Project Report at DDB Mudra

A study on youth perception and consumption of fashion
1. INTRODUCTION TO ADVERTISING
The term Advertising originates from the Latin word Advert ere, which means to turn the mind towards. The American Marketing Association (AMA) defines advertising as, Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertising is a form of communication whose basic purpose is to give information, to attract attention, to create awareness and finally to influence the buying behavior of consumers. Many advertisements are also designed to generate increased consumption of those products and services through the creation and reinforcement of brand image and brand loyalty. The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful, for these purposes advertisements often contain both factual information and persuasive messages. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages. Advertising, as an effective medium, uses a variety of techniques to create effective advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are created to catch the attention of the viewers. Most winning advertisements would encompass factual information with emotional appeal. The advertising industry has three major sectors. Business or organization which wishes to advertise, Media which provides the medium for advertising and Ad-agency which creates the ad to suit the need of the firm.
PESIT Department of MBA
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1.1 GLOBAL OUTLOOK OF THE INDUSTRY

The year 2012 could not deliver as promised in any industry, and the media advertising industry was no exception, wherein most verticals witnessed a slowdown in growth and fell short of the projected target. With a growth of 5.2 per cent, as opposed to the projected 7.5 per cent growth, the media advertising industry in 2012 witnessed the lowest growth of the decade. All the sectors except print and digital fell short of the projected growth. Television witnessed a flat year; out of home grew by 8.4 per cent, radio by 3 per cent and cinema by 8 per cent. Print grew by 4 per cent, as against the projection of de-growth, while digital grew by 50 per cent. After suffering from a decline in clients advertising budgets during the recession, the Advertising Agencies industry is gaining steam. In 2013, IBIS World estimates that revenue will grow 3.7% to $33.2 billion. This growth comes on the back of 2012, when the industry benefited from the positive impacts of the 2012 Summer Olympics and election season. IBIS World estimates that profit will represent 10.0% of revenue during 2013, up from a low of 3.9% in 2009. With revenue from traditional media declining, many agencies have changed their pricing models to incorporate more competitive strategies. In the past, agencies received a 15.0% commission for the advertisements they placed. Today, many clients look to agencies that can provide incentive-based pricing structures to ensure the best possible results. The changing media landscape has led some to question the role of agencies in the digital age, especially as some firms struggle to harness new media potential. To remain competitive, agencies have acquired specialist units, giving rise to global one-stop advertising shops that handle all types of advertising and marketing services. Such acquisitions, coupled with a difficult operating environment, are expected to cause industry establishment numbers to rise at an average rate of just 0.3% annually to 13,845 in the five years to 2013. The internet has made it possible for everyone to have a voice, causing small market segments to emerge. For example, social networking and new media have fragmented market and population segments. As a result, campaigns that focus solely on traditional media (e.g. TV, radio and print) have lost some efficacy, and advertisers are focusing on social media to promote communication with consumers. PESIT Department of MBA Page 2
Figure 1.1
1.2 INDIAN ADVERTISING INDUSTRY

Indian advertising industry is talking business today and has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in a short span of time has carved a niche for itself and placed itself on the global map.
Facts and figures

The turnover of Indian industry is less than1% of the national GDP of India. In contrast the share of US ad industry in national GDP of USA is2.3%. This indicates a tremendous growth potential for the Indian advertising and marketing industry. The Indian industry is still evolving, as far as the scale of operations and scope are concerned. The global and industry turnover is close to USD 450 Billion annually, while PESIT Department of MBA Page 3
India contributes less than 1.5% of that figure. However Indian Ad industry is the fastest growing industry in the word next to china and Russia. The leading advertisement mediums are newspapers and television, with an almost equal share totaling 75% of the total pie. Magazine advertising constitutes a small share of 3%, while online and digital advertising spend is substantially less than 1% of the total industry turn over. Nevertheless, he spending on digital and online advertisements is increasing at a fast rate of 2.5%. Given the trends of increased internet usage, internet advertising is projected to grow by 32% over the next five years and reach an estimated Rs. 35 billion in 2017. The share of the online advertising too is projected to grow from 2.3% in 2008 to 5.5% in 2013 of the overall advertising pie. The Biggest ad spenders are FMCG companies such as Unilever, P&G, ITC and PepsiCo and automotive companies such as Maruti and Honda. These companies have huge budgets running into hundreds of crores of rupees and therefore, wield tremendous bargaining power over their ad agencies. The emerging advertisement and marketing media in India are mobile advertisements, internet and direct marketing (especially for financial services and FM radio (for local businesses). Rising income levels and consumerism bred from the countrys strong economic growth are creating a growing demand for entertainment. This coupled with technological advancements, policy initiatives taken by the Indian Government that are encouraging the inflow of investment and initiative by private media companies, will prove to be the key drivers for the entertainment and media industry. The industry has been forecast to outperform the economic growth in each year.
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1.3 Advertising Agency

An Ad agency is a service dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce an advertising campaign.
History
The First World War created conditions for the growth of some of the Indian consumer industries. After the war, new British investment followed. The need arose for specialized advertising services. The British India Corporation, a British firm in Kanpur, with a relatively wide range of consumer goods, set up Alliance Advertising Associates Limited. This was probably the first advertising agency in India to provide a wide variety of services. In 1922, Mr. L.A. Stronach, a senior artist of Alliance Advertising, left to start his own agency in Bombay. Thus was born a new type of business enterprise in the service sector in India. There were only 62 advertising agencies in 1958, which increased to 168 in 1978, more than 2.5 times the numbers in 1958. There are more than 500 ad agencies today. The oldest and largest advertisement agency in India is Hindustan Thompson Associates Ltd. The second largest advertisement agency is Lintas. Other major players in the Industry are, 1. Ogilvy and Mather Limited 2. Mudra communications Private Limited 3. FCB-Ulka advertising Private Limited 4. Rediffusion DY&R Pvt Ltd 5. RK Swamy BBDO Private Limited 6. McCann-Ericsson India Limited 7. Leo Burnett 8. Grey worldwide India Private Limited PESIT Department of MBA Page 5
Types of advertising agencies:

Ad agencies come in all sizes, from small one- or two-person shops to large multi-national, multi-agency conglomerates such as Omnicom Group, WPP Group, Interpublic Group of Companies and Havas. Following are major types of advertising agencies that are currently serving the advertising industry. 1. Full Service Agencies A full service ad agency is one that provides a range of marketing services. A full services agency provides services that are directly related to advertising such as copywriting, artwork, production of ads, media planning etc. It also provides such services in respect of pricing, distribution, packaging, product design etc. 2. Modular agencies A modular agency is a full service agency that sells its services on a piece meal basis. Thus an advertiser may commission an agencys creative department to develop an ad campaign while obtaining other agency services elsewhere. Or, an advertiser may hire an agencies media department to plan and execute program for advertising that another agency has developed. Fees are charged for actual work undertaken. 3. In House agencies Those companies, which prefer to have closer control over advertising, have their own inhouse agency. This type is owned completely by the advertiser. It performs almost all functions that an outside advertising agency would perform. There is another version of in-house agency whereby advertiser handles the total agency functions by buying service unit to buy time, space and place the ads. 4. Creative Boutiques These are shop agencies that provide only creative functions and not full service. The specialized creative functions include copy writing, artwork and production of ads, they charge a fee or percentage of full service agencies, and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services.
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The functions of an advertising agency:

To accelerate economic growth and create public awareness To provide a total, professional, experienced service this is very personal by its nature. To take the advertiser's message and convert it into an effective and memorable communication
Services offered by ad agency

1. Total Advertising Services Strategic planning, creative development and media services for advertising, particularly in television, newspapers, magazines and radio; providing the best creative designed to capture the imagination of consumers. 2. Marketing Services Provision of a number of advertising related services, including sales promotion, market research, PR and event marketing. 3. E-Solution Services E-solution services, including system integration services, e-business consulting and customer relationship management (CRM), Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-promotions using the Internet and mobile. 4. Content Business Sales of sponsorship, broadcasting and other rights, and the production and marketing of such media / content as sporting events, films, TV programs, animated content, music and other forms of entertainment. 5. Integrated Media Services Adding value to both clients and media-related companies by offering a wide range of media solution services. 6. Sales Promotion Providing comprehensive sales promotion planning designed to complement mass media and other activities. 7. Event Marketing Assisting clients by providing dynamic vehicles for their messages in the form of on-thespot interactive communications.
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2. Company Profile 2.1 Background and inception of the company

The DDB Mudra Group, a part of the Omnicom/DDB Worldwide Group, is India's largest integrated marketing communications and services network. DDB Mudra Group comprises three agency networks, six specialist agencies and eleven strategic business units which offer their expertise under four disciplines (Media, OOH, Retail and Experiential).
DDB Mudra Group operates out of its offices in fifteen leading cities and is represented in more than twenty other locations, giving it a comprehensive presence across the length and breadth of the country. It has more than 1,100 employees and a reach across 1,75,000 villages, 4000 towns, 3500 schools and nearly 7 million students. Its scope of services run the gamut through Advertising, Media Planning & Buying, Digital & New Media, Data-driven Marketing, Health & Lifestyle, OOH, Retail Design and Visual Merchandising, Navigation Solutions, Experiential Marketing (Promotions, Events, Rural), Trade Marketing, Youth Marketing, Localization Strategy and Design Consultancy. Pre-Media Services, Content Creation,
The Name
Mudra in Sanskrit refers to a body position or a physical gesture believed to have magical powers. The magical power of Mudra is an everyday kind of power. The hand, which is a part of the Mudra logo, is a symbolic expression of the thought that hands that works together to create are hands that deliver. This is the core of Mudras ideology. DDB Worldwide gets its name from its founders Ned Doyle, Mac Dane and Bill Bernbach, the Father of Modern Advertising.
History
Founded in 1980, Mudra has often been described as the original challenger brand of the Indian communications industry. It was the first Indian agency that partnered Indian entrepreneurs and helped build some of the most respected brands. The first Indian agency to be headquartered in a non-metro, to set up a best in class Communications Management School, The first to create a culture of Firsts. PESIT Department of MBA Page 8
Timeline
1980: 25th March - A G Krishnamurthy founded Mudra; Mudra Ahmedabad was born with 15 employees, 500 sq.ft space, Rs40,000 and Vimal as its first client. 25th March is still celebrated across all Mudra offices as Mudra Day. 1983: Launch of Rasna. 1987: Handled Reliance Cup, which was the 1987 Cricket world cup, also Mudra's relationship with Paras Pharmaceuticals began this year, going on to build brands like Moov, Itch guard, Dermi cool, Livon and Recova. 1990- Mudra spread its wings - Delhi, Bangalore, Chennai and Hyderabad operations commenced. o Also Nestle walked in as first MNC client o Mudra signed a collaboration agreement with DDB Needham Worldwide. 1991: Birth of Mudra Institute of Communications, Ahmedabad. 1995: The Mint with the Hole campaign was recognized as The Brand Launch of the Year. 2003: AGK retires from the post of chairman and managing director of Mudra and Madhukar Kamath comes on board. 2004: Mudra won the account for Future Groups hypermarket chain Big Bazaar. 2007: Madhukar Kamath succeeded Srinivasan K Swamy, CEO, R K Swamy BBDO, as the President of the Advertising Agencies Association of India (AAAI). 2008: Rebranding of Mudra; Mudra Groups corporate brand has free the hands from the rigid roundel and replaced the solid red circle with the brush stroke, denoting experimentation, energy and dynamism. 2011: On 31 October 2011, Omnicom announced that it had acquired a majority stake in Mudra Communications.
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Key People
Madhukar Kamath, Group CEO and Managing Director of DDB Mudra Group. Sonal Dabral, the Chairman and Chief Creative Officer of DDB Mudra Group. Pratap Bose, COO, He is also the CEO of DDB MudraMax, Dilip Kumar Upadhyaya, the Chief Finance Officer, DDB Mudra Group. Anurag Bansal- Director Finance, DDB Mudra Group. Ashish Mishra- Managing Director, Interbrand India. Rajiv Sabins, President, DDB Mudra group, Mumbai. Vandana Das, President, DDB Mudra group, Delhi. Mandeep Malhotra, President, DDB Mudra Max. Soumitra Sen, President, DDB Health & Lifestyle. Venkat Mallik, President, RAPP, Tribal DDB India. S. Radhakrishnan, President, Gutenberg Networks India.
2.2 Nature of the business carried

Full Service Agency The function of an advertising agency is to see to it that its clients advertising leads to greater profits in the long run than it could be achieved without the ad agency. Mudra is one such integrated full service ad agency which offers its clients a full range of services in the area of marketing, communications and promotions. These include planning, creating and producing the advertisement, media selection and research. Other services offered include strategic marketing planning, sales training, package design, sales promotion, event management, trade shows, publicity and public relations. DDB Mudra group is composed of various departments; each is responsible to provide required inputs to perform various functions to serve the client.
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Figure2.1
2.3 Vision, Mission and Values

Vision Become number one in all of our business streams by 2020, by leading our clients in achieving remarkable success in market place. Mission Create infectious ideas that influence behavior. The DDB Group has always believed that creativity is the most powerful force in the business. They use creativity to develop ideas that people want to play with, participate in, and pass on, ideas that connect people with people, not just people with brands, ideas that changes peoples behavior and ideas that appeal on an emotional level. Values: Cultivate and worship idea Creativity is at the heart of everything we do. We love our clients and were obsessed with their success We exist because of our clients. We succeed when they succeed. PESIT Department of MBA Page 11
Collaborate to excel Together we can succeed. Unbridled Optimism With our self-belief and can do spirit anything is possible. Fairness and Meritocracy We will be respectful, transparent and honest. Talent without tantrums will be recognized, groomed and rewarded.
Celebrate We create reasons to smile every day, by rejoicing in the success of our people.
2.4 Product/Service Profile

Mudras scope of services run the gamut through Advertising, Media Planning & Buying, Digital & New Media, Data-driven Marketing, Health & Lifestyle, OOH, Retail Design and Visual Merchandising, Navigation Solutions, Experiential Marketing (Promotions, Events, Rural), Trade Marketing, Youth Marketing, Localization Pre-Media Services, Content Creation, Strategy and Design Consultancy. BRAND ARCHITECTURE
Figure 2.2 PESIT Department of MBA Page 12
Mudra Networks
1. DDB Mudra Max DDB Mudra Max (Engagement & Experience) provides multi-specialty expertise to help build brands in the age of convergence. DDB Mudra Max comprises fourteen strategic business units under four disciplines Media, OOH, Retail and Experiential. These SBUs provide clients seamless solutions across a wide array of media touch points. 2. Mudra The original challenger brand agency that built memorable brands for several entrepreneurial ventures over the past three decades, such as Vimal, Rasna, Dhara, Dabur, McDonalds, Peter England and Godrej and many others. The agency has a deep and intuitive understanding of Indian consumers, brands and media and of the brand building needs of entrepreneurs. This along with a customized and collaborative approach has helped it enjoy a legacy of success in building valuable and enduring brands in India. 3. DDB Mudra DDB Mudra, the Influence and behavioral Change agency of the DDB Mudra Group enjoys the combined strength of the Mudra legacy and the DDB global leadership. The agency believes in offering remarkable solutions that make clients more influential through well targeted communications and sharp choice of channels that create an influence cascade.
Mudra Specialist agencies

1. DDB Health and Lifestyle DDB Health & Lifestyle, a specialized practice within the DDB Mudra Group caters to the emerging communication needs of the healthcare industry. Marrying in-depth understanding of the healthcare business with refreshing consumer, doctor and channel insights, it is uniquely positioned to address the communication requirements of the health and lifestyle space. DDB Health & Lifestyle also has a strong track record in the domain of FMHG (Fast Moving Healthcare Goods), developmental communication (social issues & health awareness campaigns targeted at the bottom-of-
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the-pyramid),
pharmaceutical
brand
promotion
&
direct-to-consumer
(DTC)
communication on health awareness as well as hospital branding services. 2. RAPP India RAPP is a new age lead agency with a multi-channel offering and a data driven approach to building brands. RAPP has platforms, tools and processes that provide sophisticated insights and help clients with engaging consumer experiences executed across all relevant touch points. RAPP offers compelling creative business solutions that produce results at the best ROI. RAPP services and capabilities include media agnostic communication solutions, creative services, data analytics, brand planning and research, business and marketing planning, CRM & Loyalty, digital production and tele-services/ customer care. 3. Tribal DDB India It is India's leading full service creative digital agency which offers end-to-end digital branding &marketing solutions. Tribal DDB India specializes in building & marketing brands across the new media spectrum. Its services include Strategic Consulting across Earned, Owned & Bought Media, Technology Driven Creative Execution, Digital Media Planning and Buying, Campaign Optimization & Management, Social Media Innovations and Search Marketing. 4. Gutenberg Networks Gutenberg Networks offers localization and other pre-media services including content creation. This is based on its best-in-class capabilities in operations and project management for integrated communications execution. Its core focus is to provide comprehensive services such as communication globalization, translation, localization across markets and languages. Gutenberg Networks can deliver all communication requirements 24x7. Domains of expertise include E-Learning, Pharma, FMCG, and Technology amongst others. 5. Water Interbrand Interbrand is one of the worlds largest branding consultancies. With nearly 40 offices in 27 countries, Interbrands combination of rigorous strategy, analytics, and world-class design enables it to assist clients in creating and managing brand value effectively, across all touch points, in all market dynamics. Interbrand is widely recognized for its annual Best Global Brands report, the definitive guide to the worlds most valuable brands, as PESIT Department of MBA Page 14
well as its Best Global Green Brands report, which identifies the gap between customer perception and a brands performance relative to sustainability. 6. Tracy Locke India Tracy Locke, is one of the worlds most awarded shopper marketing agencies, it specializes in brand generated retail (physical and digital) marketing programmes designed to drive retail sales. Its focus lies in driving equal value for both the manufacturer of the brand and for the retailer Strategic Business Units 1. Media 2. Prime site 3. Street-smart 4. Clear channel Mudra 5. Prime Way finding 6. Kid stuff 7. Celsius 8. Terra 9. Videoed 10. Integrated 11. Mudra Concrea.
Clients of DDB Mudra Group

The DDB Mudra Group's clients include Aircel, Arvind Stores, Akai, Ashok Leyland, Asian Paints, BPCL, Bank of Baroda, Baxter, Castrol, Cipla, Colgate, Dabur, Emirates, Emami, Federal Bank, Future Group, Gillette India, Godrej, Gulf Oil, HDFC Bank, HPCL, Hindustan Unilever, HP, HUL, IDBI Bank Group, ITC, Jaypee, Jyothy Laboratories - Henkel, ICICI Prudential Mutual Funds, Idea Cellular, Johnson & Johnson, LIC, Lavasa, L&T, McDonalds, MSD, Malayala Manorama, Mother Dairy, Nestle, Nirmal Lifestyle, Novartis, PepsiCo, Peter England, Philips Healthcare, Policybazaar.com, Reebok, Rotomac, Sab Miller, Shell, Star India, Standard Chartered Bank, Symphony, Tata Communications, Tourism Australia, TTK Prestige, UNICEF, Union Bank of India, United Spirits, Videocon, Volkswagen, Western Union, World Gold Council, Worldwide Media, Wipro, Wrigley, YOU Broadband and Zydus. PESIT Department of MBA Page 15
2.5 Area of Operations

DDB Worldwide, A part of Omnicom group Inc, one of the world's largest advertising holding companies operates in more than 200 offices in 90 countries with over 13,000 people and over 5000 clients. The community covers an array of disciplines like Advertising, Media Planning & Buying, Digital & New Media, Data-driven Marketing, Health & Lifestyle, OOH, Retail Design and Visual Merchandising, Navigation Solutions, Experiential Marketing, Trade Marketing, Youth Marketing, Localization Pre-Media Services, Content Creation, Strategy and Design Consultancy. Its main agencies include the following -all offering an array of services. DDB Corporate, USA Alma DDB, Chicago DDB remdedy, San franciso DDB Brasil Sao Paulo, Brazil DDB Melbourne Pty, Australia DDB Mudra group, India DDB Japan, Tokyo, Japan DDB China, Beijing DDB Dubai, UAE DDB Europe, Paris, France DDB tribal Berlin, Germany
DDB Mudra Group, India Ahmedabad Mumbai Delhi Kochi Bangalore Kolkata Chennai
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2.6 Ownership Pattern

DDB Worldwide Communications Group Inc., known internationally as DDB was started in 1949 by three enterprising gentlemen, Bill Bernbach, Ned Doyle and Maxwell Dane. It is owned by Omnicom Group Inc, one of the world's largest advertising holding companies, the owners of the international advertising agency groups Doyle Dane Bernbach, Needham Harper and BBDO merged their share holdings in 1986 to form the holding company Omnicom. At that point Doyle Dane Bernbach and Needham Harper merged their worldwide network agency operations to become DDB Needham. Since 1996 that network has been known as DDB Worldwide. The Indian division, DDB Mudra group was founded by A G Krishnamurthy in 1980, with a capital of Rs. 40,000 as Mudra Communications. On 31 October 2011, Mudra group was acquired by Omnicom Group, subsequently rebranded as DDB Mudra group and merged with DDB Worldwide. This represented a natural culmination of a partnership process that began in an informal way in 1988 with DDB Worldwide and led to Omnicom acquiring a 10% stake in Mudra in 1993.
2.7 Competitors Info

Ogilvy and Mather Limited:- Headed by Mr. Piyush Pandey
The most local of the internationals, the most international of the locals are words written to describe the identity of Ogilvy. Basically, what this means is that the advertising agency follows the local market, understands the customer's needs and then networks worldwide with MNC and other relevant clients. In all its years of business, Ogilvy has struggled to build brands and has proved its ability to build brands. The agency does its best to enhance the customer-brand relation. For this, it undergoes the process of scrutiny of the tools and techniques which work well to build a long and lasting association with a brand.
JWT (Hindustan Thompson Associates Pvt. Ltd.):- Headed by Mr. Colvyn, CEO
The advertising agency has a special portfolio which includes creativity, innovation, clients, case studies, awards, well-thought out leadership and talent. Clients perceive the agency as a resource of ideas which tell the brands story to the customer, dealing with market research. In this process, the agency includes innovative ideas.
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FCB-Ulka advertising pvt. Ltd:- Headed by Mr. Anil Kapoor ,MD & CEO
FCB, being one of the top three advertising agencies in the USA, ranks number 10 in the world. FCB-Ulka has made its mark in India as Ulka Advertising. It was founded in 1961. On the creative front, Ulka is known to stand out. Around the mid-seventies, FCB-Ulka had become the fifth largest agency in India and has sustained this status till date. It also gave recognition to those brands that were not in the limelight earlier but are now completely above other market players. Santoor soap did thorough research and focused on advertising which gave growing sales figures against stiff competition from Levers and P&G brands. Not surprisingly, FCB-Ulka is seen as a turnaround specialist - an agency that does brand building and more.
Rediffusion DY&R Pvt Ltd:- Headed by Mr. Mahesh Chauhan, President

This advertising agency places its people first. It believes that the strength of a brand lies in the efforts the people of the organization make. Rediffusion DY&R follows system-driven thinking in its culture. The agency attracts right minds because it thinks of a perfect balance between creativity and strategy.
RK Swamy BBDO Pvt Ltd:- Headed by Mr. Srinivasan K Swamy

It is the agency of the worldwide-renowned BBDO network. The advertising agency suggests comes up with solutions for its clients regarding their marketing communication problems and provides them with intelligent solutions and supports them in attaining their goals. The symbol or logo of the advertising agency is Hansa and is known to separate milk from the water. Similarly, RK Swamy of BBDO is capable of deriving the essential elements from the irrelevant ones in order to promote each brand. The agency practices high level of commitment and spirited teamwork for a common cause.
McCann-Ericsson India Ltd:- Headed by Sorab Mistry

This advertising agency is a leading global agency and has the power and passion to achieve its mission .McCann-Ericsson is known as a world class advertising agency and has found outstanding talent in its employees.
Leo Burnett:- Headed by Mr. Arvind Sharma, Chairman & CEO

The advertising agency is totally idea-centric. It generates big brand ideas. It regards the pencil as its engine no matter the size - it is the means through which it can generate plenty
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of creative ideas. The agency is never too satisfied with its endless efforts in building up a brand. It believes that the brands can become and remain leaders by building better ideas. It's no wonder that the founder of the advertising agency, Leo Burnett, regards the pencil as a metaphor for the kind of ideas he was coming up with for his clients.
Grey worldwide (India) Pvt Ltd:- Headed by Mr. Nirvik Singh, President south east
Asia & chairman South Asia, Grey Global The agency handles above the line advertising for the Grey group. It has launched Dominos in India. It has had Ambuja cement, Thumps Up, Arrow, Lee and many more brands in its portfolio. The mission of the agency is to remain the largest global integrated agency to leading brand ideas.
2.8 Infrastructural Facilities at DDB Mudra (Bangalore)

Occupies 3 fully furnished Air conditioned floors in Wellington Street, Richmond town, with 1st floor occupied by RAPP agency and Creative team, 2nd floor occupied by client servicing department and 3rd floor occupied by studio, art and accounts department. Each employee is provided with different work stations with system and a desk. Recreational facilities: Foosball table, Carom board, Table Tennis pool and a Library. Air conditioned conference room on each floor for meetings. Coffee vending machines are placed on each floor.
2.9Achievements and Awards

Mudra was the first ad agency to release double spread advertisement in India. Mudra was the first ad agency to sponsor commercial telecast of a major sporting event India Vs West Indies series in 1983. It produced Indias first tele-film Janam. It was Mudra that first branded a public issue Reliance Khazana. Mudra started the first advertising academy of India, MICA- The Mudra Institute of Communication Ahmedabad.
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In 2011, DDB Mudra Group was India's most awarded agency network at Cannes, Spikes and Abbys among others. In 2012, at the Ad fest (Asia Pacific Advertising Festival) Awards, the Group led the Indian tally by bagging the maximum number of awards including 3 Silvers and 6 Bronzes. The Group also won gold and a Silver award at the IAA (International Advertising Association) Olive Crown Awards. The Agency won gold award at OAA 2012 for Volkswagen campaign, which was awarded as the campaign of the year.
2.10 Work Flow Model
Request for Proposal (RFP)
Insertion Order
Creative Delivery
Campaign Delivery & Optimization
Billing and Collections
Figure 2.3 Work Flow model
This interactive advertising work flow helps to reduce many of the supply chain issues that have plagued the advertising industry, such as late creative, discrepancies and billing reconciliation. Mudras workflow represents several years of gathered experience and discussions and is the most in-depth and comprehensive interactive supply chain reference in the industry. Since the interactive advertising workflow touches multiple departments at publishers and agencies, it largely helps everyone from senior management to entry level employees with a high-level understanding of the overall process and practical advice on execution. Improving communication, both inter-departmentally and between agency and client, is at the core of reducing discrepancies and thus achieving greater operational efficiency.
Stage 1: Request for Proposal (RFP)

Clear and open communication between the client and the agency begins with the RFP. When submitting an RFP, Mudra outlines as much detail about the campaign as possible. Revealing PESIT Department of MBA Page 20
marketer objectives, target audience, inventory preferences, and any other special requests beyond budget and flight dates allows the publisher to provide a more comprehensive proposal. It helps to clearly communicate timelines to the marketer.
Stage 2: Insertion Order (IO)

An Insertion Order is generated once the proposal is approved by the agency. The publisher should set up appropriate controls along the IO approval process to ensure that all aspects of the study on youth perception and consumption of fashion the IO meet internal requirements. At this stage, it is critical for both the parties to review specific details about the IO including the billing method, delivery requirements, and any addendums to the AAAI (Advertising Agencies Association of India) /IAB (Interactive Advertising Bureau) standard terms and conditions.
Stage 3: Creative Delivery

The plan laid out by the account planners and the brief given by the client servicing people are inputs to the Creative team who translate the clients brief and account planners strategy into a creative consisting of art (visual appeal) and copy (literature). After the creative duties are done, the production team takes care of the ad shoots typically an audio/video conveying the message put forth by the creative team
Stage 4: Campaign Delivery & Optimization

After creative is delivered, crucial steps for both parties remain. Clear communication should continue with the traffic instructions. The publisher contacts the agency over any ambiguities. In addition, login information is exchanged so that delivery can be monitored in both the publisher and third-party ad servers. Campaigns are then checked within one business day of launch to confirm that all tags are implemented properly. To catch discrepancies, both parties continually monitor delivery and optimize when necessary.
Stage 5: Billing & Collections

No supply chain is complete until final payment is made. Billing & Collections remain challenging due to the number of departments involved. Following the workflow specifically reduces billing errors and simplifies reconciliation, but clear and open communication can A study on youth perception and consumption of fashion alleviate remaining issues. It also helps that both publishers and agency establishes cross-departmental communication channels to speed up the reconciliation process. PESIT Department of MBA Page 21
2.11 Future Growth and Prospects

The global Advertising Industry as far as scale of operations and scope is concerned the turnover is close to USD 450 billion annually. Indian Advertising Industry contributes less than 1% which is next to China and Russia. The Global Ad Industry is expected to reach a growth rate of 5% in 2015 which is better than 2010 while Indian Ad Industry in contrast estimates to reach the growth rate of 10% figuring about Rs.237 billion. India contributes to 17 % of the world population but is only 0.7% of the world advertising market so it has huge potential to grow in future. Experts reveal that total advertisement spending by the political parties would be around Rs 8 billion. The Congress and the BJP alone could spend over Rs 4 billion on ads on television, radio and newspapers. Most of the ads appear on going to general entertainment and regional TV channels and hardly a small proportion in News channels. Worldwide Partner Inc are the Ninth largest global network of more than 90 marketing and communication agencies in about 50 countries which has recently tied up with Indian Pressman Advertising and Marketing Ltd following repeated enquires about India Indian advertising spends as a percentage of GDP - at 0.34% which is comparatively low, as opposed to other developed and developing countries, where the average is around 0.98%, which requires a lot space for development and enhancements in the Indian Advertising Industry.
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3. Mc Kinseys 7S Frame Work
Figure 3.1
Strategy
DDB Mudra is a media management company: planning, buying and evaluating strategic media solutions for its clients. Their expertise lies in crafting customized and contemporary media solutions based on the thorough understanding of the consumer, the media and the interaction between the two. Consumers today do not like to be strait-jacketed into stereotypes. They have a plethora of me-too products to choose from resulting into quick shift in product preferences at minimal risk. Consumers are now constantly looking for value beyond price and demand constant improvement in products and services. What they take home is not just the product or brand, but the entire product experience as well. At the DDB Mudra Group, approach to communication planning is one that is not media centric but one that integrates the perspective of the consumer, the brand and the medium.
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Structure
Organizational structure refers to formal hierarchical relationships & positional arrangements it deals with how members communicate with others, how information flows, what roles he performs, Rules & procedures existing to guide the activities of members as part of organization With reference to Mudra , it has good mentor, disciplined relationship, encouragement, help & guidance. Broadly there are 5 departments in DDB Mudra,
DDB Mudra
Account Service Department
Media Department
Creative Department
Production Department
Finance And Account service department
Regional Creative Head
Brand Servicing Managers
Creative Team
Administration Department
Account Service Department
Figure 3.2 Account service department The account service, or the account management department, is the link between Mudra and its clients. Based on the size of the account and its advertising budget, one or two account executives serve as liaison to the client. The account executives job requires high degree of diplomacy and tact, as misunderstanding may lead to loss of an account. The account executive is mainly responsible to gain knowledge about the clients business, profit goals, marketing problems and advertising objectives. The account executive is responsible for getting the media schedules, budgets and rough ads or story boards approved from the client. The next task is to make sure that the agency
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personnel produce the advertising to the clients satisfaction. The biggest role of the account executive is keeping the agency ahead of the client through follow-up and communications. Media department The responsibility of the agencys media department is to develop a media plan to reach the target audience effectively in a cost effective manner. The staff analyses, selects and contracts for media time or space that will be used to deliver the ad message. This is one of the most important decisions since a significantly large part of the clients money is spent on the media time and/or space. The media department has acquired increasing importance in an agencys business as large advertisers seem to be more inclined to consolidate media buying with one or few agencies thereby saving money and improving media efficiency. Creative department To a large extent, the success of an ad agency depends upon the creative department responsible for the creation and execution of the advertisements. The creative specialists are known as copywriters. They are the ones who conceive ideas for the ads and write the headlines, subheads and the body copy. They are also involved in deciding the basic theme of the advertising campaign, and often they do prepare the rough layout of the print ad or the commercial story board. Creation of an ad is the responsibility of the copywriters and the art department decides how the ad should look. Production department After the completion and approval of the copy and the illustrations the ad is sent to the production department. Generally agencies do not actually produce the finished ads; instead they hire printers, photographers, engravers, typographers and others to complete the finished ad. For the production of the approved TV commercial, the production department may supervise the casting of actors to appear in the ad, the setting for scenes and selecting an independent production studio. The production department sometimes hires an outside director to transform the creative concept to a commercial. Finance and accounting department An advertising agency is in the business of providing services and must be managed that way. Thus, it has to perform various functions such as accounting, finance, human resources etc. it must also attempt to generate new business. Also this department is important since bulk of the agencys income approx. 65% goes as salary and benefits to the employees. PESIT Department of MBA Page 25
Value Chain Analysis There are mainly four roles in an advertising agency 1. Client Servicing 2. Account Planning 3. Creative 4. Production Client Servicing people are the first point of contact in an agency for the client. They interface between the Client and the other internal teams. Client Servicing people are given briefs by the clients. They understand what the clients requirement is, objectives of a particular campaign and translate it to the Account Planning and Creative teams. The Account Planning team then comes up with the strategy/plan for the campaign. The brief given by the Client Servicing team is the starting point for the account planners plan laid out by the account planners and the brief given by the client servicing people are inputs to the Creative team who translate the clients brief and account planners strategy into a creative consisting of art (visual appeal) and copy (literature).After the creative duties are done, the production team takes care of the ad shoots typically an audio/video conveying the message put forth by the creative team. Thus the cycle from a brief to an ad goes through the above phases.
Skill
Skills are capabilities of organization as a whole. Skills, which describe the organizations competence like in Mudra, would be creativity, innovation and adaptability. The skills, which Mudra possesses, are creativity, customer/account handling skills, relationship skills, excellent communication skills, assertive decision-making, business knowledge, leadership, attitude, adaptability, courageous, & dynamism. However the skill requirement varies from the job to job. The skills of the agency are enhanced through Recruitment & Selection process, training and development.
Style
At Mudra there is a very open management where the employees can suggest any improvements in systems. There is a grass root level participation. These suggestions are implemented either by interdepartmental communications, mutual understanding, or by toplevel analysis, where huge investments are involved. Even the policy decisions are taken with PESIT Department of MBA Page 26
consultancy of respective persons. Employees take casual decisions & their immediate head gives the feedback. From the above facts we can say that Mudra has a participative management style.
Systems
It refers to all rules, regulations & procedures both formal & informal. It includes campaign plans, control system, cost accounting procedures, recruitment training & development plans. At Mudra, every department has got their own Management Information system, for eg: o Human resource information system: There is an HR package which stores profiles of all the employees such as employee ID, code no, joining date, place of posting, place of posting, name, personal profile, etc.
Staff
Employees at Mudra are mostly recruited based on referrals and not by any recruitment drive and thus it helps in capturing talented and creative people. Like any other agency Mudra also engages in head hunting to capture some of the best minds in advertising field. Employees at Mudra, in terms of their qualifications are not academically very intelligent but are people who have an overall personality since advertising requires a good lot of communication, negotiation and convincing skills.
Shared Values
DDB knows their clients demand nothing but the best, and that it is becoming increasingly difficult to appeal to consumers. DDB believes in staying one step ahead of the competition with innovative, original thinking. The mantra of the company is "Innovate or Die" because "...in an industry being crushed by a lack of innovative thinking, anything less is just thatless." The team at DDB feels that it is the teams duty to provide the spectacular results the clients deserve.
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SWOT Analysis
Strengths
One of the oldest ad agencies of the country, hence a strong foothold. Provides clients with new ideas and offer integrated 360 degrees solutions. A satisfied client list. A well-developed internal communication interface. A visionary leader. (Madhukar Kamath). A central team that focuses on the development and application of knowledge and systems for next generation media planning & buying. Global exposure with higher rewards & appreciation. Diversified service offerings, ranging from traditional media advertising to specialty communications.
Weakness
Too much emphasis on traditional tried and tested methods. Lack in promotion strategies towards increasing the brand name.
Opportunities
Trends in content delivery. Strategic Growth Initiatives Increasing awareness of Digital Marketing Being the oldest advertising agency in India, it brand among its clients- they have lot of client coming back with new product for getting advertised.
Threats
Challenging stiff competition from its competitors from both domestic & international levels. Changes in the taste & preferences of clients. Rise in the number of in house creative teams by various companies. Page 28
4. Financial Analysis
DDB Mudra group being a private limited company is not at the liberty of giving out its financial data.
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5. Learning Experience
The whole period of 10 weeks was an insightful experience. This experience has been very helpful to my educational aspirations. It has given me the opportunity to interact with different materials. It has exposed me to the advertising industry in more vast ways than I really expected. It enabled me to work in a new & unfamiliar environment for a more holistic learning experience. Lessons learned at Internship: There is a sense of ease as to how the whole system works but still a lot to learn as to how proper co-ordination among the employees helps in order to provide effective service to the customer. I was able to understand the functions of various departments, duties and
responsibilities of each department. I have learnt how a multi-national builds a global brand, and how international necessities are balanced with local realities. I have worked according to different business models, and have been able to personally judge the effectiveness of diverse methods. The whole working of IMC (Integrated Marketing Communication) was practically experienced and analyzed by me. With being included in all the functioning of the company I got to know how right from the pitching to a client to Brand servicing is done. I had been assigned a project with the team in Mudra to develop an actionable customer segmentation model. This has given me a hands-on experience to practically use the nuances of Marketing. Even though I was just an intern, my ideas were always welcomed. I was also given a chance to be a part of client meeting, which is a huge opportunity for an intern. Overall, the responsibility and flexibility I got at Mudra was outstanding. I had the opportunity to work for four different projects in such a short period of time which enabled me to adhere to given deadlines. Besides giving me an opportunity to work on various projects, this has also led to great team bonding with other Summer Interns and multiple presentations & interaction opportunities within the team.
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General Introduction
Apparel is one of the basic necessities of human civilization along with food, water and shelter. The Apparel Industry reflects peoples lifestyles and shows their social and economic status. It is Indias second largest industry after IT Industry. At present, it is amongst the fastest growing industry segment and is also the second largest foreign exchange earner for the country. The apparel industry accounts for 26% of all Indian exports. The Indian government has targeted the apparel and textiles industry segments to reach $50 billion by the year 2015. One of the most interesting features of the Fashion industry is that, it migrates from high cost nations to the low cost nations. The growth of the domestic demand for clothing and accessories in India is linked with the success of the retailing sector. India presently has entered the second phase of growth and is witnessing a massive rise in the domestic demand. This is primarily due to the rise in the standard of living caused by the rise in the middle-income groups.
7.1 Statement of Problem

Fashion has evolved in the past hundred years just as it has over time, as our culture and attitudes change, fashion comes along with it and through this study we aim to primarily understand Youth, both Males and Females and How does this segment consume fashion and analyze whether youth always go for latest trends and fashion, Whether they are Lifestyle oriented or Value for money oriented.
7.2 Objectives of the study

Primary objectives:
To analyze the shopping behavior of youth with respect to Apparels and Accessories. To analyze the relationship between a specific brand and its buying behavior.
Secondary Objectives
To understand the brand loyalty and gifting behavior displayed by youth. Analyzing the most preferred Media (Traditional Vs Digital). Finally, to incorporate the findings in establishing an effective communication tool. Page 31
7.3 Scope of the Study

The study encompasses a vast scope as it includes youth age group of (18-26) across Bangalore. This study is being carried out in order to obtain the information about how the youth perceives and consumes fashion in Bangalore. The client here is Future group and going by its segmentation of stores, it divides them into:1. Lifestyle segment (consisting of Central Malls) and 2. Value segment (consisting of Brand Factory) Thus, taking both the factors into account this study would revolve around youth and how does it perceive fashion, hence explaining their bent towards the premium stores or value based stores.
7.4 Research Design

1. Type of research
Exploratory research Since we are trying to gain a better insight into a problem and the area, an exploratory research design is apt.
2. Target Population
The subjects for the study are youth aged 18 to 26 and residing in Bangalore. They have to be either students or newly joined working professionals.
7.5 Sampling Plan

Sampling Technique: Random sampling technique i.e. Non Probability sampling technique. Sample size: 150 respondents Data collection design:Secondary data about the understanding of Youth as a segment group is done through various published articles, books and the internet. Information about the client i.e. Future Group is being given by the company as well as being collected from the internet. Primary data is being collected through a well structured questionnaire.
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Instrument design:
This study is based on primary data too and the primary data are collected through a well structured questionnaire. The questions in the questionnaire are structured, non disguised questions. This type of questionnaire will be helpful to extract the result within the limits.
7.6 Data Analysis

The analysis of the project work shall cover use of EXCEL in order to formulate various graphs and SPSS for Perceptual Mapping, which seem to provide fairly accurate results, hence the core objectives of the research work is met. The research work will cover the opinion of 150 respondents and shall not cover an equivalent distribution between students and employed or male and females. Hence the results obtained shall only limit to the statistical viability of the results.
7.7 Limitations of the Study

The youth as a customer segment is huge and covers every youth aged 18 to 26 in the city. With such a large customer base, a small time frame of ten weeks and a relatively volatile characteristic of the segment it is very difficult to find out the consumer reaction. Thus the study suffers from the following limitations: As it was not possible to cover the entire city, only a small representative of the sample of customers was taken. The distinction of stores i.e. into Lifestyle segment and value based segment is not mutually exclusive. Though the respondents are supposed to provide correct information, it depends entirely on the respondents as they may be biased. All questions were administered but there can be an element of perceived misunderstanding of the question.
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8. Analysis
Exploratory Research was undertaken to identify more precise formulation of the problem and formulation of course of action. Given the vastness of the subject (youth and fashion) to be researched greater amount of flexibility and ad hoc versatility, the information was sought to formulate the questionnaire and gain familiarity into the way consumers respond to Fashion. The flow of analysis is,
1. Calculate approx monthly potential of a shopper:

First of all we calculate the approx monthly potential of a shopper by taking into consideration:a) Ones shopping frequency b) Their monthly income and c) How much do they spend on each shopping expedition? We then cross check it with last months shopping expenditure to validate the finding.
2. Factors that affect shopping behavior

a) Price Factor b) Fashion Consciousness e) Store type
3. Perceptual map:
Further, we plot a perceptual map with stores and various attributes associated to the stores.
4. Shopping Behavior:
Then we move to analyze other aspects related to shopping behavior, which help us understand shopping behavior in general, a) Gifting behavior b) Checking preference of media (traditional v/s digital) c) What helps choose a shopping destination? d) Specifics of last purchase.
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8.1 Finding monthly potential of a shopper

Table 8.1 Showing the frequency of Shopping
Frequency of visit Monthly Quarterly Half Yearly Yearly Total Frequency 72 51 18 9 150 Percent 48 34 12 6 100
Graph 8.1: Showing the frequency of shopping

80 70 60 50 40 30 20 10 0 18 9 51 Monthly quarterly Half Yearly Yearly
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Analysis
The frequency table and the corresponding chart reveal that approximately 48% of the sample size shops monthly. Further shop 34% quarterly and 12% half yearly. The rest 6% are the annual shoppers.
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8.2 Finding Monthly Income

Next we move on to find what is the monthly income or allowance that one gets and then calculate what the monthly potential of a single shopper for a month would be. So the monthly income is depicted in the following frequency table and graph.
Table 8.2: Table showing monthly income of the respondents

Monthly Income Rs 0-3000 Rs 3000-5000 Rs 5000-7000 More than 7000 Total Frequency 21 28 30 71 150 Percentage 14.00% 18.66% 20.00% 47.33% 100%
Graph 8.2: Graph showing the monthly income of the respondents
Monthly Income
14% 0-3000 47% 19% 3000-5000 5000-7000 more thn 7000 20%
Interpretation
52.6% of the samples are within the Rs.7000 bracket with 67% being more than Rs.5000. But the rest 47.33% is the segment with Rs.7000 or more money to spend every month. This is the average pocket money or allowance of respondents in the 18 to 26 age group PESIT Department of MBA Page 36
8.3 Finding expenditure on apparels and accessories out of monthly income

Now since we know of the shopping frequency and the average income, we need to know what an average individual spends on apparels and accessories out of their monthly income. This would give us the potential of a single buyer.
Table 8.3: Table showing how much of the monthly income is spent on shopping for apparels and accessories?
Percentage Spent 5-15% 15-25% 25-45% >45% Total Frequency 42 57 30 21 150 Percentage 28 38 20 14 100
Graph 8.3: Monthly expenditure on apparels and accessories

40% 35% 30% 25% 20% 15% 10% 5% 0% 5-15 % 15-25 % 25- 45 % more than 45%
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Interpretation: Thus, from the chart we depict that, 42 of 150 respondents spend between 5 to 15% of their monthly income on apparels and accessories. 57 of them spend up to 25% of their income. Remaining 30 and 21 respondents spend up to 45% and more than 45% of their income on apparels and accessories monthly respectively. Hence, Monthly expenditure on apparels & accessories Since 48% shop monthly for apparels & accessories. And 47.33% have monthly income beyond Rs.7000 Thus, 58% (57+30/150) spend an average 25% of their disposable income on shopping for A & A. i.e. 57 people from the 15- 25% expenditure group and 30 people from 25-45% expenditure group. Average is considered 25% since its the mid value of both the groups. Thus, approximate monthly potential from 1 out of 2 persons (since 48% ~ 50% shops monthly for A&A) in the age group of 18 to 26 would be = 25% of 7000 = Rs. 1750
Inference
Going by the previous calculation we see that on an average 50% of the youth among 18 to 26 years of age has the monthly potential of Rs.1750, which is huge and it gives immense scope to the marketers.
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Cross checking the afore mentioned finding Table 8.4: Table showing the amount spent on apparels and accessories during the last purchase
Amount spent (Rs) 1- 999 1000-1999 2000-2999 3000-4999 5000 and above Total
Frequency
Percent
18 55 30 22 25 150
12 36.67 20 14.67 16.66 100
Graph 8.4: Graph Showing Expenditure on Apparels & Accessories during last purchase
40 35 30 25 20 15 10 5 0 1-999 1000-1999 2000-2999 3000-4999 5000 and above
Thus, we see that the details of last purchase give us an idea of how much one spends on A&A during a single shopping expedition. Since the major chunk lies in the Rs.1000 to Rs.1999 bracket, it is safe to assume the validity of the calculated monthly potential. PESIT Department of MBA Page 39
9. Understanding the factors affecting the shopping behavior of A&A

Table 9.1 Price range considered by respondents for regular shopping of A&A
Price Range 100-500 500-1000 1000-2000 2000-5000 Price range not considered Total Frequency 8 15 40 67 20 150 Percentage 5.33 10 26.67 44.67 13.33 100
Analysis:
44% of the respondents fall under price bracket of Rs 2000- Rs.5000. It was noted that 70% of the respondents who fall under this bracket shop quarterly. Majority of respondents who fall under the bracket of Rs 1000-Rs 2000 shop Monthly.
Graph 9.1 Graph showing the price range considered by respondents for shopping of Apparels and accessories
50 45 40 35 30 25 20 15 10 5 0 100-500 500-1000 1000-2000 2000-5000 Price not considered
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Interpretation: From the above graph it is seen that youth aged 18- 26 are majorly price sensitive. Hence we can conclude that the amount spent on shopping apparel and accessories also depends on the customers frequency of shopping. Further analysis gives us an insight into how Bangalore youth perceive themselves or define themselves in terms of fashion consciousness.
Table 9.2 Table showing fashion consciousness in youth

Fashion adoption Very trendy Trendy Neutral Not trendy Unaware Total 6 30 100 10 4 150 Frequency Percent 4 20 66.67 6.67 2.667 100
Graph 9.2: Graph Showing Fashion consciousnesses in youth

80 70 60 50 40 30 20 10 0 Very trendy Trendy Neutral Not Trendy Unaware
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From the previous charts and graph we see that 100 of 150 respondents define themselves as neutral i.e. for them being trendy is not important, they dont keep themselves abreast of trends but are more insistent on comfort and value for money. 30 of 150 respondents think of themselves to be trendy i.e. they do follow trends but not with conviction. For them trends have to be within some of their constraints. 10 of them think of themselves as not trendy but they are aware of trends. Therefore we say that majority of Bangalore youth do not perceive themselves to be trendy.
10. Perceptual Mapping of various major players in the apparel and accessories segment
Brand positioning is essentially concerned with mapping a customers mind and placing all the competing brands of a product category in appropriate slots or position on it. Here the respondent is asked to mark on a 5 point Likerts scale what the customers think about the stores that they frequent. This would result in rating for all the brands. Here there are 6 stores taken into consideration. The Client is interested in finding out how the customers perceive the Company Brands with respect to the attributes mentioned in the questionnaire. In particular the client wants to know How do customers perceive the Future group brands (Central and Brand factory) along with its major competitors?
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Output: a) Eigen Values Table 10.1 Eigen Values

Function 1 2 3 4 5 6 Eigen Value 1.387a 1.181a 0.645 0.236
a a
% of Variance 37.8 32.2 17.6 6.4 5.0 1.0
Canonical Correlation 0.762 0.736 0.626 0.437 0.392 0.189
0.182a 0.037a
The Eigen value = Between groups sum of squares Within group sum of squares
The largest Eigen value corresponds to the Eigen vector in the direction of the maximum spread of the groups means. The second largest Eigen value corresponds to the Eigen vector in the direction that has the next largest spread, and so on. The square root of each Eigen value provides an indication of the length of the corresponding Eigen vector. Small Eigen values result in Eigen vectors of essentially no length and account for very little of the total dispersion. The Percentage of Variance column allows us to evaluate which canonical variable accounts for most of the spread. Here the first Eigen value is able to explain 37.8% of variance and the second Eigen explains 32.2% of variance.
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b) Wilks Lambda Table 10.2 Wilks Lambda

Test of functions 1 Through 6 2 Through 6 3 Through 6 4 Through 6 5 Through 6 6 Wilks Lambda 0.077 0.184 0.402 0.660 0.816 0.964 Chi-square 271.602 179.373 96.703 43.974 21.550 3.859 Df 66 50 36 24 14 6 Significance 0.00 0.00 0.00 0.008 0.088 0.696
The Table is used to identify the function which is significant in explaining the differences among the groups. Wilks Lambda is the proportion of the total variance in the discriminant scores not explained by differences among the groups. Wilks lambda ranges between 0 and 1. Values close to 0 indicate the group means are different Values close to 1 indicate the group means are not different. Values equal to 1 indicate the group means are the same.
Here in the above table, we see that 1, 2 and 3 through 6 of the test of function values is closer to 0, this shows that the group means are different. And thus the first 3 functions are significant.
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c) Standardized Canonical Discriminant Function Coefficients Table 10.3 Standardized Canonical Discriminant Function Coefficients
Attributes Fashion Consciousness Brand Image Quality of Merchandize Size and Design option Word of Mouth Feeling of Exclusivity Shop Ambience Shop Location Trust in the Store 1 -0.157 0.004 0.002 0.435 0.486 0.210 0.367 0.577 -0.027 2 0.014 0.270 -0.353 -0.085 -0.093 -0.044 0.760 0.298 0.453 0.443 -0.207 Function 3 4 -0.249 -0.039 0.415 -0.271 -0.129 0.281 0.798 -0.124 0.066 0.158 0.169 -0.190 -0.069 0.347 -0.546 -0.099 0.461 0.092 0.685 0.200 -0.307 -0.162 5 -0.293 -0.428 0. 380 0.415 -0.376 0.076 -0.064 0.060 0.206 0.711 -0.070 6 -0.268 -0.169 -0.266 -0.165 0.249 0.159 0.133 0.160 0.275 -0.393 0.786
Ads / Celebrity endorsement -0.044 Packaging -0.222
The higher value of the coefficients for a particular attribute on a function indicates the higher loading for the same on that function. This is applicable when the variables are measured in different units. The magnitude of the un-standardized coefficient provides little indication of the relative contribution of the variable to the overall discriminant function. Standardizing the coefficient allows us to examine the relative standing of the measurements. This table is used to plot Attributes on perceptual maps using Microsoft Excel.
d) Structure Matrix
The structure matrix contains within group correlations of each predictor variable with the canonical function. The matrix also provides another way to study the usefulness of each variable in the Discriminant function. For each variable, an asterix marks its absolute correlation with one of the canonical functions. With each functions, these marked variables are then ordered by the size of the relation.
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Table 10.4 Table showing Structure matrix

Attributes 1 Size &Design option Word of mouth Shop Ambience Trust in store Feeling of exclusivity Quality of Merchandize Shop Location Ads/Celebrity endorsements Brand Image Fashion Consciousness Packaging of items 0.715* 0.612 0.170 -0.135 -0.030 0.150 0.503 -0.175 -0.010 0.009 -0.157
*
Function 2 -0.173 -0.177 0.572

*
3 -0.004 0.022 -0.351 -0.062 0.781* -0.401* -0.113 0.282 0.344 -0.153 -0.035
4 -0.515 -0.507 0.080 -0.163 0.212 0.271 0.524* -0.302 -0.129 -0.193 -0.207
5 0.164 -0.069 -0.142 0.296 0.134 0.375 0.025 0.601

*
6 -0.049 0.154 0.135 0.263 0.115 -0.205 0.024 -0.077 -0.305 -0.274 0.803*
0.374* -0.227 -0.161 0.129 0.378 0.404 0.185 0.097
-0.418* -0.301* 0.179
In this table, The largest correlation of size and design option and word of mouth exists with the function 1. The largest correlation of shop ambience and trust in the store exists with the function 2. The largest correlation of Feeling of exclusivity and Quality of merchandise exists with the function 3. The largest correlation of Shop location exists with the function 4. The largest correlation of Celebrity endorsements/Ads, Brand image and Fashion consciousness exists with the function 5. The largest correlation of Packaging of items exists with the function 6.
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The Table 10.2 displays the canonical variable (Discriminant Function) means by group. Within group means are computed for each canonical variable. Here in my analysis, only Function -1 and Function -3 are used to plot the brands on the perceptual map.
e) Function at Group Centroids: Table 10.5 Function at Group Centroids
Which store was your last purchase in? Central Lifestyle Shoppers stop Brand Factory Max Mega mart Exclusive store
Function
1
-1.485 -0.323 0.788 1.360 3.212 -0.371 -0.022
2
0.388 0.933 -0104 1.475 0.016 1.466 -1.294
3
0.868 -0.969 -1.578 0.252 1.347 0.345 -0.055
4
0.209 -0.421 0.517 0.948 -0.667 -0991 -0.006
5
-0.278 0.298 -1.141 0.512 -0.374 -0.253 0.197
6
-0.106 -0.183 0.049 0.128 -0.248 0.627 0.055
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From Table, The co-ordinates of X-axis and Y-axis are shown in the table below.
Table 10.6 Cartesian co-ordinates of brands on Discriminant function 1 and 3

Brand X axis Central Lifestyle Shoppers stop Brand Factory Max Mega mart Exclusive outlets -1.485 -0.323 0.788 1.360 3.212 -0.371 -0.22 Y axis 0.868 -0.969 -1.578 0.252 1.347 0.345 -0.055
Attributes
1= Fashion Statement 2=Brand Name/Image 3= Quality of Merchandize 4=Availability of sizes and designs 5= Peer Influence/ Word of mouth 6=Feeling of Exclusivity 7= Shop Ambience 8= Shop Location 9=Trust Factor 10=Ads/ Celebrity Endorsement 11=Packaging
Stores
CL Central LS- Lifestyle SS- Shoppers stop BF- Brand Factory MM- Mega mart MX- Max EO- Exclusive Outlets
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Figure 10.1
Map: Perceptual map
Dimension 2
Dimension 1
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In the graph, the length of the arrow represents its effect in discriminating on each dimension. Longer arrows pointing more closely towards a group Centroids (store on the map) represent variables most strongly associated with the group. Vectors pointing in the opposite direction from a given group Centroids represent lower association of the attribute with a store. Variables with longer vectors in a given dimension, and those closest to a given axis (dimension represented by discriminant function) are contributing more to the interpretation of that dimension. Looking at all variables that contribute to a given axis (dimension), we can label the dimension as a combination of those variables. In this case the various points to be noted are:All the attributes are huddled up in the centre thus giving us an apprehension of being equally important but going by their correlation with dimension we find that, Attributes 4, 7 and 8 i.e. Availability of sizes & designs, Shop ambience and Shop location respectively are closest to dimension 1 and thus Dimension 1 can be labeled a combination of these three variables. Attributes 2, 3 ,6,9 and 10 i.e. Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements respectively are closest to dimension 2 and hence Dimension 2 can be labeled as a combination of these. Attributes 1, 5 and 11 i.e. Fashion consciousness/ fashion statement, Peer influence/ word of mouth and Packaging are not close to either of the dimension and thus are not useful in defining any of the two dimension.
11. Stores and their association with attributes/ Dimensions

1. Central Central as we see in the third quadrant is not close to any dimension and thus scores low on both of them. 2. Lifestyle & Shoppers stop Lifestyle and shoppers stop are very acute towards the DIMENSION 2 and hence can be said that they are known for the Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements respectively
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3. Brand factory Brand factory is close to DIMENSION 1 and thus is perceived well for its Availability of sizes & designs, Shop ambience and Shop location. This finding seems to be contradicting in nature since Brand factory is mostly known for value pricing and is not so good with sizes & design option. It seems to be a typical case of stereotyping where in which due to value for money attribute being largely on the side of brand factory, shoppers have rated it higher even on the size and design attribute. Though shop ambience and location are valid points since shoppers are quite relaxed inside the store due to reasonably priced goods and the feeling of ITS IN MY RANGE. Shop location is another point i.e. the proximity and easy access makes it rate higher on this dimension. 4. Mega mart Mega mart is also lightly perceived by DIMENSION 2 but still the correlation is not very high. 5. Max Max again is not close to any of the dimension and thus cannot be attributed any of the dimension. 6. Exclusive outlets The exclusive outlets are right near the origin and thus is very strongly depicted by both the dimensions, i.e. DIMENSION 1 and 2 both. Thus it is strongly known for of sizes & designs, Shop ambience, Shop location Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements. It also gives a logical explanation to higher frequency of exclusive outlets purchase in the last purchases made.
11.1 Analyzing other aspects related to Shopping Behavior.

Gifting behavior Checking preference of media (traditional v/s digital) What helps choose a shopping destination? Specifics of last purchase. Page 51
Gifting Behavior among youth

Gifts also account for a major share in the purchases now a days. With socialization turning a lot more digital than before, it has had both positive and negative impacts on the gifting behavior. The positives are in the field of e gifting and e cards with the traditional gifting pattern taking a back seat. But going by this assumption we try to find out what is the most preferred item of gift and also what the normal range for buying gifts is.
Table no11.1: Table showing the most preferred Gifting Items

Most preferred Gift items Clothes Bag Watch Jewellery Others Total Responses 59 37 57 15 10 178
Graph 11.1 Graph Showing Most preferred gifting item
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Inference:
59 of 150 respondents prefer clothes or apparels when it comes to gifting. 37 of 150 respondents prefer bag as a gifting item. 57 of 150 respondents are in favor of watch as a good choice for gifts. 15 of 150 prefer jewellery as an apt gifting item. This graph helps us analyze that apparel and watches are the safe choices among gifts and are personal too. Thus it helps us get an idea on how the gifting market can be aptly tapped.
To find out what is the price range for gifts, will help to get greater understanding of gifting market.
Table 11.2 Table showing Price range for gifts

Price range for gifts Upto Rs 1000 Rs 1001-3000 Rs 3001-5000 More than 5000 Total Frequency 51 57 26 16 150 Percentage 34 38 17.33 10.66 100
Graph11.2 Graph showing price range for gifts
40.00% 30.00% 20.00% 10.00% 0.00% upto 1000 1001-3000 3001-5000
more than 5000
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Inference:Expenditure on a single item as a gift:51 of 150 respondents spend only up to Rs.1000 when it comes to gifting somebody. 57 of the 150 respondents spend in between Rs.1000 and Rs.3000 for gifts. 16 respondents each in the Rs.3000-5000 and Rs.5000 & above bracket. With the major chunk being within the range of Rs.3000, value formats with the huge discounts and offers are an ideal choice for gifts.
11.3 To find out the preference of media (traditional or digital)

Traditional media includes Ads in newspapers, magazines, bill boards, television etc. Digital media refers to advertising through the use of World Wide Web. Thus, going by the source of information about the latest trends and collection in stores,
Table No 11.3: Table showing the source of information

Source of information Television Print ads Internet Outdoor hoardings SMSs and others 55 76 40 13 14 No. of Respondents
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Graph 11.3 Graph showing preferred Source of information.
Inference
With print ads being the popular choice, it is unnecessary to point out that people still prefer the traditional mode of communication. It can mostly be associated to the fact that most of the apparel and accessory ads are generally in the print form and helps as a cue to the Limited problem solving as the decision making process being involved.
In limited problem solving, consumers have already established the basic criteria for evaluating the product category and the various brands in the category. However, they have not fully established preferences concerning a select group of brands. Their search for additional information is like fine tuning; they must gather additional brand information to discriminate among the various brands.
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The second and third most important source of information is Television Ads and Internet. It gives us an idea as to people would still prefer an ad in newspaper to a dangler on internet. It actually gives an immense opportunity to marketers and advertisers to explore the field and make it more reliable and customer friendly so that customers dont get intimidated by it.
11.4 What helps choose a shopping destination?
Graph 11.4 Graph showing Factors affecting choices of shopping destination
Table 11.4 Table showing Weights of the above responses

Factors Value for money Availability of sizes and designs Latest fashion and trends Shop ambience Shop location Facilities Weights attached 0.34 0.32 0.30 0.22 0.18 0.14
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The top 3 factors are more or less on the same page with 0.34, 0.32 and 0.30 weights attached to them. Value for money tops the list as opposed to the popular belief that latest fashion and trends drive one to a store. But with just 6 responses behind, latest fashion and trends is also treated in a similar manner and thus leaves us with an inference that only value for money wont be enough and thus when all the three factors i.e. Value for money and Latest trends and fashion and Availability of sizes and designs are available it becomes the choice for shopping destination.
11.5 Specifics of last purchase Table 11.5 Table showing last store purchase was in
Frequency Central Lifestyle Shoppers stop Brand factory Maxx Mega mart Exclusive outlets Total Missing Total 23 20 8 11 8 6 41 117 33 150 Percent 15.3 13.3 5.3 7.3 5.3 4.0 27.3 78.0 22.0 100.0 Valid Percent 19.7 17.1 6.8 9.4 6.8 5.1 35.0 100.0 Cumulative Percent 19.7 36.8 43.6 53.0 59.8 65.0 100.0
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Inference:From the above data we see that Central rates high on sales even though the perceptual map is not in favor of it. Lifestyle is a close second with 17% response as opposed to 19.7% of Central. Shoppers stop shockingly does not boast of a high purchase rate as of here. With only 6.8% response it stands lower than that of Brand factorys 9.4%. Going by the segmentation into Lifestyle based and value based, we can say that Central is on top of the list for Lifestyle segment and Brand factory for value based. And obviously the other major response is for the exclusive outlets which has also been the case in Perceptual map.
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Findings
1. One of the most important findings in this study was that of the youth monthly potential for apparels and accessories. The monthly potential for the same is Rs.1750 and it gives a marketer a huge scope to build the promotional offers around it. It also was cross checked with the help of details of last apparel or accessory purchase within a month.
2. During the survey it was found that the youth in Bangalore is not very trendy but is brand conscious and usually chooses to shop either in a shopping mall or a branded store. 3. From the perceptual map we find that
Table 11.6 Table showing various stores and their perception Stores
1. 2. Central Lifestyle None Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements 3. Shoppers stop Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements 4. Brand factory Availability of sizes & designs, Shop ambience and Shop location 5. Mega mart Weakly Availability of sizes & designs, Shop ambience and Shop location 6. 7. Max Exclusive outlets None Sizes & designs, Shop ambience, Shop location Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements
Perception
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4) Analyzing other aspects related to shopping behavior:Gifting behavior

The findings suggest that apparels, bags and watches are the popular choices among gifts and are personal too. Also the amount for gifts is majorly within the range of Rs.3000.
Preferred source of communication

With print ads being the popular choice, it is unnecessary to point out that people still prefer the traditional mode of communication. The second and third most important source of information is Television Ads and Internet.
What factors affect choice of a shopping destination?

Value for money and Latest trends and fashion and Availability of sizes and designs are available it becomes the choice for shopping destination.
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Recommendations
As we see from the Brand perception mapping, Central is not recognized by any of the attributes. It was also observed that Lifestyle and Shoppers stop are ahead of Central But if we go by the details of last purchase there is a specific difference between the results but in volumes of purchases it is ahead of the two. The problem mainly lies in the communication from the side of Brand or in this case, the agency. It can also be attributed to the fact that Central or Brand factory dont engage in customer centric ads but only product Centric. A major recommendation would be to build the brand communication around some specific attributes which will help connect with the consumers and also help them retain it in long term. The agency can further probe into the Perceptual value attached to the brand considering Brand satisfaction and then come up with an Integrated Marketing Communication plan. Another important recommendation can be trying to categorize or customize the ads based on youth psychographics of the area. We see in Bangalore, majority of the youth are not opinionated. They are neither materialistic nor are they therefore, brand conscious. So in order to capture this particular youth segment, the agency has to think in terms of communication which will make the youth more and more brand conscious and thus leverage on the fact that once they are aware of importance that brands will attach to their personal, the sales of stores like central and Brand factory will swell, with a better Brand Image and perception. A study on youth perception and consumption of fashion. The third recommendation would be regarding the media of communication. Even though Internet and Smss have had their share in the responses, the traditional media still wins over it. In case of an apparel and accessory store like that of Central or Lifestyle, we generally dont find Television commercial. They stick to the basics of newspapers and that of outdoor hoardings. A television commercial will be more effective than the other media since Audio visual medium is always one with a greater impact. In fact the agency has come up with a television commercial for Central but it again is product centric. Thus, a Customer centric
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TV commercial would help attach to the emotional part and also help build a stronger brand perception and also help in brand recall, in terms required by the client. In fact, another platform to advertise the brand should be through events. Though there are a lot of in the mall events conducted very often, it doesnt provide them an edge over other shopping malls who also engage widely in such activities. The key here would be to advertise via various youth clubs, associations and other exclusive groups. This would help increase the penetration of the brand and also attach a feeling of exclusivity to it. While advertising through print media, the concentration should shift from regular newspaper to glossy magazines ranging across Fashion, Living and Travel . As a matter of fact, magazines which are being provided exclusively during long hours of travel should be one major market since there is a sense of relaxation in the way travelers they go through the magazine and thus involves chances of in depth analysis of what they read, giving a brand enough time capture the mind share of readers. A study on youth perception and consumption of fashion
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Conclusion
Thus, to incorporate the findings in establishment of a new store by the client, we can safely say that if Future Group is interested in opening a new store, Central is a safe bet. With specifics of last purchase, we find that the sales volumes have been high compared to all other stores. The only problem here is the consumer perception of brand and that can be enhanced with use of various consumer centric media tools. Also that the drift from value based segment to lifestyle segment occurs due to availability of sizes and designs and latest fashion and trends, thus in order to upgrade the Value based stores like Brand Factory, it is important that the width and depth of collections is wide. As an agency, Mudras main aim in this case would be to portray Brand Factory in the same light. From the project we conclude that general youth in Bangalore (with an average income of Rs.7000 per month and 25% disposable income for apparels and accessory monthly) do not attach much importance to trends and fashion. They also consume fashion in a way that hugely shows their bent towards the Lifestyle segment stores( Central, Lifestyle, Shoppers Stop, Exclusive outlets) and not the Value based segment stores( Brand Factory, Mega mart) .
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A study on youth perception and consumption of fashion

PESIT Department of MBA

A study on youth perception and consumption of fashion

1.1 GLOBAL OUTLOOK OF THE INDUSTRY

A study on youth perception and consumption of fashion

1.2 INDIAN ADVERTISING INDUSTRY

Facts and figures

A study on youth perception and consumption of fashion

PESIT Department of MBA

A study on youth perception and consumption of fashion

1.3 Advertising Agency

A study on youth perception and consumption of fashion

Types of advertising agencies:

PESIT Department of MBA

A study on youth perception and consumption of fashion

The functions of an advertising agency:

Services offered by ad agency

PESIT Department of MBA

A study on youth perception and consumption of fashion

2. Company Profile 2.1 Background and inception of the company

A study on youth perception and consumption of fashion

PESIT Department of MBA

A study on youth perception and consumption of fashion

2.2 Nature of the business carried

PESIT Department of MBA

A study on youth perception and consumption of fashion

2.3 Vision, Mission and Values

A study on youth perception and consumption of fashion

2.4 Product/Service Profile

Figure 2.2 PESIT Department of MBA Page 12

A study on youth perception and consumption of fashion

Mudra Specialist agencies

PESIT Department of MBA

A study on youth perception and consumption of fashion

A study on youth perception and consumption of fashion

Clients of DDB Mudra Group

A study on youth perception and consumption of fashion

2.5 Area of Operations

PESIT Department of MBA

A study on youth perception and consumption of fashion

2.6 Ownership Pattern

2.7 Competitors Info

PESIT Department of MBA

A study on youth perception and consumption of fashion

Rediffusion DY&R Pvt Ltd:- Headed by Mr. Mahesh Chauhan, President

RK Swamy BBDO Pvt Ltd:- Headed by Mr. Srinivasan K Swamy

McCann-Ericsson India Ltd:- Headed by Sorab Mistry

Leo Burnett:- Headed by Mr. Arvind Sharma, Chairman & CEO

PESIT Department of MBA

A study on youth perception and consumption of fashion

2.8 Infrastructural Facilities at DDB Mudra (Bangalore)

2.9Achievements and Awards

PESIT Department of MBA

A study on youth perception and consumption of fashion

2.10 Work Flow Model

Request for Proposal (RFP)

Campaign Delivery & Optimization

Billing and Collections

Figure 2.3 Work Flow model

Stage 1: Request for Proposal (RFP)

A study on youth perception and consumption of fashion

Stage 2: Insertion Order (IO)

Stage 3: Creative Delivery