TITLE OF THE REPORT:

“COMPARATIVE ANALYSIS OF ADVERTISING AGENCIES”

 PREFACE

It is a matter of great honour for me to present before my humble readers this

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

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 ACKNOWLEDGEMENTS

EXECUTIVE SUMMARY

1. OBJECTIVE :

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

2. METHODOLOGY :

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

To facilitate in my operations, I had first chalked out a detailed questionnaire covering

in length all questions that would serve the purpose in the most efficient and
productive way. The preparation and the formulation of the questionnaire was on the
basis of many considerations viz., the time that the answeree would require to give me

3
 the required answers, the importance of that time and the cost involved. A copy of the
said questionnaire is included elsewhere in this project as an Annexure.

Although the efforts were directed basically towards obtaining information required
for the study from primary sources to the maximum possible extent, due to factors like
lack of co-operation anticipated from stalwarts and internationally acclaimed agencies,
considerations of these agencies over secrecy of data regarding their operations, lack
of time for answering the questionnaire and unavailability of the persons-in-charge, I
also had to resort to secondary sources like websites, magazines, newspapers etc.
Bibliography of these sources forms a part of this Project for ready reference of the
reader.

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

3. CONCLUSIONS :

During the course of this study I have observed many a facet of the advertising
agencies ----- their strengths, their weaknesses, their opportunities and threats which
deserve a mention :
⇒ Most of the advertising agencies are basically interested in catering to just the
needs of the consumer irrespective of the nature of the product or service
proposed to be advertised.
⇒ The primary objective of the agencies is basically profit generation and profit
maximisation.
⇒ The agencies conduct a SWOT of the client but not of the product at the time of
accepting an assignment.
⇒ There is not much of a dynamism in this agencies as far as expansion plans are
concerned, diversification objectives are involved or specialisation motives are in
question.

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⇒ Not much is done by these agencies for the social welfare and advertising of
social values
⇒ The agencies are highly committed to their activities but sometimes they tend to be
over-professional in their attitudes, over-reserved in the choice of strategies, over-
confidential in their operations and over-aggressive in competition.
⇒ Not many agencies are laying too much emphasis on selection of proper human
resources or managerial personnel. They appear over-burdened by objectives of
cost control.
⇒ There is not proper training imparted to people working in the modestly
positioned advertising agencies. Due to this, there is lack of specialisation,
improvisation and dynamism.
4. RECOMMENDATIONS:
The following are recommended in view of the importance and the strategic position
occupied by these agencies :
⇒ The advertising agencies should function in a healthily competitive
environment rather than in an aggressive world of cut-throat
competition.
⇒ The agencies should definitely give importance to profit
maximisation but at the same time function in public interest as
far as charges and quality of products is concerned.
⇒ The agencies should also conduct a SWOT analysis of the products
to be advertised at the time of accepting assignments
alongwith the routine SWOT analysis of the clients.
⇒ There should also be a provision for staff training whereby the
staff is properly motivated and educated for the roles they perform
in the organisation leading them to specialisation and perfection.
⇒ The advertising agencies should also have a perspective of tapping
new avenues, creating mew markets and pursue global
expansion for the benefit of themselves and for the country at
large.

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

CH 4 ADVERTISING AGENCIES
1 AK
1.1 The Whereabouts 23
1.2 Modus Operandi 23
1.3 The Canvas on which AK paints its product 24
1.4 How can I know about AK? 24
1.5 SWOT Analysis 25
1.6 Case Studies 27
1.7 Awards and Achievements 30
1.8 Who’s who in AK 31
1.9 Divisions of AK 31
1.10 List of Clients 33
2 SUN ADVERTISING NEWS PAPERS
2.1 The Whereabouts 34
2.2 Modus Operandi 34
2.3 SWOT Analysis 35
2.4 List of clients 37
3 BRIGHT ADVERTISING
3.1 The Whereabouts 38
3.2 Modus Operandi 38
3.3 SWOT Analysis 38

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 3.4 Canvas on which Bright Advertising paints its product 41
3.5 How can I know about Bright Advertising 41
3.6 Organization Structure 41
3.7 Facilities offered by Bright Advertising 42
3.8 Awards 42
4 MCCANN - ERICKSON
4.1 History 43
4.2 Who’s Who 43
4.3 Modus Operandi 45
4.4 SWOT Analysis 57
5 MUDRA
5.1 History 60
5.2 Pioneers in Advertising Agencies 61
5.3 Divisions 62
5.4 Founder 62
5.5 List of Awards 63
5.6 Major Clients 64
5.7 Organization Structure 66
CH 5 SWOT Analysis of Advertising Agencies-Comparative 67
Study
CH 6 Statistics
6.1 Comparison between Gross Income of Top 25 Agencies 69
6.2 Growth of Advertising Agencies 70
6.3 Top 20 Advertising Agencies 72
6.4 Top 20 Advertising Spenders 73
6.5 Agencies Ranking 74
6.6 2001- Top Ten Multinational Advertisers 75
6.7 2001- Top Ten Advertising Agencies 75
6.8 Comparison of Agencies on the basis of Worldwide Gross 76
Income
6.9 Graph of Growth of Agencies 77
CH 7 Suggestions and Recommendations 78
CH 8 Conclusion 80
CH9 Annexure 82
CH10 Bibliography and Webliography 84

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 RESEARCH METHODOLOGY

Topic : STUDY OF ADVERTISING AGENCIES

1. OBJECTIVE :

The project deals with the study of advertising agencies encompassing a multi-
dimensional discussion on the whereabouts of these agencies, their modus operandi,
their manner and coverage of operations, their strengths, weaknesses, opportunities
available to them and the threats posing obstacles in their journey to the max. This
study shows the diversity underlining their operations and at the same times the unity
in aims, objectives and target. As during the preparation of this project, some
inevitable obstacles and natural hindrances restricted the scope of this study just as

8
 these agencies are restricted by many environmental and socio-economic factors,
nonetheless, its a sincerest attempt to do the best possible justice to the said topic.

2. FROM PLACES TO PAPER :

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

(1) Personal visits :

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

(2) Sending questionnaires :

To those organisations that showed their firm unwillingness in attending to me
personally, I sent my questionnaires through internet to the key personnel in an
attempt to convince them into giving some information about the agencies for
which they toil. Some replied back courteously; either disclosing their
helplessness in giving information or informing me to surf their websites and get

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

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

5. DIFFICULTIES FACED :

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 1. Stipulations and urge for strict adherence to the length of this project upto
a maximum of 80 pages forced me to run the merciless scissor on many points.
The pen was on but the papers were gone.
2. Lack of co-operation from the stalwarts and the internationally acclaimed
ad-giants has been the biggest obstacle in the way. Though, they are very much
justified and I give due consideration to their urge for maintaining confidentiality
about their operations and financials, I still believe that had this information,
however explanatory it is, been obtained from them directly, it would have
definitely made neighbours' envy and owner pride.
3. Unavailability of concrete sources of secondary data was another
hindrance. Though websites form an exception, barring them there was hardly a
source that carried some potential in meeting the requirements. Prestigious
publications like A & M have faced shut doors of printing presses and a
replacement is still hiding in some unknown corner of invisibility.
In a nutshell, all these ingredients which have gone into the making of this recipe
wait a verdict from the readers for their taste.
INTRODUCTION

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

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

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Today everyone advertises – from crèches to crematorium ,from hotels to hospitals, from
clubs to pubs,from marriage bureaus to lawyers…… well name it and you have it.
Everyone needs recognition, from a 6 month baby in the cradle to a 60 year old preparing
for a graveyard, from a beggar to a billionaire…… everyone wants you to recognize in a
train or in a plane , irrespective of what you are. In the yesteryears , everything was
considered fair in love & war and advertising . It does not mind if you have to pull
someone down, important is that you should rise.

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

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

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

Today, the exposure of every individual to advertisements and advertising has increased
manifolds than what it was in the past. At least they have turned out to be major trend-
setters and torch-bearers for people like us showing us the way to the magnanimous
world of sophisticated products & services. However unethical and materialistic these

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agencies may be, at times in a bid to grab the lion’s share of the buyers’ market, it is
doubtlessly certain that without these agencies we would have never come out from the
age of transistors to reach the modern age of home theatres. Well, every cloud has a silver
lining to it.

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

Today, may products like chocolates and butter come to be identified by their brand
names like “CADBURYS” & “AMUL”. On the other hand, many others are identified by
their slogans, catchlines & punchlines devised by the advertising wizards like
“BLACKMAGIC MOTION PICTURES” for their clients’ products like “Hamara
Bajaj (Bajaj Auto)”, “Utterly Butterly delicious Amul (Amul)”, “A gift for someone you
love(Cadburys’)”, “Yeh Dil Maange More (Pepsico)” , “Taste the Thunder (Thums-Up)”
etc.
Before we go ahead with the discussions about the advertising agencies & the brains
behind them, it’s pertinent to bring to limelight the benefits which we, as a society, are
deriving from these agencies and the not-so acceptable traits.
PRESENTING...
The pros…
(1) Creating awareness :
Due to the increasing role of the advertising agencies and so-called dominion over
our minds, today the level of consumer awareness could be well adjudged from
the fact that even a toddler identifies in the spur of the moment an ad of

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 Cadburys’ chocolates or Amul Butter been run on the screen of the idiot-box
ornamenting our spacious drawing rooms.
(2) Enabling wider choice and access to products :
So many products and so many ads for each of them…leaves the poor customer
gasping for some free space. Well, with the bombardment of so many
commercials, universal hoardings, from advertisements stuck on the walls of the
building compounds to those stuck on the walls of the railway compar”ents, the
customer has multitude options and ample of choices to really get “ better than the
best”. Well, people are after all paying handsomely for their requirements and
they deserve choices and options. But, it all owes to these agencies who have
spread out before us 10 different types of toothpastes for making out teeth the
whitest and the hardest, 100s of moisturizers for giving the best glow to our skin
an all sorts of luxuries which have become more necessary than the necessities.
(3) Uplif”ent of standard of living :
Well, its said that “Money makes a mare go”. Today, this not be any more
emphasized as everyone knows that depending on the financial background,
people can get the best of everything. From a cycle to a car, or from a dhaba to a
restaurant, the customer knows where he is the most comfortable and is able-
bodied to plan out his budget as he knows the price tags stuck on every product
and service. And all this, is possible because of the constant exposure to media
and publicity.
(4) Necessary for the growth of the businesses :
From the Ambanis to the paanwalla, from the Bachchans to the street-actors,
every soul is convinced of the power of these agencies in giving them a larger
than life size image. Every business house, big or small, though cutting the cloth
according to the size of its coat, needs the services of these agencies to project its
brand image before the laymen and convert these laymen into prospective and
from prospective to loyal customers for their products and services. Revenue
generation is the prime objective behind every business and to rotate the wheel of
success, its important for them to use the services of these think-tanks and always
remain on the topmost rank.

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The cons.....
(1) A cold shoulder to social responsibilities :
The advertising agencies today are not performing to the non-material welfare of
the society. Their commit”ents and obligations to the society are mani-fold. Being
the torch-bearers of the world of publicity and media, they are on a huge platform
from where they can spread messages of public interest in every nook and corner
of the country. Alongwith their professional assignments for profit maximisation,
they can also design propagandas for conveying important social messages like
harmfulness of smoking and drinking liquor, abolishing evil practices and dogmas
deeply rooted in the blood of the rural illiterate, importance of a nuclear and small
family etc. Accepting these assignments for a social cause will not create a dent in
their pockets but will surely go a long way in revolutionising thoughts, attitudes
and mindset of every Indian.
(2) No SWOT of products advertised conducted :
All the advertising agencies are conducting a SWOT analysis of the prospective
clients that approach them with a product or service meant to be advertised but no
one is bothered about a scrutiny of the products to be so advertised. It is not their
business, perhaps it is anti-business; that's the feel and the flavour.

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

The global market has expanded manifold in the last few decades. More and more
products are being launched practically everyday. The companies are engaged in
cutthroat competition to highlight their products to the forefront. Herein enters the

15
glamorous field of advertising. Advertising is actually brand building through effective
communication and is essentially a service industry. This requires the help of the media
to reach more and more people to communicate brand effectiveness and here advertising
agencies comes picture.

The role of advertising agency has been accepted because it provides specialist services
to the companies, which have inadequate services of experts for the promotion of their
goods and services. Many institutions have established the services of advertising
agencies to make their products and services known to the potential consumers.

FUNCTIONS OF ADVERTISING AGENCY:

The advertising agency performs all the managerial functions. Some of these are
planning, creation and execution, co-ordination, accounting, media, research and internal
control.
 Planning: The advertising agency plans the advertising campaign. The
management delegates the responsibility of advertising planning and execution to
the agency. The agency must have a fair knowledge of the firm’s products, its
history, the present market conditions, distribution methods, price level and other
conditions. A successful advertising programme is built on the basis of these data.
 Creation and Execution: Specific advertisements are created. The advertising
copy is written; the layout is prepared; illustrations are drawn; photographs are
finalized; and a correct mechanical form for running it in the selected media is
produced. The advertising agency prepares a suitable advertising copy for
insertion in all the media.
 Co-Ordination: The advertising agency co-ordinates several activities. It often
works with the client’s sales force and distribution network to ensure the long-run
success of the advertising programme. The combined efforts of sales persons,
distributors and retailers ensure maximum sales. Ideas, media, copy and decisions
are co-ordinated properly to project and implement the advertising programme.
 Accounting: The advertising agency maintains proper accounts in co-operation
with the client. The account executives see to it that the agency keeps to the stated
plan. The accountant is in charge of the administration of the advertising
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 programme on the agency side. A misunderstanding arising between the agency
and the client is eliminated by the accountant. The amount of fees received from
the client and the payment of taxes, bills and other charges are accounted for by
the accountant.
 Media: The advertising agency selects the media or a set of suitable media for the
client to reach the right type of audience which is an important factor in media
selection. The rates, circulation, population, audience, income and other important
information are collected for the purpose. It has to see to that the media plan is
carried out properly which is devised to implement the campaign’s
communication objectives. The media experts know all about the media and their
coverage. They prepare the schedule of advertising, publication, data on printing
and the time available from television and radio.
 Research: Research is a key function in an advertising campaign. The decisions
on creativity and media selection are taken on the findings uncovered for
research. Research makes every decision systematic and logical, based as it is on
facts and figures.
 Internal Control: The advertising agency manages its employees, finances and
other resources effectively and economically. It conducts the business behind the
scenes and exercises proper control over activities and funds. Public relations,
sales promotion functions and client contacts are maintained by the management
for the effective operations of the advertising agency.

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 EXTERNAL CLIENT BRIEF

ENTERS THE AD AGENCY

INTERNAL

CREATIVE BRIEF MEDIA BRIEF

CREATION
STAGE CREATIVE PROCESS

COPYWRITING ILLUSTRATING

LAYOUTS

CLIENT APPROVAL

PRODUCTION BROADCAST
STAGE PRINT

TYPOGRAPHY ENGRAVING FILMING EDITING

PRINT AD COMMERCIAL

PRINT MEDIA BROADCAST MEDIA

AD REACHES THE TARGET AUDIENCE

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 TYPICAL ADVERTISING AGENCY STRUCTURE

Chairman & Managing

Director
(Chief Executive Officer)

Finance

Management Administration
Accounts

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

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

Media Media

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ADVERTISING AGENCY # 1

AK
THE WHEREABOUTS
HEAD OFFICE :
#4,Shakthi nagar,
2nd Street,Zamin pallavaram,
Chennai-47.
BRANCH OFFICE :
Panchavarna Complex, 1st Floor,
Next to Pondy bazar,
Pondy Bazar,T.Nagar,
Chennai-17
.

Incorporated in the year 1999, this rapidly-growing “FULL SERVICE” Agency located
at the above-mentioned places has today achieved for itself a decent position in the
jampacked arena of the biggies and is continuing its progressive march.
It is solely indigenous with no foreign collaboration or foreign equity participation;
something really very praiseworthy.

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

20
makes a complete assessment of such a product or service, based on the representations
and the explanations given by its client in terms of the life of the product, its
marketability and its commercial value. Continuing on these lines, the agency also makes
an assessment of the requirements of the client, their budget, cost constraints etc. Finally,
last but not the least, the agency makes an estimate of the benefits, both monetary as well
as non-monetary which it is subsequently in the long run, going to derive out of every
such assignment.
On the basis of such a study made about the product, its target audience and the psycho-
analysis of the creator as well as its creation, the agency then selects the type of media
which is the most appropriate one in terms of the cost constraints laid down by the client
and accordingly intimate the client about the cost-benefit ratio of the entire exercise. So,
it’s a thorough professional approach wherein the client is rest assured about the benefits
he is going to reap from the seeds he is planning to sow in the field of advertisement.
Ultimately, its not a no-win no-lose situation for both of them but is entirely a winners’
outcome.

THE CANVAS ON WHICH AK PAINTS THE PRODUCT :

AK provides its customers with a wide-range of media to select from viz., in fine print,
or on celluloid like television, radio, theatres etc.

HOW CAN I KNOW ABOUT AK :

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

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

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

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

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

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

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

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

Secondly, by recruiting and taking more benefits from services of professionals in

this field, AK can overcome its problems of Time Management and slow decision-
making. Instead of having too many heads with different contents in them, it can
always go for quality staff.

23
 AK can also concentrate on making some of the eminent personalities as its Brand
Ambassador, which it has already started as is evident from its forthcoming contract
with a cricket star named Salil Ankola. If it continues to do so on these lines it can
lead to more aggressive response for its clients’ products and services.

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

Another major threat to the growth and development of AK is its over-dependence on

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

CASE STUDIES

1. INDIACOM
1.1 Brief
Build the INDIACOM brand as a most easily accessible and widely disseminated
yellow pages directory.
1.2 Execution
Strategic press spots and hoardings timed with the beginning and end of the
bookings period designed to drive demand for ads and insertions and increase
awareness of the INDIACOM edge.

24
1.3 Result
More recall for the INDIACOM brand as the most easily accessible and widely
disseminated yellow pages directory resulting in more placements in their
directory.

2. HEXAGAN DATA SYSTEMS

2.1 Brief
Position HEXAGAN as a total data solutions company with a wide range of high
quality print solutions for small businesses and corporates
2.2 Execution
A creative campaign focusing on the flexibility of HEXAGAN printing solutions.
2.3 Result
Increased awareness about the HEXAGAN brand name as a provider of superior
printing solutions.

3. INTELLIGENT INVESTOR

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

4. ICICI BANK
4.1 Brief

25
 Establish ICICI Bank as a one stop shop for all banking needs with superior
banking services for small customers.
4.2 Execution
The target audience was identified as the small customer who was perhaps not
getting the best service in big banks. The creatives were designed to inform him
about ICICI Bank's thrust towards them.
4.3 Result
More new accounts for ICICI Bank with its brand firmly established among the
smaller customers.

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

AWARDS & ACHIEVEMENTS :

Best Radio Jingle
[A refreshing jingle for ICICI Finance Ltd’s Fixed Deposit Schemes]
Trade Fair/Exhibition Design
[First prize for Kinetic Honda stall at Auto Expo ‘2001]
[First prize for “Impressive Stall & Innovative Displays” at TECHEX-6 at Trade
Centre, Chennai, November ‘2003]

26
WHO’S WHO IN AK ?
People make all the difference, nurturing talent and allowing space for
independent thought and initiative are our hallmarks which explains the low
attrition rates.
Key people behind the success of AK are -
Sanjay C V - Chief Executive Kathir - Executive Director

Martin - Branch Manager Radhika - Account Director

Karthik - Manager (Media & Events)

LIST OF CLIENTS

ADVERTISING AGENCY # 2

SUN

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

SWOT ANALYSIS OF SUN ADVERTISING NEWS PAPERS :

 STRENGTHS
1. Sun Advertising News Papers has a very educated and well-groomed set of
clientele. They know that the ability to understand and exploit the opportunities of
the evolving media market is key to their future success. Media communication,

27
 and assessing its short, medium and long-term effect, is becoming central to every
business.
2. Sun Advertising News Papers’s aim is to deliver business advantage for its clients
through effective communication programmes that maximize return on inves”ent.
This means partnering with its clients to produce sustainable improved sales by
building brand loyalty, value and awareness. They combine insights into brand,
media and consumer behavior to spark innovative media solutions that are unique
to every brand. The Sun Advertising News Papers approach to communication
planning gets results.
3. The marketing strategy of Sun Advertising News Papers is defined as a “360°
communication”. This means exploiting the whole range of media channels
available to a brand which is fundamental to building effective communication
strategies. As messages reach consumers in new and different ways, they can
refresh and renew a relationship, create excitement and loyalty, even advocacy for
a product. The task is to build a programme which engages consumers with the
brand and reveals the inherent values in a product or service that cause consumers
to say "That's for me". In a nutshell, this type of a strategy helps in building a
brand loyalty and the customer starts relating himself with it.
4. Sun Advertising News Papers’s clients are very much impressed with its ability to
work as an international team. The breadth of their service and their strong
coherent network give Sun Advertising News Papers the scope to truly partner
international advertisers who are winning the race for global media effectiveness.
5. Every brand, market and competitive situation requires a unique solution. Sun
Advertising News Papers has a rigorous and proven framework to develop
innovative and creative media solutions throughout its network. Its approach
extends across all media - 360° communication. It works with a suite of
sophisticated analysis tools and research, helping it to understand consumers and
to design media campaigns that deliver measurable improvements in its clients'
business.
5. Incisive management of media delivers business advantage to Sun Advertising
News Papers’s clients. Sun Advertising News Papers has invested over US$30

28
 million on research and tools to manage and measure media effectiveness, across
traditional and online media channels.

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

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

THREATS
1. Sun Advertising News Papers is specializing only in electronic media. This
overdependence on one media only is definitely fatal for future growth and
sustained development. Today, there are many new entrants in the market and
these agencies are making progress by heaps and bounds in all types of media.
Sun Advertising News Papers needs to tap other media also to emerge as a
genuine world leader.
2. Being a multinational agency, it is extremely difficult for small customers to
approach this agency for their requirement. Sun Advertising News Papers should
also concentrate more on Indian market which has a very large base of clientele.
Firms worldwide have also established themselves firmly in the Indian Market
which if Sun Advertising News Papers cannot do or does not do will hamper its
growth and development process.
29
 Bright Advertising Pvt. Ltd
Being a truly professional & competitive in approach, “Bright Advertising Pvt. Ltd.” has
a well-defined and a well-organised method of operations. When the prospective client
approaches them for getting his purpose served, they conduct a SWOT analysis prior to
acceptance of any assignment. Although, this SWOT Analysis is not at all a cumbersome
and patience-testing exercise for the client, it is designed in such a way that the agency
gets a total assurance of the output.

SWOT ANALYSIS OF BRIGHT ADVERTISING :

 STRENGTHS
1. Bright Advertising is a full-service agency providing all types of services related
to the field of advertising & marketing to its clients.
2. It conducts a SWOT Analysis of its clientele to assess their strengths and
weaknesses. It also first understands the requirements of the client, their
knowledge about the field of advertising, the characteristics of the products and
services to be advertised by its client, the type of target market and the cost
constraints under which its client is functioning. This overall study about the
client and its products helps Bright Advertising to devise and develop a proper
marketing and advertising plan for its client which can optimize client’s returns in
the restrictive environment in which it functions.
3. As far as offering facilities to clients are concerned, amongst others, Bright
Advertising also provides its client the facility to make payments of its fees in
installments which goes a long way in helping the client overcome its financial
hurdles, if at all posed on him. This is a major breakthrough in client servicing
and definitely is a major weapon in anyone’s hands to have a stable and a loyal
base of clientele.
4. The top level of organizational structure in Bright Advertising consists of people
who are professionals having the academic qualifications which are must in this

30
 field. Understandably, on this account there is bound to be professionalism in the
approach, attitude and decisions made by the agency for its growth and
development.
5. Bright Advertising offers its customers a wide selection amongst the media for
canvassing their product or services. It advertises in newspapers, uses electronic
media and also provides the facility of online advertising. As the choices are more
for the customers, depending on their requirements, the characteristics of their
products and their cost constraints, it helps them in selecting the proper medium
for advertising their product or service.

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

31
 OPPORTUNITIES
1. With professionals at the decision-making level, BRIGHT ADVERTISING has
an opportunity to expand its operations and diversify itself into new avenues if it
makes a concentrated effort on improvising the strength of professional staff.
2. Making use of the brand image of some celebrities for endorsing the products of
its clients can give it an upper hand and help in having more reputed customers
into its kitty.
3. It can project its achievements before the public and through the medium of
website can lend more transparency to its operations. On these lines, this agency
is working presently and a website is in the development stage.

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

THE CANVAS ON WHICH BRIGHT ADVERTISING PAINTS

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

32
 HOW CAN I KNOW ABOUT BRIGHT ADVERTISING?
Well, being professional and competitive in approach, it is BRIGHT ADVERTISING
who approaches its prospective clients and not wait for the the clients to fathom for it.
So, the client does not have to run in sun and shower for finding a proper canvas for
its product. BRIGHT ADVERTISING provides all the facilities for its client coupled
with a very co-operative in-house, interactive response and hospitality. As far as
payment terms is concerned, BRIGHT ADVERTISING also takes care of the pocket-
size of its customers. So on one hand, it gives you the option to pay the entire fees in
lumpsum, on the other hand it also extends credit to its continuous and creditworthy
customers.

FACILITIES OFFERED BY BRIGHT ADVERTISING TO ITS

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

33
MOMENTUM EXPERIENTIAL MARKETING PLATFORM
Today, consumers take functional features, benefits, quality, and a positive brand image
as a given. What they want are breakthrough service offerings, cutting-edge products, and
brands that they can relate to, connect with and incorporate into their lifestyles.
Increasingly, marketers understand that consumers are living human beings with
experiential needs: consumers want to be stimulated, entertained, educated and
challenged. They are looking for brands that provide meaningful experiences and thus
become part of their lives.
The degree to which a company is able to deliver a desirable consumer experience - and
use brands to do so - will largely determine its success in the global marketplace in the
future.
Trained to think of marketing and branding in terms of experiences, Momentum
Experiential Marketing™ Services create unique, nearly impenetrable emotional bonds
with consumers. These bonds are based on consumers' real experiences with the brand on
every interactive level. Momentum Experiential Marketing™ Services are designed to
deliver the brand experience during both the pre-purchase period (brand in mind) and the
post-purchase period or consumption period (brand in hand). At Momentum, we know
that companies that spend money on acquiring customers (brand in mind) but fail to
deliver on the brand promise (brand in hand) will ultimately fail, causing high
dissatisfaction and high brand switching.

STRATEGIC APPROACH TO DEVELOPING THE BRAND EXPERIENCE

Our goal is to have the brand embody an experience that is valuable, optimal, and cannot
be duplicated by competitors.

MOMENTUM EXPERIENTIAL MARKETING SERVICES

34
The ultimate goal of Momentum Experiential Marketing™ is to create holistic brand
experiences for customers. Our strategic approach is guided by a simple formula:
Brand = Reputation (in the marketplace) + Promise (to the marketplace) + Experience (of
customers)
BRAND = REPUTATION (in the marketplace)
The first step is to develop a Brand Footprint™. The Brand Footprint™ is Momentum's
unique tool for defining a brand's essence. The Brand Footprint™ is a coherent statement
of a brand's meaning and personality.
Specifically it embodies:
• What the brand "means". What the brand "means" is what a brand gets credit for
in the eyes of consumers - its reputation across a number of key dimensions. For
example, Bayer means aspirin, doctor recommended, and prevention against heart
attacks.
• What the brand "is". What the brand "is" is how we would describe the brand's
dominant personality traits - generally those that correspond to its principal meanings.
For example, Bayer is experienced, safe, and versatile.
BRAND = PROMISE (to the marketplace)
The Brand Footprint™ provides critical insight into how the brand is perceived in the
marketplace; this understanding allows us to build meaningful relationships with
consumers. The relationship is a promise that their experience with the brand will be
personally relevant, consistent, meaningful and memorable - an experience that will be
sought after time and time again.
A Brand Promise is essentially a reason for being, a company's long-term ambition for
their brand. It encompasses how the company views its industry today and tomorrow and
the role they want their brand to play in it. It seeks to carve out a premium, non-
duplicable point of differentiation in the marketplace.
A Brand Promise sets forth the foundation needed for organizations to focus in on how
they want the external world to view the brand, redesign operations and strategies in
order to deliver on the promise, and then develop marketing communications to fit with
the image they are trying to portray.

35
A Brand Promise incorporates every aspect of a brand's business model in order to create
a holistic brand experience for the consumer. At Momentum, we know that public
impressions of brands are based only in part on communication and public images. More
than anything, they are based upon the daily explicit and implicit interactions that people
have with a brand. In other words, the Experience.
BRAND = EXPERIENCE (of customers)
Experiences are personal events that occur in response to some stimulation (e.g. as
provided by marketing efforts before and after purchase). An experience involves the
entire living being and can be infused into a product, used to enhance a service, or created
as an entity into itself. Experiences provide consumers a way to engage physically,
mentally, emotionally, socially or spiritually in the consumption of the product or service
making the interaction meaningful and real.
A comprehensive set of Momentum Experiential Marketing™ Service Drivers creates the
optimal consumer brand experience for your product or company.
Momentum Experiential Marketing™ Service Drivers ,
Communications
Advertising
Promotions
Co-Branding
Events
Sponsorships
Product Placement
Visual/Verbal Identity
Name
Logos and Signage
Product Presence
Product Design
Packaging
Brand Icons
Web Sites and Electronic Media
Site Dynamics

36
 In summary, to effectively develop a brand experience that is meaningful and continually
sought after, we must:
• Fully understand the meaning of the brand, its personality and what consumers
are willing to give the brand credit for in the marketplace - Brand Footprint.
• Relate the brand to the consumer in unique, consistent, relevant and meaningful
ways, creating a non-duplicable point of differentiation - Brand Promise.
• Realize the promise in every interaction the consumer has with the brand - The
Experience.
Developing a sound strategy will allow us to determine the best way to actualize the
promise as part of a full-scale consumer experience platform. Momentum Experiential
Marketing™ Services enable us to bring the experience platform to life.

SWOT ANALYSIS OF ADVERTISING AGENCIES - A COMPARATIVE

STUDY
S. Basis
No. Name of the agency

AK Bright Sun Advertising News

Advertising Papers
1 Does the agency
conduct a SWOT
Analysis of its
clients i.e. whether
it assesses the
strengths,
weaknesses of its
clients and whether Yes Yes Yes
it makes an
assessment of the
level of knowledge
possessed by its
client pertaining to
the field of
advertising
2 Does the agency
have any
international tie-ups No No NO

3 Does the agency

enjoy patronage
Mostly the clients are
from any Yes No
multinational
multinational clients
?

37
4 Scope of
Medium Medium Large
operations
5 Does the agency
specialise in any Yes No Yes
one type of media ?
6 Media in which the Print There is no such Electronic
agencies specialise one media in
which this agency
specialises
7 Quality of human The top level of As far as the top As far as the top level of
resource management does not level of management is concerned, it
comprise of people who are management is consists of professional
from the field of adveritising concerned, the people as is reflected in the
or who are having some sort office-bearers are approach and the decision-
of an experience. Though professional making activities of the
they may be well-groomed in people having an agency
their decision-making academic
abilities and framing of background in the
policies, they don't have that field of
proper academic management or
background marketing and
having an
experience in this
field. However,
the number of
people in the top
level who have
the decision-
making authority
are too few and
the line staff is
relatively much
8 Decision-making Largely centralised Largely Decentralised
centralised
9 Area of operation Local as well as international Local Mostly international

10 Clientele base Broad based Not broad based Broad based

11 Transparency of The agency believes in Although the Though, the agency has
operations making its operations agency has not given plenty of information
transparent as is quite created any about its operations on
evident form the fact that a website (which websites etc. it is practically
lot of information can be is presently under difficult for a small
obtained by any one from development) prospective customer to
various sources like being a local and hunch out for them
websites, personal visits etc. a small-sized
agency it is
possible for local
and medium-
sized prospective
customers to
avail of its
services.
12 Types of customers Mostly corporates Every type of Mostly corporates
catered to customer from
individuals to
38
 corporates.

39
 Top 20 Advertising Agencies

RANK AGENCY
1999-00 2000-01
1 1 Hindustan Thompson Associates Ltd
2 2 Ogilvy & Mather Pvt Ltd
3 3 Mudra Communications
4 4 FCB-Ulka Advertising Ltd
5 5 Rediffusion-DY&R
6 6 McCann Erickson (India) Ltd
7 7 R K Swamy/BBDO Advertising Pvt Ltd
8 8 Grey Worldwide (I) Pvt Ltd

40
 9 9 Leo Burnett India Pvt Ltd
11 10 Contract Advertising (India) Ltd
15 11 Euro RSCG Advertising Pvt Ltd*
10 12 Pressman Advertising & Marketing Ltd
12 13 MAA
13 14 iB&W Communications Pvt Ltd
16 15 Triton Communications Pvt Ltd
18 16 Ambience D'Arcy Advertising Pvt Ltd
44 17 Moulis Euro RSCG Advertising Service Pvt Ltd
-- 18 Bates India
17 19 Percept Advertising Ltd
19 20 Saatchi & Saatchi Ltd

Top 20 Advertising Spenders

CHANGE OVER
RANK COMPANY YR. ENDING AD SPEND
PRVS YEAR (%)
1999-00 2000-01
1 1 Hindustan Lever Dec 2000 696.58 -5.60
2 2 Colgate-Palmolive India Mar 2001 213.96 10.30
3 3 ITC Mar 2001 183.32 -0.96
4 4 Dabur India Mar 2001 146.08 21.71
-- 5 LG Electronics India Dec 2000 131.4 70.16
5 6 Nestle India Dec 2000 128.46 13.59
6 7 McDowell & Co Mar 2000 118.94 26.60
7 8 Bajaj Auto Mar 2001 102.53 13.62
-- 9 Maruti Udyog Mar 2000 88.20 34.39
-- 10 Herbertsons Mar 2000 85.93 13.16
9 11 Britannia Industries Mar 2001 85.29 10.75
8 12 Godfrey Phillips India Mar 2000 85.15 30.94
12 13 Marico Industries Mar 2001 79.82 36.03
-- 14 Godrej Industries Mar 2001 77.54 106.55
14 15 Telco Mar 2001 71.89 47.56
25 16 SKB Consumer Healthcare Dec 2000 69.36 61.98
10 17 Tata Tea Mar 2001 64.63 -5.22
-- 18 Hyundai Motor India Mar 2000 63.73 222.52
41
17 19 Hero Honda Motors Mar 2001 61.12 30.57
-- 20 Reckitt Benckiser India Dec 2000 61.01 8.48

Source : www.mind-advertising.com/us/om_us.h”

Agencies Ranking
( on the basis of services offered)
Agency Ranks (On the basis of)
Creativity Client Account
Ability Servicing Planning Ability
O&M 1 2 2
Lowe 2 3 3
McCann-Erickson 3 5 4
Contract 4 6 6
JWT 5 1 1
Mudra 6 4 7
Leo Burnett 7 9 8
Publicis Ambience 8 15 15
Enterprise Nexus 9 14 11
Rediffusion DY & R 10 8 10
FCB-Ulka 11 7 5
Grey Worldwide 12 10 13
R K Swamy BBDO 13 11 12
Bates 14 12 9
Euro RSCG 15 13 14

On the basis of topography

West North East
O&M 1 1 1
Lowe 2 3 3
JWT / HTA 3 2 2
Contract 4 6 5
McCann 5 4 9
Leo Burnett 6 8 NA*
FCB - Ulka 7 7 NA*
Mudra 8 5 6
Publicis Ambience 9 NA* NA*
Grey Worldwide 10 10 NA*
42
Rediffusion DY & R NA* 9 7
Bates India NA* NA* 4
Saatchi & Saatchi NA* NA* 10
* NA = Not Available

2001 Top 10 Multinational Advertisers (Ad Age International Nov 11, 2002)

1. Procter & Gamble Co. Worldwide advertising expenditure US$3,820.1 million

2. General Motors Corp. Worldwide advertising expenditure US$ 3,028.9 million
3. Unilever. Worldwide advertising expenditure US$3,005.5 million
4. Ford Motor Co. Worldwide advertising expenditure US$2,309 million
5. Toyota Motor Corp. Worldwide advertising expenditure US$2,213 million
6. AOL Time Warner. Worldwide advertising expenditure US$2099.8 million
7. Philip Morris. Worldwide advertising expenditure US$1,934.6 million
8. Daimler Chrysler Worldwide advertising expenditure US$1,835.3 million
9. Nestle SA. Worldwide advertising expenditure US$1,798.5 million

COMPARISON OF AGENCIES ON THE BASIS OF WORLDWIDE GROSS

INCOME

S.No. Name of the Agency Worldwide Gross Income (Rs. In millions)

1 Dentsu 2078.1
2 McCann-Erickson 1857.9
3 BBDO 1611.7
4 J. Walter Thompson 1536.1
5 Euro RSCG 1441.2
6 Grey 1321
7 DDB Needham 1214.6
8 Ogilvy & Mather 1135.4
9 Leo Burnett 1072.3
10 Publicis 1066

43
 GROWTH OF ADVERTISING AGENCIES
Year No.of Agencies Year No.of Agencies
1939-40 14 1992-93 591
1949-50 61 1993-94 620
1959-60 74 1994-95 651
1969-70 108 1995-96 702
1979-80 168 1996-97 718
1983-84 310 1997-98 741
1987-88 460 1998-99 750
1990-91 568 1999-2000 757
1991-92 588

44
 G r o w t h o f A d v e r t is in g A g e n c ie s
800

700

600

500

N o . o f A g e n4 0c0ie s
300

200

100

0
1 9 3 91- 9 4 91- 9 5 91- 9 6 91- 9 7 91- 9 8 31- 9 8 71- 9 9 01- 9 9 11- 9 9 21- 9 9 31- 9 9 41- 9 9 51- 9 9 61- 9 9 71- 9 9 81- 9 9 9 -
40 50 60 70 80 84 88 91 92 93 94 95 96 97 98 99 2000
Y e ars

SUGGESTIONS AND RECOMMENDATIONS

The world of advertising and advertising agencies has experienced a revolution. It’s a
jungle out here, the one who slays survives. In an attempt to be fiercer and outsmart the
competitor’s, today the agencies don’t spare a second thought in going to any heights.
Quality is compromised, games are played and the poor customer is made the scapegoat.
Code of conduct is restricted to paper, the reality is different and darker than it appears.
We may find agencies doing some honest business but the names are few and heard once
in a blue moon. In a bid to conquer the world, we have seen many a agency becoming
Alexander. In view of the current scenario and with a vision of the future, the following
recommendations can be cited:-
1) Agencies should accept more social responsibilities and endeavor towards their
maximum fulfillment. They can win the game by winning the customers. Feelings should
not be encashed and emotions should not be auctioned. There have been recent cases of
45
agencies making misuse of situations of immense tension and riots in propoganding their
product in a bid to rake in a big fortune.
2) Agencies must be made to contribute a fixed percentage of their gross incomes for
advocating social cause. This will also help agency earn a very good patronage and
maximize customer loyalty.
3) There should be certain standardization of fees and benchmarks should be laid down
for the advertisements that are put on display on our minds, in aspects of quality,
vieworship.
4) They should improve their accessibility and transparency. Though big agencies cater
to the needs of the elite, they should also be available to the less deprived ones too.
Education and knowledge should be spread through these agencies in the form of
advertisements.
5) Products and services should be made to pass through several tests before they are put
to display. Also a SWOT analysis of the product or the service to be advertised should be
made.
6) After sales-service should be improved and customers should be spontaneously
attended to in times of dissatisfaction and appeal.
7) Services provided should be diversified and new avenues should be tapped for own
growth and for providing better service to everyone.
8) Outsmarting competitors in a bid to capture the market at the cost of quality and
customer well-being should be replaced by healthy competition and a humane touch.
9) Co-operation should be provided at all levels and accessibility even to the master
minds should be improved for better management and better relationships.

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 CONCLUSION
From the study presented hereinabove, we come to know many faces of the multi-
faceted world of advertising agencies, some dark horses and some aggressive lions. Each
and every agency is a world in its own ----- with uniqueness in its modus operandi,
variance in their aggressiveness and intensities and relativity in their positions. From
agencies catering to the needs of localised with a modest level of infrastructure and
human resources, we have seen king-size ones who make it to every year. The aim is the
same, the game is different. The goal is the same, the ball is different. The mission is the
same, the vision is different and the objective is the same, the perspective is different.
They are all preparing the same dish to satisfy guests like us but their recipe is unique.
Their manouverability, vulnerability to threats, opportunities, strengths and their intrinsic
weaknesses posing obstacles in their journey to the sky all vary drastically and
understandably. though the blood running in their veins is the same, their brains are
unique thinktanks. Whatever may be the unity in diversity, the world of advertising is
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very much flambouyant, enthusiastic, glamourous and appealing and so is the fantasyland
created on our minds by the advertising agencies. It's only because of these advertising
agencies that we are subject to mind-boggling bombardment of commercials and
advertisements. This bombardment has not only increased the level of awareness amongst
us but also the stupendous technological, industrial and commercial development but has
also given a new makeover to our static lifestyles.
If knowledge is power, then we are so empowered due to the powerful impact of
the medias on our minds, bodies and souls. Although for these professional-to-the-core
agencies, its nothing but a mint, for us its a revolution. Revolution resulting into
evolution --- of products, services and people. Just like food without salt is indelible, a
day in one's life without an exposure to some new advertisement is unbelievable. Just as
every coin has two sides and every person has two faces, a fair and a dark one, so do
these agencies. All that glitters is not gold and all that is unrequired is also sold.
These advertising agencies have doubtlessly opened many new paraphernalias
and made the wind of revolution blow on our continent. They have enlightened the entire
country, made the life of an ordinary laymen extraordinary, raised the standard of living,
helped in the economic and commercial development, unfolded a red carpet for new
ideas, imagination, innovations and qualitative sophistication but then they sometimes
appear in front of our eyes as skeletons dressed in bridal vein. Why is it so?
Some call it over-professionalism, others call it over-materialism but then we all
know that today everything is fair in love, war and advertising. Every agency wants to
pull down the other to make it to the top. Well, in this cat-race and times of cut-throat
competition, the common layman always gets the maximum benefit since he is
responsible for the bread and butter of these agencies. however, it is also pertinent to note
over here the fact that many a time the audience is subject to foul-play. Unfortunately, in
an attempt to scale the highest peak, the consumer is made a dumping ground where even
garbage is covered by garland for easy dumping. The agencies make use of super-humans
in the field of cricket, movies, T.V. sops to endorse the products and services of the
companies which may also be of a sub-standard quality for they know that imitation and
emulation is in the nerves of every Indian and that glamour always has a mesmerising,
hypnotising impact on nerve cells. It is a very sorry state of this industry that following

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ethics is itself unethical today, and ethical is considered as impractical. The books
propose, the crooks dispose. And every damage to health and peace is backed by the
sincerest of the justifications and the most convincing demonstrations churned out from
the advertising gurus' brain factories.
Take the incident-of-the-day case of soft drinks like Coke and Pepsi. Brands of
multinational giants and advertised so appealingly that they have created an appalling
effect. Too late to realise the fact (or is it ?) and too late to affect the producers' and
marketers' images. Well, it is certain that many injurious products are also publicised as
items of harmless consumption and the buyer is an easy prey to the bombardment of
sophisticated publicity.What is required of these agencies is to unearth the deeply buried
ethics and codes of conduct under the burden of over-professionalism, over-materialism
and selfish profiteering. Though profits are the key benchmarks for every company, no
profit can last on dissatisfaction and denudation of consumer and his welfare.
"A stitch in timesaves nine" and "it is never too late to mend". It will announce a
bright future for producers and advertising agencies that advertise their products and
services if they stitch one button before the shirt becomes buttonless. And ...... buttonless
shirts are immediately discarded.
ANNEXURE

Questionnaire sent to the advertising agencies

GENERAL INFORMATION

 Name of the agency.

 Date of incorporation.
 Location.
 Foreign collaboration, if any?
 Number of branches and the location of their subsidiaries
 What type of advertising agency (Full service, creative boutique, specialist
agency, agency network, subsidiary of large agencies, in house agency)?

INFORMATION ABOUT CLIENTS

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  Name your top clients
 Cost-Benefit Analysis for the agency as well as for it’s clients.
 Do you make an assessment of strengths & weaknesses of the clients
 If a client uses an ad agency to place its ads in different media, how is the
bifurcation of the budget done
 What alternatives are available to a client for placing an advertisement ?
 How does a client approach you for placing an advertisement?
 Regarding settlements of your charges, is it done on a lumpsum basis or in
instalments basis or it finally depends on your client’s convenience.
 How many clients you have who go for a continuous advertisement
package and how many just put it for once ?

ORGANISATIONAL STRUCTURE

 The top team (name of the directors such as media art production so on)
 Give a brief profile of the each of the director , such as their experience in the
ad agency
 Its total staff (organisation chart can be presented)

MEDIAS FOR CAMPAIGNING

 The medias through which you place the ads for the clients
 Which is the most widely used media and cost-benefit analysis for placing an ad
through that media for the agency as well as for its clients
 How do you approach celebrities for endorsing the products/services of your
clients
 Names of the celebrities who have worked for your agency

SERVICES RENDERED

 Its various services

 Duties and function of ad department
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 INFORMATION ABOUT ACHIEVEMENTS / AWARDS

 Awards won if any, best campaign, or any other relevant data

PROBLEMS FACED

What are the types of problems you generally face in this industry ?

BIBLIOGRAPHY & REFERENCES :

1. Marketing Management ---- Philip Kotler
Advertising Management –Amita Shankar
2. Adverting, Marketing and Sales Management- Takur D
3. The Economic Times
4. Brand Equity
6. INA Handbook 2000-2001

WEBLIOGRAPHY
1. www. Indiantelevision.com
2. www.adage.com

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3. www.mind-advertising .com
4. www.AKindia.com
5. www.mudra.com
6. www.eurorscg.com
7. www.mccann.com
8. www.perceptindia.com
9. www.Sun Advertising News Papers.com
10. www.thehoot.org
11. www.mind-advertising.com/us/om_us.htm

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