Impact of advertising in business

PREFACE

It is a matter of great honour for me to present before my humble readers this
project based on the study of “Advertising Agencies”. The foregoing presentation is an
honest and painstaking effort on my part in black and white about the colourful world of
advertising agencies. The data collected by me is both primary as well as secondary. I
have taken assistance from knowledgeable and apt taskmasters shouldering work f great
responsibility in some of the reputed advertising agencies. However, with due respect to
the urge of these agencies for maintaining secrecy about their operations and financial
data ,I also had to resort to secondary sources for obtaining data like newspapers,
magazines and the websites of these agencies. Although the information obtained from
secondary sources may prima facie seem to be paralysed by window dressing, to be
absolutely frank with my understanding readers, it has been discovered that this data is as
reliable as the one I have obtained from the horse’s mouth for other agencies.
Due to paucity of time and reluctance of certain internationally acclaimed
advertising agencies in co-operating with me for this project due to some obvious reasons
on their part ,I have been able to cover in this project a study of 6 agencies. But the
foregoing pages will warrant my painstaking efforts and the extensive study undertaken
by me for each of them.
So, with due respect to my patient readers for the time they will spare for my
project and with confidence flowing through my nerves that both the time and patience of
my readers will not be tried and tested and but duly rewarded with the intensity of my
efforts , I carry you gracefully into my world of advertising agencies……………

2

EXECUTIVE SUMMARY

1. OBJECTIVE :

To study the various advertising agencies; the ones having local operations as well as
the ones have international scale of operations, their modus operandi, styles and the
manner of functioning, their profiles, their upswing and their downfall and last but not
the least their position in the world of advertising on the basis of the contributions to
the ad world and society at large.

2. METHODOLOGY :

In order to achieve the above-mentioned objective and finish the study to perfection, I
have made a judicious and a balanced use of primary sources as well as secondary
sources of data collection. Well, the primary sources comprise of personal visits to the
administrative offices of some known advertising agencies and a direct
communication with the persons who were knowledgeable and in-charge of the
operations.

To facilitate in my operations, I had first chalked out a detailed questionnaire covering
in length all questions that would serve the purpose in the most efficient and
productive way. The preparation and the formulation of the questionnaire was on the
basis of many considerations viz., the time that the answeree would require to give me
the required answers, the importance of that time and the cost involved. A copy of the
said questionnaire is included elsewhere in this project as an Annexure.

Although the efforts were directed basically towards obtaining information required
for the study from primary sources to the maximum possible extent, due to factors like
lack of co-operation anticipated from stalwarts and internationally acclaimed agencies,
considerations of these agencies over secrecy of data regarding their operations, lack
of time for answering the questionnaire and unavailability of the persons-in-charge, I

4

also had to resort to secondary sources like websites, magazines, newspapers etc.
Bibliography of these sources forms a part of this Project for ready reference of the
reader.

A sample of six agencies was chosen on the basis of their scale of operations,
reputation and quick accessibility.

3. CONCLUSIONS :

During the course of this study I have observed many a facet of the advertising
agencies ----- their strengths, their weaknesses, their opportunities and threats which
deserve a mention :
⇒ Most of the advertising agencies are basically interested in catering to just the
needs of the consumer irrespective of the nature of the product or service
proposed to be advertised.
⇒ The primary objective of the agencies is basically profit generation and profit
maximisation.
⇒ The agencies conduct a SWOT of the client but not of the product at the time of
accepting an assignment.
⇒ There is not much of a dynamism in this agencies as far as expansion plans are
concerned, diversification objectives are involved or specialisation motives are in
question.
⇒ Not much is done by these agencies for the social welfare and advertising of social
values
⇒ The agencies are highly committed to their activities but sometimes they tend to be
over-professional in their attitudes, over-reserved in the choice of strategies, over-
confidential in their operations and over-aggressive in competition.
⇒ Not many agencies are laying too much emphasis on selection of proper human
resources or managerial personnel. They appear over-burdened by objectives of
cost control.

5

⇒ There is not proper training imparted to people working in the modestly
positioned advertising agencies. Due to this, there is lack of specialisation,
improvisation and dynamism.
4. RECOMMENDATIONS:
The following are recommended in view of the importance and the strategic position
occupied by these agencies :
⇒ The advertising agencies should function in a healthily competitive
environment rather than in an aggressive world of cut-throat competition.
⇒ The agencies should definitely give importance to profit maximisation but at
the same time function in public interest as far as charges and quality of
products is concerned.
⇒ The agencies should also conduct a SWOT analysis of the products to be
advertised at the time of accepting assignments alongwith the routine
SWOT analysis of the clients.
⇒ There should also be a provision for staff training whereby the staff is properly
motivated and educated for the roles they perform in the organisation
leading them to specialisation and perfection.
⇒ The advertising agencies should also have a perspective of tapping new
avenues, creating mew markets and pursue global expansion for the
benefit of themselves and for the country at large.

6

Table of Content
Sr.No Topic Page No
CH 1 Research Methodology 11
CH 2 Introduction 14
CH 3 Profile
3.1 Introduction to Advertising Agencies 18
3.2 Functions of Advertising Agencies 18
3.3 Model Organization Structure 22

CH 4 ADVERTISING AGENCIES
1 XEBEC
1.1 The Whereabouts 23
1.2 Modus Operandi 23
1.3 The Canvas on which Xebec paints its product 24
1.4 How can I know about Xebec? 24
1.5 SWOT Analysis 25
1.6 Case Studies 27
1.7 Awards and Achievements 30
1.8 Who’s who in Xebec 31
1.9 Divisions of Xebec 31
1.10 List of Clients 33
2 CARAT
2.4 List of clients 37
3 CANCO
3.4 Canvas on which Canco paints its product 41
3.5 How can I know about Canco 41
3.6 Organization Structure 41
3.7 Facilities offered by Canco 42
3.8 Awards 42
4 MCCANN - ERICKSON
4.1 History 43
4.2 Who’s Who 43
5 MUDRA
5.1 History 60
5.2 Pioneers in Advertising Agencies 61
5.3 Divisions 62
5.4 Founder 62
7

5.5 List of Awards 63
5.6 Major Clients 64
5.7 Organization Structure 66
CH 5 SWOT Analysis of Advertising Agencies-Comparative 67
Study
CH 6 Statistics
6.1 Comparison between Gross Income of Top 25 Agencies 69
6.2 Growth of Advertising Agencies 70
6.3 Top 20 Advertising Agencies 72
6.4 Top 20 Advertising Spenders 73
6.5 Agencies Ranking 74
6.6 2001- Top Ten Multinational Advertisers 75
6.7 2001- Top Ten Advertising Agencies 75
6.8 Comparison of Agencies on the basis of Worldwide Gross 76
Income
6.9 Graph of Growth of Agencies 77
CH 7 Suggestions and Recommendations 78
CH 8 Conclusion 80
CH9 Annexure 82
CH10 Bibliography and Webliography 84

8

RESEARCH METHODOLOGY

Topic : STUDY OF ADVERTISING AGENCIES

1. OBJECTIVE :

The project deals with the study of advertising agencies encompassing a multi-
dimensional discussion on the whereabouts of these agencies, their modus operandi,
their manner and coverage of operations, their strengths, weaknesses, opportunities
available to them and the threats posing obstacles in their journey to the max. This
study shows the diversity underlining their operations and at the same time the unity
in aims, objectives and target. As during the preparation of this project, some
inevitable obstacles and natural hindrances restricted the scope of this study just as
these agencies are restricted by many environmental and socio-economic factors,
nonetheless, its a sincerest attempt to do the best possible justice to the said topic.

2. AGENCIES COVERED :
(1) Xebec
(2) Canco
(3) McCann-Erickson
(4) Carat
(5) Percept
(6) Mudra

3. FROM PLACES TO PAPER :
9

The data required for this study as per my vision was collected from the following
two types of sources :
(1) Primary Sources
(2) Secondary Sources
Primary Source of data collection was tapped in the following manner :

(1) Personal visits :

This was given the topmost priority. Well, any information from the horse's
mouth gives a touch of reality, practicability and conviction to every study and
this aspect made it an area of key importance. I visited three agencies viz.,
Xebec, Carat and Canco, though I approached many others including the
topnotch like Ogilvy & Mather, Mudra, Lowe. However to my utter
disappoin”ent and ill-fate, I never succeeded in getting appoin”ents from the
ones. In the agencies I visited, I contacted those taskmasters who were holding
positions of no less importance and who had a thorough knowledge of the
environment of their respective agencies, the operation, the style of working and
the clientele. At the same time, I found these people quite enterprising,
professional-to-the-core in their approaches, knowledgeable, speech-conscious
and very co-operative. I basically got answers to all the questions that were put
in the questionnaire in an unhesitating and amicable way.

(2) Sending questionnaires :
To those organisations that showed their firm unwillingness in attending to me
personally, I sent my questionnaires through internet to the key personnel in an
attempt to convince them into giving some information about the agencies for
whom they toil. Some replied back courteously; either disclosing their
helplessness in giving information or informing me to surf their websites and get
all possible information to my u”ost satisfaction (an advertisement for
advertisers).
Secondary sources of data collection :

10

On account of the cold shoulder given to me by the media-giants and their
contemporaries, I had to resort, as also advised by some of them, to secondary
sources of information like newspapers, websites and books for supplementing
the information obtained from primary sources and sometimes for the main
information. Honestly, the information obtained from the websites was detailed
and sufficient to an extent that would even surpass those of primary sources. In
the ocean of the information that the websites contained for each agency, I had to
fathom for the most precious gems which required crisp editing, preciseness and
good scissor-work. Also newspapers like The Economic Times and its
supplementary called Brand Equity did leave their imprints on the papers of the
project to follow and their contribution to this presentation cannot undermined
and unnoticed. Help was also taken from books based on advertising and
marketing to give a better appeal to this study and enrich it with more detailing
and liveliness.

4. RESULT
The cummulative result of primary sources of data collection and secondary
sources is obvious from the pages that follow. However, I have been able to
generate sufficient information and moreover, in detail from all the sources
employed in an endeavour to leave no stone unturned in justifying the selection of
this topic and advertising agencies, at large. Though marred by some obstacles, I
am convinced that my painstaking efforts and drops of sweat that have made the
papers intangibly wet and the ink of the pen go dry will convince my patrons
carrying good doses of expectation from this project.

5. DIFFICULTIES FACED :
1. Stipulations and urge for strict adherence to the length of this project upto a
maximum of 80 pages forced me to run the merciless scissor on many points. The
pen was on but the papers were gone.
2. Lack of co-operation from the stalwarts and the internationally acclaimed ad-
giants has been the biggest obstacle in the way. Though, they are very much
11

justified and I give due consideration to their urge for maintaining confidentiality
about their operations and financials, I still believe that had this information,
however explanatory it is, been obtained from them directly, it would have
definitely made neighbours' envy and owner pride.
3. Unavailability of concrete sources of secondary data was another hindrance.
Though websites form an exception, barring them there was hardly a source that
carried some potential in meeting the requirements. Prestigious publications like
A & M have faced shut doors of printing presses and a replacement is still hiding
in some unknown corner of invisibility.
In a nutshell, all these ingredients which have gone into the making of this recipe
wait a verdict from the readers for their taste.
INTRODUCTION

The word that bridges the gap between “no more” to “know more”- Advertising……….
and further between “know more” and “grow more”. Knowledge is power, they say and
today the biggest weapon of power in anyone’s hands is that of advertising. Just as water
is to a fish, advertising is to business; something without which the basic question of
survival is bound to rise.

In this jungle of name and fame, where every creature confidently defies William
Shakespeare when he says,” What’s there in a name” there is definitely everything
attached to name and it’s this name which gives you fame……And what gives an identity
it’s name? Well, the only golden word “Advertising” Definitely roses will not smell less
sweet by any other name but businesses will undoubtedly go back to the coffers if the
world forgets their names and to keep them alive in the minds of billions, you go for
publicity.

Today everyone advertises – from crèches to crematorium ,from hotels to hospitals, from
clubs to pubs,from marriage bureaus to lawyers…… well name it and you have it.
Everyone needs recognition, from a 6 month baby in the cradle to a 60 year old preparing
for a graveyard, from a beggar to a billionaire…… everyone wants you to recognize in a
train or in a plane , irrespective of what you are. In the yesteryears , everything was
12

considered fair in love & war and advertising . It does not mind if you have to pull
someone down, important is that you should rise.

And who helps you to project yourself in the public, who brings you from the greenlight
to the limelight, who brings you from the darkness of ignorance to the light of
recognition? Obviously, the advertising gurus seated comfortably in their mind-blowing
offices

These Advertising Agencies may be raking in big “moollahs” but no one can question
their contribution in enabling the business to burn their “choolahs” .Today there are the
movie moghuls and cricketing badshahs dancing on their fingertips, models and
celebrities weaving their irresistible web of magic around people like us. Well, necessity
is the mother of invention and our necessities have opened the doors of prosperity for
these agencies.

Be it a product or be it a service, they have the magic formulae for everything and mind
you, these formulae really work on our minds as is clear from our very own experiences.
And sometimes their roles really makes a layman wonder as to what would have happen
to those hundreds of unsung brands appearing as faces in the crowd on some rack or
shelves of a huge supermarket or a not-so-popular stores if these agencies would have
never risen from the sands of time.

Today, the exposure of every individual to advertisements and advertising has increased
manifolds than what it was in the past. Kudos to these agencies ; at least they have turned
out to be major trend-setters and torch-bearers for people like us showing us the way to
the magnanimous world of sophisticated products & services. However unethical and
materialistic these agencies may be, at times in a bid to grab the lion’s share of the
buyers’ market, it is doubtlessly certain that without these agencies we would have never
come out from the age of transistors to reach the modern age of home theatres. Well,
every cloud has a silver lining to it.

13

Who can forget the extent and the manner in which Reliance Infocomm marketed its
Wireless in Local Loop (WLL) Technology on the onset of the launch of its mobile
service. Irrespective of the post-use catastrophes, the impact of solid marketing &
publicity on the minds of an ordinary laymen for whom having a mobile in hand was
nothing less than wearing a gold ring in the ring finger is reflected in the way such a
person is today using a cell phone. The hype was created by the agencies like Xebec
Communications who advertised the product of one of the Fortune 500 Companies of
India and the hysteria still continues.

Today, may products like chocolates and butter come to be identified by their brand
names like “CADBURYS” & “AMUL”. On the other hand, many others are identified by
their slogans, catchlines & punchlines devised by the advertising wizards like
“BLACKMAGIC MOTION PICTURES” for their clients’ products like “Hamara
Bajaj (Bajaj Auto)”, “Utterly Butterly delicious Amul (Amul)”, “A gift for someone you
love(Cadburys’)”, “Yeh Dil Maange More (Pepsico)” , “Taste the Thunder (Thums-Up)”
etc.
Before we go ahead with the discussions about the advertising agencies & the brains
behind them, it’s pertinent to bring to limelight the benefits which we, as a society, are
deriving from these agencies and the not-so acceptable traits.
PRESENTING...
The pros…
(1) Creating awareness :
Due to the increasing role of the advertising agencies and so-called dominion over
our minds, today the level of consumer awareness could be well adjudged from
the fact that even a toddler identifies in the spur of the moment an ad of
Cadburys’ chocolates or Amul Butter been run on the screen of the idiot-box
ornamenting our spacious drawing rooms.
(2) Enabling wider choice and access to products :
So many products and so many ads for each of them…leaves the poor customer
gasping for some free space. Well, with the bombardment of so many
commercials, universal hoardings, from advertisements stuck on the walls of the

14

building compounds to those stuck on the walls of the railway compar”ents, the
customer has multitude options and ample of choices to really get “ better than the
best”. Well, people are after all paying handsomely for their requirements and
they deserve choices and options. But, it all owes to these agencies who have
spread out before us 10 different types of toothpastes for making out teeth the
whitest and the hardest, 100s of moisturizers for giving the best glow to our skin
an all sorts of luxuries which have become more necessary than the necessities.
(3) Uplif”ent of standard of living :
Well, its said that “Money makes a mare go”. Today, this not be any more
emphasized as everyone knows that depending on the financial background,
people can get the best of everything. From a cycle to a car, or from a dhaba to a
restaurant, the customer knows where he is the most comfortable and is able-
bodied to plan out his budget as he knows the price tags stuck on every product
and service. And all this, is possible because of the constant exposure to media
and publicity.
(4) Necessary for the growth of the businesses :
From the Ambanis to the paanwalla, from the Bachchans to the street-actors,
every soul is convinced of the power of these agencies in giving them a larger
than life size image. Every business house, big or small, though cutting the cloth
according to the size of its coat, needs the services of these agencies to project its
brand image before the laymen and convert these laymen into prospective and
from prospective to loyal customers for their products and services. Revenue
generation is the prime objective behind every business and to rotate the wheel of
success, its important for them to use the services of these think-tanks and always
remain on the topmost rank.
The cons.....
(1) A cold shoulder to social responsibilities :
The advertising agencies today are not performing to the non-material welfare of
the society. Their commit”ents and obligations to the society are mani-fold. Being
the torch-bearers of the world of publicity and media, they are on a huge platform
from where they can spread messages of public interest in every nook and corner

15

of the country. Alongwith their professional assignments for profit maximisation,
they can also design propagandas for conveying important social messages like
harmfulness of smoking and drinking liquor, abolishing evil practices and dogmas
deeply rooted in the blood of the rural illiterate, importance of a nuclear and small
family etc. Accepting these assignments for a social cause will not create a dent in
their pockets but will surely go a long way in revolutionising thoughts, attitudes
and mindset of every Indian.
(2) No SWOT of products advertised conducted :
All the advertising agencies are conducting a SWOT analysis of the prospective
clients that approach them with a product or service meant to be advertised but no
one is bothered about a scrutiny of the products to be so advertised. It is not their
business, perhaps it is anti-business; that's the feel and the flavour.

PROFILE
ADVERTISING AGENCY
ADVERTISING
The American Marketing Association, defined advertising as “any paid form of non-
personal presentations of idea, goods or service by an identified sponsor.”In other words
we can say that Advertising is brand building through effective communication
INTRODUCTION TO ADVERTISING AGENCY

The global market has expanded manifold in the last few decades. More and more
products are being launched practically everyday. The companies are engaged in
cutthroat competition to highlight their products to the forefront. Herein enters the
glamorous field of advertising. Advertising is actually brand building through effective
communication and is essentially a service industry. This requires the help of the media
to reach more and more people to communicate brand effectiveness and here advertising
agencies comes picture.

The role of advertising agency has been accepted because it provides specialist services
to the companies, which have inadequate services of experts for the promotion of their
16

goods and services. Many institutions have established the services of advertising
agencies to make their products and services known to the potential consumers.

FUNCTIONS OF ADVERTISING AGENCY:
The advertising agency performs all the managerial functions. Some of these are
planning, creation and execution, co-ordination, accounting, media, research and internal
control.
 Planning: The advertising agency plans the advertising campaign. The
management delegates the responsibility of advertising planning and execution to
the agency. The agency must have a fair knowledge of the firm’s products, its
history, the present market conditions, distribution methods, price level and other
conditions. A successful advertising programme is built on the basis of these data.
 Creation and Execution: Specific advertisements are created. The advertising
copy is written; the layout is prepared; illustrations are drawn; photographs are
finalized; and a correct mechanical form for running it in the selected media is
produced. The advertising agency prepares a suitable advertising copy for
insertion in all the media.
 Co-Ordination: The advertising agency co-ordinates several activities. It often
works with the client’s sales force and distribution network to ensure the long-run
success of the advertising programme. The combined efforts of sales persons,
distributors and retailers ensure maximum sales. Ideas, media, copy and decisions
are co-ordinated properly to project and implement the advertising programme.
 Accounting: The advertising agency maintains proper accounts in co-operation
with the client. The account executives see to it that the agency keeps to the stated
plan. The accountant is in charge of the administration of the advertising
programme on the agency side. A misunderstanding arising between the agency
and the client is eliminated by the accountant. The amount of fees received from
the client and the payment of taxes, bills and other charges are accounted for by
the accountant.
 Media: The advertising agency selects the media or a set of suitable media for the
client to reach the right type of audience which is an important factor in media

17

selection. The rates, circulation, population, audience, income and other important
information are collected for the purpose. It has to see to that the media plan is
carried out properly which is devised to implement the campaign’s
communication objectives. The media experts know all about the media and their
coverage. They prepare the schedule of advertising, publication, data on printing
and the time available from television and radio.
 Research: Research is a key function in an advertising campaign. The decisions
on creativity and media selection are taken on the findings uncovered for
research. Research makes every decision systematic and logical, based as it is on
facts and figures.
 Internal Control: The advertising agency manages its employees, finances and
other resources effectively and economically. It conducts the business behind the
scenes and exercises proper control over activities and funds. Public relations,
sales promotion functions and client contacts are maintained by the management
for the effective operations of the advertising agency.

18

CLIENT BRIEF
EXTERNAL

ENTERS THE AD AGENCY

INTERNAL

CREATIVE BRIEF MEDIA BRIEF

CREATION
STAGE CREATIVE PROCESS

COPYWRITING ILLUSTRATING

LAYOUTS

CLIENT APPROVAL

PRODUCTION BROADCAST
STAGE PRINT

TYPOGRAPHY ENGRAVING FILMING EDITING

PRINT AD COMMERCIAL

PRINT MEDIA BROADCAST MEDIA

AD REACHES THE TARGET AUDIENCE

19

TYPICAL ADVERTISING AGENCY STRUCTURE

Chairman & Managing
Director
(Chief Executive Officer)

Finance

Management Administration
Accounts

Client service Media Director Creative Director
Director
Studio Films
Print &
Media
Associate Creative Production
Controllers
Directors
Group Account
Manager

Media Supervisors
Creative Group Heads
Account Supervisor
Media Media
Planners Buyers
Copywriters Art Directors
Account Executives

Media Media

20

ADVERTISING AGENCY # 1

X E B E C
THE WHEREABOUTS
HEAD OFFICE :
20, Santosh Heights,
1st Floor, 39/4, J.N. Marg,
Opp. Apsara Theatre,
Pune – 411 037.
BRANCH OFFICE :
Jain Chambers, 1st Floor,
Next to Saga Shopping Centre,
S.V. Road, Bandra (West),
Mumbai – 400 050.

Incorporated in the year 1991, this rapidly-growing “FULL SERVICE” Agency located
at the above-mentioned places has today achieved for itself a decent position in the
jampacked arena of the biggies and is continuing its progressive march.
It is solely indigenous with no foreign collaboration or foreign equity participation ;
something really very praiseworthy.

MODUS OPERANDI :
Being a truly professional & competitive in approach, Xebec Communications has a
well-defined and a well-organised method of operations. When the prospective client
approaches them for getting his purpose served, they conduct a SWOT analysis prior to
acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome
and patience-testing exercise for the client, it is designed in such a way that the agency
gets a total assurance of the output.
The agency first understands the requirements of its customer and gets a complete profile
about the product or the service to be advertised from the horse’s mouth. Further, it

21

makes a complete assessment of such a product or service, based on the representations
and the explanations given by its client in terms of the life of the product, its
marketability and its commercial value. Continuing on these lines, the agency also makes
an assessment of the requirements of the client, their budget, cost constraints etc. Finally,
last but not the least, the agency makes an estimate of the benefits, both monetary as well
as non-monetary which it is subsequently in the long run, going to derive out of every
such assignment.
On the basis of such a study made about the product, its target audience and the psycho-
analysis of the creator as well as its creation, the agency then selects the type of media
which is the most appropriate one in terms of the cost constraints laid down by the client
and accordingly intimate the client about the cost-benefit ratio of the entire exercise. So,
it’s a thorough professional approach wherein the client is rest assured about the benefits
he is going to reap from the seeds he is planning to sow in the field of advertisement.
Ultimately, its not a no-win no-lose situation for both of them but is entirely a winners’
outcome.

THE CANVAS ON WHICH XEBEC PAINTS THE PRODUCT :
Xebec provides its customers with a wide-range of media to select from viz., in fine
print, or on celluloid like television, radio, theatres etc.

HOW CAN I KNOW ABOUT XEBEC :
Well, being professional and competitive in approach, it is Xebec who approaches its
prospective clients and not wait for the the clients to fathom for it. So, the client does not
have to run in sun and shower for finding a proper canvas for its product. Xebec provides
all the facilites for its client coupled with a very co-operative in-house, interactive
response and hospitality. As far as a payment term is concerned, Xebec also takes care of
the pocket-size of its customers. So on one hand, it gives you the option to pay the entire
fees in lumpsum, on the other hand it also extends credit to its continuous and
creditworthy customers.

22

STRENGTHS :
The agency first understands the requirements of its customer and gets a complete
profile about the product or the service to be advertised from the horse’s mouth.
Further, it makes a complete assessment of such a product or service, based on the
representations and the explanations given by its client in terms of the life of the
product, its marketability and its commercial value. Continuing on these lines, the
agency also makes an assessment of the requirements of the client, their budget, cost
constraints etc. Finally, last but not the least, the agency makes an estimate of the
benefits, both monetary as well as non-monetary which it is subsequently in the long
run, going to derive out of every such assignment.

On the basis of such a study made about the product, its target audience and the
psycho-analysis of the creator as well as its creation, the agency then selects the type
of media which is the most appropriate one in terms of the cost constraints laid down
by the client and accordingly intimate the client about the cost-benefit ratio of the
entire exercise. So, it’s a thorough professional approach wherein the client is rest
assured about the benefits he is going to reap from the seeds he is planning to sow in
the field of advertisement. Ultimately, its not a no-win no-lose situation for both of
them but is entirely a winners’ outcome.

WEAKNESSES :
Xebec is facing a major problem of Time Management i.e. it is over-dependent on its
staff. Hence, the quality and the efficiency of its human resources always causes
some sort of a problem in making and implementing fast decisions. Again,
multiplicity of brains, though an asset for any organization is also sometimes a
hindrance in its development when the agency is not able to reach to a definite
conclusion about its strategies and policies in the nick of the time due to conflicting
ideas presented by its too many decision-makers. As it is aptly quoted, “Too many
cooks spoil the broth”

23

Secondly, as far as client servicing is concerned, Xebec does not make adequate
attempts to update its services. This is the main reason why this organization though
reputed, is not able to expand its paraphernalia. Lack of creativity is also a major
backdrop in its success story.

Next, Xebec has also failed to make any renowned celebrity from the fields of
cinema, sports, politics or business as its brand ambassador as other reputed agencies
in this world are in a practice of doing. Hence, the agency fails to create a long-lasting
and huge appeal for the products of its clients amongst the masses.

As far as the profiles of the team members of Xebec are concerned, the people in the
topmost levels of organizational hierarchy who are mainly shouldering the
responsibility of devising strategies, policies, media plans, client servicing, account
planning, market recognition and strategic decision-making are not from the fields of
management or advertising. Though, they may be well-groomed for excellence in the
environment in which they are functioning, there is always an undisputed difference
between those able-bodied people who are from the field of management and those
who are not. And finally, in this field of cut-throat competition where agencies rise
and fall like a pack of cards day in and out, you definitely need professionals and
professionalism in your approach at the time of decision-making and implementation
of ideas.

OPPORTUNITIES :
There is a tremendous scope for diversifying its paraphernalia as currently Xebec is
just specializing in one particular media.

Secondly, by recruiting and taking more benefits from services of professionals in
this field, Xebec can overcome its problems of Time Management and slow decision-
making. Instead of having too many heads with different contents in them, it can
always go for quality staff.

24

Xebec can also concentrate on making some of the eminent personalities as its Brand
Ambassador, which it has already started as is evident from its forthcoming contract
with a cricket star named Salil Ankola. If it continues to do so on these lines it can
lead to more aggressive response for its clients’ products and services.

THREATS :
Xebec also does not make a SWOT analysis of its clients at the time of taking an
assignment. This also exposes it to a major threat of losing its own ground in its field
as not many of its clients are too reputed, well-organised and aware of their
requirements.

Another major threat to the growth and development of Xebec is its over-dependence
on Print Media. That is to say, Xebec has not taken too many efforts of diversification
and growth into other media. It is quite understandable that in today’s world to
remain sellable in the market you have to keep on diversifying yourself into other
fields which this agency is not very much keen in today, there is a definite threat on
its future existence. Survival is first, growth afterwards and just trying to be a master
in one amidst a crowd of experts who are Jack of all trades is not at all a good sign for
any organization.

CASE STUDIES
1. KIMBERLY CLARK
1.1 Brief
Associate Kimberly Clark with personal hygiene by a campaign encouraging people
to adopt health habits and educate offices and hotels about the importance of giving
their employees and guests access to hygiene products.
1.2 Execution
A Poster Campaign placed in and around washrooms (where Kimberly Clark's
products are most used)reminding people about the importance of personal
hygiene with a byline by Kimberly Clark.

25

1.3 Result
A direct association between Kimberly Clark and personal hygiene and increased
usage of Kimberly Clark products and supplies.

2. KINETIC
2.1 Brief
Relaunch Kinetic Honda Marvel and build on Kinetic's reputation as an all family
2 wheeler maker. Create a new buzz around the Marvel as an exciting bike.
2.2 Execution
A series of concurrent road-shows and test rides all over India handled by our
events division with live performances by India's most exciting and talented
performer - REMO - to stir up the excitement.
2.3 Result
Excitement about Marvel and renewed interest in the scooter and Kinetic.

3. THYSSENKRUPP
3.1 Brief
To occupy mindspace as a core infrastructure sector/industry player.
3.2 Execution
A creative campaign in Indian and foreign magazines and journals closely
targeted at industrial decision makers.
3.3 Result
Increased awareness of ThyssenKrupp activities and brand recall as a hi-tech
German company. ThyssenKrupp continues to be a valued client.

4. INDIACOM
4.1 Brief
Build the INDIACOM brand as a most easily accessible and widely disseminated
yellow pages directory.

26

4.2 Execution
Strategic press spots and hoardings timed with the beginning and end of the
bookings period designed to drive demand for ads and insertions and increase
awareness of the INDIACOM edge.
4.3 Result
More recall for the INDIACOM brand as the most easily accessible and widely
disseminated yellow pages directory resulting in more placements in their
directory.

5. LIPI DATA SYSTEMS
5.1 Brief
Position LIPI as a total data solutions company with a wide range of high quality
print solutions for small businesses and corporates
5.2 Execution
A creative campaign focusing on the flexibility of LIPI printing solutions.
5.3 Result
Increased awareness about the LIPI brand name as a provider of superior printing
solutions.

6. INTELLIGENT INVESTOR

6.1 Brief
Raise Intelligent Investor's profile through high powered personal finance
exhibitions in the metros.
6.2 Execution
A series of full page ads in outlook and Intelligent Investor designed to engage the
readers attention by trumpeting the sheer volume of financial services and free
advice on offer.
6.3 Result
A tremendous response to the personal finance exhibitions leading to increased
awareness about Intelligent Investor and an increase in its brand equity.

27

7. CENTURION BANK
7.1 Brief
Establish Centurion Bank as a one stop shop for all banking needs with superior
banking services for small customers.
7.2 Execution
The target audience was identified as the small customer who was perhaps not
getting the best service in big banks. The creatives were designed to inform him
about Centurion Bank's thrust towards them.
7.3 Result
More new accounts for Centurion Bank with its brand firmly established among
the smaller customers.

8. DISHNET DSL
8.1 Brief
Leverage Dishnet strengths as the only DSL high speed ISP provider in the
country. Target soho and heavy net users promoting the benefits of high speed
access.
8.2 Execution
A creative campaign bringing out the cost and speed advantages of broadband.
8.3 Result
Increased interest and awareness about broadband Internet access, establishing
Dishnet DSL as the pioneer in broadband technology and generating inquiries and
sales.

AWARDS & ACHIEVEMENTS :
Best Radio Jingle
[A refreshing jingle for Electronica Leasing & Finance Ltd’s Fixed Deposit Schemes]
CEAD - Best Radio Jingle
[An innovative jingle for Kinetic Spark which was set in a folk tune]
Trade Fair/Exhibition Design

28

[First prize for Kinetic Honda stall at Auto Expo ‘98]
[First prize for “Impressive Stall & Innovative Displays” at TECHEX-6 at World
Trade Centre, Mumbai, November ‘98]

WHO’S WHO IN XEBEC ?
People make all the difference, nurturing talent and allowing space for
independent thought and initiative are our hallmarks which explains the low
attrition rates.
Key people behind the success of Xebec are -
Kiran Bhat - Chief Executive Anil Bhat - Executive Director

Vincent Sebastian - Branch Manager Radhika Akolkar - Account Director

Samir Wagh - Manager (Media & Events) Sandeep Ghodke - Art Director

Anil Rane - Asst. Art Director Abhay Bengeri - Branch Director

Praveen Meloth - Sr. Account Executive Bhavana - Sr. Account Executive

DIVISIONS OF XEBEC
M.A.R.S.
Our in house Research division - an independent profit centre - allows clients to identify
customer preferences, trends, deliver a more focused message and track customer
response.
M.A.R.S. delivers professional research services within the Xebec umbrella.
M.A.R.S. Services:
Qualitative and Quantitative Research... Dipstick Studies... Focus Groups... Pre
and Post Launch Surveys / Studies... Feasibility Reports... Customer Satisfaction
Surveys... Dealer Audits...

STELLAR - P.R.

29

In today's fast paced media driven world with shrinking attention spans, PR is an
important vehicle to increase mindspace and mindshare.
Stellar is a Xebec group company run by experienced PR professionals with strong
contacts in press and TV for national coverage.

CUSTOMER CONNECT
C2 is Xebec CRM arm with specialized Direct Marketing and Customer Response skills.
LIST OF CLIENTS


C A R A T

THE WHEREABOUTS
HEAD OFFICE :

CARAT MEDIA SERVICES INDIA PRIVATE LIMITED
Barodawala Mansion,
81, Dr. Annie Besant Road,
Worli, Mumbai 400 018
India.
Email : pat@carat-india.com
Website : www.carat-india.com

CEO: Sulina Menon
Email : sulina@carat-india.com
Carat India - New Delhi
Address : E82A, Greater Kailash Part-1,
New Delhi, Pin-110048, India
Tel No : (91) 11 629 4112
Fax No : (91) 11 629 3680
Email : carat@ndb.vsnl.net.in
30

Website: www.carat-india.com
Website: www.carat-asiapacific.com
Carat is operated by AEGIS MEDIA which operates alongwith Carat 2 other reputed
worldwide organizations viz., Vizeum & Postersope Worldwide.

MODUS OPERANDI :
Being a truly professional & competitive in approach, “CARAT ” has a well-defined and
a well-organised method of operations. When the prospective client approaches them for
getting his purpose served, they conduct a SWOT analysis prior to acceptance of any
assignment. Although, this SWOT Analysis is not at all a cumbersome and patience-
testing exercise for the client, it is designed in such a way that the agency gets a total
assurance of the output.

SWOT ANALYSIS OF CARAT :
 STRENGTHS
1. Carat has a very educated and well-groomed set of clientele. They know that the
ability to understand and exploit the opportunities of the evolving media market is
key to their future success. Media communication, and assessing its short,
medium and long-term effect, is becoming central to every business.
2. Carat’s aim is to deliver business advantage for its clients through effective
communication programmes that maximize return on inves”ent. This means
partnering with its clients to produce sustainable improved sales by building
brand loyalty, value and awareness. They combine insights into brand, media and
consumer behavior to spark innovative media solutions that are unique to every
brand. The Carat approach to communication planning gets results.
3. The marketing strategy of Carat is defined as a “360° communication”. This
means exploiting the whole range of media channels available to a brand which is
fundamental to building effective communication strategies. As messages reach
consumers in new and different ways, they can refresh and renew a relationship,
create excitement and loyalty, even advocacy for a product. The task is to build a
programme which engages consumers with the brand and reveals the inherent
31

values in a product or service that cause consumers to say "That's for me". In a
nutshell, this type of a strategy helps in building a brand loyalty and the customer
starts relating himself with it.
4. Carat’s clients are very much impressed with its ability to work as an international
team. The breadth of their service and their strong coherent network give Carat
the scope to truly partner international advertisers who are winning the race for
global media effectiveness.
5. Every brand, market and competitive situation requires a unique solution. Carat
has a rigorous and proven framework to develop innovative and creative media
solutions throughout its network. Its approach extends across all media - 360°
communication. It works with a suite of sophisticated analysis tools and research,
helping it to understand consumers and to design media campaigns that deliver
measurable improvements in its clients' business.
5. Incisive management of media delivers business advantage to Carat’s clients.
Carat has invested over US$30 million on research and tools to manage and
measure media effectiveness, across traditional and online media channels.
6. Consumers' relationships with brands and product sectors need to be linked to
their relationships with media and attitudes to advertising. Analysis using tools
such as Charisma and Ad-itudes helps Carat’s clients reach their core targets more
effectively and develop strategies to attract new customers.

 WEAKNESSES
1. The major weakness of Carat is diversification. Carat has grown, flourished and
made a tremendous progress in the field of electronic media only. However, for a
long-term and sustained growth and development it is the need of an hour for
every agency to stretch its arms and reach out for the world through all possible
avenues.
2. Carat does not have a broad clientele base which means that it does not enjoy a
very diversified brand loyalty.

32

 OPPORTUNITIES
1. Carat has tremendous growth and diversification opportunities in the field of
advertising specially because of its skilled labour force and dynamic vision.
2. Carat has international tie-ups which means that there is ample of scope for it to
diversify its operations and tap the market worldwide.

 THREATS
1. Carat is specializing only in electronic media. This overdependence on one media
only is definitely fatal for future growth and sustained development. Today, there
are many new entrants in the market and these agencies are making progress by
heaps and bounds in all types of media. Carat needs to tap other media also to
emerge as a genuine world leader.
2. Being a multinational agency, it is extremely difficult for small customers to
approach this agency for their requirement. Carat should also concentrate more on
Indian market which has a very large base of clientele. Firms worldwide have also
established themselves firmly in the Indian Market which if Carat cannot do or
does not do will hamper its growth and development process.

CLIENTS

Adidas Diageo EMI Group Ferrero International

Fiat Henkel Kellogg Kraft Jacobs

Suchard LVMH Mannesmann- Vodafone

Merloni Beiersdorf Bertelsmann BMW

Cable & Wireless Carrefour Coca-Cola Club Med

Danone Group Nissan Pernod Ricard Pfizer

33

Philips Renault Sara Lee SCA

SmithKline Beecham Telefonica Walt Disney


C A N C O
THE WHEREABOUTS

HEAD OFFICE :

518, Tulsiani Chambers,
Nariman Point,
Mumbai – 400 021.

Incorporated in the year 1985-86, this rapidly-growing “FULL SERVICE” Agency
located at the above-mentioned place alongwith branches at Bangalore, Chennai & Delhi,
has today achieved for itself a decent position in the jampacked arena of the biggies and
is continuing its progressive march.
It is solely indigenous with no foreign collaboration or foreign equity participation ;
something really very praiseworthy.

MODUS OPERANDI :
Being a truly professional & competitive in approach, “Canco Advertising Pvt. Ltd.” has
a well-defined and a well-organised method of operations. When the prospective client
approaches them for getting his purpose served, they conduct a SWOT analysis prior to
acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome
and patience-testing exercise for the client, it is designed in such a way that the agency
gets a total assurance of the output.

SWOT ANALYSIS OF CANCO :
34

 STRENGTHS
1. Canco is a full-service agency providing all types of services related to the field of
advertising & marketing to its clients.
2. It conducts a SWOT Analysis of its clientele to assess their strengths and
weaknesses. It also first understands the requirements of the client, their
knowledge about the field of advertising, the characteristics of the products and
services to be advertised by its client, the type of target market and the cost
constraints under which its client is functioning. This overall study about the
client and its products helps Canco to devise and develop a proper marketing and
advertising plan for its client which can optimize client’s returns in the restrictive
environment in which it functions.
3. As far as offering facilities to clients are concerned, amongst others, Canco also
provides its client the facility to make payments of its fees in installments which
goes a long way in helping the client overcome its financial hurdles, if at all posed
on him. This is a major breakthrough in client servicing and definitely is a major
weapon in anyone’s hands to have a stable and a loyal base of clientele.
4. The top level of organizational structure in Canco consists of people who are
professionals having the academic qualifications which are must in this field.
Understandably, on this account there is bound to be professionalism in the
approach, attitude and decisions made by the agency for its growth and
development.
5. Canco offers its customers a wide selection amongst the media for canvassing
their product or services. It advertises in newspapers, uses electronic media and
also provides the facility of online advertising. As the choices are more for the
customers, depending on their requirements, the characteristics of their products
and their cost constraints, it helps them in selecting the proper medium for
advertising their product or service.

 WEAKNESSES
1. The biggest weakness of Canco is its organizational structure. The organizational
structure is such that people who are at the top most level in the hierarchy and
35

who are professionals in this field are few whereas the line staff is quite much.
This may lead to centralization of decision-making and an obvious influence of
one or two people in policy decisions. Centralization of decision-making and
authority being given to only few can prove to be disastrous for the growth of the
organization.
2. It does not have a very broad base clientele. The list includes just a few major
names like HDFC. This means that the agency does not enjoy the patronage of
many of the big names and is dependent on the patronage of privileged few.
3. CANCO has not hired any of the eminent celebrities for endorsing the products
and services of its clients. This is why the appeal created for the products and
services of its clients does not reach to a large group of masses.
4. In this world of cut-throat competition where it is important for every agency to
have some sort of transparency which will make popular its strategies,
achievements, client patronage, diversification in services offered, CANCO has
not made any effort to bring itself in the limelight. With no URL and no other
self-advertisement, it still lingers in some dark corner of isolation.

 OPPORTUNITIES
1. With professionals at the decision-making level, CANCO has an opportunity to
expand its operations and diversify itself into new avenues if it makes a
concentrated effort on improvising the strength of professional staff.
2. Making use of the brand image of some celebrities for endorsing the products of
its clients can give it an upper hand and help in having more reputed customers
into its kitty.
3. It can project its achievements before the public and through the medium of
website can lend more transparency to its operations. On these lines, this agency
is working presently and a website is in the development stage.

 THREATS

36

1. CANCO, though making use of print and electronic media for advertising
products of its clients is a Jack of all trades, master on none. Specialisation is
required in at least one sphere for expansion and further diversification.
2. The strength of the staff and the quality of human resource is also a major
hindrance it is growth and development. When decision-making is centralized and
that too based on few brains, there is bound to be lack of impulsiveness,
aggression, timeliness and dynamism.
3. CANCO is suffering a big threat from other agencies operating in the same set of
environmental conditions who are constantly offering more and more services to
their customers and diversifying themselves day in, day out.

THE CANVAS ON WHICH CANCO PAINTS THE PRODUCT :
CANCO provides its customers with a wide-range of media to select from viz., in
fine print, or online through the medium of internet, external advertising like
hoardings, pamphlets etc.

HOW CAN I KNOW ABOUT CANCO?
Well, being professional and competitive in approach, it is CANCO who approaches
its prospective clients and not wait for the the clients to fathom for it. So, the client
does not have to run in sun and shower for finding a proper canvas for its product.
CANCO provides all the facilities for its client coupled with a very co-operative in-
house, interactive response and hospitality. As far as payment terms is concerned,
CANCO also takes care of the pocket-size of its customers. So on one hand, it gives
you the option to pay the entire fees in lumpsum, on the other hand it also extends
credit to its continuous and creditworthy customers.
ORGANISATION STRUCTURE OF CANCO
ORGANISATION STRUCTURE

Mr. Ramesh Narayan, (Managing Director)

37

Creative Director Copywriters
(1) Mr. Dhananjay Neelam
(2) Mr. Arun

Total Staff Strength : 24

FACILITIES OFFERED BY CANCO TO ITS CUSTOMERS :
CANCO fixes the budget for its client depending on the requirements of the client,
the characteristics of the product to be advertised, the target customers, the marketing
strategy, the aggressiveness or otherwise of the advertising campaign, the type of
customers to be targeted, the cost constraints of the environment in which the client is
functioning etc. Based on this study, the budget is given by the agency to its client.

AWARDS WON BY CANCO
a. Given by Alert India, Non-Government Organization (NGO) which
creates awareness for leprosy .
b. Given by Advertising Club, Mumbai

38


McC A N N - ERICKSON

HISTORY

McCann-Erickson WorldGroup was chartered in 1997 as a new model for integrated
marketing communications. The WorldGroup was created by uniting best-in-class
marketing communications firms in a range of disciplines behind a common mission and
vision.

In only a few years, McCann-Erickson WorldGroup has emerged as one of the world's
leading integrated brand communications organizations--in global size, in professional
quality, and in the number of clients we serve with multiple-communications services.
Each WorldGroup agency retains the best of its distinctive heritage. Most notably,
McCann-Erickson, is currently celebrating its 100th anniversary, representing a century
of innovation and excellence in advertising and communications The rich histories of the
member agencies of World Group provide the foundation for the WorldGroup's
unparalleled expertise and their unique shared culture. In its brief history, the
WorldGroup has cultivated a common culture across its global network, based on shared
strategic tools and a shared vision for effective marketing communications.

WHO’S WHO :

John J. Dooner CHAIRMAN, CHIEF EXECUTIVE OFFICER McCANN-
ERICKSON WORLDGROUP

39

Arther D’Angello CHIEF FINANCIAL OFFICER
McCANN-ERICKSON WORLDGROUP

Eric Einhorn EXE. VICE PRESIDENT, CHIEF STRATEGY OFFICER
MCCANN-ERICKSON WORLDGROUP

President, CEO
Max Gosling Representative Director
McCann-Erickson Japan

REGIONAL DIRECTOR
Peter Hamilton MCCANN-ERICKSON ASIA PACIFIC

CHAIRMAN AND CEO
Robin Kent
UNIVERSAL MCCANN

PRESIDENT AND CHIEF OPERATING OFFICER
Bill Kolb MOMENTUM WORLDWIDE

REGIONAL DIRECTOR, McCANN-ERICKSON EUROPE,
Ben Langdon
MIDDLE EAST & AFRICA

Pamela Maphis CHIEF EXECUTIVE OFFICER
Larrick MRM PARTNERS WORLDWIDE

VICE CHAIRMAN, CHIEF CREATIVE OFFICER
Marcio M.
WORLDWIDE DIRECTOR OF MULTINATIONAL ACCOUNTS
Moreira

REGIONAL DIRECTOR LATIN AMERICA/CARIBBEAN
Jens Olesen MCCANN-ERICKSON WORLDWIDE

EXECUTIVE VICE PRESIDENT
Dr. Joseph
DIRECTOR OF RESEARCH & INSIGHT DEVELOPMENT
Plummer

CHAIRMAN EMERITUS
Stan Rapp
MRM PARTNERS WORLDWIDE

Joe Torre CHAIRMAN AND CEO
TORRE LAZUR MCCANN HEALTHCARE WORLDWIDE
Chris Weil CHAIRMAN AND CHIEF EXECUTIVE OFFICER
40

MOMENTUM WORLDWIDE

MODUS OPERANDI OF McCANN-ERICKSON

TOOLS

McCann-Erickson WorldGroup's unique and proprietary shared tools help unite different
marketing communications disciplines. They unite professionals in different offices
around the world. They provide a common "language" for diverse teams working
together for common clients.
Our tools also set us apart. They are disciplined yet flexible. They combine our best
practices with our cutting-edge thinking.
We have specialized tools in various disciplines, but the centerpiece is the holistic Brand
Optimization Map™. Building off of the foundation of the Road Map to Effective
Communications™, The Brand Optimization Map incorporates the thinking behind the
best strategy and planning processes of various disciplines into a unique, universal
strategic service.
By offering a holistic, integrated approach to strategy development, creative execution,
and campaign evaluation, the Brand Optimization Map service can generate brand ideas
that have the potential to solve clients' fundamental business problems and position their
brands for long-term growth.

CREATING THE DEMAND-CHAIN
By systemically linking supply activities from sourcing and manufacturing to distribution
and customer orders, corporations have successfully solved what is called the supply
chain. By enabling "just in time" delivery of products or services to meet demand, this
process benefits marketers through increased efficiency, productivity and lower costs.
But in today's competitive marketing climate, with a renewed focus on building customer
and top-line growth, demand creation is, arguably, the new success factor. To meet this
important business need among all types of manufacturing and service corporations,
McCann-Erickson WorldGroup has developed a service that links demand creation

41

activities to make them more synergistic and powerful, thus helping corporations to
create enduring marketplace growth.
This proprietary service offered by McCann-Erickson WorldGroup is known as Creating
the Demand Chain. This service, also known as the McCann Demand Chain™, provides
marketers with all the critical steps in demand creation in a cohesive, effective, and
optimized manner.
The ultimate benefit of the McCann Demand Chain™ service in whole, or in part, is to
improve demand creation for companies and brands, increasing the sale of products and
services and optimizing top-line revenue.
Creating the Demand Chain™ encompasses a linked set of services involving six "links."
Importantly, marketers can leverage the McCann Demand Chain™ service as a whole, or
in part, since many of the service components can be adapted to the marketer's existing
company activities.
These six service elements encompass Demand Vision, Brand Idea, Resource
Optimization, Brand Contact, Relationship Management and Demand Performance
activities.
While this service and its component services are delivered through an array of marketing
communications operations across multiple channels, their unique linkage makes them
more than the sum of the parts. Each element leverages proprietary, market-tested
McCann-Erickson strategic, collaborative and measurement tools; and each is supported
and optimized by specialized expertise, resources, creativity, software and infrastructure.

Brand Optimization Map
The Brand Optimization Map (BOM) has been created by McCann-Erickson
WorldGroup to provide our corporate clients with a new, more inclusive approach to
strategy development, one that fully recognizes the evolving nature of brand
communications. This strategy development service recognizes that brand marketers
around the world are in a changing relationship to their customers. The Brand
Optimization Map™ thus takes a broader and deeper strategic perspective to account for
the new realities facing marketing-focused businesses today, including their required
coordinated usage of a full range of marketing communications disciplines.

42

In today's highly demanding business environment, the focus has shifted away from
improving profits through operating efficiencies to generating top-line revenue growth.
Demand creation is the new priority.
Demand creation in the new marketing communications environment has become
especially challenging. The technology revolution has surrounded customers and
consumers with a plethora of information and entertainment options, and, as a result they
have become more elusive. The consumer is firmly in control. They expect choice,
information, speed of service, and ease of acquisition. This new multi-channel
environment adds a whole new dimension to the challenge of marketing integration. And
with critical mass so hard to achieve, integration has become the new imperative.
Traditionally, the focus of integration has been the development of a common brand
platform or idea to unite the marketing message across multiple disciplines. This
integration of content is still a core priority.
But today, given the confusion of marketing channels, the increased sophistication and
scope of all our marketing communications disciplines and the emergence of new
internet-based business models, there is a demand for a new kind of integration - the
integration of resources.
The Brand Optimization Map™ is a unique service that brings together these two
fundamental needs in integration, content and resources, under a unified strategic
framework to optimize the marketing communications plan.
It leverages proprietary strategic principles, tools and software that identify marketing
priorities, optimize budget allocation and leverage the full spectrum of marketing
communications disciplines for what they do best, in the right "proportions." The Brand
Optimization Map™ also introduces a proprietary method of evaluating the ROI of the
fully integrated marketing program.
From a standpoint of "the user," The Brand Optimization Map™ is intuitive in concept,
but sophisticated in its ability to embrace the complexities of the new marketing
environment. It facilitates collaboration, idea generation, resource allocation and creative
execution. It is flexible in its ability to be used locally or regionally, for brands, sub-
brands or marketing initiatives, and for any specified marketing period.

43

McCann-Erickson World Group uses The Brand Optimization Map™ service to leverage
the specialized talent and creative energies of all our marketing communications
"corridor" centers of expertise while working collaboratively with our clients to create
powerful brand communications strategies.
The following are the key steps of The Brand Optimization Map™ service:

BRAND OPPORTUNITY
Brand Health Check
In order to create big ideas, we must step back and look at the big picture. To this end,
BOM's Brand Health Check™ service offers a due-diligence process for assessing the
overall health of a brand.
The Brand Health Check™ service factors in evolving consumer perceptions, industry
trends and competitive pressures. By forcing answers to critical questions, it provides the
clarity to recognize major brand opportunities and solve brand problems.
Using the framework of McCann's Universal Marketing Drivers - a set of marketing
objectives that are common to all marketing communications disciplines regardless of
media and message specifics - the service captures the essence of the competitive
marketing situation and diagnoses priorities for both content and resource integration.

McCann Pulse
McCann Pulse™ serves as a leading-edge method of generating consumer insight that
informs marketing innovation and execution. McCann Pulse™ insights feed the
development of brand imagery, new products and services and channel strategy.
The McCann Pulse™ service output is based on consumer dialogue held at McCann-
Erickson offices around the world and is reported on the company intranet. Regional
decisions can be made through the collection of key market data, and they in turn are
used to create a comprehensive global picture of evolving trends.
The focus of McCann Pulse™ is as much on the here and now, as where things are
heading. Through proprietary probes, it uncovers what is important in the lives of
consumers, how they view the world changing and what their evolving goals are. These
issues direct us to new product, service, and communications ideas.

44

This McCann Pulse™ service provides the consumer backdrop for the evaluation of the
Brand Opportunity as well as development of the McCann Brand Idea™, via the Brand
Footprint™ and McCann Selling Strategy™ service components.

McCANN BRAND IDEA
The Brand Optimization Map™ platform for content in marketing communications is
determined by the Brand Footprint™ - a statement of the desired meanings, values and
personality of the brand - and the McCann Selling Strategy™ which determines a
powerful strategic idea for creative execution across all marketing communications
disciplines.
The Brand Footprint™ uses McCann's Brand Archeology techniques to uncover the full
depth of meanings and values associated with the brand through the eyes of its customers
and consumers. The McCann Selling Strategy™ draws on this "brand insight" to
determine where the brand needs to be in the future, thus creating a relevant and credible
strategic platform to "propel" the brand towards its destination.

MARKETING MIX
McCann Fusion™ 2.0 is a proprietary marketing mix software model that provides the
optimal allocation for each marketing discipline to attack the stated marketing challenge.
It looks at the marketing picture "top down," through software that captures relationships
between our marketing communications disciplines and the Universal Marketing Drivers
in the context of each category and country. The input to McCann Fusion™ 2.0 is the
Brand Health Check. The output is a benchmark budget allocation across marketing
disciplines for Brand Optimization.
As a complement to this "top down" evaluation, McCann's Marketing Task Cycle works
"bottom up" to determine the ideal role for each marketing communications discipline.
The Marketing Task Cycle identifies the barriers that need to be overcome, and assigns
the marketing that can best overcome them. This ensures we address critical brand needs
and leverage our marketing communications disciplines for what they do best, and to the
extent that they can make a difference.

BRAND PERFORMANCE:
45

The McCann Brand Clout Index
The Brand Clout Index™ measures a brand's competitive ability to attract and retain
customers in the marketplace - both currently and in the future. It can be used to help
quantify the Brand Health Check and to track the performance of an integrated program.
Thus it serves as the performance benchmark of The Brand Optimization Map™.
The McCann Brand Clout Index™, managed by NFO WorldGroup research, is currently
being rolled out of test market.

Road Maps to Effectiveness :

The Road Map to Effective Advertising
The Road Map to Effective Communications
Why the McCann Road Map Service was Created:
Consumer behavior is harder to understand and predict. Media is proliferating.
Distribution channels are changing. And competition is increasingly fierce. In this fast-
moving environment, it is no wonder many established brands lack a powerful strategy,
often lose direction and many new products fail to connect with customers.
To navigate the ever-changing landscape, McCann-Erickson WorldGroup has developed
The Road Map to Effective Advertising™ and, for total marketing communications
programs, the Road Map to Effective Communications™. This comprehensive service of
proprietary tools is designed to create effective advertising and communications
strategies that make an impact in today's cluttered marketplace. The McCann Road Map
service results in communications strategies that create loyal customers when audiences
are moving targets and strengthen core brand values.
McCann Erickson WorldGroup recognizes the need for consistent, tested methods and
tools for creating communications that build brand value around the world and across
marketing communications disciplines. The McCann Road Map service is used globally
to ensure the consistency and high quality of communications programs around the
world. It is also used throughout the WorldGroup's range of marketing communications
companies to make certain that integrated marketing campaigns work in synergy.
The McCann Road Map's Key Components:

46

The Road Map to Effective Advertising™, the prototype system on which The Road Map
to Effective Communications™ is based, is a full arsenal of services to guide the creation
of effective communications. It begins with the development of consumer and brand
insights and ends with the evaluation of the ideas that are used to create customers and
build brand values.
Components of The Road Map to Effective Advertising™ include:
McCann Pulse™ -- the on-going exploratory service for gaining an in-depth
understanding of consumer trends in order to develop relevant consumer insights.
Brand Footprint™ -- for articulating the core brand essence that allows a brand to travel
successfully across marketing landscapes.
McCann Selling Strategy™ -- for converting consumer insights and brand essence into a
focused communications strategy that is unified by a single, driving selling idea.
And finally, McCann AdWorks™ -- a qualitative consumer validation and feedback
process to assess the effectiveness of marketing communication campaigns.
McCann Pulse
McCann Pulse™ is the regular monitoring of collective cultural undercurrents at work on
global consumer groups. Its goal is to better understand how these undercurrents affect
consumers and their consumption; whether observed crosscurrents are connected or
isolated; and whether they represent a momentary fashion, a sustainable trend, or a real
cultural shift within a market.
McCann Pulse™ is a proprietary service that provides complete immersion in the lives of
consumers through ongoing monitoring and personal dialogues. Following are the three
components of McCann Pulse™:
The Pulse of Popular Culture
In-depth analysis of the content and symbolism of the various forms of media that both
reflect and influence consumers.
The Pulse of Observers of Change
Ongoing dialogues with leading-edge thinkers whose fields of interest relate to our target
consumer groups.
The Pulse of the Consumer

47

Unconventional dialogues with selected consumer constituencies that probe personal
insights and what is new in their lives.
Pulse can offer clients:
• Insight into new values, ideas and trends
• An ability to talk more accurately in the language of consumers
• Consumer perspectives of major marketing issues or events
• Context for new creative ideas
Brand Footprint
The Brand Footprint™ service uses a tool that defines a brand's essence, so that
marketers can manage and build their brands most effectively. It provides a clear
understanding of which values need to be protected and leveraged in brand
communications. And it helps charter a brand's growth into new territories, from
expanding a brand in new geographic regions, to establishing it across multiple product
or service categories, to extending it to an electronic marketspace.
As brands expand, their value and meaning are often put at risk. These risks stem from
the need to reconcile a brand's heritage with product innovation, and from the need to re-
express the brand in the context of new competitive sets, new cultures, and new media.
The Brand Footprint™ service is designed to protect the equity of the brand by
conveying the brand essence clearly and succinctly, but with enough texture to inspire a
range of marketing activities, from product development to integrated communications.
The Brand Footprint™ articulates the three most central brand meanings and its three
most prominent personality characteristics.
McCann Selling Strategy
The McCann Selling Strategy™ is a service that is single-mindedly focused on
generating brand-building ideas. Ideas that attract customers. Ideas that build corporate
and brand franchises. And ideas that create marketplace dominance for clients.
While traditional strategy has often been highly analytic, the McCann Selling Strategy™
offers imaginative conceptualization. It is guided by the McCann Selling Strategy™
platform, a process of analysis and idea generation that helps move a brand from its
current position in consumers' minds to a desired perceptual space.

48

The McCann Selling Strategy™ uncovers the motivations of conceptual target audiences
and results in a strategic concept that pinpoints a Selling Idea.
Unlike many traditional strategy briefs that are formulaic, the McCann Selling Strategy™
is a dynamic and living process. It's a way of thinking, working and creating as a team. It
is a discipline pursued with passion - - that ensures that we stay true to our role of
creating ideas that add perceptual value to clients' brands.
McCann AdWorks
As the last stage of the Road Map to Effective Advertising™ service, McCann
AdWorks™ tool ensures more effective marketing communications by providing
feedback from consumers to a proposed campaign expression of the Selling Idea.
McCann AdWorks™ service is tailored to a specific product, a market situation, a
cultural environment. Unlike most leading ad testing firms that offer a simple go/no-go
decision on creative work, McCann AdWorks™ is designed to help us understand
whether we have communicated the Selling Idea we set out to communicate, whether the
Brand Footprint™ is understood and if the campaign is entertaining.
With McCann AdWorks™, we can take the lead in facilitating a real-time discussion
about advertising effectiveness and help clients make the right decisions that lead to
advertising, direct marketing or other marketing communication work that produces great
marketplace results at the earliest stages of creative development.
The McCann Road Map service of proprietary tools has proven valuable to a range of
McCann-Erickson WorldGroup clients around the world. We believe that, as competition
escalates on a global scale, our Road Map service will become even more valuable in the
future.

MOMENTUM EXPERIENTIAL MARKETING PLATFORM
Today, consumers take functional features, benefits, quality, and a positive brand image
as a given. What they want are breakthrough service offerings, cutting-edge products, and
brands that they can relate to, connect with and incorporate into their lifestyles.
Increasingly, marketers understand that consumers are living human beings with
experiential needs: consumers want to be stimulated, entertained, educated and
challenged. They are looking for brands that provide meaningful experiences and thus
become part of their lives.
49

The degree to which a company is able to deliver a desirable consumer experience - and
use brands to do so - will largely determine its success in the global marketplace in the
future.
Trained to think of marketing and branding in terms of experiences, Momentum
Experiential Marketing™ Services create unique, nearly impenetrable emotional bonds
with consumers. These bonds are based on consumers' real experiences with the brand on
every interactive level. Momentum Experiential Marketing™ Services are designed to
deliver the brand experience during both the pre-purchase period (brand in mind) and the
post-purchase period or consumption period (brand in hand). At Momentum, we know
that companies that spend money on acquiring customers (brand in mind) but fail to
deliver on the brand promise (brand in hand) will ultimately fail, causing high
dissatisfaction and high brand switching.

STRATEGIC APPROACH TO DEVELOPING THE BRAND EXPERIENCE
Our goal is to have the brand embody an experience that is valuable, optimal, and cannot
be duplicated by competitors.

MOMENTUM EXPERIENTIAL MARKETING SERVICES
The ultimate goal of Momentum Experiential Marketing™ is to create holistic brand
experiences for customers. Our strategic approach is guided by a simple formula:
Brand = Reputation (in the marketplace) + Promise (to the marketplace) + Experience (of
customers)
BRAND = REPUTATION (in the marketplace)
The first step is to develop a Brand Footprint™. The Brand Footprint™ is Momentum's
unique tool for defining a brand's essence. The Brand Footprint™ is a coherent statement
of a brand's meaning and personality.
Specifically it embodies:
• What the brand "means". What the brand "means" is what a brand gets credit for
in the eyes of consumers - its reputation across a number of key dimensions. For
example, Bayer means aspirin, doctor recommended, and prevention against heart
attacks.

50

• What the brand "is". What the brand "is" is how we would describe the brand's
dominant personality traits - generally those that correspond to its principal meanings.
For example, Bayer is experienced, safe, and versatile.
BRAND = PROMISE (to the marketplace)
The Brand Footprint™ provides critical insight into how the brand is perceived in the
marketplace; this understanding allows us to build meaningful relationships with
consumers. The relationship is a promise that their experience with the brand will be
personally relevant, consistent, meaningful and memorable - an experience that will be
sought after time and time again.
A Brand Promise is essentially a reason for being, a company's long-term ambition for
their brand. It encompasses how the company views its industry today and tomorrow and
the role they want their brand to play in it. It seeks to carve out a premium, non-
duplicable point of differentiation in the marketplace.
A Brand Promise sets forth the foundation needed for organizations to focus in on how
they want the external world to view the brand, redesign operations and strategies in
order to deliver on the promise, and then develop marketing communications to fit with
the image they are trying to portray.
A Brand Promise incorporates every aspect of a brand's business model in order to create
a holistic brand experience for the consumer. At Momentum, we know that public
impressions of brands are based only in part on communication and public images. More
than anything, they are based upon the daily explicit and implicit interactions that people
have with a brand. In other words, the Experience.
BRAND = EXPERIENCE (of customers)
Experiences are personal events that occur in response to some stimulation (e.g. as
provided by marketing efforts before and after purchase). An experience involves the
entire living being and can be infused into a product, used to enhance a service, or created
as an entity into itself. Experiences provide consumers a way to engage physically,
mentally, emotionally, socially or spiritually in the consumption of the product or service
making the interaction meaningful and real.
A comprehensive set of Momentum Experiential Marketing™ Service Drivers creates the
optimal consumer brand experience for your product or company.

51

Momentum Experiential Marketing™ Service Drivers ,
Communications
Advertising
Promotions
Co-Branding
Events
Sponsorships
Product Placement
Visual/Verbal Identity
Name
Logos and Signage
Product Presence
Product Design
Packaging
Brand Icons
Web Sites and Electronic Media
Site Dynamics
In summary, to effectively develop a brand experience that is meaningful and continually
sought after, we must:
• Fully understand the meaning of the brand, its personality and what consumers
are willing to give the brand credit for in the marketplace - Brand Footprint.
• Relate the brand to the consumer in unique, consistent, relevant and meaningful
ways, creating a non-duplicable point of differentiation - Brand Promise.
• Realize the promise in every interaction the consumer has with the brand - The
Experience.
Developing a sound strategy will allow us to determine the best way to actualize the
promise as part of a full-scale consumer experience platform. Momentum Experiential
Marketing™ Services enable us to bring the experience platform to life.

Brand Citizenship
Why the Brand Citizenship Service was created:
52

Due to the revolution in global communications and commerce, McCann-Erickson
WorldGroup recognize that there has been a sea change in the perception of brands.
Brands, these global icons, have become the new symbols, the new coats of arms that
represent vast global constituents. They cross borders and national culture at will. They
are neither products nor companies; they are worldwide constituencies of millions around
the globe bound by common beliefs, values and point of view that transcend all
traditional boundaries. They have become repositories and symbols of a global
community of individuals who share core values, lifestyles and beliefs.
Brand Citizenship™ is a service that facilitates the development of marketing and
communications strategies in this ever more global constituency led market environment.
It begins with the development of new mindset tools, and practices before moving on to
how brands and corporations should operate in a world where brands begin to supercede
states and other organizations.
Brand Citizenship™ utilizes the very latest thinking in considering the brand in its new
environment. The role of the brand steward in worldwide constituency management is
examined: in particular how he identifies his citizenship, and the means and methods to
enter a dialogue with the citizen. Analogies are drawn from the past in order to gain fresh
insight on the role and the responsibilities of the brand steward - someone we come to
consider more akin to a leader of a nation rather than a manager of a product. Attention is
also given to the role of the employee who plays a vital part in Brand Citizenship™ by
creating and perpetuating the brand.
The Brand Citizenship™ Service incorporates the use of other McCann-Erickson
proprietary tools such as The Brand Footprint™ and The Selling Strategy™ (as detailed
in The Roadmap to Effective Communications™) in the process of managing global
Brand Citizenships. This process is broken down into three key areas - citizenship
definition tools, communications corridors and a pervasive worldwide system.
The Brand Citizenship™ Service has proven valuable to a range of McCann-Erickson
WorldGroup clients around the world. We believe that in the increasingly competitive
global village in which we operate, our Brand Citizenship™ Service will become even
more valuable in the future.

53

SWOT ANALYSIS:-
STRENGTHS:-
1) Planning is a major strength of this agency. This is because Mc Cann is the only
agency whose president is the planner.
2) Also, as far as overall account planning ability , Mc Cann Erickson stands 4 th
amongst all advertising agencies worldwide.
3) On the creative ability front, Mc Cann Erickson bags third position in the list of
top ten advertising agencies.
4) Mc Cann Erickson is a worldwide organization with its roots firmly penetrated
into the soils of advertising and marketing with many subsidiaries and group
concerns , Mc Cann Erickson has aggressively tapped the world market and
consolidated its ground in all spheres.
5) Mc Cann Erickson is a highly professionally managed organization. Its executives
are its major assets as is clear from their contributions to Mc Cann and their
portfolios.
6) In India, an overall basis i.e. on the grounds of quality of client servicing, overall
creative quality, account planning, overall partnership, media, market recognition,
overall organization/people, billing procedures, management of financial dealings
with clients &logistics, Mc Cann stands 4th in the list of Top 20 agencies.
7) Mc Cann Erickson’s biggest strength is the quality of human resources it
possesses. With people like Sorab Mistry who is the CEO South-Asia Mc Cann-
Erickson , Santosh Doshi, Prasoon Joshi and Chintamani Rao, Mc Cann not only
races ahead of agencies like Contract , Mudra and Leo Burnett but also has a huge
potential for the future. Prasoon Joshi, earlier creative director of O&M’s Mumbai
Office, now a national creative director of Mc Cann Erickson is the second
amongst India’s hottest creative directors. In a short period of time, he has
managed to upstage a number of heavyweights to sit pretty at number two on the
list of most admired creative directors.

WEAKNESSES:-

54

1) Client Servicing is a major weakness for Mc Cann Erickson. On grounds of client
servicing, Mc Cann is the 5th position in the list of 15 advertising agencies; way
behind agencies like JWT, O&M, Lowe &Mudra.
2) Also, though McCann bags the third position on grounds of creative ability, it is
mainly due to the strength of its Coke campaign and to a lesser extent the work on
chlormint.
3) As far as media planning is concerned, universal McCann is not very strong. It’s
on the 9th position and just followed by R K Swamy .In terms of market
recognition also, Mc Cann is not very commanding. McCann Erickson hasn’t
bagged too many awards and it’s also not very strong at managing its P.R
4) Universal McCann also lags behind most of its competitors in media buying and
planning. That is to say, it does not incur much of an expenditure on advertising
i.e. buying media, research and development.

OPPORTUNITIES :-
1) McCann Erickson is a worldwide organization ; having its branches in many parts
of the world. With international tie-ups and subsidiaries in every nook and corner
of the world, McCann is in a very strong position to fruitfully tap the resources
unique to every country and also make an optimum exploitation of the conditions
and the environment prevailing in each of these nations.
2) McCann is empowered with professionals having diversified experience and skills
in the field of advertising and marketing. This can be utilized by the organization
in overcoming its above-mentioned weaknesses to a greater extent.
3) Empowered with a worldwide reputation, McCann is also capable of diversifying
into other sectors of advertising and marketing and also other forms of media.
Besides, being an organization of international repute, it is also capable of
recruiting some of the best people in the industry on whose individual strengths it
can continue to remain a world-leader and a trail-blazer in this field.

THREATS :-

55

Impact of advertising in business

Impact of advertising in business

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a Impact of advertising in business

Semelhante a Impact of advertising in business (20)

Impact of advertising in business