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					                                   TABLE OF CONTENTS


1.EXECUTIVE SUMMARY ................................................................................................. 3

2. INTRODUCTION ............................................................................................................. 6

   INDUSTRY OVERVIEW ..........................................................................................................19

   COMPANY OVERVIEW ..........................................................................................................31

3. PROJECT PROFILE ..................................................................................................... 35

4.OBJECTIVE ..................................................................................................................... 55

5. METHODOLOGY .......................................................................................................... 57

6. OBSERVATION ............................................................................................................ 62

7. ANALYSIS....................................................................................................................... 68

8. FINDINGS ....................................................................................................................... 93

9. RECOMMENDATIONS AND CONCLUSIONS ....................................................... 97

10. ANNEXURE ...............................................................................................................101




                                                                  1
                        LIST OF TABLES AND FIGURES


Table 1: Nutritional value of Nutella ..........................................................................................45
Table 2: THE COMPARISION BETWEEN NUTELLA AND SOME OF ITS MAJOR COMPETITORS IN
TERMS OF THE NUTRIENTS PRESENT (per 100g) ........................................................................51
Table 3: The percentage of bread consumed in the four regions of India ..................................52
Table 4: Comparison between traditional food and bread .........................................................66
Table 5: The supplements provided to bridge the corresponding gaps. .....................................67


Figure 1: Organisational Structure - type 1……………………………………………………………………………….25
Figure 2: Organizational Structure- type 2 .................................................................................26
Figure 3: Leo Group ...................................................................................................................31
Figure 4: Marketing Research Design ........................................................................................59




                                                                   2
EXECUTIVE

SUMMARY




    3
Whenever a new product or an existing one has to be positioned in a new market the marketers
try to create an image or identity for that product or brand. Positioning is something that is done
in the minds of the target market. A product's position is how potential buyers see the product
and this is done by communicating effectively to the target which majority of the times is carried
out by advertising the product with the help of an ad agency
Nutella is an Italian bread spread which though exists in the Indian market but it‟s not yet
marketed in India. Ferrero being the parent company has decided to market it in India and
orchard advertising pvt ltd has been given the responsibility of advertising the product.
Orchard advertising is a Bangalore based ad agency which has its branches in Delhi, Mumbai
and Chennai. It deals with all types of advertising with utmost creativity and effectiveness.
Advertising being a non personal communication of information usually paid for and often
persuasive in nature about products, services or ideas by identified sponsors through the various
media and is designed to influence the purchasing behavior and/or thought patterns of the
audience. Hence in order to find the best fit for our product „Nutella‟, the project comprising of a
research initiative was given to me.
Nutella has been a great success in European countries. The product is a delicious, high in
energy, low in calories bread spread with hazelnut and chocolate base. The parent company has
positioned it as a breakfast spread because as its nutritional value is best suited for the first meal
of the day and the same positioning would be followed in India as well.
My research initiative entitled „breakfast habits of children‟ was basically to understand the
current breakfast habits of Indian children. Indian cuisine is totally different from that of the
European, and hence I was supposed to understand the perception of breakfast, the kids‟
demands for breakfast, need gaps if any and a general perception on bread and bread spread with
an opinion on our product „nutella‟.
The targets as quite evident were kids but the target for communication was the urban upper
middle class and upper class mothers. The research began with a secondary syndicated data
collection from various websites and a small survey to get an insight about the perceptions. This
was an in-depth face to face interview which had to be recorded on a Dictaphone based on an
open ended questionnaire. Then a detailed survey which consisted of face to face as well as
telephonic interviews was carried out to strengthen the observations from its predecessor survey.



                                                  4
The research was carried out in Bangalore and Mysore and the sampling methods were random
and snowball.
From the data collected a lot of myths and misconceptions related to breakfast surfaced up. The
general perception on breakfast, bread, bread spreads and most importantly on our product
Nutella was analyzed. By keeping in mind the project findings different strategies of advertising
and addressing the issues were chalked out.




                                               5
INTRODUCTION




     6
Advertising is a persuasive communication attempt to change or reinforce ones‟ prior attitude
that is predictable of future behavior. It is a paid form of a non personal message communicated
through the various media by industry, business firms, nonprofit organizations, or individuals.
Advertising is informational and is designed to influence the purchasing behavior and/or thought
patterns of the audience. Advertising is a marketing tool and may be used in combination with
other marketing tools, such as sales promotions, personal selling tactics, or publicity.

Advertising‟ is a medium meant to propagate ideas to people using any means of
communication. Liberalization has empowered advertising and has completely changed the
Indian advertising scenario. The major areas touched by advertising are FMCG‟s food market,
cosmetics etc.

Advertising is like the two sides of a coin. Sometimes it may seem that advertisements send out
the wrong message or impel people to buy certain products. On the other hand, advertising can
be perceived as a means to sell a product or a service which can improve by competition.

Today, advertising is booming. With the growing markets and competition, it has become an
essential tool to reach the target market as well as the target audience.

Advertisers in India have reached 75 percent of the population, using television as a media
device, and the rest of the population is reached via radio. India, however, favors newspapers,
magazines, television, radio, billboards and business publications to convey messages about
various products. It is the advertising agencies‟ advertisements which portray ideas to the
audience – agencies that compete to be ranked as the best. The world‟s leading advertising
agencies – Ogilvy and Mather, J. Walter Thompson, BBDO, Lintas, McCann-Ericsson and Leo
Burnett have successfully made a mark in the Indian market.

Advertising is used to publicize a product, service, or idea. Many types of advertising are
available for the purpose of building brand awareness and increasing product sales. Advertising
is present in almost every aspect of daily life.




                                                   7
Before deciding what types of advertising are best, it is important for a company to define the
audience they want to target. The specific group which a product is marketed towards is their
target audience. Demographic information such as age, gender, education, and income level
helps define a target audience. Placing your message in advertising venues focusing on this
group, or demographic, is called target marketing and is essential to effective advertising.

Print mediums like magazines, brochures, and newspapers allow the marketer‟s message to reach
their target audience on the page. Magazines include articles and images intended to attract a
specific type of consumer. Magazine publishers have extensive demographic information on
their readers, allowing marketers to tailor advertising to speak specifically to their potential
customers.

Broadcast advertising includes TV, radio, and Internet messages. Traditional forms of these
types of advertisements are commercials shown during a television program or before a movie.
Product placement advertising is a less obvious way to promote a product. With product
placement types of advertising, companies pay to have their product used by a character in the
program. When you see someone in a TV show or movie using a specific brand, this is product
placement, or covert advertising.

One of the first instances bringing product placement to the public‟s attention was in 1982 when
the movie E.T. was released. In this movie, characters are seen eating Reese‟s Pieces® candy.
Sales of Reese‟s Pieces® increased substantially as a result of their visibility in this incredibly
popular movie, generating publicity about the effectiveness of this type of advertising.

Internet promotion is one of the newer types of advertising and can be accomplished in a number
of ways. Flash advertising refers to messages that jump onto your computer screen and often
move around. They can be hard to close and are annoying, but effective at gaining your attention.

Pop up and scrolling ads are other examples of these types of advertising. Pay per click
advertising refers to marketers paying to have their web pages placed high on search engine
results pages. These are also called sponsored links.

Outdoor advertising utilizes billboards and signage. These types of advertising include using cars
with promotional messages on them, or large signs placed on the sides of buses. They can also be


                                                 8
signs on scoreboards or in stadiums drawing the attention of large crowds and television
coverage at sporting events

The advertising agencies are ranked in order of their creativity as well as the expertise to deliver
the content and message to the clientele. There are many parameters on which they are graded,
and these are just a few.

Most important among them being the manufacturing, trading and service firms, non-profit
institutions and the government agencies. Advertising can also be classified according to types.

The principal means of classification are:

(1) By geographical spread, such as national, regional and local

(2) By target group, such as consumer advertising, Industrial advertising or trade advertising

(3) By type of impact such as:

i) Primary demand or selective demand advertising

ii) Direct or indirect action advertising

iii) Institutional advertising

The basis of classification, however, can be diverse, as will be evident from below:

National Advertising: Some „manufacturers may‟ think that their target is, the entire country.
„They select media with‟ a countryside base. Generally large, established firms belong to this
category.

Small firms may like to restrict their business to State or regional level. Some firms first localize

Their marketing efforts and once success has been achieved, they spread out to wider horizons.
Sometimes large firms may also go in for local advertising, e.g., when they undertake pre-testing
of a product especially consumer products in selected areas before embarking promotional
campaign on a national level.




                                                  9
Global Advertising: Multinational firms treat the world as their market. Firms such as National
IBM or Sony or Ford advertise globally.

Target Group: It is on the basis of target groups aimed at it can further be divided into sub
category as:

Consumer Advertising: A very substantial portion of total advertising is directed to buyers of
consumer products who purchase them either for their own use or for their household‟s. The fact
that buyers of consumer items are generally very large and are widely distributed over a large
geographical area enhances the importance of advertising as a marketing tool. The
preponderance of such advertising can be seen by looking into at random any general print
media, such as newspapers and magazines etc. These advertisements are intended to promote
sale of the advertised products by appealing directly to the buyers/consumers. Such advertising is
called consumer advertising. Another name for this is brand advertising, which focuses on the
development of a long-term brand identity and image. It tries to develop a distinctive brand
image for a product.

Industrial Advertising: Industrial advertising on the other hand refers to those advertisements
which are issued by the manufacturers/distributors to the buyers of industrial products. This
category would include machinery and equipment, industrial intermediates, parts and
components, etc. Because of the unique characteristics of industrial buying decision process, the
importance of industrial advertising is comparatively lower than that of consumer advertising.

Trade Advertising: Advertisements, which are directed by the manufacturers to the distribution
channel members, such as wholesalers or retailers, are called trade advertising.

The objective of such advertising is‟ to promote sales by motivating the distribution channel
members to stock more or to attract new retail outlets.

Professional Advertising: There are certain products for which the consumers themselves are
not responsible for the buying choice.

The classic examples are pharmaceuticals where the decision is made by doctors while the
consumers are the patient.



                                                10
Almost similar situation exists‟ in the field of construction where architects, civil engineers and
contractors are the decision-makers. Firms operating in such market segments, therefore, have to
direct their advertising to these decision makers, who are professional people. Such advertising is
called professional advertising.

By Type of Impact: On the basis of impact, advertising can‟ be primary advertising for generic
products such as tea, coffee, paints etc. These are unbranded products. At later stages, these
commodities are branded and specific brands are promoted. „They are called selective
advertising. Direct action advertising expects immediate response from the buyers such as
soliciting orders through direct mail. Mostly advertising is indirect action advertising which
makes the consumers favorably inclined towards the product so that they can later on buy these
products „in future.

Public Relations Advertising (PRA): Organizations these days are concerned with the type of
image they project they have to communicate their objectives to the general public. They also
have to Intake the public understand what their activities are. Public relations, in short, try to
build rapport with various constituents of public such as employees, customers, local authorities,
pressure groups, vendors, customers, shareholders, government and public at large. Public
relations advertising help to maintain this relationship. Its main objective is to build a good
corporate image. It deals with issues rather than products and services. PR advertising is done by
both business and non-business organizations. It represents management and communicates its
policies, problems and performances to the public.

Public Service Advertising (PSA): It is also institutional advertising, which seeks to promote
important social issue. It is created to promote greater awareness of public causes. The examples
of such social issues, which have been promoted, are handicapped children and their help, female
feticide, national integration, flood donation, AIDS etc. Public Service Advertising is also known
by various other names such as Public Awareness Advertising, Social Service Advertising and
Social Awareness (SA) Advertising.

Finally it is Political Advertising As most of the political advertising is directed to public, it
comes under the category of public relations advertising.



                                                11
Political advertising: It is created either by political parties or candidates. Mostly we come
across such advertising at the time of elections. Election advertising either lists the achievements
of the party of candidate or propagates their ideological basis. Sometimes, they are provocative
too. Such advertising may become comparative, where the weaknesses of the opposition are
highlighted to show their party or candidate in favorable light.

Financial Advertising: When public limited companies‟ invite the general public to subscribe to
the share capital of the company, it is called financial advertising. In a broader sense, it includes
all advertising by financial industry such as banks, car loan companies, insurance companies,
non-banking financial companies etc. It also includes image building corporate advertising prior
to an issue or-otherwise. Mega-issues are promoted even on TV. Issue advertisements are also
put on hoardings. Financial‟ advertising motivates the public to invest, educate the public on
various aspects of the issue, works in favor of the brokers/underwriters, and builds a good
corporate image. Financial advertising still remains prosaic. In order to be successful, it should
become more imaginative and distinctive.

Directory Advertising: Another type of advertising is called directory because people refer to it
to find out how to buy a product or service. The best-known form of directory advertising is the
Yellow Pages, although many different kinds of directories perform the same function.

Direct-Response Advertising: Direct-response advertising can use any advertising medium,
including direct mail, but the message is different from that of national and retail advertising in
that it tries to stimulate a sale directly. The consumer can respond by telephone or mail, and the
product is delivered directly to the consumer by mail or some other carrier.

Business-to-Business Advertising: Business-to-business advertising includes messages directed
at retailers, wholesalers, and distributors, as well as industrial purchasers and professionals such
as lawyers and physicians. Advertisers place most business advertising in business publications
or professional journals.

Many businesses never have the need to deal with the public at all. For these businesses,
advertising in the newspaper, radio or TV would be a waste of time and money. You will find
these companies using direct mail or placing ads in trade magazines.



                                                 12
Institutional Advertising: Institutional advertising is also called corporate advertising. These
messages focus on establishing a corporate identity or winning the public to the organization‟s
point of view.

Interactive Advertising: Interactive advertising is delivered to individual consumers who have
access to a computer and the Internet. Advertisements are delivered via Web pages, banner ads,
and so forth. In this instance, the consumer can respond to the ad, modify it, expand it, or ignore
it.

Co-Op Advertising: Co-op advertising in one of the best ways to advertise for a small business.
In this type of advertising the manufacturer absorbs a portion of the cost and can also supply all
the artwork for the ads. The type of message and your target market will often dictate which type
of advertising to use. Some companies will use more than one. Some will use several depending
on the situation. Let‟s also keep in mind the pros and cons of advertising.

There are two basic advantages to advertising. One, it‟s the best way to get a message out about a
new or existing product or service. Two, it can actually lower the cost of a product to the
consumer by increasing sales which can result in reduced production costs. The bad side of
advertising is that it can create an artificial need for unnecessary products and services. The point
is to keep an eye on the message you want your target market to receive. If you can, test some of
the six types of advertising with various offers and messages. Find the type that works for you
and work it.

HISTORY OF ADVERTISEMENT

Advertising goes back to the very beginnings of recorded history. Archaeologists working in the
countries around the Mediterranean Sea have dug up signs announcing various events and offers.
An early form of advertising was the town crier. Another early advertising form was the mark
that trades people placed on their goods, such as pottery. As the person‟s reputation spread by
word of mouth, buyers began to look for his special mark, just as trademarks and brand names
are used today. As production became more centralized and markets became more distant, the
mark became more important. The turning point in the history of advertising came in the year
1450 when Johann Gutenberg invented the printing press. Advertising no longer had to produce
extra copies of a sign by hand. The first printed advertisement in the English language appeared

                                                 13
in 1478. In 1622, advertising got a big boost with the launching of the first English newspaper,
The Weekly News. Advertising had its greatest growth in the United States. Ben Franklin has
been called the father of American advertising because his Gazette, first published in 1729, had
the largest circulation and advertising volume of any paper in colonial America. The invention of
radio and, later, television created two more amazing media for the spread of advertising.
Advertising as a discrete form is generally agreed to have begun with newspapers, in the
seventeenth century, which included line or classified advertising. Simple descriptions, plus
prices, of products served their purpose until the late nineteenth century, when technological
advances meant that illustrations could be added to advertising, and color was also an option.

An early advertising success story is that of Pears Soap. Thomas Barratt married into the famous
soap making family and realized that they needed to be more aggressive about pushing their
products if they were to survive. He is often referred to as the father of modern advertising.

However, it was not until the emergence of advertising agencies in the latter part of the
nineteenth century that advertising became a fully fledged institution, with its own ways of
working, and with its own creative values. These agencies were a response to an increasingly
crowded marketplace, where manufacturers were realizing that promotion of their products was
vital if they were to survive. They sold themselves as experts in communication to their clients -
who were then left to get on with the business of manufacturing.

World War I saw some important advances in advertising as governments on all sides used ads
as propaganda. The British used advertising as propaganda to convince its own citizens to fight,
and also to persuade the Americans to join. No less a political commentator than Hitler
concluded (in Mein Kampf) that Germany lost the war because it lost the propaganda battle: he
did not make the same mistake when it was his turn. One of the other consequences of World
War I was the increased mechanization of industry - and hence increased costs which had to be
paid for somehow: hence the desire to create need in the consumer which begins to dominate
advertising from the 1920s onward.

Advertising quickly took advantage of the new mass media of the first part of the twentieth
century, using cinema, and to a much greater extent, radio, to transmit commercial messages.
You can listen to some early radio advertising here (RealPlayer req'd). This was beginning to


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show signs of working effectively in the 1920s but the Wall St crash put an end to widespread
affluence, and the Great Depression and World War Two meant that it was not really until the
1950s that consumers had enough disposable income to really respond to the need creation
message of advertisers.

The 1950s not only brought postwar affluence to the average citizen but whole new glut of
material goods for which need had to be created. Not least of these was the television set. In
America it quickly became the hottest consumer property - no home could be without one. And
where the sets went, the advertisers followed, spilling fantasies about better living through
buying across the hearthrug in millions of American homes. The UK and Europe, with
government controlled broadcasting, were a decade or so behind America in allowing
commercial TV stations to take to the air, and still have tighter controls on sponsorship and the
amount of editorial control advertisers can have in a program. Unhappy with the ethical
compromise of the single-sponsor show, NBC executive Sylvester Weaver came up with the idea
of selling not whole shows to advertisers, but separate, small blocks of broadcast time. Several
different advertisers could buy time within one show, and therefore the content of the show
would move out of the control of a single advertiser - rather like a print magazine. This became
known as the magazine concept, or participation advertising, as it allowed a whole variety of
advertisers to access the audience of a single TV show. Thus the 'commercial break' as we know
it was born.

HISTORY OF ADVERTISEMENT IN INDIA

Just a few decades ago, Indian advertising was headed by expatriates. Agencies that held sway
were mostly foreign owned. Like JWT, D. J. Keymer (now O&M), Grant Advertising (Contract)
& L. A. Stronachs. With a long list of 'Brits' as heads like Fielden & Greg Baton to name a few.
(It is interesting to note that the first few ad agencies were part of a network that was British in
origin - and Madison Avenue had yet to come into its own.)

The first Indian-owned agency was National Advertising, followed by B. Dattaram and Sistas.
Then there was the stalwart national effort of setting up Everest Advertising by Ibrahim Patel
(until then the Advertising Manager of The Times of India). Not to forget commercial artist
Ratan Batra, who set up Ratan Batra Pvt. Ltd and co-founded Communications Artists Guild


                                                15
(CAG). Somewhere along the way a few 'angry young men' split from D.J. Keymer to set up
'Clarion Advertising' with legendary film maker Satyajit Ray as one of its founders. Pleasant
images complimented smart lines. And lip service was paid to research (for good measure). It is
rumored that 'Advertising Age' and 'Campaign' formed the unofficial source of inspiration.
Along with the 'Black Book' of course. Ad Club of Bombay published a newsletter called 'Solus',
which often featured local ads, to celebrate what could be termed as 'creative coincidence'. The
feeling in the advertising community was rosy, bordering on the euphoric. Till suddenly, a
Young Turk shook up a complacent ad world.

The Second Wave Kersey Katrak, a maverick young copywriter who had graduated to client
service, started Mass Communication & Marketing (MCM), from the back of his car (his own
words). Soon, he assembled the best advertising talent in the country and pitched for every big
account. In its decade-old existence, MCM rewrote the rules of 'creativity' in India and inspired a
legion of wannabes. Rediffusion, Enterprise, Trikaya … spun off by Arun Nanda, Mohamed
Khan, and Ravi Gupta who made the 'creative product' the hero of their agency's offering. The
rest as they say is history.

Next came the mid-90. With the Indian economy opening up, the international 'big daddies'
started rolling into India. First to arrive was Saatchi & Saatchi, followed soon by Leo Burnett,
BBDO, McCann Erickson, Y&R, TBWA, et al. During this period, the country was going
through an economic slowdown (effected by global recession), which compounded the problems
for the ad business. Agencies began downsizing or as some (rightly?) called it 'right sizing'.
Ownership of agencies changed hands. Some even shut shop. All in all, the recession lasted
longer than one hoped it should.

The Age of the Creative Product

If there was one agency that emerged unscathed by the slowdown, it was Mumbai headquartered
O&M. Under the leadership of Ranjan Kapur and in close collaboration with Creative Director
Suresh Mullick, O&M decided to make 'creativity' the fulcrum of the Agency's march to a
leadership position. Mallick‟s blue-eyed boy Piyush Pandey who aggressively imputed his
dynamic energy to build the agency‟s creative product inherited the creative mantle. Other



                                                16
agencies that decided to play catch-up included Lintas (now Lowe) spearheaded by National
Creative Director Balki (successor of Kersey Katrak).

Suddenly creativity was taken seriously by the Indian advertising industry. (Incidentally, WPP
owned O&M also successfully proved that creativity could be harnessed with the financial
discipline that is typical of WPP companies.) It was not long before Indian ad persons were
sitting on juries at Cannes and elsewhere. Indian campaigns were bagging 'golds' 'silvers' &
bronzes' the world over. (All but the 'Agency of the Year' which still continues to elude Indian
agencies.) Indian communications professionals have learnt the game. Global recognition is
pouring in. Plagiarization is almost unheard of. Gone are the days when art directors lived by the
'Black Book'.

Advertising in India is a highly competitive business. Today with the increasing consumer
awareness no business can survive for long without advertising. With growing business
competition it has become necessary to ensure right media mix to each target audience. Today,
advertising agencies are precisely taking care of consumer needs and provide creative designs
with concept & ideas.

Advertisers in India reach about 75 per cent of the population through television, and almost the
entire population through radio. Certain televised programs enjoy a viewership of more than 100
million. The Indian viewership exhibits brand name recognition of both foreign and domestic
products and services. With value added information such as television rating points, audience
profiles, and opinion polls available to marketers, the sophistication of advertising in India is at
par with world standards. The world's leading advertising agencies - Ogilvy & Mather, J W
Thompson, BBDO, Young & Rubican, Lintas, McCann Ericsson, Leo Burnett and a host of
others - all have a major presence in the Indian market.

The major Indian advertising media are newspapers, magazines, television and radio, business
publications and billboards.

Advertising on the Internet is the most cost-efficient way of reaching customers all over the
world including ones own country. Indian advertising agencies need to wake up to the challenges
posed by global economic trends and emerging interactive technologies like the Internet, Indian
companies need to pay attention to characteristics of the new economy like open standards,

                                                17
digitalization, and volatility, as Internet-based communication offers "tremendous new
opportunities for Indian companies via media convergence and re-intermediation." This also
requires Indian advertising agencies to pay attention to the importance of online market research,
since new media like the Net are bound to affect people's perceptions of advertising. The
challenge for Indian advertising agencies in the coming years is to be able to target the rural
market as well as the sophisticated urban market that may have Internet access.

Concrete advertising history begins with classified advertising. Advertisements appeared for the
first time in print in Hickey‟s Bengal Gazette, which was India‟s first newspaper, being weekly
in nature.




                                               18
                                 INDUSTRY OVERVIEW

GLOBAL ADVERTISING INDUSTRY

Advertising industry is a rapidly growing industry and determines to a considerable extent the
GDP or the gross domestic product of any country. The advertising industry besides functioning
as an intermediate between the manufacturers and the customers plays an important role in the
economy of the country. This industry necessitates investment for funding different resources.
One cannot measure the degree of development by interpretation of inputs in the economy which
yields some production. In the event when consumption levels far exceed than what is reckoned,
this is not a means of triggering or bringing about transformation in the culture, society or
development in human resources or economy. What the time demands is optimum and efficient
execution of advertising projects by involving appropriate technology along scientific lines.

Advertising industry-facts:

•      Movies, Internet, Print Media, broadcasting constitute 0.99% in approximately 57
countries in terms of economic growth worldwide. This ratio was found to be unaltered in the
years 2005 through 2006.

•      It was observed that expenses incurred on advertising in the European countries exceeded
the expenses incurred by United States of America in the year 2005.

•      Reports also suggest that the trend of growth in the advertising industry may become
sluggish in 2007, the ratio being 5.6%. This ratio may drop to 5.3% in the year 2008.

•      2005 through 2008 will see a majority of the emerging markets whose advertising
markets are likely grow as much as USD19.2 billion. On the other hand, the stake in the global
advertising market may escalate from 7.9%- 10.8% during the same period.

It is apprehended that the advertising industry which contributed 0.96% towards the global GDP
in the year 2005, is anticipated to escalate to 0.99% in 2008.

The Advertising Industry Report suggests that the revenue earned from media as well as
advertising in the United States of America attained the $13.10 billion mark in the year 2006.
Advertising Industry Report analyzes the trends and the market conditions pertaining to the

                                                 19
advertising industry. Advertising industry reports revolving around advertising related activities
like campaigning, electronic and printed displays, billboards, shopping malls, retail market etc,
are taken into consideration while working out reports. The contribution of the advertising
industry to GDP or the gross domestic product is also accounted for. The advertising industry
report also implies that as many as 30,000 plus companies operate in the United States of
America.

INDIAN ADVERTISING INDUSTRY

The Indian advertising industry is talking business today. It has evolved from being a small-scale
business to a full-fledged industry. It has emerged as one of the major industries and tertiary
sectors and has broadened its horizons be it the creative aspect, the capital employed or the
number of personnel involved. Indian advertising industry in very little time has carved a niche
for itself and placed itself on the global map.

Advertising in general means, any openly sponsored offering of goods, services, or ideas through
any medium of public communication. At its inception advertising was merely an
announcement; for example, entrepreneurs in ancient Egypt used criers to announce ship and
cargo arrivals.

The invention of printing, however, may be said to have ushered in modern advertising. After the
influence of salesmanship began to insert itself into public notice in the 18th cent., the present
elaborate form of advertising began to evolve. The advertising agencies, working on a
commission basis, has been chiefly responsible for this evolution. The largest group of
advertisers is the food marketers, followed by marketers of drugs and cosmetics, soaps,
automobiles, tobacco, appliances, and oil products.

The major criticisms of advertising are that it creates false values and impels people to buy
things they neither need nor want and that, in fact, may be actually harmful (such as cigarettes).
In reply, its defenders say that advertising is meant to sell products, not create values; that it can
create a new market for products that fill a genuine, though latent, need; and that it furthers
product improvement through free competition.




                                                  20
Advertising in India is a highly competitive business. Today with the increasing consumer
awareness no business can survive for long without advertising .with growing business
competition it has become necessary to ensure right media mix to each target audience. Today,
advertising agencies are precisely taking care of consumer needs and provide creative designs
with concept & ideas.

Advertisers in India reach about 75 per cent of the population through television, and almost the
entire population through radio. Certain televised programs enjoy a viewership of more than 100
million. The Indian viewership exhibits brand name recognition of both foreign and domestic
products and services.

With value added information such as television rating points, audience profiles, and opinion
polls available to marketers, the sophistication of advertising in India is at par with world
standards. The world's leading advertising agencies - Ogilvy & Mather, J W Thompson, BBDO,
Young & Rubican, Lintas, McCann Ericsson, Leo Burnett and a host of others - all have a major
presence in the Indian market.

The major Indian advertising media are newspapers, magazines, television and radio, business
publications and billboards.

Advertising on the internet is the most cost-efficient way of reaching customers all over the
world including ones own country. Indian advertising agencies need to wake up to the challenges
posed by global economic trends and emerging interactive technologies like the Internet, Indian
companies need to pay attention to characteristics of the new economy like open standards,
digitalization, and volatility, as Internet-based communication offers         "tremendous new
opportunities for Indian companies via media convergence and re-intermediation." This also
requires Indian advertising agencies to pay attention to the importance of online market research,
since new media like the Net are bound to affect people's perceptions of advertising. The
challenge for Indian advertising agencies in the coming years is to be able to target the rural
market as well as the sophisticated urban market that may have Internet access.

Indian advertising industry with an estimated value of es13, 200-crore has made jaws drop and
set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The


                                               21
creative minds that the Indian advertising industry incorporates have come up with some mind-
boggling concepts and work that can be termed as masterpieces in the field of advertising.

Advertising agencies in the country too have taken a leap. They have come a long way from
being small and medium sized industries to becoming well known brands in the business. Mudra,
Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top
agencies of the country.

Indian economy is on a boom and the market is on a continuous trail of expansion. With the
market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking
up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has
lead to a consecutive boom in the advertising industry as well.

The Indian advertising today handles both national and international projects. This is primarily
because of the reason that the industry offers a host of functions to its clients that include
everything from start to finish that include client servicing, media planning, media buying,
creative conceptualization, pre and post campaign analysis, market research, marketing,
branding, and public relation services.

Keeping in mind the current pace at which the Indian advertising industry is moving the industry
is expected to witness a major boom in the times ahead. If the experts are to be believed then the
industry in the coming times will form a major contribution to the GDP. With al this there is
definitely no looking back for the Indian advertising industry that is all set to win accolades from
the world over.




As far as Indian market is concerned:

•      Internet advertising contributes only 1.8 % of the country‟s total advertising spend.

•      Internet medium is set to witness 150 per cent growth in 2008.

For every hundred rupees spent by advertisers, Rs 91 is spent on television and the print media
while the outdoor media accounts for Rs 5. The rest is divided between cinema, radio and the



                                                22
Internet. (the Indian entertainment industry, too is expected to grow by CAGR of 18% to reach
Rs. 1 trillion numbers by 2011).

Though these numbers may sound great (and most of the times theoretical), what is really
important and worth noticing is the rise of ad networks by newspapers/magazines worldwide
(after all they are the ones who have a strong relationship with local advertisers as well as
readers) which are essentially competing with ad networks from Google/Yahoo/MSN and online
companies.

ADVERTISING AGENCIES

       Another external factor involves the agencies that facilitate advertising and provide the
means to advertise. From a situation analysis viewpoint, the advertiser basically needs to know
what kind of facilitating agencies exist and the nature of the services they can provide. From a
planning viewpoint, much local advertising, for example, is done without the services of an
advertising agency or a research supplier. A national advertiser, on the other hand, may have
under contract many different agencies and research suppliers, each serving one or more brands
in a product line made up of several products.

An advertising agency or ad agency is a service business dedicated to creating, planning and
handling advertising (and sometimes other forms of promotion) for its clients. An ad agency is
independent from the client and provides an outside point of view to the effort of selling the
client's products or services. An agency can also handle overall marketing and branding
strategies and sales promotions for its clients.

Typical ad agency clients include businesses and corporations, non-profit organizations and
government agencies. Agencies may be hired to produce an advertising campaign. Many
advertising decisions involve choices among facilitating agency alternatives. What advertising
agency should be chosen? What media should be used? What copy-testing supplier will be best
for our particular situation? Concerning the question for agency selection, for example, Cagley
and Roberts found that the people factor” tends to dominate in agency selection. Characteristics
such as the quality of personnel, reputation, integrity, mutual understanding, interpersonal
compatibility, and synergism were very important.



                                                   23
Types of advertising agencies:

Following are major types of advertising agencies that are currently serving the advertising
industry

Full Service Agencies: A full service ad agency is one that provides a range of marketing
services. A full services agency provides services that are directly related to advertising such as
copywriting, artwork, production of ads, media planning etc. It also provides such services in
respect of pricing, distribution, packaging, product design etc

Modular agencies: A modular agency is a full service agency that sells its services on a piece
meal basis. Thus an advertiser may commission an agency‟s creative department to develop an
ad campaign while obtaining other agency services elsewhere. Or, an advertiser may hire an
agencies media department to plan and execute a program for advertising that another agency has
developed. Fees are charged for actual work undertaken.

In House agencies: Those companies, which prefer to have closer control over advertising, have
their own in-house agency. This type is owned completely by the advertiser. It performs almost
all functions that an outside advertising agency would perform and that‟s why some people refer
to it as full-service advertising department of the advertiser. However, the difference between an
in-house agency and an advertising department is that the in-house agency can undertake to serve
several other clients, if the owner so desires, but an advertising department solely undertakes that
work of its owner and not of outside clients.

Creative Boutiques: These are shop agencies that provides only creative functions and not full-
service. The specialized creative functions include copy writing, artwork and production of ads,
they charge a fee or percentage of full service agencies, and as such most of them convert into a
full service agency or merge with other agencies to provide a wide range of services.

Mega agencies: A significant of 1980‟s is the development of mega agency. Agencies
worldwide merge with each other serve their clients in much better way. It was in 1986, Saachi
& Saachi, a London based agency that started the movement and at present it is the third largest
agency network in the world.



                                                24
The Specialists Agency: There are some agencies who undertake advertising work only in
certain areas. there are agencies that specialize only in financial services or only in publicity or
only in point-of-purchase material etc. for instance Soubhagya advertising agency concentrate on
specialized in financial advertising.

ORGANIZATION CHART OF AN AD AGENCY:

The activities within an advertising agency are typically divided into 4 broad groups: account
management, the creative department, media buying, and research. These divisions are usually
physically separated, although all four areas work closely together to produce an advertising
campaign in its entirety.

 Type: 1                                    Board of Directors



                                            Managing Director




                 Client Services Director                              Creative Director


                   Servicing Group                                     Creative Groups


                                                                          Audio Visual
                       Media

                                                                           Language
                      Research

                                                                             Studio


                                                                          Production



                      Finance /                                   Secretarial / Legal
                      Accounts                                       Personnel
                                                Branches


                            Figure 1: Organisational Structure - type 1


Source: www.scribd.com



                                                   25
   Type: 2
                          Figure 2: Organizational Structure- type 2

Source:www.scribd.com

Advertising companies in the industry:

The contribution of these advertising companies towards the yearly revenue is approximately
$60 billion. Omnicom, WPP, Interpublic are some of the reputed advertising companies
operating in America. A kind of segregation prevails in the advertising market. Trends in the
advertising industry indicate that the as many as 50 companies which are quite reputed hold
around 40% of the market stake. This was an increase by approximately 4.2% as compared to the



                                             26
revenues earned in the year 2005. The yearly revenue earned from every employee in the
advertisement industry amounts to $150,000.

Advertising industry reports indicating risks involved in the advertisement industry:

There are many risks which the advertisement industry is subjected to. The advertisement
industry report throws light on the various types of risks and the statistical data pertaining to the
risks which the advertisement companies have been subjected to at that point of time. Risks can
be of three types, structural risks are the risks which may be encountered from within the
advertisement industry. Growth risk report provides the probabilities of the risks likely to appear
in future. Several factors like prices of articles, regulations of the government rates of interest
and exchange rates may affect the advertising industry to a considerable extent and these factors
constitute the last risk factor called the sensitivity risk.




COMPETITORS PROFILE:

Bartle, Bogle & Hegarty - Famous for Audi, Levi's, Johnnie Walker, British Airways.

British brand-builder Bartle Bogle Hegarty (BBH) is one of the leading advertising agencies in
UK, offering creative development and campaign management services. It focuses on brand
development and strategic positioning for such clients as Britvic, Diageo, and Unilever. It offers
both regional and global capabilities through its offices in London, New York City, Singapore,
SaoPaulo, and Tokyo. BBH's Zag division creates new brands geared towards licensing or third
parties in exchange for a share of the revenue. Founded in 1982 by John Bartle, Nigel Bogle, and
John Hegarty, BBH is 49%-owned by French advertising conglomerate Publicis.


Mc Cann Erickson
McCann Erickson is a global advertising agency network, with offices in over 130 countries and
almost eight decades of multinational experience [citation needed]. McCann is a subsidiary of the
Interpublic Group of Companies, one of the four holding corporations that make up the
advertising industry.
McCann Erickson was named "Global Agency of the Year" by Adweek in 1998, 1999, and 2000.


                                                    27
[1] McCann Erickson is part of McCann Worldgroup, which also includes planning and buying
agency Universal McCann, direct/interactive web marketing agency MRM Worldwide,
experiential marketing agency Momentum Worldwide, healthcare marketing group McCann
Healthcare Worldwide, branding firm FutureBrand, and, public relations and strategic
communications agency Weber Shandwick.
265 talented individuals committed to creating the perfect blend of creativity, effectiveness and
innovation that will help grow the brands. Whether it's a widget, TV ad or documentary film, the
company prides on finding the right cultural connection and advertising solution for the entire
Clients' brands.


JWT.

JWT is the world‟s best-known marketing communications brand. Headquartered in New York,
JWT is a true global network with more than 200 offices in over 85 countries employing nearly
10,000 marketing professionals.

JWT consistently ranks among the top agency networks in the world and continues its dominant
presence in the industry by staying on the leading edge – from producing the first-ever TV
commercial in 1939 to developing award-winning branded content for brands such as Freixenet,
Ford and HSBC.

JWT‟s pioneering spirit enables the agency to forge deep relationships with their clients
including Bayer, Cadbury, Diageo, DTC, Ford, HSBC, J&J, Kellogs, Kimberly-Clark, Kraft,
Nestle, Nokia, Rolex, Schick, Shell, Unilever, Vodafone and many others. JWT‟s parent
company is WPP (NASDAQ: WPPGY).

JWT, the largest advertising agency in the U.S. and the fourth largest in the world, has been
awarded the Grand Prix in the direct category at the Cannes Lions International Advertising
Festival, the most prestigious annual advertising award show. The hallmark award recognizes
JWT India for “Lead India,” a campaign developed for the Times of India.

Ogilvy & Mather -- famous for the Rolls-Royce print ad with the headline "At 60 miles an
hour the loudest noise in this new Rolls-Royce comes from the electric clock", among other ads




                                               28
Founded in 1928, we were the first advertising agency in India. 76 years hence, we continue to
relentlessly pursue our passion for building and nurturing, enduring brands. Over the years we
have helped create some of India's most successful brands like Asian Paints, Cadbury, Fevicol
among them, and in recent times- Perfetti, Hutch, Close Up and many more. A power brand in
itself, Ogilvy & Mather is acknowledged as the leading communications agency in the country
today. Our defining quality is our firm belief in the value of brands and the important role they
play in consumers' lives. The business of building brands is conducted through a proprietary way
of thinking and working; what we call 360 Degree Brand Stewardship.

As pioneers of integrated communication initiatives in the country, we consistently deliver on
our overall promise of 360 Degree Stewardship through our business units that encompass
Ogilvy & Mather Advertising, OgilvyOne, Ogilvy Activation and Ogilvy Public Relations. One
hallmark of Ogilvy's brand-building capability is the balance of global and local brands. Our
local clients keep us in tune with local market nuances, which is integral to the success of our
multinational accounts.

Grey worldwide (India) Pvt Ltd

The agency handles above the line advertising for the Grey group. It has launched Dominos in
India. It has had Ambuja cement, Thums Up, Arrow, Lee and many more brands in its portfolio.
The mission of the agency is to remain the largest global integrated agency to leading brand
ideas.

The list of the top ten advertising agencies is not always stable and remains interchanging. The
additions and deletion of a few of them formulates the list. But each of them are making their
way to becoming the best, and their efforts are making are each making a mark in the Indian
advertising scenario.


FCB-Ulka advertising pvt. Ltd

FCB, being one of the the top three advertising agencies in the USA, ranks number 10 in the
world. FCB-Ulka has made its mark in India as Ulka Advertising. It was founded in 1961. On the
creative front, Ulka is known to stand out. FCB-Ulka has made a smooth transition from a
creative shop to a large mainstream agency. Around the mid-seventies, FCB-Ulka had become

                                               29
the fifth largest agency in India and has sustained this status till date. The efforts of FCB-Ulka
deserve praise. It also gave recognition to those brands that were not in the limelight earlier but
are now completely above other market players. Santoor soap did thorough research and focused
on advertising which gave growing sales figures against stiff competition from Levers and P&G
brands. Not surprisingly, FCB-Ulka is seen as a turnaround specialist - an agency that does brand
building and more.


Lintas India Pvt. Ltd

After the merger of Lintas India Ltd. with Lowe Lintas and Partners group of the UK, it is now
known as Lowe Lintas. India Pvt. Ltd. The turnover of Lintas is Rs. 750 crore. The advertising
agency inculcates advertising, media buying house, direct marketing, public relations, design
consultancy, market research, events, rural communications and interactive communications.
Enterprise Nexus, the agency partner of Lowe in India, continues to be a member and is known
as the „Independent Brands‟ division which is the only specialist in advertising and marketing
communications. Lowe Lintas India is a successful agency which is inclined towards quality
creative advertising and works for the benefit of its clients.

Mudra Communications

A G Krishnamurthy is the Captain who steered his agency from a Rs. 35 lakh company to a Rs. 7
billion corporation in a remarkably short 23 years. But little is known of his considerable
contribution in the agency‟s creative reputation - doubling up as copywriter/art director and quite
often even as creative director. They were a small agency tucked away in Ahmedabad with one
clearly

Articulated goal to be a top 5 agency .there ambition with an almost manic obsession by creating
the best contemporary advertising that had our client and other people taking notice as a young
agency operating out of Ahmadabad our growth was driven helping small business with big
ambition explode their brands to the country at large. Within 9 years they were the largest Indian
advertising agency

In 1991 he created the mudra institute of communication Ahmedabad (MICA) the only
advertising school of it s kind in Asia. In 1995 Mr. Krishnamurthy was nominated as advertising

                                                  30
person of the year. It was started in 1980 mudra rose to become the 3rd largest agency in the
country. In a short span of nine years, today the mudra group is one of the India s leading
marketing communication networks.



COMPANY PROFILE

                               Orchard – Raising Gooseflesh



   Orchard was born in 1999 off the marriage of Leo Burnett India and Dentsu to launch Toyota
   in India. After the success of Qualis, Dentsu saw a huge potential in the market and decided
   to come in on their own. For Orchard there were only two options left. One, sell out to
   Dentsu. Or, go back to being Leo Burnett. But the stake holders of the dream called Orchard
   had their own agenda.

                                       LEO
                                      GROUP

                           MEDIA                   CREATIVE


                             STARCOM                 ORCHARD

                                                       LEO
                                                     BURNETT
   Source: www.orchardindia.com

                                     Figure 3: Leo Group

Orchard by then had grown-up to become a young handsome lad who had a mind of its own.
With the energy of the youth it was rearing to make a mark in the Bangalore market. It had its
own idea of how to make a difference to the business of its clients and how to make a mark
within the industry. The mantra followed, “we are just farmers raising goose flesh”.

                                              31
At the age of 10 Orchard today is a must have business partner, incessantly striving to achieve its
client‟s ambitions, by providing marketing strategies and creative solutions which stand the test
of time.

The fact that each of our clients till date is a case study is a proof of our caliber and potential.
Our people, processes, new age silo-less structures and media independent thinking are the key
to the difference that we bring to our clients‟ businesses.

And all this with our blue blood is a heady mix for an absolute high. Orchard is part of Publicis
Group, the world‟s 4th largest communication group, with presence in 229 cities in 109 countries
on 5 continents. With Orchard and Leo Burnett as the creative outfits, Starcom the media arm
and Arc the 360O initiative.

With a decade of blood and sweat Orchard now has shaped-up four farmhouses in Bangalore,
Mumbai, Delhi & Chennai, with a who‟s who client list that includes Deccan, Subhiksha, Fiat,
JK Tyres, TATA, Essilor, SAB Miller India, Wipro, CavinKare, Lotte, Godrej (Cinthol), INX to
name a few.

Orchard has been an active partner in the successful launch of some of the largest brands in
India, like Toyota (Qualis, Camry, and Corolla), Subhiksha, Air Deccan, Essilor, GoldPlus from
TATA, Hitachi Air Conditioners, and Manhattan (SCB).

With local understanding and insights, Orchard has also gained fame from creating effective
strategies for some struggling regional brands like Coke and Top Ramen from Nissin in South
India, Royal Challenge beer in AP and Knock Out beer in South and West India.

But it‟s not just past glory. In an independent survey conducted by HT Mint with Synnovate,
consumers from across the country voted our Fiat Palio TVC as the best commercial of the year
in 2007. And we respect the verdict far more than that of any jury of peers.

Its first ever TV ad was for Hitachi air conditioners „for those who seek perfection‟ followed by
Toyota „where are you going etc the company started to grow and was faced with similar
challenges a big ad agency faces but orchard never wanted to be one among those instead it
chose to be one of its kind.

Their creativity with the coke brand in Tamil won them South India‟s first EFFIE. Then with
manhattan credit card in 2004 and the DINKY it was rated 13 in the brand equity ad agency.

Then came another breakthrough wherein the agency made the common man of Rk Narayan the
brand ambassador of air deccan and lauches the longest tvc for a minimum budget for a national
campaign.

Then in 2006 subhiksha „morcha against kharcha‟ not only a marketing campaign but also a
campaign against needless spending raised orchard to a different level.

                                                32
Awards:

Cannes bronze-forte, abby gold-deccan superman, abby silver-diet coke, goafest gold –entry into
the limca book of records, fab awards-diet coke,ADFEST 2006, ADFEST 2007, YOUNG
CANNES, ADFEST YOUNG LOTUS

With more than 90 driven individuals, that bring together the wisdom of experience and the
fire power of the youth, our success stories have been acknowledged and rewarded in all forums,
both as creative and marketing breakthroughs.

Orchard gives a lot of opportunities to young trainees by giving them exiting projects,
conducting contests. It‟s a symbiotic kind of relationship between the interns and the company.
One such contest was „FunFingers‟. (Refer annexure 2)

LEO BURNETT

The first years were hard. The Leo Burnett Company's first accounts were "women's products,"
including The Hoover Company, Minnesota Valley Canning Company, and Realsilk Hosiery
Mills. The company billed less than $1 million in 1935-36. Yet Burnett persevered, and carved
out his empire where he was most comfortable. Burnett was a modest man without the ego that
dominated many advertising agency owners. In his obituary in Time, the unnamed author wrote,
"He was, in brief, the antithesis of the popular conception of the sleek, cynical advertising man."
Burnett named himself president and worked day and night, every day except Christmas. He had
no real interests outside of advertising. While Burnett was unassuming and a horrible public
speaker, his ads revolutionized the industry. Stuart Ewan of Time wrote, "Leo Burnett, the jowly
genius of the heartland subconscious, is the man most responsible for the blizzard of visual
imagery that assaults us today."

Burnett's Revolutionary Ads

At the time, print ads focused on words, long explanations of why a consumer should buy the
product. Burnett believed such advertising was misguided. Burnett broke all the rules. For
example, in the mid-1940s, it was basically taboo to depict raw meat in advertising. To send the
message home in a campaign for the American Meat Institute, Burnett and his company put the
raw, red meat against an even redder background. Such radical images caught the consumer's
eye. Still, Burnett's agency only billed about $10 million a year for its first decade of existence.
The world had yet to catch up to Burnett's ideas.


                                                33
It works with Procter & Gamble, Kelloggs, McDonald's, Marlboro, Hallmark, and Heinz.
Famous for creating characters such as Tony the Tiger, Snap Crackle & Pop, the Jolly Green
Giant, the Marlboro Man, and Charlie the Tuna. Leo Burnett is among the world's best-known
agency brands, responsible for creating what has become known as the "Chicago School" of
advertising, which made a virtue of simplicity and clarity, and was most strongly defined by the
use of brand mascots, fictional characters who were used to personify individual brands. Uncle
Ben, the Jolly Green Giant, Tony the Tiger, the Pillsbury Dough-Boy and the Marlboro Man
were all Burnett inventions. The agency capped the 1990s with a show-stopping deal which
combined the forces of three major agency groups. In 1999, Burnett's sealed a deal with D'Arcy
parent MacManus, stealing that business from under Interpublic's nose for $1bn; then sold a 20%
stake in the combined group to Japanese giant Dentsu for $400m to create one of the world's
biggest marketing groups, named Bcom3. The final twist came in 2002 with capture of Bcom3
by Publicis. In 2007, Leo Burnett merged with below-the-line unit Arc Worldwide under a single
management team, although it continues to use both brands. Advertising Age estimated
advertising revenues of $795bn in 2008, making Leo Burnett the #10 agency network
worldwide.




                                              34
PROJECT
PROFILE




   35
PROJECT OVERVIEW:

When a deal is made in an advertising agency, the very first step taken by the account
management division is to research on the product, the target group, level of product awareness
(if the product is already in the market), existing consumer habits etc. The research might totally
depend on the type of the product.

The best part to be in an advertising agency is it doesn‟t restrict itself to a similar type of product
or process. It has to deal with anything and everything capable of being promoted, be it a
product, process, idea, people, etc

The project which I was given dealt with positioning of an Italian bread spread called „Nutella‟.
In order to position this we as an ad agency are supposed to know:

       About the product

       Indian scenario with respect to bread spreads

       Consumption of bread in India, as the bread spread would be closely associated with
       bread

       Existing breakfast habits of Indian kids.

The first three things listed could be found out through a secondary research through various
websites, research articles, blogs etc, but the last part had to undergo a survey or a primary
research so that a clear picture of the current breakfast habits is known.

Hence my project entitled ‘The breakfast habits of children’ which basically involved a
detailed research on the existing habits of kids as the bread spread was intended to be positioned
as a breakfast breadspread for kids.

The marketing research process includes the systematic identification, collection, analysis and
distribution of information for the purpose of knowledge development and decision making. The
reasons and times at which your company or organization might consider performing marketing
research varies, but the general purpose of gaining intelligence for decision making remains
constant throughout.

                                                   36
The project mainly dealt with the breakfast habits of kids, to know whether the Indian market
and Indian mothers are ready for a product like Nutella and whether there is a need in the
existing habits which could be addressed by our product. Hence with this aim in mind the
following objectives and the approach for my project were chalked out.

Breakfast is also known as the brain foods and should never be skipped as it is the most
important meal of the day. A nutritious breakfast refuels the body and replenishes blood sugar
(glucose) thereby releasing the energy required to start the day. The body and brain are low on
fuel after sleep and need recharging after the long fast and hence, in India it‟s the heaviest meal
of the day. Breakfast in India mainly comprises of flat breads made out of wheat in the northern
region and in the southern region, various dishes made out of rice are taken as breakfast.
The changing lifestyle in India has forced its citizens to move towards more processed items than
making breakfast at home which is a laborious and time consuming job. With life becoming
more and more fast paced, hectic, gender equality in terms of working/career, and earning the
living by both the members (wife & Husband), cooking at home is becoming less and less
prevalent. Hence, they are opting for breakfast which is quicker to make yet healthy and tasty to
eat, especially using bread and bread spreads.

Jams and jellies are one such bread spreads that made their entry into the Indian market in the
early 1980‟s and are still popular especially amongst the children, but keeping in mind the health
aspects and the rising concerns towards obesity, a healthier substitute for jams is necessary in the
Indian market and one such product is the Ferrero „NUTELLA‟.

                                           Nutella is the brand name of a hazelnut-based sweet
                                           spread registered by the Italian company Ferrero at the
                                           end of 1963. Nutella spread, in its earliest form, was
                                           created in the 1940s by Mr. Pietro Ferrero, a pastry
                                           maker and founder of the Ferrero Company.

                                           The Nutella story starts in 1946 and a small Italian
                                           town called Alba. At the time, cocoa was rationed and
                                           so, in an attempt to make chocolate more economical,
                                           pastry maker, Pietro Ferrero, mixed cocoa with


                                                 37
hazelnuts and vegetable oils. The result was a solid chocolate cream, which he christened Pasta
Gianduja.

Gianduja is a type of chocolate containing about 50% almond and hazelnut paste that was
developed in Piedmont, Italy after taxes on cocoa beans hindered the diffusion of conventional
                                      chocolate. Pietro Ferrero owned a patisserie in Alba, in the
                                      Langhe district of Piedmont, an area known for the
                                      production of hazelnuts. In 1946 he sold an initial batch of
                                      300 kilograms (660 lb) of "Pasta Gianduja". This was a
                                      solid block, but in 1949 Pietro developed his first spread,
                                      which he first sold in 1951 as "Supercrema".

                                      . The first jar of Nutella left the Ferrero factory in Alba on
                                      April 20, 1964. The product was an instant success, and
                                      remains widely popular. The estimated Italian production
                                      of Nutella averages 179,000 tons per year.




World wide it has gained immense popularity and to celebrate this delicious product „World
Nutella day‟ is celebrated on 5th of February.




                                                 38
This remarkable story began in 1946, in Italy, where, after the war, candy and confections were
in short supply and were purchased mainly for special occasions from the local sweet shop. It
was here in northwestern Italy in the small town of Alba, that master confectioner Pietro Ferrero
developed a system that enabled him to mass-produce true quality confections and offer them to
consumers at reasonable prices.

                         That original Ferrero philosophy was based on a few simple principles:

                                 Use only the highest-quality ingredients

                                 Be unique! Never copy anyone else; then

                                 Manufacture with the most modern technology

                         Add to that, procedures for ensuring consumers taste only the freshest
                         possible product, as well as some very clever marketing, and the Ferrero
story began to unfold.

Ferrero is company founded in 1946 in Alba. Originally from pastry shop, today Ferrero
International is the world’s fourth largest companies in the confectionery Market: 16 plants
& 36 commercial companies all around the world. 20,000 employees. 35,000 crores of turnover
in 2006. A wide & complex portfolio of products, including mainly: chocolate spread, candies,
pralines, bakery, chocolate snack eggs with surprise, cold tea & chilled chocolate products.


Ferrero in Europe & in India

The European confectionery industries are very competitive, heterogeneous and highly
fragmented markets with some major players leading the industry in nearly all countries involved
in this business meeting. About two third of the entire market is satisfied by the top ten western
European confectionary companies (67%).The five largest Western European countries including
the UK, Germany, France, Italy and Spain alone account for 74% of the total Western European

                                                 39
confectionery market leaving only a share of 26% which is spread across the remaining
European countries. Chocolate products clearly dominate the confectionery scene followed by
sugar confectionery, chocolate outlines and chewing gum as shows the table below: -

The first of the Ferrero products was Pasta Gianduja, a chocolate-hazelnut spread that, re-named
Nutella®, was destined to become the #1 selling sweet spread in the world. Since that first
successful venture, Ferrero has gone on to introduce many of the most celebrated confectionery
brands in the world.




Although Pietro Ferrero and his brother Giovanni had laid the groundwork for future company
success, when both died in the early 1950's, it fell to Pietro's son, Michele Ferrero, to continue
the pursuit of their vision, as Ferrero expanded across Europe and then abroad.

Ferrero first moved beyond Italy in 1956, establishing both manufacturing facilities and offices
in Germany. This was followed by new facilities in France in 1958. In the late 60's and early
70's, Michele Ferrero began a strong new phase of international expansion with sales offices and
production facilities outside Europe. Ferrero U.S.A., Inc. was first, then came Ferrero Canada,
Ferrero Australia, Ferrero Ecuador, Ferrero Brazil, Ferrero Japan, and Ferrero Inc. in Puerto
Rico.More recently, offices have been opened in Hungary, Poland and in the Czech Republic.

It was in 1969 that Ferrero U.S.A., Inc. first opened for business in New York City. To
introduce the Ferrero story in the vast and unique U.S. market, Ferrero U.S.A., Inc. chose as its
lead product, not the enormous Nutella® brand or one of the hugely successful Ferrero
chocolates, but rather the smallest Ferrero wonder of all - Tic Tac®! Shortly after its
introduction, the signature Tic Tac® "Tree" display was appearing at U.S. checkouts everywhere
and America was singing along with Ferrero's catchy:


                                               40
"The distinctive Tic Tac® green has been followed by the dazzling gold of Ferrero Rocher®, the
fine chocolate and hazelnut "praline." Is it any surprise that Rocher® is rapidly becoming a
mainstay of increasingly-sophisticated American tastes, and that Ferrero is once again making
quality confections a part of everyday life … for treats as well as gifts.




Following the success of Tic Tac® and Rocher®, consumers are now beginning to enjoy the
distinctive taste of Nutella® spread. As it rapidly gains distribution and awareness across the
U.S., it's destined to become as big a success here as it is in Europe.


FERRERO TODAY

Today, Ferrero remains a true family-run success story. A third generation of Ferrero sons have
joined their father and continue to operate under the same basic principles that gave Ferrero its
start in Alba over 50 years ago.




                                                  41
PRODUCT BASKET:




                  42
With global sales growing in country after country, Ferrero is today one of the largest
confectionery companies in the world. The Ferrero Family continues to delight its global
consumers with a seemingly inexhaustible line of unique, high-quality products, not only in the
spread and candy aisles, but also in the bakery and beverage sections.



                                                43
NUTELLA AS HEALTHY BREAD SPREAD:

Ingredients: The exact recipe is a secret closely guarded by Ferrero. According to the product
label, the main ingredients of Nutella are sugar and modified vegetable oils, followed by
hazelnut, cocoa and skimmed milk, comprising together at most 28% of the ingredients. The
recipe for Nutella varies in different countries. In the case of Italy the formulation uses less sugar
than the product sold in France. Nutella is marketed as "hazelnut cream" in many countries; it
cannot be labeled as a chocolate cream under Italian law, as it does not meet minimum cocoa
concentration criteria.




Nutritional value: Nutella is claimed to be a very healthy chocolate spread with 55% sugar and
35% fat content.




                                                 44
Nutella has low GI (Glycaemic index), no cholesterol, no Trans-fats and contains traces of
vitamin-e Per 15 g of Nutella:

                                Table 1: Nutritional value of Nutella

          NUTRIENTS                                   AMOUNT

          Energy                                      80 kcal

          Carbohydrates                               8.89 g

          Fat content                                 4.7g

          Sugar                                       8.3 g

          Protein                                     1.9g

          Fiber                                       0.40 g

          Sodium                                      6.06mg



Source: www.thedailyplate.com

Although Nutella is marketed in a variety of packages, its typical containers have always been
those made of glass (plastic containers are more common in the USA, and Mexico). Initially, the
most popular glass containers were quite small, in fact just the size of a standard table glass for
drinking, with the result that they can be used as normal table glasses once the product inside has
been consumed. Different forms of these glasses are produced.




                                                 45
Nowadays, Nutella is more frequently marketed in jars of a characteristic, trademarked oval
shape (pictured above). These are often 200 g, 350 g, 400 g or 750 g jars, although in some
countries (such as Italy and France), 3 kg and 5 kg jars are available (most often in special
occasions, such as Christmas). One-serving 30g plastic packages are also available, usually sold
in groups of three. In the United States it is typically sold in 13 oz jars (371 grams). Beside these,
there are also 'limited editions' jars, like in the German market in 2002 to celebrate the
introduction of the euro currency. The jar contained 1.95583 kg which is the exact exchange rate
Deutsche Mark - Euro.

In Australia, Nutella is sold in the standard shape plastic jars with translucent plastic screw top
lids. Single serve catering packs aimed at the school lunch market are also available in retail
stores.




Nutella is also very popular in the rest of Europe, India, Malaysia, Puerto Rico, Australia, New
Zealand, Singapore, Brazil, Trinidad and Tobago, Mexico, the Philippines, Egypt and South
Africa, mostly with children and teenagers. This is less true in the United States and Canada,
where the product was only available as an expensive import until the 2000s. In the United
States, basketball star Kobe Bryant was a former spokesman for Nutella, having grown up in
Italy. Nutella is briefly mentioned in Chloé Doutre-Roussel's "The Chocolate Connoisseur",
which includes an anecdote of her mother flying into Mexico with several jars and smearing it on
her face to convince a Customs Officer that it was a facial mask, and not a banned food product.




                                                 46
In 1999 Nutella was one of the official sponsors of the 1999/2000 UEFA Champions league
season. They were advertised at every game on a bill board.

Nutella as An ideal breakfast spread:

Breakfast literally means 'breaking the fast'. When we wake up in the morning, we will have
lbeen without food for a long period of time and our blood sugar levels are low. It‟s really
important to fuel our bodies with nutritious food to provide the energy needed to start the day.
Research has shown that one in four children don‟t eat breakfast despite the fact that it is
recommended that approximately 20% of the day‟s nutritional requirement is eaten at breakfast
time. Nutella is a low GI food so it releases its energy slowly. Low GI breakfasts have been
shown to help maintain energy levels and reduce the need for snacking later on, so Nutella on
wholegrain toast can be a good option to start the day – and children love the taste. Contrary to
popular belief Nutella is a hazelnut rather than a chocolate spread, containing almost twice the
amount of hazelnuts to cocoa. In fact, in each 15g portion there are two whole hazelnuts, and
Nutella contains no artificial colors, preservatives or hydrogenated fats. Nutella has been proven
to release its energy slowly (Source: Leatherhead Food International) and with no need to use
any additional butter or fat-based spread, it is a good alternative to peanut butter or jam at
breakfast time. A portion of Nutella on a slice of wholegrain toast, with other breakfast
components such as a bowl of unsweetened cereal with milk and a glass of pure fruit juice is a
good option for breakfast. We recommend that nutella is eaten in a 15g portion, and per serving
it contains 80kcals, 4.7g fat (2.6g monounsaturated, 0.6g polyunsaturated, 1.5g saturated) and
8.3g sugar. The Food Standards Agency „Eatwell plate‟, states that both sugar and fat are
acceptable in appropriate quantities as part of a balanced diet. The key is balance and moderation
- some foods like fruit and vegetables in large amounts and others like Nutella, other spreads
such as jam and peanut butter, in small amounts. Problems such as obesity are growing amongst
children, part of which is as a result of a poor diet and a sedentary lifestyle. One child in four
does not eat breakfast, leading to snacking. In fact findings from our breakfast report show that
not eating breakfast appears to be linked to being overweight. Giving your children food they
enjoy for breakfast will ensure that they leave the house having eaten something nutritious,
which is more likely to stop them snacking on unhealthy high calorie foods later in the day.
Nutella is free from artificial colors and preservatives. Nutella does not contain trans fats (trans


                                                47
fatty acids) from hydrogenated fats. Like most processed products containing fats, our products
contain residual traces of trans fatty acids from animal (dairy) fats however they represent a very
small amount <0.06g per 100g for nutella. This is well within the UK dietary reference value
(The Committee of Medical Aspects of Food and Nutrition Policy) of 2% of total energy intake.

SWOT

Strengths:                                        Weaknesses:

       Very popular in the European                       Low awareness except in Europe
       market                                             Not marketed well. The only attempt
       Unique positioning                                 was using Kobe Bryant
       High in quality and taste                          Expensive
       Can be consumed in a variety of                    Very low visibility
       ways
       Manufactured by the # 1 ranked
       company



Opportunities:                                    Threats:

       Internet usage has greatly increased               Competition from peanut butter
       hence Nutella can advertise on net.                Imitation
       Advertising on TV
       Placing it as a trendy European
       spread
       Snack consumption is rising
       Growing Middle class with more
       disposable income




Source: www.geocities.com

                                                48
Target market:

       Children
       Teens- college students: sampling and product demonstrates are the best marketing
       strategies to promote Nutella in India.

Competition: Worldwide there are many natural and man-made bread spreads like honey,
butter, cheese spreads, jams, jellies, fruit butters, fruit spreads, marmalades, mayonnaises,
peanut butter, nut spreads, chocolate spreads, Chocó paste, Chocó dip, Chocó pudding etc.

Globally there is a lot of competition for Nutella like chokella, nugatti, nucita, finetti etc which
are available in different countries. There are similar products like Nutella called tutella, lokella
which are just Chocó paste unlike Nutella which has a nutty base too. In India the major
competitor is the peanut butter with variety of brands like funfoods, prutina, skippy, sundrop,
amul, ruby’s, American garden, swiss miss etc.

Butter and cheese spreads are also very popular manufactured by amul, mother diary, Dina’s etc

In the jams and jellies segment the market leader is kissan and other brands like sil are also
present. Mayonnaises are not very common in India but marmalades are available.

Chocolate pastes, chocolate pudding and dips are also available which are used as bread spreads,
the most common one being the Cadbury choco paste followed by many other brands like hunt’s
Chocó pudding etc.

Though globally there are products similar to Nutella but in India there is no product like it. The
products available are only chocolate pastes, puddings or nutty spreads.

While Nutella has generally become synonymous with hazelnut and chocolate spread worldwide,
similar products with other brand names enjoy wide success in some countries. This includes
"Merenda" in Greece ("merenda" is Italian for a mid-afternoon snack), Nocilla in Spain, Nucita
in South America.

•      Kremino in Bosnia and Herzegovina and Serbia

•      Linolada in Croatia


                                                 49
•      Nocilla in Spain (Nocilla is an originally Spanish product recently).

•      Tulicreme in Portugal

•      Nusskati, Nudossi, Nutoka, Nulacta, Nusspli, Winsenia and Choco Duo in Germany

•      Mars has a brown-and-white swirled hazelnut-chocolate spread, Milky Way

•      Chokella (Nestlé) and Çokokrem (Ülker) in Turkey.

•      Choconutta, Hazella spread and a wide variety of Store Brand hazelnut spreads are
available in Canada.

•      Plasmon's Ergo Spalma and Star's Ciao Crem have been the most important alternative
products to Nutella in Italy though nowadays they are no longer on sale. Ergo Spalma had quite a
lot more chocolate than Nutella in it. There was another competitor, less famous, called Nutty
Bicolore (Bicolore means "two colours") which was a jar of a Nutella-like cream combined with
a beige vanilla cream. During the late '80s, the Nutella brand copied this particular recipe
creating Nutella Bicolore, which however did not encounter great success.

Competitive advantage: Nutella is positioned in a unique way altogether, it‟s a bread spread
which is tasty yet healthy unlike peanut butter which is not that tasty but immensely healthy.
Jams, jellies on the other hand which are tasty but not healthy. So Nutella is a perfect balance of
taste and health. Its texture and its nutritional value make it the right bread spread.




                                                  50
 Table 2: THE COMPARISION BETWEEN NUTELLA AND SOME OF ITS MAJOR COMPETITORS IN
                     TERMS OF THE NUTRIENTS PRESENT (per 100g)

Nutritional         Nutella         Peanut           Jams and        Butter      Cheese
                                    butter           jellies
Elements

Energy              527kcal         585kcal          268cal          717cal      440cal

Carbohydrates       54g             20g              69.9g           -           2.68g

Fat                 29.7g           50g              Traces          81.0g       4.51g

Protein             7g              25g              0.15g           0.88g       12.49g

Sugar               54.0g           9.2g             51.2g           -           -

Fiber               2.0g            6.0g             1.05g           -           -

Calcium             130mg           43mg             Traces          5g          60mg

Iron                2.8mg           1.87mg           -               -           0.14mg

Sodium              -               17mg             -               575mg       404.8mg

Magnesium           75mg            154mg            -               -           5.26mg

Potassium           -               649mg            -               -           81.3mg

Phosphorus          -               358mg            -               -           131.8mg

Source: www.calorie-counter.net

The above table shows that peanut butter is more nutritious but it‟s not as tasty as Nutella. The
other competitors are good in terms of energy, vitamins and minerals but they provide less of
carbohydrate which is the most essential element in any breakfast. Hence Nutella is a good blend
of taste and nutrients, but it would have been the best if it had more vitamin and mineral content.




                                                51
Scope of Nutella in India: India is witnessing a shift from traditional food eating habits to a
more contemporary and westernized eating styles and hence fast food chains, cornflakes etc are
gaining more and more popularity.

Bread is still seen as food item taken only during illness but it is more accepted as a breakfast
item in urban India. The per capita consumption of India is just 1.75 kg to 2.0 kg compared to
Europe whose per capita consumption is around 200kg; even our neighbor Sri Lanka‟s per capita
consumption is around 23kg!

The total market size of bread industry is approximately 15 billion standard loaves (SL) or 1.5
million tonnes. The current growth is around 5 - 6 percent p.a. and is expected to remain in the
same level in the medium term.

Around 36 lakh loaves of bread are produced daily in India, in which only 1/3rd of it is from the
organized sector.




          Table 3: The percentage of bread consumed in the four regions of India

             Regions                  Consumption of bread in
                                      percentage

             North                    27

             South                    32

             East                     18

             West                     23

Source: www.fnbnews.com

The above table shows that bread consumption is more in the southern region than any other
region in India.

India is yet to completely accept processed foods in its daily breakfast though processed foods
like jams, jellies have gained a lot of popularity but other bread spreads like the peanut butter,

                                               52
cheese spreads etc are yet to establish themselves. According to a recent study which says butter,
processed cheese, peanut butter etc have a penetration level of just 9% in urban areas and about
1.7% in rural India. But the study also added that by 2010, 200 million consumers will shift to
processed foods, which is positive sign for brands like Nutella.

India‟s food industry is generating US$6.8 billion in annual revenues, with that number expected
to double in the next five years (Ismail 2006). Additionally, India‟s predominantly young
population of 516 million between the ages of 20 and 55 is expected to increase to 800 million
within the next 40 years. If India‟s economy continues to grow at a reasonable rate, it can be
expected that the size of the middle class will also increase and their disposable income and their
interest in maintaining or establishing a healthy diet will result in increased functional food
consumption, overall the growth prospects are expected to be very good in India.

INDIAN BREAKFAST

There is great variety in Indian cuisine, and popular breakfast foods vary from region to region.
Eggs scrambled with spices, potatoes, and onions are popular in the morning, as are fresh fruits
and yogurt. The Hindi breakfast dish khichri is made with a mixture of rice, lentils, and spices.
During their occupation of India, the English adopted this dish for their own, by adding smoked
haddock, cream, and eggs, and renaming it, according to their phonetic translation of the
original, kedgeree.

Although tea is drunk more often on the whole, in the south of India, coffee is the caffeine
provider of choice. Many people buy the beans raw and roast them at home. Popular foods
include appam (thin, crepe-like rice pancakes that are often filled with spiced meat or potatoes
and vegetables), idi-appam (rice noodles eaten with either sweet coconut milk or a meat curry),
idli (small steamed cakes made with a lightly fermented batter of rice and split peas) and puttu
(crushed rice and coconut pressed in alternating layers into a bamboo mold, then steamed and
served with bananas and milk).

Far to the north, in Kashmir, the day starts particularly early, so the first meal is usually a quick
cup of tea with some bread. Kashmiris drink a green tea, which they make in a samovar. The tea
may be drunk plain, but if possible, sugar, cardamom and ground almonds are added to make a

                                                 53
concoction known as kahva. Many of the breads that are eaten in Kashmir are, like the samovar
for the tea, more related to Middle Eastern cuisines than Indian. They are leavened wheat breads,
among them are the slightly sweet bakirkhani and the sesame-sprinkled tsachvaru.

Research shows that children who eat a good breakfast in the mornings have higher levels of
concentration and are able to focus better than children who don't eat a hearty enough breakfast.
Children tend to give the lowest priority to breakfast. The reason for this is they do not generally
factor in time spent consuming breakfast in the mornings. If you make sure your children sit
down for breakfast at least fifteen minutes before they need to leave to catch the school bus,
chances are they will be able to eat a hearty meal.

Children who wake up at the same time every morning, and eat a healthy breakfast, are more
likely to be more physically active, have better reflexes, and have a sharper memory than those
who don't have breakfast

Eating a heavy breakfast increases your metabolism, so you will burn calories at a faster rate.

It also reduces fatigue and gives you renewed energy - which is badly needed by children, to help
them cope with school, homework and play, and by parents, to help them handle their busy
lifestyle. Breakfast boosts immunity and improves your long-term health.

In addition, breakfast helps regulate your bowels, which not only improves your overall health,
but it also gives you a flatter stomach! Whereas breakfast-skippers tend to develop deficiencies
of protein, calcium and other micronutrients. Around 51.6 per cent parents said there was no time
for breakfast because of the pressures of being late for school or work or because of sleeping in.
Approximately 45% children in the 8-12 age group and 54% of 13 to 15-year-olds were found to
have been having only a glass of milk (plain) or a milk food drink in the morning, which is rich
in calcium and fats, but is grossly inadequate as it is lacking in essential micronutrients. The
habit of 'drinking' breakfast instead of eating' is another major problem. Many mothers serve
their children a glass of sweetened milk or flavored milk, before packing the off to school. What
kids really need to eat is solid food - rich in good quality protein, complex carbohydrates,
enriching vitamins and minerals.




                                                 54
OBJECTIVE




    55
OBJECTIVES:

The academic objective of the project is to further my understanding of marketing research by
working hand in hand with the agency on Nutella, a breakfast spread.

The academic objective of the project is to further my understanding of marketing research over
a period of 60 daysby working hand in hand with the agency on Nutella, a breakfast spread.

The primary objective of the project is to find the best fit for Nutella

The sub objectives are:

       To understand the breakfast habits of children

       To identify nutritional values which might be absent in the current breakfast habits with

       the mothers

       To understand the concerns of the mothers with regards to existing breakfast habits

       To identify the need gap

       To identify products and brands that attempt to fill the gap

       To identify the properties of brand Nutella that best meet the need




                                                56
METHODOLOGY




     57
Identifying the Problem

The problem will have been recognized by at least one level of management, and internal
discussions will have taken place. Sometimes, further definition of the issue or problem is
needed, and for that there are several tools you can use.

Indian breakfasts are totally different from that of the European. To know whether Nutella
succeed in Indian market as it has in the western world is something which is unpredictable and
hence the project to know the best fit for Nutella in India by understanding the consumer
perception

External secondary research is typically far more available, especially since the Internet age.
Most external secondary information is produced via research conducted for other purposes to
understand the existing Indian scenario with respect to breakfast and bread spreads

Marketing Research Approach

Once the problem is better defined, we can move into developing marketing research approach,
which will generally be around a defined set of objectives.

Developing our approach consisted of my market research skills, establishing a budget,
understanding our environment and its influencing factors etc

As the objective of the project indicated, the project dealt with positioning of an Italian bread
spread called „ nutella‟. In order to advertise it and to position it we need to know the current
breakfast habits , the current market of existing bread spreads, the market potential and the
acceptance level of Indian upper middle class families. Hence the project would definitely be
research based.


Marketing Research Design
The research would definitely be a descriptive one. As a descriptive research deals with
everything that can be counted and studied and moreover our research has an impact to the lives
of the people around us hence the project was truly descriptive in nature. It basically describes
the data and characteristics about the population or the target being studied. Descriptive research

                                                 58
answers the questions who, what, where, when and how of a particular target, market, product
etc.




                                               RESEARCH

                       SECONDARY                                       PRIMARY
                        RESEARCH                                       RESEARCH


                                              EXISTING
       ABOUT THE        BREAD                BREAKFAST      QUALITATIVE        QUANTITAVE
        PRODUCT         SPREADS
                                              HABITS



                                                                INTERVIEWS           SURVEY




                             Figure 4: Marketing Research Design


Marketing research design includes secondary information analysis, qualitative research,
methodology selection, question measurement & scale selection, questionnaire design, sample
design & size and determining data analysis to be used
By keeping the objectives in mind a first questionnaire consisting of dichotomous i.e. YES/NO
and open ended questions was made. The questionnaire consisted of 16 questions. The
questionnaire incorporated the perception of mothers regarding breakfast, food habits of kids,
specific demands of the kids, the reasons behind those demands, challenges faced by the
mothers, perception on bread and bread spreads, nutritional gaps if any and opinion on Nutella.
(Refer annexure 1 for the questionnaires).


                                                59
.Methodology: The research methodology can be briefly listed as below:

       Collection of secondary syndicated data from external sources including websites, blogs,
       articles, WHO reports, research reports etc, and through limited interactions with the
       target directed at designing the questionnaire.
       Designing of an effective questionnaire based on the secondary data
       Collection of primary data through sample surveys which will involve implementation of
       the questionnaire and initiating product testing in, if the program so demands
       Processing data so gathered into meaningful information and analyzing the information to
       collate key findings
       Using the findings as aids to define the market and identify marketing problems and
       opportunities for the brand.

Target: The targets for the product are kids. But for the mothers of those kids form the target for
communication. The target had to urban upper middle to upper class mothers with kids of 5 years
to 14 years of age.

Sample size: The sample size for the first survey to get an insight was 15.

               For the sequel it was 50.

The research was mainly qualitative as it was to know the existing habits and perceptions with
respect to breakfast.

Sampling: Majority of the sampling was random but snowball sampling was used as our target
for communication was urban upper middle class and upper class mothers.

Marketing Research Data Collection

Marketing research data collection (often called survey fielding) is the point at which the
finalized questionnaire (survey instrument) is used in gathering information among the chosen
sample segments. There are a variety of data collection methodologies to consider




                                                60
Data collection for the first survey was face to face in depth interviews which were supposed to
be recorded on a Dictaphone.

Marketing research data collection typically begins with field testing the final questionnaire with
a small portion of the respondent sample to make sure it is gathering information correctly. This
questionnaire was made to understand the perception in a generalized way by carrying on in
depth face to face interviews with the mothers.

For the sequel it was just a face to face survey wherein the respondents filled up the
questionnaires.

The other method which was also followed was flash cards were made for each question and face
to face interactions were carried on.

Telephonic interviews were also carried out for the target that was out of reach.


Survey Data Analysis:
As the project was a descriptive the best tools to analyze the data collected were frequencies and
percentages.

The frequencies were calculated using tally marks and the ranks were allotted wherever required.

Limitations of the research:
The sampling being random has its own disadvantage as we are not sure whether we have got the
right information. There is a lot of scope for error.

It was very tough to get appointment from working ladies and convince them to answer the
questions as the questionnaire was a bit lengthy.

The mothers tend to get influenced because of the interview and might try to portray their kid as
the best and hence the data tends to become biased.

Restricting the research to only two cities might not give a overall picture of the current breakfast
habits in children.




                                                  61
OBSERVATIONS




     62
The first part of the questionnaire dealt with perception of mothers on the importance of
breakfast. All the mothers were aware that breakfast is important not only for kids but for adults
too. Only two of amongst them knew that it was the most important meal of the day while the
rest said its very important as the literal meaning goes „breaking the fast‟. Every mother said that
breakfast is very important as it is given after a gap of 8 hours. Two of the mothers its good
because it‟s a different meal altogether compared to lunch and dinner as it involves different
kinds of cereals etc which provide different type of nutrients.

The positives of breakfast listed by mothers are as follows:

        It‟s healthy

        Provides energy for the rest of the day

        Keeps the kid active and fresh

        Increases concentration

        Increases alertness and resistance

        Provides nourishment

The mothers added that considering the kids go to school and the amount of physical activity
they get involved in. a good breakfast is of utmost importance. It also kick-starts the day and the
body metabolism and hence to keep the body fit its very necessary. Some mothers are concerned
that the kid doesn‟t finish his/her Tiffin hence giving breakfast is necessary for her mental
satisfaction as well.

        On probing further some myths regarding breakfast surfaced up:

        Heavy breakfast induces sleep and makes the kid lazy

        A glass of milk is enough for adults

        Heavy breakfast doesn‟t get digested

        Fat is not at all good for breakfast



                                                  63
       Breakfast should be light like a toast

       A glass of milk is enough during holidays

Regarding the regularity in breakfast, about 5 out of 16 kids skip their breakfast and the average
being twice in a week.

The current breakfast habits of the 16 kids according to their mothers are as follows:

       A glass of milk
       Cereals like kelloggs etc
       Indian traditional breakfast like idli, dosa, paratha, upma, rice items, sabzi etc
       Fruits
       Bread toast, sandwiches etc
       Eggs (boiled ,omelette, or scrambled)
       Artificial or doctor prescribed supplements like pediasure etc
       Health drinks
       Chapatti and jam
       Noodles

The breakfast timings range from 7 to 9 in the morning, Though majority of the kids have to
around 8 am. All the kids have it at home except one who just drinks milk and goes to school and
haves her breakfast in the first break at 11 am.

       Thirteen out of sixteen kids have specific demands in breakfast. Their demands are as
       follows:
       Chocolate flavored drink
       Chapatti and jam
       Kellogg‟s
       Bread toast with different toppings
       Rice items
       Kurkure
       Fast food like burgers, noodles, French fries, pizza etc
       Bread and butter


                                                   64
       Juices and fruits

The reasons behind these demands according to mothers are as follows:

       Taste
       Ease of consumption
       Peer pressure
       Tv commercials
       Bored of repetitive food
       Attractive food

Around 9 mother s face challenges in ensuring a healthy breakfast their kids. The challenges they
face are:

       Convincing the kid to have breakfast
       Do not know what a healthy breakfast should comprise of
       Variation in the menu every morning

Around 5 mothers face difficulty in preparing a healthy diet:

       Making good presentable food
       Making a healthy complete diet

When asked about their opinion on bread as an ideal breakfast, 8 out of 16 mothers were positive
saying its interesting when paired up with spreads, eggs or vegetables, cerals, fruits, milk,and
kids like it. Moreover its easy to make and consume.

The above mothers were positive but with a few conditions:

       Only brown bread
       Alternate white and brown bread
       Not daily
       Can be alternated with traditional food

The mothers who did not opt for bread opined that bread consists of:

       Only Maida

                                                 65
        Its unhealthy
        Leads to constipation and stomach ache
        Low in nutrition
        It doesn‟t suffice

                       Table 4: Comparison between traditional food and bread

TRADITIONAL FOOD                                 BREAD

High on nutrition                                Low on nutrition (only Maida)

Easily digestible                                Dry and hence hard to digest

Laborious to prepare                             Easy to prepare

Sometimes messy to eat                           Easy to eat

Looks plain                                      Looks attractive

Its more full                                    Doesn‟t suffice

Its fresh                                        Not fresh

It takes time to eat                             Faster to eat

Sometimes boring                                 Interesting and tasty




When asked about nutritional gap in the kids, eight mothers perceive a gap in their kids‟
nutritional intake and three mothers are unaware about the gap. The rest five don‟t perceive a gap
as they think the kids‟ breakfast is complete.




                                                  66
             Table 5: The supplements provided to bridge the corresponding gaps.

TYPE OF GAPS                                       SUPPLEMENTS GIVEN

Calcium, as the kid doesn’t take milk              Kheer, Kellogg‟s, almonds, health drink or tea

The kid hates vegetables and milk                  Vita bix, milk sahkes, boiled eggs

Never completes his food                           A to Z Multivitamins, Mekalvit for calcium,
                                                   Tonoferol for iron

The kids avoids dal, pulses and greens             Stuffed paratha, health drink, skimmed milk

The kids don’t like milk, and no dish is           Health drink, vegetable fry, a mixture of all
complete in itself                                 pulses, ice cream

Likes only fast food, doesn’t like vegetables ,    Dinoshake, stuffed chapattis
fruits

Breakfast is never completed                       Health drink, kelloggs, boiled eggs

The kid never finishes the breakfast               Chivda, biscuits, kelloggs, fruits




When asked as their opinion on Nutella as a part of their kids‟ breakfast, a product high on
carbohydrates, low on fat, provides consistent energy all day long and is rich in chocolate and
hazelnut.

About 11 mothers‟ were positive about it as its rich in nutrients. As the spread is Chocó based
and they think kids would definitely like it.




                                                  67
ANALYSIS




   68
ANALYSIS

From the first survey the project got a lot of insights as to how to progress and to know the
intensity of the observations. Based on the first survey the sequel was planned.


                          IMPORTANCE OF BREAKFAST


                                                        36%



                                                                               Most Important
               64%
                                                                               Very Important




All the mothers consider breakfast as important for their kids. The perception they have on it is
that it‟s a daily meal and hence it‟s important. Though all of them know it‟s important, only 36
% of the mothers said it‟s the most important meal of the day considering it as the brain food
while the rest had a different perception about breakfast saying it provided energy for the whole
day.




                                                69
                                 POSITIVES OF BREAKFAST
                                                                 Energy
                                      2%
                                6%                               Concentration
        4%               8%
                                                     44%
             8%                                                  Alertness


             10%                                                 Energy and concentration

                                                                 Energy and alertness
                                  16%

                                                                 Concentration, Energy and
                  2%
                                                                 Alertness
                                                                 Energy, Concentration and
                                                                 Alertness


44 % of the mothers said it provides energy but when the positives of breakfast were ranked,
52% of the mothers went with energy as their first option followed by concentration and
alertness.


                             OVERALL POSITIVES OF BREAKFAST
                                           1%

                                18%



                                                           52%               Energy
                                                                             Concentration
                       29%
                                                                             Alertness
                                                                             Healthy




Very few are aware that breakfast provides energy, increases concentration etc. Mothers just
believe that giving breakfast is healthy.

                                                70
The mothers should be made aware that the breakfast is the most important meal and 25 to 30 %
of the daily nutrient requirement should be through breakfast otherwise called as the brain food.




                           REGULARITY IN BREAKFAST


                     26%



                                                                    Kids taking regular breakfast
                                               74%                  Kids who skip breakfast




74% of the kids take breakfast regularly and around 26% skip there breakfast at least twice a
week. Even amongst the kids who take breakfast regularly the breakfast is not complete.
Majority of the mothers whose kids skip breakfast are of the opinion that breakfast is
compensated through other meals in the later part of the day.




                                                71
                 NUMBER OF TIMES KIDS SKIP BREAKFAST IN
                               A WEEK

                                      8%   7%

                                                       23%
                      31%                                                          4 times a week
                                                                                   Thrice a week
                                                                                   Twice a week
                                                                                   Once a week
                                            31%
                                                                                   Always




The mothers should be made aware that skipping breakfast not only affects the overall health but
also the brain and invites obesity.


                            REASON BEHIND IRREGULARITY IN
                                     BREAKFAST
                                                                Lack of time only

                             15%                                Dislike for food
                 8%                             38%

            8%                                                  Lack of appetite

                 8%                                             Lack of time and appetitte
                                   23%
                                                                Lack of time, dislike for food
                                                                and lack of appetite
                                                                Lack of time and dislike for the
                                                                food



Time is the major reason behind skipping breakfast which (38%) followed by dislike for food
(23%) and lack of appetite (8%). Majority of the children skip breakfast because they hardly get


                                                72
time to get ready and have the breakfast hence an easy to eat yet healthy and tasty breakfast
should be provided so that they manage to get the nutrients required in the little time available.


                   KIDS HAVING SPECIFIC DEMANDS FOR
                              BREAKFAST


                     34%



                                                                             Demanding kids
                                                          66%
                                                                             Non demanding kids




It‟s difficult to have breakfast just after getting up and if it‟s not appealing to their palate then
they start demanding. Around 66% of the kids have specific demands; major factor being taste of
the food (25%) followed by ease of consumption (12%) and TV commercials (7%). Children
have their own mood to have certain things in the morning.




                                                 73
Table 6: Rankings of the demands

DEMANDS                                        RANK

Traditional food                               1

Cereals                                        2

Juices                                         3

Fruits & Vegetables                            4

Bread                                          5

Milk                                           6

Health drink                                   7

Fast food                                      8




Traditional food is still popular amongst kids especially in Bangalore and Mysore. Around 24%
of mothers have given the first rank to traditional Indian cuisine followed by cereals (18% have
given it rank 2), juices (12%, rank 3), fruits (16%), bread(rank 5). Milk, health drink, and fast
food.




                                               74
                       NUMBER OF MOTHERS FACING A
                      CHALLENGE TO ENSURE A HEALTHY
                         BREAKFAST FOR THEIR KIDS


                    38%
                                                                   Mothers facing challenge
                                                         62%
                                                                   Mothers not facing any
                                                                   challenge




About 62% of the mother‟s face challenges in which 36% face difficulty in preparing a healthy
complete breakfast, 16% don‟t know what a healthy breakfast should comprise of.

The change in the lifestyle of Indian citizens wherein both the wife and the husband work
outside, it‟s difficult for the mother to manage and hence she faces a lot of challenges while
ensuring a healthy diet or breakfast for the kid.




                                                    75
            TYPE OF CHALLENGES FACED BY MOTHERS

                             2%                                Challenge in preparing a healthy
                                                               breakfast
                        7%
            20%                                                Challenge in being unaware of
                                                               what a healthy breakfast should
                                                               comprise of
                                           71%                 Challenge inconvincing the kid



                                                               Challenge in varying the menu
                                                               daily




Majority(71%) of mothers face challenge in preparing a healthy breakfast for their kids followed
by the challenge in being unaware of what a healthy breakfast should comprise of. 7% feel the
challenge is to convince the kid to eat and bringing variations in the menu is another challenge
faced by 2% of the mothers.

They face the above challenge because they are unaware as to what a healthy diet should
comprise of. They still feel if the kid doesn‟t have a traditional meal like idli or chapatti his/her
breakfast is not complete and making a traditional meal is laborious.

They should be exposed to healthier options like brown bread, cereals, juices etc. they should be
made aware what all nutrients a kid requires in the morning which may or may not b present in
the traditional food.




                                                 76
                PERCENTAGE OF MOTHERS PERCEIVING A
                    GAP IN THEIR KIDS BREAKFAST


                      24%


                                                     52%           Mothers perceiving a gap
                                                                   Mothers not perceiving a gap
                24%
                                                                   Mothers unaware of the gap




Every food doesn‟t have all the nutrients required by the kid. There is no ideal breakfast as such.
And because of time constraint or distaste the kids often tend to skip their breakfast or have it
incompletely. The amount of nutrients which are required by a growing kid may or may not be
present in the food he/she takes hence there might be a gap which the mothers may or not realize
because the kid may look healthy from outside but some may have a vague idea about his/her
keeping in mind his/her eating habits. 52% of the mothers perceive a gap in their kid, 24 %don‟t
there is any and another 24% don‟t know whether there is a gap.




                                                77
                 TYPES OF GAPS PERCEIVED BY MOTHERS
                                                                   Protein gap

                                                                   Energy gap

                                2%                                 Vitamin gap
                       15%
                                           24%                     Mineral gap
            7%

                                                      5%           High calorie intake
         13%
                                                 9%
                                                                   High fast food intake
                      9%             13%
                                                                   Kids who don’t eat at all
           3%

                                                                   Kids who don’t like the food served

                                                                   Kids having poor appetite

                                                                   Mothers who are unaware of the
                                                                   type of the gap




24% mothers think there is an energy gap because the kid hardly eats food which is given at
home and comes totally tired from school. 13% think there is high calorie intake if the kid
demands more of noodles pizzas etc. hence the mother knows that no quality food is consumed
by the kid. A mother might think that the kid might become obese hence they feel there is a gap.
In the same way 13% of the mothers complain that the kid has an aversion towards home made
food. They are more attracted towards the colorful and tasty stuff which is not homemade. Peer
pressure might be another factor because fast food and modern food always is perceived as cool
amongst the kids who are in the early adolescent stage. About 5% mothers perceive a gap of
vitamins thinking that their kids don‟t eat fruits and vegetables. 9% of the mothers think there is
lack of minerals in their kid‟s body considering if the kid hates milk or doesn‟t take milk. 7% of
the mothers complain of poor appetite which might be because of boring food. Just 2% of the
mothers think there is a gap of protein because if the kid is growing normally every mother


                                                 78
might just think he/she is getting enough proteins or some mothers might not be aware of the
functions of proteins or they might just not know how to provide proteins.

The mothers should know what nutrients are required at what stage or she should be made aware
of it because around 15% of the mothers though sense a gap, don‟t know what kind of gap it is.

They should take appropriate steps to bridge the gap by first identifying it if they can or else she
should at least see that the kids take a balanced diet.


                TYPES OF SUPPLEMENTS PROVIDED BY
                MOTHERS TO BRIDGE THE EXISTING GAP


                                                                 Cereals

                                                                 Doctor prescibed multivitamins
                                                                 and others
        2%            17%              19%
                                                                 Home made supplements
   4%
    3%                                             10%           Flavored milk
         5%

                                                                 Artificial supplements
                               40%
                                                                 Dry fruits

                                                                 Consult elders and do the needful

                                                                 Do not do anything to bridge the
                                                                 gap




Around 19% of the mothers provide cereals, 40% of the mothers still follow homemade
substitutes, and 10% give doctor prescribed multivitamins and other tonics. 5% give flavored
milk, 3% artificial supplements like Calcium Sandoz thinking it will provide for the calcium. 4%
give dry fruits and 17% of the mothers don‟t do anything.

                                                  79
The mothers should provide something which is tasty, healthy and which the child is fond of so
that he/ she have it without any resistance. The mothers should provide something which is rich
in variety of nutrients and low on calories so that it deals with the demands, gaps and
apprehensions of the mothers.


                    FREQUENCY OF CONSUMPTION OF BREAD FOR
                                  BREAKFAST


                                24%     6%
                                                                             Daily use
                                                                             Occasional use
                                              70%
                                                                             Never




In India there are two schools of thought with respect to bread, one group considers it as totally
unhealthy and have a perception that bread is consumed only during illness. The other thought
with respect to brown bread is it‟s healthy, easy to consume and prepare.


                    REASON BEHIND DAILY CONSUMPTION OF BREAD FOR
                                      BREAKFAST



                        40%
                                                                   Easy to prepare and
                                                    60%            consume
                                                                   Tasty




Majority of the households still opt for Indian traditional cuisine rather than bread, only 6% of
mothers opted for daily use because 40% say its tasty, 60% say it‟s easy to prepare and consume,




                                               80
bread when paired up with bread spread or some toppings makes it very interesting as it looks
very good and taste well too.




                   FREQUENCY OF BREAD CONSUMPTION
                       BY THE OCCASIONAL USERS

                                    9%
                                               31%
                                                                          Once a week
                                                                          Twice a week
                              60%
                                                                          Thrice a week




Whereas 70% opted for occasional use, in which 60% opted for bread twice a week, 31% of
them once a week and 9% of them thrice a week. The mothers here think that there should be a
balance between traditional food and bread. For a change and to break the monotony they would
like to give bread but not daily.


                      REASONS BEHIND NOT OPTING FOR
                               BREAD AT ALL

                                         25%
                     50%                                        Not wholesome
                                                                Not healthy
                                           25%
                                                                Doesn’t suffice as a meal




24% would never want to consider it as an option for breakfast because 50% of them think it
doesn‟t suffice as a meal, 25% don‟t consider bread as wholesome, and another 25% think it‟s

                                               81
not healthy. White bread is more popular in India more than brown and hence many still have
this thinking that it‟s just Maida and it‟s very low in nutrients and hence wouldn‟t like to
consider it daily thinking it will make the kids obese, lazy, and might lead to constipation.

They should be made aware that brown bread is a healthy option and can be made interesting by
pairing it with something healthier. This not only will attract the kid it will also take care of the
nutrients if the right topping is given because many of them are not aware as to what a healthy
diet can be and how bread can be made healthy.

Almost all of them are aware of bread spreads but only 54% knew the meaning of the word bread
spread otherwise they are aware of it. When asked they replied it‟s something to be paired up
with bread usually sweet colorful and tasty. Very few said it‟s healthy because they are of the
opinion that bread spreads are high on calories and low on nutrition. It‟s just tasty and kids like
it. Jams are mostly associated with bread spreads followed by butter and cheese. Jams made their
entry in the early 80s in India and slowly established themselves because of the taste and the
colorful look which is totally appealing to the kids.


             PERCENTAGE OF MOTHERS WHO WOULD
              LIKE TO CONSIDER BREAD SPREADS FOR
                      THEIR KIDS BREAKFAST

                 30%

                                                                 Mothers who would like to
                                                                 consider bread spreads
                                              70%                Mothers who wouldn’t like to
                                                                 consider bread spreads




70% of the mothers would like to consider bread spreads because 48% of them say it‟s tasty and
kids like it. 33% say it‟s easy to prepare and consume and around 19% say it‟s healthy. The taste


                                                 82
is the winning factor in bread spreads with respect to jam only because the mothers have only on
the taste factor more than the health factor.


                    REASONS BEHIND OPTING FOR BREAD
                    SPREADS FOR THEIR KIDS BREAKFAST


                    33%
                                                     48%
                                                                  Tasty
                                                                  Healthy
                          19%                                     Easy to prepare nd consume




               REASONS BEHIND NOT OPTING FOR BREAD
                      SPREADS IN BREAKFAST
                                                               Not healthy

                                8%                             Leads to obesity
                     8%
               9%                               46%
                                                               High on calories


                  25%                                          Makes the kid lazy and lethargic
                                     4%
                                                               Kids don’t like bread spreads

                                                               Lots of preservativea and
                                                               artificial color




                                                83
30% of the mothers would not like to consider bread spreads because 46% of them opined that
they are not healthy, 25% think they are high on calories, 9% of them it makes the kid lazy
another 8% think it has lot of preservatives and artificial stuff, only 4% think it leads obesity and
8% of the kids don‟t like bread spreads. As mentioned above jams are the only bread spreads
which they think of when asked about bread spreads hence they think that its high on sugars
hence will lead to obesity. They are unaware that there are healthy bread spreads available in the
market. They don‟t even associate honey with bread spreads. They should be made aware that
healthy bread spreads without harmful preservatives are available and all bread spreads are not
high on calories, and will not lead to obesity.


   100

    90

    80

    70

    60

    50
                                                                                     Awareness
    40
                                                                                     Currently using
    30

    20

    10

     0




With respect to awareness and usage, jams and sauce are in the number 1 position with 100%
awareness and usage, but jams are used as bread spreads but sauces have 0% usage as bread
spread same with jelly. Honey comes in the second place with 100% awareness and 62% usage
followed by butter 42%, cheese with an awareness of 68% and 30% usage, cheese spread with an
awareness of 58% and 24% usage, mayonnaise with an awareness of 36% and 22% usage,


                                                  84
peanut butter with an awareness of 40% and 12% usage, marmalade with an awareness of 18%
and 6% usage and Nutella with an awareness of 20% and 0% usage.

Table 7: Rankings of the bread spreads

BREAD SPREADS                                      RANK

Honey                                              1

Jam                                                2

Butter                                             3

Cheese                                             4

Cheese spread                                      5

Peanut butter                                      6

Mayonnaise                                         7

Marmalade                                          8

Sauce                                              9

Jelly                                              10

Nutella                                            11




With respect to their preferences they have ranked honey as number 1 because according to the
mothers it‟s natural, contain a lot of nutrients kike vitamins and minerals, and have no negative
effect on the body. The negatives are just that if taken in excess it heats up the body though
anything in excess is bad. Honey gets the maximum number of rank 1 because of its taste and
other benefits.

Jam gets rank 2 along with honey because the kids like it and it very colorful. The taste is the
major factor in this case. The fruity flavor adds to the positives. The negatives being its has a lot


                                                 85
of preservatives, artificial colors, high on sugars, high on calories, its synthetic, bad for the heart
etc . The reason behind them choosing it as rank 2 is its very popular amongst kids and elders
and because of it‟s the kids have it and the mothers want their kids to have something in the
morning.

The mothers are unaware that jams are high on GI and provide only instant energy and are very
low in nutrition. The apprehensions are that the kid will get addicted to jams and breads only
which to an extent are true.

Butter comes under rank3 because it‟s healthy and natural. The positives being high on nutrients,
vitamins, and instant energy etc. butter is always seen as something very energetic in India and
hence the mothers believe it‟s good for the kids. The negatives being it‟s only fat which might
make the kid lazy, lethargic and might lead to obesity. Butter in excess is bad and as it is just fat
though it might provide energy but it‟s very high on calories which should be taken care of.

Cheese and cheese spread have been given rank 4 and 5 respectively because they are tasty,
easier to spread and tastier compared to butter. The positives of it being it are tasty, smooth and
nutritious. The negative being it‟s processed and fatty.

Peanut butter has been ranked 6 by most of the mothers because of its taste, nutritious value,
energy content etc. it‟s considered one of the best bread spreads amongst the mothers who are
aware of it. The only negative is it contains a lot of fat.

Mayonnaise has been given the 7th rank because of its smooth texture, its taste and protein
content. It‟s very nutritious too, the negatives being it is also high on fat ant it‟s processed.

Marmalade is rank 8 with its tasty fruity nature. The negative being it‟s processed. Indian
mothers are not that aware of the positives and negatives of mayo and marmalade as it‟s not very
popular and common here.

Sauce has been ranked 9 but no one agrees that it‟s a good bread spread. It‟s just seen as a dip for
snacks. Not even a single mother said that she would like to consider it as bread spread. They
believe it‟s not an item foe breakfast as it has a lot of preservatives in it.




                                                   86
Nutella has been given rank 11 because the mothers are unaware of its benefits. They just know
it as a dip or a brown colored spread. They are unaware of its positives and negatives.

When a healthy option for the bread spread like Nutella was given, 66% of the mothers opted for
occasional use saying they would not use it daily because they still consider natural traditional
food is still the best and Indian traditional food is the best but for a change they would like to
consider Nutella whenever they use bread.




            MOTHERS INTENDING TO SERVE NUTELLA
               FOR BREAKFAST TO THEIR KIDS

                            19%             14%



                                                                                Daily
                                                                                Occasional
                                                                                Never
                                         67%




14% of the mothers opted for daily use of Nutella as its healthy, low on calories, tasty and low
on GI. So they think the kid would love to have it as it is choco-based. The bread spread provides
a lot of energy consistently all day long and would be best suitable for school going kids
considering the amount of physical activity they get involved in. it takes care of the mothers‟
apprehension regarding the energy gap and obesity. It also takes care of the appeal to the kids.
While the other 67% opted for occasional use which once again is a positive sign.




                                                  87
                            AWARENESS OF NUTELLA


                     24%



                                                                  Mothers unaware of Nutella

                                             76%                  Mothers aware of Nutella




76% of the mothers have not heard about nutella because its visibility is very low in the Indian
market. Only 24% of the mothers have heard about it as a brown colored sweet paste, Chocó dip,
hazelnut spread, Chocó topping but none have ever tried it. They have seen it in the
supermarkets. Majority of the mothers who are aware of nutella have been to abroad or at least
their husbands have been and hence they are just aware that there is Chocó based dip called
nutella.




                                              88
FINDINGS




   89
The observation and analysis have made four distinct areas in the whole project.

               The perception on breakfast
               The demands from the target (kids)
               The need gaps
               The perception on bread spreads

The key findings with respect to the above areas are:

Almost all mothers are aware that breakfast is important but only 36% are aware that it‟s the
most important meal of the day. They perceive breakfast to be important because they think it
provides energy (44%) followed by concentration and alertness.

74% of the kids take their breakfast regularly while the rest skip it because of lack of time
followed by dislike for food and lack of appetite.

The kids have specific demands for breakfast because of the taste as the main reason behind their
demands. They demand Indian traditional food with variety followed by cereals and never
demand milk.

A lot of mothers (62%) face challenges while ensuring a healthy diet for the kid. The biggest
challenge they face is preparing a healthy breakfast (70%) followed by having no idea what a
healthy breakfast should comprise of.

52% of the mothers perceive a gap in their kid‟s breakfast, 24 %don‟t there is any and another
24% don‟t know whether there is a gap.32% mothers think there is an energy gap because the kid
hardly eats food which is given at home and comes totally tired from school. A few mothers
don‟t even know whether there exists a gap or not. Hence majority of them provide with
homemade supplements followed by cereals.

Indian mothers still prefer traditional breakfast and hence only 6% of mothers opted for daily use
of bread thinking it‟s tasty, easy to handle and consume. Whereas 70% of the mothers opted for
occasional use saying it would be a change for the kids.

24% would never want to consider it as an option for breakfast because they think bread is
unhealthy, leads to constipation and doesn‟t suffice as a meal.

                                                 90
70% of the mothers would like to consider bread spreads because they are tasty, healthy, kids
like it, and it‟s easy to prepare and consume.

30% of the mothers would not like to consider bread spreads because 22% of them opined that
they are not healthy

With respect to awareness and usage of the different bread spreads, jams and sauces come in the
first place as all the household use them followed by honey, butter etc. The bread spreads they
are least aware about are the marmalades and Nutella.

With respect to the preference on bread spreads the mothers have ranked honey on no 1 followed
by jam. They opine that honey being natural is the best bread spread, the kids like jam a lot
because of the taste and hence they have ranked jam on no 2. Butter again being natural is on the
third position. Towards the end are jelly, sauce and Nutella because either the products are not
used as bread spreads or they are still not aware of them.

14% of the mothers opted for daily use of Nutella and 67% opted for occasional use which is a
good sign.

Only 24% of the mothers have heard about it as a brown colored spread or a chocolate dip. Not
many are aware of the product Nutella.

On the basis of the findings above we can revise the SWOT analysis of Nutella with respect to
India.

Strengths:

         It‟s high on carbohydrates which the major nutrient lacking in Indian kids and it‟s the
         most important nutrient to be consumed for breakfast.
         It has low GI and it works for the apprehensions of the mothers and keeps the kid
         energetic all day long.
         It‟s tasty and delicious and will definitely work for kids.
         Quicker to make and easy to eat which will solve the problem of working mothers who
         find preparing breakfast a challenge.



                                                   91
Weaknesses:

     Chocolate in the morning is not very welcomed in Indian homes yet Indian mothers and
     kids are still inclined towards the traditional food.

Opportunities:

     The Indian market has been and will always be a welcoming one for new products like
     Nutella as it did for Kellogg‟s.
     The purchasing power of Indians has been on a raise of lately and the rise of urban
     middle class will be appositive sign for Nutella.
     The population of youth is more and hence Nutella has a bright chance of succeeding.
     Not much of a competition exists in India.

Threats:

     The strong Indian mindset towards traditional food and against bread can be one of the
     threats.
     There are no much of a threats until it gets positioned
     After positioning it has to beware of duplicate brands




                                               92
RECOMMENDATIONS
      AND
   CONCLUSION




       93
Recommendation and conclusion:
With respect to our product the advertising goal will be for informing the audience which is
called the informative advertising. This type of advertising is to create brand awareness and
knowledge of new brands or product. To select on the media the company has to decide on the
reach, frequency, and the impact. Media is also selected on the basis of target audience, product
characteristics, message characteristics and the cost of the advertisement. The four distinct areas
can be dealt with four different types of media.

The perception on breakfast

All the mothers interviewed are well aware of the fact that breakfast is important for their kids
but very few are aware that it‟s the most important meal of the day. Moreover very few of them
have the knowledge on the positives of breakfast. The most alarming myth was that heavy
breakfast induces sleep and makes the kid lethargic. The importance of breakfast is not yet clear
with respect to the nutrients, its positives, the hazards of skipping breakfast, and to rectify the
myths.

The other myth which has surface up was that the kid can have his/her Tiffin at 11 o clock even
if he/she skips her breakfast. Very few are aware that skipping breakfast has a lot of adversities
like it reduces the mental capacity, reduces the alertness, invites obesity as the kids tend to eat
more during the rest of the day if he/she skips the breakfast.

The mothers should be made aware that carbohydrate is the most important nutrient to be
provided in the breakfast as it‟s the most important meal of the day.

The awareness can be through special articles in women magazines, women websites like
indianmothers.com. This public relation activity can also be carried out through radio campaigns
to reach out to a larger target.

The demands from the target: Kids demand different foods because of its taste which is the
primary reason followed by ease of consumption and TV ads. Kids are unaware what is healthy
and what is not, they get attracted toward tasty food and which is easy to eat. Hence from the
analysis we can see that it‟s the traditional food which they demand more as it has lot of variety
in it. Even in the traditional food they demand change and taste. As it is evident from the

                                                   94
ranking, it can be seen that as we go down the rank the taste also keeps on decreasing. These
demands sometimes make the kids difficult and mothers face a lot of challenges like in preparing
the food, changing the menu, convincing the child and challenge in not knowing what a healthy
breakfast should comprise of.

Kids are very much influenced by TV ads and their mothers are through authentic sources. This
area can be addressed through TV commercials as it would stress on the demands kid make and
the challenges faced by mothers. Product testing could also be an option.

The need gap: majority of the mothers perceive a need gap in the breakfast they provide. The gap
which is highly perceived is the energy gap followed by high calorie intake. Majority of the
mothers though aware that there is a gap in their kid, don‟t know as to which gap it is.

To address this problem we need to first of all make them aware what are the nutritional
requirements of the kids especially childhood and pre teens. If there is a gap what are the
symptoms and how can the gap be prevented or rectified. Our product can be an answer because
it‟s high in energy and low in calories which are the biggest concerns of urban upper middle
class and upper class mothers. This area can be addressed through outdoor advertising like
danglers in super markets and public places where in, in each of the dangler we can stress on a
particular gap. We can even put different myths on different danglers and suggest how nutella is
healthy.

Perception on bread and bread spreads: Indian mothers are still very much inclined towards the
Indian traditional cuisine for breakfast. Many even opine that there is no gap or in the traditional
food as it has been a tradition and the prior generations haven‟t faced any nutritional problems.

Many mother seven opine that bread is something taken only during illness and cannot be an
ideal or daily breakfast item.

These myths need to be addressed by exposing them to healthier options like brown bread which
is almost similar in the nutritional value as a normally wheat roti.

Though their concerns about bread as daily breakfast can be justifies but in order to remove the
gaps and the challenges faced bread can act as a solution only if it‟s paired up with something
healthy.

                                                 95
Many mothers even opine that all bread spreads are laden with calories and provide very less
nutrition. This can be addressed by our product as its low on calories and is healthy. The product
can be started as an occasional food according to the mothers which is a positive sign for our
product.

If the bread spread is positioned as a source of high energy with low GI and low calories it can
work for the apprehensions. The most important findings have been that the biggest gap which is
seen by mothers is the energy gap, children skip breakfast because of lack of time, and they
demand tasty food and working mothers face a challenge in preparing a healthy food. Nutella can
be an answer for all these apprehensions as it‟s such a food which is quicker to make, easy to
make and eat, healthy and very tasty.




                                               96
LEARNING
OUTCOME




    97
The last eight weeks have been a very good learning experience. Being a fresher this was the first
time I was exposed to the real work atmosphere.

Being a part of Orchard advertising pvt, I learnt about the organizational structure, work culture,
the functions of an ad agency, their way of doing things, handling pressure etc

It was a great experience watching the staff putting through different ads. I also understood the
process of making ads.

The richest experience I got was through my project which was a research initiative to find the
best fit for an Italian bread spread called „Nutella‟ and I had to carry out a descriptive research to
know the breakfast habits of kids.

During the project I learnt the whole research process with the help of my Industry guide and my
mentor. The whole process step by step was effectively reinforced in me. My marketing research
skills were polished to a great extent in the past eight weeks.

The research helped me understand how to approach respondents, convincing them to give me an
appointment and interact with me, it honed my interviewing skills, interpret and collate findings
from the raw data collected.

With respect to my project I learnt the perception of mothers on breakfast, how they perceive
daily breakfast for their kids, their misconceptions, the current breakfast habits of kids, the
reason behind irregularity in breakfast etc

I also understood about the demands of kids and the challenges mothers face to ensure a healthy
breakfast for their kids. The gaps, the mothers perceive their concerns and their efforts to bridge
the gap.

It also gave me an insight as to how mothers perceive bread and bread spreads, the positives and
the negatives of the same.

The project overall made me understands the acceptance level of Indian mothers with respect to
a new product, their opinion on the chocolate spread „Nutella‟.




                                                 98
REFERENCES




    99
Bibliography:

      A history of advertisement- Taschen

      Marketing Management – Philip Kotler
      Marketing Research – Naresh K Malhotra & Satyabhushan dash

Sources of On-line Journals and Write ups:

      www.calorie-counter.net
      www.nutrientfacts.com
      www.thedailyplate.com
      www.thebreakfast.org
      www.wholefoodsindia.com
      www.frac.org
      www.kidshealth.org
      www.prssa.org
      www.marketsandresearch.com
      www.nutellausa.com
      www.bedandbreakfastindia.com
      www.consumerreports.org

The following reports were referred:

      2003 PRSSA Bateman Case Study Competition
      Ferrero U.S.A., INC. (Nutella)
      The national MBF Healthwatch survey- 2007
      National Institute of Nutrition (Indian Council of Medical Research), on breakfast of
      Indian children, Hyderabad, India.
      To brand Nutella in an impressionable market campaign
      FRAC 2008 School Breakfast Scorecard, an annual status report on the SBP




                                             100
ANNEXURE




   101
       ANNEXURE 1:
Hi, I am SUMMIYA SAIFY from Alliance Business School. I am doing a project with Orchard Advertising Pvt Ltd,

   to understand the ‘Breakfast habits of children’. I seek some information in this regard and appreciate if

   you could please contribute.


   Thank you




          How important do you think is breakfast for your child?

       ……………………………………………………………………………………………………………………………………………………………

       …………………………………………………………………………………………………………………………………


       If yes, why do you consider breakfast as an important?


       ……………………………………………………………………………………………………………………………………………………………

       …………………………………………………………………………………………………………………………………




       If no, why?


       ……………………………………………………………………………………..........................................................................

       ...............................................................................................................................................................

       .......................................................................


          Does your child skip breakfast?

             YES/NO


                                                                                   102
   If so, how often? (Per week)


  What does your child generally have for breakfast?

……………………………………………………………………………………………………………………………………………………………

…………………………………




  At what time does your child have breakfast?

……………………………………………………………………………………………....


  Where does he/she have it?

……………………………………………………………………………………………....


  Are there any specific breakfast demands that your child makes?

……………………………………………………………………………………………………………………………………………………………

………………............................


  What do you think are the reasons behind the demands?

……………………………………………………………………………………………………………………………………………………………

…………………………………




  Are there challenges you face in ensuring that your child eats a healthy breakfast?

……………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………


  Are there any challenges you face in preparing a healthy breakfast for your child?




                                                  103
……………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………....................................


   Do you believe bread can be an ideal breakfast food for your child?

     YES/NO




    If yes, what merits do you see in bread as a breakfast food?


……………………………………………………………………………………………………………………………………………………………

…………………………………


    If no, how does his current breakfast food score over bread?


……………………………………………………………………………………………………………………………………………………………

…………………………………


   Do you see a gap in his/her nutritional intake?

……………………………………………………………………………………………………………………………..................................

..................................................................


   What items do you think can fill the gap?

……………………………………………………………………………………………………………………………………………………………

…………………………………


   If you are offered a product that is high on carbohydrate, low on fat, provides consistent energy all

   day long & is rich in chocolate & hazelnut, would you like to consider it as an ideal breakfast

   companion for your child?



                                                                     104
       ……………………………………………………………………………………………………………………………………………………………

       …………………………………


          If no, why?


       ……………………………………………………………………………………………………………………………………………………………

       …………………………………




2. Hi, I am SUMMIYA SAIFY from Alliance Business School. I am doing a project with Orchard Advertising Pvt

   Ltd, to understand the ‘Breakfast habits of children’. I seek some information in this regard and appreciate

   if you could please contribute.


          Thank you

           1. Do you believe breakfast is important for your child?

               a. Yes
               b. No (Skip to question 4)



           2. If yes, how important do you think is breakfast for your child?

               a. Most important
               b. Very important
               c. Important
               d. Somewhat important
               e. Not important



          3. Why do you think breakfast is important for your kid?

               a. High level of concentration
               b. High level of energy

                                                         105
     c. High level of alertness
     d. Any other…………………………………………………………………



4. If no, why don’t you think breakfast is important for your kid?

     a. It can induce sleep
     b. It might make the kid obese
     c. The breakfast may not get digested
     d. It might make the kid lazy and lethargic
     e. Any other ………………………………………………………………....



 5. Does your child take breakfast regularly?

     a. Yes (Skip to question 8)
     b. No



 6. Does your child skip breakfast? If so how many times?

     a. Always
     b. 1    2     3    4      5   6     times a week
     c. Never




7. Why do you think your kid skips his/her breakfast?

     a. Lack of appetite
     b. Lack of time
     c. Dislike for the food
     d. Any other…………………………………………………



8. Does your kid have specific demands for breakfast?


                                                106
   a. Yes
   b. No (Skip to question 11)



9. What does your kid demand for breakfast?

   Please rank the following choices according to your kid’s demands and also sort   them with help of
   a tick.

                               Rank             Mostly              Sometimes           Never

             Health drink

             Milk

             Juices

             Fruits        &
             vegetables

             Cereals

             Bread

             Traditional
             breakfast
             meal

             Fast food




   Any other…………………………………………………………………...




   10. What is the reason behind these variations in his/her demand?

   a. Taste
   b. Ease of consumption
   c. TV commercials

                                                107
d. Peer pressure
e. Any other…………………………………………………………………...



11. Do you face any challenges while ensuring a healthy breakfast for your kid?

a. Yes
b. No (Skip to question 13)



12. What are the challenges you face while ensuring a healthy breakfast for your kid?

a. Difficult to prepare a healthy breakfast
b. Do not know what a healthy breakfast should comprise of.
c. Any other…………………………………………………………………



13. Do you perceive any gap in the nutritional intake of your kid?

a. Yes
b. No (Skip to question 15)
c. Do not know



14. What kind of nutritional gap do you see in your kid?

a. Proteins
b. Carbohydrates (energy)
c. Vitamins
d. Minerals like calcium and iron
e. High calorie intake
f.   High fast food intake
g. He/she doesn’t eat at all
h. He/she does not like what is served
i.   He/she has poor appetite
j.   None


                                              108
   k. Do not know



  15. What do you do to bridge the gap, if any?

   a. Give him/her cereals like Kellogg’s
   b. Give him/her doctor prescribed multivitamins
   c. Provide him/her with homemade supplements
   d. Give him/her flavored milk
   e. Give him/her artificial supplements
   f.   Any other…………………………………………………………………………



16. Would you consider bread as a regular daily breakfast option for your kid?

   a. Yes
   b. No (Skip to question 18)
   c. Never (Skip to question 19)



17. If yes, why do you think bread is a good breakfast option?

   a. It’s easy to prepare
   b. Easy to consume
   c. Looks attractive
   d. It’s tasty
   e. It’s healthy
   f.   It’s wholesome
   g. Any other…………………………………………………………………



  18. If no, how many times in a week would you like to consider bread as a breakfast option?

   a. 1     2      3   4     5   6     times a week
   b. Never



                                                  109
19. If never, why don’t you think bread would be a good breakfast option?

  a. It’s not wholesome
  b. It’s not healthy
  c. Doesn’t suffice as a meal
  d. Leads to constipation
  e. Any other………………………………………………………………………



  20. Have you heard of bread spreads?

  a. Yes
  b. No



  21. If yes, what do you think are bread spreads?




 22. Would you like to consider bread spreads as a part of your kid’s breakfast?

  a. Yes
  b. No (Skip to question 24)



  23. If yes, why would you like to give bread spreads to your kids?

  a. It’s tasty
  b. It’s healthy
  c. Easy to make and consume
  d. Any other………………………………………………………………………



  24. If no, why wouldn’t you like to give bread spreads to your kids?

  a. It’s not healthy
  b. Leads to obesity
  c. It’s high on calories

                                                110
    d. It makes the kid lethargic and lazy
    e. Any other………………………………………………………………………
25. Which of the following bread spreads are you aware of? Rank them according to your
preferences.

          Bread spreads    Currently         Aware         Positives        Negatives         Rank
                           using

          Jams

          Jellies

          Sauce

          Marmalade

          Mayonnaise

          Honey

          Butter

          Cheese

          Cheese spreads

          Peanut butter

          Nutella




    Any other……………………………………………………………………….

  26. If you were offered a bread spread which is delicious, low in fat and provides consistent all day
long energy to your child, would you consider it for

    a. Daily consumption
    b. Occasional consumption
    c. No


                                                     111
  27. Have you heard of Nutella?

   a. Yes
   b. No



  28. If yes, what have you heard of Nutella?




ANNEXURE 2:

Funfingers

Brief

Tweens (pre teens) is the time you set your personality and habits that last a lifetime. Fingerfun
module is focused on imparting life skills to these kids in a manner they learn, bond, and have a
blast. Children are spending more time online and less time doing anything else, including
hands-on activities, interacting with other people, or learning something that will help them iron
out most of life issues etc. It is especially true that young children enjoy working with their
hands, but many teachers avoid kinesthetic activities because they are “messy”. The education
system doesn‟t help you become an independent individual with a well rounded personality.

Module

Role play- on essential life skills like managing money, pay a bill, listening, negotiating,
developing imagination, self respect, first aid, communication etc.

Non fire cooking


Etiquettes - Table manners, telephone, conversation, party hosting, eating out.....


Celebrating festivals – significance of rituals, how to enjoy, sharing, giving, creating.




                                                112
Classes

Twice a week one hour each from 4:00- 5:00 PM. Eight classes in a month for Rs.1200

Age Group- 6- 11 years

Who are we talking to?

Harried parents/Mothers with children who desperately want them to learn something new (but
are clueless, tired or ill equipped)

Shared emotion among target

My child should get learn to survive and excel in the big bad world. He/she needs something
beyond studies and sports.

Personality of the brand

Full of life, knows how to enjoy every day, every moment with élan

Proposition

Funfingers teaches things that you wish you’d learned early in life

Things they don’t teach you at school

Task

Brand logo,


Press Ad with base line


Poster


ZMS ideas on promoting the concept to mothers



                                             113
Rules

Submission by 1: 00 PM Friday, i.e. May 22

A hand written poster and Ad in case the participant can‟t work with Photoshop or any other
software.

Reward

Coffee n Conversation with Thomas

Book – A history of Advertising

http://www.taschen.com/pages/en/catalogue/design/all/05040/reviews.a_history_of_advertising.2
.htm




                                             114

				
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