ABSTRACT

Although phenomenon of advertising is researched for several decades but intercultural

advertising is rather new scope of research. One of the key elements that characterise

culture is cultural values. The paper proposes two different points of view towards

cultural values and their impact on advertising as one of marketing elements. Therefore,

the aim of the paper is to reveal how stability of cultural values can impact strategy of

advertising.

Cultural values doubtless affect both: customer behaviour and marketing solutions of

advertising. Thus cultural values are the crucial element while making decisions

concerning with segmentation and positioning. Two different approaches regarding

stability of cultural values are represented in scientific literature. Some authors believe

that within changing environment mutations of consumption appear, respectively,

cultural values undergo changes as well. This means that some values are changed with

the other ones. Despite of this, some of scientists highlight that values are basis of

culture, so they cannot change. Impact of these two approaches on advertising is revealed

in the paper.

INTRODUCTION TO THE TOPIC

he advertising business has become such an important factor in the economy in many

countries, especially in the United States, that it also changes the economy itself, society,

culture, and the political system.

 

The stimulation for the demand of products and services helps the economy grow

stronger and stronger. New inventions become known much faster and can establish their

spot in the sales figures of the economy. If there are more people buying these products

the overall costs will drop and the product will become cheaper for the customer which

raises his willingness to buy even more. On the other hand advertisements are very

expensive and some economists believe that these costs are put on top of the actual price

paid by the customer.

 

Critics argue that advertising can also have a huge influence on society. It tells the

consumers that only purchasing products makes you happy and therefore people compare

each other on their belongings. Women also compare themselves with the beautiful and

very skinny models they see on commercials and ads. This sometimes results in eating

disorders and a low self-esteem of women who don’t look like these models. Another bad

effect is, that minority groups, especially in the United States are portrait in a subordinate

position, which settles in the minds of people. Commercials are also an important part of

the income of a TV station which leads to the suspicion that a news channel might not

report on an incident about a company they depend on. A lot of TV shows are also based

on these commercials, and if the ratings aren’t good enough the show will be stopped.

Only those shows which attract a lot of viewers will be shown, which is not very

differentiated and put minorities like older people at a disadvantage.

 

Advertising can also have an impact in politics. $ 467 million were spent on

advertisements and TV commercials in the elections of 1998. It gives the opponents the

chance to respond to charges very quickly reaching a few million viewers. But since this

is very expensive only very rich people have to chance to run for a political position or at

least depend on the donation of wealthier people who could have a huge impact on

democracy this way. The political issues talked about in an election are also very much

simplified because the spots are only about 30 seconds long, and you can’t really discuss

a lot in such a short period of time.

 

There is finally the impact advertising can have on the culture of a country. The

globalized economy uses the same commercials in a lot of different countries, which

leads to a break down in the differences of these societies. Children will grow up not

knowing how their culture has been before in their country. It can also lead to a lot of

discussion about moral values if we just think about the very controversial ads of

Benetton we have discussed

\

English-language advertising in India is among the most creative in the world. TV

advertising (especially in the Hindi language) has made major headway in the past 10

years, especially with the advent of satellite TV. Hindi TV channels - such as ZEE and

Sony TV - have fashioned themselves on lines of Western channels, and most advertising

on such channels is glitzy, smart and tailored for the middle classes. Such channels have

forced the state-owned channel, Doordarshan, to add spice to their programmes which,

earlier, were quite drab. The importance of the Hindi-speaking market (which is also

fluent in English) is borne out from the fact that STAR TV, once an all-English channel,

is now rich in Hindi programmes. Even the British Broadcasting Corporation is

reportedly toying with the idea of airing Hindi programmes. Most major international

advertising firms have chosen local Indian partners for their work in this market. Mumbai

(formerly Bombay) remains the centre of the advertising business in India.

India has a diverse and growing number of daily newspapers. Since 1991, the increase of

business and financial news reports in English-language and vernacular dailies has

paralleled the economic reform programme and the movements of the stock markets.

Most leading publications have their circulation audited by the Audit Bureau of

Circulation which has an India-dedicated office in Mumbai (formerly Bombay). Leading

business newspapers include Business Standard and  Economic Times. Magazines

include India Today, Business India , Business Today, and Business World. In addition

to advertising, other kinds of trade promotion activities are also well-developed in India.

A large of exhibitions are held all over India, the most prominent ones at Pragati Maidan

in New Delhi. Conferences and seminars are also widespread. 

Marketing The mail service in India is slow though generally reliable. Telephone service

is poor, but rapidly improving.

While private courier services are growing strongly and the telecommunications sector is

opening up for a range of modern services, until goods can be ordered conveniently and

delivered with certainty, Marketing will be limited to door-to-door sales. An inefficient

state-owned banking system also prevents prompt transfers of funds from consumers to

retailers. Credit card companies are increasingly targeting India's one million cardholders

through directly-mailed offers of goods and services. The most successful direct

marketers in India today are the millions of door-to-door sales representatives who visit

neighborhoods and villages across India. From ice cream vendors to carpet sellers, India

's residential neighbourhoods are frequently visited by merchants offering a variety of

products. Some soft-drink companies have used beauty queens to make surprise knocks

on the doors!

Marketing is a discipline within marketing that involves contacting individual customers'

(business-to-business or consumer) directly and obtaining their responses and

transactions for the purpose of developing and prolonging mutually profitable customer

relationships.

The term was coined in the 1970s by Lester Wunderman, who pioneered Marketing

techniques with brands such as American Express and Columbia Records, and by Herb

Ahrend who introduced mass direct mail advertising techniques as early as the 1940s

(employing hundreds of typists in New York City to mass produce offerings, the likes of

which are now done by computer and laser printer). Marketing is a form of marketing

that attempts to send its messages directly to consumers, using "addressable" media such

as mail and email.

Therefore, Marketing differs from regular advertising in that it does not place its

messages on a third party medium, or in the public market, such as a billboard or a radio

commercial would. Instead, the marketing of the service or commodity is addressed

directly to the target customer. Marketing uses non-addressable media as well as

addressable ones. The important thing is that it seeks a response and it is this which the

recipient, usually a marketer, bases their future actions, or contact strategy, on. In fact all

Marketing is done through media, it's just that many, e.g. email, telemarketing, SMS, are

"addressable". It usually is not taken to include face-to-face contact. Marketing is

attractive to many marketers, because in many cases its effectiveness can be measured

directly.

For example, if a marketer sends out one million solicitations by mail, and ten thousand

customers can be tracked as having responded to the promotion, the marketer can say

with some confidence that the campaign led directly to the responses.

By contrast, measurement of other media must often be indirect, since there is no direct

response from a consumer. Measurement of results, a fundamental element in successful

Marketing, is explored in greater detail elsewhere in this article. While many marketers

like this form of marketing, it is sometimes criticized for generating unwanted

solicitations, which are sometimes referred to as junk mail and e-mail spam. Direct

selling is a dynamic, vibrant, rapidly expanding channel of distribution that has proven to

be a highly successful and effective method of compensating direct sellers (independent

contractors) for the marketing and distribution of products and services directly to

consumers. Direct selling can best be described as the marketing of products and services

directly to consumers in a face to face manner, generally in their homes or the homes of

others, at their workplace or other places away from permanent retail locations.

Direct sales typically occur through explanation or personal demonstration by an

independent direct salesperson. These salespeople are commonly referred to as direct

sellers. The strength of direct selling lies in its tradition of independence, service to

consumers, and commitment to entrepreneurial growth in the free market system. Direct

selling provides accessible business opportunities to people looking for alternative

sources of income, and whose entry is generally not restricted by gender, age, education,

or previous experience. It should be noted that around the world a substantial majority of

direct sellers are women, and most work in their direct selling businesses on a part-time

basis. A very small percentage of direct sellers are employees of the companies whose

products they sell. Independent direct sellers are those individuals engaged on their own

behalf, or on behalf of a direct selling company, selling products and services through

personal sales contacts, and are commonly referred to in some jurisdictions as

independent contractors. Essentially, this means that the company whose products they

distribute does not employ these independent salespeople with each individual operating

their own businesses. These independent direct sellers have an opportunity to earn profits

from their business, and also accept the responsibility for the risks associated with

operating a business.

The products sold by direct sellers are as diverse as the people themselves and include:

cosmetics and skin care products; laundry and personal care items; nutritional products;

telecommunication and technology oriented products; vacuum cleaners and home

appliances; household specialties; household cleaning products; food and nutrition

products; toys, books and educational products; and clothing, jewelry and fashion

accessories. Direct selling provides important benefits to individuals who desire an

opportunity to earn an income and build a business of their own and to consumers who

enjoy an alternative to shopping centers, department stores and to the consumer products

market.

Direct selling offers an alternative to traditional employment for those who desire a

flexible income earning opportunity to supplement their household income, or whose

responsibilities or circumstances do not allow for regular part-time or full time

employment. In many cases, direct selling opportunities develop into a fulfilling career

for those who achieve success and choose to pursue their independent direct selling

business on a full time basis.

Direct selling allows individuals to become proactive and positive about their lives

instead of waiting for the economy to improve, the next salary increase or hoping for

circumstances to change. Consumers benefit from direct selling because of the

convenience and service it provides, including personal demonstration and explanation of

products, home delivery, and generous satisfaction guarantees.

Moreover, direct selling provides a channel of distribution for companies with innovative

or distinctive products not readily available in traditional retail stores, or who cannot

afford to compete with the enormous advertising and promotion costs associated with

gaining space on retail shelves. Direct selling should not be confused with terms such as

Marketing or distance selling such as telemarketing, direct mail, and direct response.

Although direct selling organizations occasionally use some Marketing or distance selling

techniques and technology to enhance their businesses, the primary difference between

the two methods of marketing is the face to face, or personal presentation that is always

an aspect of the direct selling relationship. Direct selling is the direct to home service of

consumer goods cutting the middlemen in the manufacturer-distributor-wholesaler-

retailer channel.

SYSTEM OF DIRECT SELLING

Direct Selling encompasses:-

Classical Direct Selling

Multi-Level Marketing (MLM)

Referral Marketing

These are selling systems, which offer a variety of compensation plans (financial reward)

and administrative systems, individual to each company.

The main difference between a Multi-Level Marketing company and a Network

Marketing company is the structure and benefits of the Compensation plan.

Classical direct selling

Independent Contractors sell products directly to a wide customer base and earn financial

rebates on all products sold. In many cases, depending on the nature of products, many

products are required on a regular basis bringing repeat sales and further income. New

customers are sought to add to their client base. The emphasis in classical direct selling is

for the independent operator to sell products to a wide base of their own customers,

thereby earning rebates on all products they sell.

Multi-Level and Network Marketing

These terms refer to a marketing system in which individual independent contractors

recruit, train and develop a team of product users.

These new independent contractors also recruit, train and develop their own team of

product users, who also recruit, train and develop their own team, etc.,

Although there can be variations between companies, the basic concept is that any

individuals sales performance can be multiplied by using the efforts of others.

The multi-level/network marketer creates a "network" of people who work directly for

themselves and indirectly for the person who introduced them into the network i.e. "A"

contacts "B" who contacts "C" who contacts "D", and so on.

This lineage of people is (typically) called a "downline". Financial reward is gained

through rebates paid on the individuals product sales, and rebates paid on his/her down

line product sales.

More and more classical direct selling companies now use elements of

multi-level/network marketing as they recognize its potential for exponential growth.

Over half of the direct selling companies worldwide, and almost all new direct selling

companies, use multi-level/network marketing as a means to promote their business.

However, the success of any business depends upon how well individuals "duplicate"

their efforts – all independent contractors – whatever level - should personally be using

the products and should receive and give regular training regarding products, business

skills and life skills.

The emphasis in Multi-Level and Network Marketing is for the independent operator to

be a product user, to sell products to a small base of their own customers, and to recruit,

train and develop many other product users who will also sell products to a small base of

their own customers and recruit, train and develop other product users, etc.,

Referral Marketing

This term refers to a marketing system in which individual independent contractors refer

other independent contractors to a network marketing or multilevel organization for the

purpose of selling or providing products and services. Such referrals usually take place

down to four or six levels with all referring Independent contractors earning a referral

income for the products or services introduced to the marketing organization. TYPES OF

DIRECT SELLING

Person-to-person selling

This is a method of direct selling where independent contractors sell services and

products directly to people on a one-to-one basis in the home, office or workplace, away

from a retail outlet. The business opportunity is also often presented during this meeting.

Party-Plan or Group Selling

Under this type of plan, the direct seller or retailer arranges with a friend who shall act as

"hostess" to invite a group of friends for demonstrations of a product or products. In the

course of this "party", orders are received for products. The "hostess' receives

merchandise/products as compensation for the use of her home and her help in getting

their friends together.

The party plan is a method of marketing products by hosting a social event, using the

event to display and demonstrate the product or products to those gathered, and then to

take orders for the products before the gathering ends.

This plan has been used primarily to sell items whose main appeal is to women, such as

Tupperware itself (a food-storage system), kitchen utensils, home decor items, and

similar products.

Especially in the case of these items, the system of taking orders for later delivery of

products has in some instances been replaced by the direct sale of items out of an

inventory.

Much has been made of the decline of the number of women with no employment outside

of the home and its implications for the future of this form of marketing, but numerous

organizations are still using it and have no plans to discontinue it.

It has one of the few sectors that have “women on top”. They have the flexibility of

choosing their working hours. It also offers a business opportunity with a little or no

investment, fewer work hours and no boss. In a state where limited avenues of

employment forced them to take menial jobs, it was group selling that contributed to a

great deal to improving their working condition. Thanks to group selling and Marketing,

the sales of AVON, an US multinational dealing with beauty products crossed Rs 1 Crore

sales in quick time. There is no upper limit to what you can earn in group selling. The

direct sales cosmetics market has grown 11 per cent in 2004-2005.

Generally, these products are sold in group presentations (Party Plan), or on a person-to-

person basis. In a Party Plan approach, the direct salesperson demonstrates products to a

group of guests, invited by a host in whose home or other location the direct selling

demonstration takes place.By contrast, other direct sellers will often explain and

demonstrate the products they offer to consumers in the comfort of the consumers'

homes, at a time, which is convenient for them. Tupperware India which is growing on a

fast track year after year follows a single level method of compensation- commissions on

sales generated. The party plan is largely regarded as primarily the invention of Brownie

Wise, who developed it for the Tupperware company in the early 1950s.

The success of Tupperware was widely emulated. In this system, full-time commissioned

representatives of the sales organization, almost invariably women, approach other

women about hosting a social event in their homes during which a product will be

demonstrated.

There are 2 types of direct selling-

1. Single level Marketing and

2. Multi Level marketing.

\

REVIEW AND RESEARCH

K S Oils is a leading integrated edible oil company and is the trusted name behind

renowned brands like Kalash, Double Sher, K S Gold, among others. Our consumer

brands and products in mustard oil, soybean oil and palm oil are a household name with

Indian consumers who use our oils regularly as a healthy cooking medium. A leader in

mustard oil in India, K S Oils today enjoys 11% market share in the overall mustard oil

segment with a dominant 25% market leadership in branded mustard oil.

The media is big business in India, relying on corporate advertising and the spending of

the middle class. But it is hard to claim it is a public good that reaches most citizens.

Contrary to what we might think, there is an inherent tension between India’s much-

hyped economic growth and its deepening democracy. Economic success has enabled a

middle class to emerge, but middle class culture remains irrelevant to the many Indians

left behind economically. Democracy has enabled historically marginalised sections of

society to become politically powerful through sheer numbers and effective grassroots

mobilisation, while the elite have tended to retreat from the political sphere. Economic

growth has led to greater inequalities, while democratic growth has given a stronger voice

to those who suffer from those inequalities. The media may do a good job of providing

news to the estimated 300 million members of the Indian middle class — in fact,

coverage of political issues tends to be quite good — but as long as more than 700

million Indians are sidelined from its gaze by their inability to conspicuously consume,

the media’s role as public service is severely limited.

Indian media today must cater to the interests of readers to stay in business. The fact the

media is primarily a profit-driven industry limits the scope of what it is likely to report

and at times promotes trashy sensationalism in the name of news. Paris Hilton’s jail term,

Lindsay Lohan’s alcohol rehab, and Beyonce’s public statements fill the international

news pages in some papers. Those who read papers and watch TV are often more

interested in interviews with Bollywood stars than rural poverty. More people want to

find out about the new iPod than Indian foreign policy. The Times of India has become a

notorious example of this phenomenon. Competitors such as The Hindustan Times, The

Indian Express and Hindi papers like Dainik Jagran and Amar Ujala provide a better

balance of the serious and the frivolous. Yet, this often leads to inferior coverage of more

important issues. The media often abdicates its role as an educator in favor of being an

entertainer.

A business daily is apparently good business in India. Though The Economic Times is the

clear leader, India's rapid economic growth has encouraged a sixth national contender.

The emergence of small-town and rural India has similarly encouraged Hindi and other-

language ventures. And what is happening in newspapers is being repeated in magazines.

In April, the Financial Chronicle, from the Hyderabad-based Deccan Chronicle group,

joined the contest, starting with editions in Hyderabad and Chennai with a print run of

70,000. That is less than a tenth of the circulation of The Economic Times. But India's

changing demographics, and lower production costs than elsewhere in the world, make

the economics of even a small business daily promising.

In most mature markets there is a single leader, whether it's the Financial Times in the

United Kingdom or The Wall Street Journal in the United States. That is the case in

India, too. The Economic Times had average net paid sales of 750,621 in the July-

December 2007 period, according to the Audit Bureau of Circulations (ABC). Business

Standard was a distant second with 170,378 and The Hindu Business Line was third at

146,925. Two others, The Financial Express and Mint -- the product of a Hindustan

Times-Wall Street Journal tie-up -- did not participate in the ABC audits. Mint started in

February 2007 with an initial print order of around 80,000.

DNA Money (a part of Daily News & Analysis -- DNA -- of the Dainik Bhaskar group) is

available as a stand-alone product in some markets. And waiting in the wings is the

Financial Times (FT) of London, which could be on the stands in its Indian edition as

early as January. "This is like the gold rush of the mid-nineteenth century," says Pheroza

Bilimoria, managing director of the Business India Group of Publications, publisher of

Business India magazine. "All these new entrants hope to emerge among the winners."

India's publishing environment suggests there is room for many winners. "In the business

space, The Economic Times probably has 90% market share," says Ravi Bapna, a

professor and executive director of the Centre for Information Technology and the

Networked Economy at the Hyderabad-based Indian School of Business. "In terms of

actual readership, it is pretty much the same story in India as elsewhere of having only

one dominant player. But the other players still feel that the economics work out for them

and that they don't need that particular kind of scale. The challenge abroad is the cost of

production, which is much higher than the cost of production here. Given the low

production cost, there is room for smaller players here. Whether they will sustain their

operations in the long run depends on how differentiated they can be. But one can expect

some kind of M&A activity in the next two to three years."

A Raft of Magazines

What's happening in newspapers is being repeated in magazines. Three magazines --

Business India, Businessworld and Business Today -- have been around for a few

decades. According to the latest Indian Readership Survey, Business Today had

readership of 416,000. Business India followed with 291,000 and Businessworld had

224,000. A newcomer, Outlook Business, launched in April 2006, had readership of

226,000.

More magazines are in the works, and foreign publications are attracting the most

attention. Local media house Network18 is working on an Indian edition of Forbes. The

Economist has been looking for a partner. McGraw-Hill has explored publishing an

Indian edition of BusinessWeek with Delhi-based Cyber Media. Calcutta-based ABP,

which publishes Bengali daily Anandabazar Patrika, English morning newspaper The

Telegraph and Businessworld, has tied up with Fortune to bring out a local edition. "The

rush to launch business newspapers and magazines in India can be explained by the

economic growth India is experiencing now," says ABP chief executive officer Dipankar

Das Purkayastha. "On the other hand, the U.S. is in the grip of a recession. And there is

hardly any growth in Europe."

Other-language business publications also have been active. Business Standard and The

Economic Times have launched Hindi editions in several cities. Writing in Business

Standard on the occasion of the recent launch, editor T.N. Ninan explained: "Business

Standard has launched itself today as a Hindi business newspaper ... in addition to the 33-

year-old English one. We have started with the New Delhi and Mumbai editions; other

editions will roll out in the coming days. And we know that we will have company. Rival

Hindi business newspapers, too, will enter the market in the coming weeks and months,

because every market in emerging India is going to be competitive."

Ninan is correct about rivals. The Dainik Bhaskar group, which publishes Hindi daily

Dainik Bhaskar, the Gujarati Divya Bhaskar as well as DNA and DNA Money, will

launch a Hindi business daily soon. "We have done our research," says group director

Girish Agarwaal. The initial print order is likely to be 200,000. Meanwhile, rival Dainik

Jagran is also planning a Hindi business daily in a joint venture with media conglomerate

Network18.

The Hindi and other-language ventures are springing up because small-town and rural

India is coming into its own. Spending power is moving to smaller cities. English, the

language of the metro elites, is not on their agenda. But English business newspapers and

magazines don't think their market is saturated.

Rising Literacy Levels

Newspapers are recording handsome growth in India and also in China. This has a lot to

with the growth of their economies, but other reasons exist. China has only recently

opened up and has developed a huge appetite for newspapers and magazines. In India,

literacy levels are low, but they are rising. "Look at the total population," says Agarwaal

of Dainik Bhaskar. "There are the people who can read newspapers and those who

cannot. Among the people who can read newspapers, there are those who do not. In the

U.S., newspaper marketers are aiming to fill that gap. In India, we also have the gap of

those who cannot read newspapers."

T. Venkattram Reddy, chairman of the Deccan Chronicle group, similarly implied while

launching his new paper that rising literacy levels provided new opportunities. "Financial

Chronicle has been crafted as a pure-play business daily to build on the aspirations of a

young and prosperous India," he said. Business newspapers and magazines also appeal to

publishers because they are seen as serious products in an age where content is being

"dumbed down."

According to a PricewaterhouseCoopers (PwC) report, "In 2007, the Indian print media

industry recorded a growth of 16% over the previous year. Newspaper publishing, which

constitutes 87% of the segment, grew at 17%, whereas magazine publishing, which

contributes the remaining 13%, grew at a marginally lower rate of 15%. On an overall

basis, the print media industry stood at Rs. 149 billion [14,900 crore] in 2007, up from

Rs. 128 billion [12,800 crore] in 2006." PwC estimated the compound annual growth rate

(CAGR) for 2008 through 2012 at 13% for newspapers and 15% for magazines. The

comparative estimated CAGR internationally (for 2007 through 2011) is 2.1% for

newspapers and 3.1% for magazines.

Among the reasons for the PwC report's bullishness about India's newspapers and

magazines:

Low print media penetration. The reach of print media in India is 38%. Its reach

in urban areas is 58%, substantially higher than in rural areas, at 30%.

Rising literacy rates. The number of potential readers is growing. Additionally,

359 million literate people in the country do not read any publication, which

leaves further scope for improvement in penetration levels.

Increasing spending on circulation. Penetration of print media is improving owing

to growing income levels and aggressive marketing. Subscription schemes have

not only accelerated penetration of dailies, but also have helped push multiple

dailies into homes.

Such factors have made a lot of people gung-ho about the business. Unlike in most parts

of the world, readership is growing. "The overall globalization, the growing interest in

India, and the sheer size of the India market is driving the foreign media interest in

India," says Bapna, of the Indian School of Business. "This is no different from players

from any other industry. What all the global publications are probably looking for is to

get an increasing mind share of the large Indian middle class, which is becoming [more

and more] global." Adds Business India Group's Bilimoria: "India is the flavor of the next

few decades in other business areas. So why should publishing be left out?"

Prohibitions on Foreign Ownership

India is relatively virgin territory whereas the rest of the world is saturated. But it has its

challenges, too. Indian law prohibits foreign ownership of more than 26% in a newspaper

or newsmagazine. The stricture applies to "news"; foreign stakes could be higher in non-

news products. In March, information and broadcasting minister Priya Ranjan Dasmunshi

told Parliament that 172 foreign magazines in the specialty, scientific and technical

sectors had been given permission to launch Indian editions. Many are in tie-ups with

Indian partners.

Not all deals will work out, however. The first such deal dates to September 2003. The

Pearson Group of the United Kingdom (which owns the Financial Times, among other

titles) took a 13.85% stake in Business Standard Ltd.; that deal has fallen apart. Business

Standard is now going it alone. Pearson paid Rs. 14.1 crore for the stake; it is not clear

how much it got back. Now, however, it has freedom to pursue new plans with

Network18.

Foreign media houses may have deep pockets. But they also need to make money.

Purkayastha of ABP estimates that a business newspaper could need a break-even period

of around five years. "Magazines would need less investment with a similar break-even

time," he says. Adds Bilimoria: "The economics of publishing in India are quite different

from that in the West where markets are not so price-sensitive. Overseas publishers will

need to come to terms with this reality."

The first challenge for a foreign business magazine or newspaper would be determining a

cover price. The leading Indian business magazines are priced between Rs. 10 and Rs. 15.

The cover price of Fortune, currently distributed in India by the Living Media group, is

Rs. 180. An Indian edition of Fortune would not be so pricey. But it could hardly come

down to local levels. The Fortunes and FTs would have to operate in niche markets. But

the niches could be large. Says Bapna: "The global players will certainly focus on the

higher end of the segment which, incidentally, is pretty large and underserved in India

currently." And they may not be too bothered about the bottom line initially. "For the

major players," Bapna says, "profitability is not a primary concern right now. I expect

them to come in aggressively and compete for readership and grab market share."

The Importance of Advertising

Given the low cover prices, advertising is the principal revenue stream. Magazine

advertising revenues are Rs. 1,400 crore, while circulation revenues are Rs. 500 crore.

For newspapers, the corresponding figures are Rs. 8,000 crore and Rs. 5,000 crore. PwC

projects growth in magazine advertising revenues over the next five years at 16%,

compared with 10% growth for circulation revenues. For newspapers, the numbers are

further skewed, at 16% and 8%, respectively.

"The primary source of revenue in the print media in India has always been advertising,"

Bilimoria says. "But slowly, sponsorships and associations are contributing a larger

chunk of the revenue stream. It will be a while before circulation sales will contribute in

any significant numbers to overall revenues."

The point is not that circulation does not bring in money; as the figures show, it does. But

it does not pay for itself. Every extra copy sold is an additional loss, which must be made

up by charging more for advertisements. This has its own problems, particularly in the

area of newspapers' resisting advertiser pressure to encroach upon editorial.

The peculiar economics also make newspapers vulnerable to changes in input costs.

Newspapers in India are facing a threat from an unexpected quarter: the price of

newsprint, which has climbed more than 30% to $850 a ton in less than a year. An article

in The Hindu, publisher of The Hindu Business Line, notes: "If newspapers in the U.S. are

in crisis because their circulations are dropping, Indian newspapers will be in crisis

because their circulations are rising."

The newer breed of papers uses pricing as a marketing strategy, which adds to the

financial challenges. The Financial Chronicle, for instance, has been launched with a

cover price of Rs. 1.50, which makes it the cheapest business daily. Some newspapers

have taken to offering annual subscriptions. The Hindustan Times has a cover price of Rs.

2.50, but it is available at Rs. 1 under annual schemes. The Economic Times (or the

morning tabloid Mumbai Mirror) is available free with flagship The Times of India in

some markets. (They are also sold independently.)

For foreign media houses it is, therefore, a clear choice. They can pursue mass markets

and lose money for some years. But more so they may lose their image as prestige

publications. The alternative is to offer a quality product with a high cover price. "India is

definitely underserved by way of quality," says Bapna. "The coming of global players in

a big way will improve the overall quality of journalism in India and also open our minds

to what is happening in the rest of the world. They will put in more resources, increase

journalists' wages, and get more people into the profession. In that sense, it is a good

development." It will also mean casualties in coming years. Consolidation is inevitable,

Bapna says.

So why are so many Indian publications -- as distinct from foreign majors -- entering this

bruising battle? For many it is a question of adding to their range of offerings. The Times

of India has shown that it pays to offer advertisers package deals across various

publications. So a Hindi and Gujarati general newspaper group like Dainik Bhaskar

wants an English presence (DNA), an English business daily (DNA Money), a Hindi

business daily (to be launched soon), radio, TV and the Internet. "Multi-publication

advertising packages are very important," says Purkayastha of ABP.

Eventually, strategies will go beyond advertising packages; all the different media will

need to be integrated. Bapna thinks foreign media houses have an edge here. "In the long

term, those players who are able to integrate their print with other channels like digital,

web-based or even mobile and entertainment will have a clear differentiation because that

is something that the Indian players have not been able to do from the ground up. That

potential is waiting to be tapped," he says

When Conde Nast launched its premium lifestyle magazine Vogue in India last year, it

carried a whopping 168 pages of advertisements of a total 400 pages. Now, the publisher

is preparing to launch its luxury men's magazine GQ and expects a similar rush of

advertisers in Asia's third-largest economy, where rising incomes and growing literacy

are boosting readership and revenues of magazines and newspapers. From specialist

magazines on whiskey, golf and parenting, to regional-language newspapers and financial

dailies, new titles are coming thick and fast in one of the few markets in the world where

advertising and readership for print media are expanding. "It's a fast growing economy

and with consumption so robust and with incomes rising, it's a fertile ground for the print

media," says Vivek Couto, executive director of Hong Kong-based research firm Media

Partners Asia. "There is also a buoyancy in print advertising that is encouraging new

launches and niche publications in particular."

K S Oils is an Indian company with international footprint and global ambitions; a leader

in the edible oil market in India, it has generated a turnover of over Rs. 3,000 crores

during the financial year 2008-09. The company has in the recent past successfully

undertaken the growth strategy of capacity expansion, green field projects and

acquisitions, thus creating an unchallenged competitive advantage. With secured raw

material supply source, ‘near to customer’ sales points and a robust distribution and

dealer network, K S Oils is creating market and brand leadership.

The company believes in its vision of “Delivering Health & Prosperity”; with its deep

understanding of the mustard oil sector, the company today reaches out to millions of

Indian consumers. It is delivering healthy cooking medium to Indian homes - ensuring

good health and mental & physical prosperity for the whole family. K S Oils’ relentless

focus on quality and hygiene has ensured that “purity” and “freshness” of mustard and

other oils are preserved till it reaches the home of the consumers in every nook and

corner of the country.

K S Oils is a strong family of near to 3000 employees spread over its 6 manufacturing

plants, marketing offices and plantations in India, Malaysia, Indonesia and Singapore.

With the company registering explosive growth, opportunity for fresh and experienced

talent is immense with Indian and overseas opportunities. A strong leadership team

comprising of the founders and senior industry professionals have laid a robust strategy

and execution deliverables for the company, thus “Delivering Health & Prosperity” not

only to consumers but every other stakeholder – employees, shareholders & investors,

vendors & partners and society as a whole.

As one of India’s leading companies in the edible oil sector, K S Oils has deep

understanding of agri-commodity and farmer community issues. Today, K S Oils is part

of the Indian growth story – using the country’s inherent strength in agricultural

resources and best managerial talent to serve millions of consumers in India and abroad.

Creating an Indian MNC with international footprint of knowledge, leadership and value

for its stakeholders across the globe!

Over the past two decades, K S Oils has built, nurtured and continually improved upon its

various brands of edible oils. As a leading FMCG player in India and a leader in the

mustard oil segment, K S brands dominate the market especially in East and North East

India. Recently the Company has forayed into Central and North India and the consumer

response has been encouraging. Today, K S brands are trusted by millions of consumers

and are delighting their palate.

K S brands comprise a range of healthy cooking oil brands in mustard, refined oil and

vanaspati, thus catering to the tastes and preferences of different categories of consumers.

Our emphasis on 'convenience' packaging of our brands ensures that they meet the needs

of consumers at every price point. All our brands have been developed on the basis of

consumer feedback and preferences derived from in-depth market research. Over the

years we have invested significantly in nurturing these brands in terms of quality, health,

packaging and market penetration.

K S has been able to create two very powerful brands in the mustard oil segment, a very

significant achievement as 75% of mustard oil in India is sold loose. The company’s

strict adherence to quality, purity and delivering unadulterated oil to consumers has won

it unstinted loyalty from millions of homemakers who trust K S Oils products as their

cooking oil partner for the whole family. Each brand in the K S basket has a distinctive

positioning catered to address a specific consumer need.

The Company invests significantly in creating brand awareness and consumer education;

from TV commercials to health camps to promotions informing consumers of the health

benefits of its products, the Company has created strong brand recall and loyalty among

every Indian household.

 Manufacturing Process

K S Oils has all its manufacturing plants located in the rich mustard growing belt of

Madhya Pradesh and Rajasthan in India. The mother plant is situated in Morena and is

one of the best state-of-the-art integrated manufacturing facilities in the country. This unit

situated in the midst of the Mustard growing region of Madhya Pradesh is a state-of-the-

art plant that houses all facilities under one roof. Equipped with Kohllus and expellers to

crush the oil seeds, refineries to refine the crude oil, solvent extractor, vanaspati plant and

storage tanks; what makes it an integrated plant is its packaging department.

The uniqueness of the packaging department is that apart from packing the products, it

also produces the packing materials in-house. The Plant has a capacity of crushing 1,475

metric tonnes of mustard seed per day, making it the largest integrated mustard oil

Manufacturing Plant in the country.

Superior quality mustard seeds are selected for the process of manufacturing to produce

the best quality edible oil. These seeds are then crushed in Kohllus and expellers to obtain

crude oil, which is directly sold as crude/virgin mustard oil to suit the taste of the

conventional consumers. Under further processing the remaining oil-cake is passed

through solvent extractors to draw solvent oils. The solvent oil is either sold for industrial

use or sent to refinery to make refined oil.

In the extraction of Soybean Oil dehulled yellow soybeans of high quality are selected.

These seeds are cracked and adjusted for moisture content and then subsequently rolled

into flakes. With the help of commercial hexanes the solvent is extracted, which is further

refined and blended to produce the best quality edible oil. The refined oil finds its place

directly to the market or is further hydrogenated to generate vanaspati. De-oiled cake

obtained from the extraction procedure is either sold locally or exported to cattle/ aqua

feed manufacturing companies abroad.

Imported and local crude oils like soyabean and palm are refined in the refinery and sold

as refined soyabean oil and refined palm oil.

 

The integrated process (flow chart) from raw material to

finished products enables K S Oils to cater to a range of

consumers depending upon the taste and budget of the customer.

 

The entire process

Selection of Seed: Seeds are selected meticulously for the production of best

quality edible oil.

Kachi Ghani or Crude Oil: The seeds are cleaned and loaded through conveyors

into the crushers under controlled temperature to maintain pungency. The residue

obtained from crushers is processed further in the expellers to obtain oil with less

pungency. The pungent oil from the crushers and the less pungent one from the

expellers are blended in a pre-defined proportion to obtain the edible oil of right

pungency.

Solvent Oil: The filtrate from the extractor is sprayed with Hexane and distilled

to produce Solvent Oil. De-oiled cakes formed during the process is exported to

cattle feed manufacturers.

Refined Oil: The solvent oil is passed through refineries to obtain crystal clear,

de-odorized oil or refined oil.

Vanaspati: Hydrogenation of the refined oil produces Vanaspati.

Storage and Packing: The oil produced in the crude, solvent and refined forms

and the Vanaspati are sent to separate storage tanks. From the storage tanks it is

routed to the packing department, where it is directly filled into tins, bottles and

pouches mechanically. This state-of-the-art packing system at K S Oils not only

makes the packing attractive and durable, but also gives a profound thought to the

purity of the product and health consciousness of the Indian customers.

K S Oils is also concerned about the environmental safety. It has therefore adopted the

Green Power Technology and has set up 34 wind mills of total 32 Mega Watt capacity to

generate green energy. This green energy saves power consumption in addition to

reducing cost of production.

To operate a manufacturing unit of its magnitude, K S Oils has a highly efficient and

skilled workforce and believes that their human resource is the key to their success. To

augment the skills of its employees, K S Oils have given them the liberty to experiment

with the manufacturing process resulting in high quality products.

K S Oils expansion plan has 4 plants coming up in the mustard producing belts of

Rajasthan and Madhya Pradesh. Also K S Oils have bought palm plantations in Malaysia

and Indonesia to keep pace with the requirement of raw materials that would arise upon

the plants being operational. These key steps taken by K S Oils to increase production

would help the country at large to meet its growing demand and attain self-sufficiency.

Also these plants would provide job opportunities to the people in the region.

Research and Development:

As a leading agri-commodity and edible oil player in India, K S Oils has focused R&D

initiatives on two fronts

Current production, quality and best practices

Collaborating with farmers to create a bottom up R&D approach

With the aspiration to provide the best to its precious customers, K S Oils has set up to an

effective R&D team with an indispensable R&D lab within the Company that envisions

innovation. The team ensures the quality of the seeds and crude oil that find its way to the

factory and the purity and edibility of the oil is ascertained of QC before it leaves the

Company premises.

The R&D team in close association with the farmers also conducts study and research to

produce the best seeds. This initiative taken by the R&D team of K S Oils would help in

increasing the supply of raw material to increase productivity, which in turn would help

in keeping pace with the growing demand.

Sales and Marketing:

K S Oils believes in creating a strong consumer facing front end and invests heavily in

creating a well oiled sales and marketing machinery. As a leading edible oil player in the

FMCG segment, sales and marketing play a key role in ensuring that the corporate and

products brands communicate and reach out to the customers in proper way; helping the

Company in selling its strong value proposition of purity, quality and healthy cooking oil.

K S Oils has developed a deep distribution network to reach out to its customers across

the country. This distribution network services the urban and rural market alike. Railways

being the faster mode of transport, K S Oils prefers rail to road for reaching its finished

products. It also has its own depots at the major railway arrival points. For the rest of the

market in the country, K S Oils has set up a network of C&F agents and Central

Distribution Points. An aggressive nationwide growth is being rolled out by almost

doubling the number of distributors from the current size. Today approximately 1,193

distributors and 1,85,000 retailers market K S Oils products across Eastern and Central

India.

As part of its sales and marketing efforts, K S Oils regularly communicates with the

consumer on various platforms to increase awareness of health and healthy cooking oil

medium; health camps are conducted to educate the consumer and also ensure first time

trials and word of the mouth publicity. This growing awareness has widened the markets

for K S Oils across India.

 

RECOMMENDATIONS

If you're selling products online, you may well succeed or fail based on the soundness of

your advertising campaign. Advertising on the internet requires different methods than

conventional advertising campaigns of the past, where magazine ads, radio and television

commercials were the heavy hitters. The electronic advertising campaign may seem a bit

confusing to a novice, but once you get used to the jargon and learn the ropes, you'll find

advertising on the internet a successful venture indeed. Advertising on the internet is, of

course, all about exposure of your product and the public. When you consider there are

billions of users out there, your prospects are out there. Getting the right exposure is the

trick. There are lots of avenues to explore to get your product before your target

audience. While one advertising effort works for you, another may not. You need to

determine, through testing, which advertising on the internet avenues bring customers to

your site.

Some people feel that "pay-per-click" advertising on the internet is the best way to reach

targeted traffic. Have you heard of Google "AdWords"? These are big impact text ads

that appear on the right hand side of the Google Search page and may also be displayed

on other sites, as related content. This form of advertising on the internet can bring good

and swift results. When developing your advertising campaign, don't neglect the ezine

advertising opportunities. This may be a good strategy if your advertising budget is small.

Here's how it works. You know your product better than anyone, right? Dust off your

keyboard and write an article that showcases your knowledge of your subject product. If

you're selling art posters, write an article on a famous and interesting artist. At the end of

the article, include your byline, which should generally be about 25 words. Something

like "Jane Sweetheart owns the Postershop.com site, specializing in fine art prints,

botanical prints and antique posters." will do just fine. Include a link to your site.

Next you'll want to look for ezines geared to readers who would be interested in art

posters. Look for good circulation numbers. Approach the website owner, offering the

article for free in exchange for your byline. If the site owner likes the article, you've

lightened his load in producing his newsletter and gained some good exposure,

advertising on the internet for free.

Advertising as a sponsor for electronic newsletters will cost you some money, but the

prices aren't steep compared to the exposure and traffic you gain. Write different ads,

focused on different customer perspectives and run them in different newsletters. Track

your response rates and fine tune your ads. Once the ad is "perfect", pull the ads from

publications that don't bring a good response, keep advertising in the ones that do and

search out new ezines to test your ads.

CONCLUSION

Internet marketing is the fastest growing marketing and advertising method for all

companies recently. We are an India based online advertising company dealing with

internet marketing solutions. Companies have to keep themselves updated daily to keep

up with the competition and the pace set by new products being introduced. The

Companies which have been involved in internet marketing promotions, have seen the

rewards of successful strategies and the profits gained by the work once the campaign has

been finalized and launched. search engine marketing is quite a complex activity due to a

lot of options available. A few methods have been outlined in the field of internet

marketing for the companies who are willing for advertising their business online. We

have kept the layout as simple as possible so new businesses advertising their business

online can grasp the ultimate solution.

There are a lot of companies advertising for carrying out online marketing solutions that

it is difficult to choose which web marketing company to trust to do your search engine

advertizing. Your advertising budget also needs to last throughout the year so you want

an internet marketing company that offers little initial investment for your online

advertising campaign so you can use the reward of the promotion to pay for more of

internet marketing activities. If the online advertising company you chose believes that

their internet marketing strategy is a good one this should not be a problem for you to

arrange. Some companies want a small deposit upfront and still their work do not offer

any benefit for your company website in return. Choose the company who want a small

deposit before you launch your internet marketing campaign but are willing to do more

work for your company website that makes the small deposit a good long term

investment.

Before you start to advertise your business website on the search engines you need to put

your advertising budget to one side and stick to it. This will make you get the best price

possible for your company's strategy from the agency and will help your advertising

budget last the full year. You should not use all the forms of website marketing when

starting your internet marketing promotions.

The process of Email marketing is not about a large number of email addresses that you

can get from different sources. This will not only prove extremely costly on your

advertising budget but also a waste of your valuable time in carrying out your internet

marketing strategy. Email web marketing is all about quality of the data the provides you

with because that is important in making your strategy successful. Promote an email

marketing campaign where you only pay on acquisition (for leads with name and contact

details). Cost per acquisition is the best way to do your internet marketing with emails.

You also have to ensure that the company is permitted to providing these email addresses

for you to contact as you do want to be accused of spamming. Email marketing has been

proven to be successful if quality of leads is good. Website Marketing with Banners

across major search engines is mainly for branding purposes for your company. You will

get traffic through to your company website. Your most effective form of internet

marketing with banners is to get a deal where you are the only banner on the page, the

banner is exclusive to you and you are on every page throughout the search. This is great

branding for your company website and will be a more effective strategy.

Pay per click is one of the most common forms of online search engine marketing service

available. The most common types of pay per click used are Overture and Google pay per

click campaigns. One has to bid for the top position for the desired keyword phrases

when carrying out pay per click solutions. Search engine marketing with sponsored links

will bring around decent traffic. When you use pay per click for your internet marketing

you will surely get quality traffic to your website by spending a small amount for getting

the traffic.

Advertising with Adwords on Google is highly recommended for your web marketing

campaigns. By doing so you will be on the most popular in search engine on the internet

and can get campaigns out on a monthly basis until you close on the most suitable

keywords that will bring the best result for your business website.

The use of proper website design & search engine optimization can result in huge savings

on your advertising budget in medium to long term. You need to look for a SEM

company which does your web marketing and has good experience within the SEO field.

Website optimization and promotion is the premier solution to your internet marketing

requirements. Search engine optimization is a process which places your company

business website on top in the natural search engine listings. This is of huge benefit to

you as the organic listings on a search engine such as Google receive at least 80% of the

traffic the search engines receive. Therefore you have to find an internet marketing

agency that can provide you with a successful search engine marketing campaign and it

will be of great benefit for your company website to get high search engine positioning

on the search engines such as Google. New Delhi Digital works SEO is done strictly as

per guidelines provided by Google from time to time. As an responsible internet

marketing firm we only employ most ethical and successful optimization techniques to

optimize required pages of your website. We clearly stay away from any spamming,

unethical or undesirable techniques as we want all our search engine optimization

campaigns to work for our clients. We as a internet marketing company place our focus

solely on our clients.

Internet marketing with New Delhi Digital Works is a unique experience. You will have

full web marketing account management all round the year. Your SEO consultant will be

in regular touch with you advising on progress of your campaign. You will have your

website pages worked on to gain those positions you want for your company website.

New Delhi Digital Works wants you to win and ride the competition within internet

marketing. We offer customized payment terms and possess the ultimate internet

marketing strategy for you to advertise your business with our website marketing

promotion - company website design search engine optimization campaigns.

BIBLIOGRAPHY

McChesney, Robert W. “The Political Economy of Media: Enduring Issues, Emerging

Dilemmas”. Monthly Review Press, New York, (May 1, 2008), p. 266, ISBN-13: 978-

158367161-0

^ McChesney, Robert W. “The Political Economy of Media: Enduring Issues, Emerging

Dilemmas”. Monthly Review Press, New York, (May 1, 2008), p. 272, ISBN-13: 978-

158367161-0

^ Lasn, Kalle in: Culture Jam: The Uncooling of America, William Morrow & Company;

1st edition (November 1999),ISBN-10: 0688156568, ISBN-13: 978-0688156565

^ Kilbourne, Jean: Can't Buy My Love: How Advertising Changes the Way We Think

and Feel, Touchstone, 2000, ISBN-13: 978-0684866000

^ McChesney, Robert W. “The Political Economy of Media: Enduring Issues, Emerging

Dilemmas”. Monthly Review Press, New York, (May 1, 2008), ISBN-13: 978-

158367161-0

^ http://www.zeit.de/2008/47/Vermuellung

^ McChesney, Robert W. “The Political Economy of Media: Enduring Issues, Emerging

Dilemmas”. Monthly Review Press, New York, (May 1, 2008), p. 265, ISBN-13: 978-

158367161-0

^ http://joeg.oxfordjournals.org/cgi/content/full/8/3/421

^ Knoche, Manfred (2005): Werbung - ein notwendiges "Lebenselixier" für den

Kapitalismus: Zur Kritik der politischen Ökonomie der Werbung, in: Seufert,

Wolfgang/Müller-Lietzkow, Jörg (Hrsg.): Theorie und Praxis der Werbung in den

Massenmedien. Baden-Baden: Nomos, p. 239-255.

^ Lasch, Christopher. The Culture of Narcissism: American Life in an Age of

Diminishing Expectations, Norton, New York, ISBN 978-0393307382

^ http://www.csupomona.edu/~jkirkpatrick/Papers/EthicsAdvtTaxation.pdf

^ McChesney, Robert W. “The Political Economy of Media: Enduring Issues, Emerging

Dilemmas”. Monthly Review Press, New York, (May 1, 2008), pp. 132, 249, ISBN-13:

978-158367161-0

^ McChesney, Robert W. “The Political Economy of Media: Enduring Issues, Emerging

Dilemmas”. Monthly Review Press, New York, (May 1, 2008), p. 252, 249, 254, 256,

ISBN-13: 978-158367161-0

^ Franck, Georg: Ökonomie der Aufmerksamkeit. Ein Entwurf. (Economy of Attention),

1. Edition. Carl Hanser, March 1998, ISBN 3-446-19348-0, ISBN 978-3-446-19348-2.

^ Lecture held at Philosophicum Lech (Austria) 2002, published in Konrad Paul

Liessmann (Hrg.), Die Kanäle der Macht. Herrschaft und Freiheit im Medienzeitalter,

Philosophicum Lech Vol. 6, Vienna: Zsolnay, 2003, p. 36-60; preprint in Merkur No.

645, January 2003, S. 1-15

^ Lasch, Christopher: Das Zeitalter des Narzissmus. (The Culture of Narcissism), 1.

Edition. Hoffmann und Campe, Hamburg 1995.