EXECUTIVE SUMMARY
As in today’s advertisement scenario, surrogate advertisements holds great potential and growth when compare to other advertisements.
This growth and potentiality directed to enter into this sector. The success story of a good advertisement depends on how it creates image before customer’s mind. This study tries to reveal the knowledge and perception of customer’s by exploring their experiences and valuable suggestions.
Also trying to find out whether the surrogate advertisements make some impact throughout the market. Only some advertisements make the customers to try the product.
So descriptive type of research is adopted for studying the overall market. Non probability sampling technique, convenient sampling is carried out for collecting the primary data. Though the percentage method data’s is being interpreted .
Primary as well as secondary data’s were collected through questionnaire method, and it helps to experience the advertisement perception of customer directly.
Customers mainly remind the surrogate advertisements because on the medium, it is represented through different media’s. The entire study points out the area of improvements, while doing the surrogate advertisements.
As every advertisement were intended to create some good impacts on customer’s mind; ethically it has to satisfy all the desires and needs of customer. It came to know that people remember the brand names and ask for the surrogate products. Because of the knowledge and awareness level of surrogate advertisements are high, it is sure that liquor companies can take the mileage through surrogate products.
Making communications land - Are they received and understood as intended? we...
A Project Report on the impact of surrogate advertisement in surrogate products at ogilvy & mather
1. School Of Management And Business Studies. Page 1
A Study on Impact of Surrogate Advertisement
in Surrogate Products
at
OGILVY AND MATHER PVT LTD, BANGALORE
A Project Report submitted to Mahatma Gandhi University for the partial
fulfillment of the Award of Master of Business Administration
Submitted by:
AHAMMED SHAMEER P.M.
(Reg. No: 121004)
Under the supervision of
Dr. Johney Johnson
SCHOOL OF MANAGEMENT AND BUSINESS STUDIES
Mahatma Gandhi University, Priyadarshini hills P.O.
Kottayam, Kerala- 686560
2010-2012
2. School Of Management And Business Studies. Page 2
SCHOOL OF MANAGEMENT & BUSINESS STUDIES
MAHATMA GANDHI UNIVERSITY
KOTTAYAM
C E R T I F I C A T E
This is to Certify that the report on “A study In Impact of Surrogate Advertisement on Surrogate
Product” at Ogilvy and Mather Pvt Ltd, Bangalore submitted by Ahammed Shameer P.M. is
based on the project study conducted by him/her under the guidance of Dr. Johney Johnson in
partial fulfillment of the requirements for the award of the degree of Master of Business
Administration, Mahatma Gandhi University, Kottayam, Kerala.
Dr. Johney Johnson Dr. Sreeranganathan
Faculty Guide Director
Place:
Date:
(Office Seal)
3. School Of Management And Business Studies. Page 3
D E C L A R A T I O N
This is to declare that the project report titled “A Study In Impact Of Surrogate Advertisement
On Surrogate Product “ at Ogilvy and Mather Pvt Ltd is a bonafide work done by me under the
guidance of Dr. Johney Johnson in partial fulfillment of the requirements for the award of the
degree of Master of Business Administration, Mahatma Gandhi University, Kottayam, Kerala
and that no part of this report was submitted earlier for the award of degree, diploma or title.
Place:
Date: Ahammed Shameer P.M
4. School Of Management And Business Studies. Page 4
ACKNOWLEDGEMENT
I express my deep gratitude to the director Dr. K. Sreeranganathan, School of
Management and Business Studies, Mahatma Gandhi University, kottayam for giving me an
opportunity to do this project work.
I do hereby express my sincere gratitude towards Dr. Johney Johnson, Faculty, School
of Management and Business Studies, Mahatma Gandhi University, kottayam for his valuable
suggestions and patronage of this report. He has provided many insights and Suggestions that I
feel have increased the quality of information presented here.
I would like to express my warmest thanks to Mr. C.P. Nitin Menon, Account
Director,for granting me an opportunity to do my studies at Ogilvy and Mather Pvt Ltd. My
special thanks to Ms. Ayani Sarkar, Senior Account Executive for kindly help, valuable
suggestions and generous encouragement they have given me all through the span of my work.
I am thankful to faculty members in SMBS and to my parents for encouragement over
this manuscript. Finally I would like to record my thanks to each and everyone who have helped
me to compile this work.
5. School Of Management And Business Studies. Page 5
AHAMMED SHAMEER P.M.
EXECUTIVE SUMMARY
As in today’s advertisement scenario, surrogate advertisements holds great potential and growth
when compare to other advertisements. This growth and potentiality directed to enter into this
sector.
The success story of a good advertisement depends on how it creates image before customer’s
mind. This study tries to reveal the knowledge and perception of customer’s by exploring their
experiences and valuable suggestions. Also trying to find out whether the surrogate
advertisements make some impact throughout the market. Only some advertisements make the
customers to try the product.
So descriptive type of research is adopted for studying the overall market. Non probability
sampling technique, convenient sampling is carried out for collecting the primary data. Though
the percentage method data’s is being interpreted .Primary as well as secondary data’s were
collected through questionnaire method, and it helps to experience the advertisement perception
of customer directly.
Customers mainly remind the surrogate advertisements because on the medium, it is represented
through different media’s. The entire study points out the area of improvements, while doing the
surrogate advertisements. As every advertisement were intended to create some good impacts on
customer’s mind; ethically it has to satisfy all the desires and needs of customer. It came to know
that people remember the brand names and ask for the surrogate products. Because of the
knowledge and awareness level of surrogate advertisements are high, it is sure that liquor
companies can take the mileage through surrogate products.
7. School Of Management And Business Studies. Page 7
1.1 INTRODUCTION
Research is the scholarly or scientific practice of gathering existing or new information in
order to enhance one's knowledge of a specific area. Research has many categories, from
medicine to literature.
"Marketing research is the function that links the consumer, customer, and public to the
marketer through information - information used to identify and define marketing opportunities
and problems; generate, refine, and evaluate marketing actions; monitor marketing performance;
and improve understanding of marketing as a process. Marketing research specifies the
information required to address these issues, designs the methods for collecting information,
manages and implements the data collection process, analyzes, and communicates the findings
and their implications."- American Marketing Association (AMA) - Official Definition of
Marketing Research.
We identify or define the marketing research problem or opportunity and then determine
what information is needed to investigate it, and inferences are drawn. Finally, the findings,
implications and recommendations are provided in a format that allows the information to be
used for management decision making and to be acted upon directly. It should be emphasized
that marketing research is conducted to assist management in decision making and is not: a
means or an end in itself. Thus research replaces intuitive business decision by more logical and
scientific decisions.
INDIAN MARKETING & ADVERTISING SCENARIO
The Indian marketing & advertising sector have shown a tremendous growth since the early 90’s
with several progressive plans implemented by the Indian government. The government then
decided to open the Indian market for foreign investors and allowed foreign equity. That paved
the way for the opening the floodgates of the boom in these sectors which is still shining high.
Marketing & advertising (M&A) are the tools which can be used by an organization to relate
8. School Of Management And Business Studies. Page 8
itself to its target audience at a large scale. The 'Grand Old Man' of Indian advertising’,
R.K.Swamy, was instrumental in bringing advertising to the Indian map at the age of 50.
Several big names such as Ogilvy & Mather, JWT and Mudra have established large business
houses and have made a name for them in this large growing M&A market.
There are several benefits attached with the promotion of a company using the medium of
marketing & advertising. It is economical, easy-to-use, appeals to a large public group and it
provides the company an opportunity to be on a more interactive and more informative platform.
The prospective customers can get the required information and also purchase the products of the
company by using credit cards or pay-pal (online payment). This has proved to be beneficial for
both the companies and the customers as that helps in the growth of the market overall and
ensures availability of right products at the right time and that too economical.
Many of the Indian M&A companies are earning their deserved name and fame by being
conferred with the honor of market-leaders and several others are on an emulating spree to
achieve the feat of their peers. Lowe India was recently conferred at the recently concluded
Asian Advertising Awards by Media Magazine Awards. Ogilvy & Mather recently won the
“Pink slip” recognition by the Times Of India Group for its unmatched work skills.
The current growth of 18-20 per cent in M&A is among one of the highest among various
industries in India. Nowadays famed global agencies are getting attracted towards the growing
Indian market and the Indian economy is slowly but steadily opening its doors to World market
capitalism. The 10000-crore M&A industry accounts for about 33 percent of the total industry
profits in the Asia-Pacific belt. The recent NASSCOM-McKinsey report indicated that India is
believed to build a $17-billion web-based Industry by the end of 2008.
Outdoor Advertising in India is one of the most opted modes of brand promotion. Indian Outdoor
advertising industry comprises of a major share in the overall advertising industry. Outdoor
Advertising avenues such a billboard ads, kiosks ads, airport/metro/mall ads are popularly
adopted by brand owners. Billboard advertising is one of the most widely adopted forms
of outdoor advertising. One can see billboard ads almost anywhere in the city- at the traffic point,
9. School Of Management And Business Studies. Page 9
at the metro stations, at the shopping malls, at the roadsides, at the highway etc. Until the launch
of some technologically enhanced tools of outdoor advertising, Indian outdoor advertising was
synonymous to billboard and poster advertising. Billboard ads have been effectively used by
brand owners and advertisers on a larger scale.
With digital technology, Indian Outdoor Advertising has seen a drastic change. Billboard ads are
even digitalized in contemporary outdoor advertising, thereby providing a richer impact on target
groups about the various endorsed brands. The rising numbers of shopping malls again provide
lucrative advertising opportunities to brand owners who want to advertise their brands through
the rich and interactive mall media. Mall culture is spreading at each and every nook and corner
of the country, thereby providing brand owners striking opportunities to popularize and position
their brands amongst target groups. Airport Advertising, another popular avenue of outdoor
advertising is also gaining much acclamation as one of the most effective avenues of brand
promotion. Airport ads are considered exclusive because of the rich ambience as well as the
‘state-of-art advertising mediums’ used by brand owners to launch their promotion
campaigns. Airport ads target rich people/decision makers who can easily spend for the
advertised brands. Hence, various posh brand ads are launched through airport media with a
targeted impact on those rich customers. The growing numbers of airports in the country further
provide brand owners exclusive brand advertising opportunities through airport media in the near
future.
1.2 NEED FOR THE STUDY
Surrogate advertisement resemble the original product or could be a different product altogether,
but using the established brand of the original product. The trend of surrogate advertisement
gathered momentum with several Medias around worldwide. As heated debates are going over
the issue of surrogate advertising; whether it is needed or not, by doing the study expects to
throw light on the subject. Being these advertisements attracted criticism from various people as
they are not only misleading, but also false and dishonest in many cases.. And mainly concerned
with knowing the knowledge of public about surrogate advertisement.
10. School Of Management And Business Studies. Page 10
1.3 SCOPE OF WORK:
1. The study was conducted in Bangalore City for collecting information.
2. The present study was conducted to help the company , how surrogate advertisements
hits customers mind.
3. The study helps to work on the media though which customer knows about the surrogate
products.
4. The study was conducted keeping in mind to understand the customer knowledge of
surrogate advertisements.
1.4 PROBLEM IDENTIFICATION:
O&M would like to know what is the perception of customers, their knowledge and how can
they develop new advertisement campaigns and strategies for their client, to make surrogate
advertisements in a better way.
1.5 SURROGATE ADVERTISEMENTS:
A surrogate advertisements is one in which a different product is promoted using an already
established brand name. Such advertisements or sponsorships help in contribute to brand recall.
The different product shown in the advertisement is called the “Surrogate.” It could either
resemble the original product or could be a different product altogether, but using the established
brand of the original product. The sponsoring of sports/cultural/leisure events and activities also
falls under the purview of surrogate advertising.
In India, the trend of surrogate advertisement gathered momentum with the Cable TV Network
Regulation Act, which prohibits tobacco and liquor advertisements on TV channels. The liquor
industry has intentionally blurred the line between products, advertising `old wine' in a `new
bottle,' only this time with a soft-drink label.
11. School Of Management And Business Studies. Page 11
By August 2002, the I&B Ministry had banned 12 advertisements and leading satellite TV
channels including Zee, Sony, STAR and Aaj Tak were issued show cause notices to explain
their rationale behind carrying surrogate liquor advertisements.
Product advertising for liquor and cigarette companies is banned in the country since 1995 by
Cable Television Network (Regulation) Act. According to Rule 7 (2) of the Act, no broadcaster
is permitted to show advertisement which promotes directly or indirectly promotion, sale or
consumption of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants, infant
milk substitution, feeding bottle or infant food. This ban is now likely to be extended to
advertising of extended brands.
In June 2002, the Indian Information and Broadcasting (I&B) Ministry served notices to leading
television broadcasters to ban the telecast of two surrogate ads of liquor brands McDowell No.1
and Gilbey’s Green Label. The Ministry also put some other brands ---Smirnoff Vodka,
Hayward’s 5000, Royal Challenge Whiskey and kingfisher beer on a “watch list.” The surrogates
used by these advertisements ranged from audiocassettes, CDs, perfumes to golf accessories and
mineral water.
A market survey in 2001 revealed that advertising has a direct influence on the consumption
habits of 431 million people in India and an indirect impact on 275 million `aspirants' from the
lower income group. Considering this and realizing that nearly 50 per cent of the television
owners have access to cable channels, there is no doubt that the hidden call for alcohol
consumption behind the surrogate advertisements is not escaping the eyes of viewers in the
world's fourth highest liquor-consuming country. The very purpose of banning liquor
advertisements is defeated by surrogate advertising.
Answering to the notices, Zee and STAR stopped telecasting the advertisements, followed soon
by Aaj Tak and Sony.
In addition, the I&B Ministry hired a private monitoring agency to keep a watch on all the
advertisements for violation of the Act.
These developments led to heated debates over the issue of surrogate advertising by liquor
companies being allowed on national media. Though the companies involved came out strongly
12. School Of Management And Business Studies. Page 12
against the I&B Ministry’s decision, they seemed to have no other choice, given the highly
regulated nature of the liquor business.
Analyst remarked that there was lot of hypocrisy underlying the government policy. They said
“on the one hand they allow these ‘socially bad’ products to be manufactured and sold and then
they deny the manufacturers the right to propagate knowledge of their products in order to drive
sales. If something is bad and cannot be advertised, why allow it to be sold at all?”
Liquor producers spent heavily on advertising on the electronic media, particularly TV. Though
the broadcasters were bound by the 30 yrs old advertising code, which stated that “No
advertisements shall be permitted which relates to or promotes cigarettes and tobacco products,
liquor, wines and other intoxicants,” the telecast of such product continued blatantly over the
years.
More over the satellite channels garnered about 50% of their revenue from liquor and cigarettes
advertisements. In the peak seasoned it gets almost doubled.
Due to the ban, liquor companies focused more on promotions for brand building. They started
sponsoring events that projected the “glamour” of the brands, like track racing, car rallies etc. for
instance Shaw Wallace Co. one of the leading liquor companies in India, conducted the Royal
Challenge Invitation Golf tournament, which became an annual event. Some companies also
promoted their product through corporate advertising, distributing free gifts like Caps and T-
Shirts with the brand name and using glow-signs outside the retail outlets.
The ban on advertising of alcohol beverage products has severely handicapped communication
with consumers. The industry is naturally compelled to make the best use of the channels and
media of communications still open to it. Companies with liquor brands are not advertising
liquor products; instead they have extended the equity of their brands into other fields. Over a
period of time these products have become independent businesses for companies.
However as the TV was the most effective medium of advertising, surrogate advertising on TV
became popular. The liquor producers seemed to have ensured that the ban was only on the
paper.
13. School Of Management And Business Studies. Page 13
In the mean time, some producers entered new segments under the liquor brand or advertised
these products under liquor brand. Most of the liquor producers entered into packaged water
segment, such as Kingfisher Mineral water. McDowell used surrogate advertising by using its
mineral water and soda brands, which generated additional revenues for the company. In the
early 2001, SWC started marketing its range of golf accessories under the liquor brand Royal
Challenge. It also announced that India’s flagship Golfing Event – the Indian open would be
sponsored by the company till 2006.
The surrogate advertisements from liquor companies intensified further through sponsorships of
movies, music shows, and other programs and attracting youth. For instance, Seagram’s Royal
Stag was promoted by sponsoring movie related activities and Indian pop music using the banner
Royal stag Mega Movies and Royal stag Mega Music.
In late 2001, the broadcasters began airing socially responsible advertisements sponsored by
liquor companies.
By early 2002, surrogate advertising of liquor brands had intensified like never before on
satellite TV channels. These advertisements attracted criticism from various people. There were
numerous other advertisements selling music cassettes, CDs, water, clothing, fashion accessories
and sports goods --- many of them accused of being sexually provocative and offensive.
Exhibit-1
14. School Of Management And Business Studies. Page 14
The Advertising Standards Council of India (ASCI) has clarified that as per its code, the mere
use of a brand name or company name that may also be applied to a product whose advertising is
restricted or prohibited is not reason to find the advertisement objectionable provided the
advertisement is not objectionable and the product is produced and distributed in reasonable
quantities and the objectionable advertisement does not contain direct or indirect cues for the
product that which is not allowed to be advertised.
However the analyst opined that the ban could turn out to be advantages for the domestic
players. In March 2001, as per the commitment to the WTO agreement, MNCs would have an
unrestricted license to sell their products. After the ban, these MNCs would not have access to
the quickest and most effective form of advertising --- the TV.
Some analyst argued that the ban would not affect the established domestic players severely. It
would only affect the new launches and new brand building of these companies.
The ban was also expected to improve the margins for these players.
The latest television ad for “AC Black Apple Juice” epitomizes so many things that are wrong
with surrogate advertising in India.
15. School Of Management And Business Studies. Page 15
Most of the surrogate advertising is done pretty blatantly with the “harmless” product being
nothing more than a front for advertising the “harmful” brand. So you have various
liquor/cigarette manufacturers resorting to ingenuous ways to peddle their wares.
Of course there are a very few brands which start off as a surrogate brand, but over a period of
time actually become full-fledged brands in themselves. The “Wills Sport” clothing line from the
manufacturers of “Wills” cigarettes is one of those rare cases.
But on the whole, surrogate advertising is dedicated towards using an insignificant, “harmless”
product to increase/maintain awareness for their primary “harmful” brand. And that’s not an easy
task. For instance, how do you portray the essence of a whiskey or vodka or a cigarette using a
bottle of bottled water or a pack of apple juice?
Similarly "HUM tum or mera Bagpiper". This Bagpiper club soda advertisement, featuring cine
celebrities, is similar to the earlier one for Bagpiper whisky.
The advertisement comes with the same music and punch line as the one for the popular liquor
brand telecast before the ban on liquor advertisements.
Not easy. And guess who/what suffers when faced with this quandary?
1. Consumers - because we have to put up with the lameass, stupid advertising that’s
designed to sell booze/ciggies but pretends to be all about water or apple juice! It’s like
everyone knows what’s going on - the manufacturers know what the real reason for the
ad is, the consumers know what’s really been advertised, and the government knows that
too. So why not either (i) do away with this wholesale scam and just let them advertise all
their stuff, or (ii) ban such surrogate advertising?
2. Advertising - because ad agencies have to come up with silly ads based on briefs from
clients who are not interested in the surrogate brand, but the primary brand. I agree some
might consider it a worthy challenge to do something like this, but from what I’ve seen of
surrogate advertising in India the output is pretty lame.
16. School Of Management And Business Studies. Page 16
Surrogate advertisements are not only misleading, but also false and dishonest in many cases.
With surrogate advertising so widespread, this is the moment to tackle the problem head-on.
There should be stringent regulatory measures to curb the practice, such as:
i) Making transparent laws banning surrogate advertisements for different products under a
single brand name, by amending the Trade Marks Act, for instance.
ii) Providing teeth to the Advertising Standards Council of India to enable it take action against
false and misleading advertisements, and keep a close vigil over clever evasion of the law.
iii) Asking the electronic and print media to adhere to the advertisement codes and not
encourages surrogate advertisements.
iv) Calling on the ASCI address complaints received from consumers against surrogate
advertisements and take appropriate actions immediately.
v) Creating a consumer awareness programme to help people understand the negative impact of
surrogate advertisements.
vi) Adopting strict laws to penalize those companies featuring surrogate advertisements without
any real existence of the product.
vii) Requiring advertising agencies to have full knowledge of the products under the same brand
for which they are promoting advertisements, and taking legal actions against those agencies
which design surrogate advertisements.
If one believes that honesty is the best policy and truth ultimately gains, the best policy would be
to stand up strongly to the dishonest practices of surrogate advertising.
Senior sources at IBF also said that the industry body had sent out show-cause notices to a
couple of channels regarding ads of certain alcohol and tobacco products. Most channels have
reportedly complied with the Government panel’s directive to the extent that the ads of a liquor
company – that purportedly makes apple juice after drinking which anything can happen (‘kuch
bhi ho sakta hain’) – have been taken off air.
17. School Of Management And Business Studies. Page 17
PROBLEM STATEMENT
When the Advertising Standards Council of India (ASCI) withdrew its code to regulate tobacco,
liquor products etc. consumer activists were concerned over the impact of the move.
The issue has taken a new twist with the Central Government deciding to ban these product
companies from sponsoring sports and cultural events. Liquor or tobacco advertising in banned
in India and hence companies that sell these products have to resort to advertising their wares
using less “harmful” products which carry almost the same names and looks - surrogate
advertising.
1.6 RESEARCH OBJECTIVES:
Does the surrogate advertisement have any impact on the consumers buying behaviour
for buy the surrogate products?
To find customers perception on surrogate ads.
Do the liquor companies able to utilize the established brand names on surrogate
advertisement.
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To know the media pattern, through which the companies able to retain their brand names
through ads.
Do Customers believe on unethical ways of advertising by brand recalling even if they
know that it is a surrogate one?
1.7 LIMITATIONS OF THE STUDY:
1. The time schedule given to the researcher was too short; due to which the researcher was
not able to meet more potential customers.
2. There were customers who gave vague as well as no responses to get complete
information needed for the research study.
Chapter 2
19. School Of Management And Business Studies. Page 19
Literature Review
Literature Review
Surrogate advertising is advertising which embeds a brand or product message inside an
advertisement which is ostensibly for another brand or product. For example, a cigarette
company might issue public service announcements relating to a topic such as lung cancer, using
the company's logo or distinctive brand colors in the ads so that people are exposed to the
company's branding without seeing an explicit ad for the company's product. The company
would justify the advertisement by claiming that it's an example of social responsibility.
There are a number of reasons for companies to use surrogate advertising. One of the most
common reasons is to circumvent a ban on direct advertisements of particular products. Many
nations have laws restricting alcohol and tobacco advertising, for example, so companies
use surrogate advertising to market their products. Techniques used might include advertising
another product with the same brand name, sponsoring community events, issuing public service
announcements, or sponsoring sports teams. All of these activities technically do not violate the
ban on direct advertising, but they still get consumers familiar with the company's branding.
20. School Of Management And Business Studies. Page 20
Surrogate advertising may also be used when companies want to cultivate an image of social
responsibility. For example, many health advocates have criticized advertisements for sweet
treats aired during children's cartoons. A company might pull outright advertising during these
time slots and instead air a series of public service announcements about eating a balanced diet,
with the announcements coincidentally bearing the company's branding.
Pharmaceuticals are another product with advertising restrictions. Historically, pharmaceutical
companies were not allowed to advertise prescription medications at all. Once this regulation
was relaxed, some restrictions were left in place. Using surrogate advertising allows companies
to get around regulations. For instance, the manufacturer of an asthma medication might sponsor
informational commercials about managing asthma, with the medication branding scattered
throughout the advertisement to get consumers used to the brand and to imply that the
medication plays an important role in managing asthma.
COMPANIES FOLLOWING SURROGATE MARKETING
21. School Of Management And Business Studies. Page 21
SU
RR
OGATE ADVERTISEMENTS PROMOTED BY LIQUOR AND TOBACCO INDUSTRY
The liquor industry is a prominent player in this game. Few surrogate advertisements shown in
print, electronic and outdoor media are - Bagpiper soda and cassettes & CDs, Haywards soda,
Derby special soda, Gilbey green aqua, Royal Challenge golf accessories and mineral water,
Kingfisher mineral water, White Mischief holidays, Smirnoff cassettes & CDs, Imperial Blue
cassettes & CDs, Teacher's achievement awards etc. These products bear exactly the same brand
name and logo, which we had seen earlier in liquor advertisements. It was little surprising to
LEGITIMATE BUSINESS SURROGATE ADVERTISEMENT
Mc Dowell’s Walt whisky Mc Dowell’s soda/water
Radico khaitan’s 8 pm whisky Radico khaitan’s water
Hayward’s 500 beer Hayward’s soda/water
Derby special Derby special soda
Bacardi liquor Bacardi blast cds and cassettes
Bagpiper liquor Bagpiper soda and cassettes
Four square cigarettes Four square white water rafting
Kingfisher beer Kingfisher bottled drinking water
Smirnoff vodka Smirnoff cds and cassettes
Red and white cigarettes Red and white bravery awards
Pan Parag gutka Pan Parag pan masala
Rajnigandha tobacco mix Rajnigandha pan masala
Chaini Khaini Chaini Chaini pan masala
Gopal Zarda Gopal Supari 132
Pataka 502 Bidi Pataka 502 Tea
22. School Of Management And Business Studies. Page 22
know that liquor giants like McDowell's and Seagram's have entered into new segments like
cassettes & CDs, mineral water, sports accessories etc. Later it was found that the basic aim of
these surrogate advertisements was to promote their liquor brands like beer, wine, vodka etc.
This brand extension is an act of bypassing the advertisement ban.
A similar trend is followed by companies making Cigarettes, Paan Masala and Gutkha. Few
examples of surrogate advertisements in this category are - Red & White bravery awards, Wills
lifestyle, Four Square white water rafting, Manikchand awards etc. Though a ban has been
imposed on advertisements endorsing tobacco products, this industry has resorted to surrogate
advertising a few years ago. The Health Ministry has recently implemented the tobacco control
legislation which will imply a complete ban on advertisements and all direct & indirect
promotional campaigns for tobacco products. In 2001, Indian Tobacco Company (ITC) had
voluntary withdrawn the Wills Sports sponsorship of the Indian cricket team when the
Government had first proposed a ban on advertising through legislation.
THE CORPORATE STANDPOINT
The industry segment has its own standpoint in defense. The liquor lobby claims that everything
is in accordance to the Government regulations. "If a brand has equity, why shouldn't it be
allowed to advertise? Also, brand extension is an industry practice adopted by different product
categories," comments Alok Gupta of UB group. "When we advertise our products, we follow all
the guidelines," declares president, sales & marketing, Radico Khaitan. They clarify that they
have stopped showing liquor advertisements and they are free to use the brand name for any
other products. Even the Confederation of Indian Alcoholic Beverages Companies (CIABC)
advertising code maintains that advertisement of products (real brand extensions) by the liquor
industry must be allowed.
From a layman's point of view, their claims seem to be justified. But this is a clear example of
taking advantage of the loopholes. There is a point to ponder. When they have stopped showing
liquor advertisements, why the same brand name and logo is used to promote products like
cassettes & CDs or mineral water? They could have assigned different brand names. It seems
they have a hidden agenda of highlighting the liquor or tobacco brand.
23. School Of Management And Business Studies. Page 23
A similar tussle over the issue of surrogate advertisements in politics was raised in April 2004 on
the eve of Lok Sabha elections. Complaints of slanderous and offensive advertisements were
raised by two major political parties - BJP and Congress against each other. The issue became so
serious that the Supreme Court had to interfere in this affair. Finally on 13 April 2004, the Court
gave a verdict to curb smear advertisements on electronic media. By appointing Election
Commission as referee, the court has tried to put an end to surrogate advertising in politics.
According to the Cable Act under the ministry of information and broadcasting,- "no broadcaster
is permitted to show an advertisement which promotes directly or indirectly, sale or consumption
of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants…" Now a new clause
has been added under the act stating that "any advertisement for a product that uses a brand name
which is also used for cigarette, tobacco product, wine, alcohol, liquor or any other intoxicant
will not be permitted". Finally, in April 2005, the ministry resorted to a ban on surrogate
advertisements of liquor and tobacco products on television.
After this directive, the surrogate advertisements are seldom shown on television. Now the
companies will have to reframe their policies. But who will take care of print and outdoor media
is not certain.
According to ASCI (Advertising Standards Council of India), surrogate advertisements are
harmful. Now it will be up to the ASCI to take up the matter with the respective companies.
SURROGATE ADVERTISING: EMERGING TREND
A recent series of hoardings led me to delve into a very unique trend specific to Indian
advertising – Surrogate advertising… a trend which is fast catching up and has suddenly
attracted a lot of innovative and creative brains around the country.
Reason? On one hand, the govt cannot allow public advertising of liquor companies. But
ironically, liquor and cigarette sales are the biggest revenue generators in terms
of taxes and duties on these items. That’s why an overt acceptance of the marketing in these
sectors is not legally acceptable. This has led to one of the biggest ironies of the country – Sales
of these items are not banned, yet advertising on the same has strictly been prohibited!
24. School Of Management And Business Studies. Page 24
Talking about the market size and the different segments would not be pertinent to the discussion
(for the records, it is more than 100 million cases in India!). But what is the significance of this
trend vis-à-vis the entry points for new players and sustainability of existing ones?
Multinationals which would like to explore the Indian markets find the double-faced attitude of
the government as an impediment to their ventures. Since no policy has been formalized in this
regard, foreign companies continue to be skeptical about their entry.
Domestically, it has led to innovative ways and methods of spending on different media for
Advertising from the companies, where companies do more of a brand building exercise than
direct advertising. Be it promotions for brand building, or sponsoring events that can be mapped
with the “showbiz” and “glamour” of the brand, advertisers don’t leave many avenues to
enhance their visibility.
The rule says “Advertisements which lead to sale, consumption and promotion of liquor should
not be allowed.” So, in Surrogate Marketing, a product which is different from the main product
is advertised, and has the same brand name as the main product. The product is called as
“surrogate” and advertising through this channel is called “Surrogate Advertising”!
It may include CDs, water, clothing, Apple juice, fashion accessories, sports goods or even
events sponsoring!
These gimmicks, in turn, help the consumers build a strong equity of the parent brand, and with
the enhanced visibility, the equity of the brand would definitely become higher!
Liquor companies were forced to look at innovative ways of building their brands. With an
objective of enhancing brand recall, companies either engage into “surrogate advertising” or
displaying “socially responsible messages”.
Again, out of the two viable options for Advertising, Surrogate Advertising has been surrounded
by controversies and legalities for a long time. There is no clear policy from the government for
25. School Of Management And Business Studies. Page 25
obvious reasons and companies do not want to risk their investments on Ads, which might not be
screened after a while.
So, a safer choice available where companies can exercise their grey cells is advertising “socially
responsible” messages. Take a look at these billboards which I noticed on a private flyover a few
days back. There is also another print ad in continuation with the Johnnie Walker billboard.
Must say, this is one of the best elements of innovation that I have seen so far. Though it would
be too premature to attribute this to the industry per se, it has become imperative for the
companies to change their line of thought completely, to work around the system.
What are the other practices companies are looking at?
26. School Of Management And Business Studies. Page 26
(a) Companies are getting involved in Sponsorships of events and have launched their
own awards for bravery or lifetime achievements!
(b) Internet advertising has become a lucrative area which has so far not been delved into.
The medium holds a lot of potential to enhance visibility, and companies have lately
realized that.
(c) Catchy jingles have become the norm of the day to ensure that their brands have a high
brand recall.
(d) With restrictions in other marketing elements – in terms of pricing and distribution,
companies have ventured into another important element – Packaging. Innovative
packaging makes their brands stand out of the clutter, and most of the Multinationals are
revisiting this element in their brand portfolio.
Though the industry is not healthy for the young consumers, some processes and laws
need to be formalized and established in the system. Else, innovative
workarounds and arm-twisting of laws would be the norm of the day for the entire liquor
industry!
CONSUMER PSYCHOGRAPHICS AND SURROGATE ADVERTISING
'Surrogate advertising' is one of the emerging ethical issues in advertising in India. This is used
as a strategy to advertise products like liquor or tobacco - the advertisement of which otherwise,
is banned in our country. It relates to advertising by duplicating the brand image of one product
extensively to promote another product of the same brand. When consumers look at these
advertisements, they associate these with banned products. Hence, such products are indirectly
advertised, and therefore, influence their behaviour. There is no doubt that the hidden call for
alcohol consumption behind the surrogate advertisements is not escaping the eyes of viewers of
the world's fourth highest liquor consuming country. Hence, surrogate advertising defeats the
very purpose of banning liquor advertisements. The central issue of the ethical discussion in the
present study is regarding the attitude of targeted consumers towards the practice of surrogate
advertising vis-à-vis their psychographic profile towards advertising in general. The
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psychographics of the target audience are important to be discussed since they are the final
evaluators of advertising. The study concludes that surrogate advertising is not perceived
positively by the various sections of the society. Though there were some positive perceptions
found for this practice, on the whole, the attitude of most of the targeted consumers, i.e., the
respondents were more dominating towards the negative side for the surrogate advertising and
they consider it to be an unethical practice. The ethical perception of the targeted consumers
affect the acceptability of surrogate advertisements and hence, the attitude of the consumers
towards it, with majority of these consumers considering it as immoral and unethical. The
implications thus, are left for the advertisers to modify and redesign their advertising strategies in
accordance to the consumer psychographics, so that they can find a way out which is more
ethical and positive for the society or their target market rather than resorting to surrogate
advertising.
Impact of Surrogate Advertisements on Children
Each day 55,000 children in India start using tobacco, Gutkha the chewable tobacco is aimed at
the younger generation of the country. But you may wonder how these companies manage to
reach the minds of these children when they are not allowed to advertise these products.
After the ban the companies opened their doors to surrogate advertisement, an advertisement has
the logo or brand of another company advertised within it. Lets take a look at this report done by
a French channel on surrogate advertisements done in India.
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One of the biggest surrogate advertisement market is the film Industry Bollywood, in 2004 and
2005, 89% of all the released movies had smoking scenes in them. Below is a small
documentary on smoking in movies, with interesting statistics on the current scenario in India
with regards to smoking.
According to research done by the Salaam Bombay Foundation, 3260 children between the age
of 12 to 17 years fro municipal and private schools were asked to fill out a self-administered
questionnaire.
When asked to recall slogans of any tobacco company or brand…
71% recalled Manikchand – Oonche log, oonchi pasand
12% recalled Goa – Yahan bhi Khilate hain, whan bhi, Goa No 1
2% recalled Sanket
0.4% recalled Shimla
15% recalled other brands
When asked to associate slogans with brands 63% could associate the slogan while 37% could
not. What kind of a message will a child get from, Oonche log, oonchi pasand
Some of the observations learnt through this research is that, Gutkha advertising has had a deep
impact on the minds of children although it has been banned since August 2002.
As children cannot easily disassociate Manikchand Water fromManikchand Gutkha, tobacco
manufacturing companies should not be allowed to use surrogate advertisements. TV and radio
are the hotspots as to where these messages are broadcasted to the children.
Legal concern – “Blanket Ban on "Surrogate Advertising"
An advertisement unmistakably and profoundly directs one’s life. The extent to which
advertisements persuades a person depends upon its pushing publicity. The adverse impact of
advertisements of unhealthy products is a matter of concern for this hour.
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Impact of tobacco, liquor, cigarettes is far alarming than we can think for one’s health. Due to
the widespread unfavorable impact of advertisement of unhealthy products, Indian government
has always struggled and strived to curb or atleast restrict rampant advertisements of such
products by appropriate legislations.
Result to the directive of Government to ban advertisements of products that are adverse to
health, the major companies of liquor & tobacco sought other ways of endorsing their products.
They have found an alternative path of advertising through which they can keep on reminding
the people of their liquor/tobacco brands. They have introduced various other products with the
same brand name.
The problem occurs when heavy advertising is done so that the customers do not forget their
liquor & tobacco brands, for which advertisements are banned. The advertisements for such new
products are placed under the category of "Surrogate Advertisements". Surrogate advertising
(duplicating the brand image of one product extensively to promote another product of the same
brand), has become commonplace. Their only objective is to compensate the losses arising out of
the ban on advertisements of one particular product (i.e. liquor). The companies can always
claim that the order is being implemented and advertisements of liquor are banned, but the
objective of the Government behind imposing the ban is not fulfilled. A new weapon of Fill-in or
replacement war.
Surrogate advertisement by Companies
Players in tobacco industry - Wills lifestyle, Four Square white water rafting, etc
Players in liquor industry – Kingfisher beer, airlines and mineral water, Royal Challenge golf
accessories and mineral water, Bagpiper soda and cassettes & CDs, Haywards soda,, White
Mischief holidays, Smirnoff cassettes & CDs, Teacher's achievement awards, Imperial Blue
cassettes & CDs etc.
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Chapter 3
INDUSTRY ANALYSIS
THE ADVERTISING INDUSTRY
&
COMPANY PROFILE
2.1 ADVERTISING
Introduction
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Advertising is a non-personal form of communication intended to persuade an audience
(viewers, readers or listeners) to purchase or take some action upon products, ideals, or services.
It includes the name of a product or service and how that product or service could benefit the
consumer, to persuade a target market to purchase or to consume that particular brand. These
brands are usually paid for or identified through sponsors and viewed via various media.
Advertising can also serve to communicate an idea to a mass amount of people in an attempt to
convince them to take a certain action, such as encouraging 'environmentally friendly'
behaviours, and even unhealthy behaviours through food consumption, video game and
television viewing promotion, and a "lazy man" routine through a loss of exercise . Modern
advertising developed with the rise of mass production in the late 19th and early 20th centuries.
Mass media can be defined as any media meant to reach a mass amount of people. Several types
of mass media are television, internet, radio, news programs, and published pictures and articles.
Commercial advertisers often seek to generate increased consumption of their products or
services through branding, which involves the repetition of an image or product name in an effort
to associate related qualities with the brand in the minds of consumers. Different types of media
can be used to deliver these messages, including traditional media such as newspapers,
magazines, television, radio, outdoor or direct mail; or new media such as websites and text
messages. Advertising may be placed by an advertising agency on behalf of a company or other
organization.
Non-commercial advertisers that spend money to advertise items other than a consumer product
or service include political parties, interest groups, religious organizations and governmental
agencies. Non profit organizations may rely on free modes of persuasion, such as a public
service announcement.
In 2007, spending on advertising was estimated at more than $150 billion in the United States
and $385 billion worldwide.
THE AD INDUSTRY TRANSITION
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Advertising agencies are the link between the product and the market. They cannot be classified
as just one service provider. As they provide a bundle of services to make and build a brand.
Advertising agencies first began as space selling agencies. They would buy space in bulk, then
sell it and live on the commission gained. Slowly they began to give the client more than just one
service. Media began to creep in. And slowly the creative personnel too were made the pillars of
the organization. Today advertising agencies give the clients a 3600 view of their product.
HOW AN AD AGENCY FUNCTIONS?
First the brief is provided by the client that is brought into the company by the client servicing
personnel. The brief is about what the client needs to communicate to his target audience. Target
audience is categorized according to their income, consumption, purchasing power etc. Once the
target audience for a particular product is identified the strategy to communicate the product is
taken on.
The strategies are carefully planned by strategic planners and then communicated to the creative.
The creative team then takes on the task on how best to communicate the necessary to the
common people. Smart headlines, attractive visuals are then brainstormed among the creative
personnel. Finalized ideas are given birth to on paper, which are then presented to the client.
Deliberations, presentations follow in the conference room and the final ad to be released is
settled upon. Sometimes rework is demanded, sometimes corrections are given until the ad is
finalized. The estimate for media releases as requested is placed before the client. In-depth
planning is undertaken for colossal product releases. The media too works on the estimate for
days to finally sum up on the release plan that will give the product and the client maximum
reach.
On release of the ads, feedback from the client’s end is anxiously awaited by the agency. A good
response to the ad only elevates the relationship between the client and the agency and stands as
a motivator for some more good work.
Different types of Advertising
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Television Advertising
The TV commercial is generally considered the most effective mass-market advertising format,
as is reflected by the high prices TV networks charge for commercial airtime during popular TV
events. The annual Super Bowl football game in the United States is known as the most
prominent advertising event on television. The average cost of a single thirty-second TV spot
during this game has reached US$3 million (as of 2009).
The majority of television commercials feature’s song or jingle that listeners soon relate to the
product.
Virtual advertisements may be inserted into regular television programming through computer
graphics. It is typically inserted into otherwise blank backdrops or used to replace local
billboards that are not relevant to the remote broadcast audience. More controversially, virtual
billboards may be inserted into the background where none exist in real-life. This technique is
especially used in televised sporting events .
Virtual product placement is also possible.
Infomercial
An infomercial is a long-format television commercial, typically five minutes or longer. The
word "infomercial" is a portmanteau of the words "information" & "commercial". The main
objective in an infomercial is to create an impulse purchase, so that the consumer sees the
presentation and then immediately buys the product through the advertised toll-free telephone
number or website. Infomercials describe, display, and often demonstrate products and their
features, and commonly have testimonials from consumers and industry professionals.
Radio advertising
Radio advertising is a form of advertising via the medium of radio. Radio advertisements are
broadcasted as radio waves to the air from a transmitter to an antenna and a thus to a receiving
device. Airtime is purchased from a station or network in exchange for airing the commercials.
While radio has the obvious limitation of being restricted to sound, proponents of radio
advertising often cite this as an advantage.
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Press advertising
Press advertising describes advertising in a printed medium such as a newspaper, magazine, or
trade journal. This encompasses everything from media with a very broad readership base, such
as a major national newspaper or magazine, to more narrowly targeted media such as local
newspapers and trade journals on very specialized topics. A form of press advertising is
classified advertising, which allows private individuals or companies to purchase a small,
narrowly targeted ad for a low fee advertising a product or service.
Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers. Examples of online
advertising include contextual ads that appear on search engine results pages, banner ads, in text
ads, Rich Media Ads, Social network advertising, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.
Billboard advertising
Billboards are large structures located in public places which display advertisements to passing
pedestrians and motorists. Most often, they are located on main roads with a large amount of
passing motor and pedestrian traffic; however, they can be placed in any location with large
amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office
buildings, and in stadiums.
Mobile billboard advertising
Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on
dedicated vehicles built solely for carrying advertisements along routes preselected by clients,
they can also be specially equipped cargo trucks or, in some cases, large banners strewn from
planes. The billboards are often lighted; some being backlit, and others employing spotlights.
Some billboard displays are static, while others change; for example, continuously or
periodically rotating among a set of advertisements.
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In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes placement of a
product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout
counters, eye-catching displays promoting a specific product, and advertisements in such places
as shopping carts and in-store video displays.
Covert advertising
Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded
in entertainment and media. For example, in a film, the main character can use an item or other
of a definite brand, as in the movie Minority Report, where Tom Cruise's character John
Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch
engraved with the Bulgari logo.
Celebrities
This type of advertising focuses upon using celebrity power, fame, money, popularity to gain
recognition for their products and promote specific stores or products. Advertisers often
advertise their products, for example, when celebrities share their favorite products or wear
clothes by specific brands or designers. Celebrities are often involved in advertising campaigns
such as television or print adverts to advertise specific or general products.
The use of celebrities to endorse a brand can have its downsides, however. One mistake by a
celebrity can be detrimental to the public relations of a brand. For example, following his
performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer
Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate
with him after he was photographed smoking marijuana.
Overview of Advertising Industry in India
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The structure of the advertising industry in Asia Pacific has been affected by globalisation and
international alignments creating a smaller number of very large agencies and the growth of
independent major media buying houses. Very sophisticated software optimisation and planning
systems are now integral to the industry, enabling agencies to offer a unique positioning in the
marketplace to attract new business.
American companies are discovering the appeal of marketing their products in India. With a
population of approximately one billion, and a middle class that's larger than the total population
of the United States, there's definitely money to be made. Local retailers in apparel, food,
watches and jewellery have all increased their average ad spending by almost 50% in the past
two years. Coupled with many other local players big retailing brands are spending to the tune of
Rs 12,000 crores annually on advertising and promotional activities. This figure, according to
industry estimates, was less than Rs 400 crores about 3 years ago. This means the growth has
been a whopping 40%. The local firms are using all the available advertising tools from
electronic to print, outdoor advertising and even models. The advertising and promotional
spending by local brands is substantial during the festival season and almost 70% of the spending
is done between September to January. The advertising industry in India is growing at an average
rate of 10-12% per annum. Over 80% of the business is from Mumbai and Delhi followed by
Bangalore and Chennai.
Online Ad Spending in India
Online advertising spending is holding its own and will continue to grow steadily over the next
several years. Marketers are responding to the economic challenges with new techniques and
strategies, along with research data to prove their effectiveness. According to statistics, online ad
spending has reached $23 billion. Nonetheless, nearly three-quarters of web advertising space
goes unsold and more than 99.7 per cent of banner ads are not clicked on.
Scope of Advertising Industry in India
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The advertising industry in India has several competitive advantages:
• India has a rich pool of strategic planning, creative and media services personnel: Indeed,
Indian advertising industry has been exporting senior-level talent to many countries,
particularly to the Gulf, South-East Asia, China, the UK and the US. Indian talent is
recognised and respected in global agency networks.
• No other country has access to so many trained management graduates who can provide
strategic inputs for brand and media planning.
• Indians are multicultural: we learn at least two languages and that gives us a head start in
understanding cultural diversity.
• Most of the top 20 agencies in India have a global partner or owner, which should provide an
immediate link to global markets.
• Our production standards in TV and print have improved: With a vibrant animation software
industry, we have access to this area of TV production.
• India's advanced IT capabilities can be used to develop Web-based communication packages
for global clients.
The Indian advertising industry is a very upcoming and promising sector. However there is
severe competition and survival is for the fittest and the best. In this sector what matters the most
is knowledge and experience of the work and the industry and its functioning. The more the
knowledge you can provide the better the productivity you give.
The various departments in an ad agency
The number of departments varies from agency to agency depending on their size. However the
main divisions are as follows:
Account Servicing:
Client servicing is a crucial part of the advertising industry. The main aim of this department is
to generate customers and business for the company and also develop the existing customer
relationships. This department also covers the responsibilities of the public relationship officers.
Advertising can be done through television media, print media and the internet. Similarly, client
38. School Of Management And Business Studies. Page 38
servicing for the customers is mostly done by using the internet as the medium. A lot of
advertisements are campaigned by using internet and email promotions. A client servicing agent
would also need to design new schemes to attract many companies to take their offer. Pricing
and design models of the offer are also covered by this department. To be able to design good ad
campaigns, the agent should also be capable of doing appropriate online research. This job also
needs the person to be creative and progressive. The person should be abreast of the industry's
changing facets.
Account Planning:
Account planners combine research and strategic thinking. If the account manager is closest to
the client, the account planner is closest to the consumer. The account planner is the person on an
advertising team who is most likely to have spent time with consumers using the product, or in
focus groups asking them about how they think about the product. And in an era in which the
brand is sometimes at least as important as a specific product (for instance, Nike as a brand has a
place in the culture that far exceeds the particular performance characteristics of their shoes), the
account planner is responsible for understanding the place of the brand in the consumer
imagination. They are different than a simple research function in that they stay engaged in the
campaign process throughout. Rather than offering research insights to others at a single point in
time, they use research to continue to provide insights within the campaign process.
Creative Department:
The people who create the actual ads form the core of an advertising agency. Modern advertising
agencies usually form their copywriters and art directors into creative teams. Creative teams may
be permanent partnerships or formed on a project-by-project basis. The art director and
copywriter report to a creative director, usually a creative employee with several years of
experience. Although copywriters have the word "write" in their job title, and art directors have
the word "art", one does not necessarily write the words and the other draw the pictures; they
both generate creative ideas to represent the proposition (the advertisement or campaign's key
message). Creative departments frequently work with outside design or production studios to
develop and implement their ideas. Creative departments may employ production artists as entry-
39. School Of Management And Business Studies. Page 39
level positions, as well as for operations and maintenance. The creative process forms the most
crucial part of the advertising process.
As the project was part of the client servicing team at O & M, a small brief on what client
servicing is all about, how it functions, the various key positions and the importance of the Client
servicing team in an Ad company is mentioned below.
THE CLIENT SERVICING TEAM
The Client Servicing department is the link between the client and the agency. It is an important
part of any advertising firm like what the heart is to the body. This department is responsible for
meeting prospective clients and getting business for the company. It involves a study of the
client, the product and the market; an analysis of consumer behavior and marketing; knowledge
of all available media and their cost effectiveness, and a strategic plan to be presented to the
client. Those in client servicing must therefore interact with clients, gather information, oversee
research where necessary, gauge consumer attitudes and based on this, work along with the
various departments of the agency to formulate the most appropriate and effective advertising
strategy within the specified budget.
To be an effective client-servicing person, the candidate has to have a thorough knowledge of the
client's business and also know his weak points so that, through advertising and communications,
the gap can be minimized.
An accounts executive who works in the client servicing department takes care of all the
monitory dealings. He should know the most effective way to advertise client’s product or
service i.e. the media and their cost effectiveness. Account executives should also have an idea
about market research and target audiences.
Client servicing is a crucial part of the advertising industry. The main aim of this department is
to generate customers and business for the company and also develop the existing customer
relationships. This department also covers the responsibilities of the public relationship officers.
Advertising can be done through television media, print media and the internet. Similarly, client
40. School Of Management And Business Studies. Page 40
servicing for the customers is mostly done by using the internet as the medium. A lot of
advertisements are campaigned by using internet and email promotions. A client servicing agent
would also need to design new schemes to attract many companies to take their offer. Pricing
and design models of the offer are also covered by this department. To be able to design good ad
campaigns, the agent should also be capable of doing appropriate online research. This job also
needs the person to be creative and progressive. The person should be abreast of the industry's
changing facets.
Advertising Client Servicing Education
The main role of client servicing agent is selling. He or she would need to sell the products and
packages of the company. For this, a degree in Marketing or an MBA is required. These are the
basic qualifications. However, an added knowledge of Computers, Microsoft Office tools and
other qualifications in multimedia design is also crucial for the job functionalities.
The MBA degree is a must because the person performing this role needs to have the industry
knowledge and also technical knowledge of the market dynamics in order to be able to design
and modulate good packages for the company. An additional education in Public Relation Skills
could also very helpful to perform the job role. A person opting for this role could choose to do
additional advertising courses after completing their MBA to take up a job in
the client servicing industry.
Advertising Client Servicing Skills
The key skills required to perform this job role are mainly used in business development
and client servicing. The business development aspect of the job would need the person to talk to
new customers and prospect new business for the company. This would require the person to
have excellent verbal communication skills, as well as a convincing ability and marketing tactics
to be good at the job. The job prospects are high in the client servicing industry and a person can
hope to go to higher levels using their verbal skills.
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A person doing this job should have a dynamic personality. The client servicing part of the job
would also require all of the above mentioned qualities in a person, and simultaneously the
person should also have problem solving abilities. This role mainly involves keeping good
relations with existing customers and making them continue with the business and also prospect
for more business. The majority of relationship management is done by the personnel of this
department.
Advertising Client Servicing Role
The job roles in this department are Account servicing manager and executives, Account
managers, and marketing executives. An account would be company specific.
Big advertising companies treat each individual company as an account for example like a Pepsi
Account, or a Coca Cola account. An account manager would be a person who is handling all the
needs of that specific company and also improving the business aspects simultaneously.
Advertising Client Servicing Benefits
The benefits of this job role are that the person working in client servicing can improve
their business contacts and also earn a good reputation among the fellow business community.
These people are the first contact and are the main relationship managers, so they can have many
contacts in the industry which will help them in the future.
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Chapter 4
THE COMPANY PROFILE
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OGILVY AND MATHER INDIA LTD.
Ogilvy & Mather is an international advertising, marketing and public relations agency
based in Manhattan and owned by the WPP Group. The company operates 497 offices in 125
countries with approximately 16,000 employees.
History
Ogilvy & Mather was founded in 1948 by David Ogilvy, as "Hewitt, Ogilvy, Benson, & Mather"
in Manhattan. The company became a leading worldwide agency by the 1960s. Central to its
growth was its strategy of building brands such as American Express, BP, Ford, Barbie, Maxwell
House, IBM, Kodak, Nestlé, and Unilever brands Pond's and Dove.
Ogilvy & Mather was built on Ogilvy's principles, in particular, that the function of advertising is
to sell and that successful advertising for any product is based on information about its
consumer.
His entry into the company of giants started with several iconic campaigns:
"The man in the Hathaway shirt" with his aristocratic eye patch; "The man from Schweppes is
here" introduced Commander Whitehead, the elegant, bearded Brit, bringing Schweppes
(and"Schweppervesence") to the U.S.; "At 60 miles an hour the loudest noise in this new Rolls-
Royce comes from the electric clock"; and "Pablo Casals is coming home – to Puerto Rico", a
campaign that Ogilvy said helped change the image of a country and was his proudest
achievement.
One of his greatest successes was "Only Dove is one-quarter moisturizing cream". This
campaign helped Dove become the top selling soap in the U.S.
In 1989 The Ogilvy Group was purchased by WPP Group.
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Clients
The major clients of O&M are:-
Adidas
American Express
Amway
British Gas
BP
Citizens Financial Group
Cisco
Coca-Cola Company
DHL
DuPont
Gap
Gillette
GlaxoSmithKline
IBM
Kodak
Kraft
Lenovo
Mattel
MetLife
Motorola
Nestle
NexCen Brands
SAP
Siemens
TABASCO
Tobacco Institute
Unilever (Parent Company)
Vodafone
OGILVY AND MATHER INDIA LTD: AT A GLANCE
• A subsidiary of WPP Group. Global revenues US$ 4.9 billion
• One of India’s leading advertising agencies, 800 employees, over 300 domestic and MNC
clients. O&M’s International’s 5th largest operation in terms of profit.
• Ranked India’s number one agency by Brand Equity survey on leadership, creative ability,
investment in employees, client servicing, most influential people and hottest creative directors.
• Factors for success: Quality human resources, first mover advantage in introducing global
practices
• For O&M, India is: a global sourcing hub for creative and non-creative services. Have back
office operations in Bangalore
• Future plans India: Increase operations for the global clientele. Establish development centers
for database marketing, B2B communications and creative for international clients
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Chapter 5
RESEARCH METHODOLOGY
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4. RESEARCH METHODOLOGY:
On defining the objective of the project, a plan was developed to gather information most
efficiently. Decisions were taken on the data sources, sampling plan, research tools. Research is
essentially a systematic enquiry seeking facts through objective verifiable methods in order to
discover the relationship among them to deduce from them broad principles of laws.
4.1 TYPE OF STUDY:
As the characteristics of a certain group the certain variables are to be determined, a descriptive
method is chosen for this study. The descriptive research portrays accurately the characteristics
of a particular individual, situation or a group.
The descriptive research includes surveys and fact enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present. The
major characteristic of this method is the researcher has no control over the variables, he can
only report what has happened or what is happening.
4.2 SOURCE OF DATA:-
• Primary data: it includes data collected directly from the customers in Bangalore city so
as to meet the direct requirements of the investigation at hand.
• Secondary data: it includes data from magazines, websites and reference books.
4.3 METHOD:
• The research is done through a survey in the form of an interaction with about 14 main
questions as points of reference. The interaction is done with the target group at different
places in the Bangalore city.
4.4 SAMPLING TECHNIQUE
Non –probability sampling was adopted to conduct the survey. Customers were selected on the
basis of ease of access. So convenience sampling was carried out for collecting primary data. In
this method a desired number of sample unit is selected deliberately or purposely depending
48. School Of Management And Business Studies. Page 48
upon the object of the enquiry, so that only the important items representing the true
characteristics of the population are included in the sample.
4.6 SAMPLE SIZE:
A sample size of 96 respondents was interviewed through the interactive methodology.
The interaction was limited to 5 minutes wherein discussion happened about the choice of
brands, perception about surrogate advertisements. Also questions related to various brand
preferences and their purchase intention was posed.
4.7 DATA COLLECTION METHOD
Data collection has been done through a very useful & popular survey method. The survey was
conducted through personal interviews to study the impact of surrogate advertisements on the
customers buying behaviour to buy the surrogate products. To understand each individual
response, the personal interview method is better than other methods like telephonic interviews,
mailing questionnaire etc. Because this method gives the researcher enough flexibility to ask any
other question which is relevant for research.
4.8 DATA COLLECTION INSTRUMENT
The survey method was used for the research; the personal interviews were conducted with the
help of a structured questionnaire.
4.9 STATISTICAL TOOLS USED FOR ANALYSING THE DATA
Percentage method
Graphical Representation using Figures& Bar diagram
CRITERIA TAKEN FOR SAMPLES
1. The sample size of 96 is for representative of the population.
2. Respondents have no bias.
3. Only people know surrogate advertisements are taken as samples.
49. School Of Management And Business Studies. Page 49
Chapter 6
DATA ANALYSIS
AND
INTERPRETATION
50. School Of Management And Business Studies. Page 50
DATA INTERPRETATION
Analysis of data involves a number of closely related operations that are performed with purpose
of summarizing the collected data and organizing these in such a manner that they will yield
answer to the research questions. The term analysis refers to the computation of certain measures
along with searching for patterns of relationship that exist among data group. Interpretation is
often inextricably interwoven with analysis; it should more properly be conceived as a special
aspect of analysis.
Interpretation is necessary for the simple reason that the usefulness and utility of research
findings lie in proper interpretation. The statistical interpretation shows various responses
relating to the variable. The analysis and interpretation of data lead the researcher to the
objectives of the study. It is through interpretation that the research can well understand the
abstract principle works beneath his findings.
51. School Of Management And Business Studies.
Percentage Method
6.1 Most seen Media used by the people for watching the advertisements
Valid print media
Radio
television
Internet
Mobile
Total
Source: Market Survey
Findings:
50% of the people uses Television, 15.6% for Print media and Internet,13.5% for Mobile and
5.2% on Radio to Refer the media.
School Of Management And Business Studies.
Data Analysis
Most seen Media used by the people for watching the advertisements
Frequency Percent
Valid
Percent
Cumulative
Percent
print media 15 15.6 15.6 15.6
5 5.2 5.2 20.8
television 48 50.0 50.0 70.8
Internet 15 15.6 15.6 86.5
13 13.5 13.5 100.0
96 100.0 100.0
Market Survey
50% of the people uses Television, 15.6% for Print media and Internet,13.5% for Mobile and
5.2% on Radio to Refer the media.
print media
Radio
television
Internet
Mobile
Page 51
Most seen Media used by the people for watching the advertisements
Cumulative
50% of the people uses Television, 15.6% for Print media and Internet,13.5% for Mobile and
print media
Radio
television
Internet
Mobile
52. School Of Management And Business Studies.
Inference:
The question is to find out the
advertising is more reachable than any other media advertising .
6.2 How often people watch the advertisements of alcohol
Valid Dont remember
Not at all
Rare
Occasional
Regular
Total
Source: Market Survey
0
5
10
15
20
25
30
35
40
45
50
Dont
remember
percentage
School Of Management And Business Studies.
The question is to find out the effective means of media advertising , through which television
advertising is more reachable than any other media advertising .
people watch the advertisements of alcohol
Frequency Percent Valid Percent
Cumulative
Percent
remember 19 19.8 19.8 19.8
7 7.3 7.3 27.1
42 43.8 43.8 70.8
Occasional 15 15.6 15.6 86.5
13 13.5 13.5 100.0
96 100.0 100.0
Market Survey
remember
Not at all Rare Occasional Regular
Attributes
Page 52
effective means of media advertising , through which television
Cumulative
Percent
19.8
27.1
70.8
86.5
100.0
Series1
53. School Of Management And Business Studies.
Findings:
Out of 96 respondents 43.8 % of people were
remembering,7.3% were not at
alcohol.
Inference:
The question aim’s to find out how much the customer watches an advertisement; shows a
negative tone such that advertisements has to be more effective.
6.3 Purchase of surrogate Product
Valid Never
Occasionally
Often
Regularly
Total
Source: Market Survey
0
5
10
15
20
25
30
35
40
45
Never
Percentage
School Of Management And Business Studies.
Out of 96 respondents 43.8 % of people were seeing rarely, 19.8% were don’t
remembering,7.3% were not at all,15.6% regularly seeing surrogative advertisements of
’s to find out how much the customer watches an advertisement; shows a
ertisements has to be more effective.
urchase of surrogate Product
Frequency Percent Valid Percent
Cumulative
Percent
10 10.3 10.3 10.3
28 28.9 28.9 39.2
38 39.2 39.2 78.4
21 21.6 21.6 100.0
97 100.0 100.0
Market Survey
Never Occasionally Often Regularly
Attributes
Page 53
seeing rarely, 19.8% were don’t
ogative advertisements of
’s to find out how much the customer watches an advertisement; shows a
Cumulative
Percent
10.3
39.2
78.4
100.0
Series1
54. School Of Management And Business Studies.
Findings:
From above figure 39.2% people often, 28.9% occasionally, 21.6% regularly ,
surrogate product after see the advertisement on media.
Inference:
Figure shows surrogate products have
6.4 Which Advertisement is remembered most by the people
Valid Bacadi
Smirnoff
Royal Challenge
Kingfisher
Mcdowells
Total
Source: Market Survey
School Of Management And Business Studies.
From above figure 39.2% people often, 28.9% occasionally, 21.6% regularly ,
surrogate product after see the advertisement on media.
surrogate products have sufficient market by surrogate advertisements.
Which Advertisement is remembered most by the people
Frequency Percent Valid Percent
Cumulative
Percent
24 25.0 25.0 25.0
10 10.4 10.4 35.4
13 13.5 13.5 49.0
40 41.7 41.7 90.6
9 9.4 9.4 100.0
96 100.0 100.0
Market Survey
Bacadi
Smirnoff
Royal Challenge
Kingfisher
Mcdowells
Page 54
From above figure 39.2% people often, 28.9% occasionally, 21.6% regularly , 10.3% never buy
sufficient market by surrogate advertisements.
Cumulative
Percent
25.0
35.4
49.0
90.6
100.0
Smirnoff
Royal Challenge
Kingfisher
Mcdowells
55. School Of Management And Business Studies.
Findings:
Majority of people remember king fisher brand of 41.7 % when compared to Bacardi, 25.0%;
Smirnoff, 10.4 %; royal challenge 13.5% and
Inference:
Among above data’s people remember Bacardi and kingfisher the most , as it is shown
continuously through several medias. The advertisements shown will depends on the
geographical area they belongs to.
6.5 What made the people
Valid Celebrities
Creativity
Voice
Wordings
Logo Familiarity
Total
Source: Market Survey
0
10
20
30
40
Celebrities
Percentage
School Of Management And Business Studies.
Majority of people remember king fisher brand of 41.7 % when compared to Bacardi, 25.0%;
Smirnoff, 10.4 %; royal challenge 13.5% and Mc dowells9.4 %.
above data’s people remember Bacardi and kingfisher the most , as it is shown
continuously through several medias. The advertisements shown will depends on the
geographical area they belongs to.
What made the people to remember the Advertisement
Frequency Percent Valid Percent
Cumulative
Percent
36 37.5 37.5 37.5
30 31.3 31.3 68.8
7 7.3 7.3 76.0
14 14.6 14.6 90.6
Logo Familiarity 9 9.4 9.4 100.0
96 100.0 100.0
Market Survey
Creativity Voice Wordings Logo
Familiarity
Attributes
Page 55
Majority of people remember king fisher brand of 41.7 % when compared to Bacardi, 25.0%;
above data’s people remember Bacardi and kingfisher the most , as it is shown
continuously through several medias. The advertisements shown will depends on the
Cumulative
Percent
37.5
68.8
76.0
90.6
100.0
Logo
Familiarity
Series1
56. School Of Management And Business Studies.
Findings:
Out of the above people remember because of influence of celebrity 37.5%, creativity
voice 7.3 %, wordings 14.5% and logo 9.4%.
Inference:
People remember advertisements
easily recalled.
6.6 Opinion of people about the requirement of Surrogative Advertisement
Frequency
Valid Yes 41
No 55
Total 96
Source: Market Survey
Findings:
57.3% of people doesn’t support the requirement of surrogate advertisement , while 42.7%
support surrogate advertisement.
0
10
20
30
40
50
60
70
Percentage
School Of Management And Business Studies.
Out of the above people remember because of influence of celebrity 37.5%, creativity
voice 7.3 %, wordings 14.5% and logo 9.4%.
People remember advertisements due to celebrities which are more reachable and found to be
Opinion of people about the requirement of Surrogative Advertisement
Frequency Percent Valid Percent
Cumulative
Percent
41 42.7 42.7 42.7
55 57.3 57.3 100.0
96 100.0 100.0
Market Survey
57.3% of people doesn’t support the requirement of surrogate advertisement , while 42.7%
support surrogate advertisement.
Yes No
Attributes
Series1
Page 56
Out of the above people remember because of influence of celebrity 37.5%, creativity 31.3%,
more reachable and found to be
Opinion of people about the requirement of Surrogative Advertisement
Cumulative
Percent
57.3% of people doesn’t support the requirement of surrogate advertisement , while 42.7%
Series1
57. School Of Management And Business Studies.
Inference:
Companies need to find out more enticing
6.7 People evaluation of Surrogative Advertisement
Valid Entertaining
Boring
Informative
Misguiding
Disturbing
Total
Source: Market Survey
Findings:
39.6% of people believe surrogate advertisement as misguiding, 25.0% as entertainment,
as disturbing, 12.5 % as informative and 8.5 % as boring.
School Of Management And Business Studies.
Companies need to find out more enticing surrogate advertisements to reach the
People evaluation of Surrogative Advertisement
Frequency Percent
Valid
Percent
Entertaining 24 25.0 25.0
8 8.3 8.3
Informative 12 12.5 12.5
Misguiding 38 39.6 39.6
14 14.6 14.6
96 100.0 100.0
Market Survey
39.6% of people believe surrogate advertisement as misguiding, 25.0% as entertainment,
disturbing, 12.5 % as informative and 8.5 % as boring.
Entertaining
Boring
Informative
Misguiding
Disturbing
Page 57
surrogate advertisements to reach the customers.
Cumulative
Percent
25.0
33.3
45.8
85.4
100.0
39.6% of people believe surrogate advertisement as misguiding, 25.0% as entertainment, 14.6%
Entertaining
Informative
Misguiding
Disturbing
58. School Of Management And Business Studies.
Inference:
More areas to be explored to make surrogate advertisements since it creates negative ideas in
public’s mind, as majority of people’s doesn’t like to entertain these ad’s.
6.8 Opinion of people about the Su
Valid Strongly Agree
Agree
Neither Agree or Disagree
Disagree
Strongly Disagree
Total
Source: Market Survey
0
5
10
15
20
25
30
35
40
45
50
Strongly
Agree
Percentage
School Of Management And Business Studies.
areas to be explored to make surrogate advertisements since it creates negative ideas in
, as majority of people’s doesn’t like to entertain these ad’s.
Opinion of people about the Surrogative Advertisement which are
Frequency Percent
Valid
Percent
Strongly Agree 10 10.4 10.4
20 20.8 20.8
Neither Agree or Disagree 45 46.9 46.9
17 17.7 17.7
Strongly Disagree 4 4.2 4.2
96 100.0 100.0
Market Survey
Agree Neither Agree
or Disagree
Disagree Strongly
Disagree
Attributes
Page 58
areas to be explored to make surrogate advertisements since it creates negative ideas in
rrogative Advertisement which are banned in india
Cumulative
Percent
10.4
31.3
78.1
95.8
100.0
Strongly
Disagree
Series1
59. School Of Management And Business Studies.
Findings:
About 46.9 % doesn’t agree or disagree, 20.8% totally agree, 10.4% strongly agree, 17.7%
disagree and 4.2% people strongly disagree about the knowledge of surrogate ad’s banned in
India.
Inference:
As this question is to identify public’s opinion, data shows they don’t have much idea about
that advertisement which has banned in India.
6.9 Impact of Surrogative Advertisement on sales of Surrogate Products
Valid Definitely will not affect
Probably will not affect
Undecided
Probably will affect
Definitely will affect
Total
Source: Market Survey
0
5
10
15
20
25
30
35
Definitely
will not
affect
School Of Management And Business Studies.
About 46.9 % doesn’t agree or disagree, 20.8% totally agree, 10.4% strongly agree, 17.7%
disagree and 4.2% people strongly disagree about the knowledge of surrogate ad’s banned in
to identify public’s opinion, data shows they don’t have much idea about
that advertisement which has banned in India.
Impact of Surrogative Advertisement on sales of Surrogate Products
Frequency Percent
Valid
Percent
Definitely will not affect 8 8.3 8.3
Probably will not affect 12 12.5 12.5
20 20.8 20.8
Probably will affect 24 25.0 25.0
Definitely will affect 32 33.3 33.3
96 100.0 100.0
Market Survey
Probably
will not
affect
Undecided Probably
will affect
Definitely
will affect
Page 59
About 46.9 % doesn’t agree or disagree, 20.8% totally agree, 10.4% strongly agree, 17.7%
disagree and 4.2% people strongly disagree about the knowledge of surrogate ad’s banned in
to identify public’s opinion, data shows they don’t have much idea about
Impact of Surrogative Advertisement on sales of Surrogate Products
Cumulative
Percent
8.3
20.8
41.7
66.7
100.0
Series1
60. School Of Management And Business Studies. Page 60
Findings:
33.3% definitely affect, 25.0% probably affect, 20.8% not decided, 12.5%probably not affect
and 8.3% definitely will not affect, opines surrogate ad’s will affect sales of surrogate products.
Inference:
It gives clear idea that surrogate advertisements create strong impact on surrogate products.
6.10 The television ad for “Bacardi” creates strong misleads with respect to
surrogative advertisements in India
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Defenitely will not
Think
22 22.9 22.9 22.9
Probably will not Think 14 14.6 14.6 37.5
Neutral 43 44.8 44.8 82.3
Probably will Think 11 11.5 11.5 93.8
Defenitely will Think 6 6.3 6.3 100.0
Total 96 100.0 100.0
Source: Market Survey
61. School Of Management And Business Studies.
Findings:
About the ad of Bacardi 44.8% of people had mixed opinion, while 22.9% about definitely will
not think,14.6% probably will not think, 11.5% probably
misleads will happen with respect to surrogate ad’s.
Inference:
Public generally doesn’t support liquor advertisements, that some ethical concepts prevails in
India.
0
5
10
15
20
25
30
35
40
45
50
Defenitely will
not Think
Probably will
not Think
Percentage
School Of Management And Business Studies.
About the ad of Bacardi 44.8% of people had mixed opinion, while 22.9% about definitely will
not think,14.6% probably will not think, 11.5% probably think 6.3 % definitely opine
misleads will happen with respect to surrogate ad’s.
Public generally doesn’t support liquor advertisements, that some ethical concepts prevails in
Probably will
not Think
Neutral Probably will
Think
Defenitely will
Think
Attributes
Page 61
About the ad of Bacardi 44.8% of people had mixed opinion, while 22.9% about definitely will
think 6.3 % definitely opined that
Public generally doesn’t support liquor advertisements, that some ethical concepts prevails in
Defenitely will
Think
Series1
62. School Of Management And Business Studies.
6.11 Product Recalling of Surrogate Ads
Valid Dont Remember
Not at all
Occasionally
Most Probably
Definitely
Total
Source: Market Survey
Findings:
39.6% most probably recall 26 % definitely, 26.0% occasionally, 6.3% not at all and
remember the original product after see the surrogate ad’s.
0
5
10
15
20
25
30
35
40
45
Dont
Remember
Percentage
School Of Management And Business Studies.
roduct Recalling of Surrogate Ads
Frequency Percent Valid Percent
Cumulative
Percent
Dont Remember 2 2.1 2.1 2.1
6 6.3 6.3 8.3
25 26.0 26.0 34.4
Most Probably 38 39.6 39.6 74.0
25 26.0 26.0 100.0
96 100.0 100.0
Market Survey
39.6% most probably recall 26 % definitely, 26.0% occasionally, 6.3% not at all and
remember the original product after see the surrogate ad’s.
Not at all Occasionally Most
Probably
Definitely
Attributes
Page 62
Cumulative
Percent
2.1
8.3
34.4
74.0
100.0
39.6% most probably recall 26 % definitely, 26.0% occasionally, 6.3% not at all and 2 % don’t
Definitely
Series1
63. School Of Management And Business Studies.
Inference:
People remember the ad’s well and their Brand name in surrogate ad’s are effective in
customer’s mind.
6.12 Surrogative Advertisements induce to try the original
Valid Never
Occasionally
Sometimes
Often
Regular
Total
Source: Market Survey
0
5
10
15
20
25
30
35
40
Never
Percentage
School Of Management And Business Studies.
People remember the ad’s well and their Brand name in surrogate ad’s are effective in
Surrogative Advertisements induce to try the original
Frequency Percent Valid Percent
Cumulative
Percent
8 8.3 8.3 8.3
4 4.2 4.2 12.5
28 29.2 29.2 41.7
33 34.4 34.4 76.0
23 24.0 24.0 100.0
96 100.0 100.0
Market Survey
Occasionally Sometimes Often Regular
Attributes
Page 63
People remember the ad’s well and their Brand name in surrogate ad’s are effective in
Cumulative
Percent
8.3
12.5
41.7
76.0
100.0
Regular
Series1
64. School Of Management And Business Studies. Page 64
Findings:
34.4% oftenly, 29.2% sometimes, 24.0% regularly, 4.2% occasionally, 8.3% never induced by
surrogate ad’s to try the original product.
Inference:
The analysis is to find out whether the surrogate ad’s makes the customer to try the product;
yes, it makes considerable amount of time for the customer to buy the product. So surrogate
advertisements are found to be effective in nature.
6.13 Liquor Advertisement is ethical compared to other products in India
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly Disagree 11 11.5 11.5 11.5
Disagree 6 6.3 6.3 17.7
Neither Agree or Disagree 45 46.9 46.9 64.6
Agree 22 22.9 22.9 87.5
Strongly Agree 12 12.5 12.5 100.0
Total 96 100.0 100.0
Source: Market Survey
65. School Of Management And Business Studies.
Findings:
46.9% has mixed opinion, 22.9% agree, 12.5% strongly agree, 6.3% disagree and 11.5% strongly
disagree about the ethical behaviour of liquor ad’s when compared to other products in India
Inference:
People opine that these advertisements are needed and liquor advertisements are acce
and ethical when compared to other products in India.
0
5
10
15
20
25
30
35
40
45
50
Strongly
Disagree
Percentage
School Of Management And Business Studies.
22.9% agree, 12.5% strongly agree, 6.3% disagree and 11.5% strongly
disagree about the ethical behaviour of liquor ad’s when compared to other products in India
People opine that these advertisements are needed and liquor advertisements are acce
and ethical when compared to other products in India.
Disagree Neither
Agree or
Disagree
Agree Strongly
Agree
Attributes
Page 65
22.9% agree, 12.5% strongly agree, 6.3% disagree and 11.5% strongly
disagree about the ethical behaviour of liquor ad’s when compared to other products in India
People opine that these advertisements are needed and liquor advertisements are accepted
Strongly
Series1
66. School Of Management And Business Studies. Page 66
Chapter 7
FINDINGS, CONCLUSION
AND
SUGGESTIONS
67. School Of Management And Business Studies. Page 67
6.1 FINDINGS
• Out of different Medias for advertisement, it is found that television advertising is more
effective and reachable to the customers.
• The advertisements of King Fisher and Bacardi are remembered more , since repeated
ads are able to create brand image on such products
• Customers identifies the surrogate products in the market, with their existing brand
names of original product.
• It’s the effective use of celebrities and creativity , the surrogate products makes their
product success.
• People remind only continuously seen surrogate advertisements , it means more areas of
advertisements to be explored .
• Surrogate advertisements induces the customer to try the product, which means it hit the
mind of customer directly.
• Companies had to concentrate since customer is looking for ethical aspects also
regarding the surrogate advertisements
68. School Of Management And Business Studies. Page 68
6.3 CONCLUSION
This study had conducted to know the knowledge and perception of customers about surrogate
advertisements in the Bangalore city and analyses the factors for knowing the surrogate
advertisement have any impact on the consumers buying behaviour for buy the surrogate
products. It got understood that the brand is able to make the customers to purchase the product.
During the study a sample of 96 respondents were analysed that customer’s purchasing style has
any relation with the surrogate advertisements shown through medias and to know what interest
elements did the customer find in them in order to use of surrogate products. The knowledge of
customer, their preferences and knowledge are analysed. The data’s were filled by questionnaire
method.
It’s mainly though the brand name of established brands these products are made to meet the
company requirements, ie; to make maximum mileage from the existing brands. It’s through the
existing brands of companies were that existing in the market. Moreover, the knowledge and
awareness level about surrogate advertisements were also low, but when explained them,
everybody are known and thus selected for sampling purpose. The main reasons given by the
respondents for not knowing about most of surrogate advertisements are they are not exposed to
see that many times So, with this research it was concluded with an underline that effective
surrogate advertisements induce the customer to purchase surrogate products.
69. School Of Management And Business Studies. Page 69
6.2 SUGGESTIONS
• As the people see surrogate advertisements , through different medias , but they seek
more innovative way of such advertisements.
• The effective surrogate advertisements will create considerable change in companies
sales, So there is huge opportunity for liquor companies to develop advertisement
strategies and make more sales.
• Surrogate products creating some negative impacts ethically; if companies able to convert
that negative impacts to positive , they can take the mileage of surrogate advertisements.
• Companies need to introduce various advertisement strategies depending on different
geographical areas .
• Company have to give prior importance to customer’s preference while doing liquor
surrogate advertisements.
• Companies are generally doing advertising in soda, mineral water, music cd’s etc.. they
can go for more diversified advertisements like sponsoring Indian Premier League etc.....
71. School Of Management And Business Studies. Page 71
BOOKS REFERRED
• Philip Kotler ,Kevin Lane Keller, Marketing Management,(12th
edition, New Delhi,
Pearson Education,2006)
• Malhotra.N.K, Marketing Research: An Applied Orientation, (4th
edition, New Delhi,
Pearson Education,2006)
• Advertising management concept and cases by Mahedra Mohan
• Ogilvy on Advertising by David Ogilvy
WEBSITE
• www.ogilvy.com
• www.ogilvyindia.com
• www.scribd.com
• http://en.wikipedia.org/wiki
• www.marketing research.com
• www.researchandmarkets.com
73. School Of Management And Business Studies. Page 73
QUESTIONAIRE FOR IMPACT OF SURROGATIVE ADVERTISEMENT ON SURROGATE PRODUCTS
(THROUGH ALCOHOL AS EXAMPLE)
NAME…
QUALIFICATION…
Please supply the following details about yourself:
Age:
Sex: male female
Geographic Location : a) Rural b) Urban
1) From which media you used to watch the most in advertisements? (Tick one)
a)Print media b) Radio c)Television d)Internet e)Mobile
2) Do you see any Advertisements of alcohol?
a)Regular b)Occasional c)Rare d)Not at all e) Don’t remember
3) Do you know about surrogate advertisements?
a) Yes b) No
4) Do you buy the surrogate products like soda; water etc. after seeing their Ads on the
media?
a)Never b)Occasionally c)Often d)Regularly
5) From the following alcoholic brand’s surrogate advertisement, u sees the most?(Tick one )
a)Bacardi b)Smirnoff c) Royal challenge d) King fisher e)Mc dowells
6) What made you to remember that product? (Tick one only)
a) Celebrities b) creativity c) voice d) wordings e) Logo
7) Do you think that advertisement of such product is required?
a) Yes b) No
The image
cannot be
displayed.
Your
computer
may not
The image
cannot be
displayed.
Your
computer
may not
The image
cannot be
displayed.
Your
computer
may not
The image
cannot be
displayed.
Your
computer
may not
74. School Of Management And Business Studies. Page 74
8) How will you evaluate such advertisements? (Tick one only)
a) Entertaining b) Boring c) Informative
d) Misguiding e) Disturbing
9) What is your opinion about such advertisement of product which has banned in India?
a) Strongly Disagree b) Disagree c) Neither Agree or disagree
d)Agree e)Strongly agree
10) Do you think that the Advertisements on the media will have any Impact on the sales of
surrogate products?
a)Definitely will not affect b)Probably will not affect c)Undecided
d) Probably will affect e) Definitely will affect
11) The television ad for “Bacardi” creates strong misleads with respect to surrogate
advertisements in India. Do you think so?
a) Definitely will not think b) Probably will not think c) Neutral
d) probably will think e) definitely will think
12) Do you recall the original product while looking at the surrogate ads?
a)Definitely b)Most probably c)Occasionally d)Not at all
e) Don’t remember
13) Does the ad induce you to try the original product?
a)Never b)Occasionally c)Sometimes d)Often e)Regularly
14) What you feel, whether liquor advertising and its marketing when compared to any
products is ethical in India …?
a) Strongly Disagree b) Disagree c) Neither Agree or disagree
d) Agree e) Strongly agree