”Scope of below the line Promotion and Event Management Industry

in India”

A PROJECT REPORT

Submitted by

Subhadeep Paul

In partial fulfillment for the award of the degree

Of

‘Master of Business Administration’

IN

Marketing

University of Kalyani

May, 2011

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Declaration by Student_________________________________________________________

I, the undersigned, hereby declare that I am a Postgraduate MBA student of the University of Kalyani in the session 2009-2011. In fact the Project entitled ”Scope of Below the line Promotion and Event Management Industry in India”, as a part of my Winter project in the 4th semester of the MBA course in the University concerned. There is nothing denying the fact that the project submitted is absolutely an original one having expression of my hard work to the best of my sincerity and capability.

Subhadeep Paul______________________________________________________________

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Declaration by Internal Guide____________________________________________________

This is to certify that the work embodied in the project report titled ”Scope of Below the line Promotion and Event Management Industry in India”, done by Subhadeep Paul was conducted under my supervision.

Prof. Biswanath Ghosh_________________________________________________________

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Acknowledgement

It is a great pleasure to convey my heartfelt gratitude & cordial thanks to all who helped me a lot by extending their valuable suggestions & advice in starting the process of my Winter Project on “Scope of Below the line Promotion and Event Management Industry in India”, & leading it to a reality. In fact it would have been quite impossible for me to complete this project without their cooperation, able guidance, & supervision.

I extend my thanks & gratitude to my internal guide Prof. Biswanath Ghosh of Eastern Institute of Management for his grate cooperation & guidance in generating interest & confidence as far as my project is concerned.

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Executive Summery

I have made a project entitled “Scope of below the line Promotion and Event Management Industry in India”, which is a part of my MBA program. The project report is based on the kind of Promotions especially BTL promotion which I am experiencing as a part of a Event Management Company, Eyestopper. I have been working their since March 2011 situated near Gariahut, 193/R Picnic Garden Road. The project is based on my clear understanding of BTL promotion in India and the scope of Event Management Industry in the same market. The project is based on my experiential learning being a part of an Event Management Company and supported through secondary data collected from internet. My primary objective of this project is to understand the fourth “P” of marketing i.e. Promotion in depth and apply my acquired knowledge.

At last I have suggested necessary recommendation.

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Content

Page

Introduction……………………………………………………………… 7

Object of my Project…………………………………............................ 8

Methodology……………………………………………………………… 9

Subject Review……………………………………………………………. 10

Why Events?.............................................................................................. 11

Leading Event Management Companies in Kolkata……………………... 15

Questionnaire…………………………………………………………….. 16

Data Representation……………………………………………………… 17

Problem Analysis………………………………………………………… 21

Recommendation………………………………………………………… 22

Bibliography……………………………………………………………… 23

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Introduction

Success without marketing and promotion is almost impossible; it is not only applicable for a business, equally applicable for an individual. An individual need to market him to be successful, similarly a brand also needs promotion to be sold. Business does not exist in vacuum; it is surrounded by a big society. Marketing does not mean only selling, it means making relation with the society through customer relation making, advertisement, understanding the attitude of consumers and many other ways. Marketing is no doubt the key to success for every institution or organization.

My primary objective of this project is to understand the fourth “P” of marketing i.e. Promotion in depth and apply my acquired knowledge.

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Objective of my Project

The objective of my project is to…

1. Understand BTL Promotion in depth as much as possible

2. Understand Scope of Event Management Industry

3. Understand different Technique of promotion

4. Provide new ideas to promote brand

5. Improve performance of the Co. by applying the knowledge of marketing

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METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis.

Research in common parlance refers to a search of knowledge. One can also define research as a scientific search for pertinent knowledge or information on a specific topic. This is a systematic and objective identification, collection data, analysis, dissemination and use of information for the purpose of assisting management in decision making related the identification and solution of problem in the market

.

Approach of Research: According to Kothari there are two approaches in research methodology. First one is qualitative and second one is quantitative.

This project works on quantitative approach, which is reliable and beneficial in this type of project. In quantitative data collection or research, we seek to quantify the data and typically apply some form of statistical research or analysis. Quantitative research applies to quantify the data and generalized the result from the sample to the population of interest. In this research a large number of samples of representative cases are taken, the method of data collection is structured.

This project is based on various types of secondary data, and Primary (Followed sampling method with sample size of 50) data which are authentic and collected from various authorized sources.

Limitations: Some data are secondary data collected from several web sites; I believe them to

be true, but for primary data as they are collected through sampling method (sample size of 50)

the response may not follow the total set in ditto.

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Subject Review

Above the line (ATL), below the line (BTL), and through the Line (TTL), in organizational business and marketing communications, are advertising techniques.

In a nutshell, while ATL promotions are tailored for a mass audience, BTL promotions are targeted at individuals according to their needs or preferences. While ATL promotions can establish brand identity, BTL can actually lead to a sale. ATL promotions are also difficult to measure well, while BTL promotions are highly measurable, giving marketer’s valuable insights into their return-on-investment.'

Promotional activities carried out through mass media, such as television, radio and newspaper, are classed as "above the line" Promotion marketing promotion. "Below the line" promotion refers to forms of non-media communication or advertising, and has become increasingly important in the communications mix of many companies, not only those involved in fast moving consumer goods, but also for good (economics and accounting) industrial goods.

"Through the line" refers to an advertising strategy involving both above and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the "line".

The line

Used loosely, ATL still means mass media. However the media landscape has shifted so dramatically that advertisers have reconsidered the definitions of mass media.

For some marketers the "line" divides the realm of "Awareness or Attention focused marketing" and that of "Interest + Desire focused marketing". Since audience numbers in the Interest and Desire phase of the AIDA marketing /AIDA sales model narrow down to a fraction of the Awareness audience, the line could be drawn right below the awareness set of activities.

Loosely put, everything done prior to a customer's actual entry into a retail outlet is ATL for these retailers, as they define shop-floor activities as the true BTL set of activities which decide on which brand sells eventually.

It could also be argued this is a reverse definition, i.e. the Line came before the above definition did. The Line more likely refers to the profit line of the agency, with above the line activities being more profitable (or at least profitable) for advertising agencies, and below the line activities of little value to agencies since they didn't involve large budgets and hefty kickbacks from media buying houses.

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Below the line sales promotion

BTL sales promotion is an immediate or delayed incentive to purchase, expressed in cash or in kind, and having short duration. It is efficient and cost-effective for targeting a limited and specific group. It uses less conventional methods than the usual ATL channels of advertising, typically focusing on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates. BTL services may include those for which a fee is agreed upon and charged up front.

BTL is a common technique used for "touch and feel" products (consumer items where the customer will rely on immediate information rather than previously researched items). BTL techniques ensure recall of the brand while at the same time highlighting the features of the product.

Another BTL technique involves sales personnel deployed at retail stores near targeted products. This technique may be used to generate trials of newly launched products. It helps marketers establish one-to-one relationship with consumers while mass promotions, by definition, make it difficult to gauge consumer-response, except at the time of sales. Examples include tele-marketing, road shows, promotions, in- shop and shop-front activities, display units.

WHY EVENTS?

1. Brand Building

Creating awareness about the launch of new products/brand

Enormous nos. of brand/product are launched every month. Similarly innumerable new music albums, films, etc get released periodically. This tends to create clutter of product launches. The large no. of launches also leads to need to overcome the ³ooh-yet-another- product´ syndrome. The need to therefore catch the attention of the target audience at the time of launch becomes very important. Meticulously planned events for the launch of a product/brand seldom fail to catch the attention of the target audience.

Presentation of brand description to highlight the added features of product/services

Sometimes technological changes pave the way for manufactures or service providers toaugment their products. To convey this via traditional modes of communication to theexisting and potential customer base may sometimes be futile. Special service camps ofexhibitions are the perfect events that provide the opportunity for a two way interactionand error free communication. For Example, IMTEX, the Industrial Machine Tools

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Exhibition, is an event used by most machine tool manufactures to explain and highlightthe new and improved features of their product.

Helping in rejuvenating brands during the different stages of product life cycle

The massive amount of money that is spent during the introduction stage of products gets drastically reduced over time. By the time the product reaches its maturity/decline stage, the need for cutting down the budgets associated with the media campaigns, while at the same time maintaining the customer base is felt. And events offer the best medium for such a focused approach. It helps in generating feelings of brand loyalty in the products¶ end user by treating them as royally as possible.

Helping in communicating the repositioning of brands/products

Events help in repositioning exercises to be carried out successfully. In other words, events can be designed to assist in changing beliefs about firms/products/services.

Associating the brand personality of clients with the personality of target market

Citibank is an elite bank where people do banking with pride. Hence, other premiumbrands would like to associate themselves with the same audience so as to benefit fromthe rub-off effect. An exhibition-cum-sale event organized exclusively for Citibank creditcard holders, small merchandisers get to do business with the Citibank customers, as wellas build and maintain a premium image for them. Here Citibank acts as the eventorganizer and small merchandiser¶s acts as participants so that they can associate thepersonality of their products with the personality of Citibank customers.

Creating and maintaining brand identity

Australia-based Fosters Brewing Group’s Asian subsidiary in its plan to launch its bearbrand Fosters Lager in India choose the game of cricket ± in which the Aussies areknown as the best team in the world. By becoming the official sponsors of Australiancricket team on its India tour, Fosters hoped to achieve its goal of brand identity buildingand positioning itself at the premium end of the market.

Rennie Solomito, Marketing Manager for Coors Light (Beer Company) explains that inorder to increase awareness and personality of the brand, Coors Light tries to find thedistinguishing ³look of the leader´ in each market. Coors Light select events that are fastpaced and young minded, for example, Coors Light Silver Bullet Concert Series featuringartists like Bryan Adams and Celin Dion.

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2. Image Building

Over and above the brand identity that a company encourages, events such as The GreatEscape conceived by Mahindra and Mahindra, exclusively for the owners of their fourwheelers, the Armada, are an attempt to build a specific image of not only the corporate,but also the product, to let owners experience the thrill of four wheel driving, M&Mcharts out an off beat route that emphasizes the difference between normal and fourwheel driving, and lets the participant experience the high, one feels when steering andnavigating an Armada.

Coke is associated with Olympics since 1928; the rationale behind this is similar values and ideologies: International peace, brotherhood, standard of excellence and fun.

3. Focusing the Target Market

Helping in avoidance of clutter

Even though some events do get congested with too many advertisements, events stillprovide and effective means of being spotted. For example, Title sponsorship of a majorevent provides the sponsor immense benefit since the sponsors name is mentioned alongwith the event like Hero Cup, Femina Miss India, Lux Zee Cine Awards.

Enabling interactive mode of communication

Events generally provide an opportunity for buyers and sellers to interact. They also provide a foundation for exchange and sharing of knowledge between professionals. Example: Bang!Linux2000, Auto Expo.

Unparalleled footwear company NIKE ensures that it sponsors those events which willgive it a chance to create an emotional tie with the participants through onsite brandusage and product presentation.

4. Implementation of Marketing Plan

Enabling authentic test marketing

Events bring the target audience together, thereby creating opportunity for test marketingof products for authentic feedback. The seller can identify exactly the traits and othercharacteristics that are desired. For example, marketing events that the Frito-LayCompany used before it launched its WOW! Brand of potato chips.

Enabling focused sales and communication to a captive audience

In an event the audience is more or less bound to witnessing one particular event. In sucha situation it is very favorable for sellers to put forth their presentations without any

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diversions. Such a situation is very valuable given the ineffectiveness of traditionalmodes of communication in holding on to the attention of the audience.

For example, Burger King wanted to reach a young demographic in the New York area,

EMG (Event Marketing Company) helped them to create a 30-concert series at the NewYork Palladium. Burger King received onsite signage and distribution of bounce backcoupons.

Increasing customer traffic in stores

Events can be conceptualized to increase customer traffic. They can be customized tomake available, concepts ranging from retail store specific events to mega events like oneday international cricket tournament. For example, Nescafe 3-in-1 treasure hunt, co-sponsored by McDonald¶s is a combined effect in increasing the customer traffic as wellas increasing the awareness among the upper class of the existence of new McD’s outlets.

Enabling sales promotion

Weekly events conducted by Crossword Bookstore helps in generating more revenue during the weekends as compared to the revenue generated in the weekdays.

Help in relation building and PR activities

Practitioners of this marketing function believe that event marketing campaigns have theability to create long lasting relationships with closely targeted market segments.Relationship building is not restricted to end user customers but also targeted atenhancing new distributors and sales representative relations.

For example: Moksh organized by Ys Events & UX Events, is an annual technological festival held by NSCIT (Dwarka) has helped the sponsors in establishing their relationship with the Institute and ensuring that an image of being interested is created and nurtured.

Coke is sponsoring the Olympic since 1928. As coke does business in over 200 countries, the Olympics give the company the opportunity to identify its product with the foremost special event in the world.

Motivating the sales team

The need for interaction is not restricted to external customers only and end consumersare not always the focus of live media exercises. This is especially popular amongstpharmaceutical and other FMCG companies. For Example, during the cricket world cupheld in England HSBC introduced a unique pattern of motivating the sales force byawarding them runs instead of the traditional points system. This resulted in conversionof almost all of its employees into sales person.

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Generate immediate sales

Most events let firms install and exclusive boot and give the permission to exploit theopportunity to merchandise. Events such as the annual limited period discount sales fromWrangler and VanHeusen are authentic stock clearance and seconds sales aimed atgenerating immediate sales.

Generating instant publicity

An event can be designed to generate instant publicity upon the implementation ofmarketing strategy. The e-commerce start upHalf.com, which wanted to sell productssuch as CDs, Books, Movies and Games over the internet was up against major andstrong competition. The result of this publicity stunt started the ball rolling towardsgetting this company purchased by eBay for more than $300 million.

Enabling market database assimilation, maintenance and updating

By keeping track of the reach and its effectiveness as well as interacting with theaudience that actually turns up for the event, event sponsors can assimilate and authenticdatabase. The database can be used to track various marketing trends. Events can thenhelp in maintaining and updating the database.

Leading Event Management Companies in Kolkata

1. Eyestopper 2. Ad Mag 3. Mudra 4. Lowe Lintas

5. FCB Advertising 6. Adroit Infotech 7. Accord Advertising8. Percept Advertising

9. Concept Communication 10. Spontaneous 11. Universal Management Services

12. 141 Sercon 13. Kriti 14. Show Event 15. Future Inc Events and

Promotions 16. B2B Event Solution 17. Arun Singh Services

Questionnaire

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This is to acknowledge that the following survey is purely for educational purposes. The identity of the respondent will be kept confidential.

Please answer the below-mentioned questions as applicable.

1. Do the Company Involve in any promotional activity?

a. Yes b. No.

2. What is the ratio of ATL & BTL promotion (Approximately) in your organization?……………………………………………………………………………………………..

3. Does the Company involve in BTL promotion through Agencies?

a. Yes b. No4. If not, Why Not?

………………………………………………………………………………………………5. If Yes, (Q-3) did you find any problem working with event management agencies?

a. Yes b. No.6. If yes, what is it?

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

7. If yes (Q-5), share your experience regarding working with agencies with the help of 5 point rating scale (5 is highest & 1 is lowest).

…………………………………………………………………………………………………

8. How you come to know about event management Companies?

a. T.V Advertisement b. Personal Contact c. Online Media. d. Other

9. Do BTL promotions help in increase Companies Sales?a. Yes No.

Name: Companies Name:

Industry Details:

Data Representation

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Do the Company Involve in any promotional activity?

Does the Company involve in BTL promotion through Agencies?

Did you find any problem working with event management agencies?

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How you come to know about event management Companies?

Do BTL promotions help in increase Companies Sales?

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ATL and BTL ratio is 5:2 (Average)

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Problem analysis

1. Low awareness among the people.

2. Conservative mentality doesn’t allow people to accept major changes.

3. Lack of proper marketing and advertising by existing companies.

4. Performance of existing companies is doubtful, that is the reason, localities that organize

events, hire event management companies from Delhi and Mumbai.

5. Cost factor influences people to take partial services from event management companies.

6. Due to poor response and lack of cooperation from public the companies are not interested in

expansion.

7. Economies of scale not available to companies, therefore big players are less interested to

enter new cities.

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Recommendation

1. Companies need to focus on some particular kind of events that they will organize, this will

help them gain proficiency in their field, ultimately leading to cost saving.

2. People should be made aware about the concept through proper media coverage telling them

about the successful events and the benefits.

3. People should be made aware about the fact that hiring an event management company

would help them save time, efforts and cost.

4. Rather then looking at the press people as their competitor they must join hand with them to

share the cost and benefits also. Press people can get better exposure and provide the

companies advertisements on a lesser cost.

5. Due to innovative marketing tools the traditional marketing tools are redundant so Delhi

business class must also know that its time to switch over to the new tools like trade fares and

road shows rather then press advertising.

6. The charges for complete services should be reduced. As an example for catering services the

general market price is around Rs.75 per plate, but generally companies are charging around

Rs.140 per plate. Similarly the other services charges must also be reduced up to a viable

extent.

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Bibliography

1. www.google.com

2. www.asklalita.com

3. www.justdial.com

4. Marketing Research by C.R Kothari

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