IMC

System
Regula&ng Organiza&ons
Government (M o I&B) Industry Associa8ons (AAAofI, ASCI, Ad Clubs) Consumer Organiza8ons

Facilita&ng Organiza&ons Adver&ser

Marke8ng Research agencies Communica8on agencies Media Companies

Target Consumer

Brand Management System

The type of organization structure in which brands or products are assigned to managers who are responsible for their performance Does not Replace functional organization as seen in earlier slide but acts as another layer of mangement Conceptualized & Started at P&G by Neil McElroy in 1931 Most popular among multiproduct companies in consumer markets A typical hierarchy in the system has Product Manager supported by category mangers who in turn are supported by Brand Managers/ Specic Product Executives Brand Managers are central coordinators of all marketing activities for their brand and are responsible for developing and implementing the marketing plan & programs

Brand Management System

Manufacturing & Logistics Advertising Agency Media

R&D

Brand Manager

Promotion Services

Legal Market Research

Packaging

Sales force

Role of Brand Manager

Develop Brands Marketing Plan including nancials Initiate Product and Communication development Evaluate output from R&D and Agency with consumer input Approve nal output Deliver brand results (volume, MS and perception targets) Accountable to the Marketing Head and Sales team Paid for spending clients money Seen to have a plush cabin job, especially by the sales eld force Like Client service counterpart, must be a jack of many trades but master of none; lots of accountability but little authority (except agencies and suppliers) Communication is important and yet a smaller component of overall mix

The Origins
The Advertising Agency
And its role
Volney B Palmer, often identied as having established the rst advertising agency, was a media broker. The advertiser made his own ads, Palmer released them in Media and in the bargain actually got paid by the publishers. Advertising agencies had their origins in the media function.

History - its evolution

Began as media agents in early 1900s Moved on to become program producers for radio Oered creative services there after Moved on to give value added services like positioning, brand building thereafter Diversied into integrated communications thereafter Now getting unbundled with the arrival of media independents Will they come together again?

What does an agency do?

An advertising agency
Plans (advertising and communications strategy) Prepares (Creative development and execution) Places (Media planning, buying and operations) Pays for (paying of advertising media and billing to advertisers) an advertisement/ campaign.

An agency which provides all above is a full-service agency

Other agency types

Limited service agencies
Brand consultancies (Chlorophyll, Brand alchemist, Quadra) Creative boutiques (RMG david, Vyas Gianetti, ANC) Media AORs (Initiative, Mindshare, Starcom, Madison, Loadster, Carat)

Agency Services
Account services Marketing services
The link between agency and client Managed by the Account Executive Planning department may develop brand marketing startegy Research department may design and execute research programs Media department may analyze, select and contract media resources Creation and execution of ads Copywriters, artists, other specialists

Specialist Advertising Agencies

Full-service but in specialized sector Specialized communication tools eg. Healthcare (S&H, Contract health, Euro RSCG life), Financial (Pressman, Clea, Concept)

Creative services Media Services

In-house agency

Media Planning & Buying

Production Services

How does an agency grow?

Organic
More spends from current clients/brands New brands from current client New media (outdoor/ rural) New disciplines(PR/DM etc)

Global Advertising/ Communications Groups

WPP Group ($15 Bn.) JWT, O&M, Y&R Omnicom ($12 Bn) BBDO, TBWA, DDB Needham Interpublic ($7 Bn) McCann Erickson, Lowe, FCB Publicis ($6 bn.) Leo Burnett, Publicis, Saatchi & Saatchi Havas Euro RSCG, Arnold Dentsu

New clients
Invitation Intelligence - Media Personal Contact Cold Call

Acquisitions and Mergers

International alignment Buyout

Agency Family Tree 2010

Agency Organization Classical Structure

Client/ Marketer
Account Planners Research Team

Client/ Marketer

Agency Organization Intermediate Phase

Account Planners

Client Servicing Team

Adver8sing Agency Structure

Copy & Art team

Client Servicing Team Media Planners Produc8on Planner

Research Team

Produc8on Planner

Adver8sing Agency Structure

Media Planners

Copy & Art team

Moved to specialists

Agency Organization Current

Client/ Marketer
Types of Planning product & brand consumer insights Account Planners Client Servicing Team Digital Specialist Media Specic Specialists

Agency Organization Classical Relationships Client/

Marketer
Promo8on agencies Account Planners Client Servicing Team Research agencies

Sectoral Specialists Healthcare IT Tourism

Adver8sement/ Adver8sing Campaign

Copy & Art team

Func&onal Specialists Research Media Produc&on

Produc8on Planner

Adver8sement/ Adver8sing Campaign

Copy & Art team

Research Team

Media Planners Media sellers

Printers

Film producers

Agency Organization Current Branding Relationships Design

consultants consultants Research agencies Client servicing

Film producers

Role of Client Servicing/ Account Management

Understand clients business and marketing problem/ needs Take brief Develop communication strategy/brief Initiate work within agency Motivate partners to generate great ideas Present and sell ideas Co-ordinate Execution Deliver nal nished product Collect money and meet business targets Be day to day contact with client and keep relationship healthy

Crea8ve team Printers Client Brand team Research Corp Com Sales Marke8ng

Account Planning

Promo8on agencies

Produc8on

Film producers

Media sellers

Media Planning

Role of Account Planning

Understand clients marketing problem Bring deeper understanding of the target audience- her life, needs, wants and desires, dreams and aspirations, tears and fears Develop alternative consumer insights relevant to the problem at hand Help brand communication make more unique connection with the consumer Develop Creative Brief & Inspire/ Direct Creative

Role of Creative
Take creative brief Develop alternative ideas Present and sell ideas Supervise execution Ensure end product is of high quality

Role of Production
Understand the idea developed to solve the problem Find the best resources to translate that idea into execution Co-ordinate with resources and supervise execution Deliver end product on time, within budget

Agency Compensation

Agency Compensation
Media commissions Mark-ups on advertising production Labour-based fee Percentage of sales Modied commissions

15% media commissions

Strengths
Encourages agency to produce superior work at lowest internal expense Simple to use Well accepted globally It ignores economies of scale in agency operations and agencies are overpaid Agency prone to propose mass media solutions even when they are not needed Agency negotiates with media and get more than 15% in some cases so clients should also squeeze. There is no dierence in commissions and fees if client agrees to pay 15%

Weaknesses

15% media commissions

When to use 15%
When communications largely involve mass media (FMCG and other consumer goods) When budgets are stable Use modied commission

Percentage Mark-ups
17.65% markup on costs of services purchased by agencies from outsiders such as printing, photography, market research match 15% commissions on other costs

Modied Commissions
Flat rates below 15%
Between 12% to 8%.
14 12 10 8

Sliding Scale

Sliding scale
When advertising accounts are large enough to produce economy of scale for agency, use sliding scale.

Comm 2 6 4 2 0 0 20 40 60 80 100 Comm 1

After Rs. 25 Crs.,For every 10 Crore Spend, reduce commission by 3%

Labor-based fees
Fixed Fees or Cost-plus Cost-Plus = Direct Labor cost + Overheads + Prot Strengths
Cost of agency varies directly with actual amount of service. Thus it is rational Provides client control over agency service costs

Performance-based
Single or multiple criteria usually sales, marketshare, awareness, perceptions Strengths
Agencys focus on IMC and not on expensive commissionable media More accountability

Weaknesses

Complicated and dicult to administer. Demands elaborate record keeping Intrusion by advertiser into agency management Diverts attention of client and agency from advertising to accounting This considers creation of advertising ideas to be formalized process

Weaknesses
Possible conicts on measures Advertisings eect on sales?

Key Issues
Who wins the bake-o? What was the idea of Gillette to go for Bake- o? Did it work? Why?

Gillette Dry Idea (B)

Comparison of the 3 Spots

Criteria 1 Parity or better than ASI recall Norms Total Females Total Males 2 3 a b Score better among female roll-on users compoared to total females Higher than average scores on Positive Audience Reward dimensions Relevant News(all users) Brand Reinforcement Males Females Female roll-on users c Empathy Males Females Female roll-on users 4 a b Lower than average scores on Negative Audience Reward dimensions Confusion (all users) Alienation (all users) Pass Pass Pass Pass Pass Pass Fail Pass Pass Fail Pass Fail Fail Fail Pass Fail Pass Pass Fail Fail Fail Fail Pass Pass Fail Fail Fail Fail Fail Pass Fail Pass Fail Pass Pass Pass Get-together Body@work Never-Never

Gillette Bake-O

Key Lessons
Agency-Client Relationship Message Evaluation and Campaign Evaluation Measuring Ad Eectiveness

Getting the Best out of an Agency

Factors in client-agency relationship

Work Product Creative strategy Creative execution Media planning Media buying Research Marketing strategy Work Pattern Authority structure Approval process Deadlines and timing Productivity of meetings Quality of communication Organizational factors Corporate policy Organisation structure Organisational policies Marketing strategy Personal factors

The Framework
Agency Selection system Agency-Client Feedback Process Agency Brieng Process Company decision-making/ approval/ technical-legal clearances system Inspection and Record of Creative materials system Campaign evaluation/ Creative selection system Compensation/ Evaluation System

Agency Client communication

Agency Motivation

Relationship factors Rapport/comfort Energy level Trust/respect Control patterns Personnel turnover

Focus on agency selection/ pre-relationship Periodical review honest feedback. Quarterly, half yearly, annually

Criteria to evaluate good advertising

Clarity of strategic positioning underpinning the advertising Quality of execution which embodies strategy in a piece of creative work Advertising pre-test (consumer response)

Evaluating the Creative

Good creative
Fits strategy: Does the creative copy ts earlier strategic decisions, needs of the situation and constraints of the organization? Fits TG: Is it aimed at the right potential buyers? Fits Communication Mix: Will the message work across a variety of dierent media? Leverage: Does the idea build on existing consumer beliefs in a powerful way? Simplicity: Is the idea clear, uncomplicated and unlikely to confuse? Specicity: Are the words directed at a particular need or situation? Mass communication potential: Can the message be conveyed via one- way communication media? Resistance to counter attack: Does the message create a position for the brand that others have diculty countering or matching? Durability: Can the message be used for a long time?

Evaluating Ads with decision lters

Brand lters
Is framing of brand benets persuasive? Is expression of brand symbolism apt? Will the ad jell with target audience (language, outlook, behavior, needs)?

Communication lters
Is the ad simple and easy to grasp? Is it original and creative (dramatic, striking, strong)? Does it integrate product into story?

Evaluating Ads with decision lters

Campaign lters
Is it eective extension of campaign equities

Research inputs to the advertising planning cycle

Familiarize

Production lters
How much is the cost? How long will it take to produce? How condent are we that the creative treatment would be delivered on lm/ photography? Do we have director/ photographer in mind?

Review Tracking Research Message Evaluation Research Creative Development Research Strategy Development Research

Hypothesize

Evaluate

Synthesize

Optimize

Inspire

Message Evaluation Research

Determines Have I said what I wanted to say? Aims to answer questions such as
Have we got there?

Message Evaluation Research

Message Evaluation Research

Information Areas
Ability of the advertisement to break the clutter Understanding of the comprehension capabilities of consumers Persuasion abilities of the advertisement Contribution of individual elements of the advertisement in achieving desired objectives

Message Evaluation Research - Sources of Information

Pre-tests
Laboratory/ CLT (theater/ roughs/ portfolio/ readability/ physiological measures/ comprehension and reaction) Consumer Juries Field (dummy vehicles)

Popular (proprietary) Tools

Consumer Litmus 3 (Advertising-Pre) A FCB tool MB Link AC Nielsen Ad*vantage TNS - AdEVal

Message Evaluation Research -

Deliverables
Perception Comprehension Reaction whether your advertising communicates what you wanted to communicate?

Why do this?
To prevent disaster To test new approaches to old problems To evaluate alternative methods of communicating the brands sales message To determine how well the advertising achieves its objectives To improve the proposed advertising before it is used

Case: Nerolac Paints

Field Pre-Test: Nerolac Amitabh Bachchan TVC

Strategic directions for Nerolac

Take a leadership stance in communication
Exploit the leadership position of industrial segment

Improve scores on TOMA Bring the brand in purchase consideration set of end-consumers Inuence the CWE and give him the conviction that choosing Nerolac is the right decision Build empathy amongst intermediate consumers

Targeted Respondents
SEC A&B 54 Male and 46 Female 25 to 40 years of age Living in Mumbai & Delhi

Most Watched Programmes

Mumbai News, Serials in Star, ZEE and Sony Movies Zee and Star Infotainment channels Discovery and Animal Planet Delhi News, Serials in Zee, Star and Sony Movies ZEE, Star Sports Channels Infotainment Channels Discovery and Animal Planet

Unaided recall of ads

Mumbai Colgate 16% Nerolac 10% Asian Paints 8% Hutch 8% Reliance 6% Delhi CD Dawn 10% Nerolac 8% Asian Paints 5% Hutch 5% Dettol Soap 3%
Reports of zapping during commercial breaks

Aided recall Paint category

Mumbai Nerolac 50% Asian Paints 40% Shalimar Paints 10%

Delhi
Nerolac 55% Asian Paints 55% Shalimar Paints 8%

10

Recall of Paint ads with Amitabh Bachchan

Mumbai Nerolac 75% Asian Paints 6%

Recall of Nerolac Paints advertisement

Mumbai Total recall 90%

Delhi
Nerolac 65% Asian Paints 8%

Delhi
Total recall 94%

Elements recalled Nerlac Advertisements

Elements Amitabh Bachchan Hands getting coloured Ladys folded hands getting coloured Childs hands getting coloured Navy man Joggers and businessman Goody Sea Beach Jingle and family dancing Mumbai 75% 75% 70% 70% 50% 40% 20% 20% 25% Delhi 80% 75% 65% 60% 55% 20% -

Narration of storyline Amitabh Bachchan Ad

Mumbai 45% Delhi 42%

Comprehension
Mumbai Nerolac is present everywhere 30% Nerolac touches all of us 30% Nerolac is a good paint 20% Nerolac is a paint for everyone 20% Nerolac is a water resistant paint 15%

Conclusions
ABs presence is making the ad clutter breaking AB is not dominating the ads as other elements being recalled also have good scores Main message that Nerolac is everywhere has high scores

Delhi
Nerolac is a good paint 40% Nerolac offers range and choices 25% Nerolac is a paint for every one 20% Use Nerolac 10%

11

Campaign Evaluation Research

Determines How have we fared at the market place? Aims to answer questions
Have we got there?

Campaign Evaluation Research

Popular Posttest is often Tracking Research in consumer goods categories

Campaign Evaluation Research

Information Areas
Advertisement comprehension Recall of dierent elements of the advertisement Recognition Association Ad likeability or its uniqueness measure Overall eectiveness of advertisement in a competitive context
Ad awareness v/s media spends Brand awareness v/s ad awareness

Campaign Evaluation Research - Sources of Information

Brand tracks commissioned by the clients
IMRB Brand Track TNS Brand Track AC Nielsen Brand Track

Store panels Retail audits

Campaign Evaluation Research -

Deliverables

A comparative score for the competing brands on the following parameters

TOMA, Spont Awareness, Overall Awareness Message comprehension Brand positioning
ADVANCETRACKING PROGRAMME ON PAINTS Presentation for the Quarter 1 Findings Presented to : Goodlass Nerolac Paints Ltd Presented by : IMRB International 29th January 2004

12

Methodology for the Nerolac ATP

Target Audience for the Research

SEC A1, A2, B1 households.

n n

Continuous Quantitative interviewing Face to face Interviewing using structured questionnaire

Age: 25 -45 years Data collection period Reported in thispresentation Total Sample size Locations (Sample) : from 1st of Oct : 1st October to 27th of Dec 2003 : 1290 (included for this presentation) : Mumbai (390), Delhi (390), Kanpur (130), Hyderabad (131), Cochin (119) & Ahmedabad (130) Should be a decision-maker for the type of paint (Cement / Distemper / Emulsion)

Either painted the interiors / exteriors of the house in the last 6 months or intending to in the next 6 months.

The ATP was undertaken at following centers:

Brand Saliency - Top of Mind Awareness

Locations Delhi Mumbai Ahmedabad Hyderabad Cochin Kanpur Total Sample

High Activity Moderate Activity Sample * Weeks Sample * Weeks 30 * 16 = 480 20 * 10 = 200 30 * 16 = 480 20 * 10 = 200 10 * 16 = 160 10 * 10 = 100 10 * 16 = 160 10 * 10 = 100 10 * 16 = 160 10 * 10 = 100 10 * 16 = 160 10 * 10 = 100 1600 800

Low Activity Sample * Weeks Yearly Sample 10* 18 = 180 860 10* 18 = 180 860 10* 18 = 180 440 10* 18 = 180 440 10* 18 = 180 440 10* 18 = 180 440 1080 3480

High TOM recall for Asian Paints; Nerolac a distant second. Nerolac getting highest mentions in Kanpur; Scores for Asian Paints very high in Mumbai & Hyderabad In Cochin, Nerolac and Berger also recalled well. Total Del
390

All figs in %

Mum
390

Ahd
130

Hyd
131

Coc
119

Kan
130

Base:

1290

Any Asian Pts Asian Paints Any Nerolac Nerolac

67 63 21 20 9 2 1

50 47 27 27 17 2 3

86 79 11 11 0 3 -

69 66 25 25 4 1 2

91 89 4 4 2 2 1

53 50 21 18 23 2 1

43 42 43 43 12 1 2

Sample size varies as per the intensity of marketing activity which could be broadly classified as:
High Activity Period Moderate Activity Period Low Activity Period September to December January to March April to May, August 16 Weeks 10 Weeks 18 Weeks

Any Berger Any ICI-Dulux Any Shalimar

Total no of weeks

44 Weeks

Q- When you think of paints, which brands come your mind? Top of mind refers to the first brand recall by consumer

Brand Saliency - Total Spont awareness

To sum up Saliency & Awareness

Saliency for Nerolac moving towards parity with Asian Paints. Amitabh Bachchan campaign has contributed in building this. The focus Of Nerolac now, should be towards enhancing TOMA recall, where the gap between Asian Paints & Nerolac signicant, more since TOMA has a high correlation with preference. Asian Paints enjoys maximum Top of Mind recall as well as universal saliency. Considerable marketing activities and communication over the years could have helped them in maintaining this.

Asian Paints dominates - near universal saliency Highest saliency for Nerolac in Kanpur Berger more salient in Cochin. Total Del
390

All figs in %

Mum
390

Ahd
130

Hyd
131

Coc
119

Kan
130

Base:

1290

Any Asian Pts Any Nerolac Any Berger Any ICI-Dulux Any Shalimar

98 92 60 31 25

96 87 67 22 15

100 96 46 56 25

100 92 38 12 25

100 98 63 24 25

98 84 87 17 47

95 98 78 21 30

Q- When you think of paints, which brands come your mind? Total Spontaneous refers to the unprompted brand recall

13

Executions recalled AB Theme Ad

Only Amitabh Bachchan recalled shadows other execution elements. Consumers missing the key Link!

To sum up Communication
Amitabh Bachchans presence manages to break the clutter and provides noticeability / saliency to Nerolac. However theme ad has not been able to leave behind the desired message. AB the only high point in the advt and he emerges as the hero rather than brand. Sunil Babu, despite consumers not playing back Time Proof Beauty, communicating long lasting and durable paint message.

Base: Proven Recallers Shown Amitabh Bachchan Shakes hand with everyone Plays with child Colour comes on girls hand Colour comes on ladys hand People get colour on their hands VO: yeh rang hai . VO: Hum keh rahe hai Written: Nerolac

184 91 46 8 12 9 33 15 8 4

Learning's & Hence Way Ahead Amitabh Bachchan enhances brand saliency for Nerolac However Top of Mind awareness yet to be achieved. AP the leading brand across most centres. Mumbai and Hyderabad weak markets for Nerolac; Kanpur the strong market. Three way competition (with Berger) seen in Cochin and Delhi.

Research
Is an aid for future directions Yet it fails to answer, which campaign will make the biggest contribution to our brand over a period of years? Here one still have to rely on judgment Research is a guide not a denite answer

Research and agency

Does your agency rely strategy based on data, market facts and solid research? Does it use appropriate researches at dierent stages of a campaign? Does it convert research into actionable strategy? Does it realize limitations of the research while developing strategy?

Thanks

14

Advertising Planning
Situation Analysis Advertising Objectives

Media Planning
Message strategy/ Creative Brief Advertising Concept Development Creative Execution and Production

Media Objectives (Reach, Freq., GRPs, Budget) Media Strategy Mix Media buying and operations &

Measuring Effectiveness

The Concept of Media

The Ladies Home Journal was rst published in 1902. Cyrus H K Curtis, who founded the magazine, once explained his motives to a group of marketers :

Media Majors
AOL Time-warner News Corporation Disney Viacom Bertelsmann
They are in Newspapers, Magazines, Books, TV Networks/ Channels, Radio, Films, Cinema Exhibition, Music, Theme parks, Sports Teams, Retail stores

The editor of the Ladies Home Journal thinks we

publish it for the benet of American women. This is an illusion, but a very proper one for him to have. The real reason, the publishers reason, is to give you, who manufacture things American women want, a chance to tell them about your product.

Key Decisions
Media Planning
Media Class decisions Media Vehicle Decisions Media Options Decisions Media Scheduling Decisions
Strategic

Tactical

Media Planning Concepts & Vocabulary

15

Media Concepts
Media Class Broad Communication platform

Advertising Media Mix

Print (News, Leisure, Specialized) Broadcast (Radio, Television) Network (Telephone, Cable, Wireless) Electronic/ Digital Media (Internet) Display Media (Billboards, Glowsigns, Wall-paintings) Cinema POP (Servicescapes, Retail showrooms)

Events

Media Concepts
Media Vehicle Specic constituent of the medium. Programme in case of TV, Daily or Magazine in case of Press

Media Concepts
Media Vehicle Specic constituent of the medium. Programme in case of TV, Daily or Magazine in case of Press

Medium :TV Medium :Press Medium :Outdoor Vehicle : Vehicle : Vehicle : MCI2 ET Neon

Media Concepts

Media Concepts
MPR Maximum Possible Reach Maximum % of Target Audience reached by any particular medium

Reach % of Target Audience reached by any particular medium or vehicle

16

Media Concepts
Primary vs Secondary Reach Primary Reach % of Target Audience reached, who own, for example a TV Secondary Reach % of Target Audience reached, through, for example by TV, not owned by them

Primary vs Secondary Reach (TV)

Target Audience : All Adults

Media Concepts

Market Type Viewing Urban Rural Total

Primary % 60 16 28

Secondary % 14 15 15

Non- % 26 70 57

Media Concepts
Readership Reach of a particular Press Vehicle % of Target Audience who read any particular Press Vehicle Can also be represented as number of Target Audience who read any particular Press Vehicle

Circulation Vs Readership : RPC

Audience Publication Circ 000 175 150 175 150 175 150 Rdrs 000 875 450 350 300 175 300 Rdrs/ Copy 5 3 2 2 1 2

Adults

Stardust Business Today India Today Business Today India Today Business Today

Men

Senior Bus. Men

Media Concepts
CPT Cost per every thousand Target Audience reached Also Referred to as CPM
Audience : Females Market : Bombay Duration : 30

Media Concepts
CPT : Example

Medium Vehicle TRP/ Readership TV Chitrahaar 30 Feature Film 38 Rangoli 35 Press Times of India (100cc B/W) 70,000 Femina (FPC) 50,000 Cine Blitz (DSC) 40,000

Total TA 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000

TA Reached 60,000 76,000 70,000 70,000 50,000 40,000

Rate (Rs) 110000 130000 110000 1440 106000 120000

CPTs (Rs) 1.83 1.71 1.57 2.06

17

Media Concepts
Viewership Reach of a particular TV Vehicle % of Target Audience who view any particular TV Vehicle / Programme

Media Concepts
TRP % of Target Audience in a particular market who have viewed any particular episode of a TV programme, expressed as a number

Media Concepts
TRP % of Target Audience in a particular market who have viewed any particular episode of a TV programme, expressed as a number

TRP: Soaps on Hindi GECs

Show Name Diya Aur Baa8 Balika Vadhu Dance Ke Superkids KBC (Sony) Bade Ache Lagte Saathiya Pavitra Yeh Rishta CID TRP Ra&ng 5.3 4.7 4.55 4.3 3.9 3.6 3.5 3.4 3.4
Week 37, All Adults

For example TRP for KKK among females in Bombay on the 2nd of Sep was 32 i.e. 32 % of all females watched KKK on the 2nd

TVR- as calculated by Peoplemeter

Television Ratings (TVRs) : Time weighted
audience Person 1 2 3 4 5 Minute 1 2 - Y - - - - - - Y Y 3 - - Y - Y 4 - - - - - 5 - Y - - - 6 - - - - -

A Rating
Definition : The percentage of the target audience who saw the programme/commercial 1 rating point = 1% of the target audience. Audience Achieved Defined Universe (x 100) = Rating 18-40 yrs Women watching Friends - 1,100,000 18-40 yrs Universe - 2,750,000 Rating - 40%

Formula : In Practice :

TRP = (6 / 30) * 100 = 20 = [{(1 / 5)+(2 / 5)+(2 / 5)+(0 / 5)+(1/ 5)+(0 / 5) } / 6] * 100 = 20 TRP = 20% of audience watching all the time

Question: If 900,000 Housewives saw our commercial during Dynasty and the universe for Housewives is 3.6m, what rating did we achieve?

25

18

Media Concepts
CPRP Cost per Rating Point

Media Concepts
CPRP Cost per Rating Point

For example the TRP for Chitrahaar is 30 and the rate per 10 is Rs 110,000. Therefore the CPRP = 110000/30 = Rs 3666.70

Media Concepts
CPRP : Example
Audience : Females Market : Bombay Duration : 30 Medium Vehicle TV Chitrahaar Feature Film Rangoli TRP 30 38 35 Rate (Rs) 110000 130000 110000 CPRP (Rs) 3666.70 3421.10 3142.90

Media Concepts
Media Plan An activity schedule by medium, by vehicle that is designed to meet a certain pre-set objective. It shows the number of spots/ insertions, cost and schedule of spots / insertions

Media Concepts
Media Plan : Example
Audience : Females Market : Bombay Duration : 30 Medium Vehicle TV TV Total Press Times of India (100cc B/W) Femina (FPC) Cine Blitz (DSC) Press Total Chitrahaar Feature Film Rangoli Rate (Rs 000s) 110 130 110 Jan 4 2 4 10 Feb 4 2 4 10 Mar 2 2 4 8 Cost (Rs 000s) 3300 2340 3960 9600

Media Concepts
GRP Sum of TRPs for a particular plan. It is a measure of the media plans thrust. Total exposures in % of Total TG

1440 106 120

4 2 1 7

4 1 5

4 2 1 7

1728 424 360 2512

19

Media Concepts
Example
Audience : Females Market : Bombay Duration : 30 Medium Vehicle TV Chitrahaar Feature Film Rangoli TV Total Press Times of India (100cc B/W) Femina (FPC) Cine Blitz (DSC) Press Total TRP 30 38 35 Rate (Rs 000s) 110 130 110 1440 106 120 Jan 4 2 4 10 4 2 1 7 Feb 4 2 4 10 4 - 1 5 Mar Cost (Rs 000s) 2 2 4 8 4 2 1 7 3300 2340 3960 9600 1728 424 360 2512

Media Concepts
GRP : Example
Audience : Females Market : Bombay Duration : 30 Medium Vehicle TV Chitrahaar Feature Film Rangoli TV Total TRP 30 38 35 Jan 120 76 140 336 GRPs Feb Mar 120 76 140 336 60 76 140 276 Total 300 228 420 948

GRPs
GRPs = (TRPs in a media schedule) GRPs = (S x TRPs) GRPs = Reach x AOTS where S is #spots

Gross Rating Points (GRPs)

Definition : In Practice : The sum of all ratings achieved in a given period. Our commercial appeared in the following programmes : Programme Friends Dynasty Movie Sport News Rating 32% 21% 18% 24% 15% 110% - 110 GRPs achieved (or 110% of defined universe)

Question:How many GRPs would be achieved by a campaign with two spots in a movie (achieving 21% rating on one occasion & 25% rating on the other), a spot in Dynasty(achieving a 18% rating) & a spot in the News (achieving 16% rating)?

80
Net Reach

Media Concepts
Gross Reach & Net Reach Gross Reach Is expressed in numbers. Is mathematically equal to the number of spots / insertions per vehicle multiplied by the reach in numbers of that particular vehicle. Hence this may count each individual more than once

Media Concepts
Gross Reach & Net Reach Gross Reach
Is expressed in numbers. Is mathematically equal to the number of spots / insertions per vehicle multiplied by the reach in numbers of that particular vehicle. Hence this may count each individual more than once Expressed in Numbers or %. Is equal to the total number of individuals reached. Eliminates duplication

20

Media Concepts
AOTS : Average Opportunities To See/ Frequency Is actually a mathematical concept. Equals Gross Reach in numbers divided by Net Reach in numbers AOTS = Gross Reach (000s) Net Reach (000s)

Media Concepts
Gross Reach, Net Reach, Frequency
Cine Blitz (1) Femina (1)

20,000

20,000

30,000

Gross Reach in numbers Net Reach Frequency/ AOTS

= 90,000 = 40,000 + 50,000 - 20,000 = 70,000 = 90,000 / 70,000 = 1.29

Media Concepts
Eective Frequency Number of times an individual needs to be exposed to a communication in a xed time frame for him to react in a desired way
Example : Eective frequency of 5+ means reaching an individual at least 5 times

Media Concepts
Eective Reach % of Target Audience who have been reached at least Eective Frequency number of times
Example : If 50% have been reached at least 5 times, then 50% is the Eective Reach at 5+

Media Concepts
Eective Frequency and Eective Reach
Chitrahaar 1+ 2+ 3+ 2+ 1+ Rangoli 2+ 1+ Feature Film

Reach

GRPs -95 Reach -59%

In Practice :

Definition :

The percentage of the target audience who saw the commercial at least once during a given campaign period.

Programme Rating Unduplicated Reach Cumulative Reach Friends 32 32 32 Dynasty 21 11 43 Movie 18 9 52 Sport 24 7 59 News 15 4 63 110 GRPs 63% 63% Reach

Question:If we did not have the News on the above schedule, how many GRPs and what Reach would this campaign achieve?

21

Average Frequency
Definition : Formula : In Practice : The number of times, on average, the audience reached sees the commercial during a given period. Average Frequency = Total GRPs Reach or GRPs = Reach x Average Frequency 110 GRPs 63% Reach = 1.75 Average Frequency Therefore, 63% of the target audience will see the commercial on average 1.75 times during the given period. ? % Reach ? GRPs ? Av Frequency ? Av Frequency ? Av Frequency

Average Frequency
Definition : Formula : In Practice : The number of times, on average, the audience reached sees the commercial during a given period. Average Frequency = Total GRPs Reach or GRPs = Reach x Average Frequency 110 GRPs 63% Reach = 1.75 Average Frequency Therefore, 63% of the target audience will see the commercial on average 1.75 times during the given period. ? % Reach ? GRPs ? Av Frequency ? Av Frequency ? Av Frequency

Question:350 GRPs and 7.0 Av Frequency = 80% Reach and 5.0 Av Frequency = 400 GRPs and 80% Reach = 300 GRPs and 55% Reach = 350 GRPs and 60% Reach =

Question:350 GRPs and 7.0 Av Frequency = 80% Reach and 5.0 Av Frequency = 400 GRPs and 80% Reach = 300 GRPs and 55% Reach = 350 GRPs and 60% Reach =

50

Average Frequency
Definition : Formula : The number of times, on average, the audience reached sees the commercial during a given period.

Average Frequency
Definition : Formula : In Practice :

In Practice :

Question:350 GRPs and 7.0 Av Frequency = 80% Reach and 5.0 Av Frequency = 400 GRPs and 80% Reach = 300 GRPs and 55% Reach = 350 GRPs and 60% Reach =

400

Average Frequency = Total GRPs Reach or GRPs = Reach x Average Frequency 110 GRPs 63% Reach = 1.75 Average Frequency Therefore, 63% of the target audience will see the commercial on average 1.75 times during the given period. ? % Reach 50 ? GRPs ? Av Frequency ? Av Frequency ? Av Frequency

Question:350 GRPs and 7.0 Av Frequency = 80% Reach and 5.0 Av Frequency = 400 GRPs and 80% Reach = 300 GRPs and 55% Reach = 350 GRPs and 60% Reach =

5.0

The number of times, on average, the audience reached sees the commercial during a given period.

Average Frequency = Total GRPs Reach or GRPs = Reach x Average Frequency 110 GRPs 63% Reach = 1.75 Average Frequency Therefore, 63% of the target audience will see the commercial on average 1.75 times during the given period. ? % Reach 50 ? GRPs 400 ? Av Frequency ? Av Frequency ? Av Frequency

Average Frequency
Definition : Formula : The number of times, on average, the audience reached sees the commercial during a given period.

Average Frequency
Definition : Formula : The number of times, on average, the audience reached sees the commercial during a given period.

In Practice :

Question:350 GRPs and 7.0 Av Frequency = 80% Reach and 5.0 Av Frequency = 400 GRPs and 80% Reach = 300 GRPs and 55% Reach = 350 GRPs and 60% Reach =

5.45

Average Frequency = Total GRPs Reach or GRPs = Reach x Average Frequency 110 GRPs 63% Reach = 1.75 Average Frequency Therefore, 63% of the target audience will see the commercial on average 1.75 times during the given period. ? % Reach 50 ? GRPs 400 ? Av Frequency 5 ? Av Frequency ? Av Frequency

In Practice :

Question:350 GRPs and 7.0 Av Frequency = 80% Reach and 5.0 Av Frequency = 400 GRPs and 80% Reach = 300 GRPs and 55% Reach = 350 GRPs and 60% Reach =

5.83
? % Reach ? GRPs ? Av Frequency ? Av Frequency ? Av Frequency

Average Frequency = Total GRPs Reach or GRPs = Reach x Average Frequency 110 GRPs 63% Reach = 1.75 Average Frequency Therefore, 63% of the target audience will see the commercial on average 1.75 times during the given period. 50 400 5 5.45

22

Plan 1

Reach, Frequency, GRPs

Channel
Network DD Metro

Plan 1
Channel
Network

Reach, Frequency, GRPs

Program
Chitrahaar Fri.Film Sunday Film Superhit Muquabla

Program
Chitrahaar Fri.Film Sunday Film Superhit Muquabla

Cost/30"
405000 345000 135000 345000

Spots
2 2 2 2

GRPs
60 78 50 80

Cost/30"
405000 345000 135000 345000

Spots
2 2 2 2

Reach%

DD Metro

Plan 2

Total
Channel
Network DD Metro

1230000
Program
Yug Swabhimaan Sunday Film Aankhon Dekhi

8
Spots
4 8 2 4

268
GRPs
60 80 50 80

Cost/30"
80000 200000 90000 120000

Plan 2

Total
Channel
Network DD Metro

1230000
Program
Yug Swabhimaan Sunday Film Aankhon Dekhi

8
Spots
4 8 2 4

55%
Reach%

Cost/30"
80000 200000 90000 120000

Total

490000

18

270

Total

490000

18

25%

Why Reach ... & why not GRPs ?

Plan 1 Costly 268 GRPs Only 8 spots Plan 2 Cheaper 270 GRPs A total of 18 spots

Media Concepts
SOV : Share of Voice GRPs for a particular brand expressed as a percentage of the GRP for the dened category
Example : GRPs for Coke in May = 1000 GRPs for the Soft Drink Category in May = 4000 Hence SOV for Coke = 1000 / 4000 = 25%

But the most important element is that Plan-2 reaches out to 30% lesser potential target audience than Plan-1

Media Concepts
SOS : Share of Spends Spends for a particular brand expressed as a percentage of the Spends for the dened category
Example : Spends for Coke in May = Rs 3 Crores Spends for the Soft Drink Category in May = Rs 10 Crs Hence SOS for Coke = 3 / 10 =30 %

Media Concepts
Thus Far Medium Media Vehicle Reach Maximum Possible Rch Primary Reach Secondary Reach Readership Viewership Media Plan TRP

GRP CPRP CPT Gross Reach Net Reach OTS Eective Frequency Eective Reach Share of Voice Share of Spends

23

Strategic Media Planning

Media Team on a UniLever Brand

Agency Media Activities/ Processes

HUL
Strategic Media Planning Implementation Media Planning

Media Planning

Media Buying

Media Operations

Fulcrum
Buying & Ops

Evaluations Recommendations Strategic inputs

Negotiations Strategic tie-ups Striking deals

Follow ups Coordination ROs, accounting

Market(Channels, producers, publications media houses)

Media Brief: Client Inputs for Media Plan

Category sales gures Geographic sales distribution Market size/Market shares Protability trends Seasonality Cost history/price uctuations Product attributes Consumer demographics/psychographics Buying habits Distribution network/marketing strategy Budget allocated

Various Steps in Media Planning

Studying the Target Audience and its Media preferences Review of previous years performance Competitive Analysis Identifying Media Objectives Framing a Media Strategy
Market Prioritization Media Class Selection Media Vehicle Selection

Media Brief

Developing the Final Plan/ Schedules Plan Evaluation Post Campaign Review

24

Situation Analysis

Databases Used By Planners: Print

NRS - National Readership Survey (NRSC) IRS - Indian Readership Survey (MRUC) ABC - Circulation gures Product proles - Data on product and brand usage

Consumer

Usage Study

Product

TG Media habits

Competitive Review

Media

TRP Reports
Television being a dynamic medium, there is a need for information on a more regular basis. Therefore, TRP reports on the viewing behavior of people is made available on a weekly basis. Till a couple of years ago there were 2 ways of measuring the Rating Point of a TV program :
TRP based on the Diary Method TRP based on People meters

Competitive Spends
TAM - Nielsen Press Audit, ADEX, MAP Time Monitoring Services Super services

TAM/Audience Measurement and Analytics (aMap)

Media Objectives
The Media Analyzer Package
To reach a specic number of people a

specic number of times

Provides competitive data on Press advertisements

Number of people refers to How many ? Number of times refers to With what impact ?

Basic constituents of Media Weights

For reviewing competitive activities and benchmarking budget

25

Marketing Objectives and Media Objectives

Marketing Objective To increase share with special eort directed only to the existing customer base To launch the new product Media Objective Focus on the Core Target segment in the existing markets and increase frequency of exposure to our advertising Target all customers in target segments in all potential markets and increase reach of the advertising

Basic parameters for setting media objectives

They essentially ow from communication objectives: What reach level is needed How much frequency is required What level of eective reach (frequency) is optimum?

Basic parameters for setting media objectives

Should reach/frequency vary by geographic area/day of the week or month? Are delivery objectives dierent for dierent target groups (primary, secondary, etc.)? Should reach/frequency be addressed for each creative execution, or for all executions combined?

Basic parameters for setting media objectives

Should reach/frequency goals vary by advertising message length (e.g. 15 sec vs 30 sec Spots, half page vs full page ads)

Some directions
Established brand
Hi reach/low frequency/low impact

1. SOV : SOM
Established large players operate with SOV lower than SOM Smaller players at SOV=SOM or 1.5 times SOM New launches, SOV 3+times SOM SOV and category GRPs used to arrive at GRP targets Inationary, could lead to spiraling eect Diculty in projecting competition and forecasting category GRPs

New concept
Low reach/hi frequency

New brand in matured market

Hi impact/low reach/ hi frequency

26

SOV : SOM

2. Using Awareness:Trial Ratios

Desired Volumes

Avg. consumption unit per TA No of people who should retain No of people who should try No of people should be aware No of people to be reached

50 mn Base 40 mn Reached (80% of Base) 28 mn Aware (70% of Reached) 7 mn Tried (25% of Aware) 1.75 mn Retained (25% of Triers) Sales 4 mn units 5 mn 3.5 mn 0.87 mn 0.22 mn

3. Eective Reach & Frequency

Eective reach is delivered at eective frequency Eective frequency is the level of exposure to an advertising message that is judgmentally determined to be necessary to ensure successful communication Normally reach at 3+ considered eective

Additional 0.5 mn units

Maximizing at 3+
90 80 Undesirable1 Undesirable2 Ideal

Media Objectives
Maximize Reach @ 3+

70 60 50 40 30 20 10 0 1+ 2+ 3+ 4+

5+

27

Maximizing@3+
Undesirable 1, in the previous slide, is over delivering at Higher frequency In Undesirable 2, in the previous slide, there is over delivery at Lower Frequency While an ideal situation is dicult to achieve, it can still be balanced between the two undesirable extremes so that Max. Reach@3+ can be achieved
70 60 50 40 30 20 10 0

Reach at Exact Freq Levels

Undesirable1 Undesirable2 Ideal

4. Others
Benchmark against competition to arrive at GRP targets Advertising to Sales ratio Need-based

Market Prioritisation
Measure markets based on the following parameters
Category Development Index Brand Development Index Target Audience Size Media Entry Cost

Decide on the markets which requires mass media support

Target Markets
Critical component in the strategic media planning process Indian Subcontinent can be clustered in many ways like:
Urban/Rural States/Zones Town-class specications like Metros/mini metros Cable Penetration (surrogate lter for income propensity)

Market Prioritization-CDI & BDI

Brand Sales in Market Total Brand Sales All India x 100 TG in Market Total TG All India BDI, CDI = Sales Salience x 100 TG Salience

28

CDI & BDI

BDI

Index less than 100 indicates scope for developing market An index greater than 100 indicates a developed market BDI vs CDI comparison indicates potential for brand

CDI

High

High Market share/ Good Market Potential

Low Market share/ Good Market Potential

High Market share/ Possible Sales Decline

Low Market share/ Poor Market Potential

Low

High

Low

Large Market

Other Factors
BDI < CDI
Marketing Objectives Apart from BDI/CDI, growth trends, (volume and market share) are important indicators to decide priorities Competitive sales data becomes important in an aggressive marketing strategy Weights assigned to various variables and prioritization done

BDI > CDI

Priority II Brand doing better than
category. Task- Consolidate/Maintenance

Priority I Brand doing poorly v/s category

Task - Build

BDI > CDI Priority III Task - Maintenance

BDI < CDI Priority IV Ignore Small Market

State

Category Sales 870 700 550 450 450 400 340 320 300 300 300 300 250 250 210 180 160 150

Brand Sales 75 65 70 25 100 65 45 30 35 60 80 50 25 10 25 10 21 20

Comp. Sales 100 80 50 50 50 45 50 60 50 30 100 75 50 25 50 30 35 50

% Dispersion Category Brand 13.4 10.8 8.5 6.9 6.9 6.2 5.2 4.9 4.6 4.6 4.6 4.6 3.9 3.9 3.2 2.8 2.5 2.3

BDI TG

CDI

Bihar AP Maharashtra NE(excl. Assam) Weat Bengal Kerala Punjab Orissa Arunachal Karnataka Tamil Nadu Uttar Pradesh Assam Gujarat Rajasthan Haryana Himachal Delhi

Growth Mkt

Media Class Decisions

Reach, Quantitative Info. Category-Medium t Creative Execution - Medium t Production logistics & Costs Competitive Setting

9.2 4 243 8.0 11 70 8.6 6 151 3.1 7 46 12.3 1 863 8.0 6 140 5.5 5 117 3.7 5 78 4.3 9 50 7.4 7 104 9.9 5 207 6.2 5 129 3.1 0 647 1.2 10 12 3.1 4 81 Too 1.2 small 5 for 26 investments 2.6 4 68 2.5 7 35

352 95 149 104 486 108 110 104 54 65 97 97 810 37 85 58 65 32

29

Print (Dailies)
Local coverage High announcement value owing to authenticity Very short life span and small pass along readership No demographic selectivity Good reproduction only with colour supplements

Print (Magazines)
Demographic selectivity Long Shelf life and good pass along readership Good reproduction Long lead time and high spill over Heavy duplication with dailies and television

Television
Combines sight, sound and motion Provides high reach and appeals to senses Fleeting exposures Highly fragmented medium Need to identify channels as
Reach builders & Frequency boosters

Radio
Mass coverage at low cost especially in lower town classes Fleeting exposures Low attention level and therefore longer campaign period suggested Local coverage Ideal reminder medium

Eective use of dayparts will extend mileage

Media Vehicle Decisions

Overall Distribution base Prole Cost Eciencies

Vehicle selection in Print

Normally based on Cost eciency (CPTs) Qualitative judgements made basis magazine proles

30

Vehicle selection in Radio

Based on Cost eciency (CPTs) Based on time of day

Vehicle Selection
Objective 2+ 30% Step 1 :Chitrahaar selected (TRP = 68) Step 2 : Two options
HFF Rangoli : : CPRP = 3000 (TRP = 60) CPRP = 3000 (TRP = 50)

Vehicle Selection
Objective 2+ 30% Step 1 :Chitrahaar selected (TRP = 68) Step 2 : Two options
HFF Rangoli : : CPRP = 3000 (TRP = 60) CPRP = 3000 (TRP = 50)

Proprietary Softwares/ Optimizers

Press
Sesame

TV
Media Xpress Medialogist Xpert

Radio
Chitrahaar 32 % Rangoli Chitrahaar 26 % HFF

Radar

Media Option Decisions

Advertisement Size & color: Advertisement Location Innovations

System for Estimating Press Reach & Setting and Allocating Press Expenditure

31

Scheduling & timing Decisions

Flighting (Burst) Continuous Pulsing

Scheduling Patterns
Continuous

Flighted

Pulsing

Scheduling
Is there any seasonality associated with sales - Recency Can we aord to be present throughout the year? What ways in which we can stretch our media rupee in terms of months active in a year?
Bursting Pulsing

Media Plan Development

Steps
Optimise the number of spots / insertions Deliver the set media weights at the minimum cost

What is the level of media eort that is required every month?

Media Plan Development

Steps
Optimise the number of spots / insertions Deliver the set media weights at the minimum cost Scheduling
- Purchase patterns - Competitive Scheduling

Media Plan Development

Steps
Media Mix : Which Media to take ?
Quantitative Factors : Media Reach, Entry Costs Qualitative Factors : Creative Considerations

Vehicle Mix : Which Programmes / Dailies / Magazines to take ?

Quantitative Factors : Viewership / TRP / Readership / CPRP / CPT Qualitative Factors : Creative Considerations

32

Flighted Indica, Continuous Santro

2500 2000 1500 1000 500 0 Apr

Thank You

May

Jun

Jul

Aug

Sep Santro

Oct

Nov

Dec

Jan

Feb

Mar

Indica

33