ARESEARCH REPORT

ON

“ROLE OF ADVERTISING IN FMCG SECTOR”Submitted For the Fulfillment towards the Award the Degree In

Submitted in partial fulfillment of the requirements of

for the award of the degree of

PGDM(2012-14)

SUBMITTED TO SUBMITTED BY

Pro. Pravash Ghose Om Prakash Pal

ITS -IM GR. NOIDA Enrollment No.14026

DECLARATION

I (OM PRAKASH PAL) Here by declared that this research report entitle “ROLE OF

ADVERTISING IN FMCG SECTOR” has been completed based on actual study carried out

by me. I am presenting an authentic record of my. Our work carried out under the guidance of

“Pro.Pravesh Ghose”, I.T.S.INSTITUTE OF MANAGEMENT GREATER NOIDA, which is

required in the partial fulfillment for the degree of “PGDM”

This report is original and the information in this research report for the award of any

other degree or diploma in the best of my knowledge.

(OM PRAKASH PAL)

Roll. No. 14026

PREFACE

In spite of the theoretical gained through classroom study, a person is incomplete if not

subjected to practical exposure of real corporate world and may have to face hurdles, which will

be difficult to overcome without any first-hand experience of business.

In the context, research program has been designed to make the person aware of the

happenings of the real business world. The research entitled” ROLE OF ADVERTISING IN

FMCG SECTOR” of has been done at as a completion part of MBA programme.

I whole heatedly appreciated the harmonic atmosphere provided to me by the staff of

marketing. The data has collected at primary source through interviews with the customer &

discussions with the retailer of different -different sections. The data which used in this project

report are secondary data. These secondary data so obtained were mostly collected from the

management. It would not have been possible to complete my research report in a manner. I

reckoned & within such a limited time. For this nice obliged to them.

ACKNOWLEDGEMENT

A truly independent project is a contradiction in terms. Every project involves

contribution of many people. This project also ears the imprints of many people and it is a

pleasure to acknowledge all of them.

I take this opportunity to convey my heart filled thanks to my project guide “Sarita

Chaudhary” who has been a source of guidance and has rendered constant encouragement to

complete this project.

I extend my gratitude to ITS-INSTITUTE OF MANAGEMENT GREATER NOIDA authorities, classmates and friend who were helpful at every step.

Last but not the least would be falling short of duties if I don’t mention. My sincere

thanks to all the staff members for providing me with great help.

(OM PRAKASH PAL)

CONTENTS

Sub Topics Page No.1. Introduction 1-8

2. Executive Summary 9-11

3. Objective 12

4. Research methodology 13-14

5. Scope 15

6. Use and importance of study 16

7. DESCRIPTIVE WORK OF SUBTOPIC ON STUDY 17-39

a) Profile Of HUL

b) Profile Of P&G

c) Product Of HUL

d) Product Of P&G

8. Different Advertising Strategies 40-50

a) HLL: Advertising Strategies

b) P&G: Advertising Strategies

9. Data Analysis & Interpretation 51-60

10. Vision 61

11. Finding 62

12. Conclusions 63

13. Suggestion 64-65

14. Limitation 66-67

15. Bibliography 68

INTRODUCTION

ADVERTISING is any paid form of no personal presentation and promotion of ideas, goods or services by an identified sponsor.

Organizations handle their advertising in different ways. In small companies advertising is

handled by someone in the sales or marketing department, who works with an advertising

agency. A large company will often set up its own advertising department, whose manager

reports to the vice president of marketing. The advertising department’s job is to propose a

budget; develop advertising strategy; approve ads and campaigns and handle direct mail

advertising, dealer displays, and other forms of advertising. Most companies use an outside

agency to help create advertising campaign and to select and purchase media.

Advertising and promotions is bringing a service to the attention of potential and current

customers. Advertising and promotions are best carried out by implementing advertising and

promotions plan. The goals of the plan should depend very much on the overall goals and

strategies of the organization, and the results of the marketing analysis, including the positioning

statement.

The plan usually includes what target markets you want to reach, what features and benefits you

want to convey to them, how you will convey it to them (this is often called your advertising

campaign), who is responsible to carry the various activities in the plan and how much money is

budgeted for this effort. Successful advertising depends very much on knowing the preferred

methods and styles of communications of the target markets that you want to reach with your

ads. A media plan and calendar can be very useful, which specifies what advertising methods are

used and when. For each service, carefully consider: What target markets are you trying to reach

with your ads?

What would you like them to think and perceive about your products (this should be in terms of

benefits to them, not you)? What communications media do they see or prefer the most?

Consider TV, radio, newsletters, classifieds, displays/signs, posters, word of mouth, press

releases, direct mail, special events, brochures, neighborhood newsletters, etc.

What media is most practical for you to use in terms of access and affordability (the amount

spent on advertising is often based on the revenue expected from the product or service, that is,

the sales forecast)?

You can often find out a lot about your customers preferences just by conducting some basic

market research methods. The following closely related links might be useful in preparation for

your planning.

A word of warning'Advertising' is not easily defined, though many people have tried. Narrowly, it means clearly identifiable, paid for communications in the media, which aim to persuade, inform or sell. But the word is also used to cover a much broader range of activities from design to public relations -by what are often the same organizations, using similar skills.

The main playersAdvertising is not a single industry, but spreads untidily across at least three separate kinds of employer organization those who are

use it (the advertisers);make it (the advertising agencies); anddisplay it (the media).A number of other, more specialized organizations e.g. market research companies are also involved.

Different sorts of advertisingUsing its narrower definition, advertising takes two main forms

'Display', and 'classified'.

Display advertising embraces TV and radio commercials, posters, and large display spaces in the press, newspapers and magazines. (The press media also carry a huge volume of classified advertising small space commercial, recruitment and personal ads.)

Then there are direct mail and circulars advertisements using the letterbox as a medium.Direct response advertising (also called 'direct marketing', i.e. using the ad in place of a retail outlet) cuts across these divisions. It variously employs direct mail, send away coupons in the press, and phone numbers on radio and TV as the customer's means of contact. At the broadest, a whole gamut of other activities e.g. sales promotion, exhibitions, design and packaging, and even marketing itself are seen as 'advertising' too. The aggregation of such tools, along with media advertising, price and distribution, are often called the marketing mix.

Because all these activities require more or less the same skills (often using the same people), and serve similar objectives, this booklet aims to provide some information about all of them.However the word 'advertising' from here on means display advertising unless otherwise stated.

Advertising audiences

Finally, we also categories advertising in terms of those to whom it is directed its audience. Two most obviously contrasted audiences are consumers (the general public) and businesses.

Within these two big audience categories, advertisers use much more exact definitions of their desired audience (or 'target group'). These describe a consumer target in terms of, for instance, age, class, sex, region, behavior, and lifestyle. A business target can be defined by his or her company size, its type of activity, and the buyers' or decision takers' own particulars.

The Advertising Business: Structural Diagram

Advertising objectivesIf advertising takes varied forms, the objectives of individual advertisers are even more diverse.Very often they are commercial marketing objectives for instance

to enlarge the profitable sales of someone's goods or services. But to say such ads simply aim to 'sell the product' is an oversimplification. They may be to slow down a brand's gradual decline, or simply to get the public to reappraise its opinion of a particular company or organization, or just to provide information.

Moreover noncommercial advertiser’s government departments, charities, political parties and trade unions will have entirely different objectives from, say, a cat food or computer manufacturer. Advertising objectives do not lend themselves to generalization.

The best general way to look at advertising systematically is as a useful but expensive means (and not the only one available) to achieve various ends. Incidentally, unless you know the actual

objectives and results of a particular advertisement you've seen, it's unwise to judge it as 'good' or 'bad'. The only criterion is whether the value of its effect was worth, or more than worth, its cost.

Briefly, once an advertiser (the client) identifies needs for which advertising is the best solution,

he briefs independent specialists (typically an advertising agency) to plan the details and create

the advertising.

When approved, this is displayed in the agreed medium (for instance television) at an agreed

cost. Research specialists commonly test the advertising beforehand and/or try to measure its

effects afterwards.

An advertising programme of this kind is generally called a campaign, and usually includes a

series of advertisements, in a number of broadcast channels or printed media. The campaign is

usually based on statistical calculations of what percentage of the target group will see it

(penetration) how many times on average (frequency). Other variables are how skillfully the

media have been bought, the size of the commission or fees paid to the advertising agency, and

the cost of producing the ads themselves. At first reading this will sound rather imprecise and

complicated. But with experience, it is possible to say fairly accurately what a particular

campaign is likely to cost or, conversely.

How much advertising a given budget and brief will buy.

Costs are usually reckoned on the basis of 'CPT' the average Cost Per Thousand people

Reached in the target group. This of course varies according to the size of the ad, the rates

Charged by the individual media, and whether a printed ad is black and white, or full color, etc.

Nowadays virtually every organization in the UK uses advertising in one way or another,

because they find it a practical and cost effective way of achieving some of their aims. The

operative words are 'cost effective'. If the objectives are commercial, one test would be whether,

in the long run, the company gets a better profit result overall from a particular weight of

advertising than from, say, a heavier or lighter weight, or none.

If the objectives aren't commercial but, for instance, to communicate information, the questions

are

(a) Whether the effects of advertising are worth the cost, and

(b) Whether advertising is the most inexpensive way of creating these effects.

It is difficult to measure or demonstrate exact cost benefits from advertising and certainly to

forecast these in advance. Apart from sales statistics, the most common tools are various

specialised forms of market research, and econometric modeling.

The reason advertising so irritatingly eludes logical or scientific analysis is that three variables

are involved in its effects two of them not easily measurable. These are the weight of

advertising, the effectiveness of the creative idea and execution, and the latent potential of the

situation to be changed by advertising or anything else anyway.

Like it or hate it, advertising is generally recognized to have several practical benefits for society

at large.

More media

One of these is that it largely finances the media. Without advertising revenue, the UK would

have no commercial TV or radio, far fewer and much more expensive newspapers and

magazines, and of course no posters. Cinema tickets would be more expensive.

In this regard, advertising's effect is vastly to enrich the variety and numbers of media available,

and it is an authentic engine of freedom of speech. It also claims this freedom itself, within the

law. (In the UK the principle of 'editorial independence' means that advertisers pay for the media,

but cannot much influence the media's editorial content, whether excellent or deplorable.

Broadcasters and editors say what they want to say: the advertisers are simply allowed to buy a

proportion of discrete spaces to say what they want to say.)

Choice

Advertising, because it is 'competitive', is an agent to improve the range of products available,

the speed with which new ones can be introduced, and even the ways in which we shop.

Prices

Finally, despite its cost (quite often as much as 5 per cent of total product costs) it has the

Tendency to reduce prices, because of the efficiency it creates through economies of scale, and

the nature of competition.

Advertising is often criticized, the three most common criticisms being:

That it is wasteful and increases prices (ie without its expense, the goods advertised

would otherwise be cheaper);

That it is vulgar and tasteless; and

That it exploits consumers and creates unnecessary needs.

Its defenders point out that advertising seems to reduce rather than inflate prices, especially in

competitive markets; taste is an individual matter, and advertisements are often more attractive,

tasteful and entertaining than the programmes or printed text that adjoin them; and ads reflect

public needs rather than creating them. Moreover consumers are not mugs.

For its part, the general public tend increasingly to like and approve of advertising, seeing it as at

worst harmless and, at best, entertaining and helpful.

You will have to make up your own mind about this question, and if you strongly share the

criticisms, it may be as well not to work in a business of which you disapprove.

However as a final thought, most people who work in advertising come to acquire a healthy

respect for the public's good judgment.

Advertising standards (for instance, to prevent misleading campaigns) are generally policed in

the UK by vigorously enforced voluntary codes of practice. These are underpinned where

necessary by laws and statute.

Despite its glitzy reputation, by no means all advertising work is glamorous or highly paid. On

the other hand, it offers an extraordinary wide range of interesting different jobs and career

paths.

And it's one of the recognized jumping off points for posts in top management later on.

It's also quite a small business in terms of numbers. Because of the small numbers it employs,

only a few of the many people who want to work in advertising succeed in finding jobs in it.

Also, the 'wastage rate' afterwards is rather high in some areas.

For gifted and determined people, on the other hand, it can be a particularly satisfying career

which also offers constant opportunities for advancement, or a change of direction.

Just about all advertising jobs demand an interest in people. This is more or less the only

Common denominator. If you don't like people very much, advertising won't be your cup of tea.

The other qualifications depend on the specific job, which can call for very different interests,

aptitudes and temperaments.

This section outlines the main kinds of work in which advertising are involved in one way or

another. They may be considered both horizontally, in terms of the wide spread of different

skills and aptitudes which are required, and vertically, in terms of upward career paths.

An important point to notice is that in many jobs, advertising work is only part of other

Responsibilities. Sometimes it's only a small part, albeit an interesting and rewarding one.

This is worth bearing in mind in career planning: there are many options for moving sideways as

well as upwards eg between an ad agency and a client, or perhaps in, out of, or between the

media. This is partly because similar skills and knowledge are in demand in all three sectors,

partly because hands-on experience in one field is often thought valuable by an employer in

another one.

Here are the main categories of work available:

Creative

Planning

Statistics, Research and Analysis

'Buying and Selling'

Sales Promotion

Management

Administration

FMCG is one of the most mature markets and, as younger, more dynamic sectors such as

leisure, entertainment and travel come to the fore, it has begun to lose share of private

expenditure. FMCG manufacturers and retailers therefore need to generate enthusiasm for their

offerings so that they can compete on an even playing field for 'share of wallet'.

“FMCG are losing ‘share of wallet’. ECR has helped to improve profitability, but aggressive

revenue initiatives are now also needed. If FMCG companies can make

Consumers more enthusiastic about their products, the sector could be revolutionized”

EXECUTIVE SUMMARY

The report involved analyzing and evaluating advertising strategies for various companies:

Advertising:

“DOING BUSINESS WITHOUT ADVERTISING IS LIKE WINKING AT A GIRL IN

THE DARK; YOU KNOW WHAT YOU ARE DOING, BUT NOBODY ARE DOES”

According to the American Marketing Association, Chicago adverting is “any paid

form of non personal presentation of ideas, goods and services by an identified

sponsor”.

Advertising is a form of persuasive communication with the public.The object Advertising is:-

(1) Inform customers of the goods and services.

(2) Brings out the product use P’s

(3) Calls for or invites people to buy the product

(4) Mass communication

(5) Attract attention

(6) Lousing interest

(7) Building desire

(8) Obtaining action.

How much advertising a given budget and brief will buy.

Costs are usually reckoned on the basis of 'CPT' the average Cost Per Thousand people

reached in the target group. This of course varies according to the size of the ad, the rates

charged by the individual media, and whether a printed ad is black and white, or full color, etc.

Nowadays virtually every organization in the UK uses advertising in one way or another,

because they find it a practical and cost effective way of achieving some of their aims. The

operative words are 'cost effective'. If the objectives are commercial, one test would be whether,

in the long run, the company gets a better profit result overall from a particular weight of

advertising than from, say, a heavier or lighter weight, or none.

If the objectives aren't commercial but, for instance, to communicate information, the questions

are

(a) Whether the effects of advertising are worth the cost, and

(b) Whether advertising is the most inexpensive way of creating these effects.

It is difficult to measure or demonstrate exact cost benefits from advertising and certainly to

forecast these in advance. Apart from sales statistics, the most common tools are various

specialised forms of market research, and econometric modeling.

The reason advertising so irritatingly eludes logical or scientific analysis is that three variables

are involved in its effects two of them not easily measurable. These are the weight of

advertising, the effectiveness of the creative idea and execution, and the latent potential of the

situation to be changed by advertising or anything else anyway.

Like it or hate it, advertising is generally recognized to have several practical benefits for society

at large.

More media

One of these is that it largely finances the media. Without advertising revenue, the UK would

have no commercial TV or radio, far fewer and much more expensive newspapers and

magazines, and of course no posters. Cinema tickets would be more expensive.

In this regard, advertising's effect is vastly to enrich the variety and numbers of media available,

and it is an authentic engine of freedom of speech. It also claims this freedom itself, within the

law. (In the UK the principle of 'editorial independence' means that advertisers pay for the media,

but cannot much influence the media's editorial content, whether excellent or deplorable.

Broadcasters and editors say what they want to say: the advertisers are simply allowed to buy a

proportion of discrete spaces to say what they want to say.)

Choice

Advertising, because it is 'competitive', is an agent to improve the range of products available,

the speed with which new ones can be introduced, and even the ways in which we shop.

Prices

Finally, despite its cost (quite often as much as 5 per cent of total product costs) it has the

Tendency to reduce prices, because of the efficiency it creates through economies of scale, and

the nature of competition.

Advertising is often criticized, the three most common criticisms being:

That it is wasteful and increases prices (i.e. without its expense, the goods advertised

would otherwise be cheaper);

That it is vulgar and tasteless; and

That it exploits consumers and creates unnecessary needs.

OBJECTIVES of RESEARCH:

A study of media strategy and fact as they related to an advertising campaign explore media

analysis selection and advertising campaign.

To show the benefits of an advertising.

To identify the problem in national advertising.

To describe the step involved in designing advertising.

To creation of awareness and interest of the new product by advertising.

RESEARCH METHODOLOGY: -

Research methodology is simple framework or plan for the study that is as guide

in collection and analyzing the data. It is the blue print that is followed in completes the study.

Thus, good research methodology ensures the completion of project efficiency and affectivity.

Since there are many aspect of research methodology, the line of action has to be chosen from

the variety of alternatives, to choose the suitable method through the assessment from various

alternatives.

Research methodology gives the researcher an opportunity to put forward his

argument for having opted for certain alternatives and also at the same time he can justify his

ruling out some other possibility likes. Why research study has been undertaken, how the

research problem has been formulated what data has been collected, what particular technique if

analyzing the data has been used and lot of similar type question are usually answered when we

talk of research problem in study.

Keeping in view the above stated objectives the following methodology was adopted:

The Marketing Research Process

Define the problem and Research Objectives: - The first and main step of any research is to

define the relevant problems or objective for which the researcher wants to do research.

Develop the research plan: - To makes the plan for overall research as how, when, where and

from whom researcher will collect the data.

Collect the information: - The information can be collected by primary data or secondary data,

or by the combination of both methods.

METHODS OF DATA COLLECTION:-

PRIMARY DATA

Market Survey Personal Interview

SECONDARY DATA

Magazines Internet Business Journal

Analyze the information: - After collecting the data the next step is to analyze the information.

Present the findings: - To make a summary on the basis of analyzing the collect data and find

out the situation .

Make the decision: - The last step is to take a decision on the basis of finding that what action

should be regarding the findings.

INSTRUMENT TO BE USED:

INTERNET MAGAZINES JOURNALS NEWS PAPERS

SCOPE

“Consumer enthusiasm can best be generated if companies go beyond simply creating

products for specific groups of potential customers and start engineering whole

consumer trends and fashions.”

“FMCG are losing ‘share of wallet’. ECR has helped to improve profitability, but

aggressive revenue initiatives are now also needed. If FMCG companies can make

consumers more enthusiastic about their products, the sector could be revolutionized”.

"The people of Asia are realizing that a brand is not just putting a name on a product, but

that they've got to invest in it. They've got to look at advertising and promotion as an

investment rather than as expenditure. That awareness is increasing. And for us in the

consulting business, there lies tremendous opportunity.”

GEOGRAPHICAL AREA : NCR

TIME DURATION : 30 days

CORRESPONDENT : Advertising Manager, Retailers

USE AND IMPORTANCE OF STUDY

It gives the company immediate access to strong brands, manufacturing facilities and logistics and also an established customer base of retailers.

The acquisition will also enhance its skills in marketing and management of modern trade channels, which is relevant in a changing Indian retail environment.

A review of the methodologies being used by FMCG operatives to sustain consumer enthusiasm about their products and services and to create sustainable, high revenue positioning.

Opportunity to reach a large audience. You will have up-to-the minute statistics reports and an advertising management. You can choose your campaign duration, from one week to one year. Advertise to a motivated audience of new parents, voyeurs and teens.

DESCRIPTIVE WORK OF SUBTOPIC ON STUDY

ADVERTISING

'Advertising' is not easily defined, though many people have tried. Narrowly, it means clearly identifiable, paid for communications in the media, which aim to persuade, inform or sell. But the word is also used to cover a much broader range of activities from design to public relations -by what are often the same organizations, using similar skills.

The main playersAdvertising is not a single industry, but spreads untidily across at least three separate kinds of employer organization those who are

use it (the advertisers);make it (the advertising agencies); anddisplay it (the media).A number of other, more specialized organizations eg market research companies are also involved.

Different sorts of advertisingUsing its narrower definition, advertising takes two main forms

'display', and 'classified'.

Display advertising embraces TV and radio commercials, posters, and large display spaces in the press , newspapers and magazines. (The press media also carry a huge volume of classified advertising small space commercial, recruitment and personal ads.)

Then there are direct mail and circulars advertisements using the letterbox as a medium.Direct response advertising (also called 'direct marketing', ie using the ad in place of a retail outlet) cuts across these divisions. It variously employs direct mail, send away coupons in the press, and phone numbers on radio and TV as the customer's means of contact. At the broadest, a whole gamut of other activities eg sales promotion, exhibitions, design and packaging, and even marketing itself are seen as 'advertising' too. The aggregation of such tools, along with media advertising, price and distribution, are often called the marketing mix.

Because all these activities require more or less the same skills (often using the same people), and serve similar objectives, this booklet aims to provide some information about all of them.However the word 'advertising' from here on means display advertising unless otherwise stated.

Advertising audiences

Finally, we also categories advertising in terms of those to whom it is directed its audience. Two most obviously contrasted audiences are consumers (the general public) and businesses.Within these two big audience categories, advertisers use much more exact definitions of their desired audience (or 'target group'). These describe a consumer target in terms of, for instance, age, class, sex, region, behavior, and lifestyle. A business target can be defined by his or her company size, its type of activity, and the buyers' or decision takers' own particulars.The Advertising Business: Structural Diagram

Advertising objectivesIf advertising takes varied forms, the objectives of individual advertisers are even more diverse.Very often they are commercial marketing objectives for instance

to enlarge the profitable sales of someone's goods or services. But to say such ads simply aim to 'sell the product' is an oversimplification. They may be to slow down a brand's gradual decline, or simply to get the public to reappraise its opinion of a particular company or organization, or just to provide information.

Moreover noncommercial advertiser’s government departments, charities, political parties and trade unions will have entirely different objectives from, say, a cat food or computer manufacturer. Advertising objectives do not lend themselves to generalization.

The best general way to look at advertising systematically is as a useful but expensive means (and not the only one available) to achieve various ends. Incidentally, unless you know the actual objectives and results of a particular advertisement you've seen, it's unwise to judge it as 'good' or 'bad'. The only criterion is whether the value of its effect was worth, or more than worth, its cost.

Briefly, once an advertiser (the client) identifies needs for which advertising is the best solution,

he briefs independent specialists (typically an advertising agency) to plan the details and create

the advertising.

When approved, this is displayed in the agreed medium (for instance television) at an agreed

cost. Research specialists commonly test the advertising beforehand and/or try to measure its

effects afterwards.

An advertising programme of this kind is generally called a campaign, and usually includes a

series of advertisements, in a number of broadcast channels or printed media. The campaign is

usually based on statistical calculations of what percentage of the target group will see it

(penetration) how many times on average (frequency). Other variables are how skillfully the

media have been bought, the size of the commission or fees paid to the advertising agency, and

the cost of producing the ads themselves. At first reading this will sound rather imprecise and

complicated. But with experience, it is possible to say fairly accurately what a particular

campaign is likely to cost or, conversely.

How much advertising a given budget and brief will buy.

Costs are usually reckoned on the basis of 'CPT' the average Cost Per Thousand peopleReached in the target group. This of course varies according to the size of the ad, the ratesCharged by the individual media, and whether a printed ad is black and white, or full color, etc.

Nowadays virtually every organization in the UK uses advertising in one way or another, because they find it a practical and cost effective way of achieving some of their aims. The operative words are 'cost effective'. If the objectives are commercial, one test would be whether, in the long run, the company gets a better profit result overall from a particular weight of advertising than from, say, a heavier or lighter weight, or none.

If the objectives aren't commercial but, for instance, to communicate information, the questions are (a) Whether the effects of advertising are worth the cost, and (b) Whether advertising is the most inexpensive way of creating these effects.

It is difficult to measure or demonstrate exact cost benefits from advertising and certainly to forecast these in advance. Apart from sales statistics, the most common tools are various specialised forms of market research, and econometric modeling.

The reason advertising so irritatingly eludes logical or scientific analysis is that three variables are involved in its effects two of them not easily measurable. These are the weight of advertising, the effectiveness of the creative idea and execution, and the latent potential of the situation to be changed by advertising or anything else anyway.Like it or hate it, advertising is generally recognized to have several practical benefits for society at large.

More mediaOne of these is that it largely finances the media. Without advertising revenue, the UK would have no commercial TV or radio, far fewer and much more expensive newspapers and magazines, and of course no posters. Cinema tickets would be more expensive.In this regard, advertising's effect is vastly to enrich the variety and numbers of media available, and it is an authentic engine of freedom of speech. It also claims this freedom itself, within the law.(In the UK the principle of 'editorial independence' means that advertisers pay for the media, but cannot much influence the media's editorial content, whether excellent or deplorable. Broadcasters and editors say what they want to say: the advertisers are simply allowed to buy a proportion of discrete spaces to say what they want to say.)

ChoiceAdvertising, because it is 'competitive', is an agent to improve the range of products available, the speed with which new ones can be introduced, and even the ways in which we shop.

PricesFinally, despite its cost (quite often as much as 5 per cent of total product costs) it has theTendency to reduce prices, because of the efficiency it creates through economies of scale, and the nature of competition.Advertising is often criticized, the three most common criticisms being:

That it is wasteful and increases prices (ie without its expense, the goods advertised would otherwise be cheaper);

That it is vulgar and tasteless; and

That it exploits consumers and creates unnecessary needs.

Its defenders point out that advertising seems to reduce rather than inflate prices, especially in competitive markets; taste is an individual matter, and advertisements are often more attractive, tasteful and entertaining than the programmes or printed text that adjoin them; and ads reflect public needs rather than creating them. Moreover consumers are not mugs.For its part, the general public tends increasingly to like and approve of advertising, seeing it as at worst harmless and, at best, entertaining and helpful.You will have to make up your own mind about this question, and if you strongly share the criticisms, it may be as well not to work in a business of which you disapprove.

However as a final thought, most people who work in advertising come to acquire a healthy respect for the public's good judgment.

Advertising standards (for instance, to prevent misleading campaigns) are generally policed in the UK by vigorously enforced voluntary codes of practice. These are underpinned where necessary by laws and statute.Despite its glitzy reputation, by no means all advertising work is glamorous or highly paid. On the other hand, it offers an extraordinary wide range of interesting different jobs and career paths.And it's one of the recognized jumping off points for posts in top management later on.It's also quite a small business in terms of numbers. Because of the small numbers it employs, only a few of the many people who want to work in advertising succeed in finding jobs in it. Also, the 'wastage rate' afterwards is rather high in some areas.For gifted and determined people, on the other hand, it can be a particularly satisfying career which also offers constant opportunities for advancement, or a change of direction.Just about all advertising jobs demand an interest in people. This is more or less the onlyCommon denominator. If you don't like people very much, advertising won't be your cup of tea.The other qualifications depend on the specific job, which can call for very different interests, aptitudes and temperaments. This section outlines the main kinds of work in which advertising are involved in one way or another. They may be considered both horizontally, in terms of the wide spread of different skills and aptitudes which are required, and vertically, in terms of upward career paths.An important point to notice is that in many jobs, advertising work is only part of otherResponsibilities. Sometimes it's only a small part, albeit an interesting and rewarding one.This is worth bearing in mind in career planning: there are many options for moving sideways as well as upwards eg between an ad agency and a client, or perhaps in, out of, or between the media. This is partly because similar skills and knowledge are in demand in all three sectors, partly because hands-on experience in one field is often thought valuable by an employer in another one.

Here are the main categories of work available:CreativePlanningStatistics, Research and Analysis'Buying and Selling'Sales PromotionManagementAdministration

ADVERTISING PROCESS:

The Frozen Products Division of HUL follows the advertising procedures laid down

by the company. The advertising agency also adheres to the company norms. A clear

sequence of activities is followed. This has been outlined below:

1. Usage and Attitude Study – Before a new product or advertising idea is

involved, a complete quantitative research study is carried out in order to fully

understand the needs, wants, preferences, purchases and consumption habits of

the target segment. The results of the study typically point out any

opportunities that can be exploited in terms of unsatisfied consumer needs. On

the basis of the above results, a new product or advertising concept is evolved.

2. Concept Testing –Once the new concept has been thought of, it goes into

qualitative research. This qualitative research primarily focuses on testing the

acceptance of the concept by the target segment as well as the evolving of an

appropriate positioning plank. The positioning could be attribute, cost or

benefit based. Based on consumer feedback, an appropriate positioning

platform is determined.

3. Agency Brief –Once the concept testing is successfully complete, the Brand

Manager prepares a brand positioning statement. This is a description of the

brand and includes the product description, likely brand name, category, name,

variants (if any) and key brand benefits (sensory, functional and emotional).

An agency brief is then prepared for the Agency, which includes the BPS as

well as answers to the following questions:

Why do we want new advertising?

Whom are we talking to?

What is the benefit to be perceived by the consumer?

4. Animating Testing: The storyboard is developed by the agency. After this has

been approved by the client, the anima tics go into testing. These are

advertisements made from frame-by-frame shots of the storyboard with

appropriate music/dialogue/voice over. This is more economical when

compared to shooting the actual advertisement. The anima tics are shown to

the sample audience for feedback and frame-by-frame analysis. The name,

product design, ambience, music and overall purchase intention after viewing

the advertisement are measured. Brand personification may be included. If the

results are positive, the advertising concept is frozen.

5. Media Brief – This is given to the media planner and is similar to the agency brief.

However, it includes media vehicles desired required awareness, frequency (number

of exposures) and reach (% target segment who should view it).

6. Post Launch Dipstick –After the advertisement is released, a post-launch study

may be conducted in order to gauge advertising effectiveness. This is typically

conducted among users as well as non-users. It measures advertising recall,

awareness of the advertisement and the brand, intention to try after viewing the

advertisement overall purchase intention, etc.

In my experience companies advertise because it has been the traditional thing to do. Certainly it

has delivered the most compelling results, but maybe it's because that has been the primary

medium of communication of advertising agencies. I truly believe that companies would be well

served by looking at all of the media communications available to them and then make the

decisions that will give the best ROI for the long and short term. Question everything! Is the

media able to reach your specific target audience and get a transfer of trust that moves them to

become your customers? Over the years I have used "Balloon grams" through traditional

advertising and everything in between to reach consumers of client's products. In conclusion you

must look at the long term growth but at the same time get traffic to the store this week, so it is a

balance of effective communications across a variety of media that will enable you to do just

that. The big key is Integrated Marketing Communications and a consistent message delivered

across all media.

There are several possible objectives for advertising, and different companies have different reasons for advertising the way they do.

When you have an awareness problem, advertising is a way to increase awareness.

When you have an alternate use that people may not know about, advertising is a way to tell them about it.

When you have a product improvement, advertising is a way to get trier-rejectors to think again about their decision. And, of course, advertising is a classic way to create, explain, and reinforce a brand's positioning.

The objectives are all different, and the metrics you'll use need to recognize your particular

objectives. Some companies see advertising as a long-term investment. They expect advertising

to sustain a brand over a long period of time.

They'll want to track consumer attitudes, brand image, and (perhaps) unaided awareness.

Other companies want to create quick awareness of a new brand or a product change. They'll

want to track advertising awareness and brand awareness (aided and unaided).

Still other companies haven't even thought about their objectives. They just like to see their

name all over the place. They don't need to spend any money measuring effectiveness. They're

advertising to the board room anyway, not the consuming public.

Net, like so many other things, it depends. There's no one-answer fits all.

Magazines and newspapers are an important part of our lives. For many consumers, newspapers

are their primary source of product information. They would not think of going shopping without

checking to see who is having a sale or clipping coupons from the weekly food section or

Sunday inserts. Many people read a number of different magazines each week or month to

become better informed or simply entertained. Individuals employed in various occupations rely

on business magazines to keep them current about trends and developments in their industries as

well as in business in general.

While most of us are very involved with the print media, it is important to keep in mind that few

newspapers or magazines could survive without the support of advertising revenue. Consumer

magazines generate an average of 47 percent of their revenues from advertising; business

publications receive nearly 73 percent. Newspapers generate 70 percent of their total revenue

from advertising. In many cities, the number of daily newspapers has declined because they

could not attract enough advertising revenue to support their operations. The print media must be

able to attract large numbers of readers or a very specialized audience to be of interest to

advertisers. The role of magazines and newspapers in the advertiser's media plan differs from

that of the broadcast media because they allow the presentation of detailed information that can

be processed at the reader's own pace. The print media are not intrusive like radio and TV, and

they generally require some effort on the part of the reader for the advertising message to have

an impact. For this reason, newspapers and magazines are often referred to as high-involvement

media’s Over 80 percent of U.S. households subscribe to or purchase magazines, while the

average household buys six different magazines each year.

Newspapers are received in nearly two-thirds of American households daily. Most magazines,

however, reach a very selective audience. Like radio, they can be valuable in reaching specific

types of consumers and market segments. While both magazines and newspapers are print

media, the advantages and disadvantages of the two are quite different, as are the types of

advertising each attracts. This chapter focuses on these two major forms of print media. It

examines the specific advantages and limitations of each, along with factors that are important in

determining when and how to use newspapers and magazines in the media plan.

Magazines are the most specialized of all advertising media. While some magazines-such as

Reader's Digest, Time, and TV Guide-are general mass-appeal publications, most are targeted to

a very specific audience. There is a magazine designed to appeal to nearly every type of

consumer in terms of demographics, lifestyle, activities, interests, or fascination. Numerous

magazines are targeted toward specific businesses and industries as well as toward individuals

engaged in various professions (Exhibit 12-1).

Over the past several decades, magazines have grown rapidly to serve

the wide variety makes magazines an appealing medium to a vast number of advertisers.

Although TV accounts for the largest dollar amount of advertising expenditures among national

advertisers, more companies advertise in magazines than in any other medium. Users of

magazines range from large consumer products companies such as Procter & Gamble and

General Motors, which spend over $400 million a year on magazine advertising, to a small

company advertising scuba equipment in Skin Diver magazine.

Magazines and newspapers have been advertising media for more than two centuries; for many

years, they were the only major media available to advertisers. With the growth of the broadcast

media, particularly television, reading habits declined. More consumers turned to TV viewing

not only as their primary source of entertainment but also for news and information. But despite

the competition from the broadcast media, newspapers and magazines have remained important

media vehicles to both consumers and advertisers.

Thousands of magazines are published in the United States and throughout the world. They

appeal to nearly every specific consumer interest and lifestyle, as well as to thousands of

businesses and occupations. By becoming a highly specialized medium that reaches specific

target audiences, the magazine industry has prospered. Newspapers are still the primary

advertising medium in terms of both ad revenue and number of advertisers. Newspapers are

particularly important as a local advertising medium for hundreds of thousands of retail

businesses and are often used by large national advertisers as well.

Companies advertise to get new customers, keep existing ones, and to confirm to recent

customers they did the right thing.

They advertise to tell shareholders they are doing something active to keep the company

growing.

Competitive advantage Advertising during a sluggish economy clearly creates a competitive advantage, according to the

study, with a majority of executives agreeing that seeing a company advertise during slower

times makes them feel more positive about the company’s commitment to its products and

services. But perhaps most important is staying at the top of buyers’ minds when purchase

decisions are made.

“For advertisers interested in maximum profit from their investment in b-to-b media, these

research results indicate that advertising frequently and capitalizing on the synergistic effect of

print, Web sites and trade shows is a sure path to increasing awareness, interest and purchase,”

said the study authors.

Add to that the fact that there have been dramatic increases in the time executives spend visiting

b-to-b Web sites over the past three years and online advertising is a winning strategy. Moreover,

the study findings are consistent across industry sectors, making results relevant regardless of

business category.

Long-term investing

While the Yankelovich/Harris study offers compelling data to support the benefit of advertising

especially in slower times, other business gurus also support the theory.

“Advertising in a down economy is even more important than advertising during the good

times,” says Joyce Goya, president of the Herman Group, a firm of strategic business futurists in

Greensboro, N.C. “That’s when you can build market share. That’s when you have less

competition for share of mind. While others are in a cocoon, hibernating until things blow over,

it’s a great time to invest in your business.”

Goya says sign industry suppliers need to establish themselves as the brand of choice and halting

advertising during tough times is counteractive to that goal.

The bottom line is clear: If a company is not communicating with customers when they enter the

market, then that company will not be considered in the buying decision. That fundamental truth

does not change, regardless of the economy.

While many companies readily understand the value of short-term advertising generating new

sales, generating repeat business from existing customers and generating new leads that turn into

future sales it can be more difficult to comprehend the long-term value. Think of a snowball

rolling down a mountain consistent advertising has a cumulative effect. The more familiar

buyers are with your brand, the more likely they are to purchase the brand.

Cross media approach

A cross media approach is the best approach, according to experts, because it allows your

company to stay in front of customers consistently.

The Yankelovich/Harris study shows executives value magazines, Web sites and trade shows for

different reasons. B-to-b magazines are favorably evaluated with respect to being “highly

credible sources” and “providing information you can trust.” B-to-b Web sites rate high for being

“primary sources of research” and providing “access to the latest information.” And b-to-b trade

shows are highly regarded for enabling “interaction with industry peers.”

“To stay on top of developments in your field, it’s important to seek information from multiple

media sources, like business-to-business magazines, Web sites and trade shows,” said the study

authors.

Double-Click, leading provider of marketing tools for advertisers, direct marketers and Web

publishers, recently conducted a cross media study that compared the relative audience reach of

Internet sites, network TV programs and consumer magazines.

"Earlier this year we talked to over 200 marketers who told us their top reason for not spending

more online was that their customer was not online," says Susan Sachatello, chief marketing

officer, Double-Click. "In comparing these mediums side-by-side using industry standard

metrics, this study demonstrates that both in aggregate and in key target groups, the Internet is in

fact a mainstream mass-market medium and that marketers should be going online to reach their

customers." So what works best on the Web? Experts say banner ads are the most effective tool

because they build the brand and generate leads. And since online advertising is less expensive

than traditional print media, TV and direct mail, the online channel makes more sense in a down

economy.

Rich media rules

Double Click’s Ad Serving Trend Report gives deeper insights about what works on the Web.

Double Click’s ad serving data reveals a major variance in the click-through rates of rich media

ads (2.4 percent), which is six times higher than non-rich media ads (0.4 percent).

Rich media uses a combination of voice, interactive video, streaming video and data sharing. The

ads, then, are more interactive than static banners.

Double-Clicks also found that Flash increased branding metrics by 71 percent for three different-

sized ads measured, demonstrating the branding power of richer media.

"While click-through rate is only one method of assessing online advertising effectiveness, its

stability over the past several months reflects the mainstream adoption of online advertising at

levels consistent with traditional direct response rates," says Doug Copper, vice president and

general manager of advertiser solutions at Double-Clicks. "We are very encouraged by the

growth of rich media usage and the significantly higher click-through rates that these formats

have been generating, which together reflect the increasing sophistication and performance of the

online advertising medium."

When is the best time to advertise?

Regardless of the medium, the Yankelovich/Harris concludes that advertising during all

economic times is critical to the future success of companies.

Ninety-nine percent of those surveyed said it is important to keep abreast of new products and

services during tough times and 97 percent said it is important to continue to invest in these

products and services to remain competitive in the future.

The study stresses that executives are not going to let their guards down even during slower

economic times they must stay current on what is new in the industry and must position their

organizations for the future. Advertisers, then, must not let their guards down, either, say experts.

PROFILE OF HUL(HINDUSTAN UNILEVER):-

The company was incorporated on 17th October, 1933 under the name of Lever Brothers (India)

Pvt. Ltd. (LBIL). It set up its manufacturing units in Bombay and Calcutta an associated

company viz., Hindustan Vanaspati Mfg. Co. Pvt. Ltd. (HVM), was earlier incorporated on 27th

November 1931 which set up a vanaspati factory in Bombay. Both LBILK and HVM were

wholly owned subsidiaries of Unilever Ltd., London, U.K. HVM later acquired three more

vanaspati factories at Shamnagar (West Bengal), Trichanapalli (TamilNadu) and Ghaziabad

(U.P) In order to market the toilet preparations manufactured by LBIL or imported from

Unilever companies, a marketing company under the name United Traders Pvt. Ltd. (UTL) was

incorporated on 11th may, 1935 as a wholly owned subsidiary of LBIL. In 1944, the

management of LBIL and HVM was integrated. In November 1956, HVM and two small

associated companies’ viz. William Goss age & Sons (India) Pvt. Ltd and Joseph Cross field &

Sons (India) Pvt. Ltd., which were wholly owned subsidiaries of Unilever Ltd., were

amalgamated with LBIL and the name was changed to Hindustan Lever Ltd. From 23rd October,

1956 activities of UTL were taken over by its holding. Company LBIL. With the amalgamation

of business under one company, Indian capital was introduced in this integrated business in

1956. HUL has been growing very rapidly, especially in 1996 the growth was 88.6% HUL

became the second private company in India after Reliance Industries to cross the Rs 10000 core

mark in 1998. At present it’s valued at Rs. 11764.31 crore.1 its rapid growth has given HUL

place in the top 5companies regularly in annual BT-500 survey. This huge success has come due

to:-

Merger with Ponds India Limited

Launch of 40 new products

Doubling of rural distribution network from 50,000 to one lakh villages

Launch of a marketing scheme, Operation Bharat, across 22 states.

It can be said beyond any doubt that HUL is an undisputed leader in FMCG products

in urban as well as rural area. HUL caters to 850 million people in India which

becomes 85% approx. of the total population. Hence the study of HUL can give us a

wide knowledge in the fields like successful implementations of marketing strategy in

urban and rural India cutting across so many cultural, social, regional, religious,

linguistic barriers.

P&G ( Procter & Gamble ): Profile

Three billion times a day, P&G brands touch the lives of people around the world. Our corporate tradition is rooted in the principles of personal integrity, respect for the individual, and doing what's right for the long-term.

Our core values and principles guide us in everything we do. Learn more about what drives our purpose of providing products and services of superior quality and value to the world’s consumers.

The P&G community consists of over 135,000 employees working in over 80 countries worldwide. What began as a small, family-operated soap and Candle Company now provides products and services of superior quality and value to consumers in 140 countries.

Spotlight On: Our New Orleans, Louisiana, Folgers® Employees

What They've Done: In the aftermath of Hurricane Katrina's devastation, theseemployees — many of them suffering great losses of their own — banded together to help their city get back on its feet. Watch this inspirational video and discover how P&G employees have risen above this tragedy and are now reaching out to help others do the same.

If James Gamble and William Procter hadn't married the Norris sisters, P&G might not exist.

In the 1970s, P&G was one of the first companies to put its safety testing data in a computer database, helping to avoid duplicative testing.

Products OF HUL(HINDUSTAN UNILEVER):Bru (coffee):

Bru, launched in 1969, created history in the first year of launch by growing to a record market share of 21%. Ever since, it has grown from strength to strength.

Bru has been instrumental in virtually creating the entire Instant Coffee category as it exists today. It has been at the forefront of most innovations in the Instant Coffee category - whether in coffee-chicory blends, refill packaging, vending operations, or more recently the Low-unit-price packs.

The Bru franchise also includes the Bru Roast & Ground, India's most popular Roast & Ground Coffee brand, and Bru Malabar Roast & Ground which is available in select geographies.

Clinic Plus(shampoo)

Clinic Plus Health shampoo was launched in India in the year 1987. It is India's largest selling shampoo, offering the five most important hair health benefits: strengthens weak hair, prevents hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-dandruff ingredient.

The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual shampoo – it not only fights the last dandruff flake, but also adds back lost nutrients to make hair healthy and beautiful. Clinic All Clear Total is a dandruff solution for everyday use.

Close-up(tooth paste)Closeup is the original youth brand of India. The first brand targeting youth in the oral care market, with an edgy and youthful image which stays relevant till date. Ever since its launch in 1975, Close-up has broken every rule in the book on how toothpastes should behave! Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste segment ever since. In 2004, Closeup was re-launched with a bang. And this time it was packed with the power of Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride, Mouthwash and Micro whiteners, the perfect combination of ingredients for fresher breath and stronger, whiter teeth. Closeup became the first Gel toothpaste with Fluoride in the Indian Market. The brand umbrella also includes Closeup Lemon Mint, gel toothpaste with the whitening benefits of lemon.The latest entry in the Closeup stable is Closeup Milk Calcium – revolutionary new toothpaste with the goodness of milk calcium in an industry-first core-in-sheath format, with white milk calcium nutrient on the inside and a refreshing blue gel on the outside.

Fair & Lovely(fairness cream) A woman's passion for beauty is universal and catering to this strong need is Fair & Lovely. Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was launched in 1978. The Hindustan Lever Research Centre (it is among the largest research establishments in India's private sector, including pharmaceutical companies, with facilities in Mumbai and Bangalore) deployed technology, based on pioneering research in the science of skin lightening to develop Fair & Lovely. The formulation is patented. Its formulation acts safely and gently with the natural renewal process of the skin, making complexion fairer over a period of six weeks. Fair & Lovely is formulated with optimum levels of UV sunscreens and Niacinamide that is known to control dispersion of melanin in the skin. It is a patented and proprietary formulation,

which has been in the market for 25 years. Niacinamide (Vitamin B3) is a water-soluble vitamin and is widely distributed in cereals, fruits and vegetables - and its use in cosmetic formulations has been known for various end benefits. The UV components of the formulation are scientifically chosen and used at optimum levels to provide wide spectrum protection against UV rays of the sun. Specifically, this patented formulation offers a high UVA protection, which is more relevant to Asian skin than plain SPF protection creams sold in the West. All the active ingredients in the Fair & Lovely formulation function synergistically to lighten skin color through a process that is natural, reversible and totally safe. The brand today offers a substantive range of products, including Ayurvedic Fair & Lovely Fairness cream, Fair & Lovely Anti-Marks cream, Fair & Lovely Oil control Fairness Gel, Fair & Lovely for Deep Skin and Fair & Lovely Fairness Soap. The latest has been the Perfect Radiance, a complete range of 12 premium skincare solutions from Fair & Lovely.

Hamam(Bathing soap)Launched in 1934 in India.Hamam has always been a reliable option for consumers over years. The brand has withstood the test of time and has given the consumers the confidence and assurance of being a soap that is safe on skin. Hamam is manufactured in the most modern soap plants world-class quality control system. Hamam contains polyols, which are known to be good moisturizers. Hamam also contains Aloe Vera, Tulsi and Neem extracts. Hamam soap is made from a blend of vegetable oils. The optimum grade of Palm oil and coconut oil is mixed in the right proportion to give a soap that is lasting, gives lather which is stable and can effectively remove oil, dirt from the surface of the skin.

Kissan(jam)

Acquired by Hindustan Lever Limited in 1994, the Kissan category consists of deliciously wholesome products for kids to grow up.

The Kissan range consists of ketchup and other sauces, jams, squashes and ready-to-drink products. For mothers and children, Kissan is today one of the most trusted brands in the country. Kissan continues to be a pioneer in the categories that it operates in.

Annapurna Salt

Annapurna Salt, first introduced in 1997, was relaunched in 2001 with a breakthrough technology, patented in India and several other countries. This technology helps encapsulate iodine with salt. It thereby prevents the loss of iodine from salt, either during its storage and transportation or cooking.

Iodine deficiency is a serious health issue in India. About 278 million people are at risk of iodine deficiency disorders. Iodine deficiency not only leads to goiter, but also has an impact on the mental development of growing children.

The International Council for Control of Iodine Deficiency Disorders (ICCIDD) has endorsed  Annapurna Salt. Annapurna has also taken initiatives to educate consumers about the benefits of iodine and its effect on the mental development of growing children.

Launched nationally in 1998, Annapurna Atta is made with patented technology. It absorbs more water than ordinary atta when kneaded, resulting in softer chapatis.

In 2001, it was fortified with iron and vitamins. The benefit is very relevant because over 60% of women and children are iron deficient.

Kwality Wall(ice cream)

Kwality Wall's, launched in 1995, is the company's master brand for ice cream. Kwality Wall's has combined state-of-the art technical know-how of Unilever - the global leader in ice cream - with a deep insight of the Indian market, to deliver a range of superior quality products under its international brands.

Key launches include Cornetto, Feast, Viennetta, and a range of Sundaes, and also exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone. Kwality Wall's ensures that while each of its offerings is unique in taste and flavour, they are also accessible to more consumers through breakthrough cost reengineering and value delivery.

 

 

Lifebuoy(Bathing soap)

Making a billion Indians feel safe and secure by meeting their health and hygiene needs is the mission of Lifebuoy. The world's largest selling soap offers a compelling health benefit to the entire family. Launched in 1895, Lifebuoy, for over a 100 years, has been synonymous with health and value. The brick red soap, with its perfume and popular Lifebuoy jingle, has carried the Lifebuoy message of health across the length and breadth of the country. The 2002 and 2004 relaunches have been turning points in its history. The new mix includes a new formulation and a repositioning to make it more relevant to both new and existing consumers. Lifebuoy is now a milled toilet soap with a new health fragrance and a contemporary shape. The new milled formulation offers a significantly superior bathing experience and skin feel. This new mix has registered conclusive and clear preference among existing and new users. The new Lifebuoy is targeted at today's discerning housewife with a more inclusive "family health protection for my family and me" positioning. Lifebuoy has made a deliberate shift from the male, victorious concept of health to a warmer, more versatile, more responsible benefit of health for the entire family. At the upper end of the market, Lifebuoy offers specific health benefits through Lifebuoy Gold and Plus. Lifebuoy Gold (also called Care) helps protect against germs which cause skin blemishes, while Lifebuoy Plus offers protection against germs which cause body pouder.

 

 

Surf Excel(Detergent powder)

A pioneers in the Indian detergent powder market, Surf Excel has constantly upgraded itself over the years, to answer the constantly changing washing needs of the Indian homemaker. Today Surf Excel offers outstanding stain removal ability on a wide range of stains. This means that mothers now have the freedom to let their kids experience life without worrying about stains. Surf Excel quick wash is powered with a path-breaking technology- it reduces water consumption and time taken for rinsing by 50%. It is a significant benefit, given the acute water scarcity in most of India. Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel Quick Wash and Surf Excel Automatic. So whatever be the need, Surf Excel hai na.

 

 

Sunsilk(Shampoo)Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country. Positioned as the 'Hair Expert', Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results. The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix - fragrance, colour and ingredients are all well linked to cue the overall synergy. The range comes in premium packaging and design. The accent is on "It knows you, and hence knows exactly what your hair needs".

Products OF P&G(PROCTOR&GAMBLE)

Head & Shoulders Shampoo

Head & Shoulders shampoo is specially formulated to give you beautiful, healthy and dandruff-free hair.

Available in Classic Clean Shampoo and 2 in 1, Ocean Lift Shampoo and 2 in 1, Citrus Breeze Shampoo and 2 in 1, Refresh Shampoo and 2 in 1, Restoring Shine Shampoo and 2 in 1, Extra Volume Shampoo, Smooth & Silky Shampoo and 2 in 1, Dry Scalp Care Shampoo and 2 in 1, Sensitive Care Shampoo and 2 in 1 and Intensive Treatment.

Head & Shoulders Conditioners

Head & Shoulders conditioners are designed to give your hair a radiant shine and help reduce flakes.

Available in Classic Clean and Dry Scalp Care.

NEW! Head & Shoulders Intensive Solutions

Contains 2% Pyrithione Zinc for maximum strength without a prescription

Clinically designed to help prevent seborrheic dermatitis, severe dandruff and other dandruff related problems

Features a clean, refreshing fragrance

Leaves hair shiny and manageable

Tide® Liquid

3X the stain removal power for about 25 cents a load*. Tide Liquid combines all the great stain fighting qualities you've come to expect in Tide Powder with the pretreating ease of a liquid detergent.

Available in Tide Clean Breeze Liquid, Tide Mountain Spring Liquid, Tide Tropical Clean Liquid, Tide Original Scent and Tide Liquid Free

Tide Powder

Tide Powder detergents get to the bottom of dirt and stains to help keep your whites white and your colors bright.

For great stain removal in any temperature, Quick Dissolving™ Tide is formulated to immediately start dissolving — even in cold water.

Available in Tide Clean Breeze Powder, Tide Mountain Spring Powder, Tide Tropical Clean Powder, Tide Original Scent and Tide Powder Free.

Tide with Febreze™ Freshness

Helps clean away stains and odors with ease

Tide with Febreze Freshness gives you the great cleaning you expect from Tide, now with the Febreze freshness you love.

Specially formulated to help target and remove common odors that get trapped in fabrics, and then deposit "freshness actives"

Available in Tide with Febreze Freshness Liquid Spring & Renewal, Tide with Febreze Freshness Powder Spring & Renewal, Tide with Febreze Freshness Liquid Meadows & Rain and Tide with Febreze Freshness Liquid Citrus & Light

Tide Coldwater

Deep Clean. Save Green. Tide Coldwater provides a deep clean in the care of cold water, making it the coolest way to clean.

Removes even stubborn stains better than the leading competitive liquid detergent in warm water

Saves energy and money by lowering your heating bills

Helps colors stay brighter and whites stay whiter

Provides a cool new scent experience

Available in Tide Coldwater Fresh Scent Liquid, Tide Coldwater Glacier Liquid, Tide Coldwater Fresh Scent Powder and Tide Coldwater Glacier Powder.

Tide with a Touch of Downy®

Tide with a touch of Downy presents outstanding Tide clean with a touch of Downy softness and freshness.

Available in Clean Breeze Liquid, April Fresh Liquid, Soft Ocean Mist Liquid, Clean Breeze Powder, April Fresh Powder and Soft Ocean Mist Powder

Tide with Bleach

Clean even what's unseen. Tide with Bleach will clean your clothes and help keep your colors bright and your whites white.

Available in Original, Mountain Spring and Clean Breeze scents

Tide Liquid with Bleach Alternative

The smart alternative to chlorine bleach. Tide Liquid with Bleach Alternative uses active enzymes to break down and remove stains while whitening whites.

Because it is not chlorine based like liquid bleach, it also is safe to use on colors too. In fact, the Tide BrightLock™ formula actually reduces chlorine in the wash to help keep bright colors from fading.

Available in Tide with Bleach Alternative Liquid Original, Tide with Bleach Alternative Liquid Clean Breeze and Tide with Bleach Alternative Liquid Mountain Spring

Tide HE

Get the most out of your high-efficiency washer. Tide HE is specially formulated to unlock the cleaning potential of high-efficiency washers.

Standard detergents can cause over-sudsing when less water is used, and using less detergent sacrifices cleaning power. Tide HE provides excellent cleaning with the right level of sudsing.

Available in Tide HE Powder Original, Tide HE Liquid Original, Tide HE Liquid Clean Breeze and Tide HE Liquid Free

For more than 50 years, Oral-B® has produced the highest-quality dentalhygiene products for you, your family and dental professionals worldwide.

Power ToothbrushesOral-B power toothbrushes offer exceptional features and performance benefits. In fact, an independent landmark study has concluded that only the oscillating-rotating power toothbrush technology, pioneered by Oral-B, offers superior cleaning compared to manual toothbrushes.

Power Brush Heads

Oral-B offers 12 advanced power brush heads designed for different needs. Choose the perfect one based on your desired brushing experience: deep clean, extra soft, whitening, floss-like clean, traditional brushing and cleaning around braces or other dental work.

Manual Toothbrushes

At Oral-B we develop products that are used and trusted by dental professionals worldwide. From infants to adults, Oral-B makes a manual toothbrush to meet your family's needs.

Kids' Products

Kids change a lot during the developmental years. Oral-B Stages® kids' products are designed to meet their special oral care needs at every stage.

HUL: ADVERTISING STRATEGY

BUILDING CORPORATE IMAGE

Corporate communications and public relations for building image can truly be looked upon in the context of global business and marketing as a subject about which many professionals hold firm views, but know surprisingly little about. Some see it as a menace, as an expensive flag waving exercise which their company can easily do without. Others regard it as a myth, arguing that publicity by of virtue its obvious nature, cannot hope to change perceived images in people’s minds. At the other extreme are those who view corporate communications (particularly advertising as a magic formula and an instant panacea for every corporate ill. In reality it is none of these things. it is in fact, a management tool to influence the outside world-the target group. So, the real significance of building corporate image lies in preparing and consolidating a sound global consumer base.

Every company wants to have a favorable image in the global market. In case of HLL also, image-building plays the most important part in determining its marketing strategy. Building corporate image is concerned with building confidence and credibility by helping your target group understand you better. Familiarity in this case normally improves acceptability of who you are and what you are doing. Ignorance, on the other hand, can lead to mistrust, or even contempt in some situations. Corporate image is built through more than one strategic means, and often a combination of activities. For instance-

1. Advertising —corporate and even product

2. Public Relations—external and internal

3. Media Relations —especially the Press

4. Customer and Supplier Relations

5. Community Relations — good corporate citizenship

As India transits from a shod age-driven economy to a one propelled by competition the reputation and image of a company like HLL will make difference between whether it rules the market or merely rues it. Corporate image is what enables HLL to hold its own against rivals like IPCL and Haldia

Good corporate image can be built if you treat it like one of the Ps’ of marketing— the fifth ‘P’ stands for Performance’ —professional corporate performance, doing it the right way the first time. It’s in this regard that creativity in PR comes to have a lion’s share in the entire process of corporate image building.

Creativity in PR means more than just pretty pictures and good copy. It is building image with activities, which generate all-round impact and visibility for the company. ‘What’ and ‘How’ is the task here. Creative corporate advertising is one route.

With respect to positioning similarly, the image communication and image building activity must to able to find a right niche in the minds of the target group. The ‘quality of the message, and activity, is vital for this.

Companies which benefit most from corporate image are those who take a long-term view and commitment towards communication and the image of their organization through it. HLL can be presented as a striking instance of it.

Image and Identity

There may be nothing new in saying that the corporate image is in the eye and the mind of the receiver. Yet it is worth saying again and again. An organization transmits, on a sustained basis, messages to publics. It is the reception of the message, which goes to create the intended image. In other words, corporate communication is the process that translates an identity into an image. Again, in brief, corporate image primarily refers to the image that a company has acquired with the public whereas corporate identity refers to the image a company strives to achieve, in order to build to build a reputation with its publics.

In this context, decidedly, every company like HLL needs a mission. The mission is, in fact, a framework for business and all its activities, the value that drive the company to achieve the corporate goals. No less important is the belief the company has in it. The mission is the glue that holds the company together. Here, the PR and its communication strategies come into distinct focus. If the mission and the objectives of the organization have to succeed, the corporate body must communicate short-term goals, long-range objectives and even the total mission of the organization. Inadequate communications result in an ambiguous corporate image within as well as outside and lead to breakdown in the co-ordination of all contributing elements in an organization.

Dare To Think Beyond Advertising….

In present situation to address the "The soprano problem", advertisers resort to shadow advertisement where the products become endemic to the setting of the show. Where the products are shown being consumed or brand name is exhibited in the background.

In India, the first shadow advertisement was used in movie "Bobby" where motorcycle "Rajdoot" was advertised. Recently, there was shadow advertisement of Coca-Cola in Hindi blockbuster "Kaho Na pyar hai". But the problem with shadow advertisement is that positioning message of the product can't be conveyed to consumers. Hence, the concept of shadow advertisement can be extended further so that the theme of the advertising would become endemic to entertaining show. This would be no more exclusive advertising. Rather, advertising will be a part of the entertainment. But this

has to be done in a delicate manner so that the information about the product is passed on to the viewers without disturbing the entertaining element of the show. If this succeeds, that would be a great break-through for advertisement. Even this should not be called advertising anymore, as that has become an irritating word in the mind of the audience. Even though advertainment seems quite close to it, but it would be more evolved. Since in advertainment we try to advertise and entertainment comes with it. But in the recommended solution we want to entertain the audience only and advertisement is an integral part of the show. The major question would be, whether the audience would be able to comprehend the hidden positioning message? Here are few examples on how to make the positioning message integral part of the show. We have programmes like "Antakshari" in which participants take part in groups. The groups can be named after some brands and the participants would be projected as such that they would be personification of brands. Suppose one group is named Lux, the participants are expected to be beautiful women who stand for Lux. So this can be done for many programmes, which has format like this. Suppose HLL produced a soap opera and the dialogue of the characters at some point would be focused on the products of HLL. Of course the context has to be right and should be very much along the script not that it would destroy the element of entertainment. Hence the major challenge would lie before scriptwriter and director. Even a particular character of an opera becomes very popular as the opera becomes very popular. Hence building such character, which would personify the brand and both the character as well as the brand would grow in due course of time. However even if time constraint is removed, course content constraint comes in. But the scope of story telling is far greater. Attention grabbing will be replaced with attract attention and no zipping/zapping problem. Audience will be more receptive and comprehension of course would be dependent upon how it is executed. Practicability of the idea would be tested when it will be implemented. Hence unless it is tried and tested it can be concluded that whether it will click or not. Let's take the example of Coca-Cola, the scriptwriter would be creating situation in each episode of a family soap where there would be opportunity to celebrate and drink coke! To give another example, a multi utility vehicle with safe driving positioning plank could have exploited the plot of the recent movie " Road".

If this concept clicks, there would be nothing like it for advertisers. If it happens, in future big advertisers like HLL would be diversifying to entertainment business! Of course the ad budget of HLL is far bigger than the total budget of many entertainment houses.

Irrespective of whatever positive points or negative points it has, this concept can be tried for programmes aired in pay channels simply because there is no other alternative to advertise during the programme. Besides it is expected to solve the other problems those are discussed above. Advertisement would be no more the troublemaker and irritating. Hence catching attention would be much easier. Only testing of this idea could help us to conclude whether to roll out from the concept from programmes of pay channels to programmes of free channels.

PUBLIC RELATION

“Public relations practice is the deliberate planned and sustained effort to establish and maintain mutual understanding between the organization and its publics”.

By: - Institute of Public Relation (British) 1948.

To understand the definition better it in important to know as to who does the word publics refer to.

Public are -

: Shareholder

: Customers

: Employees

: Trade Unions

PUBLIC RELATIONS

Here we try to identity the distinguishing factors between Advertising and public relations:

“Advertising is a commercial persuasive activity aimed at promoting a particular idea or a viewpoint product, or service, institution and so on through the mass media.”

As refined by the British Institution & Practitioners of Advertising:-

“ADVERTISING presents the most persuasive possible selling message to the light prospects for the product or service at the lowest possible cost on the other hand “.

Public Relations demand more time and effort than advertising because advertising is limited to special selling and buying tasks. For advertising the basis jobs of conceptualizing, producing, space buying etc. Can be delegated folly to agencies whereas such total hiring of agencies for absolute Public Relation functions cannot be conserved.

Public relations are a long-term policy measure and are not built overnight. It is also not free of cost, it is built over a period of time.

“With public opinion against it nothing can succeed”.

“With public opinion on its side nothing can fail”

- Abraham Lincoln

Public relations, taken as a component of management discipline, are of comparatively recent origin. As a concept, it was critically evolved in business and industry and subsequently spread to other areas of human activity. Applicability of this profession in government and public institutions like corporations, municipalities, universities, hospitals, social service organization and professional institutions it truly immense. Admittedly, even before the emergence of industry, business and government, a public relation was in practice in people’s daily life. In effect, a public relations is the result of the action inherent in an individual, an institution or an organization.

Public relations are never a private monopoly of PR practitioners. In fact, members of an organization, and especially those in leadership, management and supervisory positions have a PR role to play and often even singularly. People adept in the art of public relations stand better chances of success and survival since they can always find areas of mutual interest. They also use modern methods of communication and persuasion which go a long way in establishing mutual understanding based on truth, knowledge and complete information.

THE SIGNIFICANCE OF PR IN HUL

It may be useful to begin by first getting out of the way certain popular notions which, as with many popular beliefs are either without any basis in reality or at best express only half truths. For instance, PR men are regarded by some to be fixers, a breed of people who will wangle things for you by the most questionable methods. There is also a popular idea that PR men spend most of their time winning and dining, using for the purpose fabulous expense accounts they are supposed to have access to. While no one can prevent a charlatan from posing as a PR man or styling himself as a PR consultant he is no more a tine practitioner of PR than a quack selling magic remedies by the wayside is a physician. How deep-seated such popular misconceptions about PR can be reflected by the fact the even now one comes across articles published in well-known papers and journals airing such naive ideas about PR.

Again, PR is sometimes confused with publicity. Publicity is certainly one of the instruments of PR but is would be as wrong to equate publicity with PR just as it would be to equate the stethoscope with the practice of modern medicine. To continue the analogy, PR seeks to diagnose the ills of an organization in its relations with the public or any segment of the public, it prescribes remedies and proceeds to administer them. It then keeps a watch on the patient to see whether the remedies prescribed are producing the desired effect so that the medicine can be changed if necessary after evaluating the results. Again, as in medicine prevention is considered more important than the cure, PR believes in maintaining the good health of the corporate body -so that drastic remedies and bitter pills may not have to be swallowed later.

Analogies may be useful in giving a general idea but can never be as precise as a definition. PR which is now a well-established discipline therefore needs to be defined so that we may be clear about what we are discussing when we talk about PR. It is ‘the attempt by information, persuasion and adjustment to engineer public support for an activity, cause movement or institution. ‘Public relations as and applied social and behavioral science is that function which - measures, evaluates and interprets the attitudes objectives for increasing public understanding and acceptance of the organization’s products, plans, policies and personnel; equates these objectives with the interests, needs and goals of the various relevant publics; and develops, executes and evaluates a programmed to earn public understanding and acceptance.

GOVERNMENT RELATIONS

Government relations have two facets to it. First the PR for the government (as an organization) and second, PR with the governments as the target group. Both are important and very needed by corporations.

Public relations for the government involves mobilizing public support for government’s activity, for instance, family planning, control, environmental protection, beautification of cites, etc. the company generally sponsors some of these activities by providing monetary help or other resources. The basic objective of the company is to build relations with the governments, and also help for the good of the community of society.

Public relations with the government involves keeping the government—politicians and bureaucrats—on your side. It envisages maintaining good links with the government which will be of benefit to the company in its overall business plans and operations. Public relations with the government in some ways are quite difficult and demanding. It requires special planning and efforts for the organization to be successful. A government, local or national, comprises many ministries, departments, individuals and personalities. Public relations people have to acquaint themselves with the working of the government, and the intricacies and people involved at various levels, and then handle things accordingly to be able to achieve what they have set out to achieve.

The government should not be looked at as an adversary. In fact, you should make all efforts to help the government and support its activities and policies as far as possible. Government leaders must be kept informed from your side about the organization’s activities and policies—especially those which are contributing to the welfare and development of the state or the nation. Such relations will be mutually beneficial in the short-term and the long-term. Corporations should, however avoid getting involved with politics and political issues.

MEDIA RELATIONS

Media relations Is a vital tool in PR. A large amount of communications and PR are conducted through the media—especially the Press. When a company gets media coverage, it is not always flattering. Business is always vulnerable to attacks by the media. Media can often aggravate problems—especially crises. As in the case of Union Carbide and HLL a few years ago.

Hence, media, particularly the Press has to be handled very carefully. The media must be kept on your side. All efforts must be made to ensure this strategically. It takes years to build a good image, but to destroy it you need just a few bad reports in the media.

It is important to build a working ‘rapport’ with the media. You cannot afford unnecessary reactions and distortions. If you do go to the media then always go with a strategy—be selective in the choice of media, use only influential media (especially publications in the Press), do not spread your communication too thin, go for quality rather than quantity. Selective and in-depth

coverage is what you must aim at, as it is more effective and produces the desired results. let your communication be complete honest, and backed with hard facts. The organization must be able to live up to its claims and promises in media, otherwise you can be in for further problems. The efforts made by HLL in this respect have been orchestrated well to build image as well as to counter negative publicity.

FINANCIAL RELATIONS

With the growth of the Indian economy and the business sector, management of financial promotions and PR have taken on a new dimension. HLL is making special efforts to ensure the goodwill of their shareholders, investors, financial institutions, and the rest of the financial community. This is being done in the mass media and specialized media ranging from annual reports to special brochures to audio-visuals, video films, and even corporate advertising in the Press and television.

The main target group of a company in financial PR is its shareholders and potential investors. They have to be given information they are entitled to have, and they have to be kept interested in the company. Public relations must establish, maintain, and improve the company’s image and reputation so that it can obtain funds from the public and the financial institutions on the most favorable terms when it desires so The financial and business Press, today, is very important in achieving this objective,

The importance of financial PR and the need for it is seen from the number and growth of PR agencies specializing in financial promotion, advertising and PR management in India. These include well-known names like Pressman, Clear, and Sobhagya, now a host of others. They provide their clients a wide range of services and expertise in PR and advertising.

CUSTOMER RELATIONS

In the past PR and marketing were considered separate and unconnected activities of business ‘in a company. Today, PR has a role to play in marketing not only to build image, but to also help solve problems concerning a company’s products

or services among consumers or other special groups, and generally protecting the company’s reputation at the marketplace. Public relations with customers, and with suppliers, in industrial products/services marketing at the institutional level are gaining more and more importance today.

In today’s competitive market customers opt for products that are known and have an image, and are backed by quality and good after sales service. Public opinion on such aspects cannot be

ignored by marketing people. In the long run, unfavorable opinions certainly affect sales. Public relations can help in controlling and setting right some of these opinions; it is therefore essential for companies to assign some of their attention and resources to develop PR in marketing.

COMMUNITY RELATIONS

Today, the relationship between corporations and the community is a vital issue in management of business organizations. It is acknowledged that business is no longer done for the sake of profits alone. Because a company functions within a community, its responsibility extends to giving back to the community something for what it makes from it. This has been the philosophy of the Tatas in India for years; today it is accepted and is being followed by a number of other companies. This belief is now also considered important and crucial by the government, consumerists and opinion leaders. Company relations at an organization can vary from local

Community welfare activities, to large scale sustainable development programmers for the betterment of lives of people. Companies have to consider the community as one of its prime target groups. The objective of PR is to help build image of the company: as a good corporate Citizen, a good company to do business with, and a good company to work for.

EMPLOYEE RELATIONS

In employee relations, communicators are vital at every level. From top to bottom, also from lower level to the top management level, and even the horizontal communications among colleagues at the same level and between functions. The basic function of communications and PR in the organization is not just better functioning, but a fostering of goodwill, trust, and togetherness among employees.

INDUSTRIAL RELATIONS

This is another important area of work for PR executives. Its importance is growing, with staff and workers getting to be united, more enlightened and demanding. Whether they are unionized or not does not make a difference in the PR work; in either case, good relations have to be maintained. In the case of unions, it Is important to realize that unions have their own goals. This makes it more difficult to deal with them in many respects. Understanding these goals, and how they will affect Industrial relations and PR efforts, is the first priority in dealing with unions.

P&G: ADVERTISING STRATEGY

We take pride in developing strong ties to the communities in which we live and work and are focused on helping children in need around the world live, learn and thrive.

P&G Chemicals is committed to providing your business with consistently high-quality oleo chemicals.

P&G Commercial Products supplies a variety of businesses with P&G cleaning, laundry, and coffee, tea and snack products.

P&G EDI provides easy access to electronic data that is of value to prospective and current P&G retail customers, transportation carriers and financial institutions.

P&G Food Ingredients help formulators create great tasting, better-for-you products by developing functional ingredients that reduce fat and calorie profiles, lower cholesterol effects and improve heart health.

The P&G Legislation & Regulatory group delivers accurate and timely information to representatives of industry trade groups, legislators and government agencies.

The Retail Customers group assists the Company's trade partners and representatives of retailers.

For current and prospective suppliers, P&G provides a Supplier Portal Web site that offers easy access to a variety of information.

P&G is actively searching for the next game-changing products, packaging, technologies, processes and commercial connections that can improve the lives of the world's consumers.

P&G's Tremor division designs and implements customized word-of-mouth marketing programs for both internal brands and external clients. Tremor programs leverage national panels of 250,000 teens and 450,000 moms to deliver outstanding business.

P&G Pharmaceuticals sources all of its new drug development and commercialization initiatives via a network of academic, biotech and pharmaceutical company collaborations.

Data analysis & Interpretation

Year wise net sales of FMCG

Companies by advertising:

Graphical Representation:

YEAR Sales in Cr2002-03 10667

2003-04 9954

2004-05 10139

2005-06 8828

2006-07 11060

In 2001 the sales of FMCG was Rs 10,667 Cr and it was Rs 10,139 Cr in 2003 where as it was Rs 11,060 Cr in 2006-07 reason being in 2006-07 the expenditure on advertisement and promotion activities was more than Rs 1000 Cr.

Year wise expenditure on advertisement :

YEAR 2002-03 10667

2003-04 9954

2004-05 10139

2005-06 8828

2006-07 11060

YEAR

0

2000

4000

6000

8000

10000

12000

2003-04 2004-05 2005-06 2006-07 2007-08

RS IN Cr

Graphical

Representation:

The expenditure by FMCG on advertisement has been increased from year 2004-05 to year 2005-06.

YEAR Expenditure in Rs (Cr)2003-04 824

2004-05 842

2005-06 760

2006-07 836

2007-08 1008

Total Revenue in Rs

YEAR

0

200

400

600

800

1000

1200

2003-04 2004-05 2005-06 2006-07 2007-08

Rs IN Cr

Year wise Net profit of FMCG:

Graphical Representation

YEAR

0

500

1000

1500

2000

2500

3000

2001-02 2002-03 2003-04 2004-05 2005-06

Profit in Cr

Year wise Total Revenue of FMCG:

Activities have shown direct impact on Net profit of FMCG.

YEAR Profit in Rs (Cr)2003-04 1641

2004-05 1755

2005-06 1771

2006-07 2197

2007-08 2400

YEAR Profit in Rs (Cr) 1641

1755

1771

2197

2400

Graphical Representation:

YEAR

940096009800

1000010200104001060010800110001120011400

2001-02 2002-03 2003-04 2004-05 2005-06

Revenue in Cr

Continues expenditure on advertisement has increased the revenue thereby profit. As the graph shows continues increase in revenue.

YEAR

2001-02 10721

2002-03 10038

2003-04 10245

2004-05 10135

2005-06 11193

Respective share of revenue of various segment of FMCG in 2001

Products Revenue (%) in 2003Shop & Detergent 35

Beverage 15Foods 10Others 15Exports 25

Graphical Representation:

Share in revenue (%)

Shop & DetergentBeverageFoodsOthersExports

In 2001 the highest share in total revenue was by shop and detergent section of HLL followed by export and beverage.

Respective share of revenue of various segment of FMCG in 2002

Products Revenue (%) in 2004Shop & Detergent 37

Beverage 12Foods 08Others 16Exports 27

Graphical Representation:

Share in revenue (%)

Shop & DetergentBeverageFoodsOthersExports

In 2002 the highest share in total revenue was again by shop and detergent section of FMCG followed by export and beverage.

Respective share of revenue of various segment of FMCG in 2003

Products Revenue (%) in 2005Shop & Detergent 37

Beverage 11Foods 06Others 18Exports 28

Graphical Representation:

Share in revenue (%)

Shop & DetergentBeverageFoodsOthersExports

In 2003 the highest share in total revenue was by shop and detergent section of HLL followed by export and beverage. Minimum share was from food Section.

Respective share of revenue of various segment of HUL in 2006.

Products Revenue (%) in 2006Shop & Detergent 37

Beverage 10Foods 03Others 18Exports 32

Graphical Representation:

Share in revenue (%)

Shop & DetergentBeverageFoodsOthersExports

In 2004 the highest share in total revenue was by shop and detergent section of HLL followed by export and beverage. Minimum share was from food Section.

Respective share of revenue of various segment of FMCG in 2007

Products Revenue (%) in 2007

Shop & Detergent32

Beverage10

Foods07

Others16

Exports34

Graphical Representation:

Share in revenue (%)

Shop & Detergent

BeverageFoods

Others

Exports

In 2005 the highest share in total revenue was by Export section of HLL followed by Retailers & Advertising manager.

VISION

The firm must recognize that it cannot make this journey alone. Companies that want to be

industry leaders realize they must reinvent the total network in which they are merely one player.

To achieve such leadership, a firm must cooperative in creating the value chain constellation that

will dominate an industry. This network consists of a linked set of agile companies that not only

react to market challenges but in fact dynamically anticipate and exploit new opportunities that

can sustain profitable revenue growth and exceptional shareholder value well into the next

decade.

Considering the importance of targeting markets and consumers, a company must also

choose its value chain partners very carefully because they are the key to future profits and

competitive advantage. In short, alliances must be built with organizations that are qualified to

assist in the process..

With the road map laid out and the destination defined, value chain partners can pursue a

jointly determined set of process improvement initiatives based on what works for other

networks or on new and innovative designs created by the members of the value chain

constellation.

FINDINGS

Following Are the Findings of My Study on this Topic

I have conducted survey in which I have found that 40% respondent said that advertising is necessary for awareness of customers.

40% of the respondent said that advertising makes influence on customers to buy the

particulars product.

While the 20% of the respondent said that advertising is a totally wastes of money and it

will increase the cost of production.

Problem solving and strategic planning experience having worked closely with sales teams to generate insights to retain and grow customers. Client side and agency experience across a range of service and FMCG companies. Degree educated with the CIM diploma in marketing.

Creation of ‘Less gassy’ campaign - positive response rate of 55% in mainstream consumer tests.

The aim of the study was to quantify the average impact that European ad campaigns have on traditional branding metrics, and create benchmarks for categories such as FMCG which has traditionally not embraced the Internet as a key advertising medium.

The largest rise will be in the automotive sector with those questioned within estimating that online will represent 8.7% of total ad spend by 2007, a 123% increase. FMCG advertisers predict a 59% increase in the share of online ad spend while entertainment brand advertisers predict a 28% increase.

  81% believe the internet is a vital component of their company’s advertising strategy.

88% say that rising broadband penetration is making online advertising more attractive.

The online share of total ad spend will rise substantially over the next two years.

Perceived lack of research & measurement remains key barrier for advertisers. 

CONCLUSIONS

A look at the contemporary profit of the global industrial segment of household goods

brings it into clear focus that the situation prevailing in major markets is very much in flavor of

HUL. The fact that should be acknowledged on the basis of current trends betrayed by this

segment tells us that HUL veritably stand out as on indisputable market leader in this field and is

sure to surge way ahead of other players in future. The competitive strength, strategic acumen

and ability to reach out for a considerably larger consumer base that the company has been able

to attain through the years since its inception also point to this fact categorically.

An extremely pertinent views that emerges out of it amply suggests that it is the dominance

of HUL operating under the banner of Unileaver in most of the countries that contribute in a

large measure to the creation of a market situation in which consumers are nearly forced to

purchase their ‘choice’ at prices that might not be in congruence with their speculations and

calculative consideration of affordability – something that largely determines the phenomenon

called consumer behaviors. It is absolutely doubtless to assume are incomparable in term of their

qualitative excellence.

It is a bit surprising to observe that HUL is the market leader even though it’s capable of

manufacturing and marketing a vast range of products with an international consumer base.

Moreover, the tie-up of Prima India with HUL reflects that the latter is not unwilling to share its

technological expertise and infrastructural contrivances with others. So, in spite of the near

monopoly situation caused by HUL’s presence in the global market, it points to a healthy

flexibility in the company’s fundamental approach.

Another very striking aspect of HUL’s global marketing strategy and operations, as it has

been pointed out and dwelt upon in the present study, is its enormous ability to capitalize on the

resources available to it.

SUGGESTIONS

Based on findings and conclusions the following suggestions have been recommended.

DETERGENTS (SURF EXCEL)

1. USE SACHETS MORE FREQUENTLY

Since the rural income has been increasing and consumers are becoming quality

consumers of middle and lower segments so that they at least try the product .

TOOTH PASTE (CLOSE-UP)

1. FOCUS ON MALES: During a recent survey of ORG-MARG it was found that young girls

were more loyal to Close-up than males and house wives target youths but housewives and much

earners in the family.

2. AGGRESSIVE MARKETING IN NORTH AND EASTERN REGIONS:-

These are the regions where Close-up is way behind Colgate. Hence to improve its performance these markets should be attached aggressively.

SHAMPOO (CLINIC PLUS)

SHOULD GIVE ATTENTION TO HIGH INCOME GROUP CONSUMER

This is one place where Clinic-Plus is not being used extensively. So these consumers should be attacked. Higher income group consumers have purchasing power hence it can boost HUL’s sales much higher.

ATTENTION TO NORTH & WEST MARKETS

The brand performance is nearly half of that in South and East. Hence there is immense development potential is North and West.

FOCUS ON GIRLS:-

Boys seem to be using Clinic Plus more than the girls. It’s very surprising. It’s

the girls who use Shampoo more frequently than boys hence there is development

potential.

ICE- CREAM

VENDING –Quality Walls can expand its reach to the consumers by setting up

counters at departmental stores (like Nilgiris), shopping malls etc. where the product

is not available as of date. The objective behind making the product available in these

places would be to cash in on the impulse purchase. The ice cream counters should be

installed at the entry/exit points and suitably loaded with the appropriate point of

purchase material to induce purchase. This could also offer convenience to the

consumer which at present soft drinks are doing.

Advertising in Theatres –This can help induce an impulse purchase since ice cream is

usually associated with outings and movies. The theatre food stalls have ice cream

counters and hence not only POP material but also on-screen commercials are

necessary.

Sampling is Low –One of the reasons why the purchase of novel brands like Cornetto

takes time to pick up, is the low rate of sampling. The recommendation to generate

new product trial is to create media hype along with offering promotions to induce

trail purchase of the new product. Since, this is a fairly new product, to induce trials

‘Reach’ is more important than ‘Frequency’. The promotions should be designed in a

way so as not to discount the premium image of the brand. Thus they could be in the

form of discount coupons offered along with another premium brand of Quality Walls

family of ice cream.

LIMITATIONS

Though HUL seems to be ruling the roost in various segments of household goods industry,

findings suggest that its marketing strategies are not without loopholes. Let us have a look at

these loopholes or limitations in brief.

One very striking limitations is the fact that even though these products with all-pervasive

marketing and distribution channels, flourishing increasingly in different parts of the world

there appears to be a visible lack of channels providing them substantial access to semi-

urban and rural areas. In other words, the products of HUL have a weaker grassroots bases.

The availability of these products to common people does not only depend on marketing

network, but also on the advertising strategies adopted by HUL. On this count culinary

products

Don’t seem to offer much to create any stir and betray manifest upward trends in terms of

widening consumer base.

The pricing strategy adopted by HUL shows considerable fluctuation which has led the

consumer base to remain almost stagnant in many segments. Usually, the prices of these

products are too high to make these affordable to the common masses and particularly those

belonging to low income groups. This phenomenon seems to be most evident in culinary

goods segment, which constitutes the backbone of HUL’s industrial base.

Agricultural pursuits have not yet attained the status of industrial activities to a considerable

degree. So, the supply mechanism adopted by HUL for the raw materials tends more often to

suffer from a kind of unpredictability syndrome in terms of communication and planning. On

certain occasions, the readily available agricultural input is too low to cater to the needs of

manufacturers because ‘cultivation for industrial.

Production’ or ‘industry-oriented farming’ is not popular concepts even today in many

countries of the world including India.

Though, the facilities of transportation and logistics for the supply of raw material don’t lack

substantiality as much in case of HUL as most other players in the industry even HUL is not

totally luinune to the problems posed by it. On many occasions, transportation costs are too

high, which affect the overall pricing strategy adopted by HUL.

HUL manufactures a large range of products along with those we call

culinary products. This diversification in products. But culinary products are

usually bracketed with other (major) products in case of these companies.

So, no serious or special attention is paid to devising separate or exclusive

strategies for these products. It makes their brand name rather than

considerations of their qualitative excellence.

BIBLIOGRAPHY

BOOKS

Edition -3rd, Title: Briggs. (1998). "The Big Payoff". Advertising Age, Spring

1998,

Edition 6th, Author: Rae, N. & Brennan, M. (1997). "The relative effectiveness of sound and animation in web banner advertisements". Massey University Marketing Bulletin.

MAGAZINES

Business Today

Business World.

INTERNET WEBSITE

www.indiainfoline.com

www.unilever.com