ONLINE BRANDING OF FMCG

A project report submitted in Partial fulfillment of the requirement for the degree in Bachelor of Business Administration

BY: NIDIP GARG 3029 TY-A

FEBRUARY 2011 SYMBIOSIS CENTRE FOR MANAGEMENT STUDIES (UG) SYMBIOSIS INTERNATIONAL UNIVERSITY , PUNE

ACKNOWLEDGEMENT
Dissertation helps every management student to get the insight of the thesis they are planning to do. I take this opportunity to thank SCMS(UG) for giving me an opportunity to be associated with an esteemed organization. I would like to thank everybody in the organization, who were directly or indirectly associated with the project.

I would like to thank my Project guide Mrs Soma Kulshrestha for mentoring and guiding me throughout the project. I would like to acknowledge the inputs and learning received from her. I would like to thank her for helping me to get a clear understanding of the project in its early stages.

I would also like to thank all the respondence of Pune to help me completing the project.

CERTIFICATE

This to certify that the Research work incorporated in the report Online Branding of FMCG Products is a bonafide work done by Mr. Nidip Garg.

It was carried out by the candidate under my guidance and supervision. The materials from other sources have been duly acknowledged by him / her in the research report.

This work is submitted in partial fulfillment of the requirement for the degree Bachelor of Business Administration in the academic year 2010-2011.

Dr. Anupama Suresh Director, SCMS(UG)

Mrs.Soma Kulshrestha Project Guide

Place:

Date:

STUDENTS UNDERTAKING
I Mr. Nidip Garg hereby certify that the Research work me. The materials from other sources

incorporated in the report Online Branding Of FMCG Products is a bonafide work done by have been duly acknowledged by me in my research report. This work is submitted in partial fulfillment of the requirement for the degree Bachelor of Business Administration in the academic year 2010-2011.

Signature

:__________________________________

Name of the student :________________________________ Division Exam Seat No. Date :__________________________________ :___________________________________ : __________________________________

ABSTRACT
This research paper is to study in details how the online branding of FMCG products is rising and what is its scope in the future. Marketing for any product has a key role to play in its success or failure . Thus it is essential to have the right marketing mix for a product . Online branding being a new concept has to be analyzed with its merits and demerits. Having captured one bastion after another, the communication revolution is now all set to change the way people do business. Its amazing how the business environment has changed dramatically in the last two decades. Who could have imagined the world would become such a small and dynamic marketplace where one can transact Business or receive information with little or no human interface? Who could have imagined that a sellers market would soon become a well-informed buyers market? Who would have expected such tremendous pressure on manufacturers and suppliers to optionally balance costs, quality, price and time, and remain competitive at the same time?. In todays context, information technology and business processes have a truly recursive relationship with strategy and processes being driven more by the new possibilities that the Internet opens up on a regular basis. FMCG accounted about 20% of total online advertisement spending in India. Consumer durables companies are also coming and accounted 15% of total online advertisement. Share of media

sector is about 10% and rest comes from other. In India, most popular form of online advertising is banner advertising. The reason, it is easy to create, place and use. E-mail advertising follows it.

TABLE OF CONTENTS
Contents
CONTENTS....................................................................................7 1.1 INTRODUCTION TO FMCG SECTOR:..........................................10
FMCG INDUSTRY ECONOMY...............................................................................10 COMMOM FMCG PRODUCTS...............................................................................11 MARKET POTENTIONAL of FMCG INDUSTRY........................................................11 LEADING FMCG COMPANIES...............................................................................11 FMCG INDUSTRY IN INDIA, SCOPE AND GROWTH PROSPECTS of FMCG SECTOR....11 GROWTH PROSPECTS:.......................................................................................12 INDIAN COMPETITVENESS AND COMPARISON WITH THE WORLD MARKETS :........13

1.2 INTRODUCTION TO ONLINE MARKETING:..................................16

INTERNET`S ENTRY INTO THE ADVERTISING WORLD...........................................16 INTERNET ADVERTISING BUILDING FMCG BRANDS..............................................19 FMCG BRANDS..................................................................................................19 TAKING SHARE FROM TRADITIONAL MEDIA........................................................20 MATURING ATTITUDES: HIGHER vs. LOWER SPENDERS........................................20 KEY FINDINGS..................................................................................................21 WHY FMCG PRODUCTS SHOULD BE MARKETED ON WEB ....................................24

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How do you know that when your ad is running on prime time TV most people are not in the toilet or have not switched channels to deliberately avoid the commercial break as many people in fact do? .................................................28

2.1 ADVANTAGE ONLINE: .............................................................28

ONLINE WORKS BETTER:.................................................................................30 FOLLWING THE US EXAMPLE.............................................................................30 VIABLE FOR AD AGENCIES :...............................................................................31 PROCTER & GAMBLE :.......................................................................................32

2.2 FMCG CONSUMERS HEAD ONLINE FOR RESEARCH :..................33 3.1 OBJECTIVE:............................................................................35
.......................................................................................................................35

3.2 EXPLORATORY RESEACRH:.....................................................35

(A). SUNSILK GANG OF GIRLS............................................................................35 1. BACKGROUND:..............................................................................................35 2. STRATEGIC INSIGHTS:...................................................................................36 3.PLATFORM FOR SELF EXPRESSION..................................................................37 (B). HINDUSTAN UNILIVER LTD. : DOVE..............................................................38 OBJECTIVE:.......................................................................................................38 CAMPAIGN........................................................................................................38 (C). AXE DEODRANT : ........................................................................................................40 (D).ONLINE SELLING OF FMCG PRODUCTS FROM IM-PROMOTIONS:......................41

3.3 RESEARCH DESIGN:................................................................42

(A).DATA COLLECTION DESIGN:.........................................................................42 (B).DATA COLLECTION FORMAT:........................................................................43

3.4 SCOPE:.................................................................................. 44 4.1. ONLINE MARKETING BOOST YOUR BUSINESS & REACH TARGET AUDIENCE...................................................................................44

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INTERNET MARKETING: ....................................................................................44 SEARCH ENGINE OPTIMIZATION :.......................................................................45 ARTICLE SUBMISSIONS:.....................................................................................47 BLOGGING: ......................................................................................................47 SOCIAL NETWORKING:......................................................................................47 MAINTENANCE OF SEARCH ENGINE RANKINGS: ..................................................48

4.2. (A). SECONDARY ANALYSIS:...................................................48

4.2.1. SUNSILK GANG OF GIRLS:........................................................................48 MAJOR MARKETING EFFORT MAJOR RESULTS...................................................50 LOTS OF BLOGGER COMMUNITY.........................................................................51

4.2.2. HINDUSTAN UNILIVER LTD.: DOVE AND YAHOO! INDIA:.........54

DOVE HAIRCARE:..............................................................................................56

4.2.3. AXE DEODRANT:.................................................................58 AXE LAUNCHES MULTI-PLATFORM MARKETING CAMPAIGN, MOBILE INCLUDED :.................................................................................58 4.3 (B). PRIMARY ANALYSIS:........................................................64
QUESTIONNAIRE:..............................................................................................64

4.3.1.ANALYSIS OF DATA:............................................................67 4.4. FMCG BRANDS ONLINE:.........................................................73 4.5.KEY FINDINGS:.......................................................................75 BIBLIOGRAPHY:...........................................................................82

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CHAPTER 1 - INTRODUCTION
1.1 INTRODUCTION TO FMCG SECTOR:
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) is those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management.

FMCG INDUSTRY ECONOMY

FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufactures is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2012. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP).

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COMMOM FMCG PRODUCTS

Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc.

MARKET POTENTIONAL of FMCG INDUSTRY

Some of the merits of FMCG industry, which made this industry as a potential one are low operational cost, strong distribution networks, presence of renowned FMCG companies. Population growth is another factor which is responsible behind the success of this industry.

LEADING FMCG COMPANIES

Some of the well known FMCG companies are Sara Lee, Nestl, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc

FMCG INDUSTRY IN INDIA, SCOPE AND GROWTH PROSPECTS of FMCG SECTOR

The Indian FMCG sector with a market size of US$13.1 billion is

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the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2012. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2010 to Rs 92,100 crores in 2012. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue.

GROWTH PROSPECTS:
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense

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possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2011, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.

INDIAN COMPETITVENESS AND COMPARISON WITH THE WORLD MARKETS :

The following factors make India a competitive player in FMCG sector:

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Availability of raw materials , Because of the diverse agroclimatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.

Labor cost comparison

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Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.

Presence across value chain

Indian companies have their

presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the foodprocessing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.

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1.2 INTRODUCTION TO ONLINE MARKETING:

INTERNET`S ENTRY INTO THE ADVERTISING WORLD
Having captured one bastion after another, the communication revolution is now all set to change the way people do business. Its amazing how the business environment has changed dramatically in the last two decades. Who could have imagined the world would become such a small and dynamic marketplace where one can transact Business or receive information with little or no human interface? Who could have imagined that a sellers market would soon become a well-informed buyers market? Who would have expected such tremendous pressure on manufacturers and suppliers to optionally balance costs, quality, price and time, and remain competitive at the same time? The world has moved from an industrial to a service economy, and now to a knowledge economy. In todays context, information technology and business processes have a truly recursive relationship with strategy and processes being driven more by the new possibilities that the Internet opens up on a regular basis.

ONLINE SCENARIO

ADVERTISING

IN

THE

INDIAN

The share of India's online advertising in world pie is almost

17

negligible. But developing countries like India; where Internet users are growing very rapidly, it has huge potential. Indian companies are also showing keen interest in promoting their products or services online.

Currently finance sector is most dominating sector in online advertising and accounted about 40% of total online advertising in India. Some of the leading companies from this sector are HDFC, ICICI, Citibank, SBI, and UTI etc. FMCG goods have just started to come in led by companies like Hindustan Lever, Procter and Gamble etc. FMCG accounted about 20% of total online advertisement spending in India. Consumer durables companies are also coming and accounted 15% of total online advertisement. Share of media sector is about 10% and rest comes from other. In India, most popular form of online advertising is banner advertising. The reason, it is easy to create, place and use. E-mail advertising follows it. India has to cover a lot of grounds to come up to the level of online advertising as, say, a country like U.S. There are many stumbling blocks in the growth of online advertising in India like, psychological fears of IT, high cost, low education and above all low awareness level. Still many Indian companies are hesitant,

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anxious and doubtful about the potential it offers. Unless these are dealt with online advertising can't really take off in India. The survey estimated that the value of Internet Advertising has been double to Rs 450 crore in2010, and is valued at Rs 2,250 crore by the end of 2010, and thus increasing 10 times from 2008. This means it will overtake spends on radio, cinema and outdoor advertising in two years. The report adds that of the Rs 210 crore was spent on Internet Advertising in 2008, display advertising contributed Rs 117.6 crore, classified was Rs 50.4 crore and search was Rs 42 crore. It estimates classified advertising to be the key driver of growth with a Rs 900 crore contribution (out of the total Rs 2,250 crore) by 2009, followed by searchs Rs 742.5 crore, and display advertising bringing in Rs 607.5 crore. This is by far the most optimistic estimate of online advertising in India made by any research agency. The IAMAI estimated in 2008 that Internet Advertising would grow at 40 per cent and reach a value of Rs 750 crore by 2012. The FICCI-PWC reported in March 2010 that puts the figure at Rs 950 crore. Internet penetration in India is estimated to have grown at an average of 60 per cent between 2000 and 2008. Yet, it is difficult to believe that online advertisers, a reluctant lot, will change their mind enough in two years to multiply their spend by 10.

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INTERNET ADVERTISING BUILDING FMCG BRANDS

Advertisers forecast that online will represent a growing share of their overall media budgets over the next two years, especially within the FMCG sectors. The EIAA Marketers Internet Ad Barometer, commissioned by the EIAA to understand the role online advertising plays and attitudes towards the Internet amongst key advertisers across Europe, reveals that 42% of those questioned already spend over 5% of their media budgets online and 74% of all those surveyed regard the internet as a vital component of their advertising strategy. According to 80% of respondents, increasing broadband penetration is making the Internet more attractive as a branding medium and online ad spend is forecast to rise by over 65% by 2011.

FMCG BRANDS
FMCG brands are demonstrating strong signs that they are embracing online. The research showed that the percentage of overall media budgets devoted to online are forecast to rise from 5.6% in 2005 to 9.8% in 2011 - a massive 75% growth rate. Internet advertising expenditure will experience a boost by both the higher and lower spenders of the sector over the next two

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years, with the higher spenders stating that 64% of this extra spend has come from other media budgets and 57% of respondents claiming the spend has been diverted from TV advertising.

TAKING SHARE FROM TRADITIONAL MEDIA

The research reveals that online is chipping away at the heartlands of the advertising market, especially amongst the higher spenders. FMCG companies are siphoning spend from TV advertising while Entertainment and Consumer Electronics companies are reallocating budget to online primarily from TV and print. Travel is also diverting ad spend from print while Automotive advertisers are taking share from across the media board.

MATURING ATTITUDES: HIGHER vs. LOWER SPENDERS

The survey highlighted other marked differences between those who already spend significantly online (6+% of media budget) and those who are catching up (1-5%). The lower spenders are driven primarily by increased use of the Internet while the higher spending online advertisers place greater importance on the

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mediums reach and share of voice. Higher spenders are also more than twice as likely to view Internet advertising as essential to their overall advertising strategy and see online as having a greater influence on sales, intent to purchase, profitability and market share.

KEY FINDINGS

Online ad spending expected to grow substantially by 2011. FMCG and entertainment brands planning significant online spending. Advertisers diverting spend from TV and print media to online. Online terminology and campaign measurement no longer perceived as huge barriers.

HOW INDIAN COMPANIES USE INTERNET FOR MARKETING THEIR PRODUCTS ?

Most Indian companies are opening to marketing on the internet. Although there is a very visible penetration of performance led marketing initiatives, there is also brand-centric communication

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across industries which do not gather too many headlines. The typical activities include;

Search Engine Marketing: Most big brands here Banners on Horizontal sites: Most FMCG cos. find a direct fit here, although it has a very high spill-over Ad Network buys: Easy one-stop ad buy solutions Sponsorships of properties: This works well for specialized sites and topical campaigns

Additionally, the main stream mentality of 'Dikhna Chahiye' (Should be seen) is fading away and should give way to more intelligent campaigns based on:

Reach Banner Size and position on page Creative differentiation Ecommerce capabilities of distribution

There are different ways

1.

They put up the display banner of their products & services on a Website which is very popular and caters to huge hits. Generally these websites charge the company on the hits. Other is through Google Ad-words. The proposition is costly, but has great results.

2.

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Networking - This is possible through initiating any discussion on common platform like - LinkedIn or other blogs which is a soft selling approach.

The FMCG products are used by every one today. That means that there is a great scope for the newcomers and for the old veterans to try the market with their own FMCG products. This has given rise to very healthy competition and there are various strong brands in the market. These brands are using the FMCG products to make huge profits and they are fighting hard with the other brands to capture the market. The FMCG brands need to have a credibility and trust. They need this because they are not alone in the market and every product has hundreds of replacements. If the brand is not trusted by the public, another brand will capture that market instantly. Not only the FMCG manufacturers need to play a role but all the other parties also need to play their role. The wholesaler and the distributors must also play his role by ensuring the supply and by promoting the brand locally and privately. They can do so by launching their private brand labels. The FMCG manufacturing companies use various tactics to strengthen their brands. Here are a few of those techniques and tactics which are generally used by the FMCG companies. TV Advertisement: The FMCG companies use the TV to their advantage. They are using the advertisement opportunities to

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make the full use of its audience. The manufacturers devote a huge budget for the TV advertisement purpose. Online Advertisement: The other form of advertisement that is commonly used by the FMCG companies is the online advertisement. The companies advertise on the internet to strengthen their brand and tell people the benefits and the advantages of their products. Print Media: There were times when the print media was considered best for the FMCG advertisement. But even today a healthy budget is spent on that aspect of advertisement.

WHY FMCG PRODUCTS MARKETED ON WEB

SHOULD

BE

You need to market FMCG products on the internet because these are brands that rely on the relationships they have formed with their consumers.

When you buy your favorite brand of peanut butter, yoghurt, milk, washing up liquid it is because you feel a familiarity with your chosen brands - it is a relationship based on trust developed out of years of quality delivery. You might say these brands have become like familiar friends you wouldn't want to lose.

The challenge is for FMCG marketers to develop and maintain

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these relationships with their loyal market base and not to let them stray to other, more innovative, maybe new, brands on the block. According to Andy Taoushiani, MD Artifact Advertising and head of the Artifact Group, this is where they see marketing on the internet being vital for FMCG brands.

Artifact Advertising's digital marketing company, Artifact Online, views the integration of online marketing activities into a typical FMCG marketing mix as such: TV/ radio/ print - selling your product to a mass audience that fits your demographic, driving the consumer to the store.

In store Marketing - making sure you grab the consumer in the aisle and close the sale at point of purchase Online marketing - a tool to establish, reward, and revitalize the relationship your consumers have with your brand. A tool to encourage those consumers to interact with you and entrench their loyalty to your brand.

Apart from the obvious big players, for example Coke and Nike who have been active on the internet for years, it was interesting to see a recent example of a South African brand effectively using this channel as part of their marketing mix.

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Pyotts Pro-vita recently launched an interactive website with a build a sandwich and useful BMI calculator - www.provitta.co.za. Pyotts has also launched a fun party website which invites you to create your e-vites online and manage your RSVPs to any party see www.partywithpyotts.co.za.

Pro-vita consumers should be impressed by their innovation and would hopefully remember to visit the party site to create e-vites for their next function as this is a tool worth using.If other brands were to concentrate efforts in store, using traditional media, email campaigns and sms communication to drive consumers to an interactive fun site and reward them for doing so, then they would be entrenching loyalty amongst a significant segment of their consumer base.

A solid online media campaign on South Africa's high traffic sites would also ensure they reach a significant number of new consumers. The reach of these sites should not be underestimated.

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CHAPTER 2 - REVIEW OF LITERATURE

If you listen to the skeptics, youd think there is no point to online advertising. But visit online magazines and portals worldwide, and youll see the ads of some of the most successful companies in the world. Names like City, Compaq, Dell, Ford, GE, IBM, Intel, Merrill Lynch, Microsoft and Toshiba keep cropping up on banners, vertical ads and stamp ads. These big companies go for online advertising because it makes business sense. Most Indian companies have missed the advantages of online advertising. This is partly because of the confusion created by the dotcom rush. That has passed with the complete shakeout of the fly-by-night operators and the well-funded ventures built on shaky business plans. Many companies have, inadvertently, been swayed by print and TV media propaganda proclaiming that the success of online advertising must be measured by clickthroughs. At domain-b.com, Indias first and biggest online business magazine, we refused to accept payment on the basis of clickthroughs. We told potential advertisers and ad agencies, If you can convince The Times of India or India Today to accept payment by the number of coupons filled up and submitted, or

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Star TV or Sony to accept payment by the number of calls to the advertisers call centre, well gladly accept payment by clickthroughs. They say, if you dont go by clickthroughs, how do you know whether people actually notice your banner ad on a website? By the same token, how do you know whether people have actually noticed your ad in The Economic Times or Business India if they havent filled up coupons and sent them to you? Most readers may not even have opened the page on which your ad has appeared.

How do you know that when your ad is running on prime time TV most people are not in the toilet or have not switched channels to deliberately avoid the commercial break as many people in fact do?

2.1 ADVANTAGE ONLINE:

Online advertising has an advantage over the TV and press ad campaigns. While the good TV ad arouses curiosity, and the effective print press ad offers a little more information, the impact gets dissipated over the days. When people are actually ready to buy, your campaign may be off and a rivals campaign may be on, and your potential customers have no way of retrieving your earlier ads. Advertising bookings for online advertising are usually made for entire months or quarters if not for an entire year. The ads can be

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seen every day and every hour of the day or night during the period for which the booking is made. There are online media in India that are powerful vehicles for your advertising message sites like indiatimes.com and rediff.com for a general audience, especially NRIs, and for mass/FMCG products, domain-b.com for a premium business and investor audience, specialized sites like prdomain.com to address media persons and investors. Are you missing an opportunity? A myth was created in the advertising community that online advertising made sense only if you got lots of immediate purchases or enquiries or at least clickthroughs from the ads to your website.

This myth was based on a complete lack of understanding of how advertising including offline advertising works. Global leaders like Intel, Microsoft, IBM, and City have found it worthwhile doing online advertising even though there is no relation between online ad spend and clickthroughs. By 2012, Forrester Research expects, companies like Procter & Gamble will spend as much as 23 per cent of their marketing budgets on Internet ads. In India, companies like ICICI, City, and others have exploited the online medium to strengthen their branding. They are in a minority. Thats because of wrong perceptions about how to

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measure the success of online advertising.

ONLINE WORKS BETTER:

A February 2001 Morgan Stanley report suggests that even the much-maligned banner ad is more effective at generating brand recall and brand interest than ads on TV or in magazines or newspapers. According to the report, consumers show a 27 per cent greater ability to recall a brand after seeing an Internet ad than earlier compared with a 26 per cent increase with magazines, 23 per cent with newspapers, and 17 per cent with television. Whats more, advertisers are finding that the cost of advertising online is considerably lower than advertising in other media. Morgan Stanleys analysis shows that the price of online advertising works out to about $3.50 per thousand ad impressions or page views (also known as cost per mille, or CPM), for sites with broad general audiences and about 10 or 20 times that amount for sites with more desirable audiences. The corresponding rates are $19 for daily newspapers and $16 for prime time TV.

FOLLWING THE US EXAMPLE

While Indians adopted the internet quickly, most Indian business groups have so far learned only very superficially from their American counterparts. Most Indian corporate and product websites are streets behind those of leading American companies. Indian companies are equally backward in their approach to online

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advertising. There is, generally, much confusion about the internet. The confusion is perhaps an effect of the dotcom disaster. While it was necessary to reject and debunk the hype created by the dot comers, most Indian companies ended up throwing the baby out with the bathwater. Confusion was also caused by some half-baked learning from America. An example is the talk of web visitors reluctance to click on banner ads to reach advertisers sites. American companies quickly learnt how to analyze problem and how to deal with it. Indian companies have generally missed out on the opportunity. According to PricewaterhouseCoopers, American advertisers spent $8.2 billion online in 2000. Which is impressive compared with the $11.2-billion advertising on cable TV, which has been around much longer, and far better than the $1.8 billion on outdoor advertising. The key thing is that online audiences are growing. So is the amount of time people spend on the Internet both at home and at office. Advertisers know they have to be where the audiences are.

VIABLE FOR AD AGENCIES :

Advertisers have also become more aggressive and innovative in their online campaigns as users realize they can only get free information if it is subsidized by advertising. You now find

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popups, flash animations, interactive banners, superstitials (TVstyle ads that pop up and play 20second animation or video) and larger-format ads that you cannot miss. This, in turn, has made previously reluctant advertising agencies more willing to support online advertising. Thats because they can charge more for the new-style ads than they could for static banners. In the US, for example, the average banner ad costs less than $10,000 to create, compared with $340,000 for the average TV spot. The higher cost of the latest media banners makes them more viable for ad agencies to get involved. There is another trend that is contributing to the growing acceptability of online advertising. Advertisers have realized that online ad campaigns cannot remain static, and must refine, refresh and change their ads frequently in order to retain visitor interest. This too means better volumes for ad agencies.

PROCTER & GAMBLE :

There is the example of Procter & Gamble in the US, which got IRI to measure the impact of online advertising on later sales. It found that over a 16-week period, online advertising banners resulted in a 19 per cent growth in sales for its snack food brand. This in spite of the fact that the clickthroughs rate was a pathetic 0.27 per cent. The advertising worked because it aimed to increase brand awareness and top-of-the-mind recall rather than clickthroughs.

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There are many examples in which many companies now have realized the importance and impact of blogging and hence now these companies have their own blogs to give information about the products the company deals with. Examples: Coca cola, Pepsis Frito-Lay, Big bazaar, sun silk gang of girls, axe is using social marketing websites, ITC.

2.2 FMCG CONSUMERS HEAD ONLINE FOR RESEARCH :

By: Ben Burrowes, Singapore Published: Apr 02, 2009

Microsoft releases survey findings FMCG consumers search online Claims huge online ad opportunities

Asia - The internet is the most important source for researching food and beverages as well as personal care/grooming products, according to a new FMCG survey. The survey, conducted by Synovate in conjunction with Microsoft Advertising, found that consumers rely on the internet for researching what to buy and 55% often refer to the internet before making a purchase. Consumers are also receptive to online advertising as 44% say online ads play a part in influencing the brands they buy.

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Consumers also spend the most time online, with the average Asia Pacific consumer spending more than 15 hours on the internet for personal reasons, work or study, which far exceeds TV at six hours per week. News (64%) and music (61%) were the two most popular content consumers looked for on the internet and they also like online videos, with 64% watching or uploading videos on a monthly basis. The types of brand activities they are most interested in are online games (37%), health tips (35%) and coupons (32%). The survey captured opinions from 8,000 MSN/Windows Live users from 11 markets across Asia including China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand. "To target FMCG consumers, advertisers need to understand their motivations behind using the internet, and what types of content interest them," Kenneth Andrew, marketing director for Microsoft Advertising, said. "Through our online research, advertisers can indentify

consumers' preferred online consumption habits, thus engaging them in the most effective way across the Asia Pacific." The survey also found that the majority (84%) of MSN/Windows Live users are grocery shoppers for households and almost all (96%) of them are decision makers or have influence in the

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purchase of at least one type of FMCG product. Looking at the online usage habits of MSN/Windows Live users, the study details the interests and online activities of consumers, and the role of online in researching for FMCG products.

CHAPTER 3 - DATA & METHODOLOGY

3.1 OBJECTIVE:
1. To find out the effectiveness of online branding / Marketing of FMCG Products. 2. To find how internet can be leveraged to sell FMCG products.

3.2 EXPLORATORY RESEACRH:

(A). SUNSILK GANG OF GIRLS
1. BACKGROUND:

36

Towards the end of 2002 Sun silk, which was then sponsoring the Miss India pageant, decided to establish an online presence for the Endeavour.

The success of this activity spawned the idea of developing a portal for young girls and soon thereafter the Sun silk Naturals (as the brand was known back then) came into being.

The site at this time was replete with substantial hair and beauty content while prominently featuring Jawed Habib as hair care expert.

This in turn successfully resonated with the target audience paving the way for an exclusive all-girl community that is today widely recognized as Gang Of Girls.

2. STRATEGIC INSIGHTS:
Over the years the website has evolved in its look, tone and core content. However, it has always operated on certain fundamental principles and with a thorough understanding of its TG.

Sun silk gang of girls is an exclusive online community for such like minded girls. The site is built on the philosophy that girls love to gang together to express what they feel. It is a place for young urban women to come and say what they mean.

37

It is founded on three pillars and has been operating on these

since

its

inception.

These

are

self-expression,

interactivity and hair & fashion content. Today the website speaks to the 20 something urban woman found to frequent malls and multiplexes with a love of shopping and a tendency to live life to the fullest. The Sun silk girl keeps up with the latest fashion and trends and would seek these out in magazines, movies and peers. The brand recognizes this and broadly wishes to operate in the space of fashion and style.

3.PLATFORM FOR SELF EXPRESSION

GOG TV enables girls to upload and share their videos. It has features like the Movie maker create her own movie by using pre-shot movie clips. It also features the slideshow maker; where a user can upload pictures and give it various transitions along with background music.

Get Spotted is yet another platform for girls to showcase their talents in performance art, writing etc. and win prizes based on how other users rate their talents.

Furthermore, the Life Cant Wait tools give users a unique and creative space wherein they can express to other users their lifes defining moments as well as their goals and dreams.

The Be a DJ feature in the Rhythm Lounge allows users to express themselves musically they can create their own

38

music

mixes

by

mixing

an

matching

pre-recorded

instrumental tracks.

(B). HINDUSTAN UNILIVER LTD. : DOVE

Client: Hindustan Unilever Limited Name of Agency: Yahoo! India Year: 2008 It has always been a challenge for marketers to use social media to their advantage. With Yahoo! India, HUL got it right with a video-based micro site to promote the Dove Hair care range.

OBJECTIVE:
The objective of the campaign was rather open ended dispel the myth that model-like straight black hair is the ultimate symbol of beauty. The campaign was also to get the dove target group talking about their idea of beautiful hair. The concept was required to generate a huge viral effect that would help generate buzz and hype around the high-profile Dove Hair care launch.

CAMPAIGN

39

Social media was definitely the answer to the client brief the challenge was to leverage it to a proportion that would suit a huge brand like Dove. Thus was born the first milestone the worlds first 'Branded Knowledge Video Search'. Knowledge search as a product is presented on Yahoo! India as 'Answers' a popular forum where users post their questions on virtually anything they want to know and users from around the world answer. The Dove campaign aimed to take this up many levels. First, a section for Dove was created within Answers. This section was then customized with Dove branding and played host to the entire campaign. Completely created and hosted by Yahoo! India, it was the first time a micro site for a brand was created within an existing property. This meant that while the brand was exposed to users in a tailor-made environment, the traffic was generated by an existing property. This ensured quality exposure. In a span of nine days, over 250 women were interviewed and 1000 minutes of footage was recorded. Next came the big one. The Yahoo! India camera crew went across three cities Mumbai, Delhi and Bangalore, and asked women questions on hair care. In a span of nine days, over 250 women were interviewed and 1000 minutes of footage recorded. Responses were hosted on the Dove Promo Site. Questions on hair care were posted on the Yahoo! India Answers site in addition to the video answers. Users could not only view the videos, but post their answers to the Dove questions as well.

40

With everything in place, the big question remained would the Answers user community respond to this effort? The Yahoo! media muscle was flexed with women-targeted ad placements across the site and exclusive Yahoo! home page innovations. The campaign was launched with a big bang on 16th May 2008.

(C). AXE DEODRANT :

Brand Owner: Unilever Category: Pharmaceuticals/ Healthcare Date: Sep 2008 Media Owner: MTV Sites: Face book, You Tube, MySpace. Axe had revamped its entire range of deodorants and introduced New Axe. To create a buzz around the re launched brand and its proposition New Axe gets you more than before, it hit upon the idea of creating a fictitious superstar to embody the Axe effect.To fully enable this idea, it teamed up with MTV India, a channel with a corresponding target audience of 18-24 urban males. The fictional character was named Silky Kumar and launched as a flamboyant yet largely talentless pop star with cheesy dance moves and a constant entourage of beautiful women. Silky arrived on the scene as MTVs Artist of the Month with his debut single Scent of Desire, and sustained the hype through

41

non-branded music videos, fake tour footage, behind-the-scenes vignettes, and viral marketing through YouTube, MySpace and Face book. But the secret to his mysterious sex appeal and stardom was reveled at the end of the month-long campaign MTV aired a news bulletin exposing Silky as a Unilever employee who had snuck into the Axe laboratory to sample New Axe. A fake Unilever press conference condemned the use of New Axe body spray to become an international pop sensation. The campaign was successful in the sheer scale of its

achievement in creating a fake pop superstar to launch a new brand, generating much puzzled buzz in blogs, forums and social networking sites. Ultimately it reaffirmed Axes status as a confidence-building brand for young men via the "Axe Effect" on women. Despite Silkys swift rise and fall, it is the brand that is the hero of the story in the end.

(D).ONLINE SELLING OF FMCG FROM IM-PROMOTIONS:

PRODUCTS

Im-Press Promotions is an online company which sells fast moving consumer goods online. Some of the fast moving consumer goods offered by Im-Press Promotions include sunglasses, towels, slippers, sports bags, soaps, skirts, sports bottles, staplers, stationery kits, stationery, shoulder bags, tissues, tumblers, travel bags, tie pins, trolley bags, trousers, tools, ties, umbrellas,

42

umbrella stands, USB hubs, USB products, USB pens, vacuum cleaner and vases. Im-Press Promotions also offers fast moving consumer goods including wallets, watches, water bottles, web cams, waterman pens, whistle, wrist bands, wrenches, wuppies, wine, wine totes, wind cheater, water foundation, weather stations, and water purifier. Im-Press Promotions also offers various products for online sales which includes vacuum cleaner, VOIP accessories, vehicle graphics, visor clips, voice recorder, video message pens, vests and vest safety hi visibility. Im-Press Promotions also offers stools, staplers, stubby holders, stress toys, sporting goods, sun visors, skipping ropes, slinky, sloppy Joes, shoulder bags, salt & pepper shakers, sand timer, school blouses, scales, scissors, scratchy products and security jackets. Radios, rulers, rain jackets, rugs, reflective markers, rugby tops kids, retractable badge holders and razors.

3.3 RESEARCH DESIGN:

(A).DATA COLLECTION DESIGN:

43

Survey

Method: Telephonic Interview Survey, Personal

Interview Survey, Mall Intercept Survey.

(B).DATA COLLECTION FORMAT:

The questionnaire designed for the survey will be non-disguised and included both structured close ended and unstructured open ended questions. The questionnaire included a mix of structured multiple choice questions, open ended questions, closed ended questions and dichotomous questions. The satisfaction levels of the customers were recorded with the help of a 5 point Likert Scale:

Highly Satisfactory Dissatisfactory

Satisfactory

Neutral

Highly Dissatisfactory

(The reasons for dissatisfaction with any of the services offered were asked with the help of Open-Ended Questions.)

44

3.4 SCOPE:

The geographical scope of the project is restricted to customers situated in Pimpri, Chinchwad, Wakad, Hinjewadi, and Aundh in Pune.

The research will be done in English and Hindi.

CHAPTER 4 - ANALYSIS & INTREPRETATION

4.1. ONLINE MARKETING BOOST YOUR BUSINESS & REACH TARGET AUDIENCE
INTERNET MARKETING:
Internet marketing, also referred to as online marketing or Emarketing, is the marketing of products or services over the Internet. The Internet has brought many unique benefits to marketing including low costs in distributing information and media to a global audience. The interactive nature of Internet marketing, both in terms of instant response and in eliciting response, are unique qualities of the medium. Internet marketing ties together creative and technical aspects of the internet, including design, development, advertising and sales. Internet marketing methods include search engine marketing, display advertising, e-mail marketing, affiliate marketing,

45

interactive

advertising,

blog

marketing,

and

viral

marketing. Internet marketing is the process of growing and promoting an organization using online media. Internet marketing does not simply mean 'building a website' or 'promoting a website'. Somewhere behind that website is a real organization with real goals. Internet marketing strategy includes all aspects of online advertising products, services, and websites, including market research, email marketing, and direct sales.

SEARCH ENGINE OPTIMIZATION :

It has been observed and proven by research that more & more businesses such as yours are seeing great results with online advertising. Millions of people search online each day for products, services & information. Google is the number one choice for all these searches done. Between 85% to 90% of all web site traffic comes from the search engines and directories, use of those handy-dandy submission services that will submit your site to 980 search engines for a mere $19.95 wont take care of this traffic. Just because your site is listed in the search engines wont mean that your customers can find it. But only search engine optimization and positioning strategies that are designed to give the engines what they want and need in order to find your site among your competitors and other sites related to your category. Search engine optimization and positioning is challenging at best. Its not a simple matter of adding a few tags that contain your important keywords. It is an

46

art-and a science-since its is applying creative techniques to an indepth study of the search engines and directories. EO Company is committed to meeting the search engine optimization & positioning needs of your web site and proposes a campaign plan. Meet your SEOP outsourcing needs thoroughly and professionally. The Scope of Work should include site optimization and allied web promotion & development activities, SE-friendly content writing, and submission and tracking to over all major and support Search Engines and Directories. On project completion your web site will be more accessible on the Internet in terms of Top rankings for specific keywords across the major search engines. Search engine optimization (SEO) is an online marketing strategy used to increase a Web site's visibility to the millions of people who find information and services on the Internet. Search engine optimization can help position your firm among the top search results for a given query, which can dramatically increase traffic to your Web site and establish a Web presence for your practice. Among other things, SEO involves optimizing the structure of your site and the text that appears on it, as well as obtaining links to your site from other sites, to help its popularity rating with search engines. With the number of Web sites on the Internet increasing at an exponential rate, gaining primary placements in search engine rankings allows you to market your firm in a very powerful and effective way.

47

ARTICLE SUBMISSIONS:
Effective Internet be structure and a well thought-out search engine succeed. aim. marketing campaign can be the deciding factor in whether your promotions your Writing your article and throwing your mission statement should You need to think up a mission statement that powerfully conveys your message to users is most crucial benefit to a potential client. Your mission statement should be clear and concise. If anyone wants more we can have number of options as well.

BLOGGING:
Blogging is a great way to reach your target audience with your thoughts, opinions, and offerings on relevant topics. Blogging makes sense from a marketing perspective. You'll be leveraging the shift from outbound to inbound marketing and interacting with your customers in new ways. A blog lets you meet your customers more directly than sending out brochures or an email campaign. It changes your website from a brochure that most people look at once to something that people interact with and come back to.

SOCIAL NETWORKING:

48

Communities creation to get more traffic is must for any social media activity . Create communities for your online presence and strive to exist in web world. And most important having online presence is not the ultimate target. What is important is having huge traffic and great page rank. There are lots of communities which drive traffic to your website. Finally traffic will produce business for you. Social Media marketing also engage the customers in generating traffic.

MAINTENANCE OF SEARCH ENGINE RANKINGS:

Regularly monitor the ranks and do the changes required as per the changes in conditions and algorithms of search engines. Changes required on the site, in case any rank is dropped due to changes in search engine algorithms or due to heavy competition.

4.2. (A). SECONDARY ANALYSIS:

4.2.1. SUNSILK GANG OF GIRLS:

The Web is the best medium for Sunsilks audience:

49

Hindustan Lever launched the Gang of Girls website in June 06. Indias first online girl community concept.

"We are thrilled to launch this community as we see it as Sunsilk's defining interface for its consumers." Hindustan Lever executive

Other aspects: group blog, talent show, job discussion board

Prizes for the most posts

50

Site visitors vote on talents

Tie-in with Monster.com

MAJOR MARKETING EFFORT MAJOR RESULTS.

1. Gang of Girls site pushed online and via TV and print.

51

2. Lots of media mentions as successful branded space. 3. Direct contact with target audience. Gang of Girls events at 60 college festivals, malls and multiplexes across India. 4. Sunsilkgangofgirls.com Sunsilknaturals.com. That site had 100,000 registered users and very similar features. 5. Hindustan Lever claims 2,500,000 registrations to Gang of Girls site 6. 25,000 girl gangs 7. 200 million hits 8. 12-13 million page views every month benefited from redirect from

LOTS OF BLOGGER COMMUNITY

52

[a] company taking benefits of new web 2.0 technologies ranging from blogs to power of social networking. You ask for it its all there at sunsilkgangofgirls.com.

As far as brand is concerned plus side for sunsilk here is ability to use power of technology to position brand successful and create following among niche users whom must have generated enough feedback for the brand to understand demographic served. Other brands need to take a cue from here and understand how web can be used as an effective brand delivery/promotion tool.

Hindustan Lever and Unilever have big plans:

1. The concept will soon be relaunched for rural parts of India as Sunsilk Saheli.

Via mobile phones, which have higher penetration than the Internet in rural India?

2. Unilever plans to take Gang of Girls global. The goal is to create the worlds largest online community for girls.

As a practice, all our successes (and failures) are shared globally and we take learnings from them. Hindustan Lever executive

53

Campaign Dates June 2008 January 2009 Campaign UR www.sunsilkgangofgirls.com Results Total Registration 7,16,621 Average Monthly Page Views 30,00,000 Average Monthly Hits 1,20,00,000 Average Monthly Unique Visitors 97,086 Total Number of Gangs 42,586 Average Visit Length 11.06 minutes Client Testimonial "The content of the website has evolved over time since its inception, but the philosophy on which the site was built has remained constant. The site is the place for a 20 something urban girl to come and band together with like-mined girls and express what she feels. Built on the three pillars of selfexpression, interactivity and hair & fashion content, the website continues to successfully communicate with its TG." Sumit Mathur, Brand Manager, Sunsilk Hindustan Unilever Limited

54

4.2.2. HINDUSTAN UNILIVER LTD.: DOVE and YAHOO! INDIA:

Yahoo! India & Unilever Launch Dove Hair Care Products
Yahoo! India joined hands with HULs Dove to launch the Dove Haircare Range in May 2008 and extended it to the off-line model. Unilever Limited has made rapid strides in the area of Social Media. Even as user generated content on the Internet continues to grow in popularity, both companies have extended the model of Yahoo! Answers to an offline format. Yahoo! India joined hands with HULs Dove to launch the Dove Haircare Range in May 2008. Yahoo! India Answers was chosen as the property that would be the launch pad of this initiative and both companies created the worlds first Branded Knowledge Video Search. The Yahoo! hair care. India camera crew In a span went of and across 9 1,000 3 cities over of

Mumbai, Delhi & Bangalore asking women questions on days, 250 women were interviewed minutes

footage recorded. The results of this initiative have been staggering. Launched on May 16, 2008, users spent over 830,000 minutes on the dove promo site of which close to

55

69,000 minutes were spent only on viewing videos. Over 2000 answers were posted by Yahoo! users, making this the largest ever branded campaign on Yahoo! India Answers. Created and hosted by Yahoo! India, it was the first time a destination for a brand was created within an existing property. While Promo the responses were hosted on the Dove

site http://in.promos.yahoo.com/, questions on hair care

were posted on Yahoo! India Answers in addition to the video answers. Users could not only view the videos, but post their answers to the Dove questions as well. Yahoo! India seeks to provide online products and services essential to users lives, and offers a full range of tools and marketing solutions for businesses to connect with Internet users globally. It presents a deep array of communications, commerce and content services that include Yahoo! India Mail, Yahoo! India Search, Yahoo! India Messenger, Yahoo! India Finance, Yahoo! India Chat, Yahoo! India Photos, Yahoo! India Answers, Yahoo! India News and Yahoo! India Search Marketing. HUL is Indias largest Fast Moving Consumer Goods

company, touching the lives of two out of three Indians. HULs mission is to add vitality to life through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition,

56

hygiene, and personal care, with brands that help people feel good, look good and get more out of life. Commenting on the success of this campaign as well as getting brands to leverage on Social Media, Pearl Uppal, Director Sales, Yahoo! India said The success of this campaign is a result of not only Yahoo!s endeavour to deliver the best of the digital world to our clients, but also the faith that advertisers like HUL place in us. While the medium holds great potential and we will continue our role as evangelizer, advertisers remain the key in actually converting our belief into campaign performance. Rahul Welde, General Manager Media, HUL, said The Dove campaign is a fine example of what internet can deliver to the brand. India The exclusive initiative with Yahoo! India also shows and executed a compelling how the power of the internet medium can be harnessed. Yahoo! developed solution in response to what was a very open ended brief. We are very excited with the idea and the results and are looking forward to many initiatives with Yahoo! India.

DOVE HAIRCARE:

57

Yahoo!Helps Dove Haircare to take the brand experience home HUL is Indias largest Fast Moving Consumer Goods company with leadership in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life.

Dove Haircare, a flagship product range of HUL, brings expert haircare to women across the country. They partnered with Yahoo! to bring their product promise come alive in homes in Mumbai and Delhi.

With the objective of getting more and more women to experience the product first hand, Yahoo! ran an exciting campaign leveraging multiple touchpoints - Homepage, Mail and Movies. Yahoo! Homepage alone attracts more than 50% of online

58

women users and Yahoo! Mail and Yahoo! Movies are leaders in their respective categories. The communication urged the online users to invite the Dove Yahoo! team home for a get-together with their group of friends. The occasion was then used for educating the group about hair fall, sharing product information on Dove Haircare Products and also a hair wash to complete the experience.

4.2.3. AXE DEODRANT:

AXE launches mobile included : multi-platform marketing campaign,

Unilever's Axe rolls out a branded iPhone game Unilever's Axe brand is launching the Pogo Xtreme iPhone game in a play to stay relevant and appealing to its male target demographic.

59

Axe tapped Sony, Wild Tangent and rich-media mobile advertising network Greystripe for the multiplatform game initiative, which includes mobile, the Web and console media, as part of a campaign to educate guys about Axe deodorant body spray. This is the first simultaneous multi-platform game release for Axe, Unilever's men's grooming products brand. "To promote their Axe body spray, Unilever is running a campaign to teach guys how to properly use deodorant body spray' by introducing them to the Double Pits to Chesty' move -- a spray under the pits and across the chest," said Michael Chang, CEO of Greystripe, San Francisco. "Axe used Greystripe because the mobile medium can guarantee deep brand engagement, which is difficult to achieve with other types of digital advertising," he said. "In the branded iPhone game, users are prompted to perform a Double Pits to Chesty' when they have collected enough Axe body spray cans and are motivated to keep playing with sexy girl affirmations.' "Unilever wanted to reach males 16-24 in an engaging and enjoyable manner and gaming was the perfect vehicle to do this." Pogo Xtreme takes advantage of the iPhone's tap and tilt functionality Greystripe's product suite lets brands communicate their message to a mobile audience. Publishers gain advertising revenue by

60

serving ads through Greystripe games and consumers play the games for free. Unilever is marketing the Axe Pogo Xtreme game through Greystripe's in-game advertising network. In conjunction with the branded game, Unilever bought both GS.Engagement and GS.Impact branding inventory in Greystripe's network to promote the free game and Axe body spray

Unilever's Axe targets males ages 16-24 "Greystripe is allowing Unilever to reach the iPhone audience both through a branded game and through advertisements throughout our entire network of apps," Mr. Chang said. "This maximizes Unilever's reach and engagement with iPhone users." WildTangent claims more than 30 million unique monthly gamers, offering more than 500 online and downloadable games. The WildTangent games console ships directly on the desktops of PC manufacturers such as Emachines, Gateway, HP and Toshiba.

61

Advertisers serving ads within WildTangent games include 20th Century Fox, Warner Brothers, Paramount, EA, Playstation, Nintendo, Toyota, Honda, P&G, Unilever and Clorox. The Pogo Xtreme iPhone game incorporates Axe deodorant bodyspray with the "Double Pits to Chesty" move -- a spray under the pits and across the chest. Advertising partners, Greystripe and Wild Tangent worked to develop and launch the Pogo Xtreme game on the various platforms, while Sony integrated the Double Pits to Chesty move through one of its characters in the PlayStation game Pain. The iPhone game, developed by Greystripe, is one of the first fulllength, multi-level branded iPhone games. The mobile game is downloadable for free from the App Store. The online game, one of three developed by Wild Tangent for Axe deodorant bodyspray's education campaign, can be played online at http://www.wildgames.com/games/axe-pogo-xtreme. Players of the Pogo Xtreme game can post their scores on social networking sites such as Facebook. Branded mobile games in general -- and iPhone games in particular -- are increasingly popular as a tool for advertisers to engage their audience in a cost-effective manner.

62

In addition to Unilever's Axe ,other brands that have launched and/or licensed mobile games include Campbell's Soup, Burger King, Barclaycard ,Nissan and Hooters . "Branded licensed mobile games have been around for quite a while, but the general impetus behind apps now is giving it new life, and it is a growing trend today," said David MacQueen, London-based director of wireless media strategies for the global wireless practice at Strategy Analytics. "I can understand why brands are interested in doing it, because costs of development are relatively low, and games provide greater engagement and more interaction with consumers than just banner ads," he said. "Games can get across brand values, rather than just sticking a logo in a consumer's face." In addition to free branded games, many free mobile games and applications are being monetized through advertising. In-application advertising has to be working if top-notch brands like Paramount's Star Trek, Nestle's Lean Pockets, the U.S. Navy, Nikon, Kia, Sprint and Yahoo are relying on it (see story). "There are various advertising-supported game systems that are springing up, and Greystripe was one of the early movers," Mr. MacQueen said. "There is a whole host of developers using its platform to deploy ads into mobile games, mostly interstitial ads

63

that consumers see when they load the game up and in between levels. "When brands are gauging ROI, they look at how many downloads each game gets, which simply equates to eyeballs, a conventional advertising measure you can use," he said. "Greystripe is starting to measure not just downloads, but how many times the game is being played and how often users are interacting with the brand. "Some brands allow people to share the games via a send-tofriend mechanism and you can track whether that person become a brand evangelist by spreading the game virally." The bottom line is that more brands are launching free branded mobile games because it's a hot category and they are seeing results. "It's not necessarily a massive expense to launch a mobile game, especially if you're considering it as part of a bigger media campaign," Mr. MacQueen said. "However, you have to provide a high-quality gaming experience, because you don't want users to just play it once and forget about it," he said.

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4.3 (B). PRIMARY ANALYSIS:

QUESTIONNAIRE:

1. 2.

Please indicate your age: 18-24 25-34 35-44 45-54 Gender Male Female

65

3. 4.

How Much time do you spend browsing internet in a day? Less than 1 hr 2-3 hrs 4-5 hrs More than 5 hrs Do you know about internet marketing? Yes No

5. Please name some sites that are used to market products online and please name the product. ___________________________________________________________________ ___________________________________________________________________

6. Does the product get noticed by you while you browse some sites? Yes,Why? ___________________________________________________________ ___________________________________________________ No,Why? ___________________________________________________________ ____________________________________________________ 7. Do you take some time to see the product that is marketed online? Yes, Why_______________________________________________________ ________________________________________________________ No,

66

Why_______________________________________________________ ___________________________________________________________ 8.

You prefer advertisement on:

TV, Why____________________________________________________ Radio, _________________________________________________ Print Media, ____________________________________________ Online, Why________________________________________________ 9. Do you shop products online? Why_ Why_

Yes, why_______________________________________________________ _ No, why_______________________________________________________ _

10. From where do you most often shop or research products online? Work Home Other___________________________________________-

11.

Would you prefer to buy FMCG products online?

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Yes, why_____________________________________________________No, why_____________________________________________________

4.3.1.ANALYSIS OF DATA:
Sample profile:

Graph I: Percentage distribution of age.

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Graph II: Percentage distribution of gender of the respondent

Graph III: Time spent browsing internet in a day

69

Graph IV: Percentage distribution of respondents who are aware of internet marketing.

70

Graph VI: Percentage distribution of sites that are used for online marketing of the products.

71

Graph VII: Percentage distribution of products getting noticed by the respondents while browsing internet.

Graph VIII: Percentage distribution of time spent by the respondents to see the products that are being marketed online.

72

Graph IX: Percentage distribution of respondents who prefer advertisement on different media.

Graph X: Percentage distribution of respondents who shop online

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Graph XI: Percentage distribution of respondents who would prefer buying FMCG products online.

4.4. FMCG BRANDS ONLINE:

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This has been a bit of a head scratcher for a while - can FMCG brands really do anything of great value online with their brands? There are a number of obstacles: FMCG companies are typically organised along productmanagement centres, where teams focus on promoting the quarter's sales of products and brands. This is not very customer-centric, and very far from the 1-to-1 interactive medium of the web. FMCG companies rarely deal direct with their end customers so, like other manufacturers, they don't always know that much about them or how to interact directly with them. FMCG products may be part of life's necessities but they are not necessarily the kinds of things you are drawn to finding out more about on the web. Some FMCG companies are making a good attempt at increasing dialogue and building relationships with their end customers. For instance http://www.kotex.com, http://www.campbellsoup.com, and http://www.pampers.com are really focused on acquiring and retaining customers through increased dialogue, educational content, etc. Kimberley-Clark in Europe has built relationships with their customers by providing them with such educational content and information and by linking them to other consumers via their Huggies Mother and Baby Club at http://www.huggiesclub-uk.com/

75

A good place to start if evaluating what FMCG brands might do online is the Sara Lee site at where http://www.saralee.com/brands_products/all_brands.html Sara Lee. Financial results for each brand are also available. What is most interesting to delve into are the tools, metrics and methods used for calculating ROI on such FMCG brand web sites. Much of this ROI comes through offline sales uplifts driven by awareness and relationships built online. If this is so, a successful business case for implementing an FMCG brand web site should quantify this ROI and propose how it can be measured and substantiated.

you can click through to around 50 FMCG websites, all brands of

4.5.KEY FINDINGS:

Online ad spending expected to grow substantially by 2011. FMCG and entertainment brands planning significant online spending. Advertisers diverting spend from TV and print media to online. Online terminology and campaign measurement no longer perceived as huge barriers. Today when the world is shrinking, the term WEB has become the most common and important word.

76

From the primary research it is proved that today using internet has become part of the daily activities, and large number of people spends a considerable time browsing. More than 50% of the respondents spends at least 2-5 hrs a day browsing, and this can be used by companies as an opportunity to get their products noticed. From the research it is clear that people are aware of online marketing/ branding, 91% is a good number.

Toady people are also aware of different sites that are

used for online marketing of the products like Yahoo! India, India times, rediffmail etcmarketing products online like Dove, Dell laptops etc. Now it becomes the responsibility of the companies to find out sites that are most visited by people so that they can think of marketing their product using those sites.

89% of the respondents say that they notice the

products that are flashed on sites while browsing internet, because they dont expect a product ad while checking your email. The interest in the product is limited to good-to-know Companies should try to make their advertisement in such a way that they are eye catcher attractive and people spend time to watch that Ad.

88% of the respondents say that they spend some time

to watch the ad that is being flashed on the site, If it s a routine thematic from the TV/Radio, time spent is less. However, incase of a funny viral (Happy dent white), an

77

evangelical viral(Dove real beauty), time spent is definitely higher.

Only 14% of the respondent says that they would prefer

advertisement on online as Variety (Computer peripherals), Unavailability in the market(PS2 games), business model(Del Laptops and most of the respondents prefer advertisement of traditional media like TV, print media, radio.

From the survey it is cleat that only 7% of the

respondents shop online and 93% of the respondents dont, which shows that the it is first important to make the people aware of the benefits of online shopping, they would prefer walking down the road to the store/mall and feel, smell and touch the soap/shampoo I am planning to buy.

CHAPTER 5 - SCOPE FOR FURTHER RESEARCH

1. Online marketing is now known to every one. It had become the integral part of the business today. Companies today know the importance of internet and also know how to leverage internet to make it beneficial for the business. 2. Today when the world is shrinking, the term WEB has become the most common and important word.

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3. From the research findings it is clear that in this world today people do spend a considerable time browsing whether search engines, social networking sites etc. and are also aware of the ads that are displaced on the sites. 4. Though today the world is shrinking and the use of internet has become very important for any business to market their product through commercials in different sites, it is important to note that Indian consumers are still way behind or are not fully exploiting the internet to use it for watching the ads or buy products online. 5. Unless some platform is given like sun silk gang of girls, Dove promotion Indian consumers do not take the initiative to take some time and explore the ads that have been posted on different sites to gather information about that product. 6. Apart from digital products like laptops, camera, mobile phones etc, or books, FMCG products are way behind.

7. In order to leverage all the benefits and exploit the internet full fledged it is important for the companies (FMCG sector) to provide platforms as done y HUL: Sun silk, Dove ,Axe, so that the consumers participate in all the activities that have been provided by the company.

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8. This would help the company as the brand awareness would increase and also the customer base with the help of the word to mouth promotion. 9. It would also be helpful if we go to different companies and ask them their plans and activities they intend to do in future by using the ads in different sites and social networking sites like :face book, MySpace. 10. To also do the research on a large scale with a sample

of at least 500 respondents and find there responses and feedback on using internet for marketing and promotion of FMCG products. 11. Find the effectiveness of the research and then we can

generalize the result to over all consumers in India. 12. Companies in FMCG sector should go to the customers

and try to find the barriers in buying the products through internet. This will help them in gaining insights and also ways how to promote or market product online.

CHAPTER 6 - RECOMMENDATION
1. More than 50% of the respondents spend at least 2-5 hrs a day browsing, and this can be used by companies as an

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opportunity to get their products noticed by making them attractive and informative. 2. 91% of people are aware of online marketing/ branding, that is they actually spend time to see the ad and know what the product is and what does the commercial say. Companies should try that the promotional ad should be informative enough that it grabs the attention of the reader. 3. 89% of the respondents say that they notice the products that are flashed on sites while browsing internet. Companies should try to make their advertisement in such a way that they are eye catcher attractive and people spend time to watch that Ad.
4.

Only 14% of the respondent says that they would prefer

advertisement on online as Variety (Computer peripherals), Unavailability in the market(PS2 games), business model(Del Laptops) and most of the respondents prefer advertisement of traditional media like TV, print media, radio. Companies should try to make the people aware of the benefits of the internet and the convenience of buying products online, also they should try and tell the customers the amount of information they get online about the product that is not provided by a 30 sec advertisement in television or radio. 5. In India the online promotion is new and would take 3-4

years for internet to become the main source of marketing products. As the consumers in India need time to adapt to this

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new form of promotion. Companies should keep on trying and work on these lines and try and increase the information to be provided to the customers.

CHAPTER 7- CONCLUSION
Online advertising builds brands. When measured in isolation, online advertising has a positive impact on traditional branding metrics like awareness, message association, etc. Branding exposures Online advertising works in FMCG a category whose adoption of the Internet trails other Industries. Online advertising offers potential benefits like target ability, tracking, deliverability, flexibility, etc. Its important to give a platform to Indian consumers so they can express whatever they feel because Indian consumers are still skeptical about online marketing and online purchase of the product. Companies need to work hard now for few years so as to have a good response from the consumers.

metrics

continue

to

increase

with

additional

From the survey it is cleat that only 7% of the respondents shop online and 93% of the respondents dont, which shows that the it is first important to make the people aware of the benefits of online shopping, they would prefer walking down

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the road to the store/mall and feel, smell and touch the soap/shampoo what they feel like buying. So to change this perception companies need to work hard and provide information about benefits of online or internet. Traditional media like TV, print media, radio etc. have a strong impact on the Indian consumers so deviating them towards online would take 2-3 years of time.

BIBLIOGRAPHY:
http://e-marketingindia.blogspot.com/2011/09/fmcg-keen-oninternet-marketing.html http://www.naukrihub.com/india/fmcg/scope/ http://www.managementparadise.com/forums/archive/index.php/t -146873.html http://www.bizcommunity.com/PressOffice/PressRelease.aspx? i=115781&ai=25353 http://fmcg-marketing.blogspot.com/ http://www.marketing-interactive.com/news/11912 http://comm215.wetpaint.com/page/India+:+Case+Studies http://smm-strategist.com/2009/05/socialmedia/india-onlinestudy-2009/ http://www.icmrindia.org/business%20Updates/micro %20casestudies/Marketing/MCMK0010.htm

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http://www.labnol.org/internet/pressrelease/yahoo-india-unileverlaunch-dove-hair-care-products/780/ http://www.indiaenews.com/pressrelease/20100710/59990.htm http://www.mobilemarketer.com/cms/news/gaming/3789.html http://econsultancy.com/forums/other-topics/fmcg-brands-online? page=1#forum_post_296 http://blogs.siliconindia.com/Anilbhat/Online_Marketing__Boost_Yo ur_Business__Reach_Target_Audience-bid-9y31Lg5i14237722.html