Mini project mudra-ad-agency-manendra shukla

Mudra communication limited

PROJECT REPORT
ON
CLIENT RELATIONSHIP MANAGEMENT (CRM) &
PROFITABILITY OF ADVERTISING FIRM

(SUBMITTED ON THE PARTIAL COMPLETION OF
POST GRADUATION DIPLOMA IN MANAGEMENT)

SUBMITTED BY: -

Manendra shukla
P.G.D.M
Master School of Management
Session – 2010-2012

MASTER SCHOOL OF MANAGEMENT , MEERUT(U.P.) 1


Introduction;
One client Vimal and a 500 sq ft office that was Mudra in the year 1980
They were a small agency tucked away in Ahmadabad with one clearly
Articulated goal to be a top 5 agency .there ambition with an almost manic
obsession by creating the best contemporary advertising that had our client
and other people taking notice.
As a young agency operating out of Ahmadabad its growth was driven
helping small business with big ambition explode their brands to the country
at large.
With in 9 years they were the largest Indian advertising agency.

HISTORY POINTS :-

• Mr. A. G. Krishnamurthy founded Mudra communication on 25th march
1980

• Mr. Krishnamurthy started his advertising career with Shilpi advertising
in 1976

• He moved to Reliance Industry as advertising manager 4years later he
founded Mudra communication

• Mr. Krishnamurthy started Mudra with one brand Vimal .today Mudra
has 125 client this multifold increase is a testy many to his passion and
zeal

• In 1991 he created the Mudra institute of communication Ahmadabad
(MICA) the only advertising school of it s kind in Asia

• In 1995 Mr. Krishnamurthy was nominated as advertising person of the
year



PROFILE OF MUDRA COMMUNICATION LTD

Head quarter Mumbai
Industry Marketing and advertising
Type Privately held
Status Operating
Founded 1980
Sanjay Sharma New president(North & East)
Company size 501-1000 employees
Web site www.Mudra.com

Members in the management of the Mudra
communication ltd

Name Designation
Sebastian Joseph Executive, vice-president and head technology
Mohit Bhagchandani Country head, Mudra sport
Joy Deep Dasgupta Vice president and national strategic, planning
head
Sonal Jheej Account planner

Present situation of Mudra communication;
It was started in 1980 Mudra rose to become the 3rd largest agency in the
country. In a short span of nine years, today the Mudra group is one of the
India s leading marketing communication networks
The group utilizes it s deep understanding of consumers brands and media to
deliver creative business solution –A customized and collaborative approach
helps it s client build enduring and profitable brands
The group offers integrated communication services through it’s platform
(1) Mudra and DDB
(2) Mudra (advertising)
(3) Mudra max (integrate communication planning and implementation) (4)
Mudra health and life style (health and life style advertising)
(5) Water (brand strategy and design consulting)

In the present year Mudra is poised to exceed a turnover in excess of 15
billion at it continues to maintain it s aggressive growth rate.
Mudra is one of the management admired marketing communication network
in the country a highly rated agency both by client and industry.



Mudra south won the agency of the year at the ad club Cochin’s paper awards

Achievements of the Mudra communication ltd

*It was a Mudra that first gave India double spread colors ads
*it was Mudra that first sponsored commercial telecast of a major sporting
event with the India and west Indies series of 1983
*it was Mudra that first branded a public issue Reliance Khazana
*it was Mudra that made India s first telefilm Janam
*it was Mudra that gave Doordarshan Rajani .The serial that heralded a new
consumer awareness in India
*it was Mudra that gave India s it s first academy for advertising.
THE Mudra Institute of Communication (MICA)
*it is a Mudra that gave India s advertising community its first advertising
archives marketing and Advertising Gallery(MAG)

MEMORABLE ADVERTISING

Mudra has created some of the most memorable advertising in India they are;

1. Only Vimal

2. I Love You Rasna



3 My Daddy Strongest

4. The World in Your Pocket

6 The Mint With The Hole

7 Team Samsung



8 McDonalds Mein Hai Kuch Baat

9 Kar Lo Duniya Muthi Mein

People working in an agency:
Accounts Executive: It is a key career option in advertising agency. He is
called an Account Director when he is a member of the Board. He is a link
between a client and his staff. The marketing or advertising department of the
client briefs him. He communicates this to the agency people.

He reaches out to different clients for seeking new business. Even clients
who want an agency' to work for them contact the accounts executive. This
business development work makes it virtually a marketing manager of the
agency.

Do right-brained people make better account directors?

The faculties of logic and reason are supposed to reside in the left-
brained people. While intuition and creativity are believed to be in the right. So
far, accounts director was considered suitable if logical and systematic, i.e.,
left-brained. But if he has to motivate a team, he should be inspiring and
creative too, i.e., right-brained.

Copywriters: They are the wordsmiths who do the wording of an
advertisement. They are bright and talented. They have a flair for language.
They contribute to the theme of an advertisement. Creation of successful copies



for different clients establishes them in this field.

Visualisers: These are artists who put on paper what has been thought out by
the copywriter. They in fact design the ad.

Creative Director: He co-ordinates the copywriting and designing. He is a
senior professional who is seasoned in an existing advertising agency set-up to
take on this mantle.

Production Department: Persons of diverse talents like printing technology,
DTP, photography, typography etc. are involved here.

Media Planner: He has to allocate the advertising budget amongst media. He
has to select the appropriate media. He decides about the frequency, size and
position of an advertisement. He decides about its publication date. He receives
the tear-off copies from the media when the ad is published. He is guided by
the media research, which he undertakes, or by research undertaken by an
outside agency. Media is the most professionalized department of advertising
agencies.

Marketing Research: Modern agencies are integrated set-ups. They provide a
range of marketing services. Research data become very useful as input to the
creative process.

The Media : Most of the media today sustain on advertising revenue. They sell
space or time. While selling space or time, they have to convince the client
about the reach of their media vehicle, the composition break-up of their
readers and the pricing of their space/time selling. They monitor the market,
survey their readers, and highlight their readers' demographic and geographic
characteristics. They also maintain relationship with the media department of
advertising agencies who buy space/time on behalf of clients.

Ancillary Services : These are needed to produce/create advertisement. A
whole range of services like studio service, photographic service, printing
service, gift item producers etc. fall into this category.

Freelancers : These are professionals who work independently and have a
successful track record. They are copywriters, jingle singers, radio announcers,
artists, visualizers, technical writers etc.

Organization Structure of Advertising Department

All major advertisers maintain an advertising department. The structure of



the department however may vary from one organization to another, as each
one tries to develop a form, which is most suited to one's requirements. The
principal forms of organizational structure are based on
• sub functions of advertising, such as copywriting or artworks
• communication media
• geographical spread
• product and
• End users.

Irrespective of the specific form, the advertising department has to perform
several functions. Principal among these are setting advertising goals, plans
and budget, selecting the outside ad agency, maintaining contacts, providing
support to the marketing staff and monitor the functioning of the ad agency.
Selecting the ad agency is one of the important tasks of the advertising
department. Several criteria, including experience, size, track record and the
quality of the personnel, are considered in the selection process.

As you know, there are different categories of advertisers. Depending upon
their functions, each organization develops its own structure, of which
advertising department is a part. What is important in this connection is to
analyze the functions an advertisement department is expected to perform.

Organization is a Manufacturing Unit-
Manufacturing firms carries out bulk of advertising. It is therefore,
necessary to understand the various principles on which the advertising
department can be organized in manufacturing units. The basic principles are:

(a) By Sub-functions of Advertising :Advertising as a function can be
segmented into its various components, such as, Copywriting, Art Production
and Media. A specialist who in turn reports to the advertising manager can
handle each component.



Advertising Manager

Copywriting Manager Art Manager Production Manager Media Manager

(b) By Media
Advertising Manager

Newspaper Broadcasting Magazine TV Outdoor Direct mailing

© By Product

Advertising Manager

Product A Product B Product C Product D

(d) By Geography
Advertising Manager

Zonal Manager A ZM(B) ZM (C)

(e) By End User
Advertising Manager

Consumer Institutional Government
Market Manager Market Manager Market Manager



Reporting Structure:
The advertising manager has to report to somebody who is higher
up in the organizational structure. To whom the advertising manager
would depend upon how much importance advertising is given to the
total operations of the firm. There are several alternatives.
These are:
• Report to the Chief Executive (Chairman/MD.)
• Report to the Director (Marketing)
• Report to the divisional head if the firm is a multi-division firm and
responsibility is delegated at the division level.

Services offered by agency ;--
Total Advertising Services :Strategic planning, creative development
and media services for advertising, particularly in television, newspapers,
magazines and radio; providing the best creative designed to capture the
imagination of consumers

Marketing Services: Provision of a number of advertising related
services, including sales promotion, market research, PR and event
marketing.

E-Solution Services : e-solution services, including system integration
services, e-business consulting and customer relationship management
(CRM), Search Engine Marketing (SEM) and Search Engine Optimization
(SEO) and e-promotions using the Internet and mobile.

Content Business: Sales of sponsorship, broadcasting and other rights,
and the production and marketing of such media / content as sporting
events, films, TV programs, animated content, music and other forms of
entertainment.

Integrated Media Services : Bringing value to both clients and media-
related companies by offering a wide range of media solution services

Sales Promotion : Providing comprehensive sales promotion planning
designed to complement mass media and other activities

Event Marketing : Assisting clients by providing dynamic vehicles for
their messages in the form of on-the-spot interactive communications



Integrated Branding Services : Assuring clients the highest quality of
branding services for their communication needs

Services: Services are provided by the organization

1 Mudra is a today the largest Indian advertising agency .it s meteoric
growth has been driven by some epochal work Mudra has created some
of most memorable advertising like
1. Only Vimal
2. I Love You Rasna
3. My Daddy Strongest
4. Humko Binie Mangta
5. The World in Your Pocket

Today it handles over 125 client nationally .though it s four
independent units they are;

1 Mudra Mumbai
2 Mudra South (including Bangalore, Chennai, Cochin)
3 Mudra north Ahmadabad
4 Mudra north and east (including Delhi and Kolkata)

Mudra often the entire spectrum of brand communication
competency ranging from strategic planning brand management creative,
Mudra is also one of the few agency networks in the country that offers a
comprehensive suit of marketing services under one umbrella .these are
supported by the largest national network among all agency.

2 Mudra health and life style (MHL);
It is specialize in the emerging common needs of the health core
industry marrying in-depth understanding of the medical business with
refreshing consumer doctor and channel insight it is uniquely positioned
to address .the common requirement of the health and life style space
MHL also has a strong track record in the domain of social common and
pharmaceutical brand promotion.
Mudra health and life style client included J&J medical buyer
Bistol – Myers Squibb, Alembic, Unicef & USV among others.



CLIENTS

1. Paras Pharmaceuticals
2. Reliance Communication
3. Union Bank Of India
4. Life Insurance Cooperation Of India
5. Godrej
6. The Philips
7. Hindustan Unilever Ltd.
8. Pepsi
9. Jet Air Ways
10.Reliance ADAG
11. Spice Telecom
12. ICI Points
13. Union Bank Of India
14.Amrutanjan
15.Mahanagar Telephone Nigam Ltd (Corporate);
16.Indian Express (News Paper);
17.Mid-Day (Website);
18.Global Trust Bank (Banking);
19.Indian Tourism Development Corporation (Hotels);
20.Business Standard (Publications);
21.Raj TV (TV Channel);
22.Henkel Spic India (Detergents);
23.Godrej Foods;
24.Ahmedabad Electricity Co Ltd (Corporate);
25.LIC Of India (Insurance - Services);
26.Honda Siel Power Products (Gensets);
27.Satyam Computer Services Ltd (Satyam - Computer Software);
28.Satyam Infoway Ltd (Satyam - Internet Services);
29.Compaq (Compaq - Computers);
30.Cadila Healthcare Ltd (Everyuth - Healthcare);
31.Blow Plast Ltd (VIP Skybags - Luggage Carrier);
32.Dabur Ayurvedic Specialities Ltd (Nature Cure - Ayurvedic
Products);
33.Henkel Spic India Ltd (Fa - Soap);
34.Hindustan Motors Ltd (Mitsubishi Lancer - Automobile)



AWARDS

Mudra communication ltd. has got national and
international awards.

1. International awards- Number of award-230 like Connes,
D&AD, Clio, One show, Ad fest, communication arts, New York
festivals and others

2. National awards – Number of awards-825 like Abby, CAG, Ad
clubs, AAAI show case of India advertising and others

3. Agency of the year 8 times – Mudra founder A.G. Krishna
Murty has been honored multi times including
• Calcutta Ad club Hall of fame
• A&M Ad person of the year
• Media international one of the international Ad industry
1998
• AAAI premnrayon award recognition of pioneering spirit and
entrepreneurial vision
• Mudra south agency of the year at paper award and the Ad
club Cochin.



SWOT Analysis of Mudra communication

Strength

- Satisfying the need of the customers
- Meeting up the client requirements in time
- Innovative & creative in advertisement segment
- Quality in advertisement
- Global exposure with higher rewards & appreciation
- Efficient team working environment

Weakness

- Pricing strategy
- Lack in promotion strategies towards increasing the brand name.

Opportunities

- Entering in global market to attract global clients
- Being the oldest advertising agency in India, it brand among its
clients- they have lot of client coming back with new product for
getting advertised.
- In its successful journey, they lot of wonderful memorbal
advertisement done by them- this has increased there brand image
in the Indian market.

Threats

- Challenging stiff competition from its competitor’s from both
domestic & international levels.
- Changes in the taste & preferences of clients.
- Lack of creative minds & also too expensive in overall
management.



Competitors of the Mudra communication;

AGENCY PLACE
Adbur Pvt Ltd Ghaziabad
Akshara Advertising New Delhi
Ambience D’Arcy Mumbai

Chaitra Leo Burnett Mumbai -
Pvt Ltd

Financial Data and Analysis

(a) Dec. 31 Accounts Receivable................................................... 2,500
Advertising Revenue.........................................
2,500

31 Art Supplies Expense.................................................. 3,600
Art Supplies.......................................................
3,600

31 Insurance Expense...................................................... 850
Prepaid Insurance.............................................
850

31 Depreciation Expense................................................. 6,000
Accumulated Depreciation...............................
6,000

31 Interest Expense.......................................................... 150
Interest Payable.................................................
150

31 Unearned Advertising Fees........................................ 1,600



Advertising Revenue.........................................
1,600

31 Salaries Expense.......................................................... 1,300
Salaries Payable................................................
1,300

(b) Mudra communication limited
Income Statement
For the Year Ended December 31, 2011

Revenues
Advertising revenue.................................................................
$62,700
Expenses
Salaries expense........................................................................ $11,300
Depreciation expense............................................................... 6,000
Rent expense............................................................................. 4,000
Art supplies expense................................................................ 3,600
Insurance expense.................................................................... 850
Interest expense........................................................................ 500
Total expenses.................................................................
26,250
Net income .......................................................................................... $36,450

Retained Earnings Statement

Retained earnings, January 1................................................................................ $
500
Add: Net income....................................................................................................
36,450
36,950
Less: Dividends.......................................................................................................
12,000



Retained earnings, December 31...........................................................................
$24,950

Balance Sheet

Assets
Cash ................................................................................................ $11,000
Accounts receivable.......................................................................
22,500
Art supplies.....................................................................................
5,000
Prepaid insurance..........................................................................
2,500
Printing equipment........................................................................ $60,000
Less: Accumulated depreciation.................................................. 34,000
26,000
Total assets..................................................................
$67,000

Liabilities and Stockholders’ Equity
Liabilities
Notes payable........................................................................
$ 5,000
Accounts payable.................................................................
5,000
Unearned advertising fees...................................................
5,600
Salaries payable....................................................................
1,300
Interest payable....................................................................
150
Total liabilities............................................................
17,050
Stockholders’ equity
Common stock...................................................................... $25,000
Retained earnings................................................................. 24,950



Total stockholders’ equity.........................................
49,950
Total liabilities and stockholders’
equity......................................................................
$67,000

(c) (1) I=PXRXT
$150 = $5,000 X R X 1/2
$150 = $2,500R

R = $150
$2,500
R = 6%

(2) Salaries Expense, $11,300 less Salaries Payable 12/31/08, $1,300 =
$10,000. Total payments, $12,500 – $10,000 = $2,500 Salaries Payable
12/31/07.

Conclusion:
In today’s world which is fast moving & dynamic, people’s wants,
need and desires are changing; it’s very important to know them and give
them what they want. This is the main objective of advertising where ad
agency plays major role in market research, making of creative,
launching it in the market, taking the feedback of consumer and making
any product famous and acceptable among consumers. Ad agencies are
playing an important role in shaping present and future of not just
selected brand but of entire company.

There is no one -- sure-fire -- best way to advertise your product or
service. It is important to explore the various advertising media and
select those which will most effectively convey your message to your
customers in a cost-efficient manner. Always to be remember,
advertising is an investment in the future of your business.

Ad agency is service industry it is growing very fast .talented
people are hired and they are showing there creativity ability .the ad
agency are providing services to the branded company carrying there
advertisement campaign most effectively.

They know how to attract the consumers .from one side agency are
very costly they are charging more money for the advertisement



campaign. On other side it is useful to the company .the ad agency can
launch the company product in better way.

I think ad agencies are playing key role in-increasing the brand &
performance of a product or services of a company. Thank to ad agencies
contribution for changing our world of dreams & desire.

Bibliography-

Marketing management by Philip kotler
Advertising principle practice by Burnett wells Mariraty

www.google.com
www.india advertising agency.com
www.yahoo.com
www.msn.com

Mudra Communications Ltd
Mudra House, Sheth CG Rd, Ellisbridge, Ahmedabad 380 006
Tel: (0091 79) 656 5659 Fax: (0091 79) 642 5058

Branch telephone numbers:
Ahmedabad: (0091 79) 646 1530/23
Bangalore: (0091 80) 5588692
Delhi: (0091 11) 616 5290/92
Mumbai: (0091 22) 496 4800
Chennai: (0091 44) 825 0932, 8273151
Calcutta: (0091 33) 474 9084/85
Hyderabad: (0091 40) 3314181, 3390494
Kochi: (0091 484) 365750/301
E-mail: r.arora@mudra.com
URL: www.mudra.com

Capitalised billings: Rs 5232.54 million
Television billings: N.A.


Mini project mudra-ad-agency-manendra shukla

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