Product Management

Theory

Objectives
To understand the importance of product decisions in the overall business strategy Strategies at every stage of PLC Do Indian Products have a longer growth phase

Product
An ordinary cracker vs Standard McDonalds Mini-meals - Combination of benefits graphics, logo and the overall packaging well marketed

Classifying consumer products

Tangibility - Goods vs Services
Goods - Durability Durables vs consumables Better call products rather than service or goods

Consumer buying behaviour

Melvin Copeland 1924, for consumer products and generalised

Convenience products Shopping products Speciality products Unsought products

Convenience products
relatively inexpensive, purchased regularly and repeatedly, impulse purchase, minimum shopping effort Distribution is key No effort from retailers for substitution Heavily advertised Staples, impulse and emergency Milk, match-box,petrol, M-Seal

Shopping products
Products are compared, additional information is sought, merchandise studied, reassurance sought on quality, style, or value Buyers see a benefit of shopping High involvement buying behaviour
Homogenous evaluation only on price
Basmati, underwear, washing machines, crackers

Heterogenous identifiable product differences

Higher social and monetary risk Driven by fashion Willing to shop for quality, brand names or style Insist on store I bought this suit at Shoppers Stop

Speciality products
Product quality extremely important Customers know what they want and what they are getting into Select brand in advance and are not looking for alternatives High brand insistence Exclusive distribution Advertising to build brand values, its uniqueness and the value attached Stereo, Piano, cars

Unsought products
Customers dont want are are not aware
New unsought goods
Need reach and awareness measures Amul Kool, Railway internet bookings

Regularly unsought
Personal selling is key Insurance, encyclopedias Blood donation Funerals/Gravestones

Business/Industrial products
Derived demand Price inelastic Tax treatment is key

Business product classification

Installations Accessory Raw materials Components Supplies Professional services

Goods vs Services
Goods Durable or non-durable Services intangible Goods-services is a continuum automobiles
Good Good/Service Service

Product
A bundle of benefits(customers buy satisfaction, not parts) Has many aspects tangibility, consumer driven and benefit designed.Hence, we need to look at Total Product the broad spectrum of tangible and intangible benefits that a buyer might gain after purchase 1/4 Drill bit, LIC, Apna Bazaar Hood ornaments in automobiles sculptures of women, animals or air-planes now obsolete, dead and ugly dumped for a smoother look

Total Product concept

Guarantees & Warranties Replacement Or Repairs Attributes Instruction Manual Styling Core Product After Sales Service

Core Product

Formal Product Augmented Product

Payment Options Quality

Colour

Delivery Points & Systems

Brand name Packsging Customer Complaint Management Customer Educaon & Training

Installation (For bulky Products)

Future Product
Theodoore Levitt

Total Product concept

Guarantees & Warranties Replacement Or Repairs After Sales Service Engine displacement Volume(CC) Styling Vehicle MaXx Payment Options A/c Brand name Tyres Customer Complaint Management Customer Educaon & Training

Core Product

Formal Product Augmented Product

Mileage

Colour

Delivery Points & Systems

CRM

Future Product
Theodoore Levitt

Product strategy and Product (positioning) Concept

Product strategy
The planning and primary(core) and auxiliary(formal, augmented and future) dimensions of a product

Product concept
The end result of the marketing strategists selection and blending of the products multilevel dimensions into a basic idea emphasizing a particular set of consumer benefits It is the essence or the core idea for positioning It is the reason for buying

Rasna
Product strategy
Convenient, economical refreshing concentrates which are easy to use by housewives into a soft, ready to serve drink

Product concept
Healthy alternative to carbonated drinks

Product Mix
Product Lines
Different products that are relatively close to each others, satisfy a particular class of needs, or are used together, or are bought by a set of customer groups or are distributed through the same channels

Product Items
One particular version of a good or a service

Variants

Product Line
ITC
Tobacco Products- Wills, Bristol, India Kings, Clasic Hotels - Welcomgroup Consumer Products Sunfeast, Sundrop Exports Agro-products Apparels - WLS Sub-optimal product mix indicators: Excess capacity High proportion of profit from small percentage of products Insufficient use of sales staff Steadily declining sales/profits

Depth of a product line

Number of different product items offered in a product line Haldiram, Bedekar Inventory management critical Need to ensure marginal additions are justified

Width of a product line

Extent of the product lines P&G Needs a large pool of resources and experience Global companies have an edge as they save on product development and learnings

Product Mix decisions

Product line addition/deletion Product Abandonment Product Modification

Product Line addition

Upward/downward Done due to structural changes in marketplace like customer lifestyles and demographic changes like increased disposable income, media explosion, competition, better marketing capabilities, exploit brand image in other class of products Fashion, Entertainment, automobiles and Mobile phones

Tommy Hilfiger
ARVIND Murjani Brands Pvt Ltd (AMB), a joint venture between Murjani Group and Lalbhai Group has entered into a licensing agreement for marketing and distribution of Tommy Hilfiger mens' sportswear, mens' jeanswear and juniors' jeanswear collections in freestanding speciality stores apparel in India in spring 2004

Product abandonment
Excessive management time, low demand, uneconomical, low contribution, outdated North Star, FUS, Avis, Action, Killer, UFO Bajaj Legend, Cielo

Product Modification
Changing tastes Tangible/intangible Reformulation, redesigning, changing unit sizes, adding or removing features Numero Uno, Levis Dangerously Low, Old look, Wild leg flares and boot cuts

Tools
BCG GE PLC PIMS

Defining corporate mission

To share with managers, employees and customers. A well worked mission statement provides employees with a sense of purpose, direction and opportunity Good mission statements - focus on limited goals - stress the major policies and values the company wants to honor

Mission Statement - components

The mission statement communicates the firm's core ideology and visionary goals, generally consisting of the following three components: Core values to which the firm is committed Core purpose of the firm Visionary goals the firm will pursue to fulfill its mission

Burger King
CUSTOMER PROMISE BURGER KING is flame broiled burgers, fries and soft drinks at a good value served quickly and consistently by friendly people in clean surroundings.

Indian Oil Corporation

To excel in petroleum refining and marketing - Indian Oil Corporation.

Establishing Strategic business units

Define the business as a customer satisfying process Levis sells American attraction

SBU has 3 characteristics - it is a separately planned business unit - own set of competitors - it has a manager responsible for strategic planning and profit performance

Boston Consulting Groups (BCG) Growth-Share Matrix

20%18%16%14%12%10%8%6%4%2%0

Market Growth Rate

Stars

Question marks

5
Cash cows

?? ?
2
Dogs

1 8

6
10x 4x 2x 1.5x 1x

7
Relative Market Share
.5x .4x .3x .2x .1x

Strategies
Build Question Marks Hold Stars and Strong cash cows Harvest Weak cash cows, dogs and question marks reduce costs(R&D, new staff/replacement staff, advertising) faster than drop in Sales Divest Sell or liquidate the business dogs and question marks-drags

GE/ Mckinsey Matrix

The GE matrix generalizes the axes as "Industry Attractiveness" and "Business Unit Strength" whereas the BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market share as a proxy for the strength of the business unit. The GE matrix has nine cells vs. four cells in the BCG matrix.

GE/ Mckinsey Matrix

Strategy Formulation
Firms that do not produce clear strategies do not perform well.

Planning new businesses Ansoff matrix

Intensive Growth Strategies strategy notes\Ansoff Matrix.htm
CURRENT PRODUCTS CURRENT MARKETS NEW MARKETS NEW PRODUCTS

MARKET PENETRATION

PRODUCT DEVELOPMENT

MARKET DIVERSIFICATION DEVELOPMENT

Strategies
Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share. Market Development - the firm seeks growth by targeting existing products to new geographical markets or segments. Product Development - the firms develops new products targeted to its existing market segments. Diversification - the firm grows by diversifying into new businesses by developing new products for new markets

Sales and Profits ($)

Adoption and Diffusion: The Product Life Cycle (PLC)

Sales

Can brand name be used to extract good will before this?

Profit

Intro

Growth

Maturity Time

Decline

Marketing During a Products Life

Stage of the product life cycle Growth Sales revenue or profit Introduction Total industry sales revenue + 0
Gain Awareness Gain Awareness None None One One Inform/Educate Inform/Educate Limited Limited Differentiate Differentiate Growing Growing More Versions More Versions Stress competitive Stress competitive differences differences More outlets More outlets

Maturity

Decline

Total industry profit

Marketing Marketing Objective Objective Competition Competition Product Product Promotion Promotion Distribution Distribution

Maintain Loyalty Maintain Loyalty Many Many Full line Full line Reminder Reminder Many Outlets Many Outlets

Harvest Harvest Reduced Reduced Best sellers Best sellers Minimal Minimal Few Outlets Few Outlets

The Diffusion Process

Early adopters 13.5% Innovators 2.5% Early majority 34% Late majority 34% Laggards 16%

Time Laggards: Laggards: Innovators: Innovators: Traditional, fear Traditional, fear Venturesome, Early majority: Venturesome, Early majority: of debt, of debt, higher educated, Deliberate, many higher educated, Deliberate, many neighbors and neighbors and use multiple informal social use multiple informal social friends friends information contacts information contacts Early adopters: are information are information sources Early adopters: sources Respectable, sources Respectable, sources Late majority: Late majority: Leaders in Leaders in Skeptical, below Skeptical, below social setting, social setting, average social average social slightly slightly status status above average above average

Branding
By Prof. Mangesh Borse

Christian Mikunda

Brand
Haywards, Miller Lite, Kingfisher, Fosters Ancient rulers did it to identify the culprit if anything went wrong Forced to identify their brands with their names, the manufacturers started taking greater pride in the products and made them better than others

Brand
Products + a bundle of emotions

Brand
Branding serves both the sellers and the buyers A brand is a name, term, symbol, sign, design or unifying combinations of these A brand name is the verbal part of the brand Brand mark is a unique symbol A distinctive way of writing a brand name is the logo

What is a brand?
A brand is a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
(American Management Association)

What is a Brand?
Claim of distinction Set of core values Communicates what business is about Sets a company apart

What a Brand is Not

Not only a color scheme, logo or slogan
These are tactics

Tactics do not state what is unique about the company

Brand Marks
Windows

Brand Identity
Name House Colours Baseline Design Mark(logo)

Event Branding

Service branding

Rights ..
The seller has extensive rights till perpetuity (Patents and copyrights have periods)

Brand meanings
Attributes: Mercedes suggests expensive, well engineered, well built, durable, high prestige cars Benefits: Functional and Emotional benefits
Tata- reliable Kamasutra-

Values: Producers values:

McDonalds -hygiene

Brand meanings
Culture: Birla-conventional, Relianceaggression, HLL- professionalism Personality: HLL MTNL User:
Pepsi vs Coke Barista vs Udipi

Brand equity
Value:

Morepen Laboratories the brand name 'Burnol' from Reckitt Piramal Ltd for 8.6 cr Crocin was taken over by SKB from Duphar for 75 cr The real value of the brand
My acid test . . . Is whether a housewife, intending to buy Heinz tomato ketchup in a store, finding it to be out of stock, will walk out of the store to buy it elsewhere Tony OReilly, CEO Heinz

Brand Equity
The value of the brand Burnol, Crocin, Clearasil, Hamam, Thums Up equities A strong brand is an asset
Strong entry barrier Represents the high proportion of customers who love the brand Competition needs huge spends to create another onemedia, distribution, sales force, advertising

Brand equity- six levels

1. 2. 3. 4. 5. Customer will change brands for price. No loyalty Customer is satisfied. No reason to change Customer is satisfied and would incur costs by changing brands Customer values brand and sees it as a friend Customer is devoted to brand Brand Equity is related to 3,4 and 5 + brand name recognition, perceived quality of brand, strong mental and emotional associations etc

Brand Name Decisions

Suggest product benefits Fair and Lovely Suggest product qualities - Bullet Easy to pronounce, recognise and remember Shoppers Stop Distinctive - Karate Should not carry negatives - Satkar

Packaging
Designing and producing the container for a product Labels
Salience Imagery Stand out in clutter Mnemonic Legally correct

Brand Development, Problems & Opportunities

Regular Advertising Tactics

Looks at customers to find need
Ex. Customer wants low prices

Tries to meet need

Lowers price of product

Competition is doing same thing

Have price war

Creates brand parity Without value, price is only measure of value

Brand Development Differs

Look closely at the company and find core distinction What promises can be delivered
Unique Selling Proposition (USP)

This value separates from competition

Creates brand equity

Brand Exercise
McDonalds Pepsi Mahindra American Express

Brand Example #1: Maytag

Doesnt compete on price Quality promise
Machines dont break down Worlds loneliest repairman

Value translates to other products

Ex. Toaster

Brand Example #2: L'Oreal

Doesnt compete on price Doesnt compare Positions itself in the consumers mind
Because Im Worth It

Provides value that is unique

Problems & Opportunities

Fire Fighting Companies
Should focus on strategic prevention

Problem
Any barrier or situation that makes it difficult to achieve an objective

Opportunity
Situation or circumstance that can potentially give the company a marketing advantage

Problems
Related to sales or market share Not easy to change
Product line, price or distribution

Adjust promotion (or communication) Is it persuasive? Is the consumer aware? Are the media channels the most effective?

Opportunities
Good companies turn problems into opportunities Many things must happen to make change

Problem/Opportunity Examples
Arm & Hammer
P: Cooking use limits potential O: Developed new uses (freshens refrigerator and freezer)

Miller Lite beer

P: Male drinkers see low-calorie as sissy beer O: Associate product with very masculine men

Problem/Opportunity Examples
McDonalds
P: Indian snacking habits - rigid O: Developed new indianised menu

Miller Lite beer

P: Male drinkers see low-calorie as sissy beer O: Associate product with very masculine men

Problem/Opportunity Examples
A-1 Steak Sauce
P: Use of A-1 is sporadic (forgot to use it) O: Place the word refrigerate on the bottle

Colgate
P: Poor usage per occassion O: increase nozzle

Problem/Opportunity Examples
Must anticipate response of competition Hunts ketchup
P: Pours slowly O: Made a bottle with a bigger opening

Heinz ketchup
P: Pours slowly O: Associate slow pouring with richness

Opportunities
Good companies turn problems into opportunities Many things must happen to make change
External Factors: Political, legal, cultural, social
Indian cricket team back in Pakistan

Internal Factors: finance, production, marketing

Financial Resources
Must have sufficient capital to
Initiate action and sustain activity

Pizza Example
Low overhead with dine-in only Expand overhead if include home delivery Home delivery needs speed To speed up baking need Rs 25L conveyor oven To get decent return must draw more business

Production Resources
Thinking up new product concept or service is easy Producing it is more difficult
Saffire zi

Must have sufficient resources to produce

Quality product Competitive price

Need management expertise, technological competence and right physical facilities

Marketing Resources
Must have marketing-savvy people in decision making positions Tata Indicom
Good production resources to make cellphones, but Tatas could not drive demand

Reliance India Mobile

Focused on marketing, and trials

Prepaid super duper

Marketing Resources
Ford Motor Co.
Good production resources to sell cars, but Henry Ford only sold black automobiles

General Motors
Focused on marketing

Opportunities: Four Ways to Increase Sales

Retain Current Users
Competition tries to lure away Cost of new acquisition is 5 times cost of retaining

Getting Current Users to Use More

Give them reason to use the product more NECC: Sunday ho ya Monday, roz khao ande

Opportunities: Four Ways to Increase Sales

Find New Uses for a Product
Find new, slightly different ways Nylon

Find New Users

Look where you and the competition have been successful Look in new places
Demographic and psychographic profiles
Computers in school

IMC
Introduction to IMC how it differs from previous marketing communications practice benefits and barriers implications for agencies and clients of using IMC

IMC
The process of integrating all elements of the marketing communications mix across all customer contact points to achieve greater brand coherence. Elements of marketing communications mix include: advertising packaging sales promotions sponsorship PR product placement direct marketing

Whats different about IMC?

For decades, marketers used the different communications methods to achieve different objectives they were managed separately now, marketing thinking suggests that these methods should be co-ordinated

Why do IMC?
To increase communications effectiveness and consistency to promote synergy. But no common consensus on what IMC

Benefits of IMC
Promotes customer focus leads to a recognition of all audiences means clear objectives are set encourages consideration of full range of media vehicles and use of communication methods

Why IMC now?

Certain factors have encouraged the adoption of IMC by agencies: communications mix specialist new agencies growth in media planners/buyers client awareness international communications

Why IMC now? Contd

relationship marketing technological advances growing recognition of the benefits of IMC

Barriers to IMC
Reluctance of industry to change messy organisational structure budgeting remuneration for agencies internal and external factors

Example of IMC
how advertising featuring a simple idea was extended to all media uses advertising objectives, target market research, and evaluation to present a convincing argument for the power of IMC

ICICI launch
TVC Print Mailers Youth magazines Crossings Internet Outdoor

Campaign performance
Established ICICI Prudential as a reliable brand Initial trials were very good But the IMC worked Today, ICICI Prudential is the leading Private Insurance provider

ADVERTISING

Type of Advertising Target Audience Creative Strategy Media Strategy

Advertising

Paid form of non-personal persuasive communication with set objectives Different for PR, CRM, Sales Promotions

Advertising Process
Marketing Strategy Advertising Strategy Objective setting Budgeting Message Strategy Media Strategy Strategy Implementation Assessing Advertising Effects

The Target Market Decision

3 Basic Target Market Decisions
Undifferentiated Market
Use broad, dramatic creative appeals to be effective Tata Namak

Differentiated market
Divided market into sections (primary, secondary and tertiary) Identify target audience and refer to target groups or Call everything the target market audience ITC Bristol, Wills, Classic, India Kings

The Target Market Decision

3 Basic Target Market Decisions (contd)
Concentrated Market or Market Niche
Target smaller segment in overall market Doesnt compete against market share leader in all segments Problem occurs when leader develops niche product

Example: Krack, Smile, Itch-guard

Defining the Target Market

Demographic variables Psychographic Variables (lifestyle) Product Usage (heavy, medium, light) Brand loyalty Benefit segmentation Consumers:
Needs Problems Wants Motivations Interests

Objective Setting Corporate Communications Objectives

to enhance organisational effectiveness to generate greater profits to improve competitive position Eg To achieve excellence in petroleum refining and marketing Indian Oil

Marketing Communications Objectives

Possible specific objectives (quantitative) to increase sales from Y to X to raise the level of awareness to generate n responses / enquiries Possible sub-objectives (qualitative) to convey information to create desire to improve the image of product X or brand Y to mitigate the effect of premium price

TYPES OF ADVERTISING
Institutional Advertising Promotes an organization and its image & reputation Product Advertising Promotes specific products Business to Business Advertising Target is other businesses

ADVERTISING AGENCIES
Much of the Work Is Done by Few Super-Agencies, e.g. WPP JWT, ONM, MINDSHARE, BATES, EQUUS INTERPUBLIC LOWE, ENTERPRISE NEXUS, INITIATIVE MEDIA, QUADRANT MUDRA Full-Service Vs. Specialized: MINDSHARE, DIREM, RURAL RELATIONS, SAMPARK, OGILVY LANDSCAPES, ANUGRAH Often Work on Commission - (% of media time) Fees, Contracts

THE ADVERTISING AGENCY

Account Management Manages relationship with the client Creative Services Artists, copywriters, Art Director Research and Marketing Services Research competition, target segment; test ads Media Planner - Selects media strategy Account Planner - Makes sure ad fits segment

Process of advertising
Brief Strategy/Insights Creative

Research

Media

Monitor

Collection

Financials

The triangle of delight

Creative

Advertising

Media

Client Service

Why psychology
The real reasons for brand buying are never rational As more and more products become metoo, USPs are replaced by ESPs

Maslows hierarchy of consumer needs

Self actualisation - fulfillment, do what you can do best/ do what you want to do Esteem - self-respect, reputation, prestige and status Belongingness - affection, peer acceptance Safety - security, order, protection and family Physiological - food, clothing. shelter

Motive - Reason to Buy

an inner urge that moves and prompts a person to action Primary - food, drink, sex, comfort, freedom from fear, superiority, social approval and longevityfundamental drives commonly experienced Secondary - Bargains, information, cleanliness, efficiency, convenience, dependability, convenience, style, beauty - through experience and exposure

Motivators
Health Security Prosperity Approval Attraction Comfort Sensuous Pleasure Egotism Curiosity Family bonding IQ stimulation/growth Fear Hero worship

Consumer Purchase Behaviour Models

AIDA - Attention - Interest - Desire - Action DAGMAR Defined Advertising Goals for Measured Advertising Results - Non awareness awareness - comprehension - conviction motivation Hierarchy of effects model - Unawareness awareness - knowledge - liking - preference conviction - purchase Stimulus Response Model

Stimulus Response Model

Product Attributes Corporate attributes

Attitudes Influences Perceptions

I N P U T S

Black Box

O U T P U T S

Behaviour

Situational including competitive circumstances

THE APPEAL
Hard Sell (Product Centered) USP - Unique Selling Proposition One clear reason why the product is better.

Soft Sell (More Indirect) Looking for an emotional response

Benefit
ABenefit is an attribute of the Product (or Service) which implies or explains how a Customers NEED will be fulfilled! (i.e. how the Product will be of benefit)

Benefit Barrier
ABenefit barrier is an psychological belief that acts as a deterrent to the consumer from believing in the benefit

Benefit Barrier
Cadburys Diary Milk

Itch Guard! Onida Televisions

Consumer Insight:

An insight is

A deeply felt human truth that links our lives to our brand

+ A new angle on old subject

True and new Instant attention Touched a nerve Hit a hot-button Struck a chord

The effect it has

Long term connection The brand understands helps me

Consumer Insight:

An insight is

+ I am a mediocre investor

A new angle on old subject

The best investments in life are the ones I missed

The effect it has

Instant attention Touched a nerve Hit a hot-button Struck a chord

Long term connection The brand understands helps me

Insights
Everyone feels he/she is the best thing that has happened to the world Women spare a last look in the mirror Car drivers look down upon three-wheelers, three wheelers look down upon 2 wheelers, and so on When it comes to a dish, we always check others before touching yours People communicate strangely in different situations train, bus, lift, road

7 BOX ADVERTISING STRATEGY

Target Audience Current Belief

Current Do

Proposition

Desired Belief

Support

Desired Do

ADVERTISING STRATEGY
Mothers
Kids
Icecreams/chocolates mess up the teeth Brushing is the only dental hygiene habit

AVOID

Pepsodent kills germs even hours after brushing

Allows them to be happy

Superior germicheck formula

Shift!

Brief
Understand the product Manage the information Learnings from research Select the key benefit Excite the creative team

Actal
Anti-flatulant Antacid No wind

Kaminomoto
Hair vitaliser Local laws did not permit following for this category
Logo Brand promise Pack shot

Kaminomoto

Surprise always works

tera chehra.exe

Use simple human realities

Advertising Budget
Stage in the PLC Market share and consumer base Competition and clutter Advertising frequency Product substitutability

Creative Strategy
Message Generation Message Evaluation and selection Execution Review

Message Execution
USP vs. ESP Critical for mass brands Style: Slice of life, Lifestyle, fantasy, mood or image, musical, personality symbol, technical expertise, scientific evidence or testimonials

Research for message generation

Inductive - one-on-ones with dealers, customers, experts and competitors Deductive - Benefit - rational/sensory/social or ego satisfaction through post usage experience(testimonials), in-use experience(descriptors) or incidental-to-use experience.

ADVERTISING EFFECTIVENESS
Pre-testing Concept testing Copy testing Post-testing Unaided recall Aided recall Attitude measures

Media steps

Decide on reach, frequency, impact Choosing among media options Selecting the media vehicle Scheduling Deciding on geographical media allocation

Deciding on media - Reach, frequency, impact

Reach: The number of different persons exposed to a particular media at least once during a specified time period Frequency: The number of times within a specified time period that an average person is exposed to the message Impact: Qualitative value of an exposure through a given medium

TYPES OF MEDIA
Broadcast Television, Radio Print Magazines, Newspapers, Directories Direct and Interactive Direct Mail, Web, E-mail Specialty Advertising Outdoor/Out-of Home

HOW TO SELECT MEDIA

Promotion Objectives Target Market - Their Habits Funds Available Nature of the Media

Overall Fit With Rest of Marketing Mix

Media Choices
Medium Advantages Limitations
short life, small passalong audience immobile, expensive, high clutter, less selectivity less attention, fleeting

Newspapers Flexibility, topical, localised, credible Television Audio + video, captive high reach Radio Mass use, economical

Share of adspend by media

% Share Radio 4 3 3 3 3 2 2 2 2 2 2 TV 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 23 20 22 25 30 35 38 41 46 45 48 Press 63 67 69 66 61 54 46 43 46 44 43 Cinema 0 0 0 0 0 0 1 1 1 1 1 Outdoor 10 10 6 6 6 9 13 13 6 8 6 Total 100 100 100 100 100 100 100 100 100 100 100

Source: Indian Media Business Vanita Kohli

DECREASE IN % of PROMOTION BUDGET FOR ADVERTISING

Erosion of Brand Loyalty Greater Emphasis on P-O-P Factors Audience Less Concentrated 100 TV channels, 1000s of magazine titles Consumers Have More Power Client Companies Not as Loyal Switch agencies & put accounts up for review

But, total Ad spendRs 10,230 cr in 2002

Selecting the media vehicle

Circulation/ viewership/ listenership Cost per thousand Impact

Hamara Bajaj
Case study

Hamara Bajaj
Fear of Honda Kinetic popularity Strengths from indianness Countrywide appeal

New Hamara Bajaj

No relevance in terms of customer No relevance in terms of products No relevance in terms of environment But, the core of the thought was Indian The new commercial was focussed on CHANGING INDIA, UNCHANGING INDIANNESS

IMC
Print Newspapers Posters Internet Banners Ringtones(?)

Mard Mahindra
Global Leadership Multiple Products Quality Rugged Value - Economy

ADVERTISING OBJECTIVES

Introduce New Products Inform and Persuade Build and Reinforce Brand Image Get Immediate Action! Provide Ongoing Contact Help Confirm Decision Help Obtain Distribution Prepare for Personal Selling

New product launch

Headline: Adventure & Luxury. Together, like never before Subhead: The new Honda CRV. Combines the thrilling good looks of an SUV with the comfort and smooth drive of a luxury sedan. You've never seen it before and you may never see it again. Bodycopy: Baseline: The incomparable

Inform and persuade

Headline: A reality called India through the eyes of the city of dreams. Subhead: Mumbai Live With Sreenivasan Jain, 11 pm. Weeknights. Baseline: Experience. Truth first. AGENCY: St.luke's

Build and Reinforce Brand Image

Baseline: Unstoppable AGENCY: Everest

Get Immediate Action!

Headline: Iurance is not about everything going wrong. It's often about things going right. Subhead: Bodycopy: When things are going right, it is the time you start planning. It may be for your son's higher studies or daughter's wedding. For times like these, it's usually finances that one thinks of first. Flexi Save Plus Endowment Plan from Birla Sun Life Insurance is a flexible insurance plan, which offers you the dual benefit of an insurance cover as well as an investment opportunity, thus helping you grow your savings. Baseline: Your dreams. Our commitment

Provide Ongoing Contact

Headline: Ju deo woh liyo! Subhead: Over the table Bodycopy: Baseline: The Taste of India AGENCY: daCunha

Help Confirm Decision

Subhead: Looking at me? Bodycopy: Noticed a VIP lately? You'll find the Elanza in Ravishing Red, Electric Green, Smart Blue and Charcoal Grey. At VIP Lounges, VIP Worlds and leading VIP outlets. Baseline: AGENCY: HTA

Prepare for Personal Selling

Headline: New York Life Subhead: India. We are here. For life. Bodycopy: Imagine a multi-business corporate, driven by the spirit of enterprise, focused on the knowledge, people, and service-oriented businesses of healthcare, life insurance and information technology. Then, for a moment, imagine one of the world's experts in life insurance. A Fortune 100 company with 156 years of experience in the business and over US $ 138 billion in assets under management. That's MAX NEW YORK LIFE. Together, we wish to provide you with focused, flexible and value-driven service. Why would you do business with us? For one, we are specialists. Life insurance is all we do. We are flexible and professional when it comes to doing business. Above all, we are transparent and financially responsible. At the heart of our service lie professionally-trained agents with integrity. Call us and experience the difference. We are also a reflection of your real needs. We have a whole host of convenient features such as the free look option and Personal Insurance Plan. Additionally, we are available 24 hours a day on our Helpline. All of this, we believe will help us build a great partnership with life in India and indeed the lives of Indians. So, if you wish to experience a whole new way of looking at life insurance, look at us. MAX NEW YORK LIFE. Insurance now gets a fresh new life. Baseline: Your partner for life AGENCY: Equus

Help Obtain Distribution

EXECUTION FORMATS
Lecture

Demonstrations- ads\Parker pen Collage.mpeg Problem Solving- ads\VIM BAR Halwai.mpeg Testimonials- ads\Balbir Pasha BAR.mpeg
Drama

Slice of Life ads\Fair & Lovely Cricket 60 Sec.mpeg Storyline ads\Bajaj Caliber 115 Picnic 60 Sec.mpeg Lifestyle-ads\VIP Luggage 30 sec swing.mpeg Humour- ads\St. Gobin Cafe.mpeg

Execution- Radio
Humor Functionality Relevance Social Awareness Proposition

What do you need to have in you?

Information comfort Knowledge attitude Leadership skills Love people Relationship builder Good presentation skills Personality Thought worker

Future shock
Specialisation will be the order of the day In medium to long term, successful personnel will shift to consultancy, BPOs, internet start-ups, or specialised media like DM, Event Management, Rural marketing, TV or Radio

Future shock
They will have an Advertising co-ordinator Large agencies will try to specialise in any one of these fields Small agencies will be advertising even smaller brands

Future shock
Businesses will be more vulnerable and will work towards reducing risks Research will only continue to grow, with the virgin territory of the internet

 If you do enough things poorly, you will go out of business

Business@The Speed of Thought

Information flow is the lifeblood The internet changes everything Exploit cellular technology Manage knowledge to improve strategic thoughts Bring insights to business operations Expect the unexpected

Art of survival
Resolve Discipline Know more Adapt Pass the baton with a smile

OGILVY ON ADVERTISING
If each of us hires people who are smaller than we are then we will become a company of dwarfs. But if each of us hires people who are bigger than we are, we shall become a company of giants.

Thank You
Prof. Mangesh Borse
mangesh.borse@welingkar.org