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    1. A PROJECT REPORT ON A STUDY COMPARATIVE

    ANALYSIS OF ADVERTISING AGENCIES SUBMITTED BY:

    Sumeet bassi UNIVERSITY ROLL NO.:- 80507317054 (IN

    PARTIAL FULFILLMENT FOR THE DEGREE) OF M.B.A

    SUBMITTED TO:- mrs.shivani singh A&M INSTITUTE OF

    MANAGEMENT AND TECHNOLOGY PUNJAB TECHNICAL

    UNIVERSITY, JALANDHAR APRIL, 2010 1

    2. BONAFIDE CERTIFICATE Certified that this project

    report COMPARATIVE ANALYSIS OF ADVERTISING

    AGENCIES is the Bonafide work of SUMEET BASSI who

    carried out the project work under my Supervision. -------------------

    ------------------- SIGNATURE SIGNATURE MR.RISHI DOGRA

    MRS.SHIVANI SINGH (HEAD OF DEPATMENT) (GUIDED BY)

    (LECTURAR OF MGT.) A&M GROUP OF COLLEGE A&M

    GROUP OF COLLEGE OPPOSITE TO CANADA PALACE

    OPPOSITE TO CANADA PALACE JALANDHAR-DALOUSIE

    JALANDHAR-DALOUSIE BYE-PASS BYE-PASS PATHANKOT

    PATHANKOT 2

    3. PREFACE It is a matter of great honour for me to

    present before my humble readers this project based on the study

    of COMPARATIVE ANALYSIS OF ADVERTISING AGENCIES

    The foregoing presentation is an honest and painstaking effort on

    my part in black and white about the colourful world of advertising

    agencies. The data collected by me is secondary. I have taken

    assistance from knowledgeable and apt taskmasters shouldering

    work of great responsibility in some of the reputed advertising

    agencies. However, with due respect to the urge of these agencies

    for maintaining secrecy about their operations and financial data ,I

    also had to resort to secondary sources for obtaining data like

    newspapers, magazines and the websites of these agencies.

    Although the information obtained from secondary sources may

    prima facie seem to be paralysed by window dressing, to be

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    absolutely frank with my understanding readers, it has been

    discovered that this data is as reliable as the one I have obtained

    from the horses mouth for other agencies. Due to paucity of time

    and reluctance of certain internationally acclaimed advertising

    agencies in co-operating with me for this project due to some

    obvious reasons on their part ,I have been able to cover in this

    project a study of 6 agencies. But the foregoing pages will warrant

    my painstaking efforts and the extensive study undertaken by me

    for each of them.So, with due respect to my patient readers for the

    time they will spare for my project and with confidence flowing

    through my nerves that both the time and patience of my readers

    will not be tried and tested and but duly rewarded with the intensity

    of my efforts , I carry you gracefully into my world of advertising

    agencies 3

    4. ACKNOWLEDGEMENT I would like to sincerely thank

    the University for giving me this opportunity of taking up such a

    challenging project which has enhanced my knowledge about the

    Advertising Industry & the advertising agencies. I am very grateful

    to Mrs. Shivani Project Co-ordinator, under whose guidance and

    assistance I was able to successfully complete my project. I am

    also thankful to Mr. Rishi Dogra, Project Guide whose advice and

    thoughts helped me gain a better understanding of this huge

    advertising industry and the flambouyant, magnanimous world of

    advertising agencies. Last but not the least; I also thank the below-

    mentioned honourable dignitaries and task-masters who have

    played a major role in leading their respective agencies to the sky

    of glory. This is a special thanks to them for sparing their precious

    time, fitting my out-of-the-way appoinent into their diary and giving

    almost all the information required by me in an unbelievably

    amicable manner. Without the priceless contribution and coveted

    guidance of all the above-mentioned people, this project would

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    have never got a shape of reality and emerged before all of you in

    the manner and in the style as it now appears. 4

    5. EXECUTIVE SUMMARY 1. OBJECTIVE: To study the

    various advertising agencies; the ones having local operations as

    well as the ones have international scale of operations, their

    modus operandi, styles and the manner of functioning, their

    profiles, their upswing and their downfall and last but not the least

    their position in the world of advertising on the basis of the

    contributions to the ad world and society at large. 2.

    METHODOLOGY: In order to achieve the above-mentioned

    objective and finish the study to perfection, I have made a judicious

    and a balanced use of primary sources as well as secondary

    sources of data collection. Well, the primary sources comprise of

    personal visits to the administrative offices of some known

    advertising agencies and a direct communication with the persons

    who were knowledgeable and in-charge of the operations. To

    facilitate in my operations, I had first chalked out a detailed

    questionnaire covering in length all questions that would serve the

    purpose in the most efficient and productive way. The preparation

    and the formulation of the questionnaire was on the basis of many

    considerations viz., the time that the answeree would require to

    give me the required answers, the importance of that time and the

    cost involved. A copy of the said questionnaire is included

    elsewhere in this project as an Annexure. 5

    6. Although the efforts were directed basically towards

    obtaining information required for the study from primary sources

    to the maximum possible extent, due to factors like lack of co-

    operation anticipated from stalwarts and internationally acclaimed

    agencies, considerations of these agencies over secrecy of data

    regarding their operations, lack of time for answering the

    questionnaire and unavailability of the persons-in-charge, I also

    had to resort to secondary sources like websites, magazines,

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    newspapers etc. Bibliography of these sources forms a part of this

    Project for ready reference of the reader. A sample of six agencies

    was chosen on the basis of their scale of operations, reputation

    and quick accessibility. 3. CONCLUSIONS: During the course of

    this study I have observed many a facet of the advertising

    agencies ----- their strengths, their weaknesses, their opportunities

    and threats which deserve a mention: Most of the advertising

    agencies are basically interested in catering to just the needs of

    the consumer irrespective of the nature of the product or service

    proposed to be advertised. The primary objective of the

    agencies is basically profit generation and profit maximization.

    The agencies conduct a SWOT of the client but not of the

    product at the time of accepting an assignment. 6

    7. There is not much of dynamism in this agencies as

    far as expansion plans are concerned, diversification objectives

    are involved or specialisation motives are in question. Not much

    is done by these agencies for the social welfare and be advertising

    of social values The agencies are highly committed to their

    activities but sometimes they tend to be over-professional in their

    attitudes, over-reserved in the choice of strategies, over-

    confidential in their operations and over-aggressive in competition.

    Not many agencies are laying too much emphasis on selection

    of proper human resources or managerial personnel. They appear

    over-burdened by objectives of cost control. There is not proper

    training imparted to people working in the modestly positioned

    advertising agencies. Due to this, there is lack of specialisation,

    improvisation and dynamism. 4. RECOMMENDATIONS: The

    following are recommended in view of the importance and the

    strategic position occupied by these agencies: The advertising

    agencies should function in a healthily competitive environment

    rather than in an aggressive world of cut-throat competition. The

    agencies should definitely give importance to profit maximisation

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    but at the same time function in public interest as far as charges

    and quality of products is concerned. The agencies should also

    conduct a SWOT analysis of the products to be advertised at the

    time of accepting assignments alongwith the routine SWOT

    analysis of the clients. 7

    8. There should also be a provision for staff training

    whereby the staff is properly motivated and educated for the roles

    they perform in the organisation leading them to specialisation and

    perfection. The advertising agencies should also have a

    perspective of tapping new avenues, creating mew markets and

    pursue global expansion for the benefit of themselves and for the

    country at large. Table of Content Sr.No Topic Page No CH 1

    Research Methodology 11 CH 2 Introduction 14 8

    9. CH 3 Profile 3.1 Introduction to Advertising Agencies 18

    3.2 Functions of Advertising Agencies 18 3.3 Model Organization

    Structure 22 CH 4 ADVERTISING AGENCIES 1 XEBEC 1.1 The

    Whereabouts 23 1.2 Modus Operandi 23 1.3 The Canvas on which

    Xebec paints its product 24 1.4 How can I know about Xebec? 24

    1.5 SWOT Analysis 25 1.6 Case Studies 27 1.7 Awards and

    Achievements 30 1.8 Whos who in Xebec 31 1.9 Divisions of

    Xebec 31 1.10 List of Clients 33 2 CARAT 2.1 The Whereabouts

    34 2.2 Modus Operandi 34 2.3 SWOT Analysis 35 2.4 List of

    clients 37 3 CANCO 3.1 The Whereabouts 38 3.2 Modus Operandi

    38 3.3 SWOT Analysis 38 3.4 Canvas on which Canco paints its

    product 41 3.5 How can I know about Canco 41 3.6 Organization

    Structure 41 3.7 Facilities offered by Canco 42 3.8 Awards 42 4

    MCCANN ERICKSON 4.1 History 43 4.2 Whos Who 43 4.3

    Modus Operandi 45 4.4 SWOT Analysis 57 5 MUDRA 5.1 History

    60 5.2 Pioneers in Advertising Agencies 61 5.3 Divisions 62 5.4

    Founder 62 5.5 List of Awards 63 5.6 Major Clients 64 5.7

    Organization Structure 66 CH 5 SWOT Analysis of Advertising

    Agencies-Comparative 67 9

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    10. Study CH 6 Statistics 6.1 Comparison between Gross

    Income of Top 25 Agencies 69 6.2 Growth of Advertising Agencies

    70 6.3 Top 20 Advertising Agencies 72 6.4 Top 20 Advertising

    Spenders 73 6.5 Agencies Ranking 74 6.6 2001- Top Ten

    Multinational Advertisers 75 6.7 2001- Top Ten Advertising

    Agencies 75 6.8 Comparison of Agencies on the basis of

    Worldwide Gross 76 Income 6.9 Graph of Growth of Agencies 77

    CH 7 Suggestions and Recommendations 78 CH 8 Conclusion 80

    CH9 Annexure 82 CH10 Bibliography and Webliography 84 10

    11. RESEARCH METHODOLOGY Topic : STUDY OF

    ADVERTISING AGENCIES 1. OBJECTIVE: The project deals with

    the study of advertising agencies encompassing a multi-

    dimensional discussion on the whereabouts of these agencies,

    their modus operandi, their manner and coverage of operations,

    their strengths, weaknesses, opportunities available to them and

    the threats posing obstacles in their journey to the max. This study

    shows the diversity underlining their operations and at the same

    time the unity in aims, objectives and target. As during the

    preparation of this project, some inevitable obstacles and natural

    hindrances restricted the scope of this study just as these agencies

    are restricted by many environmental and socio-economic factors,

    nonetheless, its a sincerest attempt to do the best possible justice

    to the said topic. 2. AGENCIES COVERED : (1) Xebec (2) Canco

    (3) McCann-Erickson (4) Carat (5) Percept (6) Mudra 11

    12. 3. FROM PLACES TO PAPER : The data required for

    this study as per my vision was collected from the following type of

    sources : Secondary Sources Secondary sources of data

    collection: On account of the cold shoulder given to me by the

    media-giants and their contemporaries, I had to resort, as also

    advised by some of them, to secondary sources of information like

    newspapers, websites and books for supplementing the

    information obtained from primary sources and sometimes for the

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    main information. Honestly, the information obtained from the

    websites was detailed and sufficient to an extent that would even

    surpass those of primary sources. In the ocean of the information

    that the websites contained for each agency, I had to fathom for

    the most precious gems which required crisp editing, preciseness

    and good scissor-work. Also newspapers like The Economic Times

    and its supplementary called Brand Equity did leave their imprints

    on the papers of the project to follow and their contribution to this

    presentation cannot undermined and unnoticed. Help was also

    taken from books based on advertising and marketing to give a

    better appeal to this study and enrich it with more detailing and

    liveliness. 4. RESULT 12

    13. The cummulative result of primary sources of data

    collection and secondary sources is obvious from the pages that

    follow. However, I have been able to generate sufficient

    information and moreover, in detail from all the sources employed

    in an endeavour to leave no stone unturned in justifying the

    selection of this topic and advertising agencies, at large. Though

    marred by some obstacles, I am convinced that my painstaking

    efforts and drops of sweat that have made the papers intangibly

    wet and the ink of the pen go dry will convince my patrons carrying

    good doses of expectation from this project. 5. DIFFICULTIES

    FACED : 1. Stipulations and urge for strict adherence to the length

    of this project upto a maximum of 80 pages forced me to run the

    merciless scissor on many points. The pen was on but the papers

    were gone. 2. Lack of co-operation from the stalwarts and the

    internationally acclaimed ad-giants has been the biggest obstacle

    in the way. Though, they are very much justified and I give due

    consideration to their urge for maintaining confidentiality about

    their operations and financials, I still believe that had this

    information, however explanatory it is, been obtained from them

    directly, it would have definitely made neighbours' envy and owner

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    pride. 3. Unavailability of concrete sources of secondary data was

    another hindrance. Though websites form an exception, barring

    them there was hardly a source that carried some potential in

    meeting the requirements. Prestigious publications like A & M have

    faced shut doors of printing presses and a replacement is still

    hiding in some unknown corner of invisibility. 13

    14. In a nutshell, all these ingredients which have gone

    into the making of this recipe wait a verdict from the readers for

    their taste. INTRODUCTION The word that bridges the gap

    between no more to know more- Advertising. and further

    between know more and grow more. Knowledge is power, they

    say and today the biggest weapon of power in anyones hands is

    that of advertising. Just as water is to a fish, advertising is to

    business; something without which the basic question of survival is

    bound to rise. In this jungle of name and fame, where every

    creature confidently defies William Shakespeare when he says,

    Whats there in a name there is definitely everything attached to

    name and its this name which gives you fameAnd what gives

    an identity its name? Well, the only golden word Advertising

    Definitely roses will not smell less sweet by any other name but

    businesses will undoubtedly go back to the coffers if the world

    forgets their names and to keep them alive in the minds of billions,

    you go for publicity. Today everyone advertises from crches to

    crematorium ,from hotels to hospitals, from clubs to pubs,from

    marriage bureaus to lawyers well name it and you have it.

    Everyone needs recognition, from a 6 month baby in the cradle to

    a 60 year old preparing for a graveyard, from a beggar to a

    billionaire everyone wants you to recognize in a train or in a

    plane , irrespective of what you are. In the yesteryears , everything

    was considered fair in love & war and advertising . It does not mind

    if you have to pull someone down, important is that you should

    rise. 14

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    15. And who helps you to project yourself in the public,

    who brings you from the greenlight to the limelight, who brings you

    from the darkness of ignorance to the light of recognition?

    Obviously, the advertising gurus seated comfortably in their mind-

    blowing offices These Advertising Agencies may be raking in big

    moollahs but no one can question their contribution in enabling

    the business to burn their choolahs .Today there are the movie

    moghuls and cricketing badshahs dancing on their fingertips,

    models and celebrities weaving their irresistible web of magic

    around people like us. Well, necessity is the mother of invention

    and our necessities have opened the doors of prosperity for these

    agencies. Be it a product or be it a service, they have the magic

    formulae for everything and mind you, these formulae really work

    on our minds as is clear from our very own experiences. And

    sometimes their roles really makes a layman wonder as to what

    would have happen to those hundreds of unsung brands appearing

    as faces in the crowd on some rack or shelves of a huge

    supermarket or a not-so-popular stores if these agencies would

    have never risen from the sands of time. Today, the exposure of

    every individual to advertisements and advertising has increased

    manifolds than what it was in the past. Kudos to these agencies ;

    at least they have turned out to be major trend-setters and torch-

    bearers for people like us showing us the way to the magnanimous

    world of sophisticated products & services. However unethical and

    materialistic these 15

    16. agencies may be, at times in a bid to grab the lions

    share of the buyers market, it is doubtlessly certain that without

    these agencies we would have never come out from the age of

    transistors to reach the modern age of home theatres. Well, every

    cloud has a silver lining to it. Who can forget the extent and the

    manner in which Reliance Infocomm marketed its Wireless in Local

    Loop (WLL) Technology on the onset of the launch of its mobile

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    service. Irrespective of the post-use catastrophes, the impact of

    solid marketing & publicity on the minds of an ordinary laymen for

    whom having a mobile in hand was nothing less than wearing a

    gold ring in the ring finger is reflected in the way such a person is

    today using a cell phone. The hype was created by the agencies

    like Xebec Communications who advertised the product of one of

    the Fortune 500 Companies of India and the hysteria still

    continues. Today, may products like chocolates and butter come to

    be identified by their brand names like CADBURYS & AMUL.

    On the other hand, many others are identified by their slogans,

    catchlines & punchlines devised by the advertising wizards like

    BLACKMAGIC MOTION PICTURES for their clients products

    like Hamara Bajaj (Bajaj Auto), Utterly Butterly delicious Amul

    (Amul), A gift for someone you love(Cadburys), Yeh Dil

    Maange More (Pepsico) , Taste the Thunder (Thums-Up) etc.

    Before we go ahead with the discussions about the advertising

    agencies & the brains behind them, its pertinent to bring to

    limelight the benefits which we, as a society, are deriving from

    these agencies and the not-so acceptable traits. 16

    17. PRESENTING... The pros (1) Creating awareness :

    Due to the increasing role of the advertising agencies and so-

    called dominion over our minds, today the level of consumer

    awareness could be well adjudged from the fact that even a toddler

    identifies in the spur of the moment an ad of Cadburys chocolates

    or Amul Butter been run on the screen of the idiot-box ornamenting

    our spacious drawing rooms. (2) Enabling wider choice and access

    to products : So many products and so many ads for each of

    themleaves the poor customer gasping for some free space.

    Well, with the bombardment of so many commercials, universal

    hoardings, from advertisements stuck on the walls of the building

    compounds to those stuck on the walls of the railway comparents,

    the customer has multitude options and ample of choices to really

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    get better than the best. Well, people are after all paying

    handsomely for their requirements and they deserve choices and

    options. But, it all owes to these agencies who have spread out

    before us 10 different types of toothpastes for making out teeth the

    whitest and the hardest, 100s of moisturizers for giving the best

    glow to our skin an all sorts of luxuries which have become more

    necessary than the necessities. (3) Uplifent of standard of living :

    Well, its said that Money makes a mare go. Today, this not be

    any more emphasized as everyone knows that depending on the

    financial background, people can get the best of everything. From

    a cycle to a car, or from a dhaba to a restaurant, the customer

    knows where he is 17

    18. the most comfortable and is able-bodied to plan out his

    budget as he knows the price tags stuck on every product and

    service. And all this, is possible because of the constant exposure

    to media and publicity. (4) Necessary for the growth of the

    businesses : From the Ambanis to the paanwalla, from the

    Bachchans to the street- actors, every soul is convinced of the

    power of these agencies in giving them a larger than life size

    image. Every business house, big or small, though cutting the cloth

    according to the size of its coat, needs the services of these

    agencies to project its brand image before the laymen and convert

    these laymen into prospective and from prospective to loyal

    customers for their products and services. Revenue generation is

    the prime objective behind every business and to rotate the wheel

    of success, its important for them to use the services of these

    think-tanks and always remain on the topmost rank. The cons.....

    (1) A cold shoulder to social responsibilities : The advertising

    agencies today are not performing to the non-material welfare of

    the society. Their commitents and obligations to the society are

    mani-fold. Being the torch-bearers of the world of publicity and

    media, they are on a huge platform from where they can spread

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    messages of public interest in every nook and corner of the

    country. Alongwith their professional assignments for profit

    maximisation, they can also design propagandas for conveying

    important social messages like harmfulness of smoking and

    drinking liquor, abolishing evil practices and dogmas deeply rooted

    in the blood of the rural illiterate, importance of a nuclear and small

    family etc. Accepting these assignments for a social cause will not

    create a 18

    19. dent in their pockets but will surely go a long way in

    revolutionising thoughts, attitudes and mindset of every Indian. (2)

    No SWOT of products advertised conducted : All the advertising

    agencies are conducting a SWOT analysis of the prospective

    clients that approach them with a product or service meant to be

    advertised but no one is bothered about a scrutiny of the products

    to be so advertised. It is not their business, perhaps it is anti-

    business; that's the feel and the flavour. 19

    20. PROFILE ADVERTISING AGENCY ADVERTISING

    The American Marketing Association, defined advertising as any

    paid form of non-personal presentations of idea, goods or service

    by an identified sponsor.In other words we can say that

    Advertising is brand building through effective communication

    INTRODUCTION TO ADVERTISING AGENCY The global market

    has expanded manifold in the last few decades. More and more

    products are being launched practically everyday. The companies

    are engaged in cutthroat competition to highlight their products to

    the forefront. Herein enters the glamorous field of advertising.

    Advertising is actually brand building through effective

    communication and is essentially a service industry. This requires

    the help of the media to reach more and more people to

    communicate brand effectiveness and here advertising agencies

    comes picture. The role of advertising agency has been accepted

    because it provides specialist services to the companies, which

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    have inadequate services of experts for the promotion of their

    goods and services. Many institutions have 20

    Accounting: The advertising agency maintains proper

    accounts in co- operation with the client. The account executives

    see to it that the agency keeps to the stated plan. The accountant

    is in charge of the administration of the advertising programme on

    the agency side. A 21 Co-Ordination: The advertising agency co-

    ordinates several activities. It often works with the clients sales

    force and distribution network to ensure the long-run success of

    the advertising programme. The combined efforts of sales persons,

    distributors and retailers ensure maximum sales. Ideas, media,

    copy and decisions are co-ordinated properly to project and

    implement the advertising programme. Creation and Execution:

    Specific advertisements are created. The advertising copy is

    written; the layout is prepared; illustrations are drawn; photographs

    are finalized; and a correct mechanical form for running it in the

    selected media is produced. The advertising agency prepares a

    suitable advertising copy for insertion in all the media. Planning:

    The advertising agency plans the advertising campaign. The

    management delegates the responsibility of advertising planning

    and execution to the agency. The agency must have a fair

    knowledge of the firms products, its history, the present market

    conditions, distribution methods, price level and other conditions. A

    successful advertising programme is built on the basis of these

    data. 21. established the services of advertising agencies to

    make their products and services known to the potential

    consumers. FUNCTIONS OF ADVERTISING AGENCY: The

    advertising agency performs all the managerial functions. Some of

    these are planning, creation and execution, co-ordination,

    accounting, media, research and internal control.

    Internal Control: The advertising agency manages its

    employees, finances and other resources effectively and

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    economically. It conducts the business behind the scenes and

    exercises proper control over activities and funds. Public relations,

    sales promotion functions and client contacts are maintained by

    the management for the effective operations of the advertising

    agency. 22Research: Research is a key function in an

    advertising campaign. The decisions on creativity and media

    selection are taken on the findings uncovered for research.

    Research makes every decision systematic and logical, based as it

    is on facts and figures. Media: The advertising agency selects

    the media or a set of suitable media for the client to reach the right

    type of audience which is an important factor in media selection.

    The rates, circulation, population, audience, income and other

    important information are collected for the purpose. It has to see to

    that the media plan is carried out properly which is devised to

    implement the campaigns communication objectives. The media

    experts know all about the media and their coverage. They prepare

    the schedule of advertising, publication, data on printing and the

    time available from television and radio. 22. misunderstanding

    arising between the agency and the client is eliminated by the

    accountant. The amount of fees received from the client and the

    payment of taxes, bills and other charges are accounted for by the

    accountant.

    23. EXTERNAL CLIENT BRIEF ENTERS THE AD

    AGENCY INTERNAL CREATIVE BRIEF MEDIA BRIEF

    CREATION STAGE CREATIVE PROCESS COPYWRITING

    ILLUSTRATING LAYOUTS CLIENT APPROVAL PRODUCTION

    BROADCAST STAGE PRINT TYPOGRAPHY ENGRAVING

    FILMING EDITING PRINT AD COMMERCIAL PRINT MEDIA

    BROADCAST MEDIA AD REACHES THE TARGET AUDIENCE

    23

    24. TYPICAL ADVERTISING AGENCY STRUCTURE

    Chairman & Managing Director (Chief Executive Officer) Finance

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    Management Administration Accounts Client service Media

    Director Creative Director Director Studio Films Print & Media

    Associate Creative Production Controllers Directors Group

    Account Manager Media Supervisors Creative Group Heads

    Account Supervisor Media Media Planners Buyers Copywriters Art

    Directors Account Executives Media Media 24

    25. ADVERTISING AGENCY # 1 X E B E C THE

    WHEREABOUTS HEAD OFFICE : 20, Santosh Heights, 1st Floor,

    39/4, J.N. Marg, Opp. Apsara Theatre, Pune 411 037. BRANCH

    OFFICE : Jain Chambers, 1st Floor, Next to Saga Shopping

    Centre, S.V. Road, Bandra (West), Mumbai 400 050.

    Incorporated in the year 1991, this rapidly-growing FULL

    SERVICE Agency located at the above-mentioned places has

    today achieved for itself a decent position in the jampacked arena

    of the biggies and is continuing its progressive march. It is solely

    indigenous with no foreign collaboration or foreign equity

    participation ; something really very praiseworthy. MODUS

    OPERANDI : Being a truly professional & competitive in approach,

    Xebec Communications has a well-defined and a well-organised

    method of operations. When the prospective client approaches

    them for getting his purpose served, they conduct a SWOT

    analysis prior to acceptance of any assignment. Although, this

    SWOT Analysis is not at all a cumbersome and 25

    26. patience-testing exercise for the client, it is designed in

    such a way that the agency gets a total assurance of the output.

    The agency first understands the requirements of its customer and

    gets a complete profile about the product or the service to be

    advertised from the horses mouth. Further, it makes a complete

    assessment of such a product or service, based on the

    representations and the explanations given by its client in terms of

    the life of the product, its marketability and its commercial value.

    Continuing on these lines, the agency also makes an assessment

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    of the requirements of the client, their budget, cost constraints etc.

    Finally, last but not the least, the agency makes an estimate of the

    benefits, both monetary as well as non-monetary which it is

    subsequently in the long run, going to derive out of every such

    assignment. On the basis of such a study made about the product,

    its target audience and the psycho-analysis of the creator as well

    as its creation, the agency then selects the type of media which is

    the most appropriate one in terms of the cost constraints laid down

    by the client and accordingly intimate the client about the cost-

    benefit ratio of the entire exercise. So, its a thorough professional

    approach wherein the client is rest assured about the benefits he is

    going to reap from the seeds he is planning to sow in the field of

    advertisement. Ultimately, its not a no-win no-lose situation for

    both of them but is entirely a winners outcome. THE CANVAS ON

    WHICH XEBEC PAINTS THE PRODUCT : Xebec provides its

    customers with a wide-range of media to select from viz., in fine

    print, or on celluloid like television, radio, theatres etc. HOW CAN I

    KNOW ABOUT XEBEC : 26

    27. Well, being professional and competitive in approach,

    it is Xebec who approaches its prospective clients and not wait for

    the the clients to fathom for it. So, the client does not have to run in

    sun and shower for finding a proper canvas for its product. Xebec

    provides all the facilites for its client coupled with a very co-

    operative in-house, interactive response and hospitality. As far as

    a payment term is concerned, Xebec also takes care of the pocket-

    size of its customers. So on one hand, it gives you the option to

    pay the entire fees in lumpsum, on the other hand it also extends

    credit to its continuous and creditworthy customers.

    STRENGTHS : The agency first understands the requirements of

    its customer and gets a complete profile about the product or the

    service to be advertised from the horses mouth. Further, it makes

    a complete assessment of such a product or service, based on the

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    representations and the explanations given by its client in terms of

    the life of the product, its marketability and its commercial value.

    Continuing on these lines, the agency also makes an assessment

    of the requirements of the client, their budget, cost constraints etc.

    Finally, last but not the least, the agency makes an estimate of the

    benefits, both monetary as well as non-monetary which it is

    subsequently in the long run, going to derive out of every such

    assignment. On the basis of such a study made about the product,

    its target audience and the psycho-analysis of the creator as well

    as its creation, the agency 27

    28. then selects the type of media which is the most

    appropriate one in terms of the cost constraints laid down by the

    client and accordingly intimate the client about the cost-benefit

    ratio of the entire exercise. So, its a thorough professional

    approach wherein the client is rest assured about the benefits he is

    going to reap from the seeds he is planning to sow in the field of

    advertisement. Ultimately, its not a no-win no-lose situation for

    both of them but is entirely a winners outcome. WEAKNESSES :

    Xebec is facing a major problem of Time Management i.e. it is

    over- dependent on its staff. Hence, the quality and the efficiency

    of its human resources always causes some sort of a problem in

    making and implementing fast decisions. Again, multiplicity of

    brains, though an asset for any organization is also sometimes a

    hindrance in its development when the agency is not able to reach

    to a definite conclusion about its strategies and policies in the nick

    of the time due to conflicting ideas presented by its too many

    decision-makers. As it is aptly quoted, Too many cooks spoil the

    broth Secondly, as far as client servicing is concerned, Xebec

    does not make adequate attempts to update its services. This is

    the main reason why this organization though reputed, is not able

    to expand its paraphernalia. Lack of creativity is also a major

    backdrop in its success story. Next, Xebec has also failed to make

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    any renowned celebrity from the fields of cinema, sports, politics or

    business as its brand ambassador as other reputed agencies in

    this world are in a practice of doing. Hence, the 28

    29. agency fails to create a long-lasting and huge appeal

    for the products of its clients amongst the masses. As far as the

    profiles of the team members of Xebec are concerned, the people

    in the topmost levels of organizational hierarchy who are mainly

    shouldering the responsibility of devising strategies, policies,

    media plans, client servicing, account planning, market recognition

    and strategic decision-making are not from the fields of

    management or advertising. Though, they may be well-groomed

    for excellence in the environment in which they are functioning,

    there is always an undisputed difference between those able-

    bodied people who are from the field of management and those

    who are not. And finally, in this field of cut-throat competition where

    agencies rise and fall like a pack of cards day in and out, you

    definitely need professionals and professionalism in your approach

    at the time of decision-making and implementation of ideas.

    OPPORTUNITIES : There is a tremendous scope for diversifying

    its paraphernalia as currently Xebec is just specializing in one

    particular media. Secondly, by recruiting and taking more benefits

    from services of professionals in this field, Xebec can overcome its

    problems of Time Management and slow decision-making. Instead

    of having too many heads with different contents in them, it can

    always go for quality staff. Xebec can also concentrate on making

    some of the eminent personalities as its Brand Ambassador, which

    it has already started as is evident from 29

    30. its forthcoming contract with a cricket star named Salil

    Ankola. If it continues to do so on these lines it can lead to more

    aggressive response for its clients products and services.

    THREATS : Xebec also does not make a SWOT analysis of its

    clients at the time of taking an assignment. This also exposes it to

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    a major threat of losing its own ground in its field as not many of its

    clients are too reputed, well- organised and aware of their

    requirements. Another major threat to the growth and development

    of Xebec is its over- dependence on Print Media. That is to say,

    Xebec has not taken too many efforts of diversification and growth

    into other media. It is quite understandable that in todays world to

    remain sellable in the market you have to keep on diversifying

    yourself into other fields which this agency is not very much keen

    in today, there is a definite threat on its future existence. Survival is

    first, growth afterwards and just trying to be a master in one amidst

    a crowd of experts who are Jack of all trades is not at all a good

    sign for any organization. 30

    31. CASE STUDIES 1. KIMBERLY CLARK 1.1 Brief

    Associate Kimberly Clark with personal hygiene by a campaign

    encouraging people to adopt health habits and educate offices and

    hotels about the importance of giving their employees and guests

    access to hygiene products. 1.2 Execution A Poster Campaign

    placed in and around washrooms (where Kimberly Clark's products

    are most used)reminding people about the importance of personal

    hygiene with a byline by Kimberly Clark. 1.3 Result A direct

    association between Kimberly Clark and personal hygiene and

    increased usage of Kimberly Clark products and supplies. 2.

    KINETIC 2.1 Brief Relaunch Kinetic Honda Marvel and build on

    Kinetic's reputation as an all family 2 wheeler maker. Create a new

    buzz around the Marvel as an exciting bike. 2.2 Execution A series

    of concurrent road-shows and test rides all over India handled by

    our events division with live performances by India's most exciting

    and talented performer - REMO - to stir up the excitement. 2.3

    Result 31

    32. Excitement about Marvel and renewed interest in the

    scooter and Kinetic. 3. THYSSENKRUPP 3.1 Brief To occupy

    mindspace as a core infrastructure sector/industry player. 3.2

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    Execution A creative campaign in Indian and foreign magazines

    and journals closely targeted at industrial decision makers. 3.3

    Result Increased awareness of ThyssenKrupp activities and brand

    recall as a hi-tech German company. ThyssenKrupp continues to

    be a valued client. 4. INDIACOM 4.1 Brief Build the INDIACOM

    brand as a most easily accessible and widely disseminated yellow

    pages directory. 4.2 Execution Strategic press spots and hoardings

    timed with the beginning and end of the bookings period designed

    to drive demand for ads and insertions and increase awareness of

    the INDIACOM edge. 4.3 Result More recall for the INDIACOM

    brand as the most easily accessible and widely disseminated

    yellow pages directory resulting in more placements in their

    directory. 32

    33. 5. LIPI DATA SYSTEMS 5.1 Brief Position LIPI as a

    total data solutions company with a wide range of high quality print

    solutions for small businesses and corporates 5.2 Execution A

    creative campaign focusing on the flexibility of LIPI printing

    solutions. 5.3 Result Increased awareness about the LIPI brand

    name as a provider of superior printing solutions. 6. INTELLIGENT

    INVESTOR 6.1 Brief Raise Intelligent Investor's profile through

    high powered personal finance exhibitions in the metros. 6.2

    Execution A series of full page ads in outlook and Intelligent

    Investor designed to engage the readers attention by trumpeting

    the sheer volume of financial services and free advice on offer. 6.3

    Result A tremendous response to the personal finance exhibitions

    leading to increased awareness about Intelligent Investor and an

    increase in its brand equity. 7. CENTURION BANK 7.1 Brief 33

    34. Establish Centurion Bank as a one stop shop for all

    banking needs with superior banking services for small customers.

    7.2 Execution The target audience was identified as the small

    customer who was perhaps not getting the best service in big

    banks. The creatives were designed to inform him about Centurion

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    Bank's thrust towards them. 7.3 Result More new accounts for

    Centurion Bank with its brand firmly established among the smaller

    customers. 8. DISHNET DSL 8.1 Brief Leverage Dishnet strengths

    as the only DSL high speed ISP provider in the country. Target

    soho and heavy net users promoting the benefits of high speed

    access. 8.2 Execution A creative campaign bringing out the cost

    and speed advantages of broadband. 8.3 Result Increased interest

    and awareness about broadband Internet access, establishing

    Dishnet DSL as the pioneer in broadband technology and

    generating inquiries and sales. AWARDS & ACHIEVEMENTS :

    Best Radio Jingle [A refreshing jingle for Electronica Leasing &

    Finance Ltds Fixed Deposit Schemes] 34

    35. CEAD - Best Radio Jingle [An innovative jingle for

    Kinetic Spark which was set in a folk tune] Trade Fair/Exhibition

    Design [First prize for Kinetic Honda stall at Auto Expo 98] [First

    prize for Impressive Stall & Innovative Displays at TECHEX-6 at

    World Trade Centre, Mumbai, November 98] WHOS WHO IN

    XEBEC ? People make all the difference, nurturing talent and

    allowing space for independent thought and initiative are our

    hallmarks which explains the low attrition rates. Key people behind

    the success of Xebec are - Kiran Bhat - Chief Executive Anil Bhat -

    Executive Director Vincent Sebastian - Branch Manager Radhika

    Akolkar - Account Director Samir Wagh - Manager (Media &

    Events) Sandeep Ghodke - Art Director Anil Rane - Asst. Art

    Director Abhay Bengeri - Branch Director Praveen Meloth - Sr.

    Account Executive Bhavana - Sr. Account Executive DIVISIONS

    OF XEBEC M.A.R.S. 35

    36. Our in house Research division - an independent profit

    centre - allows clients to identify customer preferences, trends,

    deliver a more focused message and track customer response.

    M.A.R.S. delivers professional research services within the Xebec

    umbrella. M.A.R.S. Services: Qualitative and Quantitative

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    Research... Dipstick Studies... Focus Groups... Pre and Post

    Launch Surveys / Studies... Feasibility Reports... Customer

    Satisfaction Surveys... Dealer Audits... STELLAR - P.R. In today's

    fast paced media driven world with shrinking attention spans, PR is

    an important vehicle to increase mindspace and mindshare. Stellar

    is a Xebec group company run by experienced PR professionals

    with strong contacts in press and TV for national coverage.

    CUSTOMER CONNECT C2 is Xebec CRM arm with specialized

    Direct Marketing and Customer Response skills. LIST OF

    CLIENTS ADVERTISING AGENCY # 2 C A R A T THE

    WHEREABOUTS HEAD OFFICE : CARAT MEDIA SERVICES

    INDIA PRIVATE LIMITED Barodawala Mansion, 81, Dr. Annie

    Besant Road, 36

    37. Worli, Mumbai 400 018 India. Email : pat@carat-

    india.com Website : www.carat-india.com CEO: Sulina Menon

    Email : [email protected] Carat India - New Delhi Address :

    E82A, Greater Kailash Part-1, New Delhi, Pin-110048, India Tel No

    : (91) 11 629 4112 Fax No : (91) 11 629 3680 Email :

    [email protected] Website: www.carat-india.com Website:

    www.carat-asiapacific.com Carat is operated by AEGIS MEDIA

    which operates alongwith Carat 2 other reputed worldwide

    organizations viz., Vizeum & Postersope Worldwide MODUS

    OPERANDI : Being a truly professional & competitive in approach,

    CARAT has a well-defined and a well-organised method of

    operations. When the prospective client approaches them for

    getting his purpose served, they conduct a SWOT analysis prior to

    acceptance of any assignment. Although, this SWOT Analysis is

    not at all a cumbersome and patience-testing exercise for the

    client, it is designed in such a way that the agency gets a total

    assurance of the output. 37

    STRENGTHS 1. Carat has a very educated and well-

    groomed set of clientele. They know that the ability to understand

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    and exploit the opportunities of the evolving media market is key to

    their future success. Media communication, and assessing its

    short, medium and long-term effect, is becoming central to every

    business. 2. Carats aim is to deliver business advantage for its

    clients through effective communication programmes that

    maximize return on invesent. This means partnering with its

    clients to produce sustainable improved sales by building brand

    loyalty, value and awareness. They combine insights into brand,

    media and consumer behavior to spark innovative media solutions

    that are unique to every brand. The Carat approach to

    communication planning gets results. 3. The marketing strategy of

    Carat is defined as a 360 communication. This means exploiting

    the whole range of media channels available to a brand which is

    fundamental to building effective communication strategies. As

    messages reach consumers in new and different ways, they can

    refresh and renew a relationship, create excitement and loyalty,

    even advocacy for a product. The task is to build a programme

    which engages consumers with the brand and reveals the inherent

    values in a product or service that cause consumers to say "That's

    for me". In a nutshell, this type of a strategy helps in building a

    brand loyalty and the customer starts relating himself with it.

    3838. SWOT ANALYSIS OF CARAT :

    WEAKNESSES 1. The major weakness of Carat is

    diversification. Carat has grown, flourished and made a

    tremendous progress in t39. 4. Carats clients are very much

    impressed with its ability to work as an international team. The

    breadth of their service and their strong coherent network give

    Carat the scope to truly partner international advertisers who are

    winning the race for global media effectiveness. 5. Every brand,

    market and competitive situation requires a unique solution. Carat

    has a rigorous and proven framework to develop innovative and

    creative media solutions throughout its network. Its approach

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    extends across all media - 360 communication. It works with a

    suite of sophisticated analysis tools and research, helping it to

    understand consumers and to design media campaigns that

    deliver measurable improvements in its clients' business. 5.

    Incisive management of media delivers business advantage to

    Carats clients. Carat has invested over US$30 million on research

    and tools to manage and measure media effectiveness, across

    traditional and online media channels. 6. Consumers' relationships

    with brands and product sectors need to be linked to their

    relationships with media and attitudes to advertising. Analysis

    using tools such as Charisma and Ad-itudes helps Carats clients

    reach their core targets more effectively and develop strategies to

    attract new customers. he field of electronic media only. However,

    for a long-term and sustained growth and development it is the

    need of an hour for every agency to stretch its arms and reach out

    for the world through all possible avenues. 39

    THREATS 1. Carat is specializing only in electronic

    media. This overdependence on one media only is definitely fatal

    for future growth and sustained development. Today, there are

    many new entrants in the market and these agencies are making

    progress by heaps and bounds in all types of media. Carat needs

    to tap other media also to emerge as a genuine world leader. 2.

    Being a multinational agency, it is extremely difficult for small

    customers to approach this agency for their requirement. Carat

    should also concentrate more on Indian market which has a very

    large base of clientele. Firms worldwide have also established

    themselves firmly in the Indian Market which if Carat cannot do or

    does not do will hamper its growth and development process.

    CLIENTS 40OPPORTUNITIES 1. Carat has tremendous growth

    and diversification opportunities in the field of advertising specially

    because of its skilled labour force and dynamic vision. 2. Carat has

    international tie-ups which means that there is ample of scope for it

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    to diversify its operations and tap the market worldwide. 40. 2.

    Carat does not have a broad clientele base which means that it

    does not enjoy a very diversified brand loyalty.

    41. Adidas Diageo EMI Group Ferrero International Fiat

    Henkel Kellogg Kraft Jacobs Suchard LVMH Mannesmann-

    Vodafone Merloni Beiersdorf Bertelsmann BMW Cable & Wireless

    Carrefour Coca-Cola Club Med Danone Group Nissan Pernod

    Ricard Pfizer Philips Renault Sara Lee SCA SmithKline Beecham

    Telefonica Walt Disney ADVERTISING AGENCY # 3 C A N C O

    THE WHEREABOUTS HEAD OFFICE : 518, Tulsiani Chambers,

    41

    42. Nariman Point, Mumbai 400 021. Incorporated in the

    year 1985-86, this rapidly-growing FULL SERVICE Agency

    located at the above-mentioned place alongwith branches at

    Bangalore, Chennai & Delhi, has today achieved for itself a decent

    position in the jampacked arena of the biggies and is continuing its

    progressive march. It is solely indigenous with no foreign

    collaboration or foreign equity participation ; something really very

    praiseworthy. MODUS OPERANDI : Being a truly professional &

    STRENGTHS 1. Canco is a full-service agency providing all types

    of services related to the field of advertising competitive in

    approach, Canco Advertising Pvt. Ltd. has a well-defined and a

    well-organised method of operations. When the prospective client

    approaches them for getting his purpose served, they conduct a

    SWOT analysis prior to acceptance of any assignment. Although,

    this SWOT Analysis is not at all a cumbersome and patience-

    testing exercise for the client, it is designed in such a way that the

    agency gets a total assurance of the output. SWOT ANALYSIS OF

    CANCO : & marketing to its clients. 2. It conducts a SWOT

    Analysis of its clientele to assess their strengths and weaknesses.

    It also first understands the requirements of the client, their

    knowledge about the field of advertising, the 42

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    WEAKNESSES 43 43. characteristics of the products

    and services to be advertised by its client, the type of target market

    and the cost constraints under which its client is functioning. This

    overall study about the client and its products helps Canco to

    devise and develop a proper marketing and advertising plan for its

    client which can optimize clients returns in the restrictive

    environment in which it functions. 3. As far as offering facilities to

    clients are concerned, amongst others, Canco also provides its

    client the facility to make payments of its fees in installments which

    goes a long way in helping the client overcome its financial

    hurdles, if at all posed on him. This is a major breakthrough in

    client servicing and definitely is a major weapon in anyones hands

    to have a stable and a loyal base of clientele. 4. The top level of

    organizational structure in Canco consists of people who are

    professionals having the academic qualifications which are must in

    this field. Understandably, on this account there is bound to be

    professionalism in the approach, attitude and decisions made by

    the agency for its growth and development. 5. Canco offers its

    customers a wide selection amongst the media for canvassing

    their product or services. It advertises in newspapers, uses

    electronic media and also provides the facility of online advertising.

    As the choices are more for the customers, depending on their

    requirements, the characteristics of their products and their cost

    constraints, it helps them in selecting the proper medium for

    advertising their product or service.

    OPPORTUNITIES 1. With professionals at the decision-

    making level, CANCO has an opportunity to expand its operations

    and diversify itself into new 44 44. 1. The biggest weakness of

    Canco is its organizational structure. The organizational structure

    is such that people who are at the top most level in the hierarchy

    and who are professionals in this field are few whereas the line

    staff is quite much. This may lead to centralization of decision-

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    making and an obvious influence of one or two people in policy

    decisions. Centralization of decision-making and authority being

    given to only few can prove to be disastrous for the growth of the

    organization. 2. It does not have a very broad base clientele. The

    list includes just a few major names like HDFC. This means that

    the agency does not enjoy the patronage of many of the big names

    and is dependent on the patronage of privileged few. 3. CANCO

    has not hired any of the eminent celebrities for endorsing the

    products and services of its clients. This is why the appeal created

    for the products and services of its clients does not reach to a large

    group of masses. 4. In this world of cut-throat competition where it

    is important for every agency to have some sort of transparency

    which will make popular its strategies, achievements, client

    patronage, diversification in services offered, CANCO has not

    made any effort to bring itself in the limelight. With no URL and no

    other self-advertisement, it still lingers in some dark corner of

    isolation.

    THREATS 1. CANCO, though making use of print and

    electronic media for advertising products of its clients is a Jack of

    all trades, master on none. Specialisation is required in at least

    one sphere for expansion and further diversification. 2. The

    strength of the staff and the quality of human resource is also a

    major hindrance it is growth and development. When decision-

    making is centralized and that too based on few brains, there is

    bound to be lack of impulsiveness, aggression, timeliness and

    dynamism. 3. CANCO is suffering a big threat from other agencies

    operating in the same set of environmental conditions who are

    constantly offering more and more services to their customers and

    diversifying themselves day in, day out. THE CANVAS ON WHICH

    CANCO PAINTS THE PRODUCT : 45 45. avenues if it makes a

    concentrated effort on improvising the strength of professional

    staff. 2. Making use of the brand image of some celebrities for

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    endorsing the products of its clients can give it an upper hand and

    help in having more reputed customers into its kitty. 3. It can

    project its achievements before the public and through the medium

    of website can lend more transparency to its operations. On these

    lines, this agency is working presently and a website is in the

    development stage.

    46. CANCO provides its customers with a wide-range of

    media to select from viz., in fine print, or online through the

    medium of internet, external advertising like hoardings, pamphlets

    etc. HOW CAN I KNOW ABOUT CANCO? Well, being

    professional and competitive in approach, it is CANCO who

    approaches its prospective clients and not wait for the the clients to

    fathom for it. So, the client does not have to run in sun and shower

    for finding a proper canvas for its product. CANCO provides all the

    facilities for its client coupled with a very co-operative in-house,

    interactive response and hospitality. As far as payment terms is

    concerned, CANCO also takes care of the pocket-size of its

    customers. So on one hand, it gives you the option to pay the

    entire fees in lumpsum, on the other hand it also extends credit to

    its continuous and creditworthy customers. ORGANISATION

    STRUCTURE OF CANCO ORGANISATION STRUCTURE Mr.

    Ramesh Narayan, (Managing Director) Creative Director

    Copywriters (1) Mr. Dhananjay Neelam (2) Mr. Arun Total Staff

    Strength : 24 FACILITIES OFFERED BY CANCO TO ITS

    CUSTOMERS : 46

    47. CANCO fixes the budget for its client depending on the

    requirements of the client, the characteristics of the product to be

    advertised, the target customers, the marketing strategy, the

    aggressiveness or otherwise of the advertising campaign, the type

    of customers to be targeted, the cost constraints of the

    environment in which the client is functioning etc. Based on this

    study, the budget is given by the agency to its client. AWARDS

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    WON BY CANCO a. Given by Alert India, Non-Government

    Organization (NGO) which creates awareness for leprosy . b.

    Given by Advertising Club, Mumbai ADVERTISING AGENCY # 4

    47

    48. McC A N N - ERICKSON HISTORY McCann-Erickson

    WorldGroup was chartered in 1997 as a new model for integrated

    marketing communications. The WorldGroup was created by

    uniting best-in-class marketing communications firms in a range of

    disciplines behind a common mission and vision. In only a few

    years, McCann-Erickson WorldGroup has emerged as one of the

    world's leading integrated brand communications organizations--in

    global size, in professional quality, and in the number of clients we

    serve with multiple-communications services. Each WorldGroup

    agency retains the best of its distinctive heritage. Most notably,

    McCann-Erickson, is currently celebrating its 100th anniversary,

    representing a century of innovation and excellence in advertising

    and communications The rich histories of the member agencies of

    World Group provide the foundation for the WorldGroup's

    unparalleled expertise and their unique shared culture. In its brief

    history, the WorldGroup has cultivated a common culture across its

    global network, based on shared strategic tools and a shared

    vision for effective marketing communications. WHOS WHO :

    John J. Dooner CHAIRMAN, CHIEF EXECUTIVE OFFICER

    McCANN- ERICKSON WORLDGROUP 48

    49. Arther DAngello CHIEF FINANCIAL OFFICER

    McCANN-ERICKSON WORLDGROUP Eric Einhorn EXE. VICE

    PRESIDENT, CHIEF STRATEGY OFFICER MCCANN-

    ERICKSON WORLDGROUP President, CEO Max Gosling

    Representative Director McCann-Erickson Japan REGIONAL

    DIRECTOR Peter Hamilton MCCANN-ERICKSON ASIA PACIFIC

    CHAIRMAN AND CEO Robin Kent UNIVERSAL MCCANN

    PRESIDENT AND CHIEF OPERATING OFFICER Bill Kolb

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    MOMENTUM WORLDWIDE REGIONAL DIRECTOR, McCANN-

    ERICKSON EUROPE, Ben Langdon MIDDLE EAST & AFRICA

    Pamela Maphis CHIEF EXECUTIVE OFFICER Larrick MRM

    PARTNERS WORLDWIDE VICE CHAIRMAN, CHIEF CREATIVE

    OFFICER Marcio M. WORLDWIDE DIRECTOR OF

    MULTINATIONAL ACCOUNTS Moreira MCCANN-ERICKSON

    WORLDGROUP REGIONAL DIRECTOR LATIN

    AMERICA/CARIBBEAN Jens Olesen MCCANN-ERICKSON

    WORLDWIDE EXECUTIVE VICE PRESIDENT Dr. Joseph

    DIRECTOR OF RESEARCH & INSIGHT DEVELOPMENT

    Plummer MCCANN-ERICKSON WORLDGROUP CHAIRMAN

    EMERITUS Stan Rapp MRM PARTNERS WORLDWIDE Joe

    Torre CHAIRMAN AND CEO TORRE LAZUR MCCANN

    HEALTHCARE WORLDWIDE Chris Weil CHAIRMAN AND CHIEF

    EXECUTIVE OFFICER 49

    50. MOMENTUM WORLDWIDE MODUS OPERANDI OF

    McCANN-ERICKSON TOOLS McCann-Erickson WorldGroup's

    unique and proprietary shared tools help unite different marketing

    communications disciplines. They unite professionals in different

    offices around the world. They provide a common "language" for

    diverse teams working together for common clients. Our tools also

    set us apart. They are disciplined yet flexible. They combine our

    best practices with our cutting-edge thinking. We have specialized

    tools in various disciplines, but the centerpiece is the holistic Brand

    Optimization Map. Building off of the foundation of the Road Map

    to Effective Communications, The Brand Optimization Map

    incorporates the thinking behind the best strategy and planning

    processes of various disciplines into a unique, universal strategic

    service. By offering a holistic, integrated approach to strategy

    development, creative execution, and campaign evaluation, the

    Brand Optimization Map service can generate brand ideas that

    have the potential to solve clients' fundamental business problems

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    and position their brands for long-term growth. CREATING THE

    DEMAND-CHAIN By systemically linking supply activities from

    sourcing and manufacturing to distribution and customer orders,

    corporations have successfully solved what is called the supply

    chain. By enabling "just in time" delivery of products or services to

    meet demand, this process benefits marketers through increased

    efficiency, productivity and lower costs. 50

    51. But in today's competitive marketing climate, with a

    renewed focus on building customer and top-line growth, demand

    creation is, arguably, the new success factor. To meet this

    important business need among all types of manufacturing and

    service corporations, McCann-Erickson WorldGroup has

    developed a service that links demand creation activities to make

    them more synergistic and powerful, thus helping corporations to

    create enduring marketplace growth. This proprietary service

    offered by McCann-Erickson WorldGroup is known as Creating the

    Demand Chain. This service, also known as the McCann Demand

    Chain, provides marketers with all the critical steps in demand

    creation in a cohesive, effective, and optimized manner. The

    ultimate benefit of the McCann Demand Chain service in whole,

    or in part, is to improve demand creation for companies and

    brands, increasing the sale of products and services and

    optimizing top-line revenue. Creating the Demand Chain

    encompasses a linked set of services involving six "links."

    Importantly, marketers can leverage the McCann Demand Chain

    service as a whole, or in part, since many of the service

    components can be adapted to the marketer's existing company

    activities. These six service elements encompass Demand Vision,

    Brand Idea, Resource Optimization, Brand Contact, Relationship

    Management and Demand Performance activities. While this

    service and its component services are delivered through an array

    of marketing communications operations across multiple channels,

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    their unique linkage makes them more than the sum of the parts.

    Each element leverages proprietary, market-tested McCann-

    Erickson strategic, collaborative and measurement tools; and each

    is supported and optimized by specialized expertise, resources,

    creativity, software and infrastructure. 51

    52. Brand Optimization Map The Brand Optimization Map

    (BOM) has been created by McCann-Erickson WorldGroup to

    provide our corporate clients with a new, more inclusive approach

    to strategy development, one that fully recognizes the evolving

    nature of brand communications. This strategy development

    service recognizes that brand marketers around the world are in a

    changing relationship to their customers. The Brand Optimization

    Map thus takes a broader and deeper strategic perspective to

    account for the new realities facing marketing-focused businesses

    today, including their required coordinated usage of a full range of

    marketing communications disciplines. In today's highly demanding

    business environment, the focus has shifted away from improving

    profits through operating efficiencies to generating top-line revenue

    growth. Demand creation is the new priority. Demand creation in

    the new marketing communications environment has become

    especially challenging. The technology revolution has surrounded

    customers and consumers with a plethora of information and

    entertainment options, and, as a result they have become more

    elusive. The consumer is firmly in control. They expect choice,

    information, speed of service, and ease of acquisition. This new

    multi-channel environment adds a whole new dimension to the

    challenge of marketing integration. And with critical mass so hard

    to achieve, integration has become the new imperative.

    Traditionally, the focus of integration has been the development of

    a common brand platform or idea to unite the marketing message

    across multiple disciplines. This integration of content is still a core

    priority. But today, given the confusion of marketing channels, the

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    increased sophistication and scope of all our marketing

    communications disciplines 52

    53. and the emergence of new internet-based business

    models, there is a demand for a new kind of integration - the

    integration of resources. The Brand Optimization Map is a

    unique service that brings together these two fundamental needs

    in integration, content and resources, under a unified strategic

    framework to optimize the marketing communications plan. It

    leverages proprietary strategic principles, tools and software that

    identify marketing priorities, optimize budget allocation and

    leverage the full spectrum of marketing communications disciplines

    for what they do best, in the right "proportions." The Brand

    Optimization Map also introduces a proprietary method of

    evaluating the ROI of the fully integrated marketing program. From

    a standpoint of "the user," The Brand Optimization Map is

    intuitive in concept, but sophisticated in its ability to embrace the

    complexities of the new marketing environment. It facilitates

    collaboration, idea generation, resource allocation and creative

    execution. It is flexible in its ability to be used locally or regionally,

    for brands, sub-brands or marketing initiatives, and for any

    specified marketing period. McCann-Erickson World Group uses

    The Brand Optimization Map service to leverage the specialized

    talent and creative energies of all our marketing communications

    "corridor" centers of expertise while working collaboratively with

    our clients to create powerful brand communications strategies.

    The following are the key steps of The Brand Optimization Map

    service: BRAND OPPORTUNITY Brand Health Check 53

    54. In order to create big ideas, we must step back and

    look at the big picture. To this end, BOM's Brand Health Check

    service offers a due-diligence process for assessing the overall

    health of a brand. The Brand Health Check service factors in

    evolving consumer perceptions, industry trends and competitive

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    pressures. By forcing answers to critical questions, it provides the

    clarity to recognize major brand opportunities and solve brand

    problems. Using the framework of McCann's Universal Marketing

    Drivers - a set of marketing objectives that are common to all

    marketing communications disciplines regardless of media and

    message specifics - the service captures the essence of the

    competitive marketing situation and diagnoses priorities for both

    content and resource integration. McCann Pulse McCann Pulse

    serves as a leading-edge method of generating consumer insight

    that informs marketing innovation and execution. McCann Pulse

    insights feed the development of brand imagery, new products and

    services and channel strategy. The McCann Pulse service

    output is based on consumer dialogue held at McCann-Erickson

    offices around the world and is reported on the company intranet.

    Regional decisions can be made through the collection of key

    market data, and they in turn are used to create a comprehensive

    global picture of evolving trends. The focus of McCann Pulse is

    as much on the here and now, as where things are heading.

    Through proprietary probes, it uncovers what is important in the

    lives of consumers, how they view the world changing and 54

    55. what their evolving goals are. These issues direct us to

    new product, service, and communications ideas. This McCann

    Pulse service provides the consumer backdrop for the evaluation

    of the Brand Opportunity as well as development of the McCann

    Brand Idea, via the Brand Footprint and McCann Selling

    Strategy service components. McCANN BRAND IDEA The

    Brand Optimization Map platform for content in marketing

    communications is determined by the Brand Footprint - a

    statement of the desired meanings, values and personality of the

    brand - and the McCann Selling Strategy which determines a

    powerful strategic idea for creative execution across all marketing

    communications disciplines. The Brand Footprint uses McCann's

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    Brand Archeology techniques to uncover the full depth of

    meanings and values associated with the brand through the eyes

    of its customers and consumers. The McCann Selling Strategy

    draws on this "brand insight" to determine where the brand needs

    to be in the future, thus creating a relevant and credible strategic

    platform to "propel" the brand towards its destination. MARKETING

    MIX McCann Fusion 2.0 is a proprietary marketing mix software

    model that provides the optimal allocation for each marketing

    discipline to attack the stated marketing challenge. It looks at the

    marketing picture "top down," through software that captures

    relationships between our marketing communications disciplines

    and the Universal Marketing Drivers in the context of each

    category and country. The input to McCann Fusion 2.0 is 55

    56. the Brand Health Check. The output is a benchmark

    budget allocation across marketing disciplines for Brand

    Optimization. As a complement to this "top down" evaluation,

    McCann's Marketing Task Cycle works "bottom up" to determine

    the ideal role for each marketing communications discipline. The

    Marketing Task Cycle identifies the barriers that need to be

    overcome, and assigns the marketing that can best overcome

    them. This ensures we address critical brand needs and leverage

    our marketing communications disciplines for what they do best,

    and to the extent that they can make a difference. BRAND

    PERFORMANCE: The McCann Brand Clout Index The Brand

    Clout Index measures a brand's competitive ability to attract and

    retain customers in the marketplace - both currently and in the

    future. It can be used to help quantify the Brand Health Check and

    to track the performance of an integrated program. Thus it serves

    as the performance benchmark of The Brand Optimization Map.

    The McCann Brand Clout Index, managed by NFO WorldGroup

    research, is currently being rolled out of test market. Road Maps to

    Effectiveness : The Road Map to Effective Advertising The Road

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    Map to Effective Communications Why the McCann Road Map

    Service was Created: Consumer behavior is harder to understand

    and predict. Media is proliferating. Distribution channels are

    changing. And competition is increasingly fierce. In this fast-

    moving environment, it is no wonder many 56

    57. established brands lack a powerful strategy, often lose

    direction and many new products fail to connect with customers.

    To navigate the ever-changing landscape, McCann-Erickson

    WorldGroup has developed The Road Map to Effective

    Advertising and, for total marketing communications programs,

    the Road Map to Effective Communications. This

    comprehensive service of proprietary tools is designed to create

    effective advertising and communications strategies that make an

    impact in today's cluttered marketplace. The McCann Road Map

    service results in communications strategies that create loyal

    customers when audiences are moving targets and strengthen

    core brand values. McCann Erickson WorldGroup recognizes the

    need for consistent, tested methods and tools for creating

    communications that build brand value around the world and

    across marketing communications disciplines. The McCann Road

    Map service is used globally to ensure the consistency and high

    quality of communications programs around the world. It is also

    used throughout the WorldGroup's range of marketing

    communications companies to make certain that integrated

    marketing campaigns work in synergy. The McCann Road Map's

    Key Components: The Road Map to Effective Advertising, the

    prototype system on which The Road Map to Effective

    Communications is based, is a full arsenal of services to guide

    the creation of effective communications. It begins with the

    development of consumer and brand insights and ends with the

    evaluation of the ideas that are used to create customers and build

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    brand values. Components of The Road Map to Effective

    Advertising include: 57

    58. McCann Pulse -- the on-going exploratory service for

    gaining an in-depth understanding of consumer trends in order to

    develop relevant consumer insights. Brand Footprint -- for

    articulating the core brand essence that allows a brand to travel

    successfully across marketing landscapes. McCann Selling

    Strategy -- for converting consumer insights and brand essence

    into a focused communications strategy that is unified by a single,

    driving selling idea. And finally, McCann AdWorks -- a qualitative

    consumer validation and feedback process to assess the

    effectiveness of marketing communication campaigns. McCann

    Pulse McCann Pulse is the regular monitoring of collective

    cultural undercurrents at work on global consumer groups. Its goal

    is to better understand how these undercurrents affect consumers

    and their consumption; whether observed crosscurrents are

    connected or isolated; and whether they represent a momentary

    fashion, a sustainable trend, or a real cultural shift within a market.

    McCann Pulse is a proprietary service that provides complete

    immersion in the lives of consumers through ongoing monitoring

    and personal dialogues. Following are the three components of

    McCann Pulse: The Pulse of Popular Culture In-depth analysis

    of the content and symbolism of the various forms of media that

    both reflect and influence consumers. The Pulse of Observers of

    Change Ongoing dialogues with leading-edge thinkers whose

    fields of interest relate to our target consumer groups. 58

    59. The Pulse of the Consumer Unconventional dialogues

    with selected consumer constituencies that probe personal insights

    and what is new in their lives. Pulse can offer clients: Insight into

    new values, ideas and trends An ability to talk more accurately in

    the language of consumers Consumer perspectives of major

    marketing issues or events Context for new creative ideas Brand

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    Footprint The Brand Footprint service uses a tool that defines a

    brand's essence, so that marketers can manage and build their

    brands most effectively. It provides a clear understanding of which

    values need to be protected and leveraged in brand

    communications. And it helps charter a brand's growth into new

    territories, from expanding a brand in new geographic regions, to

    establishing it across multiple product or service categories, to

    extending it to an electronic marketspace. As brands expand, their

    value and meaning are often put at risk. These risks stem from the

    need to reconcile a brand's heritage with product innovation, and

    from the need to re-express the brand in the context of new

    competitive sets, new cultures, and new media. The Brand

    Footprint service is designed to protect the equity of the brand

    by conveying the brand essence clearly and succinctly, but with

    enough texture to inspire a range of marketing activities, from

    product development to integrated communications. The Brand

    Footprint articulates the three most central brand meanings and

    its three most prominent personality characteristics. McCann

    Selling Strategy 59

    60. The McCann Selling Strategy is a service that is

    single-mindedly focused on generating brand-building ideas. Ideas

    that attract customers. Ideas that build corporate and brand

    franchises. And ideas that create marketplace dominance for

    clients. While traditional strategy has often been highly analytic,

    the McCann Selling Strategy offers imaginative

    conceptualization. It is guided by the McCann Selling Strategy

    platform, a process of analysis and idea generation that helps

    move a brand from its current position in consumers' minds to a

    desired perceptual space. The McCann Selling Strategy

    uncovers the motivations of conceptual target audiences and

    results in a strategic concept that pinpoints a Selling Idea. Unlike

    many traditional strategy briefs that are formulaic, the McCann

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    Selling Strategy is a dynamic and living process. It's a way of

    thinking, working and creating as a team. It is a discipline pursued

    with passion - - that ensures that we stay true to our role of

    creating ideas that add perceptual value to clients' brands.

    McCann AdWorks As the last stage of the Road Map to Effective

    Advertising service, McCann AdWorks tool ensures more

    effective marketing communications by providing feedback from

    consumers to a proposed campaign expression of the Selling Idea.

    McCann AdWorks service is tailored to a specific product, a

    market situation, a cultural environment. Unlike most leading ad

    testing firms that offer a simple go/no-go decision on creative work,

    McCann AdWorks is designed to help us understand whether we

    have communicated the Selling 60

    61. Idea we set out to communicate, whether the Brand

    Footprint is understood and if the campaign is entertaining. With

    McCann AdWorks, we can take the lead in facilitating a real-time

    discussion about advertising effectiveness and help clients make

    the right decisions that lead to advertising, direct marketing or

    other marketing communication work that produces great

    marketplace results at the earliest stages of creative development.

    The McCann Road Map service of proprietary tools has proven

    valuable to a range of McCann-Erickson WorldGroup clients

    around the world. We believe that, as competition escalates on a

    global scale, our Road Map service will become even more

    valuable in the future. MOMENTUM EXPERIENTIAL MARKETING

    PLATFORM Today, consumers take functional features, benefits,

    quality, and a positive brand image as a given. What they want are

    breakthrough service offerings, cutting-edge products, and brands

    that they can relate to, connect with and incorporate into their

    lifestyles. Increasingly, marketers understand that consumers are

    living human beings with experiential needs: consumers want to be

    stimulated, entertained, educated and challenged. They are

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    looking for brands that provide meaningful experiences and thus

    become part of their lives. The degree to which a company is able

    to deliver a desirable consumer experience - and use brands to do

    so - will largely determine its success in the global marketplace in

    the future. Trained to think of marketing and branding in terms of

    experiences, Momentum Experiential Marketing Services create

    unique, nearly impenetrable emotional bonds with consumers.

    These bonds are based on 61

    62. consumers' real experiences with the brand on every

    interactive level. Momentum Experiential Marketing Services are

    designed to deliver the brand experience during both the pre-

    purchase period (brand in mind) and the post-purchase period or

    consumption period (brand in hand). At Momentum, we know that

    companies that spend money on acquiring customers (brand in

    mind) but fail to deliver on the brand promise (brand in hand) will

    ultimately fail, causing high dissatisfaction and high brand

    switching. STRATEGIC APPROACH TO DEVELOPING THE

    BRAND EXPERIENCE Our goal is to have the brand embody an

    experience that is valuable, optimal, and cannot be duplicated by

    competitors. MOMENTUM EXPERIENTIAL MARKETING

    SERVICES The ultimate goal of Momentum Experiential

    Marketing is to create holistic brand experiences for customers.

    Our strategic approach is guided by a simple formula: Brand =

    Reputation (in the marketplace) + Promise (to the marketplace) +

    Experience (of customers) BRAND = REPUTATION (in the

    marketplace) The first step is to develop a Brand Footprint. The

    Brand Footprint is Momentum's unique tool for defining a brand's

    essence. The Brand Footprint is a coherent statement of a

    brand's meaning and personality. Specifically it embodies: What

    the brand "means". What the brand "means" is what a brand gets

    credit for in the eyes of consumers - its reputation across a number

    of key 62

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    63. dimensions. For example, Bayer means aspirin, doctor

    recommended, and prevention against heart attacks. What the

    brand "is". What the brand "is" is how we would describe the

    brand's dominant personality traits - generally those that

    correspond to its principal meanings. For example, Bayer is

    experienced, safe, and versatile. BRAND = PROMISE (to the

    marketplace) The Brand Footprint provides critical insight into

    how the brand is perceived in the marketplace; this understanding

    allows us to build meaningful relationships with consumers. The

    relationship is a promise that their experience with the brand will

    be personally relevant, consistent, meaningful and memorable - an

    experience that will be sought after time and time again. A Brand

    Promise is essentially a reason for being, a company's long-term

    ambition for their brand. It encompasses how the company views

    its industry today and tomorrow and the role they want their brand

    to play in it. It seeks to carve out a premium, non-duplicable point

    of differentiation in the marketplace. A Brand Promise sets forth

    the foundation needed for organizations to focus in on how they

    want the external world to view the brand, redesign operations and

    strategies in order to deliver on the promise, and then develop

    marketing communications to fit with the image they are trying to

    portray. A Brand Promise incorporates every aspect of a brand's

    business model in order to create a holistic brand experience for

    the consumer. At Momentum, we know that public impressions of

    brands are based only in part on communication and public

    images. More than anything, they are based upon 63

    64. the daily explicit and implicit interactions that people

    have with a brand. In other words, the Experience. BRAND =

    EXPERIENCE (of customers) Experiences are personal events

    that occur in response to some stimulation (e.g. as provided by

    marketing efforts before and after purchase). An experience

    involves the entire living being and can be infused into a product,

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    used to enhance a service, or created as an entity into itself.

    Experiences provide consumers a way to engage physically,

    mentally, emotionally, socially or spiritually in the consumption of

    the product or service making the interaction meaningful and real.