.
• Rediffusion DY&R Pvt Ltd:- Mr. Mahesh Chauhan (President):
This advertising agency places its people first. It believes that the strength of a brand lies in
the efforts the people of the organization make. Rediffusion DY&R follows system-driven
‘thinking’ in its culture. The agency attracts right minds because it thinks of a perfect balance
between creativity and strategy.
• RK Swamy BBDO Pvt Ltd:- Mr. Srinivasan K Swamy (Head)
It is the agency of the worldwide-renowned BBDO network. The advertising agency suggests
comes up with solutions for its clients regarding their marketing communication problems
and provides them with intelligent solutions and supports them in attaining their goals. The
symbol or logo of the advertising agency is Hansa and is known to separate milk from the
water. Similarly, RK Swamy of BBDO is capable of deriving the essential elements from the
irrelevant ones in order to promote each brand. The agency practises high level of
commitment and spirited teamwork for a common cause.
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• McCann-Ericsson India Ltd:- Sorab Mistry (Head)
This advertising agency is a leading global agency and has the power and passion to achieve
its mission .McCann-Ericsson is known as a world class advertising agency and has found
outstanding talent in its employees.
• Leo Burnett:- Mr. Arvind Sharma (Chairman and CEO):
The advertising agency is totally idea-centric. It generates big brand ideas. It regards the
pencil as its engine no matter the size - it is the means through which it can generate plenty
of creative ideas. The agency is never too satisfied with its endless efforts in building up a
brand. It believes that the brands can become and remain leaders by building better ideas. It's
no wonder that the founder of the advertising agency, Leo Burnett, regards the pencil as a
metaphor for the kind of ideas he was coming up with for his clients.
• Grey worldwide (India) Pvt Ltd:- Mr. Nirvik Singh (President south east Asia &
chairman South Asia, Grey Global):
The agency handles above the line advertising for the Grey group. It has launched Dominos
in India. It has had Ambuja cement, Thums Up, Arrow, Lee and many more brands in its
portfolio. The mission of the agency is to remain the largest global integrated agency to
leading brand ideas.
The list of the top ten advertising agencies is not always stable and remains interchanging.
The additions and deletion of a few of them formulates the list. But each of them are making
their way to becoming the best, and their efforts are making are each making a mark in the
Indian advertising scenario.
2.8 INFRASTRUCTURAL FACILITIES(LINTAS PVT. LTD.
BANGALORE)
Occupies 3 fully furnished Air conditioned floors in Sai complex M.G. Road.
Floors meant differently for 1. Brand Servicing 2.Creative team 3. Accounting and
Administration.
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Canteen facilities
Waste recycling systems
Separate work stations with systems and desks.
Health and Education Initiatives
Community Initiatives
2.9 ACHIEVEMENT
Awards 2007-08
Lowe Lintas, placed at No. 3, won one gold metal and two metals each of silver and bronze.
Lowe won the gold for its Tata Tea Jaago Re! campaign. The two silvers were won for the
Axe (Call Me) and Idea Cellular (What an Idea!) campaigns, while the bronze Effies were for
the Havells (Shock Laga?) and Tata Tea (Jaago Re!) campaigns.
Awards 2008-09
Lowe Lintas (placed at No. 2) won two gold, two silver and eight bronze metals. The
campaign for Tanishq ('Jewellery that Makes You Want to Marry') won Lintas its two golds,
in the categories, Consumer Products (Others) and Retail. The agency's silvers were pulled in
by its campaigns for Bajaj Discover DTS-Si ('Discover the Power of 1 Litre') and Idea
Cellular ('Use Mobile Save Paper..
Award – 2010
Global HR Excellence Awards - Organisation with innovative HR practices
Global HR Excellence Awards - CEO with HR orientation (Lynn de Souza)
Mirchi Kaan Awards 2009 - Best use of Radio as medium (Bajaj Mixers)
Goafest Silver : Best use of Special Events & Stunts (Live Advertising) – Pulsar
Cannes 2010 Radio Silver Lion
CNBC Awaaz Consumer Awards - Maruti Most Preferred Brand of Cars
CNBC Awaaz Consumer Awards - Sony Most Preferred Grey Goods Company
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2.10 WORK FLOW MODEL
FIGURE 2.1 WORK FLOW MODEL
This Interactive Advertising Workflow helps to reduce many of the supply chain issues that
have plagued the advertising industry, such as late creative, discrepancies and billing
reconciliation. Lintas’ workflow represents several years of gathered experience and
discussions and is the most in-depth and comprehensive interactive supply chain reference in
the industry. Since the interactive advertising workflow touches multiple departments at
publishers and agencies, it largely helps everyone from senior management to entry level
employees with a high-level understanding of the overall process and practical advice on
execution. Improving communication, both inter-departmentally and between agency and
client, is at the core of reducing discrepancies and thus achieving greater operational
efficiency.
Stage 1: Request for Proposal (RFP)
Clear and open communication between the client and the agency begins with the RFP.
When submitting an RFP, Lintas outlines as much detail about the campaign as possible.
Revealing marketer objectives, target audience, inventory preferences, and any other special
requests beyond budget and flight dates allows the publisher to provide a more
comprehensive proposal. It helps to clearly communicate timelines to the marketer.
Stage 2: Insertion Order (IO)
An Insertion Order is generated once the proposal is approved by the agency. The publisher
should set up appropriate controls along the IO approval process to ensure that all aspects of
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the IO meet internal requirements. At this stage, it is critical for both parties to review
specific details about the IO including the billing method, delivery requirements, and any
addendums to the AAAI (Advertising Agencies Association of India) /IAB (Interactive
Advertising Bureau) standard terms and conditions. Rectifying errors and verifying all
contact information at this stage reduces inefficiencies through the rest of the workflow.
Stage 3: Creative Delivery
The plan laid out by the account planners and the brief given by the client servicing people
are inputs to the Creative team who translate the client’s brief and account planner’s strategy
into a creative consisting of art (visual appeal) and copy (literature). After the creative duties
are done, the production team takes care of the ad shoots typically an audio/video conveying
the message put forth by the creative team
Stage 4: Campaign Delivery & Optimization
After creative is delivered, crucial steps for both parties remain. Clear communication should
continue with the traffic instructions. The publisher contacts the agency over any
ambiguities. In addition, login information is exchanged so that delivery can be monitored in
both the publisher and third-party ad servers. Campaigns are then checked within one
business day of launch to confirm that all tags are implemented properly. To catch
discrepancies, both parties continually monitor delivery and optimize when necessary.
Stage 5: Billing & Collections
No supply chain is complete until final payment is made. Billing & Collections remain
challenging due to the number of departments involved. Following the workflow specifically
reduces billing errors and simplifies reconciliation, but clear and open communication can
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alleviate remaining issues. It also helps that both publishers and agency establishes cross-
departmental communication channels to speed up the reconciliation process.
2.11 FUTURE GROWTH & PROSPECTS
The global Advertising Industry as far as scale of operations and scope is concerned
the turnover is close to USD 450 billion annually. Indian Advertising Industry
contributes less than 1.5% which is next to China and Russia. The Global Ad Industry
is expected to reach a growth rate of 3% in 2011 which is better than 2010 while
Indian Ad Industry in contrast estimates to reach the growth rate of 10% figuring
about Rs.237 billion. The reasons are because of the IPL, Foot ball World Cup and
the Commonwealth Games.
India contributes to 17 % of the world population but is only 0.7% of the world
advertising market so it has huge potential to grow in future.
Experts reveal that total advertisement spending by the political parties would be
around Rs 8 billion. The Congress and the BJP alone could spend over Rs 4 billion on
ads on television, radio and newspapers. Most of the ads appear on going to general
entertainment and regional TV channels and hardly a small proportion in News
channels.
Worldwide Partner Inc are the Ninth largest global network of more than 90
marketing and communication agencies in about 50 countries which has recently tied
up with Indian Pressman Advertising and Marketing Ltd following repeated enquires
about India .
Indian advertising spends as a percentage of GDP - at 0.34% which is comparatively
low, as opposed to other developed and developing countries, where the average is
around 0.98%, which requires a lot space for development and enhancements in the
Indian Advertising Industry.
ABOUT FUTURE GROUP
Future Group is India’s largest retailer and one of the leading business houses with a strong
presence in retail. Its founder and Group CEO is Mr.Kishore Biyani
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Its flagship company is Pantaloon Retail India
Future Bazaar
Future Brands
Future Group
Future Capital Holdings
Future Generali
Future Learning & Development
Future Supply Chain Solutions
Future Media
Type:-Public (BSE)
Founder(s):-Mr. Kishore Biyani., (MD & CEO)
Headquarters:- Mumbai, Maharastra, India
Products:-Discount Stores, Supercenters
Employees:-30,000
Industry:-Conglomerate
Lintas and Future Group:-
Lintas has been attached with future group for almost 12 years now. During this association
Lintas has been handling two of the major accounts of Future group i.e. CENTRAL and
BRAND FACTORY. Lintas manages the INTEGRATED MARKETING
COMMUNICATION for both the enterprises.
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Mc.KINSEY’S 7S FRAMEWORK
FIGURE 3.1 MCKINSEY’S 7S FRAMEWORK
3.1 STRATEGY
Lintas is a media management company : planning, buying and evaluating strategic media
solutions for its clients. Their expertise lies in crafting customized and contemporary media
solutions based on the thorough understanding of the consumer, the media and the interaction
between the two.
Consumers today do not like to be ‘strait-jacketed’ into ‘stereotypes’. They have a plethora
of ‘me-too’ products to choose from resulting to ‘quick shift’ in product preferences at
minimal risk. Consumers are now constantly looking for value beyond price and demand
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constant improvement in products and services. What they take home is not just the product
or brand, but the entire product experience as well.
At the Lintas Media Group, approach to communication planning is one that is not media
centric but one that integrates the perspective of the consumer, the brand and the medium.
3.2 STRUCTURE
Organizational structure refers to formal hierarchical relationships & positional arrangements
it deals with how members communicate with others, how information flows, what roles he
performs, Rules & procedures existing to guide the activities of members as part of
organization With reference to Lintas , it has good mentor, disciplined relationship,
encouragement, help & guidance.
Broadly there are 5 departments in Lintas,
FIGURE 3.2 Functional structure of organization at Lintas
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Account service department
The account service, or the account management department, is the link between Lintas and
its clients. Depending upon the size of the account and its advertising budget one or two
account executives serve as liason to the client. The account executive’s job requires high
degree of diplomacy and tact as misunderstanding may lead to loss of an account. The
account executive is mainly responsible to gain knowledge about the client’s business, profit
goals, marketing problems and advertising objectives.
The account executive is responsible for getting approved the media schedules, budgets and
rough ads or story boards from the client. The next task is to make sure that the agency
personnel produce the advertising to the client’s satisfaction. The biggest role of the account
executive is keeping the agency ahead of the client through follow-up and communications.
Media department
The responsibility of the agency’s media department is to develop a media plan to reach the
target audience effectively in a cost effective manner. The staff analyses, selects and
contracts for media time or space that will be used to deliver the ad message. This is one of
the most important decisions since a significantly large part of the client’s money is spent on
the media time and/or space. The media department has acquired increasing importance in an
agency’s business as large advertisers seem to be more inclined to consolidate media buying
with one or few agencies thereby saving money and improving media efficiency.
Creative department
To a large extent, the success of an ad agency depends upon the creative department
responsible for the creation and execution of the advertisements. The creative specialists are
known as copywriters. They are the ones who conceive ideas for the ads and write the
headlines, subheads and the body copy. They are also involved in deciding the basic theme of
the advertising campaign, and often they do prepare the rough layout of the print ad or the
commercial story board. Creation of an ad is the responsibility of the copywriters and the art
department decides how the ad should look.
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Production department
After the completion and approval of the copy and the illustrations the ad is sent to the
production department. Generally agencies do not actually produce the finished ads; instead
they hire printers, photographers, engravers, typographers and others to complete the finished
ad. For the production of the approved TV commercial, the production department may
supervise the casting of actors to appear in the ad, the setting for scenes and selecting an
independent production studio. The production department sometimes hires an outside
director to transform the creative concept to a commercial.
Finance and accounting department
An advertising agency is in the business of providing services and must be managed that
way. Thus, it has to perform various functions such as accounting, finance, human resources
etc. it must also attempt to generate new business. Also this department is important since
bulk of the agency’s income approx. 65% goes as salary and benefits to the employees.
VALUE CHAIN ANALYSIS
There are mainly four roles in an advertising agency
1. Client Servicing
2. Account Planning
3. Creative
4. Production
Client Servicing people are the first point of contact in an agency for the client. They
interface between the Client and the other internal teams. Client Servicing people are given
briefs by the clients. They understand what the client’s requirement is, objectives of a
particular campaign etc and translate it to the Account Planning and Creative teams.
The Account Planning team then comes up with the strategy/plan for the campaign. The
brief given by the Client Servicing team is the starting point for the account planners. The
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plan laid out by the account planners and the brief given by the client servicing people are
inputs to the Creative team who translate the client’s brief and account planner’s strategy
into a creative consisting of art (visual appeal) and copy (literature).After the creative duties
are done, the production team takes care of the ad shoots typically an audio/video conveying
the message put forth by the creative team. Thus the cycle from a brief to an ad goes through
the above phases.
3.3 SKILL:
Skills are capabilities of organization as a whole. Skills, which describe the organization’s
competence like in Lintas would be creativity, innovation and adaptability.
The skills, which Lintas possesses are creativity, customer/account handling skills,
relationship skills, excellent communication skills, assertive decision-making, business
knowledge, leadership, attitude, adaptability, courageous, & dynamism. However the skill
requirement varies from the job to job. The skills of the agency are enhanced through
Recruitment & Selection process( Lintas handpicks the best Creative and managerial talent),
training and development(To bridge the gap between existing skills& desired skills) etc,:
3.4 STYLE:
At Lintas there is a very open management where the employees can suggest any
improvements in systems. There is a grass root level participation. These suggestions are
implemented either by interdepartmental communications, mutual understanding, or by top-
level analysis, where huge investments are involved. Even the policy decisions are taken with
consultancy of respective persons. Employees take casual decisions & their immediate head
gives the feedback.
From the above facts we can say that Lintas has a participative management style.
3.5 SYSTEMS:
It refers to all rules, regulations & procedures both formal & informal. It includes campaign
plans, control system, cost accounting procedures, recruitment training & development plans.
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In Lintas, every department has got their own Management Information system, for eg:
Human resource information system:
There is an HR package which stores all employee profile such as employee ID, code no,
joining date, place of posting, place of posting, name, personal profile, bank name, A\c no,
grade, department, qualifications, designation, experience, pay scale, & history. On the basis
of this data rating is done.
It also gives information of overall employee structure like no of persons joined in a month,
transfers, promoted, loan taken employees, etc
3.6 STAFF:
The staff at Lintas are mostly recruited based on referrals and not by any recruitment drive
and thus it helps in capturing talented and creative people. Like any other agency Lintas also
engages in head hunting to capture some of the best minds in advertising field.
The staff in terms of their qualifications are not academically very intelligent but are people
who have an over all personality since advertising requires a good lot of communication,
negotiation and convincing skills.
3.7 SHARED VALUES
Unlike owner operated companies, in large corporations often operated by employees, there
is not necessarily that sense of responsibility, that sense of: “Somebody is paying for this, so
you have to make their [clients] money’s worth”. In large companies, employees do not have
a vast interest for the company; therefore, they do not have a vast interest in the success of
their clients.
The original philosophy of the agency “Do not outspend the competition, outsmart them.”
basically means not to necessarily spend more money than the competition, just
communicate the message more intelligently. If the work does not work, then come up with
something else.
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Lowe knows their clients demand nothing but the best, and that it is becoming increasingly
difficult to appeal to consumers. Lowe believes in staying one step ahead of the competition
with innovative, original thinking. The mantra of the company is "Innovate or Die" because
"...in an industry being crushed by a lack of innovative thinking, anything less is just that-
less." The team at Lowe feels that it is the teams duty to provide the spectacular results the
clients deserve.
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SWOT ANALYSIS
STRENGTHS
- One of the oldest ad agencies of the country, hence a strong foothold.
- Provide clients with new ideas and offer integrated 360 degrees solutions.
- A satisfied client list.
- Continuous innovations by a very creative and talented workforce.
- A well developed internal communication interface.
- An efficient working environment.
- A visionary leader. (R Balakrishnan/ Balki).
- A central team that focuses on the development and application of knowledge and
systems for next generation media planning & buying.
WEAKNESSES
- Too much emphasis on traditional tried and tested methods.
- Lack in promotion strategies towards increasing the brand name.
- Less experience in some areas like food & beverage drives the client to competition.
OPPORTUNITIES
- The open collaboration between Interpublic group and Lintas has been resulting in
customized solutions to fit unique needs.
- Increasing awareness of digital marketing.
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- Being the oldest advertising agency in India, it has dedicated lot of clients who keep
coming back with their new products.
- Entering fields such as Food & beverages, as well as sports will enhance the variety
in client list.
- Lintas is perceived as one of the most creative ad agencies of all time, thus bringing
in all those customers who need a catchy ad.
THREATS
- Stiff competition at both domestic & international levels.
- Rise in the number of in house creative teams by various companies.
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Lintas being a private limited company is not at the liberty of giving out its financial data.
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The whole period of ten weeks was an insightful experience. Since an advertising agency is
not very structured in its operations, it would be a whole new set of experiences every single
day. I came to know how theoretical aspects are applied particularly in the organization. It
was a good learning experience for me to understand various departments and their style of
functioning.
There is a sense of ease as to how the whole system works but still a lot to learn as to how
proper co-ordination among the employees helps in order to provide effective service to the
customer.
During my project, I was able to study various aspects of the organization practically. I
acquired the knowledge of various strategies adopted by the company. I was able to
understand the function of various department and duties and responsibilities of each
department. The company has different departments broadly classified as
1. Account service department
2. Media department
3. Creative department
4. Production department
5. Finance and accounting department
I could learn how to behave in an organization environment, i.e. while integrated with the
colleagues and other people. I could really see how the terms are formed and their benefits to
the organization.
The whole working of IMC (Integrated Marketing Communication) was practically
experienced and analyzed by me. With being included in all the functioning of the company I
got to know how right from the pitching to a client to Brand servicing is done.
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A whole lot of experience was during the campaigns in which print ads for central malls were
being shot. The whole exercise was very fruitful in understanding how various departments
coordinate to come up with an ad campaign.
The human resource department is handling functions like employee welfare, personal and
administration, security, corporate communication, employee motivation through rewards
and re-organization they have very effective communication channels to create transparent
healthy atmosphere.
The company aims to provide a relaxed working condition, and it was quite visible with how
there were no stringent levels of bureaucracy through which one has to pass to meet the
regional head or other heads. Every now and then the company asks employees for their
feedbacks where suggestions are invited to improve working condition of the company and
distributed to good and implementable suggestions.
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GENERAL INTRODUCTION
Apparels & Accessories is India’s second largest retail category (behind food & grocery),
representing 10% of retail market. Projected to reach $ 50 billion for 2011, apparel will be
among the highest growth categories, with a CAGR of between 12 to 15%. India’s apparel
market is highly fragmented. The top 7 competitors represent less than 10% of total market.
Customers tend to be loyal to a specific retailer – Central, Lifestyle, Shopper’s Stop,
Westside & Brand Factory – instead of any particular apparel brand.
7.1 “STATEMENT OF THE PROBLEM”
“A study on youth’s perception and consumption of fashion (apparels & accessories)”
i.e. To understand the Shopping behavior of the youth in general and fashion in particular.
Fashion has evolved in the past hundred years just as it has over time, as our culture and
attitudes change, fashion comes along with it and through this study we aim to primarily
understand Youth, both Males and Females and How does this segment consume fashion and
analyze whether youth always go for latest trends and fashion .
7.2. OBJECTIVES OF THE STUDY
Primary objectives
To analyze youth’s perception and consumption of fashion goods with special reference
to Apparels and Accessories.
To suggest remedial measures there on.
Secondary objectives
To describe the brand loyalty displayed by the segment and also understand the gifting
behavior in youth.
Checking preference of media (traditional v/s digital).
Finally, to incorporate the findings in establishment of a new store by the client.
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7.3. SCOPE OF THE STUDY
The study encompasses a vast scope as it includes youth aged between 18 to 26 across
Bangalore.
This study is being carried out in order to obtain the information about how the youth
perceives and consumes fashion in Bangalore. The client here is Future group and going by
its segmentation of stores, it divides them into:-
1. Lifestyle segment (consisting of Central Malls) and
2. Value segment (consisting of Brand Factory)
Thus, taking both the factors into account this study would revolve around youth and how
does it perceive fashion, hence explaining their bent towards the premium stores or value
based stores.
7.4. RESEARCH DESIGN
1. Type of research:-
Exploratory research
Since we are trying to gain a better insight into a problem and the area an Exploratory
research design is apt.
2. Target Population:-
The subjects for the study are young people aged between 18 to 26 and residing in
Bangalore. They have to be either students or newly joined working professionals.
7.5. SAMPLING PLAN:-
Sampling Technique:- Random sampling technique i.e. Non Probability sampling
technique.
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Sample size:- 150 respondents
Data collection design:-
Secondary data about the understanding of Youth as a segment group is done through various
published articles, books and the internet. Information about the client i.e. Future Group is
being given by the company as well as being collected from the internet.
Primary data is being collected through a well structured questionnaire.
Instrument design:-
This study is based on primary data too and the primary data are collected through a well
structured questionnaire. The questions in the questionnaire are structured, non disguised
questions. This type of questionnaire will be helpful to extract the result within our limits.
7.6 DATA ANALYSIS:-
The analysis of the project work shall cover use of SPSS for “Perceptual Mapping”, “and
“Uni-Variate ANOVA”, which seem to provide fairly accurate results, hence the core
objectives of the research work is met. The use of EXCEL is done in order to formulate
Thurstone case V scale and various Graphs.
The research work will cover the opinion of 150 respondents and shall not cover an
equivalent distribution between students and employed or male and females. Hence the
results obtained shall only limit to the statistical viability of the results.
7.7. LIMITATIONS OF THE STUDY
The youth as a customer segment is huge and covers every youth in between 18 to 26 in the
city. With such a large customer base, a small time frame of ten weeks and a relatively
volatile characteristic of the segment it is very difficult to find out the consumer reaction.
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Thus the study suffers from the following limitations:
i. As it was not possible to cover the entire city, only a small representative of the
sample of customers was taken.
ii. The distinction of stores i.e. into Lifestyle segment and value based segment is not
mutually exclusive.
iii. Though the respondents are supposed to provide correct information, it depends
entirely on the respondents as they may be biased.
iv. All questions were administered but there can be an element of perceived
misunderstanding of the question.
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ANALYSIS
Exploratory Research was undertaken to identify more precise formulation of the problem
and formulation of course of action. Given the vastness of the subject (youth and fashion) to
be researched greater amount of flexibility and ad hoc versatility, the information was sought
to formulate the questionnaire and gain familiarity into the way consumers respond to
Fashion.
The flow of analysis is,
1. Calculate approx monthly potential of a shopper:-
First of all we calculate the approx monthly potential of a shopper by taking into
consideration:-a) one’s shopping frequency b) their monthly income and c) how much do
they spend on each shopping expedition. We then cross check it with last month’s
shopping expenditure to validate the finding.
2. Construct a Thurstone scale:-
Then we construct a Thurstone scale to find the preferential order of various stores.
3. Psychographics and shopping behavior:-
Next we look into the Youth psychographics of Bangalore and validate the finding by
cross checking results with other specific questions. We then do an Anova to check
whether psychographics has an effect on purchases.
4. Perceptual map:-
Furthermore we plot a perceptual map with stores and various attributes associated to the
stores.
5. Shopping Behavior:-
Then we move to analyze other aspects related to shopping behavior, which help us
understand shopping behavior in general,
- Gifting behavior
- Checking preference of media( traditional v/s digital)
- What helps choose a shopping destination?
- Specifics of last purchase.
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8.1 Finding Monthly potential of a shopper:-
1.Table 8.1 showing Frequency of shopping:-
frequency of visitFrequency Percent Valid Percent
Valid Monthly 72 48.0 48.0
Quarterly 51 34.0 34.0
Half yearly 18 12.0 12.0
Yearly 9 6.0 6.0
Total 150 100.0 100.0
Analysis:-
The frequency table and the corresponding chart reveal that approximately
48% of the sample size shops monthly for apparels and accessories.
Further 34% quarterly shop and 12% half yearly.
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The rest 6% are the annual shoppers.
2. Finding monthly income
Next we move on to find what is the monthly income or allowance that one gets and then
calculate what the monthly potential of a single shopper for a month would be.
So the monthly income is depicted in the following frequency table and graph.
Monthly Income Frequency Percent Valid Percent
Valid -Rs 3000 8 5.3 8.0
Rs3000- Rs5000 18 12.0 18.0
Rs.5000-RS.7000 23 15.3 23.0
More than Rs.7000 51 34.0 51.0
Total 100 66.7 100.0
Missing 0 (Missing) 50 33.3
Total 150 100.0
Table 8.2 Table showing monthly income of the respondents
From the table:-
49% of the samples are within the Rs.7000 bracket with 23% being more than
Rs.5000.
But the rest 51% is the segment with Rs.7000 or more money to spend every month.
This is the average pocket money or allowance of respondents in the 18 to 26 age
group.
The bar graph on next page more clearly depicts the same.
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-3000 3000-5000 5000-7000 7000 & above
8%
18%23%
51%
Graph 8.2:- Graph showing Monthly Income (in Rs.)
Now since we know of the shopping frequency and the average income, we need to
know what an average individual spends on apparels and accessories out of their
monthly income. This would give us the potential of a single buyer.
3. Finding expenditure on apparels and accessories out of monthly income.
Table 8.3 Table showing How much of the monthly income is spent on shopping for
apparels and accessories?
Percentage spent Frequency Percent Valid Percent
Valid 5-15% 42 28.0 28.0
15-25% 57 38.0 38.0
25-45% 30 20.0 20.0
>45% 21 14.0 14.0
Total 150 100.0 100.0
Graph 8.3 : Monthly expenditure on apparels and accessories
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5-15%
15-25%
25-45%
>45%
42
57
30
21
Thus, from the chart we depict that,
42 of 150 respondents spend between 5 to 15% of their monthly income on apparels
and accessories.
57 of them spend up to 25% of their income.
And the rest 30 and 21 respondents spend up to 45% and more than 45% of their
income on apparels and accessories monthly.
Henceforth, Monthly expenditure on apparels & accessories
• Since 48% shop monthly for apparels & accessories.
• And 51% have monthly income beyond Rs.7000
• Thus, 58% (57+30/150) spend an average 25% of their disposable income on
shopping for A & A.
i.e. 57 people from the 15- 25% expenditure group and 30 people from 25-45%
expenditure group.
Average is considered 25% since it’s the mid value of both the groups. Thus, approx
monthly potential from 1 out of 2 persons (since 48% ~ 50% shop monthly for A&A) in the
age group of 18 to 26 would be
= 25% of 7000 = Rs. 1750
CONCLUSION:-
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Going by the previous calculation we see that on an average 50% of the youth among 18 to
26 years of age have the monthly potential of Rs.1750, which is huge and it gives immense
scope to the marketers.
Cross checking the afore mentioned finding
Table 8.4 Table showing the amount spent during the last purchase
Amount spent Frequency Percent Valid Percent
Valid till Rs.999 14 9.3 11.8
Rs.1000-Rs.1999 49 32.7 41.2
Rs.2000-Rs.2999 25 16.7 21.0
Rs3000-Rs.5000 16 10.7 13.4
Rs.5000 & above 15 10.0 12.6
Total 119 79.3 100.0
Missing 0 31 20.7
Total 150 100.0
Graph 8.4 Graph showing Expenditure on Apparels &Accessories during last purchase
-999 1000-1999 2000-2999 3000-3999 4000 & above
12%
41%
21%14% 13%
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Thus, we see that the details of last purchase give us an idea of how much one spends on
A&A during a single shopping expedition. Since the major chunk lies in the Rs.1000 to
Rs.1999 bracket, it’s safe to assume the validity of the calculated monthly potential.
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8.2 THURSTONE CASE V SCALE.
The Thurstone scale is there by established to find out the preference of various stores.
Among 7 prominent stores the order of preference was established using comparative
judgement, So as to arrive at a perfect understanding of what is the preferential order
in store decision making.
To apply the Thurstone model
Rj - Rk = Zjk δj2 + δk
2 - 2 µjk δj δk
Where
Rj - Rk = linear distance (on respondent’s psychological scale) between stimulus j and stimulus
k
Zjk = standard variate associated with the observed proportion of the case in which stimulus j
is
Prefered to stimulus k
δj2
δk2 = discriminal dispersion of stimulus j and k respectively
µjk = coefficient of correlation between the discriminal processes associated with stimulus j
versus stimulus k
Assuming that
1) Discriminal dispersions are equal
2) The correlation between each pair of discriminal process is equal
3) By setting δj2= δk2 for all j and k and allowing µ denote the common correlation
across all pairs of discriminal processes, the Thurstone model gets reduced to
Rj-Rk = Zjk 2δ2 (1-µ)
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since 2δ2 (1-µ) is a constant ewe can set up this as equal to 1 by virtue of choosing it as a
unit of measurement therefore by doing so the Thurstone model gets reduced to
Rj-Rk = Zjk
Here Zjk equals the standard unit normal variate, Z
In order to execute Thurstone Case V scale each respondent was asked to compare the five
factors paired with every factor, thereby comparing with all the factors in pairs. The pairing
was done as a coding from A to E achieved through the most favoured factors independent of
pairing.
Table 8.5 Table showing Observations on preference of factors
Preferred Factor
Factor Central Lifestyle Westside Shoppers
stop
Brand
factory
Max Mega mart
Central 50% 70% 53% 64% 27% 35% 19%
Lifestyle 30% 50% 25% 46% 18% 24% 16%
Westside 47% 75% 50% 66% 22% 37% 26%
S.S 36% 54% 34% 50% 23% 21% 15%
B.F. 73% 82% 78% 77% 50% 65% 39%
Max 65% 76% 73% 69% 35% 50% 33%
M.M. 81% 84% 74% 85% 61% 67% 50%
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Central Lifestyle Westside Shoppers
stop
Brand
factory
Max Mega
mart
Central 0.50 0.70 0.53 0.64 0.27 0.35 0.19
Lifestyle 0.30 0.50 0.25 0.46 0.18 0.24 0.16
Westside 0.47 0.75 0.50 0.66 0.22 0.37 0.26
S.S 0.36 0.54 0.34 0.50 0.23 0.21 0.15
B.F. 0.73 0.82 0.78 0.77 0.50 0.65 0.39
Max 0.65 0.76 0.73 0.69 0.35 0.50 0.33
M.M. 0.81 0.84 0.74 0.85 0.61 0.67 0.50
Table 8.6 Table showing Z Values Related to Preference Proportions
Table 8.7 Table showing Z values and final assigned values to stores.
Central Lifestyle Westside Shoppers stop
Brand factory
Max Mega mart
Central 0 0.53 0.08 0.36 -0.62 -0.39 -0.88
Lifestyle -0.26 0 -0.68 -0.10 -0.92 -0.71 -1.00
Westside -0.08 0.68 0 0.43 -0.78 -0.62 -0.65
S.S -0.34 0.10 -0.42 0 -0.74 -0.81 -1.04
B.F. 0.62 0.92 0.78 0.74 0 0.39 -0.42
Max 0.39 0.71 0.62 0.50 -0.39 0 -0.44
M.M. 0.88 1.00 0.65 1.04 0.28 0.44 0
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Total 1.21 3.94 1.03 2.97 -3.17 -1.7 -4.43
Mean(Z) 0.172 0.562 0.147 0.424 -0.452 -0.242 -0.632
R* 0.804 1.194 0.779 1.056 0.18 0.39 0
A negative sign is attributed to the Z value when the proportion is less than 0.5
Mean (Z) = Total / Number of factors
The average Z value for each of the columns is arrived
Considering the zero point of an interval scale as arbitrary, assuming the scale value for
factor D (Result Oriented) RD= ZD = -0.632 be the reference point as Megamart ,
if subscribed shall deliver results
Then simply adding 0.632 to each of the other Z to obtain the Case V scale values of the
other six factors denoted by R*
The preference of stores therefore is
Lifestyle > Shoppers stop > Central > Westside > Max > Brand Factory > Mega mart
8.3 YOUTH PSYCHOGRAPHICS
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INDIAN YOUTH
Around a fourth of India’s population is within the age group of 16 to 25 years making it the
world’s largest assimilation of such a group within a country. Over the last few years a lot of
considerable amount of energy and time has been spent in understanding this complicated
audience.
The study YES! (Youth, an emerging segment) was focused on the top 16 cities of India on
youths 16-25 years, belonging to SEC A/B households. The segments are:-
Disarming Turtles(20%) :- Just like turtle carries its home on its back everywhere he goes.
This group is very family oriented and enjoys spending quality time with their family.
They are not opinionated, but are open to criticism.
They are neither materialistic nor are they therefore, brand conscious.
Aspiring Ostiches(18%): - The Ostrich is the fastest land bird. It can run miles and cover
them very quickly. Its long neck keeps it reaching for the stars. So do the youth of this
segment.
This set is characterized by being opinionated and adventurous.
They aspire for the best and have the confidence to achieve their goals.
They are however, not ritualistic.
They have no political ambitions or inclinations.
Flamboyant Flamingoes(26%):- Flamingoes are birds of style and beauty. When they
gather in their thousands to drink and bathe they follow sequential movements that look like
a well choreographed dance. ‘Style’, ‘Class’, a few words that come to mind when we think
of these birds and the youth of this group as
They are both brand and fashion conscious.
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They keep abreast of all that is "new", be it fashion or technology .
They are extremely impressionable, but are opinionated enough to have the last word.
They constantly seek social approval.
Nonchalant Tigers(21%): A tiger defines power and selfishness. He kills just because he
can. A very solitary animal. He does not care of what is happening around as long as it does
not involve him or his territory. The youth from this psychographic group are very similar to
this majestic beast.
They are very open about their relationships and have their own set of social norms.
They are very broad-minded and are not opinionated.
They are not family oriented and tend to be self-centered.
They are not keen on keeping abreast of trends.
Worker Bees(6%): Buzzing around day and night at the beck and call of the queen bee.
Living in tight proximity with his fellow bees. Has one aim in life to work and work well and
hard. The youth in this group are like these worker bees:
They are ‘people oriented’ and are not self-centered.
They are not trendy and hence are not brand conscious.
They are not impressionable and are opinionated.
They do not mind helping with household chores.
Legal Eagles (10%):The ruler of the skies.. The highest flying bird…The perfect arial
hunter..The Eagle is the best description for this cluster as the youth here
Are self centered.
Are very conscious of social norms.
Are technologically savvy and trendy.
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GRAPH 8.5 GRAPH SHOWING YOUTH PSYCHOGRAPHICS IN
BANGALORE
From the graph its clear that,
74% (40%+17%+17%) of the respondents are in the category of worker bees,
nonchalant tigers and disarming turtles respectively.
The common characteristics among them are:
1. Disarming turtles:
• This group is very family oriented and enjoys spending quality time with their family.
• They are not opinionated, but are open to criticism.
• They are neither materialistic nor are they therefore, brand conscious.
2. Nonchalant tigers:
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• They are very open about their relationships and have their own set of social norms.
• They are very broad-minded and are not opinionated.
• They are not family oriented and tend to be self-centered.
• They are not keen on keeping abreast of trends.
3. Worker bees:
• They are ‘people oriented’ and are not self-centered.
• They are not trendy and hence are not brand conscious .
• They are not impressionable and are opinionated.
• They do not mind helping with household chores.
POINTS TO BE NOTED
The common prevalent characteristic in youth population of not being trendy is very
alarming.
It also verifies the point where 66% of the respondents opined on not being trendy as it
doesn’t matter.
It provides clarity to the Case V where in Lifestyle and Shoppers Stop are perceived better
than Central but volume of purchases differ (Refer Table no.20). It can be explained
through the prevalent characteristic of not being opinionated.57% are not opinionated
and thus we see the difference in perception and real purchases.
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Fashion adoption Frequency Percent Valid Percent
Valid Very trendy 2 1.3 1.5
Trendy 26 17.3 20.0
Neutral 91 60.7 70.0
Not trendy 9 6.0 6.9
Unaware 2 1.3 1.5
Total 130 86.7 100.0
Missing 0 20 13.3
Total 150 100.0
Further analysis gives us an insight into how Bangalore youth perceive themselves or
define themselves in terms of fashion consciousness.
Table 8.8 Table showing fashion consciousness in youth
Very trendy(blindly follows trends)
Trendy(follows trend with conviction)
Neutral(comfort & value matter too)
Not trendy(but aware of trends)
Unaware of fashion & trends
2
26
91
92
Graph 8.6 Fashion consciousness in youth
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From the previous charts and graph we see that
91 of 130 respondents define themselves as neutral i.e. for them being trendy is not
important, they don’t keep themselves abreast of trends but are more insistent on
comfort and value for money.
26 of 130 respondents think of themselves to be trendy i.e. they do follow trends but
not with conviction. For them trends have to be within some of their constraints.
9 of them think of themselves as not trendy but they are aware of trends.
This helps us validate the psychographic finding better since 74% of the youth in
Bangalore belong to the non trendy segment, we also see the same trend here i.e.
70% perceive themselves to be non trendy.
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ONE WAY ANOVA TEST
To find out the effect of Psychographic segmentation on the sales:
Hypothesis:
We assume that the psychographic segments have no effect over the sales i.e. purchases done
by customers are independent of their respective psychographic type.
We’ll test the hypothesis by doing a completely randomized one-way ANOVA. For this we
have taken the variable “Amount spent during the last purchase” as the dependent
variable and the ‘Psychographic segments” as the independent variable.
The null hypothesis would be as follows:
Ho= The psychographic segments has no effect on purchases.
Therefore, the alternate hypothesis would be as follows:
H1= The psychographic segments bear an effect on purchases.
The hypotheses are tested at 95% confidence level.
ANOVA
What was the amount spent during your last purchase?
Sum of Squares Df Mean Square F Sig.
Between Groups 18.366 5 3.673 2.459 .038
Within Groups 147.882 99 1.494
Total 166.248 104
Table 8.9Table showing Oneway AnovaINFERENCE:
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In the output table of one-way ANOVA, the last column gives the result of the F -test as
0.038. Since the significance of F is less than 0.05 the null hypotheses is rejected and the
alternate hypothesis is accepted. That would mean that the hypotheses stating “The
psychographic segments has no effect on purchases” would be rejected.
We can conclude that the purchases are dependent on the psychographic profiling of the
shopper. In other terms the psychographic profiling has a significant impact on purchases
done by an individual.
8.4 PERCEPTUAL MAPPING OF VARIOUS MAJOR PLAYERS IN
THE APPAREL AND ACCESSORIES SEGMENT.
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Brand positioning is essentially concerned with mapping a customer’s mind and
placing all the competing brands of a product category in appropriate slots or position
on it. Here the respondent is asked to mark on a 5 point Likert scale what the
customers think about the stores that they frequent. This would result in rating for all
the brands. Here there are 6 stores taken into consideration. The Client is interested in
finding out how the customers perceive the Company Brands with respect to the
attributes mentioned in the questionnaire.
In particular the client wants to know “How do customers perceive the Future
group brands (Central and Brand factory) along with its major competitors?”
Output:
a) Eigen Values
b)
Eigen values
Function Eigenvalue % of Variance Cumulative %
Canonical
Correlation
1 1.387a 37.8 37.8 .762
2 1.181a 32.2 70.0 .736
3 .645a 17.6 87.6 .626
4 .236a 6.4 94.0 .437
5 .182a 5.0 99.0 .392
6 .037a 1.0 100.0 .189
Table 8.10 Eigen Values
The eigen value is:
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EigenValue=Betweengroups∑ of squares
Within groups∑ of squares
The largest Eigen value corresponds to the Eigen vector in the direction of the maximum
spread of the groups’ means. The second largest Eigen value corresponds to the Eigen vector
in the direction that has the next largest spread, and so on. The square root of each Eigen
value provides an indication of the length of the corresponding Eigen vector. Small Eigen
values result in Eigen vectors of essentially no length and account for very little of the total
dispersion. The ‘Percentage of Variance’ column allows us to evaluate which canonical
variable accounts for most of the spread. Here the first Eigen value is able to explain 37.8%
of variance and the second Eigen explains 32.2% of variance.
c) Wilks’ Lambda
Wilks' Lambda
Test of
Function(s) Wilks' Lambda Chi-square Df Sig.
1 through 6 .077 271.602 66 .000
2 through 6 .184 179.373 50 .000
3 through 6 .402 96.703 36 .000
4 through 6 .660 43.974 24 .008
5 through 6 .816 21.550 14 .088
6 .964 3.859 6 .696
Table 8.11 Wilks’ Lamda
The Table is used to identify the function which is significant in explaining the
differences among the groups. Wilks’ Lambda is the proportion of the total variance in the
Discriminant scores not explained by differences among the groups.
Wilks’ lambda ranges between 0 and 1.
Values close to 0 indicate the group means are different
Values close to 1 indicate the group means are not different.
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Values equal to 1 indicate the group means are the same.
Here in the above table, we see that 1 , 2 and 3 through 6 of the test of function values is
closer to 0, this shows that the group means are different. And thus the first 3 functions
are significant .
d) Standardized Canonical Discriminant Function Coefficients
Standardized Canonical Discriminant Function Coefficients
Function
Attributes 1 2 3 4 5 6
Fashion consciousness -.157 .014 -.249 -.039 -.293 -.268
Brand image .004 .270 .415 -.069 -.428 -.169
Quality of merchandise .002 -.353 -.271 .347 .380 -.266
Size & design option .435 -.085 -.129 -.546 .415 -.165
Word of mouth .486 -.093 .281 -.099 -.376 .249
Feeling of exclusivity .210 -.044 .798 .461 .076 .159
Shop ambience .367 .760 -.124 .092 -.064 .133
Shop location .577 .298 .066 .685 .060 .160
Trust in the store -.027 .453 .158 .200 .206 .275
Ads or celebrity endorsement -.044 .443 .169 -.307 .711 -.393
Packaging of items -.222 -.207 -.190 -.162 -.070 .786
Table 8.12 Standardized Canonical Discriminant Function Coefficients
The higher value of the coefficients for a particular attribute on a function indicates the
higher loading for the same on that function. This is applicable when the variables are
measured in different units. The magnitude of the un-standardized coefficient provides little
indication of the relative contribution of the variable to the overall Discriminant function.
Standardizing the coefficient allows us to examine the relative standing of the measurements.
This table is used to plot “Attributes” on perceptual maps using “Microsoft Excel”.
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e) Structure matrix
The structure matrix contains within – group correlations of each predictor variable with the
canonical function. The matrix also provides another way to study the usefulness of each
variable in the Discriminant function. For each variable, an asterix marks its absolute
correlation with one of the canonical functions. With each functions, these marked variables
are then ordered by the size of the relation.
Structure Matrix
Function
Attributes 1 2 3 4 5 6
Size & design option .715* -.173 -.004 -.515 .164 -.049
Word of mouth .612* -.177 .022 -.507 -.069 .154
Shop ambience .170 .572* -.351 .080 -.142 .135
Trust in the store -.135 .374* -.062 -.163 .296 .263
Feeling of exclusivity -.030 -.227 .781* .212 .134 .115
Quality of merchandise .150 -.161 -.401* .271 .375 -.205
Shop location .503 .129 -.113 .524* .025 .024
Ads or celebrity endorsement -.175 .378 .282 -.302 .601* -.077
Brand image -.010 .404 .344 -.129 -.418* -.305
Fashion consciousness .009 .185 -.153 -.193 -.301* -.274
Packaging of items -.157 .097 -.035 -.207 .179 .803*
Table 8.13 Table showing Structure matrix
In this table, The largest correlation of “size and design option” and “word of mouth” exists
with the function – 1.
The largest correlation of “shop ambience ” and “trust in the store” exists with
the function – 2.
The largest correlation of “Feeling of exclusivity” and “Quality of merchandise”
exists with the function – 3.
The largest correlation of “Shop location” exists with the function – 4.
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The largest correlation of “Celebrity endorsements/Ads”, “Brand image” and
“Fashion consciousness” exists with the function – 5.
The largest correlation of “Packaging of items” exists with the function – 6.
The Table8.11 displays the canonical variable (Discriminant Function) means by group.
Within group means are computed for each canonical variable. Here in my analysis, only
Function -1 and Function -3 are used to plot the brands on the perceptual map.
f) Function at Group Centroids:
Functions at Group Centroids
which store was your
last purchase in?
Function
1 2 3 4 5 6
Central -1.485 .388 .868 .209 -.278 -.106
Lifestyle -.323 .993 -.969 -.421 .298 -.183
Shoppers stop .788 -.104 -1.578 .517 -1.141 .049
Brand factory 1.360 1.475 .252 .948 .512 .128
Max 3.212 .016 1.347 -.677 -.374 -.248
Megamart -.371 1.466 .345 -.991 -.253 .627
Exclusive outlets -.022 -1.294 -.055 -.006 .197 .055
Table 8.14 Function at Group Centroids
From Table,
The co-ordinates of X-axis and Y-axis are shown in the table below.
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Brand X-axis Y-axis
Central -1.485 .868
Lifestyle -.323 -.969
Shoppers stop .788 -1.578
Brand Factory 1.360 .252
Max 3.212 1.347
Megamart -.371 .345
Exclusive outlets -.022 -.055
Table 8.15 Cartesian co-ordinates of brands on Discriminant function 1 and 3
Exhibit 3.3 showing Attributes and Stores
ATTRIBUTES
1 = Fashion consciousness/ fashion statement
7 = Shop ambience
2 = Brand name/ image 8 = Shop location
3 = Quality of merchandise 9 = Trust factor
4 =Availability of sizes & designs 10 = Ads/ celebrity endorsements
5 = Peer influence/ word of mouth 11 = Packaging
6 = Feeling of exclusivity
STORES
CL= Central MM=Mega Mart
LS=Lifestyle MX=Max
SS=Shoppers Stop EO/L=Exclusive Outlets
BF=Brand Factory
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FIGURE 8.7Map:-Perceptual map
-2.000 -1.000 .000 1.000 2.000 3.000 4.000
-2.000
-1.500
-1.000
-.500
.000
.500
1.000
1.500
2.000
AttributeStore
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MX
BF
SS
LS
CL
MM
EO/L
6
5
8
4,711
13
9,10
2
DIMENSION 1
DIM
ENSI
ON
2
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Perceptual map of stores and attributes: Drawn using Excel, from SPSS output.
In the graph, the length of the arrow represents its effect in discriminating on each
dimension. Longer arrows pointing more closely towards a group centroid (store on the map)
represent variables most strongly associated with the group. Vectors pointing in the opposite
direction from a given group centroid represent lower association of the attribute with a store.
Variables with longer vectors in a given dimension, and those closest to a given
axis( dimension represented by discriminant function) are contributing more to the
interpretation of that dimension. Looking at all variables that contribute to a given axis
(dimension), we can label the dimension as a combination of those variables.
In this case the various points to be noted are:-
All the attributes are huddled up in the centre thus giving us an apprehension of being equally
important but going by their correlation with dimension we find that,
Attributes 4, 7 and 8 i.e. Availability of sizes & designs, Shop ambience and Shop
location respectively are closest to dimension 1 and thus Dimension 1 can be labeled
a combination of these three variables.
Attributes 2, 3 ,6,9 and 10 i.e. Brand name/ image, Quality of merchandise,
Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements respectively
are closest to dimension 2 and hence Dimension 2 can be labeled as a combination of
these.
Attributes 1, 5 and 11 i.e. Fashion consciousness/ fashion statement, Peer
influence/ word of mouth and Packaging are not close to either of the dimension
and thus are not useful in defining any of the two dimension.
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STORES AND THEIR ASSOCIATION WITH ATTRIBUTES/DIMENSION
CENTRAL:-
Central as we see in the third quadrant is not close to any dimension and thus scores low on
both of them.
LIFESTYLE and SHOPPERS STOP:-
Lifestyle and shoppers stop are very acute towards the DIMENSION 2 and hence can be said
that they are known for the Brand name/ image, Quality of merchandise, Feeling of
exclusivity, Trust factor, and Ads/ celebrity endorsements respectively
BRAND FACTORY:-
Brand factory is close to DIMENSION 1 and thus is perceived well for its Availability of
sizes & designs, Shop ambience and Shop location. This finding seems to be contradicting in
nature since Brand factory is mostly known for value pricing and is not so good with sizes &
design option. It seems to be a typical case of stereotyping where in which due to “value for
money” attribute being largely on the side of brand factory, shoppers have rated it higher
even on the size and design attribute.
Though shop ambience and location are valid points since shoppers are quite relaxed inside
the store due to reasonably priced goods and the feeling of “ITS IN MY RANGE”. Shop
location is another point i.e. the proximity and easy access makes it rate higher on this
dimension.
MEGA MART:-
Mega mart is also lightly perceived by DIMENSION 2 but still the correlation is not very
high.
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MAX:-
Max again is not close to any of the dimension and thus cannot be attributed any of the
dimension.
EXCLUSIVE OUTLETS:-
The exclusive outlets is right near the origin and thus is very strongly depicted by both the
dimensions, i.e. DIMENSION 1 and 2 both.
Thus it is strongly known for of sizes & designs, Shop ambience, Shop location Brand name/
image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity
endorsements. It also gives a logical explanation to higher frequency of exclusive outlets
purchase in the last purchases made.
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8.5 ANALYZING OTHER ASPECTS RELATED TO SHOPPING
BEHAVIOR.
- Gifting behavior
- Checking preference of media( traditional v/s digital)
- What helps choose a shopping destination?
- Specifics of last purchase.
8.5 a) Gifting Behavior among youth
Gifts also account for a major share in the purchases now a days. With socialization turning a
lot more digital than before, it has had both positive and negative impacts on the gifting
behavior. The positives are in the field of e gifting and e cards with the traditional gifting
pattern taking a back seat. But going by this assumption we try to find out what is the most
preferred item of gift and also what is the normal range for buying gifts.
Table 8.16 Most preferred gifting item
.
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Gift items Responses
Clothes 59
Bag 37
Watch 57
Jewellery 15
Others 10
Total 178
Graph 8.8 Most preferred gifting item
From the graph,
59 of 150 respondents prefer clothes or apparels when it comes to gifting.
37 of 150 respondents prefer bag as a gifting item.
57 of 150 respondents are in favor of watch as a good choice for gifts.
And 15 of 150 prefer jewellry as an apt gifting item.
This graph helps us analyze that apparels and watches are the safe choices among gifts
and are personal too. Thus it helps us get an idea on how the gifting market can be aptly
tapped.
To find out what is the price range for gifts, will help to get greater understanding of gifting market.
Table 8.16 Table showing Price range for gifts
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Price range for gifts Frequency Percent Valid Percent
Valid Up to Rs.1000 41 27.3 34.2
Rs.1001-Rs.3000 47 31.3 39.2
Rs.3001-Rs.5000 16 10.7 13.3
>Rs.5001 16 10.7 13.3
Total 120 80.0 100.0
Missing 0 30 20.0
Total 150 100.0
upto 10001000-3000
3000-50005000 & above
41 47
1616
120
Graph 8.9 Graph showing Price range for gifts
Inference:-
Expenditure on a single item as a gift:-
41 of 120 respondents spend only up to Rs.1000 when it comes to gifting somebody.
47 of the 120 respondents spend in between Rs.1000 and Rs.3000 for gifts.
16 respondents each in the Rs.3000-5000 and Rs.5000 & above bracket.
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With the major chunk being within the range of Rs.3000, value formats with the huge
discounts and offers are an ideal choice for gifts.
8.5 b) To find out the preference of media( traditional or digital)
Traditional media includes Ads in newspapers, magazines, bill boards, television etc.
Digital media refers to advertising through the use of World Wide Web.
Thus, going by the source of information about the latest trends and collection in stores,
Source of information No. of RespondentsTelevision 55Print ads 76Internet 40
Outdoor hoardings 13SMS’s and others 14
Table8.18 Table showing Source of information
Telev
ision a
ds
Print A
ds(mag
azines,
Nwsppr)
Internet
Outdoor hoard
ingsSM
S's
55
76
40
13 14
Graph 8.10 Graph showing preferred Source of information.
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From the graph:-
With print ads being the popular choice, it is unnecessary to point out that people still
prefer the traditional mode of communication. It can mostly be associated to the fact
that most of the apparel and accessory ads are generally in the print form and helps as
a cue to the “ Limited problem solving” as the decision making process being
involved.
In limited problem solving, consumers have already established the basic criteria for
evaluating the product category and the various brands in the category. However, they
have not fully established preferences concerning a select group of brands. Their
search for additional information is like “fine tuning”; they must gather additional
brand information to discriminate among the various brands.
The second and third most important source of information are Television Ads and
Internet. It gives us an idea as to people would still prefer an ad in newspaper to a
dangler on internet. It actually gives an immense opportunity to marketers and
advertisers to explore the field and make it more reliable and customer friendly so
that customers don’t get intimidated by it
8.5 c) What helps choose a shopping destination?
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value f
or money
avail
abilit
y of s
izes &
design
s
latest
fash
ion & tr
ends
shop am
bience
shop lo
cation
faciliti
es(park
ing,wash
rooms)
52 49 4635
28 23
Graph 8.11 Graph showing Factors affecting choices of shopping destination
Table 8.19 Table showing Weights of the above responses
Factors Weights attachedValue for money 0.34Availability of sizes and designs 0.32Latest fashion and trends 0.30Shop ambience 0.22Shop location 0.18Facilities 0.14
The top 3 factors are more or less on the same page with 0.34, 0.32 and 0.30 weights
attached to them.
“Value for money” tops the list as opposed to the popular belief that latest fashion
and trends drive one to a store. But with just 6 responses behind, latest fashion and
trends is also treated in a similar manner and thus leaves us with an inference that
only value for money won’t be enough and thus when all the three factors i.e. Value
for money and Latest trends and fashion and Availability of sizes and designs are
available it becomes the choice for shopping destination.
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8.5 d) Specifics of last purchase:
Table 8.20 Table showing last store purchase was in
Frequency Percent Valid Percent
Cumulative
Percent
Valid Central 23 15.3 19.7 19.7
Lifestyle 20 13.3 17.1 36.8
Shoppers stop 8 5.3 6.8 43.6
Brand factory 11 7.3 9.4 53.0
Maxx 8 5.3 6.8 59.8
Mega mart 6 4.0 5.1 65.0
Exclusive outlets 41 27.3 35.0 100.0
Total 117 78.0 100.0
Missing 0 33 22.0
Total 150 100.0
Inference:- From the above data we see that Central rates high on sales even though the case v
scale and the perceptual map are not in favor of it.
Lifestyle is a close second with 17% response as opposed to 19.7% of Central.
Shoppers stop shockingly does not boast of a high purchase rate as of here. With only
6.8% response it stands lower than that of Brand factory’s 9.4%.
Going by the segmentation into Lifestyle based and value based, we can say that
Central is on top of the list for Lifestyle segment and Brand factory for value based.
And obviously the other major response is for the exclusive outlets which has also
been the case in Perceptual map.
9.1 FINDINGS
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1. One of the most important findings in this study was that of the youth monthly potential
for apparels and accessories. The monthly potential for the same is Rs.1750 and it gives a
marketer a huge scope to build the promotional offers around it.
It also was cross checked with the help of details of last apparel or accessory purchase within
a month.
2. The second finding from the Thurstone Case V scale was that in the consumer order of
preference for various stores where does Central or Brand Factory stand.
Among 7 stores Central was at no.3 and Brand factory at no.6.
3. From the perceptual map we find that
STORES PERCEPTION1.
CENTRALNone
2.
LIFESTYLEBrand name/ image, Quality of merchandise, Feeling of
exclusivity, Trust factor, and Ads/ celebrity endorsements
3.
SHOPPERS STOP
Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements
4.
BRAND FACTORY
Availability of sizes & designs, Shop ambience and Shop location
5.
MEGA MARTWeakly Availability of sizes & designs, Shop ambience and Shop
location
6.
MAX None
7.
EXCLUSIVE OUTLETS
Sizes & designs, Shop ambience, Shop location Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust
factor, and Ads/ celebrity endorsements
Table 8.21 Table Showing various stores and their perception
4. From the psychographic analysis, we find that
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The common prevalent characteristic in Bangalore youth population is that of not being
trendy.
It also verifies the point where 66% of the respondents opined on not being trendy as it
doesn’t matter.
57% are not opinionated and thus we see the difference in perception and real purchases.
From Anova analysis,
We find that the purchases are dependent on the psychographic profiling of the shopper. In
other terms the psychographic profiling has a significant impact on purchases done by an
individual.
5. From Analyzing other aspects related to shopping behavior:-
Gifting behavior
The findings suggest that apparels, bags and watches are the popular choices among gifts
and are personal too. Also the amount for gifts is majorly within the range of Rs.3000.
Preferred source of communication
With print ads being the popular choice, it is unnecessary to point out that people still prefer
the traditional mode of communication. The second and third most important source of
information are Television Ads and Internet.
What factors affect choice of a shopping destination?
Value for money and Latest trends and fashion and Availability of sizes and designs are
available it becomes the choice for shopping destination.
9.2 RECOMMENDATION:-
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A. As we see from the Brand perception mapping, Central is not recognized by any of the
attributes. This can also be seen in Thurstone case V scale where in Lifestyle and Shoppers
stop are ahead of Central But if we go by the details of last purchase there is a specific
difference between the results. Same is the case with Brand Factory. In the Case V scale it
trails behind Westside and Max but in volumes of purchases it is ahead of the two. The
problem mainly lies in the communication from the side of Brand or in this case, the agency.
It can also be attributed to the fact that Central or Brand factory don’t engage in customer
centric ads but only product Centric.
A major recommendation would be to build the brand communication around some
specific attributes which will help connect with the consumers and also help them retain
it in long term. The agency can further probe into the Perceptual value attached to the brand
considering Brand satisfaction and then come up with an Integrated Marketing
Communication plan.
B. Another important recommendation can be trying to categorize or customize the ads based
on youth psychographics of the area. As we have already seen through ANOVA test that
youth psychographics has an effect on the sales thus Psychographics have to be given due
importance. For e.g. we see in Bangalore, majority of the youth are not opinionated. They
are neither materialistic nor are they therefore, brand conscious. So in order to capture this
particular youth segment, the agency has to think in terms of communication which will
make the youth more and more brand conscious and thus leverage on the fact that once
they are aware of importance that brands will attach to their persona, the sales of stores
like central and Brand factory will swell, with a better Brand Image and perception.
C. The third recommendation would be regarding the media of communication. Even though
Internet and Sms’s have had their share in the responses, the traditional media still wins over
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it. In case of an apparel and accessory store like that of Central or Lifestyle, we generally
don’t find Television commercial. They stick to the basics of newspapers and that of outdoor
hoardings. A television commercial will be more effective than the other media since Audio
visual medium is always one with a greater impact. In fact the agency has come up with a
television commercial for Central but it again is product centric. Thus, a Customer centric
TV commercial would help attach to the emotional part and also help build a stronger
brand perception and also help in brand recall, in terms required by the client.
D. In fact, another platform to advertise the brand should be through events. Though there
are a lot of in the mall events conducted very often, it doesn’t provide them an edge over
other shopping malls who also engage widely in such activities. The key here would be to
advertise via various youth clubs, associations and other exclusive groups. This would help
increase the penetration of the brand and also attach a feeling of exclusivity to it.
E. While advertising through print media, the concentration should shift from regular
newspaper to glossy magazines ranging across Fashion, Living and Travel. As a matter
of fact, magazines which are being provided exclusively during long hours of travel should
be one major market since there is a sense of relaxation in the way travelers they go through
the magazine and thus involves chances of in depth analysis of what they read, giving a
brand enough time capture the mind share of readers.
9.3 CONCLUSION:-
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Thus, to incorporate the findings in establishment of a new store by the client, we can safely
say that if Future Group is interested in opening a new store, Central is a safe bet. With
specifics of last purchase, we find that the sales volumes have been high compared to all
other stores. The only problem here is the consumer perception of brand and that can be
enhanced with use of various consumer centric media tools. Also that the drift from value
based segment to lifestyle segment occurs due to availability of sizes and designs and latest
fashion and trends, thus in order to upgrade the Value based stores like Brand Factory, its
important that the width and depth of collections is wide. As an agency, Lintas’s main aim in
this case would be to portray Brand Factory in the same light.
From the project we conclude that general youth in Bangalore (with an average income of
Rs.7000 per month and 25% disposable income for apparels and accessory monthly) do not
attach much importance to trends and fashion. They also consume fashion in a way that
hugely shows their bent towards the Lifestyle segment stores( Central, Lifestyle, Shoppers
Stop, Exclusive outlets) and not the Value based segment stores( Brand Factory, Mega
mart) .
PES DEPT OF MBA Page 79