A

SUMMER TRAINING PROJECT REPORT

ON
“A STUDY ON MOTHER DAIRY”
-------------------------------------------------------------
submitted in partial fulfilment of the requirement for the degree
Bachelor Of Business Administration
Session 2021-24

Lloyd College of Arts, Commerce & Science, Greater Noida

Affiliated to CCS university, Meerut.

SUBMITTED TO: SUBMITTED BY:

Prof. Inakshi Kapur Student name-Sidharth Kumar
Assistant professor BBA- 5th semester
Roll No. - 211162105052

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 DECLARATION

I hereby declare that this Project Report is my own work and that, to the
best of my knowledge and belief, it reproduces no material previously
published or written that has been accepted for the award of any other
degree of diploma, except where due acknowledgement has been made
in the text.

(Student Name) : Sidharth Kumar

Roll No. : R211162105052

Date: 15/02/2024
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 CERTIFICATE

This is to certify that Mr. Sidharth Kumar a student of BBA (Batch

2020-23), at, Lloyd College of Arts, Commerce & Science has
undertaken the project on “dairy product”. The survey, data collection,
& analysis work for preparing the project has been carried out by the
student in partial fulfillment of the requirements for the Award of BBA
Degree under my guidance and supervision.

I am satisfied with the work of Mr. /Ms. ………………………….

Date:

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 Mentor(s) Name: …………

(Signature)

Certificate

Date: ………….

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. / Ms. ………………………... a student of

BBA (Batch 2020-23), Domain Specialization …………………., at,
Lloyd College of Arts, Commerce & Science has undertaken the project
on “-----------------------------” under the guidance of Mr./
Ms……………………… (Industry Mentor’s Name) for a duration of
…………………. weeks, from…….to…………, 2022.

During his/her tenure with us, we found him/her sincere in his outlook
towards his work.

We wish him/ her all the very best for future endeavours.

Signature

Name

Designation

4
 preface

Theoretical knowledge is of no use, until and unless it is applied into some

practical aspect. We must lay stress on the proper implementation of what we have
learned in class at real life incidents to obtain optimum output.

Thus to apply all theoretical knowledge gained so far onto the practical field, I
have undergone 40 days on the job training at Mother Dairy Fruit & Vegetable
Pvt. Ltd. The submission of this project report is the part of the curriculum of
BBA course.

This project shows the various steps and activities performed in the mother dairy

and enlist the key features of the ad campaigns of Mother dairy. Lastly, to study

the buying behavior for Mother Dairy products.

The report gives a true picture of the importance of advertising and advertising
strategy of mother dairy.

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TABLE OF CONTENTS PAGE NO.

 Objectives 07
 PROFILE OF THE COMPANY 11
 Introduction 12
 History 13
 Product Profile 14
 Organizational Chart 19
 JOB DESCRIPTION 61
 Beat The Heat during the month of MAY.
 Summer Fiesta during the month of JUNE.
 Difficulties Faced
 Research Methodology 70
 Finding & Analysis 75
 CONCLUSION 76
 RECOMMENDATIONS 77
 ANNEXURE 78
 Questionnaire 79
 References 80

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Research Objective:

 To understand the importance and different types of advertising in the present scenario

 To understand the key aspects of Mother dairy

 To enlist the key features of the ad campaigns of Mother dairy

 To study the buying behavior for Mother Dairy products

Research methodology:

The study is mainly concerned with the “Marketing Strategy of Mother Dairy”. The main data

sources are:

PRIMARY SOURCE OF DATA:

Primary data refers to the original information gathered for a specific purpose and provides up to
date, accurate and relevant information and it is gathered in an investigation according to the
needs of the problem.

TOOLS USED TO COLLECT THE PRIMARY DATA:

The primary data is collected on the basis of survey method with the help of questionnaires,
personal observation and direct consultation with the customers.

SAMPLE SIZE:

It refers to the total number of people surveyed and in the study 150 people were surveyed and
responses drawn.

SECONDARY SOURCE OF DATA:

The secondary sources of data where various business journals, magazines, newspapers,
websites etc.
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 LITERATURE REVIEW
Indian Dairy Industry: An Overview

Beginning in organized milk handling was made in India with the establishment of Military
Dairy Farms. Handling of milk in Co-operative Milk Unions established all over the country on a
small scale in the early stages. Long distance refrigerated rail-transport of milk from Anand to
Bombay since 1945

Pasteurization and bottling of milk on a large scale for organized distribution was started at
Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc.

Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India.
These were taken up with the dual object of increasing the national level of milk consumption
and ensuing better returns to the primary milk producer. Their main aim was to produce more,
better and cheaper milk.

Milk Production
 India's milk production increased from 21.2 million MT in 1968 to 88.1 million MT in
2003-04.
 India is the largest producer of Milk in the World (replacing USA)
 Per capita availability of milk presently is 231 grams per day, up from 112 grams per day
in 1968-69.
 India's 3.8 percent annual growth of milk production surpasses the 2 per cent growth in
population; the net increase in availability is around 2 per cent per year.

Marketing
 In 2004-05, average daily cooperative milk marketing stood at 155 lakh litres, registering
a growth of 4.2 percent over 148.75 lakh litres in 2003-04.
 Dairy Cooperatives now market milk in about 200 class cities including metros and some
550 smaller towns.
 During the last decade, the daily milk supply to each 1,000 urban consumers has
increased from 17.5 to 52.0 litres.

Innovation
 Bulk-vending - saving money and the environment.
 Milk travels as far as 2,200 kilometers to deficit areas, carried by innovative rail and road
milk tankers.

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  Ninety-five percent of dairy equipment is produced in India, saving valuable foreign
exchange.

Macro Impact
 The annual value of India's milk production amounts to about Rs. 880 billion.
 Dairy cooperatives generate employment opportunities for some 12 million farm
families.
 Dairy Farming is the single largest contributor to the economy(5% of GDP &13% of
employment)
 Dairy industry represents a huge opportunity being the largest single FMCG Market:
Urban market size Rs 33000 Crores and organized sector Rs 11000 Crores representing a
huge opportunity for conversion and growth.

Key challenges before Indian Dairy Industry are as follows:

• Ensuring Quality

• Procurement and efficiencies in supply chain

• Product differentiation and value addition

National Dairy Development Board:

The National Dairy Development Board is an institution of national importance setup by an

Act of Parliament of India. The main office is located in Anand, Gujarat with regional offices
throughout the country. NDDB's subsidiaries include Mother Dairy, Delhi.

The major success of this mission was achieved through the World Bank financed Operation
Flood, which lasted for 26 years from 1970 to 1996 and was responsible for making India the
world's largest producer's of milk. This operation was started with the objective of increasing
milk production, augmenting farmer income and providing fair prices for consumers.

NDDB has now integrated 96,000 dairy co-operatives in what it calls the Anand Pattern,
linking the village society to the state federations in a three-tier structure.

NDDB launched its Perspective Plan 2010 with four thrust areas: Quality Assurance,
Productivity Enhancement, Institution Building and National Information Network.

The National Dairy Development Board (NDDB) was founded in 1965 to replace exploitation
with empowerment, tradition with modernity, stagnation with growth, transforming dairying into
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an instrument for the development of India's rural people.

NDDB began its operations with the mission of making dairying

a vehicle to a better future for millions of grassroots milk
producers. The mission achieved thrust and direction with the
launching of "Operation Flood", a programme extending over
26 years and which used World Bank loan to finance India's
emergence as the world's largest milk producing nation.
Operation Flood's third phase was completed in 1996 and has to
its credit a number of significant achievements.

As on March 2006, India's 1,17,575 village dairy cooperatives

federated into 170 milk unions and 15 federations procured on an
average 21.5 million litres of milk every day. 12.4 milliion
farmers are presently members of village dairy cooperatives.

Since its inception, the Dairy Board has planned and spearheaded India's dairy programmes by
placing dairy development in the hands of milk producers and the professionals they employ to
manage their cooperatives. In addition, NDDB also promotes other commodity-based
cooperatives, allied industries and veterinary biologicals on an intensive and nation-wide basis.

The National Dairy Development Board was created to

promote, finance and support producer-owned and
controlled organisations. NDDB's programmes and
activities seek to strengthen farmer cooperatives and
support national policies that are favourable to the growth
of such institutions. Fundamental to NDDB's efforts are
cooperative principles and cooperative strategies.

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 MOTHER DAIRY
Mother Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a
wholly owned company of the National Dairy Development Board (NDDB).

Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk,
Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh
fruits & vegetables, frozen vegetables and fruit juices at a national level through its sales and
distribution networks for marketing food items.

Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives.
Similarly, Mother Dairy sources fruits and vegetables from farmers / growers associations.
Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/
pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. It is
Mother Dairy’s constant endeavor to
(a) Ensure that milk producers and farmers regularly and continually receive market prices by
offering quality milk, milk products and other food products to consumers at competitive prices
and;
(b) Uphold institutional structures that empower milk producers and farmers through processes
that are equitable.

At Mother Dairy, processing of milk is controlled by process automation whereby state-of-the-

art microprocessor technology is adopted to integrate and completely automate all functions of
the milk processing areas to ensure high product quality/ reliability and safety. Mother Dairy is
an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Moreover, its
Quality Assurance Laboratory is certified by National Accreditation Board for Testing and
Calibration Laboratory (NABL)-Department of Science and Technology, Government of India.
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Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi,
Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in the
branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its
marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Mother
Dairy.
The company’s derives significant competitive advantage from its unique distribution network of
bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams launched in the
year 1995 have shown continuous growth over the years and today boasts of approximately 62%
market share in Delhi and NCR. Mother Dairy also manufactures and markets a wide range of
dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and
most of these products are available across the country.

Mother Dairy today reaches Indian homes in myriad forms

Mother Dairy: Milk Campaign

The Milkscape in India:
• Total urban milk market in India is in the region of 700 LLPD

• Bulk of the demand is met by loose milk- 63%

• While PPM accounts for 37% market share, its growth is stronger and will intensify over
time
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 – As consumers evolve, trend towards branded packaged milk is imminent as has
been the case across all consumer products categories

• In the PPM category, cooperative brands hold sway

The key objective:

Achieve growth of 15% against current growth of 11%.

Identifying the key barriers in consumers switching their brand of milk:

• Consumers’ relationship with milk brands are built around trust and taste

– We have been having this milk for many years now, and never really had any
problem with it

– Whenever we have tried any other milk, we have not really liked the taste of it-
we are used to the taste of the milk we have been having’

• Consumers really have no reason to change their brand of milk

• The key is that women perceive no inadequacy in the brand of milk that they buy

‘The milk that I buy is adequate’.

The challenge:
• Convince the competition consumer that the milk she buys is inadequate

• Assure Mother Dairy consumers that the brand they are consuming is more than
adequate- it is the best that she can provide her family

Rising to the challenge:

By understanding consumer’s beliefs about and relationship with milk.

There are two truths about milk that consumers have grown up believing in:

Milk is good for bones in specific and health in general:

• It’s a truth about milk that is as old as Himalayas!

• Researches over the years has validated this fact

• All mothers have grown up believing in this truth

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 • Most popularly known benefit is of calcium for bones

• That milk is fundamental for robust health and well being is manifested in the abundance
of good milk archetypes in the country

– from the mythological Krishna to modern day MS Dhoni- healthy swashbucklers

all

Milk is also the primordial conduit to building good character

• Transference of values from mother to child via milk

• The values imbibed in formative years- sanskar – sets the moral compass for life

• At its extreme, is the ‘Doodh ka dhula’ archetype which is also abundant in our culture

– from the mythological Ram to modern day Dravid

Addressing the Objective:

Disrupt the consumer’s belief about her milk brand: Your brand of milk is not adequate for
the benefits that you seek from milk

Why is that true?

• Bulk of the branded milk market is accounted for Toned Milk

– It is the single largest milk variant sold in the country

• It is the dominant variant of most branded players in the country

• Toned Milk is typically lower in Vitamin A, compared to pure cow or buffalo milk

• Presence of Vitamin D is insignificant in cow milk and absent in buffalo milk

• Vitamin D is what helps bones absorb calcium and Vitamin A boosts immunity

• Low presence or absence of either actually denies the body the benefits of milk as
understood and believed by consumers

Mother Dairy Milk is fortified with Vitamin D and Vitamin A which is how the doubts about the
adequacy of competitive milk brand gets sowed and assures Mother Dairy consumers that their
brand is the best choice.

But, just disrupting the consumer’s belief about her milk brand is not enough:
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We have to build on her belief of what milk means to her and Milk builds character as much as it
builds and nurtures the body.

Tapping into a motherhood truth and a societal need:

• Mothers want their children to be strong in body and mind

– Physically, Attitudinally, Morally

• The act and ritual of feeding milk is rooted in that desire

• There is despair today on account of plunging quality of society

– Venality, apathy, corruption, spinelessness, et al

• The mood of the nation today is ardently desirous of a stronger nation

– Physically, Attitudinally, Morally

Orchestrating the insight elements to arrive at the proposition for Mother

Dairy:

Mother Dairy helps you be STRONG IN BODY AND CHARACTER

The proposition
87

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MOTHER DAIRY CURD CAMPAIGN:

An overview of the curd market:

• The set curd volume in the top 8 metros is estimated at 3200 mt per day

• Branded set curd accounts for only 2.5% of that volume, about 80 mt per day

• Clearly the potential is huge for the category

• Currently branded set curd as a category is growing @ 15% .

Mother Dairy’s play in the category:

• Mother Dairy launched set curd in Delhi & NCR in 2000 and today commands a
dominant share of 60% in this market

• We launched Curd in the Mumbai market in the summer of 2007

• The same year in July we launched b-Activ, the Probiotic curd in Delhi

• The following year we introduced b-Activ Plus in Mumbai

– Probiotic curd with added fibre

• Today over 15% contribution of our Curd sales come from the probiotic range

• Currently Mother Dairy is growing in this category @ 28%.

The competitive landscape in the category:

• Though Mother Dairy has a presence in only three cities, we are the leaders in the
category

• We are the dominant player in Delhi, but in Mumbai it is Amul

– Nestle also has a significantly larger share in Mumbai

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 • In Delhi, however Amul and Nestle are significantly lesser players, but together have
garnered a 30% share of market

• Britannia is the other national player of note, but has only around 4% share in both
markets

The objective for Curd:

Capture 6% share of total curd potential by end of 2013.

Arriving at the key task for growing the category:

• Curd consumption is fairly entrenched in our daily diet repertoire

• Its benefits as a digestive aid and as a ‘cooler’ are well understood

• Besides, the nourishment and wholesome aspects of curd are also ingrained in our diet
culture

• The need, and the consumption occasion already exist

• The key task therefore is to drive replacement of home set curd with branded set curd -
specifically Mother Dairy Curd

The key drivers of branded set curd:

• Convenience remains the single biggest driver of consumption of branded curd

– It is a boon for those who are hard-pressed for time; for ‘emergency’
requirements, etc

• For some, taste is a driver as well

– Firm, thick, consistent, ‘not too sour’ curd is not easy to achieve at home

• Hygienic safety is also a driver to some extent

The key barrier for branded curd:

• The biggest barrier is the price-value equation of branded curd

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• Home-makers find it hard to justify its consumption on a regular basis

• It in fact goes against the grains of the ‘thrifty-ness’ of a typical home-maker

• Regular purchase of branded curd is too indulgent and even a shirking of responsibility

• There are barriers such as availability or the inconvenience of frequent stocking, but they
are not key

The key challenge:

Give consumers a new reason to re-evaluate her current choice- home set curd

B-Activ – Probiotic Dahi

• It is a value added curd that a homemaker cannot make at home

• It justifies the extra money that she shells out to buy

– Better digestion than what home set curd can do

– Scientific reason to believe

– New age solution for newer age living

• Helps the homemaker to be seen as ‘sensible and more concerned about her family’
rather than someone just seeking convenience

Going forward, need to keep strengthening our innovation pipeline:

• The key to weaning away consumers from home set curd is constant innovation

• Innovations that add value to the diet and digestion and that cannot be replicated or made
at home

• Mother Dairy has already introduced b-Activ Plus- probiotic curd with added fibres

• Need to explore value adds such as Vitamins, minerals

• Functional curds as for weight-watchers, for athletes, for the elderly, etc can be explored
as well

Building towards the proposition:

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 Build on product truth and consumer beliefs:

• B-Activ dahi is enriched with the BB12 Probiotic strain which helps fight stomach bugs
by increasing the good flora in the intestines

• The strain is hardy enough to withstand the gastric juices to reach the intestines and do
good

• Consumers know and accept that curd aids digestion and helps to ‘settle the tummy’

• Our b-Activ dahi not only what consumers expect from their dahi- but does it much more
effectively.

The proposition:
Mother Dairy b-Active dahi with its BB12 probiotic strain is more efficient and effective
in keeping your digestive system healthy

The creative expression:

HAPPY TUMMY TO YOU!

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Mother Dairy Chillz Ice-creams
BACKGROUND:
To promote and rebrand Chillz the impulse range of ice cream from Mother Dairy. Targeted
towards youth primarily.

The vision was to make Chillz stand on its own feet as a brand in the long run.

Competition viz. Kwality Walls had taken sensuality as a route, while, Cream Bells had a
celebrity endorsement. Unfortunately, Mother dairy did neither have the money nor a brand
ambassador to promote their brand.

Business Objective
To empathise and stand for the youth of India in a differentiated way and generate a volume
sales of 15 lakh litres for the season.

Issue:
Competition had already captured the mind space of the youth through their strategy of
“connecting through sensuality” and brand ambassadors and pumping in a huge GRP. MD as a
brand could not get into a space like this because of its architecture and philosophy.

Consumer Insight:

The modern youth is considered to be an irresponsible, selfish creature who creates his own
world and lives in it.

The truth is in every youth, there is a inherent “goodness” to make his own world better and in
the process making the entire world a better place to live in. That is why they light a candle as a

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mark of protest or drop all inhibitions and start working behind
coffee shop counters to make life better.

Communication Challenge:
To salute the “goodness” inside the youth and stand up as the only brand to do so.

Organising Idea:

MD Chillz: The Goodness Inside

The Result

Volume sales of 19 lakh litres as against annual target of 15 lakh litres for the year.

OUTDOOR:

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Danglers:

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Outdoor:

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Lic Lolleez have yet another kind of goodness inside:
• Lic Lolleez have the goodness of Vitamin C inside

• Though in keeping with the target audience- kids, in this case,- it is couched in mischief
that kids can vibe with.

POSTER:

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Dangler:

Outdoor:

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Mother Dairy: Launch of Probiotic category
Opportunity:

• Curd is an essential part of Indian meal. The perception is that it helps digestion. The
truth is the ‘Probiotic’ delivers on this front. Hence, Probiotic was a natural extension of
our portfolio

• Thus, India saw the introduction of the Probiotic category

B Active

Dahi Lassi

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Probiotic product story:
B Active Probiotic Dahi

• It is a regular curd with added advantage of unique probiotic Bifidobacterium BB-12,

which enhances the body’s natural digestive system and nutrient absorption capability an
essential part of diet for today’s hectic life

B-Activ Probiotic Lassi

• It is a tasty, refreshing lassi with added advantages of Probiotic properties, which boosts
digestion.

Communication Objective:
• To create awareness and propagate the benefits of the new brand amongst the consumers

Issue:
• Probiotic an unknown concept in the consumer mindset

Rider:
We have different probiotic strains in our offering- do we own the larger Probiotic story
or specific strain heroes

Insight:
• Lifestyle of today has lead to eating disorders, which has adverse effect on our digestive
system leading to poor health.

Challenge:
• Establish Probiotic dahi as an aid to your digestive system

Creative expression:
• Happy Tummy to you

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Some popular ad campaigns:

Launch Ad

Ad for ‘fiber’ enriched dahi

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Leaflet

Poster

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Standee Dangler

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Probiotic Milk Drink – Nutrifit

Nutrift
• Milk based flavoured drink with billions of LA5 friendly bacteria, which strengthens
the body’s defenses against infections & diseases over time. Hence building immunity.

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 • Launched in mango & strawberry flavour. Kesar ilaichi added later.

Communication Objective:
• To garner significant sales of Nutrifit in a short duration from launch, by creating a habit
of everyday administration (to their kids) among SEC A1 mothers.

Issue:
• Nutrifit is expensive. Mom is value conscious. She will not spend more money for
something, unless it offers her a unique, clearly differentiated benefit that she places great
value on, and that no other similar product offers her.

Insight:
• Moms realizes that her children live in an increasingly difficult, challenging world. She knows
that they need something special, to cope with all of life’s challenges. They need an edge. She is
on the lookout for anything that can help her give them this edge.

Challenge:
• To get moms excited about super-immunity – a new weapon that can give their kids the edge to
take life head-on.

Super-Immune Kids fall ill less often

Creative expression:

Small on size. Big on Immunity

Ad campaigns:

Launch Ad:

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Magazine ad:

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34
Outdoor:

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Print ads of Mother Dairy

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37
OOH:

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 STORY BOARDS OF MOTHER DAIRY ADS:
Mother Dairy Milk:

The film opens on three students One boy tries to solve a question The second student comes and
appearing for a mathematics test but finding it difficult leaves it takes it a little forward but
with their teachers. midway. returns leaving it incomplete.

The third one, a girl, takes a sip The teachers look on in surprise The ad ends with the shot of
of Mother Dairy milk and as she quickly comes out with Mother Dairy products. Super:
approaches to try her hand. the solution. Powered by Mother Dairy milk.

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Mother dairy chillz ice cream:
The film opens on a guy getting a
bouqet made from a florist.
...an old lady comes out and gets
pleasantly surprised to see him.
Presenting...
Pulling his ears for the
carelessness she gently...
He also buys two cones of Chillz
from a Mother Dairy vendor.
the bouqet and ice creams our
guy says, “Happy anniversary,
Mam”.
.chides him, “still spelling
mistakes”. The ad ends as the...
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With both the things he arrives at a
house. On knocking the door...
The teacher notices the birthday
note on the bouqet with
‘anniversary’ spelt wrongly.
VO
plays, “Mother Dairy Chillz. It’s all
about the goodness inside.”
Mother dairy: lic lolleez ice cream

With an ice cream in one hand, a Climbing on a chair the naughty After arriving in the classroom
little boy approaches the fellow places the duster on top the teacher looks for duster to
blackboard in his classroom. of it. clean the board.

Cut to the shot of him getting As our boy teases the teacher, .Jagaye andar ka bandar.” The
annoyed on being unable to the voiceover plays, “Mother ad ends on the boy offering an
reach it. Dairy Lic Lolleez... ice cream to the teacher.

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GROW FASTER CAMPAIGN:

Looking at greenery all around a Next we see another girl offering As the jingle plays in the
little girl hugs a tree. Super: a sugar candy to a cheerless girl. background “let's grow faster”,
Environmentalist? Super: Social worker? we see a boy engaged in a
game...

... of cricket doing balling, batting Super: The country needs you Super: Mother Dairy. India's no.1
and fielding all on his own. grow faster. milk brand.
Super: All-rounder?

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 INTRODUCTION:
Advertising is a form of communication used to help sell products and services.
Typically it communicates a message including the name of the product or service
and how that product or service could potentially benefit the consumer. However,
advertising does typically attempt to persuade potential customers to purchase or to
consume more of a particular brand of product or service. Many advertisements are
designed to generate increased consumption of those products and services through
the creation and reinvention of the "brand image". For these purposes,
advertisements sometimes embed their persuasive message with factual
information. There are many media used to deliver these messages, including
traditional media such as television, radio, cinema, magazines, newspapers, video
games, the carrier bags, billboards, mail or post and Internet. Today, new media
such as digital signage is growing as a major new mass media. Advertising is often
placed by an advertising agency on behalf of a company or other organization.

Definition:

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“Advertising is any paid form of non-personal presentation or promotion of ideas,
goods or services by an identified sponsor.”- American Marketing Association

“Advertising consists of all the activities involved in presenting to a non-personal,

oral or visual, openly sponsored message regarding a product, service or idea. This
message, called an advertisement, is disseminated through one or more media and
is paid for the identified sponsor.” – W.J.Stanton

Importance of advertising:
Advertisement creates demand for the goods and makes it possible for the
introduction of mass production. It is not only beneficial to manufacturer but also
to retailer and consumers.

(I) Benefits To Manufacturers:

(a) Advertisement increases demand of the product hence manufacturer can go for
latest state of art machinery. This results in improved quality of product and
reduction in cost of production.

(b) Mass production needs mass selling efforts, which are possible or because of
advertisement.

(c) Through advertising the manufacturer can create the demand for his product
and maintain it throughout the year and thereby reduces seasonal slumps in the
business.

(d) Advertising also protects manufacturers against unfair competition because

customers learn to recognize the brand with the name of manufacturer.

e) Advertising also creates pressure on the retailer to stock goods which have
demand.

f) Advertising tends to stabilize the selling price and this can create confidence in
the public.

g) Pushing the goods through salesmen is a slow process and expensive too.

Advertising is comparatively less expensive marketing tool.

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(h) In case of change in products or product features or new outlets, revised price,
etc. advertising helps in giving necessary information very quickly to customers.

(II) Benefits to Retailers

(a) It quickens the return on investment, reduces risk on dead stock and thus can
result in proportionate reduction of overhead expenses.

(b) Retailer is afraid of fluctuations in prices. Advertising normally aims

stabilization of price.

(c) Looking at current demand to the product, retailer can easily estimate the sales
accordingly plan the stock.

(d) It helps the customer to know existence of retailers in their areas and the type
of products available with them.

(e) Wholesaler or retailer may have his own sales people. The advertising helps
these salesmen to sell the product, the awareness about which is already created by
advertisement.

(III) Benefits to Customers

(a) The manufacturer is compelled to maintain the quality of the goods advertised.
The money spent on advertisement should be taken by him as long-term
investment but he is bound to maintain the quality to ensure this return in the
future.

(b) Advertised goods are generally bear certain quality and thus consumers get the
quality matching to the price.

(c) Advertising also acts as information and educates the consumers.

(d) Advertising stimulates demand thereby increases production and hence reduces
the cost per unit. This benefit goes to the consumer.

45
(e) Advertising also makes it possible to sell direct to the consumers by mail order
like say Asian Sky Shop. This reduces commission payable to intermediaries and
hence lessens the price.

(f) As manufacturers control the price of goods and services, the price cutting is
not available to more retailers. The only way retailer can get more business is to
attract customers by providing satisfactory service or place additional benefits like
installment, credit etc.

Hence advertising an additional benefit to the consumers.

Economic and Social Implications of Advertising

(I) Social Implications

Advertising is criticized as mentioned below:

a) It compels people to buy product and services they do not need.

b) It increases the price of goods and services.

e) The claims made by advertisements are always false, deceptive and misleading.

d) It is often vulgar.

e) It tends to develop monopolies.

f) It provokes crime in the society.

g) Expensive advertising alone cannot promote a product.

h) In a poor country like India, spending the amount in crores of rupees on

advertisements is sheer waste of national resources.

i) It enhances the disappointment and unhappiness amongst those who cannot buy
the product but aspire to use it.

j) Due to price wars and ad-wars, manufacturers might declare the discount or
price-cut suddenly to wipe out competition. In such cases, the customers who have
bought the product before price-cuts have to face disappointment.

46
(II) Economic Implications

(a) Advertising is one of the key tools in national economic growth. Some people
may however, argue that advertising is economic waste, basing their news on the
assumption that the consumers know what they want and that they do not want to
subsidize or pay for extra cost of advertising. However, this does not confirm the
reality of the work where people need information, to make choices, thus
discouraging, price competition. Price competition lowers product prices and also
stimulates better products and packaging. This helps raise the standard of living
and greater gross national product. Sometimes there are monopoly situation created
by industrial giants by sheer force of financial backing. Awareness through
advertisement in such cases might help reducing monopoly situations and
ultimately passing the benefits to the consumers.

(b) Advertising is a source of information. Economic growth is dependent upon the

people’s ability and desires to buy more and different products and as a rational
buyer, a consumer wants to optimize the utility of his purchases. This is possible
when provisions for informing the consumer about various aspects of existing
product are made. Thus the consumer saves a lot of time by knowing more about
the product that he wants to buy, instead of spending time in investigation of the
product. This is specifically true about the quality of the product which can not be
tested visibly or physically. A high quality product ensures brand loyalty, resulting
in repeat purchase business. This helps sustaining huge amount spent on
advertisement.

5 M’s of advertising:
In developing a program, marketing managers must always start by identifying the target market
and the buyer’s motives. Then they can make the five major decisions in developing an
advertising program, known as the five M’s.
 Mission: what are the advertising objectives?
 Money: how much can be spent?

 Message: what message can be sent?

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  Media: what media should be used
 Measurement: how should the results is evaluated?

The above mentioned can be explained by the diagram given below:

The 5Ms of Advertising

Checklist for planning of a marketing or advertising campaign.
 What are the objectives?
 Mission
 What is the key objective?
 How much is it worth to reach my objectives?
 Money
 How much can be spent?
 What message should be sent?
 Message
 Is the message clear and easily understood?
 What media vehicles are available?
 Media
 What media vehicles should be used?
 How should the results be measured?
 Measurement
 How should the results be evaluated and
followed up?

Advertising Strategy:
An advertising strategy is a campaign developed to communicate ideas about products and
services to potential consumers in the hopes of convincing them to buy those products and
services. This strategy, when built in a rational and intelligent manner, will reflect other business
considerations (overall budget, brand recognition efforts) and objectives (public image
enhancement, market share growth) as well. As Portable MBA in Marketing authors Alexander
Hiam and Charles D. Schewe stated, a business's advertising strategy "determines the character
48
of the company's public face." Even though a small business has limited capital and is unable to
devote as much money to advertising as a large corporation, it can still develop a highly effective
advertising campaign. The key is creative and flexible planning, based on indepth knowledge of
the target consumer and the avenues that can be utilized to reach that consumer.

Today, most advertising strategies focus on achieving three general goals, as the Small Business
Administration indicated in Advertising Your Business: 1) promote awareness of a business and
its product or services; 2) stimulate sales directly and "attract competitors' customers"; and 3)
establish or modify a business' image. In other words, advertising seeks to inform, persuade, and
remind the consumer. With these aims in mind, most businesses follow a general process which
ties advertising into the other promotional efforts and overall marketing objectives of the
business.

Stages of Advertising Strategy

As a business begins, one of the major goals of advertising must be to generate awareness of the
business and its products. Once the business' reputation is established and its products are
positioned within the market, the amount of resources used for advertising will decrease as the
consumer develops a kind of loyalty to the product. Ideally, this established and ever-growing
consumer base will eventually aid the company in its efforts to carry their advertising message
out into the market, both through its purchasing actions and its testimonials on behalf of the
product or service.

Essential to this rather abstract process is the development of a "positioning statement," as

defined by Gerald E. Hills in "Marketing Option and Marketing" in The Portable MBA in
Entrepreneurship: "A 'positioning statement' explains how a company's product (or service) is
differentiated from those of key competitors." With this statement, the business owner turns
intellectual objectives into concrete plans. In addition, this statement acts as the foundation for
the development of a selling proposal, which is composed of the elements that will make up the
advertising message's "copy platform." This platform delineates the images, copy, and art work
that the business owner believes will sell the product.

With these concrete objectives, the following elements of the advertising strategy need to be
considered: target audience, product concept, communication media, and advertising message.
These elements are at the core of an advertising strategy, and are often referred to as the "creative
mix." Again, what most advertisers stress from the beginning is clear planning and flexibility.
And key to these aims is creativity, and the ability to adapt to new market trends. A rigid
advertising strategy often leads to a loss of market share. Therefore, the core elements of the
advertising strategy need to mix in a way that allows the message to envelope the target
consumer, providing ample opportunity for this consumer to become acquainted with the
advertising message.

TARGET CONSUMER: The target consumer is a complex combination of persons. It includes

the person who ultimately buys the product, as well as those who decide what product will be
bought (but don't physically buy it), and those who influence product purchases, such as
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children, spouse, and friends. In order to identify the target consumer, and the forces acting upon
any purchasing decision, it is important to define three general criteria in relation to that
consumer, as discussed by the Small Business Administration:

1. Demographics—Age, gender, job, income, ethnicity, and hobbies.

2. Behaviors—When considering the consumers' behavior an advertiser needs to examine
the consumers' awareness of the business and its competition, the type of vendors and
services the consumer currently uses, and the types of appeals that are likely to convince
the consumer to give the advertiser's product or service a chance.
3. Needs and Desires—here an advertiser must determine the consumer needs—both in
practical terms and in terms of self-image, etc.—and the kind of pitch/message that will
convince the consumer that the advertiser's services or products can fulfill those needs.

PRODUCT CONCEPT: The product concept grows out of the guidelines established in the
"positioning statement." How the product is positioned within the market will dictate the kind of
values the product represents, and thus how the target consumer will receive that product.
Therefore, it is important to remember that no product is just itself, but, as Courtland L. Bovee
and William F. Arens stated in Contemporary Advertising, a "bundle of values" that the
consumer needs to be able to identify with. Whether couched in presentations that emphasize
sex, humor, romance, science, masculinity, or femininity, the consumer must be able to believe
in the product's representation.

COMMUNICATION MEDIA: The communication media is the means by which the

advertising message is transmitted to the consumer. In addition to marketing objectives and
budgetary restraints, the characteristics of the target consumer need to be considered as an
advertiser decides what media to use. The types of media categories from which advertisers can
choose include the following:

 Print—Primarily newspapers (both weekly and daily) and magazines.

 Audio—FM and AM radio.
 Video—Promotional videos, infomercials.
 World Wide Web.
 Direct mail.
 Outdoor advertising—Billboards, advertisements on public transportation (cabs, buses).

After deciding on the medium that is 1)financially in reach, and 2) most likely to reach the target
audience, an advertiser needs to schedule the broadcasting of that advertising. The media
schedule, as defined by Hills, is "the combination of specific times (for example, by day, week,
and month) when advertisements are inserted into media vehicles and delivered to target
audiences."

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ADVERTISING MESSAGE: An advertising message is guided by the "advertising or copy
platform," which is a combination of the marketing objectives, copy, art, and production values.
This combination is best realized after the target consumer has been analyzed, the product
concept has been established, and the media and vehicles have been chosen. At this point, the
advertising message can be directed at a very concrete audience to achieve very specific goals.
Hiam and Schewe listed 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. However, many small businesses don't have the up-front capital to hire such
an agency, and therefore need to create their own advertising pieces. When doing this a business
owner needs to follow a few important guidelines.

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. The "selling
proposal" can act as a blueprint here, ensuring that the advertising fits the overall marketing
objectives. Many companies utilize a theme or a slogan as the centerpiece of such efforts,
emphasizing major attributes of the business's products or services in the process. But as Hiam
and Schewe caution, while "something must be used to animate the theme …care must be taken
not to lose the underlying message in the pursuit of memorable advertising."

When writing the copy, direct language (saying exactly what you mean in a positive, rather than
negative manner) has been shown to be the most effective. The theory here is that the less the
audience has to interpret, or unravel the message, the easier the message will be to read,
understand, and act upon. As Jerry Fisher observed in Entrepreneur, "Two-syllable phrases like
'free book,' 'fast help,' and 'lose weight' are the kind of advertising messages that don't need to be
read to be effective. By that I mean they are so easy for the brain to interpret as a whole thought
that they're 'read' in an eye blink rather than as linear verbiage. So for an advertiser trying to get
attention in a world awash in advertising images, it makes sense to try this message-in-an-eye-
blink route to the public consciousness—be it for a sales slogan or even a product name."

The copy content needs to be clearly written, following conventional grammatical guidelines. Of
course, effective headings allow the reader to get a sense of the advertisement's central theme
without having to read much of the copy. An advertisement that has "50% Off" in bold black
letters is not just easy to read, but it is also easy to understand.

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ART WORK AND LAYOUT: Small business owners also need to consider the visual rhetoric
of the advertisement, which simply means that the entire advertisement, including blank space,
should have meaning and logic. Most industry experts recommend that advertisers use short
paragraphs, lists, and catchy illustrations and graphics to break up and supplement the text and
make the document both visually inviting and easy to understand. Remember, an advertisement
has to capture the reader's attention quickly.

ADVERTISING BUDGET: The advertising budget can be written before or after a business
owner has developed the advertising strategy. When to make a budget decision depends on the
importance of advertising and the resources available to the business. If, for instance, 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. On the
other hand, if a business has the resources available, the advertising strategy can be developed to
meet predetermined marketing objectives. For small businesses, it is usually best to put together
an advertising budget early in the advertising process.

The following approaches are the most common methods of developing an effective budget. All
the methods listed are progressive ones that look to perpetuate growth:

 Percentage of future or past sales

 Competitive approach
 Market share
 All available funds
 The task or objective approach

The easiest approach—and thus the one that is most often used—is the percentage of future or
past sales method. Most industry experts recommend basing spending on anticipated sales, in
order to ensure growth. But for a small business, where survival may be a bigger concern than
growth, basing the advertising budget on past sales is often a more sensible approach to take.

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

 Communicating a change in the existing product line.

 Introduction of a new product or service.
 Increasing the buzz-value of the brand or the company.

Thus, several reasons for advertising and similarly there exist various media which
can be effectively used for advertising. Based on these criteria there can be several
branches of advertising. Mentioned below are the various categories or types of
advertising:

Print Advertising – Newspapers, Magazines, and Brochures

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

Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events

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

Broadcast advertising – Television, Radio and the Internet

Broadcast advertising is a very popular advertising medium that constitutes of

several branches like television, radio or the Internet. Television advertisements
have been very popular ever since they have been introduced. The cost of
television advertising often depends on the duration of the advertisement, the time
of broadcast (prime time/peak time), and of course the popularity of the television
channel on which the advertisement is going to be broadcasted. The radio might
have lost its charm owing to the new age media however the radio remains to be
the choice of small-scale advertisers. The radio jingles have been very popular
advertising media and have a large impact on the audience, which is evident in the
54
fact that many people still remember and enjoy the popular radio jingles.

Covert Advertising – Advertising in Movies

Covert advertising is a unique kind of advertising in which a product or a particular

brand is incorporated in some entertainment and media channels like movies,
television shows or even sports. There is no commercial in the entertainment but
the brand or the product is subtly (or sometimes evidently) showcased in the
entertainment show.

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.

Public Service Advertising – Advertising for Social Causes

Public service advertising is a technique that makes use of advertising as an

effective communication medium to convey socially relevant messaged about
important matters and social welfare causes like AIDS, energy conservation,
political integrity, deforestation, illiteracy, poverty and so on. David Oglivy who is
considered to be one of the pioneers of advertising and marketing concepts had
55
reportedly encouraged the use of advertising field for a social cause. Oglivy once
said, "Advertising justifies its existence when used in the public interest - it is much
too powerful a tool to use solely for commercial purposes.". Today public service
advertising has been increasingly used in a non-commercial fashion in several
countries across the world in order to promote various social causes. In USA, the
radio and television stations are granted on the basis of a fixed amount of Public
service advertisements aired by the channel.

Celebrity Advertising

Although the audience is getting smarter and smarter and the modern day
consumer getting immune to the exaggerated claims made in a majority of
advertisements, there exist a section of advertisers that still bank upon celebrities
and their popularity for advertising their products. Using celebrities for advertising
involves signing up celebrities for advertising campaigns, which consist of all sorts
of advertising including, television ads or even print advertisements.

Advertising campaign:
Steps For Advertising Campaign
 First step to be consider when developing advertising campaign is
Identification of the target audience. It is very important to understand your
audience and what are their needs. There researcher’s job becomes crucial to
understand the mind of the audience that advertisement could be related to
specific target.
 Second step is to establish message and budget objectives. Objectives for
message and budget have to be steady. Message objectives have to
informative, persuasive and reminding. Budget objectives has to be set to
allocate affordable percentage of the money that can be spend on that
particular advertise.

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  Third step is to Design ad. Creativity is a big part of this step. There has to
be combination of what to say and how to say it in the end meeting the
desired objectives. Art directors, copywriters, photographers play a major
role in this step.
 Fourth step of the advertising process is to Pretest what add will say. The
purpose of this step is to try to minimize mistakes. It can be done be testing
the reactions before add is placed for truth function. Research has to be done
to be sure that product’s market, consumers and competitors are correctly
defined. Copy testing is done in this step, to measure how effective add is.
 Fifth step is to choose the media(s) type and media schedule. Aperture (the
best window) has to be determined in this step. It is crucial to know when
and where the target audience can be reached. Perfect timing of the message
delivery is the main role in this step.
 Final sixth step in this process is to evaluate the advertising. In this step has
to be determined that advertisement is effective and it going to serve the
purpose. The impact of the message has to be set to its highest potential.
Post testing is a best way to do it. Communication about the product it self
and what has to be sad about it is a very important detail for company to
succeed at advertising.

ADVERTISING AGENCY:

An advertising agency or ad agency is a service business dedicated to creating,

planning and handling advertising (and sometimes other forms of promotion) for
its clients. An ad agency is independent from the client and provides an outside
point of view to the effort of selling the client's products or services. An agency
can also handle overall marketing and branding strategies and sales promotions for
its clients.

Typical ad agency clients include businesses and corporations, non-profit

organizations and government agencies. Agencies may be hired to produce an
advertising campaign.

Types of advertising agencies

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Full-service agencies
Most full-service agencies work on a combination of fee-based and commission based
compensation. The fee is paid by the entity for which the marketing is being done. The
commission is a payment from the media to the agency and is usually equal to 15% of the cost of
the advertisement. The broadcast media, radio and television, traditionally pay a commission.

Full-service, or media-neutral advertising agencies produce work for many types of media,
creating integrated marketing communications, or through-the-line (TTL) advertising. The
"line", in this case, is the traditional marker between the media that pay a commission to the
agency and the media that do not.

Full-service agencies are also known as traditional advertising agencies for the client, wherein
the client satisfies almost all their advertising or promotional needs with the same organization.
This type of agency provides advertising services such as strategic planning, creative
development, production, media planning, media buying, and other related services such as sales
promotional, direct selling, design, and branding, etc.

Interactive agencies

Interactive agencies may differentiate themselves by offering a mix of web

design/development, search engine marketing, internet advertising/marketing, or e-
business/e-commerce consulting. Interactive agencies rose to prominence before
the traditional advertising agencies fully embraced the Internet. Offering a wide
range of services, some of the interactive agencies grew very rapidly, although
some have downsized just as rapidly due to changing market conditions. Today,
the most successful interactive agencies are defined as companies that provide
specialized advertising and marketing services for the digital space. The 'digital
space' translates to the Internet, kiosks, CD-ROMs, DVDs, and lifestyle devices
(iPod, PSP, and mobile). Interactive agencies function similarly to advertising
agencies, although they focus solely on interactive advertising services. They
deliver services such as strategy, creative, design, video, development,
programming (Flash and otherwise), deployment, management, and fulfillment
reporting. Often, interactive agencies provide: digital lead generation, digital brand
development, interactive marketing and communications strategy, rich media
campaigns, interactive video brand experiences, Web 2.0 website design and
development, e-learning Tools, email marketing, SEO/SEM services, PPC
campaign management, content management services, web application
development, and overall data mining & ROI assessment.

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The recent boost in the interactive agencies can also be attributed to the rising
popularity of web-based social networking and community sites. The creation of
sites such as MySpace, Facebook and YouTube have sparked market interest, as
some interactive agencies have started offering personal and corporate community
site development as one of their service offerings. It still may be too early to tell
how agencies will use this type of marketing to monetize client ROI, but all signs
point to online networking as the future of brand marketing.

Tradigital agencies

Tradigital agencies are advertising agencies who are experts in both traditional and
digital advertising. They offer the best of both worlds and are very useful in
today’s digital age where all campaigns now require both online and above-the-line
advertising.

These agencies often buy out digital agencies. Now more then ever traditional
agencies are looking for a door into the digital world. They are often the only way
to extend your brand across all the numerous mediums of today’s markets.

Social media agencies

Social media agencies specialize in promotion of brands in the various social

media platforms like blogs, social networking sites, Q&A sites, discussion forums,
microblogs etc. The two key services of social media agencies are:

 social media marketing

 online reputation management

Agency departments
Creative department

The people who create the actual ads form the core of an advertising agency.
Modern advertising agencies usually form their copywriters and art directors into
creative teams. Creative teams may be permanent partnerships or formed on a
project-by-project basis. The art director and copywriter report to a creative
director, usually a creative employee with several years of experience. Although
copywriters have the word "write" in their job title, and art directors have the word
"art", one does not necessarily write the words and the other draw the pictures;

59
they both generate creative ideas to represent the proposition (the advertisement or
campaign's key message). Creative departments frequently work with outside
design or production studios to develop and implement their ideas. Creative
departments may employ production artists as entry-level positions, as well as for
operations and maintenance.

Account services

The other major department in ad agencies is account services or account

management. Account Services or account management is somewhat the sales arm
of the advertising agency. An account executive (one who works within the
account services department) meets with the client to determine sales goals and
creative strategy. They are then responsible for coordinating the creative, media,
and production staff behind the campaign. Throughout the creative process, they
keep in touch with the client to update them on the ad's progress and gain
feedback. Upon completion of the creative work, it is their job to ensure the ad's
production and placement.

Creative services

The creative services department may not be so well known, but its employees are
the people who have contacts with the suppliers of various creative media. For
example, they will be able to advise upon and negotiate with printers if an agency
is producing flyers for a client. However, when dealing with the major media
(broadcast media, outdoor, and the press), this work is 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.

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Job description

61
Advertising account executives act as a link between clients and the advertising
agency. They usually report to an account manager and are responsible for the day-
to-day running of their clients' campaigns. They liaise between the client and a
range of agency staff in order to coordinate the details of advertising campaigns.

Advertising account executives work closely with their clients throughout

campaigns, managing administrative and organisational work, and ensuring that
this is completed on time and on budget. The role can involve handling the
accounts of three to four clients or, in larger agencies, just one or two accounts.

Typical work activities

Typical work activities revolve around the running of advertising campaigns.

Tasks typically involve:

 Discussing the products, services and advertising requirements of each

particular client;
 setting up meetings with clients and other agency staff;
 delegating work to other members of the agency team;
 working with the account manager to brief media, creative and research
staff, and assist with the formulation of marketing strategies;
 liaising with, and acting as the link between, the client and advertising
agency by maintaining regular contact with both, ensuring that
communication flows effectively;
 overseeing the status of advertising campaigns;
 negotiating with clients and agency staff about the details of campaigns;
 presenting creative work to clients for approval or modification;
 meeting deadlines and prioritising tasks;
 handling budgets and managing campaign costs;
 writing reports, keeping records and financial details;
 helping to secure new business;
 undertaking administrative tasks;

62
  becoming familiar with the nature of clients' products, business culture and
competition and understanding the possibility of changes to these;
 monitoring the effectiveness of campaigns;

SURVEY ANALYSIS

1. Which of the following Mother Dairy brands/products are you aware of?

Milk 150

Curd 150

Ice-cream 97

Juices 69

Vegetables 121

Frozen Vegetables 78

Ghee 99

Lassi 150

Butter 150

Pickles 88

Jam 88

Vegetable Oil 63

Cheese 47

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Awareness about daily products is higher than other products. But as all the products are sold through
company franchised outlets most of the respondents were aware of the products of MDIL.

2. How often do you consume Mother Dairy Products?

64
 Daily Occasionally Never

150 0 0

All the products of MDIL are consumed on daily basis by respondents that include milk, curd, butter etc.

65
3. How often do you purchase the Mother Dairy products?

Daily Once a week Fortnightly

Milk Products 150 - -

Vegetables 78 21 22

Frozen Products 18 39 21

Jam, Pickles, etc - - 88

The purchase frequency of the respondents in shown in above graph it’s the highest for milk
products. MDIL is known to be a milk products company.

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4. Factors you consider while purchasing a Mother dairy products
RANK THEM ACCORDING YOUR PRIORITY:

Packaging Quality Brand Shelf Life Price Availability

98 143 145 112 81 117

The above bar graphs list the factors that matter the most in affecting the purchase decision of
respondents.

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 5. Listed below are statements about shopping behavior for Mother Dairy Products. Please check
one box for each statement to indicate the extent to which you agree or disagree with each
statement.
Agree Neither Disagree
Agree Nor
Disagree

I buy the products I like, regardless of other available 121 29

brands

I buy new products only when they are well accepted. 28 97 25

I am not as concerned about other products as I am 141 9

about price and quality.

I prefer to buy known brands rather than take a chance 150

on something new.

I am confident that I have good choice for consumer 150

products.

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69
6. Who influence you to purchase the brand?

Family Friends Advertisement Self Other

145 19 78 98

As evident from above the influence of the family members is the highest.

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7. In which media you have seen the advertisement of Mother Dairy products?

TV Magazine Billboard and Newspaper Internet Other

hoardings

86 12 13 21 0 18

Mother Dairy ads are mostly visible on TV followed by Newspaper.

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8. Which of the following would affect your choice of Mother Dairy Products?

No effective at all Affecting the most

Quality 150

Price 49 101

Promotional campaigns 69 81

The most important factor affecting the buying decision for MDI products is quality.

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9. What is our opinion towards Mother Dairy Products?

Decision No. of Respondents

Excellent 45

Good 80

Average 20

Poor 5

30% of the Respondents rated that Mother dairy products are excellent.54% of the respondents
rated as good and 13% of the respondents rated as average quality. 3% rated that Mother dairy
products are of poor quality.

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RESPONDENT PROFILE

Gender:

Male Female

11 139

Occupation:

Occupation No. of Respondents

Businessman 12

Executive 36

Government Service 31

Academics 6

House-Wife 45

Self-employed 4

Student 4

Others 12

74
Monthly Household Income:

<10000 10000-15000 15000-20000 >20000

11 19 46 74

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 FINDINGS & CONCLUSION:
First, I would like to present my survey findings. The main findings of my surveys
are as follows:

 Milk and Milk products are having high demand and are considered as
essential products. Most of the people were aware about daily products of
mother dairy like milk, curd, ice cream etc.

 The products of MDIL are consumed on daily basis by respondents that

include milk, curd, butter etc.

 The purchase frequency of the respondents as shown in the above graph is

maximum for milk products.

 The main purchasing factors for Mother Dairy products are quality & brand
image are considered important factors. Quality and brand image plays a
dominant role. Milk and Milk products move in the market due to its quality
and brand.

 The buying behavior indicates that the majority of the respondents buy the
mother dairy products regardless of other available brands. It also indicates
that the people buy only well accepted products.

 The buying behavior also indicates that the people are more concerned about
the price, quality of the products and the brand name.

 As evident from survey the influence from the family members and
advertisements were the highest.

 Mother Dairy ads are mostly visible on TV followed by Newspaper,

magazine and hoardings.

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  The most important factor affecting the buying decision for MDI products is
quality as compared to price and promotional campaigns.

 Majority of the Mother dairy products are rated as ‘good quality’.

 Gender plays a vital role in the purchase decisions. Females are the main
decision maker for the milk and milk products. Milk and milk products
purchase decisions are more decided by women rather than male, because
she acts as an invigilator, execute her decision and influence the same to
purchase while ascertaining the quality, freshness and price.

 The occupation of the user influences the purchase decisions. The particular
occupation plays a vital role in deciding the product or services. Women
segment are influencing more on milk and milk products. Therefore, an
occupation is the factor influencing the products.

 Income of the people decides the purchasing power. The high income
prefers to purchase product with quality, freshness etc.

Mother Dairy wants to get into bigger markets and have bigger shares in
those markets. The co-operative is also expanding its product portfolio further to
match rival offerings - particularly those of Amul. For the first 22 years of its
existence, liquid milk was the only dairy product that Mother Dairy offered.

It was in 1996 that it came up with ice-creams. But the real spurt came about four
years ago, when it introduced curd, flavoured milk, lassi and mishti doi. It
introduced butter a year-and-a-half ago; ghee and UTH milk a year ago; and
cheese, about 10 months ago. And under its frozen foods and vegetables brand
Safal, besides the introduction of corn and mixed vegetables, it has plans to come
out with frozen potato-based snacks in a few months.

So while the product portfolio has been growing, Mother Dairy has plans for reach
out to newer markets - but the strategy here is more product-specific. In liquid
milk, it will initially concentrate only on four markets - Delhi, its home ground; the

77
Junagarh region and Ahmedabad in Gujarat; Mumbai, which it entered a year ago;
and Hyderabad, where it moved in a little more than a year ago.

"The objective of getting into newer locations is not to make Mother Dairy larger,
but to ensure that there is a large viable distribution network and consumer brand
to take care of surplus milk .

In ice creams, it was only two years ago that Mother Dairy entered its first market
outside Delhi - UP and Punjab. Today, it's extended its operation to Haryana,
Jaipur, Mumbai and Kolkata as well. Next year, it plans to go south to Hyderabad
and Bangalore.

In the case of butter and cheese, it's present across north India, Mumbai and
Kolkata, and has plans to enter Bangalore by year-end. In UTH milk, it has entered
Mumbai and the milk-short areas of West Bengal and north-east. For ghee,
although the current focus is the northern region, it has plans for a nationwide
presence.

As far as Mother Dairy's non-dairy products are concerned, edible-oil brand Dhara
has already has nationwide presence.

Product differentiation

While Mother Dairy still may not have a product portfolio as large as Amul, which
is also expanding across the country in a big way and is a much bigger player, it's
doing its bit. Mother Dairy says the idea is not just to enter new markets, but to do
well in those markets - which means bigger market shares in the different product
categories in whichever market it is present.

The drivers will be value created through quality of the offerings as well as
innovations in products. This will, of course, be backed by relevant marketing
and promotion campaigns. Citing the example of ice creams, " The
differentiation for the consumer comes in taste and quality."

The Indianised flavours have done exceptionally well, something that the co-
operative has constantly focused on. Apparently, its best-seller in take-home ice
creams is not the regular Sundae, Jamaican Almond Fudge or Hazelnut Swril, but
an Indianised Sundae called Shahi Mewa Malai.

78
Mother dairy is bringing in mass Indian flavours which are building up in terms of
absolute percentage of contribution. The attempt is to make the taste experience in
ice creams as familiar as possible so as to increase consumption."

Take the case of curd. It started off very slow but today, Mother Dairy claims it's
growing at close to 60 per cent year-on-year in Delhi. Here again, the Indian
flavour formula seems to have worked.

"While curd from an MNC player is probably based on international formulation,

we formulated it to taste as close to home-made curd as possible. If your offering
fits well with the Indian consumer, the resistance is lower and acceptance more,"
says Mother Dairy's CEO.

Smart marketing

On the marketing front, Mother Dairy says it's trying to take its product campaigns
and communications to a higher platform. For instance, in the case of milk, the
campaigns do not talk about the obvious benefits - milk is good for health, it has
calcium and so on - but rather it targets children and are created around ideas
such as "The country needs you, grow faster". The TVC wants children to
achieve their ambitions faster. That the product is pure or healthy is a given for
us,".

As far as products such as butter, cheese and ice creams go, the campaigns have
been created around "taste". For butter again, the focus is on children. "Amul
butter may be selling the most, but the advertising and promotions are almost
always targeted at adults," points out an analyst citing Amul's popular Utterly-
Butterly campaigns.

Mother Dairy has dared to go different. Since 60 per cent butter is consumed by
kids, the company wants them to sit up and take notice of its butter. Makkhan
Singh, a sturdy jovial cow (a cartoon character) has been made its brand
ambassador.

While Mother Dairy has been carrying out school programmes - games and
activities - involving Makkhan Singh in Delhi, it has plans to take such activities to
Mumbai and Kolkata as well. It also runs a gaming website on the character to
attract children.

79
It's cheese for children again. A couple of months ago, Mother Dairy carried out a
retail activity: "Cheese khao superhero ban jao", where kids buying cheese at a
retail outlet were invited for a photo op - dressed as superheros - through Polaroid
cameras; and the framed photograph was presented to them. The activity was
carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000
snaps being taken.

Cheese was also something that helped the company bond better with its retailers.
Retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees ki cheez,"
a proposal that said if a consumer buys Mother Dairy cheese, the retailer can offer
him anything worth Rs 20 from the shop - which worked better than offering
something free with the product, which the consumer didn't even needs.

ANNEXURE
QUESTIONNAIRE

(Tick whichever applicable)

1. Which of the following Mother Dairy brands/products are you aware of?

 Milk  Curd

 Ice-cream  Juices

 Vegetables  Frozen Vegetables

 Ghee  Lassi

 Butter  Pickles

 Jam  Vegetable Oil

 Cheese

2. How often do you consume Mother Dairy Products?

 Daily  Occasionally  Never

3. How often do you purchase the Mother Dairy products?

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 Daily Once a week Fortnightly

Milk Products   

Vegetables   

Frozen Products   

Jam, Pickles, etc   

4. Factors you consider while purchasing a Mother dairy products

RANK THEM ACCORDING YOUR PRIORITY:

 Packaging  Quality

 Brand  Shelf Life

 Price  Availability

5. Listed below are statements about shopping behavior for Mother Dairy Products. Please check one
box for each statement to indicate the extent to which you agree or disagree with each statement.

Agree Neither Disagree

Agree Nor
Disagree

I buy the products I like, regardless of other available

brands

I buy new products only when they are well

accepted.

I am not as concerned about other products as I am

about price and quality.

I prefer to buy known brands rather than take a

chance on something new.

I am confident that I have good choice for consumer

products.

81
6. Who influence you to purchase the brand?

 Family  Friends

 Advertisement  Self

 Other

7. In which media you have seen the advertisement of Mother Dairy products?

 TV

 Magazine

 Billboard and hoardings

 Newspaper

 Internet

 Other

8. Which of the following would affect your choice of Mother Dairy Products?

No effective at all Affecting the most

Quality

Price

Promotional campaigns

9. What is our opinion towards Mother Dairy Products?

Excellent 
Good 
Average 
Poor 

Respondent Profile

Name:

82
Age:

Sex: Male  Female 

Occupation: (tick one)

 Businessman  Executive  Government Service  Academics

 House-Wife  Self-employed  Student

 Others ________________________(Please Specify)

Monthly Household Income:

 <10000  10000-15000  15000-20000  >20000

******************************************

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