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Finalofsftdrinks 130119202932-phpapp02

  1. 1. Minor Project “Impact of Advertisements on Consumer Buying Behaviour with Special Reference to Soft Drinks..” IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE OF MASTER OF BUSINESS ADMINSTRATION Under the Supervision Submitted By: Prof.Shivani Bector Hardeep Kaur Proffesor in Management M.B.A Ist Mata Gujri College,Fatehgarh Sahib Roll no:4902 MATA GUJRI COLLEGE,Fatehgarh Sahib PUNJABI UNIVERSITY , PATIALA (2011-2013) 1
  2. 2. DECLARATION I hereby declare that Project Report entitled ‘Impactof Advertisements on Consumer Buying Behaviour with Special Reference to Soft Drinks.’ submitted in partial fulfillment of the requirement for the degree of Bachelor of Business Administration of Punjab Technical University, Jalandhar is my original work & has not been submitted for the award of any other degree at this university. Submitted by: PLACE:DORAHA Hardeep Kaur DATE: __________ M.B.A Ist Roll no: 4902 2
  3. 3. ACKNOWLEDGEMENT Behind the successful undertaking is the blessing and guidance of my faculty members, my project head and many other persons. This formal piece of acknowledgement may be sufficient to express my feelings of gratitude and deep respect that have experienced during the completion of this project .This endeavor would not have been successful without the help of encouragement form a lot of people with whom I had good fortunate of increasing of journey. I am indebted to our Director Dr. R..K.Lekhi , Chief coordinator Mrs. Supreet Kaur , Prof. V. J. Rai , for their guidance and I can easily look it as my most reward in phase the course of my study . Without their immaculate and intellectual guidance , sustained efforts and friendly approach , it would have been difficult to achieve the result in short span of period. I would also like to thanks the other staff members of management department ,my teacher Mr.Raju Rosha who guides me, my parents and my friends for their time and efforts shared with me. I would also like to thank the almighty who has given me courage and resources to complete my project. Hardeep Kaur 3
  4. 4. PREFACE A professional course like Business Management is to gain theoretical knowledge and practical exposure knowledge to its application. The project work is offer to student a chance to work in the environment of the corporate world. Therefore, we have an opportunity to gain experience on practical aspects and theoretical knowledge.Project report is a necessary part of the fulfillment of the BBA degree course. It helps the student to gain knowledge about various aspects of interpreting practical problem through application of concepts and techniques of management. While unfolding this project report gradually & logically in simple language emphasis made by conceptual understanding reasoning. A sincere effort has been made to bring the fact and it is hoped that this report meets the jury expectation and requirements.My project is‘Impact of Advertisements on Consumer Buying Behaviour with Special Reference to Soft Drinks.’Now I take this opportunity to present my report and sincerely hope that it would be useful for readers Hardeep Kaur 4
  5. 5. CERTIFICATE This is certify that the Major Project entitled ‘Impact of Advertisements on Consumer Buying Behaviour with Special Reference to Soft Drinks.’by Sheenam, Roll No.80106312001, inpartial fulfillment of requriment of the degree of Bacholer of Business Administration(B.B.A) Punjab Technical University, Jalandhar and no part of this work has been Submitted earlier for the award of any degree . PLACE :DORAHA Hardeep Kaur DATE:_________ ROLL NO.:4902 Supervisor Mr.Raju Rosha DR.R.K. LEKHI Lecturer in Management Ph.D. (Economic) DIMT DORAHA D.LITT. (Commerce) (DIRECTOR) For Evaluation 5
  6. 6. TABLE OF CONTENTS Chapters : Particulars Page No: 1. INTRODUCTION 6 2. Review of Literature 21 3. Research Methodology 34 4. Data analysis & interpretation 39 5. Findings & conclusion 51 Bibliography & references Annexure Questionnaire 6
  7. 7. CHAPTER:1 INTRODUCTION 7
  8. 8. INTRODUCTION In the dictionary definitions of advertising it does not tell us too much about the modern uses or functions of this business tool. They tell you that Advertising means to make know, to inform, to attempt, to persuade etc. One definition, found in ‘The Reader Digest Great Encyclopedia Dictionary’, says advertising is the act or practice of attracting public notice so as to create interest or induce purchase, also any system or method used for such purposes. Many people would accept this definition as simple and compact, but it is too broad. Advertising is a non-personal, multiple presentations to the market of goods, services or commercial ideas by an identified sponsor who pays for the delivery. 1In essence, advertising is a substitute for human salesman talking personally to an individual prospect or customer across a store, counter, or desk or an open door. And as a substitute for the human salesman, advertising has the same function, abilities and attributes as the human salesman, although usually in less effective form. It is less effective than personal selling, principally because it must be designed to appeal to a mass audience, in contrast with the personal salesman ability to tailor his message to each individual prospect and because again unlike the personal salesman, it has no opportunity to talk objections. As a substitute and an extension of personal selling, advertising also has many of the same characteristics as the personal salesman. It can be hardworking and efficient, or lazy and wasteful. It can be upright and honest or slick and shady. It can tell its story calmly and quietly without hyperbole, or it can shout in your ear. It can address you as though you were a rational, thoughtful human being. It can be serious and thoughtful, or flip and humorous, it can reason with you, or entertain you, flatter you. It can be all these things and do all these things, but no more. Because in the end, its success or failure and its value to the advertiser who pays all its costs must rest on its ability to persuade a sufficient number of prospects to do what it says or buys what it sells without the use of any kind of force. The American Marketing Association (AMA) defines “advertising as any paid form of non-professional presentation and promotion of ideas, goods and service by a identified sponsor.” Advertising is a powerful means of communication, which not only leads to corporate, and product visibility but also creates, stimulates and sustains the demand for the product. The past few decades have led to the emergence of vibrant consumer markets throbbing with the excitement of consumptions. The corporate organizations of today can hardly 8
  9. 9. afford to remain faceless entities and their products merely utilitarian objects. It becomes increasingly imperative for the business houses to assume humanized character and the product to have an emotive association through advertising effort. Advertising does the job of reaching out to people with a se of associations and appeals. Advertising as such has a vast power in sharing the popular desires, and hence it is one of the institutions, which has a formidable influence on our society. It is also defined as a powerful but difficult form of communication, which helps immensely in raising production-sales, bringing more clientele to service sector, and even persuading people to change their perception on social issues. It stimulates greater consumption and hence contributes to social progress through industrial growth. Advertising is a component of marketing mix and it is the marketing mix which determines the kind and nature of advertising and its strategy. Advertising is an art because it involves process of communication of the message across the audience. Advertising is a science because it involves rules, generalization and principles relating to collection of useful information and its application in the advertisement copy. The present day Indian Industry is witnessing all the constituents of a market economy. There are business concerns vying for a maximum share out of the crakes not too big to accommodate all of them. There has been a flood of consumer goods for the buyer to choose from. There are newer products as well as multiple brands. When it comes to consumer goods in a market situation, there are wars on price, quality and positioning fronts. In the light of all these things, advertising assumes a great significance. It is a key weapon in marketing warfare. Building added values, for a brand is the prime role of advertising. The success of effective advertising campaigns is twofold: their ability to attract consumer trial with a compelling dramatization of the product's story, and, their ability to communicate continuous satisfaction or even cumulative benefit as a means of reinforcing loyalty. According to Alyque Padamsee (1995), in the emerging high media clutter environment, both print and electronic media advertising needs more than just to be persuasive. It needs to be noticeable. A great advertisement is no longer one that tells you a lot about a product rationally and emotionally. A great advertisement has to first and foremost attract your attention. 9
  10. 10. Emergence of Soft Drinks Water is life; one cannot even think of the existence of life without it. Water constituents are major parts of the earth as well as the human body. In the ancient times, human being was not aware of the quality of the water he was consuming. As knowledge grew, his concern regarding the quality of water increased. The methods like boiling, filtering & disinfecting with chemicals into existence.But man wasn’t satisfied with change in just the quality but wanted a change in the taste to quench thirst. This was when the concept of flavored water came into existence. A modified aspect of this concept led to the development of the soft drinks The popularity of the soft drinks is indicated by the very fact that their consumption is very high in developed countries & the soft drinks culture popularly called cola culture is spreading rapidly in developing nations, for e.g. In just five year the consumption of soft drinks in India itself has grown from 5% The Indian soft drink industry: The companies have continued to wage their war in India. In 1993, Coke with the strategic move of buying out Parle gained a huge market share overnight. Pepsi also has spared no efforts to gain a larger market of the market. The potential in the India market is tremendous. India is a 330 million cases soft drinks market, that accounts to nearly Rs. 3000 crore. Moreover the Per-capita consumption of thirteen bottles in India is lagging way behind the US's 700 bottles Per-capita consumption. The firms are pursuing this latent demand with increased vigor.Domestic firms in India, which once enjoyed the benefits of sheltered markets, have increasingly faced competition from the global giants in the 90's. With the leading brands in the soft drink industry already in India, the country has become a part of the global market. The MNCs are using sponsorship of local and international events to market their products. They have also introduced global standards, systems and procedures to the industry. These players in the Indian soft drink market have raised the entry barriers, improved and expanded the distribution system, gobbled up or driven out the smaller players and truly globalised Industry.The events in the Indian soft drink market can be explained with reference to the global fight between Pepsi and Coke. Both have realized that the immediate priority is in expanding the market by increasing the growth. This has led to the Cola war really getting hot in India. In a bid to tap the market both the firms are busy redefining their P's. They have increased the advertising spends and roped in local celebrities. 10
  11. 11. In 1993 Coca-cola had 64% market share (all brands included) whereas Pepsi stood at 23%. But with the thrust on advertising Pepsi appeared much stronger in 1977, with a market share of 43% whereas Coca-Cola went down to 55%. Big things came later in 1998, when Coke unfolded its teen programme slowly, fist with "Eat Cricket Sleep Cricket, Drink Only Coca-Cola” and then with "Peeti Kya Coca Cola". Now with the latest punch line "Thanda Matlab Coca-Cola", Coke has acquired a new confidence and is ready for an eye-to-eye confrontation. Due to the buying of Cadbury Schweppes by Coke, the Soft drink market of India comprises now mainly of Coke and Pepsi. The present market share of Coke is 56% whereas that of Pepsi is 41%. The overall scenario of the soft drink industry leaves us to just one question and that is – "Are we about to witness the mother of all battles between Coca-Cola and Pepsi?” What we can do is wait and watch. Cola war Both Coca Cola and Pepsi companies have been selling thirst quencher for 100 years and are now global brands. Their bottles and cans move through the world's most pervasive distribution networks. Coca-cola was born 11 years before Pepsi (in 1887) and a century later still maintains the pioneering lead and Pepsi even now poses as a young upstart and like the typical number two snipes harder and harder at coke. This is one duel that just doesn't stop; there's always a new front opening up somewhere as the two march around the world staking their claim on newly opened markets. In global markets Coke's presence is older, going back to World War II when the US government set up 50 plants to ensure that the Americans got their bottles of Coke wherever in the world they were. Pepsi is a later entrant, making its first international move in Russia in 1959 during the Krushchev era. Not surprisingly, 80 per cent of Coke's operating profits are derived from international sales which, in turn, are four times larger than Pepsi'. Coke is mainly a franchisee-driven operation with the company supplying its soft drink concentrate to its bottlers around the world. Pepsi has taken the more capital intensive route of owning and running its own bottling factories alongside those of its franchisees. Such differences and similarities have played themselves out in the Indian market too. Pepsi had a four season lead over Come but, having come in before liberalization, has not given it any edge. In fact, it spent the early years fighting bureaucracy and Ramesh Chauhan every step of the way. In comparison, Coke's entry post 1991 was a breeze. Coke got the go-ahead for a 100 per cent owned operation. Coke was 11
  12. 12. able to sew up a deal with Chauhan's Parle with its 60 per cent market share and turn into market leader overnight. Besides this, Indian people were already aware of Coke as it was there in India for quite sometime till the Janata Dal government came in power in 1977. Pepsi took a position in bottling realizing that Indian bottler just didn't have the ability or vision to upgrade capacity, Coke also has woken up to this reality. But it is partnering bottlers rather than running its own plants. Thus the present study is an attempt to study 11Q2irm will always be able to sustain volume of sales even if it spends nothing on advertising. These sales to 'loyal' customers can be regarded as an independent variable of advertising. Marginal return of advertising is positive but too heavy advertising will create ill will and skepticism among the customer and thus, reduce the volume of sales. Thus, there is increasing return to advertising upto a point, beyond that point diminishing return starts to take effect. Types Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under non carbonated category. The market can also be segmented on the basis of types of products into cola products and non-cola products. Cola products account for nearly 61-62% of the total soft drinks 12
  13. 13. market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango. Close on the heels of a major health scare on finding pesticides in bottled drinking water, a non-government organisation on Tuesday claimed that the bottled soft drinks owned by two multi national companies -- PepsiCo and Coke -- also failed the same health standards testing positive for pesticides. "12 major cold drink brands sold in Delhi and around contain a deadly cocktail of pesticide residues," Centre for Science and Environment said in New Delhi. Officials of both PepsiCo and Coke declined to comment on the tests saying the two companies will be holding a joint press conference later. According to the tests conducted by the Pollution Monitoring Laboratory of CSE, all samples contained residues of four extremely toxic pesticides and insecticides: lindane, DDT, malathion and chlorpyrifos. The PML team involved in the tests was Dr H B Mathur, Dr Sapna Johnson and Avinash Kumar.Three samples each of the 12 brands purchased from markets across the city, analysed in April-August and found to contain pesticides residues are Pepsi, Mountain Dew, Diet Pepsi, Mirinda orange, Mirinda Lemon, Blue Pepsi, 7-Up, Coca Cola, Fanta, Limca, Sprite and Thumbs Up. Mathur said these pesticides included potent carcinogens which can cause cancers and reduce bone mineral density. Johnson said the basic inference drawn from the tests is that groundwater used for making soft drinks is infested with pesticides. She said PML tested the cold drink samples for 16 organochlorine pesticides, 12 organophosphorous and four synthetic pyrethroids -- all of which are commonly used in India as insecticides. CSE chief Sunita Narain said in all the samples, levels of pesticide residues far exceeded the maximum residue limit for pesticides in water used as "food", set down by the European Economic Commission. Both Pepsi and Coca Cola had almost similar concentrations of pesticide residues. In all PepsiCo brands, total pesticides on an average were 0.0180 mg/litre, 36 times higher 13
  14. 14. than the EEC limit of total pesticides at 0.0005 mg/l.In Coca Cola brands they averaged at 0.0150 mg/l, 30 times higher than the EEC limit.Mirinda Lemon topped the chart among all the tested brand samples with a total pesticide concentration of 0.0352 mg/l. Coca Cola and PepsiCo brands sold in the United States were also tested and found not to contain pesticides.Narain, however, said in India, these companies cannot be taken to court since the norms that regulate manufacturing of cold drinks here are a "meaningless maze." Need of the Study Study the impact of advertisements in term of consumer preferences, recall and purchase behavior. As we know these days Soft Drinks Companies are advertising their product so much on the televisions and they are spending so much money on the advertisement of their product. In a soft drink industry the cost of advertisement is nearly 35% of the total cost. For increasing the sale of their product they are taking film stars, cricket-stars in the advertisement of their product which is again very costly. They are spending so much on the sponsorship of events like cricket match etc. So this study deals with these aspects that whether advertisement is having any effect on the Consumers or not. In this study data will be collected with the help of the questionnaire which will be administrated personally to all the respondents. The questions will deal with the aspects like recall of advertisement of soft drinks, impact of advertisement on the purchase behavior of the soft drinks, factors influencing choice of brand and immediate reaction after watching an advertisement and also to know the influence of advertisement on preference of soft drinks, brand preference and reasons for brand preference. In some questions the techniques like ranking method is also used. 14
  15. 15. HISTORY OF SOFT DRINK Now, if you are wondering: where are the giants of world cold drink industry - the Coca Cola and Pepsi ?- well, Pepsi gained entry to India only in 1988 and as for Coca Cola here is what happened: According to one version Indian government threw the company out in 1977 and according to another version the company just walked out. Indian government wanted foreign companies to reduce their equity holdings in subsidiaries to 40%. The man widly believed responsible for all this commotion was socialist leader George Fernandes, Minister of Industries at the time in Morarji Desai headed Janata Party goverment that had recently defeated Indira Gandhi lead Congress that was suffering from public backlash for enforcing Emergency. Interestingly, these companies were booted out under FERA (Foreign Exchange Regulation Act) that was enacted by Indira Gandhi. Fernandes claimed Coca Cola was making a large profit of 10-15 million rupees annually on an initial investment of only 600,000 rupees. According to him, "[...] 90 percent of India's villages did not have safe drinking water, whereas Coke had reached every village[...]". Cola Cola showed interest in complying and restructuring but refused to part with its secret formula for coke syrup. Coca Cola pulled out/ got booted out. Another company that walked out/got kicked out was (just pre-computer revolution days) IBM. And so Campa Cola, Thums Up (ad from 80s here), Limca, Gold Spot (watch old tv ad) and many other government owned entities got to rule the soft drink roost in India. Most of these brands vanished (Campa Cola, Gold Spot ) or got adsorbed (Thums Up, Limca) when the giants returned to India in the early 1990s. Also, it was under these conditions that certain ribald jokes were doing the rounds in India, circulated through Joke Books of Khushwant Singh, jokes like: "What does Morarji Desai say when he serves the Prime Minister of Pakistan? Answer: Coffee? Tea? Or Pee? Update Contains no fruit juice or fruit pulp (Somehow it always makes fruit juice and fruit pulp seem bad): 15
  16. 16. Break Away! From The CommonPlace Sprint. Clearly Above the Ordinary! Agency: Lintas Sprint, a cold drink brand from the 80s. Notice the eStraw. You were supposed to pour the cold drink in an nice glass, open the fridgerator, take out some ice cubes, add them glass and then sip on a straw. It was quite a ritual in the 80s. It was Thums Up that put an end to the straw cult. Now some Milk drinks from 80s. Notice the eStraw. It's probably the only space were the straws still thrive for lack of a better alternative (although there have been attempts to dislodge the estaws from this space too). Pepsi vs. Coca-Cola Logo Evolution chart with a fat X from Brand New. True, no one will die and the lasting effects of this JPG mean nothing, really. But I felt a burden of duty to correct a few things. The biggest problem is that the chart puts the same logo in 1885 as it does in 2008. This is not only wrong but idiotic. Technically, the Coca- Cola logo as it exists today can not be replicated with the tools of 1887 which, by the way, is the year the script logo was introduced. Not 1885. Coca-Cola was first served in 1886 and even then, the first official logo of Coca-Cola was not the script logo. It first appeared in the Atlanta Journal Constitution in 1886 as both a slab serif and chunky sans serif — it wasn’t until mid-1887 that Frank Robinson, Coca-Cola’s bookkeeper, drew the first traces of the Spencerian script logo that we all know. First Coca-Cola logo appeared in the Atlanta Journal Constitution on Saturday May 23 1886. 16
  17. 17. The chart, for comic and poignant effect, then leaves a 120-year gap between the first and last logos. It makes for a great viral JPG, but not for telling the real story. For the first ten to twenty years you could probably find a dozen different executions of the Coca-Cola script as the logo was probably drawn over and over for different applications. It isn’t until the 1930s and 1940s that a clear interpretation of the logo appears and is used consistently. During the late 1950s and early 1960s the script logo is placed within a shape, referred to as the “fishtail” logo, which is as off-brand as anything that Coca-Cola has ever done. The chart also fails to mention the introduction of the wave, a ubiquitous visual today, that was first implemented in the 1960s when Lippincott Mercer was in charge of making the Coca-Cola identity more consistent. More than any Pepsi blunder, the chart ignores the introduction of “New Coke” in 1985 with a new formula marketing and set of logos — that completely ignored the script logo — that left a bad taste in their consumers’ mouths. Around the same time, in 1986, Landor began rolling out an even more developed brand identity that modified the wave among other subtle changes. Missing from the chart in the Coca-Cola evolution is the penchant for Coca-Cola to use the shape of its bottle as an icon, acting on and off as the logo or complementary logo or subsidized logo of the main script logo, sometimes to a confusing fault. Today’s Coca- Cola logo is, of course, amazingly similar to what it was 124 years ago but it’s not quite fair to idolize them for a flawless consistency that they haven’t actually earned. Once more, I will say that the Coca-Cola evolution is admirable and few companies probably just GE can claim to have extended their identity heritage across three centuries, but Coca-Cola isn’t perfect and as much as I despise the new Pepsi identity which in no way am I trying to defend — I believe a fair comparison is in order. So, here is the new chart. It’s not ideal, since I didn’t have a document as clean and specific as this onefor Pepsi (scroll to last page of PDF) and I had to cobble the logos from different sources. The reds are all over the place and some are in black and white. this may be of immense interest to you. Have a look at the wrapper on a Coca-Cola 1.5 liter bottle and in the ingredients label you will find phosphoric acid in it. Minute quantities of ethylene glycol are also used (which is acknowledged in the soft drink world for making it really chill). This is popularly known as anti-freeze which prevents water from freezing at 0 deg C and instead drops it by 4-5 degrees with minute quantities. This 17
  18. 18. chemical is a known slow poison in the caliber of arsenic. So, if you manage to drink about 4 liters of Coke within an hour or so, you can die. Read along and give up these dangerous things. Be natural; have flavored milks, tender coconuts, buttermilk, lassi and plain water instead of these "soft" drinks. Guess what's the pH for soft drinks, e.g. Coke? PH 3.4! This acidity is strong enough to dissolve teeth and bones! Our human body stops building bones at the age of about 3.0 Soft drinks do not have any nutrition value (in terms of vitamins & minerals). It is high in sugar content, carbonic acid, chemicals i.e. colorings etc. Some like to take cold soft drinks after each meal. Guess what's the impact? Our body needs an optimum temperature of 37 degrees Celsius for digestive enzyme functioning. The temperature of cold soft drinks is very much below 37 degrees or even close to 0 degrees Celsius. This will dilute the enzymes & stress the digestive system. The food taken will not be digested. In fact it will be fermented! The fermented food produces gases, decays and becomes toxin, gets absorbed by the intestine, circulates in the blood stream and is carried to the whole body. Hence toxin is cumulated in other parts of the body, developing into various diseases. Think before you drink coke/Pepsi (or any soft drink) again. Have you ever thought what you drink when you drink an aerated drink? You gulp down carbon dioxide, when nobody in the world would advise you to drink CO2. Two months back, there was a competition at Delhi University Who could drink the most Coke?" The winner drank 8 bottles and fainted on the spot-too much CO2 in the blood. Thereafter, the principal banned all soft drinks from the college canteen! While this might have been an extreme measure, the results do provide some food for thought. Did you know that soft drinks use chemicals in them that cause immense harm to you. Someone put a broken tooth in a bottle of Pepsi and in 10 days it DISSOLVED! Can you believe it? Teeth and bones are the only human parts that stay intact for years after death. Imagine what the drink must be doing to your soft intestines and stomach lining! 18
  19. 19. Concentrate Producer •Significant costs were for advertising, promotion, market research. •Coca-Cola and Pepsi-Cola claimed combined 74.8% of the U.S. CSD market in sales Bottlers •Bottlers purchased concentrate •Added carbonated water and high- fructose corn syrup •Bottled or canned the resulting CSD product •Delivered it to customer account 19
  20. 20. HISTORY OF COCA COLA Birth of Coca Cola Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted "Coca Cola" into the flowing le tters which has become the famous logo of today In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson. 20
  21. 21. HISTORY OF PEPSI The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage 21
  22. 22. CHAPTER:2 REVIEW OF LITERATURE 22
  23. 23. REVIEW OF LITERATURE Advertising is more than tool for selling goods and services. It has one overriding task, to position a brand in the prospect's perception or perceptual space in relation to competitors, so as to create distinctness and preference.To formulate the problem scientifically and to point out the importance of undertaking this study, it is essential to present a brief review of researches undertaking in this area. Although the review involved a large number of studies, only a few studies which have direct and indirect bearing on the present study have been reviewed in this chapter. Metwally (1980) tried to find a relationship between sales and advertising found that the firm will always be able to sustain volume of sales even if it spends nothing on advertising. These sales to 'loyal' customers can be regarded as an independent variable of advertising. Marginal return of advertising is positive but too heavy advertising will create ill will and skepticism among the customer and thus, reduce the volume of sales. Thus, there is increasing return to advertising upto a point, beyond that point diminishing return starts to take effect. Raj (1982) presented the methodology that enables us to assess brands current strengths and to gauge the market response to increased advertising. He concluded that the advertising did contribute to the brands attractive and retentive strengths throughout the duration of the campaign.investigated the different advertising effect on purchase behavior of consumers of high loyalty increase brand and product purchase when advertising for that brand increases. Little switching occurs from competitive brands into the advertised brand. Effect of increased advertising carry over a few months after advertising is lowered back to normal levels. Petty (1983) stressed the role of involvement in advertisement effectiveness. He observed that undergraduates expressed their attitudes about a product after being exposed to a magazine advertisement under conditions of either high or low product involvement. The advertisement contained either strong or weak arguments for the products and featured either prominent sports celebrities or average citizens as endorsers. The manipulation of argument quality had a greater impact on attitudes under high than low involvement, but manipulation of endorser had greater impact under low than high involvement. These findings were consistent with the view that there are two relatively distinct routes to persuasion. 23
  24. 24. Singla (1984) found that there exists a desire among the executives as well as customers to improve the advertising campaigns in order to make them more sales effective. The researcher asked executives of various private as well as public sector undertaking having involvement with the marking management to give their views about advertisement effectiveness. The following list of attributes was found to be significant in making ad campaigns effective:- (i) Noticeability (vi) Believability (ii) Comprehension (vii) Affective Impact (iii) New Criterion (viii) Uniqueness of advertisement (iv) Interest Value (ix) Sociability (v) Memo ability (x) Imagination stimulus. Part and Young (1986) in their work 'Consumer response to TV commercials: The impact of involvement and background music on brand attitude formation', suggest that a commercial containing music, affects brand attitude more as compared to the one which contains no music. This difference is expected because in addition to the visual part, the music of a commercial should act as another persuasion. Also, the effect of music on one's brand like ability and behavioral intentions, are expected to depend on the type and levels of involvement. 24
  25. 25. Kamins (1989) supports the fact that for the enhancement of brand appeal through celebrity appeal works. In these ads renowned personalities are used to encourage and reassure the prospective customers. The ads using celebrity appeal had more brand appeal enhancing effect than the non-celebrity appeals.in the article, 'Are advertisements a waste', remarked that advertisement is one of the least important determinants of purchase behavior. The TV commercial albeit being the most popular form of advertising, have little impact on the purchase behavior of the consumers. He concluded the TV commercials were the least effective means. for changing the preferences of consumers, as compared to other promotional techniques such as coupons, print advertisements and price offs. Politz (1990) found that purpose of campaign most often is to build an impression of product and service to generate sales, suggesting that campaign must not only create awareness, but also should be persuasive. A creative approach combined with persuasive message highlighting uniqueness of the advertised product often enables the advertiser to hold a long distance with the shopper when the advertisement is heard or seen, thereby enhancing its effect on the buyer at the time of purchase. Biel and Bridgwater (1990) found that commercial liking of a campaign went far beyond the mere campaign. The more relevant and meaningful commercial felt by people, the more successful was the campaign. The study further found that minor involvement and perceived relevance are factors linking commercial liking to persuasion in first case. Secondly, the novel approach, originality seems to have little to do with how a commercial will be liked. Further liking was a function of product category at least to the extent that food and beverage commercial were better liked than other categories. Schreiber and Appeal (1990/91) argued that researchers have been using surrogates for sales as a measure of evaluating the effectiveness of advertising. The use of surrogate measure necessarily implies a relationship between surrogate measure and sales which can be described in mathematical form as a curve of some sort. Here the implicit assumption is that relationship between surrogate measures instead of sales is not with faults. 25
  26. 26. Unnava and Brunkrant (1991) did a study whose main objective was to compare the effects of varied versus same executions of advertisements on brand name memory when the number of exposure to ads is held constant. They found out that varied ad executions enhance memory for brand name over repeated same ad executions. In varied ad executions learning was superior to learning when executions remained the same. Singh and Cole (1993) did a laboratory experiment in which they compared the effectiveness of 15 second TV commercial with 30 second TV commercial by using novel commercials. With different message appeals (informational v/s emotional) exposing subjects multiple times and employing multiple dependent variables. They found out that informational 15s are as effective as information; 30s in general situations. They also round out that emotional: 30s are superior to emotional 15s in influencing a viewer's learning of brand name and attitude. The results suggest that the length per second effects brand name recall for emotional commercials but frequency of brand mentions, not length, effect brand name recall for information commercials. 26
  27. 27. Brown and Rothschild (1993) conducted a study whose primary objective was to investigate the degree is which consumer memory for brands is effected by increasing level of advertising clutter. The findings suggest that, at the current level of advertising clutter on TV, it may be that neither recognition nor recall of brands is affected to any great by significant increase in advertising clutter. Irani (1994) in an article titled 'Cashing in on the quiz craze' has written that many companies like Hindustan Levers Limited are entering into naming contracts for programmes that can draw associations with the product in consumers mind. If the brand is successful in establishing its identity with a certain programme or quiz, the recall potential for the brand can be very high e.g. Philips Top 10, Bournvita Quiz, Close-up Antakshari etc. Menon (1994) in an article titled 'The comparative advantage has written that comparative advertising, which directly or indirectly compares a product with a competitors to show the advertised product's advantage has been prevalent in the industry for many year. But in the exiting scenario, where new brands in parallel category are springing up at a rapid rate this kind of advertising is gaining momentum. Most prominent among these have been, Pepsi and Captain Cook Company's. Although comparative advertising is not prohibited in our country, it has been severely stymied by stringent rules set by DD. With the satellite channels coming in, this may not be a hindrance any longer. Even governing bodies like Advertising Standards Council of India (ASCI) may not be in a position to check the tide. With the products categories getting overcrowded and players fighting for respectable market shares, we are bound to see more comparative stances being taken. Burnett (1995) conducted a research to identify 200 most awarded commercials and their association with success market place. It was pointed out that 86% or 172 commercials were successful. Within these 117 achieved increases in sales volume, market share and other 55 were successful in image enhancement. 27
  28. 28. Padamsee (1995) in an article titled "Rising above the clutter" has written that because of the incredible noise level in today's media, print and electronic, advertising needs more that just to be persuasive. It needs to be noticeable. A great ad is no longer one that tells you a lot about a product rationally and emotionally. A great ad has to first and foremost attract your attention. Moreover advertisers have realised that along with the information customer also wants brand personality. So advertising should project not only the attribute and unique selling points but an image that the customer can react to. Zaidi and Jayaram (1996) reported the findings of a survey by Marketing and Research Group in September 1995 for the Delhi based Advertising and Marketing magazine, A and M. The results reflected apparent failure of the marketing strategies. Pepsi ranked 7th, while Coca Cola came in 13th on the survey results of the country's best marketing companies. Italia (1997) critically evaluates the findings of a survey done by Samsika Marketing Consultants on the soft drink market. The findings show that Pepsi is the most aggressive cola marketer in India and is the most widely available drink all over Mumbai. The sample size of the survey was 516 outlets in Mumbai and New Mumbai. The results (viz. Availability, visibility and finally market share) reveal that Pepsi has a good visibility in 76 per cent of the available outlets and is available in 94 per cent of the retail outlets, while commanding a market share of 16 per cent. Thums-Up attracts a market share of 15 per cent, achieving this with availability in 92 per cent of the outlets and a 'good' visibility in 71 per cent of the available outlets. Coke too has recorded a market share of 12 per cent with an availability quotient in 90 per cent of the outlets and a comparatively 'good' visibility in 56 per cent of the available outlets. The review of above literature indicates that despite a wealth of research studies available on the important subject of advertising, a research gap appears to exist in the area of advertising and their effectiveness in terms of consumer preference, recall and purchase behaviour. In India the advertisements of soft drinks especially Coke and Pepsi have been drawing the attention of researchers time and again. A lot of heat has been generated in the part so far as the advertisements of Coke and Pepsi are concerned. It is high time that the various implications and effectiveness of these advertisements are studied in greater details. 28
  29. 29. Jaydev Raja (1993-1995) bought Ramesh Chauhan-owned Parle's top brands and gave Coke a 60% market share over right, But then he lost the plot-the cast cow Thumps Up was almost mothballed, Chauhan was antagonized, and the bottlers were alienated. Coke was not used to selling two cola brands in the one market, and it showed. When it came, the Coke launch in India was low-key, tapping into a quiet north Indian market near Agra. Coke says he set up the company, pushed approvals through the government and bought to a giant market share. But when Coke finally pulled him out, Raja had frittered away the flying start he himself gave Coke. Richard Nicholas (1995-1996) came to India up Coke's key institutional accounts, such as McDonald's. But even as he sealed the big bulk deals, the consumer market seemed to slip slowly away from coke. The brand focus slipped: Pepsi scored a huge triumph at the Wills World Cup 1996 with its "Nothing Officials About it" campaign even as the sporty Thumps Up was missing. Buttlers were antagonized by Coke's demand that they enter into joint ventures or sell out. They reached strongly-some, such as Pin Akin Shah of Ahmedabad, even crossed over to Pepsi. Thumps Up, in spite of low advertisement spend, continued to be ahead of Coke in the market price. Mr. Nice Guy (1997-1999) turned out to be too nice. While Donald Short managed to consolidate infrastructure, he built up a huge team, most of who are leaving at the end of his tenure. His purchase of 51 bottling plants came at a great cost: the $7000 million acquisitions bill will keep Coke in the red for nearly tow decades. Right now, Coke will have to work out what to do with the massive 6,000 - strong work face that has come with the creaky, technological backward bottling network. Short gave Coke in India a "nice" face, both to bottlers and employees. But as he leaves for his next post, a general upheaval in Coke's ranks tells a slightly different story. Kotler & Armstrong, 1989,Big firms often develop and introduce new products. Nestle, is an example of a company that produced a brand of packaged food that failed repeatedly when marketed and advertised. After several attempts the Nestle Company finally decided to sell there new product with a different marketing technique. Nestle waited to sell their product again until the fad was to eat healthy, low fat foods. And then stressed the health benefits in their advertising campaign. Immediately the company began selling their new product. This product is now called Stouffer's Lean Cuisine 29
  30. 30. An advertising campaign's main goal is to sell a product, however every company has different ways of doing this. All advertising campaigns have many different advertisements that all stress an identical major appeal or theme. And they are shown in many types of media during a specific time period. In simplification there are six distinct phases, if not more, that are characteristic of a campaign. They are: 1. Picking the strategy for marketing 2. Choosing the main theme or appeal 3. Interpreting the theme into the media of various types 4. Making the advertisements 5. Purchasing the time and space 6. Evaluating and executing the campaign. A new product's campaign also has deal with the six phases of marketing. The advertising campaign is considered successful if it defines its advertising objectives, planned better, creative, and more beneficial to consumers. An increasing important role in advertising new and old products is using a creative strategy. Advertisers should evaluate appeal messages used. Products should mean something to the consumers, advertisers help give products their meaning by pointing out the desirable or meaningful benefits to them. It is necessary for products to be distinctive by telling how the product is better than other brands, competing with the same product. This can be done by using messages with believable appeals. The impact of a message depends on what is said and how it is said Schick is an example of a product with an award winning ad. It was well received by the audience because the headline, copy work and illustration were tied closely together to give the message meaning. This successful advertising campaign printed ads that were bold face at the top and said "Never a Dull Moment." Under the bold face print was a big picture of a razor, and in the corner information was given about the product that says; Schick blades don't get dull before their time. So you can get close, clean comfortable shaves- shave after shave. Try the convenient Shick plus disposable razor. Or Ultrex Plus cartridges, both with a lubricating `comfort' strip.. In advertising, attention- getting and memorable words need to be used. Such as "7-UP's" ad "the Uncola." And if the advertisement is a print ad it needs to be powerful enough to draw attention to the reader. It must be the first thing the reader notices 30
  31. 31. It is important for the reader (consumer) to understand that a product is something that can be marketed for acquisition, attention, or use that could fulfill a desire or need, when studying advertisements and their content. Services, physical objects, people, and places also fit into this definition. A new product serves these purposes either by replacing old products or creating products like other brands. Sometimes a company buys a whole patent, license, or company to produce a product that it did not develop. And other times a company is formed with the intent to manufacture and sell a new product. IBM is an example of such a company IBM saw that customers wanted services such as, instructions, guarantees, and programming services. The marketer used this knowledge to advertise what they felt the consumers wanted Nowlis & Simonson, 1996,The most common methods for companies to increase sales is introducing new or enhancing features to consumers. An example of this is Minolta's automatic focus on its camera system. The only determinant of sales impact is not feature itself. There are other factors that are related to the context of competition. Social environment and the strategy used in marketing all influence innovations. And these innovations may influence the brand choice of new products and features that companies want to make and that consumers desire Mackenzie & Olshavsky, 1995,Consumer satisfaction's dominant model forgets to account for not only the needs of consumers, but their desires as well. Research has mainly focused on a consumer's expectation of a product, rather than what he/she desires from the product. MacKenzie and Olshavsky constructed a model about consumer satisfaction, and they believe that a person's feeling of satisfaction comes from a person's desires, which the concept of marketing predicts. Their model tries to untangle the important roles of desire and expectations. Benefits desired by consumers and the judgment and choice models that already exist are the foundation for benefit segmentation. These models show how buyers use desires, also called choice criteria, to evaluate and choose products. MacKenzie and Olshavsky's model also examines the overall impact of information satisfaction with feelings of satisfaction as a whole. This is important because advertisers give this information about their products, which has an influence on the expectations of consumers; even if the consumer is falsely lead to believe something about a product . 31
  32. 32. Grunet, 1996,Sometimes consumers are falsy lead to believe something about a product because of their advertising effects. Grunet studied advertising effects and analyzed them by using information processing cognitive models. The processing of information was equated largely with measurement and processes of conscious thought controlled by verbal methods. Grunet researched the role of cognitive psychology and how it affected advertising. He was concerned with two kinds of cognitive processes: strategic and automatic processes. Automatic processes do not have capacity limitations and a cognitive response is activated by a specific cognitive input. They are also unconscious. Cognitive processes that are strategic can have capacity limitations and adapt readily to certain situations. This is a conscious process. Advertising effects most commonly due to cognitive tasks are: perception, learning, attention, information use, and retrieval . Clancy & Shulman, 1993,For many advertisements retrieval or remembering a message is a main concern. More advertising messages are likely to be forgotten than remembered. Therefore the advertiser's aim is for the audience toremember the advertisement. Effective advertising is not that hard to produce, at least in theory. The problem is if a message is motivating, has an unforgettable execution, and it has the right exposure, it still can mean different things to different people. Kent & Allen, 1994, In some cases a memorable advertising campaign is also another effective way to get people to buy and remember certain brands and products. Studies were done on the familiarity with brands and the memory of seeing advertisements, by using familiar and unfamiliar brands. Print ads were created with the brand name, information, and product class featured in the headlines, without using pictures. Surveys were given to undergraduate students. The responses for remembering the products in the experiment with familiar and unfamiliar ads were about the same, in other words the respondents thought they remembered an ad that they really did not see before. This study supported the theory that competitive interference has considerable effects on the memory of consumers when seeing ads for unfamiliar ads or new products. There seemed to be no affect on products that already have been established in the market for a long period of time. This could be one reason for a new product's failure; literature suggests that the failure rate can be lessened by avoiding advertising next to a product of the same category. The results of these studies show that it is hard for consumers to remember information about new brands in categories that are advertised heavily. The best way to advertise new products is to avoid the media in which there is competition for similar products of similar brands 32
  33. 33. Kopalle & Lehmann, 1995,Knowledge about a brand consists of brand image and brand awareness. A brand name's desirability can be judged by its easy retrieval, or in other words its easy access from memory, and to which extent the name makes a products strategic positioning better. Studies have been done on foreign named brands and their effects. Researchers have found that stereotypes tend to influence people's perceptions and evaluations of behaviors. Stereotypes are powerful; for example, consider the French culture and the associations that can be made about its elegance, refined taste, sophistication, etc. Researchers studied French brands and the ways, in which people (consumers) perceive products, that are consistent and inconsistent, with the information of that France evokes. The study found the effects of brands named and spelled in a foreign language does in fact influence the perceptions of consumers. Marketing managers made decisions about sixteen thousand new products were introduces to drug stores and grocery stores in 1992. In order to find out about a product's quality it had to be used, the consumer demand initially would rely on the expectations of the consumer, basically beliefs about the quality of a product were purchased. It was found that consumers compared new information with past information, and based on this they formed future expectations. Expectations about a new product's quality are built and changed over time. "...satisfaction is a function of the difference between experiences and expectations." Kotler & Armstrong, 1989In order to know what audience wants in a product or who mainly buys the product, target research has to be done. A target researcher helps in an advertising campaign by giving key information about what to be used in the advertising. Advertising is specifically aimed at a target audience, a certain segment of the population for whom the service or product has an interest .When choosing a target audience a lot of research has to be done, this is often called positioning. Positioning has several interpretations. However, it most commonly means fitting a service or product to at least one portion of the large market. It is done in a certain way that sets it apart from competition without changing the product Many companies have not positioned their products correctly or they have launched unsuccessful products for many reasons. For example, a favorite idea might be pushed by a chief executive, even when the findings of marketing research are poor. Sometimes the market size has not been correctly estimated, or the product design is not up to par. And some new products have not had good advertising 33
  34. 34. A study done of seven hundred industrial and consumers firms found the success rate for new products, overall to be sixty-five percent. Estimates by another source have found that eighty percent of the total new products that enter the market fail. Although many new products fail some are very successful, and many are successful due to their advertising campaign and the messages advertised . Clancy and Shulman did a survey recently, on how difficult it is to launch a new product to the market. They asked one thousand firms questions, and two thirds of the firms said that it was a lot more difficult to launch products into the market. They asked people to respond to questions expressing their attitudes towards different statements of advertisement. Respondents said that they no longer believe: 1. Good advertising sells products. 2. Advertising is a step by step process. 3. The finest product wins the largest share of the market. 4. Advertising is the tool that is the most effective in the business of marketing. 5. A product has to have mass appeal in order to be successful. 6. Most products are sold because of lower pricing. 7. Advertising research is realized important by most researchers. Clancy & Shulman, 1993,Several categories of product, after analysis, show that brands ranked lower than previous years, showing a low response rate to sales. The message strategy is important, especially in establishing new products to the market.A successful strategy, for marketing and advertising, is using brands to become affiliated with a portfolio of various products. The reputation of brands is becoming one of firms’ most valuable resources. This explains why companies are expanding their brands into several various product categories. Dacin & Smith, 1994,An example is the Panasonic brand, which can be associated with bicycles, electronics, and small appliances for the home. Many authors have brought up the concern of extending products into different categories, may weaken the brand. However not enough research has been to determine the characteristics of a brands strength. There has been a considerable impact on brand extensions that is positive. And many firms are developing specific plans to extend their brands, weighing the risk of weakening the brand versus selling more products. 34
  35. 35. Clancy & Shulman, 1993,In 1990 a study was conducted by Clancy and Shulman that found approximately the same amount of people that liked advertising as do the ones that do not. Only about twenty-five percent of the people studied view the commercial when it is shown. Often television watchers do something else like switch channels, give attention to something else, or exit the room. People respond in different ways to different commercials. For example advertisements for soft drinks are watched more than other types of ads, for example ones for insurance. This is an indication that people watch the soft drink commercials like "Up" because they are more engaging . Another study shows that only about eleven percent read a magazine's advertisements. Another eleven percent says that they never read the ads and flip to the next page. This shows that either these ads were not aimed at the correct target audience, or if people are not in the right target audience they will screen out the advertisements. Therefore, not enough research is done on who reads certain types of magazines. This may be the same reason people tune out television commercials, because not enough research is done on who is watching certain shows. Thus their placement of advertisements may be wrongly suited for the segment of audience watching a particular show. A lot of research is done on advertisement, but there is still a lack of knowledge on how it affects our choices for buying certain products. Not enough studies have been done on what consumers like about an advertisements products that could motivate consumers to purchase them. Research shows there are many factors that contribute to a products success or failure, and advertising is one of them. Brands and memorable campaigns also seem to be a factor in the success of advertising campaigns. Know one seems to really know how effective advertising is for the buying behaviour. This leads to the Research Question. So this research study Deal with these aspects that whether advertisement is having any effect on the Consumers or not, to see whether people are influencing by advertisement or not and also to know the role of advertisement in buying behaviour. And finally the need of this study is to check the effect of advertisement on the buying behavior of consumers with special reference to soft drinks. 35
  36. 36. CHAPTER:3 RESEARCH METHODOLGY 36
  37. 37. Research Methodology The tool for data collection Data collection is a basic step and of vital importance. On which success or failure of the study depends. All researchers can tap into two sources of data. 1. Primary Data 2. Secondary Data The primary data was collected by a survey based on the questionnaire. The questions were listed in a pre arranged order and the object of enquiry was reveled to the respondents. .The questionnaire was aimed at finding out the • Impact of advertisement of Coke and Pepsi in terms of consumer preference purchase behaviour. • The questionnaire deal with aspects like recall-ability of advertisement of Coke and Pepsi, impact of advertisement on purchase behaviour of soft drinks, viz. factors influencing choice of a brand immediate reaction on seeing an advertisement influence of advertisement on preference and purchase of a soft drink, brand preference and reasons for brand preference etc. • Unaided recalls (What commercials or advertisements do you remember seeing?”) 37
  38. 38. • Aided recall tests (The respondents are prompted by being shown a particular advertisement and then asked to remember their previous exposure to it. Verbal aids are also used to prompt recall) were used to study the recall-ability of advertisement of Coke and Pepsi. For aided tests various clues were given for e.g. Slogans and name of the model and the respondents were asked to identify the soft drink brand associated with them. In some questions the techniques like ranking method was also used. The secondary data was collected from various sources like ---web sites of different soft drink companies --- Articles and books on soft drink industry etc. • Sampling plan Universe The universe included all the consumers of soft drinks who are exposed to TV advertisement Population The population included all the consumers of soft drinks who are exposed to advertisement in TV purposively selected from Ludhiana city. Sample unit Single individual consumer of soft drinks who is exposed to advertisement in TV. Sample size was taken to be 50. Keeping in view the time and resources constant, the total sample size was taken to be 50. In such a way that equal number of male and female respondents is selected and almost equal representation is provided across both the age group 15- 25 years. Details are given below. In the age group 15-25 years almost all the respondents were students of MATA GUJRI COLLEGE and near places Fatehgarh Sahib. Sampling technique The selections of the respondents were done on the basis of stratified convenient sampling. It was decided to include in the sample the consumers representing different categories of age group and sex. For this purpose the stratification of consumers was done on the basis of two attributes age and sex. Respondents have 38
  39. 39. been categorized age wise i.e. 15-25 yrs, and above 25 yrs, and sex wise viz, male and female. This classification of consumer resulted in the following four strata: (a) Male respondents in the age group 15-25 years. (b) Female respondents in the age group 15-25 years Frequency distribution of sample with respect to age group and sex: Age group (in yrs) Male Female Total 15-25 25 25 50 Total 25 25 50 LIMITATIONS OF THE STUDY 1. The sample size in relation to total size of population is small. 2. The results are based on data collected in one city. 3. Being an opinion survey, the personal biases of the respondent might have entered into their responses. 4. Information derived especially by recall tests may not have been processed by the respondent from TV only but also from other sources like hoarding, word of mouth and other promotional efforts like picture of model on the soft drink paper cups etc. 5. The study was mainly an individual study, so all the limitations of such study like limitation of time, finance, coverage were faced. 39
  40. 40. Objective of study 1. To find the effectiveness of the advertisement. 2. To find out the factors influencing the choice of brand. 3. To know consumers preference towards the soft drinks . 4. To know the reasons for the preference of their favourite soft drinks. 5. To check the brand loyalty of consumers towards their favourite brand. The main purpose of this consumer survey is to see the recall ability of the consumers and also to see the factors affecting the choice of brand and an impact of advertisement on the purchase of soft drink. 40
  41. 41. CHAPTER:4 DATA ANALYSIS & INTERPRETATION 41
  42. 42. ANALYSIS AND INTERPRETATION This chapter deals with the results and the discussions of the research work. In this we will analyze the results and discussion of the survey, which is collected with the help of questionnaire. Recall of the Soft Drink Advertisements (1) Unaided Recall of Coke and Pepsi Advertisement Advertisement Total (N=100) COKE 1. Thanda matlab 91% 2. Chhota matlab panch 96% 3. Jo chaho ho jaye 91% 4. Coke utha le dhoom macha le 67% 5. Jashn Mana Le 75% PEPSI 1. Yeh payas hai badi 91% 2. Yeh dil maange more 97% 3 Sachin ala re 63% 4 Ye hai youngistan meri jaan 95% 5.My can 66% Table no:1(Unaided Recall of Coke and Pepsi Advertisement) Analysis of Coke 42
  43. 43. Graph no:1(a) (Unaided Recall of Coke and Pepsi Advertisement) Analysis of Pepsi Graph1(b)( Unaided Recall of Coke and Pepsi Advertisement) Analysis & Interpretation In the above table it is clear that the maximum recall is of the Pepsi advertisement which is 97% & that advertisement is “yeh dil maange more”,and“my can” has the minimum recall which is 66%. And in case of Coke the maximum recall is of the “chotta matlab panch” advertisement, which is having 96% recalls. While the advertisement “Coke utha le dhoom macha le” has the minimum recall. For deep analysis this data is also analyzed on the basis of sex & age parameters. 43
  44. 44. (2) Aided Recall Test With Respect To Models: Models Total (N=100) COKE 1. Aishwarya Rai 97% 2. Aamir khan 100% 3. Akshay Kumar 95% 4. Sania Mirza 91% PEPSI 1. Amitabh Bachhan 98% 2. Shahrukh Khan 99% 3. Sachin Tendulkar 95% 4. Yuvraj Singh 95% Table no:2(Aided Recall Test With Respect To Models) Analysis of coke 44
  45. 45. Graph no:2(a)( Aided Recall Test With Respect To Models) Analysis of pepsi Graph no:2(b)( Aided Recall Test With Respect To Models) INTERPRETATION & ANALYSIS In the aided recall test with respect to models the Coke is dominating over Pepsi by having 100% recalls for “Aamir Khan” followed by “Aishwarya Rai” which is having recall of 97% and “Akshay Kumar” is also having recall of 95% and “ 45
  46. 46. Sania Mirza” is having least recall of 91% in case of Coke. In case of Pepsi “Shahrukh Khan” is among the highest with 99% recalls followed by “Amitabh Bachhan” which is having recall of 98%. And “Sachin Tendulkar” and “Yuvraj Singh” are having equal recall of 95%. This data is also analyzed in the two different parameters of sex & age. In that case the data is analyzed in the two sex group i.e. males & females & after that the two age group i.e. 15-25years & above 25years.This analysis is given below. (4) Recall Test With Respect To Colour : Recall Test With Respect To Colour: BRAND Total (N=100) 1. COKE 99% 2. PEPSI 93% Table no:4(Recall Test With Respect To Colour) 46
  47. 47. Graph no:4 Note: The total number of respondent is 100 so the number itself is %. In the recall test with respect to colour the Coke is again dominating here with 99% of the recalls & Pepsi is also having a good recall of 93%. This data is also analyzed in the two different parameters of sex & age. In that case the data is analyzed in the two sex group i.e. males & females & after that the two age group i.e. 15-25years & above 25 years. This analysis is given below. (5) Factor Influencing Choice of Brand: . FACTORS Value 1. Taste 2. Easy availability 319 3. Brand name 305 4. Word of Mouth 281 5. Advertisement 265 Table no:5 (Factor Influencing Choice of Brand) 47
  48. 48. Graph no:5(Factor Influencing Choice of Brand) ANALYSIS & INTERPRETATION In the above table it is shown that the most influencing factor in case of choice of brand is Taste, followed by Easy availability & Brand name. This data is also analyzed in the two different parameters of sex & age. In that case the data is analyzed in the two sex group i.e. males & females & after that the two age groups i.e. 15-25years & above 25 years. This analysis is given below. (6) Immediate Reaction After Watching An Advertisement: REACTION Total (N=100) 1. Urge to have that soft drink 25% 2. Urge to have any soft drink 16% 3. Urge to have favourite soft drink 39% 4. Drinking one within a reasonable time 20% Table no:6 Immediate Reaction After Watching an Advertisement: 48
  49. 49. Graph no:6 Immediate Reaction After Watching an Advertisement: ANALYSIS & INTERPRETATION In the above table the data regarding the immediate reaction of the consumer after watching advertisement is showing that 39% of the people are saying that they feel urge for the favourite soft drink & 25% are saying that they feel urge for the that soft drink. 20% said they will drink one within a reasonable time and 16% said that they will have any soft drink. Further it is analyzed on the basis of age & sex for better insight. (7) Influence Of The Advertisement On The Consumer Preference And Purchase Behaviour: STATEMENT Total (N=100) 1. Liking the advertisements does not necessarily mean that I like that brand also. 50% 2. A good advertisement can change my preference for soft drinks. 11% 3. I buy those soft drinks whose TV advertisements are frequent. 19% 4. Basically all cola drinks have the same taste. 20% Table no:7 (Influence of the Advertisement on the Consumer Preference and Purchase Behaviour) 49
  50. 50. Graph no:7((Influence of the Advertisement on the Consumer Preference and Purchase Behaviour) ANALSIS & INTERPRETATION In the above table it is clear that maximum of the people i.e. 50% are saying that liking advertisement does not mean we like that brand also. And very few i.e. 11% are saying that a good advertisement can change their preference for the soft drink. 19% of them said that they purchase those soft drinks whose T.V. commercials are frequent. And 20% said that all Cola drinks have same taste. (8) Consumer Preference Of Soft Drinks: COLA DRINK Total (N=100) 1. Coke 53% 2. Pepsi 38% 3. Other 9% Table no:8(Classification of Most Favorite Cola Drink) 50
  51. 51. Graph no:8((Classification of Most Favorite Cola Drink) ANALYSIS & INTERPRETATION In the above table it is clear that the Coke is dominating as a most favorite cola drink with 53% & Pepsi is having 38%, which is second in this. So this data is showing that Coca-Cola is more favourite brand. (9) Reasons For Preference Of Cola Drinks : REASONS Total (N=100) 1. Taste 96% 2. Word of mouth 4% 3. Brand name --- 4. Easy Availability --- 5. Advertisement --- Table no:9 Reasons for Preference of Coke 51
  52. 52. Graph no:9 Reasons for Preference of Coke: ANALYSIS & INTERPRETATION In the above table it is clear that those persons who like coke, 96% out of those like it because of its taste & 4% just because of word of mouth. (10) Reaction Of Consumer On Non-Availability Of Favourite Cola Drink: REACTION Total (N=100) 1. Will go to another outlet 17% 2. Will buy other cola drink 56% 3. Will buy non cola drink 15% 4. Will buy any other drink 12% TABLE NO:10 Reaction of Consumer on Non Availability of Cola Drink: 52
  53. 53. GRAPH NO:10 Reaction of Consumer on Non Availability of Cola Drink: ANALYSIS & INTERPRETATION In the above table it is clearly shown that 56% of the persons will buy other cola drink because of the non availability of their favourite soft drink. And 17% will go to another outlet, 15% will buy non-Cola drink and 12% will buy any other drink. So it shows that the respondents are not loyal towards their favourite brand of soft drink. 53
  54. 54. CHAPTER:5 FINDINGS & CONCLUSION 54
  55. 55. FINDINGS AND CONCLUSION:  It has been concluded that advertisement is very effective as far as recall of the advertisement is concern and it is very effective way to create the awareness of the product.  Advertisement has a good impact on the consumer but their reaction is not positive for that brand whose advertisement they are watching as maximum of the people are saying that they feel urge to have their favourite soft drink and not that soft drink whose advertisement they are watching.  Advertisement is not playing the effective role in changing consumer preference for the selection of soft drink brand and is looking less effective on purchase behaviour of the consumers.  The most influencing factor taste is followed by easy availability & brand name. And the least value is given to advertisement as the factor that influences the choice of soft drink brand.  It has been concluded that Coke is among the most favourite brand of consumers followed by Pepsi. So Coke is highly preferred brand of soft drinks for the consumers.  The consumers who like Coke maximum of them are saying that they just like Coke because of taste & remaining are saying because of word of mouth. And no one is saying advertisement is the reason for preference of Coke. And in case of Pepsi, too, taste is one the most important reason followed by word of mouth & brand name. So the advertisement is not a reason for the preference of their favourite soft drink in any of cases.  The survey shows that consumers are not showing loyalty for their favourite soft drink brands. As maximum of the respondents are saying that they will buy other cola drink because of non availability of their favourite cola drink. And very few are saying that they will go to another shop to have their favourite soft drink brand. So it shows that people are not loyal towards their favourite brand. o, from the whole study we can conclude that advertisement is very effective as far as recall of the advertisement is concern and it is very effective way to create the awareness of the product. And it can be very useful in selling during the initial stages when product is new. But on the later stages there are many other factors that come in to play for selection of soft drink brands. These factors are like taste, word of mouth etc. so 55
  56. 56. the company must stress upon these factors because in the initial stages when product is new at that time with the help of advertisement etc company can convince the people to purchase their product once but if the products are not good with respect to quality and also due to uneasy availability of their product then company will be thrown out of the market and it will be hard for the company to compete in the market in today’s scenario 56
  57. 57. SUMMARY: This survey basically deals with purpose to know advertisement effectiveness regarding soft drinks. For this consumer survey was conducted. The population included in the survey was selected from Ludhiana city; it is further stratified on the basis of two attributes age and sex. Two age group 15-25 years & above 25years. And the two categories of sexes, male and female were taken. The sample size was restricted 100. The technique was followed in such a way the equal number of male and female respondent were selected and almost equal representation is provided to different age group. The information is collected from the respondent by the means questionnaire, which was further analyzed to elucidate the objective of this study. The summary is given below:- For finding the effectiveness of advertisement the first parameter taken is the recall of the soft drink advertisement which was analyzed on the basis of punch lines, models & color. And also two type of test were there for recall i.e. aided & unaided recall.  In the unaided recall of the advertisement the most recall advertisement is the "Chhota matlab panch" which is 100% in case of male & 92% in case of female. And in Pepsi the most recall advertisement is "Yeh dil maange more” with percentage of 98% in case of male & 96% in case of female. So in the unaided recall of the advertisement there is not much difference between male & female as far recall of advertisement is concern.  And same is the case in the age group also. In the aided recall of the soft drink advertisement the Coke’s advertisement of "Jiyo Thanda and Piyo Thanda” is among the highest. But in case of Pepsi, the advertisements having highest percentage are "Yeh pyas hai badi” and "Yeh Dil Mange More".  The next recall was with respect to the models and in this Aamir Khan, Akshay Kumar and Aishwarya Rai were recalled by maximum number of people and in the Pepsi three models Shahrukh Khan, Amitabh Bachan and Yuvraj Singh were recalled by maximum number of people. And recalling with respect to colour the Coke is dominating with the 98% and Pepsi is just behind coke with having almost 96% in both the parameters of sex & age. This objective was concern to know that what kind of urge people feel when they watch the advertisement. And 40% of the males and 38% percent of the females are saying that after watching advertisement they urge to have their favourite soft drink and not that soft drink whose advertisement they are watching. And in the two different age group of 15- 57
  58. 58. 25years & Above25years the maximum of the people are giving the same response as given by the male & female. The 56% of the males & 44% of the females are saying that liking the advertisement of a soft drink brand does not mean that they like that brand also. And in the age wise analysis, 50% in both the age groups are giving the same response. And very few are saying almost 8-14% that a good advertisement can change their preference for the soft drink brand. Respondents were asked to rank the given factors that influence their choice of soft drink brand. In case of male the maximum value is given to easy availability & brand name. And in case of female, taste is having the maximum value & almost same is the result age- wise also. The most influencing factor is taste followed by easy availability & brand name. And the least value is given to advertisement as the factor that influences the choice of soft drink brand. In sex-wise analysis 56% of male & 50% of female like Coke whereas 36% of male and 40% female like Pepsi. And the remaining 8% of male & 10% of female like other brands of soft drinks. In the age-wise analysis again the Coke is leader followed by Pepsi. The consumers who like Coke 96% of them are saying that they just like Coke because of taste & remaining 4% are saying because of word of mouth. And no one is saying advertisement is the reason for preference of Coke. And in case of Pepsi, too, 74% of respondents are saying that they like pepsi because of taste,10% because of word of mouth and 16% are going for brand name. The survey shows that consumers are not showing loyalty for their favourite soft drink brands. As 56% of the respondents are saying that they will buy other cola drink because of non availability of their favourite cola drink. And very few (17%) are saying that they will go to another shop to have their favourite soft drink brand. So it shows that people are not loyal towards their favourite brand. 58
  59. 59. BIBLIOGRAPHY 59
  60. 60. Bibliography  A.L., Biel and Bridgwater; C.A. 1990. Attributes of a Likeable T.V. Commercial, Journal of Advertising Research 30(3):32-38.  Brown, T.J. and Rothschild, M.L. 1993.Reassessing the Impact of T.V. Advertising Clutter, Journal of Consumer Research, 20(6): 138-46.  Burnett, L. 1995.It does too- A Company Survey. A & M, January 15: 57- 60.  Karmali, M.A. 1989.Celebrity and Non-Celebrity Advertising in Two Sided Context, Journal of Advertising Research.29 (3):34-42.  Menon, R. 1994.The Comparative Advantage. Brand Equity, Journal of Advertising Research.20 (5):59-64.  Padamsee, A .1995.Rising Above the Clutter. Brand Equity Annual, p.18.  Petty, R.E. Central and Peripheral Routes to Advertising Effectiveness: Moderating Role of Involvement, Journal of Consumer Research.10 (20):135-146.  Politz, A 1990.Creativeness and Imagination, Journal of Advertising4 (3):11-14.  Raj, S.P. 1981Attractive and Retentive Effects of Advertising, Journal of Advertising Research22 (2):53-60.  Raj, S.P. 1982.The Effect of Advertising on High and Low Loyalty Consumer Segments, Journal of Consumer Research.9 (1):77-89.  Shirah, A, 1997.Tryst with Destiny, A&M, April1:36-38.  Schricber, R.J. and Appeal V.1991.Advertising Evaluation Using Surrogate Measure for Sales, Journal of Advertising Research.30 (6):27-31.  Singh, S.N. and Cole,C.A. 1993.The Effects of Length, Content and Repetition of T.V. Commercial Effectiveness, Journal of Marketing Research. 30:91-104.  Teffis, G. 1989 Are Advertisements Waste. Business India, July 24:89-92.  Unnava, H.R. and Brunkrant, R.E. 1989.Effects of Repeating Varied Advertisements Executions on Brand Name Memory, Journal of Marketing Research.28:406-416.  Zaidi, B. and Jayaram, A. 1996.The Cup of Conflict Brimmeth Over. Business World, January 23:86-87. 60
  61. 61. QUESTIONNAIRE 61
  62. 62. QUESTIONNAIRE Personal Information Name : _________________________ Age : _________________________ Sex : _________________________ Address : _________________________ (1) Are you consuming the soft drinks? yes no (2)what is the frequency of your consumption. Once in a day Once in a week Once in a month Any other (3) Give the reason for preference of your favourite cola drink? 1. Taste 2. Size 3. Advertisement 4. Easy Availability (4) Which is your favorite cola drink? Coke Pepsi (5) Rank the following factors according to their importance in the selection of the soft drink brands? 1. Taste 2. Easy Availability 3. Brand name 4. Word of Mouth 5. Advertisement 6. Any Other 62
  63. 63. (6)The following slogans are associated with advertisement of different brands of soft drinks. Identify the brands? Slogans Brands 1. "Thanda matlab Coca-Cola!" ________________________ 2. "Pio sar utha ke" ________________________ 3. "Burrrrrrrrr" ________________________ 4. "Every Pepsi Refreshes The World" ________________________ 5. "Summer Time is Pepsi Time" ________________________ 6. Yeh Pyaas Ha Badi ________________________ 7. "Jo chaho ho jaye ________________________ 8. My can ______________________ 9. "Change the game" _______________________ 10 Ye hai youngistan meri jaan ________________________ 11. Jashn Mana Le ________________________ (7) Tick the appropriate brand with respect to brand name? Model Coke Pepsi None 1. Aamir Khan _____ _____ ____ 2. Ranbir Kapoor _____ _____ _____ 3. Akshay Kumar _____ _____ _____ 4. Vijender Singh _____ _____ _____ 5. Imran Khan _____ _____ _____ 6. Sachin Tendulkar _____ _____ ______ 7. Gautam Gam _____ _____ ______ (8) After watching the advertisement what is your immediate reaction? 1. Urge to have that Soft drinks 2. Urge to have any Soft drink 3. Urge to have favorite Soft drink 4. Drinking one within a reasonable time. 63
  64. 64. (9) Tick one statement given below with which you are agree? 1. Liking the advertisement does not necessary mean that I like that brand of soft drink. 2. A good advertisement can change my preferences for that soft drink. 3. I buy that soft drink whose T.V. advertisements are frequent. 4. Basically all the cold drinks have the same taste. (10) What will be your reaction on the non-availability of your favorite cola drink? 1. Will go to another outlet. 2. Will buy other cola drink. 3. Will by a non-cold drink 64

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