1

“A STUDY ON THE EFFECT OF ADVERTISEMENT ON

BRAND LOYALTY WITH REFERENCE TO COLGATE

PALMOLIVE INDIA”

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE (PROFESSIONAL)

Submitted by

ATHIRA SUJITH

(CCASBCP029)

Under the supervision of

Prof. BABY JOHN

DEPARTMENT OF COMMERCE

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

MARCH 2021

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CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF COMMERCE

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON THE EFFECT

OF ADVERTISEMENT ON BRAND LOYALTY WITH REFERENCE

TO COLGATE PALMOLIVE INDIA” is a bonafide record of project done

by ATHIRA SUJITH CCASBCP029, under my guidance and supervision in

partial fulfillment of the requirement for the award of the degree of BACHELOR

OF COMMERCE (PROFESSIONAL) and it has not previously formed the

basis for any Degree, Diploma and Associateship or FELLOWSHIP.

PROF. K.O.FRANCIS Prof. BABY JOHN

Co-Ordinator Project Guide

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DECLARATION

I, ATHIRA SUJITH, hereby declare that the project work entitled “A

STUDY ON THE EFFECT OF ADVERTISEMENT ON BRAND

LOYALTY WITH REFERENCE TO COLGATE PALMOLIVE INDIA”

is a record of independent and bonafide project work carried out by me under

the supervision and guidance of Prof. Baby John, Department of Commerce,

Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best of my

knowledge. The report has not been previously submitted for the award of any

Degree, Diploma, Associateship or other similar title of any other university or

institute.

Place: Irinjalakuda ATHIRA SUJITH

Date: CCASBCP029

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ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all people

who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose

divine guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev.Dr. Jolly Andrews,

Principal-in-Charge, Christ college Irinjalakuda for providing various facilities.

I am thankful to Prof. K.O.Francis, Co-Ordinator of B.Com (Professional), for

providing proper help and encouragement in the preparation of this report.

I am thankful to Ms. Teena Thomas, Class teacher for her cordial support,

valuable information and guidance, which helped me in completing this task

through various stages.

I express my sincere gratitude to Prof. Baby John, whose guidance and support

throughout the training period helped me to complete this work successfully.

I would like to express my gratitude to all the faculties of the Department for

their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my college

for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.

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TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1 – 6

CHAPTER 2 REVIEW OF LITERATURE 8 – 11

CHAPTER 3 INDUSTRY AND COMPANY

PROFILE 13-18

CHAPTER 4 DATA ANALYSIS AND

INTERPRETATION 19-38

CHAPTER 5 FINDINGS, SUGGESTIONS

& CONCLUSION 40 – 43

BIBLIOGRAPHY

ANNEXURE

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LIST OF TABLES

TABLE

NO: TITLE PAGE NO:

4.1 Table showing the influence of advertisement on

purchase decision.

23

4.2 Table showing the influence of Advertisements on

new product purchase. 24

4.3 Table showing the purchase motive of the consumers. 25

4.4 Table showing loyalty of the consumers for Colgate

Products.

26

4.5 Table showing the effect of promotional scheme on

brand loyalty

27

4.6 Table showing the effect of celebrity endorsement on

purchase

28

4.7 Table showing the effect of celebrity in brand

recognition

29

4.8 Table showing the effect of celebrity endorsement on

brand loyalty

30

4.9 Table showing the toothpaste preference of the

consumer

31

4.10 Table showing the effect of Colgate advertisment on

purchase

32

4.11 Table showing Advertisements and brand awareness 33

4.12 Table showing the motives of the consumers for

Colgate purchase

34

4.13 Table showing the effect of Price Fluctuations on

Brand loyalty 35

4.14 Table showing the brand loyalty of Colgate

consumers

36

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4.15

Table showing the willingness of a consumer to

purchase Colgate products when it is not available in

the shop.

37

4.16 Table showing the effect of advertisements on brand

awareness

38

4.17 Table showing the effect of advertisements on brand

loyalty

39

4.18

Table showing the relationship between the effect of

advertisement on brand loyalty and effect of

advertisement on brand awareness.

40

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LIST OF CHARTS

CHARTS

NO: TITLE PAGE NO:

4.1 Chart showing the influence of advertisement on

purchase decision.

23

4.2 Chart showing the influence of Advertisements on

new product purchase. 24

4.3 Chart showing the purchase motive of the consumers. 25

4.4 Chart showing loyalty of the consumers for Colgate

Products.

26

4.5 Chart showing the effect of promotional scheme on

brand loyalty

27

4.6 Chart showing the effect of celebrity endorsement on

purchase

28

4.7 Chart showing the effect of celebrity in brand

recognition

29

4.8 Chart showing the effect of celebrity endorsement on

brand loyalty

30

4.9 Chart showing the toothpaste preference of the

consumer

31

4.10 Chart showing the effect of Colgate advertisment on

purchase

32

4.11 Chart showing Advertisements and brand awareness 33

4.12 Chart showing the motives of the consumers for

Colgate purchase

34

4.13 Chart showing the effect of Price Fluctuations on

Brand loyalty 35

4.14 Chart showing the brand loyalty of Colgate

consumers

36

9

4.15

Chart showing the willingness of a consumer to

purchase Colgate products when it is not available in

the shop.

37

4.16 Chart showing the effect of advertisements on brand

awareness

38

4.17 Chart showing the effect of advertisements on brand

loyalty

39

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CHAPTER 1

INTRODUCTION

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1.1 Introduction

According to W.J. Stanton “Advertising consists of all the activities involved in

presenting to a group a non-personal, oral or visual, openly sponsored message

regarding a product or service, this message, called an advertisement is

disseminated through one or more media and is paid for by the identified

sponsor”. Advertisement is one of the essential tools used by companies in the

present scenario to catch the consumers attention. There are many tools for

promoting a product but advertisement is considered to be the oldest form of

promotion.

For a company to be successful, it should have high sales and in order to boost

the sales we can use various marketing techniques. Price, place, promotion and

product are considered to be the 4 P’s of marketing mix. Among these,

advertisement is one of the most popular tool for promoting a product to its

consumers. Advertising aims to reach those consumers who are willing to buy

the company’s products or services and attract them into buying those products.

Advertisement is a paid form of non-personal presentation and promotion of

ideas, goods or services by an identified sponsor. It is a form of communication

used by the company to communicate about their product to its consumers.

Advertising helps in creating awareness which helps to build preference for

that product over its competitors. Consumers should feel like purchasing the

product after watching the advertisements and should prefer this product over

the others. This will lead to sales and repeated sales which results in brand

loyalty.

The information and media in the advertisements will affect the minds of the

consumers and persuade them to buy the same. This helps to increase the sales

of the company. If the consumers continue to buy this product this results in

brand loyalty.

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Brand loyalty is a pattern of consumer behaviour through which consumers

tend to get committed to a specific brand or product and make repeat purchases

over time. Brand loyalty is when a customer continues to purchase the same

product, not because its the only option, but because they trust and prefer this

product over the others. Brand loyalty is the tendency of customers to purchase

the product repeatedly. It results in such a situation where even when the price

increases, the consumers continue to purchase it.

1.2 Statement of the problem

This study is undertaken to understand the effect of advertisement on consumer

brand loyalty. This project is conducted to understand to what extent

advertisement has an impact on brand loyalty as well as brand awareness. It

also aims to identify whether specific celebrity endorsements create an impact

on consumers brand loyalty.

1.3 Scope of the study

The study is conducted to analyse whether there is any impact of advertisements on

consumer brand loyalty in reference to the users of Colgate Palmolive India in

Christ college. The project is conducted to identify the effect that advertising

has on consumer brand loyalty and to analyse the relationship between

advertisement and consumer brand awareness. This study also aims to

understand the impact of celebrities in an advertisement on consumer brand

loyalty.

1.4 Significance of the study

Advertisement is one of the oldest and most popular tool of promoting a

product. It helps to create awareness of the product to its consumers.

Advertisements catch the attention of the consumers which influences them to

purchase it. If the consumer is satisfied with the product, then he shall purchase

this product repeatedly which will result in brand loyalty. As the brand loyalty

increases, the sales of a company shall increase. This study attempts to

understand how consumers are influenced by advertisement. It analysis

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whether a consumer purchase a product after watching an advertisement and do

they continue to purchase the product repeatedly. This helps to understand to

what extend advertisement affects the brand loyalty. This also helps to

understand how advertisement and brand loyalty affects the sales of the

company.

1.5 Objective of the study

The following are the main objectives of the study

1. To analyse the effect of advertisement on consumers brand loyalty.

2. To analyse the impact of advertisement on brand awareness

3. To study the effect of celebrities in consumer brand loyalty.

1.6 Hypothesis of the study

The following are the hypothesis for the study conducted

1. There is a relationship between advertisement and consumers brand

loyalty

2. There is a significant relationship between advertising and brand

awareness.

1.7 Limitations of the study

The study is subject to the following limitations. They are mentioned below

1. Due to time constraint of 6 weeks, a detailed study is not possible.

2. The study is conducted through questionnaires, so all the answers

received from the respondents are assumed to be accurate. Any error

or bias from the respondents will affect the validity of this report.

3. The sample size of 50 is relatively small.

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1.8 Research design

1.8.1 Nature of study

This project is descriptive in nature.

1.8.2 Nature of data

The data collected for this project is both primary and secondary. A survey is

conducted among various consumers using Colgate toothpaste and their results

were analysed. Various published articles, reports etc are also referenced to

make this study more convincing.

1.8.3 Sources of data

The main source of primary data for the project were the surveys conducted

among the various users of Colgate toothpaste in Christ college. Their

responses are analysed for this project. To make this project more convincing,

specific secondary data like published reports, articles etc. were also used.

1.9 Sample design

1.9.1 Nature of population

Various users of Colgate toothpaste in Christ College are surveyed for this

project.

1.9.2 Sample unit

The samples are collected from users of Colgate toothpaste in Christ College.

1.9.3 Method of sampling

The sampling method used here is convenience sampling.

1.9.4 Size of sample

The sample size selected here is 50.

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1.10 Tools for analysis

Percentage analysis, correlation are the statistical tools used for this study.

1.11 Chapterisation

Chapter 1: Introduction, statement of the problem, scope of study, significance

of the study, objectives of the study, hypothesis, limitations of the study,

research design, sample design and tools for analysis.

Chapter 2: Review of literature, conceptual framework, empirical review.

Chapter 3: Industry Profile, company profile.

Chapter 4: Data analysis and interpretation

Chapter 5: Findings, suggestions and conclusion.

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CHAPTER 2

REVIEW OF LITERATURE

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2.1 Review Of Literature

A literature review is a survey of scholarly sources on a specific topic. It

provides an overview of current knowledge, allowing you to identify relevant

theories, methods, and gaps in the existing research. To write a literature

review, we have to find various relevant publications (like books and journal

articles) analyze them and explaining what we understood from them. We can

say that the literature review is a professional source of information on a

specific topic.

A useful literature review doesn’t just summarize sources – it

analyses, synthesizes, and critically evaluates to give a clear picture of the state

of knowledge on the subject. Usually, we write a literature review to analyze a

part of a report through summary, classification, and evaluation of past

research studies, reviews of literature, and theoretical articles. A literature

review is a descriptive, analytic summary of the existing material relating to a

particular topic or area of study.

We can define a conceptual framework as a specific exploration of an aspect of

the theoretical framework and is usually used to arrive at a hypothesis. A

conceptual framework explains the path of research and grounds it firmly in

theoretical constructs. The overall aim of the framework is to make research

findings more meaningful, acceptable to the theoretical constructs in the

research field and ensures generalizability.

An empirical literature review is a review which examines past empirical

studies to answer a particular research question. Empirical research is research

based on investigation or observation. Such research is conducted more often to

answer a specific question or to test a hypothesis. Empirical research can be

obtained from published books and in scholarly, peer-reviewed journals.

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2.2. Conceptual Framework

Advertising is a means of communication with the users of a product or

service. We need advertisements since it helps the consumers to make

decisions regarding which product and service to buy. With the help of

advertisement, a consumer gets the best possible options. In the current

situations, advertisements are everywhere and is one of the most commonly

used method of promotion.

Advertising aims to reach those consumers who are willing to pay for a

company’s products or services and attract them into buying those products.

Advertisement is a paid form of non-personal presentation and promotion of

ideas, goods or services by an identified sponsor. Advertising helps in creating

awareness which helps to build preference for that product over its competitors.

Advertising is a marketing tactic involving paying for space to promote a

product, service, or cause. The actual promotional messages are called

advertisements, or ads for short. The goal of advertising is to reach people

most likely to be willing to pay for a company’s products or services and

entice them to buy.

Traditional advertising includes newspapers, magazines, TV and radio

stations. Today, however, advertisements are placed nearly everywhere and

anywhere, including Roadside billboards, Sides of buildings, Websites,

Electronic newsletters, Print newsletters, Product packaging, Restaurant

placemats, Event bulletins, Store windows, the sides of cars and trucks,

Train walls, Sporting arenas, YouTube videos.

Brand loyalty is a pattern of consumer behaviour through which consumers

tend to get committed to a specific brand or product and make repeat purchases

over time. Brand loyalty is when a customer continues to purchase the same

product, not because it’s the only option, but because they trust and prefer this

product over the others.

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Brand loyalty is a customer purchasing products and services from the same

brand over and over rather than changing to other brands. Brand loyalty

consists of a consumer’s commitment to repurchase or continue to use one

brand. Marketers know brand loyalty is a key factor is terms of customer

retention.

Brand loyalty is always developed post purchase. To develop brand loyalty, an

organization should know their niche market, target them, support their

product, ensure easy access of their product, provide customer satisfaction,

bring constant innovation in their product and offer schemes on their product so

as to ensure that customers repeatedly purchase the product.

Colgate-Palmolive (India) Limited is India's leading provider of scientifically

proven oral care products. Colgate belongs to the fast-moving consumer goods

(FMCG) category. Oral care accounted for about 16 percent of the fast-moving

consumer goods market in India. Within the segment, Colgate occupied almost

53 percent of the market in 2017.

2.3 Empirical Review

1. Gerard J. Tellis (1988) responded that the effect of advertising is

generally nonlinear and its impact on volume purchased is mediated by

brand loyalty. Advertising seems to reinforce preference for current

brands rather than stimulate brand switching. However, features,

displays, and especially price have a stronger impact on response than

does advertising. The effect of brand loyalty dominates that of the other

variables.

2. Deepak Agrawal (1996) said that each manufacturer's brand has a loyal

segment of consumers who buy their favourite brand unless the

competing brand is offered at a much lower price by the retailer. The

number of loyal consumers is different for the two brands and so is the

strength of their loyalty to their favourite brand. Advertising directly

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affects the strength of loyalty a consumer has for the favourite brand. If

the favourite brand advertises, the loyalty strength increases but if the

rival brand advertises, it decreases.

3. Matthew Shum (2004) have examined that in differentiated product

markets where consumer preferences are characterized by brand loyalty,

an important role for advertising may be to overcome brand loyalty by

encouraging consumers to switch to less familiar brands. Advertising

reduces switching costs in this market. Furthermore, experiments

demonstrate that in markets with brand loyalty, advertising is an

attractive and effective option—relative to alternative promotional

activities, such as price discounts—of stimulating demand for a brand.

4. Ioana Chioveanu (2008) examined the influence of advertising on

brand loyalty and has noted that advertising influences consumers into

buying specific brands. Further, this leads to customer loyalty.

Advertising has the power to influence consumers into buying a brand.

There is a particular effect of advertising on brand loyalty and brand

equity in a marketing environment. Now, this effect may be low to

moderate, even high for some brands or market segments. We must

investigate these factors.

5. Gillen Dyer (2009) has said advertising is a form of communication that

constantly impinges on our daily lives, yet we are often unaware of its

more subtle form of persuasion, or of the extent to which it manipulates

our consumer culture.

6. Muhammad. MG. et, al (2013) Brand image and advertisement play a

crucial role to boost up any business performance as brand image is an

implied tool which can positively change people’s buying behaviors and

advertisement is behaving as a driving force for any business as it’s an

effective source to convey your message and stay in customer’s mind.

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CHAPTER 3

INDUSTRY PROFILE

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3.1 Industry Profile

This study has been conducted with reference to Colgate Palmolive (India).

Colgate-Palmolive (India) Limited is India's leading provider of scientifically

proven oral care products. Colgate belongs to the fast-moving consumer goods

(FMCG) category. Oral care accounted for about 16 percent of the fast-moving

consumer goods market in India. Within the segment, Colgate occupied almost

53 percent of the market in 2017.

Along with its competitors, Colgate offered a range of products in the market

containing herbal and natural ingredients, especially in toothpastes.

The range includes toothpastes, toothpowder, toothbrushes and mouthwashes

under the 'Colgate' brand, as well as a specialized range of dental therapies

under the banner of Colgate Oral Pharmaceuticals. The strong relationship and

the trust of generations of consumers and dental profession built over decades

of operations in India has made Colgate a trusted household name.

Fast-moving consumer goods (FMCG), also known as consumer-packaged

goods (CPG), are products that have maximum points of distribution across

India. FMCGs (Fast Moving Consumer Goods) are those goods and products,

which are non-durable, mass consumption products and available off the

shelf. Consumers in rural areas generally purchase goods from nearby towns

or villages. Recently, there has been a shift in consumer purchase behaviour

toward purchasing locally that has prompted the need for better local

promotional efforts to generate brand awareness in small towns.

FMCG relates to products in the market sold quickly and at a reasonably low

price. These are usually not long-lasting and are also regarded as CPG

(Packaged Goods for Consumers). Some examples of FMCG products include

meat, vegetables, dairy products, fruits, processed foods, soft drinks, cosmetics

such as soaps, deodorants, lip balm, eyeliner and everyday use products such as

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toilet paper and soaps, shower cap, face towel, over the counter drugs and other

consumer products.

The lifespan of FMCG goods is very short, and the products have usually been

sold or replaced within a few days, few weeks or within a few months or in a

short time. Although sales profitability is weak in FMCG products relative to

others, net profit is still higher as they are sold commercially in a large

quantity. The globalization of the internet and the development of the brand

population that has occurred over the past quarter of a century have contributed

to a large extent to demand FMCG goods. FMCG’s achievement with the

company relies largely on brand value, promotions, the distribution system and

comprehensive knowledge of customer behaviour and request.

FMCGs play a large part in the economy, as they are inelastic products that

touch every part of consumer life. Businesses that supply FMCGs to a rural

community can help provide employment opportunities and drive down the

cost of such products in those rural areas.

For instance, FMCGs represent the fourth-largest sector in the Indian

economy and generate employment for more than three million people in

downstream activities.

According to the article by the Indian Brand Equity Foundation on November

2020, Fast-moving consumer goods (FMCG) sector is India’s fourth largest

sector with household and personal care accounting for 50% of FMCG sales in

India. Growing awareness, easier access and changing lifestyles have been the

key growth drivers for the sector. The urban segment (accounts for a revenue

share of around 55%) is the largest contributor to the overall revenue generated

by the FMCG sector in India.

However, in the last few years, the FMCG market has grown at a faster pace in

rural India compared to urban India. Semi-urban and rural segments are

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growing at a rapid pace and FMCG products account for 50% of the total rural

spending.

Rise in rural consumption will drive the FMCG market. It contributes around

36% to the overall FMCG spending. In the third quarter of FY20 in rural India,

FMCG witnessed a double-digit growth recovery of 10.6% due to various

government initiatives (such as packaged staples and hygiene categories); high

agricultural produce, reverse migration and a lower unemployment rate.

3.2 Company Profile

3.2.1 Colgate- Palmolive (India) Ltd

Colgate Palmolive was founded in 1806. Colgate-Palmolive Limited is a $17.2

billion consumer products company that attends the needs of individuals

around the world with well-known brands that make their existence healthier

and more enjoyable. Colgate-Palmolive (India) Limited is India's leading

provider of scientifically proven oral care products. The range includes

toothpastes, toothpowder, toothbrushes and mouthwashes under the 'Colgate'

brand, as well as a specialized range of dental therapies under the banner of

Colgate Oral Pharmaceuticals.

Colgate Palmolive (India) Limited was introduced in india on the year 1937.

They offer oral care products. The Company's oral care class of products

contains toothpastes, toothbrushes, toothpowder, whitening products and mouth

freshener. The company also offers few personal care items.

In the toothpaste class, the Company offers products like Colgate Total

Charcoal Deep Clean Toothpaste, Colgate Active Salt and Neem Toothpaste

and Colgate Sensitive Pro-Relief toothpaste (CSPR) Enamel Repair and Relief

Toothpaste. In the toothbrush category, the Company offers the Colgate 360

degree Toothbrush range, including 360 degree Charcoal Gold, 360 degree

Whole Mouth Clean, 360 degree Visible White and 360 degree Floss-Tip.

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3.2.2 Colgate Brands

The Colgate toothpaste brand of India provides various types of toothpastes.

Colgate Total, Active Salt, Colgate Max infused with cooling crystals, Colgate

fresh, Colgate Ayurvedic toothpaste and Colgate Sensitive for sensitive teeth

are some of the most popular varieties in India.

3.2.3 Colgate Values

Colgate's success is related to the Company's values of Caring, Global

Teamwork and Continuous Improvement.

Caring: The Company cares about people. Colgate people, consumers,

shareholders and business associates. Colgate is dedicated to act with

compassion, integrity, honesty and high ethics in all circumstances, to

attend with respect to others and to value differences. The Company is

also dedicated to guard the global environment, to improve the societies

where Colgate people live and work, and to satisfy the government rules

and regulations.

Global Teamwork: All Colgate people are share of a global team,

committed to working alongside countries and through the world. Only

by sharing thoughts, technologies and talents can the Company attain

and endure profitable growth.

Continuous Improvement: Colgate is dedicated to getting healthier

every day in all it does, as individuals and as teams. By better

understanding consumers' and customers' expectations and continuously

working to innovate and improve products, services and processes,

Colgate will become the best.

3.2.4 Colgate USP

A unique selling point, also called a unique selling proposition, is the essence

of what makes your product or service better than competitors. The USP of

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Colgate Palmolive is “Colgate is the number 1 toothpaste brand recommended

by dentists”.

3.2.5 Colgate Slogan

“All around decay protection” is the slogan or tagline of Colgate

Palmolive.

3.2.6 Colgate strengths.

Below are the strengths in the SWOT Analysis of Colgate:

1. Colgate dental cream offers all around cavity protection, even where a

toothbrush cannot reach.

2. Its great mint taste freshens breath

3. Colgate protects against root caries

4. It cleans and makes teeth whiter and repairs early decay spots.

5. Colgate is an extremely popular brand and high brand awareness due to

advertising.

6. Sponsorship of events for dental associations have been beneficial for

the brand.

3.2.7 Colgate Weakness

Below are the weakness in the SWOT Analysis of Colgate:

1. High dependence of the company on a single category i.e. Oral

care.

2. Immense competition in the segment means limited market share

growth for Colgate.

3.2.8 Colgate Opportunities

Following are the Opportunities in Colgate SWOT Analysis:

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1. Colgate has been ranked as the most trusted brand in India

2. Focus on innovation and new product launches by deploying

advanced technologies

3. Growth in emerging markets – rural and semi-urban

3.2.9 Colgate threats

Following are the threats in Colgate SWOT Analysis:

1. High competition from competitive brands like Pepsodent and Close-

Up.

2. Increasing commodity prices for manufacturing can affect Colgate.

3.2.10 Colgate Market Share

Oral care accounted for about 16 percent of the fast-moving consumer goods

market in India. Within the segment, Colgate occupied almost 53 percent of the

market in 2017.

3.2.11 Competitors

Below are the top Colgate competitors

Colgate competitors:

1. Close-Up

2. Pepsodent

3. Oral-B

4. Dabur Red

5. Sensodyne

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CHAPTER 4

DATA ANALYSIS AND INTERPRETATIONS

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Chapter 4- Data Analysis and Interpretation

4.1 Introduction

This chapter deals with analysis and interpretation. Data analysis is a process

used to inspect, clean, transform and remodel data with a view to reach to a

certain conclusion for a given situation. It is a process for obtaining raw data

and converting it into information useful for decision making by users.

The data is collected using surveys. The survey was conducted using the online

platform google forms. It was given to the students of Christ College

Irinjalakuda. The sample size selected is 50. It is collected using convenience

sampling method. All the 50 respondents are selected at random.

This chapter is an attempt to analyse the impact of advertisements on consumer

brand loyalty in reference to Colgate Palmolive India. This chapter also

analyses the impact of advertisement on consumer brand awareness and the

effect of celebrity endorsement on consumer brand loyalty.

The data collected from the survey is presented using pie charts. Percentage

analysis and Karl Pearson’s co-efficient of correlation method is used to

conduct the study and to arrive into a conclusion. The result of the survey

reveals the following:

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Table 4.1:

Showing the influence of advertisement on purchase decision.

Options Number of responses Percentage

Yes 31 62

No 4 8

Maybe 15 30

Total 50 100

Figure 4.1:

Showing the influence of advertisement on purchase decision.

While analysing the data collected from the survey, 62% of the respondents

agree that advertisements does affect their purchase decisions. While 8% of the

respondents disagreed and 30% of the respondents are neutral.

62%

30%

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Table 4.2:

Showing the influence of Advertisements on new product purchase.

Options Number of responses Percentage

Yes 38 76

No 2 4

Maybe 10 20

Total 50 100

Figure 4.2:

Showing the influence of Advertisements on new product purchase.

From the above, 76% of the respondents are influenced by advertisements to

purchase new products. While 4% of the respondents disagreed and 20% of the

respondents are neutral.

76%

20%

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Table 4.3:

Showing the purchase motive of the consumers.

Basis Number of responses Percentage

Advertisement 19 38

Attractive packaging 6 12

Celebrity endorsement 2 4

Other 23 46

Total 50 100

Figure 4.3:

Showing the purchase motive of the consumers.

The survey shows that 38% of the respondents are influenced by

advertisements to purchase a product. 12% of the respondents are influenced by

attractive packaging. 4% are influenced by celebrity endorsements. While the

remaining 46% purchase products due to other reasons.

38%

46%

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Table 4.4:

Showing loyalty of the consumers for Colgate Products.

Options Number of responses Percentage

Yes 24 48

No 11 22

Maybe 15 30

Total 50 100

Figure 4.4:

Showing loyalty of the consumers for Colgate Products.

According to the survey, 48% of the respondents are loyal to the Colgate

products they buy. 22% of the respondents are not loyal to the Colgate products

they purchase, while 30% of the respondents are neutral.

48%

30%

22%

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Table 4.5:

Showing the effect of promotional scheme on brand loyalty

Options Number of responses Percentage

Yes 28 56

No 11 22

Maybe 11 22

Total 50 100

Figure 4.5:

Showing the effect of promotional scheme on brand loyalty

According to the table, 56% of the respondents agree that promotional scheme

has a strong influence on their purchase decision. 22% of the respondents don’t

agree that promotional scheme has a strong influence on their purchase

decision while 22% of the respondents are neutral.

56%

22% 22%

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Table 4.6:

Showing the effect of celebrity endorsement on purchase

Options Number of responses Percentage

Yes 14 28

No 28 56

Maybe 8 16

Total 50 100

Figure 4.6:

Showing the effect of celebrity endorsement on purchase

Based on the table, 28% of the respondents agree that celebrity endorsement do

motivate them to purchase a product. According to 56% of the respondents,

celebrity endorsements does not affect their purchase. The remaining 16%

remain neutral.

56% 16%

28%

36

Table 4.7:

Showing the effect of celebrity in brand recognition

Options Number of responses Percentage

Yes 39 78

No 6 12

Maybe 5 10

Total 50 100

Figure 4.7:

Showing the effect of celebrity in brand recognition

78% of the respondents agree that celebrities help them to recognise the brand.

12% disagree that celebrities do not help them to recognise the brand, while the

remaining 10% are neutral.

37

Table 4.8:

Showing the effect of celebrity endorsement on brand loyalty

Options Number of responses Percentage

Yes 30 60

No 9 18

Maybe 12 24

Total 50 100

Figure 4.8:

Showing the effect of celebrity endorsement on brand loyalty

60% of the respondents will continue to purchase the product even if the

celebrity stops endorsing that product. 18% of the respondents will stop

purchasing it. 24% are neutral.

60%

24% 18%

38

Table 4.9:

Showing the toothpaste preference of the consumer

Basis Number of responses Percentage

Colgate 32 64

Close up 8 16

Oral B 5 10

Dabur Red 5 10

Total 50 100

Figure 4.9:

Showing the toothpaste preference of the consumers.

When asked which toothpaste they prefer, 64% of the respondents prefer

Colgate. 16% of the respondents prefer close-up. 10% of the respondents prefer

oral-B as well as Dabur Red.

Table 4.10:

64%

16%

10%

39

Showing the effect of Colgate advertisment on purchase

Options Number of responses Percentage

Yes 26 52

No 21 42

Maybe 3 6

Total 50 100

Figure 4.10:

Showing the effect of Colgate advertisment on purchase

52% of the respondents have used Colgate products after coming across their

advertisement. 42% of the respondents have not purchased Colgate products

after coming across their advertisement. 6% of the respondents are neutral.

Table 4.11:

42%

52%

40

Advertisements and brand awareness

Options Number of responses Percentage

Yes 32 64

No 14 28

Maybe 4 8

Total 50 100

Figure 4.11:

Advertisements and brand awareness

64% of the respondents have seen a Colgate advertisement in the last month.

28% have not seen any Colgate in the last month. The remaining 8% are

neutral.

64%

28%

8%

41

Table 4.12:

Showing the motives of the consumers for Colgate purchase

Basis Number of responses Percentage

Availability 14 28

Quality 3 6

Price 4 8

Advertisements 29 58

Total 50 100

Figure 4.12:

Showing the motives of the consumers for Colgate purchase

28% of the respondents will purchase a product based on their availability. 6%

will purchase a product based on their quality. 8% of the respondents will

purchase a product based on their price. 58% of the respondents will purchase a

product based on advertisements.

28%

58%

Availability

Advertisement

Price

Quality

42

Table 4.13:

Showing the effect of Price Fluctuations on Brand loyalty

Options Number of responses Percentage

Yes 13 26

No 13 26

Maybe 24 48

Total 50 100

Figure 4.13:

Showing the effect of Price Fluctuations on Brand loyalty

Based on the table, 26% have agreed that they will continue to purchase

Colgate products even if the price increases, while 26% of the respondents

have disagreed. 48% are neutral.

48%

26%

26%

43

Table 4.14:

Showing the brand loyalty of Colgate consumers

Options Number of responses Percentage

Yes 24 48

No 12 24

Maybe 14 28

Total 50 100

Figure 4.14:

Showing the brand loyalty of Colgate consumers

48% of the respondents will prefer Colgate when given a choice between

Colgate and other brands. 24% will not prefer Colgate when given a choice

between Colgate and other brands. 28% of the respondents are neutral.

48%

28%

24%

44

Table 4.15:

Showing the willingness of a consumer to purchase Colgate products when

it is not available in the shop.

Options Number of responses Percentage

Yes 15 30

No 19 38

Maybe 16 32

Total 50 100

Figure 4.15:

Showing the willingness of a consumer to purchase Colgate products when

it is not available in the shop.

Based on the survey conducted, 30% of the respondents will try to find Colgate

product somewhere else if it is not available in the shop nearby. 38% will not

try to find Colgate product somewhere else if it is not available in the shop

nearby. 32% of the respondents are neutral.

45

Table 4.16:

Showing the effect of advertisements on brand awareness

Options Number of responses Percentage

Yes 44 88

No 2 4

Maybe 4 8

Total 50 100

Figure 4.16:

Showing the effect of advertisements on brand awareness

Based on the table, 88% of the respondents agree that advertisements help to

get to know the brand better. 4% of the respondents disagree that

advertisements do not help to get to know the brand better. 8% of the

respondents disagree.

88%

46

Table 4.17:

Showing the effect of advertisements on brand loyalty

Options Number of responses Percentage

Yes 19 38

No 14 28

Maybe 17 34

Total 50 100

Figure 4.17:

Showing the effect of advertisements on brand loyalty

Based on the table, 38% of the respondents agree that advertisements affect

their loyalty towards a product. 28% of the respondents disagree to this. While

the remaining 34% of the respondents are neutral.

38%

34%

28%

47

4.18 Karl Pearson’s co-efficient of correlation

It is the most widely used method for computing correlation, it is otherwise

known as ‘Pearsonian co-efficient of correlation’.

Formulae:

Table 4.18

Showing the relationship between the effect of advertisement on brand

loyalty and effect of advertisement on brand awareness.

Options Effect of

advertisement

on brand

loyalty.

(X)

Effect of

advertisement

on brand

awareness.

(Y)

X2 Y2 XY

YES 19 44 361 1936 836

NO 14 2 196 4 28

MAYBE 17 4 289 16 68

TOTAL 50 50 846 1956 932

Correlation (r) : 3(932)−50×50

√3(846)−(50)2 ×√3(1956)− 502

296

√38√3368

= 0.82

Result: From the study conducted, it is analysed that there is a high

relationship between the effect of advertisement on brand loyalty and effect of

advertisement on brand awareness.

48

CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

49

5.1 Findings

1. Advertisements has a significant effect on consumer brand loyalty.

2. 48% of the respondents are loyal to the products they purchase.

3. 38% of the respondents have agreed that advertisements do effect

consumer brand loyalty.

4. Advertisements affect the purchase decision of majority of the

respondents.

5. Advertisements impact consumer brand awareness.

6. 88% of the respondents has agreed that advertisements have affect their

brand awareness

7. Celebrity endorsements help in brand awareness.

8. Celebrity endorsements does not have a significant effect on consumer

brand loyalty.

9. Advertisements influence most respondents to purchase new products.

10. Majority of the respondents are influenced by advertisements to

purchase Colgate products.

11. Promotional scheme has a strong influence on the purchase decision of a

consumer.

12. 64% of the respondents are Colgate consumers.

13. A majority of 52% of the respondents have purchased Colgate products

after coming across their advertisements.

14. Majority of the respondents consider advertisements as their motive for

purchasing Colgate products.

15. Most of the respondents prefer Colgate products to other brands.

16. Price fluctuations have strong influence on purchasing decisions.

17. The availability and quality of the product is also important for

consumers purchase decisions.

18. The correlation result was 0.82 which proved that there is a high

correlation between brand loyalty and brand awareness.

50

5.2 Suggestions

• Spending more on Advertisements would have a positive impact

for the company as this will help to increase the brand awareness.

• Spending more on advertisements will also help to increase the

brand loyalty of the consumers.

• Celebrity endorsements can be given lesser expenditure as

compared to advertisements.

• Creating better promotional schemes helps to attract the

consumers attention.

• Improve the quality and availably of the products.

51

5.3 Conclusion

The study is conducted to know about the effect of advertisement on consumers

brand loyalty. It is also conducted to analyse the impact of advertisement on

brand awareness and to study the effect of celebrities in consumer brand

loyalty.

It is crystal clear from this study that there is a significant effect of

advertisement on brand loyalty. Advertisements help to increase the brand

awareness as well as the brand loyalty of the consumers. Most of the

respondents has purchased products after coming across their advertisements

and has continued to purchase it.

Even though celebrity endorsements help to increase the brand awareness of a

company. Celebrity endorsements does not help to increase the brand loyalty of

the product. Based on the survey conducted most of the respondents purchase

products due to their availability and their advertisements and not due to

celebrity endorsements.

In a short glance, this study shows that there is a significant effect of

advertisement on brand loyalty. It also states that advertisements help to

increase the brand awareness as well as the brand loyalty of the consumers.

52

BIBLIOGRAPHY

53

Books

1. Gillian Dyer, Advertising as communications, 2018

Journals

1. Gerard J. Tellis (1988) Advertising Exposure, Loyalty, and Brand

Purchase: A Two-Stage Model of Choice, Volume: 25 issue:

2, page(s): 134-144

2. Deepak Agrawal(1996) Effect of Brand Loyalty on Advertising

and Trade Promotions: A Game Theoretic Analysis with

Empirical Evidence, Vol. 15, No. 1

3. Ioana Chioveanu(2008) Advertising, brand loyalty and pricing,

Volume 64, Issue 1, September 2008, Pages 68-80

4. Matthew Shum( 2004) Does Advertising Overcome Brand

Loyalty? Evidence from the Breakfast‐Cereals Market,

Volume13, Issue2

5. Muhammad Mudasar Ghafoor, Muhammad Ehsan Malik, Hafiz

Kashif Iqbal, Qasim Ali, Hira Hunbal, Muhammad Noman and

Bilal Ahmad(2013) Impact of Brand Image and Advertisement

on Consumer Buying Behavior.

Websites

1. www.ibef.org

2. www.colgatepalmolive.com

3. www.marketing91.com

4. www.economicsdiscussion.net

54

ANNEXURE

55

QUESTIONNAIRE

The Effect of Advertisement on Consumer Brand Loyalty in Reference to

Colgate Palmolive India.

1. Name:

2. Age

20-30

31-40

41-50

50 and above

3. Do advertisements influence your purchase decision?

Yes

No

Maybe

4. Do advertisements influence you to try out new products?

Yes

No

Maybe

5. What influences you to purchase products?

Advertisement

Attractive packaging

Celebrity Endorsement

Other

6. Are you a loyal customer to the products you buy?

Yes

No

Maybe

7. Will you switch your brand if you get better promotional scheme with

another brand?

Yes

No

Maybe

8. Do certain celebrity endorsement in advertisement motivate you to

purchase that product?

Yes

No

56

Maybe

9. Do you think advertisements having celebrities are more effective than

those which don't?

Yes

No

Maybe

10. Does the presence of a celebrity in an advertisement help you to

recognize the brand?

Yes

No

Maybe

11. Will you continue to purchase that product even if that celebrity stops

endorsing it?

Yes

No

Maybe

12. Which toothpaste do you purchase?

Colgate

Close up

Oral- B

Dabur Red

13. Have you purchased any Colgate products after coming across their

advertisement?

Yes

No

Maybe

14. Have you seen any Colgate advertisements in the last month?

Yes

No

Maybe

15. What motivates you to purchase Colgate products?

Availably

Quality

Price

Advertisement

16. Will you continue to purchase Colgate products even if the price

increases?

57

Yes

No

Maybe

17. When given a choice between Colgate and other brands, do you

choose Colgate?

Yes

No

Maybe

18. If Colgate products are not available in the nearby shop, will you try

to find it somewhere else?

Yes

No

Maybe

19. Do you recommend Colgate products to your friends?

Yes

No

Maybe

20. Do you think the advertisements help the customers to get to know the

brand better?

Yes

No

Maybe

21. Do you think advertisements affect your loyalty towards a product?

Yes

No

Maybe