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    2011

    TYBMM B

    USHA PRAVIN GANDDHI COLLEE OF

    MANAGEMENT

    12/09/2011

    MEDIA BUYING & MEDIA

    BUDGETING

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    Objective of the assignment:

    The objective to undertake this assignment to learn how to launch a new product in

    the market, position the product in the market & how to acquire the market shares .

    At the same time know how team work is necessary for the introduction of a newproduct. Others include:

    Methods for analyzing the best market segments for a firm to enter. Designing the product which is acceptable in the market. New product naming, packaging, distribution channels & geography. Methods for tracking key trends. Positioning new products within the competitive frame. At the same time gathering the practical experiences. Learning how to buy media spaces and do the budgeting properly. New product idea brainstorming techniques. New product idea refinement & concept/product testing.

    INTRODUCTION TO OUR PRODUCT CATEGORY:

    Mobile phones today are a part of our FMCG market.

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    A mobile phone allows calls into the public switched telephone system over a

    radio link. Early mobile phones were usually bulky and permanently installed in

    vehicles; they provided limited service because only a few frequencies were

    available for a geographic area. Modern cellular "cell" phones or hand phones

    make use of the cellular networkconcept, where frequencies are re-used repeatedly

    within a city area, allowing many more users to share access to the radio

    bandwidth. A mobile phone allows calls to be placed over a wide geographic area;

    generally the user is a subscriber to the phone service and does not own the base

    station. By contrast, a cordless telephone is used only within the range of a single,private base station.

    A mobile phone can make and receive telephone calls to and from the public

    telephone networkwhich includes other mobiles and fixed-line phones across the

    world. It does this by connecting to a cellular network provided by a mobile

    network operator.

    In addition to telephony, modern mobile phones also support a wide variety of

    other services such as text messaging, MMS, email, Internet access, short-range

    wireless communications (infrared, Bluetooth), business applications, gaming and

    photography. Mobile phones that offer these more general computing capabilities

    are referred to as smart phones.

    MARKET TRENDS & STATISTICS IN INDIA:

    Mobile Phones in India - Category Analysis

    TRENDS

    With the launch of low-priced mobile phones and attractive tariff plans bythe telecom services providers, mobile phones have become more affordable

    for Indian consumers. As a result, mobile phones recorded volume growth of

    12% in 2009, reaching over 121 million units. In urban markets, increased

    demands for smart phones among young people are driving sales.

    COMPETITIVE LANDSCAPE

    Nokia is the undisputed leader of the Indian mobile phone sector, with 54%of total volume sales in 2009. Nokia benefits form a strong brand image and

    a reputation for high quality products. According to industry sources, Nokia

    has the distinct advantage of having the strongest retail network, with a

    http://en.wikipedia.org/wiki/Cellular_networkhttp://en.wikipedia.org/wiki/Base_stationhttp://en.wikipedia.org/wiki/Base_stationhttp://en.wikipedia.org/wiki/Cordless_telephonehttp://en.wikipedia.org/wiki/PSTNhttp://en.wikipedia.org/wiki/PSTNhttp://en.wikipedia.org/wiki/Fixed-linehttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/GSM_serviceshttp://en.wikipedia.org/wiki/Text_messaginghttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/Infrared_porthttp://en.wikipedia.org/wiki/Bluetoothhttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Bluetoothhttp://en.wikipedia.org/wiki/Infrared_porthttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/Text_messaginghttp://en.wikipedia.org/wiki/GSM_serviceshttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Fixed-linehttp://en.wikipedia.org/wiki/PSTNhttp://en.wikipedia.org/wiki/PSTNhttp://en.wikipedia.org/wiki/Cordless_telephonehttp://en.wikipedia.org/wiki/Base_stationhttp://en.wikipedia.org/wiki/Base_stationhttp://en.wikipedia.org/wiki/Cellular_network
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    presence in almost 90% of retail outlets selling mobile phones. However,

    with the entrance of new companies, such as Micromax, Mifone and

    Karbonn in the mobile phone business, the share of Nokia has droppedsignificantly, from 60% in 2008.

    PROSPECTS

    Since the penetration of mobile phones has already reached saturation levelin urban areas, over the forecast period new demand will be primarily from

    tier II and III cities, and from rural areas. In urban areas there will,

    nevertheless, be a significant replacement market, with consumers upgrading

    to phones with better features. Between 2009 and 2014, the sector is

    expected to increase at a volume CAGR of 11% to reach 205 million units.

    IDC India has published a report on growth of mobile sales in India (for 2009) andhere are some of the relevant data points to track:

    The growth has more or less flat [owing to low sales figure in Q1]in total,101.54 million units of sales were registered.

    Local manufacturers* have grabbed 17.5% market share [from 0.9%, a yearback]

    Only 5 local manufacturers in 2008 and the number stands at 28 now! Nokia market share in India fell from 56.2% share in 2008 to 54.1% in 2009. Samsung Electronics Co. Ltds share rose marginally to 9.7% from 9.5%. LGs share dropped from 7.2% to 6.4%, Of the local manufacturers, Micromax leads the race and holds a market

    share stands of 4.8%.

    Like any market research, take this with a pinch of salt [for instance, Nokia has

    expressed reservations about the research, since IDC didnt take into account itsproduction facility in Chennai, which ships 50% of the manufactured mobile to

    India].

    Nevertheless, this is an interesting result and rise of local companies shows that

    there is a value in local IP [eat this: Micromax Q5 phone is just like

    Blackberry/E71/72 with a far lesser price which BlackBerrys of the world cannoteven match].

    http://www.pluggd.in/mobile/mobile-handset-market-share-india-nokia-leads-while-samsung-beats-motorola-1684/http://www.livemint.com/2010/04/03000444/Local-cellphone-makers-increas.html?h=A1http://www.livemint.com/2010/04/03000444/Local-cellphone-makers-increas.html?h=A1http://www.pluggd.in/mobile/mobile-handset-market-share-india-nokia-leads-while-samsung-beats-motorola-1684/
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    ABOUT OUR COMPANY:

    Our companys name is TECTREE Pvt. Ltd.

    We are new to the FMCG market of mobile phones. We are a professional Company

    which gets the new concept and innovative idea of a mobile handset which has the

    POWER OF HD RECORDING & 3D GAMING 1st time in India we bring to people

    the classy and extraordinary phone which gives them all the features .Hence the name

    simply explains what we are about without any confusion.

    Our company believes in a diverse product portfolio which allows us to meet theneeds of different consumer segments and therefore offers devices across five

    categories i.e. Entry, Live, Connect, Explore and Achieve. These include products

    that cater to first time subscribers to advanced business devices and high

    performance multimedia devices for imaging, music and gaming only by one touch.

    TECHTREE the name means nothing but technology along with a touch of beingenvironment friendly.

    COMPANY LOGO:

    Our company name signifies the technology in

    white colour and tree in black colour

    We have chosen white colour as it contains all the

    other colours in the spectrum, showing that we

    have a positive, well-balanced and optimisticpersonality product .also that we are highly

    individualistic and a loner (unique). We are open-minded and communicate, for

    with white all things are possible.

    And black colour which indicates that are strong-willed, opinionated and

    disciplined. We are too flexible and too independent.

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    MARKETING OPERATONS FOR THE CAMPAIGN

    PRODUCT:

    Our products name is TECHTREEwhich belongs to the FMCG market. Ourproduct is designed for all the people who love to play games (3D) & love to

    capture all the moments of their lives like a movie. This handset of ours actually

    can make people acquire whatever they want on their phones from

    Calling, clicking pictures, playing games involving oneself in it, video recording

    (HD) etc.

    This phone is an extraordinary touch phone which is transparent in colour ( i.e.)

    made of glass and laser keypad , 10 mega pixel camera , app store , 64gb memory ,

    internet service etc .

    Mainly our UNIQUE SELLING PROPOSITION OR USP is that it is an HD

    phone HIGH DEFINITION phone & 3D gaming phone. This is not harmful to theeyes or even to the environment. This phone is really very unique or one of its kind

    in India.

    It's a device that is a pleasure to navigate and filled with cool features, one can

    hardly feel the difference between a laptop and this phone while browsing

    everythings fast and silky. (Apps typically take a second longer to start up than

    they should, though.) It runs a solid handful of apps (simultaneously, if you want)

    without going catatonic. Awesome multitasking UI. The battery life is legit all day

    long. The screen is super solid. Stereo audio. The front camera is mega-awesome,compared to every other phone's front camera (sample in the gallery). You can

    dump music and photos and other files onto the phone via Wi-Fi.

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    PRODUCT PACKAGING:

    This product is basically designed for the people who like to play 3D games &

    high definition video recording and people who enjoy the class and status.

    We will be using an eco friendly packaging box. We will be providing with mobile accessories like : 1pair of Charger 1 set of Sound reduction ear- phones. 1 manual. 1 usb port

    The features of the product:

    Highly attractive in looks Transparent colour Laser keypad 3D gaming facility HD video recording Starch free screen. Feather touch. 10 megapixel camera. With 3G facilities etc.

    PRICE:

    Our product is an highly excusive product so its price is Rs 40,000/-

    So ,the manufacturing of the handset is Rs 7000/- Then the total cost of accessories and the packaging is Rs 3000/- So the total manufacturing cost along with the transport is

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    Rs 12000/- per piece.

    Being a new player in the market we have priced our product high .We are more

    interested in selling bulk quantities along with keeping a higher profit margin. We

    want our price such that the only the higher middle class and rich can afford.Mostly young students are our target and professionals ass they like to try out

    innovations and prestige oriented goods.

    PLACE:

    Proper placing and availability of the product plays an important role in the sales

    of the product. TECTREE will be first launched in metropolitan cities like Mumbai,Delhi, Chennai, Bangalore and Kolkata. It will also be launched in tier 2 cities like

    Pune, Surat, Gurgaon, Noida, Chandigarh, Hyderabad and Jaipur.

    DISTRIBUTION:

    In metro the distribution channel adopted by us is Manufacturer -Consumer. Our

    product will be placed in big malls where in we ourselves will have outlets. Ourproduct will be available only in our shops and nowhere else as its a premium

    product.

    PROMOTION:

    We have adopted different types of promotional strategies while introducing our

    product in the market. We are focusing more on above the line promotion ratherthan below the line promotion.

    Our below the line strategies will include the following:

    Sponsors of the coming season of BIG BOSS Sponsors of coming season of RODIES

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    In tieup with bright advertising for putting up hoardings all over India. Social networking sites.

    Our above the line strategies will be as follows:

    Placing an advertisement on television, magazines and newspaper. Internet advertising Hoardings.

    MARKET SEGMENTATION:

    Market segmentation is divided into 4 compartments:

    Geographic : urban area Demographics : this is further divided into :

    1. Gender: male & female2. Age: 18 - 30 years.3. Income: upper-middle class and rich.4. Occupation: mainly students, bachelors, office goers.

    Psychographics: Here we have divided the people according to theirorientation :

    http://www.google.co.in/imgres?q=market+segmentation&hl=en&biw=1366&bih=595&tbm=isch&tbnid=ZVnKt5Rvjt-0XM:&imgrefurl=http://www.b2binternational.com/b2b-blog/2008/01/16/a-practical-guide-to-market-segmentation-part-3-of-5/&docid=3U-WEvP76y5SiM&w=507&h=230&ei=XG1BTvLjCIa0rAfto8SwBw&zoom=1
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    1. Experiencers ( action oriented ): As they are the people whousually are the 1

    stto try out the new products , they follow fashion

    and fads , mainly they are the ones sitting on social networking sites

    & buy on impulse .

    2. Actulizers (most resource): As they enjoy finer things, receptive tonew ideas, skeptical about ads, readers of many publications and light

    TV watchers.

    3. Achievers (status oriented): they get attracted to premium productand are targets for a variety of products.

    Also we are targeting all the people who enjoy playing games and who want their

    class apart or want to have a prestigious gadget with them.

    Behavioral:

    It is made for People who are experimental, watch television, follow fashion trends,

    will easily accept this product whereas people with conventional backgrounds and

    rigid perceptions will take longer time to accept this body plus feet

    deodorant. Mostly the category of experiencers and actualizers along with

    achievers will buy the product.

    Attitude toward product: Positive, adaptable with new things and young

    generation, new technology.

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    TARGET AUDIENCE:

    We are targeting the double segmentation that is

    male & female of age group of 18- 30. People

    who are open minded and receptive to new ideas.And those who are variety seeking and look for

    comfort. Who are the ones who like to have new

    technologies with them, prestige and status

    oriented who like to play games and who are

    techno freaks. The target audience is young

    youth so we have many the ads which would

    persuade this age group of customers to buy our product.

    Advertising Objectives

    The marketing/advertising objective is to establish TECHTREE as an expert and

    innovative leader in the MOBILE HANDSET market.. It is able to address

    different segments within the market although each segment is distinct in terms of

    its users but it would be very much useful to different segment because of its ease

    use, quality, long term durability, health protection, and its users get expression of

    sophistication, status and prestige and are looked upon as trend setters.

    Communication Objectives:

    - To establish the brand identity of the TECHTREE brand- To effectively communicate the USP of the product- To ensure a high recall value- To persuade prospective customers to change their perspective and shift

    their preference from their current brand to the TECHTREE brand

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    The Advertising Campaign

    We are using aggressive advertising as a part of our campaign. Push

    strategy will help us push our product in the market and in the minds

    of our consumers.

    Our campaign is divided into the launch phase and the post-launchcampaign phase. The launch phase includes first the curiosity phase

    and then the reveal phase which is when the product is actually

    revealed.

    The curiosity phase will basically be used to generate curiosity for thebrand as well as the product. We will be using tvc as a form of our

    advertising campaign to generate curiosity amongst the audience.

    The reveal phase will be when the product will be launched in themarket. The viewer is given complete information about the product

    and the fact that it is now available in the market is clearly

    communicated. This will be done by giving ads in newspapers,

    magazines and also using outdoor advertising like hoardings.

    The post-launch campaign will be a fresh marketing campaign oncethe product has been launched in the market. It will mainly involve a

    consumer-response initiative and the aim will be to further establish

    the brand and brand character. This will comprise of techniques such

    as sponsoring events, giving free samples and carrying out activities

    outside colleges and offices.

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    MEDIA PLANNING:

    We will be launching our product on 1st

    of November 2011.

    We will be having three print advertisements in the national newspapers like

    TIMES OF INDIA, DNA, and HINDUSTAN TIMES. where in we will be

    having two full page 3D ad in the 1st

    week in the TOI (Monday and Saturday ), the

    same 3D ad will be placed in DNA in the 2nd

    week (Monday and Saturday ) & the

    same in 3rd

    week in HT (MondayTuesday ). On other days the normal print ads

    will be placed everyday in each news paper.

    We have targeted two magazines that is FEMINA & GQ India which are monthly

    magazine where in we will have two ads in each magazine.

    We will be having 4 TV commercials in total which will be of 30 seconds each.

    Out of which 1 TV commercial will be played as a teaser 4 days prior to the main

    launch of the product. The other 3 will be played post launch of the product. It will

    be telecasted on channels like Star One, Start Movies, and MTV etc.

    Also, we will be having a Facebook fan page, our own website, a 3D ad which

    will be placed on log in pages of Gmail and Hotmail & last but not the least we

    will be having an advertisement on Facebook.

    Along with it we will also have the TVC being played in the movie theaters like

    FAME ADLABS, PVR & CINEMAX.

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    Advertisements

    Newspaper advertisement

    Newspaper the first advertisement which is a two page advertisement will be a 3d

    moving advertisement. When the paper will be moved the object will also move.

    This will contain the line below imagine what this would be like in actual 3d.

    This advertisement will only be shown in the first time advertisement in all the

    three newspapers. The remaining advertisements will be the print advertisement.

    Internet ad

    A 3d product will be put on display where in the viewer can see the mobile phone

    from all sides and angles and along with this they can also check the phone in the

    various colors available.

    There will also be a special feature in the advertisement where the viewer can

    actually see and check how the display is and also how the messages and the home

    screen would look along with a few selected icons that are offered with the phone.

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    Television advertisement and teaser

    1) 4 days

    A boy is sitting on the chair Camera comes from behind.

    Top shoulder shot the boy is gaming on his Phone.

    Suddenly a car comes banging out and boy falls of his chair

    The scene closes with a black screen saying coming soon.

    2) The phone opens in all four dimensions.

    The phone stops and car bikes fighters all of them jump out of the phone.

    Everything starts racing on the road and street.

    The guy just comes and picks up the phone and takes a call.

    The entire element that came out just stops.

    The call ends and the element again get to life.

    Tag line: - 3d now in your hand.

    3) Only the screen is seen.

    The lighting is not there only the phone is sparking with all the different color.

    The phone comes closer focus light on the phone.

    The transparent phone comes out and it turns.

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    The transparent phone loses its keys and on that pictures and videos start playing.

    4) There is a race happening.

    There is a big crowed is there.

    Everyone is taking pictures and videos

    Person 1 along with the rest is trying.

    But he is not successful as there is no clarity.

    The 3d phone is taken out by person 2.

    The phone gives higher screen resolution.

    The person 1 is impressed and wants to buy the phone.

    Media Scheduling

    Media Scheduling for one month i.e. four weeks for all media

    I. TVC

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    TVC schedule for week 1

    Channel

    Insertions/

    no. of times

    Ad played

    Duration Time slot

    MTV 4 30 seconds Prime time

    Star one 4 30 seconds Prime time

    Star World 4 30 seconds Prime time

    Star Movies 4 30 seconds Prime time

    Sony 4 30 seconds Prime time

    TV schedule for week 2

    Channel

    Insertions/

    no. of times

    Ad played

    Duration Time slot

    MTV 3 30 seconds Prime time

    Star one 3 30 seconds Prime time

    Star World 3 30 seconds Prime time

    Star Movies 3 30 seconds Prime time

    Sony 3 30 seconds Prime time

    TV schedule for week 3

    Channel

    Insertions/

    no. of times

    Ad played

    Duration Time slot

    MTV 2 30 seconds Prime time

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    Star one 2 30 seconds Prime time

    Star World 2 30 seconds Prime time

    Star Movies 2 30 seconds Prime time

    Sony 2 30 seconds Prime time

    TVC schedule for week 4

    Channel

    Insertions/

    no. of times

    Ad played

    Duration Time slot

    MTV 4 30 seconds Prime time

    Star one 4 30 seconds Prime time

    Star World 4 30 seconds Prime time

    Star Movies 4 30 seconds Prime time

    Sony 4 30 seconds Prime time

    II. Newspapers and Magazines

    Schedule for week 1

    Name Placing Insertions Time Slot Size

    Times Of Jacket [2 pagead covering

    2 Monday and

    Saturday

    2 full

    pages

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    India first and lastpage]

    Hindustan

    Times

    Last page 2 Tuesday and

    Thursday

    Half

    page

    DNA 2nd

    page 2 Wednesday

    and Friday

    Half

    page

    Schedule for week 2

    Name Placing Insertions Time Slot Size

    Times Of

    India

    First page 2

    Wednesday

    and Friday Half

    page

    Hindustan

    Times

    Jacket i.e.

    first and last

    page full

    1 Monday and

    Saturday

    Two

    pages

    DNA First page 2Tuesday and

    Thursday

    Half

    page

    Schedule for week 3

    Name Placing Insertions Time Slot Size

    Times Of

    India

    Second page 2

    Tuesday

    and Thursday Half

    page

    Hindustan

    Times

    Second last

    page

    1 Wednesday

    and Friday

    Half

    page

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    DNA Jacket i.e.first and last

    page full

    2

    Monday and

    Saturday

    Two

    pages

    Schedule for week 4

    All the ads will be full page ads which will be published on the first page in

    the special Sunday editions of all the papers.

    Magazine schedule for the entire month

    Name Placing Insertions Time Slot Size

    GQ Back cover 1One full

    month Full page

    Femina Back Cover1

    One full

    month

    Full page

    III. Movie theatres

    Name Duration placing Insertions

    PVR 30 secs All shows interval 1

    Big Cinemas 30 secs All shows interval 1

    Fame 30 secs All shows interval 1

    We will have contracts with the movie theatres of 4 metropolises in India i.e.

    Mumbai, Delhi, Bangalore and Kolkata and in each metropolis we will have 4

    theatres booked.

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    IV. Internet1. We will have a Facebook.com fan page.2. Also, we will have a contract with Facebook.com, wherein,

    facebook.com will itself create a website for us and also, place our ads on

    Facebook.com on the right side of the page for a month.

    Name of the

    Site

    Placing NO. of

    Insertions

    Time Slot

    Gmail.com Login page 15 Every alternate day for

    a month

    V. SponsorshipTwo major shows like BIG BOSS and Roadies will be sponsored.

    VI. Outdoor mediaA contract worth 1.5 crores will be signed with Bright Outdoor Advertising

    wherein, the advertising company will put up banners and hoardings of the

    company in the 4 main metropolises and 4 prime locations of each

    metropolis will be selected. The ads will keep changing every week for fourweeks

    Media Budgeting

    Production of adsOne crore will be spent towards the production of ads.

    Newspapers

    Dailies Size Cost Insertions Total cost

    Times OfIndia Half page 4 lakhs 4 16 lakhs

    Times Of

    IndiaJacket 13 lakhs 2 26 lakhs

    Times of

    India

    Full Page 7 lakh 1 7 lakh

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    DNA Jacket 5lakh 2 10lakhs

    DNA Half Page 1,60,000 4 6lakh40thousand

    DNA Full Page 3 lakh 1 3 lakh

    Hindustan

    Times

    Half Page 2lakh 40

    thousand

    4 9 lakh 60

    thousand

    Hindustan

    Times

    Full Page 6 lakh 1 6 lakh

    Hindustan

    Times

    Jacket 10lakh 2 20 lakh

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    Magazines

    Name cost Placing

    GQ magazine 567000 Outside backcover

    Femina 2,50,000 Outside backcover

    TVC

    Channels duration Insertions cost

    Star Movies 30 secs 91 60000*91=5460000

    Star World 30 secs 91 60000*91=5460000Star one 30 secs 91 45000*91=4095000

    Sony 30 secs 91 90000*91=8190000

    MTV 30 secs 91 30000*91=2730000

    Movie theatres

    Name cities locations Total

    Insertions

    Total Cost

    PVR 4 4 16 7200000Big

    Cinemas

    4 4 16 6400000

    Fame 4 4 16 6400000

    Internet

    We are paying 30 lakhs to the Facebook site for creating our site and

    advertising about our company.

    Name of site No. of insertions Cost

    Gmail.com 15 15*15000=225000

    Sponsorship

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    Big boss will be sponsored with a crore and Roadies will be sponsored with

    mobile phones for the contestants

    Total Budget

    Media Total costProduction of ads 10000000

    TV 25935000

    Outdoor 150,00000

    Sponsorship 10000000

    Internet 3000000Newspapers 10400000

    Magazines 817000Movie Theatres 20000000Site ads 225000

    Total cost 9,53,77,000

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    CONCLUSION:

    Future growth determinants in TECHTREE MOBILE category:

    Deeper distribution networks thus increasing category penetration.

    Increased affluence and disposable income of the urban consumer.

    Consumers looking for products that are strong on innovation.

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    Made By:-

    Ankita Suraiya: - 105

    Jessica Shah: - 90

    Abhimanyu Swarup: - 109

    Karishma Shah: - 120Yash Trivedi: - 20083113

    Pratiksha Ramotra: - 76