FCB Ulka forays into promotion services

The FCB Ulka group has entered into promotion services after its foray into direct marketing, healthcare, media buying and creative services.

The fourth largest marketing communications group in India has set up an independent promotions arm that would cater to the growing business of promotions.

M G Parmaeswaran, executive director, said: " We believe promotions can play a strategic role in building a brand and a tactical role in stimulating sales and rewarding customers. This division would be one step towards offering a complete marketing solution."

The agency is targeting a Rs 50 crore business in the first two years. According to Parameswaran, this stems from the increase in promotional spends by telecom, financial services and automobile sectors.

Also, the maturing of organised retailing in the form of supermarkets and multiplexes has necessitated the need for promotions, he added. The agency, which has clients such as Tata Motors, Whirlpool, Hero Honda, Tata Indicom among others, will offer promotions as an additional service while taking on new clients as well.

The promotions business is one of the fastest growing segments of the advertising industry. The industry is pegged at Rs 5,000 crore and is growing at 15 per cent every year.

Advertising agencies have begun to take note of this segment and in many cases have begun setting up separate divisions or acquiring specialist promotion agencies.

Early this year, Mudra had acquired the Rs 10 crore Kidstuff Promotions, while Percept had launched P9 last year for events and promotion.