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A PROJECT REPORT ON ETHICS IN ADVERTISING

A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelors of Management Studies (Marketing)

Under the Faculty of Commerce

By

PRANIT BHAGWAN DIGHE

Roll No. 155

Under the Guidance of Dr. Urmila Shetve

Vidya Prasarak Mandal

K.G. Joshi College Of Arts and

N.G. Bedekar College Of Commerce (Autonomous),

Jnanadweepa, Chendani Bunder Road, Thane (W) 400601

March 2024

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Declaration
I undersigned Pranit Bhagwan Dighe hereby, declare that the work
embodied in this project work titled ‘A project report on Ethics in
Advertising’ forms my own contribution to the research work carried out
under the guidance of Dr Urmila Shetve is a result of my own research
work and has not been previously submitted to any other University for
any other Degree or Diploma to this or any other University.

Wherever references have been made to previous works of others, it has


been clearly indicated as such included in the bibliography.

I, here further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

Pranit Bhagwan Dighe

Certified by

Dr. Urmila Shetve

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Acknowledgement
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr. Suchitra Naik for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our coordinator Mr. Nitin Pagi, for his moral support
and guidance.

I would also like to express my sincere gratitude towards my Project Guide

Dr. Urmila Shetve whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

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Table of contents

Serial Description Page no.


no.
1. Certification I
2. Declaration II
3. Acknowledgement III
4. Table of contents & graphs IV
5. Chapter I 2-30
Title of the project & Introduction
6. Chapter II 32-37
Research Methodology
7. Chapter III 39-55
Literature Review
8. Chapter IV 57-68
Data Analysis, Interpretation & Presentation

9. Chapter V 70-71
Conclusion & Suggestions
10. Chapter VI 73
Bibliography
11. Chapter VII 75-76
Appendix

List of tables and graphs


Sr.no Description Page No
1 Fig 4.1 57
2 Fig 4.2 58
3 Fig 4.3 59
4 Fig 4.4 60
5 Fig 4.5 61
6 Fig 4.6 62
7 Fig 4.7 63
8 Fig 4.8 64
9 Fig 4.9 65
10 Fig 4.10 66

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Chapter I
Introduction

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Chapter I

Title of the project

The present study is titled as “a project report on ethics in advertising”. In this project
we will study about ethics in advertising. Today the India’s advertising industry is
expanding its business at a rapid rate. India’s advertising industry in very little time
has carved a niche for itself and placed itself on a global map. But over the years
advertising have created debatable ethical issues like ITC, surrogate advertising,
puffery, unverified claims, women stereotype, comparative advertising, use of
children in advertising etc.

Introduction

Ethics or moral philosophy is basically a branch of philosophy which involves


systematic, defending, and recommending concepts of right and wrong conduct. It
basically answers the question about what is right or wrong. The term ethics derives
from the greek word “ethos” which means customs or habits. Ethics primarily
investigates the questions like what is the best way for people to live. And what
actions are right or wrong in particular circumstances? The purpose of having ethics
in a society is basically to resolve questions of human morality by defining concepts
such as good and evil, right and wrong, virtue and vice, justice and crime. Advertising
is basically an audio or visual form of marketing communication that employs an
openly sponsored, no personal message to promote or sell a product, service or idea.
Advertising is communicated through various mass media, including old media such
as newspapers, magazines, television, and radio; out-door advertising or direct mail;
or new media such as search results, blogs, websites or text messages. So basically,
advertising supported by the ethics that prevail in a country, helps accompany in
attracting the consumers to buy their products or services or anything else, like idea or
a message or a person or a place. The main purpose of doing advertising ethically is
basically because of the norms and rules of society in which a company operates.

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What is ethics?

Ethics means “good conduct” or “conduct which is right in view of the society and the
time period”. By common consent, various modes of behaviour and conduct are
viewed as “good” or “bad”. In other word, we can say that ethics are the guideline
principles and values that govern the actions, behaviour and decisions of an individual
or group. Ethics is a choice between good and bad or between right and wrong. It is
governed by a set of principles of morality at a given time and at a given place and in
a given society.

What is ethics in advertising?

Ethics means “good conduct” or “conduct which is right in view of the society and the
time period”. By common consent, various modes of behaviour and conduct are
viewed as “good” or “bad”. In other word, we can say that ethics are moral principles
and values that govern the actions and decisions of an individual group. Ethics is a
choice between good and bad, between right and wrong. It is governed by a set of
principles of morality at a given time and at a given place and in a given society.
Ethics is related to group behaviour in ultimate analysis, thus setting norms for an
individual to follow in consistence with the group norms. A particular action May be
within the law and still not be ethical; target marketing is a good example for this.
There is no law to restrict tobacco companies from promoting their brands to Africans
& American, though it is in India but for doordarshan only. Similarly the alcoholic –
beverage companies promote their brands & target not only college students but
underage drinkers as well. These advertisements have increased alcohol related
problems. Advertisements exposing pornography is another serious issue in
advertising industry today. Advertisements promoting permissiveness & objectifying
women are heavily criticized in the society. Therefore, even advertising has ethical
value. The mixing of art and facts in advertising communication are subservient to
ethical principles. In today’s competitive and buyer’s market, an advertisement has to
be truthful and ethical. If an advertisement is misleading, the credibility of the
organization is lost. To view the truth in advertisement, it has to be seen from to
consumer’s point of view rather than from legal point. The advertising industry has

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been frequently criticized for putting out misleading or exaggerated claims in respect
of product, goods and services advertised. It is also perceived as guilty of glorifying
certain habits or tendencies regarded as undesirable and encouraging consume rest
culture. However, it is very difficult to demarcate a clear line of difference between
what is true and what is untrue. But the advertisement as such is judged by its impact
and by its acceptance by the consumers. The product must fulfil its advertised claims.
Advertisements should be decent and not be obscene. It must be truthful. Gambling is
also unethical. Sometimes, celebrities endorsing the product and spreading falsehood
is also criticized. Advertising is a social process, thus it must follow the time-tested
norms of social behaviour and should not affront our moral sense. In short ethics are
rules of conduct or principles of morality that point us towards the right or best way to
act in a situation. Ethics vary from person to person, society-to-society point of view.
Remember that the various people have different backgrounds, values and interests.
You May see nothing wrong with the advertisements for cigarettes or beer or sexually
suggestive ads, but other students; many oppose these actions on moral and ethical
grounds. You will have to draw your own conclusions as to what is right and what is
wrong!

Ethics in advertising refers to the moral principles and values that guide advertising
practices. Ethics in advertising involves a set of standards that advertisers are
expected to follow to ensure that their advertising is truthful, fair, and responsible.
Advertisers have a responsibility to the public, their clients, and their own business to
ensure that advertising is conducted in an ethical and socially responsible manner.

One of the main ethical considerations in advertising is the need for truthful and
accurate advertising. Advertisers have a responsibility to ensure that their advertising
is not misleading or deceptive, and that any claims made in advertisements are backed
up by evidence. This includes not making false or exaggerated claims about the
features, benefits, or performance of a product or service.

Another ethical consideration in advertising is the need for respect and dignity for
individuals and groups. Advertisements should not contain any material that is
discriminatory, offensive, or harmful to any individual or group. Advertisers should

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also avoid exploiting vulnerable groups or individuals, such as children or people with
disabilities.

Ethics in advertising also involves the need for transparency and disclosure.
Advertisers should clearly disclose any sponsorship or financial relationships they
have with the products or services they are advertising. This includes disclosing any
payments or incentives they receive for promoting a product or service.

In summary, ethics in advertising involves a commitment to honesty, respect, and


social responsibility in advertising practices. Advertisers who adhere to ethical
standards are more likely to build trust with their clients and the public, which can
lead to long-term success for their business.

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Profile of the company - ITC

1. History of the company

ITC ltd is one of India's foremost private sector companies. ITC has a diversified
presence in

Cigarettes hotels paperboards & specialty


papers packaging

Agribusiness packaged foods &


confectionery information

Technology branded apparel personal care


stationery safety matches and other FMCG
products. While ITC is an outstanding
market leader in its traditional businesses of cigarettes hotels paperboards packaging
and agri-exports it is rapidly gaining market share even in its nascent businesses of
packaged foods & confectionery branded apparel personal care and stationery. ITC's
wholly owned information technology subsidiary ITC InfoTech India ltd provides its
services and solutions to leading global customers. ITC InfoTech has carved a niche
for itself by addressing customer challenges through innovative it solutions. ITC's
production facilities and hotels have won numerous national and international awards
for quality productivity safety and environment management systems. ITC was the
first company in India to voluntarily seek a corporate governance rating. ITC was
incorporated on August 24 1910 under the name imperial tobacco company of India
ltd. As the company's ownership progressively Indianite the name of the company
was changed from imperial tobacco company of India ltd to India tobacco company
ltd in the year 1970 and then to I.T.C. ltd in the year 1974.

In recognition of the company's multi-business portfolio encompassing a wide range


of businesses -

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Cigarettes & tobacco hotels information technology packaging paperboards &
specialty papers agri-business foods lifestyle retailing education & stationery and
personal care - the full stops in the company's name were removed effective
September 18 2001. The company now stands rechristened ITC ltd. During the year
first six decades of the company's existence were primarily devoted to the growth and
consolidation of the cigarettes and leaf tobacco businesses the seventies witnessed the
beginnings of a corporate transformation that would usher in momentous changes in
the life of the company. In the year 1925 the company set up packaging & printing
business as a strategic backward integration for ITC's cigarettes business. It is today
India's most sophisticated packaging house.in the year 1975 the company launched its
hotels business with the acquisition of a hotel in Chennai which was rechristened
'ITC-welcomgroup hotel chola'.

In the year 1979 they entered the paperboards business by promoting ITC
bhadrachalam

Paperboards ltd which today has become the market leader in India. In the year 1985
the company set up surya tobacco co. In Nepal as an indo-Nepal and British joint
venture. In the year 1990 the company acquired tribeni tissues ltd a specialty paper
manufacturing company and a major supplier of tissue paper to the cigarette industry.
The merged entity was named the tribeni tissues division (ttd). In the year 1990 the
company set up the agri business division for export of agricommodities.

Today the division is one of India's largest exporters. In the year 2000 the company
spun off its information technology business into a wholly owned subsidiary ITC
InfoTech India ltd to more aggressively pursue emerging opportunities in this area.
Also the company forayed into the greeting gifting and stationery products business
with the launch of expressions range of greeting cards. A line of premium range of
notebooks under brand 'paperkraft' was launched in 2002. To augment its offering and
to reach a wider student population the popular range of notebooks was launched
under brand 'classmate' in the year 2003.

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The company also entered the lifestyle retailing business with the wills sport range of
international quality relaxed wear for men and women in the year 2000. The wills
lifestyle chain of exclusive stores later expanded its range to include wills classic
formal wear (2002) and wills clublife evening wear (2003).

ITC also initiated a foray into the popular segment with its men's wear brand john
players in 2002. The company forayed into the foods business to create a new driver
of business growth. It began in August 2001 with the introduction of 'kITChens of
India' ready-to-eat Indian gourmet dishes.

In 2002 the company entered the confectionery and staples segments with the launch
of the brands mint-o and candy man confectionery and aashirvaad atta (wheat flour).
Also the company's philosophy of contributing to enhancing the competitiveness of
the entire value chain found yet another expression in the safety matches initiative.

ITC now markets popular safety matches brands like ikno mangaldeep aim aim mega
and aim metro.

Bhadrachalam paperboards ltd amalgamated with the company effective March 13


2002 and became a division of the company bhadrachalam paperboards division.In
November 2002 this division merged with the company's tribeni tissues division to
form the paperboards & specialty papers division.

In August 2002 surya tobacco became a subsidiary of ITC ltd and its name was
changed to surya nepal pvt ltd (surya nepal).in the year 2003 the company entered the
biscuits segment with the introduction of sun feast. Also the company forayed into the
marketing of agarbattis (incense sticks) in partnership with the cottage sector. The
company's popular agarbattis brands include spriha and mangaldeep across a range of
fragrances like rose jasmine bouquet sandalwood madhur sambrani and nagchampa.

In the year 2004 the company acquired the paperboard manufacturing facility of bilt
industrial packaging co ltd (bipco) near coimbatore tamil nadu.

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In July 2005 the company introduced essenza di wills an exclusive range of fine
fragrances and bath & body care products for men and women. Inizio the signature
range under essenza di wills provides a comprehensive grooming regimen with
distinct lines for men (inizio homme) and women (inizio femme).

In the year 2007 the company entered the fast growing branded snacks category with
'bingo!'.the company launched 'fiama di wills' a premium range of shampoos shower
gels and soaps in September October and December 2007 respectively. The company
also launched the 'superia' range of soaps and shampoos in the mass-market segment
at select markets in October 2007 and vivel de wills & vivel range of soaps in
February and vivel range of shampoos in June 2008.

In the year 2008 the company repositioned the business as the education and
stationery products Business and launched India's first environment friendly premium
business paper under the 'paperkraft' brand. Paperkraft entered new categories in the
office consumable segment with the launch of text liners permanent ink markers and
white board markers in 2009.

During the year 2009-10 the company launched new variants of 'gold flake' and 'navy
cut filter kings' with innovative product features limited edition packs of 'classic' and
launch of new brands like 'flake excel filter' and 'duke filter'. The company also
launched its premium line of hand-rolled cigars in select markets under the brand
name 'armentieres'. During the year the company launched 'mint-o gol' in the 'chews'
category.

In the agarbattis the company launched a new variant 'fragrance of temple' in tamil
nadu under the 'mangaldeep' brand which delivers temple aroma. In the personal care
segment the company launched 'fiama di wills' gel bathing bar. Also they
strengthened the brand 'vivel' with the launch of the 'milk cream & glycerin' bathing
bar in the winter care segment and 'deo spirit' in the freshness segment.

In October 2009 the company launched the ITC royal gardenia a 292 room luxury
offering in bangalore. It is the largest leed (leadership in energy and environmental

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design) platinum rated hotel in the world and the first in asia to achieve this
distinction.

In the year 2011 ITC limited proposed invest up to rs 3000 crore to set up a paper
manufacturing unit in andhra pradesh as part of its plans to double capacity over the
next five years.

ITC also entered into lifestyle retailing and the stationery segments through its
premium brands paperkraft notebooks and wills sport apparel range. Eventually the
company launched mass-appeal brands like classmate: notebooks and john players:
menswear.

ITC opened first premium cigar retail store in delhi. ITC ltd also acquired the entire
shareholding of russell credit ltd. (wholly owned subsidiary of the company) in
wimco ltd. (wimco) (i.e. 96.825% of wimco's equity share capital). Consequently
wimco became a direct subsidiary of the company with effect from September 29
2011.

In 2012 ITC ltd acquired 22606065 ordinary shares having no par value of technical
pty ltd (tpl) a company incorporated in australia from russell credit ltd wholly owned
subsidiary of the company. Consequently tpl became a wholly owned subsidiary of
the company with effect from March 26 2012.

In 2013 ITC ltd has launched a social investment project mission sunehrakal (msk) in
mysore district to conserve soil and moisture. ITC also forayed into the biscuits
market with its sun feast range of glucose marie and cream biscuits. ITC infotech
becomes the 1st ptc authorized training partner in India. ITC hotels tied up with rp
group hotels & resorts to manage 5 hotels in India and dubai.

ITC's leading personal care brand announced the launch of its second edition of the
signature series of the couture spa range of gel bathing bars. ITC's leading personal
care brand also announced the launch of its unique skin nourishing range of soaps -
vivelin 2014 ITC has been voted among the top two 'buzziest brands' in the 'corporate'
category by 'afaqs' one of the world's largest marketing and advertising portals.

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ITC's leading personal care brand and one of India's most exciting brands introduced
`love & nourish'. ITC becomes fastest firm to clock rs 1000 cr revenue in stationery
market. ITC's engage range takes second spot in deo market by volume. ITC also
replaces tcs as India's most admired company.

ITC enters e-cigarette business. ITC hotels launches one of largest ever foreign
investments in colombo in 2015 ITC's paper boards and specialty papers division
introduced grease-resistant paper boards. ITC acquired 87.06% equity share capital of
classic infrastructure & development ltd. Russell credit ltd. A wholly owned
subsidiary of the company has acquired the entire equity share of wills corporation
ltd. (wills).

ITC also launches vivel ayurveda essence in kerala. On 13 February 2015 ITC
announced that the company has entered into asset purchase agreements with m/s.
Johnson & Johnson ltd. India & m/s. Johnson & Johnson pte. Ltd. Singapore for
purchase of `savlon' and `shower to shower' trademarks and other intellectual property
respectively primarily for use in India.

On 23 February 2015 ITC announced that the company has been declared as the
highest/successful bidder for park hyatt hotel located at 263-c arossim cansaulim goa
along with land and built up area of the hotel together with all buildings and structures
and plant & machineries.

This property of m/s. Blue coast Hotels ltd. was put up on sale by ifci ltd. Through
public auction under the provisions of the Securitization and reconstruction of
financial assets and enforcement of security interest act 2002 On 24 March 2016 ITC
announced that it has acquired the entire equity share capital of technico agri sciences
limited India from technico pty limited australia for a total consideration of rs 121
crore.

The acquisition is a related party transaction between ITC and technico pty limited a
wholly owned subsidiary of ITC. Technico agri sciences limited is in the agricultural

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bio-technology business primarily of growing and selling of technituber seed potatoes
and field generated seed potatoes.

On 2 April 2016 ITC announced that the company has been compelled to shut its
cigarette factories with effect from 1 April 2016 until clarity emerges in the uncertain
state of the rules on health warning on cigarette packs.

On 5 May 2016 ITC announced that the Supreme Court on 4 May 2016 passed an
order transferring to the karnataka high court all writ petitions pending in various
courts challenging the rules prescribing 85% pictorial warnings on packages of
tobacco products. The Supreme Court observed that all parties should endeavour to
follow the rules.

On 8 May 2016 ITC announced that its cigarette factories are commencing production
progressively. ITC's board of directors at its meeting held on 20 May 2016
recommended issue of bonus shares in the ratio of 1:2.

On 9 October 2016 ITC announced divestment of its entire shareholding in its wholly
owned subsidiary king maker marketing inc. Usa along with assignment of certain
trademarks owned by the company for total consideration of US$24 million. The
company allotted 4026657100 ordinary shares of re 1/- each fully paid-up were issued
and allotted as bonus shares in the proportion of 1 (one) bonus share of re 1/- each for
every existing 2 (two) fully paid-up ordinary shares of re 1/- each held on 04 July
2016 being the record date determined by the board for the purpose. The bonus shares
were allotted on 07 July 2016.during the year the company divested the entire equity
shareholding in king maker marketing inc. (kmm) new jersey usa.

Consequently effective 16 November 2016 kmm ceased to be a subsidiary of the


company.pursuant to pyxis inc. Merger with ITC infotech (usa) inc. With effect from
1st April 2016 pyxis has ceased to be a subsidiary of ITC infotech India limited and
that of ITC limited with effect from that date. During the year ITC infotech (usa) inc.
A wholly owned subsidiary of ITC infotech India limited subscribed to the entire
share capital of indivate inc. A company incorporated in usa. Consequently indivate
inc. Became a wholly-owned subsidiary of ITC infotech inc. Usa with effect from 18

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November 2016.as on 31 March 2017 the company has 24 subsidiaries including 9
subsidiaries outside India.

During 2018-19 ITC launched over 50 new FMCG products across categories such as
foods personal care education and stationery products agarbatti and matches
strengthening its diverse and differentiated portfolio of FMCG offerings.

On 10 July 2018 ITC global holdings pte. Limited singapore a subsidiary of the
company which had been under winding up was dissolved vide the order of high court
of the republic of singapore. Consequently global ceased to be a subsidiary of ITC ltd.

During the fy2020 ITC launched a bouquet of specially crafted innovative products
with agility and speed to cater to the consumers' urgent needs for health wellness and
hygiene solutions. It launched over 60 new products. The amalgamation of sunrise
foods private limited and its subsidiaries with the company was approved by the
board of directors on 04 September 2020. The necessary petitions seeking sanction of
the national company law tribunal to the said amalgamation have been filed.

As on 31 December 2020 the company has 28 subsidiaries 4 joint venture and 7


associate companies under its roof. During fy 2021 scheme of amalgamation of
sunrise foods private ltd with the company was approved by hon'ble national
company law

Tribunal kolkata bench vide order dated 26 February 2021 which became effective
from 01 April 2021 and consequently sunrise got amalgamated with the company
with effect from the appointed Date 27 July 2020. During the year wimco limited
became a wholly owned subsidiary of the Company with effect from 29th July 2021.

The scheme for amalgamation of hobbits international Foods private limited and
sunrise sheetgrah private limited with the company was sanctioned by Hon'ble
national company law tribunal Allahabad bench effective from 12 August 2021.as on
30 September 2021 the company has 25 subsidiaries 4 joint venture companies and 7
associate companies.

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2. General overview

ITC is one of India's foremost private sector companies and a diversified


conglomerate with businesses spanning fast moving consumer goods, hotels,
paperboards and packaging, agribusiness, and information technology. The company
is acknowledged as one of India's most valuable business corporations with a gross
sales value of ₹ 76,097.31 crores and a net profit of 15,136.05 crores (as of
31.03.2020).

ITC was ranked as India's most admired company, according to a survey conducted
by fortune India, in association with hay group. ITC is the country's leading FMCG
marketer, the clear market leader in the Indian paperboard and packaging industry, a
globally acknowledged pioneer in farmer empowerment through its wide-reaching
agri business, a pre-eminent hotel chain in India that is a trailblazer in 'responsible
luxury'.

ITC's wholly-owned subsidiary, ITC infotech, is a specialized global digital solutions


provider. Over the last decade, ITC's new consumer goods businesses have
established a vibrant portfolio of 25 world-class

Indian brands that create and retain value in India. ITC's world-class FMCG brands
including Aashirvaad, sun feast, yippee!, bingo!, b natural, ITC master chef, fabelle,
sun bean, fiama, engage, vivel, savlon, classmate, paper craft, mangaldeep, aim, and
others have garnered encouraging consumer franchise within a short span of time.
While several of these brands are market leaders in their segments, others are making
appreciable progress.

ITC limited, formerly known as imperial tobacco company of India limited, is a


diversified conglomerate based in India. The company has interests in various
industries, including cigarettes and tobacco, fast-moving consumer goods (FMCG),
hotels, paperboards, specialty papers, and packaging.

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ITC is one of India's largest companies by market capitalization and is listed on both
the bombay stock exchange and the national stock exchange of India. The company
was founded in 1910 and has since grown to become a significant player in various
industries in India and globally.

In the cigarettes and tobacco industry, ITC is a major player in India, with a strong
portfolio of cigarette brands that includes popular names such as wills, gold flake, and
navy cut. The company also has a significant presence in the FMCG sector, with
products in categories such as packaged foods, personal care, and home care.

ITC's hotels business operates under the brand name ITC hotels and has a presence in
several cities in India. The company's paperboards and specialty papers business is
focused on sustainable and environmentally friendly products and has won several
awards for its efforts in this area.

In recent years, ITC has focused on sustainability and social responsibility as part of
its business strategy, with initiatives related to reducing its environmental footprint,
promoting sustainable agriculture, and supporting rural communities in India.

Overall, ITC is a diversified conglomerate with a strong presence in various industries


in India and a growing presence globally. The company's focus on sustainability and
social responsibility reflects a commitment to responsible business practices and a
long-term perspective on business operations.

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3. Policies of the company

Policies:-

▪ Stakeholder engagement.

▪ Responsible advocacy.

▪ Product responsibility.

▪ Policy on sustainable supply chain and responsible sourcing.

▪ Freedom of association.

▪ Diversity, equity and inclusion.

▪ Prohibition of child labour and prevention of forced labour at the workplace.

▪ Environment, health & safety.

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4. Vision and Mission

The vision and mission of the Indian tobacco company (ITC) are as follows:

Vision: "to be India's most valuable corporation by 2030, through innovative products
and services, while preserving and enhancing the country's natural and social capital."

ITC's vision statement emphasizes its commitment to becoming the most valuable
corporation in India by 2030. The company aims to achieve this by developing
innovative products and services that meet the evolving needs of consumers while
also preserving and enhancing the country's natural and social capital. This vision
statement highlights ITC's focus on sustainability, responsible business practices, and
creating long-term value for all stakeholders.

Mission: "to enhance the wealth generating capability of the enterprise in a


globalizing environment, delivering superior and sustainable stakeholder value."

ITC's mission statement is centered on enhancing the wealth-generating capability of


the enterprise in a globalizing environment. The company aims to achieve this by
delivering superior and sustainable stakeholder value. This mission statement reflects
ITC's commitment to creating value for its stakeholders, including customers,
employees, investors, suppliers, and communities, while also adapting to the changing
global business environment.

Overall, ITC's vision and mission statements emphasize the company's commitment
to sustainable and responsible business practices, creating long-term value for all
stakeholders, and adapting to the changing business environment to achieve its goals.

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5. General future plans of ITC

Some general future plans of ITC:

Diversification: ITC plans to continue to diversify its business beyond tobacco and
into other areas such as fast-moving consumer goods, hotels, paperboards, and
packaging. The company aims to reduce its reliance on tobacco and create a more
balanced portfolio of businesses.

Sustainability: ITC plans to continue its focus on sustainability and responsible


business practices. The company has set ambitious targets to reduce its carbon
footprint and improve the sustainability of its supply chain.

Innovation: ITC plans to invest in innovation and product development to create new
and innovative products that meet the changing needs of consumers. The company is
also exploring the use of new technologies such as blockchain and artificial
intelligence to improve its operations and customer experience.

International expansion: ITC plans to expand its presence in international markets


and increase its exports. The company aims to capitalize on the growing demand for
Indian goods and services in global markets.

Digital transformation: ITC plans to leverage digital technologies to transform its


business processes and improve efficiency. The company is investing in digital
platforms and technologies to enhance its customer engagement and improve its
supply chain management.

Overall, ITC's future plans reflect a commitment to sustainability, innovation, and


diversification, and a focus on leveraging technology to create new opportunities and
drive growth.

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6. International marketing

Indian tobacco companies May use a variety of strategies for international marketing,
including:

Global standardization: this approach involves developing standardized products


and marketing strategies that can be used in multiple markets around the world. Indian
tobacco companies May use this approach to reduce costs and increase efficiency in
their international marketing efforts.

Localization: this approach involves adapting products and marketing strategies to


suit the unique cultural and social characteristics of different markets. Indian tobacco
companies May use this approach to better connect with local consumers and improve
the effectiveness of their marketing efforts.

Partnership and collaboration: Indian tobacco companies May collaborate with


local partners, such as distributors, retailers, or marketing agencies, to help them
navigate local market conditions and regulations, as well as to gain access to local
knowledge and expertise.

Online marketing: Indian tobacco companies May use online marketing strategies to
reach global audiences, such as social media advertising, search engine optimization,
and e-commerce platforms.

It is important to note that the marketing of tobacco products is heavily regulated in


many countries around the world, and Indian tobacco companies must comply with
local laws and regulations related to tobacco advertising and promotion. Additionally,
due to the harmful health effects of tobacco products, there is increasing pressure on
companies to engage in responsible marketing practices and consider the ethical
implications of their marketing activities

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7. ITC portfolio

ITC's world class FMCG brands including aashirvaad, sun feast, yippee!, bingo!, b
natural, ITC

Master chef, fabelle, sun bean, fiama, engage, vivel, savlon, classmate, paper craft,

Mangaldeep, aim and others have garnered encouraging consumer franchise within a
short span of time.

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8. Organizational structure of ITC

An organizational structure defines how activities such as task allocation, co-


ordination and supervision are directed toward the achievement of organizational
aims. Organizations need to be efficient, flexible, innovative and caring in order to
achieve sustainable competitive and advantage. Organizational structure can also be
considered as the viewing glass or perspective through which individuals see their
organization and its environment.

22
9. Swot analysis

The swot analysis of ITC includes its strengths, weaknesses, opportunities, and
threats. And in this reading of the swot analysis of ITC ltd., we will examine this
beauty and wellness company in terms of its internal and external factors.

23
▪ Strengths

ITC has 6 strong and diverse business units under its name that drive its portfolio of
business units: overall revenues and enable ITC to innovate and explore more
business opportunities.

Effective social business initiatives: ITC has developed a triple bottom line strategy
that focuses on developing the economic, social and environmental capital of the
nation. ITC has launched initiatives like e-choupal, choupal pradarshan khet (cpk) that
benefit the people at the grass roots level i.e. Farmers. These initiatives have also
helped ITC improve its corporate image from a traditional tobacco manufacturer.

Strong brands across products: ITC is a strong branded company whose products are
leaders in most of the segments in which they operate. ITC owns some of the most
popular cigarette brands such as gold flake and classic. ITC also owns sun feast,
which is one of the best selling biscuits in India. Similarly, aashirvaad, yippee!,
engage, john players and bingo are among the market leaders in their respective
categories.

▪ Weaknesses

Mostly dependent on tobacco: ITC has made continuous efforts to decouple its FMCG
business from over-dependence on tobacco products and has been successful to some
extent. However, tobacco products continue to be the major source of revenue,
accounting for more than 60% of the total revenue from FMCG business.

Brand image: ITC has made great efforts to improve its corporate image, but the fact
that ITC has many tobacco products in its portfolio affects its corporate image.

Tax increase: increase in tax on tobacco products affects prices and hence revenue.

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▪ Opportunities

Strategic acquisitions: ITC should continue with strategic acquisitions as they have
done in the past with the acquisition of savlon from Johnson & Johnson and b natural
from balan natural foods. As the product fits into the existing distribution network,
ITC can look to expand its product portfolio and grow its non-tobacco FMCG
business, thereby strengthening its revenue base.Growth in purchasing power: ITC
should take advantage of the growing purchasing power and improvement in lifestyle
of customers in India. This could help increase revenues across all business segments.
Food and personal care products: ITC should leverage its distribution channels in the
personal care and food processing industries to benefit from the growth in these
categories to increase revenue. Rural market: the growing rural market in India and
other emerging markets offer tremendous opportunities to improve the company’s
bottom line.

▪ Threats

Intensified competition in FMCG sector: ITC faces intense competition in its FMCG
business from large multinationals like HUL and P&G and Indian FMCGs like
Patanjali and dabur. This restricts ITC’s market share.

Stringent regulations & rise in taxes in cigarette business: the tobacco and cigarette
industry in India continues to be threatened by stringent government regulations and
tax regimes. This poses a threat to ITC’s highly profitable cigarette business.

Growing health awareness: health awareness has increased, leading to a decline in


demand for tobacco products in India. Anti-smoking campaigns across the country are
also impacting the sale of cigarettes.

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10. Marketing strategy of ITC

Marketing strategy of ITC analyses the brand with the marketing mix framework
which covers the 4ps (product, price, place, and promotion). There are several
marketing strategies like product innovation, pricing approach, promotion planning
etc. These business strategies, based on ITC marketing mix, help the brand succeed in
the market.

ITC marketing strategy helps the brand/company to position itself competitively in the
market and achieve its business goals & objectives.

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Let us start the ITC marketing strategy & mix to understand its product, pricing,
advertising & distribution strategies:

▪ Product strategy: - ITC is a leading FMCG company in India. ITC has a dynamic
portfolio in its marketing mix with businesses spanning FMCG, agri-business, hotels,
information technology, paperboards and packaging. The product lines have great
product length and depth. ITC products are exported to over 90 countries worldwide.
The core products are: FMCG, personal caring, clothing, hotels

▪ Pricing strategy: - ITC have products in all price brackets but more and more new
products are on the premium side as they provide higher margins. Pricing of the
product depends on several things like pricing objective, the market one is operating
in, the purchasing power of the consumers, the market condition, product’s market
position etc. For instance, as bingo was entering the market, it adopted a very clever
aggressive pricing strategy to capture the market share. They maintained their prices
as per the market leader but offered more quantity and more margins to the retailers
which gave them a competitive edge. ITC follows different marketing mix pricing
strategy for different products. Their economy brands follow economy pricing.
Marketing and manufacturing cost is kept at a minimum. ITC had to hike the price its
premium products in the industry due to hike in excise duty. Classmate is priced over
5% over its competitors. The annual revenue of the company is around $10 billion.

▪ Place & distribution strategy: - ITC has an unmatched distribution network. Its
products are available in more than 4 million retail stores in India. A strong
distribution shows its marketing mix place strategy. ITC is constantly trying to reduce
the lead time and to make the products reach to the retailers as quickly as possible.
Being an environment friendly organization, ITC is carbon positive, solid waste
positive and water positive. Out of the total energy it consumes over 47% comes from
renewable sources. E-choupals ensure timely supply of high quality raw materials.
ITC has well integrated manufacturing and logistics facilities with a wide and deep
distribution network. All manufacturing units owned by ITC are hazard analysis and
critical control point certified. ITC has distinctive agri-sourcing capabilities with farm

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linkages in over 17 states which provide it with high quality wheat, soya, potato,
coffee etc. It has an efficient crm program for commodity customers. ITC's
paperboards and specialty papers division has four manufacturing units, eight regional
sales offices and over 60 dealers in India. ITC has over 100 hotels are present in 70
destinations. ITC’s food products are exported to north america, middle east, africa
and australia.

▪ Promotion & advertising strategy: - ITC designs its promotion strategy keeping in
mind its brand proposition and its target audience. It promotes its product through
print, television and radio as a part of its marketing mix. ITC’s different brands have
different brand ambassadors. For example, classmate has been endorsed by yuvraj
singh and soha ali khan; saina nehwal has endorsed salvon; shahrukh khan has been
endorsing the entire range of snacks under the umbrella brand of sun feast. ITC roped
in ranbir kapoor for john players. As part of ITC’s centenary initiative, classmate
launched the largest student contact program- ideas for India challenge. It provided a
platform for Indian youth to brainstorm and address the issues and challenges which
our nation faces and help in developing the nation. ITC also launches a lot of digital
campaigns to ensure maximum participation.

▪ The fiama de wills men campaign is one such example. Fiama de wills has had an
association with the talented designer, masaba gupta for wills lifestyle fashion week.
ITC also engage in cross marketing promotions. Yippee! Launched a campaign with
paytm offering recharge coupons equivalent to the price of yippee noodles. The
company launched an advertisement to back the campaign. Hence this concludes the
ITC marketing strategy & marketing mix.

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11. Competitors of ITC

▪ Dabur India limited

Dabur India ltd is one of India’s leading FMCG companies with revenues of over rs
7,680 crore & market capitalization of over rs 48,800 crore.
Building on a legacy of quality and experience of over 133 years, Dabur is today
India’s most trusted name and the world’s largest ayurvedic and natural health care
company.

▪ Godrej Consumer Products

Godrej consumer products limited (GCPL) is an Indian consumer goods company


based in Mumbai, India. Gcpl's products include soap, hair colorants, toiletries and
liquid detergents. Its brands include 'Cinthol', 'Godrej fair glow', 'Godrej no.1' and
'Godrej Shikakai' in soaps, 'Godrej powder hair dye', 'renew', 'Coloursoft' in hair
colorants and 'ezee' liquid detergent. Gcpl operates several manufacturing facilities in
India spread over seven locations and grouped into four operating clusters at malanpur
(Madhya Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi-
Katha (Himachal Pradesh), Pondicherry, Chennai and Sikkim.

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▪ Hindustan Unilever Limited

Hindustan unilever limited (HUL) is an Indian consumer

Goods Company headquartered in Mumbai. It is a subsidiary of the British company


Unilever. Its products include foods, beverages, cleaning agents, personal care
products, water purifiers and other fast-moving consumer goods (FMCGs).

▪ Protector & Gamble Hygiene & Health Care ltd.

The Procter & gamble company (P&G) is an American Multinational consumer goods
corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter
and James gamble. It specializes in a wide range of personal health/consumer health,
personal care and hygiene products; these products are organized into several
segments including beauty; grooming; health care; fabric & home care; and baby,
feminine, & family care. Before the sale of Pringles to Kellogg’s, its product portfolio
also included food, snacks, and beverages.

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12. Current status of ITC in India

As of 2021, ITC is one of the largest conglomerates in India, with operations in


several sectors including fast-moving consumer goods (FMCG), hotels, paperboards,
and packaging, agri-business, and information technology. The company is
headquartered in Kolkata and has a pan-India presence.

In the FMCG sector, ITC has a strong presence with brands such as Aashirvaad,
Sunfeast, bingo, yippee! and classmate. The company has also diversified into the
health and hygiene segment with its 'Savlon' brand. ITC is among the top three
players in the packaged foods market in India.

In the hotels segment, ITC has a portfolio of luxury hotels and resorts under the 'ITC
hotels' brand, including iconic properties such as the ITC grand Chola in Chennai and
the ITC Maurya in New Delhi.

In the agri-business segment, ITC is involved in the sourcing, processing, and


exporting of agricultural commodities such as wheat, rice, and tobacco.

ITC is also a significant player in the paperboards and packaging segment, with a
range of products including specialty papers, paperboards, and packaging solutions.

In recent years, ITC has placed a strong emphasis on sustainability and has set
ambitious targets for reducing its carbon footprint, water usage, and waste generation.
The company has also undertaken several initiatives in the areas of renewable energy,
a forestation, and community development.

Overall, ITC continues to be a major player in several sectors in India and is


recognized for its focus on sustainability and social responsibility.

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Chapter II-

Research
Methodology

32
Chapter II

1. Objective of the study

▪ To study the ethics in advertisements.

▪ To analysis the impact of ethical advertisements in respondents.

▪ To ascertain where the advertisements were construct through ethical values.

▪ To compensate the losses arising out of the ban on advertisements of one particular
product.

▪ To study do such advertisements have any impact on consumers’ buying behaviour?

▪ To study about ITC company.

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2. Importance of ethics in advertising

▪ Ethics in Advertising means a set of well-defined principals which governs the way of
communication taking place between the seller and the buyer and it is the most
important feature of the advertising industry.

▪ Customer want to feel confident that they can trust the seller and seller’s company
before any kind of commitment is made. Without ethics, no one would like to buy
products or services from the seller.

▪ In today’s competitive and buyer’s market, advertisements have to be truthful. If an


advertisement is misleading, the credibility of the organization is lost.

▪ Honesty is another crucial part of an advertisement. Any company that makes


exaggerated claims about their products can’t be trusted and therefore should be
avoided.

▪ Hence the ethical aspect is just as important as brand’s image. Therefore ethics and
advertising have a lot to do with each other.

▪ Ethics in advertising is important, because by acting ethically with their advertising, a


company is being responsible towards the needs of the customer.

▪ Ethics is the most important feature of the advertising industry. Though there are
many benefits of advertising, there are also some points which don’t match the ethical
norms of advertising.

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3. Limitation Of The Ethics In Advertising

▪ Telling the truth

Complying with regulations isn’t always enough. For example, customers might feel
mistreated if your advertisements exaggerate your product’s effectiveness, even if
your claims remain within legal boundaries. Consumers will expect you to present
yourself as well as possible without misleading them. Explain the benefits of your
products or services clearly and without fabrications or pertinent omissions.

▪ Ambiguity

In advertisements can border on the unethical. For example, hidden fees and
misleading pricing might be manipulative. Leaving out important details -- such as a
need to purchase separate components to use a product -- leaves customers essentially
misinformed. If they learn about unexpected costs after purchasing a product or
service, you May have breached an ethical limit by effectively cheating them from
their point of view, even if you have not technically broken any law.

▪ Controversy

Some businesses intentionally choose controversial themes to market their products or


services because they want to target a specific clientele. For example, a lingerie shop
might use provocative advertisements to draw customers. But in certain contexts,
these strategies might appear unethical to some. For example, if you post
controversial advertisements on billboards or in public locations, some passer-by
might be offended. While you might not agree with their assessments, you must
recognize that your reputation can suffer if you promote products or services using
controversial themes.

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• Children
The issue of marketing to children is contentious. Children ages 2 to 11 are estimated
to see 25,600 advertisements a year, according to the book “advertising and integrated
brand

Promotion.” Some child psychologists claim the advertising industry advocates


violence, causes childhood obesity, breaks down early learning skills and damages
parental authority, according to research cited by the book. Whether and to what
degree such effects occur might not be settled issues, but businesses should be aware
that the potential for damage exists and ensure their advertisements avoid promoting
unwelcome behaviours in children.

36
Ethical & Unethical Advertising Campaigns Examples:

Company Description Ethical


/Unethical
Dove's "Real Celebrates diverse body types and Ethical
Beauty" promotes self-acceptance, challenging
Campaign unrealistic beauty standards

Volkswagen's Manipulated emissions tests to appear Unethical


Dieselgate environmentally friendly, deceiving
Scandal consumers and regulators

Patagonia's Promotes environmental conservation Ethical


Sustainability and sustainable practices, transparent
Ads about its efforts and challenges
Pepsi's Kendall Portrayed protest movements in a trivial Unethical
Jenner Ad manner, using social issues for
commercial gain without addressing
underlying concerns
Always' "Like a Challenges stereotypes and empowers Ethical
Girl" Campaign young girls, promoting positive social
change
Marlboro's Marketed cigarettes to underage Unethical
Targeting of individuals through appealing imagery
Youth and sponsorships, disregarding health
risks and regulations

These examples showcase a range of ethical and unethical practices in advertising,


providing insights into the impact of advertising strategies on consumers and society.

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5. Research Method Used

For the purpose of present study primary & secondary data is used.

Primary data is collected from survey.

Secondary data is collected from internet, journals, and newspaper.

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Chapter III-

Literature Review

39
Chapter III

Literature Review

1. Features

Advertising is one of those industries that is strongly associated with unethical or


dodgy practices, preying on people’s emotions and insecurities to get them to spend
money on things they don’t need, on things that are irrelevant to genuine happiness.
Researchers from the University of Warwick have also drawn a link between
advertising spending in different countries and the life satisfaction of people, with
higher spending resulting in people being less happy (the researchers tried to show
this was a cause rather than just a correlation in different ways, such as by controlling
for other factors).

We might regard this tendency of ads to make us miserable as blight on the


advertising industry, signalling that it operates in unethical ways. Indeed, advertisers
are guilty of many unethical practices, with the advertising standards authority (asa)
receiving thousands of complaints every year about such practices. Yet to paint
advertising as a wholly dark force in society would be pretty simplistic and cynical.
Advertising no doubt has its ethical players.

There are all kinds of advertising standards codes that companies are meant to abide
by, but what exactly sets apart unethical advertising from ethical advertising? This is a
complex question that could elicit a range of answers, but there are some very basic
features of ethical advertising that can help the average person to tease apart
manipulative and harmful methods of advertising from its positive counterpart, or at
the very least, its morally unproblematic counterpart.

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Honesty

The asa has previously highlighted that misleading ads result in the most complaints
(62%) and account for most of the watchdog’s workload (76% of cases). Stuart
Mitchell, the founder of ethical marketing news, believes:

Honesty in advertising will become more and more important and I feel that Maybe
it’s time marketers and advertisers came under more scrutiny.

Honest advertising should take into account the impression it will have on consumers,
the information that is included, the use of evidence to back up claims (including
about competitors), and differences between objective and subjective claims.
Exaggeration is also anathema to honest advertising.

Avoiding Exploitation

Payday lenders May not be breaking any laws with their ads, but they do arguably
exploit customers in many instances. With some online payday loan firms charging an
interest of 3,000%, this has been called ‘legalized loan sharking’. In light of the issue,
google banned search ads from payday lenders, putting them in the same ‘dangerous
products’ category as guns, tobacco, and explosives. These ads prey on customers and
can cause their debts to spiral out of control. Ads should never serve to diminish – let
alone ruin – a customer’s quality of life.

Avoiding Stereotypes

Ethical ads should avoid promoting harmful stereotypes about people. For example,
ads that objectify or inappropriately sexualize women have wider societal
implications. These kinds of ads can affect how we view each other and, ultimately,
how we treat each other. Advertising can also impact how people think about
themselves, damaging their well-being as a result. For example, ads that promote
unrealistic ideals of thinness for women can be contributing factors in low self-
esteem, negative body image, and eating disorders.

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Social Responsibility

Customers increasingly want adverts to reflect a business’s social awareness.


Advertising can be ethical, then, if it draws attention to a big issue that the business in
question is prioritizing, such as climate change, poverty, mental illness, or animal
rights. Amy Fenton, global leader of public development and sustainability at Nielsen,
points out:

It’s no longer a question of whether consumers care about social impact. Consumers
do care and show they do through their actions. Now the focus is on determining how
your brand can effectively create shared value by marrying the appropriate social
cause and consumer segments.

Ads will always push a product. This brings into focus the question of whether ethical
advertising should simply be about avoiding unethical practices. This might imply
that advertising can be ethically neutral. But is such a thing possible? The truth is that
advertising will always impact how large numbers of people think, feel, and behave,
and it’s inevitable that a mixture of negative and positive effects will occur,
sometimes the negative outweighing the positive, and vice versa, which can include
effects on people’s well-being, as well as the propping up of companies and industries
that May be deemed unethical in some respect.

What defines ethical advertising, then, May not just be about avoiding harm but about
promoting various goods in the world (which would make advertising more of a
positive force in society). Some advertisers May feel having a positive moral message
in their ads May come across as virtue signalling and do-goody; however, this is more
of a practical issue. Many advertisers are successful at promoting social and moral
values, and if more priority were placed on aligning advertising with consumers’
increasing consideration of social causes, then both businesses and consumers would
benefit. Moreover, if society at large could realistically benefit from advertising, then
this might help to improve the reputation of the advertising industry, with people
viewing it less as an evil presence in society, and instead see it as something a bit
more wholesome and useful.

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2. Principals

• Advertising and similar forms of communication should have a common purpose of


truth and high moral standards in serving the public at large.

• Advertisers should distinguish between advertising, corporate communication, and


public relations from editorial pieces, news, and entertainment, both offline and
online.

• In the interest of complete disclosure and transparency, advertisers should explicitly


disclose all material factors, such as payment or receipt of a free product, as well as
the identities of endorsers.

• According to the nature of the target audiences to which the commercials are
intended, promotional techniques based on advertising ethics should treat purchasers
equitably. Treatment should also be determined by the nature of the advertised item or
service.

• While making various marketing communications, advertising ethics should never


compromise the protection and personal privacy of its customers. The decisions made
by ethical advertisers on how people's data can be used should be transparent.

• Advertisers should observe government and local rules surrounding marketing and
advertising campaigns while strategizing promotional efforts with advertising ethics.
They should also follow the industry's self-regulatory protocols for the purpose of
advertising rehearsals.

Ethical advertising and ad agencies in both the internet and offline worlds should
conduct confidential investigations into the various moral and ethical issues that May
rise. Additionally, diverse members of the ad design team should be permitted to
express their ethical or moral reservations about a specific sort of ad campaign. There
should be trust among advertising agencies, PR agencies, media suppliers, clients, and
third-party service providers in advertising ethics procedures. The entire process

43
should be founded on complete transparency and honesty in terms of business
ownership, plans, and compensations, discounts, and media incentives.

3. Theories

Three ethical theories are commonly used in the consideration of advertising ethics-
utilitarianism, deontology and virtue ethics. Each May lead to a different conclusion
when applied to the same ethical dilemma.

Utilitarianism

Utilitarianism is concerned with the consequences of the decision. The quality of a


marketing decision or action is assessed by looking at the consequences of
implementing that decision. In deciding whether it is unethical the decision-maker
will need to:

• Assess the likely costs and benefits for each stakeholder

• Make a decision based on what action produces the greatest benefit for all concerned.

This approach to ethical decision making is often used in public policy decisions
where policy makers have to take the course of action that is likely to produce the

44
greatest overall benefit for the greatest number of stakeholders (for example, all
inhabitants of a region).

In our example, bae systems is faced with a dilemma. If it pays the bribe it wins the
contract, ensuring the growth and survival of the organisation. However, paying it
May be illegal and by doing so, bae systems perpetuates corruption in an African state
that ultimately ensures its citizens suffer from misappropriation of their money. Yet
not paying the bribe May result in redundancies and how would these affect
employees’ families?

Deontology

Deontology is concerned not so much with the consequences of action but whether the
underlying principles of a decision are right. According to this view ethically good
decisions are made by adhering to key ethical principles such as honesty, truthfulness,
respecting the rights of others, justice and so on.

Applying this theory to bae systems raises a number of issues. Bribery tends to be
illegal so by paying a bribe bae systems makes everyone in the organisation indirectly
implicit in an illegal act. Also if a bribe is paid, where does the money go? Does it
reinforce the status of a corrupt section of the wealthy and avoid payment of taxes? In
this example, a few people would benefit from the bribe to the detriment of the wider
majority of Tanzanian citizens.

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Virtue Ethics

Virtue ethics views marketing ethics from the perspective of the moral integrity of the
individual(s) involved in making the decision. A morally good decision is one that is
based on the virtuous character of whoever is making the decision. Moral virtues
include honesty, courage, friendship, mercy, loyalty and patience.

In our example, bae systems’ payment of the bribe lacks any virtue (effectively
reinforcing corruption in Tanzania) and little courage (paying bribes May appear to be
unofficial organization policy).

It should be clear that making ethical judgments rarely involves clear decisions.
Depending on the viewpoint, different ethical principles May well lead to different
decisions. Often it is appropriate to look at an ethical question using different theories
before making a decision.

Managers in public sector organizations will often have to make difficult decisions
about which stakeholder needs to satisfy when limited budgets mean not all needs and
expectations can be met fully. In many public sector and internal marketing contexts
the customer or stakeholder has relatively little say over the kind of service they
receive. Thus, questions of an unequal distribution of power are more acute in not-for-
profit and internal marketing where one or both parties to an exchange are often
locked into existing arrangements and cannot walk away if they are dissatisfied with
what they are receiving.

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4. Advantages & Disadvantages

There are numerous benefits to both company and society from ethical marketing
practices. Some of the primary benefits include:

Advantages

• Reputation - companies that market consistent with ethical norms or expectations


build a positive reputation with the public.

• Customer Satisfaction/Loyalty - delivering a product that is consistent with


advertising establishes trust or confidence with customers. This results in customer
happiness and generates return customers based upon loyalty to the product,
company, or brand.

• Increased Sales - ethical marketing campaigns generally have a better long-term


effect on sales. Unethical practices tend to be discovered and have a short-term effect
at best.

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• Improved Standard of Living/Health - the overall sense of fairness and equity that
results from ethical business practices (particularly marketing), results in an overall
improved standard of living for customers.

Disadvantages

• Management Support

Market ethics are essential to protect your brand reputation and improve your
workplace culture but business ethics do come with a few drawbacks. One drawback
of practicing ethical marketing is that many compliance programs require
management to be effective. This can become a major issue if members of the
management team decide to apply their own version of corporate ethics to the way
they manage their employees. This clash of principles can cause confusion among
employees which makes people angry and upset.

• Company Costs

It can be an expensive and time-consuming task to develop, implement, and maintain


an ethical marketing compliance program within your business. Business ethics
programs need to be constantly updated to reflect any workplace laws or changes in
company culture. If your company is looking to create a business ethics program, it’s
essential that you hire an ethics officer and make room in the budget for financial and
personnel resources they might need.

There are many advantages and a few disadvantages to ethical advertising. While
there May be a few disadvantages, ethical advertising is worth the practice and will be
much more beneficial for company in the long run. If you’re having trouble deciding
if company should practice business ethics or not, just remember that employees,
customers, and the community surrounding your organization would much rather do
business with an ethical company than a non-ethical one.

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5. Approaches

Advertising ethics, just saying the phrase evokes many different responses. Some
smirk and ask if it isn’t an oxymoron—even “the ultimate oxymoron?” (Beltrami,
2003) others insist that advertising is among the most ethical of professions because
of close regulation. A common reaction is a desire simply to avoid the topic. Delving
into ethical questions is hard for any profession. It raises complex and perplexing
issues, and many prefer to let sleeping dogs lie. Avoidance, however, is probably
never a good strategy; in a post-enron, post-worldcom world, it surely is not.
Advertising pushes the boundaries of what is familiar and acceptable. In such an
environment, making ethical judgments can be particularly difficult. Concomitantly,
scholarship about ethics in advertising faces difficulties ranging from making
normative judgments to defining the object and scope of an investigation. Ethics is
now considered a mainstream topic in the advertising literature (Hyman et al., 1994),
but the amount of academic research on it has not been commensurate with its
importance (Drumright and murphy, 2004). The scope of advertising ethics is so
broad and encompassing that research is thin and inconclusive in important areas, and
some issues have received far greater treatment than others. Historically, the topic of
ethics in advertising has been examined largely through a bipolar approach—a micro-
macro divide.

The “macro” perspective focuses on advertising’s effects on society; the “micro”


perspective focuses at a more individual level–individual consumers, individual
advertising practitioners, individual ads or campaigns, and specific advertising
practices. I propose a third level: the “meso.” The term is borrowed from
organizational science (house et al., 1995). The meso level, between the micro and
macro levels, is the level of the organization or groups of organizations—whether
agencies, clients, or media. It has largely been ignored. Neglect of the meso level is
particularly problematic because the organizational culture of advertising agencies has

49
a strong influence on the moral sensitivity of individual advertising practitioners
(Drumright and murphy, 2004; Keith et al., 2003). Moreover, solutions to some macro
level ethical problems to which advertising contributes require the collaborative
efforts of organizations or groups of organizations. There are different approaches to
ethics in advertising that advertisers can adopt. Some of these approaches include:

Deontological Approach: this approach focuses on following moral rules and


principles, regardless of the consequences. In advertising, this approach May involve
adhering to specific ethical guidelines or standards, even if it May result in lower
sales or profits.

Consequentiality Approach: this approach focuses on the consequences of actions.


In advertising, this approach May involve prioritizing the ethical impact of advertising
practices on consumers and society, even if it May result in lower sales or profits.

Virtue Ethics Approach: this approach focuses on developing ethical character


traits, such as honesty and integrity, and applying them to decision-making in
advertising. This approach May involve prioritizing long-term relationships with
customers and stakeholders over short-term gains.

Social Responsibility Approach: this approach focuses on the responsibility of


businesses to act in the best interests of society. In advertising, this approach May
involve prioritizing ethical considerations, such as honesty and transparency, in
advertising practices, in order to contribute to the greater good of society.

Stakeholder Approach: this approach focuses on considering the interests of all


stakeholders in decision-making. In advertising, this approach May involve
prioritizing the interests of consumers, clients, and society, as well as the interests of
the business, in order to achieve a balance of ethical considerations.

Overall, there are different approaches to ethics in advertising that advertisers can
adopt, depending on their values and priorities. Advertisers should carefully consider

50
these approaches and adopt the one that aligns with their ethical principles and
contributes to the greater good of society

6. Consumer Behaviour

Consumer Behaviour is influenced by a variety of factors, including ethical


considerations in advertising. When consumers perceive that an advertiser is acting in
an ethical manner, it can positively impact their behaviour towards the product or
service being advertised.

Consumers are more likely to purchase products or services that are advertised in an
ethical manner. This is because ethical advertising creates trust and credibility with
consumers. When consumers trust an advertiser, they are more likely to believe the
claims being made about a product or service, and therefore more likely to make a
purchase.

On the other hand, unethical advertising can have a negative impact on consumer
behaviour. If consumers perceive that an advertiser is being deceptive or misleading
in their advertising, they are less likely to trust the advertiser and May avoid
purchasing the product or service being advertised.

Additionally, consumers May become more aware of ethical considerations in


advertising over time. This can lead to a preference for companies that have a strong
ethical reputation and a willingness to pay a premium for products or services that are
marketed in an ethical manner.

51
7. Limitations

Some potential limitations of a project report on ethics in advertising could include:

Limited Dcope: The report May focus on a specific aspect, such as content creation
or targeting strategies, potentially neglecting interconnected issues like data privacy,
diversity and representation, or the impact of emerging technologies on advertising
ethics.

Limited Data Availability: Data collection challenges May arise due to the
confidential nature of industry practices or the reluctance of companies to disclose
information. This limitation May be particularly pronounced in emerging markets
where regulatory frameworks are less established.

Subjectivity: Cultural nuances and individual perspectives can introduce subjectivity


in evaluating what is considered ethical. It's essential to recognize that ethical
standards can be fluid and influenced by societal norms, requiring a nuanced
understanding of various cultural contexts.

Lack of Generalization: Cultural nuances and individual perspectives can introduce


subjectivity in evaluating what is considered ethical. It's essential to recognize that
ethical standards can be fluid and influenced by societal norms, requiring a nuanced
understanding of various cultural contexts.

Bias: Personal biases May inadvertently shape the report's tone or emphasis.
Awareness of potential biases is critical, and efforts should be made to incorporate
diverse perspectives to mitigate any unintentional skewing of the analysis.

Lack of Implementation: Identifying ethical issues in advertising doesn't guarantee


industry-wide changes. Even with well-documented concerns, the implementation of
corrective actions May be hindered by factors like economic interests, resistance to
change, or the absence of effective regulatory enforcement.

52
Rapidly Changing Landscape: The pace of technological advancements and shifts
in consumer behavior can render the report outdated quickly. Ethical considerations in
advertising are dynamic, and staying abreast of ongoing developments is crucial for
maintaining the relevance and applicability of the report's recommendations.

Regulatory Variability: Different regions May have varying levels of regulatory


oversight and enforcement. The report might not adequately capture these regional
nuances, potentially leading to an incomplete understanding of the ethical landscape
on a global scale.

Emerging Ethical Dilemmas: The report May not anticipate or fully explore novel
ethical challenges brought about by emerging technologies, such as artificial
intelligence, virtual reality, or influencer marketing. Future considerations should be
acknowledged to address the evolving nature of ethical concerns in advertising.

Stakeholder Dynamics: The report might not thoroughly examine power dynamics
among stakeholders, such as advertisers, media platforms, and consumers.
Understanding how these dynamics influence ethical decision-making can provide
deeper insights into the complexities of the advertising industry.

It is essential to acknowledge these limitations when conducting research on ethics in


advertising and interpreting the findings of the project report to ensure a balanced and
objective perspective

53
8. Factors affecting ethics in advertising

There are several factors that can affect ethics in advertising, including:

Industry Regulations: advertising is subject to regulations from government


agencies, such as the federal trade commission (FTC) in the United States, which sets
guidelines for truthful and non-deceptive advertising. Industry regulations can impact
ethical considerations in advertising, as advertisers May need to ensure that their
advertising practices comply with these guidelines.

Consumer Perception: consumer perception can also affect ethics in advertising. If


consumers perceive that an advertiser is acting in an unethical manner, it can
negatively impact their trust and behaviour towards the product or service being
advertised.

Corporate Culture: the culture within a company can impact ethics in advertising. If
a company places a high value on ethical practices, it is more likely that their
advertising practices will reflect this value. On the other hand, if a company
prioritizes profits over ethics, their advertising practices May be more likely to
prioritize sales over ethical considerations.

Advertising Agencies: advertising agencies can also play a role in ethics in


advertising. Agencies May have their own ethical guidelines that they follow, and
they May also be responsible for ensuring that the advertising they produce for clients
complies with ethical standards.

Media Environment: the media environment in which advertising is delivered can


also impact ethics in advertising. For example, advertising on social media platforms
May have different ethical considerations than advertising in traditional media, such
as television or print.

54
Overall, there are a variety of factors that can impact ethics in advertising. Advertisers
should be aware of these factors and work to ensure that their advertising practices are
ethical and socially responsible.

9. Process of ethics in advertising

Identifying The Target Audience: advertisers must determine who the intended
audience is for their advertisements. This helps to ensure that the advertisements are
appropriate for the target audience and that they do not mislead or deceive them.

Defining The Message: advertisers must clearly define the message they want to
convey in their advertisements. The message should be truthful, accurate, and not
misleading.

Creating The Advertisement: advertisers must create advertisements that are in line
with ethical standards. This means avoiding false claims, exaggerations, and any other
forms of deceptive advertising. Advertisements must also respect cultural sensitivities
and social norms.

Reviewing The Advertisement: before launching an advertisement, advertisers


should review it to ensure that it meets ethical standards. They can use internal or
external review processes to evaluate the advertisement's content, message, and
potential impact on consumers.

Launching The Advertisement: once an advertisement has been reviewed and


approved, it can be launched. Advertisers must monitor the advertisement's impact on
consumers and be prepared to address any concerns or complaints that arise.

Measuring The Effectiveness: advertisers must measure the effectiveness of their


advertisements to determine if they have met their objectives. They can use a variety
of metrics, such as sales, brand awareness, and consumer engagement, to evaluate the
advertisement's success.

55
Throughout the process, advertisers must be committed to ethical principles and
follow industry standards and regulations. This includes being truthful, transparent,
and respectful of consumers' rights and privacy.

For Eg: Case Study of Ethics in Advertising

One potential case study of ethics in advertising could focus on the advertising
practices of a company that has faced criticism for ethical violations in its marketing
campaigns, such as the fashion retailer H&M. In 2018, H&M faced backlash over an
advertisement that showed a black child wearing a sweatshirt with the slogan "coolest
monkey in the jungle". The advertisement was widely criticized as racially insensitive
and led to protests and calls for a boycott of the company. H&M quickly issued an
apology and removed the advertisement, but the incident raised questions about the
company's ethical practices in advertising.

Subsequently, H&M announced a number of initiatives to improve its advertising


practices and promote diversity and inclusion in its marketing campaigns. These
initiatives included hiring a global head of diversity and inclusivity, increasing
representation of diverse models in its advertising, and launching a program to
support startups focused on social impact.

This case study of H&M could provide insights into the importance of ethical
considerations in advertising and the potential consequences of failing to take these
considerations seriously. It could also demonstrate how companies can respond to

56
criticism and take action to improve their ethical practices in advertising.
Additionally, it could highlight the role of consumers and stakeholders in holding
companies accountable for their advertising practices and promoting ethical standards
in the industry.

Chapter IV-

Data analysis

& Interpretation

57
Chapter IV

Questionnaire

1. Do you know about ITC limited?

Sr No. Options Percentage (%)

1 Yes 75

2 No 25

25

Yes
No

75

Fig no. 4.1

In this pie diagram, 75% people know about ITC limited. And 25% people does not
know about ITC limited.

58
2. What is the full form of ITC limited?

Sr No. Options Percentage (%)

1 Indian Tobacco 89.5


Company

2 Indian Television 5.3


Company
3 Indian Tobacco 5.3
Control

5.3
5.3

Indian Tobacco
Company
Indian Television
Company
Indian Tobacco
Control

89.5

Fig no. 4.2

59
From the above pie diagram, 89.5 % people say that the full form of ITC is Indian
Tobacco Company. And combining 5.3% people says its Indian television company
and Indian tobacco control. This basically shows that people are more aware about the
proper full form.

3. What is the former name of ITC?

Sr No. Options Percentage (%)

1 Indian Tobacco 57.9


Company

2 Imperial 36.4
Tobacco
Company
3 Indian Tobacco 5.3
Control
\

60
5.3

Indian Tobacco
Company
36.8 Imperial Tobacco
Company
57.9
Indian Tobacco
Control

Fig no. 4.3

In the above pie chart, it is clear that 57.9% people say that the former name of ITC is
Indian Tobacco Company. It is also noted that close to 37% of the respondents agree
that it is imperial tobacco company.

4. Do you prefer to use products of ITC limited?

Sr No. Options Percentage (%)

1 Yes 31.6

2 No 42.1

3 Sometimes 26.3

61
26.3
31.6
Yes
No
Sometimes

42.1

Fig no. 4.4

In the above figure, 42.1% respondents strongly disagree to the use of products of ITC
limited and 31.6% respondents agree to its use.

5. Which product of ITC limited do you use often?

Sr No. Options Percentage (%)

1 YiPPee 26.3

2 Sunfeast 10.5

3 Britannia 47.4

4 Aashirwad 15.8

62
15.8
26.3
YiPPee
SunFeast
Britannia
10.5 Aashirwad

47.4

Fig no. 4.5

According to above diagram, 47.4% people use ITC limited product of Britannia and
the least 10.5% people use sun feas

63
6. Which tobacco product of ITC limited do you know?

Sr No. Options Percentage (%)

1 Gold Flake 68.4

2 Lucky Strike 0

3 Duke & Royal 0

4 Indian Kings 26.36

5 None 7.1

26.36 Gold Flakes


Lucky Strike
Duke & Royal
7.1 Indian Kings
68.4 None

Fig no. 4.6

According to above diagram, 68.4% respondents say that they use none of the ITC’s
tobacco product and 26.36% people use gold flakes product.

64
7. Do you think prices are reasonable of the product of ITC?

Sr No. Options Percentage (%)

1 Yes 42.1

2 No 15.8

3 Maybe 42.1

42.1 42.1 Yes


No
Maybe

15.8

Fig no. 4.7

In this diagram we can see that combining of 42.1% respondents are not sure about if
the prices are reasonable.

65
8. Do you know about ITC’s ad campaign?

Sr No. Options Percentage (%)

1 Yes 26.3

2 No 36.8

3 Maybe 36.8

26.3
36.8
Yes
No
Maybe

36.8

Fig no. 4.8

From the above diagram, 26.3% people know about ITC’s ad campaign.

66
9. Which ad campaign of ITC limited do you know?

Sr No. Options Percentage (%)

1 Har Ghar Tiranga 36.8

2 ProudlyIndian 15.8

3 Sab Saath Badhein 10.5

4 None of the above 36.8

Har Ghar Tiranga


36.8 36.8
ProudlyIndian
Sab Saath Badhein
None of the above

10.5 15.8

Fig no. 4.9

67
In the above diagram, 36.8% people know about famous ITC campaign namely har
ghar tiranga and the least known campaign is sab saath badhein.

10.Where did you see the advertisement of ITC limited?

Sr No. Options Percentage (%)

1 Television 68.4

2 Social Media 21.1

3 Newspaper 7.1

4 Youtube 5.3

5.3
7.1

Television
21.1 Social Media
Newspaper
YouTube
68.4

68
Fig no. 4.10

In the above figure, we can see that the 68.4% people see the advertisement of ITC
limited on Television and the least known media for the advertisement is YouTube.

ITC is a diversified Indian conglomerate with interests in various industries,


including cigarettes and tobacco, fast-moving consumer goods (FMCG), hotels,
paperboards, specialty papers, and packaging. As such, a data analysis of ITC May
involve analysing data from various sources, such as:

Financial data: financial data May include revenue, profit margins, earnings per
share, return on investment, and other financial metrics that provide insights into the
financial performance of ITC Company over time.

Market data: market data May include data on market size, market share, sales
volume, and sales growth for ITC company's products and services in various
industries and markets.

Consumer data: consumer data May include data on consumer demographics,


preferences, buying behaviours, and brand loyalty for ITC company's products and
services.

Advertising and promotional data: advertising and promotional data May include
data on advertising spend, media channels used, and the effectiveness of advertising
and promotional campaigns in driving consumer awareness and purchase intent.

Supply chain data: supply chain data May include data on inventory levels, supply
chain efficiency, and distribution channels for ITC company's products and services.

By analysing these different types of data, it May be possible to identify patterns and
trends that can help ITC company make data-driven decisions related to business
operations, product development, marketing and advertising, supply chain

69
management, and financial management. Additionally, data analysis can help identify
areas for improvement and opportunities for growth and expansion in different
industries and markets.

70
Case study of ITC Company

One potential case study of ITC could focus on the company's efforts to diversify its
business operations beyond its traditional tobacco products into other industries, such
as FMCG, hospitality, and agri-business.

In the early 2000s, ITC faced challenges related to the declining demand for tobacco
products and increasing government regulation of the tobacco industry in India. To
counter these challenges, the company pursued a diversification strategy, expanding
into other industries and focusing on sustainability and social responsibility.

One key aspect of ITC's diversification strategy was its focus on FMCG products,
such as packaged foods, personal care products, and home care products. The
company's FMCG business grew rapidly in the following years, helped by its strong
distribution network and marketing campaigns.

Another important aspect of ITC's diversification strategy was its focus on


sustainability and social responsibility. The company has implemented a number of
initiatives to reduce its environmental footprint, such as reducing water usage and
greenhouse gas emissions, and to improve the livelihoods of farmers in its supply
chain through its agri-business division.

Overall, ITC's diversification strategy has been successful, with the company's non-
tobacco businesses now accounting for a significant portion of its revenue and profit.
However, the company still faces challenges related to regulatory uncertainty and
changing consumer preferences, particularly in the tobacco industry.

This case study of ITC could provide insights into the challenges and opportunities of
diversification strategies in a rapidly changing business environment, as well as the
importance of sustainability and social responsibility in business operations

71
Chapter V-
Conclusion &
Suggestions

72
Chapter V

Conclusion

In conclusion, advertising is an essential aspect of modern marketing and commerce.


However, advertising must be carried out ethically to avoid misleading or deceiving
consumers. Ethical advertising means being truthful, transparent, and respectful of
cultural and social norms. It also means avoiding false claims, exaggerations, and any
other forms of deceptive advertising. Ethical advertising not only protects consumers
but also promotes brand credibility and reputation.

To achieve ethical advertising, advertisers must follow a process that involves


identifying the target audience, defining the message, creating the advertisement,
reviewing the advertisement, launching the advertisement, and measuring the
effectiveness. Throughout this process, advertisers must be committed to ethical
principles and follow industry standards and regulations.

Ultimately, ethical advertising is not only a legal requirement but also a moral
obligation. It ensures that consumers are treated with respect and that they can make
informed decisions based on accurate and truthful information. It also helps to
promote a level playing field for businesses and creates a more sustainable and ethical
marketplace.

73
Suggestions

Understanding the importance of ethics in advertising: a project report on ethics in


advertising can help readers understand the significance of ethical considerations in
advertising practices and the impact they can have on consumers, society, and
businesses.

Identifying ethical issues in advertising: the project report can help readers identify
common ethical issues in advertising, such as deceptive or misleading advertising,
false claims, and manipulation of emotions, and the consequences of such practices.

Evaluating the effectiveness of current regulations and guidelines: the project


report can help readers evaluate the effectiveness of current regulations and guidelines
related to advertising ethics, such as those set by government agencies or industry
bodies.

Analyzing case studies and examples: the project report can provide readers with
case studies and examples of ethical and unethical advertising practices, allowing
them to analyze the impact of such practices on consumers, businesses, and society.

Developing recommendations for ethical advertising practices: based on the


findings of the report, readers can develop recommendations for ethical advertising
practices that businesses can adopt to ensure that their advertising practices are
socially responsible and contribute to the greater good of society.

Overall, a project report on ethics in advertising can help readers gain a better
understanding of the importance of ethical considerations in advertising and develop a
framework for evaluating and improving advertising practices.

74
Chapter VI-
Biblography

75
Chapter VI
Bibliography appendix/annexure
Advertising Myths - Ifs and Buts of the Advertising Industry
https://www.managementstudyguide.com/advertising-ethics.htm

Beard, Fred K. "Advertising ethics." Routledge, 2020.

Powell, Michael, and Laurie Young. "Advertising and consumer culture: A special
issue on ethics." Journal of Business Ethics 64, no. 3 (2006): 197-199.

Beltramini, Richard F., George A. Peterson, and James M. Kozup. "Reliability and
validity of a proposed ethics orientation scale: A measure of marketing professionals'
ethical orientations." Journal of Business Research 40, no. 3 (1997): 283-299.

Murphy, Patrick E., and Gene R. Laczniak. "Marketing ethics: Cases and readings."
Routledge, 2013.

Carrigan, Marylyn, and Ian H. Harris. "Ethics and international marketing: Research
background and challenges." Journal of Business Ethics 16, no. 11 (1997): 1113-
1118.

John, Deborah Roedder. "Consumer socialization of children: A retrospective look at


twenty-five years of research." Journal of Consumer Research 26, no. 3 (1999): 183-
213.

Harker, Michael, and Paul Morgan. "Toward a new conception of advertising ethics."
Journal of Advertising Research 35, no. 4 (1995): 11-21.

Kalliny, Morris, and Michael J. Leiblein. "Ethical standards for advertising


practitioners: A cross-national study." Journal of Advertising 34, no. 2 (2005): 7-20.

Author Name: Mohammad Noorizzuddin Nooh


Title of Paper: Advertising Ethics: A Review
Name of Journal: The Journal of Commerce, Vol. 4, No. 3
ISSN: 2218-8118, 2220-6043
Pages: 33-36
https://www.researchgate.net/publication/359788144_advertising_ethics_a_review

Features of ITC
https://www.itcportal.com/about-itc/profile/index.aspx

https://en.wikipedia.org/wiki/ITC_limited

76
77
Chapter VII-
Annexure

78
Chapter VII

1. Do you know about ITC limited?


o Yes
o No

2. What is the full form of ITC limited?

3. What is the former name of ITC?


o Indian Tobacco Company
o Imperial Tobacco Company
o Other…

4. Do you use products of ITC limited?


o Yes
o No
o Sometimes

5. Which product of ITC limited do you use often?


o Sunfeast
o Britannia
o Aashirvaad

6. Which tobacco product of ITC limited do you know?


o Lucky Strike
o Gold Flake
o Duke & Royal
o Indian Kings
o None

7. Do you think prices of ITC products are reasonable?


o Yes
o No
o Maybe

79
8. Do you know about ITC’s ad campaign?
o Yes
o No

9. If yes, which ad campaign of ITC limited do you know?


o Har Ghar Tiranga
o Proudly Indian
o Sab Saath Badhein
o None of the above

10. Where did you see the advertisement of ITC limited?


o Television
o Social Media
o Newspaper
o YouTube

80

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