Concept of liberalization:

Concept of lib termlizationIntroductionThe early 1990s was an era of intense changes in the Indian economic placement. The torrent of international companies that we intoxicate today in India was born as a result of the economic transferralions the country went through in 1991. It was the age of relaxation of a fleck of rules popularly known as relaxation behavior. With repose, there was an increase in rival and certain categories were confront competition for the put acrossner time. There could be no lackadaisical attitude on the explode of the companies existing pre- easiness as the whole economic system was overthrown to volitioningly accommodate to a greater extent players. rest had far-off reaching impacts. One are which it impacted signifi stinkpottly was the empyrean of advertize. Organizations couldnt take their customers for granted as there were other organizations waiting to bury into their market share. Advertisements thus became a more(prenominal) i ncisive tool for organizations to quarter their presence felt and solicitation to their target audience. It is this change in the mock up of advertize that this thesis wishes to track.Literature ReviewExploring the Concept of Liberalizationin July 1991 with the announcement of sweeping liberalization by the minority governance of P.V. Narasimha Rao overt the economy dismantled import controls, lowered customs duties, and devalued the funds virtu unaccompaniedy abolished licensing controls on mystic enthronisation, dropped tax rates, and broke public celestial sphere monopolies. We felt as though our second independence had arrived we were going to be free from a rapacious and domineering state Das (2000), on the re nominates that originated with the July 1991 package announced by Manmohan Singh (Panagariya, 2004). To Liberalize means remove or loosen restrictions on ( manything typic entirelyy an economic or political system). Generally, Liberalization (Liberalisation) re fers to removal or relaxation of restrictions imposed by the previous government usually in celestial spheres of economic or social policy. In the area of social policy, liberalization refers to the relaxation of laws for example, laws on homosexuality, drugs, abortion, divorce etc. In the area of economic policy, liberalization can either be privatized or be liberalized. Like, India has liberalized various markets, instituting a system of competition, however still both(prenominal) of the departments like Gas and Energy remain partially or solely in government ownership.The economic liberalization in India refers to the current reforms in India. The Indian economy was liberalized in 1991. That marked the end of permit Raj. License Raj, overly known as Permit Raj, was the brainchild of Jawaharlal Nehru, Indias first tip Minister. It was the result of Nehrus decision to lay down a planned economy in India where all the feels of economy are controlled by the government (state ). License Raj refers to the sybaritic licenses and regulations and the accompanying red tape, which was required to bewilder up and run businesses in India between 1947 and 1990. In the late 80s, the government led by Rajiv Gandhi projected restrictions removed price controls and reduced corporate taxes. This did increase the rate of fruit, merely it in turn led to high fiscal deficits and a change state current account. Soviet Union, Indias major trading partner collapsed at the similar time and the first Gulf War, which ca utilise a spike in anoint prices, caused a major balance-of-payments crisis for India. The Gulf war also led to a reduction in repatriation from expatriate workers (an crucial source of exotic commute at that time). India asked for a $1.8 billion bailout loan from IMF, which in return demanded reforms. In response to this, Prime Minister Narasimha Rao and the finance minister Manmohan Singh initiated the economic liberalization of 1991. The reforms did a right smart with the License Raj and ended many public monopolies, allowing automatic favourable reception of foreign direct investment in many sectors. On licensing, the sunrise(prenominal) policy explicitly stated, industrial licensing will thereforeforth be abolished for all industries, except those specified, irrespective of trains of investment. (Sivadasan, 2007)Liberalization is virtually Encouraging growth of insular sector Simplification of policy, regulation, tax structure Facilitating foreign Direct investment Restructuring public sector for efficiencies Providing incentives for exports and allowing more imports Put emphasis on modernization of plants and equipment through liberalized imports of capital goods and technology (Sivadasan, 2007) Expose the Indian industry to competition by gradually reducing the import restrictions and tariffs Moving away from testimonial of small scale industriesRealization that economies of scale is necessary for economic gr owth (Singh Shankar, 2008)Life before 1991Various rules were imposed on foreign companies operational in India, under the Foreign Exchange Regulation Act (1973). Foreign ownership rates were restricted to below 40% in closely(prenominal) industries. In addition, restrictions were placed on the use of foreign brand names, on remittances of dividends abroad and on the proportion of local content in yield (under the Phased Manufacturing Program). (Sivadasan, 2007) Very limited brands available on the supermarket shelves Upto 97% taxes on private players High-level corruption. Frustrated Entrepreneurs State monopoly in many key sectors including TV broadcast. Hence, the monopoly of Doordarshan. telecasting and public policy change and continuity in an era of global liberalization, David Ward, 2009 Legendary battle between the two textile magnates Dhirubhai Ambani and Nusli Wadia in the last menti stard part of 1986. The battle between these 2 corporate rivals Dhirubhai Ambani, Chairman credence Industries Ltd., is not the first in the history but the weapons such as the Press employed by them on the large scale is sure as shooting without a parallel. This shattered the concept of objective journalism in a business controlled press (Aggarwal, 1989) Movies of that era young man rebelling against the system a reflection of common mans angst against a state-run, corrupt, bureaucratic machinery which slowed down the progress of India or else than facilitating it.Life after 1991 Foreign direct investors were now allowed up to 51% equity stakes in certain industries, under the automatic approval route. raise, restrictions relating to use of foreign brands, remittances of dividend and local content were relaxed. Following these reforms, there was a significant increase in amount of foreign direct investment into India(Sivadasan, 2007) Media Explosion Introduction of Cable TVs. Since most of the Doordarshans programming was seen to be sterile and dull, larg e audiences switched to satellite television channels made available through cable. Influx of western ideas and lifestyle Conspicuous consumption Entry of foreign players and hence multiple players in each category. Great increase in competition and hence, customer at the advantage Increase in challenges of Media cookery and Brand Building due to the widespread channels Emergence of TVR, GRPs, tam-o-shanter ratings etc Much more buoyant and optimistic state of mind was reflected in Bollywood. Hence, all soft, mushy, romantic blockbusters like Hum Aapke Hai Kaun,Dilwale Dulhaniya Le Jaayenge,Kuch Kuch Hota Hai (Joshi, 2001)Defining advertising publicize is so familiar to modern readers that it whitethorn seem nonpareil to ask what an advertisement is. Although advertising is all around us perhaps because it is all around us we dont often pause to think about its character as a form of discourse, as a system of language use. There are multiple definitions of advertising like Advertising is only wholeness of many available channels of communication and Advertisements are the messages that advertising carries, in an attempt to achieve those ends. Advertising is a form of communication used to influence individuals to purchase products or servicings or ideas Advertising is a non-personal form of pro enquiry that is delivered through selected media outlets that, under most circumstances, require the marketer to pay for message placement Any paid-for communication, mean to inform and/or influence one or more pile is AdvertisingOf few of the above mentioned definitions, I could best relate advertising being any paid-for communication, intended to inform and/or influence one or more people Paid-for Any advertisement that is not paid for is not an advertisement Communication Every advertisement is attempting to bridge a gap between a sender and one or more potential receivers. That bridge is a form of communication. Intended Not all advertisements work , in the sense of achieving their desired objectives, but they are nonetheless part of advertising. Inform and/or influence The purely informative advertisement may be rare and the distinction between information and persuasion may be difficult to draw, but an advertisement does not have to set out to influence either attitude or behavior in order to qualify (Bullmore, 2003)History of AdvertisingWorlds first ever advertisements appeared some 3000 years B.C. as stencilled inscriptions on bricks made by the Babylonians. History tells us that out-of-home advertising and Billboards are the oldest form of advertising. stigmaed advertising began to make itsappearance for Royal announcements in early Europe China, Turkey, England (1100 -1711). Moving on to American advertising in 1729 1850 several changes occurred in scathe of medium, message, manner of presentation. These changes are nothing but areflection of the social, economical and scientific changes over time. Changing times and society called up for changes in the way advertising was planned. There has been one or the other peculiar aspect of advertising strategy, which kept it growing in volumes of success and importance. In 1870 the first Brand advertisement for St. Jacobs Oil appeared and this phenomenon continued till early 80s. Further slogans and trade characters took over the job. Then there came a time to appeal variety of creative appeals (humor, sex, fear, love, affection etc.) made the further way up for advertising (Pincas Loiseau, 2008)Medium of AdvertisingMedium is nothing but a channel that carries the Advertisers message. There are six major categories of advertising media 1. Print Media refers to any published, gulled medium such as Newspapers and magazines.a. Newspapers are one of the conventional mediums used by all types of businesses to promote their product or service or idea.Advantages Huge reach in a given geographic area Flexibility in deciding the size and the placement of the ad Exposure to the ad is not limited. People can go moxie to see the ad Quick turn around. The ad if decided to run today can be in the hands of the customers in a day or twoDisadvantages Expensive ad space big bucks of competition Poor photo end product Highly visible medium, and hence the competitors can quickly react to your prices Newspapers facing stiff competitions from internetb. Magazines more focused, expensive compared to newspapersAdvantages Better targeting of audience Higher reader involvement and hence more attention paid to the advertisement Better color riposteDisadvantages big lead time Limited flexibility in terms of ad placement and format Higher costs compared to newspapers2. Electronic Media consists of radiocommunication and televisiona. Radio is a universal medium enjoyed at one time or another during the day.Advantages Negotiable rates Less pomposity in radio media compared to other mediaDisadvantages Listener cannot go back to the ads for the important points Ads, an interruption in the entertainment Radio is a background medium. close listeners are doing something else while listeningb. Television permits you to reach large keep down of peopleAdvantages Television permits you to reach large numbers of people on a national or regional level in a short period of time New opportunities to pinpoint local audiences Television being an image-building and visual medium, it offers the ability to convey your message with sight, sound and motionDisadvantages Lot of competition. Requires multiple exposure for the ad to get noticed pet ad times are often sold out far in advance Relatively expensive in terms of creative, production and airtime costs Limited length of exposure, as most ads are only thirty seconds long or less, which limits the amount of information you can extend3. Out-of-home media is focused on marketing to consumers when they are on the go in public places, in transit, waiting (such as in a medical examina tion office), and/or in specific commercial locations.a. Out door advertising is essentially used for any type of advertising that reaches the consumer while he or she is outside the home.Advantages Specific Target Audience Good for mark and positioning Creates greater consumer awarenessDisadvantages Less effective in tactical and short term shakesb. Transit Advertising Transit advertising is typically advertising placed on anything, which moves, such as buses, subway advertising, truckside, and taxis, but also includes fixed static and electronic advertising at accept and bus stations and platforms. Airport advertising, which helps businesses address an audience while traveling, is also included in this category.Advantages Good for all ranges of a businesses advertising reckon You get what you pay for A target audience is exposed to a single advertisement for a long period of time It picks up the speed due to frequency Timeliness Geographical selectivityDisadvantages People on transit may not even notice such advertisements, simply because they became used to transit advertising Many of those people may not be interested in you and your product at all hence, transit ads are not easy to target despite the high level of reach* Design limitations4. Internet Advertising is a form of packaging that uses Internet and World Wide Web for communicating with the customers.Advantages Rapidly growing industry Affluent market Selective Targeting Interactive medium speedy Response In-depth informationDisadvantages Security and Privacy Slow downloads Global marketing limits Untested medium5. Direct Mailers is a marketing technique in which the seller sends marketing messages directly to the buyer. Direct mail include catalogs or other product literature with ordering opportunities sales letters and sales letters with brochuresAdvantages Personalized marketing message Effectiveness of the response can be easily measured Control Ad campaign is inscrutable from the c ompetitors Active involvement- the act of opening the mail and reading itDisadvantages Selectivity problem Long lead times are required for creative printing and send out Can be expensive, depending on the target market and size of the campaignMonitoring AdvertisingDealing with advertising is still one of the hardest tasks facing marketing people. It remains notoriously difficult to demonstrate this return, to show all the way that advertising is paying its way. It is also difficult to understand how advertising works, how consumers reply to it. How do we choose the best way of developing our advertising, testing it, checking it out, ensuring that it meets the objectives we have set for it let alone evaluating how far it has done so, and how we should improve it? (McDonald, 1998)enquiry ProblemTo analyze the change in content and pattern with count to the nature of print advertisements in the pre-liberalization and post-liberalization eraResearch Objectives To understand libera lization and the changes resulting as a result of this measure To understand the implications of liberalization on advertising from a regulations perspective To trace the change in the nature of advertisements before and after liberalizationResearch MethodologyThe research will be qualitative in nature. And the method which will be used will be content analysis. An analysis of the advertisements of top five brands in the soaps and chocolates category will be carried out, bathing Soaps, coming in mundane usage category and chocolates in occasional usage category. Here print advertisements of the top five brands pre and post liberalization will be taken and a content analysis will be done on them. This will be used to track changes in pattern and employ these two categories the results will be extrapolated for the FMCG category as such.