Rural communication methods and advertising play a vital role in reaching and engaging the large, diverse population living in India’s villages. Unlike urban markets, rural areas often face challenges such as lower literacy rates, limited access to digital media, and dispersed populations. As a result, companies must adapt their communication and advertising strategies to be effective in these unique settings.
Rural communication methods typically include traditional media like wall paintings, folk performances, street plays (nukkad natak), and local fairs (melas), as well as modern approaches such as mobile vans, community radio, and village-level influencers. Companies choose these methods because they can effectively connect with rural audiences in local languages, utilizing culturally relevant messages.
Rural advertising leverages these communication channels to create awareness, educate, and influence buying decisions. Brands often tailor their campaigns to local contexts, combining visual, oral, and experiential elements to ensure high impact and recall.
Case Studies and Examples
1. HUL’s Lifebuoy Soap – Nukkad Natak and Wall Paintings
Method: Hindustan Unilever used street plays and wall paintings to educate rural communities about hygiene and handwashing.
Impact: These interactive performances, conducted in local dialects during village fairs, made the message relatable and memorable, significantly boosting Lifebuoy’s rural sales.
2. ITC’s e-Choupal – Digital Kiosks and Community Meetings
Method: ITC set up e-Choupal digital kiosks in villages, providing farmers with information about crops, weather, and market prices. Regular community meetings and demonstrations further reinforced these messages.
Impact: This two-way communication built trust and increased adoption of ITC’s products and services.
3. Coca-Cola – Mobile Van Campaigns and Village Melas
Method: Coca-Cola used mobile vans equipped with audio-visual aids to travel to remote villages, participating in local melas and festivals for product sampling and brand promotion.
Impact: This approach helped Coca-Cola build brand awareness in areas with limited traditional media reach.
4. Colgate – School and Panchayat Programs
Method: Colgate partnered with schools and village panchayats, conducting oral health education sessions and distributing free samples.
Impact: These grassroots campaigns, delivered by trusted local influencers, increased toothpaste usage and brand preference.
In summary: Rural communication and advertising require a blend of traditional and innovative methods to overcome infrastructural and cultural barriers. By leveraging local media, folk traditions, and community influencers, brands can effectively reach and engage rural consumers, leading to greater awareness and market penetration.
In India, contracts can range from simple purchase agreements to complex joint ventures, mergers, or licensing deals. Negotiations are critical because they determine the rights, duties, and remedies of each party, reduce the risk of disputes, and foster trust.
Key Features of Contracts in India
Offer and Acceptance: A valid contract requires a clear offer by one party and its unconditional acceptance by the other.
Consideration: There must be something of value exchanged.
Capacity: Parties must be competent (e.g., of legal age, of sound mind).
Legality: The agreement must be for a lawful purpose.
Examples and Case Studies
1. Reliance Jio and Facebook (2020):
Context: Facebook acquired a 9.99% stake in Jio Platforms.
Negotiation: Intense negotiations were held around price, governance rights, and digital collaboration.
Outcome: A landmark deal that set new standards for tech investments in India, with all terms documented in a detailed share subscription agreement and strategic partnership contract.
2. Vendor Agreement in IT Sector:
Example: Infosys contracts with global clients for software services.
Negotiation Points: Scope of work, payment terms, intellectual property rights, service-level agreements (SLAs), and dispute resolution mechanisms.
Impact: Well-negotiated contracts protect both client and service provider, ensuring project success and legal compliance.
3. Real Estate Lease Agreement Dispute:
Case: Delhi High Court’s ruling in DLF v. MCD (2012).
Issue: Disagreement over lease terms and maintenance obligations.
Learning: Highlighted the importance of detailed negotiations and clear terms to avoid litigation.
Summary: In India, effective contracts and skilled negotiations are essential for business stability and growth. Notable deals (like Reliance-Facebook) and everyday vendor agreements demonstrate how thorough negotiation and clear documentation safeguard interests and reduce risks.
B. Revenue sharing model
Revenue Sharing Model in Contracts and Negotiations
A revenue sharing model is an agreement where two or more parties agree to divide the income generated from a business activity in a specified proportion. This model is widely used in sectors like technology, media, entertainment, franchising, e-commerce, and sports. Revenue sharing aligns incentives, reduces upfront costs for partners, and spreads risk.
Key Features
Percentage Split: Revenue is often split based on a pre-decided ratio (e.g., 70:30 or 50:50).
Scope: Applies to gross or net revenues, and the contract specifies what counts as “revenue.”
Duration: The agreement can be for a fixed term or tied to the lifespan of the venture/product.
Audit Rights: Parties may have rights to inspect books to ensure correct sharing.
Recent Examples and Case Studies
1. OTT Platforms and Film Producers
Example: Netflix & Dharma Productions (2022–2023)
Context: Dharma Productions licensed several films to Netflix India.
Revenue Sharing: Instead of a simple one-time fee, Dharma and Netflix agreed on a model where streaming revenue (from subscriptions/viewership) is shared in a set ratio, incentivizing both to promote the films.
Outcome: Both parties benefit—producers gain recurring revenue, and Netflix shares risk and reward.
2. E-commerce Marketplace Sellers
Example: Amazon India and Small Retailers
Context: Sellers on Amazon India agree to a revenue sharing model, where Amazon takes a commission (ranging from 5% to 25%) on each sale.
Negotiation Points: Commission percentage, payment timelines, promotional costs, and handling of returns.
Case: During the 2023 festive sales, Amazon introduced special revenue-sharing incentives for local artisans under its “Local Shops on Amazon” program, increasing their share for a limited period to boost participation.
3. IPL (Indian Premier League) – Broadcasting Rights
Case Study: BCCI & Broadcasters (2023–2027)
Context: The BCCI sold IPL media rights to Viacom18 and Star India in a multi-billion dollar deal.
Revenue Sharing: Broadcasters and BCCI share advertising and subscription revenue based on detailed contractual terms.
Impact: This model ensures the BCCI gains from the league’s growing popularity, while broadcasters are incentivized to maximize viewership and ad sales.
4. Music Streaming Platforms
Example: Gaana/Saavn & Independent Artists
Context: Indian music streaming platforms share revenue with artists/labels based on streams.
Model: A percentage of subscription/ad revenue is distributed to rights holders, negotiated individually or via collective rights organizations.
Summary Table
Sector
Parties Involved
Revenue Sharing Model
Recent Example/Case Study
OTT & Film
Producer & Streamer
Percentage of streaming revenue
Netflix & Dharma Productions
E-commerce
Marketplace & Seller
Commission per sale
Amazon India & Local Retailers
Sports Broadcasting
League & Broadcaster
Share of ad/subscription revenue
IPL Media Rights (BCCI & Viacom18)
Music Streaming
Platform & Artists/Labels
Pro-rata share of platform revenue
Gaana/Saavn & Indie Artists
In summary:
Revenue sharing models are now central to many Indian business contracts and negotiations, ensuring risk and reward are balanced between parties. These models are increasingly favored due to their flexibility and ability to incentivize long-term collaboration.
B. Minimum guarantee model
The minimum guarantee model is a contractual arrangement where one party (usually a distributor, platform, or licensee) commits to paying the other (often a content creator, producer, or rights holder) a fixed minimum amount, regardless of actual revenue or performance. If revenues exceed the MG, additional profits may be shared according to agreed terms. This model is common in entertainment, publishing, and licensing industries.
How It Works
Upfront Payment: The licensee/distributor pays a non-refundable minimum guarantee to the producer/content owner.
Recoupment: The licensee recovers this amount from future earnings (sales, subscriptions, box office, etc.).
Additional Revenue: If earnings surpass the MG, surplus is split based on a negotiated revenue-sharing ratio.
Risk: The licensee bears the risk if actual revenues are less than the MG.
Examples and Case Studies
1. Indian Film Distribution
Example: A Bollywood producer sells theatrical rights for a new film to a regional distributor for a minimum guarantee of ₹20 crore.
The distributor pays ₹20 crore upfront.
If box office collections in that region exceed ₹20 crore (after costs), the surplus is shared as per contract (e.g., 50:50 split).
If collections fall short, the distributor absorbs the loss.
Case Study: Baahubali: The Beginning (2015)
The Telugu film’s Hindi theatrical rights were sold to Karan Johar’s Dharma Productions with a substantial MG.
Dharma paid a high upfront MG, banking on the film’s pan-India appeal.
As the film became a blockbuster, revenues far exceeded the MG, benefiting both parties.
2. OTT Platform Acquisitions
Example: Amazon Prime Video acquires exclusive streaming rights to a highly anticipated Tamil movie for an MG of ₹30 crore.
The producer receives this amount regardless of the film’s streaming performance.
If the film drives massive new subscribers, the platform can realize greater long-term value, but bears risk if viewership is low.
Case Study: Soorarai Pottru (2020)
Amazon Prime Video reportedly paid a significant MG to acquire worldwide streaming rights, providing financial security to the producers during the pandemic when theatrical releases were uncertain.
3. Music Licensing
Example: A music label sells digital rights for a new album to a streaming service for an MG of ₹5 crore.
The streaming service must pay this sum, regardless of the album’s performance on the platform.
Additional royalties may be paid if streams surpass a certain threshold.
Summary Table
Sector
Parties Involved
MG Application
Example/Case Study
Film Distribution
Producer & Distributor
Upfront minimum for theatrical rights
Baahubali, Bollywood deals
OTT Acquisition
Producer & OTT Platform
Upfront MG for digital rights
Soorarai Pottru, Amazon Prime
Music Licensing
Label & Streaming Service
MG for album/track rights
Major Indian label deals
In summary:
The minimum guarantee model provides financial assurance to content creators and shifts risk to distributors or platforms. It is widely used in Indian entertainment, with successful examples in film and digital content. Thorough negotiation of MG terms and revenue-sharing ratios is crucial to balance risk and reward for both parties.
C. Share in profits model
Share in Profits Model in Contracts and Negotiations
The share in profits model is an agreement where two or more parties agree to split the actual profits generated from a business activity, project, or intellectual property, according to a pre-agreed ratio. Unlike minimum guarantee or revenue sharing, this model focuses on profits (net of costs/expenses), so all parties are invested in both generating income and controlling costs.
How It Works
Profit Calculation: Net profit is calculated after deducting all expenses (production, marketing, distribution, taxes, etc.) from total revenue.
Profit Split: The remaining profit is distributed among stakeholders as per the contract (e.g., 60:40, 50:50 splits).
Alignment of Interests: Both sides are incentivized to maximize profitability, not just gross revenue.
Recent Indian Examples and Case Studies
1. Bollywood Co-production Agreements
Example: Pathaan (2023) – Produced by Yash Raj Films, several distributors and exhibitors entered into profit-sharing agreements rather than flat-fee deals. After deducting costs, profits from box office collections were shared between the producer and key distribution partners, which incentivized both to invest in marketing and maximize earnings.
2. Actor-Producer Partnerships
Example: In recent years, top actors like Akshay Kumar and Shah Rukh Khan have taken a share in profits instead of a fixed upfront fee for certain films. For instance, Akshay Kumar, for Mission Mangal (2019), reportedly opted for a lower upfront fee in exchange for a larger share of profits, aligning his compensation with the movie’s success.
3. OTT Originals (Web Series and Films)
Case Study: Sacred Games (Netflix India) – The production house, Phantom Films, negotiated a profit-sharing arrangement with Netflix, where profits from international syndication and merchandise were shared, not just the initial licensing fee. This encouraged the production team to maintain high quality and cross-promotional efforts.
4. Franchise and Sports Leagues
Example: Indian Premier League (IPL) franchises share profits with team owners, sponsors, and players through bonus pools, especially based on team performance and seasonal profits, ensuring all stakeholders benefit from the league’s commercial success.
Context: Tata Motors, in some strategic partnerships for new vehicle launches, uses profit-sharing agreements with key component manufacturers, especially for electric vehicles.
How it Works: Instead of a fixed payment, suppliers receive a percentage of net profits from vehicle sales. This incentivizes suppliers to maintain quality and innovation, as their earnings grow with the success of the vehicle line.
6.. Pharmaceuticals: Dr. Reddy’s Laboratories & International Licensing Partners
Context: Dr. Reddy’s Labs has entered into profit-sharing arrangements with overseas pharma companies for co-developed or out-licensed drugs.
Details: After deducting manufacturing and marketing costs, profits from drug sales in target markets are split between Dr. Reddy’s and the partner company, ensuring both share rewards and risks.
7. E-Commerce: Flipkart & Private Label Brands
Context: Flipkart collaborates with private label brands on a profit-sharing basis for exclusive product launches.
Mechanism: Instead of buying inventory outright, Flipkart agrees to share profits (after costs) from sales of the product line, encouraging both parties to invest in marketing, quality, and supply chain efficiency.
8. Media & Entertainment: Zee Music & Independent Artists
Context: Zee Music often enters profit-sharing contracts with independent artists for digital releases.
How it Works: After deducting promotion and distribution costs, remaining profits from streams and digital sales are split between the label and the artist, allowing both to benefit from a song’s popularity.
Summary Table
Sector
Parties Involved
Share in Profits Model
Example/Case Study
Film Production
Producers & Distributors
Profits post-expenses split among stakeholders
Pathaan, Mission Mangal
Talent Contracts
Producers & Actors
Actor receives % of net profits
Akshay Kumar, Shah Rukh Khan
OTT Originals
Producers & Platforms
Profit share from syndication/merchandising
Sacred Games/Netflix
Sports/Franchises
League, Franchise, Players
Profits shared as bonuses or dividends
IPL teams
In summary: The share in profits model is increasingly popular in Indian films, OTT, and sports, fostering collaboration, aligning incentives, and maximizing value for all parties involved. Thorough negotiation and transparent accounting are crucial
Company law in India is a specialized branch of law that governs the formation, functioning, and dissolution of companies. It establishes the legal framework that companies must operate within, ensuring transparency, accountability, and protection of stakeholder interests. The primary legislation governing company law in India is the Companies Act, 2013.
Key Aspects of Company Law
Formation and Incorporation: Lays down rules for how companies are legally created, including requirements for directors, shareholders, and capital.
Corporate Governance: Specifies how companies should be managed, including board structure, meetings, disclosures, and audits.
Rights and Duties: Outlines the rights and responsibilities of directors, shareholders, and other officers.
Regulatory Compliance: Mandates regular filings, audits, and disclosures to ensure companies remain compliant and transparent.
Winding Up: Provides procedures for dissolution or closure of a company.
TCS, as a public limited company, strictly complies with the Companies Act, 2013 and SEBI’s listing obligations.
The company’s strong board structure, regular disclosures, and adherence to independent directors’ requirements are exemplary, showing the Act’s impact on governance and transparency.
2. Satyam Scandal (2009): Lessons in Ethics and Law
Satyam Computer Services was involved in one of India’s largest corporate frauds, where its founder admitted to manipulating accounts.
The scandal exposed gaps in regulatory oversight and led to significant amendments in company law, emphasizing stricter auditor oversight and more robust disclosure norms in the Companies Act, 2013.
3. Section 135 – Corporate Social Responsibility (CSR)
India became the first country to mandate CSR spending for certain companies through Section 135 of the Companies Act, 2013.
Example: Infosys, Reliance, and ITC have set up extensive CSR programs in compliance with this requirement, investing in education, healthcare, and rural development.
4. Byju’s (2023–2024): Compliance and Governance
Byju’s faced regulatory scrutiny due to delayed financial reporting and alleged lapses in governance.
The case highlights the importance of transparency, timely filings, and adherence to statutory obligations under company law.
Summary: Company law in India is essential for fostering fair, ethical, and transparent business practices. High-profile examples like TCS and Infosys illustrate the benefits of strong corporate governance, while cases like Satyam and Byju’s show the consequences of non-compliance and unethical conduct. The Companies Act, 2013 continues to evolve, adapting to new business realities and global standards.
B. Registration Procedures and Exceptions
Standard Registration Procedures
In India, company registration is governed by the Companies Act, 2013. The process has become largely digital and streamlined through the Ministry of Corporate Affairs (MCA) portal. Here’s a step-by-step overview:
Choose a Business Structure: Select the appropriate entity type (Private Limited Company, Public Limited Company, LLP, OPC, etc.) based on your needs.
Name Reservation: Apply for name approval via the RUN (Reserve Unique Name) service on the MCA portal.
Obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN): All directors must have a DSC and DIN for digital filings.
Draft Charter Documents: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA).
File Incorporation Forms: Submit the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, which integrates registration for PAN, TAN, GST, EPFO, and ESIC.
Certificate of Incorporation: Upon approval, the Registrar of Companies (RoC) issues a Certificate of Incorporation. The company can then open bank accounts and commence business.
Case Study: Zepto (2021): Zepto, a quick-commerce startup, was incorporated as a Private Limited Company using the SPICe+ form. The digital process enabled the founders to register and start operations within days, facilitating rapid expansion and fundraising.
Exceptions and Simplified Procedures
To foster entrepreneurship, certain company types and initiatives enjoy simplified or special procedures:
1. One Person Company (OPC)
What: Allows a single individual to incorporate a company with limited liability.
Exception: Reduced compliance compared to other companies (e.g., no need for annual general meetings).
Example: Many tech consultants and solo entrepreneurs in India register as OPCs for ease and protection.
2. Startup India Recognition
What: Startups recognized under the Startup India scheme get expedited registration, tax exemptions, and relaxed compliance.
Exception: Faster incorporation and self-certification for labor and environmental laws.
Case Study: Razorpay (2014): Recognized as a startup, Razorpay benefited from quick registration and compliance under Startup India, enabling it to focus on innovation and scale rapidly.
3. Limited Liability Partnership (LLP)
What: Hybrid between partnership and company; simpler compliance and lower cost of registration.
Exception: Less regulatory burden than a Private Limited Company.
Example: Many small service firms (consultancies, legal firms) prefer LLPs for flexibility and limited liability.
4. SPICe+ Integrated Form
What: Allows for single-window registration covering company, PAN, TAN, GST, ESIC, and EPFO.
Exception: Reduces paperwork and time-to-incorporation for all company types.
Case Study: Nykaa (2012): Used the then-available digital forms (precursor to SPICe+) for swift registration and compliance, supporting rapid growth.
Summary Table
Procedure/Exception
Description
Example/Case Study
Standard Registration
Name, DSC, DIN, MOA/AOA, SPICe+, RoC
Zepto
OPC
Single founder, reduced compliance
Tech consultants
Startup India
Faster process, tax benefits
Razorpay
LLP
Hybrid entity, easier compliance
Legal/accounting firms
SPICe+ Form
One-stop digital registration
Nykaa
In summary: India’s company registration process is robust yet increasingly simplified, with notable exceptions for new-age businesses and startups. Case studies like Zepto, Razorpay, and Nykaa show how these procedures and exceptions enable rapid, compliant business creation and growth.
C. Company Procedure and Ethics
Company Procedure
Company procedure refers to the formal steps and processes that companies must follow to operate legally and efficiently. These include:
Conducting Board and General Meetings: Proper notice, agenda, and minutes must be maintained.
Statutory Filings: Annual returns, financial statements, and other documents must be filed with the Registrar of Companies (RoC).
Compliance with Laws: Adhering to the Companies Act, SEBI regulations (for listed companies), and other applicable laws.
Maintaining Registers and Records: Companies must keep statutory registers of members, directors, and charges.
Recent Example: Tata Consultancy Services (TCS): TCS consistently demonstrates robust corporate procedures, with timely annual general meetings (AGMs), transparent disclosures, and meticulous compliance with SEBI and Companies Act norms. This has helped TCS maintain investor confidence and avoid regulatory penalties.
Company Ethics
Company ethics refer to the principles of integrity, transparency, fairness, and accountability in business conduct. Ethical lapses can lead to regulatory scrutiny, reputational damage, and legal consequences.
Recent Indian Cases:
Byju’s (2023–2024):
Issue: Byju’s, a leading edtech firm, faced criticism for delayed financial disclosures, aggressive sales tactics, and alleged misrepresentation in its accounts.
Ethical Concern: Lack of transparency and potential misleading of stakeholders led to investigations and loss of trust among investors and customers.
Satyam Scandal (Legacy, but still relevant):
Issue: Satyam Computers (2009) involved large-scale financial fraud, falsification of accounts, and unethical board conduct.
Impact: The scandal prompted reforms in corporate governance and ethics, influencing the Companies Act, 2013.
Zilingo (2022):
Issue: Singapore-based, but with significant Indian operations, Zilingo suspended its CEO over alleged financial irregularities. The case highlighted the importance of ethical leadership and strong internal controls for startups operating in India.
Transparency issues and delayed financial reporting
Ethics
Satyam
Accounting fraud, led to stricter corporate governance laws
Ethics
Zilingo
Leadership suspended over financial irregularities
In summary: Company procedures ensure legal compliance and orderly operation, while robust ethics build trust and long-term sustainability. Recent Indian cases like Byju’s and TCS illustrate the impact—both positive and negative—of following or ignoring these principles.
Company creation is the process by which entrepreneurs formally establish a legal business entity to operate, grow, and scale their ideas. This process involves transforming an innovative concept into a structured organization recognized by law, allowing for organized operations, access to funding, and legal protection for founders.
Key Steps in Company Creation
Idea Validation: Assessing the feasibility and market demand for the business concept.
Choosing a Business Structure: Selecting the most suitable form—such as sole proprietorship, partnership, Limited Liability Partnership (LLP), private limited company, or public limited company—based on scale, liability, and goals.
Legal Registration: Registering the entity with government authorities (such as the Registrar of Companies in India), obtaining necessary licenses, and complying with statutory requirements.
Operational Setup: Setting up banking, hiring, creating operational processes, and launching products or services.
Examples and Case Studies
1. Start-up Example: Nykaa
Background: Falguni Nayar founded Nykaa in 2012 as a private limited company.
Process:
Registered as FSN E-Commerce Ventures Pvt Ltd.
Secured initial funding, set up e-commerce operations, and established partnerships with suppliers.
Transitioned to a public limited company before its IPO in 2021.
Outcome: Today, Nykaa is a leading e-commerce platform in the beauty sector and a publicly listed company.
2. Social Enterprise Example: SELCO India
Background: SELCO was founded to make solar energy accessible to rural India.
Process:
Registered as a private limited company focused on social impact.
Developed partnerships with local banks for financing.
Built a scalable model that combines profit with social good.
Outcome: SELCO has impacted over half a million households and received national and international recognition.
3. Tech Start-up Example: Zepto
Background: Founded by two teenagers in 2021, Zepto started as a quick-commerce grocery delivery company.
Process:
Registered as a private limited company in Mumbai.
Raised venture capital funding.
Scaled operations rapidly across major Indian cities.
Outcome: Zepto became a recognized brand in the 10-minute delivery space and secured significant investment.
Summary: Company creation is a foundational step for any aspiring entrepreneur, providing a legal identity and framework for business growth. Real-world examples like Nykaa, SELCO, and Zepto highlight the diverse ways companies can be created—whether for profit, social impact, or rapid innovation—by following structured steps from ideation to legal formation and operational rollout.
Company Creation
Company creation is the act of legally establishing a business entity. This process transforms a business idea into an officially recognized organization, allowing it to operate, contract, hire, and grow. Common types of business entities include:
Sole Proprietorship
Partnership
Limited Liability Partnership (LLP)
Private Limited Company
Public Limited Company
One Person Company (OPC)
Choosing the right structure depends on factors like the number of founders, liability protection, capital needs, and regulatory requirements.
Processes of Registration and Incorporation
1. Choosing a Business Structure
Select the most suitable type of company based on your needs (e.g., private limited for startups seeking investment).
2. Name Reservation
Choose a unique name and check its availability using the Ministry of Corporate Affairs (MCA) portal. Submit your name for approval.
3. Preparing Documents
Draft the Memorandum of Association (MOA) and Articles of Association (AOA), which define your company’s objectives and internal rules.
4. Obtaining Digital Signatures and DIN
Directors must get Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) to sign documents electronically.
5. Filing Incorporation Forms
Submit all required documents using forms like SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) on the MCA portal. This integrated form covers company registration, PAN, TAN, GST, ESIC, and EPFO registration.
6. Verification and Approval
The Registrar of Companies (RoC) reviews the documents and may seek clarifications or corrections.
7. Certificate of Incorporation
Once approved, the RoC issues a Certificate of Incorporation. Your company is now a distinct legal entity and can commence business activities.
Examples and Case Studies
Case Study 1: Nykaa
Background: Founded by Falguni Nayar in 2012.
Process: Registered as FSN E-Commerce Ventures Private Limited using the MCA portal. Followed all standard steps, raised funding, and later converted to a public company for IPO.
Outcome: Became a leading beauty e-commerce player in India, demonstrating the importance of professional incorporation and compliance.
Case Study 2: Zepto
Background: Quick-commerce startup founded in 2021 by two young entrepreneurs.
Process: Incorporated as a Private Limited Company in Mumbai using the SPICe+ form, allowing quick digital registration and access to investors.
Outcome: Raised significant venture capital and expanded rapidly, showing how robust incorporation enables fast scaling.
Example: One Person Company (OPC)
Context: Introduced in India for solo founders.
Example: A software consultant registers as an OPC for limited liability and ease of compliance, making it easier to contract with larger firms and banks.
Summary Table
Step
Description
Example/Case Study
Structure Selection
Decide between Pvt Ltd, LLP, OPC, etc.
Zepto chose Pvt Ltd
Name Reservation
Propose and get approval for company name
Nykaa reserved unique name
DSC & DIN
Obtain digital signatures and director IDs
Standard for all founders
MOA & AOA
Draft company purpose and rules
Nykaa, Zepto
Filing Registration
Submit SPICe+ and documents on MCA portal
All registered digitally
Incorporation Cert.
Receive legal status and commence operations
Nykaa, Zepto, OPC examples.
In summary: Company creation and incorporation involve structured legal steps that provide a foundation for business growth and credibility. Successful examples like Nykaa and Zepto illustrate how following these processes enables companies to attract investment, scale operations, and achieve industry leadership.
Entrepreneurship routes refer to the various pathways individuals can take to start and grow a business. Each route offers distinct opportunities, challenges, and strategic considerations, allowing entrepreneurs to choose the path that best aligns with their goals, resources, and interests.
Common routes include starting a business from scratch with a novel idea, acquiring an existing business, entering into franchising agreements, engaging in social entrepreneurship to address societal challenges, and practicing intrapreneurship by innovating within established organizations. Understanding these different approaches helps aspiring entrepreneurs identify the most suitable avenue for launching and scaling their ventures, considering factors like industry trends, market needs, and available support systems.
Business Plans and Ideation
Business Ideation is the process of generating creative ideas for a new business, often by identifying problems and designing solutions that can be scaled. This stage involves brainstorming, market research, and evaluating the feasibility of ideas.
Business Plans are structured documents outlining the business idea, target market, competition, marketing and sales strategies, operational plans, and financial projections. A well-crafted business plan helps in securing funding and guiding the growth of the business.
Entrepreneurship Routes
Starting from Scratch: Building an entirely new business based on an original idea. Example: Ola Cabs was built from scratch to solve urban mobility issues in India.
Franchising: Purchasing the right to operate under an established brand and business model. Example: McDonald’s and Domino’s franchises in India.
Acquisition: Buying an existing business and scaling or transforming it. Example: Zomato’s acquisition of Uber Eats India.
Social Entrepreneurship: Establishing ventures that address social or environmental challenges. Example: SELCO India, which provides sustainable energy solutions to underserved communities.
Intrapreneurship: Innovating within an existing large organization. Example: Tata Group’s launch of Tata Neu as a super-app was driven by an internal team.
A logo is a graphic mark, emblem, or symbol used to aid or promote public identification and recognition. It may be an abstract or figurative design or include the text of the name it represents, as in a wordmark. A logo is defined as a small symbol or design adopted by an organization to identify its products, uniforms, vehicles, etc.
Role of Logo in Business Advertising:
When advertising a particular kind of business, there are many different types of methods that are used to ensure a brand is properly visible to its highest prospects. Many businesses overlook the power of logos as an advertising method, despite their potential to yield significant results.
Firms use logo designs as commercial enterprises and institutions do to encourage or advance prominence. Throughout the years, logos have been an important part of brand marketing and identity.
Visual representation of a logo can support a brand and effectively communicate its principles and values, commonly referred to as the symbolic benefits of the business. Advertising using logos carries immense importance.
Why are logos important in business advertising?
Creates a corporate personality and trust
brands,Including your brand’s logo in advertising campaigns can build the brand’s corporate personality and trust in the eyes of the customers and public. In advertising efforts, the more the brand’s logo is displayed, the more you will gain the trust of the potential customers and public, which will in turn result in more sales, production, profits, and revenues. Many popular brands like McDonald’s, Pizza Hut, etc., have made their endeavor a great success through their logo showing it via all their advertising methods.
Connects with the customers:
On a personal level, integrating your brand’s logo in the advertisements helps your customers learn about the product on a much deeper level. It is one of the best ways you can connect with the customers and create a positive impact and response from your customers. Your customers need to relate to the product you are selling, and the logo serves this purpose by creating a connection between the business and the consumer.
Long-term advertising
The firm must remember that the product logo will be the brand’s face and foundation for years to come. If the company dislikes the logo, it will be hard to change after it’s made. So one should always think about the long-term advertising when creating a logo for the brand.
Visualizing what the customers will consider
Your logo is your business’s and product’s face, so design it with the customer’s view in mind. Your customer will be the one who relates to your brand and product, so make sure you design it according to what matters most to the consumers.
Comparing other contenders’ logos:
It is always best to know what the contender is doing and how they have designed their brand logo in the same industry. By doing this, it will give you a deeper understanding or a clear perception of what should be and what should not be done while designing your brand logo. The most symbolic logos are the ones with minimal design, less complicated, easy to understand, etc. The easier the logo, the more it creates savviness among the public. When comparing logos, consider the colors, fonts, shapes, and designs used by other contenders, as these elements can make a logo more attractive to the public.
Elemental, yet influential.
To attract customers, you need to create a simple yet influential eye-catching logo to drive their attention to your brand. FedEx is the best example of the logos here. If you closely look at the white space between the E and the X, you can see an arrow. It’s a subliminal message conveying speedy service. So always keep it simple yet intensive.
Businesses like KFC and McDonald’s are all known by their brand’s logo itself. They carry enormous importance, and therefore getting a logo is critical.
Branding establishes a unique identity through logos, names, and values, making products instantly recognizable in competitive markets. It builds emotional connections, encourages loyalty, and justifies premium pricing, as consumers trust familiar brands over generics. Strong branding also simplifies marketing efforts and supports higher customer retention.
Packaging Role
Packaging protects products from damage, extends shelf life, and enhances convenience during storage and transport. Beyond functionality, it promotes brand visibility with eye-catching designs that differentiate items on shelves and create a memorable unboxing experience. Custom packaging tells a brand’s story, boosting awareness among consumers and wholesalers.
Labeling Functions
Labeling provides essential details like ingredients, usage, price, and quality, empowering informed buying decisions and ensuring regulatory compliance. It aids product identification, prevents malpractices, and reinforces branding through clear, bold information. Effective labels build trust by transparently communicating value and features.
Importance in Rural Marketing
1. Branding
Trust Building: Rural consumers often rely on brand reputation, as personal recommendations and word-of-mouth are strong influences.
Simplified Choices: Brands help rural buyers identify quality and authenticity in unfamiliar product categories.
Emotional Connection: Strong brands can create emotional connections, especially when aligned with local values or aspirations.
Lifebuoy is a trusted brand in rural India due to consistent branding focused on health and hygiene. Their campaigns, such as “Swastya Chetna,” built trust and brand recall among rural consumers, making Lifebuoy a household name.
2. Packaging
Affordability and Accessibility: Innovative packaging (like sachets or smaller packs) makes products affordable for rural consumers with limited disposable income.
Protection: Packaging ensures products withstand harsh storage and transportation conditions in rural areas.
The introduction of low-cost shampoo sachets revolutionized rural personal care markets in India. By offering affordable, single-use packs, companies like Chik and Clinic Plus captured a vast rural customer base that couldn’t afford larger bottles.
3. Labeling
Local Language Communication: Labels in regional languages make products accessible and understandable.
Information Dissemination: Labels provide necessary usage information, expiry dates, and ingredients, which is crucial where literacy rates may be lower.
Trust and Authenticity: Proper labeling assures consumers about product genuineness and safety.
Parle-G uses simple, bold labeling with clear product images and regional language text, making it easy for rural buyers to identify. Tata Salt’s labeling emphasizes purity and health, addressing rural concerns about adulteration.
Case Studies
Case Study 1: Nirma Detergent
Nirma’s low-cost, brightly colored packaging and simple branding appealed directly to rural Indian homemakers.
The product’s jingle, mascot, and easy-to-recognize yellow packaging helped build strong recall and trust in villages.
Case Study 2: Colgate Toothpaste
Colgate invested in education-driven branding, such as oral health camps in rural areas.
Packaging in smaller tubes and local language labeling increased accessibility, adoption, and trust.
Key Takeaways
Branding builds trust and recall, which is vital where personal recommendations matter.
Packaging enables affordability and convenience, making products physically and economically accessible.
Labeling bridges communication gaps, ensuring information is clear and persuasive.
In summary:
Strong branding, smart packaging, and regional labeling are not just marketing tools—they’re essential strategies for success in rural markets, as seen in the above examples from India and other developing economies.
Importance in Rural Marketing
1. Branding
Trust and Reliability: Rural consumers often rely heavily on trust and word-of-mouth when choosing products. Strong brands become symbols of reliability.
Easy Recognition: In areas with lower literacy rates, recognizable logos and colors help consumers pick the right products.
Aspirational Value: Brands can represent modernity or status, influencing rural buying decisions.
Example: Nirma Detergent
Nirma’s simple, memorable branding and jingle made it a household name in rural India, appealing to consumers’ trust and aspirations for cleanliness.
2. Packaging
Affordable Pack Sizes: Small sachets and low-cost packs make products affordable for daily-wage earners and low-income families.
Protection: Robust packaging ensures products survive rough transportation and storage in rural areas.
Convenient Use: Easy-to-open and resealable packs suit rural consumers’ needs.
Example: Shampoo Sachets (Chik, Clinic Plus)
The introduction of shampoo in sachets allowed rural consumers to try and use branded shampoo at a low cost, leading to rapid market expansion.
3. Labeling
Local Language Instructions: Labels in regional languages make products understandable and accessible to non-English-speaking consumers.
Essential Information: Clear labeling assures consumers of quality, expiry dates, and authenticity.
Building Trust: Proper labeling helps fight counterfeiting—a major rural concern.
Example: Parle-G Biscuits
Parle-G uses distinctive, simple labeling in regional languages, making it instantly recognizable and trusted in rural areas.
Case Studies
Case Study 1: HUL’s Lifebuoy in Rural India
Branding: Lifebuoy focused on health and hygiene, values highly relevant in rural communities.
Packaging: Sold soaps in affordable small packs.
Labeling: Used regional languages, making the product accessible and trusted.
Case Study 2: Tata Salt
Branding: Marketed as “Desh Ka Namak” (the nation’s salt), building an emotional connection.
Labeling: Emphasized purity and iodization in local languages, educating rural consumers.
Summary Table
Aspect
Importance in Rural Marketing
Example
Branding
Builds trust, recognition, aspiration
Nirma, Lifebuoy
Packaging
Ensures affordability, protection, convenience
Chik/Clinic Plus Sachets
Labeling
Communicates quality, usage, and safety
Parle-G, Tata Salt
In conclusion:
Branding, packaging, and labeling are not just marketing tools; they are vital for building trust, ensuring accessibility, and driving product acceptance in rural markets. Successful companies tailor these elements specifically for rural consumers, as seen in the above examples.
Emotional appeals are the best collective appeals used by marketers. This type of appeal targets a consumer’s emotions and influences consumer involvement. Whenever a marketer can get a consumer to identify with a situation, particularly through emotional connection, the conversion rate (purchase) increases dramatically. Emotional appeal also includes
Personal appeal—focused on emotions centred around the need for love, joy, self-esteem, happiness, safety, and family well-being
Social appeal—focused on the individual need for recognition, respect, involvement, affiliation, and status
Fear appeal—focused on individual needs based on fears…fear of loss of health, safety, and beauty
Humor appeal—It is proven that “humor” sells, because attention, association, and memory recall are improved through an engaging humorous message.
2. Sex appeals
Sex exercises the strongest effect on consumer attitudes among seven different appeals commonly used in advertising. Sex appeal has been used for so many years by marketers to capture the attention of the sexes. An advantage of using sex appeal is that it is proven to break through clutter. If you’re advertising in a busy time slot, using sex appeals will help the ad get noticed; this helps in increasing brand recognition. The disadvantage of sex appeal is that it can be challenging and may cause negative reactions with different cultures.
3. Humour Appeals
Humor is a proven appeal type for grabbing attention and keeping it. When consumers find something humorous, it has value because it causes them to watch, laugh, and, most importantly, remember. By capturing the viewer’s attention, humor appeals cut through advertising clutter and allow for enhanced recall and improved moods; consumers who are happy associate the good mood with the product and service. E-Trade’s talking baby ad campaign provides an example of this appeal, with a goal of attracting viewer attention through humor. But funny ads can be hard to make because if they’re poorly received, only the ad is remembered, not the product or brand.
4. Fear appeals
Fear can appeal to people when a product or service is needed to help reduce risk in someone’s life—such as the risk of financial failure, poor health issues, the security of losing a home, and even political choices. The emotion of fear can be used effectively as long as it is not too extreme or harsh—which may ultimately affect your brand. Therefore caution is in order. Think of BCAA Life Insurance’s question, “How would they get by without you?” campaign.
5. Rational appeal
Rational appeal aims to focus on the individual’s functional, utilitarian, or practical needs for particular products and services. Emphasize the characteristics and features of the product and the service and how it would be beneficial to own or use the particular brand. Rational appeals use logic, facts, and data to convince consumers to buy products and are often found in advertisements for medications, cookware, and cleaning products.
6. Music appeal
Music in advertising refers to music integrated in (mass) electronic media advertisements in order to enhance their success. Music in advertising affects the way viewers perceive the brand by different means and on different levels and “can significantly affect the emotional response to television commercials.” In advertising, “music can serve the overall promotional goals in one or more of several capacities.”
David Huron came up with six primary categories, which include entertainment, structure and continuity, memorability, lyrical language, targeting, and authority establishment. Being able to use music in advertising has made advertisements more enticing and attention-getting for the audience. Fifteen seconds is currently the standard duration of a television commercial so advertisers need to be able to successfully grab their audience’s attention, which music does.
7. Scarcity appeal
“Majority of stock sold!” “Nearly sold out!” Are you getting nervous by seeing these kinds of phrases in advertisements? Do you have the feeling that you have to buy this product? Scarcity is based on limitations. Scarcity appeal is often used with fear appeals to help in affecting customers by missing out on a potential event. The advantage of scarcity appeal is that it is great for encouraging users to take action. The disadvantage of scarcity appeals is that they must be genuine to consumers; otherwise, they will induce negative attitudes towards the brand.
Positioning is how a brand is perceived by customers and how it differs from competitors’ products. In order to position products or brands, companies may emphasize the distinguishing features of their brand (what it is, what it does, and how, etc.), or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through the marketing mix. Once a brand has achieved a strong position, it can become difficult to reposition it.
An indispensable brand symbolizes the company’s desired perception in the minds of its customers, prospects, and partners. And one that customers truly can’t live without. This process begins by developing a meaningfully differentiated brand positioning strategy. Whether launching a new brand or refreshing an existing one, a brand positioning strategy should impact every facet of the business, not just marketing and advertising-related activities, but also product development, service, support, and customer experience.
1. Creating a Successful Brand Positioning Strategy
To help you make the right branding strategy that not only helps you win customers but also keeps them loyal to you, here’s what you need to do:
2. Create your own brand identity
This step involves conducting an in-depth introspection of the brand to identify its core values and fundamentals, including the strengths, value propositions, long-term vision, and the features and attributes that make it unique compared to other brands offering similar products and services.
3. Create your current brand positioning
Are you currently marketing your product or service as just another item on the market, or are you marketing it as something distinctive? Your current brand positioning gives you important insight into where to go next. You’ll need to understand your current position to further analyze your competition.
4. Know what your competitors are doing
After analyzing yourself, it’s important to analyze your competition by performing competitor analysis. Why? You’ll need to see who you’re up against to conduct competitor research. That research will help you decide what you can do better in your strategy to gain an edge.
5. Identify how you are doing compared to the competition
Knowing your strengths is just as important as knowing your weak points. Coming from the point above, sometimes the best way to know your strengths and weaknesses is to check how your competitors are doing, what makes their campaigns click, and why their brand sticks to their target audiences. One way to do this is to conduct a SWOT analysis to help you identify your strengths, weaknesses, opportunities, and threats in the playing field.
6. Leverage your unique selling proposition
Identifying your brand’s unique selling proposition (USP) lets you stand out from the others. It’s what makes you. Building a unique brand is all about identifying what makes you different and what works best for your business. Chmielewska suggests, “Start by defining what ‘effective’ really means for your brand—and then build its image based on that.”
Chances are, after you conduct competitor research, you’ll begin to see patterns. You’ll start to see some businesses that have the same strengths and weaknesses. As you compare your product or service to those of your competitors, you might discover that one of their weaknesses aligns with your strengths.
7. Create your positioning statement
Taking the time to position your brand to appeal to a certain customer is just the beginning. Once your positioning statement is created, it’s time to test, experiment, and gather feedback from your customers on whether or not your positioning achieves its goal.
As Ryan Robinson of Close.io says, “Investing the time and effort into positioning your brand to appeal toward a specific vertical, type of consumer, or demographic is only a small part of the battle. It’s crucial to test, experiment, and actively gather (real) feedback from your target customers on whether or not your positioning is actually having its desired effect. We’ve doubled down on our positioning by consistently asking for (and listening to) feedback from new customers when they join, and it’s clear that both our content and its delivery style remain a key asset for our brand.”
For example, do we know what makes Nike and Coca-Cola very distinct from the others? Sometimes, not even mentioning their brand but hearing the words “Just Do It” or “Taste the Feeling” already gives you the notion that the campaign is led by these giant brands.
A set of interrelated and coordinated integrated marketing communication activities that center on a particular theme or idea that appears in different media across a specified time period. The central message will be consistently communicated across all of the various IMC activities.
Most of the ads are part of a series of messages that make up an IMC or advertising campaign, which is a set of interrelated and coordinated marketing communication activities that center on a single theme or idea that appears in different media across a specified time period.
Determining a message theme
A strong idea should be the message theme, as it will be the central message in all advertising and promotional activities.
The basic elements of a creative strategy, as outlined in the copy platform, include:
The basic problem or issue that the advertising must address is a fundamental element of a creative strategy.
The objectives of the advertising and communications should be clearly defined.
Target audience.
Major selling ideas or key benefits to communicate.
Creative strategy statement (campaign theme, appeal, and execution technique to be used).
Supporting information and requirements.
The advertising message is as important as the strategy developed for the execution of the same. There are innumerable cases where the message has been good, but because of poor execution, the strategy has failed. There are also cases depicting vice versa.
The classic example is that of Burger King, who changed their theme so often that their franchisees also lost faith in the brand. Thus, as important as the advertising message is, equally important is the strategy or the tactic used to execute it or bring the message to the target audience.
C. Big Idea
Introduction
“Big Idea” in marketing and advertising is a term used to symbolize the foundation for a major undertaking in these areas—an attempt to communicate a brand, product, or concept to the general public by creating a strong message that pushes brand boundaries and resonates with the consumers. Every great product or brand starts with an idea. But how does an idea grow into a big idea? Big ideas, when executed well, excite your client, the marketplace, your employees, and potential clients. Big ideas create multiple layers of engagement, not just with the brand’s customers but also with your all-important staff.
According to Rob Hernandez, Global Brand Director, Firefly Millward Brown, it seems that everywhere we turn these days we see or hear something about “big ideas.” Major global companies, including the likes of Coca-Cola, Procter & Gamble, Unilever, and Diageo, are putting increasing emphasis on finding powerful, mind-blowing creative concepts to fuel their marketing communications campaigns. Rather than relying solely on the appearance of big ideas, these marketers are actively investing in their development.
According to Millward Brown, among the notable success stories, we find the Guinness campaign that creatively affirms, “Good things come to those who wait,” and P&G’s salute to moms, based on the idea that the myriad self-sacrificing tasks of motherhood make it possible for children to grow and succeed and maybe even become Olympic champions. This is where a big idea comes in. A big idea can cut through the noise to capture consumers’ hearts and minds. A big idea can change a brand’s course for the better. Yet many advertisers have traditionally neglected the stage of research in which truly big ideas are likely to emerge.
Features of Big Idea
1. Big ideas resonate with consumers.
For an idea to be powerful, it must hit home with consumers in a meaningful way. It must be based on an authentic idea. Despite its potential for rational appeal, a big idea typically evokes strong emotions.
2. Big ideas are disruptive.
One of the most important elements for any big idea is that it is a game-changer. It disrupts established norms and challenges conventional categories. Taking distinctiveness to the extreme, a big idea represents a new way of thinking, feeling, or acting.
3. Big ideas have talk value
The biggest and best ideas generate buzz and word of mouth. People feel compelled to share their reactions to these emotionally charged, highly resonant, and game-changing propositions.
4. Big ideas stretch brands.
A big idea pushes and extends brand boundaries without breaking them. We consider this an indicator of brand compatibility, one that accounts for believability and credibility all in one. So the question we ask is, does the idea push the brand in positive and potentially new ways without going so far as to strain either credibility or believability?
5. Big ideas transcend cultural and geographic boundaries
The most significant ideas are genuinely universal. Cutting across distinctions of class and ethnicity, the biggest ideas speak to people at a fundamental human level.
A brand with Big Ideas
A big idea is the driving, unifying force behind a brand’s marketing efforts. Of course you want to have a big idea behind your campaign, but how do you know if you really have one? What separates a truly big idea from one that is merely ordinary? How do you recognize a big idea or detect a kernel of it that could be developed?
Here are a few examples of big ideas from brands you know:
Google: to organize the world’s information and make it universally accessible and useful.
Amazon: to be earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.
Southwest Airlines: to be THE low-cost airline.
Nike: to bring inspiration and innovation to every athlete in the world. (And from Nike’s perspective, if you have a body, you are an athlete.)
Facebook: to give people the power to share and make the world more open and connected.
eBay: to provide a global online marketplace where practically anyone can trade practically anything, enabling economic opportunity around the world.
