This document provides an overview of the advertising industry in India and compares advertising campaigns created by two different agencies, DDB Mudra and Ogilvy, for their clients McDonald's and KFC respectively. It outlines key details of the two campaigns, McSpicy for McDonald's and Fiery Grilled Chicken for KFC, and analyzes their performance and effectiveness. The Ogilvy campaign for KFC's Fiery Grilled Chicken was found to be more successful overall through continuous customer engagement across multiple marketing channels compared to DDB Mudra's one-dimensional McDonald's McSpicy campaign.

1. Premium foods-ad campaign
for global QSRs’ in India
Advertising and Branding Industry
DDBMudra - McDonalds McSpicy Vs O&M - KFC Fiery Grilled Chicken
EGMP – 04
Bangalore

2. Advertising - Industry Overview
Role of advertising: For any organization, it’s resources and core competencies alone cannot bring the
competitive advantage, unless it is able establish the brand and penetrate the market for the same.
Effective advertising and branding plays a vital role in the strategic positioning and growth.
Key Services:
• Creating brand position & advertising campaigns for their clients.
• Offerings include creative services, production, account management, and media planning.
• Major companies include Interpublic and Omnicom, (both headquartered in the US); WPP (Ireland);
Publicis (France); Dentsu (Japan); and Hakuhodo DY Holdings (Japan).

3. Industry structure
• Long term relationship with the client.
• Campaign objectives and metrics are established between
client and agency.
• Contract with fee structure which is based on Commission.
• Campaign performance measures are obtained from neutral
platform based on platform related metrics.

4. Industry Size
India advertising spending - 2010
Internet 7.5
OOH 0.17
Live Entertainment 0.18
Music 0.74
Million INR
Radio 12
Print Media 195
Filmed entertainment 153
Television 427
0 50 100 150 200 250 300 350 400 450
Source : Media Gyaan Accessed on 24 Jan 2013

5. Competitive Landscape
• Creative skills and Client relationships.
• Large companies serve varied needs of major customers.
• Small companies compete in niche markets by offering lower
pricing.
• Industry is fragmented.
• Provide end to end solutions in line with strategic goals.
• Rapid advancements in technology - cost effectiveness.

6. Threat of New Entrants
• Entry Barriers
– Engagements based on long term relationships.
– Attracting , nurturing & retention of creative talent is expensive & challenging.
– Difficult to attain deep connect with regional demographics, behaviours, attitudes
and values.
– Constraints in getting access to key media channels or space.
Expected Retaliation
• Use of client relationships.
• Leverage regional presence.
– Conclusion : Threat of new entrants is low.

7. Bargaining power of Suppliers
• Premium ad spaces are limited and supply is less compared to
demand.
• Seasonal campaigns puts pressure on supply.
• Product launches demand better integration with the supplier.
• Supplier concentration to firm concentration ratio.
• Suppliers are industry independent.
• Forward integration is a possibility.
• Conclusion : Bargaining power of suppliers is high.

8. Bargaining power of Buyers
• Long term relationships with static fee structures.
• Buyers are large and can demand concessions.
• Identity of buyer adds prestige to seller's list of customers.
• Backward integration by buyer not possible.
• Bargaining power of Buyers are high.

9. Threat of substitute products
• No absolute substitutes for an Ad-Campaign.
• Constant evolution of technology such as e-Commerce, Social
Media tools etc offers new channels for forward integration with
low switching costs.
• Conclusion: Threat of substitutes is Low

10. Rivalry among existing competitors
• High stakes with each campaign to build credibility.
• Large budgets for ad campaigns.
• High profile client base adds to premium.
• High premium on scarce resources.
• Conclusion : Rivalry among existing competitors is high.

11. Five Forces conclusion
• Threat of new entrants : Low
• Bargaining power of Buyers : High
• Bargaining power of Suppliers : High
• Threat of substitute products : Low
• Rivalry among existing competitors: High
• Overall the advertising industry is not an attractive industry to
earn above average returns.

13. The Campaign
McSpicy Fiery Grilled Chicken
• Tagline • Tagline
– How Spicy is the McSpicy. – Sets You on Fire.
• Campaign • Campaign
– Social interaction using QR Code with a – 360-degree marketing campaign.
Microsite. – Thematic TVC launch, radio
• Results promotions, innovative digital activations, outdoor
– 50876 CTR’s and 15th most watched and in-store promotions.
video on Youtube India. • Results
– 250,000 people and getting 10,000 page – 1500 videos recorded, and 70,000 new users
views on YouTube
joining the growing ranks of KFC Facebook fans†
– 275% of projected sales target.
– Established KFC as the leader in the segment.
– Second best selling item on the menu.*
*Source : DDB Mudra website † Source : Exchange4Media website

14. Campaign Comparison
• Ogilvy’s Fiery grilled Chicken campaign
– worked far better and drove more footfalls compared to DDB Mudra’s
McSpicy.
– Ogilvy nominated for Cannes Golden Lion award.
• Ogilvy’s campaign created continuous engagement, Mudra’s
onetime engagement.
• Ogilvy’s Integrated campaign across all channels worked effectively
whereas Mudra focused one dimensionally.
• Ogilvy engaged effectively with target audience with a lot more
interactivity compared to Mudra.

15. Q&A