BTL SPENDING PATTERNS 200

PROJECT REPORT
ON

BTL SPENDING PATTERNS

ACROSS
FMCG/TELECOM/CONSUMER
DURABLES/BFSI SECTORS

SUBMITTED BY:
MANISH SINGLA
MOHIT JAWA
FMG XVI
PGDM
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FORE School of Management, New Delhi
TABLE OF CONTENTS

EXECUTIVE SUMMARY.iii
1. CHAPTER 1- INTRODUCTION.....6
1.1 Project Objective.......6
1.2 Background...7
1.3 Relevance......8
1.4 Limitations8
2. CHAPTER 2 LITERATURE REVIEW...9
3. CHAPTER - METHODOLOGY........16
3.1 Research Process...16
3.2 Sample Selection...16
3.3 Sample Size...17
3.4 Sample Description...17
4. CHAPTER 4 SECTOR ANALYSIS...18
4.1 Telecom.18
4.2 FMCG...25
4.3 Consumer Durables...29
4.4 BFSI..33
4.5 Overall..37
5. CHAPTER6 - CONCLUSION...39
6. REFERENCES.45

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EXECUTIVE SUMMARY
The Indian market is witnessing some major changes. More consumers, more buying
power and more media reach. Then there is the rise of digital media, the fragmentation of
mass media, the growing power of young consumers and the growing BTL activities.
Marketers acknowledge that advertising is just one variable that impacts sales among
other including pricing, distributions etc. Products and services that are promotion elastic
tend to be highly impacted by price-offs and discounts which increase the likelihood of
consumer buying the same. In comparison, products and services that are advertising
elastic see higher sales with increased advertising. Many successful categories and brands
in Key Urban Towns (KUT) are price sensitive and hence promotion elastic. Marketers
then choose to divert advertising budgets to on-ground promotions (including BTL and
activation) that show a direct impact. In comparison, premium brands that have a greater
uptake in metros (given higher purchasing power) tend to be advertising elastic which
means that the more they are advertised, the higher is the likelihood of sales.
For marketers, the decision to enter a new market is dependent on a number of factors
which help them select and prioritize markets. As shared by some of the leading Indian
marketers, the key factors impacting their decisions for gauging market potential and
allocating marketing spends are listed below.

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Exhibit 1 Factors impacting choice of market(s)

Once the market is selected then the marketer is faced with the decision to select the
choice of medium for advertising. The factors are listed below:

Exhibit 2 Factors impacting choice of media for advertising

During the course of the research we met some of Indias largest marketing spenders
across categories including FMCG, consumer durables, banking and financial services
and telecom companies amongst others and domain experts such as media planning and
buying agencies and advertising agencies besides relying on available published data and
in-house media experts.
One of the new directions taken by marketers in allocating ad spends that could be
indicative of changes that can be expected in the future is a growing share of BTL in the
total marketing spend. The average BTL spends across marketers met was about 35-40 %
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against about 15 % of marketing spends, just three years earlier. While in the metros,
BTL is used because the clutter in mass media is too high and getting audience attention
is difficult in Key Urban Towns (KUT), since media options are limited BTL gets a more
than proportionate response from the inquisitive consumers. BTL could therefore be one
of the factors that could better harness the marketing and media needs of KUT where
marketers can use BTL effectively instead of focusing only on traditional media planks
which may not be as readily accessible.
BTL activations can be strategical or tactical in nature, depending upon the type of
activation. BTL activations are most commonly used for sales promotions, branding,
product launch, channel partners appeasement, channel expansion, lead generation.
Marketers have different objective for different activities. Some of the most common
strategies are customer retention, customer acquisition, brand visibility etc.
This research report explores the current developments and trends in Below the
Line(BTL) marketing spend across the Indian market.

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CHAPTER 1 - INTRODUCTION
1.1

PROJECT OBJECTIVE
To analyse BTL (Below-The-Line) activations acoss four sectors, and
understanding the marketers strategy behind those activations.
To find out the seasonality (if any) of the BTL activations in those sectors.
To analyze why is trend shifting from ATL to BTL.

1.2

BACKGROUND OF THE STUDY

India is one of the fastest growing consumer markets in the world and as more than 300
million consumers spend on cars, mobile phones, food and films amongst others,
marketers need to reach, remind, persuade and push them towards their brands. In 2006
Indian marketers spent about Rs 17,356 crores (billings) on advertising, and given around
8 % GDP growth rates, this market can only go up.
Though figures vary on the size of the BTL market -- encompassing promotions,
exhibitions, point-of-purchase and retail merchandising and on-ground activities -industry estimates put a quarter of the Rs 17,356 crores annual ad spend by India Inc
accounted by these activities.
Marketers acknowledge that advertising is just one variable that impacts sales among
other including pricing, distributions etc. Products and services that are promotion elastic
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tend to be highly impacted by price-offs and discounts which increase the likelihood of
consumer buying the same. In comparison, products and services that are advertising
elastic see higher sales with increased advertising. Many successful categories and brands
in KUT are price sensitive and hence promotion elastic. Marketers then choose to divert
advertising budgets to on-ground promotions (including BTL and activation) that show a
direct impact. In comparison, premium brands that have a greater uptake in metros (given
higher purchasing power) tend to be advertising elastic which means that the more they
are advertised, the higher is the likelihood of sales.

1.3 RELEVANCE
Advertising and communication today is experiencing a transformation at a pace faster
than ever. It is evident in India more than anywhere else. The rising economy, increased
cash at hand for disposal and a consumerist mindset coupled with the changing lifestyle
and media hav made communicating with the consumers a daunting task.Shopping today
has evolved , and so has the consumer. While the consumer is being hammered through
means and methods of communication that pass through certain filters of his mind to
lodge the brand there, he is still vulnerable to various psychological factors and bran
selection inducements at the point of purchase. Good advertising is that which sells. and
in context of today's scenario the need is for a judicious and careful spend of marketing
budgets to gain maximum impact that converts into sales. Brands today need to go
beyond the share-of-mind to capture the share-of-wallet.
With mass-media's return on investment going down drastically because of audience
fragmentation and media-cost inflation, marketers are looking at BTL more and more to
deliver customized solutions for their brands. BTL in marketing is considered one of the
most effective tools of product promotion. BTL-events allow not only to create positive
image of the company, to get acquainted the customer with the product, to get interested
the prospects in product purchasing, but also helps to provide all necessary information

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on terms of purchase, using and storage of product/service. Visual presentation of a
product increases customer loyalty and allows for increasing product sales volumes.

1.4 LIMITATION OF THE STUDY

1. The sample size taken by us for the study may not be a true representative of the
entire sector defined for the study.
2. The responses given by the respondents may not be true or may be biased.
3. The Sample is biased against the sectors due to non- availability of time for
meeting related to the same. The sample size is small due to following reasons:
Data availability constraint due to data confidentiality.
Time constraint.

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CHAPTER 2: LITERATURE
"All the successful models we grew up with don't work. It used to be brands had all the
power, and then they got sidelined by promotions. Now it's become a consumer
republic again. The consumer is boss there's no more mass market and is driving the
flow of information."
-- Kevin Roberts, CEO, Saatchi & Saatchi Worldwide
"I believe today's marketing model is broken. We're applying antiquated thinking and
work systems to a new world of possibilities."
-- Jim Stengel, CMO, Procter & Gamble
2.1 ORIGIN OF THELINE
The origin of term BTL is the following: an advertising manager of Procter & Gamble
developed promotion campaign media-plan that included main media channels: TV,
press, outdoor etc. He underlined it, summarized the expenses and only after recalled
about the board on fairy, souvenirs, gifts etc. He added these expenses to the list below
the line. BTL is usually opposed/contrasted to ATL (above the line) advertising in its
traditional distribution channels: press, TV, radio, outdoor, movie, Internet.
The annals of Marketing Management have witnessed a tug of war between advertising
and sales promotion since inception. But in the early phase of twenty first century this
war has taken a new avatar in form of Above - The- Line and Below - The- Line
activities, widening both scope and intensity of this war. Above-the-line propagated

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traditional marketing channels that strive to reach a mass audience with messages that
reinforce a brand communicate general product information or inspire an emotional
response. Below-the-line initiatives, by comparison, acts like traditional direct
marketing efforts they aspire to establish targeted relationships between marketers and
individual consumers, and offer comparable ease in measurability. With increase
fragmentations and demographic along with the increased pressure to increase
effectiveness of marketing communication soon BTL activities started substituting ATL
activities and there has been a steady growth in BTL expenditure in this century . With its
unique ability to personalize and customize communication this form of communication
is slowly replacing the mass media advertising.
2.2 Introduction of the Topic
There are two kinds of marketing strategies that can be used to promote any product:
"above-the-line" (ATL, essentially advertising in the mass media) and "below-the-line"
(BTL). These category names reflect the business practices of advertising agencies.
Agencies generally make commission on placement of advertisements in newspapers,
magazines and cinema, and on television, radio and billboards, a fee that appears "above
the line" on their bill. Traditionally, other forms of promotionevents, direct marketing,
email promotions, text message promotions, premiums, price reductions, public relations
activities, sponsorship, trade shows, exhibitions, sales literature and catalogueswere
charged at a fixed fee and thus appeared "below the line
Above-the-line propagated traditional marketing channels that strive to reach a mass
audience with messages that reinforce a brand communicate general product information
or inspire an emotional response. Below-the-line initiatives, by comparison, acts like
traditional direct marketing efforts they aspire to establish targeted relationships
between marketers and individual consumers, and offer comparable ease in measurability.
Traditionally ATL and BTL strategies have been considered distinct, and BTL the poor
cousin. BTL activities were generally used to complement the main mass media
marketing activities and usually a fraction of marketing resources were allocated for these
activities. BTL activities first shot into prominence when ATL activities for products
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which

have

unwholesome

demand

were

proscribed by the Socio-legal restrictions. Even though BTL activities started off to fill in
for ATL activities, increasingly, BTL strategies are now recognized as economical,
unique, and personal ways to achieve "cut-through" in the supersaturated advertising
environment.

Figure 2.1 Channels of BTL and ATL activities

Above-the-Line Media

Below-the-Line Media
Are targeted to individual consumers,

1. Are tailored to reach a mass audience

based on their expressed needs and

2. Establish brand identity or reinforce

preferences
Issue a call-to-action, inspiring specific

emotional concepts surrounding a

product or brand
3. May or may not drive customer
response

customer activity or tailored messages

about a product or brand
Drive individual responses
Are highly measurable, allowing

4. Are difficult if not impossible to

measure with any accuracy

marketers insight into their return-oninvestment, as well as those tactics that

are (and are not) working

5. Cater to the mass market

Establish one-to-one relationships

between consumers and marketers
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Figure 2.2 Differences in BTL and ATL activities

2.3 Evolution of below -the- line activities

In a market rapidly adapting to changes in technology, available information and
heightened consumer demand, traditional, brand-oriented advertising is no longer the
primary driver of customer behaviour. Whether its reflected in dwindling print
newspaper circulation or the stagnant market for network television commercials,
significant evidence suggests that the marketing landscape has fundamentally shifted
from an above-the-line focus on reaching a broad population with emotionally-oriented
appeals, to a below-the- line approach that stresses targeted, customer-centric
communications, measurable results and concrete return-on-investment.
We believe that the metaphorical line separating marketing philosophies (often quoted,
but never precisely defined) is reflected in three key qualities that separate todays
emerging promotional methods from the top-down advertising monologue of the past.
Acting in concert, they embody the universal elements of successful below-the-line
marketing efforts:

Perception The extent to which a consumer feels that he or she is engaged as an

active participant in a marketing dialogue, rather than a target of an aggressive
direct sales or branding effort

Interaction The extent to which consumers are empowered to respond to

marketing communications via preferred channels that are both convenient and
accessible

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Measurability The extent to which a marketer can track the results of an

individual initiative, determine commensurate return-on-investment and adjust
future campaigns to provide for an enhanced chance of success

Figure 1.3 Framework of BTL activities

2.4 Channels of BTL activities

a)Database marketing: It involves use of proprietary database of consumer records
which can enhance prospect or customer data sources with unprecedented demographic,
lifestyle and transactional data. It can be utilized for tuning marketing offers targeted at

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new prospects -- and provide their current customers with products that more closely
match purchasing preferences and habits.
b)Mail marketing: It involves creation of compelling branded Mail/email templates and
campaign messages, and also our data driven services to develop precise targeting to
reach the highest number of quality prospects
c)Interactive services: By designing online campaigns that generate valuable and
conversions by the use of Web Properties, Affiliate Network and Search Engine
Marketing
d)Affinity marketing: Enhancing brand value and gaining new customers by affinity
programs like collaborations with

Veteran's Organizations

Sportsmen's Organizations

Conservation and Wildlife Advocacy Organizations

Seniors Advocacy Organizations

Political Organizations

Religious Organizations

Youth Activity Organizations

Ethnic Group Advocacy Organizations

Cause Based Organizations

Direct Response Print: Its most common form today is infomercials. It is achieved by
eliciting a direct response via television presentations. Viewers respond via telephone or
internet, credit card in hand.
Other media, such as magazines, newspapers, radio, and e-mail can be used to elicit the
response, but they tend to achieve lower response rates than television.
e)Event Marketing: It involves a strategic-based face-to-face contact designed to impact
a brand's perception among its constituents. It is set of promotional activities involving an

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event such as a sporting or social event, designed to bring a product to the attention of the
public
f) Promotional Marketing: It is a non-personal promotional effort that is designed to
have an immediate impact on sales. Sales promotion is media and non-media marketing
communications employed for a pre-determined, limited time to increase consumer
demand, stimulate market demand or improve product availability.
Examples include:

Coupons

Discounts and sales

Contests

Point of purchase displays

Rebates

Free samples (in the case of food items)

Gifts and incentive items

Free travel, such as free flights

Sales promotions can be directed at the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called
consumer sales promotions. Sales promotions targeted at retailers and wholesale are
called trade sales promotions.

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CHAPTER 3- METHODOLOGY DATA

COLLECTED
3.1 RESEARCH PROCESS
The Research Methodology adopted to meet the objectives of this study are:

First we got ourselves acquainted with the top 10 advertisers of various sectors to
gain knowledge regarding spends on TV advertising undertaken by these sectors.

Then we zeroed down to the target sample for our project. The data relating to the
sample included data of percentage spend by various companies in the specific
sectors (which we got from AD-Ex India website) and then found out their
rankings in the particular sub-sector. This data was extracted from the secondary
sources.

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Taking our hypothesis for the study as spends on TV advertisement, we initiated

our research.

We created a questionnaire that was aimed at finding out the ratio of BTL spends
to ATL spends by various companies in the different sectors and the strategies
alignment for the same.

3.2 SAMPLE SELECTION

The sample was selected considering the marketing expenditures. Our aim was to include
the highest spenders across the sectors.
We segregated the FMCG sector into 9 sub-sectors namely food and beverages, personal
care, skin care, hair care, personal healthcare, household products, cosmetics, laundry
and personal accessories.
We also segregated the telecom sector into service providers and handset manufacturers.
We divided the consumer durables sector into white goods, kitchen appliances/brown
goods, and consumer electronics.
Keeping in mind the companies that were leaders in the sub-segments we approached
them with a detailed questionnaire.

3.3 SAMPLE SIZE

Size of the sample was 32 which consist of consultations with senior marketing
professionals of four sectors namely Banking Finance and Insurance Sector, Fast Moving
Consumer Durables Sector, Consumer Durables Sector, and Telecom Sector.

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The Sample is biased against Telecom Sector due to non- availability of time for meeting
related to the same. The sample size is small due to following reasons:
1. Data availability constraint due to data confidentiality.
2. Time constraint.

3.4

SAMPLE DESCRIPTION

See appendix.

CHAPTER IV: ANALYSIS

4.1 ANALYSIS OF THE TELECOM
SECTOR
The segregation of the Telecom Sector:

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Growth in ad volumes of Telecom sector (Source: Adexindia)

Telecom sector has seen a rise of 61 per cent in TV advertising during 2007 over
2006.

Share of segments of Telecom sector.

(Source: Adexindia).
Top five advertisers under the Telecom Segments.
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BTL: ATL Ratio

In service poviders category BTL:ATL average comes out to be 31.5 : 68.5.

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In service poviders category BTL:ATL average comes out to be 33 : 67.

It is evident from the above graphs that telecom service providers are very bullish in
marketing expenditure.

Expected Rise in BTL

Service Providers

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Expected Average increase= 5%
Telephone Equipments:

Expected average increase=6.67%

BTL Activations Seasonality

Player
IDEA
SERVICE PROVIDER
AIRTEL
SERVIC PROVIDER

Strategy
Rural Activation, (Increasing
customer base)
STD Rates slashed, New
scheme launched.
(Customer acquisition)

Quarter
Q1 and Q4

MOTOROLA
EQUIPMENT

A Loyalty Program in which

they invited their customers
for a dinner.
(Customer Retention)
Magic Box Activity

Q2 and Q4

VODAFONE
SERVICE PROVIDER

Q4

Q2 and Q4

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We segregated the calendar year into four quarters. Then we figured out the seasonality of
the BTL activations. Generally Quarter one, three and four emerged as the one in which
the telecom sector indulges themselves into the BTL activities.
Reason being in first quarter is to represent the higher growth rate and to have higher
number of sales figures in the balance sheet, lot of sales promotion activities are carried
out. Quarter two is also important for the fact that, as per the financial year new budgets
are allocated in this quarter only, hence new marketing plans is formulated and therefore
new activations are required. Moreover there are maximum product launches therefore to
get the brand closer BTL activation is required. Quarter four being the favourite ones
among the telecom sector as its the festive season.
Strategy behind BTL activations
Category
Telecom-Service Providers

Rural Strategy
Customer Acquisitions

Telecom-Handset
Manafacturers

Brand building

Urban strategy
Increasing ARPU through
VAS
Customer Retention

For Service Providers

We have segregated their activation strategy under two heads i.e. Urban areas and Rural
Areas
Objective of BTL activation in METROS:
With so many schemes being launched one after another by every player, consumer is
flummoxed of what to choose or what not. It is therefore imperative for the service
provider to indulge its TG in ENGAGEMENT MARKETNG so that the customer engages
themselves into the new scheme and get to know about the features. These are done
generally through canopy activities in colleges, markets etc. While launching a new
scheme, they also indulge themselves in canter activities and some activities which are
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directed towards youth only. Their main aim is the word of mouth publicity or Viral
Marketing.
All the mobile advertisements which are a part of BTL activity only are directed towards
in making the belief stronger that the service provider is having the powerful coverage
area. Through this their main aim is the Customer Retention.
Objective of BTL activation in Rural India: A Big Market
All the telecom players whom we have interviewed see an immense potential in an
untapped market of rural India. Infrastructure is developing and moreover the per capita
income is also increasing. Moreover with not much scope of growth in metros the
marketers are left with no other choice to tap on this huge market. All the players have
started their activations in one way or the other. What we understood from our analysis is
that all the service players are doing the activations just to make rural India realise the
fact that their network coverage area is strong in you region. Secondly with activities
like Nukad Naatika they are able to connect with consumers i.e. Brand Connect.
Therefore we can say that in rural India the strategy is the Customer acquisition.
For Telephone Equipments
Switching: A consumer now-a-days changes his/her mobile phone every year or two.
Therefore a marketer through BTL activation tries to persuade consumer as to why they
should switch to same companys mobile phone. They hold some loyalty programs for
them. Ex- Motorola conducted a loyalty program in which they invited their customers
for the dinner party.
New Product Launch: Technology is updating itself every year. Therefore one sees a lot
of new handsets rolling year after year. A lot of BTL activations are done in order to get
the consumer know about the product features.

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4.2 FMCG SECTOR

Sr.
No

Sub Category

Sr.
Sub Category
No

Baby Care

Laundry

Cosmetics

Personal Accessories

Food and
Beverages

Personal Care/Hygiene

Hair Care

Personal Healthcare

Household Products

OVERALL SECTOR:

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Ad volumes of FMCG sector grew by 39% in 2006.

Most of the companies indulges in two types of promotion i.e. consumer and trade.
Especially in FMCG sector it is seen that trade promotion is on the higher side than the
consumer promotion. For ex- Marico spends in the ration of 90:10 in favour of trade
promotion. Therefore it is evident of how the companies are realizing the importance of
channel partners.
BTL: ATL Ratio

Industry average: ATL : BTL= 64:36

Fact: Pepsi is having very low ratio of BTL to ATL.
One important fact that we came across is that in ATL is that F&B sector emerged as the
highest expenditure sub category while in BTL this category is very bearish. Just because

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of the fact that people are very sceptical when it comes to food and beverages. They do
not want to be tested in any of the BTL activation when it comes to F&B.
Fact: Gillette is having very high BTL ratio as compared to ATL.
Personal care and hygiene includes cosmetics is very bullish on the BTL activations.
Fact: GSK is having the ratio of 50:50 in BTL to ATL.
In Personal healthcare segment ATL is on the low side while the BTL is very high
BTL Activations Seasonality
If we talk about overall FMCG sector then we have analysed that quarter two and quarter
four emerges as winner in terms of highest BTL spending. Primarily because in quarter
two, fresh budgets are allocated and hence new plans are executed. Moreover due to the
festive time, quarter four is the favourite one for the marketers.
However there are tons of products and each product category has its own seasonality.
For example- in soups category, favourite season for marketers is just before the winters
due to increase in demand in winters. Similarly for mosquito repellent then season would
be just before the summers/monsoon.
Marico being second best in the hair care industry can be targeted during summers
as well as winters as it does product-specific BTL activations. During summers it
does BTL activities for perfumed hair-oils that are preferred in summers and during
winters the advanced hair oil that has base of coconut is preferred as it does not get
freezed.
Gillette does BTL activations at the beginning of Q2 due to allocation of new
budgets.
Common trend across the FMCG sector observed was that during festival time the
festive discount schemes are the lifeline of the companies.
Exception noted for this sector was for Perfetti that is focussing now on branding
and has no seasonal factor involved

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(Source: Adexindia)
Expected Rise in BTL

Most of the companies were skeptical about increase in BTL expenditure as it is already
very high in this area. Moreover competitors action also plays a very important role.
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Now-a-days HUL is spending heavy on corporate branding therefore other players in the
same segment might follow the same strategy.
Strategy behind BTL activations
Trade related activation:
It includes the dealers meet; incentives provided to channel partners etc. Marketing
campaign aimed at building demand at the middleman (distribution channel) level. In a
trade promotion, wholesalers and/or retailers are offered special price discounts (often in
addition to a trade allowance), subsidized or free display racks or stands, gifts, or other
incentives.
Consumer related activation
Most of the companies in this sector do one or two major campaigns every year. Those
campaigns are meant to be related to branding. These are very strategical in nature. For
products like alpenliebe, the objective behind BTL activations is Brand Salience.
Although most of the campaigns are tactical in nature. These are sales oriented only. In
this they provide various promotional offers to the consumers so that they try their
product.

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4.3 CONSUMER DURABLE

ATL

(Source: Adexindia).

(Source: Adexindia).
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BTL: ATL Ratio

Industry average: ATL:BTL= 65:35

BTL Activations Seasonality

Seasonality is always product specific. We have subdivided this sector into 3 categories
i.e. White goods, Consumer electronics and others.
In white goods category we have picked Electrolux, Voltas, carrier and whirlpool. Further
we analysed four products i.e. AC, Refrigerators, Washing machine and Microwave. For
AC and Refrigerators the best season is just before summers for any kind of BTL
activations.
While if we talk about consumer electronics we anaylsed three companies i.e. Sony,
Samsung and LG. And there were unanimous when it comes to seasonality of BTL
activation. At the time of fourth quarter i.e. Festive time is the time when everyone vie
each other. While Shalimar paints does some of the BTL activities at the time of Diwali.

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Expected Rise in BTL

Strategy behind BTL activations

OVERALL SECTOR:
Time has changes and so has this sector. Few years back this sector was concentrating
primarily on consumers while now its not the case. Channel partners are equally
important in the chain. Marketers now-a-days do not want to leave any opportunity to
persuade the customer. Moreover in this sector distribution network also plays an
important role.
On one side companies are spending huge money on ATL campaigns and on the other
side they are counting on BTL activations to get the sales.
In these sector companies indulge in in-shop branding. This is the most used activation
strategy adopted by many players. They have their own ISD (in-shop-demonstrator)
which convinces the customer as to why he should try that product. In shop branding
includes putting banners, flex, danglers etc.
Other kind of BTL activations which are customer centric are also employed by the
companies. These includes coupons, various promotional schemes etc.

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Other BTL activations which are trade centric are also employed equally in this sector.
Activities like touring, events, giving incentives, increasing credit are some kind of
activations that this sector indulges itself.
Some strange facts were witnessed during our course of study. Since dealers network play
an important role in this sector so many players from time to time do the channel
expansion. Huge chunk of money goes into channel expansion and this is a part of BTL
expenditure only.
SUMMARY OF THE CONSUMER DURABLES SECTOR:
Category
Consumer Durables-White
Goods
Consumer DurablesConsumer
Electronics(Sony)
Consumer DurablesOthers(Paints)

Short-term Strategy
Product launch by in-store
branding and Brand
visibility
Channel expansion

Long-term strategy
Increasing customer base

Customer retention and

brand awareness.

Increasing customer base.

Increasing customer base.

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4.4
BANKING/FINANCIALSERVICES/INSURANCE
ATL

(Source: Adexindia).

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(Source: Adexindia).
Insurance and Mutual Fund Industry
Specifically talking for the Mutual Fund Sector there is a 3-tier hierarchy, company,
agency then the consumer. All the dealings are routed through the distributors. Trade
promotion is high but less compared to insurance sector.
For the insurance sector, there are self-employed agents, companys representatives at the
banks and finally the direct dealers employed by the company. So trade promotion is
more.
Companies like Religare, Karvy etc have the wide network having its reach to national
level. Their employees act like the agents to these companies. Therefore most of the BTL
activations are targeted to these companies only. All the meets, conferences, events are
conducted for them only. There is no Consumer interaction. Although some of the BTL
activations are carried out by the companies which are directed towards the end
consumers. These initiatives are taken by at the company end only. These generally
includes the canopy activities outside the malls, corporate offices etc. They serve dual
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BTL SPENDING PATTERNS 200

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purpose. The main objective behind those activations is to register the brand in the minds
of the consumer i.e. brand visibility. And other one is sales promotion.
They also do events, employees motivations kind of activities from time to time.
Banking Industry
In this industry BTL activation is bare minimum. BTL activations are generally
associated at the time of product launch, or service launch.
Major chunk of money on BTL activations are directed to the annual meetings,
conferences etc.
Brand visibility in the realm of increasing competition is the strategy that is the driver of
Am-Ex.
Campaign by Amex:
As in regard to an event in south-ex approx. 1 year back wherein they persuaded the
shopkeepers to keep Am-ex cards giving them special incentives in the form of giving
their sales a boost in a way that they would give the consumers a discount which would
get the consumers to their shops, they made sure they followed it up by a banner posting
in the area to bring out a sense of pride and increase brand awareness that it is present
everywhere and acceptance is the sole criteria which they based their campaign on.
BTL:ATL

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BTL SPENDING PATTERNS 200

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Expected Increase in BTL

BTL Activations Seasonality

Analysing the BFSI sector we came out with the consensus on analysing Ing Vysya Bank
that banks that have a strong brand identity in their hometown i.e.South for this bank
specifically henceforth would not require BTL activations as it is already registered in the
minds of the consumers over there but to carve a name for itself in the national arena it
needs to turn the tables by not entering the clutter through mass media but by doing
activations that people can associate with and can remember as good brand experience.
This is where BTL activation agencies should leverage on. So instead of focussing on
South festivals like Onam etc. companies should target the festival time of Diwali and
other regional festivals to take lead.
Going by our consultations with the experts in the domain, we realized that during
Quarter 1,companies provide incentives to the top brasses by giving them automobiles
which they need to pay through by getting deduction done systematically and take loans
for the same so for banks providing car loans,like ICICI Lombard they should get in talks
with corporate for schemes that can be routed through the BTL agencies at this time of
the year.

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BTL SPENDING PATTERNS 200

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Player
SBI Life Insurance
Category-Life Insurance

Strategy
Employee Motivation,
Increasing customer base.

Am-Ex
Category-NBFC

Brand visibility

DSP Merill Lynch

Category-Mutual Fund

Brand awareness, Product

launch, Distributors
appeasement as they are the
interface of the company.

ICICI Pru Life Insurance

Category-Life Insurance

99.26% Brand awareness

and 77% Brand recall was
achieved by them according
to a latest research agency
report for a BTL campaign.

Seasonality
Q2 due to result
announcement and
acknowledgement for the
best performer, Q1 due to
closing of the financial year
and tax saving benefit.
Q4 due to festival time and
so effort for markets to be
branded put in.
Q2 because new budgets are
allocated, also when new
NFO is launched and, also
for the distributors meet
done monthly generally.
Same for the whole
insurance industry except
for players like Ing Vysya
that are dominant in the
specific region like south to
target festival time of Diwali
.

4.5 COMMON TO ALL SECTORS:

QUESTIONS RELATED TO BTL
AGENCIES
IMPORTANT PARAMETERS FOR COMPANIES

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BTL SPENDING PATTERNS 200

8

70% of the players said that concept is the most important factor in determining the BTL
agency. After that 20% said that the price is the most important factor after concept and
then came the quality of material used.

When asked about the problems they faced while dealing with any BTL agency then 90%
of the players said that Execution is the most important issue. Distribution and logistics,
timely execution at different places at same time are the most one to occur.
Consumer to trade promotion
39

BTL SPENDING PATTERNS 200

8

Chapter fIVE Conclusion

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BTL SPENDING PATTERNS 200

8
1. Most of the companies are doing multichannel promotions and marketers
endeavour to align their ATL and BTL strategy.
2. Almost all the players in each sector are tapping onto Rural India as they see an
immense opportunity. Since mass media has limited reach over their hence a lot of
BTL activations are done.
3. BTL to ATL ratio is increasing over the years. For the industry average it is near
35:65, which was just about 15:85 three years back. With marketers looking for
cost effective marketing campaigning, BTL industry is bound to increase.
4. BTL activations can be tactical or strategical in nature depending upon the type of
activations. It is the misconception that they are only tactical in nature.
5. Companies are giving a lot of importance to their channel partners. In some cases
they are treated equally to customers.
A new direction taken by marketers in allocating funds that has been highlighted through
our research is the significant jump in the investments going into below-the-line (BTL)
marketing. Across the board, marketers are spending anywhere between 10-50 % of their
total budgets on direct marketing, events, activation and other BTL activities depending
on the nature of the product / service and market of choice. The average BTL spends
across marketers met during the course of the research was closer to 40 % against about
15 %, just three years earlier. One reason of course is mass media fragmentation and
therefore less bang for the above-the-line (ATL) buck. The other more important reason
however isthe pressure on brand managers for a better return on marketing investments
made. This rise in BTL is resulting in a better connect with small-town India because a
larger portion of the increased BTL is going to KUT as per marketers.
In the metros, BTL is used because the clutter in mass media is too high and getting
audience attention is difficult. The logic for using BTL in KUT, however, is different.
Even though media options are limited in many KUT, yet because consumers are looking
41

BTL SPENDING PATTERNS 200

8
for new products or services, BTL gets a more than proportionate response. In existing
product categories BTL in KUT has helped push up revenue contributions.
5.1 Current Scenario in the field of BTL activities
Expenditure estimates say a lot about where sophisticated marketers are focusing their
efforts, but they dont address the more fundamental question of why. Why, after so
many years of success with above-the-line methods, are marketers finally changing
their approach to reaching customers and fostering profitable relationships? And
why

do

customers

appear

so

willing

to

accept

this

new communications

philosophy? The following seven trends explore the factors, both external and internal,
that are contributing to this emerging marketing emphasis. Specifically, it identifies seven
key trends that are directly impacting the allocation of marketing budgets for both ATL
and BTL campaigns. They include:
1. Changing consumer demographics decrease the influence of traditional mass
media (i.e. one-size-fits-all) marketing messages
2. Growing consumer sophistication heightens the demand for channel-agnostic
communications
3. Widespread marketing clutter diminishes the impact of commercial messages
that dont address specific and individually relevant consumer needs
4. Enhanced information availability empowers both marketers and consumers with
insight that allows for precise customer targeting and intelligent purchase
decisions
5. Heightened client pressure to deliver quantifiable value by evaluation of ROI of
the marketing initiatives , forces marketing service providers especially
agencies to re-evaluate services platforms
6. Growing effectiveness of multi channel campaigns (those that cross multiple
media) reinforces demand for tactics that establish one-to-one relationships
between marketers and consumers

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BTL SPENDING PATTERNS 200

8
7. Rapid technological advances allow for consumer/marketer interactions that are
frequent, easier and more relevant than previously possible
5.2 Trends Impacting BTL Marketing Budgets
1.) Changing consumer demographics decrease the influence of traditional massmedia (i.e. "one-size-fits-all) marketing messages.
Understanding the conventions of culture as well as the individual cultural differences
and similarities of target locales empowers marketing professionals to realize that one
universal messagewhether verbal or visual, can never reach a global audience. One
global culture comprised of people with identical values does not existnot even within
the confines of our own country as the recent elections illustrate. Differences in learning
and thinking patterns influence the way people process information, as demonstrated in
their innate responses to marketing communications. Audiences differ in the way they
perceive and value concepts of time, space, money, relationships, power, risk, and even
the protocols of gender roles. It is important to note that when attempting to customize
communications with cultural differences in mind, it is just as important to recognize the
cultural similarities. As much as localization vendors like to overemphasize "extreme
customization", cultural similarities do exist, and are deeply imbedded in the core values
of your products and service offerings.
2. Growing consumer sophistication heightens the demand for channel-agnostic
communications.
Advances in marketing and communications havent just served to benefit marketers
consumers, too, have learned to exploit technology, information and available media
channels for their benefit. Among other capabilities, the sophisticated modern consumer
is adept at:
Using the Internet to compare product prices
Screening out unwanted outbound telemarketing calls (or telemarketing calls altogether
through

participation on the National Do-Not-Call list)

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BTL SPENDING PATTERNS 200

8
Skipping past television commercials the lifeblood of above-the-line marketing with
TiVo and other digital video recording technologies
Bypassing

traditional

print

advertisements

through

online

newspaper

subscriptions and opt-in headlines e-mails that provide a selected snapshot of relevant
news with only a fraction of the advertising interference.
Collectively, these practices speak to the active participation of consumers in the
marketing process, a phenomenon made possible by the same innovations that many
marketers expected would cement their authority in customers daily lives. They demand
marketing responses that are concise, relevant and universal across all media so that
consumers who choose to interact via multiple channels (say, researching available
products online and then completing the purchase in-store) are exposed to a consistent
fundamental buying experience.
3. Widespread marketing clutter diminishes the impact of commercial messages
that dont address specific and individually relevant consumer needs.
Rapid advances in the quality of available marketing media have had at least one
deleterious effect: a saturated media consumption landscape, plus a resultant consumer
backlash against advertising messages that are perceived as intrusive or otherwise
irrelevant.
4. Enhanced information availability empowers both marketers and consumers with
insight that allows for precise customer targeting and intelligent purchase decisions.
Significant advances in database marketing, analytics and customer relationship
management (CRM) platforms have spawned an informational avalanche, allowing
marketers the opportunity to build a comprehensive, 360-degree view of the
customer and their transaction history. By maximizing the complex array of available
information, leading-edge marketers are reaching prospects with offers targeted to their
expressed (or expected) wants and desires and driving significantly enhanced response
rates and lifetime customer value.

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BTL SPENDING PATTERNS 200

8
Not to be outdone, consumers are arming themselves with an array of enhanced
informational tools to make smarter buying decisions. Web sites reinforce the movement
to obtain information and apply it through stricter scrutiny of the available market.
5. Heightened client pressure to deliver quantifiable value forces marketing service
providers especially agencies to re-evaluate services platforms.
Among traditional advertising agencies, average client tenure now stands at less than18
months per account. In a timeframe shorter than many ad campaigns themselves,
marketers are increasingly deciding that these trusted strategic advisers once thought of
as the standard-bearers of marketing strategy, conception and delivery can easily be
replaced by others whose strategic, creative and, most notably, financial objectives better
align with their own.
While shoddy creative work is often cited as the reason, more often, the actual fuel for
this rapid agency turnover is a lack of concrete delivery. In the face of alternative belowthe-line media that offer the benefits of personalization and measurable return-oninvestment, the vast investment required to sustain solo ATL campaigns (as well as the
agencies from which they originate) is increasingly seen as excessive in the eyes of
bottom-line focused executives.
6. Growing effectiveness of multichannel campaigns (those that cross multiple
media) reinforces demand for tactics that establish one-to-one relationships between
marketers and consumers.
Given the proper tools, consumers prefer to engage with marketers through a
combination of available media (including retail stores, the Internet, catalogs, direct mail
and direct response television) thus relegating single-channel categorizations such as
catalog buyer and online shopper to the business archive. But these customers offer
more than just a challenge to marketing strategists they also offer greater profit
potential. According to the Internet Advertising Bureau, well-executed multichannel
marketing campaigns generate a sales lift ranging from 7 to 34 percent. Viewed from

45

BTL SPENDING PATTERNS 200

8
another perspective, that spells trouble for single- channel marketers (such as those
hoping that traditional television advertisements will fuel visits to retail stores).
7. Rapid technological advances allow for consumer/marketer interactions that are
more frequent, easier and more relevant than previously possible.
Long ago cited as the most significant factor inhibiting the growth of BTL marketing, the
recent proliferation of appropriate, cost-effective technologies for both marketers
and consumers has finally reached the critical mass necessary to fuel campaigns that
cross multiple media and stand out from the mass-oriented messages proffered by
traditional advertising.
The scope of technological advance spans all media, but perhaps the most significant
advance involves the widespread adoption of high-speed, broadband Internet
connections allowing consumers to surf the Internet effortlessly and manage rich,
HTML-coded e-mail and online messages that inspire click-through and greater response.
More than 43 percent of U.S. households now connect to the Internet through a
broadband connection, according to Jupiter Research, and approximately 80 percent will
be on broadband by 2010.

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8

REFERENCES
1. www.agencyfaqs.com
2. www.eventfaqs.com
3. www.exchange4media.com
4. www.adexindia.com
5. www.indiantelevision.com
6. Laurent, Gilles, Jean-Noel Kapferer, and Francoise Roussel (1995), "The
Underlying Structure of Brand Awareness Scores," Marketing Science, 14
(No. 3, Part 2
7. Day, George S. and Robert W. Pratt (1971), "Stability of Appliance Brand
Awareness," Journal of Marketing Research, 8 (February),.
8.

Dall'Olmo Riley, F., A.S.C. Ehrenberg, S.B. Castleberry, T.P. Barwise, and
N.R. Barnard (1997), "The Variability of Attitudinal Repeat-Rates,"
International Journal of Research in Marketing, 437-50

9. Aaker, David A. (1991), Managing Brand Equity. New York: The Free
Press
10. Keller, Kevin Lane (2003). Brand Synthesis: The Multidimensionality of
Brand Knowledge, Journal of Consumer Research, 29 (4), 595-600
11. Leuthesser, L., C.S. Kohli and K.R. Harich (1995). Brand Equity: The
Halo Effect Measure, European Journal of Marketing, 29 (4), 57-66.
12. Keller, Kevin Lane (1993). Conceptualizing, Measuring, and Managing
Customer-Based Brand Equity, Journal of Marketing, 57 (January) 1-22

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BTL SPENDING PATTERNS 200

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SAMPLE DESCRIPTION
The following Table gives the details regarding the selected sample:
Table 1

S.No.
1
2
3
4
5
6
7
8
9

Sector
Consumer Durables
-do-do-do-do-do-do-doFMCG

Company Name
Sony India Ltd.
Whirlpool
Electrolux
Voltas
Carrier
L.G.
Samsung
Shalimar Paints
Perfetti

10

-do-

Gillette

11
12

-do-do-

Hul
Itc

13

-do-

Marico

14
15
16
17

-do-do-doNBFC-BFSI

Dabur
G.S.K.
Pepsi
Amex
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BTL SPENDING PATTERNS 200

8
18

Banking-BFSI

Centurion bank of
Punjab

19

Banking-BFSI

Bajaj allianz-general

20

Mutual Fund-BFSI

Dsp merill lynch

21
22
23
24
25
26
27
28

Mutual Fund-BFSI
Life Insurance-BFSI
Life Insurance-BFSI
Life Insurance-BFSI
TelecomServiceProvider
-do-do-do-

Birla Sun Life

ING Vysya
ICICI Pru
Max new york Life
Airtel
Idea
Vodaphone
Reliance

29
30
31
32

Communications
TelecomHandsetManafacturer Fly Mobiles
-doNokia
-doReliance
-doMotorola

Table 2

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BTL SPENDING PATTERNS 200

8
Consumer

Trade

Consumer
Durable

55

45

sony
Electrolux
Whirlpool
voltas

60
60
50
50

40
40
50
50

Table 3
Importance
Concept
Price
Quality of
Material

70
20
10

Table 3

Consumer Durable

Table 4
Telecom
Idea
Airtel
vodafone
Motorola

BTL

ATL
35
30
30
40

Increase
65
70
70
60

40
35
35
50

50

BTL SPENDING PATTERNS 200

8
Nokia
fly mobiles

35
30

65
70

40
35

65
50
40
10
20
30

35
50
60
90
80
70

70
50
40
15
25
35

Table 5
FMCG
Gillete
GSK
Marico
Pepsi
Perfetti
HUL

Table 6
Consumer to trade promotion in Telecom
Idea
50:50
Airtel

80:20
70:30

Motorola
Fly

50:50

Table 7
Company
Birla sunlife
Max New York
Life
ING Vysa
Amex
Bajaj allianz

BTL

Table 8
Increase: 2007 to 2008
Birla sunlife
Max New York
ING Vysa
Amex
Bajaj allianz

ATL
40

60

12.5
60
33
35

87.5
40
67
65

40
12.5
60
33
35

45
37.5
75
38
45

51