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Introduction

Advertising is a form of communication that typically attempts to persuade potential customers

to purchase or to consume more of a particular brand of product or service. “While now central

to the contemporary global economy and the reproduction of global production networks, it is

only quite recently that advertising has been more than a marginal influence on patterns of sales

and production. The formation of modern advertising was intimately bound up with the

emergence of new forms of monopoly capitalism around the end of the 19th and beginning of the

20th century as one element in corporate strategies to create, organize and where possible control

markets, especially for mass produced consumer goods. Mass production necessitated mass

consumption, and this in turn required a certain homogenization of consumer tastes for final

products. At its limit, this involved seeking to create ‘world cultural convergence’, to

homogenize consumer tastes and engineer a ‘convergence of lifestyle, culture and behaviours

among consumer segments across the world’.”

Many advertisements are designed to generate increased consumption of those products and

services through the creation and reinvention of the "brand image". For these purposes,

advertisements sometimes embed their persuasive message with factual information. Every

major medium is used to deliver these messages, including television, radio, cinema, magazines,

newspapers, video games, the Internet, carrier bags and billboards. Advertising is often placed by

an advertising agency on behalf of a company or other organization.

Organizations that frequently spend large sums of money on advertising that sells what is not,

strictly speaking, a product or service include political parties, interest groups, religious

organizations, and military recruiters. Non-profit organizations are not typical advertising clients,

and may rely on free modes of persuasion, such as public service announcements.

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Money spent on advertising has increased dramatically in recent years. In 2007, spending on

advertising has been estimated at over $150 billion in the United States and $385 billion

worldwide, and the latter to exceed $450 billion by 2010.

While advertising can be seen as necessary for economic growth, it is not without social costs.

Unsolicited Commercial Email and other forms of spam have become so prevalent as to have

become a major nuisance to users of these services, as well as being a financial burden on

internet service providers. Advertising is increasingly invading public spaces, such as schools,

which some critics argue is a form of child exploitation.

In the early 1950s, the Dumont Television Network began the modern trend of selling

advertisement time to multiple sponsors. Previously, Dumont had trouble finding sponsors for

many of their programs and compensated by selling smaller blocks of advertising time to several

businesses. This eventually became the standard for the commercial television industry in the

United States. However, it was still a common practice to have single sponsor shows, such as

The United States Steel Hour. In some instances, the sponsors exercised great control over the

content of the show - up to and including having one is advertising agency actually writing the

show. The single sponsor model is much less prevalent now, a notable exception being the

Hallmark Hall of Fame.

The 1960s saw advertising transform into a modern approach in which creativity was allowed to

shine, producing unexpected messages that made advertisements more tempting to consumers'

eyes. The Volkswagen ad campaign—featuring such headlines as "Think Small" and "Lemon"

(which were used to describe the appearance of the car)—ushered in the era of modern

advertising by promoting a "position" or "unique selling proposition" designed to associate each

brand with a specific idea in the reader or viewer's mind. This period of American advertising is

called the Creative Revolution and its archetype was William Bernbach who helped create the

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revolutionary Volkswagen ads among others. Some of the most creative and long-standing

American advertising dates to this period.

Public advertising on Times Square, New York City.

The late 1980s and early 1990s saw the introduction of cable television and particularly MTV.

Pioneering the concept of the music video, MTV ushered in a new type of advertising: the

consumer tunes in for the advertising message, rather than it being a by-product or afterthought.

As cable and satellite television became increasingly prevalent, specialty channels emerged,

including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and

Shop TV Canada.

Marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-

com" boom of the 1990s. Entire corporations operated solely on advertising revenue, offering

everything from coupons to free Internet access. At the turn of the 21st century, a number of

websites including the search engine Google, started a change in online advertising by

emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users.

This has led to a plethora of similar efforts and an increasing trend of interactive advertising.

The share of advertising spending relative to GDP has changed little across large changes in

media. For example, in the U.S. in 1925, the main advertising media were newspapers,

magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was

about 2.9 percent. By 1998, television and radio had become major advertising media.

Nonetheless, advertising spending as a share of GDP was slightly lower—about 2.4 percent.[11]

A recent advertising innovation is "guerrilla marketing", which involve unusual approaches such

as staged encounters in public places, giveaways of products such as cars that are covered with

brand messages, and interactive advertising where the viewer can respond to become part of the

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advertising message. This reflects an increasing trend of interactive and "embedded" ads, such as

via product placement, having consumers vote through text messages, and various innovations

utilizing social network services such as MySpace.

Definitions of Advertising

One definition of advertising is: "Advertising is the non-personal communication of information

usually paid for and usually persuasive in nature about products, services or ideas by identified

sponsors through the various media."(Bovver, 1992, p. 7) So much for academic doubletalk.

Now let's take this statement apart and see what it means.

Nonpersonal

First, what is "non-personal"? There are two basic ways to sell anything: personally and non-

personally. Personal selling requires the seller and the buyer to get together. There are

advantages and disadvantages to this. The first advantage is time: the seller has time to discuss in

detail everything about the product. The buyer has time to ask questions, get answers, and

examine evidence for or against purchase.

A second advantage of personal selling is that the seller can see you. The person rhea’s selling

to. Rhea can see your face; see how the sales message is getting across. If you yawn or your eyes

shift away, you are obviously bored, and the seller can change approach. Can also see if you are

hooked, see what features or benefits have your attention, and emphasize them to close the sale.

Finally, the seller can easily locate potential buyers. If you enter a store, you probably have an

interest in something that store sells. Street vendors and door-to-door sellers can simply shout at

possibilities, like the Hyde Park (London) vendors who call out, "I say there, Guv'nor, can you

use a set of these dishes?", or knock at the door and start their story with an attention grabber.

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From there on, they fit their message to the individual customer, taking all the time a customer is

willing to give them.

Disadvantages do exist. Personal selling is, naturally enough, expensive, since it is labor-

intensive and deals with only one buyer at a time. Just imagine trying to sell chewing gum or

guitar picks one-on-one; it would cost a dollar a stick or pick.

In addition, its advantage of time is also a disadvantage. Personal selling is time-consuming.

Selling a stereo or a car can take days, and major computer and airplane sales can take years.

Nonetheless, although personal selling results in more rejections than sales, and can be nerve-

racking, frustrating and ego destroying for the salesperson, when the salesperson is good it is

more directed and successful than advertising.

From the above, it appears that personal selling is much better than advertising, which is non-

personal. This is true. Advertising has none of the advantages of personal selling: there is very

little time in which to present the sales message, there is no way to know just who the customer

is or how rhea is responding to the message, the message cannot be changed in mid-course to suit

the customer's reactions.

Then why bother with advertising? Because its advantages exactly replace the disadvantages of

personal, selling and can emulate some of the advantages. First, let us look at the latter.

First, advertising has, comparatively speaking, all the time in the world. Unlike personal selling,

the sales message and its presentation does not have to be created on the spot with the customer

watching. It can be created in as many ways as the writer can conceive, be rewritten, tested,

modified, injected with every trick and appeal known to affect consumers. (Some of the latter is

the content of this book.)

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Second, although advertisers may not see the individual customer, nor be able to modify the

sales message according to that individual's reactions at the time, it does have research about

customers. The research can identify potential customers, find what message elements might

influence them, and figure out how best to get that message to them. Although the research is

meaningless when applied to any particular individual, it is effective when applied to large

groups of customers.

Third, and perhaps of most importance, advertising can be far cheaper per potential customer

than personal selling. Personal selling is extremely labor-intensive, dealing with one customer at

a time. Advertising deals with hundreds, thousands, or millions of customers at a time, reducing

the cost per customer to mere pennies. In fact, advertising costs are determined in part using a

formula to determine, not cost per potential customer, but cost per thousand potential customers.

Thus, it appears that advertising is a good idea as a sales tool. For small ticket items, such as

chewing gum and guitar picks, advertising is cost effective to do the entire selling job. For large

ticket items, such as cars and computers, advertising can do a large part of the selling job, and

personal selling is used to complete and close the sale.

Advertising is non-personal, but effective.

communication

Communication means not only speech or pictures, but any way one person can pass

information, ideas or feelings to another. Thus, communication uses all of the senses: smell,

touch, taste, sound and sight. Of the five, only two are useful in advertising -- sound and sight.

Smell

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Smell is an extremely strong form of communication. However, when it comes to advertising, it

is not very useful. A smell can immediately evoke memories. Remember times when you've

smelled something and what memories came to your mind. The smell could be a perfume or

aftershave that reminds you of Sheila or George. It could be popcorn, newly mown grass,

charbroiling steak, or roses. Any smell can conjure up a memory for you.

However, that is smell's greatest problem for advertising. Although a smell can evoke a memory,

everyone's memories are different. For example, the smell of hay in a cow barn always reminds

me of my grandfather's farm in Indiana and the fun I had there as a child. To others, however,

that same smell makes them think a cow had an accident in the living room, not at all the same

response as mine. If an advertiser wanted to make me nostalgic about farms and grandparents,

the smell would be perfect. To others the smell might evoke ideas of cow accidents or the pain of

having to buck bales on a hot summer day, neither image of much use in making a product

appealing.

The point is, the advertiser cannot control the effect of using smell in advertising. Although

many people smell the same things, what they associate with those smells varies with each

person. Without some control, smell is a very weak form of communication for advertising.

Touch

Touch has a limitation that makes it of little use to advertising -- the customer has to come in

actual contact with the item to be touched. Thus, the item must actually exist and be put in a

medium that can carry it. This puts touch more in the realm of personal selling than advertising.

It is possible to use touch for a limited number of products. For example, samples of cloth or

paper can be bound into magazines. The potential customer can thus feel percale or the texture of

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corduroy; tell through touch the difference between slick magazine stock, embossing, Classic

Laid or 100% rag paper. However, for the majority of products touch is useless for advertising.

Taste

Taste is probably the least useful communication channel available to advertising. Like touch,

taste requires the potential customer to come in actual physical contact with the product.

However, taste is even more limited than touch. There are few products other than food for

which taste is a major selling point, and there is virtually no medium in which an ad can be

placed that people are likely to lick; I'm sure few people are going to lick a magazine page or the

TV screen, nor get much sense of what the product tastes like from them. It is possible to use

direct mail, sending samples to homes, but that is an expensive way to advertise.

Thus, taste is much more effective in personal selling, such as sampling foods in supermarkets or

in door-to-door sales.

The remaining two senses, sound and sight, are the most effective and easily used channels of

communication available to advertising. For these reasons virtually all advertising relies on them.

Sound

Sound is extremely useful for advertising. It can be used in a variety of media, from radio and

television to the new technology of binding micro-sound chips in magazines to present 20-

second sales messages. It is also capable of presenting words and "theatre of the mind."

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Words, the method by which humans communicate their ideas and feelings, are presented by

sound, by speaking aloud. With words, it is possible to deliver logical arguments, discuss pros

and cons, and evoke emotions.

More, using sound it is possible to create what is called "the theatre of the mind." What this

means is that sound can conjure in the listener's mind images and actions that do not necessarily

exist. For example, if you want to create before the mind's eye the image of a party, you need

merely use the sound effects of people talking and laughing, the tinkle of glasses and ice, perhaps

music in the background. Even easier, tape record a party and play it back. To evoke images of a

soft spring day the sounds of a breeze rustling leaves, the chirrup of insects, the soft call of birds

is sufficient. The listener's mind will take those sounds, combine them, make sense of them, and

create an image suited to their individual taste.  For example, a beer commercial may play the

sounds of a bar in the background, and the listener may imagine themselves in their own favorite

bar, and perhaps ordering that brand of beer.

Thus sound, in the forms of words and effects, are quite useful to the advertiser in affecting a

listener.

Sight

Sight is arguably the most useful of the communication channels available to the advertiser.

Through sight it is possible to use both words and images effectively.

Words do not have to be spoken to be understood. They can be printed, as well. Although it is

difficult to put in written words the emotional impact possible in spoken words, with their

inflections and subtle sound cues, nevertheless written words are unsurpassed for getting across

and explaining complex ideas or arguments.

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There is an additional factor in sight that makes it excellent for advertising. The old cliché, "A

picture is worth a thousand words," is correct. Think how long it takes to describe something as

opposed to showing a picture of it. No matter how many words you use, some details will be

leave out that are visible at a glance. Thus,sight can quickly and concisely show a customer what

the advertiser wants rhea to see, be it a product or how buying the product can benefit rhea.

In addition, the mind does not have to consciously recognize what the eye sees for it to have an

effect on the subconscious. An advertiser can put many inconspicuous details into a picture that

will affect a customer on the subconscious level. For example, a drop of water on a rose petal

may not consciously register ("I see there's a drop of water on this rose"), but will unconsciously

leave an impression of freshness and delicacy. A small child looking upward into the camera,

unsmiling and eyes wide, gives an impression of sadness and vulnerability, not shortness.

The five forms of human communication can be used to send any message to potential

customers. However, not all five are equal. Smell, touch and taste are of little use, but sound and

sight are of great value and effectiveness.

Information

Information is defined as knowledge, facts or news. However, you should bear in mind that one

person's information is another person's swindle, particularly when advertisers talk about their

products.

Information comes in many forms. It can be complete or incomplete. It can be biased or

deceptive. Complete information is telling someone everything there is to know about

something: what it is, what it looks like, how it works, what its benefits and drawbacks are.

However, to provide complete information about anything is time consuming and difficult. For

example, to tell all about a car would require its appearance, manufacture and manufacturer,

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what percentage of parts are made in which countries, cost of upkeep, mileage (city and

highway), cost (basic and with any and all combination of options), sales and excise taxes per

state, preparation costs, insurance costs per state and locale, ride characteristics (noise by db

interior and exterior, ergs required for steering and braking, relative comfort of seats, length of

reach required to use controls, degrees of lean when cornering), acceleration, braking distance at

many different speeds, etc.. All of this would require a documentary, not a commercial.

Complete information is impossible to provide in an ad

Thus, for advertising, information must necessity is incomplete; not discussing everything there

is to know about the subject. In advertising, what appears is everything the writer thinks the

customer needs to know about the product in order to make a decision about the product. That

information will generally be about how the product can benefit the customer.

There is, of course, the concept of affirmative disclosure. This concept requires an advertiser to

provide customers with any information that could materially affect their purchase decision.

Lewis A. Newman, FTC Chair in 1974, said:

"Sometimes the consumer is provided not with information he wants but only with the

information the seller wants him to have. Sellers, for instance, are not inclined to advertise

negative aspects their products even though those aspects may be of primary concern to the

consumer, particularly if they involve considerations of health or safety."

The Federal Trade Commission deals with such omissions by demanding affirmative disclosure

of such information, and backs up their demands with the force of law.

Bias is being partial towards something, feeling that something is better or worse than other

things. Biased information about a product is that which emphasizes what is good and ignores

what is bad about it. In advertising, this is not only normal, but necessary. Of course an

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advertiser is biased toward rhea own product and against the competition: selling product is the

way makes rhea money, and competition's sales reduces that income. Thus, any advertising will

use words and images that show how good product is and/or how poor competition's is. This is

biased information, but recognized and accepted by industry, regulators and consumers – it is

called puffery, the legitimate exaggeration of advertising claims to overcome natural consumer

skepticism.

However, sometimes the biased information goes beyond legitimate puffery and slips into

deception, the deliberate use of misleading words and images. In other words, deceptive

information is lying to the customer about the qualities of a product. Such deception is illegal,

and the FTC requires the advertiser to cease and desist and, in some instance, to do corrective

advertising to repair any damage.

Persuasive

"Persuasive" stands to reason as part of the definition of advertising. The basic purpose of

advertising is to identify and differentiate one product from another in order to persuade the

consumer to buy that product in preference to another. The purpose of this book is to discuss

some basic elements of persuasion.

Products, Services & Ideas

Products, services or ideas are the things that advertisers want consumers to buy (in the case of

ideas, "buy" means accept or agree with as well as lay out hard, cold cash). However, there is

more involved in products or services than simply items for purchase. (During the following

discussion, "products" will mean products, services and ideas unless otherwise noted.)

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A product is not merely its function. It is actually a bundle of values, what the product means to

the consumer. That bundle may contain the product's function, but also the social, psychological,

economic or whatever other values are important to the consumer.

For example, let's look at a car. If the function of a car, transportation, is all that is important,

then manufacturers would need only build motorized boxes on wheels, and consumers would be

happy with them. Such is obviously not the case: the number of models and types of cars is huge,

and if consumers didn't demand the variety it wouldn't exist. Consumers must find factors other

than mere transportation just as, if not more important.

Perhaps the value is psychological. Some cars may make a person feel safer, or sexier, or give

them self-esteem or enjoyment. Since the purpose of this book is to discuss psychological values

and how to appeal to them,

Perhaps the value is economic. Some cars may be cheaper to run, give better mileage, carry more

people or cargo, cause less damage to the environment.

The above four values, functional, social, psychological and economic, can stand-alone.

However, for most consumers, the values are bundled together in varying proportions. How

closely a product approximates an individual's proportion of values will often determine whether

buy that product or not.

Companies, through research, try to determine what values consumers want in their products,

and then advertise to show how their product satisfies the customers' bundle of values better than

competitors' products. To do this, the company must differentiate their product from competitors.

There are three basic differentiations: perceptible, imperceptible, and induced.

Perceptible

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Perceptible differences are those that actually exist that make one product obviously different

from others of the same kind. The difference may in color or size or shape or brand name or

some other way. In any case, the consumer can easily see that this car or couch or camera is

different from other cars or couches or cameras. Perceptible differences allow a person to make

an instant identification of one product as opposed to another.

Imperceptible

Imperceptible differences are those that actually exist between one product and others, but are

not obvious. For example, there are imperceptible but profound differences between CP/M, MS-

DOS and Apple and Macintosh computers. You can't simply look at a computer and tell which it

is; machines can and usually do look alike. Yet buying either precludes being able to use

software designed for the other.

The same applied to Beta and VHS format VCRs. Although both are designed to do the same

thing, there are differences between them that are imperceptible on the surface but preclude

using the same tapes in both. There are other differences besides the size of the cassette: the

machines use very different ways of recording and playing back tapes. Beta records and plays

back diagonally across the tape, VHS records vertically. Such a difference may seem small, but it

means that not anything recorded on Beta can be played back on VHS, and vice versa. In

addition, Beta's system used more tape per instant and thus had an advantage for information per

inch of tape, meaning a better sound and picture but less available time. However, VHS

overcomes its deficit by improved electronics and better processing of what information it gets

per inch of tape. In addition, VHS (read RCA) managed to corner the market on rental tapes of

movies (a major use of VCRs) and VHS has virtually killed off Beta (read Sony). All the

differences between Beta and VHS are imperceptible: they are also crucial.

Induced

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For many products, there is no actual substantive difference between one and another. For many

brands of cigarettes, beer, cleansers and soaps, rice, over-the-counter health products, etc., etc. ad

nauseam, there is essentially no difference between one brand and another. These products are

called parity products.

For these products, the only way to differentiate one from another is to induce that difference, to

persuade people that there actually is some difference, and that difference is important to them.

These differences are created through advertising, not through any inherent difference in the

products, and that creation often uses the appeals and methods discussed in the bulk of this book.

Heidelberg, the working person’s beer. Michelob, the sophisticated nightlife beer. Bud, the

athletic beer. Bud Light, the sexy party beer. Miller Lite, the fun and funny beer. Coors, the

environmental beer. Coors Light, the fast beer. All of these are images projected onto products

that have virtually no difference between them (taste tests show that few people can tell one from

the other, particularly after having a few of any). This approach depicts the product in

association with a lifestyle. For example, soft drinks show people having fun, usually athletic fun

(a root beer company countered this approach by calling itself "the sit down soft drink"). Beer

ads show people having fun. Airline ads show people having fun. (Notice a trend here?) They

want you to think that if you use their product, you will enjoy the lifestyle depicted, and if you

don't, you won't. Of course, the fact that the product is not necessary to the lifestyle is ignored.

Another approach is to project an image on a parity product. Marlboro is rugged male, Virginia

Slims is independent female, Benson & Hedges is intellectual, and Camel is cool and

sophisticated. That there is no real difference between one brand of cigarette and another is

beside the point. The point is, if you want the image you must use the product. This image

approach is so successful that a manly man wouldn't be caught dead (no pun intended) smoking

Virginia Slims or Benson & Hedges -- he'd feel like a sissy wimp (or rather, that is what he

thinks his friends would think he was).

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Parity products have the greatest difficulty differentiating one from another. They must rely on

creating a trivial or even nonexistent difference in the bundle of values their target audience

might find important to their purchase decision. However, if and once that difference is firmly

established in the target audience's perception, a company can often rely on habit, brand loyalty

and/or cognitive dissonance to get repeat business.

Identified sponsors

Identified sponsors means whoever is putting out the ad tells the audience who they are. There

are two reasons for this: first, it's a legal requirement, and second, it makes good sense.

Legally, a sponsor must identify herself as the sponsor of an ad this prevents the audience from

getting a misleading idea about the ad or its contents. For example, many ads that appear in

newspapers look like news articles: same typeface, appearance, use of columns, etc.. If the ad is

not identified as such, the audience could perceive it as news about a product, rather than an

attempt to persuade the audience to buy it. Case in point: what looks like a news article discusses

a weight-loss plan. In journalistic style it talks about the safety, efficacy, and reasonable price of

the product. A reasonable person might perceive the "article" as having been written by a

reporter who had investigated weight-loss programs and decided to objectively discuss this

particular one. Such a perception is misleading, and illegal. Since it is an ad, somewhere on it

there must appear the word "advertisement" to ensure the audience does not think it is an

objective reporting of news.

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Second, it makes good sense for a sponsor to identify in the ad If the sponsor doesn't, it is

possible for the audience to believe the ad is for a competitor's product, thus wasting all the time,

creativity and money that went into making and placing the ad

Various Media

The various media are the non-personal (remember that?) channels of communication that people

have invented and used and continue to use. These include newspapers, magazines, radio,

television, billboards, transit cards, sandwich boards, skywriting, and posters, anything that aids

communicating in a non-personal way idea from one person or group to another person or group.

They do not include people talking to each other: first, talking is personal and advertising is non-

personal; and second, there is no way to use people talking to each other for advertising--word-

of-mouth is not an advertising medium, since you can't control what is said. (The best you could

do is start a rumor, which will undoubtedly distort the message in the telling, and is more the

province of the PR department.)

Thus, to repeat (in case you have forgotten by now), "Advertising is the non-personal

communication of information usually paid for and usually persuasive in nature about products,

services or ideas by identified sponsors through the various media."

Types of advertisement

Media

Paying people to hold signs is one of the oldest forms of advertising, as with this Human

directional pictured above

A bus with an advertisement for GAP in Singapore. Buses and other vehicles are popular

mediums for advertisers.

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station

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Commercial advertising media can include wall paintings, billboards, street furniture

components, printed flyers and rack cards, radio, cinema and television adverts, web banners,

mobile telephone screens, shopping carts, web popup, skywriting, bus stop benches, human

billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of

airplanes ("logo jets"), in-flight advertisements on seatback tray tables or overhead storage bins,

taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and

trains, elastic bands on disposable diapers, stickers on apples in supermarkets, shopping cart

handles (grabertising), the opening section of streaming audio and video, posters, and the backs

of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their

message through a medium is advertising.

One way to measure advertising effectiveness is known as Ad Tracking. This advertising

research methodology measures shifts in target market perceptions about the brand and product

or service. These shifts in perception are plotted against the consumers’ levels of exposure to the

company’s advertisements and promotions. The purpose of Ad Tracking is generally to provide a

measure of the combined effect of the media weight or spending level, the effectiveness of the

media buy or targeting, and the quality of the advertising executions or creative.

Covert advertising

Product placement

Covert advertising is when a product or brand is embedded in entertainment and media. For

example, in a film, the main character can use an item or other of a definite brand, as in the

movie Minority Report, where Tom Cruise's character John Ander ton owns a phone with the

Nokia logo clearly written in the top corner, or his watch engraved with the Bulgaria logo.

Another example of advertising in film is in I, Robot, where main character played by Will

Smith mentions his Converse shoes several times, calling them "classics," because the film is set

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far in the future. I, Robot and Space balls also showcase futuristic cars with the Audi and

Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise

in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac

cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and Aston

Martin cars are featured in recent James Bond films, most notably Casino Royale. Blade runner

includes some of the most obvious product placement; the whole film stops to show a Coca-Cola

billboard.

Television commercials

Television advertisement and Music in advertising

The TV commercial is generally considered the most effective mass-market advertising format,

as is reflected by the high prices TV networks charge for commercial airtime during popular TV

events. The annual Super Bowl football game in the United States is known as the most

prominent advertising event on television. The average cost of a single thirty-second TV spot

during this game has reached $3 million (as of 2009).

The majority of television commercials feature a song or jingle that listeners soon relate to the

product.

Virtual advertisements may be inserted into regular television programming through computer

graphics. It is typically inserted into otherwise blank backdrops[13] or used to replace local

billboards that are not relevant to the remote broadcast audience. [14] More controversially, virtual

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billboards may be inserted into the background[15] where none exist in real-life. Virtual product

placement is also possible.[16][17]

Infomercials

There are two types of infomercials, described as long form and short form. Long form

infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to 2

minutes long. Infomercials are also known as direct response television (DRTV) commercials or

direct response marketing.

The main objective in an infomercial is to create an impulse purchase, so that the consumer sees

the presentation and then immediately buys the product through the advertised toll-free telephone

number or website. Infomercials describe, display, and often demonstrate products and their

features, and commonly have testimonials from consumers and industry professionals.

Some well known companies in the infomercial business are Script to Screen, Hawthorne Direct,

International Shopping Network and Guthy-Renker.

Celebrities

Celebrity branding

This type of advertising focuses upon using celebrity power, fame, money, popularity to gain

recognition for their products and promote specific stores or products. Advertisers often

advertise their products, for example, when celebrities share their favorites products or wear

clothes by specific brands or designers. Celebrities are often involved in advertising campaigns

such as television or print adverts to advertise specific or general products.

Media and advertising approaches

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Increasingly, other media are overtaking television because of a shift towards consumer's usage

of the Internet as well as devices such as TiVo.

Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising

space are dependent on the "relevance" of the surrounding web content and the traffic that the

website receives.

E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known

as "spam".

Some companies have proposed placing messages or corporate logos on the side of booster

rockets and the International Space Station. Controversy exists on the effectiveness of subliminal

advertising (see mind control), and the pervasiveness of mass messages (see propaganda).

Unpaid advertising (also called publicity advertising), can provide good exposure at minimal

cost. Personal recommendations ("bring a friend", "sell it"), spreading buzz, or achieving the feat

of equating a brand with a common noun (in the United States, "Xerox" = "photocopier",

"Kleenex" = tissue, "Vaseline" = petroleum jelly, "Hoover" = vacuum cleaner ,Nintendo(older

people)=video games, and "Band-Aid" = adhesive bandage) — these can be seen as the pinnacle

of any advertising campaign. However, some companies oppose the use of their brand name to

label an object. Equating a brand with a common noun also risks turning that brand into a generic

zed trademark - turning it into a generic term, which means that its legal protection as a

trademark is lost.

As the mobile phone became a new mass media in 1998 when the first paid downloadable

content appeared on mobile phones in Finland, it was only a matter of time until mobile

advertising followed, also first launched in Finland in 2000. By 2007, the value of mobile

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advertising had reached $2.2 billion and providers such as Ad mob delivered billions of mobile

ads.

More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service picture

and video messages, games and various engagement marketing campaigns. A particular feature

driving mobile ads is the 2D Barcode, which replaces the need to do any typing of web

addresses, and uses the camera feature of modern phones to gain immediate access to web

content. 83 % of Japanese mobile phone users already are active users of 2D barcodes.

A new form of advertising that is growing rapidly is social network advertising. It is online

advertising with a focus on social networking sites. This is a relatively immature market, but it

has shown a lot of promise as advertisers are able to take advantage of the demographic

information the user has provided to the social networking site. Friendertising is a more precise

advertising term in which people are able to direct advertisements toward others directly using

social network service.

Television advertisement

A 'television advertisement' or television commercial (often just commercial (US) or advert or ad

(UK) or ad-film (India)) is a span of television programming produced and paid for by an

organization that conveys a message. Advertisement revenue provides a significant portion of the

funding for most privately owned television networks. The vast majority of television

advertisements today consist of brief advertising spots, ranging in length from a few seconds to

several minutes (as well as program-length infomercials). Advertisements of this sort have been

used to sell every product imaginable over the years, from household products to goods and

services, to political campaigns.

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Amul - History

Amul was formally registered on December 14, 1946. Dr Varghese Kurien recognized as the

man behind the success of Amul.

The 'Amul revolution' started as awareness among the farmers, grew and matured into a protest

movement that was channeled towards economic prosperity. Over five decades ago, the life of a

farmer in Kedah District was very much like that of his/her counterpart anywhere else in India.

His/her income was derived almost entirely from seasonal crops. The income from milk

buffaloes was undependable. Private traders and middlemen controlled the marketing and

distribution system for the milk. As milk is perishable, farmers were compelled to sell it for

whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this

situation, the private trader made a killing. Gradually, the realization dawned on the farmers that

the exploitation by the trader could be checked only if marketed their milk themselves. Amul

was the result of that realization.

The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. By the end

of 1948, more than 400 farmers joined in more Village Society, and the quantity of milk handled

by one Union increased from 250 to 5,000 liters a day. The success of Amul was instrumental in

launching the White Revolution that resulted in increased milk production in India. It is termed

as "Operation Flood" by Amul.

Currently Amul has 2.41 million producer members with milk collection average of 5.08 million

liters’/day. Amul sales turnover in 2004-05 was 672 million US $.

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Amul

Type Cooperative

Founded 1946

Headquarters Anand, India

Key people Chairman, Gujarat Co-operative Milk

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Marketing Federation Ltd. (GCMMF)

Industry Dairy

Products See complete products listing.

Revenue $1.33 billion USD (in 2007-08)

Employees 2.41 million milk producers

Website http://www.amul.com/

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It

is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk

producers in Gujarat, India.

AMUL is basically in Anand, Gujarat and has been a sterling example of a co-operative

organization's success in the long term. It is one of the best examples of co-operative

achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in the

state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder

what combination of influences and incentives is needed to multiply such a model a thousand

times over in developing regions everywhere." The Amul Pattern has established itself as a

uniquely appropriate model for rural development. Amul has spurred the White Revolution of

India, which has made India the largest producer of milk and milk products in the world. It is

also the world's biggest vegetarian cheese brand.

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Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual

turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with

milk collection average of 10.16 million liters per day. Besides India, Amul has entered overseas

markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong

and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded,

but now it has fresh plans of flooding the Japanese markets. Other potential markets being

considered include Sri Lanka.

Title of study

The research is made on “Effectiveness of chocolate advertisement towards its sales” for AMUL

INDIA.

Advertising is a form of communication that typically attempts to persuade potential customers

to purchase or to consume more of a particular brand of product or service. “While now central

to the contemporary global economy and the reproduction of global production networks, it is

only quite recently that advertising has been more than a marginal influence on patterns of sales

and production. The formation of modern advertising was intimately bound up with the

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emergence of new forms of monopoly capitalism around the end of the 19th and beginning of the

20th century as one element in corporate strategies to create, organize and where possible control

markets, especially for mass produced consumer goods. Mass production necessitated mass

consumption, and this in turn required a certain homogenization of consumer tastes for final

products. At its limit, this involved seeking to create ‘world cultural convergence’, to

homogenize consumer tastes and engineer a ‘convergence of lifestyle, culture and behaviors’

among consumer segments across the world’.”

Many advertisements are designed to generate increased consumption of those products and

services through the creation and reinvention of the "brand image". For these purposes,

advertisements sometimes embed their persuasive message with factual information. Every

major medium is used to deliver these messages, including television, radio, cinema, magazines,

newspapers, video games, the Internet, carrier bags and billboards. Advertising is often placed by

an advertising agency on behalf of a company or other organization.

Statement problem

Increase the awareness level of AMUL CHOCOLATE.

Seek the general perception of consumer towards AMUL CHOCOLATE.

To find the performance of AMUL CHOCOLATE vis-à-vis other Brands.

To know the consumer psyche and their behavior towards AMUL

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CHOCOLATE.

Objective of the study

To know the relationship of sales with the advertisement.

To know awareness of people towards Amul chocolates.

To know in which segment chocolates are mostly like/preferred.

To know which advertisement tool is mostly preferred by people.

To know the preference of Amul chocolates with comparison to

Other competitive brands.

To know the factors which affects consumer’s buying behavior

to purchase chocolates.

Scope of the study

The study and analysis of effects of advertisement on sales of Amul chocolate products is

limited to specific company AMUL INDIA.

Study area

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YELAHANKA area of Bangalore was taken into consideration as the area of research and

certain part of urban Bangalore are randomly selected.

Sources of data collection

Information requirement

First, I had to know about all the competitors present in the chocolate segment (Reputed

and well established brands as well as Local brands).

Before going for the survey I had to know the comparative packs and prices of all the

competitors existing in the market

Since chocolate is a product that attracts children and youngsters hence I had to trace the

market and segment it, which mainly deals with people of various age groups.

As chocolate is different product, the main information needed is the various types of

chocolates available in the market, their calorific value and various other facts. They can

be termed as

As Amul chocolate advertisements are mainly done through hoardings but on television

the advertisement is being telecasted timely and on the proper time or not.

Research design

Despite the difficulty of establishing an entirely satisfactory classification system, it is helpful to

classify marketing research on the basis of the fundamental objectives of the research.

Consideration of the different types, their applicability, their strengths, and their weakness will

help the student to select the type best suited to a specific problem.

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The two general types of research are:

Exploratory research

Exploratory research seeks to discover new relationship, emphasis on discovery of ideas.

Marketing researches devote a significant portion of their work on exploratory studies when

very little is known about the problem being examined.

Conclusive research

Conclusive studies attempts to determine the frequency with which something occurs or the

relationship between two phenomenons. Usually conclusive studies assume certain under

underlying characteristics of the market or have some precise statement of research

questions/hypothesis.

Research instrument

If one wants to know what type of dentifrice people use, what they think of, television

commercials, or why they buy particular brands of cars, the natural procedure is to ask them.

Thus, the questionnaire method has come to be the more widely used of the two data collection

method. Many consumers are now familiar with the telephone caller who greets them with “We

are making a survey”, and then proceeds to ask a series of questions. Some interviews are

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conducted in person, others by telephone, and others by mail. Each of these has its special

advantages and disadvantages and limitations. The questionnaire method in general, however,

has a number of pervasive advantages and disadvantages. Discussion of particular variations

will be more meaningful if these characteristics of the general methods are brought out first.

A questionnaire consists of list of questions to be asked from the respondents and the space

provided to record the answer / responses. Questionnaire can be used for the personal

interviews, focus groups, mails and telephonic interviews. The choice among these alternatives

is largely determined by the type of information to be obtained and by the type of respondents

from whom it is to be obtained.

The common factor in all varieties of the questionnaire method is this reliance on verbal

responses to question, written or oral.

Questionnaire in the project consists of:

Multiple choice questions

Dichotomous

Multiple-choice questions

Questions of this type offer the respondents an alternative to choose the right answer among

others. It is faster, time saving and less biased. It also simplifies the tabulating process.

Open-end questions

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In this type respondents are free to answer in their own words and express the ideas they think

are relevant, such questions are good as first questions or opening questions. They introduce the

subject and obtain general reaction.

Dicthomus

These are the questions which are Boolean in nature. These answers are straightforward and

respondents have to answer them in a straight way. That means the answer can only be either

‘Yes” or ‘No’.

Sampling techniques

Sample design is a definite plan of obtaining some items from the whole population. The sample

design used in this project is two state sampling i.e. Cluster and convenience. In the probability

sampling methods, each items in the sample is chosen one at a time from a complete list of

universe elements. In marketing research practice, it will sometimes be more expedient to select

clusters or groups of universe elements, rather than to choose sample items individually.

Sampling methods in which universe elements are chosen in groups ---- rather than individually

-- are called cluster-sampling methods. They are widely used in the sampling of human

populations. When no complete universe listing exists, a type of sampling is called area sampling

may be the only practically feasible form of probability sampling.

Non-disguised structured techniques

The non-structured techniques for attitude measurement are primarily of value in exploratory

studies, where the researcher is looking for the salient attributes of given products and the

important factors surrounding purchase decisions as seen by the consumer. Structured techniques

can provide a more objective measurement system, one, which is more comparable to a scale or a

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yardstick. The term scaling has been applied to the efforts to measure attitudes objectively, and a

number of useful scales have been developed.

Sampling methods

Sample design is a definite plan of obtaining some items from the whole population. The sample

design used in this project is two state sampling i.e. cluster sampling and convenience sampling.

The whole city was divided into some geographical areas.

Cluster sampling

Here the whole area is divided into some geographical area and a definite number of consumers

were to be survey.

Convenience sampling

This type of sampling is choosing purely based on convenience and according to convenience. I

visited Garden, Parks, Temple, Superstores, Theatres and Gymnasium.

Sampling

1. Sampling Technique: Non probability sampling (A non probability sampling technique is

that in which each element in the population does not have an equal chance of getting

selected)

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2. Sample Unit: People who buy chocolates available in retail outlets, superstores, etc

3. Sample size : 200 respondents (Age ranging between 15 yrs to 65 yrs)

4. Method: Direct interview through questionnaire.

5. Data analysis method: Graphical method.

6. Area of survey: Yelahanka, Kamakshamma layout

Fieldwork

Questionnaire was prepared keeping the objective of research in mind.

Questions were asked to respondents as regards to their willingness to purchase

Chocolates.

The help of questionnaires conducted direct interviews, in order to get accurate

information.

In order to get correct information I had to approach consumers ranging from 15 yrs to 65

yrs.

I visited as many respondents as I can and asked them their real likings about any

chocolate and also got an idea, How a chocolate should be?

It is really a Herculean task to understand Consumer Behaviour, as the definition suggest,

“Consumer behaviour is a physical activity as well as decision process individual

engaged in when evaluating, acquiring, using and disposing goods and services”.

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In order to collect accurate information I visited to Garden, Parks, Temple, Superstores,

Theatres and Gymnasium, each and every question was filled personally by the

respondents and checked properly.

People were not willing to answer, when they were contacted between 1.00 pm to 5.00

pm, the time when most of the people take rest during the scorching heat.

Limitations of study

1. The major limitation of the study is that the entire study is based on only one unit, AMUL

INDIA if study of another dealer of AMUL company had been done, then comparative

analysis could have given a deeper insight of the topic.

2. The study is confined only to the YELEHANKA of BANGALORE.

3. The time limited allotted for the study is very less.

4. My conclusions and finding of the project are based on the information given by the

director and the staff member of the company. There is a slight possibility that they might

have been a bit opinionated. In giving me the information. By being opinionated, I do not

mean they intentionally gave me wrong information. I mean that there is a tendency in

people to tell how they perceive it rather than how actually it is.

5. If the respondents answer does not falls between amongst the options given then it will

turn up to be a biased answer.

INDUSTRY PROFILE

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Dairy is a place where handling of milk and milk products is done and technology refers to the

application of scientific knowledge for practical purposes. Dairy technology has been defined as

that branch of dairy science, which deals with the processing of milk and the manufacture of

milk products on an industrial scale.

The dairy sector in the India has shown remarkable development in the past decade and India

has now become one of the largest producers of milk and value-added milk products in the

world.

The dairy sector has developed through co-operatives in many parts of the State. During 1997-

98, the State had 60 milk processing plants with an aggregate processing capacity of 5.8 million

litres per day. In addition to these processing plants, 123 Government and 33 co-operatives milk

chilling centers operate in the State.

Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents,

compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest

cost of milk production and increasing production in the country multinational companies are

planning to expand their activities here. Some of these milk producers have already obtained

quality standard certificates from the authorities. This will help them in marketing their products

in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33%

per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the

greater emphasis on the processed foods sector and also by increase in the conversion of milk

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into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000

million. Presently the market is valued at around Rs7,00,000 mn.

Milk Production from 1950 to 2020

1950 – 17 million tones

1996 – 70.8 million tones

1997 – 74.3 million tones

(Projected) 2020 – 240 million tones

Expected to reach- 220 to 250 mt – 2020

India contributes to world milk production rise from 12-15 % & it will increase up to 30-35%

(year 2020)

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World's Major Milk Producers (Million MTs)

Country2002-03 2003-04 (Approx.)

India 81 84.5

Brazil 75 77

Russia 34 33

Germany 27 27

France 24 24

Pakistan 21 22

USA 71 71

UK 14 14

Ukraine 15 14

Poland 12 12

New Zealand 11 12

Netherlands 11 11

Italy 10 10

Australia 9 10

Research and Development in Dairy Industry

The research and development need to the dairy industry to develop and survives for long time

with better status. The various institute and milk dairy companies R&D results provide base for

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today’s industry growth and development. The research and development of products of dairy,

like yogurt and cheese market research and company reports provides insights into product and

market trends, analysis opportunities, sales and marketing strategies will help local milk unions

to develop and spread worldwide through obtaining this knowledge. Specific on market share,

segmentation, size and growth in the US and global markets are helps industry to expand its

market worldwide even small union also.

Development of Food Processing Industry

The food processing industry sector in India is one of the largest in terms of production,

consumption, export and growth prospects. The government of accorded it is a high priority,

with a number of fiscal relieves and incentives, to encourage commercialization and value

addition to agriculture produce, for minimizing harvest wastage, generating employment and

export growth.

Food processing industry is providing backbone support to the milk industry. The development

food products by using milk can give good market opportunities to produces milk.

Products and Industry Status

Among the products manufactured by organized sector are Ghee, Butter, Cheese, Ice Creams,

Milk powders, Melted milk food, Infant food, condensed milk etc. Some milk products like

Casein and Lactose are also being manufactured lately. Therefore, there is good scope for

manufacturing these products locally.

Liberalization of the economy has led to a flood of new entrants, including MNCs due to good

prospects and abundant supply.

Investment Potential in Milk Products

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At the present rate of growth, India is expected to overtake the US in milk production by the

year 2010, when demand is expected to be over 125.69 ml.tn. Being largely imported,

manufacture of casein and lactose has good scope in the country.

Exports of milk products have been decentralized and export in 2005-2010 is estimated at

71.875 cr.

Production of Milk in India

The facts and figures here shown are calculated on the basis of percentage increases pear year.

YearProduction in million

MT

1993-94 61.2

1994-95 63.5

1995-96 65.0

1996-97 68.0

1997-98 71.0

1998-99 74.5

1999-00 78.0

2000-01 81.51

2001-02 85.17

2002-03 89.0

2003-04 93.0

2004-05 97.65

2005-06 102.45

2006-07 107.58

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Company Profile of Amul

AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amulya,"

was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found

in several Indian languages. Amul products have been in use in millions of homes since 1946.

Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates,

Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a

leading food brand in India. (Turnover: Rs. 52.55 billion in 2007-08). Today Amul is a symbol

of many things. Of high-quality products sold at reasonable prices.

50 years after it was first launched, Amul sale figures have jumped from 1000 tones a year in

1966 to over 25,000 tones a year in 1997. No other brand comes even close to it. All because a

thumb-sized girl climbed on to the hoardings and put a magical spell on the masses

AMUL stands for,

A = Anand

M = Milk

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U = Union

L = Limited.

Milestone of Amul

Name Karia district co-operative milk producer’s ltd, widely known as “Amul”

From Co-operative sector registered under the co-operative society act

Location Amul dairy, nr, railway station, Amul dairy road, Anand Gujarat , India

Registration 14th December, 1946

Registered Kaira district co-operative milk producer’s ltd, Anand -388 001. Gujarat

Size Production of different products on large scale, collecting 9 to 15 lakh liters milk

everyday & producing milk products.

Plant There are 4 plants

1) Amul Plant 2) Kanjari Plant

3) Mogar Plant 4) Khatraj Plant

Banker 1. The Kaire District Center Co-Operative Bank Ltd.

2. UTI bank 4. Bank of Baroda

3. SBI 5. Corporation bank 6. Bank of Maharashtra

Working 10:45 am to 5:45 pm

Founders 1. Shri Tribhuvandas K. Patel

2. Shri Sadar Vallabhbhi Patel

3. Shri Morarji Desai

4. Shri Verghese Kurien

5. Shri Harichand M. Dalaya

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Amul (Anand milk union ltd.) is based on four hands, which are coordinated with each other.

The actual meaning of this symbol is co-ordination of four hands of different people by whom

this union is at the top position in Asia.

o First hand is of farmers, without whom the organization would not have existed.

o Second hand is of processors, who process the row material (milk) into finished

goods.

o Third hand is of marketer, without whom the product would have not reached the

customers

o Fourth hand is of customers, without whom the products would have not carried

on.

Brief History of Amul

Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India.

It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk

Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk

producers in Gujarat, India.

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative

organization's success in the long term. It is one of the best examples of co-operative

achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in the

state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder

what combination of influences and incentives is needed to multiply such a model a thousand

times over in developing regions everywhere. ”The Amul Pattern has established itself as a

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uniquely appropriate model for rural development. Amul has spurred the White Revolution of

India, which has made India the largest producer of milk and milk products in the world. It is

also the world's biggest vegetarian cheese brand.

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual

turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with

milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas

markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong

and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded,

but now it has fresh plans of flooding the Japanese markets. Other potential markets being

considered include Sri Lanka.

Dr Varghese Kurien, former chairperson of the GCMMF, is recognized as the man behind the

success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was

elected chairman of GCMMF.

AMUL: The origin

The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of the Himalayas.

Similar is the story of Amul which inspired Operation Flood and heralded the 'White

Revolution' in India. It began with two village cooperatives and 250 liters of milk per day,

nothing but a trickle compared to the flood it has become today. Today Amul collects processes

and distributes over a million liters of milk and milk products per day, during the peak, on

behalf of more than a thousand village cooperatives owned by half a million farmer members.

Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a

symbol of the aspirations of millions of farmers. Creating a pattern of liberation and self-

reliance for every farmer to follow.

The Start of a Revolution

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The revolution started as awareness among the farmers that grew and matured into a protest

movement and the determination to liberate them. Over four decades ago, the life of a farmer in

Kaira District was very much like that of his counterpart anywhere else in India. His income was

derived almost entirely from seasonal crops. The income from milk buffaloes was

undependable. The marketing and distribution system for the milk was controlled by private

traders and middlemen. As milk is perishable, farmers were compelled to sell it for whatever

they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation,

the one who gained was the private trader. Gradually, the realization dawned on the farmers that

the exploitation by the trader could be checked only if marketed their milk themselves. In order

to do that they needed to form some sort of an organization. This realization is what led to the

establishment of the Kaira District Cooperative Milk Producers' Union Limited (popularly

known as Amul) which was formally registered on December 14, 1946.

The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. An

assured market proved a great incentive to the milk producers of the district. By the end of 1948,

more than 400 farmers joined in more village societies, and the quantity of milk handled by one

Union increased from 250 to 5,000 liters a day.

Amul Secret of Success

The system succeeded mainly because it provides an assured market at remunerative prices for

producers' milk besides acting as a channel to market the production enhancement package.

What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an

access to high quality milk and milk products. Contrary to the traditional system, when the profit

of the business was cornered by the middlemen, the system ensured that the profit goes to the

participants for their socio-economic upliftment and common good.

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Looking back on the path traversed by Amul, the following features make it a pattern and model

for emulation elsewhere. Amul has been able to:

Provide a support system to the milk producers without disturbing their agro-economic

systems

Even though, growing with time and on scale, it has remained with the smallest producer

members. In that sense, Amul is an example par excellence, of an intervention for rural

change.

Bring at the command of the rural milk producers the best of the technology and harness

its fruit for betterment

Produce an appropriate blend of the policy makers farmers board of management and the

professionals: each group appreciating its roles and limitations

Plough back the profits, by prudent use of men, material and machines, in the rural sector

for the common good and betterment of the member producers and

The Union looks after policy formulation, processing and marketing of milk, provision of

technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary

care, better feeds and the like - all through the village societies. The village society also

facilitates the implementation of various production enhancement and member education

programs undertaken by the Union. The staff of the village societies has been trained to

undertake the veterinary first-aid and the artificial insemination activities on their own.

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Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's

largest food products marketing organization. It is a state level apex body of milk cooperatives

in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest

of consumers by providing quality products which are good value for money.

Members:13 district cooperative milk producers'

Union

No. of Producer Members: 2.7 million

No. of Village Societies: 13,141

Total Milk handling capacity: 10.21 million liters per day

Milk collection (Total - 2007-08): 2.69 billion liters

Milk collection (Daily Average 2007-08): 7.4 million liters

Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing Capacity: 3090 Mts per day

Sales turn over from 1994 to 2008:

Sales Turnover Rs (million)

2000-01 22588

2001-02 23365

2002-03 27457

2003-04 28941

2004-05 29225

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2005-06 37736

2006-07 42778

2007-08 52554

Ownership Pattern of Amul

Amul is a co-operative sector & it is having 22 total numbers in societies. In addition to this

there is total 1800 manpower in organization.

Gujarat co-operative milk marketing federation ltd. widely known as GCMMF faces through

competition in the Indian market by different companies. So that by advertising and promoting

its product GCMMF has become one of the leading dairies in India. In western of India,

GCMMF shares most of the market while in other parts of India it is next so. But slowly and

surely GCMMF is growing in sharing the market with other competitors industries.

Now there is machinery around Rs. 1500 lakhs, which is to be in expansion with higher

advanced machinery to Rs. 1600 lakhs.

Accumulated members share capital in union is Rs. 553,935,000 this share capital is deposit in

Amul bank account in the name respective member dairy co-operative societies.

Information about Competitors

The Indian market is dominated by a large number of small local manufacture and regional

players.

There are an estimated 150 manufactures in the organized segment which account for 30-40% of

sales and about 1000 units in the unorganized segment of the market.

They have also competitor in the market. They felt very tuff competition in our country and

outing countries.

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According to Product Categories

For Liquid Milk:

Gayatri Milk

Super Milk

Payal Milk

Sardar Milk

Samrrudhi Milk

Sagar Milk

For Ice-Cream Product

Gokul Ice-Cream

Dairy –Den Ice-Cream

Quality Walls Ice-Cream

Havmor Ice-Cream

Max

Vadilal Ice-Cream

For Ghee Product

Gopi Ghee

Gayatri Ghee

Krishna Ghee

A’bad Ghee

Nestle

For Chocolate

Almond bar

Fruit & Nut

Milk chocolate

Bindass

Butter

Nature butter

Cheese

Amul cheese

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Achievements \ awards

Amul a co-operative society and its co-operation has led many different awards in its favor.

Magsaysay award for community leadership presented in manila, Philippines to Shri

Tribhuvandas Patel, Shri D N Khurody and Shri V. Kurien

1964: “Padmabhusan” award given to Shri T.K. Patel

1965: “Padmshri awarded was given to V. Kurien, general manager, by the president of India

1987: “Best Productivity” awarded by national productivity council for the year 1985-86

awarded to Amul dairy.

1988: “Best Productivity” awarded for the second successive year 1986-87 by the president of

India, Mr. R. Venkatrao to kaira union.

1993: “ICA” Memenoto towards genuine and self sustaining co-operative worldwide ICA

regional office for Asia and pacific, New Delhi, 1996.

1999: G.B.Birla award.

Moreover the Amul union has achieved the prestigious ISO 9001-2000 and HACCP Certificate

and effects are got to obtain ISO 14000.

Data analysis & interpretation

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Table-1

Table showing that the reference of the people prefer chocolates or not.

No. of respondents %

Yes 43 86

No 07 14

The table showing that the reference of the prefer chocolates.

Pie chart 1

The below pie chart shows the reference of the people prefer chocolates or not.

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The pie chart showing the reference of the prefer chocolates

The above pie chart showing that the reference of the prefer chocolates

Table-2

The table showing usage of the chocolate in the family

No. of respondents %

Children 17 34

Teenager 16 32

Younger 12 24

old 05 10

The above table showing that the children and teenager use the chocolate products most.

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Pie chart 2

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0

5

10

15

20

25

30

35

40

Children Teenager Younger old

No. of respondents

%

The pie chart showing that the usage of the chocolate in the family.

Mostly children & teenagers like chocolates in their families. Therefore, we should give stress on

children & teenager segment to increase market share. Young people also using chocolates for

consuming & for giving as a gift.

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Table 3

The table showing that the form of chocolate people used the most

No. of respondents %

Cadbury 15 30

Nestle 14 28

Amul 15 30

Other 6 12

From the above table it is clear that the people use mostly the bar form of the chocolate.

Pie chart 3

The pie chat showing that which form of chocolate people used the most

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0

5

10

15

20

25

30

35

Cadbury Nestle Amul Other

No. of respondents

%

The above diagram suggest that the most preferred form is Cadbury 30%, followed by Nestle

28%, Amul 30% and other 12%.

Table 4

The table showing the how much money spend on chocolate on weekly

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No. of respondents %

Below 50 Rs 25 50

50Rs-100Rs 14 28

Above- Rs100 11 22

Chart 4

The chart showing the how much money spend on chocolate on weekly

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0

10

20

30

40

50

60

Below 50 Rs 50Rs-100Rs Above- Rs100

No. of respondents

%

Mostly people like STAR channel. This channel is very popular among all the age group people.

SONY & CARTOON channels are also popular but not as STAR. In other channels, sports and

news channels are preferred. CARTOON channel is specially preferred by children. So it will be

more beneficial top give advertisements on STAR & CARTOON channels, it covers all the age

groups.

Table 5

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Table showing the factor influencing purchage Amul chacolate

No. of respondents %

Quality 21 42

Quantity 12 24

Price 13 26

Other 04 08

The above table showing that. the factor influencing purchage Amul chacolate

Pie chart 5

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Pie chart showing the the factor influencing purchage Amul chacolate

0

5

10

15

20

25

30

35

40

45

Quality Quantity Price Other

No. of respondents

%

The pie chart showing that the. the factor influencing purchage Amul chacolate

Table 6

The table showing the which factor gives more satsifaction

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No.of respond %

Taste 21 42

Flaver 14 28

Brand 15 30

Price 00 00

The table showing that the people which factor gives more satsifaction

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Pie chart 6

The pie chart showing the which factor gives more satsifaction

0

5

10

15

20

25

30

35

40

45

Taste Flaver Brand Price

No.of respond

%

Mostly people like to watch an advertisement through Television because most of them belongs

to service class. Children are getting attracted through advertisement on television and

hoardings. Company tries to give attractive advertisement through T.V. and hoardings because

advertisement through hoardings is less costly.

Table 7

The table showing which pack of chocolate they prefer more

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No.of respond %

Small 17 34

Big 14 28

Family pack 14 28

Others 5 10

The table shows that the which pack of chocolate they prefer more

Chart 7

The chart showing the which pack of chocolate they prefer more

0

5

10

15

20

25

30

35

40

Small Big Family pack Others

No.of respond

%

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Good Brand Ambassador generally effects people’s perception towards a product and create an

image in their mind. Mostly people likes to see celebrities like Amitabh Bacchan, Sachin

Tendulkar, M.S.Dhoni, Saniya Mirza etc. as a Brand Ambassador in chocolate advertisements.

At the same time people like comedy, slow music & specially children like jingles in

advertisements.

Table 8

The table showing the how people aware of Amul chocolate

No. of respondents %

Telivision 17 34

News papers 14 28

Internet 16 32

Hording 3 6

From the above table it is clear that most of the people have aware of the Amul chocolate

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Pie chart 8

The pie chart showing the people aware of the Amul chocolate

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0

5

10

15

20

25

30

35

40

Telivision News papers Internet Hording

No. of respondents

%

The chart shows that 90% respondents have tasted Amul Chocolate, while still 10% have not

tried Amul Chocolates.

Amul must use proper techniques in order to cater the needs of every common man.

Table 9

The table showing that the amount of people who can recall the advertisements

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No. of respondents %

Yes

No

Here it was observed that only 32% respondents in the city of Ahmadabad were able to recall

Amul Chocolate advertisement. This shows how much Amul lags behind in promotional

activities and advertisement. Therefore Amul must use strong promotional activities and

advertisement in order to retain their potential consumers.

Pie chart 9

The pie chart showing that the amount of people who can recall the advertisements

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Here it was observed that only 32% respondents in the city of Bangalore were able to recall

Amul Chocolate advertisement. This shows how much Amul lags behind in promotional

activities and advertisement. Therefore Amul must use strong promotional activities and

advertisement in order to retain their potential consumers.

Table 10

The table showing the which price of product people prefer more

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No. of respondents %

5-10 10 20

10-20 17 34

20-30 15 30

30 above 08 16

We can clearly gauge from the pie chart that Cadbury being on the top slot with 58% market

share dominates the chocolate market, followed by Nestle with 28% share, whereas Amul have

only 13% market share and thus lags behind.

Pie chart 10

The pie chart showing the amount of people using the Amul chocolate

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0

5

10

15

20

25

30

35

40

05-Oct Oct-20 20-30 30 above

No. of respondents

%

We can clearly gauge from the pie chart that Cadbury being on the top slot with 58% market

share dominates the chocolate market, followed by Nestle with 28% share, whereas Amul have

only 13% market share and thus lags behind.

Table 11

11) This table showing the accept new products launched by AMUL

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No. of respondents %

Yes 35 70

No 15 30

Pie chart 11

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0

10

20

30

40

50

60

70

80

No. of respondents %

Yes

No

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Table 12

This table showing the Frequency of consumption

No. of respondents %

Once a four night 13 26

Daily 18 36

Weekly 17 34

Monthly 2 04

Pie chart 12

0

5

10

15

20

25

30

35

40

Once a fournight

Daily Weekly Monthly

No. of respondents

%

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Table 13

This table showing the factor among affects the most in chocolate advertisement

No. of respondents %

Brand ambassador 12 24

Emotions 15 30

Music 19 38

Other 04 08

Pie chart 13

0

5

10

15

20

25

30

35

40

Brandambassador

Emotions Music Other

No. of respondents

%

Table 14

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This table showing the recommend AMUL to others

No. of respondents %

Definitely will recommend 19 38

Not sure 21 42

Probably will recommend 10 20

Pie chart 14

0

5

10

15

20

25

30

35

40

45

Definitely willrecommend

Not sure Probably willrecommend

No. of respondents

%

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Findings

During the survey it was found that still, 10% people have not tasted Amul Chocolate.

Lack of Awareness in consumers. Many people are not know about Amul chocolates

specially children and teenagers.

As I found that the main product of Amul is Milk and company firstly wants to capture

maximum market share in milk market which is approx. 66%, after it Amul is concentrating

upon butter & cheese which has market share of approx. 88%, so it is not concentrating upon

chocolates.

When I interviewed people then many of the people cannot recall Amul chocolate

advertisement. It shows Lake of Advertisement or advertisement is not timely given or

advertisement is not given on right time.

In its advertisement is not using any brand ambassador which attracts all age group people

like Cadbury.

There is lake of Sales Promotional Activities i.e. free tattoo, extra weight, toys, quiz contest

etc.

Cadbury is main competitor and strategically better performer then Amul.

I find the main thing is that “Amul” brand name has very good image in consumer’s mind

and they consider it as Pure & Good Product.

People who have tasted Amul Chocolate are not ready to purchase the same again.

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Suggestions

In order to maintain and increase the sales in the city of Adoni, the following

recommendations regarding Amul Chocolates; particularly regarding advertisement,

distribution, promotional policies, etc, are hereby suggested:

First and foremost Amul should take proper action in order to improve service, because

although being on a top slot in Butter and milk supplies it does not get the sales in chocolate,

which it should get.

Company should use brand ambassador, which attracts each age segment i.e. Saniya Mirza,

Shaktiman, Amitabh Bachchan, Superman, Krrish, Jadoo etc.

Amul should give local advertisements apart from the advertisements given at the national

level. Local advertisement must mention the exclusive Amul shops of the city.

Try and change the perception of the people through word of mouth about Amul in

advertisements, because they are the best source to reach Children and families.

Though Amul chocolate advertisements are rarely shown on television yet many people

could recall it as per the data of research. It shows that there is only need to give

advertisement only to rememorize customers. Because Amul is very strong brand name.

Company should launch chocolate in new attractive packing to change image of Amul

chocolate in consumers mind.

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Company should introduce sales promotion schemes like free weight, pranky, tattoo, contest,

gifts etc.

Advertisement can be done with the help of animations that attracts children and teenagers

because chocolates are consumed largely in this segment.

Company should launch chocolates in new flavors like –

Mix Fruit

Pineapple

Elaichi

Coffee

Strawberry

Banana

Mango

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Conclusions

As we know, that Amul is very big organization and market leader in dairy products. It has

maximum market share in Milk, Butter and Cheese, which are its main/core products. As we

know, Amul is a co-operative organization but chocolate industry is a profitable industry we

cannot ignore it. With the help of research, company can find out its week points in chocolate

product and can increase its market share through rectifying mistakes. People have believed in

Amul product and they will accept its chocolates if effective actions are taken.

The survey resulted into following conclusions

Amul must come up with new promotional activities such that people become aware

about Amul Chocolates like Chocó zoo, Bindaas, and Fundo.

Quality is the dominating aspect, which influences consumer to purchase Amul product,

but prompt availability of other chocolate brands and aggressive promotional activities by

others influences the consumer towards them and also leads to increase sales.

In comparison to Amul Chocolate, the other players such as Cadbury, Nestle, and Perfetti

provide a better availability and give competition to the hilt.

Questionnaire

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Q1) Do you prefer chocolates? ( )

a) Yes b) No

Q2) In your family? Which age group persons prefer more Amul chocolates? ( )

a) Children b) Younger

c)Teenager d) Old

Q3) Which form of Chocolate you likes the most? ( )

a) Cadbury b) Nestle

c) Amul d) Others

Q4) How much do you spend weekly on chacolates? ( )

a) Below 50 RS b) 50 RS—100 Rs c) Above 100 Rs

Q5) What factor influencing u to purchase a Amul chocolates? ( )

a)Quality b) Quantity c) Price d) other_____________

Q6) Which factors gives you most satisfaction? ( )

a)Taste b) Flavor c) Brand d) Price

Q7) Which pack of chocolates u prefer more? ( )

a) Small b) Big c) Family pack d) Other

Q8) How you aware of Amul product? ( )a) Television b) News papers c) Internet d) Hoarding

Q9) OVERALL PURCHASE OF SUB- BRANDS OF AMUL CHOCOLATES ( )

SUB-PRODUCTS

EXCELLENT GOOD AVERAGE POOR

ALMOND BARFRUIT & NUT

MILK CHOCOLATE

BINDASS

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Q10) Which price of product u purchase more? ( )a)5-10 b)10-20 c)20-30 d) 30ABOVE

Q11) Will you accept new products launched by AMUL? ( )

a) Yes b) No

Q12) Frequency of consumption? ( )a) Once in a four night b) Daily c) Weekly d) Monthly

Q13) Which factor among the following affects the most in advertise

chocolate ments? ( )

a) Brand ambassador b) Emotions

c) Music d) Others

Q14) Do you recommend AMUL to others? ( )

a) Definitely will recommend b) Not sure

c) Probably will recommend

Q15) Any Suggestions:

------------------------------------------------------------------------------------------------------------

Bibliography

1. www.amul.com

2. www.amuldairy.com

3. www.google.com

4. www.marketresearch.com

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5. www.dairy.com

6. Research Methodology ( Harper W.Boyd, C. R. Kothari )

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