2011

MEDIA BUYING & MEDIA BUDGETING

TYBMM B USHA PRAVIN GANDDHI COLLEE OF MANAGEMENT 12/09/2011

Objective of the assignment:

The objective to undertake this assignment to learn how to launch a new product in the market, position the product in the market & how to acquire the market shares . At the same time know how team work is necessary for the introduction of a new product. Others include:

Methods for analyzing the best market segments for a firm to enter. Designing the product which is acceptable in the market. New product naming, packaging, distribution channels & geography. Methods for tracking key trends. Positioning new products within the competitive frame.

At the same time gathering the practical experiences. Learning how to buy media spaces and do the budgeting properly. New product idea brainstorming techniques. New product idea refinement & concept/product testing.

INTRODUCTION TO OUR PRODUCT CATEGORY:

Mobile phones today are a part of our FMCG market.

A mobile phone allows calls into the public switched telephone system over a radio link. Early mobile phones were usually bulky and permanently installed in vehicles; they provided limited service because only a few frequencies were available for a geographic area. Modern cellular "cell" phones or hand phones make use of the cellular network concept, where frequencies are re-used repeatedly within a city area, allowing many more users to share access to the radio bandwidth. A mobile phone allows calls to be placed over a wide geographic area; generally the user is a subscriber to the phone service and does not own the base station. By contrast, a cordless telephone is used only within the range of a single, private base station. A mobile phone can make and receive telephone calls to and from the public telephone network which includes other mobiles and fixed-line phones across the world. It does this by connecting to a cellular network provided by a mobile network operator. In addition to telephony, modern mobile phones also support a wide variety of other services such as text messaging, MMS, email, Internet access, short-range wireless communications (infrared, Bluetooth), business applications, gaming and photography. Mobile phones that offer these more general computing capabilities are referred to as smart phones. MARKET TRENDS & STATISTICS IN INDIA: Mobile Phones in India - Category Analysis TRENDS

With the launch of low-priced mobile phones and attractive tariff plans by the telecom services providers, mobile phones have become more affordable for Indian consumers. As a result, mobile phones recorded volume growth of 12% in 2009, reaching over 121 million units. In urban markets, increased demands for smart phones among young people are driving sales.

COMPETITIVE LANDSCAPE

Nokia is the undisputed leader of the Indian mobile phone sector, with 54% of total volume sales in 2009. Nokia benefits form a strong brand image and a reputation for high quality products. According to industry sources, Nokia has the distinct advantage of having the strongest retail network, with a

presence in almost 90% of retail outlets selling mobile phones. However, with the entrance of new companies, such as Micromax, Mifone and Karbonn in the mobile phone business, the share of Nokia has dropped significantly, from 60% in 2008. PROSPECTS

Since the penetration of mobile phones has already reached saturation level in urban areas, over the forecast period new demand will be primarily from tier II and III cities, and from rural areas. In urban areas there will, nevertheless, be a significant replacement market, with consumers upgrading to phones with better features. Between 2009 and 2014, the sector is expected to increase at a volume CAGR of 11% to reach 205 million units.

IDC India has published a report on growth of mobile sales in India (for 2009) and here are some of the relevant data points to track:

The growth has more or less flat [owing to low sales figure in Q1] in total, 101.54 million units of sales were registered. Local manufacturers* have grabbed 17.5% market share [from 0.9%, a year back] Only 5 local manufacturers in 2008 and the number stands at 28 now! Nokia market share in India fell from 56.2% share in 2008 to 54.1% in 2009. Samsung Electronics Co. Ltds share rose marginally to 9.7% from 9.5%. LGs share dropped from 7.2% to 6.4%, Of the local manufacturers, Micromax leads the race and holds a market share stands of 4.8%.

Like any market research, take this with a pinch of salt [for instance, Nokia has expressed reservations about the research, since IDC didnt take into account its production facility in Chennai, which ships 50% of the manufactured mobile to India]. Nevertheless, this is an interesting result and rise of local companies shows that there is a value in local IP [eat this: Micromax Q5 phone is just like Blackberry/E71/72 with a far lesser price which BlackBerrys of the world cannot even match].

ABOUT OUR COMPANY: Our companys name is

TECTREE Pvt. Ltd.

We are new to the FMCG market of mobile phones. We are a professional Company which gets the new concept and innovative idea of a mobile handset which has the POWER OF HD RECORDING & 3D GAMING 1st time in India we bring to people the classy and extraordinary phone which gives them all the features .Hence the name simply explains what we are about without any confusion.

Our company believes in a diverse product portfolio which allows us to meet the needs of different consumer segments and therefore offers devices across five categories i.e. Entry, Live, Connect, Explore and Achieve. These include products that cater to first time subscribers to advanced business devices and high performance multimedia devices for imaging, music and gaming only by one touch. TECHTREE the name means nothing but technology along with a touch of being environment friendly.

COMPANY LOGO:
Our company name signifies the technology in white colour and tree in black colour We have chosen white colour as it contains all the other colours in the spectrum, showing that we have a positive, well-balanced and optimistic personality product .also that we are highly individualistic and a loner (unique). We are open-minded and communicate, for with white all things are possible. And black colour which indicates that are strong-willed, opinionated and disciplined. We are too flexible and too independent.

MARKETING OPERATONS FOR THE CAMPAIGN

PRODUCT:
Our products name is TECHTREE which belongs to the FMCG market. Our product is designed for all the people who love to play games (3D) & love to capture all the moments of their lives like a movie. This handset of ours actually can make people acquire whatever they want on their phones from Calling, clicking pictures, playing games involving oneself in it, video recording (HD) etc. This phone is an extraordinary touch phone which is transparent in colour ( i.e.) made of glass and laser keypad , 10 mega pixel camera , app store , 64gb memory , internet service etc . Mainly our UNIQUE SELLING PROPOSITION OR USP is that it is an HD phone HIGH DEFINITION phone & 3D gaming phone. This is not harmful to the eyes or even to the environment. This phone is really very unique or one of its kind in India. It's a device that is a pleasure to navigate and filled with cool features, one can hardly feel the difference between a laptop and this phone while browsing everythings fast and silky. (Apps typically take a second longer to start up than they should, though.) It runs a solid handful of apps (simultaneously, if you want) without going catatonic. Awesome multitasking UI. The battery life is legit all day long. The screen is super solid. Stereo audio. The front camera is mega-awesome, compared to every other phone's front camera (sample in the gallery). You can dump music and photos and other files onto the phone via Wi-Fi.

PRODUCT PACKAGING:
This product is basically designed for the people who like to play 3D games & high definition video recording and people who enjoy the class and status. We will be using an eco friendly packaging box. We will be providing with mobile accessories like : 1pair of Charger 1 set of Sound reduction ear- phones. 1 manual. 1 usb port

The features of the product:

Highly attractive in looks Transparent colour Laser keypad 3D gaming facility HD video recording Starch free screen. Feather touch. 10 megapixel camera. With 3G facilities etc.

PRICE:
Our product is an highly excusive product so its price is Rs 40,000/-

So ,the manufacturing of the handset is Rs 7000/ Then the total cost of accessories and the packaging is Rs 3000/ So the total manufacturing cost along with the transport is

Rs 12000/- per piece.

Being a new player in the market we have priced our product high .We are more interested in selling bulk quantities along with keeping a higher profit margin. We want our price such that the only the higher middle class and rich can afford. Mostly young students are our target and professionals ass they like to try out innovations and prestige oriented goods.

PLACE:
Proper placing and availability of the product plays an important role in the sales of the product. TECTREE will be first launched in metropolitan cities like Mumbai, Delhi, Chennai, Bangalore and Kolkata. It will also be launched in tier 2 cities like Pune, Surat, Gurgaon, Noida, Chandigarh, Hyderabad and Jaipur.

DISTRIBUTION:
In metro the distribution channel adopted by us is Manufacturer -Consumer. Our product will be placed in big malls where in we ourselves will have outlets. Our product will be available only in our shops and nowhere else as its a premium product.

PROMOTION:
We have adopted different types of promotional strategies while introducing our product in the market. We are focusing more on above the line promotion rather than below the line promotion. Our below the line strategies will include the following: Sponsors of the coming season of BIG BOSS Sponsors of coming season of RODIES

 In tie up with bright advertising for putting up hoardings all over India. Social networking sites.

Our above the line strategies will be as follows:

Placing an advertisement on television, magazines and newspaper. Internet advertising Hoardings.

MARKET SEGMENTATION:

Market segmentation is divided into 4 compartments: Geographic : urban area Demographics : this is further divided into : 1. Gender: male & female 2. Age: 18 - 30 years. 3. Income: upper-middle class and rich. 4. Occupation: mainly students, bachelors, office goers. Psychographics: Here we have divided the people according to their orientation :

1. Experiencers ( action oriented ): As they are the people who usually are the 1st to try out the new products , they follow fashion and fads , mainly they are the ones sitting on social networking sites & buy on impulse . 2. Actulizers (most resource): As they enjoy finer things, receptive to new ideas, skeptical about ads, readers of many publications and light TV watchers. 3. Achievers (status oriented): they get attracted to premium product and are targets for a variety of products. Also we are targeting all the people who enjoy playing games and who want their class apart or want to have a prestigious gadget with them.

Behavioral: It is made for People who are experimental, watch television, follow fashion trends, will easily accept this product whereas people with conventional backgrounds and rigid perceptions will take longer time to accept this body plus feet deodorant. Mostly the category of experiencers and actualizers along with achievers will buy the product. Attitude toward product: Positive, adaptable with new things and young generation, new technology.

TARGET AUDIENCE: We are targeting the double segmentation that is male & female of age group of 18- 30. People who are open minded and receptive to new ideas. And those who are variety seeking and look for comfort. Who are the ones who like to have new technologies with them, prestige and status oriented who like to play games and who are techno freaks. The target audience is young youth so we have many the ads which would persuade this age group of customers to buy our product.

Advertising Objectives The marketing/advertising objective is to establish TECHTREE as an expert and innovative leader in the MOBILE HANDSET market.. It is able to address different segments within the market although each segment is distinct in terms of its users but it would be very much useful to different segment because of its ease use, quality, long term durability, health protection, and its users get expression of sophistication, status and prestige and are looked upon as trend setters. Communication Objectives: To establish the brand identity of the TECHTREE brand To effectively communicate the USP of the product To ensure a high recall value To persuade prospective customers to change their perspective and shift their preference from their current brand to the TECHTREE brand

The Advertising Campaign We are using aggressive advertising as a part of our campaign. Push strategy will help us push our product in the market and in the minds of our consumers. Our campaign is divided into the launch phase and the post-launch campaign phase. The launch phase includes first the curiosity phase and then the reveal phase which is when the product is actually revealed. The curiosity phase will basically be used to generate curiosity for the brand as well as the product. We will be using tvc as a form of our advertising campaign to generate curiosity amongst the audience.

The reveal phase will be when the product will be launched in the market. The viewer is given complete information about the product and the fact that it is now available in the market is clearly communicated. This will be done by giving ads in newspapers, magazines and also using outdoor advertising like hoardings. The post-launch campaign will be a fresh marketing campaign once the product has been launched in the market. It will mainly involve a consumer-response initiative and the aim will be to further establish the brand and brand character. This will comprise of techniques such as sponsoring events, giving free samples and carrying out activities outside colleges and offices.

MEDIA PLANNING:
We will be launching our product on 1st of November 2011. We will be having three print advertisements in the national newspapers like TIMES OF INDIA, DNA, and HINDUSTAN TIMES. where in we will be having two full page 3D ad in the 1st week in the TOI (Monday and Saturday ), the same 3D ad will be placed in DNA in the 2nd week (Monday and Saturday ) & the same in 3rd week in HT (Monday Tuesday ). On other days the normal print ads will be placed everyday in each news paper. We have targeted two magazines that is FEMINA & GQ India which are monthly magazine where in we will have two ads in each magazine. We will be having 4 TV commercials in total which will be of 30 seconds each. Out of which 1 TV commercial will be played as a teaser 4 days prior to the main launch of the product. The other 3 will be played post launch of the product. It will be telecasted on channels like Star One, Start Movies, and MTV etc. Also, we will be having a Facebook fan page, our own website, a 3D ad which will be placed on log in pages of Gmail and Hotmail & last but not the least we will be having an advertisement on Facebook. Along with it we will also have the TVC being played in the movie theaters like FAME ADLABS, PVR & CINEMAX.

Advertisements

Newspaper advertisement
Newspaper the first advertisement which is a two page advertisement will be a 3d moving advertisement. When the paper will be moved the object will also move. This will contain the line below imagine what this would be like in actual 3d. This advertisement will only be shown in the first time advertisement in all the three newspapers. The remaining advertisements will be the print advertisement.

Internet ad
A 3d product will be put on display where in the viewer can see the mobile phone from all sides and angles and along with this they can also check the phone in the various colors available. There will also be a special feature in the advertisement where the viewer can actually see and check how the display is and also how the messages and the home screen would look along with a few selected icons that are offered with the phone.

Television advertisement and teaser

1) 4 days A boy is sitting on the chair Camera comes from behind. Top shoulder shot the boy is gaming on his Phone. Suddenly a car comes banging out and boy falls of his chair The scene closes with a black screen saying coming soon.

2) The phone opens in all four dimensions. The phone stops and car bikes fighters all of them jump out of the phone. Everything starts racing on the road and street. The guy just comes and picks up the phone and takes a call. The entire element that came out just stops. The call ends and the element again get to life. Tag line: - 3d now in your hand.

3) Only the screen is seen. The lighting is not there only the phone is sparking with all the different color. The phone comes closer focus light on the phone. The transparent phone comes out and it turns.

The transparent phone loses its keys and on that pictures and videos start playing. 4) There is a race happening. There is a big crowed is there. Everyone is taking pictures and videos Person 1 along with the rest is trying. But he is not successful as there is no clarity. The 3d phone is taken out by person 2. The phone gives higher screen resolution. The person 1 is impressed and wants to buy the phone.

Media Scheduling
Media Scheduling for one month i.e. four weeks for all media
I.

TVC

TVC schedule for week 1 Channel

MTV Star one Star World Star Movies

Insertions/ no. of times Ad played

4 4 4 4

Duration
30 seconds 30 seconds 30 seconds 30 seconds 30 seconds

Time slot
Prime time Prime time Prime time Prime time Prime time

Sony 4 TV schedule for week 2

Channel
MTV Star one Star World Star Movies Sony

Insertions/ no. of times Ad played

3 3 3 3 3

Duration
30 seconds 30 seconds 30 seconds 30 seconds 30 seconds

Time slot
Prime time Prime time Prime time Prime time Prime time

TV schedule for week 3 Channel

MTV

Insertions/ no. of times Ad played

2

Duration
30 seconds

Time slot
Prime time

Star one Star World Star Movies Sony

2 2 2 2

30 seconds 30 seconds 30 seconds 30 seconds

Prime time Prime time Prime time Prime time

TVC schedule for week 4 Channel

MTV Star one Star World Star Movies Sony

Insertions/ no. of times Ad played

4 4 4 4 4

Duration
30 seconds 30 seconds 30 seconds 30 seconds 30 seconds

Time slot
Prime time Prime time Prime time Prime time Prime time

II.

Newspapers and Magazines Schedule for week 1

Name Times Of

Placing
Jacket [2 page ad covering

Insertions
2

Time Slot
Monday and Saturday

Size
2 full pages

India

first and last page] Last page 2 Tuesday and Thursday Wednesday and Friday Half page Half page

Hindustan Times DNA

2 page

nd

Schedule for week 2

Name Times Of India Hindustan Times DNA

Placing
First page

Insertions
2

Time Slot
Wednesday and Friday

Size
Half page Two pages Half page

Jacket i.e. first and last page full First page

Monday and Saturday Tuesday and Thursday

Schedule for week 3 Name Times Of India Hindustan Times Placing

Second page

Insertions
2

Time Slot
Tuesday and Thursday

Size
Half page Half page

Second last page

Wednesday and Friday

DNA

Jacket i.e. first and last page full

Monday and Saturday

Two pages

Schedule for week 4

All the ads will be full page ads which will be published on the first page in the special Sunday editions of all the papers.

Magazine schedule for the entire month

Name GQ Femina

Placing
Back cover Back Cover

Insertions
1 1

Time Slot
One full month One full month

Size
Full page Full page

III.

Movie theatres Duration

30 secs 30 secs 30 secs

Name
PVR Big Cinemas Fame

placing
All shows interval All shows interval All shows interval

Insertions
1 1 1

We will have contracts with the movie theatres of 4 metropolises in India i.e. Mumbai, Delhi, Bangalore and Kolkata and in each metropolis we will have 4 theatres booked.

IV.

Internet
1. We will have a Facebook.com fan page. 2. Also, we will have a contract with Facebook.com, wherein, facebook.com will itself create a website for us and also, place our ads on Facebook.com on the right side of the page for a month. Name of the Site Gmail.com Placing NO. of Insertions 15 Time Slot

Login page

Every alternate day for a month

V.

Sponsorship
Two major shows like BIG BOSS and Roadies will be sponsored.

VI.

Outdoor media
A contract worth 1.5 crores will be signed with Bright Outdoor Advertising wherein, the advertising company will put up banners and hoardings of the company in the 4 main metropolises and 4 prime locations of each metropolis will be selected. The ads will keep changing every week for four weeks

Media Budgeting Production of ads

One crore will be spent towards the production of ads.

Newspapers Dailies
Times Of India Times Of India Times of India

Size
Half page Jacket Full Page

Cost
4 lakhs

Insertions 4 2 1

Total cost
16 lakhs

13 lakhs 7 lakh

26 lakhs 7 lakh

DNA DNA DNA Hindustan Times Hindustan Times Hindustan Times

Jacket Half Page Full Page Half Page Full Page Jacket

5lakh 1,60,000 3 lakh 2lakh 40 thousand 6 lakh 10lakh

2 4 1 4 1 2

10lakhs 6lakh 40thousand 3 lakh 9 lakh 60 thousand 6 lakh 20 lakh

Magazines Name
GQ magazine Femina

cost
567000 2,50,000

Placing
Outside back cover Outside back cover

TVC Channels Star Movies Star World Star one Sony MTV

duration 30 secs 30 secs 30 secs 30 secs 30 secs

Insertions 91 91 91 91 91

cost 60000*91=5460000 60000*91=5460000 45000*91=4095000 90000*91=8190000 30000*91=2730000

Movie theatres Name cities PVR Big Cinemas Fame Internet 4 4 4

locations 4 4 4

Total Insertions 16 16 16

Total Cost 7200000 6400000 6400000

We are paying 30 lakhs to the Facebook site for creating our site and advertising about our company. Name of site Gmail.com No. of insertions 15 Cost 15*15000=225000

Sponsorship

Big boss will be sponsored with a crore and Roadies will be sponsored with mobile phones for the contestants

Total Budget
Media
Production of ads TV Outdoor Sponsorship Internet Newspapers Magazines Movie Theatres Site ads Total cost

Total cost
10000000 25935000 150,00000 10000000 3000000 10400000 817000 20000000 225000 9,53,77,000

CONCLUSION:

Future growth determinants in TECHTREE MOBILE category:

Deeper distribution networks thus increasing category penetration.

Increased affluence and disposable income of the urban consumer.

Consumers looking for products that are strong on innovation.

Made By:-

Ankita Suraiya: - 105 Jessica Shah: - 90 Abhimanyu Swarup: - 109 Karishma Shah: - 120 Yash Trivedi: - 20083113 Pratiksha Ramotra: - 76