Purpose of Advertising

Purpose of Advertising 1. Introduction Advertising no doubt is a broad topic (lyer, Soberman, and Villas-Boas, 2005) it is one of the most important decisions that marketers make. Burd (1959) Advertising is one of the most proficient and the most economical aid in the distribution and marketing of merchandise or service. Advertising is either in written or oral form, which intends to sell something and want to earn revenue. Jayasinghi Ritson (2008) Advertising includes all major communication mediums which include: television, newspapers, radio, magazines, the Internet, movies, and billboards through which that message is transmitted. Television is the most common medium as it covers large but at the same time it is very costly. Advertising is generally aimed at consumer reminiscence who is being engaged with certain type of ads where the purpose of marketers is to create awareness and Brand/ Product recall and recognition later in consumer minds. Sometimes when you look at advertisement you will easily recall it may be it is in your subconscious mind or because of the celebrity or the background music that appeals you and sometimes you won’t be able to recall what you have seen just few minutes ago (Obermiller, Spangenberg, 2005; MacLauchlan, 2005.). An advertising objective may be to change the mind-set of the customers. Advertising has a great role when a business that has a bad reputation and has lost his/her customers can use advertising to get them back (Burd,1959). Pechpeyrou Odou (2012) hence, Advertising plays a central role in not only providing information about the product or service but also creating awareness and recognition of the product/service in consumer mind. Types Purpose of Advertising McDaniel, 1986. Advertising has many forms; few of them are given below. However for the purpose of thesis the focus will be on consumer advertising. Consumer Advertising It is a type of advertising that targeted at end consumers. All the offering and services are for the end consumers. Consumer advertising includes common commodities and what we usually find around us is all what comes under consumer advertising. The major aim of consumer advertising is to create awareness of brands and products that are of consumer use. In such sort of advertising emotional and rational appeal plays a vital role. Trade Advertising Trade advertising is also known as business/ professional advertising. This type of advertisement is not for consumers but for all those who influence the consumer like distributors, resellers or businesses. Medium for such sort of advertising is professional magazines and direct mail which do not involve end consumers. Product Advertising This sort of advertising communicates the promotion of the product. They push the consumers to purchase the product. Its major aim is to create brand awareness. Once awareness is created people tend to buy their product. Non-Product Advertising Non-product related advertisings includes surrogate advertising in it. Non product advertising depicts an idea or a cause. Short term and long Term Advertising There are two types of advertising one is short term and other is long term. The short term advertising has a direct impact on the product sales. Its aim is to increase sales, maximize revenues and create awareness. On the other hand the long term advertising focuses to maintain long term relations and customer loyalty. Consumer Skepticism: Definition of skepticism revolves around the questioning of the attitude towards the knowledge and opinion. Skepticism towards advertising is the distrust of advertising claims or promises and signifies a general market place that varies across persons. Hardesty, Carlson, 2002; Bearden 2002. The effect that consumer skepticism has on advertising can be figure out through consumer response. Brands need to overcome massive stages of skepticism for consumers. In our society there prevails lot of mistrust and loyalty. Consumers can learn a lot from advertising and marketing. Skeptic consumers are quite unsatisfied hence research recommends that delivering enough information to consumers will lead to building trust and satisfaction, once that trust is created it will results in increase sales and profitability. Obermiller, Spangenberg 2005; MacLachlan 2005. Milk Industry Pakistan is the fifth largest milk producer. Pakistan dairy industry is one of the most vital sectors that is contributing almost 11 percent into the GDP. Dairy industry is swayed by number of factors that are size, growth and profitability. (Dawn newspaper; 2014). According to live stock census 2007, almost 80 percent of the milk is taken from the rural areas. Only 3-5 percent of the milk is marketed and distributed formally. 97 percent of the milk produced in Pakistan is distributed in loose form (Jalil, Sial and Hussain, 2009) .The role of livestock in the rural economy is very critical as farmers and villagers consume loose milk. They don’t prefer milk that is packaged. Whereas in urban areas people consume loose milk as well as packaged milk. Packaged milk has made the life of urban people easier as they are busy in their work so this packaged milk reduces the time of hassle to boil and utilize it. Buffaloes are considered to be the main animal in Pakistan that accounts f or 75 percent of milk. Milk sources are cows, buffaloes and goats and the types of milk available is standardized, homogenized and skimmed. Milk is used for many purposes that is drinking, tea, desi ghee, yogurt, butter and in the making of many sweet dishes. As the inflation is increasing rapidly hence the milk prices are also raising quickly. In a very short span milk prices has shown a rapid increase of 25 percent. As the people are becoming aware of processed and packaged milk they are buying them and are not consuming loose milk that is delivered by gawallas. Milk and its foodstuffs provide almost one third of world’s intake of animal protein. Milk and its foodstuffs represent almost 27 percent of total family expenditures on foodstuff in Pakistan. Milk Per capita availability is 82.4 kg per annum in Pakistan. During 1999-2000 roughly 80 thousand tons of dry milk that is PKR 1213.5 million was imported to Pakistan in order to meet local demands of milk. (FAO, 1998). Pakistan dairy industry is in trouble now a days because of lack of commercial dairy farms, lack of dairy knowledge and due to lack of financial resources. In rural areas very few shopkeepers have facility of refrigeration. The containers that are used for transportation are very unhygienic. Almost 90 percent and above population consumes loose milk and hence the demand of loose milk is higher than the packaged milk. Also because of inflation and poverty level people are quite conscious about prices. (Jalil, Sial and Hussain, 2009) Packaged milk is in demand widely. [1]Mostly packaged milk is used in homes and powder dry milk is used in offices for the purpose of making tea. Global Milk production ranking of 5 top countries is given in table 1[2] Countries Milk Production India 92 Billion litre / annual USA 78 Billion litre / annual Russia 34 Billion litre / annual Pakistan 33 Billion litre / annual Germany 29 Billion litre / annual Table 1 Global milk production ranking of top 5 countries Name of all the species that are the source of milk are listed below. Moreover Population, milk production and milk consumption of 2011-2013 based on National Livestock Census are given in Table 1.1 Species Population(Million) Milk Production (Million tons) HumanMilk Consumption Cattle 36.9 16.74 13.39 Buffallo 32.7 29.56 23.65 Sheep 28.4 0.03 0.03 Goat 63.1 0.77 0.77 Camel 1.0 0.82 0.82 Total 162.1 47.95 38.69 Nestle: Nestle is one of the largest food and nutrition company in the world. Nestle is derived from the Swiss German word which means little nest. It is the fifth largest company in the world. Currently it is present in more than 88 countries and has more than 522 factories. More than 700 products are produced under the umbrella brand of Nestle. Nestle was established in 1867 by Henri Nestle. Different brands of Nestle are Baby foods, Bottled water, Cereals, Chocolates and confectionaries, Coffee, Ambient dairy, Chilled Dairy, Drinks, Health care nutrition, Culinary and food, Ice cream, Pet care, Sports nutrition and Wealth management. Nestle is a world renowned company. The company is taking milk from number of farmers and then process it further. Nestle Everyday is made from pure fresh milk sugar and Lecithin. In 2011 the company has sourced more than 7.2 million tons of fresh milk from different milk districts in 31 countries widely. The company basically deals in food products as the logo states that â€Å"Good food, Good life â€Å". List of different milks that are under the umbrella brand of Nestle are given in Table 1.2 Milk Sku’s Nestle Milk Pak UHT 1000, 500, 250 ml Nestle Everyday 1000,400,200ml Nestle Nido 1000,400,200ml Nestle Nesvita 1000, 200ml Nestle Flavored Milk 250ml Table 1.2 Nestle milk and Sku’s I have chosen the product Nestle Everyday tea whitener for the purpose of research thesis. It is the forerunner of tea creaming in Pakistan. Its different taste and pleasant aroma is the reason of its success. Everyday makes a perfect cup of tea for you. It is one of the best brands that provides taste and quality at affordable prices. It has number of Sku’s that customer choose according to their needs and wants. Every day is available in both liquid and dry forms. Liquid milk is consumed mostly at home whereas dry powdered milk is used widely in offices. References [1] http://www.pakissan.com/english/allabout/livestock/dairy/dairy.industries.in.pakistan.shtml [2]http://www.slideshare.net/hassankh/powder-milk-industry-in-pakistan?related=1 3http://www.ukessays.com/essays/economics/milk-production-system-in-periurban-areas-of-lahore-economics-essay.php 4http://www.bignerds.com/papers/72338/Dairy-Industry-In-Pakistan/