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ROLE OF ADVERTISING IN FMCG SECTOR

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 departments
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 an
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.
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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 players:


Advertising is not a single industry, but spreads untidily across at least three separate
kinds of employer organization those who are
o Use it (the advertisers);
o Make it (the advertising agencies); and
o Display it (the media).
A number of other, more specialized organizations e.g. market research companies are
also involved.

Different sorts of advertising:


Using 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,


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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:Advertising objectives:


If 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 advertisers 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.
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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 program 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 colors, 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.

ROLE OF ADVERTISING IN FMCG SECTOR

If the objectives aren't commercial but, for instance, to communicate information, the
questions are
o Whether the effects of advertising are worth the cost, and
o 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 specialized forms of market research, and econometric modelling.
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:
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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:
o That it is wasteful and increases prices (i.e. without its expense, the goods
advertised would otherwise be cheaper);
o That it is vulgar and tasteless; and
o 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.
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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 is 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 e.g. 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 handsome experience in one field is often
thought valuable by an employer in another one.
Here are the main categories of work available:
o Creative
o Planning
o Statistics, Research and Analysis
o 'Buying and Selling'
o Sales Promotion
o Management
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
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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
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.
o Advertising is a form of persuasive communication with the public.
o The object Advertising is:o Inform customers of the goods and services.
o Brings out the product use Ps
o Calls for or invites people to buy the product
o Mass communication
o Attract attention
o Lousing interest
o Building desire

OBJECTIVES OF STUDY
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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 an advertising.

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

LITERATURE REVIEW
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Advertising is a non-personal paid form where ideas, concepts, products or services, and
information, are promoted through media (visual, verbal, and text) by an identified
sponsor to persuade or influence behavior
(Ayanwale et al., 2005 and Bovee, et al. 1995).
The advertisements have a negative impact on women than men, as women appear more
emotional and unconfident in contrast to men. The point of concern to be noticed about
women's appearance in commercials is that the advertisements focus mainly on beauty
and body features of the model, and less on the product and they give emphasis to the
physical attractiveness of woman (Ivy & Backlund, 2004).
Rekha & Kamran (2012) analyzed the impact of advertisements on youth. For this
purpose they studied the effect of ads on youth in promoting physical dissatisfaction. To
answer the research questions they gathered data from India in the area of Chennai, on
915 respondents. These surveys hold unique information; it was found that around 67%
of the respondents have stated that they are pressurized by advertisements. Further it was
found that the respondents are overestimating their present body size and idealize a
thinner image. The empirical results distinctly explain the relationship between the
advertisement pressure and its impact on body dissatisfaction and body image perception
to the detriment of women. Thus the culture of thinness in advertisements may lead to
body dissatisfaction of women and which may further manifest to eating disorders which
is a concerning issue for India.
Advertisements use different techniques it creates dissatisfaction among people then
give solution to overcome with this problem, actually this is a technique for selling
goods just like beauty products create dissatisfaction among people about their beauty
even if they have beauty, but they feel dissatisfy about their beauty from idealized
images of beauty. Beautiful and shiny skin, straight hair and thin body are portrayed by
advertisements (Mbure, 2009).

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It has been proposed for years that women have a normative discontent with their body
shape and, especially, weight, by similar to the social ideal; women raise their
self-esteem as well as their perceived value. Men, on the other hand, have
long been thought to be free from pressures to shape their bodies in a certain
manner because they had other avenues upon which to base their self-opinion.
However, recently, the pressures on men to obtain and maintain a certain body
type have been increasing. The value of having a muscular body has
increased, there are many reason of this but the main reason is the role of
advertisements, it has set criteria even for male, however, the pressure toward
developing a muscular frame rather than a thin frame. So advertisements
produce dissatisfaction both men and women (Baird & Frederick, 2006).

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ADVERTISING PROCESS
The Frozen Products Division of HLL 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.

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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-byframe 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
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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.
o When you have an awareness problem, advertising is a way to increase awareness.
o When you have an alternate use that people may not know about, advertising is a
way to tell them about it.
o When you have a product improvement, advertising is a way to get trier-rejecters 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).

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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 medias 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
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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 magazinessuch 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.
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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 companys
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:
Advertising in a down economy is even more important than advertising during
the good times, says Joyce Gioia, president of the Herman Group, a firm of strategic
business futurists in Greensboro, N.C. Thats when you can build market share. Thats
when you have less competition for share of mind. While others are in a cocoon,
hibernating until things blow over, its a great time to invest in your business.
Gioia 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.

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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 longterm 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
.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 bto-b trade shows are highly regarded for enabling interaction with industry peers.
To stay on top of developments in your field, its 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.

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Rich media rules:


Double Clicks Ad Serving Trend Report gives deeper insights about what works
on the Web. Double Clicks 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. DoubleClicks also found that Flash increased branding metrics by 71 percent for three differentsized ads measured, demonstrating the branding power of richer media. "While clickthrough 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 Knopper, 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?


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.

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DESCRIPTIVE WORK ON SUBTOPIC OF STUDY

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PROFILE OF HLL (Hindustan Latex Limited):


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 Gossage & 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. HLL has been growing very rapidly,
especially in 1996 the growth was 88.6% HLL became the second private
company in India after Reliance Industries to cross the Rs 10000 core mark in
1998. At present its valued at Rs. 11764.31 crore. 1 its rapid growth has given
HLL place in the top 5companies regularly in annual BT-500 survey. This
huge success has come due to:o Doubling of rural distribution network from 50,000 to one lakh villages
o Launch of a marketing scheme, Operation Bharat, across 22 states.

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ROLE OF ADVERTISING IN FMCG SECTOR

It can be said beyond any doubt that HLL is an undisputed leader in FMCG products in
urban as well as rural area. HLL caters to 850 million people in India which
becomes 85% approx. of the total population. Hence the study of HLL 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.

PROFILE OF P&G (Procter & Gamble):


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.

Purpose, values and principles:


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 worlds consumers.

Global operations:
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.

Employee spotlight:
Spotlight

On:

Our

New

Orleans,

Louisiana,

Folgers

Employees

What They've Done: In the aftermath of Hurricane Katrina's devastation, these


employees 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.

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ROLE OF ADVERTISING IN FMCG SECTOR

Our history from


1837 to today:
If James Gamble and William
Procter hadn't married the Norris
sisters, P&G might not exist.

Did you know?


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 HLL:
Bru:
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:
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:

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ROLE OF ADVERTISING IN FMCG SECTOR

Close-up 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, Closeup 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:


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 Niacin amide
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. Niacin amide (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
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ROLE OF ADVERTISING IN FMCG SECTOR

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.

Kwality Wall:
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 flavor,
they are also accessible to more consumers through breakthrough cost reengineering
and value delivery.

Lifebuoy:
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.
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ROLE OF ADVERTISING IN FMCG SECTOR

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 powder.

Surf Excel:
A pioneer 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:

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ROLE OF ADVERTISING IN FMCG SECTOR

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, color 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: 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.
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
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ROLE OF ADVERTISING IN FMCG SECTOR

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.

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ROLE OF ADVERTISING IN FMCG SECTOR

For more than 50 years, Oral-B has produced the highest-quality dental Hygiene
products for you, your family and dental professionals worldwide. Trust the brand more
dentists use themselves worldwide.

Power Toothbrushes:
Oral-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.

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ROLE OF ADVERTISING IN FMCG SECTOR

DIFFERENT ADVERTISING STRATEGIES


HLL: 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 peoples 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
instanceo Advertising corporate and even product
o Public Relationsexternal and internal
o Media Relations especially the Press
o Customer and Supplier Relations
o Community Relations good corporate citizenship
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ROLE OF ADVERTISING IN FMCG SECTOR

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. Its in this regard that creativity in PR comes to have a lions 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
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ROLE OF ADVERTISING IN FMCG SECTOR

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
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ROLE OF ADVERTISING IN FMCG SECTOR

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 CocaCola, 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.
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ROLE OF ADVERTISING IN FMCG SECTOR

To understand the definition better it in important to know as to who does the word
publics refer to.
Public are o Shareholder
o Customers
o Employees
o 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.
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ROLE OF ADVERTISING IN FMCG SECTOR

Admittedly, even before the emergence of industry, business and government, a public
relation was in practice in peoples 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 HLL:
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.
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ROLE OF ADVERTISING IN FMCG SECTOR

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
organizations 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 much needed by corporations.
Public relations for the government involves mobilizing public support for governments
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 governmentpoliticians and
bureaucratson 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.

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.
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ROLE OF ADVERTISING IN FMCG SECTOR

Government leaders must be kept informed from your side about the organizations
activities and policiesespecially 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 mediaespecially 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 problemsespecially 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
strategybe 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.
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ROLE OF ADVERTISING IN FMCG SECTOR

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 companys 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, Clea, 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 companys products
or services among consumers or other special groups, and generally protecting the
companys 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.

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
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ROLE OF ADVERTISING IN FMCG SECTOR

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.

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ROLE OF ADVERTISING IN FMCG SECTOR

P&G: ADVERTISING STRATEGY:


Community Relation:
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:
P&G Chemicals is committed to providing your business with consistently highquality oleo chemicals.

P&G Commercial products:


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

P&G Electronic data interchange (EDI):


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:


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.

P&G legislation & regulatory:


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

Retail customer:
The Retail Customers group assists the Company's trade partners and
representatives of retailers.
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Suppliers:
For current and prospective suppliers, P&G provides a Supplier Portal Web site
that offers easy access to a variety of information.

P&G External business development:


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

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ROLE OF ADVERTISING IN FMCG SECTOR

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.

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ROLE OF ADVERTISING IN FMCG SECTOR

METHODS OF DATA COLLECTION: PRIMARY DATA


o Market Survey
o Personal Interview

SECONDARY DATA
o Magazines
o Internet
o 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.

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DATA ANALYSIS & INTERPRETATION


YEAR

Sales in Cr

2002-03

10667

2003-04

9954

2004-05

10139

2005-06

8828

2006-07

11060

Year wise net sales of FMCG Companies by advertising


Graphical Representation:

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ROLE OF ADVERTISING IN FMCG SECTOR

YEAR

Expenditure in Rs (Cr)

2001-02

824

2002-03

842

2003-04

760

2004-05

836

2005-06

1008

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


Graphical Representation:

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ROLE OF ADVERTISING IN FMCG SECTOR

YEAR
YEAR

Total
Revenue
Profit
in Rs
(Cr) in Rs (Cr)

2001-02
2001-02

10721
1641

2002-03
2002-03

10038
1755

2003-04
2003-04

10245
1771

2004-05
2004-05

10135
2197

2005-06
2005-06

11193
2400

Year wise Net profit of FMCG


Graphical Representation:

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

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Year wise Total Revenue of FMCG


Activities have shown direct impact on Net profit of FMCG.

Graphical Representation:

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

Respective share of revenue of various segment of FMCG in 2003

Products
Shop & Detergent
Beverage
Foods
Others
Exports

Revenue (%) in 2003


37
11
06
18
28

Graphical Representation:
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ROLE OF ADVERTISING IN FMCG SECTOR

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 HLL in 2004.

Respective share of revenue of various segment of FMCG in 2004


Products

Revenue (%) in 2004

Shop & Detergent


Beverage
Foods
Others
Exports

37
10
03
18
32

Graphical Representation:

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ROLE OF ADVERTISING IN FMCG SECTOR

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 2005


Products
Shop & Detergent
Beverage
Foods
Others
Exports

Revenue (%) in 2005


32
10
07
16
34

Graphical Representation:
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ROLE OF ADVERTISING IN FMCG SECTOR

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

FINDINGS

Following Are the Findings of My Study on this Topic:


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
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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 companys 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 HLL. The fact that should be acknowledged on the basis of current
trends betrayed by this segment tells us that HLL 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 HLL 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
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ROLE OF ADVERTISING IN FMCG SECTOR

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 HLL is the market leader even though its capable of
manufacturing and marketing a vast range of products with an international consumer
base. Moreover, the tie-up of Prima India with HLL 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 HLLs presence in the
global market, it points to a healthy flexibility in the companys fundamental approach.

Another very striking aspect of HLLs 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.

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

DETERGENTS (SURF EXCEL):


o 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):


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ROLE OF ADVERTISING IN FMCG SECTOR

o 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.
o 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):


o 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 HLLs sales much higher.
o 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.

o FOCUS ON GIRLS:Boys seem to be using Clinic Plus more than the girls. Its very
surprising. Its the girls who use Shampoo more frequently than boys
hence there is development potential

ICE- CREAM:
VENDING Kwality Walls can expand its reach to the consumers by
setting up counters at departmental stores (like Nilgiris), shopping malls etc.
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ROLE OF ADVERTISING IN FMCG SECTOR

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 Kwality Walls family of
ice cream.

APPENDIX
Name:
Age (years):
Sex: Male/Female
Respondent: Advertising Manager/ Retailers

1) Do you like advertisements?

Yes/No

2) Can you buy a product which is not much advertised?

Yes/No

3) How advertising benefits you as a customer?


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ROLE OF ADVERTISING IN FMCG SECTOR

(Rank them)
Create awareness
Educate about new product & its uses.
Supports your purchase decision
Illustrates Companys brand image
Conforms product quality

2) Do different media play role in changing customers perception regarding the


product?
Very much/ to such extent/ Not at all/ cant say.
3) In your opinion which is the best media to communicate advertisement?
Outdoor (posters/bill boards/vehicle)
Print
TV
Film
Radio
Direct mail
Window display in shops
Specialty(dairies/calendars)
4) Do you think celebrity advertisement is working or useful?
Very much/ to such extent/ Not at all/ cant say.
5) Do you think advertising is a social waste?

Yes/No

6) What is the disadvantage of advertising in your life?


(Rank them)
It multiplies your need
Amount spend on advertising increases your product
It create brand monopoly
Most of them undermines ethical or esthetic values
Corrupts the mind of youngsters.
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ROLE OF ADVERTISING IN FMCG SECTOR

BIBLIOGRAPHY

www.google.com

www.indiainfoline.com

www.hll.com

www.unilever.com

www.magindia.com

www.agencyfaqs.com
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www.adage.com

http://en.wikipedia.org/wiki

www.aaaindia.org

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