Paper on Studying the Link Between Volume of Media Coverage and Business Outcomes. By, Udit Joshi 2009 - 2010 Under the guidance of: Dr. Manish Agarwal Mr.Ashutosh Srivastava 1
Oct 19, 2014
Paper on
Studying the Link Between Volume of Media Coverage and Business Outcomes
By
Udit Joshi
2009 - 2010
Under the guidance of
Dr Manish Agarwal MrAshutosh Srivastava
Amity Business School Hanmer MSampL
1
INDEX
CONTENTS PAGE NO
Executive Summary 6
1 Introduction 9
11 Recession killing the marketing budgets13
12 LG Electronics India turnover15
2 Critical Review of Literature16
21 LG Electronics in India19
22 Press Releases of LG India21
23 Industry Coverage of Consumer Durables in India31
24 Public Relations for LG India34
25 Functioning of LGrsquos PR Agency37
3 Research Methodology40
31 Calculating Corelation40
32 Effect of PR on Consumer Behaviour42
4 Data Analysis 44
41 Corelation 44
42 Findings from the Survey45
43 Innovative ways of PR by LGrsquos PR Agency56
5 Conclusion 58
6 Annexure
61 Case Studies60
611 LG Electronics India60
612 Diamler Chrysler62
613 CNBC TV 1864
614 Sony Pictures Casino Royale66
62 Model of Buyer Behaviour68
63 Information Search Sources69
64 Buying Decision Behaiouor70
65 Public Relations Variables and Marketing Mix73
66 Questionnaire74
2
7 References 77
Executive Summary
So far there has been relatively little research into the contribution of public relations to brand value In
this study the statistical correlation between a brandrsquos media prominence and sales was assessed
While this study focused on how the volume of media coverage relates to brand value reputation in the
media is often a greater predictor of brand value and business outcomes such as sales In industries that
involve more research before purchases are made the editorial content that results from PR can account
for nearly half of brand value
In industries that exhibit a stronger link between media coverage and brand value managers in
these product categories need to pay special attention to the way the brandrsquos value is impacted by
its communications activities lsquoEarned mediarsquo that results from public relations efforts may be more
important than advertising to brand value especially for companies that sell feature-rich high-involvement
and complicated products such as consumer durables Findings from the study reveal that industries that
sell high involvement products - where a buyer invests time and effort in deciding what to buy - have
much higher correlations between media prominence and sales than industries selling low involvement
products which are more likely to be bought on impulse
The current economic crisis has once again thrust the marketing ROI issue into the spotlight I decided
that it is an extremely relevant time to take a close look at the role public relations played in brand
formation and sales It was my opinion that public relations would prove to play a crucial role in the
marketing mix A sizable amount of brand value particularly for high involvement industries is tied into
media coverage The study is exercised around the consumer durable company LG Electronics as it was
one of the clients I had worked for during the internship
John Grebe who established Dowrsquos Physical Research Lab once said ldquoIf you cannot measure it you
cannot control itrdquo The words ring especially true for marketers who often struggle to show the direct
value and impact of their programs on an organizationrsquos bottom line or their contribution to a brand The
question of getting a good return on marketing spend has been at the forefront of marketers minds since
clever people started coming up and spending money on creative ways to sell products Demonstrating a
good return has been easier for some forms of marketing than others Showing the financial impact of
online marketing for example is relatively easy Online marketing allows marketers to see direct
connections between ad placements and consumer behavior
3
It has however been significantly more difficult to measure the value of PR however since the effects of
media coverage (a composite of headline lead paragraph and text mentions in independent media
coverage that is not paid for by the brand owner) on behavior has to be measured indirectly While more
difficult it is not impossible to draw connections between how much a company spends on PR and how
much value the company is creating
lsquoEarned mediarsquo that results from public relations efforts may be more important than advertising to brand
value especially for companies that sell feature-rich high-involvement and complicated products such as
consumer durables Findings from the study reveal that industries that sell high involvement products -
where a buyer invests time and effort in deciding what to buy - have much higher correlations between
media prominence and brand value than industries selling low involvement products which are more
likely to be bought on impulse
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some drivers most commonly cited and
studied One could interpret this study as showing that high brand value leads to more media coverage it
is still important for media coverage to be carefully managed since it is the window through which others
will see the brand
This paper argues the significance and identity as a profession as not just a service industry of influential
experts but it has a strong connection to issues of size and economic impact on society at large While
most public relations practitioners would instinctively agree to the existence of this prolific industry only a
few studies albeit have actually been published on the topic within industry literature This is lacking
especially in the Indian context
4
Chapter 1
Introduction
Today it seems that there is the limitation of cost expense Many corporation need to keep their
expenditure as low as they can and also think carefully about cost efficiency and effectiveness PR can
take that responsibility because in terms of MPR there is low and sometimes no cost of expenditure
Sometimes the business is able to ask the media to release its news and to expand the time frequency if
it has good media relations As a result it can be modified to any kind of business including
governmental private and non-governmental organizations Although PR could offer many advantages
there is the limitation of media control Unlike the advertising PR is powered by the influence of the
media That is to say the satisfaction of time and space as well as news contents are confined by the
hand of media while in terms of advertising the company can control such issues by itself
Consequently it seems that PR is more advantageous than disadvantageous However in some cases
the company needs to realize the PR drawbacks before making decisions PR is not only managed by the
internal influence an organization but the marketing perspective and consumer-orientation also power
PR execution Many companies are employing marketing public relations (MPR) which can lead the
organization to outstanding achievement and effectiveness
Public Relations involves a variety of programs designed to maintain or enhance a companys image and
the products and services it offers Successful implementation of an effective public relations strategy can
be a critical component to a marketing plan
A public relations (PR) strategy may play a key role in an organizations promotional strategy A planned
approach to leveraging public relations opportunities can be just as important as advertising and sales
promotions Public Relations is one of the most effective methods to communicate and relate to the
market It is powerful and once things are in motion it is the most cost effective of all promotional
activities In some cases it is free
The success of well executed PR plans can be seen through several organizations that have made it a
central focus of their promotional strategy Paul Newmans Salad Dressing The Body Shop and Ben amp
Jerrys Ice Cream have positioned their organizations through effective PR strategies Intel Sprint and
Microsoft have leveraged public relations to introduce and promote new products and services
Similar to the foundational goals of marketing effective public relations seeks to communicate information
to
5
Launch new products and services
Reposition a product or service
Create or increase interest in a product service or brand
Influence specific target groups
Defend products or services that have suffered from negative press or perception
Enhance the firms overall image
The result of an effective public relations strategy is to generate additional
revenue through greater awareness and information for the products and services
an organization offers
Goals and Objectives
Good strategy begins with identifying your goals and stating your objectives What are the goals and
objectives behind your public relations strategy and can they be measured and quantified
Each of these areas may reflect the goals your public relations campaign may seek to accomplish
Press relations
Communicating news and information of interest about organizations in the most positive light
Product and service promotion
Sponsoring various efforts to publicize specific products or services
Firm communications
Promoting a better and more attractive understanding of the organization with internal and external
communications
Lobbying
Communicating with key individuals to positively influence legislation and regulation
Internal feedback
Advising decision makers within the organization regarding the publics perception and advising actions to
be taken to change negative opinions
Tasks - responsibility areas
Experts prescribers
Communication technicians
Communication facilitators
Problem solving process facilitators
Experts prescribers
Initiate and recommend PR projects
Develop long term strategic PR plans
6
Define PR problems and solutions
Serve as liaisons interpreters and mediators between the organisation and its publics
Evaluate public opinion program results and competitive intelligence
Plan a budget operating on it accounting for the outcome
Superve institutional advertising programs
Communication technicians
Arrange for production of printed matter slides films (News releases house publications
publicity of products amp services competitive intelligence shows exhibits amp special events)
Writing (preparation of speeches scripts)
Editing (preparation of graphics or films)
Preparing speeches for others and giving speeches
Training spokespersons being one
Communication facilitators
Industrial relations
represent employer at various events
contact other public officials
co-ordinate activities among various functional groups to achieve PR objectives
Prepare reports position papers public statements
Submit newsworthy material to appropriate outlets
Problem solving process facilitators
Collaborate with other managers to define and solve organisational problems
Prepare annual PR plans
Implement approved plans and programs
Regularly analyse and report PR research data to management
Monitor actual results against planned performance
Monitor environmental developments likely to have a significant impact on PR performance
7
8
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
INDEX
CONTENTS PAGE NO
Executive Summary 6
1 Introduction 9
11 Recession killing the marketing budgets13
12 LG Electronics India turnover15
2 Critical Review of Literature16
21 LG Electronics in India19
22 Press Releases of LG India21
23 Industry Coverage of Consumer Durables in India31
24 Public Relations for LG India34
25 Functioning of LGrsquos PR Agency37
3 Research Methodology40
31 Calculating Corelation40
32 Effect of PR on Consumer Behaviour42
4 Data Analysis 44
41 Corelation 44
42 Findings from the Survey45
43 Innovative ways of PR by LGrsquos PR Agency56
5 Conclusion 58
6 Annexure
61 Case Studies60
611 LG Electronics India60
612 Diamler Chrysler62
613 CNBC TV 1864
614 Sony Pictures Casino Royale66
62 Model of Buyer Behaviour68
63 Information Search Sources69
64 Buying Decision Behaiouor70
65 Public Relations Variables and Marketing Mix73
66 Questionnaire74
2
7 References 77
Executive Summary
So far there has been relatively little research into the contribution of public relations to brand value In
this study the statistical correlation between a brandrsquos media prominence and sales was assessed
While this study focused on how the volume of media coverage relates to brand value reputation in the
media is often a greater predictor of brand value and business outcomes such as sales In industries that
involve more research before purchases are made the editorial content that results from PR can account
for nearly half of brand value
In industries that exhibit a stronger link between media coverage and brand value managers in
these product categories need to pay special attention to the way the brandrsquos value is impacted by
its communications activities lsquoEarned mediarsquo that results from public relations efforts may be more
important than advertising to brand value especially for companies that sell feature-rich high-involvement
and complicated products such as consumer durables Findings from the study reveal that industries that
sell high involvement products - where a buyer invests time and effort in deciding what to buy - have
much higher correlations between media prominence and sales than industries selling low involvement
products which are more likely to be bought on impulse
The current economic crisis has once again thrust the marketing ROI issue into the spotlight I decided
that it is an extremely relevant time to take a close look at the role public relations played in brand
formation and sales It was my opinion that public relations would prove to play a crucial role in the
marketing mix A sizable amount of brand value particularly for high involvement industries is tied into
media coverage The study is exercised around the consumer durable company LG Electronics as it was
one of the clients I had worked for during the internship
John Grebe who established Dowrsquos Physical Research Lab once said ldquoIf you cannot measure it you
cannot control itrdquo The words ring especially true for marketers who often struggle to show the direct
value and impact of their programs on an organizationrsquos bottom line or their contribution to a brand The
question of getting a good return on marketing spend has been at the forefront of marketers minds since
clever people started coming up and spending money on creative ways to sell products Demonstrating a
good return has been easier for some forms of marketing than others Showing the financial impact of
online marketing for example is relatively easy Online marketing allows marketers to see direct
connections between ad placements and consumer behavior
3
It has however been significantly more difficult to measure the value of PR however since the effects of
media coverage (a composite of headline lead paragraph and text mentions in independent media
coverage that is not paid for by the brand owner) on behavior has to be measured indirectly While more
difficult it is not impossible to draw connections between how much a company spends on PR and how
much value the company is creating
lsquoEarned mediarsquo that results from public relations efforts may be more important than advertising to brand
value especially for companies that sell feature-rich high-involvement and complicated products such as
consumer durables Findings from the study reveal that industries that sell high involvement products -
where a buyer invests time and effort in deciding what to buy - have much higher correlations between
media prominence and brand value than industries selling low involvement products which are more
likely to be bought on impulse
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some drivers most commonly cited and
studied One could interpret this study as showing that high brand value leads to more media coverage it
is still important for media coverage to be carefully managed since it is the window through which others
will see the brand
This paper argues the significance and identity as a profession as not just a service industry of influential
experts but it has a strong connection to issues of size and economic impact on society at large While
most public relations practitioners would instinctively agree to the existence of this prolific industry only a
few studies albeit have actually been published on the topic within industry literature This is lacking
especially in the Indian context
4
Chapter 1
Introduction
Today it seems that there is the limitation of cost expense Many corporation need to keep their
expenditure as low as they can and also think carefully about cost efficiency and effectiveness PR can
take that responsibility because in terms of MPR there is low and sometimes no cost of expenditure
Sometimes the business is able to ask the media to release its news and to expand the time frequency if
it has good media relations As a result it can be modified to any kind of business including
governmental private and non-governmental organizations Although PR could offer many advantages
there is the limitation of media control Unlike the advertising PR is powered by the influence of the
media That is to say the satisfaction of time and space as well as news contents are confined by the
hand of media while in terms of advertising the company can control such issues by itself
Consequently it seems that PR is more advantageous than disadvantageous However in some cases
the company needs to realize the PR drawbacks before making decisions PR is not only managed by the
internal influence an organization but the marketing perspective and consumer-orientation also power
PR execution Many companies are employing marketing public relations (MPR) which can lead the
organization to outstanding achievement and effectiveness
Public Relations involves a variety of programs designed to maintain or enhance a companys image and
the products and services it offers Successful implementation of an effective public relations strategy can
be a critical component to a marketing plan
A public relations (PR) strategy may play a key role in an organizations promotional strategy A planned
approach to leveraging public relations opportunities can be just as important as advertising and sales
promotions Public Relations is one of the most effective methods to communicate and relate to the
market It is powerful and once things are in motion it is the most cost effective of all promotional
activities In some cases it is free
The success of well executed PR plans can be seen through several organizations that have made it a
central focus of their promotional strategy Paul Newmans Salad Dressing The Body Shop and Ben amp
Jerrys Ice Cream have positioned their organizations through effective PR strategies Intel Sprint and
Microsoft have leveraged public relations to introduce and promote new products and services
Similar to the foundational goals of marketing effective public relations seeks to communicate information
to
5
Launch new products and services
Reposition a product or service
Create or increase interest in a product service or brand
Influence specific target groups
Defend products or services that have suffered from negative press or perception
Enhance the firms overall image
The result of an effective public relations strategy is to generate additional
revenue through greater awareness and information for the products and services
an organization offers
Goals and Objectives
Good strategy begins with identifying your goals and stating your objectives What are the goals and
objectives behind your public relations strategy and can they be measured and quantified
Each of these areas may reflect the goals your public relations campaign may seek to accomplish
Press relations
Communicating news and information of interest about organizations in the most positive light
Product and service promotion
Sponsoring various efforts to publicize specific products or services
Firm communications
Promoting a better and more attractive understanding of the organization with internal and external
communications
Lobbying
Communicating with key individuals to positively influence legislation and regulation
Internal feedback
Advising decision makers within the organization regarding the publics perception and advising actions to
be taken to change negative opinions
Tasks - responsibility areas
Experts prescribers
Communication technicians
Communication facilitators
Problem solving process facilitators
Experts prescribers
Initiate and recommend PR projects
Develop long term strategic PR plans
6
Define PR problems and solutions
Serve as liaisons interpreters and mediators between the organisation and its publics
Evaluate public opinion program results and competitive intelligence
Plan a budget operating on it accounting for the outcome
Superve institutional advertising programs
Communication technicians
Arrange for production of printed matter slides films (News releases house publications
publicity of products amp services competitive intelligence shows exhibits amp special events)
Writing (preparation of speeches scripts)
Editing (preparation of graphics or films)
Preparing speeches for others and giving speeches
Training spokespersons being one
Communication facilitators
Industrial relations
represent employer at various events
contact other public officials
co-ordinate activities among various functional groups to achieve PR objectives
Prepare reports position papers public statements
Submit newsworthy material to appropriate outlets
Problem solving process facilitators
Collaborate with other managers to define and solve organisational problems
Prepare annual PR plans
Implement approved plans and programs
Regularly analyse and report PR research data to management
Monitor actual results against planned performance
Monitor environmental developments likely to have a significant impact on PR performance
7
8
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
7 References 77
Executive Summary
So far there has been relatively little research into the contribution of public relations to brand value In
this study the statistical correlation between a brandrsquos media prominence and sales was assessed
While this study focused on how the volume of media coverage relates to brand value reputation in the
media is often a greater predictor of brand value and business outcomes such as sales In industries that
involve more research before purchases are made the editorial content that results from PR can account
for nearly half of brand value
In industries that exhibit a stronger link between media coverage and brand value managers in
these product categories need to pay special attention to the way the brandrsquos value is impacted by
its communications activities lsquoEarned mediarsquo that results from public relations efforts may be more
important than advertising to brand value especially for companies that sell feature-rich high-involvement
and complicated products such as consumer durables Findings from the study reveal that industries that
sell high involvement products - where a buyer invests time and effort in deciding what to buy - have
much higher correlations between media prominence and sales than industries selling low involvement
products which are more likely to be bought on impulse
The current economic crisis has once again thrust the marketing ROI issue into the spotlight I decided
that it is an extremely relevant time to take a close look at the role public relations played in brand
formation and sales It was my opinion that public relations would prove to play a crucial role in the
marketing mix A sizable amount of brand value particularly for high involvement industries is tied into
media coverage The study is exercised around the consumer durable company LG Electronics as it was
one of the clients I had worked for during the internship
John Grebe who established Dowrsquos Physical Research Lab once said ldquoIf you cannot measure it you
cannot control itrdquo The words ring especially true for marketers who often struggle to show the direct
value and impact of their programs on an organizationrsquos bottom line or their contribution to a brand The
question of getting a good return on marketing spend has been at the forefront of marketers minds since
clever people started coming up and spending money on creative ways to sell products Demonstrating a
good return has been easier for some forms of marketing than others Showing the financial impact of
online marketing for example is relatively easy Online marketing allows marketers to see direct
connections between ad placements and consumer behavior
3
It has however been significantly more difficult to measure the value of PR however since the effects of
media coverage (a composite of headline lead paragraph and text mentions in independent media
coverage that is not paid for by the brand owner) on behavior has to be measured indirectly While more
difficult it is not impossible to draw connections between how much a company spends on PR and how
much value the company is creating
lsquoEarned mediarsquo that results from public relations efforts may be more important than advertising to brand
value especially for companies that sell feature-rich high-involvement and complicated products such as
consumer durables Findings from the study reveal that industries that sell high involvement products -
where a buyer invests time and effort in deciding what to buy - have much higher correlations between
media prominence and brand value than industries selling low involvement products which are more
likely to be bought on impulse
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some drivers most commonly cited and
studied One could interpret this study as showing that high brand value leads to more media coverage it
is still important for media coverage to be carefully managed since it is the window through which others
will see the brand
This paper argues the significance and identity as a profession as not just a service industry of influential
experts but it has a strong connection to issues of size and economic impact on society at large While
most public relations practitioners would instinctively agree to the existence of this prolific industry only a
few studies albeit have actually been published on the topic within industry literature This is lacking
especially in the Indian context
4
Chapter 1
Introduction
Today it seems that there is the limitation of cost expense Many corporation need to keep their
expenditure as low as they can and also think carefully about cost efficiency and effectiveness PR can
take that responsibility because in terms of MPR there is low and sometimes no cost of expenditure
Sometimes the business is able to ask the media to release its news and to expand the time frequency if
it has good media relations As a result it can be modified to any kind of business including
governmental private and non-governmental organizations Although PR could offer many advantages
there is the limitation of media control Unlike the advertising PR is powered by the influence of the
media That is to say the satisfaction of time and space as well as news contents are confined by the
hand of media while in terms of advertising the company can control such issues by itself
Consequently it seems that PR is more advantageous than disadvantageous However in some cases
the company needs to realize the PR drawbacks before making decisions PR is not only managed by the
internal influence an organization but the marketing perspective and consumer-orientation also power
PR execution Many companies are employing marketing public relations (MPR) which can lead the
organization to outstanding achievement and effectiveness
Public Relations involves a variety of programs designed to maintain or enhance a companys image and
the products and services it offers Successful implementation of an effective public relations strategy can
be a critical component to a marketing plan
A public relations (PR) strategy may play a key role in an organizations promotional strategy A planned
approach to leveraging public relations opportunities can be just as important as advertising and sales
promotions Public Relations is one of the most effective methods to communicate and relate to the
market It is powerful and once things are in motion it is the most cost effective of all promotional
activities In some cases it is free
The success of well executed PR plans can be seen through several organizations that have made it a
central focus of their promotional strategy Paul Newmans Salad Dressing The Body Shop and Ben amp
Jerrys Ice Cream have positioned their organizations through effective PR strategies Intel Sprint and
Microsoft have leveraged public relations to introduce and promote new products and services
Similar to the foundational goals of marketing effective public relations seeks to communicate information
to
5
Launch new products and services
Reposition a product or service
Create or increase interest in a product service or brand
Influence specific target groups
Defend products or services that have suffered from negative press or perception
Enhance the firms overall image
The result of an effective public relations strategy is to generate additional
revenue through greater awareness and information for the products and services
an organization offers
Goals and Objectives
Good strategy begins with identifying your goals and stating your objectives What are the goals and
objectives behind your public relations strategy and can they be measured and quantified
Each of these areas may reflect the goals your public relations campaign may seek to accomplish
Press relations
Communicating news and information of interest about organizations in the most positive light
Product and service promotion
Sponsoring various efforts to publicize specific products or services
Firm communications
Promoting a better and more attractive understanding of the organization with internal and external
communications
Lobbying
Communicating with key individuals to positively influence legislation and regulation
Internal feedback
Advising decision makers within the organization regarding the publics perception and advising actions to
be taken to change negative opinions
Tasks - responsibility areas
Experts prescribers
Communication technicians
Communication facilitators
Problem solving process facilitators
Experts prescribers
Initiate and recommend PR projects
Develop long term strategic PR plans
6
Define PR problems and solutions
Serve as liaisons interpreters and mediators between the organisation and its publics
Evaluate public opinion program results and competitive intelligence
Plan a budget operating on it accounting for the outcome
Superve institutional advertising programs
Communication technicians
Arrange for production of printed matter slides films (News releases house publications
publicity of products amp services competitive intelligence shows exhibits amp special events)
Writing (preparation of speeches scripts)
Editing (preparation of graphics or films)
Preparing speeches for others and giving speeches
Training spokespersons being one
Communication facilitators
Industrial relations
represent employer at various events
contact other public officials
co-ordinate activities among various functional groups to achieve PR objectives
Prepare reports position papers public statements
Submit newsworthy material to appropriate outlets
Problem solving process facilitators
Collaborate with other managers to define and solve organisational problems
Prepare annual PR plans
Implement approved plans and programs
Regularly analyse and report PR research data to management
Monitor actual results against planned performance
Monitor environmental developments likely to have a significant impact on PR performance
7
8
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
It has however been significantly more difficult to measure the value of PR however since the effects of
media coverage (a composite of headline lead paragraph and text mentions in independent media
coverage that is not paid for by the brand owner) on behavior has to be measured indirectly While more
difficult it is not impossible to draw connections between how much a company spends on PR and how
much value the company is creating
lsquoEarned mediarsquo that results from public relations efforts may be more important than advertising to brand
value especially for companies that sell feature-rich high-involvement and complicated products such as
consumer durables Findings from the study reveal that industries that sell high involvement products -
where a buyer invests time and effort in deciding what to buy - have much higher correlations between
media prominence and brand value than industries selling low involvement products which are more
likely to be bought on impulse
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some drivers most commonly cited and
studied One could interpret this study as showing that high brand value leads to more media coverage it
is still important for media coverage to be carefully managed since it is the window through which others
will see the brand
This paper argues the significance and identity as a profession as not just a service industry of influential
experts but it has a strong connection to issues of size and economic impact on society at large While
most public relations practitioners would instinctively agree to the existence of this prolific industry only a
few studies albeit have actually been published on the topic within industry literature This is lacking
especially in the Indian context
4
Chapter 1
Introduction
Today it seems that there is the limitation of cost expense Many corporation need to keep their
expenditure as low as they can and also think carefully about cost efficiency and effectiveness PR can
take that responsibility because in terms of MPR there is low and sometimes no cost of expenditure
Sometimes the business is able to ask the media to release its news and to expand the time frequency if
it has good media relations As a result it can be modified to any kind of business including
governmental private and non-governmental organizations Although PR could offer many advantages
there is the limitation of media control Unlike the advertising PR is powered by the influence of the
media That is to say the satisfaction of time and space as well as news contents are confined by the
hand of media while in terms of advertising the company can control such issues by itself
Consequently it seems that PR is more advantageous than disadvantageous However in some cases
the company needs to realize the PR drawbacks before making decisions PR is not only managed by the
internal influence an organization but the marketing perspective and consumer-orientation also power
PR execution Many companies are employing marketing public relations (MPR) which can lead the
organization to outstanding achievement and effectiveness
Public Relations involves a variety of programs designed to maintain or enhance a companys image and
the products and services it offers Successful implementation of an effective public relations strategy can
be a critical component to a marketing plan
A public relations (PR) strategy may play a key role in an organizations promotional strategy A planned
approach to leveraging public relations opportunities can be just as important as advertising and sales
promotions Public Relations is one of the most effective methods to communicate and relate to the
market It is powerful and once things are in motion it is the most cost effective of all promotional
activities In some cases it is free
The success of well executed PR plans can be seen through several organizations that have made it a
central focus of their promotional strategy Paul Newmans Salad Dressing The Body Shop and Ben amp
Jerrys Ice Cream have positioned their organizations through effective PR strategies Intel Sprint and
Microsoft have leveraged public relations to introduce and promote new products and services
Similar to the foundational goals of marketing effective public relations seeks to communicate information
to
5
Launch new products and services
Reposition a product or service
Create or increase interest in a product service or brand
Influence specific target groups
Defend products or services that have suffered from negative press or perception
Enhance the firms overall image
The result of an effective public relations strategy is to generate additional
revenue through greater awareness and information for the products and services
an organization offers
Goals and Objectives
Good strategy begins with identifying your goals and stating your objectives What are the goals and
objectives behind your public relations strategy and can they be measured and quantified
Each of these areas may reflect the goals your public relations campaign may seek to accomplish
Press relations
Communicating news and information of interest about organizations in the most positive light
Product and service promotion
Sponsoring various efforts to publicize specific products or services
Firm communications
Promoting a better and more attractive understanding of the organization with internal and external
communications
Lobbying
Communicating with key individuals to positively influence legislation and regulation
Internal feedback
Advising decision makers within the organization regarding the publics perception and advising actions to
be taken to change negative opinions
Tasks - responsibility areas
Experts prescribers
Communication technicians
Communication facilitators
Problem solving process facilitators
Experts prescribers
Initiate and recommend PR projects
Develop long term strategic PR plans
6
Define PR problems and solutions
Serve as liaisons interpreters and mediators between the organisation and its publics
Evaluate public opinion program results and competitive intelligence
Plan a budget operating on it accounting for the outcome
Superve institutional advertising programs
Communication technicians
Arrange for production of printed matter slides films (News releases house publications
publicity of products amp services competitive intelligence shows exhibits amp special events)
Writing (preparation of speeches scripts)
Editing (preparation of graphics or films)
Preparing speeches for others and giving speeches
Training spokespersons being one
Communication facilitators
Industrial relations
represent employer at various events
contact other public officials
co-ordinate activities among various functional groups to achieve PR objectives
Prepare reports position papers public statements
Submit newsworthy material to appropriate outlets
Problem solving process facilitators
Collaborate with other managers to define and solve organisational problems
Prepare annual PR plans
Implement approved plans and programs
Regularly analyse and report PR research data to management
Monitor actual results against planned performance
Monitor environmental developments likely to have a significant impact on PR performance
7
8
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 1
Introduction
Today it seems that there is the limitation of cost expense Many corporation need to keep their
expenditure as low as they can and also think carefully about cost efficiency and effectiveness PR can
take that responsibility because in terms of MPR there is low and sometimes no cost of expenditure
Sometimes the business is able to ask the media to release its news and to expand the time frequency if
it has good media relations As a result it can be modified to any kind of business including
governmental private and non-governmental organizations Although PR could offer many advantages
there is the limitation of media control Unlike the advertising PR is powered by the influence of the
media That is to say the satisfaction of time and space as well as news contents are confined by the
hand of media while in terms of advertising the company can control such issues by itself
Consequently it seems that PR is more advantageous than disadvantageous However in some cases
the company needs to realize the PR drawbacks before making decisions PR is not only managed by the
internal influence an organization but the marketing perspective and consumer-orientation also power
PR execution Many companies are employing marketing public relations (MPR) which can lead the
organization to outstanding achievement and effectiveness
Public Relations involves a variety of programs designed to maintain or enhance a companys image and
the products and services it offers Successful implementation of an effective public relations strategy can
be a critical component to a marketing plan
A public relations (PR) strategy may play a key role in an organizations promotional strategy A planned
approach to leveraging public relations opportunities can be just as important as advertising and sales
promotions Public Relations is one of the most effective methods to communicate and relate to the
market It is powerful and once things are in motion it is the most cost effective of all promotional
activities In some cases it is free
The success of well executed PR plans can be seen through several organizations that have made it a
central focus of their promotional strategy Paul Newmans Salad Dressing The Body Shop and Ben amp
Jerrys Ice Cream have positioned their organizations through effective PR strategies Intel Sprint and
Microsoft have leveraged public relations to introduce and promote new products and services
Similar to the foundational goals of marketing effective public relations seeks to communicate information
to
5
Launch new products and services
Reposition a product or service
Create or increase interest in a product service or brand
Influence specific target groups
Defend products or services that have suffered from negative press or perception
Enhance the firms overall image
The result of an effective public relations strategy is to generate additional
revenue through greater awareness and information for the products and services
an organization offers
Goals and Objectives
Good strategy begins with identifying your goals and stating your objectives What are the goals and
objectives behind your public relations strategy and can they be measured and quantified
Each of these areas may reflect the goals your public relations campaign may seek to accomplish
Press relations
Communicating news and information of interest about organizations in the most positive light
Product and service promotion
Sponsoring various efforts to publicize specific products or services
Firm communications
Promoting a better and more attractive understanding of the organization with internal and external
communications
Lobbying
Communicating with key individuals to positively influence legislation and regulation
Internal feedback
Advising decision makers within the organization regarding the publics perception and advising actions to
be taken to change negative opinions
Tasks - responsibility areas
Experts prescribers
Communication technicians
Communication facilitators
Problem solving process facilitators
Experts prescribers
Initiate and recommend PR projects
Develop long term strategic PR plans
6
Define PR problems and solutions
Serve as liaisons interpreters and mediators between the organisation and its publics
Evaluate public opinion program results and competitive intelligence
Plan a budget operating on it accounting for the outcome
Superve institutional advertising programs
Communication technicians
Arrange for production of printed matter slides films (News releases house publications
publicity of products amp services competitive intelligence shows exhibits amp special events)
Writing (preparation of speeches scripts)
Editing (preparation of graphics or films)
Preparing speeches for others and giving speeches
Training spokespersons being one
Communication facilitators
Industrial relations
represent employer at various events
contact other public officials
co-ordinate activities among various functional groups to achieve PR objectives
Prepare reports position papers public statements
Submit newsworthy material to appropriate outlets
Problem solving process facilitators
Collaborate with other managers to define and solve organisational problems
Prepare annual PR plans
Implement approved plans and programs
Regularly analyse and report PR research data to management
Monitor actual results against planned performance
Monitor environmental developments likely to have a significant impact on PR performance
7
8
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Launch new products and services
Reposition a product or service
Create or increase interest in a product service or brand
Influence specific target groups
Defend products or services that have suffered from negative press or perception
Enhance the firms overall image
The result of an effective public relations strategy is to generate additional
revenue through greater awareness and information for the products and services
an organization offers
Goals and Objectives
Good strategy begins with identifying your goals and stating your objectives What are the goals and
objectives behind your public relations strategy and can they be measured and quantified
Each of these areas may reflect the goals your public relations campaign may seek to accomplish
Press relations
Communicating news and information of interest about organizations in the most positive light
Product and service promotion
Sponsoring various efforts to publicize specific products or services
Firm communications
Promoting a better and more attractive understanding of the organization with internal and external
communications
Lobbying
Communicating with key individuals to positively influence legislation and regulation
Internal feedback
Advising decision makers within the organization regarding the publics perception and advising actions to
be taken to change negative opinions
Tasks - responsibility areas
Experts prescribers
Communication technicians
Communication facilitators
Problem solving process facilitators
Experts prescribers
Initiate and recommend PR projects
Develop long term strategic PR plans
6
Define PR problems and solutions
Serve as liaisons interpreters and mediators between the organisation and its publics
Evaluate public opinion program results and competitive intelligence
Plan a budget operating on it accounting for the outcome
Superve institutional advertising programs
Communication technicians
Arrange for production of printed matter slides films (News releases house publications
publicity of products amp services competitive intelligence shows exhibits amp special events)
Writing (preparation of speeches scripts)
Editing (preparation of graphics or films)
Preparing speeches for others and giving speeches
Training spokespersons being one
Communication facilitators
Industrial relations
represent employer at various events
contact other public officials
co-ordinate activities among various functional groups to achieve PR objectives
Prepare reports position papers public statements
Submit newsworthy material to appropriate outlets
Problem solving process facilitators
Collaborate with other managers to define and solve organisational problems
Prepare annual PR plans
Implement approved plans and programs
Regularly analyse and report PR research data to management
Monitor actual results against planned performance
Monitor environmental developments likely to have a significant impact on PR performance
7
8
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Define PR problems and solutions
Serve as liaisons interpreters and mediators between the organisation and its publics
Evaluate public opinion program results and competitive intelligence
Plan a budget operating on it accounting for the outcome
Superve institutional advertising programs
Communication technicians
Arrange for production of printed matter slides films (News releases house publications
publicity of products amp services competitive intelligence shows exhibits amp special events)
Writing (preparation of speeches scripts)
Editing (preparation of graphics or films)
Preparing speeches for others and giving speeches
Training spokespersons being one
Communication facilitators
Industrial relations
represent employer at various events
contact other public officials
co-ordinate activities among various functional groups to achieve PR objectives
Prepare reports position papers public statements
Submit newsworthy material to appropriate outlets
Problem solving process facilitators
Collaborate with other managers to define and solve organisational problems
Prepare annual PR plans
Implement approved plans and programs
Regularly analyse and report PR research data to management
Monitor actual results against planned performance
Monitor environmental developments likely to have a significant impact on PR performance
7
8
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
8
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 11
Recession killing the marketing budgets
Todayrsquos economic uncertainty is causing many companies to rethink and cut their marketing expenditures
for year 2009 Managers are working hard to determine where next yearrsquos smaller budget can be best
spent
What this means is that marketing budgets are among the first to be cut when managers are trying to find
ways to drive down costs in order to retain shareholder confidence and stay afloat Because marketing
expenditure is treated as an annual expense managers often justify the decimation of marketing budgets
on the basis that the effects will only be felt in the current year The view is that once the recession ends
we can return to our previous levels of marketing expenditure
The Nielsen Company has just released data that shows advertising expenditure in the US fell 154 in
the first half of 2009 A total of $569 billion was spent on advertising in the first six months of the year
$103 billion less than the same time period in 2008 All evidence that in times of recession marketing
budgets are amount the first to be cut
A new Association of National Advertisers (ANA) study this summer shows that 53 of ANA member
respondents believe their overall marketing budgets will be reduced up to 10 with almost a third saying
it will be in the 11-20 range What else is new Isnrsquot marketing seen as a luxury in some organizations
Are you battling the Big Cheese to maintain your marketing budget
Our own MarketingProfs guru and founder Roy Young says we need to make marketing matter to the
CEO I guess these ANA members are having a hard time doing that
The study indicates what respondents plan to cut
69 said ad campaign media budgets
63 said production budgets
63 are making their agencies cut internal expenses andor identify cost reductions
63 said travel and expenses
61 said eliminating or delaying new projects
When business is good these basics can be applied to all marketing media including publication ads
tradeshow exhibits and direct mail Today markets are down Sales are uncertain and budgets are being
reduced Magazine advertising and tradeshows are expensive and ROI is difficult to track As advertisers
trim their budgets publications will lose ad lineage and cut their editorial coverage and distribution This
means less people are reading a less interesting magazine that contains your ad Though print media is
9
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
ideal for creating top of mind awareness and reinforcing brand recognition it seems more expensive
during down markets
Tradeshows also suffer during economic downturns Attendees suspend costly travel and exhibitors
reduce floor space or cut the number of events they support Direct mail does not fare much better Even
with printers holding prices down short run full color projects still begin around $1000 and go up Add
postage and direct mail becomes an expensive proposition
10
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 12
LG Electronics India turnover in 2008 and in 2009
LG India achieved Rs 10730 crore turnover in calender 2008 Unfazed by the slowdown LG Electronics
India has revised upwards its revenue targets for 2009 While the turnover in the year 2009 could have
gone down the Korean consumer electronic firmrsquos revenue grew by 20-25 against the original target of
15 LG India is the countryrsquos largest consumer electronics firm by way of revenue
In August - September lsquo09 the company saw a near 50 sales growth The company has undertaken a
spate of initiatives to ensure such a high growth rate mdash roll out India-centric products build its brand
motivate employees through rewards and complete decentralisation of branches across the nation
The company reported a 40 rise in sales in July-December 2009 from a year ago that helped total
revenue for 2009 grow 21 aided by robust sales of home appliances and LCD TVs LG whose total
sales hit Rs 13000 crore in 2009 has had a spectacular surge since entering India in 1997 though
growth slipped to 10-15 in the last five years as demand waned
LGs expansion plans come after it has set a 45 revenue growth target for 2010 the highest in six
years to generate Rs 19000 crore in sales The company sees sales to be largely driven by demand for
LCD TVs and GSM handsets
11
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 2
Critical Review of Literature
Indian Public Relations Industry is expected to grow $ 6 billion by the year 2010 The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has recognised that the present size of
Indian PR industry is worth $ 3 billion Attrition has seized PR industry with its rate exceeding 40 even if
its growing at an annual rate of 32 and likely to double its size to over US$ 6 billion by 2010 from over
US $3 billion presently since corporates are relying more on PR professional to hike their brand image to
take maximum benefits of current economic boom for increased sales amp turnover volumes
These findings are result of a random survey carried out by The Associated Chambers of Commerce
and Industry of India (ASSOCHAM) on ldquoATTRITION VS PR amp ITS FUTURE PROSPECTSrdquo in which
over 400 PR professionals views were elicited however adds that a result of growing opportunities costs
in PR industry attrition has become a core concern
Releasing its findings the ASSOCHAM President Venugopal N Dhoot who himself is a lead consumer
durables players said that over 90 of PR professional at entry levels with enthusiasm and passions for
hard work are shifting for greener pastures with in the industry in a yearrsquos time
Venugopal Dhoot whose group spends roughly Rs 3000 crore in building its brand image annually
pointed out that the ASSOCHAM survey confirms the trends that a large number of Corporates are opting
to rope in PR professional for their increased sales turnover as one of finest marketing strategiesrdquo The
survey reveals that pressures apart in PR activities diversification of intellect is most attracting part which
avail them lot of opportunities A majority of PR professional said that in the economic boom a huge
competition has emerged for brand building as result of which PR agencies are in demand and quoting a
very market driven prices for their services for which takers are available
Since demand for PR professional are rising and so are opportunities galoring for relationship industries
and it is because of this reason it has shown a growth rate of about 22-25 in last couple of years which
has risen to 32 and the trend will continue in future and even grow for better said Mr Dhoot Quoting
finding of survey the ASSOCHAM Chief said that by 2010 the PR industry size would grow to more than
US $6 billion According to estimates by the ASSOCHAM the Indian PR industry comprises 1200-1500
agency with their manpower strength of between 30000 to 40000 Business is booming for the public-
relations (PR) industry
It is in this discipline that the industry has seen most growth and expects to see continuing growth in the
future In terms of vertical markets healthcare has been identified by several of the industry as the
fastest-growing sector however the public sector the environment and corporate social responsibility
12
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
(CSR) are all emerging as growth areas for PR The overriding concern of the industry is the skills
shortage Almost all agencies are hiring a trend that is itself indicative of growth and some are looking
outside the PR industry to bring in new skills Although there are many thousands of small agencies and
individual consultants serving very local markets larger agencies are forging partnerships across the
globe to meet demand from clients that themselves are extending their global reach
There are more than 100 agencies-big ones with 10-15 branches across India like Perfect Relations
Genesis PR Hanmer MS amp L and Vaishnavi medium size ones with 4-5 branches and smaller city
specific PR agencies Many of these are affiliated or are Indian subsidiaries of global PR companies For
instance Weber Shandwick and OampM have their India offices Likewise Fleishman Hillard has affiliation
with Lexicon There are industry specific agencies like Text100 and 2020 for IT companies Imprimis for
health care companies and Adfactors majorly to financial companies
Public relation is being used as a supplement along with advertising to form an effective communication
strategy This is primarily because at times advertising does not suffice in communicating the exact
message Public relation services not only help in communicating their message but can also help in
generating a favorable response
A new study (pdf) from the US-based Institute for Public Relations has some interesting case studies that
in several instances illustrate corresponding trends between increased media coverage and a desired
business outcome occurring For example they speak of a campaign on the importance of mammograms
with the desired business outcome being an increase in the number of relevant medical procedures
undertaken Looking at the number of articles published on the issue and comparing it to the number of
medical procedures a correlation seems to exist This can be seen in the above graph which shows in
blue the number of press articles on the issues and in red the number of medical procedures undertaken
(over 2 years in the US)
The authors of the study readily admit that they are making a jump in assuming ldquocause and effectrdquo but
what they are looking for is a ldquopreponderance of evidencerdquo that supports a correlation between media
coverage and business outcomes
The 2008 PR Week MSampL Marketing Management Survey conducted by PR Week and Millward
Brown reveals that PR is not the discipline most at risk when it comes to possible budget cuts the
reasons among those who would cut PR reflect a nagging problem for the industry ndash measurement and
ROI 659 of the respondents cited difficulty to quantify ROI lack of effectiveness or inability to
measure PR efforts when asked why they would consider cutting PR budgets
Noted American author and Marketing Expert Sara Leersquos Schaillee holds the view that PR is never
going to be an exact science there is always a little bit of art and gut in it PR is a difficult one to measure
13
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
What makes the measurement of PR easier he says is having a clear target audience and focused
message For work on the Senseo brand which is geared toward ldquocoffee-loving explorersrdquo the company
has been able to measure the effectiveness of PR within the media mix yet still finds measurement of
PR to be difficult overall The more specific the message that yoursquore bringing and the more narrow the
target the more measurable PR will be To measure brandrsquos health on a consistent basis across all our
brands the impact of different media mix elements is measured
However in an economic climate where budgets are tight research and measurement are very often the
first portions of a PR budget to be cut Yet measurement is necessary to prove ROI which can help
increase budgets providing a Catch-22 situation for firms and in-house PR pros PR is vulnerable unless
it can convince its clients to invest in measurement says MSampLrsquos Hass despite those challenges several
companies have been able to put into place programs that measure the impact of their PR activities
According to the survey 406 of respondents believe PR agencies do an ldquoexcellentrdquo or ldquovery goodrdquo job
of measuring the effectiveness of their performance This is at par with direct marketing agencies
(548) internetnew media shops (532) advertising agencies (357) and media agencies (313)
Public relations would remain vulnerable and it has to device a way to establish its ROI and values If the
PR Industry is going to continue the inroads a way to demonstrate the value in an objective way instead
of a subjective way is to be figured out
Natalie Johnson manager of social media communications for General Motors an MSampL client
sees the companyrsquos use of social media and networking as ldquoa true grassroots approachrdquo to PR In his
article in the Impact Journal in California USA he writes ldquoFundamentally wersquore trying to go out and build
relationships with those users who are interested in connecting with other peoplerdquo
KRC RESEARCH in their report on lsquoMarket Research and Effective Public Relationsrsquo the most
common way market research is used in public relations is to draw attention A timely and topical survey
can be news that drives media coverage getting our clientrsquos name or brand or issues more visibility The
best surveys of this kind are short easy to understand and easy to explain and are most likely to be
created when the research firm and PR professionals work together to define the desired outcome
(visibility for the brand the category the client) then to develop a survey concept likely to drive the
headlines we want where we want them Context Analytics a strategic communications research and
consulting company provides customized actionable analysis to leverage public perceptions in order to
better manage corporate reputation
14
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 21
LG Electronics India
Established in 1997 LG Electronics India Pvt Ltd is a wholly owned subsidiary of LG Electronics South
Korea In India for a decade now LG is the market leader in consumer durables and recognised as a
leading technology innovator in the information technology and mobile communications business LG is
the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide
reach latest global technology and product innovation
One of the most formidable brands LGEIL has an impressive portfolio of Consumer Electronics Home
Appliances GSM mobile phones and IT products
LG Electronics India Pvt Ltd a wholly owned subsidiary of LG Electronics South Korea was
established in January 1997 after clearance from the Foreign Investment Promotion Board (FIPB)
The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4
and 12 months with the commencement of operations in May 1997 LG set up a state-of-the art
manufacturing facility at Greater Noida near Delhi in 1998 with an investment of Rs 500 Crores This
facility manufactured Colour Televisions Washing Machines Air-Conditioners and Microwave Ovens
During the year 2001 LG also commenced the home production for its eco-friendly Refrigerators and
established its assembly line for its PC Monitors at its Greater Noida manufacturing unitThe beginning of
2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater
Noida
In 2004 LGEIL also up its second Greenfield manufacturing unit in Pune Maharashtra that commences
operations in October 2004 Covering over 50 acres the facility manufactures LCD TV GSM Phones
Color Televisions Air Conditioners Refrigerators Microwave Ovens Color Monitors Both the Indian
manufacturing units has been designed with the latest technologies at par with international standards at
South Korea and are one of the most Eco-friendly units amongst all LG manufacturing plants in the world
LG has been able to craft out in ten years a premium brand positioning in the Indian market and is today
the most preferred brand in the segment LG Electronics is pursuing the vision of becoming a true global
digital leader attracting customers worldwide through its innovative products and design The companyrsquos
goal is to rank among the top 3 consumer electronics and telecommunications companies in the world by
2010 To achieve this we have embraced the idea of ldquoGreat Company Great Peoplerdquo recognizing that
only great people can create a great company
15
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
LG strives to enhance the customerrsquos life (and lifestyle) with intelligent features intuitive functionality and
exceptional performance Choosing LG is a form of self-expression and self-satisfaction Our customer
will take pride in owning the amazing and take comfort in knowing heshe made a smart informed
decision The LG brand comprises four basic elements Values Innovation People and Passion
16
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 22
Press Releases
1 LG begins the New Year with the launch of its full touch screen handset
Date 08-JAN-09
LG KP500 (Cookie) the latest full touch screen phone hits the Indian market at the most
attractive price ever
2 LG achieves record sales of 2 mn DVD writers in Y2008
Date 07-JAN-09
100 growth over Y2007
3 LG Electronics introduces First Time Ever in India -Global Home Chef Award 2008
Date 10-DEC-08
Winner to be announced for the LG Home Chef Awards in Dubai on 10th Dec 2008
4 LG Presents Tech-Imagination at its best
Date 14-OCT-08
Introduces Worlds best Feature-Filled Energy Efficient Monitors
5 Timeless memories this festive season with LG
Date 07-OCT-08
Launches two new 5 mega-pixel camera phones after the successful
launch of Viewty in India - the KC550 and the Secret (KF750)
Dazzles with innovation technology and style
6 LG Unveils New LCD TV for Festive Season - Jazz for Sound Lovers
Date 24-SEP-08
First time ever Auto sliding speakers 500w sound Built-in
31-channel virtual surround sound and in-built woofers
Full High Definition Models available in 32 inches and 42 inches
Targets 30 market share in the FPD segment by 2008 year end
7 LG introduces ultra-slim ultra-light LED Notebook
Date 15-SEP-08
Launches the P300 notebook
LED Back-Light LCD perfect for high-definition images and easy on the eyes
17
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Targeted at the performance- and style-minded younger generation
8 Talk endlessly with LG KP199 GSM phone
Date 01-SEP-08
Launches the new LG Dynamite KP199
Boasts of the best battery in its class
9 LG Electronics unveils the Steam Tromm
Date 25-AUG-08
Steam Tromm machine forays into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by year end
10 Get 5 years warranty only on LG LCD monitors
Date 18-AUG-08
Special freedom offer starts on 16th August 2008
11 LG unveils new B2B monitor
Date 24-JUL-08
Launches 1942S LCD monitor
Target segment commercial amp business establishments
Designed to help people work more effectively
12 LG Electronics unveils its exceptional Top Loading Washing Machines
Date 22-JUL-08
International Top Loader machine models foray into the Indian market
State-of-the-art design with latest technology
Aims at a 30 market share in washing machine category in India by the year end
13 LG joins hands with Redington
Date 01-JUL-08
Strengthens distribution structure
Caters to the increasing consumer demand for LG Notebooks
14 LG launches worldrsquos first frameless Plasma TV
Date 30-JUN-08
Aesthetically designed PG61 launched for the Indian market
18
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Winner of 2008 CES Best of Innovations Award
Targets 30 market share in the FPD segment by 2008 year end
15 LG Electronics announces prike hike on IT Peripheral products
Date 02-JUN-08
Price hike announced on monitors and OSDs
Publication Financial Express
19
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Publication Business Standard
20
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Publication Mint
21
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Publication Living Digital
22
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Publication Hindu
23
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
24
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
PublicationDigital
25
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
26
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 23
Industry Coverage of Consumer Durables India
It is estimated that over next two decades the income level will almost triple and India will climb from 12th
position to become the 5th largest consumer market by 2025 As per an estimate over 290m people will
move from desperate poverty to a more sustainable life and Indiarsquos middle class will expand by over ten
times from its current size of 50m to 583m Beneficiaries of this big-bang growth will not only be urban
populace but rural India as well It is estimated that annual real rural income growth per household will
zoom from 28 over past two decades to 38 in next twoOne of the industries to wallet all the benefits
arising out of this growth among others is consumer durables
INDUSTRY ANALYSIS
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media greater disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a good growth is projected in the future
too
Overview
Consumer durable products have life expectancy of at least three years These products are hard goods
which cannot be used at once The consumer durables market can be stratified into consumer electronics
comprising TV sets CONSUMER DURABLE players and others and appliances like washing machine
microwave ovens and air conditioners The consumer durable market in India has seen a proliferation of
brands and product categories in recent years The industry is dominated by CTVs Most major
multinational consumer durable brands especially Korean and Japanese are operating in the country
with varying degree of success One of the biggest bottlenecks for multinational companies entering
Indian market is a dilapidated distribution network
Penetration level of white goods
The penetration level of white goods in India vis-agrave-vis other countries is still in a very nascent stage In
CTVs India is having a very minuscule penetration level of 24 compared with 333 in the US 235 in
France and 98 in China Talking about an entire white goods portfolio the demand in India during
2006-07 was 319 per 1000 which is further expected to rise to 451 per 1000 by 2009-10 This increase
is going to be backed by
bull Booming economy
27
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
bull Changing lifestyle
bull Higher disposable income
bull Falling price
SWOT analysis for the sector
Strength
bull Presence of established distribution networks in both urban and rural areas
bull Presence of well-known brands
bull Increasing organised sector share vis-agrave-vis the unorganised sector
bull Appreciating rupee compared with dollar
Weakness
bull Seasonality of demand high during festive season
bull Poor government spending on infrastructure
bull Low purchasing power of consumers
Opportunities
1 Lower penetration level of white goods vis-agrave-vis other countries
2 Unexploited rural market
3 Rapid urbanisation
4 Increasing purchasing power of consumers
5 Easy availability of finance
Threats
1048766 Higher import duties on raw materials imposed in Budget 2007-08
1048766 Cheap imports from Singapore China and other Asian countries
OUTLOOK FOR THE SECTOR
Presence of many competitors in Consumer Durables and the influx of so many new media the PR
function of getting media coverage would be at a real high There is a perception that media efforts would
result in sales How much of it is true is a question not yet answered
With easy availability of finance emergence of double-income families fall in prices due to increasing
competition government support growth of media higher disposable incomes improvements in
technology reduction in customs duty and growth in consumer base of rural sector the consumer
durables industry is growing at a fast pace Given these factors a commendable growth is projected for
the future
28
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
The rural consumer durables market is growing faster at around 25 annually as against the urban
market which is growing at 7-10 only Consumer preference for high-end quality and high-value
products is driving the growth of the consumer durables industry across all segments and the trend will
propel growth in the future
29
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 24
Public Relations for LG Electronics India
LG electronic PR (LGePR) was first launched back in 2004 LG Electronics shared information through
PR Info It was a simple data base of press releases and marketing materials LGePR took it to another
level and strengthened its news monitoring and added an evaluation function In the beginning a total of
16 countries used the system and as the system went through upgrades and changes the number of
participating countries increased also
LG Electronics takes a two-pillared approach in its PR activities
The first pillar of Global PR strategy is to boost corporate and brand image on the global scene to better
position itself as a top notch brand in the world market To the end efforts are being made at the
headquarter level to strengthen global media relations
The second pillar is aimed at product PR in the local markets thereby boosting overall sales with its
respective target market strategy In this regard subsidiaries beef up PR activities with the local media
Against the backdrop LGePR assumes a bridging role linking the LG Electronics headquarters and its
subsidiaries overseas in pursuing PR activities by quantifying monitoring news coverage helping
information-sharing among local PR agencies and strengthening existing functions such as reporting and
databasing
30
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
LG in News
31
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Source Data received from Hanmer M S amp L Communications Pvt Ltd Data provided is old because of
companyrsquos policy on confidentiality about its database
32
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 25
Functioning of LG Indiarsquos PR Agency
The ldquoPR centerrdquo has been broken down into two categories HQ Center and PR Room
While HQ Center provides materials on corporate PR strategies PR Room provides success cases to be
shared among participating agencies The ldquoPress Releaserdquo provides HQ and local market released PR
sources and the ldquoCommunityrdquo menu works as a bulletin board among users to help information-sharing
The Agency lists and provides articles (news coverage) published through LGrsquos overseas PR agencies
along with related information such as update date publication date headline article (news) grade
media and country Among the posted articles ldquotop newsrdquo is sorted out
The Agency also issues PR Value Reports to evaluate PR performance based on a criteria which
includes the number of news releases and articles (news coverage) media grade and article (news)
grade among many others
LGePR is basically composed of 6 areas which are News Monitoring Press Release HQ Center PR
Room Community and My LGePR One can view all the latest uploaded news coverage press releases
from HQ and local regions latest notice from HQ and daily top news
33
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Workflow at the agency level is as follows submit and modify Target Media List assess PR value
upload coverage and press releases check the status of the files and check global performance report
issued monthly Meanwhile news approval top news selection and sharing of global performance report
is the order which the HQ operates
When local PR agencies (countries) upload their news articles in MY LGePR they are required to mark
the media which ran the articles in order to tally PR value Target Media List is a catalog showing all those
media covering LG Electronics and related information Overseas PR agencies beginning their operation
should fill out the template provided and submit it to the HQ
Information to be presented in Target Media List are publication media type media overview issue
frequency language industry circulation foundation date and standard Ad value First local PR
agencies (countries) are required to put name of listed medium
Second the agencies (countries) are required to mark the specific media type of the listed medium The
types are newspaper magazine TV radio and on-line
Third the agencies (countries) are required to present characteristics of the media deemed as significant
in Media Overview column All Grade A media must be given a media overview For example Wall Street
Journal a Grade A media should be given a brief introduction such as ldquoone of the worldrsquos top three
economics newspapersrdquo
Fourth the agencies (countries) are required to specify whether listed media are daily weekly bi-weekly
or monthly publication
Fifth the agencies (countries) are required to specify the language the media is published
The agencies (countries) are required to put official circulation figures and are required to specify the
foundation date of the listed media
The number of listed media is left to the local PR agencies discretion and their knowledge about the local
media Familiarity to local media are respected in this regard We however require the submitted list to
be reliable and request that agencies get their subsidiaries confirmation of the list before submitting to
HQ
As for the media grade listed media should be categorized into 3 groups A B and C
The categorization should reflect target readers audience circulation and industry trends
As a proper breakdown for grouping the share of media in Group A should be 20 out of the entire listed
media while those in Group B and Group C should approximately account for 70 and 10 respectively
34
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Calculating standard Ad Value
First broadcast coverage Ad Value for TV will break down into ldquoHighestrdquo class matching prime time
price and ldquoAveragerdquo class of B-Time non-prime Time level Second Ad Value for print based on using
the highest value Finally to calculate Online Media Ad value Ad value of the highest-priced banner Ad on
the main page of the website like other media or by multiplying CPM (Cost per thousand audience) by
UV (Unique Visitorone day)
PR Value assessment
PR value is an index we use to evaluate our local PR performance The Agency generates PR value
reflecting the inputs such as media grades and article (news) grades And here is how PR Value is
assessed The Ad value of an uploaded article by adopting standard Ad value unit of per square inch for
Print media and per second in case of Broadcast media Then we multiply the gained ad value by
weights of the covering media and the article What we get finally is PR value
All these activities are to pursue a goal-oriented PR
35
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 3
RESEARCH METHODOLOGY
While the papers journals and articles read claim proof of causality between media coverage and
business results the case studies cited (in the annexure) offer very high correlations which indicate a
relationship between the two The research design used for this research is Exploratory research Design
This research was conducted in the DelhiNCR region
Chapter 31
Calculating a correlation
A measure of the strength of linear association between two variables Correlation will always between -
10 and +10 If the correlation is positive we have a positive relationship If it is negative the relationship
is negative
Our two variables X and Y are
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
36
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Formula
Correlation Co-efficient
Correlation(r) =[ NΣXY - (ΣX)(ΣY) Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])] where N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores ΣY2 = Sum of square Second Scores[Correlations use the Pearson Product Moment Coefficient (r=X) which is a measure of association
describing the direction and strength of a linear relationship between two variables A perfect correlation
is an r=10]
Aggregate Score
Positive on-message media coverage seems to have an effect on outcomes But what happens when
competitive products services or concepts are a major factor To bring in quantity and quality of an
organizationrsquos non-paid media coverage compared with that of its competitors we device a system where
in calculate an organizationrsquos Aggregate Score We can attain the aggregate score by subtracting
negative coverage from positive and neutral media coverage
Steps
1 Capture media coverage of the organization and its competitors
2 Measure the tone of each story Then add together all neutral and positive media values or
impressions and subtract all negative to get net favorable results
37
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 32
Effect of PR on Consumer Behaviour
This chapter will link to the consumer trends that were sighted while undertaking the research
A questionnaire was developed and effect of PR on consumerrsquos mindset was noted The facts that come
out Prove the strength of the correlation that was established
Information Needed
The information needed can be classified into the following heads -
Primary -
Media watching behavioiur of the consumer
Media following habits of the consumers
Preffered media typesof consumers of different age groups gender and professions
Purchasing behavior of the consumer
Secondary -
Details about the Consumer Durables and Public Relations Industry
Concepts and theories on Brand Equity and Brand Value Positioning Consumer Behaviour and
Media Proliferation
Sample Design
a) Sample Unit The sample unit for conducting the survey consist of various people from different
38
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
age group gender occupation etc
b) Sample size The sample size for the survey was 200
c) Sampling Procedure - Simple random sampling method was used to choose the respondents
Sources of primary data
The primary data was collected through a questionnaire from various people These were the probable
owners of the consumer durables
Sources of secondary data
The secondary data was collected from research journals research and informative websites
Scaling techniques
Scaling techniques used in the questionnaire were Likert Scaling
Questionnaire design
Keeping in mind the information required for achieving the objectives of the research the questionnaire
was designed The questionnaire was a blend of following types of questions -
Questions generating classification and identification information (name phone number
profession address of the respondent)
Dichotomous and multiple choice questions
Codes were assigned to the responses of the classification questions and to the rating question
5- Very satisfactory
4- Satisfactory
3- Neither satisfactory nor dissatisfactory
2- Dissatisfactory
1- Very Dissatisfactory
Data Collection The data was collected from various sources as defined in the plan The data was
collected by both Face-to-Face interviews and telephonic interviews
Data Analysis and representation
The data collected was analyzed using simple statistical measures and frequency distribution The
average ratings of performances were arrived at by taking out the simple average of the sum of the
ratings given to a particular performance parameter
The representation is done by using graphs and charts
39
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 4
Data Analysis
While debates may rage over exactly how to assess the value of brands virtually everyone agrees that
brands represent real and significant financial value to their owners Managing a brand therefore requires
careful and strategic investment and stewardship But what are the drivers of brand value Product
quality customer services and in particular advertising are some of drivers most commonly cited and
studied
Until now however there has been relatively little research into the contribution of public relations to
brand value In this study we assessed the statistical correlation between a brandrsquos media prominence (a
weighted composite of headline lead paragraph and text mentions in independent media coverage that is
not paid for by the brand owner) and brand value
Chapter 41
Correlation
X = no of articles publishes or news covered about LG Electronics India in the newspapers TV
Channels Radio Online Magazines
Y = Volume of sales
40
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Variable Qty (Jan 2009 ndash Jun 2009)
X 1428
Y 650 Mil USD
Correlation- During both the periods Sales to Aggregate Score (Volume of articles mentioning LG as a
consumer durable company) were highly correlated During 2004-05 correlation was r=097 and during
2003-04 it was r=98
Chapter 42
Findings from the Questionnaire about consumer behavior and trends
1 Sources of Information
(For the consumer to know more about its consumer durable brand)
41
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
news papermagazines
familyfriendsnews channels
onlineothers
Sources of Information
0
10
20
30
40
50
60
Co
un
t
The respondents placed the news derived from the newspaper and the magazines to be of much utility to
them than the other media These are chosen mostly for their credibility and convenience of reach and
readership While family and friends giving word of mouth publicity is a good approach but it is only a
chance that the topic of Consumer durables gets initiated Public Relations functions to maintain the
brand in news even when there is no occasion to
LG Electronics hit the right chord by becoming sponsors of World Cup and selecting 11 kids who would
represent India at the ceremony By this the LG India brand was in news since January - February even
when the sales are at the lowest Brand remembrance led to high sales of Air Conditioners and LCDs
soon after
2 Publications read
(Type of Publications the consumers tend to read)
42
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Financials Mainlines Regionals Magazines
Publications read
0
20
40
60
80
100
Co
un
t
The respondents from random backgrounds have been found to be reading mainlines the most As per
the records provided by LG Electronics the maximum number of coverage for consumer durables is in
the mainlines or the financials
3 Page read with higher emphasis
(This is based on the consumerrsquos interest)
43
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Front Page Political Editorial Business Sports Supplements
Page read with higher emphasis
0
5
10
15
20
25
30
Per
cen
t
The respondents are found to be reading the Business Page with maximum emphasis than the other
pages which only have individual excitement for each individual Business Pages carry news based on
Corporate and the Company ie LG in our case It also provides information on the Industry ie
Consumer Durable and any new product launches or sponsorships Lastly it gives the quarterly Annual
performance of the company LG focuses on this page for its coverages The news clippings attached
have been published in The Economic Times The Business Standard etc
4 Current Consumer Durable
44
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
LG videocon Samsung Godrej Sony
Current Consumer Durable
0
10
20
30
40
Per
cen
t
Most of the homes have consumer durables from LG as the figure depicts
5 Satisfaction assessed with the current brand
45
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Highly Very Moderately not satisfied Not at all
Satisfied with the current brand
0
10
20
30
40
Per
cen
t
People have shown their satisfaction with the brand ie LG Shows high brand value and higher
Brand Equity a result of effective Public Relations
6 Preferred brand to buy
46
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Videocon Samsung LG Godrej Sony Whirlpool Others
Preferred brand to buy
0
5
10
15
20
25P
erc
en
t
The respondents have replied for LG to be their preferred brand among others This reflects their attitude
and the equity they hold with the brand Hence we see that How Effective Public Relations Contributes to
a Brand
7 Varied buying decisions
47
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
new brand accepted brand max recall Experience most read about
Varied buying decisions
0
5
10
15
20
25P
erce
nt
The consumers have shown that their decision to buy a consumer durable would depend on accepted
brand maximum recall and the brand they have been reading about Therefore the brand which is in
news and has maintained itself throughout the year has made it to the minds of the people
This brings to our understanding that for right Postioning we the Brand Managers of the Company are to
concentrate on better Media Proliferation This is where the domain of Public Relation comes in
8 Influence on mindset
48
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
yes no cant say
Influence on mindset
0
10
20
30
40
50
60
Per
cen
t
The respondents have agreed that any news on brand that they hear makes them react to it as a
choice or not
9 Factors considered while buying
49
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Price Features Reputation Image Competitor
Factors considered while buying
0
10
20
30P
erce
nt
Image of the company and its reputation in the mind of the consumer are the factors considered while
taking a decision on whether to buy the consumer durable or not
The image reputation is a result of effective public relation With the news story on LG India coming out
with Star of India Range of consumer durables directed towards the Indian Homemakers LG has earned
the image of a respected middle income based and a brand that cares
10 Decision makers at home
50
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
collective choice
children centric mother father grand parents
Decision makers at home
0
10
20
30
40
50
Per
cen
t
Consumer Durables being good s of lsquohigh involvementrsquo are a sensitive choice to make The respondents
have chosen the decision of buying to be a collective choice When we see that it is a collective choice
we also see that it is the durable which is much researched on Effective Public relations give a platform
to begin the research from and undertake the reviews etc
11 Readiness to pay higher price
51
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
yes no cant say
Readiness to pay higher price
0
10
20
30
40
50
60
70
Per
cen
t
Readiness to pay a higher price is the biggest Litmus Test for any product The respondents have chosen
their brand to be LG and have agreed to show no reluctance in paying a higher price for it
Chapter 43
52
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Innovative ways of PR implied by LG Indias PR agency
PR follows the marketing function ie it brings the concept of consumer-orientation Corporate
performance is up to the consumerrsquos thinking and attitude There are two types of PR consisting of pro-
active and reactive
They are regarded as a cycle ie the proactive strategy is required to act first and the reactive will be
performed later However they are explained in more detail as follows
1 Proactive The technique that influences the companyrsquos strengths through long-term marketing
objectives and policy ie the marketer tries to release the companyrsquos benefits and its products or services
in order to achieve its goal gain the highest sale and good image and the highest revenue
This type of this PR strategy is ldquooffensive rather than defensive opportunity-seeking rather than problem-
solving and proactive rather than reactiverdquo In other words for this PR form the marketer tries to seek the
opportunity that is influenced by internal factors such as its reputation reliability and life-long history
instead of dealing with problems At the same time the marketer pushes such opportunities to support
and publicize the matters that the company wants As a result the output of this type will be positive The
process of this PR form like PR process consists of decision making planning and programming The
company makes a decision which opportunity is offered then it is planned how to use that chance to
meet the required goal what medium media should be used to carry the message and what kind of
event should be created and eventually communicated to the consumers However all of them are
foreseeable if not entirely controllable To conclude the proactive technique provides the company with
how to do it but not what to do
2 Reactive Unlike the proactive the reactive seeks to find a solution to solve a problem that is regarded
as weaknesses of the company As a con- sequence the company want to defend itself and get rid of
all of the facets that threaten the company with the purpose of restoring the companyrsquos reputation
preventing market erosion and regaining lost sales For this method the company needs to concern itself
with both how to do and what to do That is to say in terms of how to do which channel and media as
well as event should be used on the other hand which performance to use and what is to be done
53
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
In general PR provides both benefits and drawbacks as follows In terms of advantages first of all PR
can effectively and efficiently create credibility by supporting other marketing communication tools
because information released is based on facts and rationality even though it is positively publicized
Unlike only a power of advertising for instance some advertisers use different techniques such as half-
truth telling and exaggeration only for the purpose of selling goods As a consequence the organization is
more reliable and gains more positive opinion and attitude as well as distributes correct knowledge
among the public Apart from giving a good point for its own organization its products are also granted at
the same time In a favour of visibility and reach it means there is a high ability of the consumerrsquos reach
and aware- ness There are several reasons to support such opinion Due to very expensive advertising
rates many companies invest a lot of money However PR can save such bulk budget and sometimes
advertising can also be replaced by the influence of PR
Also nowadays the company is encountered with the problem of advertising clutter Today it seems that
there is the limitation of cost expense Many corporation need to keep their expenditure as low as they
can and also think carefully about cost efficiency and effectiveness PR can take that responsibility
because in terms of PR there is low and sometimes no cost of expenditure Sometimes the business is
able to ask the media to release its news and to expand the time frequency if it has good media relations
As a result it can be modified to any kind of business including governmental private and non-
governmental organizations
Product Involvement Effectiveness of public relations
The relationship between media prominence and brand value depends on ldquoproduct involvementrdquo
It is the degree to which customers research a given product or solution prior to purchase Media
prominence was more associated with brand value for ldquohigh involvementrdquo products compared to ldquolow
involvementrdquo products Advertising expenditures however were a leading indicator only for ldquolow
involvementrdquo products and accounted for very little brand value among ldquohigh involvementrdquo products
Media prominence was a particularly important component of brand value for computer-related industries
such as software and hardware manufacturers as well as computer and Internet service companies
accounting for 48 percent of differences between companiesrsquo brand values
The results suggest that in general media prominence accounts for approximately one quarter of brand
value although this value is often higher for high-involvement brands and particularly so in technology
This underscores the importance of managing and growing brand value through public relations efforts
54
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Chapter 5
CONCLUSION(S) AND RECOMMENDATIONS
Public Relations has proved to be a very powerful tool for LG India It had employed its marketing budget
for an annual PR Plan besides Advertising at the peak periods (The months of March to August for India)
This gave them enough time to prepare the consumerrsquos mindset and build a high brand image and
reputation Over the period the consumers attached a higher Brand Equity to the brand LG as compared
to others
We see the influence of PR in the consumerrsquos buying behaviour The buyer decision process
comprises of the need recognition information search evaluation of alternatives purchase decision and
post purchase behaviour stagesThe Public Relations come to effect majorly at the information search
phase And this is where it is of help to the consumer making a correct collective choice for the high-
involvement good
How a company through PR can influence buyers in selecting alternatives
1 Real Repositioning
2 Psychological Repositioning
3 Competitive De-positioning
4 Influencing by promoting the major attributes
5 Influencing on the neglected attitude
6 Persuading the buyers to change their ideas for major attributes
Visit the web site of almost any global public relations firm and yoursquoll find a commitment to market
research Therersquos a reason Good market research is critical to building and measuring effective public
relations campaigns Most people know of course that opinion polls can be good ways of generating
visibility They provide news and interesting facts that can help draw media attention and get a brand or a
message into the news But market research plays a much bigger role It can be invaluable in uncovering
the insights and understanding needed to come up with that big idea on which to rest a program It can be
used to develop and test messages to make sure that theyrsquore as relevant and compelling as possible It
can be used to develop and test materialsmdashthat is the speeches brochures Web copy toolkits
advertisements and the other collateral that can bring a campaign to life And of critical importance it
can be used to measure effectiveness
Getting the Messages Right One of the first rules of communications is that you cannot say everything
to everybody You have to choose and effective communications are often about repetitionmdashrepeating
one key idea in as many places as possible Identifying that one key idea can be the difference between
success and failure and Public Relations can help identify it Surveys can be used to identify the
55
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
attributes of a product or program that are most appealing or interesting or the arguments that are most
persuasive Focus groups can be used in a similar way and they can also help us understand why people
respond more positively to some messages than others In addition even when the clients kalready what
messages they want emphasized research can help emphasize them in the right way
Getting the Materials Right A brochure or poster or Web site can look great at the office but
consumers do not always react to things the way we hope or intend Particularly when the clientrsquos
investment in materials is substantial Public Relations is a good way to make sure materials draw
attention communicate clearly and deliver the right messages
In addition new online technologies make using research to test materials faster and less expensive than
ever and in more and more places around the world Particularly in B2B campaigns where our target
audiences often have high speed Internet access at work taking the time to have a small sample look at
materials and react to themmdashdo they like them Would they read them What is their main point Are
they believable
What needs to be improved or changed mdash Can make an enormous difference not only in
the effectiveness of the materials but in building our clientsrsquo confidence that they get the job done right
Getting Attention
Of course the most common way market research is used in public relations is to draw attention A timely
and topical survey can be news that drives media coverage getting our clientrsquos name or brand or issues
more visibility The best surveys of this kind are short easy to understand and easy to explain and are
most likely to be created when the research firm and PR professionals work together to define the desired
outcome (visibility for the brand the category the client) then to develop a survey concept likely to
drive the headlines we want where we want them
When a PR campaign is intended to create awareness or influence perceptions research is a critical
piece of the ROI puzzle By designing carefully targeted research programs at the very beginning of a
campaign research can provide real data to measure whether awareness in fact increases or
perceptions in fact change
Of course as most public relations professionals know market research can be costly What they donrsquot
always kis how scalable it can be It may not make sense to invest in largescale quantitative surveys but
creative research agencies experienced in public relations and communications research can generally
find ways to provide insights testing and measurement that fit within a campaignrsquos budget Good ideas
effective implementation and measurement These are pillars of good public relations and research
enhances them all
56
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Annexure
Case Studies
1 LG Electronics
SITUATION
sect LG Electronics Mobile Communications Company (LG) (wwwlgecom) is a leading producer of UMTS
(WCONSUMER DURABLEMA) CONSUMER DURABLEMA and GSM handsets LG began as a late
entrant in the GSM segment in India therefore it was an uphill task to get consumers to embrace the
brand which was dominated by Nokia the current market leader besides draw their attention from newly
launched phones especially the iPhone which was making news worldwide
sect To position LG Viewty (KU990) mobile phone as a state-of-the-art mobile device and further highlight it
as a lifestyle brand rather than just an innovative gizmo
STRATEGY
sect Position the LG Viewty as a top-of-the-line smart phone with style an iPhone alternative
sect USP was proposed - ldquoLG Viewty ndash the iPhone killerrdquo a state-of-art multi functional mobile
device which highlighted its innovative features
sect Create and leverage a brand ambassador that would influence target consumer audiences
sect Throughout the launch the goal was to incorporate LG Mobiles brand promise of lsquoLife is Goodrsquos an
underlying aspect to the new LG Viewty brand
PROGRAM
sect Pitched story ides to key reporters across media
sect Sent brochurepress kit to key technology publications and lifestyle magazines
sect Organised an Asia press tour to lsquoViewtyrsquo launch in Macau for media
sect Bollywood celebrity Deepika Padukone was chosen as Brand Ambassador
RESULTS
sect LG Viewty received an overwhelming response in excess of 200 stories and an equally positive
feedback across all media LG Viewty became a rage in the country and enquiries were pouring in for the
LG GSM team
sect Prominent coverage in NDTV Zee BusinessT3 Hindustan Times My Mobile Financial Express
Economic Times from Asia launch in Macau
sect Sales of phones significantly exceeded forecasted target of 500000 setting several internal records
57
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
58
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
2 DaimlerChrysler ndash A Green Evolution
SITUATION
sect Daimler AG is a leading producer of premium passenger cars and the largest manufacturer of
commercial vehicles in
the world and especially the Mercedes-Benz luxury car
sect Being a trendsetter they wanted to highlight the need for a clean and pollution free environmentand for
this they were
showcasing their new car range (C-class) running on Biofuel
STRATEGY
sect To highlight the fuel efficiency and the environmental concern - it was decided to run the car across the
country from
North to South and then measure the impact of the carbon footprint
sect This in turn would position DCILrsquos (DaimlerChrysler India Ltd) commitment to Ecology and Environment
ndash a CSR
initiative and at the same time be a role model to the entire automobile industry
sect Educating the target groups about Bio Fuelsalternative fuel options available
sect Highlight the role of CSIR (Council for Scientific and Industrial Research) and University of Hohenheim
Germany who would be conducting the experiment thereby adding genuineness to the entire campaign
PROGRAM
sect To highlight this mega development - the target was niche publications (National media regional and
local media)
concerned with environment corporate responsibility science and technology
sect Also through this initiative leverage DaimlerChryslerrsquos long-term commitment to Indian market
sect Plan Press Conferences even 1-1 Interviews with key DCIL members
sect Photo opportunities (cars on display) at various centers
sect Test ride to promote the car ndash ideally given to key senior auto journalist
RESULTS
sect The cars did the 5900 kms run without any hitch covering 9 cities over a period of 35 days
sect The emissions were negligible thereby maintaining the carrsquos high standards of engineering
sect People have acknowledged the role of hybrid modelsalternative fuels
sect 9 Press Conferences resulted in 400+ journalist interactions and generated over 250+ articles
highlighting the need
for Biofuels
59
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
60
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
CNBC-TV 18 ndash Leading The Pack
SITUATION
sect CNBC is Indiarsquos No1 Business news channel The channels benchmark coverage extends from
corporate news financial markets coverage expert perspective on investing and management to industry
verticals and beyond
sect There were other channels in the market in the same category and the challenge was to differentiate
CNBC-TV18 from the clutter of other news channels
sect To increase brand recall of CNBC-TV18 and to create awareness of its new consumer channel CNBC
AWAAZ and the other ventures such as - SAW moneycontrolcom etc
STRATEGY
sect Showcased Corporate amp Financials of CNBC-TV18
sect Profiling spokespersons and anchors of CNBC-TV18 and the unique non market based shows
sect Highlight major marketing events of CNBC-TV18
PROGRAM
sect Initiated coverage of their various shows such as Storyboard India business
hour Face of the nation etc in leading newspapers and magazines
sect Highlight the other channels in the bouquet of TV 18 thereby leveraging its
qualitative advantage in terms of reach and the cost effective ROI on advertisements
RESULTS
sect Established CNBC-TV18 as the leading business news channel in Indiandash the only credible source of
business information amongst the target audiences comprising of corporate investors analysts media
etc
sect CNBC-TV18 leading in TAM Ratings
61
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
62
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Sony Pictures (India) ndash Casino Royale
SITUATION
sect Sony Pictures India is one of the global divisions of Sony Pictures Entertainment the world wide leader
in the television and film productiondistribution industry In India they were going to launch the Bond
movie lsquoCasino Royalersquo and they needed good publicity to justify the worldwide franchise of the Bond
lineage
sect Though Bond is known worldwide and has a mass appeal this time around the actor playing Bond was
new and there had been a lot of negative publicity around him The distributors did not want to take a
chance on this aspect and therefore were looking for a grand opening which is fit for any Bond movie
STRATEGY
sect Create curiosity about the movie to draw millions to the box office
sect To create hype around Casino Royale and the new Bond ndash Daniel Craig
sect Generate awareness about the legend that began with lsquoCasino Royalersquo - the novel in which James Bond
earned his 007 title The progression from a dutiful secret agent into an all round hero with the lsquoLicence to
Killrsquo
PROGRAM
sect Started a teaser campaign and later on placed stories and articles of Bond in various newspapers and
magazines which highlighted the various aspects of the Bond persona such as lsquoLook amp Stylersquo of Bond
Bondrsquos favourite drink-The Martini Hi-tech gadgets et al in short the Bond quotient which generated
enormous publicity for the Bond franchise
RESULTS
sect Sony Pictures India release for Casino Royaleldquo by far had the biggest opening for any Hollywood
movie
sect The movie grossed Rs 15 Cr over the 3 day weekend Besides the high profile campaign helped in
every possible way to counteract any negativityhate campaign the actor had for the lead role
63
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
64
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
2
Sources Philip Kotler
65
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
3
Sources Mass Communication and Us (Gandharv Walia)
66
EVALUATION OF ALTERNATIVES
SELECTIVE
PERCEPTIONDISTORTION RETENTION
BRAND IMAGE
INFORMATION SEARCH (SOURCES)
PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
4
Sources Kotler
67
6 -
Types of Buying-Decision BehaviorDifferen
ce between brands
SignificantDifferences
Complex
buying behavio
r
Low
FewDifferences
Dissonance-
reducing
buying behavio
r
Habitual buying
behavior
Variety-seeking buying
behavior
HighInvolvement
Level
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
5
68
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Sources Shekhar and Premanshu (PR in India)
6
Sources Shobhit Bakshi ( The Buyersrsquo Mind)
69
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Consumers exhibit heightened attention or actively search for informationSources of informationPersonalCommercialPublicExperiential
Word-of-mouth
Process Stages
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
7
70
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Source A Study on Public Relations Variables in Marketing Mix Modeling by Brian G Smith
8 QUESTIONNAIRE
71
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
Dear Respondent
Good morning afternoon
I am student of MBA (G) doing Major Research Project
The research deals with gathering your view on consumer durables
I would request you to answer a small questionnaire so that we can know your valuable opinion
Name Contact Number
Age Marital Status
How do you get the product Consumer Durable related news
middot Newspaper and magazines
middot Friends and family
middot The impact of TV advertising
middot TV news
middot Online
middot Other
Which publication(s) do you read
middot Financials
middot Mainlines
middot Regionals
middot Magazines
What do you read majorly in the newspapaer
middot Main Page
middot Sports Page
middot Business Page
middot Editorials
middot Political
Does getting to kabout the brand influence your decision to buy the same
Yes No Cant Say
What factor do you consider before buying the CONSUMER DURABLE
middot Price
middot Features
72
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
middot Reputation
middot Image
middot Competitor
Which CONSUMER DURABLE brand do you like most
middot IFB
middot Videocon
middot Sony
middot LG
middot Samsung
middot Godrej
If you intend to buy (or replacement) your CONSUMER DURABLE what brand you
will eventually choose
middot LG
middot Videocon
middot Samsung
middot Godrej
middot Sony
middot IFB
Have you recently bought any of the following products If yes of which company
middot Frost-free refrigerators
middot CTVs (21 and above)
middot Fully automatic washing machines
middot Air-conditioners
middot Microwave ovens
How does your decision vary before buying consumer durables
middot Go for a new brand
middot Go for the poplar brand
middot Go for brand with maximum recall
middot Go on experience
Whorsquos the decision maker in the family
middot Collective choice
middot Children centric
73
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
middot Mother
middot Father
middot Grand Parents
What is the key element that leads you to buy a CONSUMER DURABLE product
middot Service
middot Experience
middot Access
middot Price
middot Product features
Would you be willing to give a higher price for the product of your choice of
company
Yes No Canrsquot Say
Chapter 6
References
74
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75
1 Background (personal) characteristics of the PR managers (Grunig 1984
Habermann et al 1988 Kitchen and White 1992 Panigyrakis and Veloutsou 1998 Panigyrakis
and Veloutsou 1999)
2 The public relations development and the practices employed by the companies
(Aho Ryan amp Lemmond 1989 Kitchen amp Proctor 1991 Kitchen 1993 Moss et al 1996)
3 The relationship of PR to the promotional mix (Kotler amp Mindak 1978 Kotler 1986
Kitchen amp Moss 1995 Kitchen 1997 Kitchen amp Papassolomou 1997)
4 ldquoImpact and sequence effectsrdquo Journal of Consumer Research
5 Gibson R and Zillmann D ldquoThe impact of quotation in news reports on Issue
perceptionrdquo Journalism Quarterly
6 Miller J and Krosnick J ldquoNews media impact on the ingredients of evaluations
Citizens are guided by a trusted sourcerdquo American Journal of Political Science
7 Valkenburg P Semetiko H and DeVreese C ldquoThe Effects of News Frames
on Readersrsquorsquo Thoughts and Recallrdquo Communication Research
8 Vaughn R ldquoHow PR works A planning modelrdquo Journal of Advertising Research
9 Vergeer M ldquoExposure to Newspapers and Attitudes toward Ethnic Minorities A
longitudinal analysisrdquo The Howard Journal of Communications
75