Advertising agency-project-report up

TITLE OF THE REPORT:

“THE STUDY OF ADVERTISING AGENCIES”

PREFACE

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

project based on the study of “Advertising Agencies”. The foregoing presentation is an

honest and painstaking effort on my part in black and white about the colourful world of

advertising agencies. The data collected by me is both primary as well as secondary. I

have taken assistance from knowledgeable and apt taskmasters shouldering work f great

responsibility in some of the reputed advertising agencies. However, with due respect to

the urge of these agencies for maintaining secrecy about their operations and financial

data ,I also had to resort to secondary sources for obtaining data like newspapers,

magazines and the websites of these agencies. Although the information obtained from

secondary sources may prima facie seem to be paralysed by window dressing, to be

absolutely frank with my understanding readers, it has been discovered that this data is as

reliable as the one I have obtained from the horse’s mouth for other agencies.

Due to paucity of time and reluctance of certain internationally acclaimed

advertising agencies in co-operating with me for this project due to some obvious reasons

on their part ,I have been able to cover in this project a study of 6 agencies. But the

foregoing pages will warrant my painstaking efforts and the extensive study undertaken

by me for each of them.

So, with due respect to my patient readers for the time they will spare for my

project and with confidence flowing through my nerves that both the time and patience of

my readers will not be tried and tested and but duly rewarded with the intensity of my

efforts , I carry you gracefully into my world of advertising agencies……………

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ACKNOWLEDGEMENTS

I would like to sincerely thank the University of Mumbai for giving me this

opportunity of taking up such a challenging project which has enhanced my knowledge

about the Advertising Industry & the advertising agencies.

I am very grateful to Ms. Meghana Patil- Project Co-ordinator, under whose

guidance and assistance I was able to successfully complete my project. I am also

thankful to Mr. Vikram Shrotri, Project Guide whose advise and thoughts helped me gain

a better understanding of this huge advertising industry and the flambouyant,

magnanimous world of advertising agencies.

Last but not the least, I also thank the below-mentioned honourable dignitaries

and task-masters who have played a major role in leading their respective agencies to the

sky of glory. This is a special thanks to them for sparing their precious time, fitting my

out-of-the-way appoin”ent into their diary and giving almost all the information required

by me in an unbelievably amicable manner.

Without the priceless contribution and coveted guidance of all the above-

mentioned people, this project would have never got a shape of reality and emerged

before all of you in the manner and in the style as it now appears.

Warm thanks to :

1. Ms. Nandini Rajan, Account Executive of XEBEC COMMUNICATIONS PVT.

LTD.

2. Ms. Tanya Gulrajani of CARAT MEDIA SERVICES INDIA PVT. LTD.

3. Mr. Suresh Kannan, Media Manager of CANCO ADVERTISING PVT. LTD.

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EXECUTIVE SUMMARY

1. OBJECTIVE :

To study the various advertising agencies; the ones having local operations as well as

the ones have international scale of operations, their modus operandi, styles and the

manner of functioning, their profiles, their upswing and their downfall and last but not

the least their position in the world of advertising on the basis of the contributions to

the ad world and society at large.

2. METHODOLOGY :

In order to achieve the above-mentioned objective and finish the study to perfection, I

have made a judicious and a balanced use of primary sources as well as secondary

sources of data collection. Well, the primary sources comprise of personal visits to the

administrative offices of some known advertising agencies and a direct

communication with the persons who were knowledgeable and in-charge of the

operations.

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

in length all questions that would serve the purpose in the most efficient and

productive way. The preparation and the formulation of the questionnaire was on the

basis of many considerations viz., the time that the answeree would require to give me

the required answers, the importance of that time and the cost involved. A copy of the

said questionnaire is included elsewhere in this project as an Annexure.

Although the efforts were directed basically towards obtaining information required

for the study from primary sources to the maximum possible extent, due to factors like

lack of co-operation anticipated from stalwarts and internationally acclaimed agencies,

considerations of these agencies over secrecy of data regarding their operations, lack

of time for answering the questionnaire and unavailability of the persons-in-charge, I

also had to resort to secondary sources like websites, magazines, newspapers etc. 4

Bibliography of these sources forms a part of this Project for ready reference of the

reader.

A sample of six agencies was chosen on the basis of their scale of operations,

reputation and quick accessibility.

3. CONCLUSIONS :

During the course of this study I have observed many a facet of the advertising

agencies ----- their strengths, their weaknesses, their opportunities and threats which

deserve a mention :

Most of the advertising agencies are basically interested in catering to just the

needs of the consumer irrespective of the nature of the product or service

proposed to be advertised.

The primary objective of the agencies is basically profit generation and profit

maximisation.

The agencies conduct a SWOT of the client but not of the product at the time of

accepting an assignment.

There is not much of a dynamism in this agencies as far as expansion plans are

concerned, diversification objectives are involved or specialisation motives are in

question.

Not much is done by these agencies for the social welfare and advertising of

social values

The agencies are highly committed to their activities but sometimes they tend to be

over-professional in their attitudes, over-reserved in the choice of strategies, over-

confidential in their operations and over-aggressive in competition.

Not many agencies are laying too much emphasis on selection of proper human

resources or managerial personnel. They appear over-burdened by objectives of

cost control.

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There is not proper training imparted to people working in the modestly

positioned advertising agencies. Due to this, there is lack of specialisation,

improvisation and dynamism.

4. RECOMMENDATIONS:

The following are recommended in view of the importance and the strategic position

occupied by these agencies :

The advertising agencies should function in a healthily competitive

environment rather than in an aggressive world of cut-throat competition.

The agencies should definitely give importance to profit maximisation but at

the same time function in public interest as far as charges and quality of

products is concerned.

The agencies should also conduct a SWOT analysis of the products to be

advertised at the time of accepting assignments alongwith the routine

SWOT analysis of the clients.

There should also be a provision for staff training whereby the staff is properly

motivated and educated for the roles they perform in the organisation

leading them to specialisation and perfection.

The advertising agencies should also have a perspective of tapping new

avenues, creating mew markets and pursue global expansion for the

benefit of themselves and for the country at large.

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Table of Content

Sr.No Topic Page No

CH 1 Research Methodology 11

CH 2 Introduction 14

CH 3 Profile

3.1 Introduction to Advertising Agencies 18

3.2 Functions of Advertising Agencies 18

3.3 Model Organization Structure 22

CH 4 ADVERTISING AGENCIES

1 XEBEC

1.1 The Whereabouts 23

1.2 Modus Operandi 23

1.3 The Canvas on which Xebec paints its product 24

1.4 How can I know about Xebec? 24

1.5 SWOT Analysis 25

1.6 Case Studies 27

1.7 Awards and Achievements 30

1.8 Who’s who in Xebec 31

1.9 Divisions of Xebec 31

1.10 List of Clients 33

2 CARAT




2.4 List of clients 37

3 CANCO




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3.4 Canvas on which Canco paints its product 41

3.5 How can I know about Canco 41

3.6 Organization Structure 41

3.7 Facilities offered by Canco 42

3.8 Awards 42

4 MCCANN - ERICKSON

4.1 History 43

4.2 Who’s Who 43



5 MUDRA

5.1 History 60

5.2 Pioneers in Advertising Agencies 61

5.3 Divisions 62

5.4 Founder 62

5.5 List of Awards 63

5.6 Major Clients 64

5.7 Organization Structure 66

CH 5 SWOT Analysis of Advertising Agencies-Comparative

Study

67

CH 6 Statistics

6.1 Comparison between Gross Income of Top 25 Agencies 69

6.2 Growth of Advertising Agencies 70

6.3 Top 20 Advertising Agencies 72

6.4 Top 20 Advertising Spenders 73

6.5 Agencies Ranking 74

6.6 2001- Top Ten Multinational Advertisers 75

6.7 2001- Top Ten Advertising Agencies 75

6.8 Comparison of Agencies on the basis of Worldwide Gross

Income

76

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6.9 Graph of Growth of Agencies 77

CH 7 Suggestions and Recommendations 78

CH 8 Conclusion 80

CH9

CH10

Annexure

Bibliography and Webliography

82

84

RESEARCH METHODOLOGY

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Topic : STUDY OF ADVERTISING AGENCIES

1. OBJECTIVE :

The project deals with the study of advertising agencies encompassing a multi-

dimensional discussion on the whereabouts of these agencies, their modus operandi,

their manner and coverage of operations, their strengths, weaknesses, opportunities

available to them and the threats posing obstacles in their journey to the max. This

study shows the diversity underlining their operations and at the same time the unity

in aims, objectives and target. As during the preparation of this project, some

inevitable obstacles and natural hindrances restricted the scope of this study just as

these agencies are restricted by many environmental and socio-economic factors,

nonetheless, its a sincerest attempt to do the best possible justice to the said topic.

2. AGENCIES COVERED :(1) Xebec

(2) Canco

(3) McCann-Erickson

(4) Carat

(5) Percept

(6) Mudra

3. FROM PLACES TO PAPER :The data required for this study as per my vision was collected from the following

two types of sources :

(1) Primary Sources

(2) Secondary Sources

Primary Source of data collection was tapped in the following manner :

(1) Personal visits :

This was given the topmost priority. Well, any information from the horse's

mouth gives a touch of reality, practicability and conviction to every study and

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this aspect made it an area of key importance. I visited three agencies viz.,

Xebec, Carat and Canco, though I approached many others including the

topnotch like Ogilvy & Mather, Mudra, Lowe. However to my utter

disappoin”ent and ill-fate, I never succeeded in getting appoin”ents from the

ones. In the agencies I visited, I contacted those taskmasters who were holding

positions of no less importance and who had a thorough knowledge of the

environment of their respective agencies, the operation, the style of working and

the clientele. At the same time, I found these people quite enterprising,

professional-to-the-core in their approaches, knowledgeable, speech-conscious

and very co-operative. I basically got answers to all the questions that were put

in the questionnaire in an unhesitating and amicable way.

(2) Sending questionnaires :To those organisations that showed their firm unwillingness in attending to me

personally, I sent my questionnaires through internet to the key personnel in an

attempt to convince them into giving some information about the agencies for

whom they toil. Some replied back courteously; either disclosing their

helplessness in giving information or informing me to surf their websites and get

all possible information to my u”ost satisfaction (an advertisement for

advertisers).

Secondary sources of data collection :

On account of the cold shoulder given to me by the media-giants and their

contemporaries, I had to resort, as also advised by some of them, to secondary

sources of information like newspapers, websites and books for supplementing

the information obtained from primary sources and sometimes for the main

information. Honestly, the information obtained from the websites was detailed

and sufficient to an extent that would even surpass those of primary sources. In

the ocean of the information that the websites contained for each agency, I had to

fathom for the most precious gems which required crisp editing, preciseness and

good scissor-work. Also newspapers like The Economic Times and its

supplementary called Brand Equity did leave their imprints on the papers of the

project to follow and their contribution to this presentation cannot undermined

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and unnoticed. Help was also taken from books based on advertising and

marketing to give a better appeal to this study and enrich it with more detailing

and liveliness.

4. RESULT

The cummulative result of primary sources of data collection and secondary

sources is obvious from the pages that follow. However, I have been able to

generate sufficient information and moreover, in detail from all the sources

employed in an endeavour to leave no stone unturned in justifying the selection of

this topic and advertising agencies, at large. Though marred by some obstacles, I

am convinced that my painstaking efforts and drops of sweat that have made the

papers intangibly wet and the ink of the pen go dry will convince my patrons

carrying good doses of expectation from this project.

5. DIFFICULTIES FACED :

1. Stipulations and urge for strict adherence to the length of this project upto a

maximum of 80 pages forced me to run the merciless scissor on many points. The

pen was on but the papers were gone.

2. Lack of co-operation from the stalwarts and the internationally acclaimed ad-

giants has been the biggest obstacle in the way. Though, they are very much

justified and I give due consideration to their urge for maintaining confidentiality

about their operations and financials, I still believe that had this information,

however explanatory it is, been obtained from them directly, it would have

definitely made neighbours' envy and owner pride.

3. Unavailability of concrete sources of secondary data was another hindrance.

Though websites form an exception, barring them there was hardly a source that

carried some potential in meeting the requirements. Prestigious publications like

A & M have faced shut doors of printing presses and a replacement is still hiding

in some unknown corner of invisibility.

In a nutshell, all these ingredients which have gone into the making of this recipe

wait a verdict from the readers for their taste.

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INTRODUCTION

The word that bridges the gap between “no more” to “know more”- Advertising……….

and further between “know more” and “grow more”. Knowledge is power, they say and

today the biggest weapon of power in anyone’s hands is that of advertising. Just as water

is to a fish, advertising is to business; something without which the basic question of

survival is bound to rise.

In this jungle of name and fame, where every creature confidently defies William

Shakespeare when he says,” What’s there in a name” there is definitely everything

attached to name and it’s this name which gives you fame……And what gives an identity

it’s name? Well, the only golden word “Advertising” Definitely roses will not smell less

sweet by any other name but businesses will undoubtedly go back to the coffers if the

world forgets their names and to keep them alive in the minds of billions, you go for

publicity.

Today everyone advertises – from crèches to crematorium ,from hotels to hospitals, from

clubs to pubs,from marriage bureaus to lawyers…… well name it and you have it.

Everyone needs recognition, from a 6 month baby in the cradle to a 60 year old preparing

for a graveyard, from a beggar to a billionaire…… everyone wants you to recognize in a

train or in a plane , irrespective of what you are. In the yesteryears , everything was

considered fair in love & war and advertising . It does not mind if you have to pull

someone down, important is that you should rise.

And who helps you to project yourself in the public, who brings you from the greenlight

to the limelight, who brings you from the darkness of ignorance to the light of

recognition? Obviously, the advertising gurus seated comfortably in their mind-blowing

offices

These Advertising Agencies may be raking in big “moollahs” but no one can question

their contribution in enabling the business to burn their “choolahs” .Today there are the

movie moghuls and cricketing badshahs dancing on their fingertips, models and 13

celebrities weaving their irresistible web of magic around people like us. Well, necessity

is the mother of invention and our necessities have opened the doors of prosperity for

these agencies.

Be it a product or be it a service, they have the magic formulae for everything and mind

you, these formulae really work on our minds as is clear from our very own experiences.

And sometimes their roles really makes a layman wonder as to what would have happen

to those hundreds of unsung brands appearing as faces in the crowd on some rack or

shelves of a huge supermarket or a not-so-popular stores if these agencies would have

never risen from the sands of time.

Today, the exposure of every individual to advertisements and advertising has increased

manifolds than what it was in the past. Kudos to these agencies ; at least they have turned

out to be major trend-setters and torch-bearers for people like us showing us the way to

the magnanimous world of sophisticated products & services. However unethical and

materialistic these agencies may be, at times in a bid to grab the lion’s share of the

buyers’ market, it is doubtlessly certain that without these agencies we would have never

come out from the age of transistors to reach the modern age of home theatres. Well,

every cloud has a silver lining to it.

Who can forget the extent and the manner in which Reliance Infocomm marketed its

Wireless in Local Loop (WLL) Technology on the onset of the launch of its mobile

service. Irrespective of the post-use catastrophes, the impact of solid marketing &

publicity on the minds of an ordinary laymen for whom having a mobile in hand was

nothing less than wearing a gold ring in the ring finger is reflected in the way such a

person is today using a cell phone. The hype was created by the agencies like Xebec

Communications who advertised the product of one of the Fortune 500 Companies of

India and the hysteria still continues.

Today, may products like chocolates and butter come to be identified by their brand

names like “CADBURYS” & “AMUL”. On the other hand, many others are identified by

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their slogans, catchlines & punchlines devised by the advertising wizards like

“BLACKMAGIC MOTION PICTURES” for their clients’ products like “Hamara

Bajaj (Bajaj Auto)”, “Utterly Butterly delicious Amul (Amul)”, “A gift for someone you

love(Cadburys’)”, “Yeh Dil Maange More (Pepsico)” , “Taste the Thunder (Thums-Up)”

etc.

Before we go ahead with the discussions about the advertising agencies & the brains

behind them, it’s pertinent to bring to limelight the benefits which we, as a society, are

deriving from these agencies and the not-so acceptable traits.

PRESENTING...

The pros…

(1) Creating awareness :

Due to the increasing role of the advertising agencies and so-called dominion over

our minds, today the level of consumer awareness could be well adjudged from

the fact that even a toddler identifies in the spur of the moment an ad of

Cadburys’ chocolates or Amul Butter been run on the screen of the idiot-box

ornamenting our spacious drawing rooms.

(2) Enabling wider choice and access to products :

So many products and so many ads for each of them…leaves the poor customer

gasping for some free space. Well, with the bombardment of so many

commercials, universal hoardings, from advertisements stuck on the walls of the

building compounds to those stuck on the walls of the railway compar”ents, the

customer has multitude options and ample of choices to really get “ better than the

best”. Well, people are after all paying handsomely for their requirements and

they deserve choices and options. But, it all owes to these agencies who have

spread out before us 10 different types of toothpastes for making out teeth the

whitest and the hardest, 100s of moisturizers for giving the best glow to our skin

an all sorts of luxuries which have become more necessary than the necessities.

(3) Uplif”ent of standard of living :

Well, its said that “Money makes a mare go”. Today, this not be any more

emphasized as everyone knows that depending on the financial background,

people can get the best of everything. From a cycle to a car, or from a dhaba to a

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restaurant, the customer knows where he is the most comfortable and is able-

bodied to plan out his budget as he knows the price tags stuck on every product

and service. And all this, is possible because of the constant exposure to media

and publicity.

(4) Necessary for the growth of the businesses :

From the Ambanis to the paanwalla, from the Bachchans to the street-actors,

every soul is convinced of the power of these agencies in giving them a larger

than life size image. Every business house, big or small, though cutting the cloth

according to the size of its coat, needs the services of these agencies to project its

brand image before the laymen and convert these laymen into prospective and

from prospective to loyal customers for their products and services. Revenue

generation is the prime objective behind every business and to rotate the wheel of

success, its important for them to use the services of these think-tanks and always

remain on the topmost rank.

The cons.....

(1) A cold shoulder to social responsibilities :

The advertising agencies today are not performing to the non-material welfare of

the society. Their commit”ents and obligations to the society are mani-fold. Being

the torch-bearers of the world of publicity and media, they are on a huge platform

from where they can spread messages of public interest in every nook and corner

of the country. Alongwith their professional assignments for profit maximisation,

they can also design propagandas for conveying important social messages like

harmfulness of smoking and drinking liquor, abolishing evil practices and dogmas

deeply rooted in the blood of the rural illiterate, importance of a nuclear and small

family etc. Accepting these assignments for a social cause will not create a dent in

their pockets but will surely go a long way in revolutionising thoughts, attitudes

and mindset of every Indian.

(2) No SWOT of products advertised conducted :

All the advertising agencies are conducting a SWOT analysis of the prospective

clients that approach them with a product or service meant to be advertised but no

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one is bothered about a scrutiny of the products to be so advertised. It is not their

business, perhaps it is anti-business; that's the feel and the flavour.

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Business

Advertising agency-project-report up