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TITLE OF THE REPORT:

“THE STUDY OF ADVERTISING AGENCIES”

PREFACE

It is a matter of great honour for me to present before my humble readers this project based on the study of “Advertising Agencies”. The foregoing presentation is an honest and painstaking effort on my part in black and white about the colourful world of advertising agencies. The data collected by me is both primary as well as secondary. I have taken assistance from knowledgeable and apt taskmasters shouldering work f great responsibility in some of the reputed advertising agencies. However, with due respect to the urge of these agencies for maintaining secrecy about their operations and financial data ,I also had to resort to secondary sources for obtaining data like newspapers, magazines and the websites of these agencies. Although the information obtained from secondary sources may prima facie seem to be paralysed by window dressing, to be absolutely frank with my understanding readers, it has been discovered that this data is as reliable as the one I have obtained from the horse’s mouth for other agencies. Due to paucity of time and reluctance of certain internationally acclaimed advertising agencies in co-operating with me for this project due to some obvious reasons on their part ,I have been able to cover in this project a study of 6 agencies. But the foregoing pages will warrant my painstaking efforts and the extensive study undertaken by me for each of them. So, with due respect to my patient readers for the time they will spare for my project and with confidence flowing through my nerves that both the time and patience of my readers will not be tried and tested and but duly rewarded with the intensity of my efforts , I carry you gracefully into my world of advertising agencies……………

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ACKNOWLEDGEMENTS

  • I would like to sincerely thank the University of Mumbai for giving me this

opportunity of taking up such a challenging project which has enhanced my knowledge

about the Advertising Industry & the advertising agencies.

  • I am very grateful to Ms. Meghana Patil- Project Co-ordinator, under whose

guidance and assistance I was able to successfully complete my project. I am also thankful to Mr. Vikram Shrotri, Project Guide whose advise and thoughts helped me gain a better understanding of this huge advertising industry and the flambouyant, magnanimous world of advertising agencies.

Last but not the least, I also thank the below-mentioned honourable dignitaries and task-masters who have played a major role in leading their respective agencies to the sky of glory. This is a special thanks to them for sparing their precious time, fitting my out-of-the-way appoin”ent into their diary and giving almost all the information required by me in an unbelievably amicable manner.

Without the priceless contribution and coveted guidance of all the above- mentioned people, this project would have never got a shape of reality and emerged before all of you in the manner and in the style as it now appears.

Warm thanks to :

  • 1. Ms. Nandini Rajan, Account Executive of XEBEC COMMUNICATIONS PVT. LTD.

  • 2. Ms. Tanya Gulrajani of CARAT MEDIA SERVICES INDIA PVT. LTD.

  • 3. Mr. Suresh Kannan, Media Manager of CANCO ADVERTISING PVT. LTD.

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EXECUTIVE SUMMARY

1. OBJECTIVE :

To study the various advertising agencies; the ones having local operations as well as the ones have international scale of operations, their modus operandi, styles and the manner of functioning, their profiles, their upswing and their downfall and last but not the least their position in the world of advertising on the basis of the contributions to the ad world and society at large.

2. METHODOLOGY :

In order to achieve the above-mentioned objective and finish the study to perfection, I have made a judicious and a balanced use of primary sources as well as secondary sources of data collection. Well, the primary sources comprise of personal visits to the administrative offices of some known advertising agencies and a direct communication with the persons who were knowledgeable and in-charge of the operations.

To facilitate in my operations, I had first chalked out a detailed questionnaire covering in length all questions that would serve the purpose in the most efficient and productive way. The preparation and the formulation of the questionnaire was on the basis of many considerations viz., the time that the answeree would require to give me the required answers, the importance of that time and the cost involved. A copy of the said questionnaire is included elsewhere in this project as an Annexure.

Although the efforts were directed basically towards obtaining information required for the study from primary sources to the maximum possible extent, due to factors like lack of co-operation anticipated from stalwarts and internationally acclaimed agencies, considerations of these agencies over secrecy of data regarding their operations, lack of time for answering the questionnaire and unavailability of the persons-in-charge, I also had to resort to secondary sources like websites, magazines, newspapers etc.

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Bibliography of these sources forms a part of this Project for ready reference of the reader.

A sample of six agencies was chosen on the basis of their scale of operations, reputation and quick accessibility.

3. CONCLUSIONS :

During the course of this study I have observed many a facet of the advertising agencies ----- their strengths, their weaknesses, their opportunities and threats which deserve a mention :

 

Most of the advertising agencies are basically interested in catering to just the

needs of the consumer irrespective of the nature of the product or service proposed to be advertised. The primary objective of the agencies is basically profit generation and profit maximisation.

The agencies

conduct a SWOT of the client

but

not

of the product at the

time of

accepting an assignment. There is not much of a dynamism in this agencies as far as expansion plans are concerned, diversification objectives are involved or specialisation motives are in question.

Not much is done by these agencies for the social welfare and advertising of social values

The agencies are highly committed to their activities but sometimes they tend to be over-professional in their attitudes, over-reserved in the choice of strategies, over-

confidential in their operations and over-aggressive in

competition.

Not many agencies are laying too much emphasis on selection of proper

human

resources or managerial personnel. They appear over-burdened by objectives cost control.

of

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There is not proper training imparted to people working in the modestly positioned advertising agencies. Due to this, there is lack of specialisation, improvisation and dynamism.

4. RECOMMENDATIONS:

The following are recommended in view of the importance and the strategic position occupied by these agencies :

The advertising agencies should function in a healthily competitive environment rather than in an aggressive world of cut-throat

competition.

 

The agencies

should

definitely

give

importance

to

profit

maximisation but at

the same time function in public interest as

far as charges and quality of

products is concerned.

 

The agencies should also conduct a SWOT analysis of the products

to be advertised at the time of accepting assignments

alongwith the routine SWOT

analysis of the clients.

 

There should also be a provision for staff training whereby the

staff is properly in the organisation leading

motivated and educated for the roles they perform them to specialisation and perfection.

The advertising agencies should also have a perspective of tapping new avenues, creating mew markets and pursue global

expansion for the benefit of large.

themselves

and

for the country

at

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Table of Content

Sr.No

 

Topic

Page No

CH 1

   

11

CH 2

 

Research Methodology Introduction

14

CH 3

 

Profile

 
 

3.1

Introduction to Advertising Agencies

18

 

3.2

Functions of Advertising Agencies

18

 

3.3

Model Organization Structure

22

       

CH 4

 

ADVERTISING AGENCIES

 
 

1

XEBEC

 
 

1.1

The Whereabouts

23

 

1.2

Modus Operandi

23

 

1.3

The Canvas on which Xebec paints its product

24

 

1.4

How can I know about Xebec?

24

 

1.5

SWOT Analysis

25

 

1.6

Case Studies

27

 

1.7

Awards and Achievements

30

 

1.8

Who’s who in Xebec

31

 

1.9

Divisions of Xebec

31

 

1.10

List of Clients

33

 

2

CARAT

 
 

2.1

The Whereabouts

34

 

2.2

Modus Operandi

34

 

2.3

SWOT Analysis

35

 

2.4

List of clients

37

 

3

CANCO

 
 

3.1

The Whereabouts

38

 

3.2

Modus Operandi

38

 

3.3

SWOT Analysis

38

 

3.4

Canvas on which Canco paints its product

41

 

3.5

How can I know about Canco

41

 

3.6

Organization Structure

41

 

3.7

Facilities offered by Canco

42

 

3.8

Awards

42

 

4

MCCANN - ERICKSON

 
 

4.1

History

43

 

4.2

Who’s Who

43

 

4.3

Modus Operandi

45

 

4.4

SWOT Analysis

57

 

5

MUDRA

 
 

5.1

History

60

7

 

5.2

Pioneers in Advertising Agencies

61

 

5.3

Divisions

62

 

5.4

Founder

62

 

5.5

List of Awards

63

 

5.6

Major Clients

64

 

5.7

 

66

CH 5

 

Organization Structure SWOT Analysis of Advertising Agencies-Comparative

67

Study

CH 6

 

Statistics

 
 

6.1

Comparison between Gross Income of Top 25 Agencies

69

 

6.2

Growth of Advertising Agencies

70

 

6.3

Top 20 Advertising Agencies

72

 

6.4

Top 20 Advertising Spenders

73

 

6.5

Agencies Ranking

74

 

6.6

2001- Top Ten Multinational Advertisers

75

 

6.7

2001- Top Ten Advertising Agencies

75

 

6.8

Comparison of Agencies on the basis of Worldwide Gross

76

Income

 

6.9

Graph of Growth of Agencies

77

CH 7

   

78

CH 8

 

Suggestions and Recommendations Conclusion

80

CH9

 

Annexure

82

CH10

Bibliography and Webliography

84

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Topic 1. OBJECTIVE :

RESEARCH METHODOLOGY STUDY OF ADVERTISING AGENCIES

:

The project deals with the study of advertising agencies encompassing a multi- dimensional discussion on the whereabouts of these agencies, their modus operandi, their manner and coverage of operations, their strengths, weaknesses, opportunities available to them and the threats posing obstacles in their journey to the max. This study shows the diversity underlining their operations and at the same time the unity in aims, objectives and target. As during the preparation of this project, some inevitable obstacles and natural hindrances restricted the scope of this study just as these agencies are restricted by many environmental and socio-economic factors, nonetheless, its a sincerest attempt to do the best possible justice to the said topic.

  • 2. AGENCIES COVERED :

(1)

Xebec

(2)

Canco

(3)

McCann-Erickson

(4)

Carat

(5)

Percept

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(6)

Mudra

  • 3. FROM PLACES TO PAPER : The data required for this study as per my vision was collected from the following two types of sources :

(1)

Primary Sources

(2)

Secondary Sources

Primary Source of data collection was tapped in the following manner :

(1)

Personal visits :

This was given the topmost priority. Well, any information from the horse's mouth gives a touch of reality, practicability and conviction to every study and this aspect made it an area of key importance. I visited three agencies viz., Xebec, Carat and Canco, though I approached many others including the topnotch like Ogilvy & Mather, Mudra, Lowe. However to my utter disappoin”ent and ill-fate, I never succeeded in getting appoin”ents from the ones. In the agencies I visited, I contacted those taskmasters who were holding positions of no less importance and who had a thorough knowledge of the environment of their respective agencies, the operation, the style of working and the clientele. At the same time, I found these people quite enterprising, professional-to-the-core in their approaches, knowledgeable, speech-conscious and very co-operative. I basically got answers to all the questions that were put in the questionnaire in an unhesitating and amicable way.

(2) Sending questionnaires :

To those organisations that showed their firm unwillingness in attending to me personally, I sent my questionnaires through internet to the key personnel in an attempt to convince them into giving some information about the agencies for whom they toil. Some replied back courteously; either disclosing their helplessness in giving information or informing me to surf their websites and get all possible information to my u”ost satisfaction (an advertisement for advertisers).

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Secondary sources of data collection :

On account of the cold shoulder given to me by the media-giants and their contemporaries, I had to resort, as also advised by some of them, to secondary sources of information like newspapers, websites and books for supplementing the information obtained from primary sources and sometimes for the main information. Honestly, the information obtained from the websites was detailed and sufficient to an extent that would even surpass those of primary sources. In the ocean of the information that the websites contained for each agency, I had to fathom for the most precious gems which required crisp editing, preciseness and good scissor-work. Also newspapers like The Economic Times and its supplementary called Brand Equity did leave their imprints on the papers of the project to follow and their contribution to this presentation cannot undermined and unnoticed. Help was also taken from books based on advertising and marketing to give a better appeal to this study and enrich it with more detailing and liveliness.

4. RESULT

The cummulative result of primary sources of data collection and secondary sources is obvious from the pages that follow. However, I have been able to generate sufficient information and moreover, in detail from all the sources employed in an endeavour to leave no stone unturned in justifying the selection of this topic and advertising agencies, at large. Though marred by some obstacles, I am convinced that my painstaking efforts and drops of sweat that have made the papers intangibly wet and the ink of the pen go dry will convince my patrons carrying good doses of expectation from this project.

  • 5. DIFFICULTIES FACED :

  • 1. Stipulations and urge for strict adherence to the length of this project upto

a maximum of 80 pages forced me to run the merciless scissor on many points.

The pen was on but the papers were gone.

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2.

Lack of co-operation from the stalwarts and the internationally acclaimed

ad-giants has been the biggest obstacle in the way. Though, they are very much justified and I give due consideration to their urge for maintaining confidentiality about their operations and financials, I still believe that had this information, however explanatory it is, been obtained from them directly, it would have definitely made neighbours' envy and owner pride.

  • 3. Unavailability of concrete sources of secondary data was another

hindrance. Though websites form an exception, barring them there was hardly a source that carried some potential in meeting the requirements. Prestigious publications like A & M have faced shut doors of printing presses and a replacement is still hiding in some unknown corner of invisibility. In a nutshell, all these ingredients which have gone into the making of this recipe wait a verdict from the readers for their taste.

INTRODUCTION

The word that bridges the gap between “no more” to “know more”- Advertising………. and further between “know more” and “grow more”. Knowledge is power, they say and today the biggest weapon of power in anyone’s hands is that of advertising. Just as water is to a fish, advertising is to business; something without which the basic question of survival is bound to rise.

In this jungle of name and fame, where every creature confidently defies William Shakespeare when he says,” What’s there in a name” there is definitely everything attached to name and it’s this name which gives you fame……And what gives an identity it’s name? Well, the only golden word “Advertising” Definitely roses will not smell less sweet by any other name but businesses will undoubtedly go back to the coffers if the world forgets their names and to keep them alive in the minds of billions, you go for publicity.

Today everyone advertises – from crèches to crematorium ,from hotels to hospitals, from clubs to pubs,from marriage bureaus to lawyers…… well name it and you have it. Everyone needs recognition, from a 6 month baby in the cradle to a 60 year old preparing

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for a graveyard, from a beggar to a billionaire…… everyone wants you to recognize in a train or in a plane , irrespective of what you are. In the yesteryears , everything was considered fair in love & war and advertising . It does not mind if you have to pull someone down, important is that you should rise.

And who helps you to project yourself in the public, who brings you from the greenlight to the limelight, who brings you from the darkness of ignorance to the light of recognition? Obviously, the advertising gurus seated comfortably in their mind-blowing offices

These Advertising Agencies may be raking in big “moollahs” but no one can question their contribution in enabling the business to burn their “choolahs” .Today there are the movie moghuls and cricketing badshahs dancing on their fingertips, models and celebrities weaving their irresistible web of magic around people like us. Well, necessity is the mother of invention and our necessities have opened the doors of prosperity for these agencies.

Be it a product or be it a service, they have the magic formulae for everything and mind you, these formulae really work on our minds as is clear from our very own experiences. And sometimes their roles really makes a layman wonder as to what would have happen to those hundreds of unsung brands appearing as faces in the crowd on some rack or shelves of a huge supermarket or a not-so-popular stores if these agencies would have never risen from the sands of time.

Today, the exposure of every individual to advertisements and advertising has increased manifolds than what it was in the past. Kudos to these agencies ; at least they have turned out to be major trend-setters and torch-bearers for people like us showing us the way to the magnanimous world of sophisticated products & services. However unethical and materialistic these agencies may be, at times in a bid to grab the lion’s share of the buyers’ market, it is doubtlessly certain that without these agencies we would have never

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come out from the age of transistors to reach the modern age of home theatres. Well, every cloud has a silver lining to it.

Who can forget the extent and the manner in which Reliance Infocomm marketed its Wireless in Local Loop (WLL) Technology on the onset of the launch of its mobile service. Irrespective of the post-use catastrophes, the impact of solid marketing & publicity on the minds of an ordinary laymen for whom having a mobile in hand was nothing less than wearing a gold ring in the ring finger is reflected in the way such a person is today using a cell phone. The hype was created by the agencies like Xebec Communications who advertised the product of one of the Fortune 500 Companies of India and the hysteria still continues.

Today, may products like chocolates and butter come to be identified by their brand names like “CADBURYS” & “AMUL”. On the other hand, many others are identified by their slogans, catchlines & punchlines devised by the advertising wizards like “BLACKMAGIC MOTION PICTURES” for their clients’ products like “Hamara Bajaj (Bajaj Auto)”, “Utterly Butterly delicious Amul (Amul)”, “A gift for someone you love(Cadburys’)”, “Yeh Dil Maange More (Pepsico)” , “Taste the Thunder (Thums-Up)” etc. Before we go ahead with the discussions about the advertising agencies & the brains

behind them, it’s pertinent to bring to limelight the benefits which we, as a society, are deriving from these agencies and the not-so acceptable traits.

PRESENTING ...

The pros… (1) Creating awareness :

Due to the increasing role of the advertising agencies and so-called dominion over our minds, today the level of consumer awareness could be well adjudged from

the fact that even a toddler identifies in the spur of the moment an ad of Cadburys’ chocolates or Amul Butter been run on the screen of the idiot-box ornamenting our spacious drawing rooms.

(2)

Enabling wider choice and access to products :

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So many products and so many ads for each of them…leaves the poor customer gasping for some free space. Well, with the bombardment of so many commercials, universal hoardings, from advertisements stuck on the walls of the building compounds to those stuck on the walls of the railway compar”ents, the

customer has multitude options and ample of choices to really get “ better than the best”. Well, people are after all paying handsomely for their requirements and they deserve choices and options. But, it all owes to these agencies who have spread out before us 10 different types of toothpastes for making out teeth the whitest and the hardest, 100s of moisturizers for giving the best glow to our skin an all sorts of luxuries which have become more necessary than the necessities.

(3)

Uplif”ent of standard of living :

Well, its said that “Money makes a mare go”. Today, this not be any more

emphasized as everyone knows that depending on the financial background, people can get the best of everything. From a cycle to a car, or from a dhaba to a restaurant, the customer knows where he is the most comfortable and is able- bodied to plan out his budget as he knows the price tags stuck on every product and service. And all this, is possible because of the constant exposure to media and publicity.

(4)

Necessary for the growth of the businesses :

From the Ambanis to the paanwalla, from the Bachchans to the street-actors, every soul is convinced of the power of these agencies in giving them a larger than life size image. Every business house, big or small, though cutting the cloth

according to the size of its coat, needs the services of these agencies to project its brand image before the laymen and convert these laymen into prospective and from prospective to loyal customers for their products and services. Revenue generation is the prime objective behind every business and to rotate the wheel of success, its important for them to use the services of these think-tanks and always remain on the topmost rank. The cons .....

(1)

A cold shoulder to social responsibilities :

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The advertising agencies today are not performing to the non-material welfare of the society. Their commit”ents and obligations to the society are mani-fold. Being the torch-bearers of the world of publicity and media, they are on a huge platform from where they can spread messages of public interest in every nook and corner of the country. Alongwith their professional assignments for profit maximisation, they can also design propagandas for conveying important social messages like

harmfulness of smoking and drinking liquor, abolishing evil practices and dogmas deeply rooted in the blood of the rural illiterate, importance of a nuclear and small family etc. Accepting these assignments for a social cause will not create a dent in their pockets but will surely go a long way in revolutionising thoughts, attitudes and mindset of every Indian.

(2)

No SWOT of products advertised conducted :

All the advertising agencies are conducting a SWOT analysis of the prospective clients that approach them with a product or service meant to be advertised but no one is bothered about a scrutiny of the products to be so advertised. It is not their business, perhaps it is anti-business; that's the feel and the flavour.

PROFILE ADVERTISING AGENCY

ADVERTISING

The American Marketing Association, defined advertising as “any paid form of non- personal presentations of idea, goods or service by an identified sponsor.”In other words we can say that Advertising is brand building through effective communication

INTRODUCTION TO ADVERTISING AGENCY

The global market has expanded manifold in the last few decades. More and more products are being launched practically everyday. The companies are engaged in cutthroat competition to highlight their products to the forefront. Herein enters the glamorous field of advertising. Advertising is actually brand building through effective communication and is essentially a service industry. This requires the help of the media

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to reach more and more people to communicate brand effectiveness and here advertising agencies comes picture.

The role of advertising agency has been accepted because it provides specialist services to the companies, which have inadequate services of experts for the promotion of their goods and services. Many institutions have established the services of advertising agencies to make their products and services known to the potential consumers.

FUNCTIONS OF ADVERTISING AGENCY:

The advertising agency performs all the managerial functions. Some of these are planning, creation and execution, co-ordination, accounting, media, research and internal control. Planning : The advertising agency plans the advertising campaign. The management delegates the responsibility of advertising planning and execution to the agency. The agency must have a fair knowledge of the firm’s products, its history, the present market conditions, distribution methods, price level and other conditions. A successful advertising programme is built on the basis of these data. Creation and Execution : Specific advertisements are created. The advertising copy is written; the layout is prepared; illustrations are drawn; photographs are finalized; and a correct mechanical form for running it in the selected media is produced. The advertising agency prepares a suitable advertising copy for insertion in all the media. Co-Ordination : The advertising agency co-ordinates several activities. It often works with the client’s sales force and distribution network to ensure the long-run success of the advertising programme. The combined efforts of sales persons, distributors and retailers ensure maximum sales. Ideas, media, copy and decisions are co-ordinated properly to project and implement the advertising programme. Accounting : The advertising agency maintains proper accounts in co-operation with the client. The account executives see to it that the agency keeps to the stated plan. The accountant is in charge of the administration of the advertising programme on the agency side. A misunderstanding arising between the agency and the client is eliminated by the accountant. The amount of fees received from

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the client and the payment of taxes, bills and other charges are accounted for by

the accountant. Media : The advertising agency selects the media or a set of suitable media for the

client to reach the right type of audience which is an important factor in media selection. The rates, circulation, population, audience, income and other important information are collected for the purpose. It has to see to that the media plan is carried out properly which is devised to implement the campaign’s communication objectives. The media experts know all about the media and their coverage. They prepare the schedule of advertising, publication, data on printing and the time available from television and radio. Research : Research is a key function in an advertising campaign. The decisions on creativity and media selection are taken on the findings uncovered for research. Research makes every decision systematic and logical, based as it is on facts and figures.

Internal Control : The advertising agency manages its employees, finances and other resources effectively and economically. It conducts the business behind the scenes and exercises proper control over activities and funds. Public relations, sales promotion functions and client contacts are maintained by the management for the effective operations of the advertising agency.

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CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF
CLIENT BRIEF
EXTERNAL
ENTERS THE AD AGENCY
INTERNAL
CREATIVE BRIEF
MEDIA BRIEF
CREATION STAGE
CREATION
STAGE
CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS

CREATIVE PROCESS

CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS
COPYWRITING
COPYWRITING
CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS
ILLUSTRATING
ILLUSTRATING
CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS
LAYOUTS
LAYOUTS
CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS

CLIENT APPROVAL

PRODUCTION STAGE PRINT TYPOGRAPHY ENGRAVING
PRODUCTION
STAGE
PRINT
TYPOGRAPHY
ENGRAVING
CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS
CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS

PRINT AD

PRINT AD PRINT MEDIA

PRINT MEDIA

CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS
BROADCAST
BROADCAST

FILMING

 
EDITING
EDITING
CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS
COMMERCIAL
COMMERCIAL
CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS

BROADCAST MEDIA

CLIENT BRIEF EXTERNAL ENTERS THE AD AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF CREATION STAGE CREATIVE PROCESS

AD REACHES THE TARGET AUDIENCE

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TYPICAL ADVERTISING AGENCY STRUCTURE

Chairman & Managing Director (Chief Executive Officer) Finance Management Administration Accounts Client service Media Director Creative
Chairman & Managing
Director
(Chief Executive Officer)
Finance
Management
Administration
Accounts
Client service
Media Director
Creative Director
Director
Studio Films
Print &
Media
Production
Associate Creative
Controllers
Directors
Group Account
Manager
Media Supervisors
Creative Group Heads
Account Supervisor
Media
Media
Planners
Buyers
Copywriters
Art Directors
Account Executives
Media
Media

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ADVERTISING AGENCY # 1

X

E

B

E

C

THE WHEREABOUTS HEAD OFFICE :

20, Santosh Heights,

  • 1 st Floor, 39/4, J.N. Marg, Opp. Apsara Theatre,

Pune – 411 037.

BRANCH OFFICE :

Jain Chambers, 1 st Floor, Next to Saga Shopping Centre, S.V. Road, Bandra (West), Mumbai – 400 050.

Incorporated in the year 1991, this rapidly-growing “FULL SERVICE” Agency located at the above-mentioned places has today achieved for itself a decent position in the jampacked arena of the biggies and is continuing its progressive march. It is solely indigenous with no foreign collaboration or foreign equity participation ; something really very praiseworthy.

MODUS OPERANDI :

Being a truly professional & competitive in approach, Xebec Communications has a well-defined and a well-organised method of operations. When the prospective client approaches them for getting his purpose served, they conduct a SWOT analysis prior to acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome and patience-testing exercise for the client, it is designed in such a way that the agency gets a total assurance of the output. The agency first understands the requirements of its customer and gets a complete profile about the product or the service to be advertised from the horse’s mouth. Further, it

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makes a complete assessment of such a product or service, based on the representations and the explanations given by its client in terms of the life of the product, its marketability and its commercial value. Continuing on these lines, the agency also makes an assessment of the requirements of the client, their budget, cost constraints etc. Finally, last but not the least, the agency makes an estimate of the benefits, both monetary as well as non-monetary which it is subsequently in the long run, going to derive out of every such assignment. On the basis of such a study made about the product, its target audience and the psycho- analysis of the creator as well as its creation, the agency then selects the type of media which is the most appropriate one in terms of the cost constraints laid down by the client and accordingly intimate the client about the cost-benefit ratio of the entire exercise. So, it’s a thorough professional approach wherein the client is rest assured about the benefits he is going to reap from the seeds he is planning to sow in the field of advertisement. Ultimately, its not a no-win no-lose situation for both of them but is entirely a winners’ outcome.

THE CANVAS ON WHICH XEBEC PAINTS THE PRODUCT :

Xebec provides its customers with a wide-range of media to select from viz., in fine print, or on celluloid like television, radio, theatres etc.

HOW CAN I KNOW ABOUT XEBEC :

Well, being professional and competitive in approach, it is Xebec who approaches its prospective clients and not wait for the the clients to fathom for it. So, the client does not have to run in sun and shower for finding a proper canvas for its product. Xebec provides all the facilites for its client coupled with a very co-operative in-house, interactive response and hospitality. As far as a payment term is concerned, Xebec also takes care of the pocket-size of its customers. So on one hand, it gives you the option to pay the entire fees in lumpsum, on the other hand it also extends credit to its continuous and creditworthy customers.

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STRENGTHS :

The agency first understands the requirements of its customer and gets a complete profile about the product or the service to be advertised from the horse’s mouth. Further, it makes a complete assessment of such a product or service, based on the representations and the explanations given by its client in terms of the life of the product, its marketability and its commercial value. Continuing on these lines, the agency also makes an assessment of the requirements of the client, their budget, cost constraints etc. Finally, last but not the least, the agency makes an estimate of the benefits, both monetary as well as non-monetary which it is subsequently in the long run, going to derive out of every such assignment.

On the basis of such a study made about the product, its target audience and the psycho-analysis of the creator as well as its creation, the agency then selects the type of media which is the most appropriate one in terms of the cost constraints laid down by the client and accordingly intimate the client about the cost-benefit ratio of the entire exercise. So, it’s a thorough professional approach wherein the client is rest assured about the benefits he is going to reap from the seeds he is planning to sow in the field of advertisement. Ultimately, its not a no-win no-lose situation for both of them but is entirely a winners’ outcome.

WEAKNESSES :

Xebec is facing a major problem of Time Management i.e. it is over-dependent on its staff. Hence, the quality and the efficiency of its human resources always causes some sort of a problem in making and implementing fast decisions. Again, multiplicity of brains, though an asset for any organization is also sometimes a hindrance in its development when the agency is not able to reach to a definite conclusion about its strategies and policies in the nick of the time due to conflicting ideas presented by its too many decision-makers. As it is aptly quoted, “Too many cooks spoil the broth”

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Secondly, as far as client servicing is concerned, Xebec does not make adequate attempts to update its services. This is the main reason why this organization though reputed, is not able to expand its paraphernalia. Lack of creativity is also a major backdrop in its success story.

Next, Xebec has also failed to make any renowned celebrity from the fields of cinema, sports, politics or business as its brand ambassador as other reputed agencies in this world are in a practice of doing. Hence, the agency fails to create a long-lasting and huge appeal for the products of its clients amongst the masses.

As far as the profiles of the team members of Xebec are concerned, the people in the topmost levels of organizational hierarchy who are mainly shouldering the responsibility of devising strategies, policies, media plans, client servicing, account planning, market recognition and strategic decision-making are not from the fields of management or advertising. Though, they may be well-groomed for excellence in the environment in which they are functioning, there is always an undisputed difference between those able-bodied people who are from the field of management and those who are not. And finally, in this field of cut-throat competition where agencies rise and fall like a pack of cards day in and out, you definitely need professionals and professionalism in your approach at the time of decision-making and implementation of ideas.

OPPORTUNITIES :

There is a tremendous scope for diversifying its paraphernalia as currently Xebec is

just specializing in one particular media.

Secondly, by recruiting and taking more benefits from services of professionals in this field, Xebec can overcome its problems of Time Management and slow decision- making. Instead of having too many heads with different contents in them, it can always go for quality staff.

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Xebec can also concentrate on making some of the eminent personalities as its Brand Ambassador, which it has already started as is evident from its forthcoming contract with a cricket star named Salil Ankola. If it continues to do so on these lines it can lead to more aggressive response for its clients’ products and services.

THREATS :

Xebec also does not make a SWOT analysis of its clients at the time of taking an assignment. This also exposes it to a major threat of losing its own ground in its field as not many of its clients are too reputed, well-organised and aware of their requirements.

Another major threat to the growth and development of Xebec is its over-dependence on Print Media. That is to say, Xebec has not taken too many efforts of diversification and growth into other media. It is quite understandable that in today’s world to remain sellable in the market you have to keep on diversifying yourself into other fields which this agency is not very much keen in today, there is a definite threat on its future existence. Survival is first, growth afterwards and just trying to be a master in one amidst a crowd of experts who are Jack of all trades is not at all a good sign for any organization.

CASE STUDIES

  • 1. KIMBERLY CLARK

  • 1.1 Brief

Associate Kimberly Clark with personal hygiene by a campaign encouraging people to adopt health habits and educate offices and hotels about the importance of giving their employees and guests access to hygiene products.

  • 1.2 Execution

A Poster Campaign placed in and around washrooms (where Kimberly Clark's products are most used)reminding people about the importance of personal hygiene with a byline by Kimberly Clark.

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1.3

Result

A direct association between Kimberly Clark and personal hygiene and increased usage of Kimberly Clark products and supplies.

2.1 Brief

2. KINETIC

Relaunch Kinetic Honda Marvel and build on Kinetic's reputation as an all family 2 wheeler maker. Create a new buzz around the Marvel as an exciting bike.

  • 2.2 Execution

A series of concurrent road-shows and test rides all over India handled by our events division with live performances by India's most exciting and talented performer - REMO - to stir up the excitement.

  • 2.3 Result

Excitement about Marvel and renewed interest in the scooter and Kinetic.

3. THYSSENKRUPP

  • 3.1 Brief

To occupy mindspace as a core infrastructure sector/industry player.

  • 3.2 Execution

A creative campaign in Indian and foreign magazines and journals closely targeted at industrial decision makers.

  • 3.3 Result

Increased awareness of ThyssenKrupp activities and brand recall as a hi-tech German company. ThyssenKrupp continues to be a valued client.

  • 4.1 Brief

4. INDIACOM

Build the INDIACOM brand as a most easily accessible and widely disseminated yellow pages directory.

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4.2

Execution

Strategic press spots and hoardings timed with the beginning and end of the bookings period designed to drive demand for ads and insertions and increase awareness of the INDIACOM edge.

  • 4.3 Result

More recall for the INDIACOM brand as the most easily accessible and widely disseminated yellow pages directory resulting in more placements in their directory.

  • 5. LIPI DATA SYSTEMS

  • 5.1 Brief

Position LIPI as a total data solutions company with a wide range of high quality print solutions for small businesses and corporates

  • 5.2 Execution

A creative campaign focusing on the flexibility of LIPI printing solutions.

  • 5.3 Result

Increased awareness about the LIPI brand name as a provider of superior printing solutions.

6. INTELLIGENT INVESTOR

  • 6.1 Brief

Raise Intelligent Investor's profile through high powered personal finance exhibitions in the metros.

  • 6.2 Execution

A series of full page ads in outlook and Intelligent Investor designed to engage the readers attention by trumpeting the sheer volume of financial services and free advice on offer.

  • 6.3 Result

A tremendous response to the personal finance exhibitions leading to increased awareness about Intelligent Investor and an increase in its brand equity.

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7. CENTURION BANK

7.1 Brief

Establish Centurion Bank as a one stop shop for all banking needs with superior

banking services for small customers.

  • 7.2 Execution

The target audience was identified as the small customer who was perhaps not getting the best service in big banks. The creatives were designed to inform him about Centurion Bank's thrust towards them.

  • 7.3 Result

More new accounts for Centurion Bank with its brand firmly established among the smaller customers.

  • 8.1 Brief

8. DISHNET DSL

Leverage Dishnet strengths as the only DSL high speed ISP provider in the country. Target soho and heavy net users promoting the benefits of high speed access.

  • 8.2 Execution

A creative campaign bringing out the cost and speed advantages of broadband.

  • 8.3 Result

Increased interest and awareness about broadband Internet access, establishing Dishnet DSL as the pioneer in broadband technology and generating inquiries and sales.

AWARDS & ACHIEVEMENTS :

Best Radio Jingle

[A refreshing jingle for Electronica Leasing & Finance Ltd’s Fixed Deposit Schemes]

CEAD - Best Radio Jingle

[An innovative jingle for Kinetic Spark which was set in a folk tune]

Trade Fair/Exhibition Design

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[First prize for Kinetic Honda stall at Auto Expo ‘98]

[First prize for “Impressive Stall & Innovative Displays” at TECHEX-6 at World Trade Centre, Mumbai, November ‘98]

WHO’S WHO IN XEBEC ?

People make all the difference, nurturing talent and allowing space for

independent thought and initiative are our hallmarks which explains the low attrition rates.

Key people behind the success of Xebec are -

Kiran Bhat - Chief Executive

Anil Bhat - Executive Director

Vincent Sebastian - Branch Manager

Radhika Akolkar - Account Director

Samir Wagh - Manager (Media & Events)

Sandeep Ghodke - Art Director

Anil Rane - Asst. Art Director

Abhay Bengeri - Branch Director

Praveen Meloth - Sr. Account Executive

Bhavana - Sr. Account Executive

DIVISIONS OF XEBEC M.A.R.S.

Our in house Research division - an independent profit centre - allows clients to identify customer preferences, trends, deliver a more focused message and track customer response. M.A.R.S. delivers professional research services within the Xebec umbrella. M.A.R.S. Services:

Qualitative and Quantitative Research

...

Dipstick Studies

and Post Launch Surveys / Studies

...

Feasibility

Reports

...

Focus Groups

Pre

... Customer Satisfaction

...

Surveys

...

Dealer Audits

...

STELLAR - P.R.

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In today's fast paced media driven world with shrinking attention spans, PR is an important vehicle to increase mindspace and mindshare. Stellar is a Xebec group company run by experienced PR professionals with strong contacts in press and TV for national coverage.

CUSTOMER CONNECT C2 is Xebec CRM arm with specialized Direct Marketing and Customer Response skills.

LIST OF CLIENTS

ADVERTISING AGENCY # 2

THE WHEREABOUTS

HEAD OFFICE :

C

A

R

A

T

CARAT MEDIA SERVICES INDIA PRIVATE LIMITED Barodawala Mansion, 81, Dr. Annie Besant Road, Worli, Mumbai 400 018 India. Email : pat@carat-india.com Website : www.carat-india.com

CEO: Sulina Menon Email : sulina@carat-india.com Carat India - New Delhi Address : E82A, Greater Kailash Part-1, New Delhi, Pin-110048, India Tel No : (91) 11 629 4112 Fax No : (91) 11 629 3680 Email : carat@ndb.vsnl.net.in

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Website: www.carat-india.com Website: www.carat-asiapacific.com Carat is operated by AEGIS MEDIA which operates alongwith Carat 2 other reputed worldwide organizations viz., Vizeum & Postersope Worldwide.

MODUS OPERANDI :

Being a truly professional & competitive in approach, “CARAT ” has a well-defined and a well-organised method of operations. When the prospective client approaches them for getting his purpose served, they conduct a SWOT analysis prior to acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome and patience- testing exercise for the client, it is designed in such a way that the agency gets a total assurance of the output.

SWOT ANALYSIS OF CARAT :

STRENGTHS

  • 1. Carat has a very educated and well-groomed set of clientele. They know that the ability to understand and exploit the opportunities of the evolving media market is key to their future success. Media communication, and assessing its short, medium and long-term effect, is becoming central to every business.

  • 2. Carat’s aim is to deliver business advantage for its clients through effective communication programmes that maximize return on inves”ent. This means partnering with its clients to produce sustainable improved sales by building brand loyalty, value and awareness. They combine insights into brand, media and consumer behavior to spark innovative media solutions that are unique to every brand. The Carat approach to communication planning gets results.

  • 3. The marketing strategy of Carat is defined as a “360° communication”. This means exploiting the whole range of media channels available to a brand which is fundamental to building effective communication strategies. As messages reach consumers in new and different ways, they can refresh and renew a relationship, create excitement and loyalty, even advocacy for a product. The task is to build a programme which engages consumers with the brand and reveals the inherent

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values in a product or service that cause consumers to say "That's for me". In a nutshell, this type of a strategy helps in building a brand loyalty and the customer starts relating himself with it.

  • 4. Carat’s clients are very much impressed with its ability to work as an international team. The breadth of their service and their strong coherent network give Carat the scope to truly partner international advertisers who are winning the race for global media effectiveness. 5. Every brand, market and competitive situation requires a unique solution. Carat has a rigorous and proven framework to develop innovative and creative media solutions throughout its network. Its approach extends across all media - 360° communication. It works with a suite of sophisticated analysis tools and research, helping it to understand consumers and to design media campaigns that deliver measurable improvements in its clients' business. 5. Incisive management of media delivers business advantage to Carat’s clients. Carat has invested over US$30 million on research and tools to manage and measure media effectiveness, across traditional and online media channels.

  • 6. Consumers' relationships with brands and product sectors need to be linked to their relationships with media and attitudes to advertising. Analysis using tools such as Charisma and Ad-itudes helps Carat’s clients reach their core targets more effectively and develop strategies to attract new customers.

WEAKNESSES

  • 1. The major weakness of Carat is diversification. Carat has grown, flourished and made a tremendous progress in the field of electronic media only. However, for a long-term and sustained growth and development it is the need of an hour for every agency to stretch its arms and reach out for the world through all possible avenues.

  • 2. Carat does not have a broad clientele base which means that it does not enjoy a very diversified brand loyalty.

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OPPORTUNITIES

  • 1. Carat has tremendous growth and diversification opportunities in the field of advertising specially because of its skilled labour force and dynamic vision.

  • 2. Carat has international tie-ups which means that there is ample of scope for it to diversify its operations and tap the market worldwide.

THREATS

  • 1. Carat is specializing only in electronic media. This overdependence on one media only is definitely fatal for future growth and sustained development. Today, there are many new entrants in the market and these agencies are making progress by heaps and bounds in all types of media. Carat needs to tap other media also to emerge as a genuine world leader.

  • 2. Being a multinational agency, it is extremely difficult for small customers to approach this agency for their requirement. Carat should also concentrate more on Indian market which has a very large base of clientele. Firms worldwide have also established themselves firmly in the Indian Market which if Carat cannot do or does not do will hamper its growth and development process.

CLIENTS

Adidas

Diageo

EMI Group

Ferrero International

Fiat

Henkel

Kellogg

Kraft Jacobs

Suchard

LVMH

Mannesmann-

Vodafone

Merloni

Beiersdorf

Bertelsmann

BMW

Cable & Wireless

Carrefour

Coca-Cola

Club Med

Danone Group

Nissan

Pernod Ricard

Pfizer

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Philips

Renault

Sara Lee

SCA

SmithKline

Beecham

Telefonica

Walt Disney

ADVERTISING AGENCY # 3

THE WHEREABOUTS HEAD OFFICE :

C

A

N

C

O

518, Tulsiani Chambers, Nariman Point, Mumbai – 400 021.

Incorporated in the year 1985-86, this rapidly-growing “FULL SERVICE” Agency located at the above-mentioned place alongwith branches at Bangalore, Chennai & Delhi, has today achieved for itself a decent position in the jampacked arena of the biggies and is continuing its progressive march. It is solely indigenous with no foreign collaboration or foreign equity participation ; something really very praiseworthy.

MODUS OPERANDI :

Being a truly professional & competitive in approach, “Canco Advertising Pvt. Ltd.” has a well-defined and a well-organised method of operations. When the prospective client approaches them for getting his purpose served, they conduct a SWOT analysis prior to acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome and patience-testing exercise for the client, it is designed in such a way that the agency gets a total assurance of the output.

SWOT ANALYSIS OF CANCO :

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STRENGTHS

  • 1. Canco is a full-service agency providing all types of services related to the field of advertising & marketing to its clients.

  • 2. It conducts a SWOT Analysis of its clientele to assess their strengths and weaknesses. It also first understands the requirements of the client, their knowledge about the field of advertising, the characteristics of the products and services to be advertised by its client, the type of target market and the cost constraints under which its client is functioning. This overall study about the client and its products helps Canco to devise and develop a proper marketing and advertising plan for its client which can optimize client’s returns in the restrictive environment in which it functions.

  • 3. As far as offering facilities to clients are concerned, amongst others, Canco also provides its client the facility to make payments of its fees in installments which goes a long way in helping the client overcome its financial hurdles, if at all posed on him. This is a major breakthrough in client servicing and definitely is a major weapon in anyone’s hands to have a stable and a loyal base of clientele.

  • 4. The top level of organizational structure in Canco consists of people who are professionals having the academic qualifications which are must in this field. Understandably, on this account there is bound to be professionalism in the approach, attitude and decisions made by the agency for its growth and development.

  • 5. Canco offers its customers a wide selection amongst the media for canvassing their product or services. It advertises in newspapers, uses electronic media and also provides the facility of online advertising. As the choices are more for the customers, depending on their requirements, the characteristics of their products and their cost constraints, it helps them in selecting the proper medium for advertising their product or service.

WEAKNESSES

  • 1. The biggest weakness of Canco is its organizational structure. The organizational structure is such that people who are at the top most level in the hierarchy and

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who are professionals in this field are few whereas the line staff is quite much. This may lead to centralization of decision-making and an obvious influence of one or two people in policy decisions. Centralization of decision-making and authority being given to only few can prove to be disastrous for the growth of the organization.

  • 2. It does not have a very broad base clientele. The list includes just a few major names like HDFC. This means that the agency does not enjoy the patronage of many of the big names and is dependent on the patronage of privileged few.

  • 3. CANCO has not hired any of the eminent celebrities for endorsing the products and services of its clients. This is why the appeal created for the products and services of its clients does not reach to a large group of masses.

  • 4. In this world of cut-throat competition where it is important for every agency to have some sort of transparency which will make popular its strategies, achievements, client patronage, diversification in services offered, CANCO has not made any effort to bring itself in the limelight. With no URL and no other self-advertisement, it still lingers in some dark corner of isolation.

OPPORTUNITIES

  • 1. With professionals at the decision-making level, CANCO has an opportunity to expand its operations and diversify itself into new avenues if it makes a concentrated effort on improvising the strength of professional staff.

  • 2. Making use of the brand image of some celebrities for endorsing the products of its clients can give it an upper hand and help in having more reputed customers into its kitty.

  • 3. It can project its achievements before the public and through the medium of website can lend more transparency to its operations. On these lines, this agency is working presently and a website is in the development stage.

THREATS

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  • 1. CANCO, though making use of print and electronic media for advertising products of its clients is a Jack of all trades, master on none. Specialisation is required in at least one sphere for expansion and further diversification.

  • 2. The strength of the staff and the quality of human resource is also a major hindrance it is growth and development. When decision-making is centralized and that too based on few brains, there is bound to be lack of impulsiveness, aggression, timeliness and dynamism.

  • 3. CANCO is suffering a big threat from other agencies operating in the same set of environmental conditions who are constantly offering more and more services to their customers and diversifying themselves day in, day out.

THE CANVAS ON WHICH CANCO PAINTS THE PRODUCT :

CANCO provides its customers with a wide-range of media to select from viz., in fine print, or online through the medium of internet, external advertising like hoardings, pamphlets etc.

HOW CAN I KNOW ABOUT CANCO?

Well, being professional and competitive in approach, it is CANCO who approaches its prospective clients and not wait for the the clients to fathom for it. So, the client does not have to run in sun and shower for finding a proper canvas for its product. CANCO provides all the facilities for its client coupled with a very co-operative in- house, interactive response and hospitality. As far as payment terms is concerned, CANCO also takes care of the pocket-size of its customers. So on one hand, it gives you the option to pay the entire fees in lumpsum, on the other hand it also extends credit to its continuous and creditworthy customers.

ORGANISATION STRUCTURE OF CANCO

ORGANISATION STRUCTURE

1. CANCO, though making use of print and electronic media for advertising products of its clients

Mr. Ramesh Narayan, (Managing Director)

1. CANCO, though making use of print and electronic media for advertising products of its clients
1. CANCO, though making use of print and electronic media for advertising products of its clients

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Creative Director

Copywriters

(1)

Mr. Dhananjay

Neelam

(2) Mr. Arun

Total Staff Strength

:

24

FACILITIES OFFERED BY CANCO TO ITS CUSTOMERS :

CANCO fixes the budget for its client depending on the requirements of the client, the characteristics of the product to be advertised, the target customers, the marketing strategy, the aggressiveness or otherwise of the advertising campaign, the type of customers to be targeted, the cost constraints of the environment in which the client is functioning etc. Based on this study, the budget is given by the agency to its client.

AWARDS WON BY CANCO

  • a. Given by Alert India, Non-Government Organization (NGO) which creates awareness for leprosy .

  • b. Given by Advertising Club, Mumbai

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ADVERTISING AGENCY # 4

M c C

A

N

N

-

E R I C K S O N

HISTORY

McCann-Erickson WorldGroup was chartered in 1997 as a new model for integrated marketing communications. The WorldGroup was created by uniting best-in-class marketing communications firms in a range of disciplines behind a common mission and vision.

In only a few years, McCann-Erickson WorldGroup has emerged as one of the world's leading integrated brand communications organizations--in global size, in professional quality, and in the number of clients we serve with multiple-communications services. Each WorldGroup agency retains the best of its distinctive heritage. Most notably, McCann-Erickson, is currently celebrating its 100th anniversary, representing a century of innovation and excellence in advertising and communications The rich histories of the member agencies of World Group provide the foundation for the WorldGroup's unparalleled expertise and their unique shared culture. In its brief history, the WorldGroup has cultivated a common culture across its global network, based on shared strategic tools and a shared vision for effective marketing communications.

WHO’S WHO :

John J. Dooner

CHAIRMAN, CHIEF EXECUTIVE OFFICER McCANN- ERICKSON WORLDGROUP

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Arther D’Angello

CHIEF FINANCIAL OFFICER McCANN-ERICKSON WORLDGROUP

Eric Einhorn

EXE. VICE PRESIDENT, CHIEF STRATEGY OFFICER MCCANN-ERICKSON WORLDGROUP

Max Gosling

President, CEO Representative Director McCann-Erickson Japan

Peter Hamilton

REGIONAL DIRECTOR MCCANN-ERICKSON ASIA PACIFIC

Robin Kent

CHAIRMAN AND CEO UNIVERSAL MCCANN

Bill Kolb

PRESIDENT AND CHIEF OPERATING OFFICER MOMENTUM WORLDWIDE

Ben Langdon

REGIONAL DIRECTOR, McCANN-ERICKSON EUROPE, MIDDLE EAST & AFRICA

Pamela Maphis

CHIEF EXECUTIVE OFFICER

Larrick

MRM PARTNERS WORLDWIDE

Marcio M.

VICE CHAIRMAN, CHIEF CREATIVE OFFICER

Moreira

WORLDWIDE DIRECTOR OF MULTINATIONAL ACCOUNTS MCCANN-ERICKSON WORLDGROUP

Jens Olesen

REGIONAL DIRECTOR LATIN AMERICA/CARIBBEAN MCCANN-ERICKSON WORLDWIDE

Dr. Joseph

EXECUTIVE VICE PRESIDENT

Plummer

DIRECTOR OF RESEARCH & INSIGHT DEVELOPMENT MCCANN-ERICKSON WORLDGROUP

Stan Rapp

CHAIRMAN EMERITUS MRM PARTNERS WORLDWIDE

Joe Torre

CHAIRMAN AND CEO TORRE LAZUR MCCANN HEALTHCARE WORLDWIDE

Chris Weil

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

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MOMENTUM WORLDWIDE

MODUS OPERANDI OF McCANN-ERICKSON TOOLS

McCann-Erickson WorldGroup's unique and proprietary shared tools help unite different marketing communications disciplines. They unite professionals in different offices around the world. They provide a common "language" for diverse teams working together for common clients. Our tools also set us apart. They are disciplined yet flexible. They combine our best practices with our cutting-edge thinking. We have specialized tools in various disciplines, but the centerpiece is the holistic Brand Optimization Map™. Building off of the foundation of the Road Map to Effective Communications™, The Brand Optimization Map incorporates the thinking behind the best strategy and planning processes of various disciplines into a unique, universal strategic service. By offering a holistic, integrated approach to strategy development, creative execution, and campaign evaluation, the Brand Optimization Map service can generate brand ideas that have the potential to solve clients' fundamental business problems and position their brands for long-term growth.

CREATING THE DEMAND-CHAIN

By systemically linking supply activities from sourcing and manufacturing to distribution and customer orders, corporations have successfully solved what is called the supply chain. By enabling "just in time" delivery of products or services to meet demand, this process benefits marketers through increased efficiency, productivity and lower costs. But in today's competitive marketing climate, with a renewed focus on building customer and top-line growth, demand creation is, arguably, the new success factor. To meet this important business need among all types of manufacturing and service corporations, McCann-Erickson WorldGroup has developed a service that links demand creation

41

activities to make them more synergistic and powerful, thus helping corporations to create enduring marketplace growth. This proprietary service offered by McCann-Erickson WorldGroup is known as Creating the Demand Chain. This service, also known as the McCann Demand Chain™, provides marketers with all the critical steps in demand creation in a cohesive, effective, and optimized manner. The ultimate benefit of the McCann Demand Chain™ service in whole, or in part, is to improve demand creation for companies and brands, increasing the sale of products and services and optimizing top-line revenue. Creating the Demand Chain™ encompasses a linked set of services involving six "links." Importantly, marketers can leverage the McCann Demand Chain™ service as a whole, or in part, since many of the service components can be adapted to the marketer's existing company activities. These six service elements encompass Demand Vision, Brand Idea, Resource Optimization, Brand Contact, Relationship Management and Demand Performance activities. While this service and its component services are delivered through an array of marketing communications operations across multiple channels, their unique linkage makes them more than the sum of the parts. Each element leverages proprietary, market-tested McCann-Erickson strategic, collaborative and measurement tools; and each is supported and optimized by specialized expertise, resources, creativity, software and infrastructure.

Brand Optimization Map

The Brand Optimization Map (BOM) has been created by McCann-Erickson WorldGroup to provide our corporate clients with a new, more inclusive approach to strategy development, one that fully recognizes the evolving nature of brand communications. This strategy development service recognizes that brand marketers around the world are in a changing relationship to their customers. The Brand Optimization Map™ thus takes a broader and deeper strategic perspective to account for the new realities facing marketing-focused businesses today, including their required coordinated usage of a full range of marketing communications disciplines.

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In today's highly demanding business environment, the focus has shifted away from improving profits through operating efficiencies to generating top-line revenue growth. Demand creation is the new priority. Demand creation in the new marketing communications environment has become especially challenging. The technology revolution has surrounded customers and consumers with a plethora of information and entertainment options, and, as a result they have become more elusive. The consumer is firmly in control. They expect choice, information, speed of service, and ease of acquisition. This new multi-channel environment adds a whole new dimension to the challenge of marketing integration. And with critical mass so hard to achieve, integration has become the new imperative. Traditionally, the focus of integration has been the development of a common brand platform or idea to unite the marketing message across multiple disciplines. This integration of content is still a core priority. But today, given the confusion of marketing channels, the increased sophistication and scope of all our marketing communications disciplines and the emergence of new internet-based business models, there is a demand for a new kind of integration - the integration of resources. The Brand Optimization Map™ is a unique service that brings together these two fundamental needs in integration, content and resources, under a unified strategic framework to optimize the marketing communications plan. It leverages proprietary strategic principles, tools and software that identify marketing priorities, optimize budget allocation and leverage the full spectrum of marketing communications disciplines for what they do best, in the right "proportions." The Brand Optimization Map™ also introduces a proprietary method of evaluating the ROI of the fully integrated marketing program. From a standpoint of "the user," The Brand Optimization Map™ is intuitive in concept, but sophisticated in its ability to embrace the complexities of the new marketing environment. It facilitates collaboration, idea generation, resource allocation and creative execution. It is flexible in its ability to be used locally or regionally, for brands, sub- brands or marketing initiatives, and for any specified marketing period.

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McCann-Erickson World Group uses The Brand Optimization Map™ service to leverage the specialized talent and creative energies of all our marketing communications "corridor" centers of expertise while working collaboratively with our clients to create powerful brand communications strategies. The following are the key steps of The Brand Optimization Map™ service:

BRAND OPPORTUNITY Brand Health Check

In order to create big ideas, we must step back and look at the big picture. To this end, BOM's Brand Health Check™ service offers a due-diligence process for assessing the overall health of a brand. The Brand Health Check™ service factors in evolving consumer perceptions, industry trends and competitive pressures. By forcing answers to critical questions, it provides the clarity to recognize major brand opportunities and solve brand problems. Using the framework of McCann's Universal Marketing Drivers - a set of marketing objectives that are common to all marketing communications disciplines regardless of media and message specifics - the service captures the essence of the competitive marketing situation and diagnoses priorities for both content and resource integration.

McCann Pulse

McCann Pulse™ serves as a leading-edge method of generating consumer insight that informs marketing innovation and execution. McCann Pulse™ insights feed the development of brand imagery, new products and services and channel strategy. The McCann Pulse™ service output is based on consumer dialogue held at McCann- Erickson offices around the world and is reported on the company intranet. Regional decisions can be made through the collection of key market data, and they in turn are used to create a comprehensive global picture of evolving trends. The focus of McCann Pulse™ is as much on the here and now, as where things are heading. Through proprietary probes, it uncovers what is important in the lives of consumers, how they view the world changing and what their evolving goals are. These issues direct us to new product, service, and communications ideas.

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This McCann Pulse™ service provides the consumer backdrop for the evaluation of the Brand Opportunity as well as development of the McCann Brand Idea™, via the Brand Footprint™ and McCann Selling Strategy™ service components.

McCANN BRAND IDEA

The Brand Optimization Map™ platform for content in marketing communications is determined by the Brand Footprint™ - a statement of the desired meanings, values and personality of the brand - and the McCann Selling Strategy™ which determines a powerful strategic idea for creative execution across all marketing communications disciplines. The Brand Footprint™ uses McCann's Brand Archeology techniques to uncover the full depth of meanings and values associated with the brand through the eyes of its customers and consumers. The McCann Selling Strategy™ draws on this "brand insight" to determine where the brand needs to be in the future, thus creating a relevant and credible strategic platform to "propel" the brand towards its destination.

MARKETING MIX

McCann Fusion™ 2.0 is a proprietary marketing mix software model that provides the optimal allocation for each marketing discipline to attack the stated marketing challenge. It looks at the marketing picture "top down," through software that captures relationships between our marketing communications disciplines and the Universal Marketing Drivers in the context of each category and country. The input to McCann Fusion™ 2.0 is the Brand Health Check. The output is a benchmark budget allocation across marketing disciplines for Brand Optimization. As a complement to this "top down" evaluation, McCann's Marketing Task Cycle works "bottom up" to determine the ideal role for each marketing communications discipline. The Marketing Task Cycle identifies the barriers that need to be overcome, and assigns the marketing that can best overcome them. This ensures we address critical brand needs and leverage our marketing communications disciplines for what they do best, and to the extent that they can make a difference.

BRAND PERFORMANCE:

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The McCann Brand Clout Index

The Brand Clout Index™ measures a brand's competitive ability to attract and retain customers in the marketplace - both currently and in the future. It can be used to help quantify the Brand Health Check and to track the performance of an integrated program. Thus it serves as the performance benchmark of The Brand Optimization Map™. The McCann Brand Clout Index™, managed by NFO WorldGroup research, is currently being rolled out of test market.

Road Maps to Effectiveness :

The Road Map to Effective Advertising The Road Map to Effective Communications Why the McCann Road Map Service was Created:

Consumer behavior is harder to understand and predict. Media is proliferating. Distribution channels are changing. And competition is increasingly fierce. In this fast-

moving environment, it is no wonder many established brands lack a powerful strategy, often lose direction and many new products fail to connect with customers. To navigate the ever-changing landscape, McCann-Erickson WorldGroup has developed The Road Map to Effective Advertising™ and, for total marketing communications programs, the Road Map to Effective Communications™. This comprehensive service of proprietary tools is designed to create effective advertising and communications strategies that make an impact in today's cluttered marketplace. The McCann Road Map service results in communications strategies that create loyal customers when audiences are moving targets and strengthen core brand values. McCann Erickson WorldGroup recognizes the need for consistent, tested methods and tools for creating communications that build brand value around the world and across marketing communications disciplines. The McCann Road Map service is used globally to ensure the consistency and high quality of communications programs around the world. It is also used throughout the WorldGroup's range of marketing communications companies to make certain that integrated marketing campaigns work in synergy.

The McCann Road Map's Key Components:

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The Road Map to Effective Advertising™, the prototype system on which The Road Map to Effective Communications™ is based, is a full arsenal of services to guide the creation of effective communications. It begins with the development of consumer and brand

insights and ends with the evaluation of the ideas that are used to create customers and build brand values.

Components of The Road Map to Effective Advertising™ include:

McCann Pulse™ -- the on-going exploratory service for gaining an in-depth understanding of consumer trends in order to develop relevant consumer insights. Brand Footprint™ -- for articulating the core brand essence that allows a brand to travel successfully across marketing landscapes. McCann Selling Strategy™ -- for converting consumer insights and brand essence into a focused communications strategy that is unified by a single, driving selling idea. And finally, McCann AdWorks™ -- a qualitative consumer validation and feedback process to assess the effectiveness of marketing communication campaigns.

McCann Pulse

McCann Pulse™ is the regular monitoring of collective cultural undercurrents at work on global consumer groups. Its goal is to better understand how these undercurrents affect consumers and their consumption; whether observed crosscurrents are connected or

isolated; and whether they represent a momentary fashion, a sustainable trend, or a real cultural shift within a market. McCann Pulse™ is a proprietary service that provides complete immersion in the lives of consumers through ongoing monitoring and personal dialogues. Following are the three components of McCann Pulse™:

The Pulse of Popular Culture

In-depth analysis of the content and symbolism of the various forms of media that both

reflect and influence consumers.

The Pulse of Observers of Change

Ongoing dialogues with leading-edge thinkers whose fields of interest relate to our target consumer groups.

The Pulse of the Consumer

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Unconventional dialogues with selected consumer constituencies that probe personal insights and what is new in their lives. Pulse can offer clients:

• Insight into new values, ideas and trends • An ability to talk more accurately in the language of consumers • Consumer perspectives of major marketing issues or events • Context for new creative ideas

Brand Footprint

The Brand Footprint™ service uses a tool that defines a brand's essence, so that marketers can manage and build their brands most effectively. It provides a clear understanding of which values need to be protected and leveraged in brand communications. And it helps charter a brand's growth into new territories, from expanding a brand in new geographic regions, to establishing it across multiple product or service categories, to extending it to an electronic marketspace. As brands expand, their value and meaning are often put at risk. These risks stem from

the need to reconcile a brand's heritage with product innovation, and from the need to re- express the brand in the context of new competitive sets, new cultures, and new media. The Brand Footprint™ service is designed to protect the equity of the brand by conveying the brand essence clearly and succinctly, but with enough texture to inspire a range of marketing activities, from product development to integrated communications. The Brand Footprint™ articulates the three most central brand meanings and its three most prominent personality characteristics.

McCann Selling Strategy

The McCann Selling Strategy™ is a service that is single-mindedly focused on generating brand-building ideas. Ideas that attract customers. Ideas that build corporate and brand franchises. And ideas that create marketplace dominance for clients. While traditional strategy has often been highly analytic, the McCann Selling Strategy™ offers imaginative conceptualization. It is guided by the McCann Selling Strategy™ platform, a process of analysis and idea generation that helps move a brand from its current position in consumers' minds to a desired perceptual space.

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The McCann Selling Strategy™ uncovers the motivations of conceptual target audiences and results in a strategic concept that pinpoints a Selling Idea. Unlike many traditional strategy briefs that are formulaic, the McCann Selling Strategy™ is a dynamic and living process. It's a way of thinking, working and creating as a team. It

is a discipline pursued with passion - - that ensures that we stay true to our role of creating ideas that add perceptual value to clients' brands.

McCann AdWorks

As the last stage of the Road Map to Effective Advertising™ service, McCann AdWorks™ tool ensures more effective marketing communications by providing feedback from consumers to a proposed campaign expression of the Selling Idea. McCann AdWorks™ service is tailored to a specific product, a market situation, a cultural environment. Unlike most leading ad testing firms that offer a simple go/no-go decision on creative work, McCann AdWorks™ is designed to help us understand whether we have communicated the Selling Idea we set out to communicate, whether the Brand Footprint™ is understood and if the campaign is entertaining. With McCann AdWorks™, we can take the lead in facilitating a real-time discussion about advertising effectiveness and help clients make the right decisions that lead to advertising, direct marketing or other marketing communication work that produces great marketplace results at the earliest stages of creative development. The McCann Road Map service of proprietary tools has proven valuable to a range of McCann-Erickson WorldGroup clients around the world. We believe that, as competition escalates on a global scale, our Road Map service will become even more valuable in the future.

MOMENTUM EXPERIENTIAL MARKETING PLATFORM

Today, consumers take functional features, benefits, quality, and a positive brand image as a given. What they want are breakthrough service offerings, cutting-edge products, and brands that they can relate to, connect with and incorporate into their lifestyles. Increasingly, marketers understand that consumers are living human beings with experiential needs: consumers want to be stimulated, entertained, educated and challenged. They are looking for brands that provide meaningful experiences and thus become part of their lives.

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The degree to which a company is able to deliver a desirable consumer experience - and use brands to do so - will largely determine its success in the global marketplace in the future. Trained to think of marketing and branding in terms of experiences, Momentum Experiential Marketing™ Services create unique, nearly impenetrable emotional bonds with consumers. These bonds are based on consumers' real experiences with the brand on every interactive level. Momentum Experiential Marketing™ Services are designed to deliver the brand experience during both the pre-purchase period (brand in mind) and the post-purchase period or consumption period (brand in hand). At Momentum, we know that companies that spend money on acquiring customers (brand in mind) but fail to deliver on the brand promise (brand in hand) will ultimately fail, causing high dissatisfaction and high brand switching.

STRATEGIC APPROACH TO DEVELOPING THE BRAND EXPERIENCE

Our goal is to have the brand embody an experience that is valuable, optimal, and cannot be duplicated by competitors.

MOMENTUM EXPERIENTIAL MARKETING SERVICES

The ultimate goal of Momentum Experiential Marketing™ is to create holistic brand

experiences for customers. Our strategic approach is guided by a simple formula:

Brand = Reputation (in the marketplace) + Promise (to the marketplace) + Experience (of customers)

BRAND = REPUTATION (in the marketplace)

The first step is to develop a Brand Footprint™. The Brand Footprint™ is Momentum's unique tool for defining a brand's essence. The Brand Footprint™ is a coherent statement of a brand's meaning and personality. Specifically it embodies:

• What the brand "means". What the brand "means" is what a brand gets credit for in the eyes of consumers - its reputation across a number of key dimensions. For example, Bayer means aspirin, doctor recommended, and prevention against heart attacks.

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• What the brand "is". What the brand "is" is how we would describe the brand's dominant personality traits - generally those that correspond to its principal meanings. For example, Bayer is experienced, safe, and versatile.

BRAND = PROMISE (to the marketplace)

The Brand Footprint™ provides critical insight into how the brand is perceived in the

marketplace; this understanding allows us to build meaningful relationships with consumers. The relationship is a promise that their experience with the brand will be personally relevant, consistent, meaningful and memorable - an experience that will be sought after time and time again. A Brand Promise is essentially a reason for being, a company's long-term ambition for

their brand. It encompasses how the company views its industry today and tomorrow and the role they want their brand to play in it. It seeks to carve out a premium, non- duplicable point of differentiation in the marketplace. A Brand Promise sets forth the foundation needed for organizations to focus in on how they want the external world to view the brand, redesign operations and strategies in order to deliver on the promise, and then develop marketing communications to fit with the image they are trying to portray. A Brand Promise incorporates every aspect of a brand's business model in order to create a holistic brand experience for the consumer. At Momentum, we know that public impressions of brands are based only in part on communication and public images. More than anything, they are based upon the daily explicit and implicit interactions that people have with a brand. In other words, the Experience.

BRAND = EXPERIENCE (of customers)

Experiences are personal events that occur in response to some stimulation (e.g. as provided by marketing efforts before and after purchase). An experience involves the entire living being and can be infused into a product, used to enhance a service, or created as an entity into itself. Experiences provide consumers a way to engage physically,

mentally, emotionally, socially or spiritually in the consumption of the product or service making the interaction meaningful and real. A comprehensive set of Momentum Experiential Marketing™ Service Drivers creates the optimal consumer brand experience for your product or company.

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Momentum Experiential Marketing™ Service Drivers , Communications Advertising Promotions Co-Branding Events Sponsorships Product Placement Visual/Verbal Identity Name Logos and Signage Product Presence Product Design Packaging Brand Icons Web Sites and Electronic Media Site Dynamics In summary, to effectively develop a brand experience that is meaningful and continually sought after, we must:

• Fully understand the meaning of the brand, its personality and what consumers are willing to give the brand credit for in the marketplace - Brand Footprint. • Relate the brand to the consumer in unique, consistent, relevant and meaningful ways, creating a non-duplicable point of differentiation - Brand Promise. • Realize the promise in every interaction the consumer has with the brand - The Experience. Developing a sound strategy will allow us to determine the best way to actualize the promise as part of a full-scale consumer experience platform. Momentum Experiential Marketing™ Services enable us to bring the experience platform to life.

Brand Citizenship

Why the Brand Citizenship Service was created:

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Due to the revolution in global communications and commerce, McCann-Erickson WorldGroup recognize that there has been a sea change in the perception of brands. Brands, these global icons, have become the new symbols, the new coats of arms that represent vast global constituents. They cross borders and national culture at will. They are neither products nor companies; they are worldwide constituencies of millions around the globe bound by common beliefs, values and point of view that transcend all traditional boundaries. They have become repositories and symbols of a global community of individuals who share core values, lifestyles and beliefs. Brand Citizenship™ is a service that facilitates the development of marketing and communications strategies in this ever more global constituency led market environment. It begins with the development of new mindset tools, and practices before moving on to how brands and corporations should operate in a world where brands begin to supercede states and other organizations. Brand Citizenship™ utilizes the very latest thinking in considering the brand in its new environment. The role of the brand steward in worldwide constituency management is examined: in particular how he identifies his citizenship, and the means and methods to enter a dialogue with the citizen. Analogies are drawn from the past in order to gain fresh insight on the role and the responsibilities of the brand steward - someone we come to consider more akin to a leader of a nation rather than a manager of a product. Attention is also given to the role of the employee who plays a vital part in Brand Citizenship™ by creating and perpetuating the brand. The Brand Citizenship™ Service incorporates the use of other McCann-Erickson proprietary tools such as The Brand Footprint™ and The Selling Strategy™ (as detailed in The Roadmap to Effective Communications™) in the process of managing global Brand Citizenships. This process is broken down into three key areas - citizenship definition tools, communications corridors and a pervasive worldwide system. The Brand Citizenship™ Service has proven valuable to a range of McCann-Erickson WorldGroup clients around the world. We believe that in the increasingly competitive global village in which we operate, our Brand Citizenship™ Service will become even more valuable in the future.

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SWOT ANALYSIS:-

STRENGTHS:-

1) Planning is a major strength of this agency. This is because Mc Cann is the only

agency whose president is the planner. 2) Also, as far as overall account planning ability , Mc Cann Erickson stands 4 th amongst all advertising agencies worldwide.

3) On the creative ability front, Mc Cann Erickson bags third position in the list of top ten advertising agencies. 4) Mc Cann Erickson is a worldwide organization with its roots firmly penetrated into the soils of advertising and marketing with many subsidiaries and group concerns , Mc Cann Erickson has aggressively tapped the world market and consolidated its ground in all spheres.

5)

Mc Cann Erickson is a highly professionally managed organization. Its executives

are its major assets as is clear from their contributions to Mc Cann and their portfolios. 6) In India, an overall basis i.e. on the grounds of quality of client servicing, overall creative quality, account planning, overall partnership, media, market recognition, overall organization/people, billing procedures, management of financial dealings with clients &logistics, Mc Cann stands 4 th in the list of Top 20 agencies. 7) Mc Cann Erickson’s biggest strength is the quality of human resources it possesses. With people like Sorab Mistry who is the CEO South-Asia Mc Cann- Erickson , Santosh Doshi, Prasoon Joshi and Chintamani Rao, Mc Cann not only races ahead of agencies like Contract , Mudra and Leo Burnett but also has a huge potential for the future. Prasoon Joshi, earlier creative director of O&M’s Mumbai Office, now a national creative director of Mc Cann Erickson is the second amongst India’s hottest creative directors. In a short period of time, he has managed to upstage a number of heavyweights to sit pretty at number two on the list of most admired creative directors.

WEAKNESSES:-

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1) Client Servicing is a major weakness for Mc Cann Erickson. On grounds of client servicing, Mc Cann is the 5 th position in the list of 15 advertising agencies; way behind agencies like JWT, O&M, Lowe &Mudra. 2) Also, though McCann bags the third position on grounds of creative ability, it is

3)

mainly due to the strength of its Coke campaign and to a lesser extent the work on chlormint. As far as media planning is concerned, universal McCann is not very strong. It’s

4)

on the 9 th position and just followed by R K Swamy .In terms of market recognition also, Mc Cann is not very commanding. McCann Erickson hasn’t bagged too many awards and it’s also not very strong at managing its P.R Universal McCann also lags behind most of its competitors in media buying and planning. That is to say, it does not incur much of an expenditure on advertising i.e. buying media, research and development.

OPPORTUNITIES :-

1)

McCann Erickson is a worldwide organization ; having its branches in many parts of the world. With international tie-ups and subsidiaries in every nook and corner

2)

of the world, McCann is in a very strong position to fruitfully tap the resources unique to every country and also make an optimum exploitation of the conditions and the environment prevailing in each of these nations. McCann is empowered with professionals having diversified experience and skills in the field of advertising and marketing. This can be utilized by the organization in overcoming its above-mentioned weaknesses to a greater extent.

3) Empowered with a worldwide reputation, McCann is also capable of diversifying into other sectors of advertising and marketing and also other forms of media. Besides, being an organization of international repute, it is also capable of recruiting some of the best people in the industry on whose individual strengths it can continue to remain a world-leader and a trail-blazer in this field.

THREATS :-

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1) If McCann does not improve its client-servicing, then it can prove to a major

2)

threat in the growth of the organization. This is because of the fact that most of the other organisations who are close competitors of McCann have already improvised on their client-servicing abilities. McCann’s poularity is mainly due to some of its successful campaigns. It has still

3)

to improve a lot on its creative abilities. Barring a few clients like Coke and Chlormint, the other ad campaigns of McCann have lacked creativity. So in order to remain in the top frame, McCann has to concentrate on its creativity. Lack of proper media planning is also a major threat for McCann. It has to improve a lot on this aspect to survive the competition.

ADVERTISING AGENCY # 5

HISTORY

M U D R A

It was a rather humble beginning ;No thunder, no lightning, no guardian angels showering of blessings In 1980, Mudra had one client - Vimal and a 500sq.ft. Office Its objective was very simple To create the best contemporary advertising which Mudra did. Mudra really is not sure if it made the advertising fraternity sit up and take notice But others definitely did which explains how nine years hence, Mudra was the largest Indian advertising agency And today, 23 years hence, Mudra have 125 clients nationwide And 3 agencies, 8 offices and 6 divisions in India and an equity partnership with DDB Worldwide And a capitalised billing of Rs. 7.8 billion And a portfolio of some of India’s best brands And Agency of the Year awards six times And if its words are not enough, here are a few from its clients

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“If you’re looking for an agency that can be part of hits own team, that cannot be called an agency, but is a part of its family. That treats its products as their product and whose people will work as if they’re working in its organization, there’s only one agency. That is Mudra.” -Piruz Khambatta, CMD Rasna Enterprises Ltd. “They’re completely involved in the brand. They take an active role and see them as a partner.” -Amit Jatia, MD McDonald’s Hardcastle Restaurants.

Spirit

Every brand has a descriptor. Every brand has a baseline. And being in the business of creating them makes Mudra eligible for four Made in India Mudra was created by a group of individuals whose only credentials were being Indian and knowing India Together they took India to the Indian and went on to become the largest Indian advertising agency Mudra (starting with the name) is made in India, for India, by Indians Success is Mudra’s Oxygen It is constant discontent and craving that has taken Mudra where they are It has forced them to continually raise their own benchmarks thereby helping them stay ahead of the competition. “Success is what keeps them going, success is what they keep going for”

PIONEERS IN ADVERTISING INDUSTRY

In an industry that sets trends, to be a trendsetter is no mean achievement. Yet, in the 23 years of its existence, Mudra has set trend after trend. To the extent that if it is something new, Mudra is somewhere in the picture. Here are some of the examples :

It was Mudra that first gave India double spread colour ads • It was Mudra that first sponsored commercial telecast of a major sporting event with the India-West Indies series of 1983

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It was Mudra that first branded a public issue, `Reliance Khazana'

It was Mudra that made India's first telefilm, `Janam'

It was Mudra that gave Doordarshan `Rajani", the serial that heralded a new

consumer awareness in India It was Mudra that gave India its first academy for advertising The Mudra

Institute of Communications, MICA It was Mudra that gave India its first transnational agency, Mudra International

It is Mudra that gave India her first advertising archives, the MAGIndia

DIVISIONS OF MUDRA

DIVISION PROFILE Public Relations:

Horizons

Horizons is Mudra’s PR division. Currently, it has three full service offices in Delhi, Mumbai and Bangalore with access to human resources and infrastructure in Ahmedabad, Calcutta, Chennai, Chandigarh, Hyderabad, Indore, Jaipur and Pune Horizons is an affiliate of Porter Novelli International the world's third largest PR network spread across 40 countries worldwide. Over the past ten years, Horizons has been instrumental in helping clients from various industries enter the Indian market. And having worked with a range of clients gives Horizons the experience to handle projects of any kind and magnitude. Horizons handle the Public Relations activity not only for some of Mudra's clients but for a large number of other corporates as well. Activities include communications strategy, Media relations, corporate communications, brand communications, event management, sponsorships, Employee communication and Crisis management.

Founder

A.G. Krishnamurthy :-

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We are not really sure whether the local astrologer saw what the boy born on the 28th of April, 1942 at Vinukonda in Andhra Pradesh would go on to achieve nor whether Shri A. G Krishnamurthy’s teachers saw that their student would go on To make advertising history In ‘68, he joined Calico Mills in Ahmedabad and in ‘72, moved to their advertising agency, Shilpi Advertising In ‘76 he moved to Reliance Industries as their advertising manager Four years later, on 25th March, 1980, he founded Mudra Communications. This is where the story begins:

Once he said that as a result of all the years he spent in Ahmedabad, a little bit of the Gujarati’s entrepreneurial spirit has rubbed off on him May be such things do happen Shri Krishnamurthy started with 1 brand, Vimal The chain he set up today has a 125 links, a 125 clients In ‘91, he created the Mudra Institute of Communications, Ahmedabad (MICA), the only advertising school of its kind in Asia A couple of years later came Mudra International, again the first time an Indian agency had opened shop abroad In ‘95 Shri Krishnamurthy was nominated Advertising Person of the Year by A&M, India’s leading marketing journal In ‘97, he was inducted into the Calcutta Ad Club’s Hall of Fame In ‘98, the British magazine ‘Media International’ nominated Shri Krishnamurthy as one of the 25 key figures in the international advertising industry In ‘99 he was awarded the AAAI-Premnarayen Award in recognition of ‘his pioneering spirit and entrepreneurial vision’ After an eventful stint spanning 23 years as Chairman and Managing Director of Mudra, Shri A G Krishnamurthy retired on 31st March 2003

LIST OF AWARDS

Mudra has collected many accolades over the years including the "Agency of the Year" award for 6 years besides the induction of Shri A.G.Krishnamurthy (CMD) into the Calcutta Ad Club Hall of Fame; his being chosen as the Ad Person of the Year by A&M;

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his nomination as "one of the 25 key figures of the international Ad Industry" in 1998 by British Magazine - Media International; and the AAAI-Premnarayen Award in recognition of his pioneering spirit and entrepreneurial vision

  • 1993 | Total awards 55

  • 1994 | Total awards 52

  • 1995 | Total awards 84

  • 1996 | Total awards 90

  • 1997 | Total awards 67

Agency of the Year - A&M

Agency of the Year - Bangalore Ad Club

1) Agency of the Year - A&M 2) Advertising Person of the Year (A.G.Krishnamurthy) - A&M

Agency of the Year - Calcutta Ad Club

Agency of the Year - The Pioneer

Hall of Fame (A.G.Krishnamurthy) - Calcutta Ad Club

  • 1998 | Total awards 87 The British magazine "Media International" nominated A.G.Krishnamurthy as one of the 25 key figures of the international advertising industry

  • 1999 | Total awards 60

AAAI - Premnarayen Award

  • 2000 | Total awards 72

  • 2001 | Total awards 50

Creativity 31, USA

  • 2002 | Total awards 27

Agency of the Year - Delhi Ad Club A.G. Krishnamurthy in recognition of his pioneering spirit and entrepreneurial vision

(36 Awards of MAG)

(16 Awards of MAG) (7 Gold Awards)

(2 Awards of MAG)

DIVISIONS

MAJOR CLIENTS

Product/Service

Brand Name

Client Name

Category

Adhesives

Jubilant

Vam Organics

Air Coolers

Symphony

Symphony Ltd.

Airline

Air India

Air India

Anti-Infective – Prickly Heat

ItchGuard DermiCool

Paras Pharmaceuticals Ltd.

Antiseptic Creams - Heel Care

Krack SR

Paras Pharmaceuticals Ltd.

Antiseptic Lotion

BoroSoft

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Paras Pharmaceuticals Ltd.

Automobile Dealers

Popular

Popular Vehicles & Services Ltd.

D.D.B PROFILE:

In 1988, Mudra decided to collaborate with an international agency an agency with the vision, experience and determination to set standards for the profession .That agency was DDB Worldwide, part of the Omnicom Group. This affiliation gives them access to the best creative product, latest information technology, media modelling, direct marketing and other international advertising and marketing inputs But the theme that binds them together is their definition of advertising. The concept of the Third Dimension as they put it, and Return on Inves”ent (ROI) as their colleagues at DDB see it.

D.D.B PROFILE: In 1988, Mudra decided to collaborate with an international agency an agency with the

Over the years, the interactions have led to a better creative product and a better understanding of product categories It is this spirit of trying to be the best at everything one does that today binds Mudra and DDB together

D.D.B PROFILE: In 1988, Mudra decided to collaborate with an international agency an agency with the

INTERACT VISION:

Interact Vision Advertising and Marketing (P) Ltd. was the combination in 1992 of two Mudra Group companies, Interact and Vision. If there is anyone today who can claim to be as close to India and Indian values as Mudra is, it is Interact Vision This tradition has helped shape its characterThe agency does not just take on an account It adopts the business sharing the burdens, responsibilities, rewards and disappoin”ents. Today, the Interact Vision portfolio includes several multinationals as well. At Interact-Vision, the stress has always been on effectiveness .This they did by never losing sight of the three factors that have contributed to our effectiveness - relevance, impact and focus. In 1980, Mudra started with a modest turnover of Rs.30 lakh in the first year of operation The first few years indicated a placid growth rate of 25% From 1985 onwards, turnover accelerated at a furious pace

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Managing Director & Chief Executive Officer

Mr. Madhukar Kamath

Managing Director & Chief Executive Officer Mr. Madhukar Kamath Executive Director & Chief Creative Officer Mr.

Executive Director & Chief Creative Officer

Mr. Alan D’Souza

Managing Director & Chief Executive Officer Mr. Madhukar Kamath Executive Director & Chief Creative Officer Mr.

Executive Director & Head

Managing Director & Chief Executive Officer Mr. Madhukar Kamath Executive Director & Chief Creative Officer Mr.
Managing Director & Chief Executive Officer Mr. Madhukar Kamath Executive Director & Chief Creative Officer Mr.
Managing Director & Chief Executive Officer Mr. Madhukar Kamath Executive Director & Chief Creative Officer Mr.
Managing Director & Chief Executive Officer Mr. Madhukar Kamath Executive Director & Chief Creative Officer Mr.

Leadership, Learning & Change

 

New Initiative

 

Total Branding (South)

Mr. Prabir Purkayashta

Mr. R. Lakshminarayanan

Mr. Dilip Upadhyaya

     
Branches
Branches
Managing Director & Chief Executive Officer Mr. Madhukar Kamath Executive Director & Chief Creative Officer Mr.
         
       

Bangalore &

S.

Hyderabad /

   

Kolkata

CFO – Hemant

Mumbai

Chennai Vice President –

Kochi

Vice

President –

Ahmeda-

Bad

Exe. Vice

President

Mishra

 

President –

 

Radhakrishnan

   

Director – Amritendu Roy

Jude

Fernandes

Branch Director –

Mr. Bal

Deshpande

Manager –

Mr.

Chandan

Nath

Ashok

Mr. G.

 

Vidyasagar

Serenity

 

SWOT ANALYSIS OF ADVERTISING AGENCIES - A COMPARATIVE

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STUDY

 

S.

 

Basis

   

No.

     
       

Name of the agency National Agencies

 

International Agencies

 
       

Xebec

Mudra

   

Canco

   

Carat

   

McCann

 
       

Ercikson

1

Does

the

agency

             

conduct

a

SWOT

Analysis

of

its

clients i.e. whether

it

assesses

the

strengths,

 

weaknesses

of

its

clients and whether

 

Yes

Yes

 

Yes

 

Yes

 

Yes

it

makes an

     

assessment of the

level of knowledge

possessed

by

its

client pertaining to

the

field

of

advertising

 

2

Does

the

agency

         

This is an

 

have

any

international

This is an

international tie-ups

 

No

No

 

No

agency with subsidiaries all over the world

international agency with subsidiaries all over the world

3

Does

the

agency

             

enjoy

patronage

Mostly the

 

Mostly the

 

from

any

 

Yes

Yes

 

No

clients are

clients are

multinational clients

   

multinational

multinational

?

4

Scope

 

of

 

Medium

Large

   

Medium

   

Large

   

Large

 

operations

 

5

Does the agency

             

specialise

in

any

 

Yes

Yes

 

No

Yes

 

No

one type of media ?

     

6

Media in which the

   

Print

Print

 

There

is

no

 

Electronic

There is no such

agencies specialise

   

such

one

one

media

in

media in which

which

 

this

this

agency

agency

 

specialises

 

specialises

 

7

Quality

of

human

 

The top level

As far as the

As

far

as

the

 

As far as the

As far as the top

resource

of

top

level

of

top

level

of

top

level

of

level

of

 

management

management

management is

management

management

is

does

not

is concerned,

concerned, the

is concerned,

concerned,

it

comprise

of

it

consists of

office-bearers

it

consists of

consists

 

of

people

who

professional

are

professional

professional

are

from the

people

as

is

professional

 

people

as

is

people

as

is

field

of

reflected

in

people

having

reflected

in

reflected

in

the

adveritising

the approach

an

academic

the approach

approach

and

or who

are

and

the

background

in

and

the

the

decision-

having some

decision-

the

field

of

decision-

making activities

sort

of

an

making

management

making

of

the

agency.

experience.

activities

of

or

marketing

activities

of

The founders of

63

     

Though they

the agency

and

having an

 

the agency

this agency were

may be well-

experience

in

themselves men

groomed in

this

field.

of

dignified

their

However,

the

stature,

decision-

 

number

 

of

personified

 

making

people

in

the

background and

abilities and

top

level

who

dynamic

framing

of

have

 

the

entrepreneurs. It

policies, they

decision-

is

basically

don't

have

making

 

because of the

that proper

authority

are

foot-work

of

academic

 

too few and the

these founders

background

line

staff

is

on which the

relatively much

successors have tread and led the agency to great heights of name and fame.

 
  • 8 Largely

Decision-making

     

Decentralised

 

Largely

   

Decentralised

Decentralised

centralised

centralised

 

Area of operation

 
  • 9 Local as well

Local as well

Local

   

Mostly

Mostly

 

as international

as international

 

international

international

10

Clientele base

 

Broad based

Broad based

 

Not broad

   

Broad based

Broad based ;

based

throughout the world

11

Transparency

of

 

The

agency

The

agency

Although

the

 

Though, the

Though,

the

operations

believes

in

believes

in

agency has not

agency

has

agency

has

making

its

making

its

created any

given

plenty

given

plenty of

operations

operations

website

 

of information

information

 

transparent

transparent

(which

 

is

about

its

about

its

as

is

quite

as

is

quite

presently

operations on

operations

on

evident form

evident

form

under

 

websites etc.

websites etc. it is

the

fact that

the fact that a

development)

it

is

practically

 

a

lot

of

lot

of

being

a

local

practically

difficult

for

a

information

information

and

a

small-

difficult for a

small

can

be

can

be

sized agency it

small

prospective

 

obtained

by

obtained

by

is

possible for

prospective

customer

to

any one from

any one from

local

 

and

customer to

hunch

out

for

various

 

various

 

medium-sized

hunch out for

them

sources

like

sources

like

prospective

 

them

websites,

websites,

customers

to

personal

personal

avail

of

its

visits etc.

visits etc.

services.

12

Types of customers

   

Mostly

 

Mostly

Every

type

of

 

Mostly

Mostly

 

catered to

corporates

corporates

customer

from

corporates

corporates

individuals

to

 

corporates.

13

Whether

the

             

agency

has

engaged

the

services of any

celebrities

for

endorsement of its

 

Yes

 

Yes

 

No

 

No

information

available

No information

available

clients'

products

     

and services ?

64

 

COMPARISON BETWEEN GROSS INCOME OF TOP 25 AGENCIES

 

S.No.

AGENCY

GROSS INCOME (Rs. In lakhs)

(2001)

1

JWT

20743

2

O & M

12587.4

3

Mudra

10696

4

FCB-Ulka

8648.4

5

Rediffusion DY & R

7520.4

6

McCann-Erickson India Ltd.

6183.6

7

R K Swamy / BBDO Advertising

4415.9

8

Grey Worldwide (I) Pvt. Ltd.

4250

9

Leo Burnett India Pvt. Ltd.

3759.1

10

Contract

3209.8

11

Euro - RSCG

3060

12

Pressman Advertising

2928.4

13

MAA

2676

14

IB&W Communications

2665.7

15

Triton Communications Pvt. Ltd.

2186.2

16

Ambience D'Arcy

2180

17

Bates India

2107.2

18

Percept Advertising Ltd.

2076.6

19

Saatchi & Saatchi

1599.8

20

TBWA Anthem

1438.9

21

Everest

1329.6

22

Madison Communications P.Ltd.

1148

23

SSC & B Lintas

1120

24

Publicis

1108.1

25

Quadrant

985.8

65

17000 4000 3000 2000 1000 21000 20000 19000 18000 5000 16000 15000 14000 13000 12000 11000
17000
4000
3000
2000
1000
21000
20000
19000
18000
5000
16000
15000
14000
13000
12000
11000
10000
Triton Communications Pvt. Ltd.
Ambience D'Arcy
Bates India
Percept Advertising Ltd.
0
AGENCY
JWT
O & M
Mudra
FCB-Ulka
Rediffusion DY & R
McCann-Erickson India Ltd.
R K Swamy / BBDO Advertising
Grey Worldwide (I) Pvt. Ltd.
Leo Burnett India Pvt. Ltd.
Contract
Euro - RSCG
Pressman Advertising
MAA
IB&W Communications
COMPARITIVE STUDY
Saatchi & Saatchi
TBWA Anthem
Everest
Madison Communications P.Ltd.
SSC & B Lintas
Publicis
Quadrant
ADVERTISING AGENCIES
9000
8000
7000
6000

Growth of Advertising Agencies :

The XIIth Agency Report of A&M magazine makes the remarkable disclosure that the ad industry remained steady in 2000-01, with a growth figure of 23.51 per cent, only slightly less than the XIth Agency Report's figure of 24.83 per cent for 1999-00. No surprise there, given that the ad industry growth rate is typically four times the economic growth, in any country (though India had a higher ration during the mid-1990's boom). The magazine has made a shift in the reporting emphasis following change in accounting policies of many agencies, from capitalised billings earlier to gross income. "This makes no difference to the agency ranking, since it was always done by gross income - which is

66

the audit-certified figure that agencies submit to A&M. But it does influence the way we speak of the industry's size," the survey said. •

In rupee terms, the Gross Income of the Top 100 agencies stands at Rs 12,753.60 million for 2000-01, as compared to their total of Rs 10,325.81 million in 1999-

2000.

In terms of Capitalised Billings (Gross Income multiplied by 6.67), the industry figure for 2000-01 stands at Rs 85,066.51 million. Together, the Top 5 participating agencies this year, HTA, O&M, Mudra, FCB- Ulka and Rediffusion DY&R (Lowe Lintas opted not to participate), account for 47.2 per cent of the Top 100's total Gross Income. WPP Group has penetrated India so well (with HTA, O&M, Contract, Fortune, Equus and Rediffusion DY&R) that it has a 34.7 per cent share of the Indian ad pie in 2000-01 with five participating agencies in this year's report. More than half the Top 100 agencies (62) have grown between 0 and 40 per cent. Eight agencies have growth rates above 100 per cent - Bates, Capital, Rashtriya, MX, Brand.comm, Quiksel, Triple ESS and RMG. Of the Top 100, 13 agencies have reported negative growth - Impulse, Interact Vision, National, Crescent, Thumbprint, Elegant, Shells, Avishkar, TV ADS, Siddhartha, Batha, Wide Reach and TAS Vision. • The big surprise comes from Moulis Euro RSCG, which jumps from No 44 to No 17. The Havas umbrella seems to have worked some wonders. In the globalisation era, big agencies have found it impossible to survive without any foreign partnership. That's the power of globally-networked advertising agencies - still the biggest force of change in Indian advertising, a decade after the market was thrown open to foreign inves”ent. Though Indian agencies have no real cause to rejoice as growth may not be anything compared to the advertising exuberance of the mid-1990s when growth peaked at 49.5 per cent in 1994-95, but it is good by global standards, the magazine noted while releasing the survey report

67

Top 20 Advertising Agencies

RANK

AGENCY

1999-00

2000-01

 
 
  • 1 1

Hindustan Thompson Associates Ltd

  • 2 2

 

Ogilvy & Mather Pvt Ltd

  • 3 3

 

Mudra Communications

  • 4 4

 

FCB-Ulka Advertising Ltd

  • 5 5

 

Rediffusion-DY&R

 
  • 6 6

McCann Erickson (India) Ltd

 
  • 7 7

R K Swamy/BBDO Advertising Pvt Ltd

 
  • 8 8

Grey Worldwide (I) Pvt Ltd

 
  • 9 9

Leo Burnett India Pvt Ltd

11

10

Contract Advertising (India) Ltd

15

11

Euro RSCG Advertising Pvt Ltd*

10

12

Pressman Advertising & Marketing Ltd

12

13

MAA

13

14

iB&W Communications Pvt Ltd

16

15

Triton Communications Pvt Ltd

18

16

Ambience D'Arcy Advertising Pvt Ltd

44

17

Moulis Euro RSCG Advertising Service Pvt Ltd

--

18

Bates India

17

19

Percept Advertising Ltd

19

20

Saatchi & Saatchi Ltd

Top 20 Advertising Spenders

RANK

COMPANY

YR. ENDING

AD SPEND

CHANGE OVER PRVS YEAR (%)

1999-00

2000-01

       

1

1

Hindustan Lever

Dec 2000

696.58

-5.60

2

2

Colgate-Palmolive India

Mar 2001

213.96

10.30

3

3

ITC

Mar 2001

183.32

-0.96

4

4

Dabur India

Mar 2001

146.08

21.71

--

5

LG Electronics India

Dec 2000

131.4

70.16

5

6

Nestle India

Dec 2000

128.46

13.59

68

 

7

  • 6 McDowell & Co

Mar 2000

118.94

26.60

 

8

  • 7 Bajaj Auto

Mar 2001

102.53

13.62

--

9

Maruti Udyog

Mar 2000

88.20

34.39

--

10

Herbertsons

Mar 2000

85.93

13.16

9

11

Britannia Industries

Mar 2001

85.29

10.75

8

12

Godfrey Phillips India

Mar 2000

85.15

30.94

12

13

Marico Industries

Mar 2001

79.82

36.03

--

14

Godrej Industries

Mar 2001

77.54

106.55

14

15

Telco

Mar 2001

71.89

47.56

25

16

SKB Consumer Healthcare

Dec 2000

69.36

61.98

10

17

Tata Tea

Mar 2001

64.63

-5.22

--

18

Hyundai Motor India

Mar 2000

63.73

222.52