Via Email on: 5 th January 2008 By: Harpreet Khandpur (221) | Nimmy Mathews (226) |Vidhi Patel (231) | Arkaprabha Sircar (245)| Nitin Jain (315) MBA (Core) II Year Marketing Narsee Monjee Institute of Management Studies, Mumbai
2 Acknowledgement We take this opportunity to thank everyone who has helped us made this endeavor a possibility: Mr. Bikash Kundu, National Sales Head Nickolodeon (Viacom 18) and Ms. Sukanya Sen (Star TV), Ms. Poulomi Ghosh, Mr. Shaurya Sircar and Ms. Kavitha Rajan for their support and encouragement. We would also like to extend our sincere gratitude to Prof. L.V. Krishnan (CEO TAM Media Research Pvt. Ltd.) for giving us an opportunity to write this paper, and helping us appreciate the subject of Media Planning better through his insightful classes that we have enjoyed immensely.
- Harpreet, Vidhi, Nitin, Nimmy & Arka
3 Index
Sl.No. Topic Page # 1 Introduction to the product: Target Group Target Market Product chosen 4 Methodology 4 2 Chocolate Industry A Brief Overview 5 3 Our Brand Cadburys Wowie 10 4 Competitor Brand Cadburys Diary Milk 13 5 Primary Research A Day in the Life Analysis of Target Group in each of the Target Markets 19 Qualitative Primary Research from Retailer 24 6 List of Possible Media Touchpoints 27 7 Media Plan Theoretical Overview 41 An Overview of various media 45 Advertising to kids 46 Media Plan for Cadbury Wowie 49
4 Introduction to the Project Target Group Category Market Kids 6 to 10 years FMCG Edible Chocolates Metro 4 cities New Delhi, Mumbai, Kolkata, Chennai
Methodology: As detailed above, we have chosen to develop a media plan for Chocolates for children in the age groups of 6 - 10 years living in the 4 metros. The brand that we have chosen for the media plan is Cadburys Wowie, a chocolate with Disney branding, while the competitor is Cadbury Dairy Milk. In order to come up with a possible list of touch points, we first had to have a fair understanding of how a typical day goes for the target audience. We hence conducted a day in the life exercise for 4 children, each in the four metros. We have also conducted qualitative interviews of unorganized retailers as well as a study of organized retailers to gain valuable insights, not only about the interaction of these retailers with the company (Cadbury India), but also insights regarding the behavior of the TG at the shop. The touch points have also been determined on the basis of secondary data that we have obtained from studies conducted by organizations such as Cartoon Network. On determining the various touch points, we set about to find the reach, frequency and cost of the various media, so that we could arrive at a cost per contact for the various media. The touch points have then been objectively analyzed not only based on the cost per contact, but also on qualitative factors such as issues in advertising to children. The role of a particular touch point, whether affective in building the reach or the frequency of the communication has also been analyzed.
5 Indian Chocolate Industry Overview Chocolate and Cocoa - A Rich History: Chocolate dates back to the days of ancient America when the Mayans, and later the Aztecs, ground the beans of the Theobroma cacao tree into a bitter beverage, which they prized for its mystical and medicinal attributes. Chocolates name comes from the Aztec word, xocalatl which means bitter water. Interestingly, Corts, the conqueror of the Aztecs, brought the beans to Europe in the 1500s, where they were used to treat anemia, fever, gout, hemorrhoids, poor digestion, depression, and heart ailments. Today, chocolate is a highly processed blend of chocolate liquor, cocoa butter (all fat), cocoa powder, sugar, emulsifiers, and milkfar different from its origins. Surprisingly enough, white chocolate contains no real chocolate and its just cocoa fat, sugar, and flavorings that it is made of. Chocolate market in India: The chocolate market in India is estimated to be around 30800 tonnes. It is dominated by 2 major players, Cadbury India Ltd and Nestle India Ltd, which together account for about 90% of the total chocolate market. Cadbury India is the market leader with 65- 70% share in chocolates, but Nestle is also growing faster with a variety of new product innovations.
The largest sector in the Indian chocolate confectionery market was the moulded bars segment, which accounts for over 50% of the market by value. Key figures:
6 Consumer base: 40% consumption from 14 yrs and below 65% consumption from 23 yrs and below Indias Chocolaty Picture: In India, chocolate consumption is extremely low compared to that world over. Per capita consumption is around 160 gms in the urban areas, compared to 8 - 10 kg in the developed countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as a snack food. However, a strong growth, in terms of volume was witnessed in the early 90s when Cadbury repositioned chocolates from children to adult consumption. The biggest opportunity is likely to emerge from increasing the consumer base. Leading players like Cadbury and Nestle have been continuously attempting to do this by value for money offerings, which are affordable to the masses. Amongst other players ITC and HLL are also operating in the confectionery segment. India Chocolate Industry Trends: Seasonal Advertising: Maximum chocolate advertising was during Raksha Bandhan across 2005 and 2006 and January-November 2007 17% more advertising during third quarter 2007 (Raksha Bandhan festival) compared to first quarter 2007 advertising skewed towards kids channels and regional GEC took the second position Regional GEC took the second place with a 21% share ad volumes of chocolates, followed by Hindi movie with 13%. Among regional GEC, maximum advertising of chocolates was on Malayalam and Bengali channels. January-November 2007 the number of new chocolate brands advertised decreased to 7 from 12 during 2006. Chocolate - An impulse purchase: Chocolate. The very word makes your mouth water. Chocolate is more than just a food: its a state of mind. 1 Forest Gump and his momma knew best: "Life is like a box of chocolates. You never know what you're gonna to get!" Creamy, mouth-watering, delicious chocolate delight melts in your mouth. Rhetoric aside, the history of chocolate has moved in constant evolution throughout world history. Consumers question chocolate's benefits, is chocolate a "sinful delight" or is chocolate a "healthy delight"? No matter how the corporate and media world spin or shape the milky
1 www.chocolatehistory.net
7 candy, the popular chocolate confection stands strong in the global market, healthy or not. Chocolate represents a world culture of courtship and consumerism. Corporate chocolate pushers inundate the internet, radio and television with their consumer-driven holidays saying, "Buy our chocolate and you will be loved! Buy our chocolate and escape the real world with every chocolaty, savory bite!" Nancy Normal's boyfriend-candidate runs out to buy her flowers and a box of heart-shaped chocolate, before their very first date. Dick and Jane Doe buy their kids chocolates for Easter, Christmas, Hanukkah and Valentine's Day. Holidays and courting paired together with chocolate in the same way fast food franchises pair hamburgers and fries in their marketing campaign. Corporations send consumers these messages via commercials, resulting in sales increases. Production and sales of chocolates thrive off the mindset that chocolate equals love. This same mindset also equates to consumers associating this in a change in how they feel. Chocolate makes you feel good, buy some today for yourself or the ones you love. Chocolate is known not only as a gift to loved ones, but as a tasty escape from the real world. So, Mrs. Gump was right about chocolate. Life, like chocolate, excites, delights and gives much more than what can be seen in the pretty packaging. Sociologists spin the significance of chocolate based on how it affects a global culture and economy. Culturally, chocolate represents an important role in the dating rituals, potentially propelling a successful courtship. Courtship rituals can include one person giving chocolates and flowers to the object of his or her affection, as a thoughtful gesture. The seemingly minor role of giving chocolate as only one of many courtship rituals remains significant and common practice in many different cultures worldwide. Chocolate represents a small promise from one to another: "I'll be thoughtful and sweet in the future. Pick me! Pick me!" Chocolate plays many roles in the world's culture of love and economics. Love and capitalism correlate to chocolate during the millennium. Chocolate brings lovers together. Chocolate contributes to the economy of a country, creating jobs during the production and sales of the sweet creation. In many ways, the simple and delectable; yet culturally complex morsel of chocolate reflects the modern life. Over the past few years, the increase in variety (in both shape and size) of chocolates available has led to a lot of impulsive buying. Leading players like Cadbury and Nestl have also introduced chocolates in smaller packs, costing less than the regular packs to have larger penetration in the market. New product launches including a brown and white chocolate combination Dairy Milk Two-in-One, Bytes chocolate wafer snacks by Cadbury India are driving growth in this industry. Chocolates, as a confectionary product have come a long way over the years. It essentially started off as a product for the kids. This has changed, no longer is the perception of the product the same, To change customers attitude towards chocolate consumption, Cadbury's came up with ads which showed people of all ages eating and enjoying chocolates. Not only this, Cadbury's also launched a series of ads in which Amitabh Bachchan, a
8 senior Bollywood actor, was shown eating chocolates to change customers attitude towards chocolates after worms were found in some of the chocolate bars.
Also, with new products like Cadbury celebrations, chocolate companies have very smartly tried to bring in the emotional content in branding chocolates. One famous example of the same is the launch of its Celebration series by Cadbury. Cadbury initial communication for Celebrations was concentrated on occasions like Diwali and Rakshabandhan. Over the last seven to eight years, the brand emerged as a good gift proposition for occasions and enabled people to come closer. Research done by Cadbury suggested that they should extend the plank of occasion-based gifting to social gifting i.e. all-year-round gifting options 2 . Interestingly enough, designer chocolates have become a symbol of status. They are linked to ones aspiration and lifestyle and malls are perfect points of sale. Chocolates which used to be earlier perceived as unaffordable, are now considered mid-priced. Convenience over Mithai in terms of packaging and shelf life in making both middle class and rich Indians opt for chocolates.
Some interesting facts about Chocolates 3 - Some Scientificsome emotional: It is common perception that chocolate is a mood elevator although some people believe that it causes headaches and migraine. Though it is widely accepted that chocolate affects our moods, the research on this is still in a fluid state. Every contention is fiercely debated. We will discuss various ways that chocolate affects our moods and emotions, according to the present set of beliefs. Chocolate affects us both negatively and positively. Some people, when they are sad or depressed, experience a craving for chocolate. On eating chocolate they report that their mood is elevated and they feel better. This elevation in mood is temporary though and when this effect wears off, they again revert to their previous state of mind. There are many health benefits that are attributed to chocolates. It is good for the heart. It increases the responsiveness of blood vessels which is useful for preventing heart disease. It also increases glucose tolerance. Chocolate also contains some substances which have an anti oxidant effect. This is helpful in preventing cancer. Chocolate is reported to cause headache, obesity, rectal itching, heart burn and emotional problems like irritability, confusion, anger and depression.
2 Cadbury India website/fmcgmarketers.com 3 atitlan.net (The official website of Lake Atitlian, Guetmala)
9 Chocolate is rich in carbohydrates, which increase the rate with which tryptophan enters the brain. This increases the level of serotonin, a neurotransmitter that regulates moods, creating a good feeling. The addictive property of chocolate is also well documented. This is evidenced by the fact that some people, when trying to give up alcohol, depend on chocolate to satisfy their cravings. This drug-like property is attributed to caffeine, anandamines, phenylethylamine and magnesium that are present in chocolate. The presence of caffeine and magnesium can contribute to a feeling of craving for chocolate. Ananadmides affect the brain in a similar way to marijuana, though research in this field is still debated. There are more than 350 chemicals in chocolate. Some of these are believed to cause allergic reactions. Some scientists believe that phenylethylamine and theobromine could cause changes in moods. Phenylethylamine causes blood pressure and blood sugar to rise. It generates a feeling of alertness and contentment thus creating a feeling of well being. But, a short period of emotional high is followed by a period of emotional low. With various sources of study pointing out at different conclusions, all the contradictory information on the effects of chocolate on mood, one has to observe from one's experiences and decide whether chocolate is right for ones own self or not. But, certainly, large amounts of chocolate will affect us physically or emotionally one way or another!
10 Cadbury Wowie The story of Cadbury Dairy Milk started in 1905 at Bournville, U.K and its journey with chocolate lovers in India began in 1947. Cadbury Dairy Milk has been the market leader in the chocolate category for years. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. In the early 90's, chocolates were seen as 'meant for kids', usually areward or a bribe for children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings' To address the kids market, In July 2006, Cadbury India launched Cadbury Daily Milk Wowie, a white and brown chocolate with fun Disney characters Mickey, Pluto, Goofy and Donald. Cadbury Diary Milk Wowie was positioned to become the choice of 8 - 13 year-old consumers and was made available in retail outlets, priced at Rs 10 per pack of 22 gm. 4 Today the price has gone up to Rs. 13 per pack. According to company sources, Cadbury Daily Milk Wowie is an endeavour to enthuse kids by adding to their playful sweet moments and reach the chocolate lovers with something novel. At the time of the launch, Cadbury India Limited director marketing Sanjay Purohit commented, We are as excited as our Cadbury lovers would be, to have the new Cadbury Wowie. The Wow Factor being a new Disney toon smiling every time a consumer opens the wrapper 5 . We will continue to surprise our consumers with interesting and creative brand offerings such as this, which allows us to interact with them as they engage and enjoy the product. 6
The Disney Brand has a strong affinity with families and audiences across the region because of the core values that permeate throughout all of our content: trust, decency, optimism and quality. India has been identified as a priority for the Company. Disney owns three of the top ten character franchises 7 , according to Forbes.com's annual "Top Earning Fictional Characters List." (2004) Forbes.com estimates that the top-ten fictional characters grossed more than $25 billion in 2004. Mickey Mouse and Winnie the Pooh were number one and two respectively. Disney/Pixar's $860 million box office blockbuster Finding Nemo rounded out the top five. Collectively, all three character franchises amount to nearly half the combined retail sales of the entire "Fictional Billionaires" list. According to Disney senior VP brand management Matt Ryan, At Disney, we strive to develop characters that engage a child's imagination, tell stories that connect with families and find ways for our characters to live on in the hearts and minds of children everywhere. Disney consumer products worldwide chairman Andy Mooney added, "The resurgence of Mickey to this year's top ranking can be attributed to the successful
7 To calculate the earnings of the world's top fictional characters, Forbes.com added together worldwide toy/merchandise sales, videogame sales, publishing and box-office revenue, as well as DVD/VHS sales and rental revenue. Source: http://www.indiantelevision.com/mam/headlines/y2k4/oct/octmam88.htm
12 programs we implemented, including the Mickey 75th Anniversary, Mickey postage stamp programme, vintage Mickey fashion line, as well as new DVD and television releases surrounding the character. In India, recently, spurred by the success of Cadbury Wowie co-branding, Disney India has decided to soon launch its range of shampoos and shower gels targeted at children in the age group of 4 to 14 years. The products have been test-marketed in markets like Mumbai, Delhi and Kolkata. The market response has been good. We will be launching the range very soon, said Roshini Bakshi, director, Disney Consumer Products. So this could be a tactical move on part of Disney to test their brand presence in India before launching other range of products. This would also help them develop an understanding of the Indian market and study the market. In fact, this could be a part of Disneys larger strategy to corner an increasing share of the childrens television market. 8 The company has also tied up with paint company Goodlass Nerolac for a range of paints for childrens rooms, which come with Disney characters. Disney has also tied up with mobile phone service companies like the Bharati group and Reliance Communications to supply them with Disney wallpapers, ringtones and mobile games. In July 2006 Disney acquired UTVs Hindi childrens channel Hungama. Clearly, the US entertainment giant is on an overdrive to become a powerhouse in India. In line with this goal, Rich Ross, president of Disney Channel Worldwide, announced in September of 2006 that Disney would broadcast two original local language programmes on its Indian channels. In the same month, Disney India tied up with publishing company Infomedia India to launch childrens magazine, Disney Adventures. According to Rajat Jain, managing director, Walt Disney Company, India, It is Disneys endeavour to provide a 360 degree experience to children and families. More importantly, we want to give quality television viewing to children in India. Why we chose Cadbury Wowie: Cadbury Wowie is one of the chocolates from the Cadbury stable that is targeted specifically at children, that too in the age groups of 8- 13 years of age. We felt that this was closest to our TG (as per the project brief) which was in the age group of 6- 10 years of age. The launch of the product was supported heavily through a new TV campaign, parallel with radio and outdoor in select cities. We have analyzed the media plan along the lines of the existing campaign, as well as come up with new touch point based on the interaction that we had with four children each from the four metros. The Packaging was also the first of its kind, with uniquely colorful 3D imaging effects.
13 Competitor Brand: Cadburys Diary Milk Our interactions with retailers during the course of the primary survey (detailed later) helped us gain valuable insights about consumer behavior of the target audience - children, at the stores. Rs. 5 and Rs 10 are two very important price points in chocolates, and the consumer behavior associated with each is very different. Chocolates such as KitKat, Munch, Perk are in the Rs. 5 category, and are perceived to be a routine purchase, but chocolates in a higher price point such as Cadburys Diary Milk and Wowie are bought with parents often stepping in as a the decision maker, and these chocolates are considered to be an indulgence or reward for good behavior. Also, the retailers that we spoke to felt that when it came down to choosing between different brands of chocolates, that too in the Rs 10 price point, it was inevitably a choice between Wowie and its closest competitor Cadburys Diary Milk. Hence, we have zeroed in on Cadburys Diary Milk, a hugely successful brand from the Cadburys stable as the competitor brand. Cadbury Dairy Milk chocolate is one of the major success stories of the Cadbury business and one of the world's most famous chocolate brands. Launched in 1905, Cadbury proudly boasted that its new milk chocolate was not only "as good as," but better than the European milk chocolate. With its now-famous glass and a half of full-cream milk in every 200gms, it contained far more milk than any previously known chocolate. While advertising and packaging designs have evolved over the years, along with considerable technological advances in production, the Cadbury Dairy Milk recipe is still basically the same as it was in 1905. Cadbury Dairy Milk blocks comes in a range of sizes suitable for all ages and occasions - from a quick snack, a self-indulgent treat, something to share with family or friends or a gift. Cadbury Dairy Milk is sold with a similar design worldwide - the centerpiece of all packaging is the iconic "glass and a half " image showing the famous glass and a half of full cream milk flowing into a delicious chunk of Cadbury Dairy Milk chocolate. Indians love Chocolate! Cadburys was introduced in India only in the year 1948. Cadbury India Ltd. (CIL) is the wholly-owned subsidiary of the leading global confectionery and beverages major -- Cadbury Schweppes. From a trading corporation that began operations in India in 1947, CIL has become a market leader in the confectionary segment. Cadbury has a 70 percent market share in chocolates. Some of its brands are Dairy Milk, 5 Star, Gems and Perk. Cadbury India contributes about 4 per cent to the global revenues of Cadbury Schweppes, and the number is steadily growing. For example, the net profits almost tripled from 25 crores to 73 crores from 1998 to 2002, while its sales grew from 420 crores to about 800 crores for the same period.
14 The company has successfully revamped its chocolates division by following a strategy of regular product launches and marketing its existing chocolates in smaller packs. It is expected to continue with this strategy for further products, and any products expected to be launched. Another way through which the company maintains market leadership is through re-launch of older products such as the introduction of CDM in smaller sized SKUs( Rs. 5). Cadbury India faces stiff competition from the likes of Amul, Nestle, etc. The brand also faces competition from international names such as Hersheys, Mars, etc, which have set their sights on the lucrative Indian market. It is with this in mind, that the company has recently launched Bournville, its premium dark chocolate brand. Priced attractively at Rs 75, and targeting SEC A cities and people in the 20-30 year age group, the brand elicits at least a one time trail of the product. Other factors like increasing cocoa prices too can affect the size of the chocolate market, all of which Cadbury will have to take into account. Cadburys Dairy Milk (CDM) is its flagship brand, having a market share of 30% and average daily sales of 1 million bars. CDM has a volume share of 26.7% in the urban market and a value share of 30.7%. It is followed by brands such as 5-star, Perk and Gems 9 . Bournvita is another major brand for the company as it constitutes about 22% of the company's worldwide sales. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. Cadbury Dairy Milk Desserts has also been launched, specifically to cater to the urge for 'something sweet' after meals. Campaigning for Chocolate- The history of Cadburys Campaigns- With its simple message of the goodness associated with the "glass and a half of full cream dairy milk", this successful advertising campaign began in 1928 and served Cadbury Dairy Milk admirably until the late 1980s. A change in advertising strategy in the 1990s saw a greater emphasis placed on taste in the bold "Chocolate is Cadbury" campaign. The message reinforced that no other chocolate compares with the taste of Cadbury, while successful elements of previous campaign such as the glass and a half were still included. The clever imagery of this television campaign played on the theme that chocolate means different things to different people at different times, but most importantly, Chocolate is Cadbury. The marketing communications strategy for CDM (Cadburys Diary Milk) in India has evolved over the years. In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a
15 bribe for children. CILs marketing communication campaigns for CDM were targeted at kids. The advertisements focused on the relationship between the parents and their children, where parents expressed their love by gifting the child a Dairy Milk. However, in 1994, CIL changed its strategy and the communication campaigns were targeted at adults, to expand the chocolate market and increase sales. The company, through the very popular `Real Taste of Life' campaign, shifted the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'. In doing so, CDM has chosen to swim against the tide, as the competitors are increasingly directing their efforts on the childrens segment, which has gained prominence due to its increasing pester power. The 'Real Taste of Life' campaign had many memorable executions, which people still fondly remember. However, the one with the "girl dancing on the cricket field" has remained etched in everyone's memory, as the most spontaneous & un-inhibited expression of happiness. This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards. In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments 10 .
More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success. The fact that Mr. Amitabh Bachan, the most famous movie star in India,
10 www.cadburyindia.com/brands/choco1.asp
16 endorses the product and that has only served to increase its appeal among the masses, irrespective of age, sex, income, location or education. The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'. The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk. The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards. Following these highly popular campaigns, the following commercials intended to extend and broaden the kuch meetha ho jaaye proposition with a disruptive, fun-filled execution, featuring the brand ambassador Mr. Amitabh Bachan. The campaign was kick-started with a teaser in the first week of June 2007 showing Mr. Bachchan hitting a lamppost and becoming unconscious in his urgency to have something meetha. The teaser commercial invited the viewers to visit www.meethamoments.com to guess what happens next. Over the 10 days between the launch of the teaser campaign and the reveal campaign, over 17,000 visitors registered on the website and entered a competition to preview the continuation TV commercial before its launch in the channels. The registered users were invited to a special microsite to view the commercial along with the permission to invite two more friends, making this a one of its kind communication initiative to engage with its consumers even before the new commercial launch. The TV commercial was supported by a 360 campaign to intensify the engagement with the consumers through radio, print, outdoor, on-ground (multiplexes and malls), mobile and online. The new campaigns are aimed at increasing the Brand Salience of Dairy Milk. Theoretically Brand Salience refers to the depth and breadth of brand awareness. While depth talks about how easily the brand is recalled, breadth refers to the range of purchase and usage situations that the particular brand has been recalled. Dairy Milk has immense depth of awareness and the natural way forward for the brand is for the consumer to remember it whenever he/she thinks about sweet. Through these campaigns, Dairy Milk wants to move above the category constraint of " Chocolate " and spread its awareness whenever the consumer thinks about having something sweet. This strategy is to tide over the limitation that a product category can create regarding consumption of a product. This time the brand has taken a 360 degree approach towards brand promotion. The brand has an interactive website meethamoments.com which contains lot of interactive fields and downloads.
17 Cadbury's Dairy Milk Sep 2008 Agency: O&M
The ad opens on a railway station where people are watching a cricket match.
They are cheering for India and the celebrations are almost on. A man takes out a carton of Dairy Milk to celebrate.
The commentator then announces that India has lost, leaving everyone with a sad face.
A small boy then says "Koi to jeet gaya na". Everyone then rejoices Kenya's victory while enjoying Dairy Milk chocolate. (Source: TV Ad Indx/www.iBankLive.com www.afaqs.com)
18 Primary Research A Day in the Life Analysis of Target Group in each of the Target Markets
1 1. . C CI IT TY Y: : N NE EW W D DE EL LH HI I Name: Rahul Katyal Age: 8 years School: Modern School, Barakhamba Road Favourite Chocolate Brand: 5 Star Primary reason for liking the brand: He considers it to be more chocolate (tastier crust) as compared to the other chocolates. Prefers bar shape to shapes of chocolates like diary milk etc. which have to be broken before consumption. Priced at a reasonable price, and buy it out of pocket money- Rs. 10 for a bar.
19 Other insights: It was told to be by the childs mother that she doesnt prefer taking him when she goes out shopping for grocery etc and is more at peace while going for the same. She does not buy chocolates for him on a daily basis, just once in week, that too as a treat - this suggests that chocolate is still treated as an indulgence product. Who buys? 8 out of 10 times, the child himself. (As told by his mother) Where? In school canteen, also from the shop close to the area he stays, buys it when he goes to play with his colony friends. Wathces TV for 1-2 hours daily, mainly cartoon channels line CN. Tried Wowie - Yes. Liked it too. Then why dont you buy it? - Dont like the shape plus the place at which he stays, is out of stock of the same brand most of the times and the school does not keep it either. 2 2. . C CI IT TY Y: : M MU UM MB BA AI I Name: Sumair Patel Age: 7 yrs School: St Marys, Mazagaon, Mumbai Favourite Chocolate Brand: Cadburys Dairy Milk Sumair gets up early in the morning around 7am and goes to school. He travels by car pool arranged by parents. His remaining day involves playing, studying and watching television. Insights from the mother: He is not allowed to buy chocolates on his own unless accompanied by his parent or guardian. He can go and buy a chocolate on his own very rarely from the shop close to where he stays only if promised. From where? : Grocery store or medical store close to the house. He is allowed to eat chocolates only once or twice a week mostly on weekends not on a day-to-day basis or unless he is promised for a chocolate if he studies well.
20 Who is the decision maker? The child decides and persuades his parents to buy him his favourite chocolate. They have chocolates available in their school canteen, and follow a coupon based system so he is not really given any pocket money. Chocolates available in the school canteen: All Indian chocolates, Toblerone, Twix, Mars. For Birthday celebrations in schools, most of the kids parents get Cadbury Wowie to be distributed among other children. Watches television : 1 hour daily and 2-3hours over weekends Channels: Cartoon channels like Disney channel, pogo, cartoon network, hungama. Other sources of entertainment: IPL, and online games. Over the weekends or holidays he accompanies his parents to shopping malls, cinema halls, parks. Does he notice the hoardings on the road? : Yes he does sometimes. If the hoarding is very attractive, colourful and has mainly something to do with cartoons characters or chocolates or his favourite film stars. Insights from Sumair: Favourite chocolate: Dairy Milk. He thinks that it is the best because it is full of chocolate. It is his favourite mainly because it is without nuts. What does he think about Cadbury Wowie? : He loves the chocolate. Why does he like Cadbury Wowie? The reasons he gave was that he loves the Disney characters and gets attracted to the colours and the images on the packaging. He also thinks the Cadbury Wowie ad is fun, very colourful, adventorous and enjoys the song- Itna mazaa aye re, dairy milk ki duniya main..Mickey aya humein bachane. He loves to eat the brown chocolate first and then enjoys the Disney character that is made of the white chocolate.
21 3 3. . C CI IT TY Y: : K KO OL LK KA AT TA A Name: Alekhya Ghosh Age: 7 years School: Assembly of God Church School, Tollygunge Class II Favourite Chocolate Brand: Cadburys Dairy Milk Home: Netajii Nagar, Tollygunge A day in Aleykhyas life (in his own words): On a normal school day: I wake up at 6:30 in the morning. I have a glass of milk and start for school by 7. I study in The Assembly of God Church School, Tollygunge which is very close to where I stay. I walk to school with my mother. It takes me about 10 minutes to reach school. The Morning Prayer at school starts from 7:30 am. We sing our National Anthem together after which we go to our respective classes. We have our break from 9am. During the break I have my tiffin and then play with my friends. I take Maggi or biscuits and also fruits for tiffin. My school gets over at 11 am. My mother walks me home. On our way back she buys chocolates, chips or cakes for me depending on my performance at school. I love Lays and Kurkure but I dont get them very often. After coming back home, normally I watch TV, mostly Cartoon network and Nick. My favourite shows are Ben10, Dragon ball Z and Tom and Jerry. I have my lunch by 1:30pm and go to sleep. In the afternoon I sit down to study and to do my homework which continues till almost 9. Then I again watch TV, have my dinner and go to sleep. On a holiday: I wake up a little late. I have my breakfast and sit down to study. At around 12pm I get a break and go for cycling. My father goes with me if he also has a holiday, otherwise my mother takes me. After coming back home, I watch TV for about an hour and then have my lunch. My mother then reads me stories from story books. I go to sleep. I wake up at around 5 in the afternoon and again sit down to study. My mother makes Maggi for me as the evening snack on holidays as I love having it. I often go out with my parents also.
22 4 4. . C CI IT TY Y: : C CH HE EN NN NA AI I Name: Parvathi Shankar Age: 9 years School: Padma Seshadri Bala Bhavan (PSBB), Nungambakkam Favourite Chocolate Brand: Munch Home: T Nagar, Chennai A day in Parvathis life (in her own words): I wake up at 7 am in the morning as I have to reach school by 8 am. A van comes to our house which takes me to my school. Other children also travel by auto to school and some parents also drop my friends on their scooters. Most of us carry lunch from home, in a special plastic container. I rarely eat from the canteen, as the food there is the same food every day. Some of my friends even have their mothers bring them lunch during the lunch break. We are not allowed to leave the school during the recess. I like to eat chocolates, but the canteen only has bubble gum and sweets. After school, I leave with my friends to the vans parked outside the school. While the van is filling up with kids, we eat food from the neighboring shops. I normally buy cut fruits or pakodas, which are very tasty, and I can buy them every day, as they do not cost much, and I dont get much pocket money, only money during a festival, and occasionally, but not as a regular habit. On some days, if my mother or if especially my father comes to pick me up, I ask them if I can have a Munch or a Diary Milk and they sometimes say yes. After arriving at home, my mother makes me drink a glass of Horlicks, and gives me something to eat. During this time (4:00-4:30 pm), I am allowed to watch what I want on T.V. After drinking the milk, I rush out to play with my friends, and we play till about 5:30-6:00 pm. I then come back home, as if I am late my mother will scold me. I wash up and then sit down to do my homework. We get a lot of homework, and it takes me a long time to do it. During this time, when I am bored, I go to watch T.V with my mother, who likes to watch the evening serial. By the time it is 8:30 pm, it is time for dinner, my homework is over, and my father is back from office. I get to spend some time with my dad and I go to sleep early at 9 pm.
23 Qualitative Primary Research with Retailers Since Kirana stores (Mom & Pop stores) form an important point of sale for Chocolates, especially for children, we engaged the proprietors of 2 stores, namely Sai Kripa Stores, Andheri and Ganesh Stores, Juhu, in conversation. Sai Kripa Stores: The sales of Cadbury Wowie are lesser than that of Cadburys Diary Milk. In fact the retailer mentioned that he would have to order only about 24 pieces of Wowie in a week, but would have to order roughly double that amount of Cadburys Diary Milk. At the store, he noticed the following behavior: Children in the age group of 6 to 10 often came accompanied by their parents. If this was just a routine visit, and the child wanted chocolate, the mother would buy him or her a Rs 5 packet of Diary Milk. If on the other hand, the child had done something good, or gotten good marks in school, the mother would ask him what he wanted. The child would now have the option of buying something in the Rs 10 bracket. Sometimes he would ask for the Wowie (because of the transfer Disney Tattoo available inside), but the child would mostly prefer buying a Kukure or Wafers, which is also priced at Rs 10.
Ganesh Stores: Cadburys Wowie does not do as well as Cadburys, while the latter sells about 40-50 pieces in a week, the sales of the former usually hover around 25 pieces. The children who come to the store unaccompanied usually opt for a Rs.5 Rupee packet of Cadburys or a Munch, because they can afford these. When children are accompanied by parents, they ask for more expensive chocolates, the parents then suggest on a Diary Milk, if a sale of a Cadburys Wowie is made, it is usually because the child suggested it. The children are attracted to Wowie mainly due to the fact that a tattoo is also available along with the chocolate. There were no displays of CDM or Cadburys Wowie in the shop. The retailer also insisted, as he was a small shop, the company would not give him any incentive to sell a particular product, the terms of credit were also strict.
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Insights from Primary Analysis The off take for Cadburys Diary Milk is almost double than that of Wowie as the former is available in a smaller packet and at a smaller price. The Rs 5 pricing of Cadburys Diary Milk is very powerful, and ensures, that it is an easy buy, and Value for money in the eyes of the customer (no one actually checks if the chocolate bar gets smaller over time) Cadburyss Wowie, although targeted at children, particularly as the Disney characters are one of the main reasons for the buy, might have missed the mark in deciding upon the target customer. At such a high price point, parents are a main factor in the decision making process, and not the children. Wowie has competition not only from other chocolates, but from other snack items such as Lays, Kurkure etc, which are also seen as a indulgence item by kids. It might make sense for the company to move to a price point like Rs. 10 or Rs. 5 (for a smaller SKU) for Wowie to facilitate easier transaction. This would be in line with the slashing of Nestles KitKat in July 2004- price of the Rs 6 pack and the Rs 12 pack were
25 slashed to Rs 5 and 10 respectively 11 . "The prices of KitKat have been rationalized in view of the fact that price points are important in the market," a Nestle spokesperson told Business Line while acknowledging the price slash. The only other chocolate brand of Nestle - Perk - is already at Rs 5 and also Rs 2. The spokesperson said Perk was the largest selling SKU (stock keeping unit) in the category. Most children, especially in the 6-10 years age group, are not allowed to leave the school during the lunch break; hence the company could tie with school canteen contractors, with the same terms of trade that they maintain with their retailers. CDM sales continue to be the highest among all chocolate brands, this despite being the brand that offers the least amount of chocolate. While the consumer gets 36 g of chocolate for Rs 10 in case of KitKat and 35 g of Amul, only 24 g is available in case of Cadbury Milk for the same price!
26 Media Touch Points Existing Media Touch Points: The launch was supported heavily through a new TV campaign, parallel with radio and outdoor in select cities. Separate TVCs of an average length of 46 seconds were created. The objective of the ads seems to make children aware, through an animated TVC that the chocolates have Disney characters like Mickey, Goofy, Pluto and Donald embedded on them. The story for the animated TVC is based on four kids looking for the Disney characters which are missing from the Cadbury Chocolate land. They collect clues from various places and find the characters in the milk clouds and the story progresses to form the Wowie product. The TVCs to advertise the special glow pack as well as the adventure series featured children entering the Diary Milk. During their adventures, whenever they were any danger, one of the children holds up a packet of Wowie, which features a picture of one of the Disney characters involved in a heroic act, and thus manages to save the children. Possible Touch Points: Our compilation of all possible media touch points for our brand Cadbury Wowie is based upon the insights gathered from our primary research as well the insights from secondary data especially the findings of the 2001 Cartoon Network survey and 2003 AC Nielson survey. 2001 Cartoon Network survey - New Generations 2001 12 - Findings: 1. North Indian cities top in the amount of pocket money given to kids, Ludhiana heads the list. The percentage of kids receiving pocket money varies from city-to-city, ranging from 27 per cent to 78 per cent. Cities from South India feature lower down in the list. More than 63 per cent of kids* receive pocket money once or more than once a week. Their purchasing cycles could, therefore, be affected on a weekly basis as against a monthly household purchasing cycle. 73 per cent of kids that receive pocket money get less than Rs 100/- per month.
2. Four out of 10 kids claim to read newspapers and/or comics, the readership of dailies increases with age, the study notes, while the readership of comics declines after the age of 12.
12 New Generations 2001, the patented study of Indian kids commissioned by Cartoon Network to understand the media habits of its core audience and its role as members of the family and more specifically, its pester power, which ultimately interests the advertiser on the channel. New Generations 2001 was conducted in 14 Indian cities through interviews with 3253 children (in the age group 7 - 18) and 735 mothers. Source: http://www.indiantelevision.com/mam/headlines/y2k2/feb/feb7.htm
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3. Television also emerged as the best medium of advertising contests/schemes from the study. Telephone was voted as the best medium of entering a contest. Forty-six per cent voted for the telephone, 31 per cent through post and only 10 per cent via e-mail.
4. Eight per cent of the respondents use the computer for Internet and/or email, which compares perfectly vis--vis adults. Amongst Kids, Internet emerges as the second most important medium after TV.
5. The research reveals that 4:00-8:00 pm is the best time slot to target kids as that is the time when they have complete control on the remote. Cartoons emerged as the clear favourite programming genre amongst kids with 52 per cent voting for animated entertainment. After cartoons, boys preferred sports followed by movies, whereas girls moved to music followed by family serials.
6. Cartoon Network also claims to top the list in the following categories among the 7 to 14 year olds: o Top of Mind Channel o Favourite Channel o Most frequently watched channel
7. The study observed kids' attitude towards advertising and revealed that as they grow up they convert from being ad acceptors (stay on with the channel, do other things in the same room) to ad avoiders (change channels, go out of the room, do other things in the same room).
8. Humour ranked as the most common important ingredient among both boys and girls. After humour, while boys liked ads with their favourite sports personality, girls liked ads with their favourite actors/actresses. AC Nielson Research 2003 has also revealed
1. A greater access to pocket money and a bigger say in purchase decisions has resulted in children being more informative and demanding. Impulse category brands are always being evaluated. The need for something new, something novel makes them experimenting on the retail front and keeps marketers on their toes, trying hard to keep their brands in the top-of-mind recall at all days of the week and all times of the day.
28 2. Kids are extremely conscious about product features and thereby brands and hence comes the kidfluence.
Touch Points TELEVISON: Considering that kids today, spend most of their time watching television more than playing outdoor games, the main avenue for reaching out to the TG would be through TV. Cadbury Wowie ads have been very successful in creating a high score in terms of brand recall and awareness among the kids. Thus it could look into featuring their ad campaigns on cartoon channels. It could also look in for holding various contests for kids on its Disney channel. Undoubtedly kids channels remain the most watched and effective medium. Due to increasing number of options (Pogo, Cartoon Network, Nickelodeon, Disney channel etc), kids are increasingly finding a large variety of programmes to suit their individual tastes. The focus of advertisement here should be the maximum as there are over 112 million TV homes in India today. Above the line activities play a major role in creating demand for the kids as metro kids are more flexible and have a less inertia towards a new brand and especially if it is chocolate (especially if it is a dual flavored one). They are more aware and would like to try new brands also through WOM. The advertisements should be aired more on the cartoon channels that too post 3pm till 9 pm. The fact that the penetration of TVs is high in the metros indicates that the reach of this medium would be very high as the ad would be viewed by almost full population of the TG. This is substantiated by the 41% rise in average number of ads aired per day on a channel during 2008 compared to 2004 13 as shown below: In his book Buy-ology, Martin Lindstrom suggests that as we grow older, we change from being ad- acceptors to ad- avoiders. In fact, in an AC Nielson study conducted on the recall of various ads among 1000 adult respondents, analysis of the data revealed a shocking fact- adults on an average only remember 2.21 ads! Since Wowie is targeted mainly at kids, advertising on TV would still produce the desired effect. We can also look at more TVCs, it has been observed that a kid between age group of 6- 10 years is exposed most to these
Which channels do we advertise on? Till 2001, India had only one television channel for children Cartoon Network from the Turner International stable. But now seven channels compete for the attention of a little over 100 million Indian children. Although childrens channels clock up advertising revenues of around Rs 120 crore, industry sources say that the value of advertisements aimed at children in the general entertainment channels is well above Rs 500 crore. The two Disney channels Toon Disney and Disney World together have a 27 % market share 14 way behind the leaders of the pack, Cartoon Network and Pogo. Both the Turner International channels together command a whopping 47 % share of the childrens channel viewership. Not to be left behind, once Disney launched its two Toon Disney and Disney World, it went for the jugular. It simultaneously launched them in Hindi, Tamil and Telugu as well. It has also introduced programmes like Kim Possible and Jetix Hour, both of which have been extremely popular in several countries. With Disney movies and programmes like Thats So Raven and Lizzie McGuire, the company now claims to have a complete set of offering for four to 14 year olds.
30 Disneys regional language feeds are doing extremely well, so much so that it now commands about half the relevant viewership in south India. In fact, TAM data in September 2006 showed Toon Disney to have a channel share of 41% and Disney World 3 per cent, which meant that the total channel share for Disney in the southern market was 44 %. Cartoon Network and Pogo together command around 52% of channel share in the southern market. Most people in the media and advertising industry feel that Disney is taking the right steps to consolidate its presence in India. Says Pankaj Wadhwa, managing director, Kidstuff Promos and Events, Disney is doing the right thing in building the brand in the reverse way. It is a better strategy. But he warns that it will be some time before it poses a serious challenge to the number one childrens channel. According to Rajat Jain, managing director, Walt Disney Company, India, We have been here for just two years, and already, we have increased our viewership from 9 per cent in 2004 to over 20 per cent in 2006. Of course, we have to be competitive, but we also have to grow the childrens TV market. Moreover, the TV-viewing pattern of kids has changed drastically over the last few years. Media analysts opine that children's programming has moved from animation and cartoons to a mix of live action programmes (Hungama Channel's Hungama Fungama), documentaries, movies and game shows. 15
Genre of Progammes used for Kids Genre Advertising (Jan Sep 2006) 16 :
31 Indian TV Viewership 17 - Fortnight ended Nov 24, 2008:
17 Media Times Fortnightly update on the Indian media and entertainment industry Nov 24, 2008 Edelweiss
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In the Confectionaries Sector, TV advertising scenario in H1 2008 was as follows 18 :
There was significant advertising The top 5 states that accounted for 84% share of of Confectionaries on Regional Channels Confectionaries Sector on TV:
33 BRAND PLACEMENTS: Product placement is a form of promotion in which advertisers insert branded products into programming in exchange for fees or other consideration.
Product placement takes three basic forms: (1) visual, i.e., where a product, logo, or sign is shown; (2) auditory, i.e., where the product is mentioned; or (3) where the product is used or plays a role in the program.
Although product placement has been used for decades, it has become much more prevalent in the past few years. The amount of money spent on product placement increased from $190 million in 1974 to $3.458 billion in 2004. 19 From 1999 to 2004, the overall product placement market grew at a compound annual rate of 16.3%.
Product placement spending in 2005 is expected to increase 22.7%, to a total of $4.24 billion. One study found that as many as fifteen branded products appear in every half hour of network programming and that 40% of these are product placements 20 . Product placement is also seen as a response to new technologies that allows consumers to avoid watching traditional advertisements on television. An article in the New York Times describes the goal of product placement as regain*ing+ the attention of consumers who can avoid advertising by using digital video recorders, satellite radio and digital juke boxes.
Digital video recorders (DVRs) such as TiVo, and remote controls allow viewers to skip over traditional advertisements. A study by Media Planning Group found that 90% of people with DVRs skip commercials in recorded programmingand just 16% watch the ads when viewing live TV, rather than doing something else or channel hopping. Product placement is common in childrens movies. For example, Walt Disney Pictures Herbie: Fully Loaded has been described as a product-placement movie gone wild.
In Spider-Man, Spider-Man uses his web-spinning power to retrieve a Dr. Pepper.
Other recent examples of childrens movies with paid product placement include Madagascar (Coca-Cola, Dennys), Scooby-Doo 2 (Burger King, Gatorade), Fantastic Four (Burger King, Pepsi, Kool-Aid, Mountain Dew, Oscar Meyer), and Spider-Man 2 (Dr. Pepper, Fritos, Pop-Tarts). Massive, an advertising agency, is placing products in computer and video games for such advertisers as Dunkin Donuts and Coca-Cola. 41 According to Massives CEO, *a+dvertising is seamlessly integrated into games [and] takes many forms: billboards, posters, branded messages on delivery trucks and computer and TV screens.Massive uses technology that allows different advertisements to be inserted depending on time of day, geography, or other factors. Product placement is also turning up in other, less-expected places. In recent years, a number of counting and activity books for very young children have featured branded snack foods and cereals.
McDonalds recently hired a marketing firm to encourage hip-hop artists to integrate the Big Mac into their songs.
19 Restricting the marketing of junk food to children by product placement and character selling Angela J. Campbell 20 Verisimilitude or Advertising? Brand Appearances on Prime - Time Television - R.J. Avery & R. Ferraro,
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OUTDOOR (HOARDINGS) + STREET FURNITURE + SHOP DISPLAYS: When one thinks of Outdoor Advertising, they usually think of the colorful billboards along our streets and highways. Surprisingly, also included in the "outdoor" classification, however, are benches, posters, signs and transit advertising (the advertising on buses, subways, taxicabs and trains). They are all share similar advertising rules and methods. Outdoor advertising reaches its audience as an element of the environment. Unlike newspaper, radio or TV, it doesn't have to be invited into the home. And it doesn't provide entertainment to sustain its audience.
35 Some advantages of using Outdoor 21 : Since it is in the public domain, Outdoor Advertising assuredly reaches its audience. People can't "switch it off" or "throw it out." People are exposed to it whether they like it or not. In this sense, outdoor advertising truly has a "captured audience." It's messages work on the advertising principle of "frequency." Since most messages stay in the same place for a period of a month or more, people who drive by or walk past, see the same message a number of times. Particular locations can be acquired for certain purposes. A billboard located a block in front of your business can direct people to your showroom. Or you can reach rural areas efficiently by placing a billboard in each small town. Outdoor advertising is an excellent adjunct to other types of advertising you are doing. In fact, it is most effective when coupled with other media. Some disadvantages of using Outdoor 22 : Outdoor advertising is a glance medium and at best, it only draws 2-3 seconds of a reader's time, hence the message has to be quick and eye catching Messages must be brief to fit in that 2-3 second time frame. Ninety-five percent of the time, either the message or the audience is in motion. The nature of the way you have to buy outdoor advertising (usually a three month commitment) is not conducive to a very short, week-long campaign. When ones goes in for outdoor advertising, location is the most important criteria. High traffic areas are ideal. We propose to use the following outdoor touch points: Hoardings, which are part of the Companys existing strategy for Wowie, are one of the best, as they have high frequency, even though the reach is low. This makes them ideal as a medium of communication especially when the when the TG is concentrated in a particular area. The children could have a glance at the colourful hoardings while
36 travelling with parents or going to school. One of the biggest advantage of this medium is that is not as expensive and it attracts the attention of many people at the same time.
To evaluate the effectiveness of a hoarding it is very important to consider certain parameters like visibility, angle of vision, hoardings of competitors, if the hoarding is lit or unlit. Displays on buses: Are highly visible to children while they are travelling. Tying up with fun zones / amusement parks: India today has over 20 amusement parks spread across Tier I and Tier II cities - Growing from a US$50 million industry to a US$1.2 billion one in just a decade 23 . Hence, these amusement parks could provide a good platform for the brand in the form of an effective touch point. Being in the amusement park / fun zone / video game parlour the brand will surely be able to convert the kids into the purchasers as once they are in happy mood, chocolates are one of the first things kids ask for. Here again, displays can be given to the outlets as explained in point 1. Also the prizes can also be sponsored by the brand at such places. Attractive displays at shopping malls: Kids even if going with their parents dont depend on their parents choice for buying a chocolate. They have their own sets of likings and preferences and are the main decision maker and influencer when it comes to buying chocolates. The approximate cost of putting up a stand is Rs 2000 per month in a mall. Reach is not very high as kids do not go out that often to malls with their parents for shopping. Generally, chocolates are bought from nearby stores only. For hoardings, factors such as reach and frequency of visit numbers would have to be evaluated on the basis of the location of the hoarding, and also depends of factors such as the density of the population in the specific area.
A glance medium, draws attention only for a few seconds, hence message must be quickly delivered and the viewer must be able to understand it with minimum effort. Works on the principal of frequency. More the visibility the better. Ensure visibility. A medium for all seasons - biggest advantage. Not as expensive as the other mediums, affordable. Lowest cost per thousand views. Newer modes and process can still be tried: digital boards etc, would appeal more to the public and the TG to be specific.
37 POP/POS DISPLAYS UNDER TRADE ACTIVATION PROGRAMS THAT THE COMPANY CARRIES: This is one of the most traditional and mass based medium of creating an interface between the brand and the consumer. Chocolates are impulse purchase category and are generally bought from nearby departmental stores as opposed to buying from stores which are located farther away from the house. For chocolates, display is given when a minimum of Rs 8000 in sales is achieved. Rate of window display is 3.5% of the business that the outlet gives to the company. Reach is high because when all the shops are taken together, a sizeable percentage of them would already be having some kind of the display or other (in the form of posters, banners, stands, dispensers etc) DISNEY CO-BRANDING: Disney is a top childrens brand and it is quite popular in India with kids loving everything from Mickey Mouse cakes to stuffed toys even before they came with the official Disney seal. To capitalise on this popularity, Disney already has quite a few co-branding relationships, namely Disney has tied up with Airtel to develop mobisodes, games, ring tones, wallpapers and animation in the 'Disney Mobile Theatre' featuring popular cartoons. This would enable the Airtel customers to download the Disney cartoons on their mobile phones. Hence the kids would persuade their parents to download their favourite Disney character, games on their phones. The Company has also organised various dance, musical contests in schools of Delhi called the My School Rocks Contests which has plans to tap schools of other metros like Mumbai too. Why does Disney co-branding make sense? In the words of Walt Disney Television International (India) Director - Marketing and Communication Tushar Shah: "Disney Channel reflects real kids lives, their aspirations and dreams. My School Rocks is all about encouraging kids to express themselves while learning the value of teamwork. As in the movie High School Musical, this contest is about believing in yourself and following your dreams."
38 INTERNET: Disney already uses it website to engage kids by offering free downloads of Cadbury Wowie wallpapers. With gaming websites and social networking sites can be considered becoming increasing popular with upper middle class and upper class kids, the internet medium can be exploited further. Kids today are tech savvy and love to continue be in touch with their friends after the school timings through internet rather than on phone. Reach in Delhi is almost 2.66 million homes 24 . Hence internet has a potential to tap kids in these many households. TV campaigns, parallel with radio and outdoor in select cities (metros). As of now they seem to have primarily gone in with just the TV campaigns. Their ad did well too. Was amongst the top ten scorers in terms of recall, visibility. Internet Usage in India: India has 13% of internet users in Asia and 7.36% that of the world. But the sorrowful fact is only 5.3% of people in India use internet. 19-40 years age group is the (85%) internet user group in India. Approximately, 14% school going kids and 21% college students use the net in India. 46% of net users are graduate, 26% are post-graduate. Among these, 2/3 rd of user use internet 2-3 times a week. Mumbai has the maximum number of internet users (3.24 million) in India followed by Delhi (2.66 million). The top ten cities where people use the internet are Mumbai, Delhi, Bangalore, Kolkata, Chennai, Pune, Hydrabad, Ahmedabad, Surat and Nagpur. The total numbers of internet users of these 10 cities represent 37% of the total numbers of internet users in India. 25
ROAD SHOWS: Apart from TVCs we can also look at conducting road shows. Considering that road shows would not be allowed in school premises, the same can be done in residential areas, and target the TG population in the same.
39 Advantages of road shows: Easier to attract and grab attention. Not primarily a sales event, primarily a promotional event. Difficult to miss, as it is appealing and the whole idea is to generate hype and buzz. Road shows have the unique ability to ensure a direct contact with the customer,and greater potential to generate a positive customer experience by incorporating the Disney characters into the show. Road shows employ a pull strategy rather than a push strategy: they encourage customers to come forward, and sample the brand. Demonstrates willingness of the company to go out and spread the message to the community. Provides instant and ad hoc feedback, hence faster. However, Choosing a suitable venue is critical. Greater coordination and time is required. RADIO Wowie had used the radio as a touch point. The current radio scene in the metro is 26 :
26 Media Times Fortnightly update on the Indian media and entertainment industry Nov 24, 2008 Edelweiss
40 Media Plan Theoretical Overview Media! A Message Delivery System: Media exists primarily to deliver message content entertainment, information and advertisements to a vast audience. Media should be thought of as both carriers and delivery system. 27
Thus Media Planning is a critical cog in the Marketing Strategy of an organization. Media Planning can be defined as "Process of designing a scheduling plan that shows how advertising time and space in selected media and vehicles contribute to the achievement of marketing objectives in an advertising campaign". Media planning, in general terms, is a tool that allows the advertiser to select the most appropriate media to communicate the message in sufficient frequency towards the maximum number of potential customers at the lowest cost. 28
There are 2 basic terms used in Media Planning... Medium: A medium is a carrier and deliverer of Advertisements. It is a broad general category or class of carries such as Newspapers, Television, Radio, Internet, Outdoor, Direct Mail, etc. Vehicle: It is a specific carrier within a Media category. So a Zee TV would be the vehicle in the category of TV. Many a time a specific programs or sections within a medium may be termed as a vehicle. For example, a "Kyunki saas bhi" on Star Plus would be the vehicle in the Television category. Choosing which media or type of advertising to use is sometimes tricky, especially for small firms with limited budgets and know-how. Large-market television and newspapers are often too expensive for a company that services only a small area (although local newspapers can be used). Magazines, unless local, usually cover too much territory to be cost-efficient for a small firm, although some national publications offer regional or city editions. Metropolitan radio stations present the same problems as TV and metro newspapers; however, in smaller markets, the local radio station and newspaper may sufficiently cover a small firm's audience. That's why it's important to put together a media plan for an IMC campaign. The process of media planning consists of the series of decisions made to answer the question, What are the best means of delivering advertisements to prospective purchasers of my brand or service? 29 This definition is rather general, but it provides a broad picture of what
27 Advertising Media Planning Jack Z Scissors and Roger B Barron 6 th Edition 28 http://www.indianmba.com/Occasional_Papers/OP68/op68.html 29 Advertising Media Planning Jack Z Scissors and Roger B Barron 6 th Edition
41 media planning is all about. Within this broad context, a media planner needs to answer specific questions such as the following: How many prospects (for purchasing a given brand of product) do I need to reach? In which medium (or media) should I place my ads? How many times a month should a prospect see my ad? In what months should my ads appear? Where should these ads appear? In which markets and regions? How much money should be spent on each region? When all the questions have been asked and answered, and consequential decisions made, the recommendations and rationales are organized into a written document called a media plan. The media plan determines the best way to get the advertisers message to the target market 30 and hence the optimal Media Mix. The three components of a Media Plan are as follows: 1. Market Analysis i.e. Defining the marketing problem. Do we know where our business is coming from and where the potential for increased business lies? Do we know which markets offer the greatest opportunity? Do we need to reach everybody or only a select group of consumers? How often is the product used? How much product loyalty exists?
2. Establishment of Media Objectives i.e. Translating the marketing requirements into attainable media objectives. Do we want to reach a lot of people in a wide area (to get the most out of your advertising spend)? Then mass media, like newspaper and radio, might work for us. If our target market is a select group in a defined geographic area, then direct mail could be our best bet.
3. Media Strategy Development and Implementation i.e. Defining a media solution by formulating media strategies. Certain schedules work best with different media. For example, the rule of thumb is that a print ad must run three times before it gets noticed. Radio advertising is most effective when run at certain times of the day or around certain programs, depending on what market we're trying to reach.
Figure: Developing a Media Plan 31
30 Advertising and Promotion An Integrated Marketing Communications Perspective George E Belch & Michael A Belch 6 th
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42 In the Media Strategy the target audience must be defined more clearly and thoroughly: 1. Target audience and advertisement must fit each other. a. Kind of argumentation, esthetics, used language etc. b. Appropriate prominent endorsers (e.g.: Shah Rukh Khan for Pepsi)
2. Advertising might communicate to different target audiences with different objectives e.g.: Increase product sales in group 14-29, Increase brand awareness and image in group 30+ 3. Reaching target audiences by mass media advertising means matching a. Target audience of advertisement and b. (Factual) audience of vehicle This is illustrated in the figure below.
Figure: Matching Vehicle Audience & Target Audience To determine the media expenditure, a good way would be to classify brands as shown below:
43 A High Premium Brand need not always be profitable - eg: Kingfisher Airlines where as Low Premium Value - High Profitability Brands include Coke & Pepsi. Hitch Hiker Brands are those that ride on upward growth of sector or category like the brands in a men's formal ready to wear category whereas Dead End Brands are those that have Low Profitability & Premium (in terms of Branding Communication) like Lifebuoy Soap. High Road Brands are usually the first movers in a category and obtain leadership position - thus require a Pioneering Campaign where as Low Road Brands are those that exisit in a cluttered space - thus require Competitive and Retentive Campaigns. Also for the latterm cumulative media spend would be high but individual spend need not be much e.g.: Telecom Service Providers. Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor 32 . The main objectives of Advertising are to Inform, Persuade and Remind. Media Planning is the subset of the Advertising Strategy, which in turn is the subset of the overall Marketing Strategy. In the field of Media Planning one encounters the following terms quite often: o Reach : is a measure of different audience members exposed atleast once to a media vehicle in a given period of time i.e. the proportion of the audience should be reached with the advertising message during a specified period. It is the number of different recipients exposed to at least one advertisement during the specified period of a campaign (usually four weeks) o Coverage : refers to the potential audience that might receive the message through a vehicle. o Frequency: How frequently are the recipients being exposed to message? In other words it is the average number of times an advertisement reaches each recipient in a given period. o Weight: The amount of total advertising is needed to accomplish advertising objectives. o Continuity: The amount of advertising budget being allocated over the period. There are basic types of ways in which the advertising budget is allocated: Continuous Scheduling, Pulsing and Flighting.
32 Advertising and Promotion An Integrated Marketing Communications Perspective George E Belch & Michael A Belch 6 th
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44 An Overview of Various Media 33 :
33 Advertising and Promotion An Integrated Marketing Communications Perspective George E Belch & Michael A Belch 6 th
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45 Advertising to Kids: The world belongs to kids. Kids today mean business. Marketing to kids is seen by many companies as their passport to growth. Companies are therefore using this segment to rake in profits. Kids have a firmer grip over the society than what their parents ever had. Not only are they consumers in their own right, they also have a major influence over the familys purchasing power. "Kidfluence" is the direct or indirect influence kids have over family household purchases. Indirect influence means that the kids preferences are given consideration when parents make a purchase decision. The major driving force behind this sweeping change is the Advertising. Advertising has changed the way kids learn, react and behave to a large extent. On the television, too, only 18 percent of the total viewing is of the kids channels, while 80 percent still continues to be general viewing. One can imagine the vast untapped potential that lies hitherto. Kid-fluence, the Nag Factor and Pester Power: Mom I want this. Dad I want this are the demands, fuelled by marketing tactics that erode the adult wallets. The bug is none other than Pester Power. The power children have, by repeated nagging, of influencing their parents to buy advertised or fashionable items is called as Pester power. The marketers are relying on the kids to pester the mom to buy the product, rather than going straight to the mom- Barbara A Martino (Advertising executive) Kids rule, be they in terms of what to watch over TV or what to buy for themselves or what a household buys. The influence that the kids wield over purchase decisions in a household along with the nagging effect that they have on their parents is growing day by day. With the increase in the number of working couples, their pester power is inversely proportionate to the time available with parents. Their day begins with Tom and Jerry and ends with Dexter. Besides, there has to be in place the entire collection of Barbie, Playstation, frequenting at Mc Donalds, trendiest watch, school bag with Power Puff Girls on it, an independent mobile, television, PC and that too cool branded ones. Kids seem to want virtually more of everything. There is an untiring wish list of food, fun, collectibles, gadgets and brands. Frontline, the PBS documentary series, notes that Millennial Teens influence more than $50 billion adult spending every year and pester an adult 25 times on an average before the desired product or experience is finally bequeathed. Over 95% of kids have pestered their parents for a product promoted on TV, according to a new survey by www.raisingkids.co.uk.
46 Indian Scenario: The arrival of niche channels like the Cartoon Network, Hungama and Toonami has given a big push to the kid power in India. According to some estimates, in 2005, there were more than 120 million tween (children between 8-12 years of age). Among them around 45 million live in urban areas 34 who have the power of determining or influencing the whopping Rs. 20,000 crore worth purchasing decisions on food, mobile phones, apparel, cars and FMCGs. This offers a big temptation to the marketers to treat the pre-adolescents as mature and independent customers and creating a peter power. Using this strategy, they have been successful in making parents almost redundant in purchase decision. Starcom India MD, West and South, Ravi Kiran puts the ad spend per year on products that are for kids' consumption but bought by mothers (parents) like Horlicks and Complan is 12 to 15 per cent of the total Rs 38000 million pie, close to Rs 5000 to 6000 million. "Ad spend per year on products targeted for kids' consumption and also bought by them like chocolates, wafers etc is seven to eight per cent, that is around Rs 3000 million," says Kiran. India's top advertising spenders have included Nestle India at Rs 1507.1 million in December 2002, Britannia Industries which spent Rs 906.3 in March 2002 and Cadbury India which spent Rs 876.7 million in December 2002 - MNCs all which push products consumed predominantly by children. 35
What and how much Tweens spend on (Rs. In Crores) - 2005 36 : Apparel 7000 Gizmos 4650 Food and Eating Out 2500 FMCG 940 Games 150 Entertainment 150 Books 80 CD/DVDs 60
Children and Advertising - Issues and concerns: The effect of advertising on children and their portrayal in advertisements are sensitive issues. Images of children often appear in advertisements, both those designed to sell childrens products and those designed to persuade adults to buy anything from car insurance to carpets. Children are the vulnerable members of the society - in order for them to lead healthy, normal lives, children rely on adults for safety, shelter, food, clothing education and love. The marketers, as adults, have the
34 Pester Power Effect of Advertising Prof Swati Soni & Prof Makarand Upadhayay 35 Pester Power Effect of Advertising Prof Swati Soni & Prof Makarand Upadhayay 36 Tween Power Business Today, January 1, 2006
47 responsibility to depict children in the advertisements in a more responsible and responsive manner. The common issues surrounding children and advertising are: Making children desire things which their parents cannot afford or which they (children) will not be able to use.
Pester power: Encouraging children to pester their parents for advertised product or service.
Showing children in unsafe or dangerous situations which the kids may emulate. Child rights activists are up in arms against MTV and Pepsi for depicting children in a negative light and endorsing child labor in their advertisements. The NGOs are especially peeved with the Pepsi commercial as, they say, it glorifies child labor. The ad shows a child negotiating a dangerous route to reach the Indian cricket team that is waiting for their drinks. The protestors believe that by featuring the entire Indian cricket team, the multinational was depicting India as a whole as endorsing child labor.
Making children feel inferior, especially if they dont buy products and services shown in the ads.
Showing children in a sexual way, i.e. wearing make-up and glamorous clothes.
Advertising soft drinks and high fat/sugar (E.g.: Chocolates) contents to kids. Zuppa, Morton and Mehta suggest that the amount of advertising to which children are exposed has the potential to influence childrens health attitudes and behaviors. Television may be more influential than families in setting childrens food preferences Epstein et al (1995) clarify the link by identifying a co-relation, but not causation between television viewing and obesity. Another study released by the Kaiser Family Foundation on Wednesday, says childrens exposure to billions of dollars worth of food advertising and marketing in the media may be a key mechanism through which media contributes to childhood obesity. In fact, in 2004, food giant Cadbury Schweppes was criticized by the UK government for its Get Active initiative that encouraged schoolchildren to eat chocolate in order to get new sports equipment 37 .
Advertisers have very blatantly entered the schools. They put up posters and billboards in the schools, persuading the cash-starved schools into opening their doors to them by paying for access to classrooms and space for their advertising material and promotions. Web-based groups providing free e-mail accounts and contests with tempting prizes is
48 another strategy that is rampantly used. This almost approximates to a crime because it is nothing less than attacking the natural credulity of the most innocent, most gullible and most inexperienced beings on earth. Media Plan: Cadbury Wowie Communication Objective: Drive Sales of Cadbury Wowie in 4 metro markets Delhi, Mumbai, Kolkata, Chennai to kids 6 10 years Media Overview: Media Objectives: To optimize the campaign reach and cost by selecting the most optimal media. Media Brief:
Media Details: Television: For our campaign, the primary or lead media that we have chosen is television. The top 7 childrens channels catering to kids 4-14 years in Cable & Satellite (C&S) programming across India are: 1. Cartoon Network 2. Pogo 3. Nick 4. Disney 5. Hungama TV 6. Jetix 7. Animax
49 These seven channels compete for the attention of a little over 100 million Indian children, out of which 30 million are Urban. Cartoon Network and Pogo, the kids channels from the stable of Turner Network are the # 1 and 2 destinations for kids in India respectively according to latest viewership ratings by the TAM media research 38 . As per the figures, released by the TAM media research, Cartoon Network and Pogo enjoyed a combined market share of 45% in the kids entertainment scene, thus maintaining their position as the Number 1 and 2 respectively kids channels. What is more, all of the top 100 transmissions of kids shows in 2008 belonged to the two channels. Due to this, advertising on these two networks is the costliest with Prime Time Effective Rate excess of Rs. 10,000 / 10 secs. The channels # 4 - 6 on the above list are owned by Walt Disney International (India). We believe that it would be most prudent to advertising in a medium level channel in order to get more TV ad spots at lower costs plus also be able to better channelize our funds towards other supporting media. Targeted at tweens aged 8-12 years, Disney Channel programming is available in English, Hindi and a two hour prime-time slot in Telugu. Their combined reach is over 50 million homes and Star India is the exclusive distribution partner for both channels. Through the terrestrial network, Disney Channel reaches over 122 million homes. 39
Jetix, the 24-hour basic cable channel, is home for Disney animation and live action heroes including Spiderman and the Power Rangers. Targeted at kids aged 6-10 years, Jetix programming is available in Hindi, English, Tamil and Telugu. 40
In July 2006, The Walt Disney Company acquired Hungama TV, a 24-hour Hindi language Indian childrens television channel where local content development is key. Hungama TV is targeted at kids aged 4-14 years. 41
Cartoon Network and Hungama are leaders among kids channels in the all market and Hindi Speaking Market respectively. However, while Hungama is doing very well, Jetix and Disney Channel have fallen behind. 42
50 We choose not to advertise on Disney, despite the apparent synergy in brands, because of the relative reach-cost disadvantage it has over the other channels. We also would not like to drive our costs excessively high by choosing to advertise on Cartoon Network 43 . Viacom Medias Nickelodeon in India began broadcasting in 2001 and has had ups and downs in its popularity. The lifespan (still running) of the network can be divided into three phases: 2001-2003, 2004-2007, 2008-Present. When the channel initially started, it was available in English and soon moved on to only Hindi shows, which was a flop and the channel lost popularity and was losing against Disney Channel India. The channel's lifespan is as follows 44 : Span Rating Category 1: 2001-2003 Good Category 2: 2004-2007 Average Category 3: 2008-Present Excellent
Cost: The RODP rates for Nick presently are in the range of Rs. 1500-2000 per 10 sec
RODP 0700-2300 Mon-Sun 1500-2000/10 sec
Fixed program spots have differential rates based on the category of program the brand chooses to buy spots on...the rates look something like this
Rate Grid Category Program Time Band Day Effective Rate Chocolates Ninja 1400-1500 Mon-Sun 5000 1800-1830 Mon-Fri 5000 Tricky TV 1830-1900 Mon-Fri 5000 Perman 1900-1930 Mon-Fri 5000 New Shows - MC/JSK TBA TBA 5000
Reach: Nicks reach in the Hindi Speaking Market i.e. North + West + East is approx 30%. Nick is a predominantly a Hindi channel with the option of English feed on DTH. Since the project has defined the markets as the 4 main metros, according to sources from the channel, we may assume a reach of 25% in these
51 markets. 45 In fact according to Adex India, 65% share of Kids genre advertising was contributed by Hindi Language channels in H1 2006. 46
Also, Hindi entertainment television is the fuel for growth in the Cable and Satellite television industry with 46.8 per cent share of total viewership and 57.4 per cent share of total advertising revenue. 47 According to the National Readership Survey 2005, of the 60 million homes in that have access to cable and satellite television, 21 million are from Tamil Nadu and Andhra Pradesh. However, as Rajat Jain, managing director, The Walt Disney Company (India) puts it: "Unless you are a Hindi channel you will never be recognised as a mass channel in India."
Sudha Natrajan, Joint President, Lintas Media Group believes that Kids channels are here to stay, they are very important in whole lot of plans which are directly affected. All kind of adult brands which advertise on kids channels get significant GRPs from kids channel. For example if cost per rating point (CPRP) of GEC channel is at X then CPRP of Kids channel will be at half X or even less than that or almost 1/3rd of X. 48
In order to optimize reach and costs, it would be prudent to select RODP that would ensure that we get 18 20 spots per day. We think that a focused 30 day campaign on this channel would be ideal. (Frequency)
Channel Program Name No. of Days Duration of Spot FCT Rate per 10 secs Total Cost Nickelodeon RODP 30 30 secs 18000 Rs. 1500 Rs. 27,00,000
OOH Media - Hoardings: For Cadbury India the outdoor medium forms an integral part of its advertising campaigns. According to Mr. Sanjay Purohit, Director - Marketing, Cadbury India, With the changing lifestyles of the consumers, ambient media activities provide the strategic engagement touch points for the ever-mobile consumer. 49 When asked about the percentage share of outdoor medium in the companys advertising budget, Purohit noted that the elements of any campaign were
45 Source: Mr. Bikash Kundu National Sales Head, Nickelodeon 46 http://indiantelevision.co.in/tamadex/y2k6/nov/tam46.htm 47 An Analysis of Hindi Mass Channel Market in Cable & Satellite Industry - Prasun Goel, PGDM - II, Symbiosis Centre for Management & Human Resource Development, (SCMHRD), Pune (http://www.coolavenues.com/know/mktg/prasun_1.php ) 48 http://www.exchange4media.com/kids/KidsFullStory.asp?section_id=24&news_id=33296&tag=28243 49 http://www.exchange4media.net/OutOfHome/news.asp?section_id=26&news_id=27274&tag=22173
52 decided depending on the theme of the campaign, and thus the percentage differed according to the use. Hence, agreeing with Mr. Purohit, we find that OOH media is optimal for Cadbury Wowie.
Frequency: As part of our campaign for Wowie we would ideally target hoardings at places that would be looked at by our TG. To begin with we would put up hoardings only in the city of Mumbai. Depending on the success of this, in the later stages, also taking the budget into consideration, we would look at putting up the same across the other cities as well. Also, since there is now effective and concrete model of working out the success of this mode of an advertising campaign, one city should be targeted in the build up stages. In the city of Mumbai, we propose the following locations:
1. Marine drive, Chowpatty : According to primary survey done, this is one of the busiest areas of South Bombay. Kids often accompany their parents to chowpatty during weekends. This area has a large spread of schools like J.B.Petit, Campion,St Andes and Cathedral. Kids would pass by this area while going to school and hence there is a high chance of kids viewing the colourful and attractive hoarding. Considering each school has atleast 500 students belonging to the age group of 6-10 yrs and there are 4 schools, this would mean there are 2000 kids. Out of this expected atleast 50% would pass by Marine Drive while going to their respective schools we would be able to reach out to atleast 1000 kids.
2. Juhu JVPD Circle: One of the most important area which is the connecting point of going to many suburbs.
3. Bandra, linking road (near Satgurus)
Primary reasons being: Most busy locations - School kids would pass thorough these locations while going to school, going for outings to the beach with their family or for shopping. In a nutshell, we propose to have three locations in total, across Mumbai, the costings for the same are given in the table appended below. Also, given below are the primarily advantages and disadvantages of using this medium Cost: Cost (only for printing - Mumbai) for the outdoor mediums are: Rs. 11 per square feet for non lit Rs. 23 per square feet for backlit
53
LOCATION ILL/NON ILL W*H PRINTING COST RENT PRINTING COST TOTAL COST Marine Drive,Chowpatty Non ILL 30 x 15 11/ sq ft 135000 49,500 184,500 Juhu JVPD Circle ILL 40 x 20 23/ sq ft 675000 184000 859,000 Bandra near linking road ILL 20 x 40 23/ sq ft 490000 184000 674,000 Total Cost 17,17,500 Reach: For a medium like hoardings, there is no possible model with the help of which we can study the success of this mode and get to know the exact number of people (TG) who would get in touch with the brand with this mode. The best possible method to study the success of mediums like hoardings is to do a check of pre and post awareness levels tests. Same was done for the brand Mentos (chewing gum) by Datamonitor group, where in TOM (top of mind) awareness levels of the office going people was checked. This was done before the hoarding was put right outside the office space as well as after the hoarding was put up. Another recent study conducted showed that the average weekly reach of an OOH Network in Mumbai is 54.6 lakhs. 90% of the audience across Mumbai recalled the OOH screen. On an average per day opportunity to interact with OOH Media screens is 7 to 8 minutes depending on the vertical space across the city. Hence this could be an effective touch point with total reach of 3.8 Crores for the 7 Week display. 50
Road Shows:
Proposed location for conducting activities in the 4 cities: Schools Residential Areas
We propose to conduct events in the four metros. Essentially, for an activity of such sorts, the primary objective is to increase brand awareness/ theme awareness and promote a product. They promotional activities do not have a direct impact on sales, rather they focus on creating a buzz about the brand and spread awareness along with curiosity. Considering that our product is targeted at kids between 6-10 years, the primary objective of the proposed activity to touch the consumer, making them aware about the product. This event to will primarily for the purpose of creating a hype and knowledge/awareness about the brand.
50 www.medianewsline.com
54 Activity Flow:
* Concept of Disney Meter: The Emcee would seek the attention of kids and bring them onto the canter. The participants would then be asked questions on cartoon characters. All correct answers would call for a Cadbury Dairy milk wowie chocolate to be presented. A total of three questions would be asked to all of the participating kids. The manner in which the activity would be carried out is mentioned above. The places to be targeted for such an event remain to be of crucial concern while planning out such an event. The costing for this activity is worked out below. Cost Cost Head Qty Rate Days Amount (INR) Fixed cost Fabrication of Tata 407 - As per designs Side Panels 10x2 45,000 1 45,000 Back Panel 7x2 Flooring-Flex 10x7 Branding Front & Back Panel 10x7 Driver cabin Back panel 7x7 Painting & Repainting Stairs Muncipal corportaion Permissions 3 10,000 1 30,000 Promoter Attire (T-Shirt) 312 75 1 23,400 Team assembles Set-up Promoters engage the TG Emcee engages the TG and bring them to the center Kids are tested on Disney Meter* Participants are "rewarded" with Wowie chocolates Team moves to next location on itenary
55 Sound & light System 3 55000 165,000 Hire Charges for Float during Fabrication & Dismantle 3 1200 4 14,400 Total Fixed Cost 277,800
Variable cost Hire Charges for Tata 407 with Driver & helper 1 1400 102 142,800
Main Activity Qualis for Crew & Material 1 1300 76 98,800 Generator with Fuel 1 1500 76 114,000 Permisisons - 2 Locations per day 2 3200 76 486,400 Male MC 1 2500 76 190,000 Male Promoter 2 500 76 76,000 Female Promoters 2 600 76 91,200 Supervisor 1 650 76 49,400 Helper 1 200 76 15,200 Misc: Reporting, Communciation, Photography, Refreshments (12 hrs work) 1 250 76 19,000 Total Variable Cost 1,282,800
Maintenance 3 5000 15,000 Total Cost (FC+VC) 15,75,600
Sampling Cost Cost Head Qty Rate Days Amount (INR) CADBURY WOWIE 4000 8 16 512,000 Total 5,12,000
Frequency: i.e. number of days and locations the activity needs to be run - Locations: 4 cities, 4 locations per city, an activity of one day each (depending on budget)
Reach: For an activity like this, it can be safely assumed that 30% if the TG would actually sample the product and almost 100% would become aware of it. (Source: Business World) Considering this we would target areas/schools where in we would have at least 200 plus kids between the age group of 6-10 years in each city. Hence we would essentially look at reaching out to about 10,000 kids per city and 40,000 kids, nationwide. Out of these we expect around 1500 of them to have actually sampled the product. Considering this, we expect the cost per contact to be about Rs 50 (2,000,000/40000) for this medium.
56 POP Initiative at Kirana / Mom & Pop Stores: The countrys retail trade, according to the commerce minister, is expanding by 22% p.a. with the addition of some 25 million middle-class consumers. Servicing this robust growth certainly needs massive new investment in capacity creation. 51
According to Arvind Singhal, Chairman, KSA-Technopak India, within the next 10 years, the total population of retail outlets will actually substantially increase from the current estimate of about 0.68 million to 1.29 million 52 . With consumer incomes are being supplemented with a steady, rapid rise in consumer credit, retail spending will rise from the current level of about Rs 11,50,000 crore (spent through conventional "retail" channels Kirana stores) and the overall level of consumer spending is likely to rise to over Rs 18,00,000 crore (Rs 18000 billion) by 2011. Moreover, CRIER sees no major impact on kirana shops after the entry of modern retail chains. 53
The modern retail businesses is presently estimated to account for only Rs 200,000 crore (Rs 2000 billion) of the consumer spending and the organised sector accounts for just 5% of the trade 54 . Hence we believe that it is imperative that the company concentrates on incentivizing the smaller Point of Purchase outlets i.e. the Kirana stores as the final critical piece in our media plans to succeed. Making changes in its distribution network, Cadbury split its sales and marketing team between its mass (confectionery) and core brands in 2003. According to Bharat Puri, Managing Director, Cadbury India, Chocolates get retailed at larger outlets while all the products below Rs 3 are sold via a different distribution network. In 2004, Cadbury's distribution network reached out to six lakh outlets each for its confectionery and chocolate brands 55 - today it covers over fourteen lakh outlets 56 . Assuming that 25% of these outlets are in the 4 metros that form our target market and Wowie is sold through 50% of such outlets, we are to looking to possibly incentivize 3.5 lakh stores realistically 1 lakh key stores would be good as that would give us a reach of at least 1 x 50 views or 50 lakh
57 eyeballs per day (assuming 50 is the footfall per store per day) or 2.5 crore overall eyeballs over a 50 day period (Reach). The SundayET (June 2007) survey revealed some interesting insights 57 into the relationship that FMCG companies share with kirana stores. A significant 32% of kirana store owners across the country admitted that their relationship with FMCG companies have deteriorated due to emergence of modern trade, while surprisingly Chennai store owners have said that it has improved. The survey has also shown that 49% of the total respondents (kirana stores) admitted to being plagued by low footfalls, while only 8% have shown an increase in sales. Hence we believe that such an incentive scheme would be a powerful touch point for us to reach maximum consumers directly, while helping us to improve our relationship with the vendors (for Cadbury as a company) thus gaining competitive advantage. Cost
The above table shows the various incentive programs that 3 major FMCG players have for POP displays. If we assume Price Per Display as Rs. 200 per month, for 1 lakh stores, our total cost would be Rs. 2 crores per month. So for 50 days the total cost of this exercise would be Rs. 3.33 crores. Cost per contact = (3.33 / 25) = Rs. 0.1322
57 http://economictimes.indiatimes.com/Features/The_Sunday_ET/Special_Feature/Get_set_for_NextGen_local_stores/articleshow/2111949.cms Programs Operational Yes Yes Yes Jharokha for Retailers. For Retailers - Exclusive Parle Shop Kings for Wholesalers. Udaan (for retailers) For wholesalers - Project Bandhan Rs 3500 purchase pm for Jharokha. Only A class outlets (On achievement Rs 10000 pm for Kings Minimum purchase of Rs 10000 of targets given) 1.) Under Jharokha, one 1.) 2.5 % given to retailers per display. 1.) Under EPS, 1% on target achievement. window and 1% extra on target 2.) 1 point per Rs 1000 purchase to wholesalers. Quarterly lunch also organized and achievement Points accumulated annually and gifts retailers are made to visit Parle factories. 2.) Under Kings, 0.75% additional redeemed. 2.) Under Bandhan, Every purchase of Rs 500 margin and cash discounts to yield one point. One point equivalent to Rs 5 till 100% of target, Rs 6 in case of 110% of target and Rs 7.5 in case of 110%+ Dabur Reckitt Benckiser Rs 250 pm (for key outlets) Rs 150 pm (for non key outlets) 2.5 % pm Price per display Program name Eligibility - For programs / displays Benefits offered Parle Foods
58 Summary of selected Media Touch Points: Touch Point Total Cost Frequency Reach Cost Per Contact Television - Nickelodeon Rs. 27,00,000 4 Citys 30 Days - RODP 25% of C & S Hindi Speaking Market* - OOH Rs. 17,17,500 One City (Mumbai) 50 Days 3.82 Crore Eyeballs Rs. 0.0445 Road Shows Rs. 15,75,600 + 5,12,000 = Rs. 20,87,600 4 city each for 7 days 10,000 per city i.e. 40,000 cumulative Rs. 50 (approx) POP Store Displays Rs. 3,33,00,000 4 Cities 50 Days 1 Lakh Stores = 2.5 Crore Eyeballs Rs. 0.1322 Total Cost Rs. 3.94 Crores * Company Sources Justification for Advertising Budget = Rs. 4 Crore (approx): Corporate India is rediscovering the power of publicity. As demand conditions eased out in 2007-08 it stepped up advertisement expenditure to reap the benefits of higher demand. The move has paid good dividend. It has achieved robust turnover growth last year following buoyant demand conditions. An ET survey of 100 large private sector companies finds that their aggregate sales turnover has increased 25.4% in 2007-08. Apparently, much of the success in achieving higher topline growth in 2007- 08 had its origin in escalating advertising expenses. Net sales of Cadbury grew by 25.4% in this period following 29.2% rise in its ad expenditure. 58 Thus to drive sales of the brand Wowie, we believe that this budget is necessary to support the campaign and the media plan presented.