Surrogate Advertising

1. INTRODUCTION TO THE STUDY

1.1. ADVERTISING INDUSTRY
Advertising is a form of communication used to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group of people) to continue or take some new action. Most commonly, the desired result is to drive consumer behaviour with respect to a commercial offering, although political and ideological advertising is also common. The purpose of advertising may also be to reassure employees or shareholders that a company is viable or successful. Advertising messages are usually paid by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blogs, websites or text messages.
Commercial advertisers often seek to generate increased consumption of their products or services through "branding," which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Non-profit may rely on free modes of persuasion, such as a public service announcement (PSA).
Advertising is one of the key activities for potential business and is equally important as producing something using raw material, or as capital, manpower, planning, organizing etc. products or services. Publicizing what the business offers to the targeted customers is called advertising, which forms the integral part of marketing and an essential precondition for selling. Advertising is done with vast population and requires organizing and applying human skill and talent and technology backed media.
Indian advertising industry is talking business today and has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in a short span of time has carved a niche for itself and placed itself on the global map.
Indian advertising Industry which has an estimated value of Rs.13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds of the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising.
In the year 2009 the industries attrition rate is as high as 20-25% which was sober in that sense. According to industry executives the attrition rate is below 5%, implying that most had to stay put and deliver on their briefs in their respective agencies.
The ads shown to us are sometimes innovative and sometimes they really get on your nerves, especially when they are repeated time and again. This happens when there is something sponsored by them say a tennis match or an award ceremony, etc. Advertisements usually amaze people with their creativity and presentation, whereas some are really horrible in the depiction of their ideas. The Indian ad agencies have some of the most creative and talented people around which is attested by the fact that global companies are approaching Indian ad agencies to handle their media campaigns.
Advertising companies use multifaceted talents and ideas to carry out successful campaign. With huge innovative development of electronic media, advertising has grown as an organized industry, offering a lot of employment opportunities. Indian Advertising Industry has been reshaped by regulatory and technological changes over the past times as before it did not have many opportunities. With the advent of radio, TV, Print and outdoor it has been able to gain much potential. The development involved the deregulation of FM radio, Direct to Home broadband, the implementation of Conditional Access System (CAS) and foreign direct investment has made the industry much faster than before. Indian Advertising industry is increasingly attracting the attention of many foreign companies and communication agencies, by opening business avenues for the small and medium marketing agencies in India.

1.2. HISTORY OF ADVERTISING
Egyptians used papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. History tells us that Out-of-home advertising and billboards are the oldest forms of advertising.
As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts for the convenience of the customers.
As education became an apparent need and reading, as well as printing, developed advertising expanded to include handbills. In the 18th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack" advertisements became a problem, which ushered in the regulation of advertising content.
19th century
As the economy expanded during the 19th century, advertising grew alongside. In the United States, the success of this advertising format eventually led to the growth of mail-order advertising.
In June 1836, French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volney B. Palmer established the roots of the modern day advertising agency in Philadelphia. In 1842 Palmer bought large amounts of space in various newspapers at a discounted rate then resold the space at higher rates to advertisers. The actual ad - the copy, layout, and artwork - was still prepared by the company wishing to advertise; in effect, Palmer was a space broker. The situation changed in the late 19th century when the advertising agency of N.W. Ayer & Son was founded. Ayer and Son offered to plan, create, and execute complete advertising campaigns for its customers. By 1900 the advertising agency had become the focal point of creative planning, and advertising was firmly established as a profession. Around the same time, in France, Charles-Louis Havas extended the services of his news agency, Havas to include advertisement brokerage, making it the first French group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. N.W. Ayer opened in 1869, and was located in Philadelphia.
20th century
At the turn of the century, there were few career choices for women in business; however, advertising was one of the few. Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women's insight during the creative process. In fact, the first American advertising to use a sexual sell was created by a woman – for a soap product. Although tame by today's standards, the advertisement featured a couple with the message “The skin you love to touch”.
Modern advertising was created with the innovative techniques used in tobacco advertising beginning in the 1920s, most significantly with the campaigns of Edward Bernays, which is often considered as the founder of modern, Madison Avenue advertising. The tobacco industry’s was one of the firsts to make use of mass production, with the introduction of the Bonsack to roll cigarettes. The Bonsack machine allowed the production of cigarettes for a mass markets, and the tobacco industry needed to match such an increase in supply with the creation of a demand from the masses through advertising.
On the radio from the 1920s
Advertisement for a live radio broadcast was first sponsored by a milk company and published in the Los Angeles Times on May 6, 1930.
In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups.
When the practice of sponsoring programs was popularised, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows. However, radio station owners soon realised they could earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio station's broadcasts, rather than selling the sponsorship rights to single businesses per show.
Public service advertising in WW2
The advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non-commercial issues, such as HIV/AIDS, political ideology, energy conservation and deforestation.
Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences. "Advertising justifies its existence when used in the public interest—it is much too powerful a tool to use solely for commercial purposes." Public service advertising, non-commercial advertising, public interest advertising, cause marketing, and social marketing are different terms for (or aspects of) the use of sophisticated advertising and marketing communications techniques (generally associated with commercial enterprise) on behalf of non-commercial, public interest issues and initiatives.
In the United States, the granting of television and radio licenses by the FCC is contingent upon the station broadcasting a certain amount of public service advertising. To meet these requirements, many broadcast stations in America air the bulk of their required public service announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers.
Public service advertising reached its height during World Wars I and II under the direction of more than one government. During WWII President Roosevelt commissioned the creation of The War Advertising Council (now known as the Ad Council) which is the nation's largest developer of PSA campaigns on behalf of government agencies and non-profit organizations, including the longest-running PSA campaign, Smokey Bear.
Commercial television in the 1950s
This practice was carried over to commercial television in the late 1940s and early 1950s. A fierce battle was fought between those seeking to commercialise the radio and people who argued that the radio spectrum should be considered a part of the commons – to be used only non-commercially and for the public good. The United Kingdom pursued a public funding model for the BBC, originally a private company, the British Broadcasting Company, but incorporated as a public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were likewise able to persuade the federal government to adopt a public funding model, creating the Canadian Broadcasting Corporation. However, in the United States, the capitalist model prevailed with the passage of the Communications Act of 1934 which created the Federal Communications Commission (FCC). However, the U.S. Congress did require commercial broadcasting companies to operate in the "public interest, convenience, and necessity". Public broadcasting now exists in the United States due to the 1967 Public Broadcasting Act which led to the Public Broadcasting Service (PBS) and National Public Radio (NPR).
In the early 1950s, the DuMont Television Network began the modern practice of selling advertisement time to multiple sponsors. Previously, DuMont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the standard for the commercial television industry in the United States. However, it was still a common practice to have single sponsor shows, such as The United States Steel Hour. In some instances the sponsors exercised great control over the content of the show—up to and including having one's advertising agency actually writing the show. The single sponsor model is much less prevalent now, a notable exception being the Hallmark Hall of Fame.
Media diversification in the 1960s
In the 1960s, campaigns featuring heavy spending in different mass media channels became more prominent. For example, the Esso Gasoline Company spent hundreds of millions of dollars on a brand awareness campaign built around the simple and alliterative theme Put a Tiger in Your Tank. Psychologist Ernest Dichter and DDB Worldwide copywriter Sandy Sulcer learned that motorists desired both power and play while driving, and chose the tiger as an easy–to–remember symbol to communicate those feelings. The North American and later European campaign featured extensive television and radio and magazine ads, including photos with tiger tails supposedly emerging from car gas tanks, promotional events featuring real tigers, billboards, and in Europe station pump hoses "wrapped in tiger stripes" as well as pop music songs. Tiger imagery can still be seen on the pumps of successor firm ExxonMobil.
Cable TV from the 1980s
The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a by-product or afterthought. As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and Shop TV.
On the internet from the 1990s
With the advent of the ad server, marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising.
The share of advertising spending relative to GDP has changed little across large changes in media. For example, in the US in 1925, the main advertising media were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9 percent. By 1998, television and radio had become major advertising media. Nonetheless, advertising spending as a share of GDP was slightly lower—about 2.4 percent.
A recent advertising innovation is "guerrilla marketing", which involves unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. Guerrilla advertising is becoming increasingly more popular with a lot of companies. This type of advertising is unpredictable and innovative, which causes consumers to buy the product or idea. This reflects an increasing trend of interactive and "embedded" ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social network services such as Facebook.
1.3. TYPES OF ADVERTISING
Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popup, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logo jets"), in-flight advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.
Mediums of advertising, according to priority:
• TV
• Print (Newspaper, Magazines)
• Outdoor
• Digital
• Radio
• Activation
• Internal Branding/Shopper Marketing

1.4. INDUSTRY STRUCTURE
Fig A: Chart Showing the Structure of the Industry

1.5. PLAYERS IN THE MARKET
Ogilvy and Mather:
This is one of the leading advertising companies in India. This organization believes that devotion to the brand defines the profile of their company. This company has offices across the globe. The objective of the company is to build brands. It is a subsidiary of WPP Group plc. The company headquarter is in New York.
J Walter Thompson India:
One of the most popular companies in the advertising industry is J Walter Thompson India. Their objective is to make advertising a part of the life of the consumers. This is also world's best advertising brand with about 200 offices in 90 countries. This company is the first one to introduce pioneer careers in ad for women, sex-appeal ads and also produced the first ever sponsored -TV program.
McCann-Erickson India Ltd:
The prominent name among the best advertising companies of India is McCann-Erickson India Ltd. They define work in relation to the impact that advertising has on the lives of masses. The testimony of the company in which it firmly believes is the campaign of Coca -cola-'Thanda Matlab Coca Cola'.
Lowe Lintas India:
It started in 1939 and Lowe Lintas India is today, a star office of the Lowe Worldwide network headquartered in London and an owned company of the Interpublic Group headquartered out of New York.
Leo Burnett India Private Limited:
It has a significant presence in about 96 offices in 10 countries. This advertising agency was awarded the 'Worldwide Agency of the Year' in 2004.They are proficient in explaining how a single image is worth thousand words and can break the barriers of language but not at the cost of the ad's emotional power.
Mudra Communication Private Limited:
This is one of the renowned advertising companies of India. This advertising organization was founded in the year 1980 at Mumbai. Recently the Ad Company declared the addition of public relations, rural marketing, events etc. The head office of the company is in Bombay Area.
Rediffusion-DY&R:
This Advertising Company of India has made a benchmark in the field of creativity. India's 5th largest advertising company is Rediffusion. This advertising agency offers a wide array of integrated PR services for external and internal communications. The primary strength of the company lies in the media relations.
FCB-Ulka Advertising Ltd:
One of the best companies in India in the advertising arena is FCB-Ulka Advertising Ltd. In US, this advertising company ranks third and tenth in the world having about 188 offices in 102 countries. Their aim is to reflect the needs of the brand and not the personality of the brand. It has about 500 professionals and no prima donnas.
BBDO Advertising Ltd (Batten Barton Durstine Osborne):
It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973, this advertising reached great heights. This is also India's No.1 research company in the market sector and is fully run by Indians. Brand Equity is an integral part of the company.
Crayons Advertising and Marketing Private Limited:
This company is in existence from 25 years and the clients of this company include Air India, MTNL, Bank of Maharashtra and many more.
Euro RSCG Advertising Private Limited:
The company is the global agency network and the largest brand of Havas, the 5th largest global communications group. The company has its presence in Bangalore, Delhi and Mumbai. It ensures to provide solutions according to the business requirements.
Madison Advertising Private Limited:
The company is 23 years old and is famous in this advertising sector. It deals in Advertising, Media, PR, Rural retail, entertainment, mobile and sports, business analytics.
Sasi Advertising Private Limited:
This agency is 30 years old and is one of the largest among South Indian Advertising Agency. The company deals with Branding, Public Relations, Event Management, Direct marketing and many more
Xebecindia Private Limited:
The company offers variety of services like Brand Building, Print Production, Advertising, Public Relations and Market Research. It has clients like Tibco, Mphasis, Lipi Data Systems, Bristlecone, BMC, Studentsguild.com and many more.
Adya advertiser Private Limited:
This company is based in India and deals in Train Branding in Delhi, Kolkata Mumbai, Chennai etc., Boards & Glow Signs on Railway Stations, Bus Panels (Inside & Outside the bus), Train Panels (Inside & Outside), Solus Railway Station Branding, Complete Bus Exterior Branding, Complete Exterior Loc and many more.
Contract Advertising India Ltd:
Contract Advertising has built a reputation for igniting the flames of passion that have created trailblazing brands across industries. Besides mass media advertising, Contract offers truly integrated marketing and communication solutions through its specialist divisions.
Publicis Worldwide
Publicis is the largest global network within the Publicis Group, with more than 200 offices, in 82 countries and over 9,000 communication experts. Publicis Groupe is a French multinational advertising and public relations company, headquartered in Paris, France. It is one of the world's three largest advertising holding companies (the others being Omnicom, and WPP). Its current president is Maurice Lévy. Publicis Groupe S.A. provides digital and traditional advertising, media services, and specialized agencies and marketing services (SAMS) to national and multinational clients.
1.6. INDUSTRY VOLUME
After facing rugged recession, the Indian advertising industry is now looking at ways and means to rejuvenate its sagging market share, according to industry experts. After growing at nearly 20% year on year for five years, the advertising market dipped in 2009, by as much as 10%. Just 0.4% of GDP is contributed by advertising market. It’s now growing and making up for the lost time, with sharp strategies and plans to develop brands, markets, creativity, media markets and research according to researchers.
The global Advertising Industry as far as scale of operations and scope is concerned the turnover is close to USD 450 billion annually. Indian Advertising Industry contributes less than 1.5% which is next to China and Russia. The Global Ad Industry was expected to reach a growth rate of 2% in 2010 which was better than 2009 while Indian Ad Industry in contrast estimates to reach the growth rate of 10% figuring about Rs.23700 crores. The reasons are because of the IPL, Foot ball World Cup and the Commonwealth Games.
India contributes to 17% of the world population but is only 0.7% of the world advertising market so it has huge potential to grow in future. Experts reveal that total advertisement spending by the political parties would be around Rs 800 crore. The Congress and the BJP alone could spend over Rs 400 crore on ads on television, radio and newspapers. Most of the ads appear on going to general entertainment and regional TV channels and hardly a small proportion in News channels.
Indian advertising spends as a percentage of GDP – at 0.34% which is comparatively low, as opposed to other developed and developing countries, where the average is around 0.98%, which requires a lot space for development and enhancements in the Indian Advertising Industry.
The turnover of Indian Advertising Industry is less than 1% of the national GDP of the country as compared to 2.3% of share of US to the GDP which indicates the tremendous growth potential for India. According to the PITCH-Madison Media Advertising Outlook 2010 analysis, the Indian advertising pie is expected to be worth about Rs 21,145 crore this year, a 13% increase over the previous one. The Indian media and advertising industry clocked a size of Rs 18,670 crore in 2009 and that saw a dramatic drop of 10% points compared to 2008, where the industry was worth Rs 20,717 crore. Total advertising market grew 17% in 2008 and is projected to increase.
In the year 2011, the total pie of the Indian advertising industry stood at Rs 25,594 crore, recording a growth of 8%. The figure was far below the earlier projection of 17% as the Indian economy was faced with yet another churn, an inflation that touched 10% and weakening of the Rupee against the dollar.
As per the Pitch Madison Media Ad Outlook, the growth projections for the ad industry for 2012 remained a cautious 8-9 %, with a total ad pie of Rs 28,013 crore.
As rules of the advertising game change rapidly, online or digital marketing market size in India is estimated to touch close to Rs 2,000 crore in the next two years from a Rs 1,400 crore now, say management experts.

1.7. CURRENT SCENARIO
The Indian advertising industry has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors. The Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map. The creative minds that the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising agencies in the country too have taken a leap from being small and medium sized industries to becoming well known brands in the business. Growth in business has lead to a consecutive boom in the advertising industry as well.
The Indian advertising today handles both national and international projects. The industry offers a host of functions to its clients that include everything from start to finish like client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services. The industry is expected to witness a major boom in the times ahead and is believed to form a major contribution to the GDP.

2. COMPANY PROFILE

2.1. EARLY HISTORY
Grey Advertising got its start on August 1, 1917, when 18-year-old Larry Valenstein founded Grey Studios. Too young to be sent overseas to fight in World War I, and having left college, Valenstein borrowed $100 from his mother and leased an office at 309 Fifth Avenue in New York. The fledgling entrepreneur set up shop as a direct mailer. Valenstein had worked previously as an errand boy at another direct mail firm, and he felt that he had learned enough at that job to strike out on his own. Valenstein's new business got its name from the colour of his office's walls: slate gray.
Every six months, Grey Studios produced direct mail folders in which New York's furriers advertised their wares. As the business grew, Valenstein added new employees, taking on an art director and an assistant. Four years after its founding, Grey Studios moved to its second set of offices. Located at 41 East 29th Street, the company's two tenement rooms also served as a home for its art director. Needing extra help, Valenstein hired 17-year-old Arthur Fatt as an office boy in 1921.
It was Fatt, with a flair for salesmanship, who suggested several years later that the company replace its biannual mailers with a magazine published nine times a year and designed to showcase the products of the company's clients. After Fatt presented his boss with the title Furs & Fashions and a dummy issue, Valenstein was persuaded, and Grey Studios launched the publication.
Furs & Fashions soon became a success, and with the capital generated from this publication, Grey Studios was able to move from direct mailing to advertising, a logical outgrowth of the direct mail business, and a long-sought goal of the company. In 1925, Valenstein and Fatt renamed the company Grey Advertising.
Grey placed its first national advertisement in the August 1926 issue of the Ladies Home Journal. Drawing on the company's longstanding relationship with the fur industry, it featured a spot for Mendoza Fur Dyeing Works, Inc., of New York, for which the agency was, incidentally, never paid.
In 1930, Grey Advertising moved to its third New York location, on East 30th Street, just off of Fifth Avenue. In the 1930s, the company built on its historical affiliation with the New York garment industry, of which the fur industry was a part, to develop a reputation as an advertiser for retail stores and their merchandise. As a Seventh Avenue-area firm, based in the world of fashion, Grey Advertising became known as a soft goods specialist, dedicated to promoting manufacturers who retailed their wares in department stores. By 1938, the company was earning $250,000 a year in billings.
Grey's leaders concentrated on attracting high-quality creative talent throughout the 1940s, despite the fact that the entry of the United States into World War II made recruiting workers in a wartime economy difficult. Grey Advertising continued to turn a profit during the war years. As the American economy boomed in the aftermath of the war, the agency's sales reached $1 million a year.
Despite this success, Grey's leaders realized that their competitors in the New York advertising industry were growing at a faster rate than they were, mainly as a result of their work for companies that manufactured packaged goods. These products, sold in grocery stores or drug stores, as opposed to department stores, had low prices, were sold in large quantities, and brought unparalleled prestige and professionalism to an advertising agency. In 1946, Grey acquired its first packaged goods client, the Mennen Company.
By the end of the 1940s, Grey's size and profits had grown so large that its two leaders instituted an employee stock-ownership plan, so that their co-workers could also participate in the company's good fortune. In 1955, Grey notched another important packaged goods client, Block Drug.
In the following year, Valenstein moved up to chairman of the agency, and Fatt became president of Grey. Shortly thereafter, the company scored its biggest coup in the packaged goods field. In 1956 Grey added manufacturing giant Procter & Gamble to its client list, after the company's previous ad agency had gone out of business and many of its employees had moved over to Grey.
Part of the importance of packaged goods clients lay in their heavy use of television advertising, and as the medium grew in importance throughout the 1950s, Grey increased its involvement with television advertising. As the manufacturers who advertised on television saw their businesses grow, so did the advertising agencies who worked for them. In addition, Grey began to hone its prowess at market research during this time by focusing on the broader picture of market strategy, as opposed to narrow campaigns for a single product.
International Expansion in the Late 1950s
In 1959 Grey opened its first international office, in Montreal. In that year, the agency's billings reached 44.61 million. Two years later, Valenstein and Fatt gave up their day-to-day duties at the agency they had created and became chairmen of Grey's executive committee. Herbert Strauss, an agency employee since 1939, took over as president.
With Strauss at the helm, Grey began a dramatic geographical expansion. In 1962, the company opened an office in Los Angeles called Grey-Western Division. In addition, the agency looked east, purchasing part of an English agency called Charles Hobson.
This was followed, in 1963, by expansion to Japan. Also in that year, Grey became one of the first advertising agencies to branch out into public relations by establishing Grey Public Relations, the company's first subsidiary. By the next year, Grey's billings had topped $100 million, more than doubling in just five years. In addition, the company had moved into Belgium, France, Germany, and Italy. Toronto, the company's second Canadian office, would be added in the next year. Overseas offices were responsible primarily for handling the international needs of Grey's American clients.
By 1965 Grey employed nearly 900 people, who were newly installed in seven floors of a new office building on Third Avenue in Manhattan. Despite its large size, the agency stressed teamwork and balance among its different departments, thereby engendering creative problem solving. In August 1965 Grey became the fourth national advertising agency to offer stock to the public, selling 290,000 shares in the company at $19.50 a piece. Selecting its clients carefully to assure high-quality management and strong growth potential in the products it advertised, Grey included Bristol-Meyers, Revlon, and Greyhound, along with Procter & Gamble, on its roster of accounts. To help service these accounts, the agency opened offices in Australia, Spain, and Venezuela.
By 1967, its 50th year in business, Grey Advertising boasted $221 million in billings. In the following year, the company opened offices in San Francisco and Austria. Two years later, Edward H. Meyer took over the post of chairman of the board, and the company began to supplement its global growth with expansion through the acquisition of subsidiaries. Meyer sought "to expand the geographic range of the business and the communications range of the business," as he told an interviewer from Advertising Age. In keeping with this policy, the company entered the business of healthcare communications in 1970, inaugurating Grey Medical, in addition to adding a unit called Crescendo Productions.
This was followed by the acquisition of Statter, Inc., in 1971. Also in that year, the company opened offices in The Netherlands and Argentina. After its purchase of North Advertising, Inc., the eighth largest advertising agency in Chicago, the company inaugurated Grey-North. A second midwestern office also was founded that year, when the company opened Grey-Twin Cities in Minneapolis-St. Paul.
Gains and Losses in the 1970s
In 1972, Grey won the Goodrich Tire Company's $6 million a year passenger car tire account with a creative proposal focusing on the new technology involved in radial tires. This capped a year-long stint in which the company had won approximately $63 million in new business. Grey had landed a $16 million small car account from the Ford Motor Company in August 1971, and followed this up by acquiring business from the Singer Company, Calgon Corporation, Carter-Wallace, and General Electric. At the same time, however, the company lost $13 million of billings, from clients including Ballantine beer, the Howard Johnson Company, and a Procter & Gamble detergent. Building on this stint of new business, Grey opened foreign offices in South Africa and Brazil in 1973, and also established its Grey Entertainment & Media subsidiary to handle communications and entertainment advertising.
In 1974, Grey won a $16.5 million Navy recruiting account from the U.S. government, which it subsequently lost in the next year. The company filed a formal protest over the loss of the business with the General Accounting Office and threatened to sue, claiming it had been unfairly stripped of the account. Grey's attempt to press a legal claim to the Navy work came to an end in September 1977, when a court dismissed its claim. Also during this time, Grey lost its Ford Motor account.

In the mid-1970s, Grey added offices in Sweden, Norway, and New Zealand. The company also invested in a consumer research firm, Market Horizons, and Lexington Broadcast Services, a television syndication service. Grey's overseas business flourished, and in 1976, the agency formed a joint venture with a Swiss advertising firm, creating Steinman & Grey. This fell apart, however, just one year later. A further setback occurred in 1977, when the company lost a client of 20 years, Greyhound.
In the following year, however, the company rallied back, winning a prestigious automotive account, the American Motors Corporation. In the late 1970s, Grey's international expansion continued as the company added foreign affiliates in Chile, Hong Kong, and Uruguay. Moreover, the company branched out to the Hispanic market in the United States, acquiring Font & Vaamonde, an agency that specialized in this work.
The 1980s saw Grey's expansion through acquisition continue apace. In 1980 the company's subsidiary Grey/2 bought another New York firm, Conahay & Lyon, for $1.4 million, thus forming a joint agency. In addition, the company returned to its roots when it opened Grey Direct, a direct marketing concern. This holding was augmented in the following two years by the purchase of the Beaumont-Bennett Group, a sales promotion and co-op advertiser, and Rada Recruitment Communications, which prepared job recruitment materials. In 1983, the company formed Grey Strategic Marketing, a subsidiary that offered long-term planning services. Foreign offices added in the early 1980s included Denmark, a second stab at the Swiss market, Singapore, Peru, and Mexico. In addition, the company formed Grey Reynolds Smith, a wholly owned subsidiary in Canada.
A New Business Plan in 1983
In late 1983, Grey inaugurated a new five-year business plan and set out to remake its corporate image. The company took steps to elevate the importance of creative work within its corporate culture, hiring new people in this area, and promoting creative executives from within the company. In an effort to increase the respect and prestige afforded creative talent at the agency, Grey installed its employees in expensive new offices and inaugurated a worldwide prize for the best creative work. With these measures, the agency hoped to shake its image as a traditional, hidebound shop, lacking in new ideas.
These efforts started to show fruit as the agency notched a number of big new clients in the mid-1980s, including Mitsubishi Motors of America, Red Lobster Restaurants, and Miss Clairol. In early 1986, the agency took steps to insure that this success would not make Grey the object of a hostile takeover, despite the fact that the company's longstanding employee stock ownership plan meant that 55 percent of the company was held by Grey employees. To further strengthen its defenses, the agency rearranged the structure of its stock offerings. During this time, the agency purchased Gross Townsend Frank Hoffman, a medical advertising firm, just one month before it sold off Grey Medical, its old unit. By the end of the year, Grey billings had topped $2 billion.
Grey's steady acquisition of properties that complemented its central advertising unit helped to make the company one of the world's few fully integrated marketers by the mid-1980s. In this way, the company was able to lessen the impact of clients' gradual shift away from traditional advertising to more creative forms of promotion. With its various units, Grey had the capability to handle all aspects of a client's marketing needs, including advertising, promotions, direct mail, and public relations. For accounts like the hospital chain Humana, Grey was able to coordinate a unified, interrelated campaign, which used mailings to follow up on television advertising, reinforcing one message through many media. For its client Kool-Aid, the agency adopted a similar approach, tying television commercials to ads in Sunday newspaper comic sections, which in turn keyed in to in-store displays with coupons for stuffed animals, sunglasses, and skateboards. In addition, the company arranged promotional events, with appearances by Kool-Aid's mascot, a smiling pitcher.
In the late 1980s, Grey shed some of the holdings it had acquired during its period of rapid expansion throughout the late 1970s and 1980s. The company transferred its Chicago shop to a Swiss firm, and in November 1988, Grey sold for $38 million its LBS Communications (formerly Lexington Broadcast Service), a television syndicate whose high cash flow had made Grey ripe for takeover.
Despite these divestments, the company continued to grow. The agency got into the audiovisual corporate communications business in 1988, with its purchase of Gindick Productions. Although Grey refrained from merging with another ad agency of its size during the period of industry consolidation in the late 1980s, Grey made "an average of 20 to 25 acquisitions a year," Chairman Meyer told Advertising Age. "Grey's attitude is to keep its culture and character consistent and make small mergers one at a time, with specific companies for specific reasons in specific countries in specific communications skills," he elaborated.
Responding to Global Changes in the Late 1980s-90s
In 1989 Grey turned its attention to coming changes in the world market and took steps to prepare for European economic union in 1992. The company formed a European management board in April to coordinate its agency network, as the continent became more and more a single market. In addition to this regional strength, Grey also had built up a strong network in Asia, with agencies in Japan, Taiwan, the Philippines, Hong Kong, Australia, New Zealand, Malaysia, Thailand, Singapore, and India.
As its business became more international, Grey looked to strengthen its other communications enterprises such as public relations, direct-response mailings, and promotional services - and expanded their scope to an international level, in keeping with its advertising activities. By 1991, the company had 188 offices in 40 countries.
Despite the recession that hampered the American economy in the early 1990s, Grey continued to turn a profit. In 1991, the company reported earnings of $528 million. These were lower than expected as a result of the expensive shuttering of Levine, Huntley, Vick & Beaver, an agency subsidiary based in New York that had fallen apart after the loss of its primary account, Subaru cars, and the departure of its management.
Although the company was known for solid strategic planning, Grey's reputation on Madison Avenue suffered for lack of innovation during the mid-1990s. A new creative director brought change to the company, and they began to win midsize accounts. Grey won $160 million in new business in 1994.
Grey grew in cyberspace as well. In 1999, the company formed MediaCom Digital, a strategic developer that connected all advertising services. Later that year, Grey Advertising purchased media buying agency Beyond Interactive in order to increase its online media business. The purchase was meant to act as a counterpart to other Grey businesses such as Grey Direct and media.com. Beyond Interactive opened up offices in China and Mexico the following year.
Changes in the New Millennium
In order to manage the company's subsidiaries effectively, Grey Advertising Inc. set up a holding company in 2000 under the Grey Global Group name. Its advertising division adopted the Grey Worldwide corporate moniker. The company had not been through reorganization since 1970--the year Edward Meyer was elected CEO. Grey was not alone in its restructuring. The creation of Grey Global came at a time when advertising agencies across the globe were becoming increasingly diversified.
In the early years of the new millennium, Grey continued to grow on many levels. In an effort to increase Grey's email services worldwide, Grey Direct added Englishtown.com to the clientele of Grey eMMetrics, its email marketing division, in 2001. With 60 million email messages sent each month, Englishtown.com became its highest volume client. This new client had the ability to track the success of each email initiative and to analyze returns to determine the most efficient advertising strategies.
Procter & Gamble, which accounted for 10 percent of Grey's business, kept Grey Global Group as one of two agencies responsible for the majority of its global advertising accounts in 2002. With this decision, Grey gained additional international business for Zest soap and Torengos snack products. At the same time, however, Grey suffered blows to its reputation when three former executives were accused by the Justice Department for conspiracy to control bids and allocate contracts.
Despite global advertising growth as a result of the Summer Olympics, Grey's future as the last independent agency of its kind came into question in 2004. The company hired Goldman Sachs Group Inc. and J.P. Morgan Chase & Co. to discuss the possibility of a sale. Grey's revenue was $1.3 billion in 2003, but labor costs and real estate expenditures took their toll on profit margins. Grey had become an attractive takeover target, especially with clients such as Procter & Gamble, GlaxoSmithKline PLC, Nokia Corp., and BellSouth Corp., and industry analysts began to speculate that
Edward Meyer, Grey's long time chairman and CEO, might relinquish control after 34 years. Sure enough, the United Kingdom's WPP Group PLC–the second largest advertising firm in the world–offered $1.4 billion for Grey in September 2004. With a sale on its horizon, Grey Global looked to be on track for changes in the future. On March 7, 2005, WPP Group beat out Havas in a race to acquire Grey Global, the seventh-largest advertising agency at the time for approximately 1.3 billion USD.
In late 2005, James R. Heekin III became CEO of Grey Worldwide, Grey Global Group's traditional advertising agency. On January 1, 2007, he became Chairman and CEO of Grey Group, the renamed agency holding company. Grey Group, Grey Advertising New York and G2 moved to a LEEDS certified building at 2005th Avenue in New York in November 2009.
In India Grey was established in the year 1975 as Trikaya Advertising to help start off as an agency and win clients, but Grey already had P&G as their partner. Grey turned out to be the ‘Creative hot shop’ of 80s & 90s which helped them win major brands. Grey relationships formalized in 1987 and got its full equity ownership in 2000. It later had a part of the WPP network which was from 2005. Grey had its branch offices in Mumbai, Delhi, Bangalore, Chennai, Ahmadabad, and Kolkata.
Grey now has its global presence in 158 cities of 83 countries. It has its well established 495 offices and to help grey achieve success it has 10500 people working under it.
Principal Operating Units: Grey Healthcare; GCI; G2; Grey Interactive; Grey Direct; Market Data Solutions; Grey Worldwide; APCO; MediaCom; Alliance; J. Brown Agency; Gwhiz; Wing Latino. 2.2. VISION, MISSION, OBJECTIVES, VALUES
Vision
“To make our work famously effective and bring brands to life across the world.”
Mission
Refocus on things that has already made Grey special
Enduring client relationship and partnership
Effective management and competitive spirit
Objectives
• The main objective of Grey is to make its work the talk of the town
• To pioneer in consumer research and understanding.
• To refuse to take a back seat when it comes to creativity and impact of the work done
• To pursue new priorities and initiatives
• To create an incredible effectiveness of the communication programmes in the market
• To invest significantly across the region, bring in new talent of the agency
• To use data so it helps clients make their interactions with consumers more efficient and more effective
Values
The psychology, attitudes, experiences, beliefs and values of an organization is reflected from various factors which includes even the facilities, office surroundings, visible awards and recognition, the way that its members dress, how the staffs behave to outside persons etc.
• Members are encouraged to interact with clients and approach tasks in a way that will give them higher order satisfaction.
• Members believe they must interact with clients through the ways, where they will be safe and does not threaten their own security.
• Members are expected to approach tasks in forceful ways, to protect their status and security. At Grey they stick to constructive cultures, where they are not forced to do things. Following such kin of a culture helps the employee to meet their higher order satisfaction needs like; affiliation, respect or appreciation and self-actualization.
• There is equality among every employee, i.e. there is no gender discrimination done in the case of payments of salary, incentives, etc.
• Job involvement of the employees is high. No single person would be sitting inactive or involved in any other activity during their work time. Every minute they keep themselves busy with meetings, conferences or meeting their clients.
• Behaviour among the employees is friendly; they use the help and support of their subordinates whenever it is necessary, this shows the strong relationship between each and every employee in the organization. It shows the spirit of teamwork.
• Every employee at Grey has the right to participate in events and share their ideas or views. Every work done is a team work. Every employee shows respect to others and has the will power to learn from others.
• Employees at Grey cannot be seen denying, blaming others or giving excuses for their mistakes. They are willing to accept personal responsibility.
An advertising agency for sure needs creative people for new innovations; innovations are possible with the advancement of technology. The success of an advertising agency depends on how creative or innovative it is. Hence Grey has proved itself to be creative and innovative. Each employee has his/her own identity in the organization which could be because the agency does not over crowd any department. There work is done in teams like art team, planning team, creative team etc. every individual is identified as the part of a particular team. It shows that the work activities are organized among groups. Every individual is a part of whole management team. The management decision is the decision of each employee.

2.3. MILE STONES
In these uncertain times, Grey has stayed true to the singular purpose that has always guided them; to build the value of their clients' brands. They focus relentlessly on their clients, judging their performance by the clients’ growth and Grey’s prospects by the faith clients’ show in them. This enduring strength is rooted in Grey’s soul and permeates the vision and their work. That’s what makes their client relationships long and strong and sets them apart from other companies in the advertising industry.
Key Dates:
1917: Grey Studios is founded by Larry Valenstein.
1925: The company is renamed Grey Advertising Inc.
1956: Grey begins its relationship with Procter & Gamble.
1959: An international office is opened in Montreal.
1965: Grey becomes the fourth national advertising agency to go public.
1976: Grey forms a joint venture with a Swiss advertising firm creating Steinman and Grey.
1980: Conahay & Lyon is purchased by Grey-2, forming a joint agency.
1983: The Company forms Grey Strategic Marketing.
2000: Grey Advertising creates Grey Global Group as a holding company; Grey Worldwide becomes its advertising unit.
2004: The WPP Group offers nearly $1.4 billion for Grey.

2.4. OPERATIONS AREA AND BUSINESS Fig B: The Service Chart

Advertising
With 5 offices in the country and over 320 employees, Grey ranks amongst the largest global advertising companies.
Their long standing reputation for launching and building many of the country’s leading brands is rooted in their blue chip client roster. Grey is a full service agency for the 21st century with the total offering that offers best in class brand communications in every channel.
Amid constant change, they have one uncompromising focus: to accelerate the potential of the clients’ brands with powerful ideas across all touch points. The strength and success of their network lies in the imagination, passion and creativity of their people across cities and cultures.
The accounts under advertising are:

Activation
Grey activation conceptualises marketing and activation solutions to connect brands with consumers. They give life to brands beyond traditional media. Their strength lies in devising solutions for co-marketing, retail marketing, consumer and trade promotions and sampling activities.
Planning
What keeps marketer up at night? In today’s highly competitive and protean marketplace; one is either gaining on, or worried about being gained upon by a competitor. Whether one’s brand is a market leader or challenger, a newcomer or a mature brand, a packaged good, a service, a technology, or increasingly, a combination of two or more of the former; the critical challenge is determining how to overcome marketplace inertia (or worse), and explosively build and accelerate brand momentum. Success is not an end-state, but an ongoing process. Indeed, simply maintaining current brand momentum is often the fool’s gold of marketing, leading many to complacency and disaster. In a marketplace where brands must grow or die, where the long-term must be accomplished in the short-term, brand acceleration is the life-blood of successful brand management.
In order to ensure that they deliver famously effective ideas for the clients, they have developed the brand acceleration model of planning.
They believe in following a strategic process which allows both the agency and client to collaboratively distill all available data into core insights and brand building ideas that drive the brand forward. The goal of the brand acceleration model is to chart a strategic trajectory for the brand. Increasingly, Brands can no longer own “positions”- too static a framework to embrace the dynamism of today’s competitive marketplace. It does not allow for the constant process of dynamic change that is necessary to attain and maintain brand acceleration. In a market place of constant evolution and change, companies can no longer just ask what their brand stands for today. They have to ask: “what is my Brand becoming?” they need to establish a direction for the brand from its competitors.
The final outcome of the Brand Acceleration Model is the driving idea, which is the strategic idea that will serve as the inflection point for creating a new direction for the brand. It’s a rallying cry for the strategy. It is the place where strategy gives flight to creativity. The driving idea is the media agnostic, brand-building core idea that drives all aspects of brand communications – P.R., broadcast, print, online, retail, relationship marketing, buzz, etc.
In summary, the world moves too fast for marketers to be content knowing where their brand stands today. Grey’s proprietary tool, Brand acceleration model, helps them set course for the most inspiring, and effective future direction with the help of driving ideas and is designed to accelerate the brand’s full potential.
Retail
Grey Retail is experts in communicating brand identity through retail solutions. To them, retail design involves more than just creating the physical space in which the goods are sold; it requires an understanding of what makes the retail experience unique.
Grey believes that the forum is one of the most testing encounters that brands will have with consumers. Hence, their definition of the term ‘Retail Design’ encompasses all aspects of the design of a store: ranging from store frontage, fascia and signage, through to the internal elements of furniture, merchandising, display, lighting, graphics, point of sale and decoration. At Grey retail, exclusively is defined by high-quality and standardised solutions across cities.
Digital
At Grey Digital, they use a combination of strategic thinking and advanced digital tolls to developed and employ powerful web-based communication.
Their competences in web development, online research, CRM/ E-CRM, media planning, SMS marketing, data consulting and branding ensure every online marketing campaign is designed to achieve its long-term marketing objectives.
Well-equipped with a dexterous team of online specialists and programmers, we aim to explore all the possibilities of the digital arena to utilise the internet as a marketing medium.
Grey embarked on a journey to better understand the 'WHY' of online behaviour. What makes people click? Why are they shopping online? What causes are Netizens joining? To make sense of these behavioural patterns, they delved deeper into a deluge of online activities. They dedicated over 4000 hours of research time across eight countries in Asia to study the motivations and emotions linked to each action.

Electronic Billboard
Electronic billboards are the digital version of traditional billboard advertisements. These billboards display a variety of digital advertising messages. They are targeted because they provide advertisers with the opportunity to change advertising messages throughout the day. Digital billboards are cost-effective because several advertisers share the expense with rotating advertisements. They are flexible because new designs and advertising messages can be changed within a day or two.
Web-Based Marketing
Another example of digital advertising is web-based marketing. This form of advertising targets Internet users while they visit websites. Pop-up advertisements appear as a new window and display an advertising message for a product or service usually related to the original website. Video advertisements are another form of digital web-based advertising that plays brief "commercials" before the video loads, during a break in the video or at the conclusion of the video. Major search engines offer video media options to advertisers.
Viral Marketing
Viral marketing is a form of digital advertising businesses use to spread the word about their brand. Advertising messages are spread digitally through email and other online media. This form of advertising encourages existing customers to tell others about a product, service or company. The intent is for word to spread like a "virus" to others within a social group or network.
Audio Advertising
Audio advertising is a form of digital advertising that targets consumers through Podcasts, Internet radio and live streaming digital radio. Podcasts are digital audio files such as an MP3 that users download to a computer or personal media player. Internet radio and live streaming digital radio play "sponsor" messages that advertise products and services to consumers while they listen to the radio online.

Grey digital helps clients be recognized digitally by creating a digital creative for them. The clients for Grey digital are:

2.5. PRODUCT AND SERVICE PROFILE
Television advertising / Music in advertising
The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The majority of television commercials feature a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none exist in real-life. This technique is especially used in televised sporting events. Virtual product placement is also possible.
Infomercials
An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" is a portmanteau of the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.
Radio advertising
It is a form of advertising via the medium of radio. Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the commercials. While radio has the limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage. Radio is an expanding medium that can be found not only on air, but also online.
Online advertising
It is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Online ads are delivered by an ad server. Examples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.
Product placements
Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in IRobot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. IRobot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles.
Press advertising
Press advertising describes advertising in a printed medium such as a newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service. Another form of press advertising is the Display Ad, which is a larger ad (can include art) that typically run in an article section of a newspaper.
Billboard advertising
Billboards are large structures located in public places which display advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums.
Mobile billboard advertising
Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially equipped cargo trucks or, in some cases, large banners strewn from planes. The billboards are often lighted; some being backlit, and others employing spotlights. Some billboard displays are static, while others change; for example, continuously or periodically rotating among a set of advertisements. Mobile displays are used for various situations in metropolitan areas throughout the world, including: Target advertising, One-day, and long-term campaigns, Conventions, Sporting events, Store openings and similar promotional events, and Big advertisements from smaller companies.
In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the end of aisles and near checkout counters (aka POP—Point Of Purchase display), eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.
Coffee cup advertising
Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed out of an office, café, or drive-through coffee shop. This form of advertising was first popularized in Australia, and has begun growing in popularity in the United States, India, and parts of the Middle East.
Sheltered Outdoor Advertising
This type of advertising opens the possibility of combining outdoor with indoor advertisement by placing large mobile, structures (tents) in public places on temporary bases. The large outer advertising space exerts a strong pull on the observer; the product is promoted indoor, where the creative decor can intensify the impression.
Celebrity branding
This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products, for example, when celebrities share their favourite products or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. The use of celebrities to endorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental to the public relations of a brand.
2.6. POLICIES OF THE ORGANISATION
Code of Conduct
Grey group operates in many markets and countries throughout the world. In all instances, they respect national laws and any other laws with an international reach, such as the US Foreign Corrupt Practices Act, where relevant, and industry codes of conduct. They are committed to acting ethically in all aspects of the business and to maintaining the highest standards of honesty and integrity.
The officers and staff of all companies in the Grey Group, recognise obligations to all who have a stake in the success, including share owners, clients, staff and suppliers.
Information about our business shall be communicated clearly and accurately in a non-discriminatory manner and in accordance with local regulations.
• They select and promote their people on the basis of their qualifications and merit, without discrimination or concern for race, religion, national origin, colour, sex, sexual orientation, gender identity or expression, age or disability.
• They believe that a workplace should be safe and civilised; they do not tolerate sexual harassment, discrimination or offensive behaviour of any kind, which includes the persistent demeaning of individuals through words or actions, the display or distribution of offensive material, or the use or possession of weapons in Grey or client premises.
• They do not tolerate the use, possession or distribution of illegal drugs, or their people reporting for work under the influence of drugs or alcohol.
• They treat all information relating to the Group’s business, or to its clients, as confidential. In particular, ‘insider trading’ is expressly prohibited and confidential information should not be used for personal gain.
• They are committed to protecting consumer, client and employee data in accordance with national laws and industry codes.
• They do not knowingly create work which contains statements, suggestions or images offensive to general public decency and they give appropriate consideration to the impact of the work on minority segments of the population, whether that minority is by race, religion, national origin, colour, sex, sexual orientation, gender identity or expression, age or disability.
• They do not undertake work which is intended or designed to mislead, including in relation to social, environmental and human rights issues.
• They consider the potential for clients or work to damage the Group’s reputation prior to taking them on. This includes reputational damage from association with clients that participate in activities that contribute to the abuse of human rights.
• They do not for personal or family gain directly or indirectly engage in any activity which competes with companies within the Group or with the obligations to any such company.
• They do not give, offer or accept bribes, whether in cash or otherwise, to or from any third party, including but not restricted to government officials, clients and brokers or their representatives. They collectively ensure that all staff understands this policy through training, communication and by example.
• They do not offer any items of personal inducement to secure business. This is not intended to prohibit appropriate entertainment or the making of occasional gifts of minor value unless the client has a policy which restricts this.
• They do not accept for their personal benefit goods or services of more than nominal value from suppliers, potential suppliers or other third parties.
• They do not have any personal or family conflicts of interest within the businesses or with the suppliers or other third parties with whom they do business.
• No corporate contributions of any kind, including the provision of services or materials for less than the market value, may be made to politicians, political parties or action committees, without the prior written approval of the Grey Board.
• They continue to strive to make a positive contribution to society and the environment by: maintaining high standards of marketing ethics; respecting human rights; respecting the environment; supporting community organisations; supporting employee development; and managing significant sustainability risks in the supply chain.

Accounting policies
The consolidated financial statements of Grey Group and its subsidiaries (the Group) for the year ended 31 December 2011 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union as they apply to the financial statements of the Group for the year ended 31 December 2011.
The Group’s financial statements have also been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
i. Basis of preparation
The consolidated financial statements are prepared under the historical cost convention, except for the revaluation of certain financial instruments. ii. Basis of consolidation
The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal. iii. Goodwill and other intangible assets
Intangible assets comprise goodwill, certain acquired separable corporate brand names, acquired customer relationships, acquired proprietary tools and capitalised computer software not integral to a related item of hardware.
Goodwill represents the excess of fair value attributed to investments in businesses or subsidiary undertakings over the fair value of the underlying net assets, including intangible assets, at the date of their acquisition.
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the net present value of future cash flows derived from the underlying assets using a projection period of up to five years for each cash-generating unit. After the projection period a steady growth rate representing an appropriate long-term growth rate for the industry is applied. Any impairment is recognised immediately as an expense and is not subsequently reversed.
Corporate brand names, customer relationships and proprietary tools acquired as part of acquisitions of businesses are capitalised separately from goodwill as intangible assets if their value can be measured reliably on initial recognition and it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group.
Certain corporate brands of the Group are considered to have an indefinite economic life because of the institutional nature of the corporate brand names, their proven ability to maintain market leadership and profitable operations over long periods of time and the Group’s commitment to develop and enhance their value. The carrying value of these intangible assets is reviewed at least annually for impairment and adjusted to the recoverable amount if required.
Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life as follows: iv. Contingent consideration
Contingent consideration is accounted for in accordance with IFRS 3 (revised) Business Combinations.
Future anticipated payments to vendors in respect of contingent consideration (earn out agreements) are initially recorded at fair value which is the present value of the expected cash outflows of the obligations. The obligations are dependent on the future financial performance of the interests acquired (typically over a four to five year period following the year of acquisition) and assume the operating companies improve profits in line with directors’ estimates. The directors derive their estimates from internal business policies plans together with financial due diligence performed in connection with the acquisition.
Subsequent adjustments to the fair value are recorded in the consolidated income statement within revaluation of financial instruments. For acquisitions completed prior to 1 January 2010, such adjustments are recorded in the consolidated balance sheet within goodwill.
v. Property, plant and equipment
Property, plant and equipment are shown at cost less accumulated depreciation and any provision for impairment with the exception of freehold land which is not depreciated. The Group assesses the carrying value of its property, plant and equipment to determine if any impairment has occurred. Where this indicates that an asset may be impaired, the Group applies the requirements of IAS 36 Impairment of Assets in assessing the carrying amount of the asset. This process includes comparing its recoverable amount with its carrying value. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life, as follows: Freehold buildings – 50 years. vi. Interests in associates and joint ventures
An associate is an entity over which the Group has significant influence. In certain circumstances, significant influence may be represented by factors other than ownership and voting rights, such as representation on the Board of Directors.
The Group’s share of the profits and losses of associate undertakings net of tax, interest and non-controlling interests is included in the consolidated income statement and the Group’s share of net assets is shown within interests in associates in the consolidated balance sheet. The Group’s share of the profits and losses and net assets is based on current information produced by the undertakings, adjusted to conform to the accounting policies of the Group.
The Group assesses the carrying value of its associate undertakings to determine if any impairment has occurred. Where this indicates that an investment may be impaired, the Group applies the requirements of IAS 36 in assessing the carrying amount of the investment. This process includes comparing its recoverable amount with its carrying value.
2.7. NUMBER OF EMPLOYEES IN DIFFERENT CATEGORY
Grey has a team of 50 in the Bangalore branch. The team is strong enough to support the activities in the organization and meet the client requirement on time. The 50 employees are split in the following category i.e.

Account Management: There are a total of 14 employees in the Account Management team, who can handle clients and help them build their brands with Print ads, media ads, and activation. With these services in hand grey has built a reputation for itself which is helping it win more such brands year after year.
Creative: The Creative team at Grey has 16 employees who help in creating the brand for the clients. This team helps the client make their brand unique and sell for itself. This team includes both the Art and Creative team. The creativity of the team makes the brand unique and popular. They are briefed by the Account Management team about the client requirement which in turn has to be brought to life by the Creative team.
Digital: Grey has a team of 6 employees with it for creating the digital recognition for its clients. This team has the ability to create a good digital brand for the company. They provide services like Electronic Billboard, Web-Based Marketing, Viral Marketing and Audio Advertising.
Studio: Grey has around 7 employees in the studio who help the agency with the Approved artworks. Once a creative is done by the Creative team and is approved by the client after a few changes, the Studio personnel would help with the final creative which will then be sent for print.
2.8. PERFORMANCE OF THE ORGANISATION
Grey continued to advise clients on corporate responsibility and sustainability issues, and published research on related topics.

• To help clients more easily access the sustainability expertise and to enhance collaboration across Grey, they published the Sustainability Navigator, a handbook and online resource summarising the companies’ sustainability offerings.
• 100,000 employees have taken Ethics and Anti-bribery and Anti-corruption training. The Ethics Committee meet regularly to discuss any ethical issues related to client work.
• Many professionals from the companies participated in industry groups and helped to develop and evolve marketing codes of practice.


• They presented the briefing document on privacy to the finance directors of Group companies in 2011 and some companies have distributed it directly to each of their employees.
• Women accounted for 31% of Board members/executive leaders, 47% of senior managers and 54% of total employees. Forty-three nationalities are represented among Grey Leaders and Partners, the senior echelon of our business invested £58.3 million in training and wellbeing.


• In 2011, the carbon footprint per person was 2.44 tonnes, down 3% on 2010 and 26% lower than 2006. They were ranked 41 out of 500 in Newsweek magazine’s Green Rankings 2011.
• The total value of their social investment was £15.3 million compared with £14.3 million in 2010, including £10.5 million worth of pro bono work. This is equivalent to 1.5% of reported profit before tax.
• Grey media agencies negotiated free media space worth £12.4 million on behalf of pro bono clients.



2.9. ORGANISATION STRUCTURE/CHART
Fig C: National Organisation structure

Fig D: International Organisation structure

2.10. BOARD OF DIRECTORS
The Board of directors is collectively responsible for promoting the success of the Company by directing and supervising the Group's strategy and is responsible to shareowners for the Group's financial and operational performance. The members of the Board of Directors are:
Table 1: List of Board of Directors
JIM HEEKIN Chairman and CEO, Grey Group James R. Heekin III became Chairman and Chief Executive Officer of Grey Group in January 2007, after leading Grey, the company's global advertising arm, since the fall of 2005.
SURESH NAIR EVP, Director of Global Strategic Planning Suresh joined Grey in 2005 to serve as the strategic leader across the global Grey network as well as the head of the strategic planning department at Grey New York. Under his leadership, Grey has launched a new planning toolkit, "Brand Acceleration" which is being deployed throughout the Grey global network. Suresh is passionate about uncovering brand ideas that lead to powerful emotional connections with consumers, and in turn accelerate the brand's full potential.
TIM MELLORS Vice Chairman and Chief Creative Officer Tim Mellors is the Vice Chairman and Chief Creative Officer of Grey Group. In addition, he serves as the Worldwide Chief Creative Director of Grey, our global advertising agency.
He has been a magazine journalist, a commercial film director and the host of three seasons of a BBC TV series. He has also been the Creative Director of Publicis, Saatchi & Saatchi, GGT and his own Agency Mellors Reay.
DAVID PATTON President and CEO, grey group EMEA David took up the position as UK Group CEO for Grey London and Group companies in September 2007. His brief was to drive growth with current and future clients, develop key client strategies and ensure that the rich array of Grey resource is offered to clients across communication disciplines
NIRVIK SINGH Chairman and CEO, Asia Pacific Nirvik Singh became Chairman and CEO of Grey Group Asia Pacific, responsible for Grey and G2, in January 2009.
A 19-year veteran of Grey, Singh was appointed to lead Grey Kolkata at the age of 26 by Grey India’s Founder CEO, Ravi Gupta. In short order, the agency grew to become the city’s second largest, producing some of India’s most path-breaking campaigns, winning Agency of the Year four consecutive times.
OWEN DOUGHERTY Chief Communications Officer Owen Dougherty is Chief Communications Officer of Grey Group. He is responsible for developing and directing Grey's global communications strategy, including all media relations and internal communications. He also manages the agency's outreach to the advertising, civic and business communities.
JOE CELIA Vice Chairman, Grey Group

As Vice Chairman of Grey Group, Joe Celia is responsible for the development and delivery of Grey's Total Communications platform on a worldwide basis. This includes the strategic development of Grey Global's offer across the full spectrum of marketing communication capabilities, and the implementation of that strategy throughout the global network. Joe also serves as Chairman & CEO of G2 - Grey's leading global network of specialist marketing services companies dedicated to activation marketing and brand communications beyond advertising. In this role he is charged with global responsibility for the continuing development of the group's capabilities in the Digital, Branding and Design, Direct Marketing, Trade & Shopper Marketing, and Promotional business lines.
SUJIT SEN CFO for South Asia Sen has been with the Grey family for over 20 years since 1991, when he joined Grey at its Kolkata office as an accounts manager. He has worked very closely with Vinod Prabhakar since coming on board the Grey Mumbai team in 1996 as the Group Head for accounts. He was in charge of all commercial and accounting functions for all five branches and divisions in India. In 2000, he was promoted to General Manager, where he spearheaded the implementation of global commercial systems and procedures.

Jishnu Sen CEO & President (India)
Jishnu Sen has a rich multi cultural experience from across the globe. He has held portfolio’s that panned brand strategies and implementation across Asia Pacific and the US. He has held positions with JWT and Y&R across India, Singapore, Hong Kong and the US.
Prior to joining Grey Group India, Jishnu held various positions with JWT and Y&R across India, Singapore, Hong Kong and the United States. His diverse portfolio includes brands such as Colgate, Pepsi, Pizza Hut, ITC, GlaxoSmithKline, ESPN, STAR Sports and the Indian Army.
Hari Krishnan Vice President – South
Hari Krishnan has 15 years of cross category experience; 3 years at GREY. Brands worked on: Unilever, Titan, Maruti Suzuki, Ford, Tanishq, Parle, Bharti AXA, Britannia, Sony, Compaq.
Also worked as VP Marketing for Star Plus, India’s no.1 GEC and led the brand re-positioning exercise (Rishta Wahi, Soch nayi). He has a work experience across all multiple markets in India.
Malvika Mehra & Amit Akali National Creative Directors
The two Creative directors have been working together for 7 years now, including 4 years as Creative Heads of Ogilvy Bangalore and over a year as NCDs at Grey. The two of them have worked on numerous accounts like Bingo, Lenovo, IBM, State Bank Of India, Titan, Hutch/Vodafone, Cadburys, Parle, SAB Miller and have won two consecutive ‘Campaign of the Year’ awards at the Indian creative awards (Abby) for their ‘Surprisingly SBI’ and ‘Hutch Rangashankara Theatre Festival’ campaigns. They have also bagged the Bingo! Launch Campaign of the Year/‘Top 10 Campaigns of the Decade’ as a pair. Not only that, the pair has also won over a hundred national (Abby, Effies, Emvies, CAG) and international awards (Cannes, One show, Media Spikes, London International, D&AD, Clio).
An avid foodie, Amit used to write a weekly restaurant review - ‘Live2eat’ for the Bangalore Mirror.
Malvika was ranked at No.13 in the ‘Top 20 Creative Directors in India’ list in the Brand Equity Agency Reckoner (Economic Times). Just recently, she was a member of the prestigious film jury at the Cannes International Advertising Festival.
Divya Pratap Mehta Vice President-Planning
He has close to 15 years of advertising experience in India and in Asia. He has led strategy on businesses like Unilever Surf Excel (Dirt is Good), LG, AXA, Nestle, Maruti, Fever 104 fm (Virgin Partner) and Havell’s. His work has been formally recognized by clients and Effie's in the past.
At Grey he leads planning on a mix of local & global businesses like GSK, FOX, NGC, Pepsico, 3M, AXA, Britannia, ITC & USL. He also plays an active role in new business across India and the region.
He has created his own strategic frameworks. His perspective on challenges global brands face in Asia was presented in the Asia Marketing Forum 2009 by Unilever Asia. He also loves conducting training workshops. Something he finds most fulfilling. Prior to this role he was working as Vice President-Regional Planning Director-South East Asia-Lowe Worldwide.
Ram Jayaraman Executive Creative Directors – South
Ram comes in from JWT, Mumbai with over 11 years work experience where he was the creative head for the India business on Radiant (RIN), Smirnoff, Amit Enterprises and Ahuja Constructions. He also worked on some very popular brands and campaigns for Times Of India (Lead India), Pepsi, Boost, Horlicks, Hero Honda, Set MAX, Kingfisher, Nestle, ESPN Star Sports, Ford, Pizza Hut, KFC and Reebok. He’s a Cannes 2005 finalist and Ranked 667 in Campaign Brief Asia’s “Top 1011 Creatives in Asia. His work has been published in Lurzer’s Archive 2008.
Sham Ramachandran Executive Creative Directors – South
Sham has been in the industry for over 12 years and has been with GREY for over 6 years. He has worked across categories and created some very memorable and exciting campaigns for 3M, Britannia, Mahindra Holidays, Bharti AXA, Aircel, Vimal, Fortis, ITC, Dell, USL and RMKV. Among other accolades he has also won metals at One Show Merits, Abby and finalists at Cannes.

2.11. ACHIEVEMENTS AND AWARDS
• 8 awards at the National advertising awards (Abbys), including 3 silvers and 5 bronzes.
• 4 shortlists at the Cannes Advertising awards out of which the Downy campaign won a bronze Lion.
• 1 shortlist at the Asia Pac awards.
• At the Ad Club Young Achievers Awards the Copywriter of the year was from Grey.
• In the Grey World Wide Agency ranking system we moved from 21st (out of 42 countries) to 4th place.
• Declared the most improved office in Asia and an India team celebrated by being sent to Cannes. They further celebrated by winning there!
• Sliver – Best Corporate Website & Viral Marketing Campaign at the IAMAI Awards 2012
• Bronze – Best Social Media Campaign at the IAMAI Awards 2012
• “Digital Agency of the year” – Indian Digital Media Awards – 2010
• Shortlist at Campaign Asia Awards – “Digital Agency of the Year” - 2010
• Campaign India/BBC – Digital Media Awards – 2 Silvers - 2010
• Webby Award – Finalists 2010, Jury Award - E-mail Marketing – 2009
• Finalist at One Show Interactive – 2009
• Abby’s – 2 Silver 2010, Bronze at Abbys – 2009, 2008
• Euro Effies for “Incredible India” – 2006

2.12. FUTURE PLANS
• Continue to support the companies and to promote their sustainability expertise. In 2013 it would include providing further online resources and running a series of webinars on sustainability topics for their companies.
• Continue to protect Grey’s reputation by taking decisions at the appropriate level. Continue to comply with all laws and industry codes governing marketing material and to improve standards and measurement in marketing practice.
• Further improve the understanding of the type of data handled by the company and introduce privacy to their Global Ethics Training, to be completed by all Grey employees. Continue to engage with clients, suppliers, employees and regulators on privacy issues.
• Continue to support the companies’ talent recruitment and retention and to improve standards and measurement in employment.
• Despite progress, they are unlikely to meet their interim carbon emissions target of 1.8 tonnes per person in 2012. They are reviewing their strategy and will adjust the approach as necessary to work towards their 2015 and 2020 targets.
• Continue to make a significant contribution to good causes through pro bono application of their marketing skills and direct donations to charity.

3. FUNCTIONAL DEPARTMENTS
There are NINE major departments in any advertising agency. These can be split into other sub-departments, or given various creative names, but the skeleton is the same.
These departments are:
• Account Service
• Account Planning
• Creative
• Finance & Accounts
• Media Buying
• Production
• Administration & Facilities
• Research
• Studio
• Traffic

3.1. ACCOUNT SERVICES
The account service department comprises account executives, account managers and account directors, and is responsible for liaising with the agency's many clients. This department is the link between the many departments within the agency, and the clients who pay the bills. In the past they were referred to as "the suits," and there have been many battles between the account services department and the creative department. But as most creative’s know, a good account services team is essential to a good advertising campaign. A solid creative brief is one of the main duties of account services.
Agencies appoint account executive to liaise with the clients. The account executives need to be sufficiently aware of the client's needs and desires that can be instructed to the agency's personnel and should get approval from the clients on the agency's recommendations to the clients. Creativity and marketing acumen are the needed area of the client service people. They work closely with the specialists in each field. The account manager will develop a creative brief, usually about a page that gives direction to the creative team. The creative brief often includes information about the target audience and their attitudes and behaviours. The creative team will take the brief and, aware of their parameters; develop original copy and graphics depending on media strategy.
Within an advertising agency the account manager or account executive is tasked with handling all major decisions related to a specific client. These responsibilities include locating and negotiating to acquire clients. Once the client has agreed to work with the agency, the account manager works closely with the client to develop an advertising strategy. For very large clients, such as large consumer products companies, an advertising agency may assign an account manager to work full-time with only one client and, possibly, with only one of the client’s product lines. For smaller accounts an account manager may simultaneously manage several different, though non-competing, accounts.
3.2. ACCOUNT PLANNING
This department combines research with strategic thinking. Often a mix of researchers and account managers, the account planning department provides consumer insights, strategic direction, research, focus groups and assists helps keep advertising campaigns on target and on brand. Chris Cowpe described account planning as "…the discipline that brings the consumer into the process of developing advertising. To be truly effective, advertising must be both distinctive and relevant, and planning helps on both counts."
An account manager, or an advertising and promotions manager, works with a team to do analysis of a product's competition on the market and current trends in consumer spending. They also handle billing for various clients, make predictions regarding the agency's earnings and oversee the different teams that handle the creation, do research and media functions for clients. These managers work closely with copy writers, art supervisors and staff when completing a project.
The account manager uses the various research and information regarding spending patterns of consumers to determine the need to advertise. Their primary responsibility is to oversee each individual client account. Although they work closely with the creative team during this process, they are not directly involved in the make of advertisements. They also prepare and present reports regarding the costs for the campaign to the advertising team.
Account managers play a vital role in helping to establish the estimated costs for an advertising campaign, which helps to set the project's budget. This requires strong analysis skills when dealing with data, good organizational and critical thinking skills. The manager will need at least a bachelor's or a master's degree for this job. They need training in market research, advertising, business administration and technical writing.
3.3. CREATIVE
This is the engine of any advertising agency. It's the lifeblood of the business, because the creative department is responsible for the product. And an ad agency is only as good as the ads the creative department puts out. The roles within the creative department are many and varied, and usually include:
• Copywriters
• Art Directors
• Designers
• Production Artists
• Web Designers
• Associate Creative Directors
• Creative Director(s)
In many agencies, copywriters and art directors are paired up, working as teams. They will also bring in the talents of other designers and production artists as and when the job requires it. Sometimes, traffic is handled by a position within the creative department, although that is usually part of the production department. Everyone within creative services reports to the Creative Director. It is his or her role to steer the creative product, making sure it is on brand, on brief and on time.
Full service agencies typically employ graphic designers and copywriters or contract with trusted outside firms. Since printing is a specialized industry, agencies will handle this function through a printing partner. Graphic design, copywriting and printing are vital elements of the overall ad program, as poorly written, designed and printed advertising can hinder the effectiveness of the campaign and may reflect poorly on the business.
The people who create the actual ads form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-by-project basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience. Although copywriters have the word "write" in their job title, and art directors have the word "art", one does not necessarily write the words and the other draw the pictures; they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). Once they receive the creative brief from their account team, the creative team will concept ideas to take to their creative director for feedback. This can often be a back and forth process, occurring several times before several ads are set to present to the client. Creative departments frequently work with outside design or production studios to develop and implement their ideas. Creative departments may employ production artists as entry-level positions, as well as for operations and maintenance. The creative process forms the most crucial part of the advertising process.
3.4. MEDIA BUYING
It is the function of the media buying department to procure the advertising time and/or space required for a successful advertising campaign. This includes TV and radio time, outdoor (billboards, posters, guerrilla), magazine and newspaper insertions, internet banners and takeovers, and, well, anywhere else an ad can be placed for a fee. This usually involves close collaboration with the creative department who came up with the initial ideas, as well as the client and the kind of exposure they want. This department is usually steered by a media director.
In small to mid-sized agencies, traffic is also a part of the production department. It is the job of traffic to get each and every job through the various stages of account management, creative development, media buying and production in a set timeframe. Traffic will also ensure that work flows through the agency smoothly, preventing jams that may overwhelm creative teams and lead to very long hours, missed deadlines and problematic client relationships. Traffic keeps the agency's heart beating.
Ad agencies have intimate knowledge of pricing, effective scheduling and results-oriented media platforms that would involve considerable time, research and effort for the business owner who chooses to act alone in these areas.
The media services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can. They can often be restrained by the client's budget, in which, the media strategy will inform the creative team what media platform they'll be developing the ad for.
Modern agencies might also have a media planning department integrated, which does all the spot's planning and placements
Once an advertisement is created, it must be placed through an appropriate advertising media. Each advertising media, of which there are thousands, has its own unique methods for accepting advertisements, such as different advertising cost structures (i.e., what it costs marketers to place an ad), different requirements for accepting ad designs (e.g., size of ad), different ways placements can be purchased (e.g., direct contact with media or through third-party seller), and different time schedules (i.e., when ad will be run). Understanding the nuances of different media is the role of a media planner, who looks for the best media match for a client and also negotiates the best deals.
3.5. STUDIO
Every advertising agency has an art studio. In a sense, it's the closest thing advertising has to a "factory floor". The art studio is where the newspaper and magazine ads, the brochures and the catalogues are put together in the form of finished artwork.
Traditionally, the people who work in an art room were known as Finished Artists or Layout Artists, and they assembled the ads according to the Art Director's instructions, by hand.
Today, most agency art studios have desk top publishing operators who work with sophisticated computer graphics programs. To work as a Desk Top Publishing Operator they will need formal training in graphic arts. Many Art Directors begin their careers working in an art studio. There is no better place to learn the fundamentals of the craft. To be a great Layout or Electronic Artist, they will need a keen eye for detail, the ability to concentrate and a flair for design. Being a hard-working perfectionist will also score a lot of points.
A design or advertising studio manager's responsibilities will typically include traffic management, by ensuring all briefs are dispatched in the studio according to a designer’s skills and strengths and ensure all work is delivered promptly and to deadline to the relevant people. A design studio manager should have excellent organizational and communication skills, and motivate their team by showing good leadership.
The following are a design or advertising studio manager's responsibilities
• Workload dispatch
• Compiling studio schedules for senior management meetings
• Compiling Road map for projects
• Constant update of Studio schedules
• Designer’s annual leaves coordination
• Prompt timesheet collection
• Understanding of how deadlines work

3.6. PRODUCTION
The job of the production department is to bring ideas to life. During the creative process, the production department will be consulted to talk about the feasibility of executing certain ideas. Once the ad is sold to the client, the creative and account teams will collaborate with production to get the campaign produced on budget. This can be anything from getting original photography or illustration produced, working with printers, hiring typographers and TV directors, and a myriad of other disciplines needed to get an ad campaign published. Production also works closely with the media department, who will supply the specs and deadlines for the jobs.
Without the production department, the ads created by the copywriter and art director would be nothing more than words and pictures on paper. The production department, in essence, ensures the TV commercial or print ad, etc., gets produced. They are responsible for contracting external vendors (directors and production companies in the case of TV commercials; photographers and design studios in the case of the print advertising or direct mailers). Producers are involved in every aspect of a project, from the initial creative briefing through execution and delivery. In some agencies, senior producers are known as "executive producers" or "content architects".
3.7. RESEARCH
Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies. Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns—pre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the in-market impact of the ad or campaign on the consumer. Continuous ad tracking and the Communicus System are competing examples of post-testing advertising research types.
Full-service advertising agencies employ market researchers who assess a client’s market situation, including understanding customers and competitors, and also are used to test creative ideas. For instance, in the early stages of an advertising campaign researchers may run focus group sessions with selected members of the client’s target market in order to get their reaction to several advertising concepts. Researchers are also used following the completion of an advertising campaign to measure whether the campaign reached its objectives.
3.8. FINANCE & ACCOUNTS
At the centre of all the money coming into, and going out of, the agency has the finance and accounts department. This department is responsible for handling payment of salaries, benefits, vendor costs, travel, day-to-day business costs and everything else from doing business. It's been said that approximately 70% of an ad agency's income is paid as salary and benefits to employees.
3.9. ADMINISTRATION AND FACILITIES
An Administrative Manager would need to be positive, enthusiastic, have good leadership skills, get on well with people, be firm but just and have the ability and perseverance to try and help the company achieve their goals. She/he should be able to motivate people and make them feel that they are an important cog in the business wheel. The employees should know that management is trying their best to make an employee’s life as profitable, productive and enjoyable as possible, so that they will be much more likely to concentrate on doing their best.
Every worker in a business is given a specific task or tasks to do, by the manager who does the planning, co-ordinating and organising of activities to reach the required goals and she/he would be the one to give orders and exercise control over the entire process.
The discipline of facility management and the role of facility managers in particular are evolving to the extent that many managers have to operate at two levels: strategic-tactical and operational. In the former case, clients, customers and end-users need to be informed about the potential impact of their decisions on the provision of space, services, cost and business risk. In the latter, it is the role of a facility manager to ensure corporate and regulatory compliance plus the proper operation of all aspects of a building to create an optimal, safe and cost effective environment for the occupants to function. This is accomplished by managing some of the following activities
Features
• Health and safety
• Fire safety
• Security
• Maintenance systems
• Periodic statutory testing and inspections
• Operational
• Commercial property management
• Business continuity planning

3.10. TRAFFIC
Agencies attract people who specialize in creative and/or account service and indeed include a number of people in specialized positions: production work, Internet advertising, planning, or research, for example.
An often forgotten, but integral, department within an advertising agency is traffic. The traffic department regulates the flow of work in the agency. It is typically headed by a traffic manager (or system administrator). Traffic increases an agency's efficiency and profitability through the reduction of false job starts, inappropriate job initiation, incomplete information sharing, over and under-cost estimation and the need for media extensions. In small agencies without a dedicated traffic manager, one employee may be responsible for managing workflow, gathering cost estimates and answering the phone, for example. Large agencies may have a traffic department of five or more employees.
3.11. SYSTEMS (MIS) DEPARTMENT
Advertising agencies take the help of computers to execute their ideas. Gone are the days when Creative team would use pen and paper to design a logo or any new creative. With an increase in the use of computers and advancement in technology advertising firms use computers to stay connected with the clients, create new designs as per the requirement using professional software, etc.
The IT team takes care of the systems so that the organisation functions smoothly without any glitch. The IT team updates software, installs new systems for employees, fixes the problem in case of virus attacks, and prevents technical problems. It helps in the smooth running of the agency.
3.12. INTERNS
Advertising interns are typically university juniors and seniors who are genuinely interested in and have an aptitude for advertising. Internships at advertising agencies most commonly fall into one of five areas of expertise: account services, interactive, media, public relations and traffic. Art students working on the creative side can find internships as an assistant art director or assistant copywriter.
An internship program in account services usually involves fundamental work within account management as well as offering exposure to other facets of the agency. The primary responsibility of this position is to assist account managers. Functions of the account management intern may include:
• Gathering information regarding industry, competition, customer product or service; as well as presenting findings in verbal/written form with recommendations
• Involvement in internal meetings and, when appropriate, client meetings
• Assisting account services in the management of creative projects
• Interns often take part in the internal creative process, where they may be charged with creating and managing a website as well as developing an advertising campaign. Hands on projects such as these help interns learn how strategy and well-developed marketing are essential to a sound advertising and communications plan.
• During their internship, the intern will experience the development of an ad, brochure and broadcast or communications project from beginning to end. During the internship, the intern should be exposed to as much as possible within the agency and advertising process.

4. SWOT ANALYSIS OF THE ORGANISATION
The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis helps for business planning, strategic planning, competitor evaluation, marketing, business and product development and research reports.
4.1. STRENGTH
• Satisfying the need of the clients by creating the ads to increase the brand fame
• Meeting up the client requirements in time in terms of advertising, creative work, digital creation, etc. and making a point to keep deadlines in mind.
• Innovative & creative in advertisement segment as compared to other players
• Quality in advertisement by adding life to the brand and not just making an ad for the sake of the client requirement.
• Global exposure with higher rewards & appreciation
• Efficient team working environment in the organisation makes the agency cope up with the stress factor.
• The creative back up of the company
• The Work/campaigns executed by the creative team
• The casual environment makes it easier to work for the employees
• The infrastructure is well maintained by the company and there are minimal errors or problems faced
• No unauthorised person can have an access to company data as the computers are protected by encryption and coding, therefore securing the information from being misused.
4.2. WEAKNESS
• Pricing strategy is one of the main weaknesses of the agency as the number of jobs per month per client is not considered and any number of requirements is fulfilled by the agency.
• Lacking the promotion strategies, to increase the brand name.
• Lean structure of account management makes a team handle more than 4 or 5 major clients and not one dedicated team per client.
• Risk of losing client in case of campaign being weak in execution by the agency.
• Cannot easily find personnel for any post in case of high employee turnover in the organisation.
• There is no much interaction between an account executive and the creative team on regular basis other than when it comes to regular work or creative briefing session.
• A newly appointed accounts executive has a tough time in mingling with the creative team as its in a different floor and there is hardly any interaction between the two floors.
4.3. OPPORTUNITIES
• Entering in global market to attract global clients and serve them.
• Being the oldest advertising agency in India, its brand among its clients is very strong because of which they have lot of client coming back with new product for getting advertised.
• In its successful journey, they have a lot of wonderful memorable advertisement done by them till date. This has increased their brand image in the Indian market.
• Good campaign brings more clients for them to work with and increase their goodwill.
• The best in the agency-person makes the company get more clients by the work or recognition gained by him in the industry.
• It can attract many known professionals in the industry with the number of account it has and bring about a change in advertising.
4.4. THREATS
• Challenging stiff competition from its competitor’s from both domestic & international levels.
• Change in the taste and preferences of the clients with time.
• Lack of creative minds and these creative teams are also too expensive in overall management.
• Change in government policies can hinder the functioning of the agency and make them use some other media or product for advertising the brand name or retaining the brand in the minds of the customers.
• Account executives can jump to client side as they are in constant touch with the clients.
• The agency cannot approach a similar industry or client competitor product and serve them.

A SPECIAL STUDY
ROLE STRESS AMONG EMPLOYEES WORKING AT GREY GROUP
Problem identification
Employees are the backbone of any advertising agency. This industry does not depend on machines and labour. It’s the people who make or mar the organization. But with the fame as to gain, there also comes a few losses. The losses range from late night work to lack of proper rest, stress among employees to overload of work and fatigue
The employees work at the organisation with utmost dedication, not just to satisfy their basic needs, safety needs and esteem needs, but also to help the organisation reach its goals and make the company gain recognition among the clients and win more accounts. The employees spend more than required time at the organisation to satisfy the needs of their clients and fulfil their requirements.
Objective
• The objective of the research is to identify the physical or mental health stability of the employees and help the organization understand the same.
• To help the organisation identify the health problems faced by the employees and find a suitable solution for the problem.
Research
Questionnaire: The questionnaire is designed to identify the health issues among employees that affect their health directly because of the nature of their work and help the company analyse the causes for the same. The questionnaire includes positive and negative questions for the employees to answer and help the organisation to understand the employees better.
Scoring: For positive statements the scoring was Never-5, Rarely-4, Sometimes-3, Often-2, Always-1.
For Negative statement the scoring was Never-1, Rarely-2, Sometimes-3, Often-4, Always-5.
Employees: The employees of Account Management department, creative department, Digital and studio were approached to answer the questionnaire and be a part of the survey. A total of 32 employees have helped by answering for the research. Out of 32 employees 10 were women employees among whom 3 were married and 7 were unmarried. The total numbers of male respondents were 22, out of which 10 were married and 12 were single. The employees were asked not to disclose their identity and give their response by picking the first natural option that would come to their mind.
Scaling: The maximum score calculated is 180 of the 36 statements. The scaling done to analyse the results are: 1-60: If the scoring of the person falls in this category then we analyse that the employee does not face much stress. 61-120: If an employee falls in this category, then it implies that the person has stress, and the level of stress is not too high or not too low. The amount of stress is needed to attain the goals of individual and organisation. 121-180: Employees falling under this category are analysed to be facing high stress level at the organisation and might be facing health issues in personal life.
Analysis
1. 16.56% of the employees never feel emotionally drained from their work. 33.34% of the employees rarely feel emotional issues hindering their performance and 50.09% of the employees judge themselves to have experienced emotional drain for their work. Men have less emotional hindrance at work than women.
2. 70% of the employees get only 3-6 hours of sleep. 30% of the employees get to sleep for more than 6 hours.
3. 60% of the employees find it difficult to wake in the morning for exercise. Whereas 40% are willing to exercise in the morning for a good health. Of the 40% of employees 65% of them use walking as the means to exercise, where 23% choose to do yoga or aerobics to keep them fit. The other 12% go to gym in the day for a brighter day.
4. About 66.63% of the employees are confident that their colleagues, parents and friends can help them calm down and make them feel better at time of stress. Whereas the other 33.37% of the employees feel that it is never an option to depend on others for help.
5. Around 80% of the employees can concentrate well in the work that they do. Whereas 20% of the employees find it difficult to concentrate, out of which 33.33% have reasoned out that work load is the reason why they cannot concentrate, 25% of the employees cannot concentrate because of their health issues and 41.67% of the employees feel isolated and have no one to talk to around them at time of difficulty.
6. Among 82% of the employees feel fit and active in their routine work and are never exhausted by the day’s activity. Among the 82%, 78% of the employees are full of plans for the day and have high output level and they keep themselves busy engaging themselves in productive work.
Case Findings
• From the above study we can infer that the work load and hectic schedule of the employees does not add to the stress level of the employees.
• They working environment is in favour of the employees and this keeps them positive throughout the day at their work place. The employees are active and fit, in spite their busy working hours.
• If the employees ever feel that the health is a major concern in future then they would rather opt for working out and keeping them fit, than blaming the work life and the working environment.
• The employees are in the office premises late till night and work towards the betterment of the company and make it a point to leave the client happy at the end of the day by meeting deadlines.
• The employees use the weekend to relax their body and mind and release them from the tension and stress they face, they start off fresh from for the next week by enjoying their weekends with family, friends and colleagues.
• 76.5% of the employees fall under the category of 61-120 on the scale andwe infer that they do not face have high stress level. The amount of stress would exist in most of the employees of any organisation.

FINDINGS
• The company has good 63 brands as clients which makes it a plus point to approach any other non-competitor product in the market and help them build their brand.
• The 14 members in the Account service department perform their role by understanding the client requirement and meeting 100% demands of the clients with delay in deadlines may be once o twice in 6 months
• The creative team which is 16 in number is dedicated to their work and help meet the client requirement by bringing about innovation and creativity in the work.
• The active 3 members in the account planning team try to understand the wants and needs of the Target Group and make an attempt to make the brands more popular among customers and by bringing in activation into picture.
• The environment in the organisation is casual and relaxed, only deadlines make their jobs tough 60% of the times.
• There is no HR department as such in the organisation and therefore the employees in the organisation have no one to turn to at times of need.
• Since this industry works late till night, there is no work–family balance as 75% of the employees time is spent at the organisation.
• The account service team does not stay put always and there is running around 50% of the time. They move in and out of the premises quiet frequently and so they have no major health problems.
• The working environment is casual and relaxed 85% of the time, because it’s believed that ideas flow easily only when you are comfortable with the work environment and the team you belong to.
• The creative team and the studio have to work in front of the computer for 99.9% of the times and complete the tasks, which makes them more prone to having health issues.
• There is 20% stress level among employees, not because they take their jobs light, but, it is because they have a very casual, carefree environment 80% of the times.
• The studio is where good relationships are built among employees, because the final artworks are done here and during this time, the account executives spend 40% of their time in interacting with fellow employees, while the studio personnel incorporates changes in the final artwork.
• The motivation factor at the agency is, the awards and recognition that can be gained at various award functions like, Cannes, IAMAI Awards, Webby Award, Abby award, Euro Effies if they have creative advertisement.
• The award brings in 75% recognition and more clients for the agency.

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.
While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited commercial e-mail and other forms of spam have become so prevalent, as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. In addition, advertising frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on the intended consumer, which may be harmful. Many even feel that often, advertisement exploit the desires of a consumer, by making a particular product more appealing and by manipulating the consumer’s needs and wants.
There is no alternative way to advertise a product or service. It is important to explore the various advertising media and select those which will most effectively convey the message to the customers in a cost-efficient manner. Point to be remembered, advertising is an investment in the future of your business. Ad agency is service industry and it is growing very fast. Talented people are hired and they are showing their creativity.
The ad agencies are providing services to companies by carrying their advertisement campaign most effectively. They know how to attract the consumers. On, one side agency are very expensive, they charge more considerable amount of money for the advertisement campaign. On the other side it is useful to the company .The ad agencies can launch the company product in a better way

SUGGESTIONS
• The agency can set up a cabin in the creative floor for a new account executive, hence helping the account executive get acquainted with the creative team and then shift him to the actual floor after a month or so.
• There should be a HR department in the organisation which will constantly check on the employees Job satisfaction level.
• The HR can conduct many interactive sessions for all the employees where, they will get a chance to interact and mingle with their subordinates.
• There can be a day in a year or month called “The Grey Day” where people at the organisation can decide on a theme and wear colourful,++ costumes and make their schedule fun.
• There can be a researcher appointed who can help account executives with their field work and can carry surveys, mystery shopping, and other similar jobs.