What advantages would foreign companies accrue if they outsourced their advertising needs to Indian ad agencies

Perfetti Van Melle – Outsourcing Indian Advertisements

What advantages would foreign companies accrue if they outsourced their advertising needs to Indian ad agencies

This caselet provides details of the global marketing communication strategy of Perfetti Van Melle, one of the top confectionery manufacturers in the world. It highlights the adaptation of successful Indian advertising campaigns by the parent company, for brands like Alpenliebe and Big Babol in Europe. Finally, the caselet throws light on the emergence of Indian advertising industry as a global force.

Issues:

  » Global marketing communications


» Emergence of Indian advertising at the global level


» Outsourcing advertisements


» Importance of heavy promotions for impulse purchase products

Introduction

Perfetti Van Melle, one of the top confectionery product manufacturers with brands like Alpenliebe, Big Babol, and Center Fresh in its stable, entered India in 1994. The company (Perfetti Van Melle India Pvt. Ltd.) recorded a sales turnover of over Rs 400 crore, within a decade of its entry into the Indian market.           

Perfetti was able to capture a large market share within a short period of time because of its good product portfolio, distribution network that covered even smaller towns and villages, and effective brand building exercises. Perfetti was of the view that it could not improve the sales in India by just providing higher margins to the channel members. 

Instead, it needed to focus its efforts on promoting the products. As confectionery products are more of impulse buys, the company felt that it could pull consumers through heavy advertising and marketing of the products and thereby improve its sales. 

Questions for Discussion: 

  1. With international marketers accepting ads from Indian agencies, do you think that the Indian advertising industry has finally grown to be recognized worldwide? What challenges should the agencies overcome, to establish themselves as a viable outsourcing base for creative services?

  2. What advantages would foreign companies accrue if they outsourced their advertising needs to Indian ad agencies?

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Dr.ARAVIND BANAKAR 

aravind.banakar@gmail.com

http://www.mbacasestudyanswers.com

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