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ADVERTISING
MANAGEMENT
Case
No: 1
VENKY’S
OF VENKATESHWARA HATCHERIES
Venkateshwara Hatcheries which went public recently
is one of the most modern plants in poultry business in Asia. They have 60 p.c.
market share of chicken marketed in the country. Dr. B.V. Rao of
Venkateshwara Hatcheries expired in 1996. His daughter Anuradha Desai is now
the Chairperson and M.D. of VHL. In the beginning they had an Executive
Director Gulam Harjanwalla who professionalized chicken marketing. Sajid
Peerbhoy’s Speer ad agency was chosen. The brief given to Speer was “to market
raw chicken in the form of a full bird. Further, to market legs. To market legs
and breast. To market curried pieces. And half-bird.”
The company also planned to market ready-to-fly
pre-spiced chicken and to operate a chain of fast-food outlets serving chicken
fast food on the lines of McDonald’s.
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Speer did some marketing research by focus group
studies in Mumbai and then in Pune. The qualitative reseaci1 (QR) findings were
followed by quantitative research.
The following summarises the findings.
Occasions to
use chicken:
(a)
On special occasions
(b)
On Sundays
(c)
As a special treat
(d)
Cook it for guests
(e)
First non-veg food to which vegetay1ans graduated.
(f)
Each mother cherishes her own special recipe for a chicken dish. She prides
herself on it.
The ideal chicken was: Freshly chicken.
The convenient option was: Frozen chicken.
The following are the demerits of the frozen
chicken:
(a) It does not taste good.
(b)
It does not cook fast.
(c)
It requires a lot of water to cook.
The Inconveniences in getting fresh chicken were:
(a)
It is more and more difficult to get it near-by.
(b)
The search consumes time.
(c)
It involves transportation cost.
On deep probing, the consumer psychology while buying fresh chicken was one of guilt and disgust. The birds look so cute, as they are young. Just a minute ago, they were alive. It is so awful. Those poor creatures! Imagine them alive one minute, and then being eaten the next. It is so difficult to get used to this process.
Advertising Strategy
It is not necessary to remind about live chicken. It
is not necessary to see and think about raw chicken, dressed or otherwise. The
communication strategy should be to treat chicken as a vegetable. They are not
to be shown alive or in their ugly raw dressed form. The client was led
step-by-step and was supportive.
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Long-run
Objective
Though chicken has high standing as a special food,
we have to make it an almost twice or thrice a week food item.
Positioning
It was necessary to overcome the negative barrier to frozen food. In the market, fresh chicken was in fact frozen chicken vulnerable to bacterial contamination. The answer was a fact frozen chicken product. Venky’s chickens were chilled by a special process: blast freezing. The position taken was that of technological superiority. Venky’s unique freezing process makes it taste better and cook faster and melt quickly.
Differentiation
It was a special breed of chicken, that was extra delicious to eat. It scores over ordinary frozen chicken and even the freshly killed chicken. Brand Name
It was necessary to overcome the negative barrier to frozen food. In the market, fresh chicken was in fact frozen chicken vulnerable to bacterial contamination. The answer was a fact frozen chicken product. Venky’s chickens were chilled by a special process: blast freezing. The position taken was that of technological superiority. Venky’s unique freezing process makes it taste better and cook faster and melt quickly.
Differentiation
It was a special breed of chicken, that was extra delicious to eat. It scores over ordinary frozen chicken and even the freshly killed chicken. Brand Name
In spite of the Agency’s reservations, the Venky’s
was chosen as brand name, since it was the name of the M.D.’s son. The Agency
had considered fifty other optional brand names. Marketing research showed
Venky’s connoted a South Indian image and was associated with vegetarian food.
There were also connections with Lord Venkateshwara.
Headlines
These worked hard to ward off negatives:
These worked hard to ward off negatives:
‘Chicken so
fresh, it simply melts in your mouth. Reason: Superior blast freezing process.”
“Chicken so fresh, it’s only minutes old.”
“Chicken so fresh, it’s only minutes old.”
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Promotion of Special Parts
The special
parts were promoted as:
“The part you want are the
parts
you get.”
Execution
A simple mnemonic was used. Chicken was shown in a graphic from; one that did not turn off the house wife, and yet looked modern.
A simple mnemonic was used. Chicken was shown in a graphic from; one that did not turn off the house wife, and yet looked modern.
The colour scheme used was of yellow and red
colours, being happy and bright food colours. These colours are appetising too.
For quick
identification, a common symbol was used on all hoardings. ad material and at
POP.
Success of the Launch
The launch created tremendous demand but the distribution was weak. There
was the problem of spurious brands.
The company strengthened the distribution network later. However consumer supplies were diverted to institutional buyers leading to non-availability and spurious brands passing off as Venky’s.
The Agency advised premium pricing and quality policy. Instead, the company lowered the price. So many persons dealt with the Agency. Each questioned and disagreed with the thinking of earlier persons. Gulam, their E.D. left Venky’s. The number of out left were increased dramatically.
The company strengthened the distribution network later. However consumer supplies were diverted to institutional buyers leading to non-availability and spurious brands passing off as Venky’s.
The Agency advised premium pricing and quality policy. Instead, the company lowered the price. So many persons dealt with the Agency. Each questioned and disagreed with the thinking of earlier persons. Gulam, their E.D. left Venky’s. The number of out left were increased dramatically.
New
Ad Agency
New agency was selected. It brought chicken again to
a commodity position A good chicken that makes tasty chicken dishes). Emphasis on blast freezing was dropped.
Emphasis on blast freezing was dropped. Raw chicken again appeared in the ads,
contrary to research findings. Brand or product differentiation strategy was
dropped. Instead, emphasis was on different recipes.
Present
Thinking
Venky’s is
moving closer and closer to a commodity than a brand. It is fine as long as
there is no competition. The company perhaps believes that no one has the
backing or volume of production to be a threat to them. It is satisfied with a
marginal price premium. Being a chicken monopoly, it can afford not to have a
marketing cutting edge. The following is their present ad copy:
Questions (A)
(a)
Comment on the advertising strategy adopted previously and currently.
(b) Comment on branding of food products, and their promotion.
(c) Can you
think of a different creative strategy for a product like chicken?
Questions (B)
(a)
The complete product knowledge is given in the
above write-up. What do you think should be the copy platform for these
products? Indicate the theme, the appeal and the buying motives.
(b) Indicate a suitable
media mix for advertising these products. Give your reasoning.
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Case
No : 2
ALEMBIC
CHEMICAL WORKS LTD.
DIRECT MAILINGS OF ALCEPHIN: THE LEGEND
AMONG
ANTIBIOTICS
The pharmaceutical companies have to do direct
marketing by necessity as they cannot advertise ethical products in layman's
media for him, but are required to promote only to the medical profession. They
produce fine visual aids and product literature which could either be sent as
direct mailings to the medical profession or can be delivered to them through
medical representatives.
The Living Legends
What does one say about Lata Mangeshkar? That she has dominated the Indian film music
scene for almost four decades and promises to do so for atleast another decade? That she became a legend in
her own life time? That here is a
musical genius which comes about just once in many centuries? One could say all these things and yet be
merely repeating what has been said a million times over. And yet there is so
much more to one is capturing one more vital as poet which one did not realize
had existed in her. Such is the quality of her singing.
Very few of those who see her at the pinnacle of her
success realise the amount of effort, hard work end deprivation that have gone
into building the facade which is so enviable. Born In Induce on September 28,
1929. Late Mangeshkar is the eldest in family of four sister, and a brother,
all of whom have made a name in the field of music. Daughter of the noted
Marathi stage actor-singer Master Dinnanath Mangeshkar, Lata revealed her
musical genius at the tender age of five. Her first guru wee her own father and
she avidly followed his musical stage plays.
Late's mother Mai Mangeshkar ha, one vivid memory of
Lata as a child. It would seen that the young Late, one day, was singing a song
from one of her father's. plays when she bumped against something. All rushed
toward the unconscious child and tried to revive her. When she came to,
however, Lata continued with the singing of the song as if nothing had
happened. This dedication to music led to her debut on stage.
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However, her father's productive shadow was not to
last for long. On April 24, 1942 Master
Dinanath passed away reportedly telling her "Except for the tanpura in the
corner and these notebooks filled with classical music and songs and God's
blessings. I have nothing elseto give you. "The family'spenury compelled
Lata to sign a contract with MasterVinayak's Huna Pictures as an actress-singer.
In the same year,1942, she made her debut as a playback singer with Vasant
Joglekar's Kia Hasool in Marathi under
the baton of shripad Nevrekar .But taking up a career as a playback singer was
still impossible. She continued with her
acting career, acting in Pahili Mangeshgar (Marathi 42) Chimna Sansar
(Marathi43) More Bal (Marathi 43) Gajadhan (Marathi 44) Badi Mao (Hindi 45) and
Mandir (Hindi 48) With Mandir Lata seemed to have reached a dead end. Mandir was Master Vinayak's last film, after
which he passed away. She was no great shakes as an actress and her career in
playback singing had not really taken off. Two Years earlier she had made her
debut in Hindi playback singing with Vasant Joglekar's Aap Ki Sewa Afein under
the baton of composor Dutta Dawjekar but nothing much had happened. However, stars served more benevolent. Ghulam
Haider, who was then acoring the music for Majboor and who had seen and heard
lata in the early. Forties, signed her
up to sing a song for the film. Within a
week of singing this song. Lata became
the talk of the music world and was signed up by three other musical
giants. Khemchand Prakash for Mahal.
The most important thing is to make the mundane
promotion outstanding by creative ideas. Promotion of S.S. Oberoi came out with
a set of 10 four-page folders for Alcephin based on the theme 'The Living
Legends.' The folders are extremely well-executed - well-designed and printed.
The graphics and typography and illustrations are appealing. The idea is
outstanding. Ten living legends are chosen and include names like Satyajit Ray
(since then deceased), Mother Teresa, Baba Ainte, Lata Mangeshkar, Sunil
Gavaskar, R.K. Laxman, Abdul Kalain and Shivram Karanth. Each folder deals
exclusively with one legend. The selection covers a wide cross-section of
interests.
Each folder is well-researched. It brings out the
circumstances that inspired the magic in each of them. It becomes a collector's
series. The centre-spread has the manufacturer's plug. A short write-up on the
characteristics of Alcephin and the line 'The Legend Among Antibiotics.' It is
not intrusive at all. Yet it is effective.
Questions
(a) Which other businesses/products can be suitable
candidates for direct marketing? What promotional techniques can be employed?
(b) Please do
some research of your own on direct mailings of pharmaceutical companies. What
are your reactions?
(c) Put on
your thinking cap. Identify a there for a campaign of one general tonic.
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CASE
: 3 : IS SUPER BOWL ADVERTISING SUPER EFFECTIVE ?
About 140 million Americans and 700
million total global viewers tune in to Super Bowl Sunday, making the event one
of the largest occasions for home entertainment. Advertising time during the Super Bowl is
limited and priced at a premium. The
fight for the prime spots starts months in advance of the actual airtime. In 1993, the cost for a 30 – second time slot
was a high $850,000, but by 1997 the cost had shot to $1.2 million for the same
short time frame. In 1998, a 30-second
spot during the Super Bowl cost $1.3 million.
In 2000, a 30-second spot during the Super bowl cost companies a record
average of $2.2 million. Dot.com
companies that have since failed or are struggling to keep their heads above
water purchased forty percent of the Super Bowl ad slots in 2000. For the 2001 Super Bowl XXXVI, the average
rate for an advertising spot was approximately 2.1 million.
In
2002, during Super Bowl XXXVI, Fox Network offered 60 commercial spots for a
total of 30 minutes of advertising time. The average selling price for each
30-second spot was just under $2 million, at $ 1.9 million each. Companies who
paid for commercial time during Super Bowl XXXVI included Anheuser- Busch, who
purchased ten 30 – second spots, Pepsi Co, who featured one 90-second
commercial starring Britney Spears, E-trade, M & M/Mars, AT & T
Wireless, Levi Strauss, Yahoo, Visa and fast food chains Quizno’s Taco Bell, and
Subway are among others.
Although
Fox did end up selling all of the available ad spots, the network did not sell
the final ad until the Thursday before the game. There are several reasons for
the selling delay and for the reduced rates in 2002. First, marketers were facing the “worst
advertising recession in recent memory.”
This caused companies to carefully monitor how they spent their
advertising budgets and many decided that the money could be better applied
elsewhere. Many companies chose to
advertise during other prime time events that were more affordable. The average rate for a 30-second spot during
the early evening news in 2002 was $45,900.
Even events such as the Golden Globes (estimated price $45,000 per
30-second spot), the Grammies (estimated price $57,000 per 30-second spot), and
the Academy Awards (estimated price $1.6 million per 30-second spot) offer
companies ad time at lower rates.
However, these events do not draw as many viewers as the Super Bowl. Secondly, the NFL, for the first time, sponsored
a pre-game show on the Friday night before the Super Bowl. Some companies, such as AOL Time Warner,
Phillip Morris, Miller Brewing Co., and Motorola chose to avoid paying
“television’s highest commercial prices” and bought ad time for lower rates
during the pre-game show. A final reason
for lower rates and less marketer interest in Super Bowl ad time was
competition from the 2002 Olympic Winter Games.
The games began just five days after the Super Bowl and offered 17 days
of events during which advertisers could buy commercial time. The average selling rate for a 30-second
prime time spot during the Olympics was only $600,000, a bargain compared to
the Super Bowl.
Is
Super Bowl advertising worth the cost?
For many advertisers who bought time slots in previous games the answer
was a resounding no. Nissan, Porsche, Fila and MCI passed on the chance to
advertise during the game. According to
marketing consultant Jack Trout, the increasing rates made buying Super Bowl ad
time difficult to justify. Nissan
marketing Chief Brad Bradshaw stated that although the company had intended to
advertise during the game, it came to the conclusion that the resources could
be better used to sell its vehicles in other ways.
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In
addition to the cost factor, many question what effect advertising actually has
on the audience. The purpose of an
advertisement is to increase customer awareness for a particular brand. For Super Bowl ads, however, the brand name
often becomes secondary to the commercial itself in terms of viewer
attention. Super Bowl ads have become
events in and of themselves, with each firm trying to put out the next
earth-shattering commercial that will stir talk about the commercial
itself. Ever since Apple computer’s
classic “1984” ad, firms have been trying to top previous years’ ads. Ad agencies and clients often seem to shoot
for ads that are extraordinary for the sake or creativity, rather than their
intended purpose, with many attention-getting promotions not translating into
product purchases. It is questionable
whether brand name is retained, and so despite having an incredible commercial,
many advertisers’ ad dollars possibly goes into just providing new fodder for
water cooler conversation for the week instead of forming a lasting brand image
in the minds of consumers. Without new
research into the effectiveness of Super Bowl advertising and its effect on
consumers, many advertisers may be better off avoiding buying Super Bowl ad
time and abandoning the world’s biggest television audience.
Some
advertisers like Purina Cat Chow have taken a slightly different approach by
purchasing airtime on the show directly following the Super Bowl. They obtained airtime at one-sixth of the
cost during the game and they believe that they retain approximately 40 percent
of the audience. Which advertiser got
the biggest bang for the bucks: M & M/Mars that advertised during Super
Bowl 2002, or Purina Cat Chow that advertised after the game? Without systematic marketing research aimed
at measuring Super Bowl advertising effectiveness, questions such as these beg
answers. It remains to be established
that Super Bowl advertising is super effective?
Questions:
1. What kind of research design
would you recommend for determining the effectiveness of M & M/Mars
advertising during the Super Bowl?
2. If the research design involves
a survey of households, which survey method would you recommend and why?
3. What kind of measures and scales
will you employ in your survey?
4. Can the observation method be
used to determine the effectiveness of M & M/Mars advertising during the
Super Bowl? If so, which observation
method would you recommend and why?
5. Which syndicated services
discussed in the book can provide useful information?
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CASE
NO : 4 : NIKE SPRINTS AHEAD OF THE COMPETITION,
YET
HAS A LONG WAY TO RUN
Nike,
Inc.(www.nike.com), located in Beaverton, Oregon, is the number one U.S.
athletic footwear company and one of the most recognized American brands among
foreign consumers. This high degree of
recognition is one of the main reasons Nike has been so successful. For the 2001 fiscal year ended May 31, 2001,
the company continued to soar, with sales of over $9.5 billion.
Perhaps such success could be attributed to its concept -
based advertising campaigns. The company
uses a process that is often called “image transfer”. Nike ads traditionally did not specifically
place a product – or mention the brand name.
A mood or atmosphere was created and then the brand is associated with
that mood. “We don’t set out to make
ads. The ultimate goal is to make a
connection,” states Dan Weiden, executive of one of Nike’s ad agencies. One ad featured the Beatles and clips of Nike
athletes, Michael Jordan and John McEnroe, juxtaposed with pictures of regular
folks also engaged in sports. It was used to infer that real athletes prefer
Nike and that perhaps if the general audience buys the brand they will play
better too. Nike’s unpredictable
image-based ads have ranged from shocking, such as its portrayal of real blood
and guts in a “Search and Destroy” campaign usesd during the 1996 Olympic
games, to humorous, such as the first ad used to launch Michael Jordan’s Jordan
brand wear. The latter advertising made
the tongue – in – cheek suggestion that Jordan himself had a hand in production
by slipping away from a Bulls’ game at half time to run over to his company and
then return in time for the game’s second half.
In 1998, Nike shifted to a new phase in its marketing
strategy. Nike emphasized more of its
product innovation skills than the jockey, edgy attitude that it displayed in
previous years. “We recognize that our
ads need to tell consumers that we’re about product innovation and not just
athletes and exposure. We need to prove
to consumers that we’re not just slapping a swoosh (the company trademark) on
stuff to make a buck,” said Chris Zimmerman, director of Nike’s U.S.
advertising. With the launch of the “I
can” campaign, Nike showed less of the celebrity athletes that previously
adorned its marketing output and showed more product usage than in the previous
“Just Do It” campaign. Competitors
Reebok and Adidas recently featured more product-focused ads and were met with
a great deal of success. Despite this
rearranged focus, Nike did not back away from innovative marketing.
Nike continues to excel in the advertising arena. Nike was named one of 2001’s best in
advertising by Time magazine for its ad featuring expert dribblers doing trick
moves. Time is quoted as saying the ad
conveyed a message that “Sport is music.
Sport is dance. Sport is
art.” Nike states that this ad was their
most popular ad in 20 years. Another
popular ad from 2001 was known as the “Take Me Out to the Ballgame” ad. This
particular ad featured professional athletes from varying sports singing one
line of the song. “Take Me Out to the
Ballgame” in their native language.
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As the company looks ahead to 2010, at the heart of
Nike’s future strategy is the international arena, which could prove to be the
most difficult element for Nike to undertake.
There seemed to be a pretty strong recognition that by 2010, Nike would be larger outside of the
U.S. than inside. As of 2003,
international sales comprised one-third of Nike’s business. Nike would like to expand into the soccer and
international sports arena, but to do so, it would have to refocus its
marketing and distribution in order to re-establish itself as an authentic,
technically superior sports shoe.
In February 2001, Nike unveiled its latest technological
revolution, the Nike Shox, to United Kingdom consumers. This shoe was in development for 16 years,
and Nike hoped it would revolutionize the sports shoe market in much the same
way that NikeAir did when it was launched in the UK in the 1980s. One reporter in London states that his pair
of Nike Shox makes him feel like he is “walking on cloud nine with a spring in
(his) step.” The shoes are reported to
provide support, comfort, shock absorbency, and style all at the same
time. The Nike Shox line of athletic
shoes is shaping up to be very popular in both the U.S. and the U.K.
Most recently, Nike bought out many of its worldwide
distribution centers in order to achieve greater control of its
operations. In the future, Nike would
like to build up its presence in the key markets of China, Germany, Mexico, and
Japan. Nike will focus its advertising
on sports, and will feature sports that are of a particular interest in
specific regions. Nike realizes that
while it is ahead of competition, it still has a long, long way to run.
Questions:
1.
Should Nike switch from a focus on celebrities to a focus on its products in
its advertising? Discuss the role of
marketing research in helping Nike management make this decision. What kind of research should be undertaken.
2.
How would you describe the buying behavior of consumers with respect to
athletic footwear?
3.
What is the management decision problem facing Nike as it attempts to retain
its leadership position?
4.
Define the marketing research problem facing Nike, given the management
decision problem you have identified.
5.
Develop two suitable research questions and formulate two hypotheses for each.
6.
How can the Internet be used to help Nike in conducting marketing research, and
in marketing its products?
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