ADVERTISING AGENCY OF INDIA

ADVERTISING AGENCY OF INDIA

Chapter 1

SIDVIN SCHOOL OF BUSINESS, BANGALORE

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ADVERTISING INTRODUCTION

Advertising is a form of communication communication whose purpose is to inform potential customers about products and services and how to obtain and use them. 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. For these purposes advertisements often contain both factual information information and persuasive messages. Every major medium is used to deliver these messages, including: television, radio, movies, magazines, newspapers, video games, the Internet (see Internet advertising), advertising ), and billboards. Advertising is often placed by an advertising agency on behalf of a company. Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences. "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes." - Attributed to Howard Gossage by David Ogilvy

Advertisements can also be seen on the seats of grocery carts, on the walls of an airport walkway, on the sides of buses, heard in telephone hold messages


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and in-store public address systems. Advertisements are usually placed anywhere an audience can easily and/or frequently access visuals and/or audio and print organizations which frequently spend large sums of money on advertising but do not strictly sell a product or service to the general public include: political parties, parties , interest groups, groups, religion-supporting religion-supporting organizations organizations , and militaries looking for new recruits. Additionally, some non-profit organizations are not typical advertising clients and rely upon free channels, such as public service announcements announcements . Advertising spending has increased dramatically in recent years. In the United States alone in 2006, spending on advertising reached $155 billion, reported TNS Media Intelligence. [1] That same year, according to a report titled Global Entertainment and Media Outlook: 2006-2010 [2] issued by global accounting firm PricewaterhouseCoopers, worldwide advertising spending was $385 billion. The accounting firm's report projected worldwide advertisement spending to exceed half-a-trillion half-a-trillion dollars by 2010. While advertising can be seen as necessary for economic growth, growth, it is not without social costs. costs. Unsolicited Commercial Email and other forms of spam of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers. providers.[3] Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation.

Meaning - Advertising is the promotion of a company’s products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows:


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ADVERTISING AGENCY OF INDIA •

Increasing the sales of the product/service

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Creating and maintaining a brand identity or brand image.

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Communicating Communicating a change in the existing product line.

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Introduction of a new product or service.

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Increasing the buzz-value of the brand or the company.

Thus, several reasons for advertising and similarly there exist various media which can be effectively used for advertising. Based on these criteria there can be several branches of advertising

Definition; One definition of advertising is: "Advertising is the nonpersonal communication communication of information usually usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media."(Bovey, 1992, p. 7) So much for academic doubletalk * Advertising is a form of communication that typically typically attempts to persuade potential customers to purchase or to consume more of a particular *Advertising - communication whose purpose is to inform potential customers about products and services *Advertising - Any paid form of no personal presentation and promotion of ideas, goods, or services by an identified sponsor. *Advertising - Usually a company’s encouragement to consumers to buy its products or services. Advertising is paid for by the sponsoring business. No journalists often confuse advertising with publicity *Advertising - A paid, mediated, form of communication communication from an identifiable source, designed to persuade the receiver to take some action, now or e future

Types of advertising


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Print Advertising – Newspapers, Magazines, Brochures, Fliers The print media have always been a popular advertising medium. Advertising Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Often the newspapers and the magazines sell the advertising space according to the area occupied by the advertisement, the position of the advertisement (front page/middle page), as well as the readership of the publications. For instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership. The price of print ads also depend on the supplement in which they appear, for example an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre quality paper.

Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passers by. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the company’s products. Organizing several events or sponsoring them makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products.


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Broadcast advertising – Television, Radio and the Internet Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers. The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the popular radio jingles.

Covert Advertising – Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly (or sometimes evidently) showcased in the entertainment show. Some of the famous f amous examples for this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded.

Surrogate Advertising – Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a


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particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising.

Public Service Advertising – Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, deforestation, illiteracy, poverty and so on. David Ogilvy who is considered to be one of the pioneers of advertising and marketing concepts had reportedly encouraged the use of advertising field for a social cause. Ogilvy once said, "Advertising justifies its existence when used in the public interest it is much too powerful a tool to use solely for commercial purposes.". Today public service advertising has been increasingly used in a non-commercial non-commercial fashion in several countries across the world in order to promote various social causes. In USA, the radio and television stations are granted on the basis of a fixed amount of Public service advertisements aired by the channel.

Celebrity Advertising Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing up celebrities for advertising campaigns, which


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consist of all sorts of advertising including, television television ads or even print advertisements.

The features of advertising 1. the fact that that it is is ‘a paid paid form’ of presentation emphasis’s emphasis’s that that advertising advertising space or time must be purchased 2. its “non personal” nature emphasis’s emphasis’s the fact fact that it is not a direct or personalized presentation to one individual but to the masses 3. “presentation” signifies the format format in in which advertisement communicate 4. “promotio “promotion n “indicate “indicates s the objective objective of adverti advertising sing and 5identified sponsor refers to the identification identification of the brand or the advertiser that is communicating Today advertising has become an integral part of our social and economic structure. An increasing number of company’s are spending millions of dollars on advertising in India every year.

Significance of advertising: In every walk of business and industrial activities, there is a throat-cut competition, therefore no business can survive without advertisement. Advertisement is useful not only for the business b usiness enterprises but for the community as a whole. The economic utility of advertisement can broadly be divided into five categories:

1) Benefits to Manufacturers:


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Helps in Creation of demand for new products

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Helps in Stabilizing the demand for the product

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Helps in increasing the demand for existing products

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Helps in introduction of new products

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retail price maintenance

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increase in profits

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Creates a brand image in the minds of consumers

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Reduces the cost of production

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Helpful in establishing a direct contact between manufacturers and consumers

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Helpful in getting efficient, experienced and effective middlemen

2) Benefits to Middlemen: •

Increases the rate of turnover of stock.

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Convenient in selling

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Stability in sales and profits

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Reputation created is shared by the wholesalers and the retailers alike.

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Ensures more economical selling

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Increase in sales

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Increase in goodwill

3) Benefits to Consumers: •

Provides knowledge of new products

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Convenient in purchasing, i.e., where and when to buy

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Provides opportunities to compare the merits and demerits of various substitute products

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Saving of time and labor

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No possibility of cheating by sellers

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Modern advertisements are highly informative


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Increase in the standard of living

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Elimination of middlemen

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Stresses quality and very often prices that forms an indirect guarantee to the consumers.

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Provides knowledge of alternative uses of products.

4) Benefits to Salesmen: · Makes the introduction of new products easy · Reduces sales efforts · Establish good and permanent contact with the customers · Helps in weighing the effectiveness of advertising.

5) Benefits to Community: · Creates more employment opportunities opportunities · Increases standard of living · Encourages healthy competition · Encourages research and development · Helpful in industrial progress and prosperity · Encourages art and designing · Educative

Functions of advertising 1. To differentiate the product from fro m their competitors SIDVIN SCHOOL OF BUSINESS, BANGALORE

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2. To communicate communicate product information 3. To urge product used 4. To expand the product distribution 5. Too increase brand preference and loyalty 6. To reduce overall sales cost 7. Creates new demands

1. Differentiate the product from their competitors : An important function of advertising is the identification function, that is, to identify a product and differentiate it from others; this creates an awareness of the product and provides a basis for f or consumers to choose the advertised product over other products this creates an awareness of the product and provides a basis for consumers to choose the advertised product over other products. The identification function of advertising includes the ability of advertising to differentiate a product so that it has its own unique identity or personality. There are four additional ways to differentiate your offering from the competition and increase your differentiation: 1. leveraging the brand, 2. innovating your service offering 3.

designing product

4. packaging

2. Communicate product information


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Another function of advertising is to communicate information about the product, its attributes, and its location of sale; this is the information function. Product information communicated communicated to the customers in manner that meets their information needs. Most consumers tend to discount the information in advertising because they understand that the purpose of the advertising is to persuade. Making an advertising message believable is not easy; though often it is sufficient to make the consumer curious enough to try the product. Such curiosity is often referred to as interested disbelief. Advertisers use a variety of devices to increase the believability of their advertising: celebrities or experts who are the spokespersons for the product, user testimonials, product demonstrations, demonstrations, research results, and endorsements. Example:

Ponds age miracle, in that ad the celebrity HADIQA KAYANI is informing the consumers about the benefits of it. That how the old women can look younger by using it continuously. It will make you fair cream crea m plus it reduces freckles plus it can be used as a sun block as well it will make you look young.

3. Urge product used The third function of advertising is to induce consumers to try new products and to suggest reuse of the product as well as new uses; this is the persuasion function. The basic function of advertising is to provide constant reminders and reinforcements to generate the desired behavior the advertiser wants from them. This is a particularly effective function in the long run as reminders and reinforcements register in the consumers' minds, becoming the base on which they shape their future decisions. Sampling in the way to urge the product using


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4. Expand the product distribution When the consumer comes to know about the particular product from the advertisement he/she wants to try that new product. They go to shops to buy the product; if the new product is not available in a shop then the shopkeeper consults the distributor to make that product available in his shop. It is basically to provide the product all over market. It is necessary to make sure that product should be accessible to everyone. Availability of product effect the distribution. . Accessibility is major factor for successful product

5. Increase brand preference and loyalty Marketing is a moving thing. As your needs are changed your preferences are changed. When the product delivers the promised quality, service and value, it creates satisfied customers who become instrumental in spreading a favorable word-of-mouth. Satisfied Satisfied customers also develop brand preference; each product features and uses are written on the product. Example: 99% girls who are not married will not look at the ad of pampers or

any milk powder for children but when they will get married their interest will automatically automatically move towards such ad'

6. Brand loyalty Brand loyalty is a long-term customer preference for a particular product or service. Brand loyalty can be produced by factors such as customer satisfaction with the performance performance or price of a specific product or service, or through identifying with a brand image. It can be encouraged by advertising. People often make purchasing decisions based on how a brand makes them feel emotionally rather than based on quality or other objective evaluations. If


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"Just Do it" strikes a chord with an athlete, he'll buy Nike; the decision may

have little to do with quality. Example: For instance, when one buys a tube of Colgate toothpaste and finds

it ok, one will not have to spend any valuable time on looking for other toothpaste brands.

7. To reduce overall sales cost When a product is selling you have to teach the people about the product. Like if we would advertise through newspapers, TV, broachers and internet, it would cater huge sum of masses and if you do individually it would be more costly and time consuming. Example: Coke targets their consumers on a very large scale through mass

media whereas make cola advertise on smaller scale or go door to door to advertise their product. Creates new demands Advertising have to create new demands they should educate the people about more and more new things coming up in the market. Each year new products, including line extensions and new brands are introduced into groceries and drugstores. Example: Wateen telecom is offering wireless internet chips, video conferencing

and WIMAX services as they are introducing new services in market its creating new demands.


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Chapter 2


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Advertising agency

INTRODUCTION; Advertising agencies are outside companies that provide for the marketing and advertising needs of other businesses and organizations. organizations. Advertising agencies offer a full range of advertising services and advice based on market studies, popular culture and advanced sales techniques. Because Advertising agencies produce logos, creating effective and attractive color schemes to draw the consumer's attention to their clients' ads. They also prepare slogans and brochures, and write descriptive copy for sales materials. They may produce public service announcements for charitable organizations organizations and social programs as well, and issue press releases for new programs, events, and products. Advertising agencies use assorted forms of media to promote their clients' businesses or organizations, including magazine advertisements, newspaper ads, radio and TV commercials, websites, and even infomercials. Some also plan events, provide booths at conventions, and give away promotional items. they are independent from the client company, they can be objective about a client's promotional needs

.The way advertising

agencies work is by getting to know their clients' product or service well and determining which demographic provides the best audience for promotion. If a company sells designer handbags, an ad agency would likely try to position the company's TV commercials during women's programming or on a channel SIDVIN SCHOOL OF BUSINESS, BANGALORE

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geared toward women. The look and tone of an ad campaign is also dependent upon demographics. If the company's target audience is mature adults, design elements should be more traditional than if the target were a younger generation There are several associations that advertising agencies may belong to, such as the Ad Council, the American Advertising Federation, the International Association of Business Communicators, and the American Association of Advertising Agencies, or AAAA. When deciding between advertising agencies, it is a good idea to see if they are members of any associations and to check them out with the Better Business Bureau. Also helpful is asking an ad agency for examples of their work. You may find that they are responsible for wellrecognized ad campaigns that have helped establish other companies. Such agencies may be expensive and you may have to wait some time to join their list of clients, but an agency that can make your product or service a household name is worth the wait and the cost.

MEANING; An advertising agency or ad agency is a service business 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 organizations and government agencies. Agencies may be hired to produce an advertising campaign

HISTORY; SIDVIN SCHOOL OF BUSINESS, BANGALORE

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Volney B. Palmer opened the first American advertising agency, in Philadelphia in 1850. This agency placed ads produced by its clients in various newspapers In 1856 Mathew Brady created the first modern advertisement when he placed an ad in the New York Herald paper offering to produce "photographs, ambrotypes and daguerreotypes. His ads were the first whose typeface and fonts were distinct from the text of the publication and from that of other advertisements. At that time all newspaper ads were set in agate and only agate. His use of larger distinctive fonts caused a sensation. Later that same year Robert Bonner ran the first full-page f ull-page ad in a newspaper. In 1864, William James Carlton began selling advertising space in religious magazines. James Walter Thompson joined this firm in 1868. Thompson rapidly became their best salesman, purchasing the company in 1877 and renaming it the James Walter Thompson Company, which today is the oldest American advertising agency. Realizing Realizing that he could sell more space if the company provided the service of developing content for f or advertisers, Thompson hired writers and artists to form the first known Creative Department in an advertising agency. He is credited as the "father of modern magazine advertising


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ADVERTISING AGENCY IN INDIA

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. The Indian advertising industry had a slow start and got its first boost during the Second World War. With the British personnel having to join the armed forces, opportunities opened up for Indians in this new talent-intensive business. Then followed a brief interlude of uncertainty in the years immediately following Independence. The launching of the First Five-Year Plan and more so the Second Five Year Plan, with the accent on rapid industrialization, industrialization, gave an impetus to the growth of advertising agency business in India. By 1952 there were 109 advertising agencies in India with a total turnover of Rs 3.5 corer. By 1967, the number of advertising agencies had


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increased to 279 with a total turnover of Rs 35 corer. c orer. The Indian advertising industry has really come' into its own with the growing liberalization liberalization of the economy since the mid-eighties. According to the fourth agency report of the journal Advertising and Marketing, the Indian advertising industry grew by 36.5 per cent in 1992 -93, far outpacing the growth of Indian industry. What is significant, however, is that three of the top four advertising agencies in India continue to be subsidiaries of international advertising agencies-Hindustan Thompson Associates and Lintas India being the first two, and Ogilvy & Mather being the fourth. What is more with the new interest of many national corporations in the Indian market, a large number of international international advertising agencies have entered the Indian advertising industry in collaboration with leading Indian advertising agencies. This is the process of globalization globalization of Indian advertising agency business. This is opening up new opportunities for Indian advertising to assume greater responsibility and serve everywhere in the world and gather experience of global marketing and advertising.

Types of advertising agencies; Follow Followin ing g are major major types types of advert advertisi ising ng agenci agencies es that that are curren currently tly serving the advertising industry . 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 Modular agencies

A modular agency is a full service agency that sells its services on a piece meal meal basi basis. s. Thus Thus an adve advert rtis iser er may may comm commis issi sion on an agen agency cy’s ’s crea creati tive ve SIDVIN SCHOOL OF BUSINESS, BANGALORE

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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 a program for advertising that another agency has developed. Fees are charged for actual work undertaken. In House agencies

Those companies, which prefer to have closer control over advertising, have have thei theirr own own in-h in-hou ouse se agen agency cy.. This This type type is owne owned d comp comple lete tely ly by the the advertiser. It performs almost all functions that an outside advertising agency would perform and that’s why some people refer to it as full-service advertising department of the advertiser. However, the difference between an in-house agen agency cy and and an adve advert rtis isin ing g depa depart rtme ment nt is that that the the in-h in-hou ouse se agen agency cy can can unde undert rtak ake e to serv serve e seve severa rall othe otherr clie client nts, s, if the the owne ownerr so desi desire res, s, but but an advertising department solely undertakes that work of its owner and not of outside clients. clients. Secondly an advertising department department may not be equipped the personnel and facilities, which an in-advertising schedule and costs, but also offe offers rs conv conven enie ienc nce e for for its its owner owner,, beca becaus use e it is just just avai availa labl ble e in the the same same building as that of the head office of advertiser. Such in-house agency also benefits the owner as it can bring revenue through agency commission that are offered by the media and by way of fees that are collected collected from outside outside parties parties for undertak undertaking ing their advertisin advertising g work. work. Such revenue increases the funds and profits of the company. There is another vers versio ion n of in-h in-hou ouse se agen agency cy where whereby by adve advert rtis iser er hand handle les s the the tota totall agen agency cy functions by buying service unit to buy time, space and place the ads. Such an In-h In-hou ouse se agen agency cy is an admi admini nist stra rati tive ve cent center er (und (under er the the dire direct ctio ion n of an advertising director) that gathers and directs varying outside for its operation use agency would posses. In-house agency not only provides control over Creative Boutiques


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These are shop agencies that provides 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. Mega agencies

A signif significa icant nt of 1980’s 1980’s is the develo developme pment nt of mega mega agency agency.. Agenci Agencies es worldwide merge with each other serve their clients in much better way. It was in 1986, Saachi & Saachi, a London based agency who started the movement and at present it is the third largest agency network in the world. The Specialists Agency

There are some agencies who undertake advertising work only in certain areas. there are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc. for instance Soubhagya advertising agency concentrate on specialized in financial advertising.

The Benefits of Using an Advertising Agency •

Added Expertise

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Media Knowledge and Unbiased Advice

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Easier Administrat Administration ion

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Media Buying

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Quality Control

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Information

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Fending off the media

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And when things go wrong

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Cost Saving

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Time Saving


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DISADVANTAGES OF USING THE ADVERTISING AGENCIES

A main disadvantage of using an advertising agency would be the communication communication factor. If an agency does not communicate or relay it's clients goals and creative wishes properly problems can occur within a contract and lawyers may have to become involved. Depending on the communicative skill of the agency, you may be prone to being blindfolded during much of the processes of your campaign leading to a lot of guessing and speculation. Another disadvantage would be the media buying discounts you may not be able to take full advantage of due to commission barriers within an agency, however an agency may have better negotiating powers than your company and save you more money in the long run anyways. There are far more advantages to having the right advertising agency than not.

The functions of an advertising agency: •

To accelerate economic growth and create public awareness

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To provide a total, professional, experienced service which is very personal in its nature

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To take the advertiser's message and convert it into an effective and memorable communication communication


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The Working of Ad Agencies To begin with, the agencies started as one-man agents who booked space in the Media. Even today, in our country, there are so many one-man agents who book space in the media. Soon the space booking was handed over to the contact-man, contact-man, and creative wordsmiths adept at sloganising undertook the actual construction of the ad. In the course of years, the ad agency became service-oriented, and was able to offer every possible service including marketing, market research (MR), and public relations (PR). Ad agencies have evolved over a period of time. These days we have mostly studio-based agencies, some industrial and specialized agencies, and hotshops who only plan creative campaign by engaging the services of freelancers. At Madison Avenue, most of these large agencies of the world fiercely compete for new accounts, resulting in a shift of millions of dollars of billing from one agency to another. Advertising Age is an official publication of the American Association of Advertising Agencies (AAAA). In India, advertising business is worth Rs. 8,000 corers. 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 L intas. Mumbai is considered to be the Mecca of Indian advertising. These days agencies are also being set up at Bangalore, Madras, Hyderabad, Ahmedabad and Delhi. In India the ad agencies are sole proprietary concern, partnership or private limited companies. It is better to operate agencies on professional lines, rather than as a family. It is good to install MBO (Management By Objectives). An agency must SIDVIN SCHOOL OF BUSINESS, BANGALORE

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necessarily plough back at least 75 % of its profits into business. The advertising agencies are shifting from the creative mode to the marketing mode. Today the onus is on the agency to supply the client with data on his industry; the days of the clients briefing the industry are almost over. The agencies are expected to maintain database. There is a leaning towards software for optimizing media usage, and computerization of studio functions. In India, the legal structure of ad agencies is that of a small proprietary concern or a big partnership. Sometimes, they are private limited companies, either big or small. Indian advertising is a fragmented f ragmented business. There are over 733 agencies accredited to INS. The top 25 account for 50% of all billings. In addition, there are many accredited agencies. It is the top 25 agencies, most of which are headquartered in Mumbai, that set the pace and define the shape of the industry. Agencies like HTA, Lintas, Clarion and O & M have shaped the entire advertising industry in the country. Many Indians firms are coming up, by importing i mporting Western ad techniques. Many agencies die a premature death. Most people do not appreciate that an agency –like any other business - must be properly managed. It is simply not enough just to have great idea. idea. In recent years, there there has been a healthy healthy trend towards sound management practices, especially financial planning and control. This is a highly paid profession. It is a conspicuous high wage island. People operate on high profile. Their life-styles are opulent because of high expense accounts 'of entertaining clients. They got their elitist brand due to this reason. But high salaries and freedom are necessary to attract talents.


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People working in an agency: Accounts Executive: It is a key career option in advertising agency. He is called an Account Director when he is a member of the Board. He is a link between a client and his staff. The marketing or advertising department of the client briefs him. He communicates this to the agency people. He reaches out to different clients for seeking new business. Even clients who want an agency' to work for them contact the accounts executive. This business development work makes it virtually a marketing manager of the agency. Do right-brained people make better account directors? The faculties of logic and reason are supposed to reside in the left-brained people. While intuition and creativity are believed to be in the right. So far, accounts director was considered suitable if logical and systematic, i.e., leftbrained. But if he has to motivate a team, he should be inspiring and creative too, i.e., right-brained. Copywriters: They are the wordsmiths who do the wording of an

advertisement. They are bright and talented. They have a flair for language. They contribute to the theme of an advertisement. Creation of successful copies for different clients establishes them in this field. b een thought out by Visualisers: These are artists who put on paper what has been the copywriter. They in fact design the ad. Creative Director: He co-ordinates the copywriting and designing. He is a

senior professional who is seasoned in an existing advertising agency set-up to take on this mantle.


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Production Department: Persons of diverse talents like printing technology,

DTP, photography, typography etc. are involved here. Media Planner: He has to allocate the advertising budget amongst media. He

has to select the appropriate media. He decides about the frequency, size and position of an advertisement. He decides about its publication date. He receives the tear-off copies from the media when the ad is published. He is guided by the media research, which he undertakes, or by research undertaken by an outside agency. Media is the most professionalized department of advertising agencies. Marketing Research: Modern agencies are integrated set-ups. They provide a

range of marketing services. Research data become very useful as input to the creative process. The Media : Most of the media today sustain on advertising revenue. They sell

space or time. While selling space or time, they have to convince the client about the reach of their media vehicle, the composition break-up of their readers and the pricing of their space/time selling. They monitor the market, survey their readers, and highlight their readers' demographic and geographic characteristics. They also maintain relationship with the media department of advertising agencies who buy space/time on behalf of clients. Ancillary Services : These are needed to produce/create advertisement. A

whole range of services like studio service, photographic service, printing service, gift item producers etc. fall into this category. Freelancers : These are professionals who work independently and have a

successful track record. They are copywriters, jingle singers, radio announcers, artists, visualizers, technical writers etc.


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Organization Structure of Advertising Department

All major advertisers maintain an advertising department. The structure of the department however may vary from one organization to another, as each one tries to develop a form, which is most suited to one's requirements. The principal forms of organizational structure are based on •

sub functions of advertising, such as copywriting or artworks

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communication communication media

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geographical spread

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product and

•

End users.

Irrespective of the specific form, the advertising department has to perform several functions. Principal among these are setting advertising goals, plans and budget, selecting the outside ad agency, maintaining contacts, providing support to the marketing staff and monitor the functioning of the ad agency. Selecting the ad agency is one of the important tasks of the advertising department. Several criteria, including experience, size, track record and the quality of the personnel, are considered in the selection process. As you know, there are different categories of advertisers. Depending upon their functions, each organization develops its own structure, of which advertising department is a part. What is important in this connection is to analyze the functions an advertisement department is expected to perform.


28


Organization is a Manufacturing Unit

Manufacturing Manufacturing firms carries out bulk of advertising. It is therefore, necessary n ecessary to understand the various principles on which the advertising department can be organized in manufacturing manufacturing units. The basic principles are: (a) By Sub-functions of Advertising :Advertising as a function can be

segmented into its various components, such as, Copywriting, Art Production and Media. A specialist who in turn reports to the advertising manager can handle each component.


29


Advertising Manager

Copywriting Manager

Art Manager

Production Manager

Media Manager

(b) By Media

Advertising Manager

Newspaper

Broadcasting

Magazine

TV

Outdoor

Direct mailing

© By Product

Advertising Manager

Product A

Product B

Product C

Product D

(d) By Geography

Advertising Manager

Zonal Manager A

ZM(B)

ZM (C)

(e) By End User

Advertising Manager

Consumer Market Manager

Institutional Institutional Market Manager


Government Market Manager 30


Reporting Structure:

The advertising manager has to report to somebody who is higher up in the organizational organizational structure. To whom the advertising manager would depend upon how much importance advertising is given to the total operations of the firm. There are several alternatives. These are: •

Report Report to the the Chi Chief ef Execu Executiv tive e (Cha (Chairm irman an/MD /MD.) .)

•

Repo Report rt to to the the Dire Direct ctor or (Ma (Mark rket etin ing) g)

•

Report Report to the the divisio divisional nal head if the the firm is a multi multi-divi -division sion firm firm

and responsibility is delegated at the division level. Centralization or Decentralization

Should advertising be done on a centralized basis or should the responsibility be delegated to lower levels - say product or geographical divisions? , Centralized Advertising Advertising Activity has been defined as that which - is located at or directed by headquarters, reporting to corporate sales or marketing head or in top management. In operation it gets the necessary product, market, and budget information from the divisions and then controls the execution of the various programmes by: 1. Providing the needed information and guidance to the advertising agency and other Services; 2. Then reviewing and approving the completed work before getting division approval SIDVIN SCHOOL OF BUSINESS, BANGALORE

31


A Decentralized Advertising Activity is operated and controlled by individual units located in each major division, usually reporting to a division head or to a division marketing or sales head. The division advertising, sales and marketing people and control both the 'what' and 'how' of the advertising job, getting only advice and counsel plus miscellaneous services from a central advertising function. In practice, however, it has been found that most companies follow the centralized pattern of advertising organization. organization. There are at least two important reasons for it. 1. It is difficult to transfer the tasks of preparation and execution of creative advertising from to the many without loss of efficiency to a great extent. 2. Most companies entrust their advertising work to outside agencies and it is more convenient with them in a centralized way.


32


Interface with other Departments

Advertising and, therefore the people, manning the advertising department, do not function in a vacuum. Advertising is a tool of marketing. It is done to achieve a specified short-term or long term goal. The advertising staff, therefore, must actively interact with other departments most importantly, marketing and sales. The interaction has to be intensive to draw up a coordinated plan, of which advertising is a part. In fact, not only the advertising department, but also the outside advertising agency it may have employed, would have to be actively associated with the formulation of the marketing plan. In companies, which realize the importance of advertising in its proper perspective, the advertising department gets useful inputs from sales, product and brand managers; from Marketing heads, General managers and top management and also from many others in the engineering and manufacturing manufacturing departments who provide valuable advice in respect of appeals to be focused and also other advertising matters.


33


Functions of the Advertising Department Just as the organizational structure of an advertising department varies, the activity profile also is subject to change from one organization to another. Kleppner has identified14 activities, which include all the major functions an advertising department in a manufacturing manufacturing organization is supposed to carry out. These are: 1. Determine in consultation with top management the advertising goals, the advertising budget, and the advertising plan. 2. Help select the advertising agency. 3. Set up a plan of activity, allocating which work

is to

be done by the

agency and which by the advertiser. Establish with top management the internal division of such non-commissionable non-commissionable duties as sales promotion, research and public relations 4. Transmit the policy and problems of management to the agency; keep it informed of changes in marketing strategies and other related areas. 5. Decide upon the proportion of the appropriation to be assigned to different tasks in the advertising programme depending upon the importance of these tasks. 6. Approve the plans for advertisements by the agency and by others who work on the advertising problems. 7. Prepare, purchase and

issue sales

material - point-of-purchase point-of-purchase

displays and direct mail, including receipts, dealer advertising service, premiums (unless company has separate premium departments). 8. Prepare, issue and control billing of corporate advertising. 9. Keep the sales force informed of forthcoming advertising. advertising. 10. Prepare portfolios of advertising for the salesman's use in showing advertising to the trade and to other distributors. 11. Work with the sales department in preparing special programmes. 12. Prepare instruction manuals for those who will sell and use the product; all in all, do everything possible to make the most effective use SIDVIN SCHOOL OF BUSINESS, BANGALORE

34


of the advertising investment. 13. See that all mail enquiries are answered with mailings as required. 14. See that all bills are properly checked; keep an account of funds and prepare proper reports for management. The ad manager in charge of an advertising department has both managerial and operational functions. He is responsible for interacting with agencies and the media. He pays attention to outdoor aids. He takes part in campaign planning and media planning. He frames an ad budget, and allocates it. He is responsible for broadcast media. He gets POP prepared. He

is the

man behind SP and merchandising. He maintains

press relations, and PR functions. He brings out a house-journal. He is appointed on the basis of his knowledge of advertising and journalism, his knowledge of the industry, his management background, and his marketing background. He maintains a good client agency relationship so essential for the success for the campaigns.


35


Advertising Agency's Role Suppose you are a company with a product. It may be a totally new product. As a company with a product or service to sell, designing and making that item is only part of the battle. People are not going to beat a path to your door. You have to seek a channel of communication. Ad agency need to consider, for example: •

For whom is the product or service designed?

•

Who would use it?

•

Who is the "target group"?

•

What's special about the product? In what way is it distinct? Unique? Different?

•

What's its "position" in relation to other similar products?

•

What do you want to convey to the public about your product?

•

How should your company contact the public?

•

What medium should it use? Radio? TV? Newspapers? Magazines? Billboards? Bus/subway ads? Direct mail? etc.

•

How extensive a region should your company try to cover?

•

How often?

Communication Communication and marketing decisions involve specialized expertise. Many companies that design and produce products or offer services lack these these specif specific ic capabi capabilit lities ies.. This This is where where advert advertisi ising ng agenci agencies es fit in. in. Advertising agencies exist to help companies to communicate with the public, Market the company's product. Company with a product or service

Ad Agency

Media


Public

36


The process of advertising involves considerable specialized knowledge and expertise •

Abou Aboutt

peop people le -

Thei Theirr inte intere rest sts, s, pref prefer eren ence ces, s, need needs, s, want wants, s,

lifestyles, expectations •

About About media media - Their Their reach, reach, their their effect effective ivenes ness, s, their their specif specific ic

appeal •

about compet competing ing Abou Aboutt the the compa company ny and its its prod product uct – And about companies and their products

Services offered by ad agency ;-Total Total Advert Advertisi ising ng Service Services s :Strategi Strategic c planning planning,, creative creative developmen developmentt

and media services for advertising, particularly particularly in television, newspapers, magazines and radio; providing the best creative designed to capture the imagination imagination of consumers number er of adver adverti tisi sing ng rela relate ted d Marketi Marketing ng Service Services: s: Provis Provision ion of a numb servic services, es, includ including ing sales sales promot promotion ion,, market market resear research, ch, PR and event event marketing. 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. Content Business: Sales of sponsorship, broadcasting and other rights,

and the production and marketing of such media / content as sporting


37


events, films, TV programs, animated content, music and other forms of entertainment. Integrated Media Services : Bringing value to both clients and media-

related companies by offering a wide range of media solution services Sales Promotion : Providing comprehensive sales promotion planning

designed to complement mass media and other activities Event Marketing : Assisting clients by providing dynamic vehicles for

their messages in the form of on-the-spot interactive communications communications Integrated Branding Services : Assuring clients the highest quality of

branding services for their communication needs

TOP 10 ADVERTISMENT AGENCY OF INDIA •

Adbur Pvt Ltd

•

Akshara Advertising

•

Mudra communication ltd

•

Chaitra Leo Burnett Pvt Ltd

•

Contract Advertising (India) Ltd

•

Crayons Advertising and Marketing Pvt Ltd

•

Creative Advertising

•

Enterprise Nexus Communications Communications Pvt. Ltd

•

Euro RSCG Advertising Pvt Ltd

•

Everest Integrated Communications Limited


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The source of an advertising agency’s income: A manufacturer who operates out of a small and unpretentious office is often impressed (sometimes unfavorably!) by the obviously furnishings in the offices of some advertising agencies. Paying for part of the agency’s overhead, rent, payroll, etc. is naturally going to use up some of the money he spends for advertising. Should he spend his money through an agency, or should he spend that money direct and thus save the cost of the agency’s services? Questions like these are good questions, but the answer to them is often not as clear or simple as it seems. In order to answer them, attention must be focused not on the total costs of advertising agency service but on the additional costs, if any which the use of an advertising agency will involve as against the expenditure of the same number of advertising dollars on a direct basis without agency participation in the expenditure. The difference is a vital one, because of the nature of historically established advertising agency compensation c ompensation methods. An advertising agency traditionally derives its basic income from “agency commissions”. Those commissions, commissions, for the most part, are paid to the advertising agency by various advertising media (e.g., newspapers, magazines, radio or televisions stations or networks, etc). Agency commissions is usually established at or near the level of 15 per cent of the “card” or “list” price of the space, time or other facility purchased. To be sure you understand how the commission is derived, let’s use a specific example is previously mentioned, a full-page four-colour


39


advertisement in LIFE cost $39,500. if you as an advertiser brought a one-page four-colour single insertion in LIFE direct from the publisher you would be billed the full published rate of $39,000. However, if you had the ad prepared for you by an advertising agency which placed the ad with the publisher of LIFE, the agency would be billed for the rate of $39,000 less 15% agency commission. co mmission. That commission of $5,925 would represent the agency’s gross income on the creation and placement of that single ad. From your viewpoint as an advertiser, the effect of this compensation method is clear. It would cost you no more dollars out of your total advertising budget (or appropriation, as it is called), for advertising space if you used an advertising agency that would if you did not. You may well ask: Why should advertising media pay my advertising agency for services performed by the agency for me, the advertiser? The answer is buried in the historical development of the advertising agency, and would require more space here than its relevance to the subject of this report warrants. What you should remember is that, illogical or not, that is the basis of most advertising agency compensation generally. For a more complete picture of the compensation question, we might note a few exceptions, which introduce added costs to the use of an agency. Some advertising media (the large direct-mail house, for example), do not grant advertising-agency commission. If your places some of your advertising through non-commissionable non-commissionable media, the invoice which you receive from your agency for such advertising is likely to consist of two items, each identified. The first is the base cost which represent the sum, which the agency paid out of its corporate pocket to the media. The second is an additional figure, representing agency commission. In that way the agency receives the same relative gross


40


income from the advertising it places, as it would have received if the media granted commissions to agencies. It is customary also to add agency commission to various other non-commissionable expenditures made by the agency for its advertiser-client, such as the cost of the engravings used in advertisements (purchased by the agency from a photo-engraving photo-engraving house), and the cost of the finished artwork from which those engravings were made. Some advertisers tend to resist and resent the practice of agencies’ adding an agency commission to non-commissionable non-commissionable items. For example, the agency may buy artwork, engravings or typographic composition, or prepare a portfolio for the use of your salesman. Any activity of that type costs the agency money, in terms of the time and overhead associated with the activities of skilled and experienced people in performing such specialized tasks. Agencies pass along the c osts involved by adding an agency commission to the cost incurred, or by charging a special fee for the service. You should be alert to the possibility that the fee or commission may be out of the line with the agency’s costs. You should not, however, expect the agency to provide such service – on which there is no commission from a media, nor any other income for the agency to use to offset its costs – without charge. Such charges are an established trade practice. Not the vital importance of paying agency commission on all noncommissionable media. If such expenditures were not commissionable, the agency would often be in the position of having to choose between two or more media, with significant difference in the agency’s own income as one influence on the decision. Since all media expenditure carry the same commission, whether it is the policy of the media to pay an agency commission or not, the agency’s decision is influenced only by


41


its judgment as to what contributes the soundest media approach to achieving the planned objectives sought by its client.

Agency commission represents gross income, within which a profit-provision must be made: It is important to remember that the agency commission, whether paid to the agency by a media or whether added to the client’s invoice and paid by the client in the case of non-commissionable media or non-media advertising expenses, constitutes the gross income and not the net income of the advertising agency. Out of that gross income, all of the expenses of operating an agency is typically t ypically its payroll account. In addition to salaries, which often represent as much as half of total agency expenses, such other items as rent, heat, light, telephone and telegraph, postage, and travel and entertainment costs must be paid. There is, in addition, a further “cost” which should be recognized. An advertising agency, like a manufacturing organization, organization, is in business to make a profit. An agency can realize a profit only if the total of all its gross income. The management of an advertisement agency typically plans for achievement of a planned-for profit margin by the process of reserving a portion of anticipated income from a given client (on account) for profit, and budgeting the remainder over various expense items involved in serving the account. This tendency, to take a “slice off the top” of total income from an account as profit, differs from the profitplanning approach of some manufacturing manufacturing organization. It is rather general in advertising-agency advertising-agency management.


42


The amount and quality of advertising service which you as an advertiser can expect from an agency depends directly on the size of your total expenditure ;Now to arrive at accurate perspective on what you as an advertiser can expect, in the way of service, from an advertising agency you hire, let’s mentally transpose ourselves to the agency’s side of the desk. Assume that you are the president of an advertisement agency, considering an account-present or perspective – in terms of how important that account is to you or would be if you had it, and of how much service you could afford to give the account if it wore “in the shop”. What criteria do you use? A very simple one – a rough estimate of the potential gross and net profit the account would provide. Suppose that the account in question has a total appropriation, you estimate, of $100,000. That represents gross income of $15,000. What would it represent to you in real profit – that is, in net income? Assume that your agency does its profit – that is, in net income? Assume that your agency does its profit – planning in the expectation that it will retain as profit after taxes, 2 per cent of its expenditure. In order to have 2 per cent after taxes, however, you need about 4 per cent before taxes. Note that is 4 per cent out of the total of 15 per cent you receive as commission in other words a little more than on –quarter of the total amount you receive as commissions you plan (or hope!) to retain as before-tax profits in order to have about one-eighths of that income as


43


your after-tax profits. (There are two wide variations in the earnings ratios of different types of advertising agencies and of different sizes of advertising agencies. The 4 per cent before taxes – per cent after taxes figures used are reasonable figures for any agency in the moderate size range – that is, with total billings in an area from 5 million to 9 million, and with gross income at about 15 per cent of total billings.). The purpose of this relatively long example is to make an extremely vital point. You as an advertiser approach an agency, and discuss with the principals of that agency the possibility that they may be appointed to handle your account, which you estimate will total $100,000 a year. If you appoint them, you will be creating for yourself, in effect, a “service bank account” in the amount of $11,000 a year. (The $11,000 represents gross income of $15,000 reduced by profit provision of a $4,000 beforetax sum.) You are entitled to know just how much in the way of what kind of service you will receive for that $11,000. the agency will (or should) tell you. You should be on guard against being “over sold” – against being promised $20,000 or $30,000 in service. You know from the above figures that the only way an agency can deliver that much service on an account your size, is for the agency to lose a substantial sum of money in serving you. As a minor exception to the above comment, we might note that some agencies – perhaps most agencies – realize little or not profit in the first year or two that they handle an account. There are substantial nonrecurring costs involved in acquainting the agency team with the particular problems of the advertiser and his industry. Particularly on an account, which is estimated to have substantial growth potential, a


44


deliberate policy of “investment spending” (i.e., spending in service and in direct costs a sum su m in excess of commission income) is not unusual. But mark this well: it is a very different thing for an agency to have a planned policy of investing in new accounts in the first year or two of serving them, and for an agency to promise continually to provide more service than the commissions and/or fees involved can pay for. While commission income represents the major source of agency compensation, there is an additional method of working out the agency’s income from an account, which warrants mention. In some cases, the cost of preparing a client’s advertising would be far in excess of the commission income involved. Such a pattern is not usual in the case of advertisers with multiple product-lines, using a variety of different specialized business publications. Such publications reach selective audiences. The circulation of each is far smaller than the multimillion copy circulation of some consumer publications. The cost of a page of space (and, therefore, the commission on a page of space) is correspondingly small. On that type of operation, it is not unusual for the advertiser and the agency to agree upon a service for handling the account. Often commissions earned on advertising placed by the agency are credited against and hence reduce the net fee the advertiser must pay. The point to note here is that the advertising agency, like the advertiser, is in business to make profit and is entitled to do so when soundly managed. If the amount of expense involved in handling a particular advertiser’s account (including time salaried personnel, overhead items, etc.) is in excess of the commissions which would be generated by the amount of advertising in question, the agency is enlisted to and will typically insist upon a fee in addition to commission sufficient to reimburse it for its costs and leave a profit for the agency’s management.


45


Against the background of these general comments about the nature of the advertising agency, it would be logical now to move into a consideration of specific agency types and of factors involved in the selection of an agency. Before you as an advertiser can discuss intelligently with an advertising agency whether you are or are not interested in their services or whether they are or should be interested in handling your account, it is necessary for you to have in mind at least an approximate dollar figure which represents a preliminary estimate of the size of your advertising account.


46


Chapter-3


47


Company profile

Mudra communication limited Introduction; One client vimal and a 500 sq ft office that was Mudra in the year 1980 They were a small agency tucked away in Ahmedabad with one clearly Articulated goal to be a top 5 agency .there ambition ambition with an almost almost manic obsession by creating the best contemporary advertising that had our client and other people taking notice As a young agency operating out of Ahmedabad our growth was driven helping small business with big ambition explode their brands to the country at large With in 9 years they were the largest Indian advertising agency HISTORY POINTS :-

•

Mr.AG Krishnamurthy founded mudra communication on 25 th march 1980


48


Mr Krishnamurthy started his advertising career with shilpi advertising in 1976

•

He moved to Reliance Industry as advertising manager 4years later he founded mudra communication

•

Mr Krishnamurthy started mudra with one brand vimal .today mudra has 125 client this multifold increase is a testy many to his passion and zeal

•

In 1991 he created the mudra institute of communication Ahmedabad (MICA) the only advertising school of it s kind in Asia

•

In 1995 Mr. Krishnamurthy was nominated as advertising person of the year

PROFILE OF MUDRA COMMUNICATION LTD

Head

Mumbai

quarter Industry

Marketing an and

T y pe Status founded Sanjay

advertising Privately held Operating 1980 New

Sharma Company

president(North&East0 501-1000 employees

size Web site

www.mudra.com www.mudra.com


49


Members in the management of the mudra communication ltd

Name

Designation

Sebast Sebastian ian Jose Joseph ph Execut Executive, ive,vice vicepre preside sident, nt,and and head head Mohit Bhagchandani Joy deep dasgupta Sonal Jheej

technology Country head,mudra sport Vice president and national strategic, planning head Account planner

Present situation of mudra communication; It was started in 1980 mudra rose to become the 3 rd largest agency in the country. In a short span of nine years. Today the mudra group is one of the India s leading marketing communication communication networks The group utilizes it s deep understanding of consumers brands and media to deliver creative business solution –A customized and collaborative approach approach helps it s client client build enduring enduring and profitable profitable brands The group offers integrated communication services through it s platform (1) mudra and DDB (2) mudra (advertising) (3) mudra max(integrate max(integrat e communication planning and implementation) implementatio n) mudra


50


(4)mudra health and life style(health style(health and life style style advertising) (5)water (brand strategy and design consulting)

In the present year mudra is poised to exceed a turnover in excess of 15 billion at it continues to maintain it s aggressive growth rate. Mudra is one of the management admired marketing communication network in the country country a highly rated agency both by by client and industry. Mudra south won the agency of the year at the ad club cochin s paper awards 2009 10.4.09

Achievements of the mudra communication ltd

*It was a mudra that that first gave India double spread colors colors ads *it was mudra that first sponsored commercial telecast of a major sporting event with the India and west Indies series of 1983 *it was mudra that first branded a public issue reliance khazana *it was mudra that made India India s first teleflim teleflim Janam *it was mudra that gave Doordarshan Doordarshan Rajani .The serial serial that heralded heralded a new consumer awareness in India *it was mudra that gave India s it s first academy for advertising . THE Mudra Institute Of Communication(MICA) *it is a mudra that gave India s advertising community its first advertising archives marketing and Advertising Gallery(MAG)

MEMORABLE ADVERTISING SIDVIN SCHOOL OF BUSINESS, BANGALORE

51


Mudra has created some of the most memorable advertising in India they are; 1 only vimal

2 I love you rasna

3 my daddy strongest

4Humko binie mangta

5The world in your pocket

6 The mint with the hole


52


7 Team Samsung

8 McDonalds mein hai kuch baat

9 Kar lo duniya muthi mein

Services: Services are provided by the organization SIDVIN SCHOOL OF BUSINESS, BANGALORE

53


1 Mudra is a today the largest Indian advertising agency .it s meteoric growth has been driven by some epochal work mudra has created some of most memorable advertising like 1 Only vimal 2 I love you rasna 3 my daddy strongest 4Humko binie mangta 5The world in your pocket Today it handles over 125 client nationally nationally .though it s four independent units they are; 1 Mudra Mumbai 2 Mudra South (including Bangalore Chennai cochin) 3 Mudra north Ahmedabad 4 Mudra north and east (including Delhi and kolkata) Mudra often the entire spectrum of brand communication communication competency ranging from strategic planning brand management creative, Mudra is also one of the few agency networks in the country that offers a comprehensive suit of marketing services under one umbrella .these are supported by the largest national network among all agency.

2 Mudra health and life style (MHL); SIDVIN SCHOOL OF BUSINESS, BANGALORE

54


It is specialize in in the emerging common needs of the health core industry marrying in-depth understanding of the medical business with refreshing consumer doctor and channel insight it is uniquely positioned to address .the common requirement of the health and life style space MHL also has a strong track record in the domain of social common and pharmaceutical brand promotion. Mudra health and life style client included J&J medical buyer Bistol – Myers Squibb, Alembic, Unicef & USV among others.


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CLIENTS

1. Paros Paros phar pharmac maceut eutica icals ls 2. Reliance communication

3. Unio Union n bank bank of of Indi India a 4. Life Life Insura Insurance nce Coope Cooperat ration ion of India India 5. Godrej 6. The The Phil Philip ips s 7. Hindu Hindusta stan n unile unileve verr ltd. ltd. 8. Pepsi 9. Jet air air way ways 10. Reliance ADAG

11.Spice telecom 12.ICI points 13.Union bank of India 14.Amrutanjan

AWARDS SIDVIN SCHOOL OF BUSINESS, BANGALORE

56


Mudra communication ltd. has got national and international awards. 1.

International awards- Number of award-230 like Connes, D&AD, Clio, One show, Ad fest, communication arts, New York festivals and others

2.

National awards – Number of awards-825 like Abby, CAG, Ad clubs, AAAI show case of India advertising and others

3.

Agency of the year 8 times – Mudra founder A.G. Krishna Murty has been honored multi times including •

Calcutta Ad club Hall of fame

•

A&M Ad person of the year

•

Media international one of the international international Ad industry 1998

•

AAAI premnrayon award recognition of pioneering spirit and entrepreneurial vision

•

Mudra south agency of the year at paper award and the Ad club Cochin.

SWOT Analysis of mudra communication SIDVIN SCHOOL OF BUSINESS, BANGALORE

57


Strength

- Satisfying the need of the customers - Meeting up the client requirements in time - Innovative & creative in advertisement segment - Quality in advertisement - Global exposure with higher rewards & appreciation - Efficient team working environment

Weakness

- Pricing strategy - Lack in promotion strategies towards increasing the brand name. Opportunities

- Entering in global market to attract global clients - 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.

- In its successful journey, they lot of wonderful memorbal advertisement done by them- this has increased there brand i mage in the Indian market.


58


Threats

- Challenging stiff competition from its competitor’s from both domestic & international levels.

- Changes in the taste & preferences of clients. - Lack of creative minds & also too expensive in overall management.

Competitors of the mudra communication; AGENCY

PLACE

Adbur Pvt Ltd Akshara Advertising Ambience D’Arcy

Ghaziabad New Delhi Mumbai

Chaitra Leo Burnett

Mumbai -

Pvt Ltd

Conclusion: SIDVIN SCHOOL OF BUSINESS, BANGALORE

59


In today’s world which is fast moving & dynamic, people’s wants, need and desires are changing; it’s very important to know them and give them what they want. This is the main objective of advertising where ad agen agency cy play plays s majo majorr role role in mark market et rese resear arch ch,, maki making ng of crea creati tive ve,, launching it in the market, taking the feedback of consumer and making any product famous and acceptable among consumers. Ad agencies are playin playing g an impor importan tantt role role in shapin shaping g presen presentt and future future of not just selected brand but of entire company. There is no one -- sure-fire -- best way to advertise your product or servic service. e. It is impor importan tantt to explor explore e the variou various s advert advertisi ising ng media media and and select select those those which which will will most most effect effective ively ly convey convey your your messag message e to your your cust custom omer ers s in a cost cost-e -eff ffic icie ient nt mann manner er..

Alwa Always ys to be reme rememb mber er,,

advertising is an investment in the future of your business. Ad agency is service industry it is growing very fast .talented people are hired and they are showing there creativity ability .the ad agency are providing services to the branded company carrying there advertisement campaign most effectively. They know how to attract the consumers .from one side agency are very costly they are charging more money for the advertisement campaign. On other side it is useful to the company .the ad agency can launch the company product in better way. I think ad agency are playing key role in-increasing the brand & performance of a product or services of a company Thank to ad agencies contribution for changing our world of dreams dr eams & desire.


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Bibliography-

Marketing management by Philip kotler Advertising principle practice by Burnett wells Mariraty www.google.com www.india advertising agency.com www.yahoo.com www.msn.com


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ANNEXURE


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ADVERTISING AGENCY OF INDIA

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