Final Project

INTRODUCTION TO ADVERTISING

Advertising is a form of communication whose purpose is to inform potential customers

about products and services and how to obtain and use them. Many advertisements are

also designed to generate increased consumption of those products and services through

the creation and reinforcement of brand image and brand loyalty. For these purposes

advertisements often contain both factual information and persuasive messages. Every

major medium is used to deliver these messages, including: television, radio, movies,

magazines, newspapers, video games, the Internet, and billboards. Advertising is often

undertaken by an advertising agency on behalf of a company.

1.1 SECTOR OUTLOOK

The Indian Advertising scenario looks positive, with the growth in 2011 expected to be

about 10.5 per cent. From a growth rate of 19 per cent over 2007-08, the ad expenditure

grew only 4.5 per cent during 2008-09. In India, the advertising expenditure is expected

to reach Rs 246.66 billion by 2011, clocking additional Rs 23.34 billion spends over last

year.

By 2012, ZenithOptimedia predicts that India's advertising expenditure will reach Rs

307.04 billion, growing approximately 37.5 per cent over 2009.

Newspapers will continue to attract maximum spends, with expenditure going as high

as Rs 113.26 billion in 2011. Television will be the second most preferred medium for

advertisers and will clock spends of Rs 100.58 billion in 2011, as per the forecast.

In 2008, 42.6 per cent share of ad spends was by newspapers, followed by 39.8 per cent

by television. Outdoor medium and magazines garnered 7 per cent and 5.3 per cent

shares respectively, while radio and the Internet managed to grab 3 and 1.6 per cent

share of ad spends in 2008.

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If one looks at the 2008-09 ad expenditure figures, the outdoor medium and magazines

have witnessed the most decline in spends, while the Internet continued to grow at 25

per cent.

By 2012, newspapers will see investments of Rs 139.57 billion as advertising spends,

while television will attract spends of Rs 128.01 billion. Outdoor will clock ad spends of

Rs 14.08 billion, while ad expenditure on radio will reach approximately Rs 9.65 billion,

as per the forecast. Advertising spends on magazines will be around Rs 7.29 billion,

while on the Internet, the spends will increase to Rs 6.69 billion. Cinema advertising

spends will amount to Rs 1.72 billion by 2012.

The size of Indian Advertising Industry depends on the following industries.

Industry Current size Projected size by 2011

CAGR

Television Rs 148 billion Rs 427 billion 24%

Filmed entertainment

Rs 68 billion Rs 153 billion 18%

Print Media Rs 109 billion Rs 195 billion 12%

Radio Rs 3 billion Rs 12 billion 32%.

Music Rs 7 billion Rs 7.4 billion 1%.

Live entertainment Rs 8 billion Rs 18 billion 18%

Out-of-home Advertising

Rs.9 billion Rs17.5 billion 14%.

Internet Advertising Rs 1.6 Billion Rs 7.5 billion 50%.

Table 1.1:- Showing the various components of Indian Advertising Industry, their projected

size by 2011 and CAGR (Compounded Annual Growth Rate)


Television

Film entertainment

Print Media

Radio

Music

live entertainment

Out- of- home advertaising

Internet advertising

0 20 40 60 80 100 120 140 160

148

68

109

3

7

8

9

1.6

Advertising Industry(market share in Rs. Billion)

Graph 1.1:- Bar graph showing the market share of various components of Indian

Advertising Industry

1.2 ADVERTISING AGENCY

An Ad agency is a service dedicated to creating, planning and handling advertising (and

sometimes other forms of promotion) for its clients. An ad agency is independent from the

client and provides an outside point of view to the effort of selling the client's products or

services. An agency can also handle overall marketing and branding strategies and sales

promotions for its clients.

There were only 62 advertising agencies in 1958, which increased to 168 in 1978, more than

2.5 times the numbers in 1958. There are more than 500 ad agencies today. The oldest and

largest advertisement agency in India is Hindustan Thompson Associates Ltd. The second

largest advertisement agency is Lintas.


1.3 FOUR TYPES OF ADVERTISING AGENCIES

There are basically four types of ad agencies. They are:

In-house agencies

Creative boutiques

Media buying agencies

Full service agencies

1.3.1 In- house agencies

Some companies, in an effort to reduce costs and maintain greater control over agency

activities, have set up their own advertising agencies internally. An in-house agency is an ad

agency set up, owned and operated by the advertiser. Many companies use in-house agencies

exclusively; others combine in-house efforts with those of outside agencies.

A major reason for using in-house agency is to reduce advertising and promotional costs.

Companies with very large advertising budgets pay a substantial amount to outside agencies

in the form of media commissions. With an internal structure, these commissions go to the

in-house ad agency. An in-house ad agency can also provide related work such as sales

presentations and sales force material, package design, and public relations at a lower cost

than the outside agencies.

Saving money is not the only reason companies use in-house ad agencies. Time savings, bad

experience with outside agencies, and the increased knowledge and understanding of the

market that come from working advertising and promotion for the product or service day by

day are also reasons. Companies can also maintain a tighter control over the process and

more easily coordinate promotions with the firm’s overall marketing programmes.

Opponents of the in-house agencies say that they can give the advertiser neither the

experience nor the objectivity of the outside agency and nor the range of services. They argue

that the outside agencies have a more specialized staff and attract the best creative staff. Also


http://drypen.in/advertising/four-types-ofadvertising-agencies.html

flexibility is higher since if the company is not satisfied with the agency it can be dismissed,

whereas changes in an in-house agency could be slower and more disruptive.

In-house agencies in India are:

Levers - Lintas (previously)

Videocon – Confidence

Reliance – Mudra (when Mudra started out)

1.3.2 Creative boutiques

Creative boutique is an agency that provides only creative services. These specialized

companies have developed in response to some client’s desires to use only the creative talent

of an outside provider while maintaining the other functions internally.

The client may seek outside creative talent for two reasons:

Because he wants an extra creative effort

May be because its own employees of the in-house agency or the agency that he has

appointed do not have sufficient skills in this regard.

The full-service agencies also sub-contract work creative boutiques when they are very busy

or want to avoid adding full time employees to their pay roll. Creative boutiques are usually

found by members of the creative departments of full service agencies who leave the firm

and take with them clients who want to retain their creative talents. These boutiques

generally perform creative function on a fee basis.

Few creative boutiques in India:

RMG David

Vyas Gianetti Creatives

Chlorophyll


1.3.3 Media buying agencies

Media buying agencies are independent companies that specialize in the buying of media,

particularly radio and television. The task of purchasing advertising media has grown more

complex as specialized media proliferate, so media buying services have found a niche by

specializing in the analysis and purchase of the advertising time and space. Agencies and

clients generally develop their own media plans and then hire the buying services to execute

them.

Some media buying agencies do help advertisers plan their media strategies. Because media

buying agencies purchase such large amounts of time and space, they receive large discounts

and can save the small agency’s or client’s money on media buying. Media buying agencies

are paid a fee or commission for their work.

Mindshare

Initiative Media (LOWE)

Starcom (Leo Burnett)

1.3.4 Full – service agency

The function of an advertising agency is to see to it that its client’s advertising leads to

greater profits in the long run than could be achieved without the ad agency. Most such

agencies are large in size and offer their clients a full range of services in the area of

marketing, communications and promotions. These include planning, creating and producing

the advertisement, media selection and research. Other services offered include strategic

marketing planning, sales training, package design, sales promotion, event management,

trade shows, publicity and public relations.

The full service agency is composed of various departments; each is responsible to provide

required inputs to perform various functions to serve the client.


2.1 BACKGROUND AND INCEPTION OF THE COMPANY

Lowe has a complex history tracing back to the foundation of Lintas in 1899. Lintas (Lever

International Advertising) was one of the world's first advertising agencies and following

some large mergers and rapid growth in the 70s and 80s became a dominant and famous

force in the advertising field with accounts such as IBM, Master card, Johnson and Johnson

and of course Unilever . In 1981 Sir Frank Lowe set up Lowe Howard-Spink developing

world famous campaigns for Absolut, Birds Eye and Heineken while growing rapidly.

Following mergers with the then Ammirati Puris Lintas, Lowe Worldwide became the fourth

largest advertising agency in the world in 2000.

Founded in 1939 as a part of Hindustan Unilever, Lowe Lintas is one of India’s largest and

most storied communication groups. Headed by Chairman and Chief Creative Officer R.

Balakrishnan (Balki) and CEO Joseph George, Lowe Lintas employs over 650 people across

eight divisions and nine cities all over India.

Today, Lowe Lintas India is a wholly owned subsidiary of the Interpublic Group, and one of

the star offices in the Lowe Worldwide network. Headquartered out of London, Lowe

Worldwide has over 80 offices in 73 countries and a client roster that includes Unilever,

Johnson & Johnson, Nestle, Ericsson, Sharp, Saab and many more.

Lowe Lintas India leads global and regional communication for several Unilever and

Johnson’s Baby brands. It is a guiding light for Lowe offices in South Asia.

In their early days, the high-value idea was epitomised by iconic characters such as Lalitaji,

the Liril Girl, the MRF Man and Cherry Charlie; today, it is seen in high-voltage campaigns

like Tata Tea’s ‘Jaago Re’, Lifebuoy’s ‘Koi Darr Nahin’, Idea Cellular’s ‘What An Idea’,

Bajaj’s ‘Hamaara Bajaj’, Surf Excel’s ‘Daag Acchhe Hain’ and many more.

Throughout their history they have been a company of firsts, leading many developments

within the advertising industry. Most recently, augmenting the Strategic Planning division

with the discipline of Channel Planning. Channel Planning allows for the strategic and


efficient selection of the relevant media channels for any given task within the context of the

brand idea. This helps to deliver the high-value idea seamlessly across all relevant touch-

points within the Lintas group in a cost-efficient manner.

Lowe Lintas began in 1939 as Lintas, India, the Indian division of Lintas (acronym for Lever

International Advertising), which itself was established in 1899, later a part of Unilever. In

2000, the company changed its name to Lowe Lintas following the global merger of the IPG

networks, Ammirati Puris Lintas and the Lowe Group in November 1999. Lowe Lintas India

was then helmed by Prem Mehta, with Executive Creative Directors R. Balakrishnan (Balki)

and K. V. Sridhar leading the creative function. At the time, with billings of over $12 billion,

Lowe Lintas was ranked as the fourth-largest global agency group worldwide, with offices in

80 countries, while Lowe Lintas & Partners was the second-largest advertising agency in

India, with a turnover of Rs. 750crores In 2007, Lintas India sold the 51% stake it owned in

Lowe Lintas to its international partner, the Interpublic Group (IPG). Since then, the agency

has been a part of the Lowe Worldwide network, which in turn is held by the Interpublic

Group.

Lowe Lintas has produced India's first television commercial, and also introduced the

discipline of Channel Planning to India. It has given India some of its most famous

advertising talent, including Shyam Benegal, Gerson da Cunha, Rama Bijapurkar, Gautam

Rajadhyaksha, Alyque Padamsee and Sumantra Ghoshal.

Key people

R. Balakrishnan Balki, Chairman & Chief Creative Officer

Charles Cadell, Chief Executive Officer

Fali Vakeel, Chief Operating Officer

Shahrook Munsiff, Finance Director

Joseph George, Deputy Chief Executive Officer

Amer Jaleel, National Creative Director

Arun Iyer, National Creative Director


2.2 NATURE OF BUSINESS CARRIED

Full – service agency

The function of an advertising agency is to see to it that its client’s advertising leads to

greater profits in the long run than could be achieved without the ad agency. Most such

agencies are large in size and offer their clients a full range of services in the area of

marketing, communications and promotions. These include planning, creating and producing

the advertisement, media selection and research. Other services offered include strategic

marketing planning, sales training, package design, sales promotion, event management,

trade shows, publicity and public relations.

The full service agency is composed of various departments; each is responsible to provide

required inputs to perform various functions to serve the client.

2.3 VISION, MISSION AND QUALITY POLICY

2.3 a) Vision

Lowe Lintas believes in staying one step ahead of the competition with innovative, original

thinking. The mantra of the company is "Innovate or Die" because " ...in an industry being

crushed by a lack of innovative thinking, anything less is just that-less." The team at Lintas

feels that it is the team’s duty to provide the spectacular results the clients deserve.

2.3 b) Mission

The original philosophy of the agency “Do not outspend the competition, outsmart them.”

basically means not to necessarily spend more money than the competition, just

communicate the message more intelligently. If the work does not work, then come up with

something else.

2.3 c) Quality policy

High Value Ideas In a world where consumers are bombarded by messages from brands (be

they conversations or advertising, at the point of sale or in the repurchase cycle) Lowe


believes that the greatest service is the provision of a High Value Idea. It’s both glue and

context – amplifying and making sense of the messages to people. High Value Ideas are

enduring, persuasive, creatively fertile - and are profound enough to work across all media

channels and around the world

Idea Communities Lowe thinks that in the world of modern communications it’s important

to draw upon a wide range of talent, but it’s cumbersome, expensive and undesirable to

duplicate and support hundreds of offices. Idea Communities is the process by which talent

from all marketing disciplines, and across all major markets can be brought together easily

and freely to produce cross channel work that can span the world. The notion of idea

communities has been recently bolstered by investments in new fields, in particular Huge Inc

( A global digital brand building business ) and Open ( a Global retail activation network)

2.4 PRODUCTS/ SERVICE PROFILE

Lowe Lintas is the mainline advertising arm of the group. The agency has helped build some

of India's largest brands, and claims that a majority of its clients have been with it for over

ten years.

Some of the services offered are Advertising and Marketing Communications, Digital

Solutions, Graphic Identity and Design, Public Relations, Rural Communications,

Healthcare, Direct Marketing, Event Management, Film Production and Entertainment

Marketing.

Lowe lintas India has the following specialized services on offering:-

LinOpinion

LinOpinion is the public relations wing of the group. It is the exclusive Indian affiliate

of Golin Harris, a public relations consultancy within the Interpublic Group network.

LinOpinion offers services like media intelligence, media relations, crisis management,

corporate training, event management and social media management.


Linteractive

Linteractive is the full-service digital communication wing of Lowe Lintas. It offers services

like website development, social media marketing, viral marketing, online media marketing,

interactive CD-ROMs, digital outdoor, mobile marketing, online reputation management and

technology solutions.

D Cell

D Cell is the strategic design consultancy of Lowe Lintas. It was the first agency in-house

design specialist in India. D Cell offers services like consumer branding, corporate branding,

environmental branding, digital branding, communication branding, retail branding and

brand documentation.

Linterland

Linterland is the specialist rural communication and marketing arm of the group.

Lintas Productions

Lintas Productions is the newly opened film production and entertainment marketing wing of

Lowe Lintas. It offers integrated entertainment solutions including movie strategic planning

and marketing, movie production, television content and production, celebrity endorsement,

talent management and branded entertainment.

LinHealth

LinHealth is the healthcare solutions division of Lowe Lintas. Some of its offerings include

pre-launch market preparation, managed entry programmes, new product launches, brand

refreshes, compliance and concordance and integrated healthcare campaigns.

LinPersonal

LinPersonal is the direct marketing/customer relationship management wing of Lowe Lintas.

LinPersonal offers services like customer engagement programmes, personalised one-to-one

communication, direct mail (electronic and physical), CRM and analytics, B2B marketing

consulting and export marketing consulting.


LinEvents

LinEvents is the event management wing of Lowe Lintas. LinEvents creates and executes

exhibitions, special events, conferences, product launches, award ceremonies and B2C

events.

2.5 AREA OF OPERATION

Lowe and Partners is a network with over 101 Global offices in over 60 markets around the

world. The community covers an array of disciplines including e Commerce, CRM, PR,

Branded Entertainment and Activation.Lowe's main agencies include the following -all

offering an array of services.

Lowe Sydney, Australia

Ponce BA, Argentina

BorghiErh/Lowe, Brazil

Lowe Bull, South Africa

LOLA Madrid, Spain

Lowe Bangkok, Thailand

Lowe Brindfors, Sweden

Lowe Lintas, India

DLKW Lowe, UK

Lowe Istanbul, TURKEY

Lowe Shanghai, China

Lowe Strateus, France

Lowe Bucharest, Romania

Lowe Roche, Toronto, Canada

Lowe Ginkgo, Montevideo, Uruguay

Lowe SSP3, Bogota, Colombia

Deutsch Inc, USA ( New York and Los Angeles)

Publimark Lowe, San José, Costa Rica

Research & Planning Antiguo Cuscatlán, El Salvador

Lowe lintas INDIA


Ahemdabad

Bangalore

Kolkata

Chennai

Delhi

Hyderabad

Kochi

Mumbai

Pune

2.6 OWNERSHIP PATTERN:-

A private limited entity Lowe Lintas began in 1939 as Lintas, India, the Indian division

of Lintas (acronym for Lever International Advertising), which itself was established in

1899, later a part of Unilever. In 2000, the company changed its name to Lowe Lintas

following the global merger of the IPG networks, Ammirati Puris Lintas and the Lowe Group

in November 1999. Lowe Lintas India was then helmed by Prem Mehta, with Executive

Creative Directors R. Balakrishnan (Balki) and K. V. Sridhar leading the creative function.

At the time, with billings of over $12 billion, Lowe Lintas was ranked as the fourth-largest

global agency group worldwide, with offices in 80 countries, while Lowe Lintas & Partners

was the second-largest advertising agency in India, with a turnover of Rs. 750crores.

In 2007, Lintas India sold the 51% stake it owned in Lowe Lintas to its international

partner, the Interpublic Group (IPG). Since then, the agency has been a part of

the Lowe Worldwide network, which in turn is held by the Interpublic Group.

2.7 COMPETITOR’S INFO


• Ogilvy and Mather Limited:- Headed by Mr. Piyush Pandey:

The most local of the internationals, The most international of the locals are words written to

describe the identity of Ogilvy. Basically, what this means is that the advertising agency

follows the local market, understands the customer's needs and then networks worldwide

with MNC and other relevant clients.

In all its years of business, Ogilvy has struggled to build brands and has proved its ability to

build brands. The agency does its best to enhance the customer-brand relation. For this, it

undergoes the process of scrutiny of the tools and techniques which work well to build a long

and lasting association with a brand.

• Mudra communications Pvt. Ltd:- Head: Mr. Madhukar Kamath:

The agency practises the art of communication in order to express ideas that can shape the

brands. As the name suggests, the agency is influenced by the artistic traditions of Indian

dance, drama and painting. These, in turn, inculcate feelings, ideas, thoughts and emotions

for the success of a brand. Mudra peeps into the local consumer markets, channels and

media, and has its own identity in communication of brands. It looks for the entrepreneurial

zeal which causes continuous and speedy growth for each brand. The advertising agency

always believed in doing interesting work that pleases its clients.

• JWT (Hindustan Thompson Associates Pvt. Ltd.):- Head:Mr.Colvyn Harris

(Chief Executive Officer):

The advertising agency has a special portfolio which includes creativity, innovation, clients,

case studies, awards, well-thought out leadership and talent. Clients perceive the agency as a

resource of ideas which tell the brand’s story to the customer, dealing with market research.

In this process, the agency includes innovative ideas.


• FCB-Ulka advertising pvt. Ltd:- Head Mr. Anil Kapoor (Managing Director and

CEO):

FCB, being one of the the top three advertising agencies in the USA, ranks number 10 in the

world. FCB-Ulka has made its mark in India as Ulka Advertising. It was founded in 1961.

On the creative front, Ulka is known to stand out. FCB-Ulka has made a smooth transition

from a creative shop to a large mainstream agency. Around the mid-seventies, FCB-Ulka had

become the fifth largest agency in India and has sustained this status till date. The efforts of

FCB-Ulka deserve praise. It also gave recognition to those brands that were not in the

limelight earlier but are now completely above other market players. Santoor soap did

thorough research and focused on advertising which gave growing sales figures against stiff

competition from Levers and P&G brands. Not surprisingly, FCB-Ulka is seen as a

turnaround specialist - an agency that does brand building and more.

• Rediffusion DY&R Pvt Ltd:- Mr. Mahesh Chauhan (President):

This advertising agency places its people first. It believes that the strength of a brand lies in

the efforts the people of the organization make. Rediffusion DY&R follows system-driven

‘thinking’ in its culture. The agency attracts right minds because it thinks of a perfect balance

between creativity and strategy.

• RK Swamy BBDO Pvt Ltd:- Mr. Srinivasan K Swamy (Head)

It is the agency of the worldwide-renowned BBDO network. The advertising agency suggests

comes up with solutions for its clients regarding their marketing communication problems

and provides them with intelligent solutions and supports them in attaining their goals. The

symbol or logo of the advertising agency is Hansa and is known to separate milk from the

water. Similarly, RK Swamy of BBDO is capable of deriving the essential elements from the

irrelevant ones in order to promote each brand. The agency practises high level of

commitment and spirited teamwork for a common cause.


• McCann-Ericsson India Ltd:- Sorab Mistry (Head)

This advertising agency is a leading global agency and has the power and passion to achieve

its mission .McCann-Ericsson is known as a world class advertising agency and has found

outstanding talent in its employees.

• Leo Burnett:- Mr. Arvind Sharma (Chairman and CEO):

The advertising agency is totally idea-centric. It generates big brand ideas. It regards the

pencil as its engine no matter the size - it is the means through which it can generate plenty

of creative ideas. The agency is never too satisfied with its endless efforts in building up a

brand. It believes that the brands can become and remain leaders by building better ideas. It's

no wonder that the founder of the advertising agency, Leo Burnett, regards the pencil as a

metaphor for the kind of ideas he was coming up with for his clients.

• Grey worldwide (India) Pvt Ltd:- Mr. Nirvik Singh (President south east Asia &

chairman South Asia, Grey Global):

The agency handles above the line advertising for the Grey group. It has launched Dominos

in India. It has had Ambuja cement, Thums Up, Arrow, Lee and many more brands in its

portfolio. The mission of the agency is to remain the largest global integrated agency to

leading brand ideas.

The list of the top ten advertising agencies is not always stable and remains interchanging.

The additions and deletion of a few of them formulates the list. But each of them are making

their way to becoming the best, and their efforts are making are each making a mark in the

Indian advertising scenario.

2.8 INFRASTRUCTURAL FACILITIES(LINTAS PVT. LTD.

BANGALORE)

Occupies 3 fully furnished Air conditioned floors in Sai complex M.G. Road.

Floors meant differently for 1. Brand Servicing 2.Creative team 3. Accounting and

Administration.


Canteen facilities

Waste recycling systems

Separate work stations with systems and desks.

Health and Education Initiatives

Community Initiatives

2.9 ACHIEVEMENT

Awards 2007-08

Lowe Lintas, placed at No. 3, won one gold metal and two metals each of silver and bronze.

Lowe won the gold for its Tata Tea Jaago Re! campaign. The two silvers were won for the

Axe (Call Me) and Idea Cellular (What an Idea!) campaigns, while the bronze Effies were for

the Havells (Shock Laga?) and Tata Tea (Jaago Re!) campaigns.

Awards 2008-09

Lowe Lintas (placed at No. 2) won two gold, two silver and eight bronze metals. The

campaign for Tanishq ('Jewellery that Makes You Want to Marry') won Lintas its two golds,

in the categories, Consumer Products (Others) and Retail. The agency's silvers were pulled in

by its campaigns for Bajaj Discover DTS-Si ('Discover the Power of 1 Litre') and Idea

Cellular ('Use Mobile Save Paper..

Award – 2010

Global HR Excellence Awards - Organisation with innovative HR practices

Global HR Excellence Awards - CEO with HR orientation (Lynn de Souza)

Mirchi Kaan Awards 2009 - Best use of Radio as medium (Bajaj Mixers)

Goafest Silver : Best use of Special Events & Stunts (Live Advertising) – Pulsar

Cannes 2010 Radio Silver Lion

CNBC Awaaz Consumer Awards - Maruti Most Preferred Brand of Cars

CNBC Awaaz Consumer Awards - Sony Most Preferred Grey Goods Company


2.10 WORK FLOW MODEL

FIGURE 2.1 WORK FLOW MODEL

This Interactive Advertising Workflow helps to reduce many of the supply chain issues that

have plagued the advertising industry, such as late creative, discrepancies and billing

reconciliation. Lintas’ workflow represents several years of gathered experience and

discussions and is the most in-depth and comprehensive interactive supply chain reference in

the industry. Since the interactive advertising workflow touches multiple departments at

publishers and agencies, it largely helps everyone from senior management to entry level

employees with a high-level understanding of the overall process and practical advice on

execution. Improving communication, both inter-departmentally and between agency and

client, is at the core of reducing discrepancies and thus achieving greater operational

efficiency.

Stage 1: Request for Proposal (RFP)

Clear and open communication between the client and the agency begins with the RFP.

When submitting an RFP, Lintas outlines as much detail about the campaign as possible.

Revealing marketer objectives, target audience, inventory preferences, and any other special

requests beyond budget and flight dates allows the publisher to provide a more

comprehensive proposal. It helps to clearly communicate timelines to the marketer.

Stage 2: Insertion Order (IO)

An Insertion Order is generated once the proposal is approved by the agency. The publisher

should set up appropriate controls along the IO approval process to ensure that all aspects of


the IO meet internal requirements. At this stage, it is critical for both parties to review

specific details about the IO including the billing method, delivery requirements, and any

addendums to the AAAI (Advertising Agencies Association of India) /IAB (Interactive

Advertising Bureau) standard terms and conditions. Rectifying errors and verifying all

contact information at this stage reduces inefficiencies through the rest of the workflow.

Stage 3: Creative Delivery

The plan laid out by the account planners and the brief given by the client servicing people

are inputs to the Creative team who translate the client’s brief and account planner’s strategy

into a creative consisting of art (visual appeal) and copy (literature). After the creative duties

are done, the production team takes care of the ad shoots typically an audio/video conveying

the message put forth by the creative team

Stage 4: Campaign Delivery & Optimization

After creative is delivered, crucial steps for both parties remain. Clear communication should

continue with the traffic instructions. The publisher contacts the agency over any

ambiguities. In addition, login information is exchanged so that delivery can be monitored in

both the publisher and third-party ad servers. Campaigns are then checked within one

business day of launch to confirm that all tags are implemented properly. To catch

discrepancies, both parties continually monitor delivery and optimize when necessary.

Stage 5: Billing & Collections

No supply chain is complete until final payment is made. Billing & Collections remain

challenging due to the number of departments involved. Following the workflow specifically

reduces billing errors and simplifies reconciliation, but clear and open communication can


alleviate remaining issues. It also helps that both publishers and agency establishes cross-

departmental communication channels to speed up the reconciliation process.

2.11 FUTURE GROWTH & PROSPECTS

The global Advertising Industry as far as scale of operations and scope is concerned

the turnover is close to USD 450 billion annually. Indian Advertising Industry

contributes less than 1.5% which is next to China and Russia. The Global Ad Industry

is expected to reach a growth rate of 3% in 2011 which is better than 2010 while

Indian Ad Industry in contrast estimates to reach the growth rate of 10% figuring

about Rs.237 billion. The reasons are because of the IPL, Foot ball World Cup and

the Commonwealth Games.

India contributes to 17 % of the world population but is only 0.7% of the world

advertising market so it has huge potential to grow in future.

Experts reveal that total advertisement spending by the political parties would be

around Rs 8 billion. The Congress and the BJP alone could spend over Rs 4 billion on

ads on television, radio and newspapers. Most of the ads appear on going to general

entertainment and regional TV channels and hardly a small proportion in News

channels.

Worldwide Partner Inc are the Ninth largest global network of more than 90

marketing and communication agencies in about 50 countries which has recently tied

up with Indian Pressman Advertising and Marketing Ltd following repeated enquires

about India .

Indian advertising spends as a percentage of GDP - at 0.34% which is comparatively

low, as opposed to other developed and developing countries, where the average is

around 0.98%, which requires a lot space for development and enhancements in the

Indian Advertising Industry.

ABOUT FUTURE GROUP

Future Group is India’s largest retailer and one of the leading business houses with a strong

presence in retail. Its founder and Group CEO is Mr.Kishore Biyani


Its flagship company is Pantaloon Retail India

Future Bazaar

Future Brands

Future Group

Future Capital Holdings

Future Generali

Future Learning & Development

Future Supply Chain Solutions

Future Media

Type:-Public (BSE)

Founder(s):-Mr. Kishore Biyani., (MD & CEO)

Headquarters:- Mumbai, Maharastra, India

Products:-Discount Stores, Supercenters

Employees:-30,000

Industry:-Conglomerate

Lintas and Future Group:-

Lintas has been attached with future group for almost 12 years now. During this association

Lintas has been handling two of the major accounts of Future group i.e. CENTRAL and

BRAND FACTORY. Lintas manages the INTEGRATED MARKETING

COMMUNICATION for both the enterprises.


Mc.KINSEY’S 7S FRAMEWORK

FIGURE 3.1 MCKINSEY’S 7S FRAMEWORK

3.1 STRATEGY

Lintas is a media management company : planning, buying and evaluating strategic media

solutions for its clients. Their expertise lies in crafting customized and contemporary media

solutions based on the thorough understanding of the consumer, the media and the interaction

between the two.

Consumers today do not like to be ‘strait-jacketed’ into ‘stereotypes’. They have a plethora

of ‘me-too’ products to choose from resulting to ‘quick shift’ in product preferences at

minimal risk. Consumers are now constantly looking for value beyond price and demand


constant improvement in products and services. What they take home is not just the product

or brand, but the entire product experience as well.

At the Lintas Media Group, approach to communication planning is one that is not media

centric but one that integrates the perspective of the consumer, the brand and the medium.

3.2 STRUCTURE

Organizational structure refers to formal hierarchical relationships & positional arrangements

it deals with how members communicate with others, how information flows, what roles he

performs, Rules & procedures existing to guide the activities of members as part of

organization With reference to Lintas , it has good mentor, disciplined relationship,

encouragement, help & guidance.

Broadly there are 5 departments in Lintas,

FIGURE 3.2 Functional structure of organization at Lintas


Account service department

The account service, or the account management department, is the link between Lintas and

its clients. Depending upon the size of the account and its advertising budget one or two

account executives serve as liason to the client. The account executive’s job requires high

degree of diplomacy and tact as misunderstanding may lead to loss of an account. The

account executive is mainly responsible to gain knowledge about the client’s business, profit

goals, marketing problems and advertising objectives.

The account executive is responsible for getting approved the media schedules, budgets and

rough ads or story boards from the client. The next task is to make sure that the agency

personnel produce the advertising to the client’s satisfaction. The biggest role of the account

executive is keeping the agency ahead of the client through follow-up and communications.

Media department

The responsibility of the agency’s media department is to develop a media plan to reach the

target audience effectively in a cost effective manner. The staff analyses, selects and

contracts for media time or space that will be used to deliver the ad message. This is one of

the most important decisions since a significantly large part of the client’s money is spent on

the media time and/or space. The media department has acquired increasing importance in an

agency’s business as large advertisers seem to be more inclined to consolidate media buying

with one or few agencies thereby saving money and improving media efficiency.

Creative department

To a large extent, the success of an ad agency depends upon the creative department

responsible for the creation and execution of the advertisements. The creative specialists are

known as copywriters. They are the ones who conceive ideas for the ads and write the

headlines, subheads and the body copy. They are also involved in deciding the basic theme of

the advertising campaign, and often they do prepare the rough layout of the print ad or the

commercial story board. Creation of an ad is the responsibility of the copywriters and the art

department decides how the ad should look.


Production department

After the completion and approval of the copy and the illustrations the ad is sent to the

production department. Generally agencies do not actually produce the finished ads; instead

they hire printers, photographers, engravers, typographers and others to complete the finished

ad. For the production of the approved TV commercial, the production department may

supervise the casting of actors to appear in the ad, the setting for scenes and selecting an

independent production studio. The production department sometimes hires an outside

director to transform the creative concept to a commercial.

Finance and accounting department

An advertising agency is in the business of providing services and must be managed that

way. Thus, it has to perform various functions such as accounting, finance, human resources

etc. it must also attempt to generate new business. Also this department is important since

bulk of the agency’s income approx. 65% goes as salary and benefits to the employees.

VALUE CHAIN ANALYSIS

There are mainly four roles in an advertising agency

1. Client Servicing

2. Account Planning

3. Creative

4. Production

Client Servicing people are the first point of contact in an agency for the client. They

interface between the Client and the other internal teams. Client Servicing people are given

briefs by the clients. They understand what the client’s requirement is, objectives of a

particular campaign etc and translate it to the Account Planning and Creative teams.

The Account Planning team then comes up with the strategy/plan for the campaign. The

brief given by the Client Servicing team is the starting point for the account planners. The


plan laid out by the account planners and the brief given by the client servicing people are

inputs to the Creative team who translate the client’s brief and account planner’s strategy

into a creative consisting of art (visual appeal) and copy (literature).After the creative duties

are done, the production team takes care of the ad shoots typically an audio/video conveying

the message put forth by the creative team. Thus the cycle from a brief to an ad goes through

the above phases.

3.3 SKILL:

Skills are capabilities of organization as a whole. Skills, which describe the organization’s

competence like in Lintas would be creativity, innovation and adaptability.

The skills, which Lintas possesses are creativity, customer/account handling skills,

relationship skills, excellent communication skills, assertive decision-making, business

knowledge, leadership, attitude, adaptability, courageous, & dynamism. However the skill

requirement varies from the job to job. The skills of the agency are enhanced through

Recruitment & Selection process( Lintas handpicks the best Creative and managerial talent),

training and development(To bridge the gap between existing skills& desired skills) etc,:

3.4 STYLE:

At Lintas there is a very open management where the employees can suggest any

improvements in systems. There is a grass root level participation. These suggestions are

implemented either by interdepartmental communications, mutual understanding, or by top-

level analysis, where huge investments are involved. Even the policy decisions are taken with

consultancy of respective persons. Employees take casual decisions & their immediate head

gives the feedback.

From the above facts we can say that Lintas has a participative management style.

3.5 SYSTEMS:

It refers to all rules, regulations & procedures both formal & informal. It includes campaign

plans, control system, cost accounting procedures, recruitment training & development plans.


In Lintas, every department has got their own Management Information system, for eg:

Human resource information system:

There is an HR package which stores all employee profile such as employee ID, code no,

joining date, place of posting, place of posting, name, personal profile, bank name, A\c no,

grade, department, qualifications, designation, experience, pay scale, & history. On the basis

of this data rating is done.

It also gives information of overall employee structure like no of persons joined in a month,

transfers, promoted, loan taken employees, etc

3.6 STAFF:

The staff at Lintas are mostly recruited based on referrals and not by any recruitment drive

and thus it helps in capturing talented and creative people. Like any other agency Lintas also

engages in head hunting to capture some of the best minds in advertising field.

The staff in terms of their qualifications are not academically very intelligent but are people

who have an over all personality since advertising requires a good lot of communication,

negotiation and convincing skills.

3.7 SHARED VALUES

Unlike owner operated companies, in large corporations often operated by employees, there

is not necessarily that sense of responsibility, that sense of: “Somebody is paying for this, so

you have to make their [clients] money’s worth”. In large companies, employees do not have

a vast interest for the company; therefore, they do not have a vast interest in the success of

their clients.

The original philosophy of the agency “Do not outspend the competition, outsmart them.”

basically means not to necessarily spend more money than the competition, just

communicate the message more intelligently. If the work does not work, then come up with

something else.


Lowe knows their clients demand nothing but the best, and that it is becoming increasingly

difficult to appeal to consumers. Lowe believes in staying one step ahead of the competition

with innovative, original thinking. The mantra of the company is "Innovate or Die" because

"...in an industry being crushed by a lack of innovative thinking, anything less is just that-

less." The team at Lowe feels that it is the teams duty to provide the spectacular results the

clients deserve.


SWOT ANALYSIS

STRENGTHS

- One of the oldest ad agencies of the country, hence a strong foothold.

- Provide clients with new ideas and offer integrated 360 degrees solutions.

- A satisfied client list.

- Continuous innovations by a very creative and talented workforce.

- A well developed internal communication interface.

- An efficient working environment.

- A visionary leader. (R Balakrishnan/ Balki).

- A central team that focuses on the development and application of knowledge and

systems for next generation media planning & buying.

WEAKNESSES

- Too much emphasis on traditional tried and tested methods.

- Lack in promotion strategies towards increasing the brand name.

- Less experience in some areas like food & beverage drives the client to competition.

OPPORTUNITIES

- The open collaboration between Interpublic group and Lintas has been resulting in

customized solutions to fit unique needs.

- Increasing awareness of digital marketing.


- Being the oldest advertising agency in India, it has dedicated lot of clients who keep

coming back with their new products.

- Entering fields such as Food & beverages, as well as sports will enhance the variety

in client list.

- Lintas is perceived as one of the most creative ad agencies of all time, thus bringing

in all those customers who need a catchy ad.

THREATS

- Stiff competition at both domestic & international levels.

- Rise in the number of in house creative teams by various companies.


Lintas being a private limited company is not at the liberty of giving out its financial data.


The whole period of ten weeks was an insightful experience. Since an advertising agency is

not very structured in its operations, it would be a whole new set of experiences every single

day. I came to know how theoretical aspects are applied particularly in the organization. It

was a good learning experience for me to understand various departments and their style of

functioning.

There is a sense of ease as to how the whole system works but still a lot to learn as to how

proper co-ordination among the employees helps in order to provide effective service to the

customer.

During my project, I was able to study various aspects of the organization practically. I

acquired the knowledge of various strategies adopted by the company. I was able to

understand the function of various department and duties and responsibilities of each

department. The company has different departments broadly classified as

1. Account service department

2. Media department

3. Creative department

4. Production department

5. Finance and accounting department

I could learn how to behave in an organization environment, i.e. while integrated with the

colleagues and other people. I could really see how the terms are formed and their benefits to

the organization.

The whole working of IMC (Integrated Marketing Communication) was practically

experienced and analyzed by me. With being included in all the functioning of the company I

got to know how right from the pitching to a client to Brand servicing is done.


A whole lot of experience was during the campaigns in which print ads for central malls were

being shot. The whole exercise was very fruitful in understanding how various departments

coordinate to come up with an ad campaign.

The human resource department is handling functions like employee welfare, personal and

administration, security, corporate communication, employee motivation through rewards

and re-organization they have very effective communication channels to create transparent

healthy atmosphere.

The company aims to provide a relaxed working condition, and it was quite visible with how

there were no stringent levels of bureaucracy through which one has to pass to meet the

regional head or other heads. Every now and then the company asks employees for their

feedbacks where suggestions are invited to improve working condition of the company and

distributed to good and implementable suggestions.


GENERAL INTRODUCTION

Apparels & Accessories is India’s second largest retail category (behind food & grocery),

representing 10% of retail market. Projected to reach $ 50 billion for 2011, apparel will be

among the highest growth categories, with a CAGR of between 12 to 15%. India’s apparel

market is highly fragmented. The top 7 competitors represent less than 10% of total market.

Customers tend to be loyal to a specific retailer – Central, Lifestyle, Shopper’s Stop,

Westside & Brand Factory – instead of any particular apparel brand.

7.1 “STATEMENT OF THE PROBLEM”

“A study on youth’s perception and consumption of fashion (apparels & accessories)”

i.e. To understand the Shopping behavior of the youth in general and fashion in particular.

Fashion has evolved in the past hundred years just as it has over time, as our culture and

attitudes change, fashion comes along with it and through this study we aim to primarily

understand Youth, both Males and Females and How does this segment consume fashion and

analyze whether youth always go for latest trends and fashion .

7.2. OBJECTIVES OF THE STUDY

Primary objectives

To analyze youth’s perception and consumption of fashion goods with special reference

to Apparels and Accessories.

To suggest remedial measures there on.

Secondary objectives

To describe the brand loyalty displayed by the segment and also understand the gifting

behavior in youth.

Checking preference of media (traditional v/s digital).

Finally, to incorporate the findings in establishment of a new store by the client.


7.3. SCOPE OF THE STUDY

The study encompasses a vast scope as it includes youth aged between 18 to 26 across

Bangalore.

This study is being carried out in order to obtain the information about how the youth

perceives and consumes fashion in Bangalore. The client here is Future group and going by

its segmentation of stores, it divides them into:-

1. Lifestyle segment (consisting of Central Malls) and

2. Value segment (consisting of Brand Factory)

Thus, taking both the factors into account this study would revolve around youth and how

does it perceive fashion, hence explaining their bent towards the premium stores or value

based stores.

7.4. RESEARCH DESIGN

1. Type of research:-

Exploratory research

Since we are trying to gain a better insight into a problem and the area an Exploratory

research design is apt.

2. Target Population:-

The subjects for the study are young people aged between 18 to 26 and residing in

Bangalore. They have to be either students or newly joined working professionals.

7.5. SAMPLING PLAN:-

Sampling Technique:- Random sampling technique i.e. Non Probability sampling

technique.


Sample size:- 150 respondents

Data collection design:-

Secondary data about the understanding of Youth as a segment group is done through various

published articles, books and the internet. Information about the client i.e. Future Group is

being given by the company as well as being collected from the internet.

Primary data is being collected through a well structured questionnaire.

Instrument design:-

This study is based on primary data too and the primary data are collected through a well

structured questionnaire. The questions in the questionnaire are structured, non disguised

questions. This type of questionnaire will be helpful to extract the result within our limits.

7.6 DATA ANALYSIS:-

The analysis of the project work shall cover use of SPSS for “Perceptual Mapping”, “and

“Uni-Variate ANOVA”, which seem to provide fairly accurate results, hence the core

objectives of the research work is met. The use of EXCEL is done in order to formulate

Thurstone case V scale and various Graphs.

The research work will cover the opinion of 150 respondents and shall not cover an

equivalent distribution between students and employed or male and females. Hence the

results obtained shall only limit to the statistical viability of the results.

7.7. LIMITATIONS OF THE STUDY

The youth as a customer segment is huge and covers every youth in between 18 to 26 in the

city. With such a large customer base, a small time frame of ten weeks and a relatively

volatile characteristic of the segment it is very difficult to find out the consumer reaction.


Thus the study suffers from the following limitations:

i. As it was not possible to cover the entire city, only a small representative of the

sample of customers was taken.

ii. The distinction of stores i.e. into Lifestyle segment and value based segment is not

mutually exclusive.

iii. Though the respondents are supposed to provide correct information, it depends

entirely on the respondents as they may be biased.

iv. All questions were administered but there can be an element of perceived

misunderstanding of the question.


ANALYSIS

Exploratory Research was undertaken to identify more precise formulation of the problem

and formulation of course of action. Given the vastness of the subject (youth and fashion) to

be researched greater amount of flexibility and ad hoc versatility, the information was sought

to formulate the questionnaire and gain familiarity into the way consumers respond to

Fashion.

The flow of analysis is,

1. Calculate approx monthly potential of a shopper:-

First of all we calculate the approx monthly potential of a shopper by taking into

consideration:-a) one’s shopping frequency b) their monthly income and c) how much do

they spend on each shopping expedition. We then cross check it with last month’s

shopping expenditure to validate the finding.

2. Construct a Thurstone scale:-

Then we construct a Thurstone scale to find the preferential order of various stores.

3. Psychographics and shopping behavior:-

Next we look into the Youth psychographics of Bangalore and validate the finding by

cross checking results with other specific questions. We then do an Anova to check

whether psychographics has an effect on purchases.

4. Perceptual map:-

Furthermore we plot a perceptual map with stores and various attributes associated to the

stores.

5. Shopping Behavior:-

Then we move to analyze other aspects related to shopping behavior, which help us

understand shopping behavior in general,

- Gifting behavior

- Checking preference of media( traditional v/s digital)

- What helps choose a shopping destination?

- Specifics of last purchase.


8.1 Finding Monthly potential of a shopper:-

1.Table 8.1 showing Frequency of shopping:-

frequency of visitFrequency Percent Valid Percent

Valid Monthly 72 48.0 48.0

Quarterly 51 34.0 34.0

Half yearly 18 12.0 12.0

Yearly 9 6.0 6.0

Total 150 100.0 100.0

Analysis:-

The frequency table and the corresponding chart reveal that approximately

48% of the sample size shops monthly for apparels and accessories.

Further 34% quarterly shop and 12% half yearly.


The rest 6% are the annual shoppers.

2. Finding monthly income

Next we move on to find what is the monthly income or allowance that one gets and then

calculate what the monthly potential of a single shopper for a month would be.

So the monthly income is depicted in the following frequency table and graph.

Monthly Income Frequency Percent Valid Percent

Valid -Rs 3000 8 5.3 8.0

Rs3000- Rs5000 18 12.0 18.0

Rs.5000-RS.7000 23 15.3 23.0

More than Rs.7000 51 34.0 51.0

Total 100 66.7 100.0

Missing 0 (Missing) 50 33.3

Total 150 100.0

Table 8.2 Table showing monthly income of the respondents

From the table:-

49% of the samples are within the Rs.7000 bracket with 23% being more than

Rs.5000.

But the rest 51% is the segment with Rs.7000 or more money to spend every month.

This is the average pocket money or allowance of respondents in the 18 to 26 age

group.

The bar graph on next page more clearly depicts the same.


-3000 3000-5000 5000-7000 7000 & above

8%

18%23%

51%

Graph 8.2:- Graph showing Monthly Income (in Rs.)

Now since we know of the shopping frequency and the average income, we need to

know what an average individual spends on apparels and accessories out of their

monthly income. This would give us the potential of a single buyer.

3. Finding expenditure on apparels and accessories out of monthly income.

Table 8.3 Table showing How much of the monthly income is spent on shopping for

apparels and accessories?

Percentage spent Frequency Percent Valid Percent

Valid 5-15% 42 28.0 28.0

15-25% 57 38.0 38.0

25-45% 30 20.0 20.0

>45% 21 14.0 14.0

Total 150 100.0 100.0

Graph 8.3 : Monthly expenditure on apparels and accessories


5-15%

15-25%

25-45%

>45%

42

57

30

21

Thus, from the chart we depict that,

42 of 150 respondents spend between 5 to 15% of their monthly income on apparels

and accessories.

57 of them spend up to 25% of their income.

And the rest 30 and 21 respondents spend up to 45% and more than 45% of their

income on apparels and accessories monthly.

Henceforth, Monthly expenditure on apparels & accessories

• Since 48% shop monthly for apparels & accessories.

• And 51% have monthly income beyond Rs.7000

• Thus, 58% (57+30/150) spend an average 25% of their disposable income on

shopping for A & A.

i.e. 57 people from the 15- 25% expenditure group and 30 people from 25-45%

expenditure group.

Average is considered 25% since it’s the mid value of both the groups. Thus, approx

monthly potential from 1 out of 2 persons (since 48% ~ 50% shop monthly for A&A) in the

age group of 18 to 26 would be

= 25% of 7000 = Rs. 1750

CONCLUSION:-


Going by the previous calculation we see that on an average 50% of the youth among 18 to

26 years of age have the monthly potential of Rs.1750, which is huge and it gives immense

scope to the marketers.

Cross checking the afore mentioned finding

Table 8.4 Table showing the amount spent during the last purchase

Amount spent Frequency Percent Valid Percent

Valid till Rs.999 14 9.3 11.8

Rs.1000-Rs.1999 49 32.7 41.2

Rs.2000-Rs.2999 25 16.7 21.0

Rs3000-Rs.5000 16 10.7 13.4

Rs.5000 & above 15 10.0 12.6

Total 119 79.3 100.0

Missing 0 31 20.7

Total 150 100.0

Graph 8.4 Graph showing Expenditure on Apparels &Accessories during last purchase

-999 1000-1999 2000-2999 3000-3999 4000 & above

12%

41%

21%14% 13%


Thus, we see that the details of last purchase give us an idea of how much one spends on

A&A during a single shopping expedition. Since the major chunk lies in the Rs.1000 to

Rs.1999 bracket, it’s safe to assume the validity of the calculated monthly potential.


8.2 THURSTONE CASE V SCALE.

The Thurstone scale is there by established to find out the preference of various stores.

Among 7 prominent stores the order of preference was established using comparative

judgement, So as to arrive at a perfect understanding of what is the preferential order

in store decision making.

To apply the Thurstone model

Rj - Rk = Zjk δj2 + δk

2 - 2 µjk δj δk

Where

Rj - Rk = linear distance (on respondent’s psychological scale) between stimulus j and stimulus

k

Zjk = standard variate associated with the observed proportion of the case in which stimulus j

is

Prefered to stimulus k

δj2

δk2 = discriminal dispersion of stimulus j and k respectively

µjk = coefficient of correlation between the discriminal processes associated with stimulus j

versus stimulus k

Assuming that

1) Discriminal dispersions are equal

2) The correlation between each pair of discriminal process is equal

3) By setting δj2= δk2 for all j and k and allowing µ denote the common correlation

across all pairs of discriminal processes, the Thurstone model gets reduced to

Rj-Rk = Zjk 2δ2 (1-µ)


since 2δ2 (1-µ) is a constant ewe can set up this as equal to 1 by virtue of choosing it as a

unit of measurement therefore by doing so the Thurstone model gets reduced to

Rj-Rk = Zjk

Here Zjk equals the standard unit normal variate, Z

In order to execute Thurstone Case V scale each respondent was asked to compare the five

factors paired with every factor, thereby comparing with all the factors in pairs. The pairing

was done as a coding from A to E achieved through the most favoured factors independent of

pairing.

Table 8.5 Table showing Observations on preference of factors

Preferred Factor

Factor Central Lifestyle Westside Shoppers

stop

Brand

factory

Max Mega mart

Central 50% 70% 53% 64% 27% 35% 19%

Lifestyle 30% 50% 25% 46% 18% 24% 16%

Westside 47% 75% 50% 66% 22% 37% 26%

S.S 36% 54% 34% 50% 23% 21% 15%

B.F. 73% 82% 78% 77% 50% 65% 39%

Max 65% 76% 73% 69% 35% 50% 33%

M.M. 81% 84% 74% 85% 61% 67% 50%


Central Lifestyle Westside Shoppers

stop

Brand

factory

Max Mega

mart

Central 0.50 0.70 0.53 0.64 0.27 0.35 0.19

Lifestyle 0.30 0.50 0.25 0.46 0.18 0.24 0.16

Westside 0.47 0.75 0.50 0.66 0.22 0.37 0.26

S.S 0.36 0.54 0.34 0.50 0.23 0.21 0.15

B.F. 0.73 0.82 0.78 0.77 0.50 0.65 0.39

Max 0.65 0.76 0.73 0.69 0.35 0.50 0.33

M.M. 0.81 0.84 0.74 0.85 0.61 0.67 0.50

Table 8.6 Table showing Z Values Related to Preference Proportions

Table 8.7 Table showing Z values and final assigned values to stores.

Central Lifestyle Westside Shoppers stop

Brand factory

Max Mega mart

Central 0 0.53 0.08 0.36 -0.62 -0.39 -0.88

Lifestyle -0.26 0 -0.68 -0.10 -0.92 -0.71 -1.00

Westside -0.08 0.68 0 0.43 -0.78 -0.62 -0.65

S.S -0.34 0.10 -0.42 0 -0.74 -0.81 -1.04

B.F. 0.62 0.92 0.78 0.74 0 0.39 -0.42

Max 0.39 0.71 0.62 0.50 -0.39 0 -0.44

M.M. 0.88 1.00 0.65 1.04 0.28 0.44 0


Total 1.21 3.94 1.03 2.97 -3.17 -1.7 -4.43

Mean(Z) 0.172 0.562 0.147 0.424 -0.452 -0.242 -0.632

R* 0.804 1.194 0.779 1.056 0.18 0.39 0

A negative sign is attributed to the Z value when the proportion is less than 0.5

Mean (Z) = Total / Number of factors

The average Z value for each of the columns is arrived

Considering the zero point of an interval scale as arbitrary, assuming the scale value for

factor D (Result Oriented) RD= ZD = -0.632 be the reference point as Megamart ,

if subscribed shall deliver results

Then simply adding 0.632 to each of the other Z to obtain the Case V scale values of the

other six factors denoted by R*

The preference of stores therefore is

Lifestyle > Shoppers stop > Central > Westside > Max > Brand Factory > Mega mart

8.3 YOUTH PSYCHOGRAPHICS


INDIAN YOUTH

Around a fourth of India’s population is within the age group of 16 to 25 years making it the

world’s largest assimilation of such a group within a country. Over the last few years a lot of

considerable amount of energy and time has been spent in understanding this complicated

audience.

The study YES! (Youth, an emerging segment) was focused on the top 16 cities of India on

youths 16-25 years, belonging to SEC A/B households. The segments are:-

Disarming Turtles(20%) :- Just like turtle carries its home on its back everywhere he goes.

This group is very family oriented and enjoys spending quality time with their family.

They are not opinionated, but are open to criticism.

They are neither materialistic nor are they therefore, brand conscious.

Aspiring Ostiches(18%): - The Ostrich is the fastest land bird. It can run miles and cover

them very quickly. Its long neck keeps it reaching for the stars. So do the youth of this

segment.

This set is characterized by being opinionated and adventurous.

They aspire for the best and have the confidence to achieve their goals.

They are however, not ritualistic.

They have no political ambitions or inclinations.

Flamboyant Flamingoes(26%):- Flamingoes are birds of style and beauty. When they

gather in their thousands to drink and bathe they follow sequential movements that look like

a well choreographed dance. ‘Style’, ‘Class’, a few words that come to mind when we think

of these birds and the youth of this group as

They are both brand and fashion conscious.


They keep abreast of all that is "new", be it fashion or technology .

They are extremely impressionable, but are opinionated enough to have the last word.

They constantly seek social approval.

Nonchalant Tigers(21%): A tiger defines power and selfishness. He kills just because he

can. A very solitary animal. He does not care of what is happening around as long as it does

not involve him or his territory. The youth from this psychographic group are very similar to

this majestic beast.

They are very open about their relationships and have their own set of social norms.

They are very broad-minded and are not opinionated.

They are not family oriented and tend to be self-centered.

They are not keen on keeping abreast of trends.

Worker Bees(6%): Buzzing around day and night at the beck and call of the queen bee.

Living in tight proximity with his fellow bees. Has one aim in life to work and work well and

hard. The youth in this group are like these worker bees:

They are ‘people oriented’ and are not self-centered.

They are not trendy and hence are not brand conscious.

They are not impressionable and are opinionated.

They do not mind helping with household chores.

Legal Eagles (10%):The ruler of the skies.. The highest flying bird…The perfect arial

hunter..The Eagle is the best description for this cluster as the youth here

Are self centered.

Are very conscious of social norms.

Are technologically savvy and trendy.


GRAPH 8.5 GRAPH SHOWING YOUTH PSYCHOGRAPHICS IN

BANGALORE

From the graph its clear that,

74% (40%+17%+17%) of the respondents are in the category of worker bees,

nonchalant tigers and disarming turtles respectively.

The common characteristics among them are:

1. Disarming turtles:

• This group is very family oriented and enjoys spending quality time with their family.

• They are not opinionated, but are open to criticism.

• They are neither materialistic nor are they therefore, brand conscious.

2. Nonchalant tigers:


• They are very open about their relationships and have their own set of social norms.

• They are very broad-minded and are not opinionated.

• They are not family oriented and tend to be self-centered.

• They are not keen on keeping abreast of trends.

3. Worker bees:

• They are ‘people oriented’ and are not self-centered.

• They are not trendy and hence are not brand conscious .

• They are not impressionable and are opinionated.

• They do not mind helping with household chores.

POINTS TO BE NOTED

The common prevalent characteristic in youth population of not being trendy is very

alarming.

It also verifies the point where 66% of the respondents opined on not being trendy as it

doesn’t matter.

It provides clarity to the Case V where in Lifestyle and Shoppers Stop are perceived better

than Central but volume of purchases differ (Refer Table no.20). It can be explained

through the prevalent characteristic of not being opinionated.57% are not opinionated

and thus we see the difference in perception and real purchases.


Fashion adoption Frequency Percent Valid Percent

Valid Very trendy 2 1.3 1.5

Trendy 26 17.3 20.0

Neutral 91 60.7 70.0

Not trendy 9 6.0 6.9

Unaware 2 1.3 1.5

Total 130 86.7 100.0

Missing 0 20 13.3

Total 150 100.0

Further analysis gives us an insight into how Bangalore youth perceive themselves or

define themselves in terms of fashion consciousness.

Table 8.8 Table showing fashion consciousness in youth

Very trendy(blindly follows trends)

Trendy(follows trend with conviction)

Neutral(comfort & value matter too)

Not trendy(but aware of trends)

Unaware of fashion & trends

2

26

91

92

Graph 8.6 Fashion consciousness in youth


From the previous charts and graph we see that

91 of 130 respondents define themselves as neutral i.e. for them being trendy is not

important, they don’t keep themselves abreast of trends but are more insistent on

comfort and value for money.

26 of 130 respondents think of themselves to be trendy i.e. they do follow trends but

not with conviction. For them trends have to be within some of their constraints.

9 of them think of themselves as not trendy but they are aware of trends.

This helps us validate the psychographic finding better since 74% of the youth in

Bangalore belong to the non trendy segment, we also see the same trend here i.e.

70% perceive themselves to be non trendy.


ONE WAY ANOVA TEST

To find out the effect of Psychographic segmentation on the sales:

Hypothesis:

We assume that the psychographic segments have no effect over the sales i.e. purchases done

by customers are independent of their respective psychographic type.

We’ll test the hypothesis by doing a completely randomized one-way ANOVA. For this we

have taken the variable “Amount spent during the last purchase” as the dependent

variable and the ‘Psychographic segments” as the independent variable.

The null hypothesis would be as follows:

Ho= The psychographic segments has no effect on purchases.

Therefore, the alternate hypothesis would be as follows:

H1= The psychographic segments bear an effect on purchases.

The hypotheses are tested at 95% confidence level.

ANOVA

What was the amount spent during your last purchase?

Sum of Squares Df Mean Square F Sig.

Between Groups 18.366 5 3.673 2.459 .038

Within Groups 147.882 99 1.494

Total 166.248 104

Table 8.9Table showing Oneway AnovaINFERENCE:


In the output table of one-way ANOVA, the last column gives the result of the F -test as

0.038. Since the significance of F is less than 0.05 the null hypotheses is rejected and the

alternate hypothesis is accepted. That would mean that the hypotheses stating “The

psychographic segments has no effect on purchases” would be rejected.

We can conclude that the purchases are dependent on the psychographic profiling of the

shopper. In other terms the psychographic profiling has a significant impact on purchases

done by an individual.

8.4 PERCEPTUAL MAPPING OF VARIOUS MAJOR PLAYERS IN

THE APPAREL AND ACCESSORIES SEGMENT.


Brand positioning is essentially concerned with mapping a customer’s mind and

placing all the competing brands of a product category in appropriate slots or position

on it. Here the respondent is asked to mark on a 5 point Likert scale what the

customers think about the stores that they frequent. This would result in rating for all

the brands. Here there are 6 stores taken into consideration. The Client is interested in

finding out how the customers perceive the Company Brands with respect to the

attributes mentioned in the questionnaire.

In particular the client wants to know “How do customers perceive the Future

group brands (Central and Brand factory) along with its major competitors?”

Output:

a) Eigen Values

b)

Eigen values

Function Eigenvalue % of Variance Cumulative %

Canonical

Correlation

1 1.387a 37.8 37.8 .762

2 1.181a 32.2 70.0 .736

3 .645a 17.6 87.6 .626

4 .236a 6.4 94.0 .437

5 .182a 5.0 99.0 .392

6 .037a 1.0 100.0 .189

Table 8.10 Eigen Values

The eigen value is:


EigenValue=Betweengroups∑ of squares

Within groups∑ of squares

The largest Eigen value corresponds to the Eigen vector in the direction of the maximum

spread of the groups’ means. The second largest Eigen value corresponds to the Eigen vector

in the direction that has the next largest spread, and so on. The square root of each Eigen

value provides an indication of the length of the corresponding Eigen vector. Small Eigen

values result in Eigen vectors of essentially no length and account for very little of the total

dispersion. The ‘Percentage of Variance’ column allows us to evaluate which canonical

variable accounts for most of the spread. Here the first Eigen value is able to explain 37.8%

of variance and the second Eigen explains 32.2% of variance.

c) Wilks’ Lambda

Wilks' Lambda

Test of

Function(s) Wilks' Lambda Chi-square Df Sig.

1 through 6 .077 271.602 66 .000

2 through 6 .184 179.373 50 .000

3 through 6 .402 96.703 36 .000

4 through 6 .660 43.974 24 .008

5 through 6 .816 21.550 14 .088

6 .964 3.859 6 .696

Table 8.11 Wilks’ Lamda

The Table is used to identify the function which is significant in explaining the

differences among the groups. Wilks’ Lambda is the proportion of the total variance in the

Discriminant scores not explained by differences among the groups.

Wilks’ lambda ranges between 0 and 1.

Values close to 0 indicate the group means are different

Values close to 1 indicate the group means are not different.


Values equal to 1 indicate the group means are the same.

Here in the above table, we see that 1 , 2 and 3 through 6 of the test of function values is

closer to 0, this shows that the group means are different. And thus the first 3 functions

are significant .

d) Standardized Canonical Discriminant Function Coefficients

Standardized Canonical Discriminant Function Coefficients

Function

Attributes 1 2 3 4 5 6

Fashion consciousness -.157 .014 -.249 -.039 -.293 -.268

Brand image .004 .270 .415 -.069 -.428 -.169

Quality of merchandise .002 -.353 -.271 .347 .380 -.266

Size & design option .435 -.085 -.129 -.546 .415 -.165

Word of mouth .486 -.093 .281 -.099 -.376 .249

Feeling of exclusivity .210 -.044 .798 .461 .076 .159

Shop ambience .367 .760 -.124 .092 -.064 .133

Shop location .577 .298 .066 .685 .060 .160

Trust in the store -.027 .453 .158 .200 .206 .275

Ads or celebrity endorsement -.044 .443 .169 -.307 .711 -.393

Packaging of items -.222 -.207 -.190 -.162 -.070 .786

Table 8.12 Standardized Canonical Discriminant Function Coefficients

The higher value of the coefficients for a particular attribute on a function indicates the

higher loading for the same on that function. This is applicable when the variables are

measured in different units. The magnitude of the un-standardized coefficient provides little

indication of the relative contribution of the variable to the overall Discriminant function.

Standardizing the coefficient allows us to examine the relative standing of the measurements.

This table is used to plot “Attributes” on perceptual maps using “Microsoft Excel”.


e) Structure matrix

The structure matrix contains within – group correlations of each predictor variable with the

canonical function. The matrix also provides another way to study the usefulness of each

variable in the Discriminant function. For each variable, an asterix marks its absolute

correlation with one of the canonical functions. With each functions, these marked variables

are then ordered by the size of the relation.

Structure Matrix

Function

Attributes 1 2 3 4 5 6

Size & design option .715* -.173 -.004 -.515 .164 -.049

Word of mouth .612* -.177 .022 -.507 -.069 .154

Shop ambience .170 .572* -.351 .080 -.142 .135

Trust in the store -.135 .374* -.062 -.163 .296 .263

Feeling of exclusivity -.030 -.227 .781* .212 .134 .115

Quality of merchandise .150 -.161 -.401* .271 .375 -.205

Shop location .503 .129 -.113 .524* .025 .024

Ads or celebrity endorsement -.175 .378 .282 -.302 .601* -.077

Brand image -.010 .404 .344 -.129 -.418* -.305

Fashion consciousness .009 .185 -.153 -.193 -.301* -.274

Packaging of items -.157 .097 -.035 -.207 .179 .803*

Table 8.13 Table showing Structure matrix

In this table, The largest correlation of “size and design option” and “word of mouth” exists

with the function – 1.

The largest correlation of “shop ambience ” and “trust in the store” exists with

the function – 2.

The largest correlation of “Feeling of exclusivity” and “Quality of merchandise”

exists with the function – 3.

The largest correlation of “Shop location” exists with the function – 4.


The largest correlation of “Celebrity endorsements/Ads”, “Brand image” and

“Fashion consciousness” exists with the function – 5.

The largest correlation of “Packaging of items” exists with the function – 6.

The Table8.11 displays the canonical variable (Discriminant Function) means by group.

Within group means are computed for each canonical variable. Here in my analysis, only

Function -1 and Function -3 are used to plot the brands on the perceptual map.

f) Function at Group Centroids:

Functions at Group Centroids

which store was your

last purchase in?

Function

1 2 3 4 5 6

Central -1.485 .388 .868 .209 -.278 -.106

Lifestyle -.323 .993 -.969 -.421 .298 -.183

Shoppers stop .788 -.104 -1.578 .517 -1.141 .049

Brand factory 1.360 1.475 .252 .948 .512 .128

Max 3.212 .016 1.347 -.677 -.374 -.248

Megamart -.371 1.466 .345 -.991 -.253 .627

Exclusive outlets -.022 -1.294 -.055 -.006 .197 .055

Table 8.14 Function at Group Centroids

From Table,

The co-ordinates of X-axis and Y-axis are shown in the table below.


Brand X-axis Y-axis

Central -1.485 .868

Lifestyle -.323 -.969

Shoppers stop .788 -1.578

Brand Factory 1.360 .252

Max 3.212 1.347

Megamart -.371 .345

Exclusive outlets -.022 -.055

Table 8.15 Cartesian co-ordinates of brands on Discriminant function 1 and 3

Exhibit 3.3 showing Attributes and Stores

ATTRIBUTES

1 = Fashion consciousness/ fashion statement

7 = Shop ambience

2 = Brand name/ image 8 = Shop location

3 = Quality of merchandise 9 = Trust factor

4 =Availability of sizes & designs 10 = Ads/ celebrity endorsements

5 = Peer influence/ word of mouth 11 = Packaging

6 = Feeling of exclusivity

STORES

CL= Central MM=Mega Mart

LS=Lifestyle MX=Max

SS=Shoppers Stop EO/L=Exclusive Outlets

BF=Brand Factory


FIGURE 8.7Map:-Perceptual map

-2.000 -1.000 .000 1.000 2.000 3.000 4.000

-2.000

-1.500

-1.000

-.500

.000

.500

1.000

1.500

2.000

AttributeStore


MX

BF

SS

LS

CL

MM

EO/L

6

5

8

4,711

13

9,10

2

DIMENSION 1

DIM

ENSI

ON

2


Perceptual map of stores and attributes: Drawn using Excel, from SPSS output.

In the graph, the length of the arrow represents its effect in discriminating on each

dimension. Longer arrows pointing more closely towards a group centroid (store on the map)

represent variables most strongly associated with the group. Vectors pointing in the opposite

direction from a given group centroid represent lower association of the attribute with a store.

Variables with longer vectors in a given dimension, and those closest to a given

axis( dimension represented by discriminant function) are contributing more to the

interpretation of that dimension. Looking at all variables that contribute to a given axis

(dimension), we can label the dimension as a combination of those variables.

In this case the various points to be noted are:-

All the attributes are huddled up in the centre thus giving us an apprehension of being equally

important but going by their correlation with dimension we find that,

Attributes 4, 7 and 8 i.e. Availability of sizes & designs, Shop ambience and Shop

location respectively are closest to dimension 1 and thus Dimension 1 can be labeled

a combination of these three variables.

Attributes 2, 3 ,6,9 and 10 i.e. Brand name/ image, Quality of merchandise,

Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements respectively

are closest to dimension 2 and hence Dimension 2 can be labeled as a combination of

these.

Attributes 1, 5 and 11 i.e. Fashion consciousness/ fashion statement, Peer

influence/ word of mouth and Packaging are not close to either of the dimension

and thus are not useful in defining any of the two dimension.


STORES AND THEIR ASSOCIATION WITH ATTRIBUTES/DIMENSION

CENTRAL:-

Central as we see in the third quadrant is not close to any dimension and thus scores low on

both of them.

LIFESTYLE and SHOPPERS STOP:-

Lifestyle and shoppers stop are very acute towards the DIMENSION 2 and hence can be said

that they are known for the Brand name/ image, Quality of merchandise, Feeling of

exclusivity, Trust factor, and Ads/ celebrity endorsements respectively

BRAND FACTORY:-

Brand factory is close to DIMENSION 1 and thus is perceived well for its Availability of

sizes & designs, Shop ambience and Shop location. This finding seems to be contradicting in

nature since Brand factory is mostly known for value pricing and is not so good with sizes &

design option. It seems to be a typical case of stereotyping where in which due to “value for

money” attribute being largely on the side of brand factory, shoppers have rated it higher

even on the size and design attribute.

Though shop ambience and location are valid points since shoppers are quite relaxed inside

the store due to reasonably priced goods and the feeling of “ITS IN MY RANGE”. Shop

location is another point i.e. the proximity and easy access makes it rate higher on this

dimension.

MEGA MART:-

Mega mart is also lightly perceived by DIMENSION 2 but still the correlation is not very

high.


MAX:-

Max again is not close to any of the dimension and thus cannot be attributed any of the

dimension.

EXCLUSIVE OUTLETS:-

The exclusive outlets is right near the origin and thus is very strongly depicted by both the

dimensions, i.e. DIMENSION 1 and 2 both.

Thus it is strongly known for of sizes & designs, Shop ambience, Shop location Brand name/

image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity

endorsements. It also gives a logical explanation to higher frequency of exclusive outlets

purchase in the last purchases made.


8.5 ANALYZING OTHER ASPECTS RELATED TO SHOPPING

BEHAVIOR.

- Gifting behavior

- Checking preference of media( traditional v/s digital)

- What helps choose a shopping destination?

- Specifics of last purchase.

8.5 a) Gifting Behavior among youth

Gifts also account for a major share in the purchases now a days. With socialization turning a

lot more digital than before, it has had both positive and negative impacts on the gifting

behavior. The positives are in the field of e gifting and e cards with the traditional gifting

pattern taking a back seat. But going by this assumption we try to find out what is the most

preferred item of gift and also what is the normal range for buying gifts.

Table 8.16 Most preferred gifting item

.


Gift items Responses

Clothes 59

Bag 37

Watch 57

Jewellery 15

Others 10

Total 178

Graph 8.8 Most preferred gifting item

From the graph,

59 of 150 respondents prefer clothes or apparels when it comes to gifting.

37 of 150 respondents prefer bag as a gifting item.

57 of 150 respondents are in favor of watch as a good choice for gifts.

And 15 of 150 prefer jewellry as an apt gifting item.

This graph helps us analyze that apparels and watches are the safe choices among gifts

and are personal too. Thus it helps us get an idea on how the gifting market can be aptly

tapped.

To find out what is the price range for gifts, will help to get greater understanding of gifting market.

Table 8.16 Table showing Price range for gifts


Price range for gifts Frequency Percent Valid Percent

Valid Up to Rs.1000 41 27.3 34.2

Rs.1001-Rs.3000 47 31.3 39.2

Rs.3001-Rs.5000 16 10.7 13.3

>Rs.5001 16 10.7 13.3

Total 120 80.0 100.0

Missing 0 30 20.0

Total 150 100.0

upto 10001000-3000

3000-50005000 & above

41 47

1616

120

Graph 8.9 Graph showing Price range for gifts

Inference:-

Expenditure on a single item as a gift:-

41 of 120 respondents spend only up to Rs.1000 when it comes to gifting somebody.

47 of the 120 respondents spend in between Rs.1000 and Rs.3000 for gifts.

16 respondents each in the Rs.3000-5000 and Rs.5000 & above bracket.


With the major chunk being within the range of Rs.3000, value formats with the huge

discounts and offers are an ideal choice for gifts.

8.5 b) To find out the preference of media( traditional or digital)

Traditional media includes Ads in newspapers, magazines, bill boards, television etc.

Digital media refers to advertising through the use of World Wide Web.

Thus, going by the source of information about the latest trends and collection in stores,

Source of information No. of RespondentsTelevision 55Print ads 76Internet 40

Outdoor hoardings 13SMS’s and others 14

Table8.18 Table showing Source of information

Telev

ision a

ds

Print A

ds(mag

azines,

Nwsppr)

Internet

Outdoor hoard

ingsSM

S's

55

76

40

13 14

Graph 8.10 Graph showing preferred Source of information.


From the graph:-

With print ads being the popular choice, it is unnecessary to point out that people still

prefer the traditional mode of communication. It can mostly be associated to the fact

that most of the apparel and accessory ads are generally in the print form and helps as

a cue to the “ Limited problem solving” as the decision making process being

involved.

In limited problem solving, consumers have already established the basic criteria for

evaluating the product category and the various brands in the category. However, they

have not fully established preferences concerning a select group of brands. Their

search for additional information is like “fine tuning”; they must gather additional

brand information to discriminate among the various brands.

The second and third most important source of information are Television Ads and

Internet. It gives us an idea as to people would still prefer an ad in newspaper to a

dangler on internet. It actually gives an immense opportunity to marketers and

advertisers to explore the field and make it more reliable and customer friendly so

that customers don’t get intimidated by it

8.5 c) What helps choose a shopping destination?


value f

or money

avail

abilit

y of s

izes &

design

s

latest

fash

ion & tr

ends

shop am

bience

shop lo

cation

faciliti

es(park

ing,wash

rooms)

52 49 4635

28 23

Graph 8.11 Graph showing Factors affecting choices of shopping destination

Table 8.19 Table showing Weights of the above responses

Factors Weights attachedValue for money 0.34Availability of sizes and designs 0.32Latest fashion and trends 0.30Shop ambience 0.22Shop location 0.18Facilities 0.14

The top 3 factors are more or less on the same page with 0.34, 0.32 and 0.30 weights

attached to them.

“Value for money” tops the list as opposed to the popular belief that latest fashion

and trends drive one to a store. But with just 6 responses behind, latest fashion and

trends is also treated in a similar manner and thus leaves us with an inference that

only value for money won’t be enough and thus when all the three factors i.e. Value

for money and Latest trends and fashion and Availability of sizes and designs are

available it becomes the choice for shopping destination.


8.5 d) Specifics of last purchase:

Table 8.20 Table showing last store purchase was in

Frequency Percent Valid Percent

Cumulative

Percent

Valid Central 23 15.3 19.7 19.7

Lifestyle 20 13.3 17.1 36.8

Shoppers stop 8 5.3 6.8 43.6

Brand factory 11 7.3 9.4 53.0

Maxx 8 5.3 6.8 59.8

Mega mart 6 4.0 5.1 65.0

Exclusive outlets 41 27.3 35.0 100.0

Total 117 78.0 100.0

Missing 0 33 22.0

Total 150 100.0

Inference:- From the above data we see that Central rates high on sales even though the case v

scale and the perceptual map are not in favor of it.

Lifestyle is a close second with 17% response as opposed to 19.7% of Central.

Shoppers stop shockingly does not boast of a high purchase rate as of here. With only

6.8% response it stands lower than that of Brand factory’s 9.4%.

Going by the segmentation into Lifestyle based and value based, we can say that

Central is on top of the list for Lifestyle segment and Brand factory for value based.

And obviously the other major response is for the exclusive outlets which has also

been the case in Perceptual map.

9.1 FINDINGS


1. One of the most important findings in this study was that of the youth monthly potential

for apparels and accessories. The monthly potential for the same is Rs.1750 and it gives a

marketer a huge scope to build the promotional offers around it.

It also was cross checked with the help of details of last apparel or accessory purchase within

a month.

2. The second finding from the Thurstone Case V scale was that in the consumer order of

preference for various stores where does Central or Brand Factory stand.

Among 7 stores Central was at no.3 and Brand factory at no.6.

3. From the perceptual map we find that

STORES PERCEPTION1.

CENTRALNone

2.

LIFESTYLEBrand name/ image, Quality of merchandise, Feeling of

exclusivity, Trust factor, and Ads/ celebrity endorsements

3.

SHOPPERS STOP

Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust factor, and Ads/ celebrity endorsements

4.

BRAND FACTORY

Availability of sizes & designs, Shop ambience and Shop location

5.

MEGA MARTWeakly Availability of sizes & designs, Shop ambience and Shop

location

6.

MAX None

7.

EXCLUSIVE OUTLETS

Sizes & designs, Shop ambience, Shop location Brand name/ image, Quality of merchandise, Feeling of exclusivity, Trust

factor, and Ads/ celebrity endorsements

Table 8.21 Table Showing various stores and their perception

4. From the psychographic analysis, we find that


The common prevalent characteristic in Bangalore youth population is that of not being

trendy.

It also verifies the point where 66% of the respondents opined on not being trendy as it

doesn’t matter.

57% are not opinionated and thus we see the difference in perception and real purchases.

From Anova analysis,

We find that the purchases are dependent on the psychographic profiling of the shopper. In

other terms the psychographic profiling has a significant impact on purchases done by an

individual.

5. From Analyzing other aspects related to shopping behavior:-

Gifting behavior

The findings suggest that apparels, bags and watches are the popular choices among gifts

and are personal too. Also the amount for gifts is majorly within the range of Rs.3000.

Preferred source of communication

With print ads being the popular choice, it is unnecessary to point out that people still prefer

the traditional mode of communication. The second and third most important source of

information are Television Ads and Internet.

What factors affect choice of a shopping destination?

Value for money and Latest trends and fashion and Availability of sizes and designs are

available it becomes the choice for shopping destination.

9.2 RECOMMENDATION:-


A. As we see from the Brand perception mapping, Central is not recognized by any of the

attributes. This can also be seen in Thurstone case V scale where in Lifestyle and Shoppers

stop are ahead of Central But if we go by the details of last purchase there is a specific

difference between the results. Same is the case with Brand Factory. In the Case V scale it

trails behind Westside and Max but in volumes of purchases it is ahead of the two. The

problem mainly lies in the communication from the side of Brand or in this case, the agency.

It can also be attributed to the fact that Central or Brand factory don’t engage in customer

centric ads but only product Centric.

A major recommendation would be to build the brand communication around some

specific attributes which will help connect with the consumers and also help them retain

it in long term. The agency can further probe into the Perceptual value attached to the brand

considering Brand satisfaction and then come up with an Integrated Marketing

Communication plan.

B. Another important recommendation can be trying to categorize or customize the ads based

on youth psychographics of the area. As we have already seen through ANOVA test that

youth psychographics has an effect on the sales thus Psychographics have to be given due

importance. For e.g. we see in Bangalore, majority of the youth are not opinionated. They

are neither materialistic nor are they therefore, brand conscious. So in order to capture this

particular youth segment, the agency has to think in terms of communication which will

make the youth more and more brand conscious and thus leverage on the fact that once

they are aware of importance that brands will attach to their persona, the sales of stores

like central and Brand factory will swell, with a better Brand Image and perception.

C. The third recommendation would be regarding the media of communication. Even though

Internet and Sms’s have had their share in the responses, the traditional media still wins over


it. In case of an apparel and accessory store like that of Central or Lifestyle, we generally

don’t find Television commercial. They stick to the basics of newspapers and that of outdoor

hoardings. A television commercial will be more effective than the other media since Audio

visual medium is always one with a greater impact. In fact the agency has come up with a

television commercial for Central but it again is product centric. Thus, a Customer centric

TV commercial would help attach to the emotional part and also help build a stronger

brand perception and also help in brand recall, in terms required by the client.

D. In fact, another platform to advertise the brand should be through events. Though there

are a lot of in the mall events conducted very often, it doesn’t provide them an edge over

other shopping malls who also engage widely in such activities. The key here would be to

advertise via various youth clubs, associations and other exclusive groups. This would help

increase the penetration of the brand and also attach a feeling of exclusivity to it.

E. While advertising through print media, the concentration should shift from regular

newspaper to glossy magazines ranging across Fashion, Living and Travel. As a matter

of fact, magazines which are being provided exclusively during long hours of travel should

be one major market since there is a sense of relaxation in the way travelers they go through

the magazine and thus involves chances of in depth analysis of what they read, giving a

brand enough time capture the mind share of readers.

9.3 CONCLUSION:-


Thus, to incorporate the findings in establishment of a new store by the client, we can safely

say that if Future Group is interested in opening a new store, Central is a safe bet. With

specifics of last purchase, we find that the sales volumes have been high compared to all

other stores. The only problem here is the consumer perception of brand and that can be

enhanced with use of various consumer centric media tools. Also that the drift from value

based segment to lifestyle segment occurs due to availability of sizes and designs and latest

fashion and trends, thus in order to upgrade the Value based stores like Brand Factory, its

important that the width and depth of collections is wide. As an agency, Lintas’s main aim in

this case would be to portray Brand Factory in the same light.

From the project we conclude that general youth in Bangalore (with an average income of

Rs.7000 per month and 25% disposable income for apparels and accessory monthly) do not

attach much importance to trends and fashion. They also consume fashion in a way that

hugely shows their bent towards the Lifestyle segment stores( Central, Lifestyle, Shoppers

Stop, Exclusive outlets) and not the Value based segment stores( Brand Factory, Mega

mart) .


Final Project

Documents

ads celebrity

ad shoots

rediffusion

ammirati puris

executive

approx monthly

lever international

common prevalent