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A STUDY ON COMPARE ADVERTISING EFFECTIVENESS OF T.

V V/S NEWSPAPER/MAGAZINES TWO WHEELER INDUSTRY

DISSERTATION SUBMITTED TO IIPM IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE MASTERS IN BUSINESS ADMINISTRATION

SUBMITTED BY

AMOL DHOPRE UNDER THE GUIDANCE OF

Prof .SRINIVASAN

INDIAN INSTITUTE OF PLANNING & MANAGEMENT


Next to Canara bank, 4th block, Koramangala, Bengaluru

(2010-2012)

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CERTIFICATE FROM GUIDE

This

is

to

certify

that

the

dissertation

titled

ADVERTISING

EFFECTIVENESS OF THE STUDY OF TV V/S NEWSPAPER IN TWO WHEELER INDUSTRY by AMOLDHOPRE is of original research work.

It does not form part of any previous dissertation thesis or reports submitted to this university or any other university.

Place: Bangalore Date:

Prof. SRINIVASAN

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DECLARATION
We hereby declare that the dissertation titled ADVERTISING EFFECTIVENESS OF TELEVISION VERSUS NEWSPAPER IN TWO WHEELER INDUSTRY

It does not form part of any previous dissertation thesis or reports submitted to this university or any other university.

Place: Bengaluru Date:

AMOL DHOPRE

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ACKNOWLEDGEMENT
This is to place on record our heartfelt gratitude and thanks to the following people for their help and guidance during the course of our project.

First of all We would like to thank the almighty God for his grace. Secondly our family for their encouragement and support during the course of our project.

We express Our intense gratitude to Prof. JAYACHANDRAN, Dean IIPM , Bangalore

We are greatly indebted to Prof. SRINIVASAN, our guide for his kind support and guidance, which helped us to successfully complete the project.

Place: Bangalore Date:

AMOL DHOPRE

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Contains
Introduction EFFECTIVENESS OF ADVERTISING THROUGH NEWSPAPER Television Advertising ADVANTAGES OF TV ADVERTISEMENTS DISADVANTAGES OF TV ADVERTISEMENTS ADVANTAGES AND DISADVANTAGES OF NEWSPAPER ADVERTISEMENTS TWO WHEELER INDUSTRY Pull and push strategy of Advertisement Effectiveness in Print media Advertisement of 2 wheeler Data Analysis Conclusion Questionnaire

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Introduction:
ADVERTISING Advertising is the promotion of a companys products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows: Increasing the sales of the product/service Creating and maintaining a brand identity or brand image. Communicating a change in the existing product line. Introduction of a new product or service. Increasing the buzz-value of the brand or the company.

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

Print Advertising Newspapers, Magazines, Brochures, Fliers The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Often the newspapers and the magazines sell the advertising space according to the area occupied by the advertisement, the position of the advertisement (front page/middle page), as well as the readership of the publications. For instance an advertisement in a relatively new and less popular newspaper would cost far less than placing an advertisement in a popular newspaper with a high readership. The price of print ads also depend on the supplement in which they appear, for example an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre quality paper. Outdoor Advertising Billboards, Kiosks, Tradeshows and Events Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. The billboard advertising is very popular 6|Page

however has to be really terse and catchy in order to grab the attention of the passersby. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the companys products. Organizing several events or sponsoring those makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products. Broadcast advertising Television, Radio and the Internet Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers. The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the popular radio jingles. Covert Advertising Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is subtly (or sometimes evidently) showcased in the entertainment show. Some of the famous examples for this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom Cruises phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded. Surrogate Advertising Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising. Public Service Advertising Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important 7|Page

matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on. David Oglivy who is considered to be one of the pioneers of advertising and marketing concepts had reportedly encouraged the use of advertising field for a social cause. Oglivy once said, "Advertising justifies its existence when used in the public interest - it is much too powerful a tool to use solely for commercial purposes.". Today public service advertising has been increasingly used in a non-commercial fashion in several countries across the world in order to promote various social causes. In USA, the radio and television stations are granted on the basis of a fixed amount of Public service advertisements aired by the channel. Celebrity Advertising Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements. Banner Advertising is a major component of web-business creation. It is also a very good method for creating revenue via your website. Banner ads, simply put, are just HTML codes in a specific size and shape (differing from advertiser to advertiser) that present a small snippet of your product or service on a specific host site. Banner advertising has gained popularity at an increasing rate over the past few years due to the increasing popularity of Internet as well as the fact that it has more audience and the ability to direct a prospective client to their website with just a click. In the advertising industry, billboard advertising is one of the most effective solutions to spread the message regarding products and services. One can put his message in short and catchy form on billboards to advertise his products and services. For growing your business, nothing is better than billboard advertising. Newspaper and Magazine Vs. Television Advertising Newspaper and Magazine This group consists primarily of newspapers, magazines and yellow pages, among others. With newspapers, an advertisement can reach many people within a particular area, which is preferable since the message can be read many times over. However, the advertising space is expensive and ads compete with several others on the same paper. Magazines can be used to target specific audiences, have better print quality and often feature color. However, they tend to be fairly expensive and they are produced weekly or monthly rather than daily. Also the advert space is higher in cost compared to that of newspapers. 8|Page

Yellow pages are widely used to look up telephone numbers and thus the ads therein are generally cheaper. The ads are easily coupled to telephone numbers and locations and hence responses can be easily rated. However, the ads are not as colorful and they tend to be cramped into the small spaces. TV Advertising This is a powerful tool that has the ability to reach a mass audience at a national level. The ability to combine visual and audio communication makes it a very attractive advertising medium. Reaching people in a short amount of time is both an advantage and disadvantage. Whoever misses an ad, misses it completely and vice versa. The temporary nature of advertising on television requires the advertisement to be aired several time, although the high cost may be prohibitive. The high costs accrue from the creativity involved, production costs and the amount of airtime. Many television viewers tend to change channels when ads are being aired. Ads on television are often considered a nuisance, and so creativity has to be at its peak for ads to work on TV.

EFFECTIVENESS OF ADVERTISING THROUGH NEWSPAPER: Advertising Effectiveness of Newspaper Sections We had pointed out that a newspaper contains multiple sections which are read by different types of people. Thus, the newspaper audience is not a homogeneous entity; rather, different people come to a newspaper for different purposes. If newspaper readership is a purposeful activity, one may infer that purposive advertisements will be effective when they are matched with reader interests. Indeed, when one opens up newspapers, it is clear that the advertisements are often matched to the editorial content. We can rattle off numerous examples --- the movie section contains movie ads, the travel section contains travel ads, etc. In this article, we will give a few examples from which we can infer advertising effectiveness. We will cite some data from the 2011 TGI Puerto Rico study. This is a survey of 2,296 persons age 12 to 64 years old who were interviewed in Puerto Rico during the year 2011. Our first example refers to the readership of the movie section of the newspapers. Overall, 30.1% of the survey respondents indicated that they read the movie section 'frequently.' In the chart below, we show the incidences of readership according to their frequency of movie attendance. As the frequency increases, the likelihood of reading also increases. This empirical observation does not imply any causal relationship. That is to say, we cannot say that reading about movies makes people go to those movies, although it might. Nor can we say that 9|Page

going to movies causes people to read the movie section in newspapers, although it might. But for a movie distributor, the movie section obviously has highly involved readers who go to movies often and account for a disproportionately large number of movie ticket sales.

(Source: 2011 TGI Puerto Rico) Our next example refers to the readership of the broadcast/cable television section in newspapers. Overall, 19.1% of the survey respondents indicated that they read the television section 'frequently.' In the chart below, we show the incidences of readership according to the average number of hours that they spend watching television per day. As the number of hours increased, the likelihood of reading also increases. Again, this empirical observation does not imply any causal relationships. That is to say, we cannot say that reading the television guide makes people watch television, although it might. Nor can we say that watching television causes people to read the television guide, although it might. But for a television programmer, the television guide obviously has highly involved readers who watch a lot of television and account for a disproportionately large share of the overall audience.

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(Source: 2011 TGI Puerto Rico) Our last example refers to the readership of the arts & leisure section that covers music recordings and concerts. Overall, 31.3% of the survey respondents indicated that they read this section 'frequently.' Among those who have attended one or more music concert within the past 3 months, the incidences rises up to 53.8%. For a concert organizer, the arts & leisure section obviously has highly involved readers who account for a disproportionately large share of concert attendance. In reality, these newspaper sections are quite complicated environments. On one side, the newspaper produces its own independent editorial material, such as reviews. Such materials may not necessarily be favorable to the advertisers, as in bad reviews. On the other side, there are advertisers which provide the details necessary to close the deal, such as the locations and show times. In between, there are even advertorials, or advertisements disguised as editorial material. TV, radio and newspaper are still considered the major media for effective marketing off-line. However, a lot has changed with these top three marketing vehicles in the past 15 years. In this article some critical changes are revealed that have occurred and how you can get the maximum impact for your advertising dollar. 11 | P a g e

Television is primarily an entertainment medium. Research shows the average person spends more time with television than with radio and newspaper combined. For many years, TV was considered the most powerful advertising choice because of the huge audience it provided. Even today, nearly everyone watches some TV every day. There are three things you must consider before spending money on TV advertising limited lifespan of your ad, audience fragmentation, and ad avoidance. Keep in mind that once your ad has aired, it is gone for good. There is no way your potential customer can refer back to it. This fact makes it imperative that you run your ad many times to embed your message in the mind of the viewer. Frequency is important with any advertising, but especially broadcast. Audience fragmentation is one of the major problems local broadcast television faces today. At one time, a huge TV audience was split over only a few local channels. Community businesses could reach a large majority of their potential customers very quickly. Large national companies, such as Coke, only had to choose from the three major networks - ABC, CBS or NBC - to reach over 80% of the population. Today, with cable and satellite TV, this same audience is now fragmented over 200 or more channels. The percentage of viewers on local TV has dropped dramatically. Yes you can run ads on cable and they will spread them out over ten or more channels. This shotgun advertising has not worked well for small businesses because many of these stations have only a half percent or less of the total viewers. And, what are the odds that they will be watching during the 15 or 30 seconds that your ad is presented? Ad avoidance is also a very rapidly growing problem for TV today. Because the public watches TV primarily for entertainment, they see advertising as an unwelcome interruption - not unlike the hated telemarketing. This was true 30 years ago but there was nothing a person could do about it except channel surf or leave the room. As you know this was, and still is, often done. Today, with TIVO, pay-per-view, public broadcast stations, and the multitude of satellite and cable channels, the public has shown a willingness to pay for reduced interruption from advertising. Radio has similar problems. It is also primarily an entertainment medium. As such, advertising is also considered an interruption. Satellite radio is one of the fastest growing industries today primarily because people, again, are willing to pay to avoid commercials. In fact, most new cars have satellite radio built in. Additionally, radio has evolved into an entertainment source for primarily driving, and background noise at work. If you buy any radio advertising, it should only be aired during drive time. 12 | P a g e

At home, radio use drops off. People can play CD's or listen to satellite radio. This way they can choose exactly the music or programming they prefer without commercial interruption. The radio industry understands that folks do not want to be interrupted with advertising. Many times radio stations promote themselves by offering "more music, less commercials". Newspaperes have had their ups and downs, but have steadily maintained their local readership base and strength for local marketing. Even when radio, then TV, came on the scene, people still were loyal in reading their local newspaper. Unlike TV and radio, advertising in a newspaper is not viewed as an interruption. In fact, one of the reasons people buy newspapers is for the advertisement content. Surveys have shown among 15% and 23% of those buying a newspaper do so primarily for the advertising. You see, people do want to see and read advertisements. They do want to - and need to - buy products and services. They just want the ads on their terms. TV's best day of the year is Superbowl Sunday, delivering nearly 40% of U.S. households. In striking contrast, newspapers consistently deliver well over 50% of your community households. They do it every day, 365 days a year. Now that is some serious marketing power. Another advantage over broadcast that only newspapers can deliver is engagement of the consumer at the moment they are making a buying decision. When a person is reading your ad, it is because they choose to. At that time you have their full and focused attention. And the working life of your newspaper ad is enormous because it is physical and static. Your potential customer can refer back to it anytime they wish, or even cut it out. You may have heard on TV or radio that newspaper subscriptions and readership are dropping. This is true. But it is not to the degree they would like you to believe. What they do not tell you is newspaper on line versions are growing much faster than the 7% or so losses in subscriptions. In fact, you will find newspaper web sites are usually the busiest web sites in any community. Be sure you take advantage of this. Now you can see why today's trend among business people who are in-the-know is away from broadcast and back into the old, reliable newspaper. Most all the major stores are getting back to the basics and finding the print advertising to be the best return on investment. So will you. Newspapers, of course, should not be your only advertising medium, but it is the solid foundation on which you build an effective marketing plan in today's environment.

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Television Advertising Advertising on television usually means running a TV commercial, typically between 15 and 60 seconds in length, but TV advertising can also include sponsorships and product placement within television shows. Television Advertising's Effectiveness Though user habits are rapidly changing, television advertising has long been considered the most effective mass-market advertising format. The introduction of digital video recorders such as TiVo, which allows viewers to skip advertisements, as well as the popularity of commercial-free cable channels, have begun to diminish the reach and effectiveness of TV advertising. Television advertising's crowning moment is the Super Bowl, where companies debut their very best television commercials, effectively putting them in competition with all of the other television commercials. With the cost of a single 30-second TV spot during the Super Bowl running into the millions, most companies opt instead for running their TV advertising in time slots that best match their advertising budget. Television Advertising Costs The cost of advertising on television is twofold: first, the cost of producing the commercial, then, the cost of airing it. The average cost of producing a national, 30second TV commercial is well over $300,000 but commercials designed to air in local markets can be produced for much less. Most advertising agencies are experienced with producing TV commercials based on a wide variety of budgets and can help you design and produce a commercial that will satisfy your needs and your budget. Television advertising rates vary greatly based on the market they run in and the time the spots are aired. Small- to medium-sized businesses will find that local advertising fits better with their budgets and marketing goals. A 30-second time slot in a medium-sized market can be purchased for as little as $5 per 1,000 viewers, meaning that you could pay less than $100 per commercial slot. Cheaper rates will also be available for off-hour programming. Television Commercial Alternatives There are alternatives for television marketing that don't include TV commercials. Your product or business can now appear, for a fee, within a television show, via product placements and sponsorships. More opportunities to advertise as part of a television show are developing every day. There are also opportunities to air commercials on the Internet as banners or streaming media. If these kinds of opportunities are of interest to you, be sure to make it part of your initial evaluation conversation when you contact an agency through All Advertising Agencies.

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The Advantages of TV Advertising vs. Newspaper and Magazine Advertising Whether promoting products or pitching services, every business needs to advertise in order to establish connections with new, paying customers. Small businesses often face a choice between spending their limited advertising budgets on print ads or television ads. While print advertising often comes with a lower sticker price than TV advertising, newspaper and magazine circulation continue to decline. TV watching remains strong and TV advertising offers some distinct advantages over print ads. Virtually every home in America has a TV and, unlike print publications, viewers can watch network and local television for free. Even advertising only with local affiliate stations, a small business reaches thousands or even millions of potential customers every time the advertisement plays. Print advertising reaches only those consumers who buy the newspaper or magazine, which often excludes consumers seeking to limit household costs. The total print run of a publication also physically limits the appearances of an advertisement to the number of newspapers or magazines produced. Television advertising also allows the business to appeal to a wide cross-section of the population. TV watchers include members from every demographic category, due to the widespread use of the technology itself. Print publications tend to attract a following among a specific subset of the population, such as political liberals or sports enthusiasts. That specific following can provide benefits of its own, but it also means print advertisements do not find potential customers outside of the demographic that follows the publication. Television engages sight and sound while displaying motion. The connection of information with multiple senses aids in both learning and recall. Teachers often use audio/visual aids in the classroom to reinforce new information. Television advertising capitalizes on the audio/visual learning strategy by tying product or service information to interesting audio/visual information. Print advertising must restrict itself to static visual input, such as text or a single image, which limits the reinforcement potential. Commercials deliver advertising messaged quickly. On average, a television commercial spot runs 30 seconds, though 15-second and 60-second ads also receive occasional airing. In the space of 30 seconds, an effective television spot delivers a brand image, informational content, emotional content and action content. A restaurant, for example, may achieve showcase all of these by showing a logo, announcing a new menu item, showing smiling families at tables and then showing the families heartily eating the food. Most print advertisements cannot achieve all four of those elements in less than 30 seconds, as it requires more text to convey informational and emotional content than with an audio/visual medium. Experts say the greater the exposure of the advertisement, the longer is the period of its impact among the readers. Therefore if an advertisement stays in the memory of a 15 | P a g e

consumer for a longer time, chances are quite probable that he might opt for purchasing or availing your services as and when required. This counts for higher sales and brand awareness. A newspaper reader is so involved in his reading that sometimes the content in the advertisements creates an emotional impact on hm. It is this power of being able to evoke an emotional response with the reader that goes in favour of newspaper advertising. In other media, especially online media, people get perturbed by the distractions in the form of pop-ups and other advertisement forms that keep flashing on and off the screen. In fact instead of having any favourable impact, these ads serve to distract the readers. It has been proved time and again that that the level of trust and confidence associated with the newspapers are much more than any other media. Basing their strategies on the same principal, Webwindows provide integrated and the most effective ad composition and placement strategies that assists businesses to develop a positive relationship with the readers. ADVANTAGES OF TV ADVERTISEMENTS: Reach Larger Audience than Newspaper Newspaper can only accommodate pictures and words.TV reaches much larger audience than newspaper can do and it can do this work within a very short span of time.Another thing that you should keep in mind is that people usually look only for the news and they overlook the ad in newspapers.However if you run your ad in the middle of the favorite TV commercials of the consumers they will surely watch the ad. TV Ads have Visual Appeal You can also go for radio ads, but again radio only captures sound.TV is the only medium that uses words, sounds, picture (both still and movie) and also music to motivate the consumers emotionally. With so many options it successfully captures the viewer's complete attention. You can Take Your Audience Anywhere TV ads are so popular because with a camera you can take your audience almost anywhere you wish. You can show them anything. Not only the end result but also your factory, the procedure of making the product, the packaging and so on. It appeals to the viewer's sight and hearing at the same time. With the application of

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color it turns the world of advertisement into a real world and it easily makes people believe in it. TV Ads can Emotionally Motivate the Consumers Television can show many people about your product or service at a time. Every time the consumers see the benefit of using your product or service they will get inspired to buy it. It will remind them of their desire to possess what you offer. It can instantly give your product or service the prominence it needs. Reach Targeted Audience TV ads can reach the target audience most easily. You can reach the housewives between the best commercials or soaps. You can make funny ads for children and reach them during they watch their favorite cartoon programs. You can reach the elderly people during some religious programming and the office goers during news. DISADVANTAGES OF TV ADVERTISEMENTS: Expense Producing a television commercial and purchasing airtime is costly--it is the most expensive form of advertising there is. TV commercial production is often a complicated process which can involve a lot of manpower, time and equipment. Some ads are simple--for example, just graphics and a voiceover. Other ads involve renting a studio and equipment, hiring a director, writers, actors, light and camera operators and editors. Who you hire to produce your ad will also affect the overall cost. For a less expensive, albeit lower quality ad, use your local cable station, which often has the capability to produce ads. If you have more to spend and want a higher quality ad, hire a professional production company. And assuming you're not an advertising professional, it's wise to hire an advertising agency to help you come up with a campaign, which will add further expense. Changes Because of the complex process of making TV commercials, it can be difficult to make changes once the ad is complete. If a sale price or special offer needs changing, it could take days or weeks to make the adjustment at additional cost. Meantime, you may be unable to run your ad if the information is no longer correct. This will cost you valuable time during which you're not reaching your audience, unfortunate especially if you're advertising an event or limited time offer. In comparison, a newspaper or radio ad can be changed almost overnight and will likely cost little or nothing to change. Ad campaign

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Creating an effective advertising campaign is not an easy task. You want your ad to be memorable, informative and entertaining enough to keep the viewer's attention. If you don't have prior experience writing ads, you should hire an advertising agency. You can present them with the information you want to use in the ad, as well as any creative ideas you may have. Hitting the Target Finding the right viewers is critical to the ad's success. If you're selling women's shoes, then buying ad time during Monday Night Football is unwise, as most of the viewing audience is male. Run your ad instead during shows mostly viewed by women. Your advertising agency or a TV station's advertising department can help you decide when and on what channels you should advertise. They have access to Nielsen ratings, which are compiled from surveys that ask TV viewers what they watch. These ratings also provide viewer demographics--information such as gender, age and economic class. Avoiding commercials For viewers, television advertising can be an annoyance. Many people use commercial breaks to go to the bathroom, get a snack or flip channels. Add to that all the other entertainment options they have such as video-on-demand, radio, the Internet, Mp3 players and video games--opportunities abound to miss the ad altogether. All you can do as an advertiser is create the best ad you can, repeat it often and hope viewers watch it and patronize your business.

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ADVANTAGES AND DISADVANTAGES OF NEWSPAPER ADVERTISEMENTS: Advantages


Pay only for results (clicks) Ability to select where your ads will be shown, giving a better chance to reach target audiences Can generate immediate visibility, as ads go live immediately Ads can be easily modified, adjusted even deleted instantaneously depending on the results Allows for quick, easy tracking of the effectiveness of the campaign allowing you to better analyze the return on your investments (ROI)

Disadvantages

Broad match, the default option where the ad is shown and automatically matched against a broad array of related queries, can result in ads that are irrelevant to the intended search. Bid price inflation as more advertisers compete for the keywords and bid the prices up for the terms Bidding war could also result where competitors can bid a higher amount than your bid, lowering the position of the ad and decreasing its visibility Click through fraud where users maliciously click on the adverts, from disgruntled competitors to website owners who earns from ads shown on their pages Requires constant monitoring; otherwise, outsource to a PPC management company which in turn will increase the cost of your advertising campaign.

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TWO WHEELER INDUSTRY: TWO-WHEELER INDUSTRY IN INDIA Report Transcript INTRODUCTION TWO-WHEELER INDUSTRY IN INDIA: - India is the second largest manufacturer and producer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. Under the regulated regime, foreign companies were not allowed to operate in India. The motorcycles segment was no different, with only three manufacturers via Enfield, Ideal Jawa and Escorts. The two-wheeler market was opened to foreign competition in the mid-80s. And the then market leaders - Escorts and Enfield were caught unaware by the onslaught of the 100cc bikes of the four IndoJapanese joint ventures The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990. In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. The total number of registered two-wheelers and three-wheelers on road in India, as on March 31, 1998 was 27.9mn and 1.7mn respectively. The twowheeler population has almost doubled in 1996 from a base of 12.6mn in 1990. The last few years have seen a fundamental shift in preference from scooters and mopeds towards motorcycles. Motorcycle sales have grown at a CAGR of 27% for the last 6 years Vs Two Wheelers, which have grown at a CAGR of 11% over the same period. In 02-03, motorcycle sales have grown at 30% vs. 17% for twowheelers. The faster growth rate of motorcycles has seen its share doubling from 38% in 97-98 to 76% in 02-03. Henceforth we do not expect motorcycles to grow at a rapid rate. However the growth rate for motorcycles in 03-04 is expected to be 20 | P a g e

faster than overall 2-wheeler growth and we expect it to be around 12-15%. The chart shows the sale of motorcycle grow very fast with comparison to scooters and mopeds. Motorcycle share in two wheeler industries: - The chart shows that the share of motorcycle in two wheeler industries is increasing with very fast speed. In 1999 the share of scooter was more but from the mid of 1999 2000 the whole scenario is changed.

pull and push strategy of Advertisement


Push strategy Another meaning of the push strategy in marketing can be found in the communication between seller and buyer. In dependence of the used medium, the communication can be either interactive or non-interactive. For example, if the seller makes his promotion by television or radio, it's not possible for the buyer to interact with. On the other hand, if the communication is made by phone or internet, the buyer has possibilities to interact with the seller. In the first case information is just "pushed" toward the buyer, while in the second case it is possible for the buyer to demand the needed information according to his requirements. Pull strategy In a "pull" system the consumer requests the product and "pulls" it through the delivery channel. An example of this is the car manufacturing company Ford Australia. Ford Australia only produces cars when they have been ordered by the customers. Applied to that portion of the supply chain where demand uncertainty is high Production and distribution are demand driven No inventory, response to specific orders Point of sale (POS) data comes in handy when shared with supply chain partners Decrease in lead time Difficult to implement

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Effectiveness in Print media Advertisement of 2 wheeler Two Wheelers for the past few years have been amongst the top categories on Print. It is the Top category on Print so far, this year too. Two Wheelers have contributed a healthy 6% to print advertising in the two quarters that have passed. On further segment-wise analysis on this industry we found that Motorcycles have been the force that has been 'driving' Two Wheeler advertising. The following graph shows that a staggering 80 % of advertising revenue from Two Wheelers is generated from Motorcycle advertisers.

The initiation of economic reforms in the early eighties saw many new entries in the motorcycle segment after which they have simply refused to look back. Attributes like increased mileage and constant improvement in product design have resulted in increased usage of motorcycles. This has naturally hit the Scooters segment, which has contributed a negligible 0.5 % to Two Wheeler advertising so far this year. The late nineties saw the emergence of a new segment 'Scooter'- a hybrid between a scooter and a moped. Their easy-to-drive nature has made Scooter a rage amongst the younger generations & Women. Though way behind Motorcycles, Scooter come second, contributing a respectable 12% to Two Wheeler advertising. The number of new launches in this category also has been growing since 1995. 2011 saw 33 new brands being launched. The figure has already touched 15 in 2011, indicating this might again be a year which will see many new Two Wheeler brands & models being launched. Every advertiser in this category has to resort to Sales Promotion campaigns to fight the fierce competition. On analyzing this we found that Price Promotions are the most widely used, as due to the wide variety of brands on offer it is the Cost, which usually influences a customer's choice. Almost 40 % of the Two Wheeler advertising in Newspapers has sales promotion offers associated with it. Interestingly though, when we look at Magazines the focus entirely shifts from Sales Promotions to more of brand building activities. This may be attributed to the different types of readers that Magazines have from Newspapers. For an advertisement in a magazine it is more important that the Brand itself should appeal to the reader rather than the Cost. Two Wheelers is a category where presence of a very strong dealer network is quintessential. About 8 % of the advertising on Two Wheelers is Retail in nature i.e., ads released by dealers themselves. Two Wheelers have always made use of Sports, Sports Personalities and 22 | P a g e

Sporting Events as an effective platform for advertising. This is true even when it comes to choice of positions for placing an ad, for this category. Back Pages & Sports Pages account for almost half the advertising spends in this category. A point to be noted here is that Sports news & articles feature on the Back pages of a majority of newspapers. Efficient in T.V Advertisement of 2 wheeler The present study is focused on the school/college going teenagers of Haryana to know the influence of TV advertising on their buying behaviour. For this purpose, a multistage sampling method was adopted. The study comprised of four districts of Haryana which were selected at random from all the administrative divisions. The data for urban respondents was collected from these districts. Further, two villages from each district were selected in such a manner that one village lies near to the city and the other lies far away from the city and also having senior secondary school. The nearness was considered upto 20 kilometers from the district. While conducting the survey, due care was given to the respondents of different walks of life, i.e. different gender, area of residence, educational standards, economic backgrounds and age groups. It was decided to involve teenagers in the age group of 13-19 studying in, grade 7-9, 10-11 and 12 & above in the survey and were regular viewers of TV. A total of 1000 questionnaires (250 in each administrative division) were circulated among the respondents. Out of the collected questionnaires, a total of 866 questionnaires were considered fit for the analysis. Of these, 440 were from rural and 426 were from urban respondents. Data Analysis Primary Data:The Primary Data is to be collected through 1. Questionnaire 2. Personal interview Secondary Data:The secondary data is to be collected from Dealers service centers Internal Reports Documents Journals & Magazines Websites Research Design: The primary data and secondary data Primary Data: - The Primary Data is to be collected through1. Questionnaire2. Personal interview Secondary Data :- The secondary data is to be collected from Dealers service centers Internal Reports Documents Journals Magazines Websites Research Design: The primary data and secondary data will be studied and analyzed appropriately and 23 | P a g e

interpreted to extract certain facts .Whenever necessary statistical tool sand financial tools like tabulation, graphs will be used to present the findings effectively

Conclusion: Comparison between Newspaper and Magazine vs. Television Advertising Both print media and television advertising have the potential to reach the masses and influence their opinions and buying habits. Therefore, the primary differentiating factors when choosing one or the other are cost, time to reach the masses, and permanency of the ad in the viewers' or readers' minds. Print media easily penetrates over 50 percent of the local market. The ad gets to the masses unchanged thus becoming seemingly permanent. Print media ads are not viewed as an interruption, but as part of everyday reading. Several factors should be considered while using TV as a medium of advertising. These include the number of television stations in the market, the number of people watching a particular station and the television viewing mannerisms. Print media and television advertising are two different forms of advertising platforms that have evolved greatly with the advancement of technology. Both of these have capabilities to promote businesses to higher levels. This is because they are both widespread and entail the visual aspect that enables them to reach target groups effectively, yet remain independent of each other.

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BIBLIOGRAPHY: Website: 1) www.newsads.com 2) www.adsole.com 3) www.adscope.com 4) www.motorworld.com Newspaper 1) Times of India 2) Hindustan Times Magazines 1) Zigwheels 2) Overdrive 3) Autocar 4) Ogilvy on Advertising (Paperback) 5) Advertising Law and Ethics

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Questionnaire
Name: _____________________________________ _________________________________ Profession: __________________________________ __________________________________ Gender:

Age:

Q 1.

Do you have a Two Wheeler? Yes No Which Two wheeler you have? Bike Scooter

Q 2.

Bicycle

Q 3.

Which Brand do you have or prefer to purchase? Bajaj Honda Hero Honda What makes you to Purchase this vehicle? Newspaper Ads Television Ads Web Ads Self Analysis How often you read Newspaper or Magazine? Twice a Day Daily More Often NotFixed

TVS

Suzuki

Other

Q 4.

Hording Suggested by friend

Magazine

Q 5.

Weekly

Q 6.

What attracts you to read Newspaper or Magazine? News Articles Advertisements

Headlines

Q 7.

Which attribute of Ads of the vehicle described in Newspaper is liked by you? Picture Offers Description Article on Vehicle How often you watch Television? Twice a Day Daily NotFixed

Q 8.

More Often

Weekly

Q 9.

What attracts you to watch Television? Serials Live Shows Reality Shows

News

Sports

Q10.

Which attribute of Ads of the Vehicle described in Television is liked by you? Graphics Narration Description Concepts

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