Chapter One

Executive Summary

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Executive Summary

Title: A Project Report on The Scope of one of the Latest trends in Advertising Digital Signage Advertising

Industry: Advertising/Print Media

Company: Faith Inc. Conceived in the year 2000, Faith Inc. has been successful in serving its customers to their fullest satisfaction. The agency works into Print & Media industry and focuses on Designing, Photography & Printing services. Real Estate customers form the major chunk of its total customer base. The company carries out its services with the help of a Creative Team which helps coming up with unique designs, ideas and concepts, a Marketing Team which carries out the work of Client Servicing, and a Printing Press which carries out all the Offset printing work. Apart from this, the agency has strategic tie-ups with the Printing Presses so as to satisfy its Outdoor and Non-offset printing orders.

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Research Methodology:

Research Approach

Survey Observation

Research Design

Descriptive Research

Data Source

Primary & Secondary data

Research Instrument

Questionnaire

Types of Questionnaire

Structured

Type of Universe

Business Customers

Sampling Method

Simple Non-probability Sampling

Unit Area

Pune

Contact Method

Personal Interview with Respondent

10

Sample Size

55 Business Customers

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Objectives: 1. To find out from Advertisers if they find any significant need and scope of Digital Signage Advertising over the traditional forms of advertising. 2. To find out the scope of Designing & Printing activities across different sectors in Pune apart from Highly and Solely concentrated Real Estate Sector.

Scope: The project has a vast scope in the field of the advertising right from the Print Media till the Digital Advertising space The project was carried out to fulfill two main objectives, but chiefly undertaken to study the scope of the Digital Signage Advertising in India, especially in Pune in comparison to the other traditional forms of the media such as the paper insertions/leaflets, newspaper advertising, banners/hoardings, radio, local television ads etc. Thus, the scope of this project majorly lies in the not-so- popular-but-highly-potential Digital Advertising space in Pune. The scope is again divided into two parts viz. Indoor and Outdoor Digital Advertising spaces in Pune. Secondly, another objective is directly related to the field the agency is currently working in since last 12 years. The project tries to look out for the scope of the Print & Advertising industry in any untouched or not-so-popular-yet-highly potential upcoming sectors of the business, considering the fact that for most of the advertising agencies in Pune working in the same field - approximately 60 to 70 % of the business comes from the Construction Sector. Conclusions: 1. There is definitely a lot of scope for the Digitization of the Indian advertisement industry and the survey shows Digital Signage Advertisement is the future of the Indian Advertisement industry.
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2. Real Estate is the biggest contributor to the total revenues of the agency, however the survey results boil down to three upcoming sectors a) Automobile b) Shopping c) Education 3. Key learnings a) After spending two months in the market the biggest learning has been the fact that competition in the Print Media industry is so intense that there is no respective rate charts for any designing services, a freelancer can charge Rs.100 for a design whereas a 10 year old agency might charge several thousands for same work, the creativity cannot be compared and thus it is only the Networking that is more important in this industry than Rates and Creativity. b) Technology is the biggest driver to the success of DSA, thus effective use of ever evolving Technology will not only help in creating new avenues of advertising but also will help the advertisers in differentiating their offerings from the current market offerings c) Although Print Media is one of the oldest forms of medium for advertising it still enjoys the status of being a Star Business if chalked out on BCG Matrix - by generating maximum revenues and maximum market share, however, the focus now needs to be shifted from rapidly saturating Real Estate sector to other upcoming sectors, considering the long term growth prospects for any agency.

Findings & Observations: 1. Although more than the 70% of the advertisers heard about the Digital Signage Advertising for the first time, after learning it, they felt it might have huge potential in the Indian market in the times to come

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2. Although 92% of the advertisers felt the need of the digitization of the overall advertising efforts, only 60% believed that Indian market has a lot of scope for Digital Signage Advertising

3. Although majority of the advertisers agreed to the huge potential of media, approximately 45% of the advertisers were apprehensive of investing in it before it is widely accepted

4. Based on the secondary analysis of various sectors there are three highly potential sectors for the designing and printing services Automobile Shopping Education

Suggestions

Business Expansion The agency is strongly focusing on the Real Estate customers which is supposedly the Cash Cow for the agency, however they should focus on the three upcoming sectors to sustain in the market in the long run a) Automobile b) Shopping c) Education

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Currently, all the three contribute to only around 10% of the total annual revenues i.e. around 10 lakhs. If these three sectors are given specific importance the business generated from these three sectors can definitely increased by at least 10% i.e. One Lakh annually (A)

Cost Reduction At present the agency is concentrating on the Designing part, it should also concentrate at the Printing part which will help the agency increase its profitability margins, currently the agency has the infrastructure which supports only Off-set Printing. The agency currently has an annual turnover of One Crore out of which the designing and printing can be bifurcated to 45% and 55% respectively. In printing, agency outsources the 55 % of the total work as it doesnt have the required infrastructure to print for Outdoors. Thus, this outsourcing leads to 12% profit sharing with the Printing Partners. If the agency can invest in buying the required machinery 12 % costs can be saved annually on the Outdoor Printing which can save approximately Rs.300,000 annually for the agency.

Total Annual Turnover One crore

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Designing 45 % i.e. 45 lakh p.a.

Printing 55 % i.e. 55 lakh p.a.

Off set Printing 30 lakh p.a.

Outdoor Printing 25 lakh p.a.

12 % savings annually i.e. Rs.300,000 p.a. (B)

Thus, Total Business Value Addition = Rs.1,00,000 + Rs.3,00,000 A+B = Rs. 4,00,000.

Business Diversification After studying and analyzing the views of the advertisers, agency can be suggested to go ahead with the implementation of Digital Signage Advertising. However, the returns on the

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investment would be subject to many factors such as the amount of investment, the response of the advertisers, the response of the viewers, the implementation of the project. Also, since the project is relatively very new the risk factor associated with the investment is very high and so is the uncertainty. However, from the long term perspective, the diversification plan makes a lot of sense.

Sales
Business Diversification Business Expansion

Cost Reduction

Total Business Value Addition Expected: Rs.4,00,000

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