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THE KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LIMITED ANAND
INTRODUCTION AND
HISTORY
In the year 1946
the first milk union was established. This union was started with 250 liters of
milk per day. In the year 1955 AMUL
was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union
selected the brand name AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived
form the Sanskrit word “AMULYA” which means “priceless”.
A quality control expert in Anand had suggested the brand name “AMUL”. 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. (The total sale is Rs. 6 billion in 2005). Today
Amul is a symbol of many things like of the high-quality products sold at
reasonable prices, of the genesis of a vast co-operative network, of the
triumph of indigenous technology, of the marketing savvy of a farmers'
organization. And have a proven model for dairy development (Generally known as
“ANAND PATTERN”).
In the early 40’s, the main sources of earning for the
farmers of Kaira district were farming and selling of milk. That time there was
high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a
privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and
illiterates’ farmers by the private traders. The traders used to beside the
prices of milk and the farmers were forced to accept it without uttering a
single word.
However, when the exploitation became intolerable, the
farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom
movement. Sardar Patel advised the farmers to sell the milk on their own by
establishing a co-operative union, Instead of supplying milk to private
traders. Sardar Patel sent the farmers to Shri
Morarji Desai in order to gain his co-operation and help. Shri Desai held a
meeting at Samarkha village near
Anand, on 4th January 1946.
He advised the farmers to form a society for collection of the milk.
Factors Affecting Advertising
The final
external factor in the planning framework concerns environmental factor social,
legal, and global. Law forbids deceptive advertising. One solution is to create
brand advertising that is vague and contains little specific information.
However, such an approach can result not only in ineffective advertising; by it
can lessen the social value of advertising by reducing the amount for useful
information that it provides to society. Thus, and advertiser who attempts to
provide specific, relevant information must be well aware of advertising
regulation.
Even more difficult consideration
for people involved in the advertising effort is broad social and economic
issues. Another concern is that advertising, especially when it is more
irritating than entertaining, is an intrusion into an already excessively
polluted environment. A whole set of rules is emerging to cover advertising
directed at children, and advertising for products such as alcohol and
cigarettes, and the use of environmental and health claims in advertising.
Thus advertising has a tremendous
impact on international marketing and the two concepts therefore go hand in
hand and are dependent on each other.
Facilitating Agencies
Another
external factor involves the agencies that facilitate advertising and provide
the means to advertise. From a situation analysis viewpoint, the advertiser
basically needs to know what kind of facilitating agencies exist and the nature
of the services they can provide. From a planning viewpoint, much local
advertising, for example, is done without the services of an advertising agency
or a research supplier. A national advertiser, on the other hand, may have
under contract many different agencies and research suppliers, each serving one
or more brands in a product line made up of several products.
Many advertising decisions involve choices among facilitating agency
alternatives. What advertising agency should be chosen? What media should be
used? What copy-testing supplier will be best for our particular situation?
Concerning the question for agency selection, for example, Cagley and Roberts
found that the people factor” tends to dominate in agency selection.
Characteristics such as the quality of personnel, reputation, integrity, mutual
understanding, interpersonal compatibility, and synergism were very important.
Fact file
The
majority of large advertising agencies are headquartered in the US. Of the ten
largest advertising agency groups, seven are headquartered in the US, and one
each in the UK,
France
and Japan,
although WPP, the British agency holding company, is made up of two large
US-based agencies.
With
the exception of Dentsu, the Japanese agency, most other agency networks
generate the majority of their revenues outside their home country.
The
largest agency group, Omnicom, places over $37 billion of advertising for its
clients around the world and derives half its revenue from outside the US.
US-based
advertising agencies and their subsidiaries are responsible for most of the
advertising throughout the world.
Consumer and Market Analysis
A situation analysis often
begins by looking at the aggregate market for the product, service, or cause
being advertised: the size of the market, its growth rate, seasonality,
geographical distribution; the possible existence of different segments; and
trends in all of these aggregate market characteristics.
Competitive Analysis
Advertising
planning and decision-making are heavily affected by competition and the
competitive situation the advertiser faces. Competition is such a pervasive
factor that it will occur as a consideration in all phases of the advertising
planning and decision-making process. A type of market structure analysis that
involves the development of perceptual maps of a market, for example, attempts
to locate the relative perceptual positions of competitive brands.
Situation analysis should usually
include an analysis of what current share the brand now has, what shares its
competitors have, trends in these shares, reasons for these trends, what share
of a market is possible for the brand, and from which competitors an increase
in share will come. The planner also has to be aware of the relative strengths
and weaknesses financial, production, and marketing of the different competing
companies, and the history of competitive moves and objectives in the product
category.
The Marketing Plan
Advertising planning and decision
making take place in the context of an overall marketing plan. The marketing
plan includes planning, implementation, and control functions for the total
corporation or a particular decision-making unit or product line. The marketing
plan will include a statement of marketing objectives and will spell out
particular strategies and tactics to reach those objectives. The marketing
objectives should identify the segments to be served by the organization and
how it is going to serve them. The needs and wants of consumers on which the
firm will concentrate, such as the needs of working men and women for easily
prepared meals, are identified and analyzed in a marketing plan.
There are
several marketing tools that can be used to help an organization achieve its
marketing objectives. Most people are familiar with the “4 Ps” the marketing
mix which includes product, price, place, and promotion. A marketing plan
formulates the strategy and tactics for each of these.
Advertising Communication System
Advertising communication always involves
a perception process and four of the elements shown in the model: the source, a
message, a communication channel, and a receiver. In addition, the receiver
will sometimes become a source of information by talking to friends or
associates. This type of communication is termed word-of-mouth communication,
and it involves social interactions between two or more people and the
important ideas of group influence and the diffusion of information.
An advertising
message can have a variety of effects upon the receiver. It can
- Create awareness
- Communicate information about attributes and benefits
- Develop or change an image or personality
- Associate a brand with feelings and emotions
- Create group norms
- Precipitate behavior
Message Strategy and Tactics
The actual development of an
advertising campaign involves several distinct steps. First, the advertising
manager must decide what the advertising is meant to communicate by way of
benefits, feeling, brand personality, or action content. Once the content of
the campaign has been decided, decisions must be made on the best and most
effective ways to communicate that content.
Media Strategy
Although there are many rules of
thumb often used to decide how much money to spend on advertising, the soundest
rules involve beginning with a detailed specification of what a corporation is
attempting to accomplish with advertising, and the resources necessary. It is
only when the job to be done is well specified that the amount and nature of
the effort the amount of money to be invested in advertising can be really
determined
International advertising
It
entails dissemination of a commercial message to target audiences in more than
one country. Target audiences differ from country to country in terms of how
they perceive or interpret symbols or stimuli, respond to humor or emotional
appeals, as well as in levels of literacy and languages spoken. How the
advertising function is organized also varies.
International advertising can, therefore, be viewed as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. International advertising is also a business activity involving advertisers and the advertising agencies that create ads and buy media in different countries. The sum total of these activities constitutes a worldwide industry that is growing in importance. International advertising is also a major force that both reflects social values, and propagates certain values worldwide.
The Communication Process
The process of communication in
international markets involves a number of steps. First, the advertiser
determines the appropriate message for the target audience. Next, the message
is encoded so that it will be clearly understood in different cultural
contexts. The message is then sent through media channels to the audience who
then decodes and reacts to the message. At each stage in the process, cultural
barriers may hamper effective transmission of the message and result in
miscommunication.
International Advertising as a Business Practice
International advertising can also be viewed as a business activity
through which a firm attempts to inform target audiences in multiple countries
about itself and its product or service offerings. In some cases the
advertising message relates to the firm and its activities, i.e. its corporate
image. In other cases, the message relates to a specific product or service
marketed by the firm. In either case, the firm will use the services of an
advertising agency to determine the appropriate message, advertising copy and
make the media placement.
Impact Of Advertising On International Marketing
Impact Of
Advertising On International Marketing
International
Marketing: A Global Marketplace
Trade is increasingly global in scope
today. There are several reasons for this. One significant reason is technological—because
of improved transportation and communication opportunities today, trade is now
more practical. Thus, consumers and businesses now have access to the very best
products from many different countries. Increasingly rapid technology lifecycles
also increases the competition among countries as to who can produce the newest
in technology. In part to accommodate these realities, countries in the last
several decades have taken increasing steps to promote global trade through
agreements such as the General Treaty on Trade and Tariffs, and trade
organizations such as the World Trade Organization (WTO), North American Free
Trade Agreement (NAFTA), and the European Union (EU).
Some forces in international
trade.
Trade between countries is beneficial
because these countries differ in their relative economic strengths—some have
more advanced technology and some have lower costs. Products tend to be adopted
more quickly in the United States and Japan, for example, so once the demand
for a product (say, VCRs) is in the decline in these markets, an increasing
market potential might exist in other countries (e.g., Europe and the rest of
Asia). Internalization/transaction costs refers to the fact that developing
certain very large scale projects, such as an automobile intended for the World
market, may entail such large costs that these must be spread over several
countries.
Advertising
Advertising is a persuasive communication
attempt to change or reinforce ones’ prior attitude that is predictable of
future behavior.
Historical
Milestones In Advertising
Advertising
goes back to the very beginnings of recorded history. Archaeologists working in
the countries around the Mediterranean sea
have dug up signs announcing various events and offers. An early form of
advertising was the town crier. Another early advertising form was the mark
that trades people placed on their goods, such as pottery. As the person’s
reputation spread by word of mouth, buyers began to look for his special mark,
just as trademarks and brand names are used today. As production became more
centralized and markets became more distant, the mark became more important.
The turning point in the history of advertising came in he year 1450 when
Johann Gutenberg invented the printing press. Advertising no longer had to
produce extra copies of a sign by hand. The first printed advertisement in the
English language appeared in 1478.
In 1622, advertising got a big boost with the launching of the first English
newspaper, The Weekly News. Advertising had its greatest growth in the United States.
Ben Franklin has been called the father of American advertising because his
Gazette, first published in 1729,had the largest circulation and advertising
volume of any paper in colonial America.
The invention of radio and, later, television created two more amazing media
for the spread of advertising.
Advertising's Two Important Virtues
You have
complete control. Unlike public relations efforts, you determine exactly where,
when and how often your message will appear, how it will look, and what it will
say. You can target your audience more readily and aim at very specific
geographic areas.
You can be
consistent, presenting your company's image and sales message repeatedly to
build awareness and trust. A distinctive identity will eventually become
clearly associated with your company, like McDonald's golden arches. Customers
will recognize you quickly and easily - in ads, mailers, packaging or signs -
if you present yourself consistently.
What Advertising Can Do For Your Business
- Remind customers and prospects about the benefits of your product or service
- Establish and maintain your distinct identity
- Enhance your reputation
- Encourage existing customers to buy more of what you sell
- Attract new customers and replace lost ones
- Slowly build sales to boost your bottom line
- Promote business to customers, investors
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