Role of Ad Agency in Brand Building

A PROJECT REPORT Submitted by Hetal Bhanushali Roll No. 02

In partial fulfillment for the award of the diploma of PGDHM IN K.C. College of Management Studies Mahakavi Bhusan Marg. Behind Regal, Colaba, Mumbai 400039 65044689 / 22826122

May-June, 2012

DECLARATION
I hereby declare that the project work entitled Role of Ad Agency in Building Brands submitted to K. C. College of Management Studies (Colaba), is a record of original work done by Hetal Harilal Bhanushali under the guidance of Vaibhav Jadhav, Brand Manager

The work was done for the course requirement for PGDHM 2012-13

I also certify that all the information in this report is solely the result of my work at Xebec Communication

In accordance, this report has not been previously submitted or proposed to any university or any other educational institution for the purpose of getting any reward, title or degree.

This project report is not a copyright, nor a patent of any latent description of any project or a similar category.

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Name: Hetal H. Bhanushali

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BONAFIDE CERTIFICATE
This is to certify that the project entitled Role of Ad Agency in Brand Building is the bonafide work of Hetal H. Bhanushali, a student of K.C. College of Management Studies, and was successfully conducted at Xebec Communications. She was a intern from 2nd May to 30th June, 2012, for the partial fulfillment for the award of PGDHM. To best of my knowledge this is an original piece of work.

I wish her all the very best in her career endeavors.

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DESIGNATION

DATE

ACKNOWLEDGEMENT
First of all, I would like to take the opportunity to thank and express my deep sense of gratitude to all concerned executives of Xebec Communication for giving me this opportunity of internship which has been a pure learning experience and which have enlightened my knowledge and skills about the Advertising Industry.

I would also like to thank K. C. College of Management Studies, Colaba for giving me the summer internship as a part of our PGDHM course curriculum.

I would like to thank our Honorary Director Ms. Manju Nichani, for giving me an opportunity to excel and explore the world of Advertising and Marketing with Xebec Communication one of the leading Advertising Agency.

I hereby express my profound & sincere thanks as well as gratitude to Mr. Vaibhav Jadhav (Brand Manager) who in spite of busy his schedule was kind enough to share their valuable experience in the field & guide me in completing this project & its follow-up.

Lastly but not the least I owe my wholehearted thanks and appreciation to the entire staff of the company for their cooperation and assistance during the course of my project. I hope that I can build upon the experience and knowledge that I have gained and make a valuable contribution towards this industry in coming future.

Place:

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Name: Hetal H. Bhanushali

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EXECUTIVE SUMMARY
A powerful brand identity can influence your customers to buy your product or service over your competitors -- even if they have to pay more for it. A powerful brand can influence your customers to think that no one else, but you or your company, can deliver the quality or the benefits that they want. Whenever a product needs to me made a brand one has to do a proper positioning. Positioning is something that is done in the minds of the target market. A product's position is how potential buyers see the product and this is done by communicating effectively to the target which majority of the times is carried out by advertising the product with the help of an ad agency. Brand Building is an ongoing process. A product cannot be made a brand over night, it requires to show a constant presence. This presence is shown with the help of advertisement. Once the product is registered in the minds of the target customers it start to become a brand. So we can say that a brand building process takes years to become a brand. In this report I have made an attempt to understand the working of an ad agency and the its level of involvement in building a brand. This report is based on my actual training at XEBEC COMMUNICATION. It tries to understand the process of communication that will influence the brand as a whole. In this report, I have tried to understand the need for the research in order to develop a good advertisement.

Research Methodology

This report is based on the working during my internship with XEBEC Communication in the month of May-June. The report is based on both primary as well as secondary research. The objective of the internship was to understand the working of an Ad Agency on a whole. During the period of internship, the primary research was collected from various sources within the organization. Direct interactions with the clients helped me to understand a great deal about the clients. Being a trainee in the client servicing team of XEBEC Communiations has provided me with ample exposure to the various departments of the agency. I understood that the servicing team forms one of the most integral part of a good Agency. Secondary data has been compiled from various sources on the website and references that are given in the bibliography section

CONTENTS
SR.NO 1 2 3 4 5 6 7 8 9 10 11 TOPIC
Introduction to Advertising Ad Agency Brand & brand building Ad Agency and Brand Building Xebec Communications Brand Building at Xebec: Case Studies My Profile at Xebec My Experience Conclusions Recommendations Bibliography

PG.NO.
7
18 32 37 40 50 65 75 79 80 82

CHAPTER1- Introduction to Advertising

DEFINITION: The American Marketing Association defines advertising as Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor. INTRODUCTION: Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion. Advertising involves the process where in a massage is designed so as to promote a product, a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with the use of the various mediums of communication. From the newspaper, magazines, posters, neon and fluorescent signboards, billboards to the commercial on TV, laser shows to inflated high-rise figures and objects, advertising has come a long way. The work is formidable as it spearheads a process intended to attract, modify, change and influences public opinion. Advertising is used to publicize a product, service, or idea. Many types of advertising are available for the purpose of building brand awareness and increasing product sales. Advertising is present in almost every aspect of daily life. From the local business to multinational firm and all need to advertise. While politicians, social organizations, government special groups need to advertise their

motto, national airlines, auto mobile manufactures, food and consumer goods manufacturers have to reach the consumer. Specialist products and services are often advertised through trade magazines and exhibitions. Lately mail-shots, handbill circulation, special offers have become very popular. There are still other ways of advertising. There are window displays, display on telephone directories, transit sign on buses, lamp posters, banners, etc. Advertising through the electronic media has been perhaps the most popular medium. Advertising, as an effective medium, uses a variety of techniques to create effective advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are created to catch the attention of the viewers. Most winning advertisements would encompass factual information with emotional appeal. The advertising industry has three major sectors: Business or organization which wishes to advertise Media which provides the medium for advertising Ad-agency which creates the ad to suit the need of the firm

FUNCTONS OF ADVERTISEMENTS: As a form of mass communication, advertising delivers relevant messages to target audiences and by changing mental states, it can perform a number of functions. Advertising moves consumers from being unaware of a product or service to finally purchasing it. An ad is considered effective if it propels the consumer a step further in this process. This is how the function of advertising is viewed. The different functions of advertising are viewed as follows:

 STIMULATES DEMAND: By informing consumers about the availability of a product in the market, advertising stimulates latent needs, and reinforces the aroused needs. There is a general agreement that advertising has some effect on aggregate consumption. STRENGTHENS OTHER PROMOTION MIX ELEMENTS: Advertising does the pre selling of the product and makes the job of the sales people easier. Advertising reaches a relatively large audience and makes them favorably predisposed. Ads carry the sales, promotional messages and often produce quick sales response. DEVELOPS BRAND PREFERENCE: Consistent and persuasive advertising often induces brand trial or purchase. When the product delivers the promised quality, service and value, it creates satisfied customers who become instrumental in spreading a favorable word-ofmouth. Satisfied customers also develop brand preference, which gets reinforced by repeated ads. Products with strong brand franchise offer some protection against the competition. Retailers develop confidence and do not hesitate in stocking strong brands. Brand loyal customers are an important asset for the company and are less likely to be influenced by competitive moves.

 CUTS COSTS: Advertising may be instrumental in cutting down production and selling costs. Increasing unit sales decrease unit costs. Selling costs also may decrease because there could be fewer wasted calls and less strain on sales people. LOWERS PRICES: In any market based and competitive economy, when unit cost of a product goes down, there are external and internal pressures which compel companies to lower prices to the advantage of consumers. This often leads to deeper market penetration. COMPETITIVE WEAPON: Advertising by itself and coupled with other promotion mix elements, may prove to be an extremely potent weapon to counter competitive moves. Advertising has an established role in creating brand personality and image. It helps differentiate a companys offer in a manner that the product may be considered as something with unique value having a definite identity of its own.

TYPES OF ADVERTISEMENTS: The types of advertisements can broadly be classified into three types :

Types of advertisements

Consumer Advertising

Non- product Advertising

Advertising toBusiness and profession

Consumer Advertising: These are basically nothing but product or service advertisements directed towards the consumer or the customer as such. Such advertisements can be in the form of national or local advertisements also. Such kind of advertisements uses emotional or rational appeal in their advertisement. Advertisements such as that of DeBeers, pizza hut etc use the emotional appeal to attract the consumers. On the other hand advertisements such as the Kawasaki bajaj caliber, Vim Bar etc. use the rational appeal to address its target audience. The advertisement of DeBeers uses an emotional appeal because the statement I have my feet firmly planted on the ground except when Im wearing the millennium diamond suggests that by wearing them u can fly high in the sky and feel like what Urmila does in the advertisement.

 Advertising to business or profession: This type of advertising is aimed at resellers and professionals. The media used here is direct mail or professional magazines. These are ads which are not directed towards the final consumers. Corporate ads are also a part of these types of ads. The target groups of corporate advertising are most often customers, stockholders, employees, financial institutions, political leaders and government. The objectives of the corporate or the institutional ads may be to establish or boost corporate identity and image, counter negative attitudes towards a company, industry or to promote and relate the company to some worthwhile social public interest cause. The recent Aditya Birla group campaign would fit into this category. Non- product advertising: In this type of advertising advertisements depicting an idea, a social cause etc is included. Surrogate advertisements are also a part of such non- product advertisements. Further classification on types of Advertising: Institutional Advertising: This advertising speaks about an organizations corporate image. Public sector ads like SAIL, VIZAG STEEL. Brand advertising: This advertising helps in the long-term build up of a brand. HLLs ads for LUX ,LIRIL, REXONA. Classified Advertising:

This advertising gives information dissemination about a sale. MID-DAY NEWSPAPER or TOI classified section . Promotional Advertising: This advertising informs an announcement about a sale. ADIDAS offering 50% DISCOUNT on sneakers. Advocacy Advertising: This advertising is used to publicize a particular cause. All the social ads fall into this category. Drink, MORE MILK (TV ad by FCB ULKA for NDDB.) AIDS AWARENESS ADS by Maharashtra Govt.

CLASSIFIED ON GEOGRAPHICAL SPREAD National Advertising: Advertising that is done in one nation only. Dabur Ads or Nirma Ads Local Advertising: Advertising that is carried out in a particular region or market. BRU and AMRUTANJAN selected campaign directed towards consumers in South India. Global Advertising: Advertising that is carried on for a company or a product globally. Im loving it was a global ad released by McDonalds

ON THE BASIS OF TARGET GROUP Consumer Advertising: Advertising that is directed towards the consumer directly. All FMCG product ads like P&G, NESTLE etc. Industrial Advertising: Advertising that is directed by Industrial Goods Manufacturer to his target group. SKF BEARINGS direct their ads in Industrial Journals to TELCO etc. Trade Advertising: In this type of advertising, the ads are directed to the Initiator rather than the end user of the product. Most Pharmaceutical companies direct their ads in Medical journals to Doctors, who prescribe the medicines to the patients. Informative Advertising: This advertising figures heavily in the Introduction stage of a product, where the primary objective is to build demand. MOTOROLA Ads for pagers, explaining how to use them (providing information).
\

Persuasive Advertising: Persuasive Advertising figures heavily in the Growth Stage of Product Life Cycle, where the companys objective is to build selective demand for a particular brand. Some Persuasive Advertising has now taken the form of

COMPARISON ADVERTISING, which seeks to establish the superiority of one brand, through specific comparison with one or more brands in the same product class. AKAI TV ads compared the brand with 6 competitor brands. Reminder Advertising: This advertising is highly important in the mature stage of the product to keep the consumer thinking about the product. Fevicol campaigns act as a reminder form of advertising, bonding Fevicol with consumers as the strongest Adhesive. A related form of advertising is REINFORCEMENT ADVERTISEMENT, which seeks to assure current purchasers that they have made the right choice. MARUTI SUZUKI ads tell that the CONSUMER is a part of 1, 00,000 happy customers.
ADVERTISING EXPOSURE MODEL

This represents another model of the advertising and persuasion process wherein the various processes that can occur after consumers are exposed to an advertisement. First, exposure to the advertisement can create awareness about the brand, leading to a feeling of familiarity with it. Second, information about the brands benefits and the attributes on which the benefits are based can register with the consumer can also result from exposure to the ad. Third, advertisements can also generate feelings in an audience that they begin to associate with the brand or its consumption. Fourth, through the choice of the spokesperson and various execution devices, the advertisement can lead to the creation of an image for the brand, often called brand personality Fifth, the advertisement can create the impression that the consumers peers or experts- individuals favour the brand and groups the consumer likes to emulate.

CHAPTER 2- Advertising Agency

DEFINITION: Association of Advertising Agencies of America (AAAA) defines advertising agency as An independent business organization composed of creative and business people who develop, prepare and place advertising media for sellers seeking to find customers for their goods and services. INRODUCTION: Getting the best out of advertising is a highly skilled job. It requires the inputs of experts in many different fields like writers, artists, photographers, designers, television production crews and many others. Even the biggest advertisers cannot afford to employ all these experts. Almost all advertising is therefore arranged through an advertising agency which provides the necessary skill to turn the message into a memorable and effective advertisement. Advertising has not only come to reflect pop culture but has also become an important element of economic growth. Today, every person connected with the Indian economy or public should be fully aware what advertising really is and why effective advertising campaigns can be performed by full-service advertising agencies. Advertising agency is one of the most important components of advertising industry. It has played a significant role in the development of modern advertising. The advertising agency has evolved to provide the specialized knowledge, skills and experience needed to produce effective advertising campaigns. It provides a quality range of service greater than any single advertiser could afford or would need to employ. An advertising agency is a firm that specializes in the creation,

design and placement of advertisements, and in the planning and execution of promotional campaigns for products and services of their clients. An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for their clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. Typical ad agency clients include businesses and corporations, nonprofit organizations and government agencies. Agencies may be hired to produce single ads or, more commonly, ongoing series of related ads, called an advertising campaign. HISTORY: Period of early growth 1841 1865: The first advertising agency on record in the US was Olney B. Palmer. In 1841, Palmer organized a newspaper advertising and subscription agency. By 1849 he had established offices in the cities of New York, Boston, Baltimore and Philadelphia. At this early fate, there were no directions of newspapers and no published rates for space to be sold to advertisers. Palmer acted as an informatory agent in these matters to prospective advertisers. In essence, he served as a salesman of space for publishers and they in turn, gave him a commission of 25% of such sales. The publishers found these methods of selling more effective than trying to sell direct and advertisers, wishing to reach more than one territory found value in such service.

Completion increased, and the usual price cutting occurred. Success seemed to depend upon ones ability to bargain with the publisher and advertiser. The natural result of this policy was a general reduction in profits to the agency; this led to a search for new competitive tools which would return a profit. Wholesaling Period 1865 1880 George P. Rowell, who opened an agency in 1865, supplied the new competitive tool. Rowell contracted with 100 newspapers to sell him a column of space each week for a year. Throughout the wholesaling period, the agent continued as a seller of space for publishers. This took on different forms, one of which was the exclusive right to sell space in certain publishers. Thus, one agency developed a controlled list of religious papers, another a List of Thirty household magazines. Any advertiser wishing to buy space in the controlled publications was forced to buy through the exclusive wholesaler for that paper. Semi Service Period 1880 1917 The wholesaling phase of agency work was checked when publishers began to establish their own sales departments for selling space. Some of these departments sold direct to the advertiser, others to the general advertising agency. Thus, the agency was forced to turn its attention somewhat away from the particular function of selling space for publisher and toward the function of buying space for the advertiser. Early in the semi service period agencies offered to write the copy for the advertiser, thus giving added weight to their claim of being servants of the

advertiser. This concept of service was slow to develop; but in the early part of the 20th century, agencies began to emphasize strongly this free service. One agency in 1905 advertised that it paid $28,000 a year for a copywriter. These methods increased the agency business and forced most space sales to be made through them. Service Period 1917 Present By 1917 the idea of service had grown until not only was copywriting done for the advertiser but many other things as well. During the service period, many agencies have grown to the position of advertising and marketing counselors for advertiser. The service elements has modified the position of agencies to such a degree that radio and television, network and magazine publishers have come to depend upon them as the primary channel through which time and space are sold. Publishers claim to have had an important part in encouragements of agencies to provide extra service to the advertiser. By providing advertisers with the kind of assistance that will improve the effectiveness of advertising, more time and space naturally will be sold. TYPES OF ADVERTISING AGENCIES: Ad agencies come in all sizes, from small one- or two-person shops to large multinational, multi-agency conglomerates such as Omnicom Group, WPP Group, Interpublic Group of Companies and Havas. Some agencies specialize in particular types of advertising, such as print ads or television commercials. Other agencies, especially larger ones, produce work for

many types of media. Lately, Search Engine Marketing (SEM) and Search Engine Optimization (SEO) firms have been classified by some as 'agencies' due to the fact that they are creating media and implementing media purchases of text based (or image based in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency' however with the creation of ads (either text or image) and media purchases they do qualify technically as an 'advertising agency' as well as recent studies suggest that both SEO and SEM are set to outpace magazine spending in the next 3-5 years. Not all advertising is created by agencies. Companies that create and plan their own advertising are said to do their work in house. Today selection of ad-agency is very difficult. The advertiser should make list of all possible agencies that can serve his purpose and the agency best qualified to provide required and effective services are selected. Some advertiser may select more than one advertising agency to handle effectively the various product lines. Following are major types of advertising agencies that are currently serving the advertising industry. Full Service Agencies: A full service ad agency is one that provides a range of marketing services. A full services agency provides services that are directly related to advertising such as copywriting, artwork, production of ads, media planning etc. It also provides such services in respect of pricing, distribution, packaging, product design etc.

 Modular agencies A modular agency is a full service agency that sells its services on a piece meal basis. Thus an advertiser may commission an agencys creative department to develop an ad campaign while obtaining other agency services elsewhere. Or, an advertiser may hire an agencies media department to plan and execute a program for advertising that another agency has developed. Fees are charged for actual work undertaken. In House agencies Those companies, which prefer to have closer control over advertising, have their own in-house agency. This type is owned completely by the advertiser. It performs almost all functions that an outside advertising agency would perform and thats why some people refer to it as full-service advertising department of the advertiser. However, the difference between an in-house agency and an advertising department is that the in-house agency can undertake to serve several other clients, if the owner so desires, but an advertising department solely undertakes that work of its owner and not of outside clients. Secondly an advertising department may not be equipped the personnel and facilities, which an in-house agency would posses. In-house agency not only provides control over advertising schedule and costs, but also offers convenience for its owner, because it is just available in the same building as that of the head office of advertiser. Such in-house agency also benefits the owner as it can bring revenue through agency commission that are offered by the media and by way of fees that are collected from outside parties for undertaking their advertising work. Such

revenue increases the funds and profits of the company. There is another version of in-house agency whereby advertiser handles the total agency functions by buying service unit to buy time, space and place the ads. Such an In-house agency is an administrative center (under the direction of an advertising director) that gathers and directs varying outside for its operation. Creative Boutiques These are shop agencies that provides only creative functions and not fullservice. The specialized creative functions include copy writing, artwork and production of ads, they charge a fee or percentage of full service agencies, and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services. Mega agencies A significant of 1980s is the development of mega agency. Agencies worldwide merge with each other serve their clients in much better way. It was in 1986, Saachi & Saachi, a London based agency who started the movement and at present it is the third largest agency network in the world. The Specialists Agency There are some agencies who undertake advertising work only in certain areas. there are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc. for instance Soubhagya advertising agency concentrate on specialized in financial advertising.

ORGANIZATION STRUCTURE: The activities within an advertising agency are typically divided into 4 broad groups: account management, the creative department, media buying, and research. These divisions are usually physically separated, although all four areas work closely together to produce an advertising campaign in its entirety. Account managers usually have daily interaction with a counterpart at the client's office and coordinate the activities of the other departments according to the client's wishes. The creative department designs original themes or concepts for ads, while the media department places finished ads within the media in which they will receive the most exposure to a target audience. The research department provides data about consumers to help the agency and the client make informed advertising decisions. Recently added to advertising agencies' roster of services are public relations, direct marketing, and promotional services. Other activities that used to be completed by outside vendors, such as photography and high-tech print work, have been brought in-house in many agencies. ORGANIZATION CHART Type 1:

Type 2:
Board of Directors

Managing Director

Client Services Director

Creative Director

Servicing Group

Creative Groups Audio Visual Language Studio Production

Media Research

Finance / Accounts Branches

Secretarial / Legal Personnel

SERVICES OFFERED BY AD AGENCY: Total Advertising Services Strategic planning, creative development and media services for advertising, particularly in television, newspapers, magazines and radio; providing the best creative designed to capture the imagination of consumers. Marketing Services Provision of a number of advertising related services, including sales promotion, market research, PR and event marketing.

 E-Solution Services E-solution services, including system integration services, e-business consulting and customer relationship management (CRM), Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-promotions using the Internet and mobile. Content Business Sales of sponsorship, broadcasting and other rights, and the production and marketing of such media / content as sporting events, films, TV programs, animated content, music and other forms of entertainment. Integrated Media Services Bringing value to both clients and media-related companies by offering a wide range of media solution services Sales Promotion Providing comprehensive sales promotion planning designed to complement mass media and other activities. Event Marketing Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spot interactive communications. Integrated Branding Services Assuring clients the highest quality of branding services for their communication needs.

ADVERTISING PROCESS When preparing your search proposal, you should take into account that the leadin time needed to place an ad can vary anywhere from days to months depending on the publication. You should plan to have your ad approved and an estimate of the cost done at least one month prior to the date when you want the ad to be published. The advertising process for professional staff and faculty positions involves five basic steps: 1. Writing an Ad 2. Getting Approval for the Text of the Ad 3. Estimating the Cost of the Ad 4. Placing Ads & Posting Announcements 5. Paying for Ads

Typical work flow in agency:

STAGE
Briefing Stage

WORK PERFORMED AT STAGE

Briefing from the client Internal briefing to the creative and media Any research briefing if required Ad campaign and media plan development Internal review and finalization Presentation to client and approvals Any pre-testing if required Budget and estimate approvals Production of film, press ads, collaterals Media Scheduling and media booking All release approvals for creative & media Material dispatch to media Media release monitoring Any post-testing if required Billing and collection

Creation Stage

Production Stage

Post Production Stage

TOP ADVERTISING COMPANIES OF INDIA: Ogilvy and Mather: This is one of the leading advertising company in India. This organization believes that devotion to the brand defines the profile of their company. This company has offices across the globe. The objective of the company is to build brands. I t is a subsidiary of WPP Group plc. The headquarter of the company is in New York.

J Walter Thompson India: One of the most popular company in the advertising industry is J Walter Thompson India. Their objective is to make advertising a part of the life of the consumers. This is also world's best advertising brand with about 200 offices in 90 countries. This company is the first one to introduce pioneer careers in ad for women, sexappeal ads and also produced the first ever sponsored -TV program. Mudra Communication Pvt. Ltd: This is one of the renowned advertising company of India. This advertising organization was founded in the year 1980 at Mumbai. Recently the Ad company declared the addition of public relations, rural marketing, events etc. The head office of the company is in Bombay Area. DraftFCB-Ulka Advertising Ltd: One of the best company in India in the advertising arena is FCB-Ulka Advertising Ltd. In US, this advertising company ranks third and tenth in the world having about 188 offices in 102 countries. Their aim is to reflect the needs of the brand and not the personality of the brand. It has about 500 professionals and no prima donnas. Rediffusion-DY&R: This Advertising company of India has made a benchmark in the field of creativity. India's 5th largest advertising company is Rediffusion. This advertising agency offers a wide array of integrated pr services for external and internal communications. The primary strength of the company lies in the media relations.

McCann-Erickson India Ltd: The prominent name among the best advertising companies of India is McCannErickson India Ltd. They define work in relation to the impact that advertising has on the lives of masses. The testimony of the company in which it firmly believes is the campaign of Coca -cola-'Thanda Matlab Coca Cola'. RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973, this advertising reached great heights. This is also India's No.1 research company. Grey Worldwide (I) Pvt. Ltd: A significant name in India in the world of advertising agencies is Grey Worldwide (I) Pvt. Ltd. The company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide. The company specializes in advertising and marketing services. Leo Burnett India Pvt. Ltd: It has a significant presence in about 96 offices in 10 countries. This advertising agency was awarded the 'Worldwide Agency of the Year' in 2004.They are proficient in explaining how a single image is worth thousand words and can break the barriers of language but not at the cost of the ad's emotional power.

CHAPTER 3- Brand & Brand Building

DEFINITION: The American Marketing Association {AMA} defines a brand as; a name, term, sign, symbol, or design, or a combination of them, Intended to identify the goods or services of one seller or group of sellers to differentiate them from those of competitors. INRODUCTION: Branding is a major issue in product strategy. Creating a brand loyal market is the main aim of any marketer. At the same time, developing a branded product requires a great deal of long-term investment, especially for advertising & promotion. Perhaps the most distinctive skill of professional marketers is their ability to create, maintain, protect & enhance brands. Branding is the art & cornerstone of marketing. Brands differ from other assets such as patents, copyrights that have expiration dates. According to Kevin Keller what distinguishes a brand from its unbranded commodity counterparts is the consumers perceptions & feelings about the products attributes & how they perform. Ultimately, a brand resides in the minds of consumers. Marketers must decide at which level(s) to anchor the brands identity. Scott Davis suggests visualizing a brand pyramid in constructing the events of a brand. At the lowest level are the brand attributes, at the next level are the brands benefits, and at the top are the brands beliefs & values.

EXAMPLE: Marketers of dove soap can talk about its attribute of one- quarter cleansing cream; or its benefit of softer skin; or its value, being more attractive. The attribute is the least desirable level. First, the buyer more interested in benefits. Second, competitors can easily copy attributes. Third, the current attributes may become less desirable. A brand can be better positioned by associating its name with a desirable benefit. Some successful brand positioning examples are Volvo (safety), hallmark (caring), Harley-Davidson (adventure), Nike (performance) & Lexus (quality). If the brand evokes a strong set of beliefs & values, the company must be careful not to stray from this. Thus Mercedes stands for high technology, performance & success. Mercedes must project these qualities in its brand strategy. BRAND ESSENCE AND ATTRIBUTES: There must be some link or fit with the property's offering and the sponsor's offering. They should share similar attributes, such as high quality, well built, expensive, high prestige Complementary Values must exist between sponsor's product(s) and property. An example is, prestige, quality and expensiveness would be present in an event associated with Mercedes or BMW. You would not expect to find both supporting an event associated with Kmart.

BRAND BUIDING IDENTITY: Building brand identity requires additional decisions on brands name, logo, colors, tagline & symbol. At the same time, a brand is much more than a name, logo, colors, and tagline of symbol. A brand is essentially a marketers promise to deliver a specific set of features, benefits & services consistently to the buyers.

Marketer must think that he is offering a contract to customer regarding how the brand will perform. The brand contract must honest.

BRAND EQUITY: Brands vary in the amount of power & value they have in the market place. At one extreme there are brands that are not known by most buyers. Then there are brands for which buyers have a fairly high degree of brand awareness. Beyond this are brands with a high degree of brand acceptability. Then there are brands that enjoy or high degree of brand preference. Finally, there are brands that command or high degree of brand loyalty. High brand equity provides a number of competitive advantages : The company will have more trade leverage in bargaining with distributors & retailers because customers expect them to carry the brand. The company can charge on higher price than its competitors because the brand has higher perceived quality. The company can more easily launch extensions because the brand name carries high creditability.

The brand offers the company, some defense against price competitive.

MANAGING BRAND EQUITY: A brand needs to be carefully managed so that its equity does not depreciate. This requires maintaining or improving brand awareness, perceived quality & functionality, & positive associations. These tasks require continuous research &

development investment, skillful advertising & excellent trade & consumer service.

BRAND BUIDING TOOLS: A common misconception is that brands are basically built by advertising. It is true that TV stations & people watched the comedies, dramas, & ads with almost equal interest. Now, viewers may be watching one of the dozens of TV stations & many are zapping or ignoring the commercials. In fact many more are simply not watching TV. They are busy on their computers or engaged in recreational activities. Marketers are therefore turning to other tools for attracting attention to their brands. Among the most important are: Public relations & press releases: Brands can gain a lot of attention from well-placed newspapers & magazine stories, etc. Sponsorship: Brands are frequently promoted in sponsored events such as world famous bicycle & car races. Clubs & consumer communities: Brands can form the center of a customer community, such as Harley-Davidson motorcycle owners or Bradford plate collectors. Factory visits: Hersheys & Cadburys, two candy companies, have built theme parks at their factories & they invite visitors to spend a day. Trade shows: Trade show creates a great opportunity to built brand awareness, knowledge & interest

 Event marketing: Many automobile companies make an event out of introducing their new car models. Public facilities: Perrier, the bottled water company, etched its identity in the public parks to promote healthful lifestyles. Social cause marketing: Brands can achieve a following by donating money to charitable causes. Ben & jerrys ice cream turns over 7% of its profits to charity.

BRAND ASSET MANAGEMENT: Although print and broadcast advertising have played a large role in building strong brands, other forces are now playing an increasing role. Customers come to know a brand through a range of contacts & touch points: personal observation & use, word of mouth, meeting company personnel, telephone experience, seeing a web page, receiving invoices, live events & so on. Any of these experiences can be positive or negative. Companies must balance their communication expenditures among the main communication media these include the following seven communications vehicles: advertising, public relations, trade and sales promotion, consumer promotions, direct marketing, event marketing & internal employee communications. Companies are increasingly moving their brand building budgets to public relations, direct marketing, event marketing & employee training.

CHAPTER 4- Ad Agency and Brand Building

The role of an ad agency in a brand's success story is a topic of much debate. While there's a school of thought that says that advertising is a peripheral component in the overall marketing mix - even though it draws a disproportionate share of attention - many others prescribe to the view that agencies play an integral role in brand building. Yet, by and large, collective marketing wisdom is strongly in favor of advertising and its creators. In fact, if one looks at the brands that fare well in the survey, more often than not, a correlation can be made to the brand being consistently visible in mainline advertising. On the other hand, many brands that have dropped significantly over the last few years have had very little support in mass media, making a case for good advertising. At the very basic level, the job of an advertising agency is to help communicate the brand's unique selling points/features/benefits etc to consumers in a way that is compelling and has ultimately a positive impact on the sales of the particular product. So we can say that the ad agencies perform a vital role in brand building from the very first level of planning to the level of reaping the profit from the market. . It is through this communication that ad agencies play such a critical part in the brand building process. The valuable in depth knowledge of the market, brands in the market, customer's choice, current market trend, compitition and govt's policies affecting it are provided with them.

To do this job effectively, ad agencies need to partner with their client in order to understand market trends, consumer behavior and other contextual factors (Political, economic, technological, social etc) both in the current time frame and over a longer term to ensure that the brand is consistently relevant and compelling for its consumers. There have been campaigns like Coca-Cola Open Happiness, Honda Grrr, Axe, Dove - these have all been inspiring, culturally impactful work done for huge brands. I particularly appreciate enduring brand-building work. Lets take the Example of Lolitaji of sixties and seventies. The women showed in the advertisement of Surf. She represented aspirations of the middle class housewife of seventies those were just planning to come out of their houses and take up jobs in outside world. The advertisement of this kind represented the aspiration level of customers making the brand so popular that till date in many parts of India detergent powders are still called as Surf. In any marketing communication we not only look at the level and capacity of the advertisement in generating sales or brand recall but we broadly reflect the life style and aspirations of people of that period. Surf has constantly kept that image that it once had with Lolitaji of being confident. The recent campaign of Surf Excell Hai na is another extension of that confidence level. So the communication serves a larger purpose than it is aimed for. This kind of brand association helps the brand to occupy a distant space in the customers perception of all brands in a product category. Marketers use that space

to convey everyone of the association attached to the brand. So the marketer can convert the mere brand positioning to a source spring of added value. In this whole process we can understand thet the advertisings and the elements used help to build a brand and increase the recall value of the brand. This is not it there have been many more such examples that shoes that advertising has played an important role in brand building. The Digen verma campaign by frootihelped a great deal in making a buzz in the minds of targer group. It created the brand and left an ever lasting impression. Jaago re Ads of Tata Tea were also a greate success and served the purpose of building brand and spreading the social message. Advertising is the medium through wwhich the ideas and the communications are materalised and reached out to the general public in the language that is very simple to understand and make a difference.