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CH # Pg no.
1 Introduction
1.1 Introduction
2 Literature Review
3 Research Design
3.6 Limitations
4 Respondents’ profile
5 Analysis and Interpretation
6 Findings
7 Recommendations
8 Conclusion
9 Annexure
INTRODUCTION
It is no longer new news that today’s media landscape is quite complex and changing at a
rapid pace. It is widely known and understood that consumers have more choice and
more control over what media they use, when and how.
And there is nothing new in the understanding that consumers can be less loyal and are
sampling a great number of the many options, be they product, brand or media offerings,
available to them today.
Unlike previous generations, the media behaviors, attitudes and relationships of Gen Y
are often different than previous generations and need to be considered differently in the
design of communications plans.
In a world where consumers continue to control more of the media experience, in terms
of content and context, understanding media consumption, relationships and pathways are
critical to surrounding the consumer with a relevant and lasting brand experience.
By new media I am referring to a variety of primarily digital media offerings, ranging
from broadband internet access, to Bluetooth technologies, to TV on phone (a full
detailed list in Appendix 1).
The last decade has witnessed a boom in the quantity and variety of
marketing strategies and media outlets. The introduction of
guerrilla and viral marketing campaigns, as well as the development of
Internet social networking and blogging sites, has created a burgeoning landscape for
the purchase, sale and exchange of
products and ideas between companies and consumers, activists and citizens.
In this study I have tried to understand the demographic differences in digital media
adoption, use and preference and in general media consumption habits among
audience members to better formulate the strategy that many media planners are choosing
by going for novel and unique media.
FMCG: a definition
• FMCG is an acronym for Fast Moving Consumer Goods.
• ‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances that are
generally replaced less than once a year. The category may include pharmaceuticals,
consumer electronics and packaged food products and drinks, although these are often
categorized separately.
• Three of the largest and most well known examples of FMCG companies are Nestlé,
Unilever and Procter & Gamble.
Defining FMCG’s in the 2000’s
Traditionally, FMCG has been a term synonymous with supermarket packaged goods.
These products typically attract high volume sales at a low dollar value.
However the definition of fast moving consumer goods may in fact be in need of revision
due to changing consumer buying patterns and the evolution of retailing.
Supermarkets are offering consumers the choice of hot foods ready to go, chilled meal
components and fully prepared meals. As the boundaries blur between retailers of
groceries, liquor, petrol and fast foods we are seeing the rise of retail outlets offering a
variety of products as never before, reflecting market forces in the deregulated market
environment.
Habitual buying behavior and low consumer involvement often present challenges to the
marketer of FMCG brands. Certain other sectors may have these factors in common.
Although fast food companies and oil companies offer a unique blend of products with an
important service component and are in complete control of the selling environment, it
could be argued that their brand management programmers are becoming very similar to
those of packaged grocery brands.
For the purpose of this research the boundaries of the definition of fast moving consumer
goods have been widened to include wine, beer, fast food and Oil Company brands as
well as the more conventional food and non-food packaged goods.
Everyone can, and does, take part in Internet provided they have access to Internet.
This has led to shortening of adoption curve –and we have experts within a week.
The relevance to FMCG can be understood by the basic premise that a segment of the
customer base is spending time online performing a multitude of tasks for the obvious
benefits or functions of Internet which can be summed as –
Information
Entertainment
Leisure
Networking
Shopping
and Research
Smart brands become a part of their lives, not just the shopping trolley – i.e. what brands
should aspire for.
Consumers want increasing control of the relationship talk to them, but only if they
invite you to.
The consumer is increasingly in control, and are becoming much more demanding.
12 0 %
+5% + 5% In c r e a s e D u e t o
10 0 % + 8 % P o p u la tio n G r o w t h
80% -2 %
In c r e a s e D u e t o
TV Consumption Index
60% H o u s e h o ld T V
C o n s um ptio n
G r o w th
40%
B a s e li n e - T o d a y 's
20% T V C o n s u m p tio n
L e ss D V R U s a g e
0%
2 00 6 2 00 7 2 0 08 2 0 09 2 0 10 2 0 11
Net-surfers
New internet users usually young, hop from site to site. Impulsive
decisions and buying right off the net.
Net-buyers
Spend a lot of time online as part of their business activity, usually at their
workplace. This forms 60% of internet user population in India.
Net-consumers
Users who access network from homes- families, offers opportunities to
retail, entertainment industry. 30% of internet users.
INTERNET ADVERTISING
Although Internet advertising has become a major new issue for marketers, retailing via
the Internet and business-to-business applications are considered to be the two main uses
of e-commerce.
Interactive marketing which utilizes the Internet, CD-ROMs or interactive television for
public relations, advertising, promotion and direct mail is unlikely to be appropriate for
every product and situation but does represent a new opportunity (Swinfen-Green,1996).
There is general agreement that new technology is revolutionizing the way business is
conducted although few businesses are showing leadership in using the Internet to
develop their business and create competitive advantage.
MODELS OF INTERNET ADVERTISING
1. Banners
2. Sponsored Contents
4. Corporate Website
5. Interstitials
6. Superstitials
BANNER ADS
Banner ads were the first internet ads.
Banners are small graphics link placed on a web page. They represent the purest
application of traditional advertising skills- persuasive enticement in a very small space:
full , half, vertical, button, micro, skyscraper banners.
Click-through rates decline with no. of exposures- 1st exposure =3.6%, next two = 2.5%,
next 6 = 1%. Keep changing banners.
“Frame” web page is subdivided into regions- like windows – with separate scrolling GIF
– animated graphics info format increases banner effectiveness by 25% .
“Talking Head” on the banner are offering answer to intriguing question like “Do you
know how….”.
Cross-linking of sites is common i.e.. two advertisers agree to carry each other’s banners
Trick banner: A banner ad that looks like a dialog box with buttons. It simulates an error
message or an alert.
SPONSORED CONTENT
It is of two types :
CORPORATE WEBSITE
INTERSTITIALS (POP-UP)
They can be understood to be like in between like TV commercials.
These ads are played when the user decides to move to another page.
The ad never competes for the bandwidth with the web content.
some services.
Key Facts :
SE advertisers = 41,000
MOBILE MARKETING IN INDIA
Key Facts :
PRINT 7000
TV 6000
OUTDOOR 700
INTERNET 200
MOBILE 8
LITERATURE REVIEW
Several studies have been undertaken related to the topic of this research. A few
important ones which guided the course of this study are briefly described below :
ComScore's study (2002)i confirmed that online marketing can increase purchase
intent, brand awareness and advertising awareness among Consumer Packaged Goods
(CPG) consumers.
Performed in conjunction with Nestlé Purina PetCare Company, comScore's research was
based on a study of integrated online and offline behavioral data for a large sample of
opt-in consumers – a global panel of more than 1.5 million continuously measured, opt-in
Internet users.
The study was designed to address three core questions frequently raised by CPG
marketers in weighing the benefits of incorporating the Internet into their marketing mix:
• Do people that buy specific brands actually use those brands' Web sites?
• Should specific brands use the Internet as an advertising vehicle to reach their
core consumers?
• If online marketing is a smart investment for a brand, with which Web sites
should partnership and advertising dollars be invested?
• Web site succeeds in attracting consumers who buy products of that company.
Such consumers are almost 2/3 more likely than the average Internet user to go to
use the web site.
• The banner ads raised consumer awareness of the brand taking the brand to be
top-of-the mind.
• This exposure resulted in their likelihood of buying that brand better than those
who didn’t see the advertising.
As this shift in consumption behavior increases, massive change is underway. This will
ultimately transform the content production and distribution marketplace around the
globe. Advances in distribution technologies and devices is enabling new content
offerings, which is driving new consumption habits among consumers of all ages in all
geographies.
While all consumers are joining the move toward new modes of consuming content,
younger consumers are spearheading this shift, especially those under 25. These
consumers are more dissatisfied with current television options and more likely to watch
content on alternative devices, and more likely to prefer watching content on demand.
Deighton A. John (2007)iii examined the sense that erupted ten years ago, not
misplaced that the Internet was going to disrupt the settled practices of marketing. The
new marketing tools could be imagined as very powerful, very inexpensive, and very
responsive direct marketing tools but which would turn the slow, clumsy and artless
action-reaction sequence of then telephonic and envelope responses into many cycles of
deft action and reaction.
The questions they asked were - Where would the center of marketing power reside after
the Internet blossomed? Would the status quo survive, with power continuing to sit with
the producer as owner of brands, or did the Internet portend revolution, with devolution
of power to the channel, commoditization and diminution of the authority of brands?
‘Who owns the customer, brand or channel?’
They confirmed some of the emergent interactive forums over others from the
perspective of marketing. In particular, the most potent of the new media are those that
enable cultural exchange, media currently exemplified by the functionality of Youtube
and Facebook. What matters, this analysis concludes, is that the form of interactivity
most attractive to marketing is that which can facilitate peoples’ identity projects and
contribute to the collective making of meaning.
Jashen Chen (2008)iv proposes that five VEM elements have positive effects on both
the consumer’s browse and purchase intentions which will have a positive effect on
customer loyalty.
When the web site’s atmosphere appeals to the consumer’s senses, interaction, pleasure,
flow and community, positive attitudes toward the business and its products and services
will develop. Consequently, these positive attitudes increase his/her online browse and
purchase intentions, which lead to customer loyalty. The model proposes that three
moderating variables, economic and convenience (shopping) orientation and Internet
experience, enhance the effects of the VEM elements on browse and purchase intention.
(Lillian Clark)v, researched differences between online consumer from its terrestrial
counterpart studying parameters of technology adoption, convenience, empowerment and
market dynamics other than trust and loyalty.
While TV produced weak intent to buy on its own, exposure to an online ad for the same
product shot the likelihood of intent. Adding online exposure to print campaigns similarly
impacted consumer intent.
The study examined a number of product categories, including beer, apparel, automotive,
consumer electronics and toiletries. Results varied between product types, but all showed
lift when two or more media were included.
Intent to buy also went up when brand names were perceived to be of high quality,
suggesting that, like persuasive and ubiquitous ad efforts, brand equity also plays a role in
shaping consumer behavior.
Magna (2008)vii examined the advent of new media and digital revolution and gave
out the verdict that traditional media specifically TV will never die.
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Newspapers
TV
Radio
Internet
Magazines
Young Audiences' TV Viewing Trends
29.0
Hours of Viewing Per Week
27.0 P2-5
25.0
P6-11
23.0
21.0
P12-17
19.0
17.0
P18-34
15.0
1991-92
1992-93
1993-94
1994-95
1995-96
2002-03
2003-04
2004-05
2005-06
2006-07
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
Using unique media vehicles and messages to differentiate oneself has become an order
of the day in matured urban markets where visibility is difficult to find. More and more
budget is allocated to these activates in order to lure the consumers.
In such a scenario, it is very essential to study how consumers make their choices in
FMCG category where there are several brands in the consolidation set of a consumer.
The financial risk being low, consumers do not mind switching from one brand to another
due to sales promotion offer.
STATEMENT OF PROBLEM :
1) To study consumer preferences with respect to online marketing and novel media.
Method of Sampling:
1. Probability Sampling
2. Non-Probability Sampling
• Systematic Sampling
• Stratified Sampling
• Sequential Sampling
• Convenience Sampling
• Quota Sampling
• Judgment Sampling
• Panel Sampling
Sampling has been used. Judgment Sampling method has been adopted. Area
Sampling method and Snow Ball Sampling methods were also used for the research
process.
Data collection
- Questionnaire B
Sample size : 20
Participants for the groups were selected on the basis of two characteristics: age and
tendency toward either traditional or non-traditional media usage. The three age
categories of interest for this research were Gen Y (ages 18-29), Gen X (ages 30-44).
An individual fell into either the high media consumer or low media consumer group
based on the media usage information they gave.
“High” media consumption was defined as exposure to any given media for more than
four hours a day, while “Low” media consumption was marked by media consumption
for lesser than four hours.
Individuals in the Guru Gobind Singh Indraprastha University campus area were
randomly called in order to be screened. with 2 sets of questionnaires which were
administered to consumers and companies (media agencies in particular).
This questionnaire was administered to 100 people making sure that they had access to
internet and mobile phone.
So, this study really does not focus on general population for Internet itself is in its
infancy in our country with just a 3% penetration. PC penetration itself will take time to
hit 20%.
Keeping this in view one can safely assume this sample of 150 people to represent the
population which consumes novel media online, and is connected wireless and
assimilates and acts upon only that information which it finds worthy enough of after
being exposed to various forms of media. The second questionnaire was administered to
professionals in different media agencies
LIMITATIONS
• A certain degree of control was sacrificed for the opportunity to collect data in
a natural environment.
• In terms of this study, the loss of control may have impacted survey response,
especially for those questions that dealt with attitude toward the ad.
• Because the information collected through the focus groups is based on a small
group of respondents, it is not projectable to the entire population.
• Respondents tend to lay about their income those results in statistical errors.
RESPONDENT PROFILE
Out of the 150 respondents interviewd through questionnaire Interview, 55% male
and the rest 45% were females.
2. Marital Status
Most of the respndents about 80% were not married only 20% were married.
3. Eductional and Occupational Profile
All the respondents were graduate with 80% students and 20% employed.
4. Age profile
AGE GROUPS :
18 to 29
30 to 44
45 o 64
65 or older
Interpretation
The sample size was 150. 89% of the respondents fall in the age bracket of 18-29. 6% of
the respondents fall in the age bracket of 20-44. 5% of the respondents fall in the age
bracket of 45-64. None of the respondents fall in the age group of 65 and above.
i
ComScore Study, 2002, “Strong Connection Between Online Marketing,
Offline Buying And Purchase Intent”, Advertising Research Foundation's 48th
Annual Convention, New York City.
http://www.comscore.com/press/release.asp?press=69
ii
Accenture Global Research and Insights on
http://www.accenture.com/Global/Research_and_Insights/By_Industry/Media_an
d_Entertainment/Entertainment/BroadcastSurvey.htm
iv
Jashen Chen & Russell K.H. Ching, 2008, “Virtual Experiential Marketing on
Online Customer Intentions and Loyalty”, Proceedings of the 41st Hawaii
International Conference on System Sciences - 2008
v
Lillian Clark, Peter Wright , “ review of common approaches to Understanding
online consumer behavior”, University of York, Heslington, York.
http://www.marketingvox.com/advertiser-perceptions-cross-media-builds-
purchase-intent-038988/
vii
Magna, “Evolving media economy”, www.magnainsights.com
QUSETIONNAIRE A
3. How much time do you spend online and watching TV? Please mention separately.
4. Rank the following in terms of usage. Rank 1 for the most used and 6 for the least.
• TV
• Newspaper
• Magazines
• Radio
• Internet
• Mobile
5. How do you feel when an ad or pop up appears when you are online?
• Irritated
• Ignore
• Hindrance to Work
• Excited
• Neutral
- Male -Married
- Female -Single
• 18 to 29
• 30 to 44
• 45 to 64
• 65 or older
• Home
• Work/ College
• Cyber café/ Web Kiosk
Cite as many ads that you like, love or remember at the moment…Please mention where you saw it –
TV, Billboard, Internet etc.
APPENDIX #2 – QUSETIONNAIRE A
1. Have you witnessed a change in marketing strategies with new media outlets?
- Yes
- No
- Quantity wise
- Variety wise
- Both
4. How would you classify your consumers based on the media consumption?
- High media consumers (Individuals exposed to media for more than four hours a day)
- Yes
- No
6. Do you think advent of new media has led consumers to become resistant towards
traditional marketing tactics ?
- Yes
- No
8. Do you see an initial media consumption event pushing the user to consume another media (for
example, if reading a magazine pushed the reader to watching television or go to the Web, etc.).
Please site such possible events you acknowledge.