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A RESEARCH REPORT ON ‘’CLASS ADVERTISING’’

SUBMITTED TO: KURUKSHETRA UNIVERSITY IN PARTIAL FULFILLMENT OF THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION
2010-2012

Under the guidance of
Mr. SACHIN MITTAL (Lectt MBA) sem

Submitted by
SUSHIL KUMAR MBA 4th Regd. No. 07-GPG-132 Exam roll No.

SETH BANARASI DASS INSTITUTE OF MANAGEMENT & TECHNOLOGY (Approved by AICTE, Kurukshetra University, Kurukshetra)

SETH BANARASI DASS INSTITUTE OF MANAGEMENT & TECHNOLOGY OPPOSITE SECTOR-7, PIPLI ROAD, KURUKSHETRA-136118 CONTACT NO. 09120-78629, 01744-220456 GUIDE CERTIFICATE

This is to certify that Mr Sushil Kumar Roll no. CO920033 of MBA (4th Semester) of this Institute has completed Research Project title “CLASS ADVERTISING” under the guidance of Mr Sachin Mittal Lecturer of MBA in SBDIMT, Kurukshetra. The work is original and is done by student herself under my guidance. This is being submitted to Kurukshetra University, Kurukshetra in the partial fulfillment of the requirement of the degree of MBA.

(Director)

(Project Guide)

DECLARATION
I am sushil kumar student of MBA here by declares that the project report titled “Classs Advertising” is completed and submitted under the guidance of Advertising” “Mr Sachin Mittal” is my original work.

The imperial finding in this report is based on the data collected by me. This project has submitted to kurukshetra university, Kurukshetra for the purpose of compliance of requirement this examination.

Sushil Kumar

I would also wish to acknowledge my gratitude to all respondents whose sincere response helped me to accomplish this project. inspiration and encouragement. “No learning is possible without any proper guidance and no research endeavor is a solo exercise .A course research project are essential exercise and every student of professional studies is compulsory to go through these type of projects to find out the exposure of corporate world and its day-to-day dynamic characteristics. Department of our college for valuable guidance. some contribution is performed by various individuals”. Department.A. Sushil Kumar . Kurukshetra I would like to express my deep sense of gratitude to whole M.A. It was privilege for me to under take this research project under guidance of Mr Sachin Mittal . we received during all the research period and with out this contribution the completion of project might not be possible. Lecturer in M. It is said.ACKNOWLEDGMENT Being a student of M.B. Seth Banarsi Dass Institute Of Management And Technology.B.B.

yet. Till 90’s only foreign Banks were the main players in Retail Banking activities. Many European banks that had ventured into wholesale and investment banking activities in a big way had to pay a heavy price in the recent times. but it is only in the recent past that it has gathered special momentum. The economic downturn and gloomy capital market environment has made investment banking lose mush of its shine making many banks to shift their focus back to Retail Banking. the year 1995 marks the starting point of Retail Banking Revolution with Foreign Banks and new generation Private Banks taking the lead. Only a few years ago the Retail Banking was scorned by many specialists as too voluminous. as far as India is concerned. promising great scope in the years to come. Though internationally this revolution started in 80’s with the advent of credit cards followed by other products of retail financial services. We therefore choose to do our project on Retail banking within the Banking Industry.PREFACE Retail Banking has always been an integral part of the Banking activities the world over. . Consumer and personal loans were considered unproductive and were thus discouraged. liberalization and globalization of the Indian economy and characterized by intense competition and wafer thin margins has compelled banks to shift focus from Corporate Banking to Retail Banking and look upon retail banking as a solution to some of their immediate concerns. which has seen tremendous changes in the past years. But things have changed now. Retail Banking has regained banker’s interest not least because it is the activity where many major banks are making most of their money but also because of the more recurrent nature of its earnings. The paradigm shift in the Indian Banking Sector brought out by deregulation. transaction heavy and unprofitable business.

the classification of Indian consumers. For this purpose. a new concept was developed The SEC classification. The project report covers the overview of Indian Entertainment & Media industry. ratified by Market Research Society of India (MRSI) and is used by most media researchers and brand managers to understand the Indian consuming class SEC. there is a shift from mass advertising to class advertising. which was created in 1988. that calculates the overall preference of the people based on four parameters Reliability. Effectiveness. the project report shows a survey conducted on the basis of SEC showing the overall media selection or the inclination of the mass of the class and thereby making it easier for the advertiser to select the media for advertising. Class advertising requires lot of insights into the area to know the preference of the person belonging to a particular class. Further. is based on two parameters: Occupation and Education (Urban and Rural). For one such purpose. it is very essential for an advertiser to choose the right media that reaches right people at right time. it continues to be the top rated choice of the advertiser for the classification of the Indian consumer market. Also the comparative preference model. marketers followed mass advertising but then with the increasing competition and rapid media development and consumer shift in preference. the Indian advertising industry as a part of IE&M industry forms 38%. the project report covers one of the main aspects that has been one of the much talked about area of consumer segmentation: Socio-Economic Classification. With the advent of many media reaching to the bottom of the pyramid. Despite a debate over the reliability of the SEC.EXECUTIVE SUMMARY With a view to cater to the need of the advertiser and know the insights of the advertising industry. 17000 crores at present. estimated at roughly around Rs. Penetration and Preference of class from A1 to E2 (Urban) helps the advertiser to select the medium to advertise based on his target class and also with the Inter-class and Intra-class media comparision with the weighted score. However it is not an easy thing to predict as to what would be the best medium. For years. . It is one of the fastest growing sectors of the Indian Economy.

Shift from Mass to Class 5. Findings 11. Data analysis &interpretation 10.3 New Trends 2.1 Demographics 7.2 Media 7. Bibliography 14.4 Scope of Ad Industry in India 3. Class Advertising: Meaning 6. Mass V/S Class Advertising 4.1 An Overview 2. Annexure .3 Understanding target and media selection 8.1 An Overview 2.2 As a part of IE&M 2. SEC: Understanding Class 7. Conclusion 13. Categories and Growth 2. Research Methodology 9. Recommendations 12.CONTENTS 1. SEC: A debate 7. Advertising industry 1.

ADVERTISING INDUSTRY ADVERTISING INDUSTRY The concept of advertising existed long before we had a term for it. Advertising is defined as the art of positioning and creating brands and persuading consumers to buy them through messages in mass media or personalized media that is gaining much attention these days. .

companies. magazines. movie. With a population of more than one billion. hoardings etc Advertising is one of the aspects of mass communication. promote marketing system and boost economic growth.It is also the means of informing as well as influencing the general public to buy products or services through visual or oral messages. there's definitely money to be made. websites. image management. radio. Whether its brands. Today. bill-boards. Some of the commonly used media for advertising are T. A career in advertisement is quite glamorous and at the same time challenging with more and more agencies opening up every day. Advertising plays a significant role in today's highly competitive world.. personalities or even voluntary or religious organizations. Television. A product or service is advertised to create awareness in the minds of potential buyers. newspaper and magazine advertising and neon-lit billboards in the cities are fueling a revolution in consumer products and spawning new styles of living - . internet marketing etc. video and radio jingles. all of them use some form of advertising in order to be able to communicate with the target audience. Overview of Advertising Industry in India The structure of the advertising industry in Asia Pacific has been affected by globalization and Global companies are discovering the appeal of marketing their products in India. new areas are emerging within advertising like event management. Advertising is actually brandbuilding through effective communication and is essentially a service industry. It helps to create demand. newspapers. and a middle class that's larger than the total population of the United States.V.

The advertising industry in India is growing at an average rate of 10-12% per annum. but it is drawing criticism from Indians concerned that it could sharpen social tensions in a country with so many poor people.changing food habits. one of the largest target populations in the world. Over 80% of the business is from Mumbai and Delhi followed by Bangalore and Chennai from the rest of the other major cities in the country. The advertising industry is one the most important part of the entire Indian Entertainment and Media industry. fashions and home décor. But the boom in advertising has touched off a debate on whether the industry has developed too quickly without preparing consumers adequately. Local retailers in apparel. This figure. The advertising industry itself recorded a growth of 22 percent over the previous year contributing an estimated Rs 19. This new advertising is pleasing the growing middle class.000 crores annually on advertising and promotional activities. The advertising industry contributed a share of 38 percent in the overall IE&M industry revenue of 2007. food. In the last .100 crore in 2006. watches and jewelry have all increased their average ad spending by almost 50% in the past two years. was less than Rs 400 crores about 2-3 years ago which means the growth has been a whopping 40%. A once-flagging advertising industry is booming in India. The advertising and promotional spending by local brands is substantial during the festival season and almost 70% of the spending is done between Septembers to January. up from 37 percent in 2006.600 crore in 2007 as compared with Rs 16. Coupled with many other local players big retailing brands are spending to the tune of Rs 12. outdoor advertising and even models. according to industry estimates. The local firms are using all the available advertising tools from electronic to print. Advertising: As a part of Indian entertainment and media industry. It has become fiercely competitive and one of the country's fastest-growing economic sectors.

36371 crores by the year 2010. the total number of people using internet in our country is far less than other countries.four years. The print media industry still has the potential to grow as 236 million literate people in India are still not tapped by any publication. the advertising industry recorded a cumulative growth of 20 percent on an overall basis. On the basis of the estimation made by various agencies around the world. And more people in rural and urban areas are reading newspapers and magazines today. the major chunk of which will be contributed by the print media of nearly 50%. At present. In spite of the increase in the global internet usage. the print media is the highest contributor to the advertisement revenue followed by television and outdoor advertising respectively. . the reason of that could be the literacy levels rising to 551 million people in India.5-1% which is estimated to be 4% by the year 2011. Print media is also the favourite segment for global investors with maximum foreign investment in this segment. Thus the present share of internet media in advertising is nearly 0. the advertisement industry in India is estimated to reach approximately Rs.

Categories and Growth .

print. As per PwC.7% of the global US$ 1. Indian Media has a Entertainment growth of 17 per cent in 2007. films.Categories and Growth The and Industry recorded The IE&M Industry is expected to grow at a CAGR of 18% till 2011 to touch Rs 1 trillion from Rs 436 b in 2006. the industry recorded a cumulative growth of 18% on an overall basis. music and internet. In the last four years (2004-2007). it is just 0. radio. The expected growth for the year 2008-2011 can be known from the following chart: . over 2006.4 trillion media industry The IEM is divided into different segment like Television. it is expected to grow at a CAGR of 18% till 2011 to touch Rs 1 trillion from Rs 436 b in 2006. India will be one of the key drivers in pushing the global entertainment and media industry. As mentioned above. However though Indian Entertainment and Media (IEM) is one of the fastest growing sectors in the economy. Out of home advertising (OOH) and live entertainment are too gaining importance.

400 1.5020 2011 51.670 2009 33.450 500 720 1.700 870 2.640 2007 21.900 14.900 950 100.150 1.600 600 740 1.800 820 8.200 17. radio and OOH would also witness high growth rates.200 1.100 760 1.200 11. Internet. Television and print would continue to remain the largest segments.100 18.400 800 1. Revenues from the Animation and Gaming segments have not been included in the industry size as these are traditionally included in the Indian IT and Software Revenues .00% 18% Source: Industry estimates & PwC analysis *Note: The figures taken above include only the legitimate revenues in each segment.560 2010 43.790 8.600 1. Present and projected growth in E&M industry* (in Rs crore) 2006 Television Print Media Film Entertainment Radio Music OHH Advertising Live Entertainment Internet Total* 19. However.200 12.Given below is the breakup of the revenues among the various segments and the expected growth rate till 2011.170 CAGR 22% 13% 16% 28% 4% 17% 16% 43.120 12.900 23.100 270 49810 2008 26.000 900 160 43.500 1.900 1.600 1.600 16. Internet penetration would take time to mature.100 20.200 800 750 1.400 9.600 1.600 600 69.600 14.300 420 58.

It has seen many changes in terms of economic. Media sector is no exception to the trend. the penetration of television and radio industry in the rural areas with the help of the technology and the rising levels of incomes of the people in India has facilitated the growth rate of Media and Entertainment industry in India. and the income levels too have been experiencing a high growth rate.An overview Changing consumption patterns. Over the past few years. and hotels among other sectors. E&M industry is also expected to significantly benefit from this fast economic growth The Demographic Influence: Over the years. The increasing rate of urbanization. Lifestyle changes brought about by changes in economic activity are also spurring growth of the Indian E&M industry. the consumer mindset is changing due to increased exposure to global influences via media. spending power has steadily increased in India. demographic. The E&M industry generally tends to grow faster when the economy is expanding.discretionary sectors like retail. The Indian media and entertainment sector is one of the fastest growing sectors of the country and is expected to grow at an annual rate of 18% till the year 2011. India has registered the fastest growth among major democracies. It represents the fourth largest economy in terms of ''purchasing power parity''. technological. rising aspiration levels and increase in the number of middle-income and upper-income households has led to growth in non. Thus. and other interactions leading to higher aspirations. liberalization and others in the past decade which has led to the higher chances of growth to the industry. telecom. The Indian economy has been growing at a fast clip over the last few years. The Economic influence: The Indian Entertainment and Media (E&M) industry has outperformed the Indian economy and is one of the fastest growing sectors in India. In urban areas of India. The Indian rural market with its vast size of nearly three .

times of urban India. This policy is helping foreign journals save on the cost of distribution while servicing the Indian market audiences more effectively. The IEM has moved from the growth phase to the inflection phase. higher quality content. The change is already being witnessed from AM radio to FM radio. Liberalizing Foreign Investment: Today India has probably one of the most liberal investment regimes amongst the emerging economies with a conducive FDI environment. Printings of facsimile editions of foreign journals are now also allowed in India. higher penetration and suitable regulations. multiplexes. Many companies are taking initiatives to set up their business all over with the help of such technology. All these factors will favour the growth of Media and Entertainment industry in India. the use of Internet and personalized communication with the help of the same. Exciting new developments in the technologies used in Media and Entertainment industry are taking place. IP-TV. The E&M industry has significantly benefited from this liberal regime. . One such company is city based Net Hot Zone Media Pvt. gaming zones. Going forward.print media and radio. Limited which has come up with first of its kind concept of personalized communication with the customers providing them free internet service while offering part of screen space on computer to the advertisers by setting up the kiosks at various places in the city. mobile marketing. The FM radio sector too was opened for foreign investment with 20% FDI being allowed. FDI was permitted in two important sectors . new distribution channels. The Technological Influence: India is witnessing a revolution in this sector with the emergence of new technologies. In the print media segment. and basic cable analog to broadband internet. DTH. This growth is led by better technologies. and interactive television are going to hit the markets thereby changing the media scenario. Animations. single screen theatres to multiplexes. In 2005. Films. 100% FDI is now allowed for non-news publications and 26% FDI is allowed for news publications. also offers a huge opportunity that has remained largely untapped due to reasons of accessibility and affordability. television and other segments are already open to foreign investment. are redefining the media and entertainment industry.

is projected to grow at 13% (CAGR) from year 2006-2011. The industry is getting increasingly corporative. New distribution platforms like DTH and IPTV will only increase the subscriber base and push up subscription revenues. Film Entertainment The Indian film entertainment industry is projected to grow from the present size of Rs 9600 crores to Rs. Radio . This leads to the demand for more Indian content from India. film exhibition and marketing. the television industry will continue to contribute the largest share. there is more interest in India amongst the global investor community. Indian Media and Entertainment industry is poised to register a tremendous growth in the coming years. Print Media Industry The print media industry.Thus given the high rate of economic growth and technological developments. Subscription revenues are projected to be the key growth driver and will increase both from the number of pay TV homes as well as increased subscription rates. more people in rural and urban areas are reading newspapers and magazines today. 17500 crores. Also. growing need for content and government initiatives that have opened up the sector to foreign investment are driving growth in print media. A booming Indian economy. comprising of newspaper and magazine publishing. Advancements in technology are helping the Indian film industry in all the spheres-film production. Television Industry Amongst the segments of the industry. With the literate population on the rise.

New concepts like satellite radio. These factors along with privatization of a large number of frequencies as part of the FM II Radio Policy will drive growth. But in India in spite of OOH being very effective and very economical in comparison to newspapers and television it has not gained momentum as compared to other segments. The current live entertainment segment of the Media and Entertainment industry comprises a small number of large event management companies and a large number of smaller companies. visual radio and community radio have also begun to hit the market. is projected to grow with the highest CAGR till the year 2011. The number of corporate awards. television. the government opened up the sector to foreign investment along with migration to a revenue-share scheme. films. Out Of Home Globally. helping the sector grow at a fast rate. However. outdoor advertising is very popular as corporations abroad have recognized the outdoor media as a very popular medium of advertising. Live entertainment .is growing at a fast and steady rate. In 2005. Live entertainment Live entertainment is a huge source of revenue for the global Media and Entertainment industry. and sports events are increasing rapidly.The radio industry. . The total music industry is currently estimated to be worth around Rs 740 crore and is expected to grow at a CAGR of 4% in the next five years. OOH advertising is expected to be the fourth largest segment of IEM industry by the year 2011. Music While physical sales in the music industry continue to be hampered by piracy and falling prices. fuelled by the positive FM-II Radio Policy. digital music has witnessed a surge that will propel this industry in the next five years.sometimes also called event management.

5% of advertising at present. the animation and gaming industry is expected to show the maximum growth. The growth of online ad industry is estimated to shoot up to 43% by the year 2011. the country is not ranked amongst the top 10 countries in terms of average monthly hours online per unique visitor which may hamper the growth of internet advertising as compared to others media types. even though India is ranked eighth in the world in terms of number of internet users. it is expected to be 4% by the year 2010. Others Amongst the other segments. albeit from a small base. However. 2009 2011 1% 19% 1%2% 2%1% 1% 1% 2% 2% 2% 45% 17% 52% 29% 23% TV FILM ENT. MUSIC LIVE ENT. The following is the comparative chart of the different sectors’ percentage revenue in the Indian Entertainment and the Media industry in the year 2007 and that of expected in 2011. MUSIC LIVE ENT.Internet Internet advertising spending is set to grow several folds. Until such time. the projected yearly growth rate of the ad industry is to stabilize at 11%. PRINT RADIO OOH INTERNET . implying a 22% cumulative annual growth over the next five years. While internet advertising comprises nearly 0. The animation and gaming industry is projected to grow from the present size of Rs 11 b to Rs 29 b by 2011. especially in India’s entertainment sector. PRINT RADIO OOH INTERNET TV FILM ENT.

. Thus The Indian entertainment and media industry today has everything going for it .Thus. the digital lifestyle and spending habits of the consumers and the opportunities thrown open by the advancements in technology.be it regulations that allow foreign investment. the estimate says that TV sector will continue growing while the share of print and film entertainment will increase in absolute numbers but at a decreasing rate while the rest of the sectors will have more or less the same share. the impetus from the economy.

A once-flagging advertising industry is booming in India. But the boom in advertising has touched off a debate on whether the industry has developed too quickly without preparing consumers adequately.000 crores annually on advertising and promotional activities. The local firms are using all the available advertising tools from electronic to print. newspaper and magazine advertising and neon-lit billboards in the cities are fueling a revolution in consumer products and spawning new styles of living changing food habits. food. according to industry estimates. Over 80% of the business is from Mumbai and Delhi followed by Bangalore and Chennai from the rest of the other major cities in the country. and a middle class that's larger than the total population of the United States. video and radio jingles. This new advertising is pleasing the growing middle class. there's definitely money to be made. outdoor advertising and even models. Television. was less than Rs 400 crores about 2-3 years ago which means the growth has been a whopping 40%. movie. It has become fiercely competitive and one of the country's fastest-growing economic sectors. fashions and home décor. With a population of more than one billion. Local retailers in apparel. The advertising industry in India is growing at an average rate of 10-12% per annum. but it is drawing criticism from Indians concerned that it could sharpen social tensions in a country with so many poor people. This figure. one of the largest target populations in the world. The advertising and promotional spending by local brands is substantial during the festival season and almost 70% of the spending is done between Septembers to January. Coupled with many other local players big retailing brands are spending to the tune of Rs 12.Overview of Advertising Industry in India The structure of the advertising industry in Asia Pacific has been affected by globalization and Global companies are discovering the appeal of marketing their products in India. watches and jewelry have all increased their average ad spending by almost 50% in the past two years. .

And more people in rural and urban areas are reading newspapers and magazines today. up from 37 percent in 2008. the advertising industry recorded a cumulative growth of 20 percent on an overall basis. the reason of that could be the literacy levels rising to 551 million people in India. The advertising industry itself recorded a growth of 22 percent over the previous year contributing an estimated Rs 19.600 crore in 2009 as compared with Rs 16. Print media is also the favourite segment for global investors with maximum foreign investment in this segment.100 crore in 2008. The print media industry still has the potential to grow as 236 million literate people in India are still not tapped by any publication. the major chunk of which will be contributed by the print media of nearly 50%. Thus the present share of internet media in advertising is nearly 0. In the last four years. the advertisement industry in India is estimated to reach approximately Rs. 36371 crores by the year 2010. The following chart shows the figures of the ad spend from the year 2006-2009 and the estimated ad spend for the year 2010 against 2011. In spite of the increase in the global internet usage. On the basis of the estimation made by various agencies around the world. the total number of people using internet in our country is far less than other countries. The advertising industry contributed a share of 38 percent in the overall IE&M industry revenue of 2009. . The advertising industry is one the most important part of the entire Indian Entertainment and Media industry. the print media is the highest contributor to the advertisement revenue followed by television and outdoor advertising respectively.Advertising: As a part of Indian entertainment and media industry. At present.5-1% which is estimated to be 4% by the year 2011.

5% ad spend share by the year 2011. internet as a media and advertising is the fastest growing and is expected to have nearly 4. .YEAR 2008 2009 2010 2011 PRINT 5464 6323 6946 8591 TV 4872 5412 6200 6766 OOH 847 897 945 391 MEDIA RADIO INTERNET 220 58 317 106 133 155 215 215 CINEMA 139 145 131 194 TOTAL 11600 13200 14510 16372 Thus for that past 5 years. However with the emergence of various media like radio and internet which is gaining much attention these days are expected to rise at a very high rate taking up the share of print and TV. In spite of all these. print media has been the largest contributor to the ad industry followed by TV.

Ad market share percentage of various media year 2009 and 2011 .

• • • • • • The decline in share of print and TV is not only because of the upcoming media but also because the market itself is expanding. It has become extremely necessary for the advertisers to understand the needs of the customers on the individual basis.000 crore. For the past so many years. It is gaining momentum as a source of information and stream of revenue. New trends in ad industry Ad industry is one of the fastest growing sectors in the country. Increasingly.314 crore in revenues in 2008. The advertisers are now opting for personalized communication than mass communication. riding a 20 per cent growth rate Television advertising market is projected at Rs 8. it has become necessary for the advertisers to constantly find newer ideas to attract the attention of the consumers. other media are overtaking television and other traditional media because of a shift towards consumer's change in perception.454 crore.7 per cent of the total advertising budget in 2009.4 per cent.Advertising Market Stats/Projections: YEAR 2009 • The overall advertising and media industry is expected to close at Rs 21. Outdoor media industry will grow at 14 per cent to touch Rs 1. Radio is likely to record a 40 per cent growth in 2009 to touch Rs 672 crore Internet advertising will constitute only 1. All the recent developments have helped in opening new doors for the development in the industry. With the development of the economy the development in the industry has also gained momentum.674 crore in 2009 The print industry stands at nearly Rs 10.7 per cent of the overall advertising spends in 2009. up from the current 1. Thus. The cinema medium will corner around 0. . the ad industry had been concentrating on mass media. Thus the shift that is seen in the Indian ad industry is from mass advertising to class advertising.

The latest buzz in the industry is of online marketing. It is online advertising with a focus on social networking sites. mobile marketing is gaining attention of many advertisers. Among that email marketing tops since it is also a good option for personalized communication which is preferred by most of the advertisers nowadays. Mass media like newspapers. but it has shown a lot of promises as advertisers are able to take advantage of the demographic information the user has provided to the social networking site. One type of mobile ad is based on SMS (Short Message Service) text messages. magazines. This is a relatively immature market. Also. stuck in traffic. China. According to statistics. which stands second in the highest number of mobile users. sitting on the metro. but internet is completely different from them in many respects in terms of achieving the objective of an ad. right now. Indian advertising industry has been exporting senior-level talent to many countries. Another upcoming phenomenon is mobile marketing. South-East Asia. the UK and the US. With the increase in number of people having the cell phone especially India. • No other country has access to so many trained management graduates who can provide strategic inputs for brand and media planning. creative and media services personnel: Indeed. radio and television are no doubt hugely effective media for commercial advertisements. Scope of Advertising Industry in India The advertising industry in India has several competitive advantages: • India has a rich pool of strategic planning. particularly to the Gulf. . online ad spend by the year 2010 is expected to grow at the rate of 43%. Indian talent is recognized and respected in global agency networks. blogs is an emerging way of communicating to the people. Within online advertising there are many options available to the advertiser. A new form of advertising that is growing rapidly is Social network advertising. The benefit of SMS text messages is people can respond where they are.

we have access to this area of TV production. Most of the top 20 agencies in India have a global partner or owner.• Indians are multicultural: we learn at least two languages and that gives us a head start in understanding cultural diversity. Our production standards in TV and print have improved: With a vibrant animation software industry. India's advanced IT capabilities can be used to develop Web-based communication packages for glob al clients • • • • . which should provide an immediate link to global markets.

MASS V/S CLASS ADVERTISING .

Mass advertising that refers to the approach to advertising that attempts to reach every consumer. Mass marketing/advertising Mass advertising is one of the most widely used traditional methods in advertising. this group consists of such a wide variety of people. it is important to know what exactly mass refers to. television and newspapers as the medium used to reach this broad audience. Traditionally mass marketing has focused on radio. The trend of mass media has seen many ups and downs.MASS V/S CLASS ADVERTISING What is mass To understand what is mass marketing/advertising. their desires towards a certain product may be totally different from each other. Often competition to supply the mass market is fierce. By reaching the largest audience possible exposure to the product is maximized. because they are priced according to the number of consumers who will be reached. These trends are due to corresponding upswings in mass media. the parent of mass marketing. Yet. For most of the . mass is the group of consumers who occupy the overwhelming mass of a bell curve for common household products. From the viewpoint of marketing. they could be tagged as being "average". rather than targeting a particular market segment. In theory this would directly correlate with a larger number of sales or buy in to the product. but relatively easy to enter because of the large amount of consumer pool available.e. The idea is to broadcast a message that will reach the largest number of people possible. It is a type of marketing (or attempting to sell through persuasion) of a product to a wide audience. i. and must generate a larger return in order to justify the expense. Mass market advertising is usually more expensive than direct marketing.

or program names. right to information). creating awareness and knowledge (e. Raymond’s) or public service announcements (PSAs). mass distributing and mass promoting about the The mass media are capable of facilitating short-term.mass producing. Types of mass media      Television Radio Print OOH Internet Television is a powerful medium for appealing to mass audiences—it reaches people regardless of age.g. altering outdated or incorrect knowledge (AIDS campaign. Finally. television has become one of the most preferred choices to attract the masses. television offers sight and sound. intermediate-term.g. Evidence of achieving these three tiers of objectives is useful in evaluating the effectiveness of mass media. income. and enhancing audience recall of particular advertisements(e. and maintenance of behavior change. promotions(Dominos Pizza). and perceptions of social norms. Fevicol. or educational level. In addition. in addition to focused restructuring of perceived social norms. Lots of . major consumer-products companies held fast to mass marketing. Also the penetration and the reach of television has increased incredibly that it is beneficial for the companies to advertise on television to gain benefit over a long period of time in spite of it being expensive. Short-term objectives include exposing audiences to different concepts. Intermediate-term objectives include all of the above. Call it the power of television or power of sound and image together. and long-term effects on audiences. behaviours. and it makes dramatic and lifelike representations of people and products. as well as changes in attitudes. sex. long-term objectives incorporate all of the aforementioned tasks. Coke and Pepsi for clearing doubts in the pesticides case). Television ads have a different impact of it on the people’s mind is most remembered.twentieth century.

shampoos. and even gender permits more selectivity in reaching audience segments. However radio requires somewhat greater audience involvement than television. radio is able to convey messages in greater detail.. women. were culturally tailored. regional. radio is sometimes considered to be more efficient. taste. In Ahmedabad itself there are five radio stations and since placement and production costs are less for radio than for TV. re-read. The specialization of radio stations by listener age. automobiles. In addition. The extent to which persons read. Geography – specific). Radio Mirchi. Thus.g. Classifieds in that is the commonest form of advertisements. brochures. Radio also reaches mass and diverse audiences. magazines are also preferred by the advertisers especially the mass is divided. Thus. Other Print Media Pamphlets. etc. soaps. The main benefit for the same can be that it is the best means if the target is local. or employed readability and face validity techniques. Among other print media. and local. Print Newspapers are available in daily and weekly formats. Many radio stations have come up in the past 5 years and it’s still increasing. Radio. Radio City and many others have their stations in many other cities.g. creating the need for more mental imagery. My FM. and keep these devices—or circulate them to other readers—is not well evaluated. various ethnic groups. However the biggest disadvantage is that there are chances of it being overlooked. . Because of this. These print media were developed with the assistance of target audiences. radio can reinforce complementary messages portrayed in parallel fashion on TV. it can target mass audience on local level. National dailies in India have highest penetration amongst all media of advertising. there are numerous special audience newspapers (e. E. Red FM.ads targeting masses are seen more on television than any other media. their permanence is unknown. and posters constitute other print media used to disseminate health messages. and national publications exist. water purifiers. Thus. and few contained varied messages.

as well as the resources to purchase hardware and Internet subscription services. In addition. Toothpaste isn't made especially for one consumer and it is sold in huge quantities. placards inside and outside of commercial transportation modes. but the user has little control over quality and accuracy. these media may provide repeated exposure to messages. A company or individual who manufactures toothpaste wishes to get more people to buy their particular brand over another..Outdoor media. and skywriting. The goal is when a consumer has the option to select a tube of toothpaste that the consumer would remember the product which was marketed. Outdoor media include billboards and signs. signs in tow of airplanes). Internet The advent of the World Wide Web and the massive increase in Internet users offers enormous opportunities and challenges. Vodafone and Kingfisher all make extensive use of their logo-bearing blimps around sports stadiums especially any cricket match in India. Pro-health messages displayed on urban public transportation may suffer. Internet search engines can direct users to tens of thousands of web sites after the user's introduction of one or more keywords. flying billboards (e. What can be marketed on mass basis? A mass market strategy is effective for products that appeal to a broad cross-section of consumers and used to effect attitude change to as wide an audience as possible like aspirin or orange juice. Commercial advertisers such as Rado. It is possible to put virtually anything on-line and disseminate it to any location having Internet access. Internet access requires some technical skill. which are available in nearly all households. however. Rolex. The Internet places users in firmer autonomous control of which messages are accessed and when they are accessed. blimps. Also internet is such a medium which can be termed as a personalized media too. It is not appropriate for products with limited appeal like toothpaste. But unlike TV or radio. Mass .g. The most important benefit is that It can attract masses all over the world unlike TV and Radio. the effectiveness of such postings wears out quickly as audiences grow tired of their sameness. For persons who regularly pass by billboards or use public transportation. from the image problems that afflict urban buses and subways. Pepsi.

Dell. things which are perceived to be necessary/essential to the consumer are subject to mass marketing. However. . where a product is made especially for one person or a group of persons. residential communities. Typically. Other products of mass marketing are furniture. artwork. fizzy drinks and personal computers. Thus everywhere there is shift from mass advertising to class advertising. even in the products which were earlier thought of being marketed on the mass basis are nowadays marketed on the basis of customization. automobiles. Like furniture is now made as per the demand of the customer. Or the best example can be that of personal computer. an American company.marketing is the opposite of niche marketing. sells its computer as per the requirements of the customer.

SHIFT FROM MASS TO CLASS .

And discount retailers. One was to replicate the organization. building an operation to parallel that of an entrenched industry giant was not profitable or realistic. Mass Marketing Now and in the Future In spite of the shift to market segmentation. and distribution systems of the company that had created the mass market. most of them gravitated to the more attractive market-segmentation approach. such as Big-Bazaar. As a result. potato chips. market segmentation had surpassed mass marketing as the primary approach. in the US used market segmentation as early as the 1920s when it produced different models for different groups of customers to compete with Ford. mass marketing continues to be used in many situations and has potential for others. Potential competitors wanting a share of the large market had two options. for example. and pain relievers— lend themselves to mass marketing just as they always have. General Motors.SHIFT FROM MASS TO CLASS The Evolution from Mass Marketing The successes of mass marketers led to the appearance of an alternate approach to marketing. beginning in the 1990s. Utilities and credit cards offer special rates to entice potential high-volume customers. . television provided a powerful tool for both new and old companies to reach segmented markets. is presented as an alternative to smoking. businesses that use mass marketing for their goods and services continue to look for ways to enlarge their markets by designing different appeals for non-customers. At the same time. For nearly all of the challengers. By the late 90s. promotion. match their mix of mass-marketed products to local customer bases. The other was to go after a part of the market that had unique needs by developing products specifically for them. to crack into Coca-Cola's market share through changes in product and targeted promotion strategy in India making it a youth drink. Chewing gum. Products with broad appeal and few distinguishing characteristics— such as household cleaners. Pepsi made a series of attempts. Also that that time.

education. companies are more concentrating on offering customers a more personalized touch. change is the only thing that is permanent. even the changes are expected in terms of the ways of marketing and targeting the customers on personalized basis. In addition. work and social classes. the Internet provides a new medium for mass-marketing initiatives. For that new methods of marketing have been put into practice in this race of attracting customers. . Especially with the companies becoming global and audience becoming conscious of what they want. Old model is being replaced by new model of customerization. companies have started opting this class advertising approach to attract the targeted audience that’s fits into segment of probable buyers of the products or services offered by the advertisers. But as rightly said. Also segmentation on the basis of classes is one of the most emerging concepts. India being known for it’s extremities of people in terms of income. and newly opened international markets offer a possible arena for mass-marketing opportunities.Any current or future product that has m ass-marketable attributes will likely be marketed by some form of the approach.

Old modeltraditional Relationship with the customer Customer Needs Segmentation Passive participant Articulated Mass market and Target segments Pricing Fixed pricing & discounting New model-customerization Active co-producer Articulated and Unarticulated Customized segments Value based pricing model. customizes products. and marketing. Marketing and R&D drive new product advantage Product and offerings . Customer determined IMC & interactive Online distribution channels or third party logistics The customer’s name as brands Marketing finesse and “capturing” the customer as “partner” Customer interactions drive new product development. Communication Distribution Branding Basis of Advertising and PR Traditional retailing and direct marketing Traditional branding and co- branding competitive Marketing power service Line extensions modification.Given below is the difference showing the difference in old and new model. services.

CLASS ADVERTISING .

and a new Indian middle class has emerged. At the same time. adding a number of first-time consumers to the market. While .CLASS ADVERTISING Understanding the Indian Consumer India's economic growth has accelerated significantly over the last two decades. rural households will also benefit. As Indian incomes rise. But different customers have different needs. Thus marketing concept calls for understanding customers and satisfying their needs better than the competition. With rising incomes. Over the past decade. and it rarely is possible to satisfy all customers by treating them alike. Real average household disposable income has roughly doubled since late 80s. More than 291 million people will move from desperate poverty to a more sustainable life.” Even if they could. media outlets have proliferated and different concepts have emerged to woo the customers from customization to interactive media advertising. there is no longer a “one-product-fits-all” mentality that would appeal to consumers. While much of this new wealth and consumption will be created in urban areas. along with the spending power of its citizens. But the question is how can companies create awareness of their products? One thing is certain: Mass marketing no longer works. Marketers are faced with the challenge of getting their message heard by consumers who are hard to find and even harder to influence. household consumption has increased. The Need for Targeting Specific Class/ Group Two words sum up today’s consumer market: unlimited choice. companies have rushed to steal market share by creating an unending stream of new products to meet the desires of consumers. Marketers are no longer able to reach a “mass market. the shape of the country's income pyramid will also change dramatically.

Thus. But how to group people and on what basis is one of the most challenging question for the marketers. Earlier the basis for segmentation was on four major categories. was ratified by Market Research Society of India (MRSI). a common classification that is used by marketers to describe the Indian population is the Socio Economic Classification thus giving rise to an entirely new concept of CLASS MARKETING. marketers have found the need to concentrate on a specific group than mass. If firms ignored the differing customer needs. and mass communication. SEC is the classification of Indian consumers on the basis of two parameters: Occupation and Education of the chief wage earner (Head) of the households. is used by most media researchers and brand managers to . which mostly depends on the marketer to decide. The SEC classification. The first step in target marketing is to identify different market segments and their needs. created in 1988. Geographic Demographic Psychographic Behavioral However. The drawback of mass marketing is that customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all customers. another firm likely would enter the market with a product that serves a specific group. Target advertising on the other hand recognizes the diversity of customers and does not try to please all of them with the same offering. A common classification that is used by marketers to describe the Indian population is the Socio Economic Classification (SEC).Mass advertising refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers and economies of scale to be realized through mass production. and the incumbent firms would lose those customers. mass distribution.

. R4 (Calculated as a function of Educational Qualifications of the CWE* and the type of the household he stays in – Pucca.e.understand the Indian consuming class. R3. Semi Pucca or Kaccha) Table below shows the socioeconomic classification of urban Indian households. Income is not stable over time whereas SEC is. A2. 2. R2.. C. Income is often understated. The Urban Sector is divided into SEC A1. E1. 3. This classification is more stable than one based on income alone and being reflective of lifestyle is more relevant to the examination of consumption behavior which will be presented in brief in the next section. Income can discriminate between consumers and non-consumers for certain products. SEC is made to understand the purchase behavior and the consumption pattern of the households. i. D. The basic reasons for developing a SEC system were the following: 1. the cut-offs of high and low income will vary quite rapidly over time. E2 (Calculated as a function of Educational qualifications of the CWE* and his occupation) The Rural Sector is divided into SEC R1. B2. but not for others. B1.

OCCUPATION < 4 yrs in school E1 E2 D D

EDUCATION 5-9 yrs of school D E1 C D School certificate C D B2 C Some college C D B2 C Post grad uate B2 D A2 B2

Illiterate Skilled workers Unskilled workers Shop owner Petty trader Employer of > 10 persons < 10 persons None Others Clerk Supervisor Professional Senior executive Junior executive D D D B1 C E2 E2 D E2

Graduate B2 D A2 B2

B1 C D

B1 B2 C

A2 B2 B2

A2 B1 B1

A1 A2 A2

A1 A1 A1

A1 A1 A1

D D D B1 C

D C D B1 C

C C B2 B1 B2

B2 B2 B1 A2 B1

B1 B1 A2 A1 A2

B1 A2 A1 A1 A2

There are eight levels — from A1 to E2The level wise classification can be known from the following table:

LEVEL A1

OCCUPATION

EDUCATION

Employer of >10 Persons <10 Persons None Professional Senior Executive College/Graduate/Post Graduate Graduate/Post Graduate Graduate/Post Graduate Post Graduate Graduate/Post Graduate Graduate/Post Graduate

A2

Shop Owner Employer of >10 Persons <10 Persons None Supervisor Professional Senior Executive

5-9years of school/School Certificate Some College Some College Post Graduate Graduate Some College

Junior Executive
B1

Graduate/Post Graduate

Employer of >10 Persons <10 Persons none Clerk Supervisor Professional Senior Executive Junior Executive Skilled worker Shop Owner Petty Trader Employer of >10 Persons none Clerk Supervisor Professional Junior Executive

Illiterate/Less than 4 years in school School Certificate School Certificate Graduate/Post Graduate Graduate Some College Illiterate/Less than 4 years in school/ 5-9 years of school/School Certificates Some College Graduate/Post Graduate School Certificate/ Some college Graduate/Post Graduate Less than 4 years in school/ 5-9 years of school 5-9 years of school Some College Some College School Certificate School Certificate

B2

LEVEL

OCCUPATION

EDUCATION

C

Skilled Workers Shop Owners Petty Traders Employer of <10 Persons none Clerk Supervisor Junior Executive Skilled Workers Unskilled workers Shop Owners Petty Traders
Employer of

School Certificate/ Some college 5-9years of school School Certificate/ Some college Illiterate Less than 4 years in school school Certificate 5-9years of school/school Certificate Illiterate/Less than 4 years in school/ 5-9 years of school 5-9 years of school School Certificate/ Some college Illiterate/Less than 4 years in school Less than 4 years in school/ 5-9 years of school Illiterate Illiterate/Less than 4 years in school/ 5-9 years of school Illiterate/Less than 4 years in school Illiterate/Less than 4 years in school/ 5-9 years of school Less than 4 years in school 5-9 years of school Illiterate Illiterate/ Less than 4 years in school Illiterate

D

none Clerk Supervisor Professional Skilled Workers Unskilled workers Skilled Workers Unskilled workers Petty Traders

E1 E2

There are eight levels — from A1 to E2The level wise classification can be known from the following table:

.LEVEL A1 OCCUPATION EDUCATION Employer of >10 Persons <10 Persons None Professional Senior Executive College/Graduate/Post Graduate Graduate/Post Graduate Graduate/Post Graduate Post Graduate Graduate/Post Graduate Graduate/Post Graduate A2 Shop Owner Employer of >10 Persons <10 Persons None Supervisor Professional Senior Executive 5-9years of school/School Certificate Some College Some College Post Graduate Graduate Some College Junior Executive B1 Graduate/Post Graduate Employer of >10 Persons <10 Persons none Clerk Supervisor Professional Senior Executive Junior Executive Skilled worker Shop Owner Petty Trader Employer of >10 Persons none Clerk Supervisor Professional Junior Executive Illiterate/Less than 4 years in school School Certificate School Certificate Graduate/Post Graduate Graduate Some College Illiterate/Less than 4 years in school/ 5-9 years of school/School Certificates Some College Graduate/Post Graduate School Certificate/ Some college Graduate/Post Graduate Less than 4 years in school/ 5-9 years of school 5-9 years of school Some College Some College School Certificate School Certificate B2 Table below shows the socioeconomic classification of Rural Indian household.

Class 9/Up to class 4 Self-Learning Class 4.Class 9/Up to class 4 Self-Learning Illiterate Type of House Pucca Pucca Semi-pucca Kuchcha Semi-pucca/kuchcha Pucca/Semi-pucca Pucca Kuchcha Semi-pucca/kuchcha Pucca/Semi-pucca/Kuchcha R4 Urban & Rural Classification According to the Census of India 1991. the following criteria were adopted for treating a place as urban: .Education of chief wage earner Professional degree Graduation/ PG College SSC/HSC Class 4-Class 9 Up to class 4 Self-learning Illiterate Type of House SemiPucca pucca Kuchcha R1 R2 R3 R1 R2 R3 R1 R2 R3 R2 R3 R3 R3 R3 R4 R3 R3 R4 R3 R4 R4 R4 R4 R4 Level R1 R2 R3 Education Professional Degree/Graduation/PG/College SSC/HSC Professional Degree/Graduation/PG/College Professional Degree/Graduation/PG/College SSC/HSC Class 4.

All statutory towns. and .A density of population of at least 400 per sq km board 3.e.At least 75% of the male working population engaged in non-agricultural pursuits. 2. . All other places which satisfied the following criteria: . cantonment or notified town area committee. corporation. Apart from these. the outgrowths of cities and towns have also been treated as urban All areas not identified as Urban.1. are classified as Rural.A minimum population of 5000 . etc. i.. all places with a municipality.

SEC: A debate .

naturally he would not go for an English one. covering all urban and rural areas. marketers have always targeted customers on the basis of their income and predicted their requirements on the same basis.SEC: A debate Over the years. Also. branded clothes. Gujarati. Thus. create employment and improve lives has trickled down to the lowest socio-economic class. and would have surely bought if he belonged to higher class. Other examples could be expensive furniture. with the increase in the trend of being ‘IN’ thing not only are the people opting for those goods and services which was earlier meant to target other specific classes or on mass basis but also the spending is more dependent on the socio economic status than just income. demand for certain products like newspaper arises not out of income. Mobiles are the best examples. suiting and other lifestyle products and services which solely concentrated on the Elite class. an executive who is not so rich by income may have the needs for high-end products like luxurious car. only the richer section were targeted for cars till late 80s until the focus shifted towards the ‘new emerging – Middle class’ which gained maximum attention of the marketer then after. Created in 1988. Even a lower income person can afford the subscription of newspaper. awareness around the power of information technology to solve problems. The direct correlation between a higher SEC and education was a result of the belief that a better . Hindi or English. which nearly costs same. But a person who is not educated and whose requirement of profession does not allow him to buy an English newspaper. For example. consumers today do not hesitate to spend their income lavishly leaving only a mere amount to savings. Also almost everyone now spends not looking at their income but the status and to cope up with that. far-away traveling. The need arises from his status as an executive though he may not afford it. etc. Other argument is that. The gadget which was earlier a status symbol is now a requirement and is being used by everyone around the corner. SEC A1 to R4. However. the SEC divided Indian households on the basis of the chief wage earner’s education and occupation.

The second of the three reasons is also beyond dispute. The last has been proved by large-scale studies that compared household expenses with claimed income.educated person would have greater (organized) employment opportunities and thus higher income. However. and this proportion was not much lower among lower income respondents too. Take Sachin Tendulkar . but were the privilege of the very rich a decade ago. in spite of there being many arguments in favour of SEC. since lifestyle reflects the consumption patterns more closely than the income levels. the cut-offs of high and low income will vary quite rapidly over time. which compares the extent to which target audience definitions using surrogate variables SEC and monthly household income (MHI) match with the actual target audience as measured by very large-scale studies — specifically the Indian Readership Survey. annual incomes of 1 million-plus rupees are earned by thousands of families today. Not only common man but celebrities are under a questionable situation too. Income is often understated. Consumers are now breaking class barriers. The method used is that of a selectivity index. Over 80 percent of upper income respondents were found to have regular monthly expenses well in excess of their stated monthly household income (MHI). but not for others. 2.. 3. Salary levels in India have undergone a huge change in the 1990s. Income can discriminate between consumers and non-consumers for certain products.e. there are many questions that have been raised on it. The basic reasons for developing a SEC system were the following: 1. i. This classification is pertinent as compared to an income-level based classification. Now let us examine the first reason stated in the context of a few product categories. Income is not stable over time whereas SEC is.

Tendulkar. and life stages to make a compelling basis for defining consumer segments. cultural clusters. for instance. The company has gone with its own market definition for all of their retail formats. would fall into what most Indian marketers recognize as socio economic classification (SEC) B — a category that is distinctly middle-class. servants. India Two or the serving class and India Three or the deprived class. The uni-dimensional way of looking at demographics is a key limitation of SECs. The size-price equation doesn’t hold good here. The group has worked out a system where the entire set of Indian consumers is divided into three broad categories: India One or the consuming class. As a brand ambassador. People are using brands to express themselves more than ever before. The consumer is willing to pay more for a smaller but better designed product. That is the core target audience that he is trying to capture. Unilever devised its proprietary Living Standard Measurement (LSM) index as an alternative to SEC. Also on Biyani’s radar is a part of India Two. The first name is The Future Group. watchmen and small grocers.” says Future Chairman Kishore Biyani. Several layers of consumer segmentation need to be added on like psychographics. Biyani’s philosophy is simple. Later. who hasn’t completed his graduate studies. “We have been maintaining that the SEC classification is not a true representation of Indian consumers for three-four years now. and prospered nonetheless. which segments consumers into 18 LSM clusters on the basis of . the group that serves India One. ‘Swift’ competes outside its so-called category with bigger cars such as Esteem and Ikon. Also there are many big names have completely junked the SEC segmentation. and his million-dollar endorsement deals are a matter of widespread national interest.for an example. He owns a Ferrari. Today. But many brands that he has endorsed in his 18-year career were never meant to be used by him.. India One consists of the ‘consuming class’ that makes up 16-18% of the consumers but account for 95% of the buyers. in 2002.

even though many big companies going against SEC. media consumption. One of the key evolutions was the development of a socio-economic system of classifying consumers around a decade ago. data from large-scale studies show that further refinement is now called for. . this has become dated. One possible solution is to introduce further levels in the SEC system. In fact. They’re using the (SEC) classification data.25 parameters such as income. They use it along with additional data like ownership and consumption but there is no alternative to demographic data. But what is considered as the biggest drawback of this SEC is that. entertainment preferences et al. because it’s the only data that they have. as affluence rose in SEC A1 to an A1+. Yet. there are still many big marketers who think along those lines. a temporary solution was formed by splitting SEC A into two categories. market research in India has been evolving rapidly to tackle the increasing needs of marketers operating in a complex environment. However. The appropriate questions are now being put on to large-scale surveys. education. A1 and A2. it considers the occupation and education of CWE Chief Wage Earner which may not be always influential as far as purchase decisions are considered. which was formed with a threshold of Rs 10. Further refinement No matter what debate it takes. This is being done by combining SEC with household expenses to see if a combined system yields better results. durables ownership.000 as monthly income. While SEC is an improvement on income. it’s been a decade since any serious changes were made to classify consumers. This led to a further division. with nearly a decade since the idea of SEC A1+ was mooted. Owing to this.

SEC: Understanding Class .

The main reason for which are: • • • • • • • Growing Economy Consumption Boom Rising Income levels Rise in Working Population Increasing Nuclear Families Changing Food Behaviour Profusion of Brands The demographic representation of population according to SEC can be known from the following chart: Social Class A1 B2 C D E3 R1 R2 R3 R4 Group 14 (A-E) Group 25 (R1-R4) Source: IRS(2005) Total Value 21228 37351 46195 61573 64305 19671 56491 199061 243749 220652 578972 % 3 5 6 7 8 3 8 27 33 30 70 Male Value 11681 20237 24718 27589 33063 10180 29268 104834 122424 117288 266766 % 3 6 6 7 8 3 8 27 32 31 69 Female Value 9547 17114 21477 23984 31242 9491 27223 94167 121325 103364 252206 % 3 4 6 7 9 3 8 26 34 29 71 A = high/intermediate managers/well educated/ businessmen with large organizations B = intermediate managers/ good education/ businessmen/ self employed with small organizations C = petty traders/shop owners/clerks/salesman/ supervisors with some education D = poorly educated petty traders/shop owners/clerks/salesman E = skilled/unskilled workers R1 = well educated. living in not very good houses . living in good houses R2 = good education.Understanding Class: Demographics Indian Socio economic structure is constantly changing.

404 (1%). total urban 5 R1-R4. Female E1 = 11. Male B2 = 10.988 (3%).249 (3%).729 (5%). Total E1 = 24. Male E2 = 20. total rural URBAN As mentioned earlier.516 (3%).018 (1%). (All in ‘000) 3 Consists of the two Groups E1 and E2: Male E1 = 12.510 (3%).440 (2%).386(1%). living in temporary shelters 1 Consists of the two Groups A1 and A2: Male A1 = 4. Total B2 = 18.726 (6%). Urban population forms nearly 30% of total population. Female E2 = 19. the population stratification would be as follows: CHART: URBAN SEC POPULATION E 27% A 10% B 18% D 24% C 21% .663 (2%). Female A1 = 3. Total E2 = 40. urban population has eight levels of classes starting from A1 to E2. Total A2 = 13. (All in ‘000) 4 A-E. Female B2 = 8. living in huts and temporary shelters R4 = uneducated. (All in ‘000) 2 Consists of the two Groups B1 and B2: Male B1 = 9. Total A1 = 7. Female A2 = 6.452 (2%).R3 = some education. Total B1 = 18.662 (2%).824 (2%).911 (3%). Going on the lines of this fact. Female B1 = 8. Male A2 = 7.026 (3%).161 (2%).553 (5%).

then television ownership in a household generates a lower score on power / potential (1/70). Thus in place of income. Sections A & B refer to High-class. the score for any category is simply done. The raw scores aggregated across all items . Thus if 70% have a television. The bottom Section R4 constitutes 33% of total population of ending up being closer to the last section of urban classification E2.e.As per the above given data. to construct a simple aggregate index of how much purchasing power a household exhibits.constitutes over a quarter. RURAL Rural population forms 70% of the total population and SEC Rural has four levels on the basis of occupation and type of house ___ Pucca. Again. As per the above given data. eliminating all judgement. but if only 10% have an air conditioner. how the classes are termed as high income. Household Potential Index.. Semi-Pucca and Kaccha. packaged goods. HPI uses consumption / ownership of a whole host of durables. It is the reciprocal of the penetration of the category in the total universe. The answer is HPI i. we have a sort of "consumption" / "ownership" / "characteristics" based index which is a measure of purchasing power. The scores are then aggregated across all items and a HPI score arrived at for the household. then air conditioner ownership in a household gets a higher score (1 / 10). middle income and low income group since the classification does not involve income altogether. Section R1 is closer to B2 of urban population and forms 3% while Section R2 and R3 are closer to D and E1 of urban classification respectively forming 8% and 27%.households owning or using a low penetration item or having a less popular demographic characteristic (like high education levels) get a higher score for that. Now the question might arise. The concept underlying the index is simple . services and demographics.

we would say that there is one top band of purchasing power in India. Based on this HPI score. premium versions of it are treated differently . between them. without any cross checks).example. MRUC. The ABCR1 target group which would form the broadest possible target group for most consumer goods is about 35. a colour TV and a flat screen TV. which we believe would qualify for the 'middle class India" label. The R1 social class. the relative purchasing power of each SEC is as below Source: survey conducted by Hansa Research for the Media Research Users Council. closer to B2. harbouring 30 million households. For the first time. This eliminates the differences in how they think about income (since these types of income surveys measure respondent's perception of their own income. within a broad category. Urban A1A2. on a sensible common scale the rural SECs and the urban SECs have been compared. a black and white TV.4 million . Then there is the next band. comprising about a little over 6 million households. comprising B1R1B2C. therefore.included in this index are then normalized on a 1 to 1000 scale. the top end of rural is between B2 and C of urban. Further.

with nothing as an exception to the drawbacks is acceptable too to most of the marketers.households. . at the bottom of the pyramid! However the conclusion given here is on the overall basis. This target group grew 26. which is the purpose of any targeting by any marketer. However. where the categorization may differ for different products. The lowest income. there always exists a debate if this bifurcation really shows the true picture. Thus even in high income group. though they both are categorized as high income group. Then there is the lower middle. consider an example: A trader whose monthly household income (MHI) is more than that of a person in section A cannot be included in this SEC because his educational qualification or occupation does not qualify him for inclusion. after all. where we believe that most Bottom of the Pyramid activities should begin. SEC is an indicator or a pointer towards the “likely to consume” set but often defies the reality of not pointing clearly towards the “consuming class”. Because if a person belonging to Section A1 has high income then it may not be true for the person who belongs to section B2. The drawback of using Monthly Household Income (MHI) lies in the difficulty of capturing the correct dataThus. To understand. the income variation and status differs which marketers don’t notice before selecting media for advertising their product. comprising DE1R2 which is about 37 million households. are the E2R3R4. but account for an income share of 30%. Perhaps there is fortune. and 132 million individuals over the age of 12. These households form the bottom 60% of the population by income.9% between the years 2000 and 2005.

in spite of that. Apart from this. However. have slowly but surely grown in economic power and today contribute significant volumes to a number of product categories. Special focus on class media not only helps marketers to make a deep impact on the consumers mind but also to capture the ‘top of the mind’ state which has become very essential in this one of the fastest growing sector. The language and tone of voice used to communicate with this segment has a more familiar and comfortable ring to it. there have come up few media that have been successful in attracting ‘classes’ especially in television that attracts elite class like NDTV good times and Zoom. But it is now perhaps time to examine the relevance of mid and low socioeconomic classes ( SEC C. Both they and their advertising agencies have found these segments easier to understand and identify with. But then marketer has to understand that the reach of media in both urban and rural India is not the same. It has been believed that they are more easily targeted through the traditional mass media.Understanding Class: Media As discussed earlier. Whereas the magazines like Femina. Undoubtedly. She. Thus marketers have to advertise knowing what the best possible options for them are. Looking at the urban and rural reach. etc. D&E) who. a class is a good representation on collective basis. are of the commonest choice of magazines among higher middle class and higher classes. thought it is very difficult to judge every consumer’s needs. the focus is now shifting from mass to class concept. with an increase in awareness among the marketers. there are many media which though trying hard to focus on class have yet not been able to penetrate as an effective medium to attract the classes. there is also need of understanding consumers’ needs or requirements as well as the standard of living. over the last decade. Marketers in India have traditionally focused their attention and marketing effort on the higher socioeconomic classes (otherwise called SEC A&B). Urban reach . following conclusions have been made.

respectively. including Chandigarh. in the last decade has been an increase in the importance of television in the lives of the Indian consumer. television has the highest reach in all the states. The print medium has the second highest reach in urban areas. Television seems to have moved on from being entertainment to be indulged in on holidays to being part of the consumer’s daily routine. with 35 per cent penetration. Cinema reaches 10 and 3 per cent males and females and the Internet reaches 6 per cent and 2 per cent males and females. entertainer and influencer.Television has the highest reach in urban areas and reached more than 75 per cent of the urban population in 2007. The percentage of the population mentioned listened to the radio at least three days a week and went to the cinema at least once a month. respectively. TV . the penetration of all media remains less for females than for males in both urban and rural areas. On a weekday. Delhi and Goa. TV reaches 75 per cent of males and 74 per cent of females. In urban India. the real change is the increase in the frequency with which viewers watch television. the average viewer watches television for around two and quarter hours. Currently more than 70% of the adult (15+) urban population watches television all seven days a week vis-à-vis just 40% 10 years ago. However. Looking at state wise reach in urban areas. informer. Press permeates to 46 per cent males and 27 per cent females. The most significant change. Television could slowly replace social interaction in all its traditional roles of opinion maker. in media consumption. All three states reveal 87 per cent penetration. After print comes radio with 20 per cent reach and then comes cinema with close to 12 per cent penetration. Now only more than 70% of individuals belonging to the SEC D&E households and more than 80% individuals belonging to SEC C households watch television seven days a week in comparison to 90% individuals belonging to SEC A households. Radio has 24 per cent and 19 per cent reach for males and females. On the basis of sex. The percentage reach for the print medium denotes average issue readership.

Radio. Radio has the highest reach in Tamil Nadu – 40 per cent – and the lowest reach in Punjab – 9 per cent. Orissa.has the lowest reach in Bihar. it is the lowest in Bihar. and least effective in Madhya Pradesh. Cinema follows the same trend in rural India as in urban India and has the highest reach in Andhra Pradesh – 20 per cent. and the least used medium in Gujarat. Rural reach The penetration of all these media is relatively different in rural India. with 83 per cent penetration. The medium has the lowest reach in the states of Bihar. with 62 per cent reach. The Internet is most useful as a medium in Delhi and Goa. CLASS ADVERTISING . with 20 per cent reach. with only 1 per cent reach in each state. women Looking at the reach of the various media on the basis of sexual division. Radio reaches to the 18% of the rural population. Uttar Pradesh and West Bengal – 1 per cent penetration in each of these states. Television continues to be the medium with the highest reach. with 11 per cent penetration. TV’s penetration men State wise reach is highest for television in Goa. with only 49 per cent penetration. Haryana. Cinema is most successful in Andhra Pradesh. with only 4 per cent reach. and like 35 per in urban cent for India. Radio overtakes print in rural India and becomes the medium with the second highest reach. The penetration in rural of areas print is 39 is 15 per per cent cent. like in urban India. Print is most effective as a medium in Kerala again. with 12 per cent reach in each state. Chhattisgarh. has the maximum reach in Tamil Nadu (40 per cent) and the minimum reach in Andhra Pradesh (3 per cent). Gujarat. and least effective in Goa and Himachal Pradesh. for Cinema. but penetrates only 38 per cent of the huge rural population in the country.

one of the most important things to be taken into consideration is that what consumers prefer as far as media selection is concerned. though there might be many such products catering to all the classes the ratio is too low to compare its penetration against items that targets classes. And if the results show positive response the next question arises is what advertising media should you use to promote your business? Simple. Thus. Secondly. before the selection of any media to advertise. However. the wants are converted to demand for the product/service. understanding the product itself is an important thing. But with the advent of new media and global competition. people had not many options as far as media is concerned. there might rise questions like: What is consumer preference? . seldom he markets the one which is for all the classes. to what extent the consumer is ready to accept. not many are left behind in attracting people. and that comprehensively reaches the highest percentage of your target audience for the lowest cost. Media Preference Until last century. the main consideration is affordability of the consumer because only then. However. Use the one that is most influential and believable. So how can marketer decide whom to target? First. When a marketer markets a product.Understanding target and media selection Factors to be considered for targeting class customers and selecting media Identification of the target class is extremely essential before offering both a product /service as well as advertising and selecting media for the same. other than basic items like salt. Thus.

But when we talk about class advertising. following is the research conducted to know the class preference (restricted to Ahmedabad. no one can say anything for sure what a consumer prefers. class preference show an inclination towards certain media that might help an advertiser to choose the media for advertising in a better manner. For knowing the selection patterns existing among the people. Urban) . That is instead of individual choices. Preference for media is thus cannot so be so easily predicted.Why is it important for an advertiser to know the preference? Where should an advertiser advertise for the products or services? The answer is. it can be said that the overall preference for the people belonging to the same class remains same. It is an everlasting ongoing process of sticking to one media at some point and switching to other at the other point.

Research Methodology .

Unbiased and objective means that you have taken each step in an unbiased manner and drawn each conclusion to the best of your ability and without Introducing your own vested interest. Reliability refers to the quality of a measurement procedure that provides repeatability and accuracy. the degree to which these criteria are expected to be fulfilled varies from discipline to discipline and so the meaning of ‘research’ differs from one academic discipline to another. patient study and investigation in some field of knowledge. is designed to be unbiased and objective . to test and try. However. . Scientific methods consist of systematic observation. anew or over again search is a verb meaning to examine closely and carefully. 3. re is a prefix meaning again. Uses procedures. is being undertaken within a framework of a set of philosophies ( approaches). quantitative and the academic discipline in which you have been trained. The difference between research and non-research activity is. Research is a structured enquiry that utilizes acceptable scientific methodology to solve problems and create new knowledge that is generally applicable. undertaken to establish facts or principles. re and search. Validity means that correct procedures have been applied to find answers to a question. or to probe. 2.Research Methodology MEANING OF RESEARCH METHODOLOGY: When you say that you are undertaking a research study to find answers to a question. 1. We can identify these requirements by examining some definitions of research. Philosophies mean approaches e. The word research is composed of two syllables. you are implying that the process. qualitative. systematic. Together they form a noun describing a careful. in the way we find answers: the process must meet certain requirements to be called research.g. (Bias is a deliberate attempt to either conceal or highlight something). methods and techniques that have been tested for their validity and reliability. classification and interpretation of data. Adherence to the three criteria mentioned above enables the process to be called ‘research’.

To help advertisers choose the right medium to attract specific class customers based on the primary survey. rigorousness. data interpretation. OBJECTIVE: • To study and provide an insight into advertising with respect to the media preference based on Socio-Economic Classification. By providing strategic solution to tap the untapped potential markets • SCOPE: The project will cover an overview of Indian entertainment and media industry and detailed study about Indian advertising industry. Out of Home (OOH). Further data analysis and data presentation would be done in order to arrive at the common preference of SEC class for particular advertising media out of Print. The main area of focus will be on socio-economic classification (SEC) i. PROJECT DETAILS: AREA OF STUDY • • • • • • Indian Entertainment Industry: Origin and History Growth Drivers Indian Advertising Industry: Introduction Size of the industry Shift of focus from Mass to Class SEC: Demographic study . Urban and rural. strategy formulation for the advertisers to choose the right medium to attract specific class customers based on my primary survey. A primary survey will be done by collecting primary information thorough questionnaire. TV. • • To highlight the shift in focus from mass advertising to class advertising.Although we engage in such process in our daily life.to-day generalization and the conclusions usually recognized as scientific method lies in the degree of formality. verifiability and general validity of latter. evaluation. Radio. the difference between our casual day.e. To arrive at the commonest medium preferred by each SE class by application of research techniques like measurement and scaling. internet based on weighted average preference model. of the consumers.

Judgment sampling. Periodicals. Convenience sampling SAMPLE SIZE: 30 for each class (8 classes) = 240 DURATION: 1 MONTH LIMITATIONS: • Time limit • Cost constraint • Inability of covering all the aspects related to the Indian Media and Entertainment sector as well as advertising industry due to its wide scope. journals. etc.RESEARCH METHODOLOGY RESEARCH DESIGN: Exploratory Research RESEARCH DATA SOURCE: Primary Source: Questionnaires Secondary Source: Internet. RESEARCH INSTRUMENT: Questionnaire SAMPLE METHOD: Stratified Random Sampling. publication. magazines. Business Review. newspapers. • Data was not enough for research. .

Data Analysis & Interpretation .

.B2.TV EXPOSURE The results show that the classes B1. and D have the highest Tv exposure amongst all classes. C. The detaled exposure to various channels is given below.

.A2. For targeting the A1. and B1 classes advetisment on news channels would prove more effective as their exposure is high.NEWS EXPOSURE As the results show the classes A1. and B1 have the highest expoure to news channels.A2. The remaining classes have almost the same exposure to news channels.

.MUSIC CHANNEL EXPOSURE As the results show all the classes have high expoure to music channels. For targeting all the classes advetisment on music channels would prove more effective as their exposure is high. The classes A1 and A2 have less exposure to music compared to the rest.

A2. .A2.E1 and E2 have very low exposure. For targeting the A1. Also the classes C. and B1 classes advetisment on informative channels would prove more effective as their exposure is high. The remaining classes have almost the same exposure to informative channels.INFORMATIVE CHANNEL EXPOSURE As the results show the classes A1. and B1 have the highest expoure to informative channels.D.

MOVIE CHANNEL EXPOSURE As the results show the classes A1 and E1 have the highest expoure to movie channels. For targeting the A1 and E1 classes advetisment on movie channels would prove more effective as their exposure is high. The exposure for the remaining classes varies greatly. .

. For targeting the all the classes advetisment on news channels would prove more effective as their exposure to sops is high.SOPS EXPOSURE As the results show all the classes have very high expoure.

D. . For targeting the B2.C.E1 and E2 have the highest expoure to D.D. EXPOSURE As the results show the classes B2. channel. The exposure for the remaining classes is not applicable.D.C.D.D.E1 and E2 classes advetisment on sop would prove more effective as their exposure is high.

B1 and B2 have the highest expoure to news papers. For targeting the A1.B1 and B2 classes advetisment on news papers would prove more effective as their exposure is high. The remaining classes have almost the same exposure to news papers.A2.A2.NEWSPAPER EXPOSURE As the results show the classes A1. .

. The exposure for the remaining classes is not applicable. For targeting the A1 and A2 classes advetisment on english news papers would prove more effective as their exposure is high.ENGLISH As the results show the classes A1and A2 have the highest expoure to english news papers.

For targeting the all the classes advetisment on local language news papers would prove more effective as their exposure is high.LOCAL LANGUAGE As the results show all the classes have very high expoure. .

The exposure for the remaining classes C.ENGLISH + LOCAL LANGUAGE As the results show the classes A1.A2 and B1 classes advetisment on english and local language news papers would prove more effective as their exposure to is high.E1 and E2 is not applicable. .D. For targeting the A1.A2 and B1 have the highest expoure to both english and local language news papers.

A2.B1. For targeting the A1.B2 and C have the highest exposure to cinema.CINEMA EXPOSURE As the results show the classes A1.B1. The remaining classes have almost the same exposure and that is very less.A2.B2 and C classes advetisment on cinema would prove more effective as their exposure is high. .

D. The exposure for the remaining classes C.B1and B2 classes advetisment in magazines would prove more effective as their exposure is high.A2.B1and B2 have the highest expoure to magazines .A2.E1 and E2 is not applicable. .MAGAZINE EXPOSURE As the results show the classes A1. For targeting the A1.

D.E1 and E2 is not applicable. .INTERNET EXPOSURE As the results show the classes A1and A2 have the highest expoure to internet. The exposure for the remaining classes C. For targeting the A1and A2 classes advetisment in magazines would prove more effective as their exposure is high.

.OOH As the results show all the classes except B1 and B2 have very high expoure. For targeting the rest of the classes advetisment on OOH would prove more effective as their exposure is high.

E1 and E2 is very high.B2.D. The exposure for the remaining classes B1. .RADIO EXPOSURE As the results show the classes A1and A2 have the lowest expoure to radio.C.

Finding .

. All the classes have high expoure to music channels. The highest exposure of the public to the new channels. The classes A1 and A2 have less exposure to music compared to the rest. 4.Findings 1. 2. The highest expoure to news papers. Above study it is clean that the highest TV exposure amongst to the all Class. 3.

RECOMMENDATIONS .

RECOMMENDATIONS
Extensive research by companies, advertising agencies or market research firms can help understand the exact exposure relations of the various socio economic classes to the various media. Research can also be undertaken to understand the exposure level of various classes in the rural area to various media. Concrete findings can help companies in reducing advertising expenditure by concentrating on the right media to reach to target audience. Also, the companies media budget can be used wisely. Not necessarily does the company have to cut back on its advertising expenses.

CONCLUSION

CONCLUSION
The Indian Advertising Industry being one of the fastest growing area of not only the IE&M but also the Indian Economy, has a huge potential for further development. The experience of knowing the insights of the Indian Entertainment and Median Industry as well as the Indian Advertising Industry was enriching. It gave some of the true picture of the industry with which I was totally unaware of.

The understanding of the preferences of the various classes to different media and their exposure to it can help advertisers target the right audience using the right media. Thus targeting the right audience for the advertizing and choosing a specific media can help advertisers save a lot money in advertizing.

BIBILIOGRAPY .

Philip: Marketing Management.indiantelevision.iamai. R.com/mam/headlines/y2k2/apr/apr2.BIBILIOGRAPY Kotler. Rama: We Are Like That Only.: Research Methodology Bijapurkar.com/mgi/publications/india_consumer_market/images/India_In teractive1.htm .quirks. Understanding the Logic of WEBSITE:http://www.mckinsey.com http://www. Eleventh Edition. PHI Kothari C.com http://www.swf http://www.egyankosh.com http://www.

ANNEXURE .

(Please select only one option under each question) 1. 3) The information collected in the survey will be kept confidential and used only for the research purpose. How much radio do you listen to? ( ) ( ) 0-15mins ( ) 15-30mins ( ) ( ) 30-45mins 2-3hrs ( ) 3-5hrs 45-60mins ( ) 1-2hrs .B. Occupation: ( ) Skilled workers ( ) Petty trader ( ) Professional ( ) Unskilled workers ( ) Clerk ( ) Senior executive ( ) Shop owner ( ) Supervisor ( ) Junior executive ( ) Employer of < 10 persons ( ) Employer of > 10 persons ( ) Employer of None 2.: 1) Please tick (√) the boxes for your response and leave the others blank. Education: ( ) ( ) ( ) Illiterate School certificate Post graduate ( ) < 4 yrs in school ( ) Some college ( ) 5-9 yrs of school ( ) Graduate 3. 2) Please rank in the order of preference wherever mentioned.ANNEXURE Questionnaire QUESTIONNAIRE ON MEDIA PREFERENCE (SEC) N.

D. How much time do you spend on watching Informative channels (ex: discovery.4. How much time do you spend reading newspapers per day? ( ) 0-15mins ( ) 15-30mins ( ) 30-45mins ( ) 45-60mins ( ) 1-2hrs 11. How much time do you spend on watching Music channels per day? ( ) 0-15mins ( ) 15-30mins ( ) 30-45mins ( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs 7. (All doordarshan channels) per day? ( ) 0-15mins ( ) 15-30mins ( ) 30-45mins ( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs 10. How much time do you spend on watching news per day? ( ) 0-15mins ( ) 15-30mins ( ) 30-45mins ( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs 6. national geography) per day? ( ) 0-15mins ( ) 15-30mins ( ) 30-45mins ( ) 45-60mins ( ) 1-2hrs ( ) 2-3hrs ( ) 3-5hrs 8. How much time do you spend on watching Sops channels per day? ( ) ( ) 0-15mins ( ) 15-30mins 45-60mins ( ) 1-2hrs ( ) ( ) 30-45mins 2-3hrs ( ) 3-5hrs 9. How many movies do you watch in a month (in theatres)? . In which language do you read newspapers? ( ) English ( ) Local language ( ) Both 12. How much TV do you watch per day? ( ) ( ) 0-15mins ( ) 15-30mins ( ) ( ) 30-45mins 2-3hrs ( ) 3-5hrs 45-60mins ( ) 1-2hrs 5. Which type of newspapers do you read? ( ) General ( ) Business ( ) Both 13. How much time do you spend on watching D.

How much time do you spend on internet per week? ( ) 0-1hours ( ) 1-5hours ( ) 5-10hours ( ) 10-20hours ( ) 20-25hours 16. How many magazines do you read per day? ( )0 ( )1 ( )2 ( )3 ( )4 ( )5 15. How much do you travel per day? ( ) 0-5kms ( ) 5-10kms ( ) 10-15kms ( ) 15-20kms ( ) 20-50kms .( ) 0 ( ) 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5-10permonth 14.