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 June
2012



A
 REPORT
ON
 



 “Advertising
Dynamics
in
Health

 Insurance
Sector:
 An
Analysis”

A report submitted in the partial fulfillment of the requirements of MBA program of IBS, Hyderabad.


By Tushar Acharya 11BSPHH010908 BATES INDIA PVT. LTD.

Yours Faithfully Tushar Acharya 11BSPHH010908 . The project has been submitted for the partial fulfillment of MBA degree at Icfai Business School. from February 2011 to May 2011.
 AUTHORIZATION LETTER I hereby declare that the work carried out for this project is true to my knowledge. The study has been carried out for a period of 3 months i. Hyderabad (Batch 2011-2013).e.

Above all I am also very thankful to Ms. for providing the environment and infrastructure needed to accomplish this task. I would like to extend my acknowledgement to Mr. Sandeep Handa. Account Management head and Vice President of BATES. Surajit Ghosh Dastidar has played a pivotal role and has provided constant motivation as a guide. she has thoroughly helped and counseled me at each step of this process. Bates) and company guide. Sugandha Kharbandha (Brand Executive. Dr.
 ACKNOWLEDGEMENT In the earnest attempt to prepare this report. . Further. She also helped me in learning the practical aspects of the Advertising Agency. I am truly obliged and indebted to him for the time and focus he provided.

... India Media & Entertainment Sector………………….27 4.2..24 3.….….2..1.3.6. Agency Departments………………………………... SWOT analysis of Bates……………………………….2 Market Restraints………………………………. Qualitative Approach………………………….6..13 2.. Integrated Marketing Communication……………………….13 2. Background……………………………………………………1 1..17 3.24 3.3..…….5. Competitive Analysis…………………………………. Advertising in India…………………………………..8.2 1.…….1...………5 2.……….1 Market Drivers……………………….…….…….1.……….….. Limitations of the Study……………………………..9 2..21 3. Methodology of the Study………………………….1.7. PESTL Analysis of the health insurance sector………....…3 2.... INTRODUCTION 1-2 1..5. Health Insurance Sector in India………………….….2. Advertising Lifecycle………………………………. Quantitative Approach………………..….…….…….1.6.. SWOT Analysis of Advertising Industry……………..1.. INDUSTRY PROFILE 3-15 2.20 3..……….8...4.. Advertising Agencies………………………………………. WPP & Bates……………………………………………….………14 3. Critical Success Factor………………………………….2..7.1. Objectives of an Advertising Agency……………………….1 1. Importance of Advertising………………………….7 2...4.10 2.8....18 3.6 2. DYNAMICS OF THE ADVERTISING MEDIUM 31-67 4....4..3..…. Max Bupa………………………………………………..……....17 3...
 TABLE OF CONTENTS EXECUTIVE SUMMARY 1.…...2 2.. COMPANY ANALYSIS 16-30 3.………31 ... Objectives of the Study………………………………….19 3.6....16 3.

…………....……82 ANNEXURE LIST OF ILLUSTRATIONS 1.25 5. Key Trends ………………………………………………………………57 4..42 4...………………….6... Advertising Life Cycle……………………………………………………..66 9..29 7. Factors that influence purchase decision…………………………………..3. Growth Forecast for Health Insurance…………………………………….……68 6... Different mediums for advertising………………………………………. RESEARCH……………………………………………………………... RECOMMENDATIONS………………………………. Most preferred advertising medium………………………………………...8.5.……58 4. REFERENCES…………………………………….44-48 8...32 4...69 11..... Total Revenue Forecast for Health Insurance…………………………….. Market Share of Health Insurance Companies…………………………….…. Changing Advertisement Trends…………………………………. Promotional Practices…………………………………………. LEARNING FROM SIP SIP……………………………….12 3.28 6. Various kinds of Advertising…………………………………………….…65 5....80 10..4..………..68 10. Graphs on advertising revenues for various mediums………………….
 4...….. Future Outlook………………………………………………………....7. Workflow Structure of an advertising agency ……………. Growth Rate of Health Insurance Companies…………………………….. Perceptual Map…………………………………………………………….10 2..….76 7.13 4. CONCLUSION…………………………………………………………. Overall Industry size (Advertising)………………………………………. FOCUS GROUP DISCUSSION……………………………………………..49 4...2.78 8. Growth of various Advertising mediums………………………………..79 9.………………...36 4..70 .....

New Delhi-110006 Title of the Project Advertising Dynamics in Health Insurance Sector: An Analysis 
 .
 Executive Summary Student Information Name: Enrollment No. Ltd.: E-mail: Contact No.aharya90@gmail. Bahadurshah Zafar Marg.com 09848321281 09560348625 Organization Description Name of the organization: Industry: Address: Bates India Pvt. Advertising 8A-Milap Niketan.: Tushar Acharya 11BSPHH010908 tushar.

) 1|Page . We are taking Max Bupa as the client to see how the organization is using advertisement as a tool to promote its policies.e.2 OBJECTIVES OF THE STUDY My research is based on “Advertising Dynamics in Health Insurance Sector”. economic. TVCs. account services. BATES. • To study the potential of various advertising mediums like OOH. backdrops. for a health insurance product to be promoted. The objectives of my study are: • • To study about the advertisement industry in India. The functioning of the different departments (creative. advertising. production). personnel. To know about WPP group and all the companies associated with it focusing especially on “BATES”. Radio.1) INTRODUCTION 1. outdoor. TV etc. public service. covert advertising and the changing trend of advertising in India. My profile is “Client Servicing”. • To study about how the advertising agencies functions with reference to its various departments. We talk about how the advertising industry works and what advertising strategies are adopted for a health insurance company like Max Bupa. radio. In this report. • To study the promotional practices of Max Bupa (posters.. As there are different advertising mediums like print. TVCs. we are studying which medium is highly popular and which should be preferred for a health insurance product/policy. Print etc. sales kit. etc. liberalization and technology on it. Films. 1. brochures. I’m doing my internship in an advertising agency. Different types of advertising like surrogate. standees. our focus is only on one aspect of IMC i. • To study about Indian Media & Entertainment Sector and the influences of demographic.1 BACKGROUND The purpose of this report is to know about the advertising industry and its scope in India. broadcast. wherein my client is Max Bupa Health Insurance.

2|Page . a questionnaire was made and was floated online for the response. Sample size – 100 1. • In Focus Group discussion. I also conducted a Focus Group Discussion among 5 people to find out the recommendations for Max Bupa against Apollo Munich.4 LIMITATIONS OF THE STUDY • The research is based on the results of online survey. The advertising industry is very dynamic in nature so the results of this study may become obsolete in the near future. To do the PESTL analysis of the health insurance sector in India. 1.• To study about the factors that influence the target customers in buying a health insurance policy so as to study which aspect should an advertising agency must focus upon. we only did the comparison between Max Bupa & Apollo Munich.3 METHODOLOGY OF THE STUDY My research is based on “Advertising Dynamics in Health Insurance Sector”. For this. The methodology used was mainly Factor analysis to determine the factors responsible to determine the best possible medium for a Health Insurance Product. • • To know more about the market drivers of the advertising industry. The research is based on primary data as well as secondary data. • • There is no method to control the extraneous variables. so it might not reflect the adequate response from the target respondents. so as to analyze which factors affect this sector so that the advertising agency can tackle the competition. • To analyse the qualitative and quantitative aspect of the competitive industry.

Media sector is no exception to the trend. the penetration of television and radio industry in the rural areas with the help of the technology and the rising levels of incomes of the people in India has facilitated the growth rate of Media and Entertainment Industry in India. the consumer mindset is changing due to increased exposure to global influences via media.2) INDUSTRY PROFILE 2. demographic. Thus. India has registered the fastest growth among major democracies. telecom and hotel among other sectors. In urban areas of India. The increasing rate of urbanization. and other interactions leading to higher aspirations. The latest report of FICCI-KPMG projects a 15% growth rate for industry by 2016. It has seen many changes in terms of economic. It represents the fourth largest economy in terms of “purchasing power parity'”. liberalization and others in the past decade which has led to the higher changes of growth to the industry. E&M industry is also expected to significantly benefit from this fast economic growth The Demographic Influence: Over the years. The Indian media and entertainment sector is one of the fastest growing sectors of the country with a healthy growth rate of 12%. technological. Over the past few years. rising aspiration levels and increase in the number of middleincome and upper-income households has led to growth in non-discretionary sectors like retail. The E&M industry generally tends to grow faster when the economy is expanding. The Economic Influence: The Indian Entertainment and Media (E&M) industry has out-performed the Indian economy and is one of the fastest growing sectors in India. Lifestyle changes brought about by changes in economic activity are also spurring growth of the Indian E&M industry. The Indian economy has been growing at a fast clip over the few years. The Indian rural market with its 3|Page . spending power has steadily increased in India. and the income levels too have been experiencing a high growth rate.1 INDIAN MEDIA & ENTERTAINMENT SECTOR Changing consumption patterns.

and basic cable analog to broadband internet.vast size of nearly three times of urban India. FDI was permitted in two important sectors . The change is already being witnessed from AM radio to FM radio. the use of Internet and personalized communication with the help of the same. The IEM has moved from the growth phase to the inflection phase. This growth is led by better technologies. 4|Page . are redefining the media and entertainment industry. Limited which has come up with first of its kind concept of personalized communication with the customers providing them free internet service while offering part of screen space on computer to the advertisers by setting up the kiosks at various places in the city. multiplexes. higher quality content. single screen theatres to multiplexes. One such company is city based Net Hot Zone Media Pvt. 100% FDI is now allowed for non-news publications and 26% FDI is allowed for news publications. The E&M industry has significantly benefited from this liberal regime. Many companies are taking initiatives to set up their business all over with the help of such technology. new distribution channels. Printings of facsimile editions of foreign journals are now also allowed in India. Animations. higher penetration and suitable regulations. All these factors will favor the growth of Media and Entertainment industry in India. This policy is helping foreign journals save on the cost of distribution while servicing the Indian market audiences more effectively. Films. In the print media segment. also offers a huge opportunity that has remained largely untapped due to reasons of accessibility and affordability.print media and radio. The Technological Influence: India is witnessing a revolution in this sector with the emergence of new technologies. Liberalizing Foreign Investment: Today India has probably one of the most liberal investment regimes amongst the emerging economies with a conducive FDI environment. television and other segments are already open to foreign investment. Exciting new developments in the technologies used in Media and Entertainment industry are taking place. In 2005.

Television. efforts to increase the penetration even slightly in these lower socio-economic classes are likely to deliver much higher results. Hence. It has become fiercely competitive and one of the country's fastest-growing economic sectors. The advertising industry in India is growing at an average rate of 10-12% per annum. A once-flagging advertising industry is booming in India. This new advertising is pleasing the growing middleclass. having a pitch to express to health 5|Page . Over 80% of the business is from Mumbai and Delhi followed by Bangalore and Chennai from the rest of the other major cities in the country. Health insurance is a field which has been experiencing alarming growth rates in recent years nationwide. The local firms are using all the available advertising tools from electronic to print. movie. video and radio jingles. newspaper and magazine advertising and neon-lit billboards in the cities are fueling a revolution in consumer products and spawning new styles of living . the absolute numbers are much higher for these classes. 2. one of the largest target populations in the world. outdoor advertising and even models.2 ADVERTISING IN INDIA The structure of the advertising industry in Asia Pacific has been affected by globalization and international alignments creating a smaller number of very large agencies and the growth of independent major media buying houses.changing food habits. watches and jewelry have all increased their average ad spending by almost 50% in the past two years. With the universal need for health care. simply due to the higher base. Low Media Penetration in Lower SECs: Though media penetration is poor in lower socio- economic classes. and which continues to be one of the most lucrative areas in which insurance agents and brokers can work. fashions and home décor. Local retailers in apparel. Indian Media and Entertainment industry is poised to register a tremendous growth in the coming years.Thus given the high rate of economic growth and technological developments. food. The advertising and promotional spending by local brands is substantial during the festival season and almost 70% of the spending is done between Septembers to January.

agents and groups can work towards identifying other health insurance advertising sources that present realistic competition. functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost.e. and direct marketing work together as a unified force. 2. While selling health insurance through traditional advertising strategies that incorporate emotional triggers and excellent placement are still important considerations within these fields. Outdoor. Once this figure has been produced. how large and varied an audience a campaign will address. avenues. IMC is the coordination and integration of all marketing communication tools. rather than permitting each to work in isolation. sales promotion. public relations. The Health Insurance sector usually use Print media. data driven method of communicating with the customers. we are focusing on only one aspect of IMC i. This management concept is designed to make all aspects of marketing communication such as advertising. One of the most important considerations when approaching health insurance advertising is the honest assessment of potential reach. Of course. TV. Advertising is a form of communication used to encourage or persuade an audience (viewers.3 INTEGRATED MARKETING COMMUNICATIONS IMC is defined as customer centric. the desired result is to drive consumer behavior with respect to a commercial offering. it is often the case that outperforming competition is a major factor in successful health insurance campaigns. that is. but agents and brokers working in this field will likely readily acknowledge the fierce competition that exists as a result of the volume of health insurance policies and packages being shopped for and sold. Most commonly. readers or listeners) to continue or take some new action.insurance prospects isn't especially difficult. Digital media to carry-out their campaigns. rising over competition can be a tall order. advertising. although political and ideological advertising is 6|Page . In this report. especially when it comes to the insurance world.

Ogilvy Group. 2. 7|Page .also common. public relations and market research networks. radio advertisement. Hill & Knowlton. Internationally. Omnicom. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties. magazines. This project focuses on WPP group which owns a number of advertising. outdoor advertising or direct mail. Commercial advertisers often seek to generate increased consumption of their products or services through "branding. both in terms of shortcomings and areas of excellence. Advertising messages are usually paid for by sponsors and viewed via various traditional media. and provide management of advertising agencies a better understanding of their industry. Nonprofit organizations may rely on free modes of persuasion. interest groups. one marketing campaign or even a line of commercials within a campaign. including BATES. television commercial. a SWOT analysis could also be commissioned to evaluate a single advertising agency. opportunities and threats of a business operation. or new media such as blogs and websites and text messages. such as a public service announcement (PSA). TNS and Young & Rubicam. weaknesses. The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. religious organizations and governmental agencies. and WPP. Although a SWOT analysis can be commissioned for the advertising industry as a whole. JWT." which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the minds of consumers. Burson-Marsteller. including mass media such as newspaper.4 SWOT ANALYSIS OF THE ADVERTISING INDUSTRY SWOT analyses evaluate the strengths. Publicis. A SWOT analysis of the advertising industry would address these four criteria. the largest ("big four") advertising conglomerates are Interpublic.

This section lists low staff turnover. Threats . Weaknesses . 8|Page . a growing economy. such as where improvements need to be made and where physical and human resources are not being maximized. a larger number of media outlets. less demand for marketing services. and how it is maximizing its physical resources and personnel. For example. opportunities may include rising marketing budgets. For example. this section lists low client satisfaction. high profit margins. low overhead.The weaknesses component should identify the advertising industry’s internal weaknesses. such as where the industry excels compared to other industries. higher health care costs or a change in tax legislation.The strengths component of the analysis should identify the advertising industry’s internal strengths. These examples may not apply to all advertising agencies. large client bases. these examples would be generalizations of the industry. For any advertising agency its strength is the satisfaction of its clients.The threats listed on a SWOT analysis lists the external elements of the advertising industry where the industry could potentially be harmed.The opportunities component lists how the industry could grow or expand. but for a SWOT analysis of the industry. low return on investment (ROI) or an untrained or aging employee base. The major opportunity for an advertising agency is to pitch new clients. multiple revenue streams.Strengths . lower advertising rates or new advertising mediums. The items listed in this section tend to be environmental factors that can be leveraged by the previously listed strengths. For example. Opportunities . product and service diversification and a sustainable business model. threats listed could include a shrinking economy. high production costs. high staff morale. The features listed here are areas of the industry where outside forces could possibly harm current growth or even harm the status quo.

Most advertising for the product occurs during this stage. Initially. while products in the growth stage are performing advertising efforts that sets its product apart from the competition.e. Rumford Baking Powder).. Creating brand awareness is a popular advertising objective as it is an indicator of consumer knowledge about the existence of the brand. At the end of the retentive stage a product may have passed its market life and die or may lose market share but still remain profitable or enter a newer pioneering stage and expand the market. During this stage the intent is to introduce ideas and educate the consumer as to the new product/service. If the product is introduced. Think of how Bayer aspirin entered a new pioneering stage when the advertising stressed the value of the aspirin in preventing heart attacks and strokes. Morton’s Salt. The product was not changed but the message was. It is during the competitive stage that the product reaches usefulness but not until the benefits over other brands must be established. Many products stay in this stage for years (i. advertising is used. which is an introductory stage. This may be done by product modification or by simply using new advertising. Usually the product is not usually profitable during this stage as the research and development costs still need to be off-set. Hence it is not necessary to change a product to enter a new pioneering stage. the retentive stage.5 ADVERTISING LIFE CYCLE It is important to consider what point of the cycle the product is in. The final stage. Companies with products in the decline stage generally cut back spending on advertising. 9|Page . a new product enters a pioneering stage. A newer competitive stage focuses on purchasing intent and a newer retentive stage relies on existing prestige to keep customers. Products in the mature stage use advertising as reminders to buy the product by offering coupons or special sales to existing customers.2. There is heavy advertising and promotional expenses required during this stage to create awareness. or reminder. then advertising efforts generally focus on bringing awareness of the product to customers. Little. The stage that the product is in does not have to do with time but rather what the consumer attitude and perception is at that point in time. attempts to retain patronage merely on the strength of reputation.

1 : Advertising Life Cycle 2. They include its cultural understanding of ill health and well-being. Where.within the government sector alone but must include incentives and disincentives for self care and care paid for by private citizens to get over ill health. reach of health services and quality and costs of care and current bio-medical understanding about health and illness. private out-of-pocket expenditure 10 | P a g e .Illustration No. Health care covers not merely medical care but also all aspects pro preventive care too.6 HEALTH INSURANCE SECTOR IN INDIA Health and health care need to be distinguished from each other for no better reason than that the former is often incorrectly seen as a direct function of the latter. Heath is clearly not the mere absence of disease. as in India. Nor can it be limited to care rendered by or financed out of public expenditure. extent of socio-economic disparities. Good Health confers on a person or groups freedom from illness .and the ability to realize one's potential. Health is therefore best understood as the indispensable basis for defining a person's sense of well being. The health of populations is a distinct key issue in public policy discourse in every mature society often determining the deployment of huge society.

that is adequate in terms of quality and access. as will be discussed below.dominates the cost financing health care. 11 | P a g e . Particularly. the health care system in India has been expanded and modernized considerably. is becoming more and more problematic. public delivery of health care is poor in quality. be left to be regulated solely by the invisible had of the market. Excessive financial burdens on households arise for a variety of reasons. However. and access without excessive burden. and access to an adequate level. there would still be some very heavy financial burdens on the consumers. Since independence. however. they can be blamed on India’s public health care system. What makes for a just health care system even as an ideal? Four criteria could be suggested.First universal access. presumably for reasons of inadequate financing. pursuit of quality care and cost effective use of the results of relevant research. Its demand and supply cannot therefore. Heath care at its essential core is widely recognized to be a public good. much remains to be done. Second fair distribution of financial costs for access and fair distribution of burden in rationing care and capacity and a constant search for improvement to a more just system. forcing consumers to visit the private and relatively more expensive treatments. At one level. the effects are bound t be regressive. recent household-level studies on utilization of health care indicate that even public care is not all that ‘free’ after all: there are many incidental expenses that consumers have to bear on their own. including provision for medical insurance at a much wider level. This highlights the need for alternative finances. At the same time. Nor can it be established on considerations of utility maximizing conduct alone. the provision of health care. Despite such a high share of expenditure by individuals. which is underfunded and suffers from quality and access problems. If all the quality and access differentials between public and private health care were to be wiped out. The growing evidence also suggests that more than three-quarters of this spending includes private 'out-of-pocket expenses'. with dramatic improvements in life expectancy and the availability of modern health care facilities and better training of medical personnel. Third training providers for competence empathy and accountability.

As per an estimate this segment has the potential to become an Rs. 2: Total Revenue Forecast for Health Insurance According to recent news report Health Insurance sector continues the fastest growing segment with annual growth rate of 42. 99% of Indians face financial crunch in case of any critical illness. Government has also started taking initiatives by investing huge sums of money in RSBY (Rashtriya Bima Swasth Yojna). According to World Bank Report.In 1980 most of the hospitals were government owned and treatment was free of cost.60000 crore industry by 2015. 70000 Premium in INR (Crores) 60000 50000 40000 30000 20000 10000 0 2008 2009 2010 2011 Year 2012 2013 2014 5000 6000 10000 14000 28000 20000 42000 60000 2015 Illustration No. 12 | P a g e . Hence. With the advent of private medical care the need for Health Insurance and various Insurance companies introduced Mediclaim Insurance as a product.3%. The main factors of growth are increased awareness. there is a need for health insurance.

3 Growth Forecast for Health Insurance 2.g.6. Rising healthcare costs have increased need for health insurance. • Rationalization of premium rates (e. increasing disease state.46% 45% 44% Growth Rate 43% 42% 41% 40% 39% 38% 37% 1 2 3 4 Years 5 6 7 8 Illustration No. Supporting Demographic Profiles (Prospering Middle Class.2 Market Restraints • • Inadequate healthcare infrastructure Limited reach 13 | P a g e . population) • Detariffing of the general insurance industry (which has increased emphasis and efforts by insurance companies towards health insurance and other personal lines of business).6. trend of upward revision in respect of Group Health policies) 2.1 Market Drivers • • • Increasing awareness of Health Insurance.

However in 2001 many foreign players started to come in India and made joint ventures with the Indian companies for eg.• • • Significant underwriting losses for Health Insurance business in India Lack of standardization and Accreditation norms in healthcare industry in India Insufficient data on Indian consumers & disease patterns resulting in difficulty in product development and pricing Post 2001 there were few players in the health Insurance sector of which most of them were govt. be it the producer. This was the time when competition started building in between these companies and need for proper marketing and advertising was felt both by the Govt. owned business. Max health care with BUPA international. Advertising plays a very important role in customer’s life. Health Insurance in India is unique and has a strong growth potential than other insurance markets. When they come to know about the range of products. 2. 14 | P a g e . Advertising is an important part. their kids. Let’s have a look on how and where is advertising important: 1. and their family. Advertising is important for the customers Just imagine television or a newspaper or a radio channel without an advertisement! No. If the product is not advertised. no one can any day imagine this. Apollo health care with Munich etc. they are able to compare the products and buy so that they get what they desire after spending their valuable money. One more thing is that advertising helps people find the best products for themselves. no customer will come to know what products are available and will not buy the product even if the product was for their benefit. advertising is important for the customers. Thus. Advertising is one thing which has become a necessity for everybody in today’s day to day life. players and the new private ones. the traders. or the customer. ICICI alliance with Prudential.7 IMPORTANCE OF ADVERTISING Advertising plays a very important role in today’s age of competition. Customers are the people who buy the product only after they are made aware of the products available in the market.

Advertising helps making people aware of the new product so that the consumers come and try the product. There are some social issues also which advertising deals with like child labor. • Advertising helps creating goodwill for the company and gains customer loyalty after reaching a mature age. 15 | P a g e . because • • Advertising helps increasing sales Advertising helps producers or the companies to know their competitors and plan accordingly to meet up the level of competition. liquor consumption. advertising plays a very important role in society. advertising plays a very important role for the producers and the sellers of the products. • If any company wants to introduce or launch a new product in the market. Advertising is important for the seller and companies producing the products Yes. family planning education. • The demand for the product keeps on coming with the help of advertising and demand and supply become a never ending process. 3. etc. thus.2. Advertising is important for the society Advertising helps educating people. girl child killing. smoking. advertising will make a ground for the product.

In 2007 WPP Digital was created to develop the Group's digital capabilities. Many good campaigns and advertisements have been produced by the agency for different clients such as Max Bupa Health Insurance. was refined and changed to "the changeage people". In 1985 Martin Sorrell. In 2003. Virgin Mobile. bought a controlling stake of just under 30% at a cost of $676.000. Hill & Knowlton and MRB Group.1 WPP & Bates Wire and Plastic Products plc was founded in 1971 as a manufacturer of wire shopping baskets. WPP buys Bates Worldwide and immediately merges Bates Worldwide offices into its other advertising groups. DEN Digital. In 1987 the company acquired various other companies including J. Its previous positioning. it is also a great opportunity to work with them as there is lot to learn and grow personally as well as professionally. Currently they are based in only Asia-Pacific region. Sorrell had been the financial director for the advertising agency Saatchi & Saatchi from 1977 to 1985. searching for a listed company through which to build a worldwide marketing services company. In 1989 it acquired Ogilvy Group and in 1998 formed an alliance with Asatsu-DK Inc. Walter Thompson (JWT). the agency formerly known as Bates 141 was rebranded as Bates. The company was first listed on NASDAQ in 1988. As the agency is in a growing phase. etc. this was the rebranding practice by Bates to re-establish it. managing its takeovers of companies in the US and the UK. Hitachi air conditioner. Zen Mobile. BatesAsia 141 is born. The holding company was renamed WPP Group and in 1987 Sorrell became its chief executive. In 2011. "the change agency". of Japan.3) COMPANY ANALYSIS 3. ONGC. The current clients of BATES include: • • • Max Bupa Health Insurance Radico Khaitan Hitachi 16 | P a g e .

17 | P a g e . some small. career. TVCs. and indeed. and professional satisfaction. driven by the spirit of enterprise and focused on people and service-oriented businesses. IVR.3 ADVERTISING AGENCIES The decision whether or not to use an advertising agency depends both on a company's advertising strategy and its financial resources. development. etc. teasers. health insurance agents can achieve successful advertising campaigns capable of vastly improving sales ratios. pen stands & coffee mugs with max bupa logo on it. Max India Limited is a multi-business corporate. and buying health insurance both on and offline. standees. (Max Bupa) is a joint venture between Max India Limited and the UK based healthcare services expert. and place advertising so that it will meet established objectives better than most small businesses can do on their own. The Company’s vision is to be one of India’s most admired corporates for Service Excellence. Bupa. shopping for.and mid-sized businesses have found that agencies can be helpful in shaping and monitoring advertising strategies. Still. posters. banners. stickers. Max Bupa is Bates’s client since 2009 and Bates has performed its creative duties by creating various claim forms. Health insurance advertising may seem like a daunting field at first glance. sales kit. but of course the expense associated with soliciting such talent is often prohibitive for smaller companies. individual efforts can feel lost in a sea of similar attempts. and applying this information to advertising campaigns. backdrops.2 MAX BUPA Max Bupa Health Insurance Company Ltd. An agency has professionals who can organize. coasters. prospectus. with the sheer amount of people selling. But through taking the time to make honest assessments about competition and audience. create. 3.• • • Delhi Police DEN Digital ONGC 3.

• Trial Continuity Brand switch Switching back Trial: The companies which are in their introduction stage generally work for this objective. When a new organization enters the market for ex.Some of the WPP Advertising Companies in India are: 1. 4. the advertising agency use flashy and attractive ads to make customers 18 | P a g e . The trial objective is the one which involves convincing the customers to buy the new product introduced in the market. 5. Ltd. Madison Advertising Pvt. 3. and the agency's general advertising philosophy. Euro RSCG Advertising Pvt. An advertising agency can also help track and analyze the effectiveness of the advertising.4 OBJECTIVES OF AN ADVERTISING AGENCY Four main objectives of advertising are : i. Bates India Pvt. Ltd 10. length of time that the principals have been with the agency. size of their clients. Ogilvy & Mather 6. Ltd. 2. iii. Max Bupa. Some criteria to consider when choosing an agency include size of the agency. Leo Burnett India Pvt. Ltd. agencies are useful when a business is planning a broad advertising campaign that will require a large amount of resources. Crayons Advertising & Marketing Pvt. iv. 3. McCann-Erickson India Ltd 9. DDB Mudra 7. Lowe-Lintas India 8. ii. Ltd. J.Walter Thompson (JWT) Because of their resources and expertise.

Here.5 SWOT ANALYSIS OF BATES Strengths • • • High satisfaction of its clients There are many brands which are associated with Bates for a long time High staff morale 19 | P a g e . At this stage. some reworking done on packaging. the advertisers try to convince the customers to switch from the existing brand they are using to their product. Bates has created many TVCs focusing on the different features of the different policies like heart attack. billboards. child benefit plan etc. • Switching back: This objective is for the companies who want their previous customers back. Bates created pen stands (with max bupa logo on it). etc. who have switched to their competitors. Bates created some franchises and posters for Max Bupa employees to motivate them to bring back the customers. 3. Basically. advertising is a very artistic way of communicating with the customers. to serve this purpose. e-mailer posters. summit reports. kiosks etc are used to differentiate from the competitors. new advertise. pension plus. teasers. Different Banners.take a look on the products and purchase the policies for trials. The advertising agency does its research and finds some differentiated factors in the policies of Max Bupa like portability for which the digital medium/website was used. etc. • Brand switch: This objective is basically for those companies who want to attract the customers of the competitors. The advertisers also use different ways to attract the customers back like discount sale. Max Bupa has brought in something new in the product and the advertisement so that the existing customers keep buying their products. calendar. The main characteristics one should have to get on their objectives are great communication skills and very good convincing power. • Continuity: This objective is concerned about keeping the existing customers to stick on to the product.

• • • Low overhead Multiple revenue streams Sustainable business model. Weaknesses • • High production costs Low return on investment (ROI) Opportunities • • • • • • • Rising marketing budgets Tapping rural markets Large client base Growing economy Large number of media outlets Lower advertising rates New advertising mediums Threats • • Changing trend of advertising Competition from other advertising agencies 3. Success in the advertising industry requires perfection in different parameters. Clients 20 | P a g e . India still has a lot of potential for the advertising industry as there is still untapped market.6 CRITICAL SUCCESS FACTORS Success factors are the essentials that a company must do in order to be successful in the industry.

and pressure groups that influence and limit various organizations. Government agencies. For ex: DEN digital came up with the ad stating “Get DTH Quality at the price of cable”. trade restrictions. It can bomb the campaign or make it a success. Specifically. its proactive activities distinguish it from others. political factors include areas such as tax policy. and political stability.7 PESTL Analysis of The Health Insurance Sector Political Legal Environment: This Environment consists of Laws. it’s very important to meet their clients’ needs and understand their mindset for how they want their product to be positioned in the minds of its targeted customers. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does 21 | P a g e . • Creativity Creativity is the primary focus of any advertising agency. labor law. this distinguished DEN from other digital networks because of the agencies’ proactive thinking. Some of the success factors include: • Proactive With the highly competitive scenario in the advertising industry. and no other advertising agency could compete to it during that campaign.expect proactiveness. For ex: Vodafone’s “Zoo Zoo campaign” became a highly popular and successful because of its new and creative idea. 3. tariffs. • Client Servicing For any advertising agency. creativity and technologically advanced from the agency. Political factors are how and to what degree a government intervenes in the economy. Sometimes these laws also create new opportunities for business. The agency should be capable to have a futuristic vision of the products. individuals and industries on a larger scale. environmental law.

and infrastructure of a nation Political Factors affecting the Health Insurance Sector The Insurance Sector in India is governed by IRDA (Insurance Regulatory Development Authority of India) which keeps a check on the working of these companies and also frames different rules and regulations for its smooth functioning. interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Seeing that the free look period (7 day) which is given by these companies to the customers to look that the policy sold to them is what they have demanded. education. Economic Environment: Economic factors include economic growth. Whenever a need is felt to repair the whole system or a part of it or to regulate it more strictly. launching the RSBY (Rashtriya Swasth Bima Yojna) scheme however efforts seems to be very less as compared to the potential of the sector. However many of the companies feel that many times IRDA regulations are very strict to follow and they are unreasonable. interest rates. many agents and third parties were taking advantage of it by sending it after 7 days so that the policy cannot be cancelled and the customer has to pay the premium on what is sold to them. For example. The reason is because IRDA makes the rules in accordance with the customers and not according to these companies. 22 | P a g e . IRDA came up with a regulation to send the policy directly from the insuring company to the customer. exchange rates and the inflation rate. Government has taken many initiatives in the betterment of this sector for e. These factors have major impacts on how businesses operate and make decisions.g. For e. Then comes the role of government in regulating the Health Insurance sector. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. Furthermore. These factors affect the purchasing power of the potential customers and Firm’s cost of capital.not want to be provided (demerit goods).g. rules are formed. governments have great influence on the health.

Furthermore.Economic Factors affecting Health Insurance in India The condition of economy plays a very important role in this sector. They do not have enough money when it comes to get proper Health care. population growth rate. The main reason why people see health Insurance as an investment is because it gives Tax Exemption. The priority is given to other aspects of life such as paying EMI for the house. A major proportion of population of India is mainly under the category of 25-35. higher education of children or purchasing a car. 23 | P a g e . Another social factor is the vast rural India which is totally different from its urban counterpart. Social Factors affecting Health Insurance in India Social Factors play a very important role while deciding on the target population. career attitudes and emphasis on safety. Many people take Health Insurance as an investment which means that if the economy is performing well then only they will buy Health Insurance. It shapes the beliefs. Social Environment: Social factors include the cultural aspects and include health consciousness. Innovation and customizing their products according to their needs can be possible way of establishing in this segment. In India people do not think of health Insurance as a necessary need mainly because they think that nothing can happen to them. values and norms that largely define consumer tastes and preferences. age distribution. companies may change various management strategies to adapt to these social trends (such as recruiting older workers). For example. Moreover there is huge potential in this segment which is not tapped by the Health Insurance companies. This mindset is very hard to change and is the main barrier for the Health Insurance companies. Trends in social factors affect the demand for a company's products and how that company operates. The mentality of the customer in this part is totally different. Since the economy of India is performing well it is not very hard for them to attract to customers. At this age people do not think of Health Insurance as a necessity because they are involved in building their careers and looking up for future prospects in life. an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor).

Functional.Technological Environment: Technological factors include technological aspects such as R&D activity. the competitors can be differentiated by their advertising strategies on the scale of Life-space. Generalist and Specialist.1 QUALITATIVE APPROACH The quantitative analysis is done on the basis of the Ad campaigns undertaken by the companies. Technological Factors affecting Health Insurance in India Looking at the different kinds of customer. the functional scale represents that company which focuses on just the selling aspect. Generalist scale represents the general insurance companies and specialist sells only the health insurance companies. 3. These companies just care for their revenue and don’t actually think of the customer’s requirements. technological shifts can affect costs.8 COMPETITIVE ANALYSIS This analysis is divided into quantitative and the qualitative approach. There is huge potential for online marketing in this segment. 24 | P a g e . automation. technology incentives and the rate of technological change. Furthermore. quality. The life-space here means that the company’s main objective is to give their customers such policies which could actually fulfill their requirements. and lead to innovation.8. They can determine barriers to entry. Now-a-days Insurance products are being sold through Internet which again demands technological advancements. On the other hand. It is explained as follows: This is the qualitative approach to get the insight to the closest competitors of Max Bupa in the health Insurance sector. Here. many of them are those who are more tech-savvy and like to base their purchasing decision on the same. 3. minimum efficient production level and influence outsourcing decisions.

On the other hand. companies like Max Bupa and Apollo Munich advertise for their customers. which means that most insurance companies are pushing the policies and the terms & conditions of their policy. 4: Perceptual Map From the perceptual map above. We can see that most companies falls in the Generalist-Functional Generalist quadrant. we have observed that Max Bupa and Apollo Munich are the closest competitors although Star health is also close but it uses the approach of being a sellingselling oriented organization.Perceptual Map Illustraion No. 25 | P a g e .

com/watch?v=PdZ3Xtf055k&feature=related 26 | P a g e .• For ex: Apollo Munich Insight: People are afraid of falling ill second time as they are not sure about getting the insurance covers again Proposition: Even if you use the the entire insurance amount in the middle of the year.com/watch?v=zoBzGhGkI5M • For ex: BHARTI AXA Insight: Not all critical illness policies are considerate Proposition: Don’t get limited with critical illness when Bharti Axa provides complete critical illness.youtube. Proposition: We care for you and your family Resolution: Don’t worry about your family. Resolution: No fear of feeling helpless of falling ill twice Positioning: Unbelievable URL: http://www.com/watch?feature=player_embedded&v=e0bXZ6SBavA • For ex: Max Bupa Insight: Family members are worried for their loved ones. we will take care of them Positioning: Your health first URL: http://www. Resolution: Don’t worry about any critical illness Positioning: Suraksha ka naya nazariya URL: http://www. Apollo Munich will restore the entire amount.youtube.youtube.

22 16.08 1.04 3.3.99 3.12 11.36 1. 8.00 -11. Max Bupa has the highest and an 27 | P a g e . 3. 13. 14. 6.00 69.00 24. New India. Company PRIVATE TATA-AIG Bajaj Allianz Bharti AXA Cholamandalam Future Generali HDFC ERGO ICICI Lombard Reliance Royal Sundaram IFFCO Tokio PUBLIC United India National New India Oriental SPECIALIZED Star Health & Allied Insurance Apollo Munich Max Bupa Growth % 24. 4.00 -9.71 1.00 173.00 28. MARKET SHARE OF HEALTH INSURANCE COMPANIES S. 16.00 Market Share % 1.00 59. 5.28 1. 12.07 17.89 We can see that ICICI Lombard.48 0. 7. 10. 11.00 25.73 10. 2.8.67 1.00 17. 15.00 12.00 31.00 357.00 41. 17.00 -2. National and United India are the most dominant market players with highest market penetration in India.00 26.48 3. Earlier only the government players used to have the dominance but now we see that the private players are starting to come up as their growth rates are increasing like ICICI Lombard.78 0. 9.04 8.No. 1.71 15.00 -8.2 QUANTITATIVE APPROACH The quantitative analysis is done on the basis of the market share and the growth rate of the various insurance companies.

00 50.00 150. Max Bupa is far behind in this race and needs to target a wide market share now.00 -50.00 Illustration No.00 300. 5: Growth Rate of Health Insurance Companies 28 | P a g e . Growth Rate 400. This is a healthy sign to say that new companies are penetrating the market in a good way.00 100.00 200.00 250.impeccable growth rate beating all the other market players.00 350.00 0. Although.

195 Cr up from Rs. and is the market leader among Pvt. • The Total Market share of 4 PSUs is maintained @ 59% in Apr’11 to Mar’12.78% from 1. insurers • Reliance General Insurance & Iffco Tokio health insurance GWP has declined by 11% and 9% respectively in Apr’11 to Mar’12 period compared to Apr’10 to Mar’11 • Reliance GWP has de-grown due to the sharp increase (average of 30%) in its premium rates.33%) and United India (16.23% to 0. • Bharti Axa growth has come through their focus on Critical Illness Product & Group Health Insurance portfolio • ICICI Lombard has taken over Oriental in terms of market share.2046cr growth of health insurance GWP.89% • Although Max Bupa market share is less than 1% in overall business.08% from 0. registering 18% growth in the period Apr’11 to Mar’12 • The largest shifts in market share during Apr’11 to Mar’12 period compared to Apr’10 to Mar’11 towards Health Insurance were seen at Bharti Axa (1. Apollo Munich & Max Bupa.43%).148 Cr in Apr’10 to Mar’11. Bharti Axa & Cholamandalam.11.48% from 2.08%) • Max Bupa market share has also gone up from 0. This is the 5th consecutive Year wherein PSUs together are holding around 58-60% market share • Standalone Health Insurance companies have contributed to 12% of the health insurance sector.Key Observations • The total Health Insurance premiums reached Rs.71% from 15. have grown by 93% 29 | P a g e . it has contributed 4% of the Rs. Cholamandalam MS (1.13.47%). This is comparable to the contribution of larger private insurers like HDFC Ergo. Apollo Munich (3.

6: : Market Share of Health Insurance Companies 30 | P a g e .Market Share Apollo Munich 3% 17% 3% 1% 11% 9% 1% 2% 2% 10% 15% 1% 1% 3% 2% 1% Bajaj Allianz Bharti AXA Cholamandalam Future Generali HDFC ERGO ICICI Lombard IFFCO Tokio Max Bupa National New India Oriental Reliance Royal Sundaram Star Health & Allied Insurance 18% TATA-AIG United India Illustration No.

• Account services Agencies appoint account executive to liaise with the clients. Creative departments frequently work with outside design or production studios to develop and implement their ideas. The art director and copywriter report to a creative director. The account executives need to be sufficiently aware of the client's needs and desires that can be instructed to the agency's personnel and should get approval from the clients on the agency's recommendations to the clients. and the press). The account manager will develop a creative brief. the creative teams will concept ideas to take to their creative director for feedback. They work closely with the specialists in each field. but its employees are the people who have contacts with the suppliers of various creative media. The creative process forms the most crucial part of the advertising process.1 AGENCY DEPARTMENTS • Creative department The people who create the actual ads form the core of an advertising agency. and art directors have the word "art". occurring several times before several ads are set to present to the client. outdoor. this work is 31 | P a g e . • Media services The media services department may not be so well known. when dealing with the major media (broadcast media. usually about a page that gives direction to the creative team. they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. Modern advertising agencies usually form their copywriters and art directors into creative teams. For example. one does not necessarily write the words and the other draw the pictures. However.4) DYNAMICS OF THE ADVERTISING MEDIUMS 4. they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). This can often be a back and forth process. Once they receive the creative brief from their account team. The creative brief often includes information about the target audience and their attitudes and behaviors. Although copywriters have the word "write" in their job title.

Larger agencies attract people who specialize in one or the other.usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can. in which. gets produced. They are responsible for contracting external vendors (directors and production companies in the case of TV commercials. They can often be restrained by the client's budget. and establish or modify a business' image. The production department. ii. Internet advertising. etc. ensures the TV commercial or print ad. In some agencies.. photographers and design studios in the case of the print advertising or direct mailers). or research. 32 | P a g e . Modern agencies might also have a media planning department integrated. the ads created by the copywriter and art director would be nothing more than words and pictures on paper. planning. • Other departments and personnel In small agencies. promote awareness of a business and its product or services. stimulate sales directly and "attract competitors' customers". most advertising strategies focus on achieving three general goals: i. in essence. senior producers are known as "executive producers" or "content architects". employees may do both creative and account service work. 4. Producers are involved in every aspect of a project. which does all the spot's planning and placements • Production Without the production department. from the initial creative briefing through execution and delivery. the media strategy will inform the creative team what media platform they'll be developing the ad for. etc. iii.2 WORKFLOW STRUCTURE OF AN ADVERTISING AGENCY Today. and indeed include a number of people in specialized positions: production work.

In other words. and advertising message. ii. as well as those who decide what product will be bought (but don't physically buy it). and the forces acting upon any purchasing decision. and remind the consumer.Considering the consumers' behavior an advertiser needs to examine the consumers' awareness of the business and its competition. ethnicity. spouse. communication media. such as children. and the ability to adapt to new market trends. These elements are at the core of an advertising strategy. In order to identify the target consumer. Therefore. And key to these aims is creativity. Demographics. advertising seeks to inform. and are often referred to as the "creative mix." Again. and the types of appeals that are likely to convince the consumer to give the advertiser's product or service a chance. 33 | P a g e . With these concrete objectives. and hobbies. it is important to define three general criteria in relation to that consumer: i. It includes the person who ultimately buys the product.First of all. providing ample opportunity for this consumer to become acquainted with the advertising message. most businesses follow a general process which ties advertising into the other promotional efforts and overall marketing objectives of the business. what most advertisers stress from the beginning is clear planning and flexibility. and friends. With these aims in mind. A rigid advertising strategy often leads to a loss of market share. persuade. the core elements of the advertising strategy need to mix in a way that allows the message to envelope the target consumer. the following elements of the advertising strategy need to be considered: target audience. The target consumer is a complex combination of persons. the planning department carries out a research by which they find out who are the target people for the product/service to be promoted. Behavior. The following are the steps which an advertising agency undertakes for a new client: 1) TARGET CONSUMER. product concept. the type of vendors and services the consumer currently uses. and those who influence product purchases. job. income. gender.

buses). Needs and Desires. In addition to marketing objectives and budgetary restraints. by day. 3) COMMUNICATION MEDIA. brand executive and the creative department decides upon the best communication media to be executed for a certain product. financially in reach. etc. month) when advertisements are inserted into media vehicles and delivered to target audiences. is "the combination of specific times (for example. How the product is positioned within the market will dictate the kind of values the product represents. 2) PRODUCT CONCEPT.An advertiser must determine the consumer needs in practical terms and in terms of self-image. Radio. and the kind of pitch/message that will convince the consumer that the advertiser's services or products can fulfill those needs. Direct mail. week. and most likely to reach the target audience.The communication media is the means by which the advertising message is transmitted to the consumer. an advertiser needs to schedule the broadcasting of that advertising. The client. After deciding on the medium that is: i. Promotional videos. Outdoor advertising billboards. The media schedule." 34 | P a g e . advertisements on public transportation (cabs. ii. Product concept grows out of the guidelines established in the "positioning statement". the characteristics of the target consumer also needs to be considered as an advertiser decides what media to use. World Wide Web.The next step after the consumers are targeted is the concept of the product.iii. as defined by Hills. infomercials. and thus how the target consumer will receive that product. The types of media categories from which advertisers can choose include the following: • • • • • • Newspapers (both weekly and daily) and magazines.

the easier the message will be to read. • 5) COPY. art. This combination is best realized after the target consumer has been analyzed. following conventional grammatical guidelines. and the media and vehicles have been chosen. “It’s time to put your health first” is the final quote which is displayed on its posters. rather than negative manner) has been shown to be the most effective. When writing the copy. For ex: Max Bupa’s message is that health insurance is necessary and important for everyone. banners etc.An advertising message is guided by the "advertising or copy platform. and production values. The copy content needs to be clearly written. Many companies utilize a theme or a slogan as the centerpiece of such efforts. the product concept has been established. emphasizing major attributes of the business's products or services in the process. copy.When composing advertising copy it is crucial to remember that the primary aim is to communicate information about the business and its products and services. ensuring that the advertising fits the overall marketing objectives. This idea/message which is to be presented to the target audience is rephrased in a confined message. However. For Max Bupa. the advertising message can be directed at a very concrete audience to achieve very specific goals." which is a combination of the marketing objectives. This is the work of a copywriter. Of course. and act upon. many small businesses don't have the up-front capital to hire such an agency. effective headings allow the 35 | P a g e . direct language (saying exactly what you mean in a positive. The three major areas that an advertiser should consider when endeavoring to develop an effective "advertising platform": • • What are the product's unique features? How do consumers evaluate the product? What is likely to persuade them to purchase the product? How do competitors rank in the eyes of the consumer? Are there any weaknesses in their positions? What are their strengths? Most business consultants recommend employing an advertising agency to create the art work and write the copy. and therefore need to create their own advertising pieces. understand. The theory here is that the less the audience has to interpret.4) ADVERTISING MESSAGE. or unravel the message. At this point. The "selling proposal" can act as a blueprint here.

There are several reasons for advertising some of which are as follows: • Increasing the sales of the product/service • Creating and maintaining a brand identity or brand image. 4. if a business has the resources available. For ex: For Max Bupa. • Communicating a change in the existing product line. the advertising strategy can be developed to meet predetermined marketing objectives. a business knows that they only have a certain amount of money for advertising then the budget will tend to dictate what advertising is developed and what the overall marketing objectives will be. it is usually best to put together an advertising budget early in the advertising process.. When to make a budget decision depends on the importance of advertising and the resources available to the business. Bates had created various claim forms. for which the content was checked by the copywriter and only after the client was fully satisfied with the copy of the brochure. its colors. 7) ADVERTISING BUDGET. creative images etc.3 VARIOUS KINDS OFADVERTISING Advertising is the promotion of a company’s products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product/services to the customers. he approved the layout and the artwork was taken out and was printed. 6) ART WORK AND LAYOUT. On the other hand. fonts. When the client approves the copy by the agency. sales brochures etc. for instance. For small businesses.The advertising budget can be written before or after a business owner has developed the advertising strategy. If.reader to get a sense of the advertisement's central theme without having to read much of the copy.An artwork is the final printable form of the layout. • Increasing the buzz-value of the brand or the company. • Introduction of a new product or service. then an artwork is created after which the copy is finally printed for display. 36 | P a g e . Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget.

Often the newspapers and the magazines sell the advertising space according to the area occupied by the advertisement. Mentioned below are the various categories or types of advertising: 4.Thus.3.1 Print Advertising – Newspapers. several reasons for advertising and similarly there exist various media which can be effectively used for advertising. the position of the advertisement (front page/middle page). In addition to this. Brochures. Fliers The print media have always been a popular advertising medium. The price of print ads also depend on the supplement in which they appear. 37 | P a g e . Advertising products via newspapers or magazines is a common practice. Based on these criteria there can be several branches of advertising. For instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership. for example an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre quality paper. the print media also offers options like promotional brochures and fliers for advertising purposes. as well as the readership of the publications. Magazines.

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

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

4.3.4 Covert Advertising – Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly ( or

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sometimes evidently) showcased in the entertainment show. Some of the famous examples for this sort of advertising have to be the appearance of brand • • Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report Cadillac cars in the movie Matrix Reloaded

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

4.3.6 Public Service Advertising – Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messages about important matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. Ogilvy once said,

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it is much too powerful a tool to use solely for commercial purposes. 4. there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products." Today public service advertising has been increasingly used in a non-commercial fashion in several countries across the world in order to promote various social causes. Using celebrities for advertising involves signing up celebrities for advertising campaigns. However. Priyanka Chopra is riding high these days with back-to-back successes and endorsements and inaugurations and everything else under the sun. the actress makes it a point to keep her feet grounded and do her bit for the society.7 Celebrity Advertising Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements. 41 | P a g e . which consist of all sorts of advertising including. She participated in “SAVE CHILDREN” campaign.3. television ads or even print advertisements."Advertising justifies its existence when used in the public interest .

it is just 0. However though Indian Entertainment and Media (IEM) is one of the fastest growing sectors in the economy.4 GROWTH OF VARIOUS ADVERTISING MEDIUMS The Indian Entertainment and Media Industry have recorded a growth of 17 per cent in 2007. radio. over 2006.4 trillion media industry. print.7% of the global US$ 1. music and internet. 42 | P a g e . Out of home advertising (OOH) and live entertainment are too gaining importance.4. the industry recorded a cumulative growth of 18% on an overall basis. The IEM is divided into different segment like Television. In the last four years (2004 -07). films.

Advertising Revenue (INR Billion) 140 120 100 80 60 40 20 0 2009 2010 2011 2012 TV IllustrationNo. While penetration.As per PwC. Internet. the advertisement rates have declined. Experts believe that the Rs 329 billion TV industry will grow significantly as its penetration is still around 60% in India. number of C&S homes and number of channels (623) has significantly gone up. As mentioned above. Television and print would continue to remain the largest segments. radio and OOH would also witness high growth rates. 7: Advertising Revenues for Various Mediums 43 | P a g e . Internet penetration would take time to mature. its growth was at a CAGR of 18% till 2011 to touch Rs 1 trillion from Rs 436 b in 2006. Given below is the breakup of the revenues among the various segments and the growth rate till 2011. possibly due to global slowdown. Mandatory digitization of cable networks in India could prove to be a major game changer of the business. TELEVISION Television continues to dominate the media domain in terms of growth and penetration along with print as well as the proportionate share in the total advertising pie. It represents around 45% of the total media industry. It continues to remain the largest medium for media delivery in India in terms of revenue. However. India will be one of the key drivers in pushing the global entertainment and media industry.

Print strongly dominates the key Indian markets. education. The good news. Rockstar and Kolaveri Di contributed significantly to the sector. Advertising Revenue (INR Billion) 180 160 140 120 100 80 60 40 20 0 2009 2010 2011 2012 Print IllustrationNo. films are expected to grow at 10. Moreover. Big film and music launches like Ra One. India is the only market where the print medium continues to grow at a slow. 44 | P a g e .4%.PRINT The Rs 209 billion Indian Print media industry grew by a promising 8. however.5% growth. slightly lower than the projected 8.1% CAGR from Rs 93 billion in 2010 to Rs150 billion in 2016 coupled by the music industry which registered a 5% growth over the previous year and touched Rs 9 billion in 2011. 7: Advertising Revenues for Various Mediums FILMS The film industry was arguably the most benefited sector as against the dominant print. automobile. The industry saw a 22% increase in the number of advertisers last year. but steady rate in India. In terms of revenue generation. FMCG and Real Estate continue to remain the largest spenders on the print media. Despite a large number of players entering every year. TV and outdoor mediums in 2011. is that despite negative speculations.

growth in Smartphone usage and mobile Internet impacted Internet and average time spend on Internet significantly. Advertising on the medium grew by over 40% and surprisingly. Though OOH continues to be used by various brands. The industry saw a reduction in spends by telecom players who have been the biggest spenders on the medium in the last five years. approximately 5% of the total spends of Indian advertisers. What could be the next big thing on Internet is an adverse impact on traditional methods of print and advertising as many youth-oriented advertisers used innovative and interactive means to advertise online. Print and outdoor media 45 | P a g e . The report reveals that the growth trajectory of the medium continues. DIGITAL Digital is clearly the next destination of advertisers. Advertisers are also spending heavily on malls. Increase in 3G penetration. there are still 4-5 industries which dominate its usage.6% in 2011 over 2010. Airport and other transit media have been growing most consistently. digital ad spends reached a new high.OUTDOOR The report reflects that the outdoor media sector was hit worst by the economic slowdown and registered a growth of 7.

7: Advertising Revenues for Various Mediums RADIO The radio industry.were less preferred for a few launches during the IPL and Cricket World Cup. These factors along with privatization of a large number of frequencies as part of the FM II Radio Policy will drive growth. visual radio and community radio have also begun to hit the market. where a huge chunk of the ad pie was spent. 46 | P a g e . New concepts like satellite radio. the government opened up the sector to foreign investment along with migration to a revenue-share scheme. is projected to grow with a high CAGR till the year 2012. fuelled by the positive FM-II Radio Policy. Advertising Revenue (INR Billion) 25 20 15 10 5 0 2009 2010 2011 2012 Digital IllustrationNo. In 2005.

7: Advertising Revenues for Various Mediums OUT OF HOME Globally. outdoor advertising is very popular as corporations abroad have recognized the outdoor media as a very popular medium of advertising. Advertising Revenue (INR Billion) 25 20 15 10 5 0 2009 2010 2011 2012 OOH IllustrationNo. But in India in spite of OOH being very effective and very economical in comparison to newspapers and television it has not gained momentum as compared to other segments.Advertising Revenue (INR Billion) 14 12 10 8 6 4 2 0 2009 2010 2011 2012 Radio IllustrationNo. 7: Advertising Revenues for Various Mediums 47 | P a g e .

MUSIC While physical sales in the music industry continue to be hampered by piracy and falling prices. The total music industry is currently estimated to be worth around Rs 740 crore and is expected to grow at a CAGR of 4% in the next five years.sometimes also called event management- growing at a fast and steady rate. OTHERS Amongst the other segments. the projected yearly growth rate of the ad industry is to stabilize at 11%. However. films. INTERNET Internet advertising spending is set to grow several folds. digital music has witnessed a surge that will propel this industry in the next five years. the country is not ranked amongst the top 10countries in terms of average monthly hours online per unique visitor which may hamper the growth of internet advertising as compared to others media types. LIVE ENTERTAINMENT Live entertainment is a huge source of revenue for the global Media and is Entertainment industry. especially in India’s entertainment sector. and sports events are increasing rapidly. The number of corporate awards. It is growing by 4% in year 2010. Until such time. television. albeit from a small base. the animation and gaming industry is expected to show the maximum growth. The animation and gaming industry is projected to grow from the present size of Rs 11 b to Rs 29b by 2012. even though India is ranked eighth in the world in terms of number of internet users. helping the sector grow at a fast rate. implying a 22% cumulative annual growth over the next five years. 48 | P a g e . Live entertainment . The current live entertainment segment of the Media and Entertainment industry comprises a small number of large event management companies and a large number of smaller companies.The growth of online ad industry is estimated to shoot up to 43% by the year 2012.

4.5 PROMOTIONAL PRACTICES (By bates for Max Bupa) LOGO 49 | P a g e .

STANDEES 50 | P a g e .

POSTERS 51 | P a g e .

BANNERS 52 | P a g e .

BACKDROPS 53 | P a g e .

OTHERS… 54 | P a g e .

Pen Drive Layout Coster 55 | P a g e .

Post it Streamer Discount Coupons 56 | P a g e .

news. or increased digitization of film exhibition . digital film prints. etc. This is gradually impacting the way content is being created and distributed as well. online advertising spends have seen a spurt in growth viz-a-viz spends on traditional media. There has been increased proliferation and consumption of digital media content – be it newspapers and magazines. average newspaper cost for print and average ticket price for films continue to be low on account of hyper competition in these industries. There is a greater need for integration and innovation across traditional and new media. tablets. Multiple media including TV. gaming devices. Segments like radio and a significant portion of online content are available free of 57 | P a g e . and online video and music or entirely new categories such as social media.6 KEY TRENDS • Growth in digital content consumption across media Digital technology continues to revolutionize media distribution – be it the rapid growth of DTH and the promise of digital cable. there is a heightened need to engage them across platforms and experiences.4. • An advertising revenue dependant industry The ARPU (Average Revenue Per User) for television. Accordingly. and the development of targeted media content. • Rise of new age user devices Smart phones. radio. with changing media consumption habits and preferences for niche content. • New age consumers adapting themselves to the newer technologies As Indian consumers evolve. all form the foundation of a new wave in media usage. Media companies today have no choice but to provide more touch points to engage with audiences. music etc are being impacted with this change.and has enabled wider and cost effective reach across diverse and regional markets. National advertisers are looking at these markets as the next consumption hubs and the local advertisers are learning the benefits of marketing their products aggressively. films. • Regionalization Regional television and print continued its strong growth trajectory owing to growth in incomes and consumption in the regional markets. PCs.

to purchase or to consume that particular brand. the Indian consumer is still not used to paying for content and hence the industry players are sensitive to the impact of the slowdown which affects the budgets of advertisers. It usually includes the name of a product or service and how that product or service could benefit the consumer. In the previous years the marketers were concerned about reaching more target audience. Advertising is dead. While some old trends have been modified some new trends have evolved. to persuade potential customers. • Awaited regulatory shifts Lastly.cost to consumers. Different types of media can be used to deliver these messages. apart from the shifts in consumer preferences. The old advertising trends indicate a very simple equation i. The competition is going tough day by day. These shifts are expected to be game changers in terms of how business is being done currently and what could be the path going forward. marketers are trying to find out more effective ways to reach the target audience. radio. It can no longer run on the good old `buy my product' themes. Advertising is changing its avatar. readers or listeners to take some action. But the trends in advertising are changing over time. Thus. There is a continuous growth in advertising trends with the passing time. magazines. including traditional media such as newspapers. “advertainment” is the new mantra. and billboards. more people=more sale. Owing to this. television. company strategies and business models. one big change awaited for the next growth wave is the implementation of recently enacted and regulations on digitisation for cable. But these changes have not occurred suddenly.7 CHANGING ADVERTISEMENT TRENDS Advertising is a form of communication intended to persuade its viewers. 4. implementation of Phase 3 and copyright for Radio and the roll out of 4G.e. 58 | P a g e .

we have been witnessing big changes in advertising. Means of communications have improved a lot. living standards. there has been a huge evolution of techniques and trends. People no longer have to wait for long period of time to get answer to their mails. ranging from pure carpet-bombing that guarantees the coverage of a large area. new techniques and trends. and always with the same goal: to induce someone to buy or use that product or service. advertisers use different types of weapons with very different characteristics. Across time. To achieve their goal. new strategies. even though the Internet has been among us for quite a significant number of years. With the rapid pace advancements and innovations in the world of today everything has experienced disastrous changes and modifications. Hence Advertising will continue to be a tool of communication. the authentic “next big thing” comes with the advent of the Internet. life styles. we have seen a huge evolution of those weapons. the change is yet to come. The authentic “next big thing” comes with the advent of the Internet. to highly precise snipers that allow them to hit a specific target right between the eyes and in the perfect moment to do so. we have been witnessing big changes in advertising. strategies. Advertising is a very powerful business. huge empires with thousands of employees and billions of dollars in revenues which constantly feed their tummies with money coming from the advertisers. However. Any latest technological development becomes common to the entire world within hours. Across time. Across time. media. new media. 59 | P a g e . advertising powers large industries such as television or print media. as in many other industries. new products. the really big change. from merely communicating a product or service. to highly sophisticated multidimensional and multi-channel strategies. behavioral patterns. and always with the same goal.People who are skeptical about the future of advertising in India and predict its demise do not take into consideration that enterprises have a need to communicate with the public. products. business or marketing strategies. All by itself. from merely communicating a product or service. every single entity has undergone some change with the passage of time. Across time. Be it eating habits. to highly sophisticated multi-dimensional and multi-channel strategies. And believe it or not.

the urban market is also influenced by the new media. radio and TV were considered as the most powerful means of advertising. Many companies have ceased to print the hardcopy version of newspaper and have limited themselves to the online version only. resulting avoidance of people to paying for ads. modes of advertisements were quite similar and known to the readers and customers. traditional media will continue to have a large share. The fact originates that media is slowly going towards extinction and will soon disappear. it is important to stress that the fundamentals of effective communication simply need to be adapted to fit these new forms. However. As the media through which advertising messages are conveyed evolve. Advances in computer and 60 | P a g e . despite the advent of the new media. TV and Radio. Entrepreneurs were quite confident of the fact that these modes are well known to the public and will foster their business.Few years back. One innovation replaces the previous one and the cycle goes on. And in urban market too. the future of advertising is bright and unlimited. Marketing professionals are constantly seeking effective means to promote their brands. magazines. However with the rapid changes in the advertising trends and modes. Facts and figures clearly demonstrate that there has been gradual downfall in the advertisements means like magazines. Even if people watch television. the traditional media is still a popular means of communication. In India. as the rural market is still untapped. Rather than dreary. One has to move with the changing trends of the society. newspapers. Same is the case with advertising modes and methods. then they prefer to do some other tasks during the advertisement break. Similarly TV programs have lost their quality. Innovation is what everyone desires in his life. Newspapers. A clear declining trend has been noted regarding the readership of newspapers and magazines. newspapers and magazines are losing their popularity among the masses.

Dealing with rural marketing is a different ball game altogether. Therefore. The company on its behalf has also been investing steadily to build their infrastructure to meet the growing needs of the rural market. So. the rural market is growing at a far greater speed than its urban counterpart. a thorough knowledge of the nuances of language. The Television ad is a happy blend of the folk music to which the city lad presents steps. Ads were mostly adaptations of the campaigns targeted at the urban populace and communication was mere translation of the ad copy. As the rural market is untapped. Time and again. in certain categories at least. distribution remains to be the single largest problem that marketers face. dialect and familiarity with prevailing customs in the regions is essential. a definite shift towards the rural is indicated. Reaching your product to remote locations in villages where the infrastructure is poor and lower level of literacy are few of the hitches in marketing in the rural areas. which is turning into consumerism society. the rural consumer will always be driven by his needs first and will therefore be cost conscious.backed by Aamir Khan ads. Also. It needs the basic understanding of the rural consumer psyche. 61 | P a g e . clearly there seems to be a long way ahead. Another successful ad campaign that provides a blend of the urban and rural is that of Bournvita Confidence. The rural market today accounts for only about 6 -7 percent of the total share of ad pic. Until a few years ago. Interestingly. As compared to the Indian urban society. which is far different from its urban counterpart. marketing professionals have harped on the potential of the rural market. The greatest challenge for advertisers and marketers lies in finding the right mix which will have appeal to the rural folks. the rural market was given a step motherly treatment by Indian marketers and advertisers. It has appeal to both the rural and urban audience.communication technologies are opening up immense opportunities for advertising people. but few have really focused on it. Coca Cola tapped the rural market in a big way when it introduced bottles priced at Rs 5/. The other challenge is that campaigns have to be tailor made for each product category and each of the regions where the campaign is to be executed.

This is the first medium to deliver an almost instant global audience. flexibility and customization. They represent a challenge to academic programs in advertising education. but there is a long way for marketers to go in order to reap the maximum benefits. world . upscale individuals who have chosen to access information from a worldwide web. Second. While traditional print and broadcast are becoming more customized too. First. So.Nevertheless. the future no doubt lies in the rural markets. As companies attempt to reach their consumers more effectively.way graphical. Advertising on the Internet has become the most significant new development within the industry. convenience. which is just waiting to be tapped. infomercials and electronic couponing are emerging as the new cost effective way to deliver the message. The users are well educated. It offers two . Students will need to be pointed in the 62 | P a g e . Advertising will provide the primary source of income for the future expansion of the Internet. advertising is the most cost effective means of promotion.wide communication and technology oriented early adapters. As this new information delivery system grows and is able to effectively and efficiently deliver information to the mass market. Progress has been made in this area by some. home shopping channels. they have not moved at the pace of these technologies. It is a new form of mass communication and provides users with a new economy of information distribution. These new channels of information distribution offer variety. Advertising will continue to be an integral part of the economy because it has consistently worked better and cost less over the long run than other alternatives. advertising will be a part of the future for two reasons. the financial subsidy that advertising will provide this new mass medium will be as important as it was for the traditional media. database marketing. The fastest growing new information channel today is the Internet. The new media represent the future for advertising agency media people. since the size of the rural market is growing at a good pace. the fact remains that the rural market in India has great potential. the fact is that few products and services directed to mass markets.

direction of new application of existing media planning concepts in advertising. They will need to be involved in developing new ideas about definitions, concepts, measurements and implementation on advertising media. The new media represent opportunities for growth in advertising. New forms of technology and interactive communication will evolve at a furious pace because now the computer is the tool and process for advertising creative. Concepts will undergo a revolutionary change. Visuals and copy will need to speak a new language. The entire process of conceptualization and technical processing will undergo a sea change. The design, language and context of the advertising message will change. Because of the ongoing technological evolution, the computer is now one of the major devices used in conceptualizing, developing and producing material for both the print and electronic media. But creative people must beware of the drawbacks that the new media has to offer. Creative people will rely too much on the computerised processes and software. Anyone who has access to the computer can design when in actuality the designer should have basic aesthetic knowledge and skills for the task. The result of this accessibility could be poor designs produced well technically. The long held rules of advertising design which include formulaic layouts and word counts for print advertising will be relics. Logos, images and text is technologically revolutionized. Hence, advertising poses a new challenge for the creative people as a new visual and verbal language has to be evolved to suit the new media. Adaptation of technology is the key to handling the new media effectively. Thus there is immense potential in the advertising field. As the new media is working parallel to the print and electronic media as the traditional media continues to be a part and parcel of the advertising campaign. People still prefer good ads. It is not that they don’t pay attention to ads. Rather they are not interested in ads that exaggerate. It can be said that we have entered the age of sound bites and visual saturation. People are tired of ads that are shouting to draw their attention. The audiences want to escape hyper communication.
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Many of the ads also fail because the advertiser tries to put everything within a small ad. People have very little time these days. They don’t give more than a few seconds to a single ad. If they don’t get what they are looking for it is quite natural that they will not give attention to your ad. Trends in advertising have changed over the past few years. People don’t have the time to sit back and watch an ad Short, smart and clever ads are doing better these days. The advertising industry has witnessed some major changes in advertising trends in the recent years. It is quite interesting that some ads that have done a good job a few years back are failing now and some others are offering good result beyond expectation. It is because the buying public is still there and they recognize relevant ads quicker than before. There is a major cultural shift occurring in how people use media for entertainment, news and information. Many traditional media outlets, such as newspapers and major commercial television networks, are seeing their customer base eroded by the emergence of new media outlets. The Internet has become the major driver of this change. In particular, a number of important applications tied to the Internet are creating new media outlets and drawing the attention of many, mostly younger, consumers. Overtime, advertising techniques have changed drastically. All ads and commercials appeal to a certain audiences and genders, congregate different values, and contain many different aesthetics. Ads and commercials from the 1940-1970 eras are different from those in the 20002008 eras and will continue to be different in the years to come. As long as advertising continues, which it will, or nothing will be able to be sold, things will always change. Now though, advertising is changing. There is money being made both ways, to the consumer, and to the vendor. There is now pay per click advertising, and now there is Ad sense. On television, it has actually gone the other way. The vendors are making less money due to the new technology that allows us to skip commercials, or fast-forward them. This has had a huge effect on companies. Although most people don’t have this new technology, it is in-fact becoming bigger and bigger. Advertising is a very big part of our lives, and will continue to be in our households, work-spaces, and our families. Overtime, ads have changed a great deal. No two ads
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are exactly the same. Every single ad pinpoints different audiences, different gender roles, and appeals to different people. Some ads have headlines, some just have pictures, some have color and some are black and white. Even advertisements that try to promote the same product are different. Ads now are much more revealing in a lot of different ways than ads in early times did. Clothes reveal much more skin than they ever have, curse words are written out and sex is promoted a lot. This would have been a big "NO!" in the 40s and 50s. It was not right and since times have changed so have the people. Younger generations of today do not understand the concepts of modern times. This is why many older people are so shocked at what their younger family members are watching on TV and looking at in magazines and store windows. There has been an absolute metamorphosis in advertising over the last 10 years. The major changes have been on the technology front, and business models have been altered. The benchmarks of success in advertising also have changed dramatically. Billings are no longer key to an agency. Rather, it is operating profits that have assumed more importance now. Advertising 10 years back only seemed to be responsible for the brand's health. But now advertising has become more accountable. With the stakes involved being very high, the profession has become more demanding.

4.8 FUTURE OUTLOOK
In 2011, the Indian Media & Entertainment (M&E) Industry registered a growth of 12 percent over 2010, to reach INR 728 billon, says the FICCI-KPMG report. The growth trajectory is backed by strong consumption in Tier 2 and 3 cities, continued growth of regional media, and fast increasing new media business. Overall, the industry is expected to register a CAGR of 15 percent to touch INR 1,457 billion by 2016. The report will be formally released at the inaugural session of FICCI FRAMES 2012 on March 14, 2012.2011 has been a challenging year not just for the Indian M&E industry, or even the Indian economy, but for the larger world economy. While India is still expected to grow at a healthy pace, growth is projected to be lower than earlier expectations.

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Advertising spends across all media accounted for INR 300 billion in 2011 2011. and d gaming are fast increasing their share in the overall pie. as against 17 percent observed in 2010. and INR 30 crore mark in C&S rights. Overall Industry Size 1600 1400 1200 1076 932 823 728 1254 1457 INR Billion 1000 800 600 400 200 0 2011 2012 2013 2014 2015 2016 Illustration No. However. the new media segments like Animation and VFX. contributing to 41 percent of the overall M&E industry’s revenues.While television continues to be the dominant medium. 2011 proved to be a year with mixed results in terms of growth gro across different sub sectors. Online and Gaming businesses witnessed phen phenomenal growth rates. ndustry. Also. digital advertising. . 8: Overall Industry size (Advertising) 66 | P a g e . The traditional media businesses experienced a slow down compared to last year. In terms of performance. sectors such as animation & VFX. will continue to be the second largest medium in the Indian M&E i industry. Radio is expected to display a healthy growth rate after the advent of Phase 3. with multiple movies crossing the INR 100 crore mark in domestic theatrical collections. especially in the second half of the year. while witnessing a decline in growth rate. the film industry had a reason to cheer. Advertising revenues witnessed a growth of 13 percent in 2011. Print.

” According to Mr. rapidly increasing new media business and regulatory shifts. launch of diverse content delivery platforms. the promise of wireless broadband.” 67 | P a g e . KPMG in India “The Media & Entertainment industry landscape is undergoing a significant shift. Traditional business models are evolving for the better as a host of new opportunities emerge. digitization of film distribution. rising footprint of the players in the regional media. Rajiv Kumar. Jehil Thakkar.Says Dr. FICCI “The key highlights are rise in digital content consumption. increasing DTH penetration. Secretary General. growing internet use are all prompting strategic shifts in the way companies work. Head of Media and Entertainment. Cable digitization. strong consumption in Tier 2 and 3 cities.

newspapers.asp?sid=rsse3y48euahnd654860 68 | P a g e . 28% by print media i. How did you come to know about health insurance? Print Media 29% 35% Word-ofmouth Radio Internet 14% 0% 22% TV Illustration No.RESEARCH I have conducted an online survey1 with a sample size of 100 to find out which advertising strategy is the most effective for the decision-making of a health insurance product.9 : Different mediums for advertising Out of 100 respondents. 1.com/s. 22% by word-ofmouth. 34% of the population came to know about health insurance by television. . it has increased by 5% since the last year.e.http://freeonlinesurveys. journals etc. 14% by Internet and very short percentage of population of 2% came to know about it via radio. magazines. Internet is still at a very nascent stage but is growing at a fast pace.

10 : Factors that influence purchase decision We found out that the most influencing factors which affect the people’s decision in buying a health insurance product are Benefits/schemes. 69 | P a g e . Tax Exemption and Savings. Factors that Influence the decision making to buy a healtyh insurance product [Benefits/schemes] 20% [Tax Exemption] 19% [Cost/Price of the policy] 13% [Savings] 19% [Brand Value of the Company] 17% [Family Influence] 12% Illustration No.We can see that people rely mostly on print media and television because it is in the written form and people can challenge the company if any information given is wrong. They are more reliable sources. The other factors like Cost of the policy and Brand value of the company also play a significant role in this decision.

newspapers. The print media for health insurance product includes brochures. 70 | P a g e . The idea behind it is that television is the best medium to spread awareness when people do not know about health insurance. magazines (like business outlook. agencies are using the digital arena i. Now. 11: Most preferred advertising medium The advertising medium which is most preferred by the advertising agencies and by the people is Television and Print media. then we use print media to make them aware about the terms and conditions of the products. hoardings etc. business today etc.Which Advertising Medium is most preferred to promote health insurance product Print Media 31% 28% Outdoor Radio Internet 17% 24% 0% TV Illustration No. this is a good medium because it has more flexibility to show all the terms & conditions of various policies and is much cheaper. The Outdoor media for a health insurance product includes billboards. When the awareness is spread.e. internet by creating websites for the company.). prospectus.

12051 0.09759 0.08240 -0.00000 0.10939 0.12668 1.00000 -0.10939 0.01532 -0.10910 -0.08240 -0.20910 1.00000 [Cost/Pri [Benefits/schem ce of the es] policy] -0.00000 Correlations [Saving [Family [Brand s] Influenc Value of e] the Compan y] 0.00000 0.FACTOR ANALYSIS Factor Analysis is a type of analysis used to discern the underlying dimensions or regularity in phenomena.12084 0.05316 0.09759 -0.09486 1.00553 71 | P a g e .20910 0. We randomly collected responses from 100 respondents.12668 0.03466 0.05316 0.09486 -0. Input Data Type Raw Data 100 Number of Records Read 100 Number of Records Used 100 N for Significance Tests The table shows that the analysis has used the data of all 100 respondents. We conducted a survey through questionnaires.14525 0.05685 0. Its general purpose is to summarize the information contained in a large number of variables into a smaller number of factors. 1) CHECKING FOR MULTICOLLINEARITY The following table is the CORRELATION MATRIX [Tax Exemptio n] [Tax Exemption] [Savings] [Family Influence] [Brand Value of the Company] [Cost/Price of the policy] [Benefits/schem es] 1. We chose FACTOR ANALYSIS as the analysis method.00000 0.12051 0.01532 1.14525 1.10910 -0.00553 0.12084 -0.05685 -0.03466 0.

Hence we can go forward with Factor Analysis Kaiser's Measure of Sampling Adequacy: Overall MSA = 0.1663 0.5.61310479 [Cost/Price [Benefits/schemes] of the policy] 0.95224427 0.5980 0.15691767 0. OF FACTORS We decide on the number of factors based on the following table.32795678 0.13104896 0. 2) NO. Thus the sample size is adequate to run factor analysis.7567 0.1326 0.79532660 0.1107 1. 72 | P a g e .06537509 0.2213 1. The table shows the Eigen values (sum of squares of factor loadings) and scree plot.1587 0.53132373 0.4318 0.48081466 0.44454194 0.66427764 0.e. there is multicollinearity. Looking at the table we can conclude that the 6 variables can be clubbed into 2 factors 1 2 3 4 5 6 Eigenvalues of the Correlation Matrix: Total = 6 Average = 1 Eigenvalue Difference Proportion Cumulative 1.509045 [Tax Exemption] [Savings] [Family [Brand Influence] Value of the Company] 0.04536876 0.2213 0.50539026 0.0000 2 factors will be retained by the MINEIGEN criterion.26258169 0.99761303 0.The above matrix shows that there exists some correlation between the variables i.47909586 The KMO test shows a MSA of more than 0.26496866 0.8893 0.2104 0.

44053 0. Price of the policy. Tax exemptions.48998104 0.69520 [Benefits/schemes] -0.51648879 73 | P a g e .3) GROUPING OF VARIABLES TO FACTORS Following is the Factor Matrix showing factor loadings which is the correlation between the factor and the variable Factor Pattern Factor1 Factor2 0.48782052 0.24845 [Tax Exemption] [Brand Value of the Company] -0. Family Influence 4) EIGEN VALUES AND COMMUNALITIES The following tables display the respective Eigen values of factors and communalities of variables Variance Explained by Each Factor Factor1 Factor2 1.3279568 Final Communality Estimates: Total = 2.2625817 1.08169 0.01057 [Savings] 0. Brand Value Factor 2 : Benefits.590538 [Tax [Savings] [Family [Brand [Cost/Price [Benefits/schemes] Exemption] Influence] Value of the of the Company] policy] 0.14135 0.71735 -0.68399 [Cost/Price of the policy] 0.37132 0.49941 [Family Influence] Factor 1 : Savings.51470872 0.44348050 0.13805888 0.67436 -0.01344 0.

02528 0. we rotate the factors at 90 degree. Brand value Factor 2: Benefits.00890 0.e. right variable goes in right factor. Cost .590538 [Savings] [Family [Brand [Cost/Price [Benefits/schemes] Influence] Value of of the the policy] Company] 0. This can be done with the help of a factor score Factor score of each factor = Sum of (Factor loading * respective standard score) 74 | P a g e .38617 0.44348050 0.21176 0.51648879 Factor 1: Savings.51470872 0. Rotated Factor Pattern Factor1 Factor2 0. We must also identify which amongst these is the most important.69655 -0.69993 [Benefits/schemes] -0.48782052 0.5) ORTHOGONAL ROTATION To ensure that the grouping has been done right i.06414 [Savings] 0.17693 [Tax Exemption] [Brand Value of the Company] -0. Family Influence 6) IMPORTANCE OF FACTORS Now that we have identified the key factors.2632896 1.37070 -0.71456 0.66557 [Cost/Price of the policy] 0. Tax exemption.3272488 [Tax Exemption] Final Communality Estimates: Total = 2.13805888 0.48998104 0. Here we have gone for ORTHGONALVARIMAX.54254 [Family Influence] Variance Explained by Each Factor Factor1 Factor2 1.

994568 0.035496 -0.213708 Total factor score 0.022933 0.354403 0.360955 0.385162 0.00025 0.127212 Factor2 -0.000317 0.994565 Looking at the factor scores we can judge that Factor 1 is the most important factor.00051 0.Factor Score: [Savings] [Tax Exemption] [Brand Value of the Company] [Benefits/schemes] [Cost/Price of the policy] [Family Influence] Factor1 0. 75 | P a g e .386028 0.103676 0.

internet by creating websites for the company. Health Insurance being a product which has a lot of terms and conditions and disclaimers hence people like to read the disclaimers and the terms and conditions before purchasing the Policy. Tax Exemption and Brand Value has a larger impact on the consumers as compared to Factor 2 comprising of Benefits. Factor 1 which comprises of Savings. companies are using the digital arena i. While some old trends have been modified some new trends have evolved.e. There has been an absolute metamorphosis in advertising over the last 10 years. The results also showed that Family Influence and Cost are the least influencing variables whereas Savings and Benefits and Schemes are the most influential. After running factor analysis we can see that Factor 1 has a more significant influence on the purchasing decision of the people who are interested in buying/purchasing health insurance. Now. But these changes have not occurred suddenly. Thus. The major changes have been on the technology front. The competition is going tough day by day. so they trust Print Ad’s and Television ads the most. marketers are trying to find out more effective ways to reach the target audience. People will want to purchase a health insurance which would give them higher Savings and would also provide them with Tax Exemption. There is a continuous growth in advertising trends with the passing time.CONCLUSION Print and Television are the most significant mediums that spread awareness about Health Insurance. Cost and Family Influence. But the trends in advertising are changing over time. this is a good medium because it has more flexibility to show all the terms & conditions of various policies and is much cheaper. So while purchasing a 76 | P a g e .

however slowly people are getting aware of health insurance and new private companies like Apollo Munich and Max Bupa are entering the market looking at the high growth rate of the Health Insurance Market.health policy Family Influence which plays a big role in many buying decisions in India is not a influencing factor while purchasing Health Insurance. From secondary data we were able to see that companies having maximum market share were public companies. 77 | P a g e . The growth rate of these private companies is higher than the public companies.

Tag Line The Max Bupa tag line (Your Health First) conveys the message and is apt. • The Apollo Munich ads were a little boring and will not catch the attention whereas the Max Bupa ads had an emotional appeal and used family bonding as their theme which will appeal to the Indian audiences. • However the Max Bupa ads are more cluttered as compared to the Apollo Munich ads. I was planning to take this feedback to the company so that they can be aware of the likeability of the ads and what they need to do in terms of fine tuning them so as to meet the customer expectations. 78 | P a g e . 2. As compared to Apollo Munich’s (Lets Uncomplicate) which is very vague and general. • The pause campaign of the Apollo Munich is insulting as it conveys that people are not bothered about their health. whereas this is not the case. whereas the Apollo Munich ads were artistic and were not able to convey the message. TV Commercials • The members of the focus group thought that the Max Bupa ads had a emotional appeal and connect. Print Ad • The color combinations of blue and green are appealing to the eye as compared to the orange used in Apollo Munich.FOCUS GROUP DISCUSSION I conducted this focused group discussion because I wanted to know what kind of an impression the ads have on the target audience. 3. • The Apollo Munich ads are not very appealing to the young generation however the Max Bupa ads are very vibrant and use nice images which makes them appealing to the young generation as well. The most common observations were as follows:- 1.

Awareness Campaign should be run all over India to spread awareness about Health Insurance. a campaign should be made for the youth especially in their early twenties who have just started working this is an untapped market. Hence Max Bupa should diversify and explore other insurance areas as well to maximize their revenues.RECOMMENDATIONS Max Bupa ads on health insurance don’t really appeal to youth since health insurance is a very dry area for them. Max Bupa is specialist health insurance company and only provides health insurance because of this specialization the company is missing out on a lot of other insurance such as Life Insurance. hence there is a need to spread awareness about health insurance in such areas and also introduce new products for such markets which are affordable and beneficial for rural areas. The procedure to buy health insurance products should be made more transparent and easy. Rural Markets are untapped markets and have great potential to be high profit markets. Fire Insurance etc. 79 | P a g e . The ads will have to be vibrant and dynamic to get their attention. Utilizing the web space efficiently by being active on social media sites like Facebook and other websites as this will help in brand recall.

Clear and precise communication was a must. It was an amazing experience as I got to brainstorm with the top executives from Coca-Cola and McCann Erickson. as they wanted the work to be done at any cost within the time limit given to us.e the clients. Meeting the Vigilance Officer of ONGC Mr. In our agency everyone used Apple Mac’s and the ads were made on Illustrator Software. the creative team and the studio team.B. 80 | P a g e .” . For this I learned how to make a brief . Gautam Dixit was a very educative experience as he was kind enough to talk about the corporate world besides giving me the brief.Learning from SIP “The beautiful thing about learning is that nobody can take it away from you. To learn new things it was very important to unlearn what I knew and remove the mental blocks from my head. The most important thing that I learned during my internship is how to work in a team and get the final result. Dealing with clients like Delhi Police was a challenge. I got the chance of trying my hand at the illustrator and can now use the Illustrator Software. During my internship I learned a lot of things which I would not have learned in college or by reading a book. I also got a chance to attend the Coke Cricket Ignitor Workshop. The new coca-cola ad featuring Sachin Tendulkar is the outcome of the workshop. the objective of the workshop was to decide Coke cricket partnership for the sub-continents in the coming years. during my internship I had to deal with a lot of people i. as getting the message across to creative team of what the client exactly wants in the ads was very important. King The Summer Internship Program was aimed to bridge the gap between academies and corporate world. I interned in an advertising agency and I was in the client servicing department. Frequent visits to the Delhi Police Headquarters was also a great experience.B.

I felt as if I was a permanent employee in the agency and got to work on a lot of projects and with the all the departments of the organization.I am very lucky that I got to do actual work in my agency and I am very thankful to my boss as I did not feel like an intern at all. Management skills came in very handy and everything I learned in college helped me during my internship. 81 | P a g e . Overall the SIP turned out to be a great learning experience and taught me how to work in a team and how to get work done on time.

13th edition.REFERENCES www.com Marketing Management. Koshy.adsoftheworld.pwc.afaqs.gov. Jha FICCI-KPMG Report Afaqs reporter Business India Money Life 82 | P a g e .com www.com www.irda.com www.exchange4media. Keller.in www.Kotler.

5-Least influential) Highly Influential Tax Exemption Savings Family Influence Brand Value of the Company Cost/Price of the policy 2 3 4 Least Influential 83 | P a g e ... Which factor in your opinion. Name * 2.. so as to study which aspect should an advertising agency must focus upon...Highly influential..ANNEXURE Advertising Strategies • This is a survey to find out what are the factors that influence an individual's decision to buy a health insurance policy.. 1... would influence you the most to buy a health insurance product? *(1.. How did you come to know about health insurance? * Print Media TV Radio Internet Word-of-mouth Other: 3.

Which company would you prefer to buy a health insurance policy? * Public Private 5. Which of these following companies offering health insurance are you aware of? * Apollo Munich Max Bupa Bajaj Allianz ICICI Lombard New India National Star Health & Allied Insurance Other: 6. Which advertising medium for health insurance appeals to you the most? * Radio Print TV Internet/mobile Outdoor Other: Submit 84 | P a g e .Highly Influential Benefits/schemes 2 3 4 Least Influential 4.