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1.

1 AN INTRODUCTION TO BCL INDUSTRIES &


INFRASTRUCTURE LTD.
Mittal group started of its business activities in 1976 at Bathinda (Punjab) with the
installation of a small solvent extraction unit by Sh. D.D. Mittal under the name &
style of Bathinda chemicals and institutional advertisements are not aimed at
consumers. Where as it is aimed at shareholders creditors and various sets of public
Vanaspati Mills Pvt. Ltd in the early 80s the business was headed by his sons Sh.
Rajinder Mittal and Sh. Vinod Mittal with the Expansion-Cum-Modernization plans
undertaken from time to time the unit has been established as an integrated edible oil
complex, one of the biggest in North India. In the 1990 the group entered into the
business of real estate as developers and colonizers and since than the group has
undertaken large residential and the group has now become a trusted name in the
business of real estate in the North India competing with big builders like Ansal
Group. In the year 2000 Mr. Rajinder Mittal, Chairman-Cum- Managing Director of
Bathinda Chemical Limited took over information technology company namely
QPRO Infotech Ltd., Chennai. In the last five years this company has made new
inroads in the business of Information Technology, and registered fantastic growth.
Encouraged with the success of QPRO Infotech Limited the company took over
another Information Technology overseas company namely M/s Santype International
Pvt. Ltd., Salisbory (U.K) in 2001. The group has now main business activities at
Bathinda & Jalalabad (Punjab) Delhi, Gurgaon, Chennai and overseas offices at
Singapore and Salisbory (U.K).

1.1.1 Edible Oil Business


Mittal family, Sh. D.D. Mittal & Sh. Rajinder Mittal has the business of Edible Oil
with the installation of a solvent Extraction Plant at Bathinda, with the help of Punjab
Financial Corporation in 1976 under the name & style of Bathinda Chemicals &
Vanaspati Mills Limited which has now become BCL Industries & infrastructures
Ltd.. The management under took various Expansion & Modernization plans with the
help of PSIDC, Chandigarh and its bankers Punjab National bank, from time to time.
In the last 10 to 12 years the company has grown too many flods under the
stewardship of its Managing Director Sh. Rajinder Mittal. The company has now
biggest oil complexes in North India comprising an Oil Mill, two Solvent Expansion

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Plants, one Rice Sheller, one Chemical Refinery and one Vanaspati Plant of more
than 500 MTs capacity of raw-materials. All the plants have been running at full
capacity. The company paid off its entire term loans availed under various Expansion-
Cum-Modernizations and now is totally debt free company. The company brought its
maiden public issue of 29, 00,000 shares of Rs.10/- each at a premium of Rs.5/- each
in 1993, which has Mittal family took over another edible oil plant of Refinery &
Vanaspati of 50 Mts per day in 2003 at Jalalabad, Distt. Ferozepur (Pb.) under the
name of Kissan Fats Limited (Closed Held). After the take over, anew Solvent
Extraction plant of 125 MTPD has been installed in 2004 with the financial assistance
of PNB. This unit has also been running successfully after the take over.
Another Proprietorship concern M/s R.K. Exports, Bathinda owned by Sh. Rajinder
Mittal has been established in the year 1992 and is doing business of Import &
Exports of edible oil
& various food stuff items. The firm is having only trading activities. The company
dealing in Edible Oils are having annual turnover of more than Rs.500 crores. The
main company M/s Bathinda Chemical Limited has been dealing with one banker,
Punjab National Bank from fund the last 25 years. At present the group is having
more than Rs.35 crores based and non fund credit facilities for the manufacturing &
trading of edible oils. The group is having one of the largest production capacity of
edible oils in North India now and is enjoying top class credibility in the business of
Edible Oils in the country.

1.1.2 Real Estate Business


Mittal group has stepped into the business of real estate in the year 1990 as developers
and colonizers and undertaken a project namely Rishi Apartment at 4, Battery Lane,
Rajpur Road, Civil Lines Delhi for the construction of 3,4 and 5 bedroom Residential
Flats under its company M/s Cosmos Builders & Promoters Ltd. Delhi. Since the site
was located in the heart of Delhi and very near to Inter State Bus Terminals & Tees
Hazari Court, the project remained highly successful and the flats were sold like hot
cakes. Encouraged with the successful of the first project Mittal Group expanded its
business of real estate and undertaken various project at Delhi, Gurgaon and the other
places. Now the group has undertaken projects in Punjab at Bathinda and Mohali also.
The allied companies / partnership concerns (under the same management) in the
business of real estate are as under:-

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M/s Sarva Priya Constructions Pvt. Ltd. New Delhi
M/s Sarva Priya Developers Pvt. Ltd. New Delhi
M/s Chavan Rishi Resorts Pvt. Ltd. New Delhi
M/s Chavan Rishi International Ltd Delhi
M/s Cosmos Builders & Promoters Ltd. Delhi
M/s Ganpati Builders & Developers Bathinda
M/s Ganpati Associates Bathinda
M/s Ganpati Estate Bathinda

Since stepping into the business of real estate Mittal group has undertaken &
completed successfully various residential and commercial sites having worth crore of
Rupees at Delhi, Haryana and Punjab. Many of the projects have already been sold /
possession handed over the buyers. Ate present Mittal group boasts of a good name in
real estate business in north India and the management now is having ample
experience in the line of real estate besides Edible Oils manufacturing. A list of
projects undertaken by the Mittal group under its different companies / partnership
(completed & in- progress) is as under.
1.1.3 Information Technology Business
Keeping in view the revolution in information technology industry in the year 2000,
Sh. Rajinder Mittal (Chairman and Managing Director, Bathinda Chemical Limited)
took over a Chennai based company namely QPRO Infotech Limited engaged in the
business of electronic typesetting software development and database management.
The company has been managed by thoroughly professional people. In the last five
years the company has registered tremendous growth and in the financial year 2003-
04 the company earns more than Rs.500 lacs total income from services and Rs.113
lacs as net profit after tax.
Riding on success of QPRO Infotech Limited the company took over another E-
publishing overseas company namely M/s Santype international limited, having its
registered office at Satlisbory (U.K) in the year 2001 with the take over this foreign
company the management has been able to expand its business of electronic type
settings, software development and data base management in Europe. The business of
the company has been expanding by leaps and bounds every year.

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1.1.4 Multiplex Complex - Cum - Shopping Mall
Mittal group has now undertaken a project for the construction of a Multiplex
Complex Cum Shopping Mall at Bathinda under the name of its partnership concern
M/s Ganpati Builders & developers, Goniana Road, Bathinda having the following
partners.

M/S Bathinda Chemical Limited 80% Share


(Sh. Rajinder Mittal)

Sh. Jiwan Bamsal 20% Share

The firm purchases a land of about 7000 Sq. Mtrs. at Goniana Road, Bathinda, at that
time hotel Panj Rattan is running on this land. The panning is to abolish the hotel
building to construct an ultramodern Hi-Fi Multi Complex Cum Shopping Mall on
this land. The site is located in the heart of the city, opposite three cinema halls at
goniana road Bathinda, only 300 Mtrs away from rose garden and only 2 Km away
from main bus stand. The saleable area in the multi complex cum shopping mall will
be about 250000 Sq. ft approximately and the estimated cost of project is Rs.25
crores.
Bathinda city is the fastest growing city of Punjab state at present having population
base of approximately Rs.5 lacs. The city is already having big industries like Punjab
Govt. Thermal Plant, National Fertilizers Limited Vardhman Polytex Limited, Gujarat
Ambuja Cement Plant. Asian biggest military cantonment area thousands of military
personnel is in Bathinda.
Another unit of Punjab Govt Thermal Power Plant at Village Lehra Mohabbat, only
25 Km from Bathinda. Another mega project of Central Govt. namely Guru Gobind
Singh Petroleum Refinery with the proposed investment Rs.11000 crores has already
been sanctioned in Distrist Bathinda, which is 30 km away from Bathinda City. With
the installation of this refinery in Bathinda District, it is expected that there will be
tremendous growth of Bathinda city and surrounding area so far as real estate
business is concerned.

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The area of Bathinda as basically agricultural based having crops like cotton, paddy
and wheat. The business is namely on these products. The people of Bathinda are rich
and the market has been hold by Aggarwals. In the last few years, the education
standard of the city has grown too many folds with the establishment of an
Engineering College, Law College and a Medical College.

The purchase capacity of people has been increased with good crops in the last 4-5
years and also increases in the income of salaried class. Personnel from military
cantonment also require good shopping complex and branded item in Bathinda. Rich
& well to do people from surrounding area visit regularly to Bathinda city for
purchasing and to requirement of a Multi Complex Cum Shopping Mall at Bathinda is
to say it will be the first multi complex cum shopping mall of its kind In Malwa
Region in Punjab.

1.2 INTRODUCTION TO INDIAN EDIBLE OIL INDUSTRY

The Indian vegetable oil economy is the world’s fourth largest after the US, China
and Brazil, harvesting about 25 million tons of oilseeds against the world. Since 1995,
Indian share in world production of oilseeds has been around 10 percent.
Although, India is a major producer of oilseeds, per capita oil consumption in India is
only 10.6 kg/annum which is low compared to 12.5 kg/annum in China, 20.8
kg/annum in Japan, 21.3 kg/annum in Brazil and 48.0 kg/annum in USA.
Vegetable oil consumption has increased following a rise in household incomes and
consumer demand. India imports half of its edible oil requirement, making it the
world’s third-largest importer of edible oil. The country buys soya oil from Argentina
& Brazil and palm oil from Malaysia & Indonesia. Currently, India accounts for 11.2
per cent of vegetable oil import and 9.3 per cent of edible oil consumption.

1.2.1 Market Trends:


India is the world’s fourth largest edible oil economy, after USA, China and Brazil,
with 15,000 oil mills, 711 solvent extraction units, and 264 vanaspati plants; and over
1,000 refineries employing more than one million people.

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The total market size is at Rs. 600 billion and import-export trade is worth Rs.130
billion.
India being deficient in oils has to import 40% of its consumption requirements.
The domestic turnover of the vegetable oil industry is Rs.70,000 crores and import-
export turnover of about Rs.16,000 crores per annum, consist of Rs.10,000 crores for
import of edible oils & Rs.6,000 crores for export of oil meals, oilseeds castor oil,
groundnut oil & vegetable fats of tree borne oilseeds.
India's edible oil industry is growing at an compounded annual growth rate (CAGR)
of 90 per cent. By rationalizing the import duty, the growth rate of sector may rise up
to 150 per cent by 2012.
The total size of the olive oil market in India is around 4 million euro in terms of
value and 2,000 tonnes in terms of volume, out of which Spanish companies
command a share of about 60%.

1.3 PRODUCTION OF OILSEEDS IN INDIA

India is one of the largest producers of oilseeds in the world and this sector occupies
an important position in the agricultural economy and accounts for an estimated
production of 28.21 million tonnes of nine cultivated oilseeds during the year 2009-
10. India contributes about 6 -7% of the world oilseeds production.

1.3.1 Importance of Edible Oils in the Country’s Economy

Oilseeds and edible oils are two of the most sensitive essential commodities. India is
one of the largest producers of oilseeds in the world and this sector occupies an
important position in the agricultural economy and accounting for the estimated
production of 28.21 million tonnes of nine cultivated oilseeds during the year 2007-
08. India contributes about 6-7% of the world oilseeds production. Export of
oilmeals, oilseeds and minor oils has increased from 5.06 million Tones in the
financial year 2005-06 to 7.3 million tons in the financial year 2006-07. In terms of
value, realization has gone up from Rs. 5514 crores to Rs.7997 crores. India
accounted for about 6.4% of world oilmeal export.

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1.4 TYPES OF OILS COMMONLY IN USE IN INDIA
India is fortunate in having a wide range of oilseeds crops grown in its different agro
climatic zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed,
nigerseed/castor are the major traditionally cultivated oilseeds. Soyabean and
sunflower have also assumed importance in recent years. Coconut is most important
amongst the plantation crops. Efforts are being made to grow oil palm in Andhra
Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andaman & Nicobar
Islands. Among the non-conventional oils, ricebran oil and cottonseed oil are the most
important. In addition, oilseeds of tree and forest origin, which grow mostly in tribal
inhabited areas, are also a significant source of oils. Figures pertaining to estimated
production of major cultivated oilseeds, availability of edible oils from all domestic
sources and consumption of edible oils (from Domestic and Import Sources) during
the last few years are as under: -

( In lakh Tonne)

Oil YearProduction ofNet availability of edibleConsumption of Edible Oils


(Nov.- Oct.) Oilseeds oils from all domestic(from domestic and import
sources sources)
2001-2002 184.40 54.99 96.76
2002-2003 206.63 61.46 104.68
2003-2004 148.39 46.64 90.29
2004-2005 251.86 71.40 124.30
2005-2006 243.54 72.47 117.89
2006-2007 279.79 83.16 126.04
2008-2009 242.89 73.70 115.87
2009-2010 297.55 86.54 142.62

Source :

1. Production of oilseeds : Ministry of Agriculture.


2. Net availability and consumption of edible oils: Directorate of Vanaspati,
Vegetable Oils & Fat.

1.5 CONSUMPTION PATTERN OF EDIBLE OILS IN INDIA

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India is a vast country and inhabitants of several of its regions have developed
specific preference for certain oils largely depending upon the oils available in the
region. For example, people in the South and West prefer groundnut oil while
those in the East and North use mustard/rapeseed oil. Likewise several pockets in
the South have a preference for coconut and sesame oil. Inhabitants of northern
plain are basically hard fat consumers and therefore, prefer Vanaspati, a term
used to denote a partially hydrogenated edible oil mixture. Vanaspati has an
important role in our edible oil economy. Its production is about 1.2 million
tonnes annually. It has around 10% share of the edible oil market. It has the ability
to absorb a heterogeneous variety of oils, which do not generally find direct
marketing opportunities because of consumers’ preference for traditional oils such
as groundnut oil, mustard oil, sesame oil etc. For example, newer oils like
soyabean, sunflower, ricebran and cottonseed and oils from oilseeds of tree and
forest origin had found their way to the edible pool largely through vanaspati
route. Of late, things have changed. Through technological means such as
refining, bleaching and de-odouraisation, all oils have been rendered practically
colourless, odourless and tasteless and, therefore, have become easily
interchangeable in the kitchen. Newer oils which were not known before have
entered the kitchen, like those of cottonseed, sunflower, palm oil or its liquid
fraction (palmolein), soyabean and ricebran. These tend to have a strong and
distinctive taste preferred by most traditional customers. The share of raw oil,
refined oil and vanaspati in the total edible oil market is estimated at 35%, 55%
and 10% respectively.

1.6 MAJOR FEATURES OF EDIBLE OIL ECONOMY

There are two major features, which have very significantly contributed to the
development of this sector. One was the setting up of the Technology Mission on
Oilseeds in 1986. This gave a thrust to Government's efforts for augmenting the
production of oilseeds. This is evident by the very impressive increase in the
production of oilseeds from about 11.3 million tonnes in 1986-87 to 24.8 million
tonnes in 1998-99. There was some setback in 1999-2000 because of the un-
seasonal rain followed by inclement weather. The production of oilseeds declined
to 20.7 million tonnes in 1999-2000. However, the oilseeds production went up to

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27.98 million tones in 2005-06 and was 24.29 million tonnes during 2006-07 oil
year. As per the 3rd advance estimate by Ministry of Agriculture dated 22.4.08 the
production of nine major oilseeds is estimated to be about 28.21 million tonnes
during 2007-08. The other dominant feature which has had significant impact on
the present status of edible oilseeds/oil industry has been the programme of
liberalization under which the Government's economic policy allowing greater
freedom to the open market and encourages healthy competition and self
regulation rather than protection and control. Controls and regulations have been
relaxed resulting in a highly competitive market dominated by both domestic and
multinational players

1.7 DEMAND FOR EDIBLE OILS IN INDIA


Indian food industry continues to show a strong commitment to oils imports following
drop in domestic demand, says industry body. Fresh figures from the Solvent
Extractors Association of India (SEAI) revel that edible oils imports increased by
some 24 percent for the first six months to April 2008. Imports jumped to 2.4 million
tonnes in the first half of 2007-2008 up from 1.92 million tonnes for the same period
last year.
Imports are expected to be much higher this year because of a drop in domestic
oilseeds production, “said B.V. Mehta, executive director of SEIA adding that India
was likely to import about 500,000 tonnes per month this year.
Purchases of edible oils by India are expected to reach around 6 million tonnes this
year from 4.4 million tonnes in 2006-2007 Mehta added reports the American
Soybean Association. Soya oil in particular saw strong growth. Imports of crude soy
oil leapt to 835.352 tones in the November 2006 to April 2007 period up from
336.990 tonnes in a year earlier.
Crude palm oil purchases rose 10.8 percent to 1.95 million tonnes from 1101,520
tonnes. The processed food market is enjoying decent growth in India, pushing up
demand for oils. The Indian branded food and drinks market grew last year by over 5
percent, according to recent figures from ACNielsen, outpacing the global the global
average growth rate 4 percent.
Supporting this buoyant overall trend, growth rates for individual product categories
within the Indian market too, reflect aggressive performance within the similar period.

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Status of the Vegetable Oil Industry

(As on January 2009)

Type of Vegetable Oil No. Of Annual Capacity Average Capacity


Industry Units (Lakh MT) Utilisation
1,50,000 425
Oilseed Crushing Units 10-30%
(Approx) (In terms of Seeds)
419
Solvent Extraction Units 795 (In terms of Oil-bearing 34%
Material)
Refineries attached with 51
127 45%
Vanaspati Units (in terms of oil)
Refineries attached with 37
226 29%
Solvent Units (in terms of oil)
35
Independent Refineries 590 36%
(in terms of oil)
123
Total Refineries 943 37%
(in terms of oil)
58
(in terms of Vanaspati,
Vanaspati Units 268 19%
Bakery Shortening &
Margarine)

Oilseeds crushing units include crushing units in the small-scale sector as also in the
organised sector. The capacity utilisation generally ranges from an average of 10% for
the ghanis (small scale sector) to around 30% in case of the expellers in the organized
sector.

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1.8 ADVERTISISNG
Advertisement is the art of influencing human action, the awakening for the desire to
possess your product. Advertisement consist of all activities in presenting a group a non
– personal, oral or visual, opened sponsored message regarding a product, service or
idea.
1.8.1 Features of Advertising
It is a unique means of non- personal or mass communication announcing the sales of
goods or services. It can help to introduce a new product quickly. It is an openly
sponsored sales message regarding any product or service, i.e. the sponsor can be
identified
It is a paid communication paid by the sponsor to the media owner.
1.8.2 Importance of Advertising in Marketing
Advertising by facilitating mass production and mass distribution, has provide immense
employment opportunities to people. It is responsible for creating and delivering rising
standard of living to innumerable people. It has possible tremendous industrialization
and economic development in many countries. In the marketing program of a business
enterprise, advertising is an indispensable tool supplemented by salesmanship and sales
promotion. Advertising is to business as what steam, electric or nuclear energy is to
industry. The wheels of industry & commerce cannot move with desirable speed
without propelling power of promotion mix.
Advertising programme as an integral part of promotion campaign may have one or
more Specific Objectives:-
• Promotion Of New Product
• Support To Personal Selling
• Immediate Buying Section
• Brand Patronage
• Resold Goods

Advertising is a powerful promotion tool to establish and retain brand loyalty and even
store patronage provided the product itself do not suffer from quality deficiencies errors
in design or other handicaps and the retailers do not have deterioration in their customer
services.

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1.8.3 Kinds of Advertising:

a) Institutional Advertising
Where the advertising is project the image of a company or its services, it is known
as institutional advertising. It is not at all product oriented.

b) Primary Demand Advertising


It is intended to stimulate primary demand for a new product. It is heavily utilized
during the introduction stages of the product life cycle.

c) Shortage Advertising
Where there is short supply of products shortage advertising is resorted to, example
oil crisis. In such kind of advertising new promotional objectives may be
incorporated such as:
 Educating the people the most economic use of the product.
 Marketing appeal to save resources
 To reduce customer pressure on the sales force.

d) Media
Paying people to hold signs is one of the oldest forms of advertising and 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 pop-ups, skywriting, bus stop benches,
human billboards, magazines, newspapers, town criers, sides of buses, banners
attached to or sides of airplanes ("logojets"), 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 , 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.

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e) Covert Advertising
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
Anderton owns a phone with the Nokia logo clearly written in the top corner, or his
watch engraved with the Bulgari logo. 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.
f) Television Commercials
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
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 or used to
replace local billboards that are not relevant to the remote broadcast audience. More
controversially, virtual billboards may be inserted into the background where none
exist in real-life. Virtual product placement is also possible.
g) 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.

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h) Celebrities
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 favorite 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.

1.8.4 Different Aspects Of Advertising:

Effects of Advertising
In today’s scenario advertising is a very good source of entertainment. According to an
American survey, in a single day a person is bombarded with 5000 ads in USA. Due to
repetition they start learning them unconsciously. As every other thing in this world,
advertising also have lots of pros and cons i.e. advertising has both positive and
negative effect on consumer. Following points advocate the statement.

Positive effects of advertising:


• Advertising is important source of communication as it both informs and
transforms the information from producers to customers.

• Advertising provide price\value information to customer thus help in raising


standard of living.

• Advertisements inform customers about new products and help them in


comparison between different products

• Advertising provide customers with relevant information that aids in


decision making.

• Attractive and interesting ad’s fosters the sales of a product and services
concerned.

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• Advertising today is more informative, amusing and entertaining, thus it
makes people more aware.

• In today’s scenario it is impossible to move in the market both for the seller
and for customer.

Negative Effects of Advertising:

• Hyper-commercialism and the commercial tidal wave -Criticism of


advertising is closely linked with criticism of media and often interchangeable. They
can refer to its audio-visual aspects (e. g. cluttering of public spaces and airwaves),
environmental aspects (e. g. pollution, oversize packaging, increasing consumption),
political aspects (e. g. media dependency, free speech, censorship), financial aspects
(costs), ethical/moral/social aspects (e. g. sub-conscious influencing, invasion of
privacy, increasing consumption and waste, target groups, certain products, honesty)
and, of course, a mix thereof.

• The price of attention and hidden costs-Advertising has developed into a


billion-dollar business on which many depend. In 2006 391 billion US dollars were
spent worldwide for advertising. In Germany, for example, the advertising industry
contributes 1.5% of the gross national income; the figures for other developed countries
are similar. Thus, advertising and growth are directly and causally linked. As far as a
growth based economy can be blamed for the harmful human lifestyle (affluent society)
advertising has to be considered in this aspect concerning its negative impact, because
its main purpose is to raise consumption.

• Most of the ads today are unethical, misleading and surrogate.

• The commercialization of culture and sports-Performances, exhibitions,


shows, concerts, conventions and most other events can hardly take place without
sponsoring. The increasing lack arts and culture they buy the service of attraction.
Artists are graded and paid according to their art’s value for commercial purposes.
Corporations promote renown artists, therefore getting exclusive rights in global
advertising campaigns.

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• By using too much exaggeration in ads, advertisers makes tall but fake
claims that are just to attract customers

• Advertisements target vulnerable segment of society i.e. children and old age
people who are unable to differentiate between ethical and unethical.

1.8.5 Direct Marketing:


Private courier services are growing strongly and the telecommunications sector is
opening up for a range of modern services, until goods can be ordered conveniently and
delivered with certainty, direct marketing will be limited to door-to-door sales. An
inefficient state-owned banking system also prevents prompt transfers of funds from
consumers to retailers. Credit card companies are increasingly targeting India's one
million cardholders through directly-mailed offers of goods and services. The most
successful direct marketers in India today are the millions of door-to-door sales
representatives who visit neighborhoods and villages across India. From ice cream
vendors to carpet sellers, India’s residential neighborhoods are frequently visited by
merchants offering a variety of products. The major Indian advertising media are
newspapers, magazines, television, radio, business publications and billboards.
However, as the years have progressed, the sophistication of advertising methods and
techniques has advanced, enticing and shaping and even creating consumerism and
needs where there has been none before, or turning luxuries into necessities. This
section introduces some of the issues and concerns this raises.Medical marketing is rife
with all sorts of controversial issues and ethical dilemmas. Particularly when medical
device and pharmacy companies pay for doctors to give presentations, write articles and
participate in symposia that help the drug or device companies market their products.
These doctors are then unable to be objective when recommending treatments for their
patients
Large tobacco companies targeting teens to gain new customers. I believe someone did
a little marketing research and concluded that most lifelong, heavy smokers started
smoking in high school. So at some point tobacco started advertising to draw children.
You already know, of course, that they test the market and they know exactly how to
get to young children.

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1.8.6 Stereotyping In Advertising:
“Stereotyping is a short hand way to describe a person with collective rather then
unique characteristics."
There is a list of endless stereotypes: African Americans play sport and run really fast,
Latinos joins gangs, Native Americans drink a lot, brown skin people are extremely
intelligent but easily fooled, homeless people are drug addict's, rich people make their
way through money.
This list can go on and on and never end. These and other stereotypes are perpetuated
by visual messages in media. Visual messages are a product of our sight; pictures are
highly effective emotional objects that have long lasting stay within the grayest regions
of our brain. It is said that "Imagination is shaped by the picture seen".
The reason media stereotypes is that picture are a short cut to bring forth the required
action. Messages that stereotype individuals by their concentration, frequencies and
omissions become a part of our long-lasting memory. In this way advertisers hope to
sell their products to unwary audiences who may feel they are lacking in these so-called
attributes. Let's face it, not all women are well proportioned and have good posture, a
beautiful face and are candidates for fashion models, some are in fact quite plain and
unattractive.

1.8.7 Advertising to Children


Advertisements that children watch become their favorites. If they see food on
television, they want to try the food. If they see games being advertised they want to try
the game.
Countless products are being advertised everyday on televisions and papers. And
children must be trained to know which product is really good. The main purpose of
advertising is to attract people and make money.
As children watch the advertisement, they absorb everything that the advertisement says
and they believe what they see and hear. Children always listen to what they hear and
believe in them. It is therefore very important to watch the children and teach them what
is true and what is not. There are advertisements that exaggerate and sometimes this is
dangerous to children. Advertisers maybe trying to attract people to patronize their
products and services but they are not very good for children. Sometimes too much
advertisement of a certain product could make the child crave for that product even if it
is not good for the health.

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Say for example the junk foods that are often advertised on television. It shows a child
who became Superman when he ate the product. A young child will think that the
product could really make him a Superman and would like to try the product. Parents
should be vigilant enough about advertisement and explain to the child that
advertisements are only for attracting customers.
Child must know about what the products are, whether they are good for the body or not
so that the child will know which product to choose.

1.9 PRODUCT’S COMPETITIVE POSITION IN MARKET

Main Competitors

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