DIGITAL MARKETING FOR FMCG INDUSTRY by mudit chopra A1802010351

Table Of Contents

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Contents Objective Of the Study Introduction Digital Marketing In India Growth Of Digital Marketing in India Status Of Digital Marketing in India Indian Portals/Websites dealings in Specialized field Top Digital Marketing Companies of India Benefits Of Digital Marketing to Business Future Of Digital Marketing in India Review Of Literature Research Methodology a)Research Design b)Data Collection c)Sample Universe d)Sampling Techniques Questionnaire Data Analysis References

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OBJECTIVES OF THE STUDY  To study scope of Digital Marketing in Indian Market.  Current STATUS of Digital Marketing in India  Digital Marketing vs. Traditional Marketing(print, TV, radio etc)

INTRODUCTION

DIGITAL MARKETING IN INDIA
For developing countries like India, DIGITAL MARKETING offers considerable opportunity. DIGITAL MARKETING in India is still in nascent stage, but even the most-pessimistic projections indicate a boom. It is believed that low cost of personal computers, a growing installed base for Internet use, and an increasingly competitive Internet Service Provider (ISP) market will help fuel DIGITAL MARKETING growth in Asia’s second most populous nation. Indian middle class of 288 million people is equal to the entire U.S. consumer base. This makes India a real attractive market for DIGITAL MARKETING. To make a successful DIGITAL MARKETING transaction both the payment and delivery services must be made efficient. There has been a rise in the number of companies' taking up DIGITAL MARKETING in the recent past. Major Indian portal sites have also shifted towards DIGITAL MARKETING instead of depending on advertising revenue. Many sites are now selling a diverse range of products and services from flowers, greeting cards, and movie tickets to groceries, electronic gadgets, and computers. With stock exchanges coming Digital Marketing the time for true DIGITAL MARKETING in India has finally arrived. On the negative side there are many challenges faced by DIGITAL MARKETING sites in India. The relatively small credit card population and lack of uniform credit agencies create a variety of payment challenges unknown in India. Delivery of goods to consumer by couriers and postal services is not very reliable in smaller cities, towns and rural areas. However, many Indian Banks have put the Internet banking facilities. The speed post and courier system has also improved tremendously in recent years. Modern computer technology like secured socket layer (SSL) helps to protect against payment fraud, and to share

information with suppliers and business partners. With further improvement in payment and delivery system it is expected that India will soon become a major player in the DIGITAL MARKETING market. While many companies, organizations, and communities in India are beginning to take advantage of the potential of DIGITAL MARKETING, critical challenges remain to be overcome before DIGITAL MARKETING would become an asset for common people. India’s DIGITAL MARKETING industry is on the growth curve and experiencing a spurt in growth. The Digital Marketing Travel Industry is the biggest segment in DIGITAL MARKETING and is booming due largely to the Internet-savvy urban population. The other segments, categorized under Digital Marketing non-travel industry, include e-Tailing (Digital Marketing retail), Digital Marketing classifieds and Digital Downloads (still in a nascent stage). The Digital Marketing travel industry has some private players such as Makemytrip, Cleartrip and Yatra as well as a strong government presence in terms of IRCTC, which is a successful Indian Railways initiative. The Digital Marketing classifieds segment is broadly divided into three sectors; Jobs, Matrimonial and Real Estate. Mobile Commerce is also growing rapidly and proving to be a stable and secure supplement to DIGITAL MARKETING due to the record growth in mobile user base in India, in recent years. Growth drivers and barriers are present in equal measures for new DIGITAL MARKETING ventures. A report by the Internet and Mobile Association of India has revealed that India’s DIGITAL MARKETING market is growing at an average rate of 70 percent annually and has grown over 500 percent since 2007. The current estimate of US$ 6.79 billion for year 2010 is way ahead of the market size in the year 2007 at $1.75 billion. The following chart depicts the growth of DIGITAL MARKETING in India in the last couple of years: 33. A report by the Internet and Mobile Association of India. Apparently, more Digital Marketing users in India are willing to make purchases through the Internet. Overall DIGITAL MARKETING industry is poised to experience a high growth in the next couple of years. The 70 percent year on year growth is expected to continue and India’s DIGITAL MARKETING market is forecast to reach a whopping $US 10 billion by the end of 2011.The DIGITAL MARKETING market in India was largely dominated by the Digital Marketing travel industry with 80% market share while electronic retail (E-Tailing) held second spot with 6.48% market share. E-Tailing and digital downloads are expected to grow at a faster rate, while Digital Marketing travel will continue to rule the major proportion of market share. Due to increased DIGITAL MARKETING initiatives and awareness by brands, eTailing has experienced decent growth. According to the third edition of eBay India census 2010 conducted across 28 states and seven union territories, India’s top five rural DIGITAL MARKETING hubs are Ambalapuzha (Kerala), Sajiyavadar (Gujarat), Adala (Gujarat),

Abdalipur (West Bengal) and Kangayampalayam (Tamil Nadu). This means there are two rural DIGITAL MARKETING hubs of Gujarat in top five across India. The survey reveals that Gujarat has emerged as one of the top five Digital Marketing shopping markets in the country. Gujarat is ranked 4th after Maharashtra, Delhi and Tamil Nadu. During the census in 2009, Gujarat was ranked at seventh, from which it has jumped to fourth position. The city of Ahmedabad ranks 7th among top 10 DIGITAL MARKETING hub in the country. eBay India, a 100 per cent subsidiary of eBay Inc one of the leading DIGITAL MARKETING hub in India , has observed a surge in the number of DIGITAL MARKETING hubs in India from 2,500 last year to 3,300 this year.

India is showing tremendous growth in the DIGITAL MARKETING. West India has the most active sellers at 46%. Indiamart. Rival tradeindia. GROWTH OF DIGITAL MARKETING During the year 2000-2001.com claims revenues of Rs. while the other was commissioned by the NASSCOM and prepared by the Boston Consulting Group. two major Industry Associations produced separate reports on DIGITAL MARKETING in India.According to the eBay Census Guide 2009 for Indian DIGITAL MARKETING scenario. lifestyle product category dominates in the global trade. In addition to this. For Global Trade. towns. Technology.com has 700. 38 crores and has a growing rate of 50 every year. lifestyle is the clear winner at 64% of all transactions followed by Media & Collectibles at 15% each. and guitars . Undoubtedly. it has been found that India has over 2.in the country.000 enquiries per month. with the middle class of 288 million people. Delhi buyers bought the most sunglasses in the country according to the eBay census. synthesizers. The travel portals' share in the Digital Marketing business contributed to 50% of Rs 4800 crores Digital Marketing market in 2007-08. One was prepared by the National Committee on DIGITAL MARKETING set up the Confederation of Indian Industry (CII). The real estate costs are touching the sky. followed by West India at 27%. These hubs are the cities. Lifestyle category at 35% comes second in popularity for Digital Marketing Indians. being India’s favorite traded vertical category contributes 44% of totals DIGITAL MARKETING transactions according to the latest eBay Census. Delhi entrepreneurs sold the most technology gadgets at 46% of all transactions to buyers in India.000 registered buyers and it has the growth rate of 35% every year which is likely to double in the year 2010. followed by North India at 28%. South India has the most active buyers at 41% of all transactions. Whereas. villages and smaller towns covering the entire length and breadth of the country. brass. Delhi buyers have also bought the most number of high end digital cameras in the country. Further an annual growth of 65% has been anticipated annually in the travel portals alone. Both the reports are optimistic about the growth of . Elaborating India’s domestic Digital Marketing shopping scenario. Digital Marketing shopping shows unlimited potential in India. Lifestyle scored on the Exports front at 67% of all transactions Delhi sells the most musical instruments – percussion.com has attained Rs 1000 crores of turnovers which are around 20% of total DIGITAL MARKETING market in India.471 DIGITAL MARKETING Hubs. It receives around 500. The travel portal MakeMyTrip. Technology or technology related products dominate India’s domestic DIGITAL MARKETING. However.

75 billion) in the year 2006. China’s share of regional B2C DIGITAL MARKETING will grow more than threefold from 4. on the other hand. E-Marketer forecasts that Digital Marketing sales will more than double by reaching $168. estimates for the same year that the total volume of DIGITAL MARKETING will be Rs 1. higher than the 23.7 7 DIGITAL MARKETING Report released by Internet and Mobile Association of India (IAMAI) and IMRB International In China and India.5 billion). For the same group of five countries.2007 and expected to grow by 30% to touch 9210 crores (approx $2. Likewise. The NASSCOM-BCG Report.8% annual rate. 1 sales of selected countries in Asia Pacific Digital Marketing travel is the largest DIGITAL MARKETING sales category in most major countries.950 billion (US$ 41. Digital Marketing-travel spending drives B2C DIGITAL MARKETING sales. The Confederation of Indian Industry (CII) report estimates the volume of e commerce to grow to Rs 500 billion (US$ 10. market share is moving toward Australia. . India is still in is its initial stage of development. Between 2006 and 2011.15 billion) by the year 2007-2008.1% in 2006 to 14. Music Absolute. At the low end. and sellers can avoid the logistics and delivery problems associated with physical goods. in the recent years.6 billion) in the year 2003. Consumers are less wary of buying services like train or airline tickets Digital Marketing.7 billion by 2011. “ The total Digital Marketing transactions in India was Rs. The low cost of the PC and the growing use of the Internet has shown the tremendous growth of DIGITAL MARKETING in India. According to the Indian DIGITAL MARKETING Report released by Internet and Mobile Association of India (IAMAI) and IMRB International. South Korea’s B2C DIGITAL MARKETING sales will grow by 13.3% by 2011. 7080 crores (approx $1.3% rate for B2C DIGITAL MARKETING. plus New Zealand. and it accounts for a majority of total sales. According to a McKinsey-Nasscom report the DIGITAL MARKETING transactions in India are expected to reach $100 billion by the 2008. without venture capital funding include: Key 2 crorepati.3% over the same period. corporate in the automotive sector are improving their customer relations through this medium.7 billion in 2007 and are forecast to rise to $41. Some of the new names that are rediscovering DIGITAL MARKETING through new portals at relatively low capital cost.7 billion in 2011. a milk cooperative. is successfully using DIGITAL MARKETING to deepen its brand loyalty. the aggregate CAGR for the five countries will be 23. Gate 2 Biz. Fig. Although. Amul. as compared to the western countries.DIGITAL MARKETING in India. India and especially China. This indicates that travel is one of the key drivers of DIGITAL MARKETING sales in theAPAC region. Digital Marketing leisure and unmanaged business travel sales totaled about $17.3%. E-Marketer forecasts that from 2006 to 2011 Digital Marketing travel sales will grow at a 24.

trekking. Horror. 2) 3) Real estate and DIGITAL MARKETING. Digital Marketing evaluation. Health. one had to plan what to gift a loved one.In India today.India has a rich history and heritage and DIGITAL MARKETING is instrumental. to a large extent. Technical specifications. in selling India as a product. flora and fauna.They provide information on new properties as well as properties for resale.Some Indian portals/websites deal in a specialized field. Art. NRI services. Comparison of companies. Flowers. Stocks and shares and DIGITAL MARKETING. Vehicle Finance. Eco-Themes pertains to jungles. Digital Marketing. Cookery. jewellery boxes. Hobbies and DIGITAL MARKETING. trudge across to your favorite shop. Chocolates. 4) 5) 6) . Some of the services offered to registered members are: Digital Marketing buying/selling of stocks and shares.In the bygone days. perfumes. for example: 1) Automobiles. Company information. Some of the services they provide are: Car research and reviews. The gifts are categorized as: Collectibles like paintings and sculptures. encouraging Indians as well as foreigners to see its multifaceted culture and beauty. Market analysis and research. Children’s Stories. we can even deal in stocks and shares through DIGITAL MARKETING. Luxury items like leather goods. and browse for hours before purchasing a gift. Research on Equity and Mutual Funds. The tourist destination sites are categorized according to themes like: Adventure .The most popular hobbies from time immemorial are reading. etc. Gifts and DIGITAL MARKETING. new as well as used vehicles.On these sites we can buy and sell four-wheeler and twowheelers. Woodcraft. household curios and carpets. Medicine. The books cover a wide range of topics like Business. Engineering. etc. Packers & Movers. music and films. Home & Garden. Insurance companies. Biographies. One can deal directly with developer through consultant. etc. Travel & tourism and DIGITAL MARKETING. Allied services: Housing Finance. Vehicle Insurance. Toys & games. Architects & Interior Designers. mountain climbing etc.

Health & Beauty.com in Hindi) are instrumental in providing job seekers with suitable employment at the click of a mouse. Information on Customs and Rituals.7) Matrimony and E. religion or caste. Legal issues.com (meaning job.It is said that marriages are made in heaven. but in the world of DIGITAL MARKETING they are made on marriage portals One can search for a suitable match on their websites by region of residence (India or abroad).commerce.naukri.Two major portals like www. Allied services for registered members: Astrological services. Fashion & Style.com and www. The service for job seekers is free and for Employers they charge a nominal fee.Monsterindia. and from real estate to education lanners 8) . Jobs are available Digital Marketing in fields ranging from secretarial to software development. Wedding Employment and DIGITAL MARKETING.

S. It has web presence in Maps. Software Development. Kolkata and Delhi. FlexTCA Systems. 4) Euro link Systems Limited: This leading DIGITAL MARKETING Company provides consulting and e-business solutions. It is a leader in the provider of integrated talent management software organization in India. The company also uses the latest payment modes and security. 2) Candid Info: This Indian DIGITAL MARKETING company is based in New Delhi. It has its office in Mumbai. design and strategic planning. Lucknow and will shortly set up offices in Delhi. Website development services. The company has three Software Development centers in Mumbai and the overseas branch office in New York. The company has its offices in Chennai. Internet Marketing and Human Resources. It specializes in Content development services. airline and security systems by using the internet technologies and tools of the state of the art. Switzerland. 5) HashPro Technologies: It offers e-business and traditional analysis. It offers off shore web development. Media. Trillium Protocol services to the global community. and India with about 200 employee strength. designing. It is a renowned Offshore Outsource Web designing development DIGITAL MARKETING Company. . Kathmandu. 3) Chenab Information Technologies Private Limited: This DIGITAL MARKETING company in India comprises of web enabled business and web bases services. The company manages about 1500 websites and portals with 4000 domain names. 6) Compare Info Base: The Company is leading provider of DIGITAL MARKETING portals and IT solutions. and SEO solutions for large corporations and SME's.LIST OF TOP DIGITAL MARKETING COMPANIES OF INDIA 1) ASA Systel Communications Pvt Ltd: It is a leading DIGITAL MARKETING company in India which provides innovative and a superb quality web service which encompasses the building of DIGITAL MARKETING related websites and portals. The company has its office in England. Bhopal. GISTravel. PHP Programming & Development etc. U. It is key technology consulting provider. Mumbai. Education. development. and Greetings etc. It renders services like the DIGITAL MARKETING Hosting. The eWorkforce initiative of the company will enable the company to become a 100 percent e-Corporation. implementation.

Customer) solutions to global enterprises.The clients of the DIGITAL MARKETING company spans from the small scale companies to corporate organizations. It is an IT consulting and Solutions Provider which offers personalized and personal business solutions using Information and Communication Technology. 10) Trisoft Design: Trisoft Systems is a software services company that offers solutions exclusively on the Microsoft Platform to customers worldwide. identity thefts and phishing infrastructure costs. Research studies have indicated several factors responsible for the sudden spurt in growth of DIGITAL MARKETING in India such as: VOIP (Voiceover-IP) have bridged the gap between buyers and sellers Digital Marketing mergence of blogs as an avenue for information dissemination and twoway communication for Digital Marketing retailers and DIGITAL MARKETING vendors environment and help prevent credit card frauds.7) Sanver E-solutions: This Company is based in Mumbai. 8) Planet Asia: This DIGITAL MARKETING company in India uses track record and deep experience in externalized applications to produce high quality B2SPEC(Business to Partner. UK is first B2B Digital Marketing shopping . 10 years of experience on the Microsoft Platform puts the company at the forefront of . Supplier.Net Technology. 9) Candid Web Technology. Timeline   1979: Michael Aldrich invented Digital Marketing shopping 1981: Thomson Holidays.This fast growing DIGITAL MARKETING Company in India is a provider of Com Web Solutions for the design and development of dynamic web sites . They believe that Information Technology is a way to the business objectives.

72. Attempts to offer flower delivery and magazine subscriptions Digital Marketing. 1995: Thursday 27 April 1995. Product Manager for CompuServe UK. 1995: Jeff Bezos launches Amazon. as do cars and bikes. The first Digital Marketing bank opens. World Wide Web. Adult materials also become commercially available. 1985: Nissan UK sells cars and finance with credit checking to customers Digital Marketing from dealers' lots. Radio HK and Net Radio start broadcasting. 1994: Netscape releases the Navigator browser in October under the code name Mozilla. using a NeXT computer. internet-only radio stations. Pizza Hut offers Digital Marketing ordering on its Web page. 1987: Swreg begins to provide software and shareware authors means to sell their products Digital Marketing through an electronic Merchant account. from W H Smith’s shop within CompuServe’s UK Shopping Centre is the UK’s first national Digital Marketing shopping service secure transaction.0 is introduced in late 1994 SSL encryption that made transactions secure. eBay is founded by computer programmer Pierre Omidyar as Auction Web. And it leverage China's B2B and C2C.            . 1984: Gates head SIS/Tesco is first B2C Digital Marketing shopping and Mrs. 1992: Terry Brownell launches first fully graphical. 1982: Minitel was introduced nationwide in France by France Telecom and used for Digital Marketing ordering. CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.com and the first commercial-free 24 hour. 1998: Alibaba Group is established in China. is the first Digital Marketing home shopper 1984: In April 1984. the purchase of a book by Paul Stanfield. Netscape 1. B2C market by its Authentication System. Dell and Cisco begin to aggressively use Internet for commercial transactions. 1990: Tim Berners-Lee writes the first web browser. Snowball. 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web. iconic navigated Bulletin board system Digital Marketing shopping using RoboBOARD/FX.

rather than a central portal. acquired by Amazon.4 billion. is established. ATG Stores launches to sell decorative items for the home Digital Marketing. the group buying websites plans to go ahead with an IPO in mid-2011. which was purchased in 1997 for US $149.com posts first yearly profit. Donnelley for $345 million.a secure Digital Marketing payment distribution solution 2007: Business. acquired by eBay for $2.5 billion.com acquired by R.com sold for US $7. 1999: Business. acquired by GSI Commerce for $180 million. 2010: Groupon reportedly rejects a $6 billion offer from Google Instead. operator of private sale website RueLaLa. 2001: Alibaba. 2011: Digital Marketing payment and recurring billing services provider Vindicia. forcing other b2b sites to move away from the "yellow pages" model.com.com acquired by Amazon.com for $500 million in cash plus $45 million in debt and other obligations.com for $928 million.            . GSI Commerce. Retail Convergence.000.com. 2003: Amazon. The peer-to-peer file sharing software Napster launches. 2002: eBay acquires PayPal for $1. is named the 20th fastest growing company in Silicon Valley.5 million to eCompanies. developing and running Digital Marketing shopping sites for brick and mortar businesses. China's first Digital Marketing b2b transaction platform. 2009: Zappos. Quidsi. 2011: US DIGITAL MARKETING and Digital Marketing Retail sales projected to reach $197 billion. parent company of Diapers. 2004: DHgate.H.com achieved profitability in December 2001. plus up to $170 million in earn-out payments based on performance through 2012. a company specializing in creating.com. 2000: The dot-com bust.com. 2005: Yuval Tal founds Payoneer. Niche retail companies Way fair and Net Shops are founded with the concept of selling products through several targeted domains. developer of the CashBox SaaS billing solution. an increase of 12 percent over 2010.

and low-cost clothing from stores like Primark. FMCG goods are taken to be food. and toiletry categories. drink. so marketing communications for them necessarily tend to the universal. have much broader markets. There are some brands whose core customer is quite easily definable. washing up liquid. household product. etc). such as PlayStation3 or Harley Davidson. This presents the marketer with a fascinating task . although non-fashion items from such stores may fit under the FMCG umbrella. household products (detergents. Consumer goods that are excluded under this definition include entertainment products (cd‟s. Why FMCGs specifically? There are three reasons. print media (such as magazines). who doesn‟t purchase fabric softener or chocolate bars or deodorant? These are products that everyone uses and consumes. toiletries. drink. The first is that is an intrinsically interesting sector any visit to a large supermarket will show that consumers have an amazing amount of choice when it comes to branded goods in the food.Fast Moving Consumer Goods Fast Moving Consumer Goods (or FMCGs) are low-cost items that consumers tend to buy habitually and frequently. and toys. making the question of how to use the Digital Marketing channel for marketing purposes quite an interesting one. however. For the purposes of this report. Most FMCG brands. how to identify them. dvd‟s. etc). Who to target.how to make a brand stand out? How to connect with the consumer so that they will choose one brand of pickles over a competing brand? The second reason is that it is not just interesting. but a challenge. and how should they be engaged? The final reason to look at FMCGs specifically is that there has been little written about the particular challenges of marketing FMCG INDUSTRY through Digital .

In May 2010. as all those web-based media services where non-professionals can create or distribute content (and content creation in this sense can include basic actions like posting comments). such as social networks. as compared to 11.and videosharing sites. however. and the practitioner literature is fairly sparse. with Digital Marketinghaving overtaken search engines in UK internet visits as of May 2010. defines Digital Marketing more expansively. Even under this more expansive definition. What is Digital Marketing? SOURCE: Experian Hitwise (2010). they think only of internet-based social networking services like Facebook. according to the consultancy Hitwise. message boards.33% for search engines. Due to the size and importance of this sector. Literature Review 1. and Twitter. MySpace. it is therefore useful to attempt to plug this particular research gap. a remarkable record of growth considering . business associates and/or strangers. Digital Marketingaccounted for 11. and the Social Science Citation Index have shown nothing in the academic literature on the topic.Marketing – searches on academic databases such as Business Source Premier. which is why there are so many different definitions of Digital Marketing. acquaintances.88% of UK internet visits. where users can interact with friends. family. In recent years these sites have become so popular that they have begun to challenge the search engines‟ status as the most popular web destinations. Different people draw the line in different places. the most important Digital Marketing sites are definitely the social networks. When most people think of Digital Marketing. and photo. having elements of interactivity doesn‟t automatically make something Digital Marketing. blogs. This report. Although there are social elements to much of the web (from Amazon‟s review section to newspaper comment sections). Emerald.

an amazing achievement in only six years of existence.php?statistics (accessed September 18. p. which has grown to over 500 million active users as of September 2010.that Digital Marketing social networking is less than a decade old. Also see Clark (2009). Why are consumers flocking to Digital Marketing? SOURCE: See http://www.com/press/info. from connecting with old school friends to organizing political activism to discussing branded products.” Slate‟s Farhad Manjoo sees the avalanche of data resulting from the extension of Facebook‟s „like‟ capability across the web giving Facebook a unique database of human intensions and desires. According to Putnam. 2010). according to Hitwise research released in early 2010 The sector‟s clear leader is Facebook. soon. a tool allowingFacebook users to „like‟ content on third-party websites and have a link posted to their Facebook walls for their friends to see. 200 million by 2009. It has recently become profitable. personalized web that gets better with every action taken. “to make itself as ubiquitous and essential as Google” 2. . Facebook had grown to 100 million users by 2008. These sites are increasingly where people turn to find out about news and culture. 107.facebook. Facebook Platform is designed to allow the user to “shape your experiences Digital Marketing and make them more social … The power of the open graph is that it helps to create a smarter. with Facebook having now supplanted Google News as a driver of traffic to news websites. a major achievement in light of the many sceptics who doubted that social networking could come up with a viable business modelIn spring 2010 it rolled out Facebook Platform (right). allowing it to develop new innovative services. with average time spent engaged in such socializing falling from 85 minutes to 57 minutes. but most are more general. Some Digital Marketinghave specific purposes (like LinkedIn for career networking). From the founding in 2004. and can be used for all kinds of purposes. and over 500 million by late 2010 Putnam (2000). According to Facebook CEO Mark Zuckerberg. and. between 1965 and 1995 the proportion of Americans who spent time doing informal socializing on any given day fell from 65% to 39%.

I am able to communicate and „experience‟ so much more with so many more than I could even two years ago … The social nature of the net allows us to be better informed about friends and family than ever before. 170 Levine et al (2009). particularly in America. because people continue to thirst for a connection to others. 8 The Economist. however. “The Virtual Curmudgeon”. with technology writer Jaron Lanier recently making the argument that Digital Marketingfoster shallow „friendships‟ that offer no more than a simulacrum of actual human interaction. Firstly. my social reach is much wider as a result of the internet. p. p. This was the trend that the American social scientist Robert Putnam wrote about in Bowling Alone. 115 Quitney Anderson & Rainie (2010). (2010). One of the dominant social trends of recent decades across the world‟s advanced economies has been the decline of community activity as people. Not everyone is convinced by this rationale. In the Pew Internet Center‟s 2010 report “The future of the internet.Putnam (2000). spend less time informally socializing and more time alone in front of their televisions or their computers. 22 Digital Marketing offers the average person several different things at once. We will all be richer from it. it allows people to stay connected with many more people than would have been possible in the past. but he did note that the internet offered the potential for a revival of human interconnectedness. pp.” Michael Burns of i5 Web Works made a good point about Digital Marketing‟s ability to maintain connections across boundaries of time and geography that would once have been insurmountable: Today and tomorrow. The 1999 internet marketing classic The Cluetrain Manifesto made a similar point when it said that what was drawing people to the internet was “the promise of voice and thus of authentic self. p.” The rise of social networking can be seen as a confirmation of this hypothesis. and will happily take up new technologies that offer new ways to build bonds with others. .

ed. ch. 138. p. banner & pop-up ads. 17 from Iacobucci.Much of the current debate on Digital Marketing was anticipated in the first wave of digital marketing literature from the late 1990‟s/early 2000‟s. 54 Temporal and Lee (2001). 145-161 Mohangir Sawhney and Philip Kotler. it is useful to first understand the impact of the internet on the marketing profession over the last 15 years. As David Armano of Edelman Digital put it in a Harvard Business Review blog posting. There are several key ways in which the internet has affected marketing: consumers (e-mail.” 3. entertainment and product information with other members of a social network. web spaces. “Marketing in the Age of Information Democracy”. search advertising. and now social media) marketing channels less effective for reaching consumers Negative or positive news about a brand can now spread much faster than was previously possible in the past.A second reason why Digital Marketing has become so popular is the growing prevalence of „social sharing‟ – sharing news. . p. (2001). “Companies will survive employees telling their truths … We listen to individuals differently than we do to organizational speech. 403 Before looking at the specific challenges and opportunities that Digital Marketing confronts marketers with. “sharing useful information that might help someone within your network scores you points and builds equity. p. p.The Challenges of Digital Marketing Marketing SOURCE: Levine et al (2009).” Winkler (1999).

It goes without saying that the internet is a double-edged sword for brands. Lee argued in their 2001 book Hi-Tech Hi-Touch Branding that extending a brand on to the internet requires. establishing trust and delivering on the brand promise. In her 1999 book WarpSpeed Branding Agnieszka Winkler explained how the internet enabled brands to be built much quicker than before. Today that insight is a truism. yet it can also spread bad news about a brand at lightning speed. Putting the processes into pl place so that brands could do these things Digital Marketing was not necessarily a simple process. but at the time it was revolutionary. Another way in which the internet has impacted on marketers was how it has dramatically sped up all kinds of marketing processes. being consistent with the real-world branding and personality. yet they areabsolutely crucial to understanding the business consequences of the inter-connected nature of the internet. that all economic activity involves the needs. and varying content to suit different users. These insights. starting with the first two that declared that “Markets are conversations” and “Markets consist of human beings. making the brand experience interactive. is often forgotten in conventional business thinking. amongst other things. obscured by the avalanche of quantitative data produced by the various branches of modern capitalism. which set out 95 theses about how the internet was transforming the world of business. It can allow brand managers to boost brand awareness in an amazingly cost-effective manner. Paul Temporal and K. Being able to build brands quickly is crucial because in the internet age the brand is more important than ever. In order to best take advantage of the opportunities that the internet offers. not demographic sectors. and choices of individuals. which is why Mohanbir Sawhney and Philip Kotler of the Kellogg School argued in 2001 that due to the internet: . The authors understood early on that the web was a different communications medium. and that businesses would have to abandon jargon and sound human in order to really engage with consumers.Perhaps the most influential text from this time was 1999‟s The Cluetrain Manifesto (right). representing a whole ethos as opposed to just a product. such as how Amazon rose to become one of the best-known brands in America in a matter of years. wants.C.

89. are increasingly consuming television programming Digital Marketing and therefore experiencing fewer advertisements. new product development. the key to achieving this transformation is applying web principles like openness and speed to subverting the sclerotic hierarchies endemic to the traditional business world. In a 2010 article for 3 Quarks Daily. also see Scase (2010) McEleny (2010) Brynley-Jones (2010) There are three main reasons why Digital Marketing has become such a hot topic for marketers in recent times: 1. such as market research. Keen (2008). Digital Marketinggather together large numbers of consumers in one place. Manisha Verma argued that internet advertising has failed to fulfil expectations because it is the wrong revenue . especially young people. p. Digital Marketing allows direct.The role of marketing in the organization will have to change. 2. also see Chokshi (2010). unmediated access to consumers. “Our Changing TV Habits” for data on how Americans. Only by rebuilding from the bottom up can business rehumanize itself. p. which can be used for a variety of purposes beyond pure marketing. 37. What does a Digital Marketing mean for marketers? SOURCE: Varian (2010) Lindstrom (2009).customer interactions to an integrator of customer-facing processes marketing needs to integrate all the customer-facing processes. The marketing organization will need to redefine its role from being a mediator of firm. and public relations 3. so that customers see a single face and a single voice when they interact with the firm. Most other forms of internet advertising have not really worked understanding the growing importance of social. According to The Cluetrain Manifesto. and only by having conversation internally can a business be ready to have a real conversation with its customers 4.

which is why Digital Marketing has become such a hot topic for marketers. SOURCE: Hewitt-Taylor (2001). and even further since. and Foursquare now function as hubs for the internet – instead of chasing across the internet. Digital Marketing sites like Facebook.41-42 Pitta et al (2006). even after years of rapid growth. and because they can avoid it. YouTube (left). 5. marketers can use a relatively small number of Digital Marketing services to reach large numbers of potential customers.2% of US newspaper industry revenue. Twitter. Figuring out new ways to get marketing messages through to consumers has never been more important. One of the difficulties of this situation is that the audience has become so much more sophisticated. but it is pretty much unique in this regard. and so modern marketing means. because it interferes with the Digital Marketing experience. recall of ads dropped from 34% in 1965 to only 8% by 1990. particularly newspapers. Brands in the Social Space. Web users don‟t like internet advertising. 421 . The failure of Digital Marketing advertising has had lethal consequences for many media organisations. with Facebook having overtaken Yahoo as the biggest publisher of display ads in the United States earlier in 2010. This concentration of the audience has driven increasing amounts of advertising revenue to the social networks. in 2010 Facebook is predicted to earn $1 billion in advertising revenue. by the time the average person reaches the age of 66. Indeed.model. but also increasingly indifferent to marketing messages? After all. especially pop-ups. p. Google has been very successful with Digital Marketing advertising. because revenues from web ads have come nowhere near filling the gap from the collapse of print advertising revenues. For brand managers. they will have seen approximately two million television commercials. they do. p. Digital Marketing advertising only accounts for 8. advertising without seeming to advertise whilst maintaining an aura of authenticity. as Andrew Keen argued in The Cult of the Amateur. the decline of traditional advertising channels and the relative weakness of Digital Marketing advertising presents a conundrum – how to promote the brand to consumers who are not only harder to reach than before. yet according to Martin Lindstrom.

If the profile drives marketers‟ to concentrate their resources on a particular idea of the customer. what are the meanings. While these profiles are useful. and traditions of those communities. and so on. rituals. marketers have been using information technology to try to learn more about their customers as individuals since the 1980‟s. they also carry the riskof lulling the marketer into a false sense of security – after all. 406 One of the great advantages of Digital Marketing to marketers is the opportunity it offers to them to interact directly with their customers as individuals. qualitative methods have always had a place in marketing. two children. where and how they find sources of community. then they may be missing out on many other opportunities.” Nor is the concept of “getting close to the customer” a new one. with idiosyncratic and personal views forming an important part of the overall picture. and therefore see their customers as real people in all their complexity. and is not representative of the full range of customers. we discover the variety of forms and the patterns within how and why we consume.” Story & Hess (2006). married. a 35 year old woman. p. an approach that Robert Kozinets of York University calls netnography. who are the most influential voices in those consumer communities. say. What makes Digital Marketing different from traditional market research is that it offers the possibility of ongoing. 9. With analysis and interpretation. the profile is nothing more than a statistical average. p. and for decades researchers have used qualitative methods to uncover “the meanings and values attributed by individuals in real-life situations. unmediated two-way communications between the brand and its customers. At the highest level. Kozinets argues that netnography can provide “a window into the . let alonepotential customers. and not just as statistical abstractions cobbled together from market research data. Of course. this can involve the application of techniques gleaned from anthropology to using Digital Marketing to learn about the customer. The full quote on what netnography does is worth reproducing here: “We gain deep insights into who our customers are. living in the Midlands and the buyer of two boxes of Cheerios every week. Market research is very good at creating „profiles‟ – the phantasmic „average‟ consumer who is.Kozinets (2010).

this focus on relationships represents a challenge to the traditional datafocused nature of most customer relationship management (CRM)frameworks. Gladwell calls them „mavens‟. 6. Although such people have always existed. p. Ben Straley of Meteor Solutions reported that on average 1% of a site‟s audience generates 20% of its traffic –these are the people who share content. the most suitable individuals can be targeted with the right information. According to a 2010 report by research firm Gartner. relatively few of them have had a platform to influence large numbers of other people. Malcolm Gladwell makes the point that they are information brokers who have developed a particular facility for persuading others to trust their opinions. In an April 2010 article for leading Digital Marketing blog Mashable. What makes Digital Marketing so revolutionary is that it offers anyone who may want to share their opinions with the world the ability to do so. Influencers are those individuals who. others look to for information and advice. or other products and services. cars. p. consumer goods.” In many ways. music. advises that: Companies attempting to use Digital Marketingshould develop relationships with key customers over a period of time and progressively refine the socialnetwork profiles of those individuals … In this way. 97 Gladwell (2002). but the term is essentially inter-changeable with influencer A key element of any Digital Marketing strategy is engaging with influencers. 20% of the globe‟s Digital Marketing audience could be defined as influencers. Nick Ingelbrecht. products and promotions in the most cost-effective way.The Role of Influencers SOURCE: Rosen (2006) Li & Bernoff (2008). since historically there have been only a limited number of paid positions available for critically appraising movies. for reasons of their particular charisma and/or knowledge. In The Tipping Point. In order to best use the talents of these individuals. 69. who push others to .realities of consumer groups as they go about their lives … (allowing us to) gain deep insights into who our customers are. research director at Gartner.

but it does require caution. in a 2009 article for the Journal of Interactive Advertising. and useful. ultimately. is that they tend to “possess higher standards for products and the companies behind them49. Since Digital Marketing is so new. founder of the PR agency Borkowski. Jo (2010). and so there is quite a diverse range of ways in which practitioners judge the success (or not) of their work in Digital Marketing. According to Mark Borkowski. Deepening your relationship with these influential fans is afantastic way to improve Digital Marketing performance.com (2010). it‟s about fame.Measuring Success SOURCE: Warc.the site. p. “For most people that spend time creating and sharing content. as he says. Instead. since an overly „salesy‟ approach may alienate them. it is necessary for brands to understand their influencers – what motivates them. Chris Murdough listed three main areas of measurement for marketers working in the social space. – The volume of mentions on the social web and where they are occurring . “Shiny New Things”. an influencer strategy won‟t work for a weak brand. “Influencers make up 20% of Digital Marketing audience” Straley (2010) Ad Age Insights (2010). p. As Straley points out.” and they are not shy about spreading the word if they feel something is not up to standard. 17 One of the trickiest tasks in Digital Marketing is defining „success‟. and. As an example. as well as what kind of content they like to share. special. help put money in the brand‟s pocket. it‟s not about fortune. 13 Roberts. 7.” The other risk with targeting the sub-section of influencers known as „early adopters‟ (those individuals who are first to pick up on new products or services). there are not as yet any universally established metrics for measuring the effectiveness of Digital Marketing campaigns. and. they are not a miracle cure. Even though influencers can do a great job of spreading the word about a brand. They share links with friends and their wider social network because it makes them feel important.

it is worth looking briefly at Wieden + Kennedy‟s recent campaign for Old Spice deodorant (left). W+K solicited questions from Twitter users. or they advertise through well-followed users. Brian Solis of FutureWorks says that Return On Investment (ROI) should not be a crude financial measurement. . return on experience (in terms of engagement). Through the use of humour and direct engagement. and return on influence (how the message spread across the social web and impacted on individual behaviour). W+K were able to attract over 100 million views to the various videos – a success that translated into a US sales boost of 107% in the first month.– What are people saying about the brand? What topics are they discussing. Many brands strive to build their follower numbers. Since follower numbers has been a key metric for many companies looking to market through Twitter. but should also measure the return on participation (the activities associated with the campaign). and is it what the brand wants people to talk about? – What is the level of engagement from social web efforts? Can this be linked to actual sales? In his book Engage. but these users are not necessarily the ones who have the most influence within the network. which were then responded to by the main character in a series of short YouTube videos. The difficulty of developing effective metrics for Digital Marketing marketing was illustrated by a 2010 paper called “Measuring User Influence in Twitter: The Million Follower Fallacy”. one of the most successful Digital Marketing campaigns ever. man” Super Bowl advertisement for Old Spice and brilliantly extended it into the social space. In the absence of any universally agreed method of measuring success in Digital Marketing marketing. which illustrated that the number of followers of a Twitter account was unrelated to how influential that account actually was. this was an important revelation. The campaign took Wieden + Kennedy‟s tonguein-cheek “Smell like a man. What W+K did so well was to use a variety of Digital Marketing tools in a way that took advantage of the strengths of each in order to create a multipronged approach that hit consumers at a variety of touchpoints.

The EIAA Marketers’ Internet Ad Barometer. and there are a number of lessons that all brand managers can take from it: that they will want to share Increase in Profit after the Implementation Of Digital Marketing Advertisers forecast that Digital Marketing will represent a growing share of their overall media budgets over the next two years. .This campaign is an excellent example of how Digital Marketing can be used to market FMCG goods. reveals that 42% of those questioned already spend over 5% of their media budgets Digital Marketing and 74% of all those surveyed regard the internet as a vital component of their advertising strategy. commissioned by the EIAA to understand the role Digital Marketing advertising plays and attitudes towards the Internet amongst key advertisers across Europe. According to 80% of respondents. especially within the FMCG sectors. increasing broadband penetration is making the Internet more attractive as a branding medium and Digital Marketing ad spend is forecast to rise by over 65% by 2012.

Coca-Cola isn’t only the biggest company on Facebook among FMCG but also the number one brand on Facebook overall. .Number one company among FMCG is Coca-Cola (22M fans).

Second position belongs to popular biscuits Oreo (16M fans).8% in 2008 . The research showed that the percentage of overall media budgets devoted to Digital Marketing are forecast to rise from 5. These two brands have very similar Fan Growth rate as you can see on the following graph. .a massive 75% growth rate. FMCG Brands FMCG brands are demonstrating strong signs that they are embracing Digital Marketing. Oreo is closely followed by Red Bull (15M fans) and Skittles (15M fans).6% in 2005 to 9. Internet advertising expenditure will experience a boost by both the higher and lower spenders of the sector over the next two years. with the higher spenders stating that 64% of this extra spend has come from other media budgets and 57% of respondents claiming the spend has been diverted from TV advertising.

especially amongst the higher spenders. profitability and market share. Travel is also diverting ad spend from print while Automotive advertisers are taking share from across the media board. FMCG companies are siphoning spend from TV advertising while Entertainment and Consumer Electronics companies are reallocating budget to Digital Marketing primarily from TV and print. Higher spenders are also more than twice as likely to view Internet advertising as essential to their overall advertising strategy and see Digital Marketing as having a greater influence on sales. Lower Spenders The survey highlighted other marked differences between those who already spend significantly Digital Marketing (6+% of media budget) and those who are catching up (1-5%). Maturing Attitudes: Higher vs.Taking Share from Traditional Media The research reveals that Digital Marketing is chipping away at the heartlands of the advertising market. intent to purchase. . The lower spenders are driven primarily by increased use of the Internet while the higher spending Digital Marketing advertisers place greater importance on the medium’s reach and share of voice.

 50 numbers in all. Interview with Marketing Professional. Data Collection  Secondary Data: Digital Marketing reports related to Digital Marketing advertising.RESEARCH METHODOLOGY Research Design This is a descriptive research as it will clarify the doubts about Digital Marketing advertising.  Primary Data: Questionnaire. Sample Universe Basis of Sampling  Sample should be a user of internet or should have knowledge of internet. It will give us a clear picture on the effectiveness and reliability of Digital Marketing advertising compared to traditional form of advertising. Personal Interview. Sampling Technique .

Movies € > 6hrs Newspaper. Mags € > 6hrs Radio € > 6hrs € < 1hr € < 1hr € < 1hr € 1 .2hrs € 1 .4hrs € 4 .Judgmental Non Probability sampling can be used to select the individual units for better productivity of the questionnaire. How much time do you spend……? TV.6hrs 4 .6hrs .4hrs 2 . QUESTIONNAIRE Name:_______________________________________________ Age Group (yrs): € 40 to 55 Gender: € € 55 + Male € Female up to 18 € 18 to 25 € 25 to 40 1.2hrs € 1 .4hrs € € 2 . Do you like Advertisements? € Yes € No time 2. A well educated person may be able to reason out the questions in the better way.6hrs € € 4 .2hrs € 2 .

Which is the last FMCG TV commercial you remember? Which brand was it? ________________________________________________________________ ______ 7.4hrs € 4 . _______________________________ . _______________________________ 2. Do you watch the TV/Radio commercials during commercial break? € Yes € No ng of time 4.Internet € > 6hrs € < 1hr € 1 .6hrs 3. I change the channel during commercial breaks… € Never € sometimes € depends on ad € often € every time 5.2hrs € 2 . Name any five FMCG TV commercials you remember lately 1. Which is the last Newspaper/Magazine ad you remember? Which brand was it? ________________________________________________________________ ______ 6.

8.. What mode of advertising influences you to buy/suggest any product? . (Rank them in order of your preference) -Commerce 12. Name any five Digital Marketing ads you remember lately 1. _______________________________ 5. _______________________________ 11. _______________________________ 4. Do you see/check Digital Marketing FMCG ads/mails when you surf the internet? € Never time € sometimes €depends on ad € often € every 9. _______________________________ 3. Which is the last FMCG Digital Marketing ad you remember? Which brand was it? __________________________________________________________ 10. _______________________________ 2. You use the internet for….

Social Networking site. Which mode of Advertising would you trust? (Rank in order of preference) spapers Digital Marketing banner ads . Emails.Digital Marketing advertisements Digital Marketing – Blogs. Which mode of advertising would you prefer? (Rank in order of preference) Digital Marketing Ads: Banners. 13. forums. 14.

Do you think that the face of advertising is transforming in terms of technological and cultural impact? € Yes € No .15. You cannot live without… (Rank in order of preference) 16.

DATA ANALYSIS .

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75 billion) in the year 2006. Advertisers diverting spend from TV and print media to Digital Marketing. etc.2007 and expected to grow by 30% to touch 9210 crores (approx $2.15 billion) by the year 2007-2008. message association. as compared to the western countries. Computers and peripherals. The total Digital Marketing transactions in India was Rs. Digital Marketing advertising has a positive impact on traditional branding metrics like awareness. Books and magazines. deliverability. Branding metrics continue to increase with additional exposures Digital Marketing advertising works in FMCG – a category whose adoption of the Internet trails other Industries. Household appliances. Software. Vehicles. According to a McKinseyNasscom report the Digital Marketingtransactions in India are expected to reach $100 billion by the 2008. Digital Marketing advertising offers potential benefits like target ability. To name a few: Apparel and accessories for men and women. flexibility. FMCG and entertainment brands planning significant Digital Marketing spending. Digital Marketing terminology and campaign measurement no longer perceived as huge barriers. Consumer electronics. Although. Audio/video. There are websites providing any number of goods and services. goods. Health and beauty products .CONCLUSIONS     Digital Marketing ad spending expected to grow substantially over the next 3 years by 2015. Real estate and services . Then there are those. Gift articles. which provide a specific product along with its allied services. Jewelry. etc. India .      Today Digital Marketingis a byword in Indian society and it has become an integral part of our daily life. Indian Digital Marketingportals provide goods and services in a variety of categories. Digital Marketing advertising builds brands! When measured in isolation. 7080 crores (approx $1. tracking. entertainment.

7 billion in 2011. India and especially China. identity thefts.is still in is its initial stage of development. REMAINING AREA OF STUDY MARKETING FMCG THROUGH MOBILE . Market share is moving toward Australia. The emergence of blogs as an avenue for information dissemination and twoway communication for Digital Marketing retailers and DIGITAL MARKETING vendors environment and help prevent credit card frauds. E-Marketer forecasts that Digital Marketing sales will more than double by reaching $168.

Singh Legal and Policy Framework for Ecommerce in India Nishith Desai Associates.References Competition in B2C eCommerce: Analytical Issues and Empirical Evidence Stefan W. www. August 2000. Pollock.K.nishithdesai. & Kaushal Sharma. Litan and Alex J. Competition Commission of India Digital Marketingand its implication for competition policy Discussion Paper 1. Working Paper 06-03. LLP Shanker Singham. Schmitz and Michael Latzer Entering the first century : competition policy in the world of b2b electronic market places A report by federal trade commission staff 2000 The CPI Antitrust journal July 2010 Maximizing competition in the case of two sided markets Int’l Roundtable on Trade and Competition Policy & Squire Sanders & Dempsey. a report compiled by the Frontier Economics Group for the Office of Fair Trading Perfect competition : From myth to reality Yogesh Upadhyay & S.com The Future of Charge Card Networks Robert E.February 2006 49 .

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