Snehil Final Report

G. L.
BAJAJ
INSTITUTE OF MANAGEMENT AND RESEARCH
Approved by A.I.C.T.E. & Affiliated to Dr. APJ Abdul Kalam Technical University,
Lucknow
Plot No. 2, Knowledge Park III, Greater Noida Uttar Pradesh-201301
Research Report
On
“ROLE OF ADVERTISEMENT IN FMCG SECTOR”
Submitted for
partial fulfillment of the award of degree of Master of Business
Administration (MBA)
From
DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW
UNDER THE GUIDANCE OF :- SUBMITTED BY-:
Mr. Anuj Singh Piyush Singh

Assistant Professor 1719270027
Department of management studies
1
CANDIDATE DECLARATION
I hereby declare that the work which is being presented in this report
entitled “ROLE OF ADVERTISEMENT IN FMCG SECTOR” is an authentic
record of my own work carried out under the supervision of Ms. Pallavi
Arora.
The matter embodied in this report has not been submitted by me for the
award of any other degree.
Dated: ( PIYUSH SINGH)
MBA 4TH SEMESTER
2
ACKNOWLEDGEMENT
A truly independent project is a contradiction in terms. Every project involves
contribution of many people. This project also ears the imprints of many people and it is
a pleasure to acknowledge all of them.
I take this opportunity to convey my Heart filled thanks to my project guide
who has been a source of guidance and has rendered constant encouragement to
complete this project.
Last but not the least would be falling short of duties if I don’t mention. My
sincere thanks to all the staff members for providing me with great help.
(PIYUSH SINGH)
(4th semester)
3
PREFACE
In spite of the theoretical gained through classroom study, a person is incomplete if not
subjected to practical exposure of real corporate world and may have to face hurdles,
which will be difficult to overcome without any first-hand experience of business.
In the context, research program has been designed to make the person aware of the
happenings of the real business world. The Research Report entitled “ROLE OF
ADVERTISEMENT IN FMCG SECTOR” has been done as a completion part of MBA
Degree.
I whole heartedly appreciated the harmonic atmosphere provided to me by the staff of
marketing. The data has collected at primary source through interviews with the
customer & discussions with the retailer of different -different sections. The data which
used in this project report are secondary data. These secondary data so obtained were
mostly collected from the management. It would not have been possible to complete
my research report in a manner. I reckoned & within such a limited time. For this nice
obliged to them.
4
TABLE OF CONTENTS
Chapter -1 13
I. Introduction
 Descriptive work on subtopics of study
I. Profile Of HUL
II. Profile Of P&G
III. Product Of HUL
IV. Product Of P&G
 Different Advertising Strategies of some FMCG company’s
i. HUL: Advertising Strategies
ii. P&G: Advertising Strategies
Chapter-2 63
1- Literature Review
Chapter-3 76
1 - Research methodology2
2 - Data analysis & interpretation
Chapter-4 96
1- Findings
Chapter-5 97
1- Conclusion
2- Recommendation
Chapter-6 101
1- Bibliography
2- Annexure
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EXECUTIVE SUMMARY
MORE MEDIA ADVETISEMENT
The report involved analyzing and evaluating advertising strategies for various companies:
Advertising:
According to the American Marketing Association, Chicago adverting is “ any paid

form of non personal presentation of ideas, goods and services by an id entified
sponsor”.
Advertising is a form of persuasive communication with the public.
The objective of Advertising is:-
(1) Inform customers of the goods and services.
(2) Brings out the product use P’s
(3) Calls for or invites people to buy the product
(4) Mass communication
(5) Attract attention
(6) Lousing interest
(7) Building desire
(8) Obtaining action.
How much advertising a given budget and brief will buy.
Costs are usually reckoned on the basis of 'CPT' - the average Cost per Thousand people
reached in the target group. This of course varies according to the size of the ad, the rates
Charged by the individual media, and whether a printed ad is black and white, or full color, etc.
Nowadays virtually every organization in the UK uses advertising in one way or another,
because they find it a practical and cost effective way of achieving some of their aims. The
operative words are 'cost effective'. If the objectives are commercial, one test would be whether,
6
in the long run, the company gets a better profit result overall from a particular weight of
advertising than from, say, a heavier or lighter weight, or none.
If the objectives aren't commercial but, for instance, to communicate information, the questions
are
(a) Whether the effects of advertising are worth the cost, and
(b) Whether advertising is the most inexpensive way of creating these effects.
It is difficult to measure or demonstrate exact cost benefits from advertising - and certainly to
forecast these in advance. Apart from sales statistics, the most common tools are various
specialized forms of market research, and econometric modeling.
The reason advertising so irritatingly eludes logical or scientific analysis is that three variables
are involved in its effects - two of them not easily measurable. These are the weight of
advertising, the effectiveness of the creative idea and execution, and the latent potential of the
situation to be changed - by advertising or anything else - anyway.
Like it or hate it, advertising is generally recognized to have several practical benefits for society
at large.
More media
One of these is that it largely finances the media. Without advertising revenue, the UK would
have no commercial TV or radio, far fewer and much more expensive newspapers and
magazines, and of course no posters. Cinema tickets would be more expensive.
In this regard, advertising's effect is vastly to enrich the variety and numbers of media available,
and it is an authentic engine of freedom of speech. It also claims this freedom itself, within the
law. (In the UK the principle of 'editorial independence' means that advertisers pay for the media,
but cannot much influence the media's editorial content, whether excellent or deplorable.
Broadcasters and editors say what they want to say: the advertisers are simply allowed to buy a
proportion of discrete spaces to say what they want to say.)
Choice
Advertising, because it is 'competitive', is an agent to improve the range of products available,
the speed with which new ones can be introduced, and even the ways in which we shop.
7
Prices
Finally, despite its cost (quite often as much as 5 per cent of total product costs) it has the
tendency to reduce prices, because of the efficiency it creates through economies of scale, and
the nature of competition.
Advertising is often criticized, the three most common criticisms being:
 That it is wasteful and increases prices (ie without its expense, the goods advertised
would otherwise be cheaper);
 That it is vulgar and tasteless; and
 That it exploits consumers and creates unnecessary needs.
8
9
INTRODUCTION
ADVERTISING is any paid form of non personal presentation and promotion of ideas, goods or
services by an identified sponsor. Organizations handle their advertising in different ways. In
small companies advertising is handled by someone in the sales or marketing department, who
works with an advertising agency. A large company will often set up its own advertising
department, whose manager reports to the vice president of marketing. The advertising
department’s job is to propose a budget; develop advertising strategy; approve ads and
campaigns and handle direct mail advertising, dealer displays, and other forms of advertising.
Most companies use an outside agency to help create advertising campaign and to select and
purchase media. Advertising and promotions is bringing a service to the attention of potential
and current customers. Advertising and promotions are best carried out by implementing
advertising and promotions plan. The goals of the plan should depend very much on the overall
goals and strategies of the organization, and the results of the marketing analysis, including the
positioning statement. The plan usually includes what target markets you want to reach, what
features and benefits you want to convey to them, how you will convey it to them (this is often
called your advertising campaign), who is responsible to carry the various activities in the plan
and how much money is budgeted for this effort. Successful advertising depends very much on
knowing the preferred methods and styles of communications of the target markets that you want
to reach with your ads. A media plan and calendar can be very useful, which specifies what
advertising methods are used and when. For each service, carefully consider: What target
markets are you trying to reach with your ads?
What would you like them to think and perceive about your products (this should be in terms of
benefits to them, not you) what communications media do they see or prefer the most? Consider
TV, radio, newsletters, classifieds, displays/signs, posters, word of mouth, press releases, direct
mail, special events, brochures, neighborhood newsletters, etc.
What media is most practical for you to use in terms of access and affordability (the amount
spent on advertising is often based on the revenue expected from the product or service, that is,
the sales forecast)
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You can often find out a lot about your customers preferences just by conducting some basic
market research methods. The following closely related links might be useful in preparation for
your planning.
A word of warning
'Advertising' is not easily defined, though many people have tried. Narrowly, it means clearly
identifiable, paid for communications in the media, which aim to persuade, inform or sell. But
the word is also used to cover a much broader range of activities -from design to public relations
by what are often the same organizations, using similar skills.
The main players

Advertising is not a single industry, but spreads untidily across at least three separate kinds of
employer organization -those who are
Use it (the advertisers);

Make it (the advertising agencies); and
Display it (the media).
A number of other, more specialized organizations e.g. market research companies are also
involved.
Different sorts of advertising

Using its narrower definition, advertising takes two main forms -
'Display', and 'classified'.
Display advertising embraces TV and radio commercials, posters, and large display spaces in the
press, newspapers and magazines. (The press media also carry a huge volume of classifieds
advertising -small space commercial, recruitment and personal ads.)
Then there are direct mail and circulars -advertisements using the letterbox as a medium.
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Direct response advertising (also called 'direct marketing', i.e. using the ad in place of a retail
outlet) cuts across these divisions. It variously employs direct mail, send away coupons in the
press, and phone numbers on radio and TV as the customer's means of contact. At the broadest, a
whole gamut of other activities - e.g. sales promotion, exhibitions, design and packaging, and
even marketing itself are seen as 'advertising' too.
The aggregation of such tools, along with media advertising, price and distribution, are often
called the marketing mix.
Because all these activities require more or less the same skills (often using the same people),
and serve similar objectives, this booklet aims to provide some information about all of them.
However the word 'advertising' from here on means display advertising unless otherwise stated.
Advertising audiences
Finally, we also categories advertising in terms of those to whom it is directed -its audience. Two
most obviously contrasted audiences are consumers (the general public) and businesses.
Within these two big audience categories, advertisers use much more exact definitions of their
desired audience (or 'target group'). These describe a consumer target in terms of, for instance,
age, class, sex, region, behavior, and lifestyle. A business target can be defined by his or her
company size, its type of activity, and the buyers' or decision takers' own particulars.
The Advertising Business: Structural Diagram
Advertising objectives
If advertising takes varied forms, the objectives of individual advertisers are even more diverse.
Very often they are commercial marketing objectives - for instance to enlarge the profitable sales
of someone's goods or services. But to say such ads simply aim to 'sell the product' is an
oversimplification. They may be to slow down a brand's gradual decline, or simply to get the
public to reappraise its opinion of a particular company or organization, or just to provide
information.
12
Moreover noncommercial advertisers government departments, charities, political parties and
trade unions will have entirely different objectives from, say, a cat food or computer
manufacturer. Advertising objectives do not lend themselves to generalization.
The best general way to look at advertising systematically is as a useful but expensive means
(and not the only one available) to achieve various ends. Incidentally, unless you know the actual
objectives and results of a particular advertisement you've seen, it's unwise to judge it as 'good'
or 'bad'. The only criterion is whether the value of its effect was worth, or more than worth, its
cost.
Briefly, once an advertiser (the client) identifies needs for which advertising is the best solution,
he briefs independent specialists (typically an advertising agency) to plan the details and create
the advertising.
When approved, this is displayed in the agreed medium (for instance television) at an agreed
cost. Research specialists commonly test the advertising beforehand and/or try to measure its
effects afterwards.
An advertising programme of this kind is generally called a campaign, and usually includes a
series of advertisements, in a number of broadcast channels or printed media. The campaign is
usually based on statistical calculations of what percentage of the target group will see it
(penetration) how many times on average (frequency). Other variables are how skillfully the
media have been bought, the size of the commission or fees paid to the advertising agency, and
the cost of producing the ads themselves. At first reading this will sound rather imprecise and
complicated. But with experience, it is possible to say fairly accurately what a particular
campaign is likely to cost or, conversely.
How much advertising a given budget and brief will buy.
Costs are usually reckoned on the basis of 'CPT' - the average Cost per Thousand people
Reached in the target group. This of course varies according to the size of the ad, the rates
13
Charged by the individual media, and whether a printed ad is black and white, or full colour, etc.
Nowadays virtually every organization in the UK uses advertising in one way or another,
because they find it a practical and cost effective way of achieving some of their aims. The
operative words are 'cost effective'. If the objectives are commercial, one test would be whether,
in the long run, the company gets a better profit result overall from a particular weight of
advertising than from, say, a heavier or lighter weight, or none.
If the objectives aren't commercial but, for instance, to communicate information, the questions
are
(a) Whether the effects of advertising are worth the cost, and
(b) Whether advertising is the most inexpensive way of creating these effects.
It is difficult to measure or demonstrate exact cost benefits from advertising - and certainly to
forecast these in advance. Apart from sales statistics, the most common tools are various
specialized forms of market research, and econometric modeling.
The reason advertising so irritatingly eludes logical or scientific analysis is that three variables
are involved in its effects - two of them not easily measurable. These are the weight of
advertising, the effectiveness of the creative idea and execution, and the latent potential of the
situation to be changed - by advertising or anything else - anyway.
Like it or hate it, advertising is generally recognized to have several practical benefits for society
at large.
More media
One of these is that it largely finances the media. Without advertising revenue, the UK would
have no commercial TV or radio, far fewer and much more expensive newspapers and
magazines, and of course no posters. Cinema tickets would be more expensive.
In this regard, advertising's effect is vastly to enrich the variety and numbers of media available,
and it is an authentic engine of freedom of speech. It also claims this freedom itself, within the
law. (In the UK the principle of 'editorial independence' means that advertisers pay for the media,
but cannot much influence the media's editorial content, whether excellent or deplorable.
Broadcasters and editors say what they want to say: the advertisers are simply allowed to buy a
proportion of discrete spaces to say what they want to say.)
14
Choice
Advertising, because it is 'competitive', is an agent to improve the range of products available,
the speed with which new ones can be introduced, and even the ways in which we shop.
Prices
Finally, despite its cost (quite often as much as 5 per cent of total product costs) it has the
Tendency to reduce prices, because of the efficiency it creates through economies of scale, and
the nature of competition.
Advertising is often criticized, the three most common criticisms being:
 That it is wasteful and increases prices (i.e. without its expense, the goods advertised
would otherwise be cheaper);
 That it is vulgar and tasteless; and
 That it exploits consumers and creates unnecessary needs.
Its defenders point out that advertising seems to reduce rather than inflate prices, especially in
competitive markets; taste is an individual matter, and advertisements are often more attractive,
tasteful and entertaining than the programmes or printed text that adjoin them; and ads reflect
public needs rather than creating them. Moreover consumers are not mugs.
For its part, the general publics tend increasingly to like and approve of advertising, seeing it as
at worst harmless and, at best, entertaining and helpful.
You will have to make up your own mind about this question, and if you strongly share the
criticisms, it may be as well not to work in a business of which you disapprove.
However as a final thought, most people who work in advertising come to acquire a healthy
respect for the public's good judgment.
Advertising standards (for instance, to prevent misleading campaigns) are generally policed in
the UK by vigorously enforced voluntary codes of practice. These are underpinned where
necessary by laws and statute.
15
Despite its glitzy reputation, by no means all advertising work is glamorous or highly paid. On
the other hand, it offers an extraordinary wide range of interesting different jobs and career
paths.
And it's one of the recognized jumping off points for posts in top management later on.
It's also quite a small business in terms of numbers. Because of the small numbers it employs,
only a few of the many people who want to work in advertising succeed in finding jobs in it.
Also, the 'wastage rate' afterwards is rather high in some areas.
For gifted and determined people, on the other hand, it can be a particularly satisfying career
which also offers constant opportunities for advancement, or a change of direction.
Just about all advertising jobs demand an interest in people. This is more or less the only
Common denominator. If you don't like people very much, advertising won't be your cup of tea.
The other qualifications depend on the specific job, which can call for very different interests,
aptitudes and temperaments.
This section outlines the main kinds of work in which advertising are involved in one way or
another. They may be considered both horizontally, in terms of the wide spread of different
skills and aptitudes which are required, and vertically, in terms of upward career paths.
An important point to notice is that in many jobs, advertising work is only part of other
responsibilities. Sometimes it's only a small part, albeit an interesting and rewarding one.
This is worth bearing in mind in career planning: there are many options for moving sideways as
well as upwards - eg between an ad agency and a client, or perhaps in, out of, or between the
media. This is partly because similar skills and knowledge are in demand in all three sectors,
partly because hand son experience in one field is often thought valuable by an employer in
another one.
Here are the main categories of work available:

 Creative
 Planning
 Statistics, Research and Analysis
 'Buying and Selling'
16
 Sales Promotion
 Management Administration
FMCG is one of the most mature markets and, as younger, more dynamic sectors such as
leisure, entertainment and travel come to the fore, it has begun to lose share of private
expenditure. FMCG manufacturers and retailers therefore need to generate enthusiasm for their
offerings so that they can compete on an even playing field for 'share of wallet'.
“FMCG are losing ‘share of wallet’. ECR has helped to improve profitability, but aggressive
revenue initiatives are now also needed. If FMCG companies can make
Consumers more enthusiastic about their products, the sector could be revolutionized”
17
CREATING DIFFERENTIATION THROUGH ADVERTISING
Advertisements convey brand differentiation and this may be important in several categories,
which consist of several brands. In FMCG products like tea, coffee and detergents,
“differentiation awareness” can be created by television advertising, but in certain categories
there may be a need to demonstrate the effectiveness of brands. Differentiation with which
consumers cannot “connect” may have a negative implication and if a brand “connects”
consumers with its differentiation, it is likely to also differentiate itself in terms of getting
identified with the consumer. A detergent or a washing machine, which claims “low water
consumption”, has to demonstrate this claim at a retail outlet especially given the fact that the
quality of water varies across areas even in a specific geographical region.
It is also essential that a good “differentiation proposition” results in a positive word-of-mouth.

In a certain situation, the company may have two offerings in a product-line and there is a need
to differentiate them clearly depending on the target segments involved. This is a complex
situation where differentiation decides the growth of the brand and the perceived difference
between the offerings. An added layer to the complexity is the same brand name being used for
the offerings. Fairness cream is a category in which the benefit is the fairness of the complexion.
A brand like Fair and Lovely built over the years still has a strong association with the category
but under tremendous pressure from competitive brands and the most important criteria which
these brands is the herbal touch associated with them. Herbal ingredients are becoming popular
with consumers in several categories and personal care in India has a strong tradition of herbal
care. Fair and Lovely had to launch its herbal variant (it used the same brand probably because of
the brand equity built up over the years). The interesting fact is the differentiation being
conveyed by advertising. The original version uses an aspiration route in which the brand’s
ultimate benefit is success through confidence.
Estimates based on China's current per capita Consumption, the Indian FMCG market is set to
treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian
markets by unbranded products, change in eating habits and the increased affordability of the
18
growing Indian population presents an opportunity to makers of branded products, who can
convert consumers to branded products.
Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in
India is low. The contrast is particularly striking between the rural and urban segments - the
average consumption by rural households is much lower than their urban counterparts. Low
penetration indicates the existence of unsaturated markets, which are likely to expand as the
income levels rise. This provides an excellent opportunity for the industry players in the form of
a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories
(Including the high penetration categories) in India is low as compared to both the developed
markets and other emerging economies. A rise in per capita consumption, with improvement in
incomes and affordability and change in tastes and preferences, is further expected to boost
FMCG demand. Growth is also likely to come from consumer "upgrading", especially in the
matured product categories.
Now before elaborating on differentiation and its various dimensions let us first look into India’s
FMCG market.
We find that even in this time of recession in the global economy our country is maintaining a
fair rate of growth thanks to the boom in retail sector.
If we look at the pie chart drawn on the next page we find that our citizens are the largest
consumer goods spender thanks to a survey done long time back.
19
EVOLUTION OF ADVERTISING INDUSTRY IN INDIA
The 1900s
1905
- B Dattaram & Co claims to be the oldest existing Indian agency in

Girgaum in Bombay
1912
- ITC (then Imperial Tobacco Co. Ltd.) launches Gold Flake
1920s
- Enter the first foreign owned ad agencies
- Gujarat Advertising and Indian Advertising set up
- Expatriate agencies emerge: Alliance Advertising, Tata Publicity
- LA Stronach's merges into today's Norvicson Advertising
- D J Keymer gives rise to Ogilvy & Mather and Clarion
1925
- LR Swami & Co, Madras
1926
- LA Stronach & Co (India) Pr. Ltd, Bombay starts
- Agency called National set up for American rather than British

Advertisers
- American importers hire Jagan Nath Jaini, then advertising manager

of Civil and Military Gazette, Lahore. National today is still run by
Jaini's family
- Beginning of multinational agencies
20
- J Walter Thompson (JWT) opened to service General Motors business
1928
- BOMAS Ltd (Formerly DJ Keymer & Co Ltd) set up
1929
- J Walter Thompson Co Pr. Ltd formed
Indian agencies, foreign advertising in the thirties
1931
- National Advertising Service Pr. Ltd. Bombay set up
- Universal Publicity Co, Calcutta formed
1934
- Venkatrao Sista opens Sista Advertising and Publicity Services as first

full service Indian agency
1935
- Indian Publicity Bureau Pr Ltd, Calcutta established
1936
- Krishna Publicity Co Pr. Ltd, Kanpur begins operations
- Studio Ratan Batra Pr. Ltd, Bombay established
- Indian Broadcasting Company becomes All India Radio (AIR)
1938
- Jayendra Publicity, Kolhapur started
21
1939
- Lever's advertising department launches Dalda - the first major

example of a brand and a marketing campaign specifically developed
for India
- The Press Syndicate Ltd, Bombay set up
Indianising advertisements in the forties
1940
- Navanitlal & Co., Ahmedabad set up
1941
- Lux signs Leela Chitnis as the first Indian film actress to endorse the
product
- Hindustan Thompson Associates (HTA), the current incarnation of

JWT, coins the Balanced Nourishment concept to make Horlicks
more relevant to India
- Green's Advertising Service Agents, Bombay formed
1943
- Advertising & Sales Promotion Co (ASP), Calcutta established
1944
- Dazzal, Bombay comes into existence
- Ranjit Sales & Publicity Pr. Ltd, Bombay started
1945
- Efficient Publicities Pr. Ltd, Madras set up
- Tom & Bay (Advertising) Pr. Ltd., Poona begins operations in India
22
1946
- Eastern Psychograph Pr. Ltd., Bombay set up
- Everest Advertising Pr. Ltd, Bombay established
1947
- Grant Advertising Inc, Bombay formed
- Swami Advertising Bureau, Sholapur started
1948
- RC Advertising Co, Bombay set up
- Phoenix Advertising Pr. Ltd, Calcutta formed
Corporate advertising in the fifties
1950s
- Radio Ceylon and Radio Goa become the media option
1951
- Vicks VapoRub: a rub for colds, causes ripples with its entry
in the balm market
g55
1952
- Shantilal G Shah & Co, Bombay
1954
- Advertising Club, Mumbai set up
- Express Advertising Agency, Bombay
- India Publicity Co. Pr. Ltd., Calcutta
1956
23
- Aiyars Advertising & Marketing, Bombay
- Clarion Advertising Services Pr. Ltd, Calcutta
1957
- Vividh Bharati kicks off
1958
- Shree Advertising Agency, Bombay
1959
- Associated Publicity, Cuttack
Creative revolution in the sixties
1960
- Advertising Accessories, Trichur started
- Marketing Advertising Associates, Bombay set up
1961
- Industrial Advertising Agency, Bombay comes into existence
- Bal Mundkur quits BOMAS to set up Ulka the same year
1962
- India's television's first soap opera - Teesra Rasta enthralls

viewers
1963
- BOMAS changes names to SH Benson's
- Stronach's absorbed into Norvicson
24
- Lintas heading for uncertainty
- Levers toying with giving its brands to other agencies
- Nargis Wadia sets up Interpub
- Wills Filter Tipped cigarettes launched and positioned as made for

each other, filter and tobacco match
1965
- Kersey Katrak sets up Mass Communication and Marketing (MCM)
1966
- Government persuaded to open up the broadcast media
- Ayaz Peerbhoy sets up Marketing and Advertising Associates (MAA)
1967
- First commercial appears on Vividh Bharati
1968
- Nari Hira sets up Creative Unit
- India wins the bid for the Asian Advertising Congress
1969
- Sylvester daCunha left Stronach's to run ASP; later sets up

daCunha Associates
1970
- Frank Simoes sets up Frank Simoes Associates
25
The problematic seventies
1970-1978
- National Readership Studies provided relevant data on

consumers' reading habits
1970
- Concept of commercial programming accepted by All India Radio
- Hasan Rezavi gives the very first spot on Radio Ceylon
1971
- Benson's undergo change in name to Ogilvy, Benson & Mather
1972
- Western Outdoor Advertising Pvt Ltd (WOAPL) introduces first

closed circuit TV (CCT) in the country at the race course in
Mumbai
1973
- RK Swamy/BBDO established
1974
- MCM goes out of business
- Arun Nanda & Ajit Balakrishnan set up Rediffusion
1975
- Ravi Gupta sets up Trikaya Grey
1976
- Commercial Television initiated
26
1978
- First television commercial seen
1979
- Ogilvy, Benson & Mather's name changes to Ogilvy & Mather
Glued to the television in the eighties
1980
- Mudra Communications Ltd set up
- King-sized Virginia filter cigarette enters market with brand name

of 'Charms'
1981
- Network, associate of UTV, pioneers cable television in India
1982
- The biggest milestone in television was the Asiad '82 when

television turned to colour transmission
- Bombay Dyeing becomes the first colour TV ad
- 13th Asian Advertising Congress in New Delhi
- Media planning gets a boost
1983
- Maggi Noodles launched to become an overnight success
- Canco Advertising Pvt. Ltd. founded
- Manohar Shyam Joshi's Hum Log makes commercial television

come alive
- Mudra sponsors first commercial telecast of a major sporting event

with the India-West Indies series
27
1984
- Hum Log, Doordarshan's first soap opera in the colour era is

born
- Viewers still remember the sponsor (Vicco) of Yeh Jo Hai

Zindagi!
1985
- Mudra makes India's first telefilm, Janam
1985-86
- 915 new brands of products and services appearing on the Indian

Market
1986
- Sananda is born on July 31. The Bengali magazine stupefies India

by selling 75,000 copies within three hours of appearing on the
newsstands.
- Mudra Communications creates India's first folk-history TV

serial Buniyaad. Shown on DD, it becomes the first of the
mega soaps
- Price quality positioning of Nirma detergent cakes boost sales
1988
- AAAI's Premnarayan Award instituted
1989
- Advertising Club Bombay begins a biennial seminar called

'Advertising that Works'
- Advertising & Marketing (A&M) magazine launched
28
Tech savvy in the nineties
1990
- Marks the beginning of new medium Internet
- Agencies open new media shops; go virtual with websites and

Internet advertising
- Brand Equity (magazine) of The Economic Times is born
1991
- First India-targetted satellite channel, Zee TV starts broadcast
- Close on the throes of the Gulf War enters STAR (Satellite

Transmission for Asia Region)
1992
- Spectrum, publisher of A&M, constitutes its own award known as

'A&M Awards'
- Scribes and media planners credit The Bold And The Beautiful
serial on STAR Plus channel as a soap that started the cultural
invasion
1993
- India's only advertising school, MICA (Mudra Institute of

Communications Ahmedabad), is born
- Tara on Zee TV becomes India's first female-centric soap
1995
- Advertising Club of Bombay calls its awards as Abby
- Country's first brand consulting firm, SABRE (Strategic Advantage for

Brand Equity) begins operations
1996
29
- The ad fraternity hits big time for the first time by bagging three
awards at the 43rd International Advertising Festival, Cannes
- Sun TV becomes the first regional TV channel to go live 24 hours

a day on all days of the week
1997
- Media boom with the growth of cable and satellite; print medium
sees an increase in titles, especially in specialised areas
- Government turns towards professional advertising in the private

sector for its VDIS campaigns
- Army resorts to the services of private sector agencies
- Advertising on the Internet gains popularity
- Equitor Consulting becomes the only independent brand consultancy

company in the country
- Several exercises in changing corporate identity
- For the first time ever, Indians stand the chance of winning the $ 1-
million booty being offered by Gillette as part of its Football World
Cup promo 1998
- Events assume important role in marketing mix
- Rise of software TV producers banking on ad industry talent
- Reinventing of cinema -advertising through cinema begins
1998
- Lintas becomes Ammirati Puri Lintas (APL)
1999
- B2B site agencyfaqs.com launched on September 28, 1999
- The Advertising Club Bombay announces the AdWorks Trophy
30
In the new millennium
2000
- Mudra launches magindia.com - India's first advertising and marketing

Gallery
- Lintas merges with Lowe Group to become Lowe Lintas and Partners
(LLP)
- bigideasunlimited.com - a portal offering free and fee ideas for money

launched by Alyque Padamsee and Sam Mathews
- Game shows like Kaun Banega Crorepati become a rage; media buying
industry is bullish on KBC
- Kyunki Saas Bhi Kabhi Bahu Thi marks the return of family-
oriented soap on TV
- French advertising major Publicis acquires Maadhyam
2001
- Trikaya Grey becomes Grey Worldwide
- Bharti's Rs 2.75-crore corporate TV commercial, where a baby

girl is born in a football stadium, becomes the most expensive
campaign of the year
2002
- Lowe Lintas & Partners rechristened Lowe Worldwide
- For the first time in the history of HTA, a new post of president is
created. Kamal Oberoi is appointed as the first president of HTA
31
PROFILE OF SOME POPULAR FMCG COMPANIES
The company was incorporated on 17th October, 1933 under the name of Lever Brothers (India)
Pvt. Ltd. (LBIL). It set up its manufacturing units in Bombay and Calcutta an associated
company viz., Hindustan Vanaspati Mfg. Co. Pvt. Ltd. (HVM), was earlier incorporated on 27th
November 1931 which set up a Vanaspati factory in Bombay. Both LBILK and HVM were
wholly owned subsidiaries of Unilever Ltd., London, U.K. HVM later acquired three more
Vanaspati factories at Shamnagar (West Bengal), Trichanapalli (TamilNadu) and Ghaziabad
(U.P) In order to market the toilet preparations manufactured by LBIL or imported from
Unilever companies, a marketing company under the name United Traders Pvt. Ltd. (UTL) was
incorporated on 11th may, 1935 as a wholly owned subsidiary of LBIL. In 1944, the
management of LBIL and HVM was integrated. In November 1956, HVM and two small
associated companies’ viz. William Gossage & Sons (India) Pvt. Ltd and Joseph Cross field &
Sons (India) Pvt. Ltd., which were wholly owned subsidiaries of Unilever Ltd., were
amalgamated with LBIL and the name was changed to Hindustan UniLever Ltd. From 23rd
October, 1956 activities of UTL were taken over by its holding. Company LBIL. With the
amalgamation of business under one company, Indian capital was introduced in this integrated
business in 1956. HUL has been growing very rapidly, especially in 1996 the growth was 88.6%
HUL became the second private company in India after Reliance Industries to cross the Rs
10000 core mark in 1998. At present it’s valued at Rs. 11764.31 crore.1 its rapid growth has
given HUL place in the top 5companies regularly in annual BT-500 survey. This huge success
has come due to:-
 Merger with Ponds India Limited
 Launch of 40 new products
 Doubling of rural distribution network from 50,000 to one lakh villages
 Launch of a marketing scheme, Operation Bharat, across 22 states.
It can be said beyond any doubt that HUL is an undisputed leader in FMCG products
in urban as well as rural area. HUL caters to 850 million people in India which
becomes 85% approx. of the total population. Hence the study of HUL can give
32
uswide knowledge in the fields like successful implementations of urban and rural
India cutting across so many cultural, social, regional, religious, linguistic barriers.
P&G (Procter & Gamble): Profile
Three billion times a day, P&G brands touch the lives of people around the world. Our corporate
tradition is rooted in the principles of personal integrity, respect for the individual, and doing
what's right for the long-term.
Our core values and principles guide us in everything we do. Learn more about what drives our
purpose of providing products and services of superior quality and value to the world’s
consumers.
The P&G community consists of over 135,000 employees working in over 80 countries
worldwide. What began as a small, family-operated soap and Candle Company now provides
products and services of superior quality and value to consumers in 140 countries.
Spotlight On: Our New Orleans, Louisiana, Folgers® Employees
What They've Done: In the aftermath of Hurricane Katrina's devastation, these

employees — many of them suffering great losses of their own — banded together to
help their city get back on its feet. Watch this inspirational video and discover how
P&G employees have risen above this tragedy and are now reaching out to help others
33
do the same.
In the 1970s, P&G was one of

If James Gamble and William
the first companies to put its
Procter hadn't married the Norris
safety testing data in a computer
sisters, P&G might not exist.
database, helping to avoid
duplicative testing.
Some popular Products OF HUL:
Bru:
Bru, launched in 1969, created history in the first year of launch by growing to a
record market share of 21%. Ever since, it has grown from strength to strength.
Bru has been instrumental in virtually creating the entire Instant Coffee category as it
exists today. It has been at the forefront of most innovations in the Instant Coffee
category - whether in coffee-chicory blends, refill packaging, vending operations, or
more recently the Low-unit-price packs.
The Bru franchise also includes the Bru Roast & Ground, India's most popular Roast
& Ground Coffee brand, and Bru Malabar Roast & Ground which is available in
select geographies.
Clinic Plus
Clinic Plus Health shampoo was launched in India in the year 1987. It is India's largest selling
shampoo, offering the five most important hair health benefits: strengthens weak hair, prevents
34
hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-dandruff
ingredient.
The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual shampoo
it not only fights the last dandruff flake, but also adds back lost nutrients to make hair healthy
and beautiful. Clinic All Clear Total is a dandruff solution for everyday use.
Media used for advertising: Television, Newspaper, Radio, Postures and Hoardings.
Close-up
Close-up is the original youth brand of India. The first brand targeting youth in the oral care
market, with an edgy and youthful image which stays relevant till date. Ever since its launch in
1975, Closeup has broken every rule in the book on how toothpastes should behave!
Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste
segment ever since. In 2004, Closeup was re-launched with a bang. And this time it was packed
with the power of Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride, Mouthwash
and Micro whiteners, the perfect combination of ingredients for fresher breath and stronger,
whiter teeth.
Closeup became the first Gel toothpaste with Fluoride in the Indian Market. The brand umbrella
also includes Closeup Lemon Mint, gel toothpaste with the whitening benefits of lemon.
The latest entry in the Closeup stable is Closeup Milk Calcium – revolutionary new toothpaste
with the goodness of milk calcium in an industry-first core-in-sheath format, with white milk
calcium nutrient on the inside and a refreshing blue gel on the outside.
Fair & Lovely
35
A woman's passion for beauty is universal and catering to this strong need is Fair & Lovely.
Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was
launched in 1978.
The Hindustan unilever Research Centre (it is among the largest research establishments in
India's private sector, including pharmaceutical companies, with facilities in Mumbai and
Bangalore) deployed technology, based on pioneering research in the science of skin lightening
to develop Fair & Lovely. The formulation is patented. Its formulation acts safely and gently
with the natural renewal process of the skin, making complexion fairer over a period of six
weeks.
Fair & Lovely is formulated with optimum levels of UV sunscreens and Niacin amide that is
known to control dispersion of melanin in the skin. It is a patented and proprietary formulation,
which has been in the market for 25 years. Niacin amide (Vitamin B3) is a water-soluble vitamin
and is widely distributed in cereals, fruits and vegetables - and its use in cosmetic formulations
has been known for various end benefits. The UV components of the formulation are
scientifically chosen and used at optimum levels to provide wide spectrum protection against UV
rays of the sun. Specifically, this patented formulation offers a high UVA protection, which is
more relevant to Asian skin than plain SPF protection creams sold in the West. All the active
ingredients in the Fair & Lovely formulation function synergistically to lighten skin colour
through a process that is natural, reversible and totally safe.
The brand today offers a substantive range of products, including Ayurvedic Fair & Lovely
Fairness cream, Fair & Lovely Anti-Marks cream, Fair & Lovely Oil control Fairness Gel, Fair
& Lovely for Deep Skin and Fair & Lovely Fairness Soap. The latest has been the Perfect
Radiance, a complete range of 12 premium skincare solutions from Fair & Lovely.
Hamam
36
Launched in 1934 in India.
Hamam has always been a reliable option for consumers over years. The brand has withstood
the test of time and has given the consumers the confidence and assurance of being a soap that is
safe on skin. Hamam is manufactured in the most modern soap plants world-class quality control
system. Hamam contains polyols, which are known to be good moisturizers. Hamam also
contains Aloe Vera, Tulsi and Neem extracts.
Hamam soap is made from a blend of vegetable oils. The optimum grade of Palm oil and coconut
oil is mixed in the right proportion to give a soap that is lasting, gives lather which is stable and
can effectively remove oil, dirt from the surface of the skin.
Kissan
Acquired by Hindustan UNILever Limited in 1994, the Kissan category consists of deliciously
wholesome products for kids to grow up.
The Kissan range consists of ketchup and other sauces, jams, squashes and ready-to-drink
products. For mothers and children, Kissan is today one of the most trusted brands in the
country. Kissan continues to be a pioneer in the categories that it operates in.
Annapurna Salt
Annapurna Salt, first introduced in 1997, was relaunched in 2001 with a

breakthrough technology, patented in India and several other countries. This
technology helps encapsulate iodine with salt. It thereby prevents the loss of
37
iodine from salt, either during its storage and transportation or cooking.
Iodine deficiency is a serious health issue in India. About 278 million people are
at risk of iodine deficiency disorders. Iodine deficiency not only leads to goiter,
but also has an impact on the mental development of growing children.
The International Council for Control of Iodine Deficiency Disorders (ICCIDD)

has endorsed Annapurna Salt. Annapurna has also taken initiatives to educate
consumers about the benefits of iodine and its effect on the mental development
of growing children.
Launched nationally in 1998, Annapurna Atta is made with patented technology.

It absorbs more water than ordinary atta when kneaded, resulting in softer
chapatis.
In 2001, it was fortified with iron and vitamins. The benefit is very relevant
because over 60% of women and children are iron deficient.
Media used for advertising: Television, Newspaper, Radio, Postures and

Hoardings.
Kwality Wall
Kwality Wall's, launched in 1995, is the company's master brand for ice cream.
Kwality Wall's has combined state-of-the art technical know-how of Unilever - the
global leader in ice cream - with a deep insight of the Indian market, to deliver a
range of superior quality products under its international brands.
38
Key launches include Cornetto, Feast, Viennetta, and a range of Sundaes, and also
exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone.
Kwality Wall's ensures that while each of its offerings is unique in taste and
flavour, they are also accessible to more consumers through breakthrough cost
reengineering and value delivery.
Lifebuoy
Making a billion Indians feel safe and secure by meeting their health and hygiene
needs is the mission of Lifebuoy.
The world's largest selling soap offers a compelling health benefit to the entire
family. Launched in 1895, Lifebuoy, for over 100 years, has been synonymous with
health and value. The brick red soap, with its perfume and popular Lifebuoy jingle,
has carried the Lifebuoy message of health across the length and breadth of the
country.
The 2002 and 2004 relaunches have been turning points in its history. The new mix
includes a new formulation and a repositioning to make it more relevant to both
new and existing consumers.
Lifebuoy is now a milled toilet soap with a new health fragrance and a
contemporary shape. The new milled formulation offers a significantly superior
bathing experience and skin feel. This new mix has registered conclusive and clear
preference among existing and new users.
The new Lifebuoy is targeted at today's discerning housewife with a more inclusive
"family health protection for my family and me" positioning. Lifebuoy has made a
deliberate shift from the male, victorious concept of health to a warmer, more
39
versatile, more responsible benefit of health for the entire family.
At the upper end of the market, Lifebuoy offers specific health benefits through
Lifebuoy Gold and Plus. Lifebuoy Gold (also called Care) helps protect against
germs which cause skin blemishes, while Lifebuoy Plus offers protection against
germs which cause body pouder.
Surf Excel
A pioneer in the Indian detergent powder market, Surf Excel has constantly upgraded
itself over the years, to answer the constantly changing washing needs of the Indian
homemaker. Today Surf Excel offers outstanding stain removal ability on a wide range
of stains. This means that mothers now have the freedom to let their kids experience
life without worrying about stains.
Surf Excel quick wash is powered with a path-breaking technology- it reduces water
consumption and time taken for rinsing by 50%. It is a significant benefit, given the
acute water scarcity in most of India.
Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel Quick Wash and Surf
Excel Automatic. So whatever be the need, Surf Excel hai na.
Sunsilk
Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country. Positioned as the
'Hair Expert', Sunsilk has identified different hair needs and offers the consumer a shampoo
that gives her the desired results.
The benefits are more compelling and relevant since the variants are harmonised in terms of the
product mix - fragrance, colour and ingredients are all well linked to cue the overall synergy. The
40
range comes in premium packaging and design. The accent is on "It knows you, and hence
knows exactly what your hair needs".
Some popular Products OF P&G
Head & Shoulders Shampoo
Head & Shoulders shampoo is specially formulated to give you beautiful, healthy
and dandruff-free hair.
Available in Classic Clean Shampoo and 2 in 1, Ocean Lift Shampoo and 2 in 1,

Citrus Breeze Shampoo and 2 in 1, Refresh Shampoo and 2 in 1, Restoring Shine
Shampoo and 2 in 1, Extra Volume Shampoo, Smooth & Silky Shampoo and 2 in 1,
Dry Scalp Care Shampoo and 2 in 1, Sensitive Care Shampoo and 2 in 1 and
Intensive Treatment.
Head & Shoulders Conditioners
Head & Shoulders conditioners are designed to give your hair a radiant shine and
help reduce flakes. Available in Classic Clean and Dry Scalp Care
NEW! Head & Shoulders Intensive Solutions

. Contains 2% Pyrithione Zinc for maximum strength without a prescription

Hoardings.
41
Clinically designed to help prevent seborrheic dermatitis, severe dandruff and
other dandruff related problems
Features a clean, refreshing fragrance
Leaves hair shiny and manageable

Hoardings.
Tide® Liquid
3X the stain removal power for about 25 cents a load*. Tide Liquid
combines all the great stain fighting qualities you've come to expect
in Tide Powder with the pretreating ease of a liquid detergent.
Available in Tide Clean Breeze Liquid, Tide Mountain Spring

Liquid, Tide Tropical Clean Liquid, Tide Original Scent and Tide
Liquid Free
Tide Powder
42
Tide Powder detergents get to the bottom of dirt and stains to help
keep your whites white and your colors bright.
For great stain removal in any temperature, Quick Dissolving™ Tide

is formulated to immediately start dissolving — even in cold water.
Available in Tide Clean Breeze Powder, Tide Mountain Spring

Powder, Tide Tropical Clean Powder, Tide Original Scent and Tide
Powder Free.
Tide with Febreze™ Freshness
Helps clean away stains and odors with ease
Tide with Febreze Freshness gives you the great cleaning you expect
from Tide, now with the Febreze freshness you love.
Specially formulated to help target and remove common odors that

get trapped in fabrics, and then deposit "freshness actives"
Available in Tide with Febreze Freshness Liquid Spring & Renewal,

Tide with Febreze Freshness Powder Spring & Renewal, Tide with
Febreze Freshness Liquid Meadows & Rain and Tide with Febreze
Freshness Liquid Citrus & Light
43
Tide Coldwater
Deep Clean. Save Green. Tide Coldwater provides a deep clean in

the care of cold water, making it the coolest way to clean.
Removes even stubborn stains better than the leading competitive

liquid detergent in warm water
Saves energy and money by lowering your heating bills
Helps colors stay brighter and whites stay whiter
Provides a cool new scent experience
Available in Tide Coldwater Fresh Scent Liquid, Tide Coldwater

Glacier Liquid, Tide Coldwater Fresh Scent Powder and Tide
Coldwater Glacier Powder.
Tide with a Touch of Downy®
Tide with a touch of Downy presents outstanding Tide clean with a

touch of Downy softness and freshness.
Available in Clean Breeze Liquid, April Fresh Liquid, Soft Ocean

Mist Liquid, Clean Breeze Powder, April Fresh Powder and Soft
Ocean Mist Powder
44
Tide with Bleach
Clean even what's unseen. Tide with Bleach will clean your clothes
and help keep your colors bright and your whites white.
Available in Original, Mountain Spring and Clean Breeze scents
Tide Liquid with Bleach Alternative
The smart alternative to chlorine bleach. Tide Liquid with Bleach

Alternative uses active enzymes to break down and remove stains
while whitening whites.
Because it is not chlorine based like liquid bleach, it also is safe to

use on colors too. In fact, the Tide BrightLock™ formula actually
reduces chlorine in the wash to help keep bright colors from fading.
Available in Tide with Bleach Alternative Liquid Original, Tide with

Bleach Alternative Liquid Clean Breeze and Tide with Bleach
Alternative Liquid Mountain Spring
Tide HE
Get the most out of your high-efficiency washer. Tide HE is specially formulated to unlock
the cleaning potential of high-efficiency washers.
Standard detergents can cause over-sudsing when less water is used, and using less detergent
45
sacrifices cleaning power. Tide HE provides excellent cleaning with the right level of sudsing.
Available in Tide HE Powder Original, Tide HE Liquid Original, Tide HE Liquid Clean
Breeze and Tide HE Liquid Free
For more than 50 years, Oral-B® has produced the highest-quality dental
hygiene products for you, your family and dental professionals worldwide.
Trust the brand more dentists use themselves worldwide.
Power Toothbrushes
Oral-B power toothbrushes offer exceptional features and performance
benefits. In fact, an independent landmark study has concluded that
only the oscillating-rotating power toothbrush technology, pioneered
by Oral-B, offers superior cleaning compared to manual toothbrushes.
Power Brush Heads
Oral-B offers 12 advanced power brush heads designed for different

needs. Choose the perfect one based on your desired brushing
experience: deep clean, extra soft, whitening, floss-like clean,
traditional brushing and cleaning around braces or other dental work.
46
Manual Toothbrushes
At Oral-B we develop products that are used and trusted by dental

professionals worldwide. From infants to adults, Oral-B makes a
manual toothbrush to meet your family's needs.
Kids' Products
Kids change a lot during the developmental years. Oral-B Stages®
kids' products are designed to meet their special oral care needs at.
HUL: ADVERTISING STRATEGY

BUILDING CORPORATE IMAGE
Corporate communications and public relations for building image can truly be looked
upon in the context of global business and marketing as a subject about which many
professionals hold firm views, but know surprisingly little about. Some see it as a
menace, as an expensive flag waving exercise which their company can easily do
without. Others regard it as a myth, arguing that publicity by of virtue its obvious
nature, cannot hope to change perceived images in people’s minds. At the other
extreme are those who view corporate communications (particularly advertising as a
magic formula and an instant panacea for every corporate ill. In reali ty it is none of
these things. it is in fact, a management tool to influence the outside world -the target
group. So, the real significance of building corporate image lies in preparing and
consolidating a sound global consumer base.
Every company wants to have a favorable image in the global market. In case of HLL
also, image-building plays the most important part in determining its marketing
strategy. Building corporate image is concerned with building confidence and
47
credibility by helping your target group understand you better. Familiarity in this
case normally improves acceptability of who you are and what you are doing.
Ignorance, on the other hand, can lead to mistrust, or even contempt in some
situations. Corporate image is built through more tha n one strategic means, and often
a combination of activities. For instance-
1. Advertising —corporate and even product
2. Public Relations—external and internal
3. Media Relations —especially the Press
4. Customer and Supplier Relations
5. Community Relations — good corporate citizenship
As India transits from a shod age-driven economy to a one propelled by competition

the reputation and image of a company like HUL will make difference between
whether it rules the market or merely rues it. Corporate image is what enables HLL to
hold its own against rivals like IPCL and Haldia
Good corporate image can be built if you treat it like one of the Ps’ of marketing —
the fifth ‘P’ stands for Performance’ —professional corporate performance, doing it
the right way the first time. It’s in this regard that creativity in PR comes to have a
lion’s share in the entire process of corporate image building.
Creativity in PR means more than just pretty pictures and good copy. It is building
image with activities, which generate all-round impact and visibility for the company.
‘What’ and ‘How’ is the task here. Creative corporate advertising is one route.
With respect to positioning similarly, the image communication and image building
activity must to able to find a right niche in the minds of the target group. The
‘quality of the message, and activity, is vital for this.
Companies which benefit most from corporate image are those who take a long -term
view and commitment towards communication and the image of their organization
through it. HLL can be presented as a striking instance of it.
Image and Identity
48
There may be nothing new in saying that the corporate image is in the eye and the
mind of the receiver. Yet it is worth saying again and again. An organization
transmits, on a sustained basis, messages to publics. It is the reception of the message,
which goes to create the intended image. In other words, corporate communication is
the process that translates an identity into an image. Again, in brief, corporate image
primarily refers to the image that a company has acquired with the public whereas
corporate identity refers to the image a company strives to achieve, in order to build
to build a reputation with its publics.
In this context, decidedly, every company like HUL needs a mission. The mission is,
in fact, a framework for business and all its activities, the value that drive the
company to achieve the corporate goals. No less important is the belief the company
has in it. The mission is the glue that holds the company together. Here, the PR and its
communication strategies come into distinct focus. If the mission and the objectives of
the organization have to succeed, the corporate body must communicate short -term
goals, long-range objectives and even the total mission of the organization. Inadeq uate
communications result in an ambiguous corporate image within as well as outside and
lead to breakdown in the co-ordination of all contributing elements in an organization.
Dare To Think Beyond Advertising….
In present situation to address the "The soprano problem", advertisers resort to

shadow advertisement where the products become endemic to the setting of the show.
Where the products are shown being consumed or brand name is exhibited in the
background.
In India, the first shadow advertisement was used in movie "Bobby" where motorcycle
"Rajdoot" was advertised. Recently, there was shadow advertisement of Coca -Cola in
Hindi blockbuster "Kaho Na pyar hai". But the problem with shadow advertisement is
that positioning message of the product can't be conveyed to consumers. Hence, the
concept of shadow advertisement can be extended further so that the theme of the
advertising would become endemic to entertaining show. This would be no more
exclusive advertising. Rather, advertising will be a part of the entertainment. But this
49
has to be done in a delicate manner so that the information about the product is passed
on to the viewers without disturbing the entertaining element of the show. If this
succeeds, that would be a great break-through for advertisement. Even this should not
be called advertising anymore, as that has become an irritating word in the mind of
the audience. Even though advertainment seems quite close to it, but it would be more
evolved. Since in advertainment we try to advertise and enter tainment comes with it.
But in the recommended solution we want to entertain the audience only and
advertisement is an integral part of the show. The major question would be, whether
the audience would be able to comprehend the hidden positioning message? Here are
few examples on how to make the positioning message integral part of the show. We
have programmes like "Antakshari" in which participants take part in groups. The
groups can be named after some brands and the participants would be projected as
such that they would be personification of brands. Suppose one group is named Lux,
the participants are expected to be beautiful women who stand for Lux. So this can be
done for many programmes, which has format like this. Suppose HLL produced a soap
opera and the dialogue of the characters at some point would be focussed on the
products of HLL. Of course the context has to be right and should be very much along
the script not that it would destroy the element of entertainment. Hence the major
challenge would lie before scriptwriter and director. Even a particular character of an
opera becomes very popular as the opera becomes very popular. Hence building such
character, which would personify the brand and both the character as well as the brand
would grow in due course of time. However even if time constraint is removed, course
content constraint comes in. But the scope of story telling is far greater. Attention
grabbing will be replaced with attract attention and no zipping/zapping problem.
Audience will be more receptive and comprehension of course would be dependent
upon how it is executed. Practicability of the idea would be tested when it will be
implemented. Hence unless it is tried and tested it can be concluded that whether it
will click or not. Let's take the example of Coca-Cola, the scriptwriter would be
creating situation in each episode of a family soap where there would be opportunity
to celebrate and drink coke! To give another example, a multi utility vehicle with safe
driving positioning plank could have exploited the plot of the recent movie "Road".
50
If this concept clicks, there would be nothing like it for advertisers. If it happens, in
future big advertisers like HLL would be diversifying to entertainment business! Of
course the ad budget of HLL is far bigger than the total budget of many entertainment
houses.
Irrespective of whatever positive points or negative points it has, this concept can be
tried for programmes aired in pay channels simply because there is no other
alternative to advertise during the programme. Besides it is expected to solve the
other problems those are discussed above. Advertisement would be no more the
troublemaker and irritating. Hence catching attention would be much easier. Only
testing of this idea could help us to conclude whether to roll out from the concept
from programmes of pay channels to programmes of free channels.
PUBLIC RELATION
“Public relations practice is the deliberate planned and sustained effort to
establish and maintain mutual understanding between the organization and its
publics”.
By: - Institute of Public Relation (British) 1948.
To understand the definition better it in important to know as to who does the word
publics refer to.
Public are -
: Shareholder
: Customers
: Employees
: Trade Unions
PUBLIC RELATIONS
Here we try to identity the distinguishing factors between Advertising and public
relations:
51
“Advertising is a commercial persuasive activity aimed at promoting a particular idea
or a viewpoint product, or service, institution and so on t hrough the mass media.”
As refined by the British Institution & Practitioners of Advertising: -
“ADVERTISING presents the most persuasive possible selling message to the light
prospects for the product or service at the lowest possible cost on the other han d “.
Public Relations demand more time and effort than advertising because advertising is
limited to special selling and buying tasks. For advertising the basis jobs of
conceptualizing, producing, space buying etc. Can be delegated folly to agencies
whereas such total hiring of agencies for absolute Public Relation functions cannot be
conserved.
Public relations are a long-term policy measure and are not built overnight. It is also
not free of cost, it is built over a period of time.
“With public opinion against it nothing can succeed”.
“With public opinion on its side nothing can fail”
- Abraham Lincoln
Public relations, taken as a component of management discipline, are of comparatively

recent origin. As a concept, it was critically evolved in business and industry and
subsequently spread to other areas of human activity. Applicability of this professi on
in government and public institutions like corporations, municipalities, universities,
hospitals, social service organization and professional institutions it truly immense.
Admittedly, even before the emergence of industry, business and government, a public
relation was in practice in people’s daily life. In effect, a public relations is the result
of the action inherent in an individual, an institution or an organization.
Public relations are never a private monopoly of PR practitioners. In fact, me mbers of

an organization, and especially those in leadership, management and supervisory
positions have a PR role to play and often even singularly. People adept in the art of
public relations stand better chances of success and survival since they can al ways
52
find areas of mutual interest. They also use modern methods of communication and
persuasion which go a long way in establishing mutual understanding based on truth,
knowledge and complete information.
THE SIGNIFICANCE OF PR IN HUL
It may be useful to begin by first getting out of the way certain popular notions which,
as with many popular beliefs are either without any basis in reality or at best express
only half truths. For instance, PR men are regarded by some to be fixers, a breed of
people who will wangle things for you by the most questionable methods. There is
also a popular idea that PR men spend most of their time winning and dining, using
for the purpose fabulous expense accounts they are supposed to have access to. While
no one can prevent a charlatan from posing as a PR man or styling himself as a PR
consultant he is no more a tine practitioner of PR than a quack selling magic remedies
by the wayside is a physician. How deep-seated such popular misconceptions about
PR can be reflected by the fact the even now one comes across articles published in
well-known papers and journals airing such naive ideas about PR.
Again, PR is sometimes confused with publicity. Publicity is certainly one of the

instruments of PR but is would be as wrong to equate publicity with PR just as it
would be to equate the stethoscope with the practice of modern medicine. To continue
the analogy, PR seeks to diagnose the ills of an organization in its relations with the
public or any segment of the public, it prescribes remedies and proceeds to administer
them. It then keeps a watch on the patient to see whether the remedies prescribed are
producing the desired effect so that the medicine can be changed if necessary after
evaluating the results. Again, as in medicine prevention is considered more important
than the cure, PR believes in maintaining the good health of the corporate body -so
that drastic remedies and bitter pills may not have to be swallowed later.
Analogies may be useful in giving a general idea but c an never be as precise as a

definition. PR which is now a well-established discipline therefore needs to be
defined so that we may be clear about what we are discussing when we talk about PR.
It is ‘the attempt by information, persuasion and adjustment to engineer public support
for an activity, cause movement or institution. ‘Public relations as and applied social
53
and behavioral science is that function which - measures, evaluates and interprets the
attitudes objectives for increasing public understandin g and acceptance of the
organization’s products, plans, policies and personnel; equates these objectives with
the interests, needs and goals of the various relevant publics; and develops, executes
and evaluates a programmed to earn public understanding and acceptance.
GOVERNMENT RELATIONS
Government relations have two facets to it. First the PR for the government (as an organization)
and second, PR with the governments as the target group. Both are important and very needed by
corporations.
Public relations for the government involves mobilizing public support for government’s
activity, for instance, family planning, control, environmental protection, beautification of cites,
etc. the company generally sponsors some of these activities by providing monetary help or
other resources. The basic objective of the company is to build relations with the governments,
and also help for the good of the community of society.
Public relations with the government involves keeping the government—politicians and
bureaucrats—on your side. It envisages maintaining good links with the government which will
be of benefit to the company in its overall business plans and operations. Public relations with
the government in some ways are quite difficult and demanding. It requires special planning and
efforts for the organization to be successful. A government, local or national, comprises many
ministries, departments, individuals and personalities. Public relations people have to acquaint
themselves with the working of the government, and the intricacies and people involved at
various levels, and then handle things accordingly to be able to achieve what they have set out to
achieve.
The government should not be looked at as an adversary. In fact, you should make all efforts to
help the government and support its activities and policies as far as possible. Government
leaders must be kept informed from your side about the organization’s activities and policies—
especially those which are contributing to the welfare and development of the state or the nation.
Such relations will be mutually beneficial in the short-term and the long-term. Corporations
should, however avoid getting involved with politics and political issues.
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MEDIA RELATIONS
Media relations Is a vital tool in PR. A large amount of communications and PR are conducted
through the media—especially the Press. When a company gets media coverage, it is not always
flattering. Business is always vulnerable to attacks by the media. Media can often aggravate
problems—especially crises. As in the case of Union Carbide and HLL a few years ago.
Hence, media, particularly the Press has to be handled very carefully. The media must be kept
on your side. All efforts must be made to ensure this strategically. It takes years to build a good
image, but to destroy it you need just a few bad reports in the media.
It is important to build a working ‘rapport’ with the media. You cannot afford unnecessary
reactions and distortions. If you do go to the media then always go with a strategy—be selective
in the choice of media, use only influential media (especially publications in the Press), do not
spread your communication too thin, go for quality rather than quantity. Selective and in-depth
coverage is what you must aim at, as it is more effective and produces the desired results. let
your communication be complete honest, and backed with hard facts. The organization must be
able to live up to its claims and promises in media, otherwise you can be in for further problems.
The efforts made by HLL in this respect have been orchestrated well to build image as well as to
counter negative publicity.
FINANCIAL RELATIONS
With the growth of the Indian economy and the business sector, management of financial
promotions and PR have taken on a new dimension. HLL is making special efforts to ensure the
goodwill of their shareholders, investors, financial institutions, and the rest of the financial
community. This is being done in the mass media and specialized media ranging from annual
reports to special brochures to audio-visuals, video films, and even corporate advertising in the
Press and television.
The main target group of a company in financial PR is its shareholders and potential investors.
They have to be given information they are entitled to have, and they have to be kept interested
in the company. Public relations must establish, maintain, and improve the company’s image
and reputation so that it can obtain funds from the public and the financial institutions on the
55
most favourable terms when it desires so The financial and business Press, today, is very
important in achieving this objective,
The importance of financial PR and the need for it is seen from the number and growth of PR
agencies specializing in financial promotion, advertising and PR management in India. These
include well-known names like Pressman, Clea, and Sobhagya, now a host of others. They
provide their clients a wide range of services and expertise in PR and advertising.
CUSTOMER RELATIONS
In the past PR and marketing were considered separate and unconnected activities of business ‘in
a company. Today, PR has a role to play in marketing not only to build image, but to also help
solve problems concerning a company’s products
or services among consumers or other special groups, and generally protecting the company’s
reputation at the marketplace. Public relations with customers, and with suppliers, in industrial
products/services marketing at the institutional level are gaining more and more importance
today.
In today’s competitive market customers opt for products that are known and have an image, and
are backed by quality and good after sales service. Public opinion on such aspects cannot be
ignored by marketing people. In the long run, unfavorable opinions certainly affect sales. Public
relations can help in controlling and setting right some of these opinions; it is therefore essential
for companies to assign some of their attention and resources to develop PR in marketing.
COMMUNITY RELATIONS
Today, the relationship between corporations and the community is a vital issue in management
of business organizations. It is acknowledged that business is no longer done for the sake of
profits alone. Because a company functions within a community, its responsibility extends to
giving back to the community something for what it makes from it. This has been the
56
philosophy of the Tatas in India for years; today it is accepted and is being followed by a number
of other companies. This belief is now also considered important and crucial by the government,
consumerists and opinion leaders. Company relations at an organization can vary from local
Community welfare activities, to large scale sustainable development programmers for the
betterment of lives of people. Companies have to consider the community as one of its prime
target groups. The objective of PR is to help build image of the company: as a good corporate
Citizen, a good company to do business with, and a good company to work for.
EMPLOYEE RELATIONS
In employee relations, communicators are vital at every level. From top to bottom, also from
lower level to the top management level, and even the horizontal communications among
colleagues at the same level and between functions. The basic function of communications and
PR in the organisation is not just better functioning, but a fostering of goodwill, trust, and
togetherness among employees.
INDUSTRIAL RELATIONS
This is another important area of work for PR executives. Its importance is growing, with staff
and workers getting to be united, more enlightened and demanding. Whether they are unionised
or not does not make a difference in the PR work; in either case, good relations have to be
maintained. In the case of unions, it Is important to realise that unions have their own goals.
This makes it more difficult to deal with them in many respects. Understanding these goals, and
how they will affect Industrial relations and PR efforts, is the first priority in dealing with unions.
P&G: ADVERTISING STRATEGY
We take pride in developing strong ties to the communities in which we live and work and are
focused on helping children in need around the world live, learn and thrive.
57
P&G Chemicals is committed to providing your business with consistently high-quality
oleochemicals.
P&G Commercial Products supplies a variety of businesses with P&G cleaning, laundry, and
coffee, tea and snack products.
P&G EDI provides easy access to electronic data that is of value to prospective and current P&G
retail customers, transportation carriers and financial institutions.
P&G Food Ingredients help formulators create great tasting, better-for-you products by
developing functional ingredients that reduce fat and calorie profiles, lower cholesterol effects
and improve heart health.
The P&G Legislation & Regulatory group delivers accurate and timely information to
representatives of industry trade groups, legislators and government agencies.
The Retail Customers group assists the Company's trade partners and representatives of retailers.
For current and prospective suppliers, P&G provides a Supplier Portal Web site that offers easy
access to a variety of information.
P&G is actively searching for the next game-changing products, packaging, technologies,
processes and commercial connections that can improve the lives of the world's consumers.
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P&G's Tremor division designs and implements customized word-of-mouth marketing programs
for both internal brands and external clients. Tremor programs leverage national panels of
250,000 teens and 450,000 moms to deliver outstanding business.
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LITERATURE REVIEW ABOUT FMCG SECTOR
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.
Penetration level as well as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential.
Burgeoning Indian population, particularly the middle class and the rural segments, presents an
opportunity to makers of branded products to convert consumers to branded products. Growth is
also likely to come from consumer 'upgrading' in the matured product categories. With 200
million people expected to shift to processed and packaged food by 2010, India needs around
US$ 28 billion of investment in the food-processing industry.
Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth
and change in demand patterns, leading to an explosion of new opportunities. Around 60 per cent
of the population in India is below 30 years of age and the young population is set to rise further.
Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a
latent demand with more money and a new mindset.
The importance of consumer sales promotion in the marketing mix of the fast moving consumer
goods (FMCG) category throughout the world has increased. Companies spend considerable
time in planning such activities. However, in order to enhance the effectiveness of these
activities, manufacturers should understand consumer and retailer interpretations of their
promotional activities so that appropriate differentiation can be used.
Retailers stated that role of word of mouth and television advertising was very important in
providing information inputs to the consumers regarding sales promotion activities. This
perception of retailers was supported by the consumer unaided recall of sales promotion schemes
which were widely advertised.
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The research concludes with the discussion of the results, managerial implications limitation of
the study and future research directions.
2.1) Review of Literature:

Research Paper:
Dr. Surinder Singh Kundu."Customers’ Perception towards the Fast Moving Consumer Goods
in Rural Market: An Analysis", International Journal of Techno-Management Research, Vol. 01,
Issue 02, September 2013 - Dr Kundu observed that a consumer sets a frame of references in
his/her mind to choose or purchase a product or service of same or different brands or producers.
Keeping in view the frame of references the present paper is an attempt to study the factors
affecting the purchase decision of consumers towards purchase of the Fast Moving Consumer
Goods (FMCGs) and to recommend the policies which may be adopted by the advertisers to
enhance awareness among the rural buyers. The study used primary data collected from a sample
of 1000 rural consumers from the 40 villages of 04 districts of Haryana state with the help of a
well-structured questionnaire by following "Foot-in-Door Strategy" (FIDS) and found that rural
buyers perceived that TV commercials followed by print advertisements and word of mouth
plays a significant role for taking the decision to purchase these FMCGs. Further, they consider
their own experience, display at shops; incentive schemes for the purchase of these FMCGs,
whereas they do not fully agree that advice of beautician influences their decision towards the
purchase of these FMCGs. On the other hand, rural buyers perceived that social factors are not so
strong that those may influence their decision to purchase these FMCGs. Hence, it may be
recommended that the producers or marketers should frame ethical advertising strategies keeping
in mind that rural people are fond of electronic and print media advertisements.
Pravin Kumar Bhoyar, Asha Nagendra."Effectiveness of FMCG Distribution Channels with

Respect to Satisfaction of Consumers in Rural Markets", Indian Journal of Marketing, January 1,
2012, Volume 42, Issue 1- Praveen and Asha suggest that distribution is the most important
variable in the marketing plans of most consumer goods manufacturers. It is estimated that there
are over a million market intermediariesdistributors, super-stockists, wholesalers, stockists,
transporters and retailers - who are involved in the distribution of a variety of consumer goods all
over the country. This study focuses on the effectiveness of FMCG distribution channels with
respect to the satisfaction of consumers in the rural market. Two companies - Hindustan Unilever
Limited (HUL), and Godrej Consumer Products Limited (GODREJ), which are pioneers in Fast
Moving Consumer Goods (FMCG) in the rural market were selected to study their distribution
channels in 2 rural districts of Maharashtra. Two different questionnaires were designed - one for
channel members, and the other for rural consumers. Results revealed that there are two distinct
segments of consumers in the rural markets. One set who cannot read, write or understand with
ease. They do not buy branded products. They have their own method of identification of
products and communication with the retailers. Rarely do they purchase branded packaged
goods. The other set was the slightly educated ones, who bought branded products and demanded
range in products. The study also revealed that there were limited stocks of products at village
retailers; hence, customers had to wait for some days. So, it compelled them to travel outside
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their villages to meet their demands. The effectiveness of FMCG distribution channels in rural
markets depended upon the satisfaction of the rural customers. Since there was either poor
quality or prevalence of duplicate brands in the rural market, rural customers were not getting
good quality and authentic brands in the rural market of Sangli and Kolhapur districts. Hence, it
was proved that the existing FMCG Channels of Distribution in Rural Maharashtra did not serve
the customers well. This research was done between January 2009 and December 2009.
Md. Abbas Ali, Venkat Ram Raj Thumiki and Naseer Khan."Factors Influencing Purchase of
FMCG by Rural Consumers in South India: An Empirical Study" International Journal of
Business Research and Development, Vol. 1 No. 1, pp. 48-57 (2012) - Md Abbas , Venkat and
Naseer observed that with more than six hundred thousand villages and more than 70% of the
population, rural India has become a massive consumer goods market. FMCG has emerged as a
major product category in rural consumption. Companies marketing FMCG to rural consumers
cannot merely extend their general marketing strategies to rural markets. Instead, they need to
devise rural specific strategies. In this process, they need to understand crucial issues relating to
rural consumer behavior and more specifically relating to different geographic regions of the
country. This paper focuses on understanding factors that affect the rural purchase of FMCG in
South India. Empirical study was conducted in 8 districts of South India to identify the key
influencing variables. Factor analysis was used to form 24 key variables into five groups
(influencing factors). Influence of retailers’ recommendations has emerged as the most
significant variable in the trust factor. According to the study, rural consumers in South India
consider that usage of FMCG contributes to their lifestyle.
Panichukunnath Ajith “3P Framework : Rural marketing in India”, SCMs Journal of Indian
Management , January-March 2010 – Ajith Panichukunnath (2010) has emphasized on the 3ps of
marketing viz push marketing, pull marketing and pull up marketing. Taking into account the
retailers of rural India push and pull strategy may be very effective and create very good impact
in the market. As the rural traders are not receiving equal importance as the urban one. The rural
market is heterogenous and only a retailer is brand ambassador of the marketer towards the rural
consumers. If such brand ambassador is trained and forced to convert goods onto cash then a
firm can enjoys leadership in rural and urban India both.
Mishra Kumar Arvind , Pallavi “Rural Marketing in India Opportunities and Challenges”
Advertising Express , April 2010 – Arvind Kumar Mishra (2010) draws an attention towards non
availability of product, lack of proper communication and ignorance of rural consumer’s
expectation in terms of offerings. Many multinational companies have achieved very good
market share in small value products but in case of high value products it requires more efforts
and courageous steps in terms of setup of separate network, deep distribution system, and better
customer service specifically after sales and even before sale.
Prahalad, CK. “Nobodies the New Somebodies”, Economic Times, 6 th Jan, 2010, p 29 –
Prahalad (27) observed that in many products, because the unit packs are small, and even
expenditures are small, if people are not satisfied, they can now switch brands. They’ll switch
either if they’re not satisfied or better value is available. A lot of poor consumers are willing to
pay for quality. Therefore, companies have to learn that quality is a critical component of the
brand promise. That is a big shift in India for the last 7-8 years.
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Tran, Q. and Cox, C. Advances in Business Marketing and Purchasing, Emerald Group
Publishing Ltd, 2009, pp 115-194- The retailers are often seen as irrelevant to the source of
brand value, resulting in manufacturers not targeting retailers to help them build stronger brands.
Tran et al (11) observed that potential occurs, therefore, for some channel conflict to exist
between manufacturers and retailers. On the one hand, retailers tend to focus on building their
own, private brands to differentiate themselves from other retail competitors and to increase their
power in relation to manufacturer brands. At the same time, most retailers still need to create a
good image in the consumer marketplace by selling famous, manufacturerbranded products. In
other words, retailers often have to sellfamous brands even if they would prefer to sell other
brands including their own. Manufacturers tend to focus their brandbuilding efforts on the
consumer market to entice consumers to insist that retailers stock their brands, rather than
placing any real emphasis on building a strong and positive brand relationship with the retailer
directly.
Garga Pawan (2009), “Rural Marketing of Select Fast Moving Consumer Goods in Punjab,”
Indian Journal of Marketing, vol. XXXIX, No. 5, May, pg21-27- Garga Pawan (2009) 44, in his
study concluded that, instead of smaller packages, medium packages were reported to be the
most preferred with only exception of shampoo. From testing of hypothesis relationship was
observed to be existing: between consumer’s purchase decisions on the basis of price and the
select FMCG product categories; consumer opinion about inferior quality of loose products and
district of respondents; consumer’s opinion about the quality of products stocked by rural retailer
and district to which they belong; rural consumer’s trust on the matter of the advertisements and
the different districts. It is recommended that neither rural Punjab should be treated as single
homogeneous market nor different FMCG products categories be planned in a similar manner.
Specific marketing strategies based on the different elements of Marketing Mix have also been
developed in the paper.
Annapurna, MY. “Marketing to the Indian Rural Consumers”, Marketing Mastermind, May
2009, p 35-39- The key challenge that companies face in the rural market is to identify and offer
appropriate products without hampering the company’s profitability or margins. Annapurna (19)
found that the companies should recognize that rural consumers are quite discerning about their
choices and customize products and services accordingly. The products should not only be made
available at the right time and right place but should also be affordable and acceptable to the
rural people. There is lack of proper transportation facilities and logistic services, implementing
appropriate marketing communications and challenge in training the sales force to make them
understand the rural mindset and motivating them to go and work in the villages.
Vijayraghvan, K. “Future Group Boycotts Cadbury, Clashes with MNC Confectionery Maker
over ‘Pricing Discrimination’ Vis-AVis Foreign Retailers”, the Economic Times, Pune Edition,
3rd Jun 2008, p 1- The main reasons for conflict between manufacturers and retailers are that the
manufacturer is not cutting uniform deals with all retailers and is giving better deals to
international retailers who may have larger stakes in global markets and has better deals with
international retailers where there are larger stakes involved. Vijayraghvan (9) observed that the
company’s conditional terms remained unacceptable, offering fill rates (stocks on shelf) of only
65%. Such terms are unfair, especially when they have to pay the rent for the entire shelf space
63
to the developer. Another reason is the company has also been insisting on payments only after
an external audit which, for retailers who buy and sell and not really stock up, is unacceptable.
Sangameshwaran, P. “HUL Provides Back- end Support to Distributors -Outsourced Logistics

Services to Ease Distributor Burden”, the Economic Times, 29thJul 2008, p4 - To remove the
conflict between the manufacturer and its distributors, the consumer goods giant Hindustan
Unilever (HUL) has tied up with a third-party logistics service provider to manage the entire
back-end distribution chain on behalf of its distributors. Sangameshwaran (10) reported that the
project is expected to take away a major burden faced by several distributors i.e., managing stock
positions and delivery schedules. The initiative will help the distributor to focus on customers. At
present, a lot of distributors get constrained by factors like concentrating on the backend in areas
like finance, logistics and space management. The task is to create a distributor organization that
is customer facing rather than inward looking. HUL is encouraging its distributors to become
entrepreneurs and run the business as a professional distribution house and take on the onus to
deliver growth.
Seung -Eun, L.,Kim, KPJ.and Sherri, GA. “Small-town Consumers’ disconfirmation of

expectations and satisfaction with local Independent retailers”, International Journal of Retail
and Distribution Management, Emerald Group Publishing Ltd, Vol 36, Issue 2, 2008, p 143-157-
Most of the strategies performed by small -town independent retailers did not meet their local
consumers' expectations. Specially, merchandise assortment and availability, such as offering a
unique and large selection of products, showed the largest discrepancy between respondents'
expectations and retailers' performance, indicating that independent retailers are not meeting
their consumers' needs in these areas. Seung-Eun et al(4) observed that the participants who were
satisfied with their independent retailers, shopped locally, were strongly attached to their
communities, and were willing to support their local independent retailers.
Sarangpani, A. And Mamatha, T. “Rural Consumer Behavior with Regard to Selected FMCGs
Consumption Patterns and Brand Usage: A Study”, the ICFAI University Journal of Brand
Management, Vol. V, No 3, Sept 2008, p 22-61 - There are two distinct segments of consumers
in the rural market. Sarangpani et al (16) studied that one set of rural consumers is less educated
or even illiterate. They cannot read, write or understand with ease. They do not buy branded
products. They have their own method of identification of products and communication with the
retailers. For instance,they ask for Erra Sabbu (for Lifebuoy), Pacha Sabbu (for Nirma), Neeli
Sabbu (for Rin), etc. Rarely do they purchase branded packaged goods and values associated
with them. On the contrary, there is a different segment of consumers, the younger 18-35 years
age group; they are educated, more mobile and have urban exposure. They are brand conscious.
They ask for brands of their choice. Their brand usage and recall rate is comparable to their
counterparts in the urban areas.
Roopa, DB. “Customer Expectation and Perception: A Study of Retail Sector of Haryana
State”, the ICFAI University Journal of Consumer Behaviour, Vol III, No 3, Sept 2008, p 47-54 -
Modern-looking equipments and fixtures, physical facilities, the ambience and store layout are
required up to the mark by the retail stores. Roopa Devi (20) analyzed the consumer behaviour,
their expectations and the services actually provided by retail stores of Haryana. If the retailers of
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Haryana provide high quality merchandise according to the needs and wants of the customer,
then they would be able to satisfy and retain the customers.
Seung-Eun, L.,Kim, KPJ.and Sherri, GA. “Small-town Consumers’ Disconfirmation of

Expectations and Satisfaction with Local Independent Retailers”, International Journal of Retail
and Distribution Management, Emerald Group Publishing Ltd, Vol 36, Issue 2, 2008, p 143-157-
Most of the strategies performed by small-town independent retailers did not meet their local
consumers' expectations. Specially, merchandise assortment and availability, such as offering a
unique and large selection of products, showed the largest discrepancy between respondents'
expectations and retailers' performance, indicating that independent retailers are not meeting
their consumers' needs in these areas. Seung-Eun et al (23) observed that the participants who
were satisfied with their independent retailers, shopped locally, were strongly attached to their
communities, and were willing to support their local independent retailers.
Sridharan, S. and Viswanathan, M. “Marketing in Subsistence Marketplaces: Consumption

and Entrepreneurship in a South Indian Context”, Journal of Consumer Marketing, Vol 25, Issue
7, 2008, p 455-462- The businesses must follow three principles for consumer marketing –deep
understanding of subsistence consumer psychology, social embeddedness, and entrepreneurial
empowerment. Sridharan et al (24) studied the innovative consumer marketing approaches for
simultaneous business success and social empowerment at the bottom of the pyramid (BoP) or in
subsistence marketplaces.
Kucuk, SU. “Can Distribution Explain Double Jeopardy Patterns?”, International Journal of
Retail and Distribution Management, Vol 36, Issue 5, 2008, p 409-425 -There are some
important strategies in order to maximize the efficiency of retailers' stocking decisions and
manufacturers' branding efforts. Kucuk (26) provided clear insights into the influence of product
availability, and thus distribution on double jeopardy (DJ) patterns, for frequently-purchased
products (FPP). He provided an in-depth literature review of DJ, distribution, outof-stock and
consumer behavioral brand loyalty in many marketing and supply chain decisions. The results
indicated that distribution might explain DJ patterns. In addition, distribution might create
behavioral brand loyalty when FPP are widely available (excessive availability) in the market.
Saxena, R. “Dabur Uses Astra to Boost Rural Sales”, Business Standard, 4th Jul 2008. –
Saxena (28) studied how changing retail landscape in the country has compelled FMCG
companies to re-look at their sales and distribution models. FMCG majors tweak their point-of-
purchase presence in modern retail, where their brands enjoy higher off-take. They have
categorized their sales and distribution channels into finer segments, such as key grocers, mass
grocers, chemist, wholesale, small outlet and modern trade. They conduct programme to address
specific needs and expectations of each channel in the areas such as, trade activation
programmes, trade promotion programmes, brand/SKU focus, merchandising and managing
channel conflict.
Kannan KV. “Strategies for Chocolate Companies to Kill Fake Products in Indian Rural
Market”, www.indianmba.comKannan (30) conducted a study which revealed that FMCG
industry loses around 2500 crores annually to counterfeits and pass-off products. The fake
products are affecting the sales of leading brands to the extent of 20 to 30 percent. Top brands in
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India are estimated to lose up to 30 percent of their business to fake products. Besides the loss of
revenue, the leading companies also face the loss in the damage to brand image and brand
loyalty of consumers. It has been found out that fake chocolates and toffees are available in more
number of petty shops for the leading brands.
Sislain.,Eric. and Ahmet, S. “Strategic Sourcing: A Framework and a Case Study”, Journal of
Supply Chain Management, Vol 36, p 4-11 – Sislain (34) reported that many times distributors
are willing to share market related information with suppliers, but some information may be
sensitive in nature and, if shared could place the distributor at risk of opportunistic exploitation
which results in hiding information.
Viswanathan, M. “Understanding Product and Market Interactions in Subsistence

Marketplaces: A study in South India”, Advances in International Management, Vol 20, 2007, p
21-57- Viswanathan(5) examined the marketplace activities of subsistence customers in South
India and presented a picture of the day-to-day behaviors and interactions of subsistence
customers in terms of the products they purchase and their interactions with sellers and outlets.
The method involved observations and in-depth interviews of a variety of buyers and sellers over
several years in urban and rural South India. Needs, products, and market interactions, as well as
typical budgets in subsistence contexts are described. These descriptions are used to derive
broader characteristics of product and market interactions in terms of uncertainty, complexity,
and lack of control; one-on-one interactions; transactional fluidity; and make or buy decisions.
Ramachandran, S. and Gupta, SD. “FMCG Companies Face Kerala Distributors' Ire”,
Business Standard, 4th Aug 2007 – The all India Distributors' Association expressed their
concern by holding the nationwide stir to resist 'fearful situation ahead'. Ramachandran et al (8)
reported that they raised a strong protest with leading fast moving consumer goods (FMCG)
companies for bypassing them and selling their products directly to large retail stores. Making
direct supplies will have a negative impact on the turnover of distributors and all actions of these
companies in destroying conventional traders should be put to an end and the purpose was to
communicate all members of their community in all states in the country, so as to put up strong
resistance to this. If the big manufacturers supply goods directly to monopoly retail outlets, that
too bringing in an unbalanced pricing structure, small and medium traders are sure to be doomed.
Liu, Y. “The Long-Term Impact of Loyalty Programs on Consumer Purchase Behaviour and
Loyalty”, Journal of Marketing, A Quarterly Publication of the American Marketing
Association, Vol 71, No 4, Oct 2007, p 19-35 – Liu (13) examined the long-term impact of a
loyalty program on consumers’ usage levels and their exclusive loyalty to the firm. Using
longitudinal data from a convenience store franchise, the study shows that consumers who were
heavy buyers at the beginning of a loyalty program were most likely to claim their qualified
rewards, but the program did not prompt them to change their purchase behavior. In contrast,
consumers whose initial patronage levels were low or moderate gradually purchased more and
became more loyal to the firm. The findings suggest a need to consider consumer idiosyncrasies
when studying loyalty programs and illustrate consumers’ cocreation of value in the marketing
process.
66
Pradeep, K. “Price Not Key Driver in the Rural Market”, Lecture in New Delhi at Indian
Marketing Summit, www.financialexpress.com, 10 th Jan 2007- In Indian Marketing Summit,
Pradeep (14) emphasized that it would be a bigger mistake to assume that ‘price’ is the key
driver in the rural market. The consumer there often has a higher disposable income than
urbanites. Yet, if he owns less number of durables in comparison to an urban consumer, it’s not
because of price or affordability, but due to other factors, such as infrastructure and availability
of variety of products.
Kumar, S. and Bishnoi, VK. “Influence of Marketers’ Efforts on Rural Consumers and Their
Mindset: A Case Study of Haryana”, the Icfai Journal of Brand Management, Vol. IV, No 4, Dec
2007, p 28-50 - Today marketers need to understand the dynamics of rural markets. To
effectively tap the rural market a brand must associate it with the same things the rural folks do,
yet giving them a feel of modern outlook and expression. Kumar et al (18) clearly brought out
the quantum of impact advertisement makes on rural consumers, so the attempt was likely to
succeed; only the right approach was required. It has been noticed that below-the-line
communication like alternative and innovative ways of communication plays a key role in
building reassurance and trust, and so it is vital. Rural consumers have a very high level of ethos
so all the care should be taken not to hurt them in any form of advertisement. The brand to be
made relevant by understanding local needs.
Public service advertising
The same advertising techniques used to promote commercial goods and services can be used to
inform, educate and motivate the public about non-commercial issues, such as HIV/AIDS,
political ideology, energy conservation and deforestation.
Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and
motivating large audiences. "Advertising justifies its existence when used in the public interest—
it is much too powerful a tool to use solely for commercial purposes."
Public service advertising, non-commercial advertising, public interest advertising, cause

marketing, and social marketing are different terms for (or aspects of) the use of sophisticated
advertising and marketing communications techniques (generally associated with commercial
enterprise) on behalf of non-commercial, public interest issues and initiatives.
In the United States, the granting of television and radio licenses by the FCC is contingent upon
the station broadcasting a certain amount of public service advertising. To meet these
requirements, many broadcast stations in America air the bulk of their required public service
announcements during the late night or early morning when the smallest percentage of viewers
are watching, leaving more day and prime time commercial slots available for high-paying
advertisers.
Public service advertising reached its height during World Wars I and II under the direction of
several governments.
67
Types of advertising
Paying people to hold signs is one of the oldest forms of advertising, as with this Human
directional pictured above
A bus with an advertisement for GAP in Singapore. Buses and other vehicles are popular
mediums for advertisers.
A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station
Virtually any medium can be used for advertising. Commercial advertising media can include
wall paintings, billboards, street furniture components, printed flyers and rack cards, radio,
cinema and television adverts, web banners, mobile telephone screens, shopping carts, web
popups, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers,
sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight advertisements on
seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens,
musical stage shows, subway platforms and trains, elastic bands on disposable diapers,doors of
bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the
opening section of streaming audio and video, posters, and the backs of event tickets and
supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a
medium is advertising.
68
Television
Main articles: Television advertisement and Music in advertising
The TV commercial is generally considered the most effective mass-market advertising format,
as is reflected by the high prices TV networks charge for commercial airtime during popular TV
events. The annual Super Bowl football game in the United States is known as the most
prominent advertising event on television. The average cost of a single thirty-second TV spot
during this game has reached US$3 million (as of 2009).
The majorities of television commercials feature a song or jingle that listeners soon relate to the
product.
Virtual advertisements may be inserted into regular television programming through computer
graphics. It is typically inserted into otherwise blank backdropsor used to replace local billboards
that are not relevant to the remote broadcast audience. More controversially, virtual billboards
may be inserted into the background where none exist in real-life. This technique is especially
used in televised sporting events Virtual product placement is also possible.
Infomercials
An infomercial is a long-format television commercial, typically five minutes or longer. The

word "infomercial" is a portmanteau of the words "information" & "commercial". The main
objective in an infomercial is to create an impulse purchase, so that the consumer sees the
presentation and then immediately buys the product through the advertised toll-free telephone
number or website. Infomercials describe, display, and often demonstrate products and their
features, and commonly have testimonials from consumers and industry professionals.
Radio advertising
Radio advertising is a form of advertising via the medium of radio.
Radio advertisements are broadcasted as radio waves to the air from a transmitter to an antenna
and a thus to a receiving device. Airtime is purchased from a station or network in exchange for
airing the commercials. While radio has the obvious limitation of being restricted to sound,
proponents of radio advertising often cite this as an advantage.
Press advertising
Press advertising describes advertising in a printed medium such as a newspaper, magazine, or

trade journal. This encompasses everything from media with a very broad readership base, such
as a major national newspaper or magazine, to more narrowly targeted media such as local
newspapers and trade journals on very specialized topics. A form of press advertising is
classified advertising, which allows private individuals or companies to purchase a small,
narrowly targeted ad for a low fee advertising a product or service.
69
Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers. Examples of online
advertising include contextual ads that appear on search engine results pages, banner ads, in text
ads, Rich Media Ads, Social network advertising, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.
Billboard advertising
Billboards are large structures located in public places which display advertisements to passing
pedestrians and motorists. Most often, they are located on main roads with a large amount of
passing motor and pedestrian traffic; however, they can be placed in any location with large
amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office
buildings, and in stadiums.
Mobile billboard advertising
The RedEye newspaper advertised to its target market at North Avenue Beach with a sailboat
billboard on Lake Michigan.
Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on
dedicated vehicles built solely for carrying advertisements along routes preselected by clients,
they can also be specially-equipped cargo trucks or, in some cases, large banners strewn from
planes. The billboards are often lighted; some being backlit, and others employing spotlights.
Some billboard displays are static, while others change; for example, continuously or
periodically rotating among a set of advertisements.
70
Mobile displays are used for various situations in metropolitan areas throughout the world,
including:
 Target advertising
 One-day, and long-term campaigns
 Conventions
 Sporting events
 Store openings and similar promotional events
 Big advertisements from smaller companies
 Others
In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes placement of a

product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout
counters, eye-catching displays promoting a specific product, and advertisements in such places
as shopping carts and in-store video displays.
Covert advertising
Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded
in entertainment and media. For example, in a film, the main character can use an item or other
of a definite brand, as in the movie Minority Report, where Tom Cruise's character John
Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch
engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where
main character played by Will Smith mentions his Converse shoes several times, calling them
"classics," because the film is set far in the future. I, Robot and Spaceballs also showcase
futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the
vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result
contained many scenes in which Cadillac cars were used. Similarly, product placement for
Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond
films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main
transport vehicle shows a large Dodge logo on the front. Blade Runner includes some of the most
obvious product placement; the whole film stops to show a Coca-Cola billboard.
Celebrities
This type of advertising focuses upon using celebrity power, fame, money, popularity to gain
recognition for their products and promote specific stores or products. Advertisers often
advertise their products, for example, when celebrities share their favorite products or wear
clothes by specific brands or designers. Celebrities are often involved in advertising campaigns
such as television or print adverts to advertise specific or general products.
The use of celebrities to endorse a brand can have its downsides, however. One mistake by a
celebrity can be detrimental to the public relations of a brand. For example, following his
performance of eight gold medals at the 2008 Olympic Games in Beijing, China, swimmer
71
Michael Phelps' contract with Kellogg's was terminated, as Kellogg's did not want to associate
with him after he was photographed smoking marijuana.
CHAPTER -3
72
RESEARCH METHODOLOGY
Research in common terms means a search for knowledge. It can be said a

journey of discovery i.e. from something known facts to find an unknown fact.
According to D. Slesinger and M. Stephenson in the Encyclopaedia of Social
Sciences “ Research is the mani pulation of things, concepts or symbols for the
purpose of generalizing to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art.”
Identification of research design

Descriptive research is the research that is carried mainly :
 To describe the characteristics or functions of relevant groups such as
organizations, consumers, market areas.
 To determine the perceptions of product characteristics.
 To make specific prediction.
In Descriptive research it is assumed that the researcher has prior information

about the problem situation. In it prior formulation of specific hypothesis is
73
there so the information needed is clearl y defined. It is pre planned and
structured and involves the detailed information need and the data is quantified
in it.
The research used in this study is Descriptive Research as:

 The topic is Understanding the attitude towards customer satisfaction
(after)ADVERTISEMENT..
(Descriptive research is used to describe a characteristic of any group.)
 In this research satisfaction of customers is reviewed based on the Price,
Qualit y, Delivery ti me, & response time by the FMCG companies.
 The study is descriptive on the ground as in descriptive study one studie s
something based on any existing fact and the information is collected on
the basis of the problem, that has to be studied, regarding which prior
information is there.
 In this study customer satisfaction is reviewed on the main parameters of
product i.e. customer satisfaction. Thus a particular perception of
customers is studied on a particular parameter which is important in
product for its performance in m arket.
Thus in this study the research is done on the existing fac t on overall
Advertisement qualit y of FMCG companies and to find how much the customers
are satisfied from the different companies in terms of their overall
Advertisement quality.
The population in this study:

 The population is of all Fmcg Product users of different FMCG
companies.
The Sample in this study is:

 Customers who So ever Used any Fmcg product of any known fmcg
company.
74
The sample design that is used in this study i s Non probability sampling.
 Non probabilit y sampling is used as the customers were selected and
questions were asked from them as they have used any product of different
FMCG companies. As there are so many Products varients of different
FMCG companies, there was equal chance of every fmcg company to be
selected for survey.
(Non probabilit y sampling is a technique which necessaril y does not make
any criteria that each item will have the same probabilit y to be included in
the sample as it is in probabilit y sampling.)
Collection of data
The task of data collection is done after research problem has been identified
and the research design has been chalked out.
There are two t ypes of data which is to be kept in mind while deciding the
method of data collection for the study. The two t y pes of data are Primary Data
and Secondary Data.
 Primary data: Primary data is the data which is collected for the first time
and is fresh and is original in character.
 Secondary data: Secondary data is the data which is already available and
has been coll ected by someone else and has passed through statistical
process.
TYPE OF RESEARCH- Descriptive Research.
The data used for this purpose would be both primary and secondary data.
METHOD OF DATA COLLECTION-

---Questionnaire surveys
75
SAMPLING PROCEDURE-:I have taken simple random sampling procedure during my
research.
Sample size- 150
Sample area- GREATER NOIDA
76
77
Question-1- What is the age of the respondents?
PARTICULARS NUMBERS
15-20 36
20-25 43
25-30 31
ABOVE 30 40
TOTAL 150
40 36
15-20
20-25
25-30
32 43
ABOVE 30
INTERPRETATION
*In above figure we see that 43 respondents are in the age of 20-25, 36
between the age of 15-20, 32 between the age of 25-30, 40 respondents
are above 30 age.
78
QUESTION -2 –Gender of the Respondents.
A- MALE [64] B- FEMALE [ 86]
Gender Numbers
Male 64
Female 86
Total 150
64
MALE
FEMALE
86
INTERPRETATION
*In above figure we can see that 86 (57%) respondents are female and
64 (43%) are male respondents
79
QUESTION 3- WHAT OCCUPATION YOU BELONG To ?
Answer-
A- PROFESSIONAL[40] B- STUDENT [65]
C- BUSINESSMAN[15] D- OTHERS[30]
Occupation Response
Professional 40
Student 65
Businessman 15
Others 30
30
40
15 PROFESSIONAL
STUDENT
BUSINESSMAN
OTHERS
65
INTERPRETATION
*In above Figure there is maximum number is of students i.e. 65
(43%),after that 40 (27%)are professionals , after that 30 are from other
groups ,and 15 respondents are from business field.
80
Question-4- Have you ever bought a FMCG product due to Satisfaction
by the Advertisements?
Answer-
Response NUMBER
YES 90
NO 60
TOTAL 150
Graphical Representation-
60
90 Yes
No
INTERPRETATION
*In above figure we can see that 90 (60%) people says that yes they
purchase product because they are satisfied with advertisement and 60
(40%) people says no they don’t buy any product due to satisfaction by
ads.
81
Q. 5- Do you like FMCG product advertisement during the programs
you watch?
Answer-
Options Response
Yes 40
No 60
Sometime 50
Total 150
Given in below Graph
60
60
50
50
40
40
30
20
10
0
YES NO SOMETIME
Response
INTERPRETATION
*In above figure we can see that 60 people says that they don’t like
advertisements during they watch any programs, 40 people likes the ads
during programs , and rest says sometimes.
82
Question 6- What type of advertising do you like ?
Answer-
Advertisement Type Response
Emotional 50
Motivational 60
Others 40
Total 150
Graphical Representation:-
60
60
50
50
40
40
30
20
10
0
Emotional Motivational Others
Responses
INTERPRETATION
*In above figure we can see that maximum people likes motivational
advertisement i.e. 60 people , 50 people says they like emotional ads and
40 people says the like every type of ads.
83
Question 7- From which source of advertising you most likely get the
information about FMCG Products ?
Answer-
Source Response
Television 55
Newspaper 35
Radio 10
Others 50
Total 150
60
50 55
50
40
30 35
20
10
10
0
T.V. News Paper Radio Others
Responses
INTERPRETATION
*In above figure we see that 55 people says that they mainly watch
advertisement on televisions, 35 people says news paper , 10 says radio
,and rest says from other sources.
84
Question 8- Which FMCG product you mainly buy due to advertisement.
Answer-
Product Response
Beverages 60
Soap & Detergent 20
Toothpaste 10
Food 50
Others 10
Total 150
Graphical Representation:
50
60 Beverages (60)
Soap&Detergent
(20)
10 Toothpaste(10)
Others (10)
10 20
Food (50)
INTERPRETATIO*in above figure we can see that 60 people says that

they buy beverages due to advertisement.
85
Question 9- From where you Normally buy FMCG products
Answer- Given In table below.
Place Response
Local Market 37
Spencer 12
Vishal Mart 08
Reliance Fresh 16
Others 27
TOTAL 150
27 37 Local Market
Spencer
16 08 12
Vishal Mart
Reliance Fresh
Others
INTERPRETATION
*In above figure we can see that maximum number i.e. 37 peoples buy
product from local market, 12 from spencer , 08 from vishal mart, 16
from reliance fresh , 27 from other shops.
86
Question 10- Have you ever Switch the product due to advertisement?
Answer-
Options Response
Yes 95
No 55
Total 150
55
YES
95
INTERPRETATION
*In above figure we can see that 95 people says yes they switch products
due to advertisement, and rest 55 people says that they never switch
product due to advertisement.
87
Question 11- Which FMCG Company product you prefer more?
Answer-
COMPANY PERCENTAGE
HUL 52
P&G 39
Patanjali 42
Others 17
Total 150
Company
17
52
42
HUL
P&G
Ptanjali
39
INTERPRETATION
*In above figure we can see that 52 people says they mainly prefer
HUL product, after that 39 peoples prefer p&g , after that 42people says
that they prefer patanjali , and rest says others.
88
Q. 12- Which FMCG Product’s advertising do you like the most?
Answer-
Product Response
Cold Drinks 30
Detergent 20
Toothpaste 30
Cosmetics 40
Toilet Soap 30
Total 150
150
120
90
60
30 40
30 30 30
20
0
Cold drink Detergent Toothpaste Cosmetics Toilet soap
Products
INTERPRETATION
*In above figure we see that 40 people likes cosmetic advertisement,30
people like coldrinks ads , 20 likes detergent ads, 30 likes toothpaste ads,
and 30 likes toilet soap ads.
89
QUESTION-13- Do you think companies have to do more about their
advertisement of product?
Answer-
Options Response
YES 80
NO 50
DON’T KNOW 20
TOTAL 150
Graphical Representation-
20
80 YES
50
NO
DON’T KNOW
INTERPRETATION
*In above figure we see that 80 people says that yes companies has to do
more about there advertisement of the product, 50 people says no
companies has not to do more advertisement and rest of them says they
don’t know.
90
QUESTION-14- How FMCG products advertisements are beneficial for
you as a customer ?
ANSWER-
Options RANKS
58
Create Awareness
30
Information about the new product
40
Create brand image
22
Support purchase decision
150
TOTAL
GRAPHICAL PRESENTATION
22
CREATE AWARENESS
58
INFORMATION ABOUT NEW
PRODUCT
40 CREATE BRAND IMAGE
SUPPORT PURCHASE
DECISION
30
INTERPRETATION
*In above figure we can see that 58 peoples says that advertisement
creates awareness , 30 people says they get information,40 people says it
creates brand image and rest says it support purchase decision.
91
QUESTION-15- Do you think as a customer that celebrity endorsement is
necessary for FMCG product advertisement ?
ANSWER-
OPTIONS RESPONSE
YES 81
NO 42
CAN’T SAY 27
TOTAL 150
Sales
0
27
YES
NO
81 CAN'T SAY
42
INTERPRETATION
In above figure we can see that 81 peoples says that yes celebrity
endorsement is necessary for FMCG product advertisement ,42 people
says NO and 27 people says can’t say.
92
CHAPTER-4
93
FINDINGS
Following Are the Findings of My Study on this Topic:
 Problem solving and strategic planning experience having worked closely with sales
teams to generate insights to retain and grow customers. Client side and agency
experience across a range of service and FMCG companies.
 Creation of ‘Less gassy’ campaign - positive response rate of 55% in mainstream
consumer tests.
 The aim of the study was to quantify the average impact that European ad
campaigns have on traditional branding metrics, and create benchmarks for
categories such as FMCG which has traditionally not embraced the Internet as a
key advertising medium.
 The largest rise will be in the automotive sector with those questioned within
estimating that online will represent 8.7% of total ad spend by 2011, a 123%
increase. FMCG advertisers predict a 59% increase in the share of online ad spend
while entertainment brand advertisers predict a 28% increase.
 People believe that internet is a vital component of their company’s advertising

strategy.
 People say that rising broadband penetration is making online advertising more
attractive.
 The online share of total ad spend will rise substantially over the next two years.
 Perceived lack of research & measurement remains key barrier for advertisers.
94
CHAPTER-5
95
CONCLUSION
Followings are the conclusions drawn out by this research report

o A significant no. of people go for brands while purchasing a FMCG PRODUCT.
o People advocated to the fact that advertising educates a customer.
o People definitely go for impulse purchases while purchasing a FMCG

PRODUCT.
o MAJORITY of people get affected by celebrities and want to use the products
which their favorites use.
o MANY retailers agreed to the fact that advertising boosts the sale of slow moving
items.
o They also advocated the fact that frequently changing advertisements is an

effective way to boost sales.
o They straight forwardly negated the fact that customers have right impact of
advertisement.
o They (retailers) emphasized the importance of point of purchase advertising.
96
RECOMMENDATIONS
While going through this research I found out various inputs of advertising and learnt a lot about
the topic which I would implement in practice during the course of my job. I want to add some
suggestions which are –
Firms should also look to trade promotion in combination with sales promotion as a fitting
alternative to boost their sales.
1. Firms should avoid using celebrities for endorsing their products which involves a high
cost. Instead they should use common people so that the masses get attached instantly.
2. Firms should not extrapolate the features of their products during advertisements.
3. The consumers should use their rational thinking instead of believing on advertisements
while going to purchase any FMCG product.
97
LIMITATIONS
Though fmcg companies seems to be ruling the roost in various segments of household goods
industry, findings suggest that its marketing strategies are not without loopholes. Let us have a
look at these loopholes or limitations in brief.
 One very striking limitations is the fact that even though these products with all-pervasive
marketing and distribution channels, flourishing increasingly in different parts of the world there
appears to be a visible lack of channels providing them substantial access to semi-urban and rural
areas. In other words, the products of fmcg companies have a weaker grassroots bases.
 The availability of these products to common people does not only depend on marketing
network, but also on the advertising strategies adopted . On this count culinary products
 Don’t seem to offer much to create any stir and betray manifest upward trends in terms of
widening consumer base.
 The pricing strategy adopted by fmcg companies shows considerable fluctuation which has led
the consumer base to remain almost stagnant in many segments. Usually, the prices of these
products are too high to make these affordable to the common masses and particularly those
belonging to low income groups. This phenomenon seems to be most evident in culinary goods
segment, which constitutes the backbone of FMCG’s industrial base.
 Agricultural pursuits have not yet attained the status of industrial activities to a considerable
degree. So, the supply mechanism adopted by FMCG products for the raw materials tends more
often to suffer from a kind of unpredictability syndrome in terms of communication and planning.
On certain occasions, the readily available agricultural input is too low to cater to the needs of
manufacturers because ‘cultivation for industrial.
98
CHAPTER –
99
BIBLIOGRAPHY
BOOKS
 Briggs. (1998). "The Big Payoff". Advertising Age, Spring 1998,
 Rein. & Brennan, M. (1997). "The relative effectiveness of sound and animation
in web banner advertisements". Massey University Marketing Bulletin, .
MAGAZINES
 4 Ps
 Business Today
 Business World
NEWSPAPERS
 The Times Of India
 The Economic Times
INTERNET WEBSITE
 www.google.com
 www.hll.com
 www.unilever.com
100
QUESTIONNAIRE
You are invited to participate in a survey. It will take approximatel y 10 -15
minutes to fill the questionnaire.
Your participation in this study is voluntary. There is no foreseeable risk

associated with this project. However, if you feel uncomfortable answering any
questions, you may withdraw from the survey at any point of time. It is very
important for us to learn your opinion. Your survey responses will be coded,
remain strictl y confide ntial and be reported onl y in the aggregate.
Thank You!
Personal Details:-
Name:
Occupation
Question-1- What is the age of the respondents?
PARTICULARS
15-20
20-25
25-30
ABOVE 30
TOTAL
QUESTION -2 - GENDER OF THE RESPONDENTS.
A- MALE [ ] B- FEMALE [ ]
101
QUESTION 3- WHAT OCCUPATION YOU BELONGS ?
Answer-
A- PROFESSIONAL [ ]
B- STUDENT [ ]
C- BUSINESSMAN [ ]
D- OTHERS [ ]
Question-4- Have you ever bought a FMCG product due to Satisfaction

by the Advertisements?
A- YES [ ]
B- NO [ ]
Q. 5- Do you like FMCG PRODUCTS advertisement during the

programs you watch.
A- YES [ ]
B- NO [ ]
C- SOMETIMES [ ]
Question 6- What type of advertising do you like ?
A- EMOTIONAL [ ]
B- MOTIVATIONAL [ ]
C- OTHERS [ ]
102
Question 7- From which source of advertising you most likely get the
information about FMCG Products ?
A- TELEVISION [ ]
B- NEWSPAPERS [ ]
C- RADIO [ ]
D- OTHERS [ ]
Question 8- Which FMCG product you mainly buy due to advertisement.
A- Beverages [ ]
B- Soap & Detergent [ ]
C- Toothpaste [ ]
D- Food [ ]
E- Others [ ]
Question 9- From where you Normally buy FMCG products?
Local Market [ ]
Spencer [ ]
Vishal Mart [ ]
Reliance Fresh [ ]
Others [ ]
103
Question 10- Do you ever Switch the product due to advertisement?
A- Yes [ ]
B- No [ ]
Question 11- Which FMCG Company product you prefer more?
A- HUL [ ]
B- P&G [ ]
C- OTHERS [ ]
Q. 12- Which FMCG Product’s advertising do you like the most?
A- Cold Drinks [ ]
B- Detergent [ ]
C- Toothpaste [ ]
D- Cosmetics [ ]
E- Toilet Soap [ ]
QUESTION-13- Do you think companies have to think more about their

advertisement?
A- YES [ ]
B- NO [ ]
C- DON’T KNOW [ ]
104
QUESTION-14- HOW FMCG PRODUCT ADVERTISEMENT IS
BENEFICIAL FOR YOU AS CUSTOMER ?
A- Create Awareness [ ]
B- Information about the new product [ ]

C- Create brand image [ ]
D- Support purchase decision [ ]
QUESTION-15- DO YOU THINK AS A CUSTOMER THAT

CELEBRITY ENDORSEMENT IS NECESSARY FOR FMCG
PRODUCT ADVERTISEMENT?
A- YES [ ]
B- NO [ ]
C- CAN’T SAY [ ]
105

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G. L.

UNDER THE GUIDANCE OF :- SUBMITTED BY-:

Mr. Anuj Singh Piyush Singh

entitled “ROLE OF ADVERTISEMENT IN FMCG SECTOR” is an authentic

award of any other degree.

Dated: ( PIYUSH SINGH)

MBA 4TH SEMESTER

A truly independent project is a contradiction in terms. Every project involves

a pleasure to acknowledge all of them.

I take this opportunity to convey my Heart filled thanks to my project guide

complete this project.

which will be difficult to overcome without any first-hand experience of business.

ADVERTISEMENT IN FMCG SECTOR” has been done as a completion part of MBA

I whole heartedly appreciated the harmonic atmosphere provided to me by the staff of

According to the American Marketing Association, Chicago adverting is “ any paid

Advertising is a form of persuasive communication with the public.

The objective of Advertising is:-

(1) Inform customers of the goods and services.

(2) Brings out the product use P’s

(3) Calls for or invites people to buy the product

(4) Mass communication

(5) Attract attention

(6) Lousing interest

(7) Building desire

(8) Obtaining action.

How much advertising a given budget and brief will buy.

 That it is vulgar and tasteless; and

 That it exploits consumers and creates unnecessary needs.

The main players

Use it (the advertisers);

Different sorts of advertising

'Display', and 'classified'.

The Advertising Business: Structural Diagram

How much advertising a given budget and brief will buy.

 That it is vulgar and tasteless; and

 That it exploits consumers and creates unnecessary needs.

Here are the main categories of work available:

It is also essential that a good “differentiation proposition” results in a positive word-of-mouth.

- B Dattaram & Co claims to be the oldest existing Indian agency in

- ITC (then Imperial Tobacco Co. Ltd.) launches Gold Flake

- Enter the first foreign owned ad agencies

- Gujarat Advertising and Indian Advertising set up

- Expatriate agencies emerge: Alliance Advertising, Tata Publicity

- LA Stronach's merges into today's Norvicson Advertising

- D J Keymer gives rise to Ogilvy & Mather and Clarion

- LR Swami & Co, Madras

- LA Stronach & Co (India) Pr. Ltd, Bombay starts

- Agency called National set up for American rather than British

- American importers hire Jagan Nath Jaini, then advertising manager

- Beginning of multinational agencies

- BOMAS Ltd (Formerly DJ Keymer & Co Ltd) set up

- J Walter Thompson Co Pr. Ltd formed

Indian agencies, foreign advertising in the thirties

- National Advertising Service Pr. Ltd. Bombay set up

- Universal Publicity Co, Calcutta formed

- Venkatrao Sista opens Sista Advertising and Publicity Services as first

- Indian Publicity Bureau Pr Ltd, Calcutta established

- Krishna Publicity Co Pr. Ltd, Kanpur begins operations

- Studio Ratan Batra Pr. Ltd, Bombay established

- Indian Broadcasting Company becomes All India Radio (AIR)

- Jayendra Publicity, Kolhapur started

- Lever's advertising department launches Dalda - the first major

- The Press Syndicate Ltd, Bombay set up