Consumer Buying Behaviour of Advertisement on Soft Drinks

A Project Report

OnSTUDY OF

Impact of Advertisements on Consumer Buying Behaviour with Special Reference to Soft Drinks

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

(MARKETING)

BYShowket Ahmad Lone

MBA-4th Semester

SASIIT&R MOHALIUNDER THE SUPERVISION OF

Prof. Shami Bathai Incharge Placement Cell

ACADEMIC SESSION: 2011-2013

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STUDENT DECLERATION

A critical and I hereby declare that this Project Report titled

Impact of Advertisements on Consumer Buying

Behaviour with Special Reference to Soft Drinks

submitted by me to the Department of management, SASIIT&R

Mohali is a bonafide work undertaken by me and it is not

submitted to any other University or Institution for the award of

any degree, diploma / certificate or published any time before. I

am heartly thankful to my friends who helped me in finding the

related topics and provided their valuable time in finding the

topics related my project work.

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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

from a lot of people with whom I had good fortunate of increasing of journey.

I am indebted to our prof. shami Bhatia sir and my close friend Mr

tanveer mir 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 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.

SHOWKET AHMAD LONE

Chapter No. Particulars Page No.

1. Introduction 5-10

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2. Need of study 11

3. Objectives of study 12

4. Review of literature 13-29

5. Research methodology 30-32

6. Limitation of study 33

7. Analysis and discussion 34-60

8. Finding and conclusion 61-63

9. bibliography 66-67

10. Questionnaire 68-70

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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-

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personal, multiple presentations to the market of goods, services or commercial

ideas by an identified sponsor who pays for the delivery.

In 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.

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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 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,

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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.

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.

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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% to 18%.

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.

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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.

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

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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 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 the selected advertising

campaigns of the two major players in the soft drink market, viz, Coke and Pepsi,

and also the effectiveness of the advertisements in influencing the consumers.

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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.

Objective of study

1. To find the effectiveness of the advertisement.

2. To find out the factors influencing the choice of brand.

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3. To know consumers preference towards the soft drinks

.

(a) To know the reasons for the preference of their favourite soft drinks.

(b) 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.

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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.

Raj (1982) 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.

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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.

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.

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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.

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.

Tellis (1989) 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.

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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.

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.

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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.

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.

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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.

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.

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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.

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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.

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.

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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.

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 (Kotler & Armstrong, 1989)

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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 (Kotler & Armstrong, 1989).

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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. (Kotler &

Armstrong, 1989, p.442). 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 (Kotler&Armstrong, 1989).

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 (Kotler & Armstrong, 1989).

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 (Kotler & Armstrong, 1989).

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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 (Nowlis & Simonson,

1996).

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 (Mackenzie & Olshavsky, 1995).

25

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 (Grunet,

1996).

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 (Clancy & Shulman,

1993).

26

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

(Kent & Allen, 1994)

27

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."(Kopalle & Lehmann, 1995, p.280)

28

In 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. (Kotler & Armstrong, 1989) Advertising is specifically aimed at a

target audience, a certain segment of the population for whom the service or

product has an interest (Dominick, 1996). 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 (Dominick, 1996).

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 (Kotler & Armstrong, 1989).

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. (Kotler & Armstrong, 1989) Although many new products fail

some are very successful, and many are successful due to their advertising

campaign and the messages advertised (Kotler & Armstrong, 1989).

29

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.

Several categories of product, after analysis, show that brands ranked

lower than previous years, showing a low response rate to sales. (Clancy &

Shulman, 1993). The message strategy is important, especially in establishing

new products to the market (Clancy & Shulman, 1993).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.

30

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

(Dacin & Smith, 1994).

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 (Clancy & Shulman, 1993).

31

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 (Clancy & Shulman, 1993). 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.

32

Research Methodology

Research design

The research is mainly of two types:

33

1. Exploratory

2. Descriptive

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, recall and purchase behaviour.

The questionnaire dealt 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?”)

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.

34

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 100.

Keeping in view the time and resources constant, the total sample size

was taken to be 100. 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 and above 25 years.

Details are given below. In the age group 15-25 years almost all the

respondents were students of PCTE. The respondents in the age group

above 25 years consisted of house holds located near places Avtar Nagar

Model town, and Kipps market in the Ludhiana city.

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 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.

35

(c) Male respondents in the age group above 25 years.

(d) Female respondents in the age group above 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

Above25 25 25 50

Total 50 50 100

(iii) Method of Analysis:

Information collected by means of questionnaire was processed into

a master table. On the basis of this master table various tables were

constructed which presented the tabular view of various parameters

measured with respect to sex and age.

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.

36

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.

ANALYSIS AND DISCUSSION:

37

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:

Two kind of recall test were carried out through questionnaire to study the

effectiveness of advertisement. In the first test the objective is to check

unaided recall of the soft drink advertisement of Pepsi and Coke. The

respondents were asked to name the soft drink advertisement which

immediately comes to their mind. The second test was conducted on the

parameters of aided recall. The respondents were provided with slogans

and name of the models and were asked to recall the brand name of the

soft drink associated with it. The responses were further analyzed with

respect to sex and age.

(1) Unaided Recall of Coke and Pepsi Advertisement:

In this un-aided test, respondents were asked to recall the

advertisement of Coke and Pepsi. In this test the respondents were not

provided any type of clues like slogans, name of models etc. This test is

very useful to know the advertising effectiveness for creating the

awareness of the product and to know whether respondents can recall the

advertisement of the product without the help of any clues. So the results

that came are discussed below.

Unaided Recall of Coke and Pepsi Advertisement:

38

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%

Note: The total number of respondent is 100 so the number itself is %.

The above table is showing the unaided recall of advertisement & from this

it is very clear that the recall ability of advertisement in both the Coke &

Pepsi is very higher and advertisement has greater impact on the

consumers as far as the recall of the advertisement is concern.

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.

39

Unaided Recall of Coke and Pepsi Advertisement: Sex wise

Advertisement Sex

Male (N=50)

Female (N=50)

Total (N=100)

COKE

1. Thanda matlab 48(96%) 43(86%) 91%

2. Chhota matlab panch 50(100%) 46(92%) 96%

3. Jo chaho ho jaye 47(94%) 44(88%) 91%

4. Coke utha le dhoom macha le 35(70%) 32(64%) 67%

5. Jashn Mana Le 39(78%) 36(72%) 75%

PEPSI

1. Yeh payas hai badi 43(86%) 48(96%) 91%

2. Yeh dil maange more 49(98%) 48(96%) 97%

3. Sachin ala re 32(64%) 31(62%) 63%

4 Ye hai youngistan meri jaan 47(94%) 48(96%) 95%

5. My can 33(66%) 33(66%) 66%


In the above table we can see the recall ability of Coke is higher in case of

male which is nearly 96% to 100% and these advertisements are "Thanda

matlab" and "Chhota matlab panch". The Recall ability of cokes

advertisement is highest in case of female which is 92% the advertisement

is”Chhota matlab panch”.

In case of Pepsi the most recallable advertisements are "Yeh dil

maange more" and “Ye hai youngistan meri jaan” which is having the

recall ability of 98% & 94% in case of males. And in case of female also

40

the recall ability of these advertisements are higher.The advertisement “Ye

hai youngistan meri jaan” has more recall 96% as compared to males.

But the advertisement with very less recall in both the males & females is

“Sachin ala re”.

Unaided Recall of Coke and Pepsi Advertisement: Age wise

Advertisement Age group

15-25 yrs.(N=50)

Above 25 yrs.

(N=50)

Total (N=100)

COKE

1. Thanda matlab 45(90%) 46(92%) 91%

2. Chhota matlab panch 47(94%) 49(98%) 96%

3. Jo chaho ho jaye 45(90%) 46(92%) 91%


5. Jashn Mana Le 38(76%) 36(72%) 75%

PEPSI



3. Sachin ala re 30(60%) 33(66%) 63%


5. My can 36(72%) 30(60%) 66%


In this the recall of Coke's advertisement is higher in the age group of

above 25years which is 98% & the advertisement is “chhota matlab

panch”. And in case of the age group of 15-25years the maximum recall

is again of the same advertisement but this time it has only 94% recall

41

ability. In case of Pepsi the highest recall is in the age group of above

25years having recall of 98% and the advertisement is “yeh dil maange

more”. And in the group of 15-25years highest recall is of “Ye hai

youngistan meri jaan” advertisement which is 98% in this age group.

(2) Aided Recall Of Coke And Pepsi Advertisement:

In this aided test, respondents were provided the slogans of

Coke and Pepsi. And were asked to identify the brand of soft drinks with

which they are associated.

Aided Recall of Coke and Pepsi Advertisement:

Advertisement Total (N=100)

COKE

1. Jo chaho ho jaye 95%

2. Jiyo thanda piyo thanda 99%

3. Thanda matlab 98%

4. Coke utha le dhoom macha le 96%

5. Jashn Mana Le 97%

PEPSI

1. Yeh payas hai badi 91%

2. Yeh dil maange more 97%

3. World cup ke shikari 80%

4 Ye hai youngistan meri jaan 95%

5.My can 78%

Note:The total number of respondent is 100 so the number itself is %.

In the above table the total aided recall is shown. And in the table it is

clear that in case of coke “Jiyo thanda piyo thanda” is having the

42

highest recall which is 99% followed by the another advertisement

“Thanda matlab” which is 98%. & in case of Pepsi the maximum recall is

of “Yeh dil maange more” & “Ye hai youngistan meri jaan” which is

97%. This data is also analyzed in the two different parameters of sex &

age. In that case, 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.

Aided Recall of Coke and Pepsi Advertisement With Respect To Slogans: Sex

wise

Advertisement Sex

Male (N=50)

Female (N=50)

Total (N=100)

COKE

1. Jo chaho ho jaye 49(98%) 46(92%) 95%

2. Jiyo thanda piyo thanda 50(100%) 49(98%) 99%

3. Thanda matlab 50(100%) 48(96%) 98%


5. Jashn Mana Le 49(98%) 48(96%) 97%

PEPSI



3. World cup ke shikari 43(86%) 37(74%) 80%


5. My can 40(80%) 38(76%) 78%


In case of Coke the males are dominating with 100% recall of

advertisements & those advertisements are “Jiyo thanda piyo thanda” &

43

“Thanda matlab”. And in case of females highest recall is of “jiyo thanda

piyo thanda” which is 98%.

In case of Pepsi the males are having highest recall of 96% of the

advertisement “Yeh dil maange more”. & females are having highest

recall of 98% for the same advertisement. And another advertisement

which is having the recalled of above 90% in case of Pepsi is “Ye hai

youngistan meri jaan” which is having recall of 94% in case of males and

96% in case of females. The advertisement of Pepsi which is having less

recall is “Pepsi my can” which is having 80% recall in case of males and

76% in case of females. The overall recall of advertisement is very high in

both cases i.e. males & females. But in both cases i.e. Coke & Pepsi

males are having upper edge in recall of the advertisement as compared

to females.

Aided Recall of Coke and Pepsi Advertisement With Respect To

Slogans: Age Wise

Advertisement Age group

15-25 yrs.

(N=50)

Above 25 yrs.(N=50)

Total (N=100)

COKE

1. Jo chaho ho jaye 47(94%) 48(96%) 95%

2. Jiyo thanda piyo thanda 50(100%) 49(98%) 99%

3. Thanda matlab 49(98%) 49(98%) 98%


5. Jashn Mana Le 49(98%) 48(96%) 97%

PEPSI

44

1. Yeh pyas hai badi 50(100%) 41(82%) 91%


3. World cup ke shikari 45(90%) 35(70%) 80%


5.Pepsi my can 42(84%) 36(72%) 78%


In the age group of 15-25 years the most recalled

advertisement is “jiyo thanda piyo thanda” which is having a recall of

100% in case of Coke. And in case of Pepsi the advertisement having

highest recall is “yeh payas hai badi” & “yeh dil maange more” both

having recall of 100% each. In the age group above 25years again the

highest recall is of “Jiyo thanda” & “Thanda matlab” in case of Coke &

“Yeh dil mange more”& “Ye hai youngistan meri jaan” in case of Pepsi

have highest recall

(3) Aided Recall Test With Respect To Models:

In this test, respondents were provided with the name of

models and were asked to identify the brand name of soft drinks with

which they are associated. In this recall test, the names of the models are

provided as clues to the respondents to check their recall ability with

respect to models of Coke and Pepsi advertisement.

Aided Recall of Advertisement With Respect To Models:

Models Total (N=100)

COKE

1. Aishwarya Rai 97%

45

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%


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 “ 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.

Aided Recall of Advertisement With Respect To Models: Sex Wise

Models Sex

Male (N=50)

Female (N=50)

Total (N=100)

46

COKE

1. Aishwarya Rai 48(96%) 49(98%) 97%

2. Aamir khan 50(100%) 50(100%) 100%

3. Akshay Kumar 47(94%) 48(96%) 95%

4. Sania Mirza 44(88%) 47(94%) 91%

PEPSI

1. Amitabh Bachhan 50(100%) 48(96%) 98%

2. Shahrukh Khan 50(100%) 49(98%) 99%

3. Sachin Tendulkar 49(98%) 46(92%) 95%

4. Yuvraj Singh 47(94%) 48(96%) 95%


In case of males the most recalled models are “Aamir Khan”with recall of

100%, “Aishwarya Rai” with recall of 96%& “Akshay Kumar” with recall

of 94% in case of Coke. And in case of Pepsi “Amitabh Bachhan”,

“Shahrukh Khan” & “Sachin Tendulkar” are having maximum recalls

i.e. 100%, 100% and 98% respectively.

And in case of females most recalled model is “Aamir Khan”,”Aishwarya

Rai” &”Akshay Kumar” with recall of 100%, 98% & 96% respectively, in

case of Coke. “Shahrukh Khan” is most recalled model with recall 98%

and “Amitabh Bachhan” & “Yuvraj Singh” with recall of 96% each in

case of Pepsi.

Aided Recall Advertisement With Respect To Models : Age Wise

Models Age group

15-25 yrs. Above Total

47

(N=50) 25 yrs. (N=50)

(N=100)

COKE

1. Aishwarya Rai 50(100%) 47(94%) 97

2. Aamir Khan 50(100%) 50(100%) 100

3. Akshay Kumar 49(98%) 46(92%) 95

4. Sania Mirza 45(90%) 46(92%) 91

PEPSI

1. Amitabh Bachhan 49(98%) 49(98%) 98

2. Shahrukh Khan 49(98%) 50(100%) 99

3. Sachin Tendulkar 47(94%) 48(96%) 95

4. Yuvraj Singh 49(98%) 46(92%) 95


In the age group of 15-25 years the most recalled models of Coke are

“Aishwarya Rai”, “Aamir Khan” with recall of 100% each & “Akshay

Kumar” with recall of 98% & in case of Pepsi are “Amitabh Bachhan”,

“Shahrukh Khan” & “Yuvraj Singh” who are having recall almost 98%.

And in the age group above 25 years the models having highest recall are

“Aamir Khan” in case of Coke & “Shahrukh Khan” in case of Pepsi with

100% recall.

(4) Recall Test With Respect To Colour :

In this test the respondents were asked to mention the colour which they

associated with the soft drinks Coke and Pepsi. This test was conducted to

see whether the Red Colour of Coke and Blue Colour of Pepsi were

noticed by consumer or not.

Recall Test With Respect To Colour:

48

BRAND Total (N=100)

1. COKE 99%

2. PEPSI 93%


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.

Recall Test With Respect To Colour: Sex Wise

BRAND SEX

Male

(N=50)Female (N=50)

Total (N=100)

1. COKE 49(98%) 50(100%) 99%

2. PEPSI 47(94%) 46(92%) 93%


In the recall test with respect to colour 98% of the males recalled the

colour of Coke and 94% of the Pepsi and in case of females 100% of the

females recalled the colour of Coke and 92% of the Pepsi.

Recall Test With Respect To Colour: Age Wise

BRAND Age group

15-25 yrs. Above Total

49

(N=50) 25 yrs.(N=50)

(N=100)

1. COKE 49(98%) 50(100%) 99%

2. PEPSI 48(96%) 45(90%) 93%


In the age group of 15-25 years the 98% of the persons recalled the

colour of Coke and 96% of the Pepsi. And in the age group of above 25

years, 100% recalled the colour of Coke and 90% recalled the colour of

Pepsi.

(5) Factor Influencing Choice of Brand:

To see the influence of the advertisement in comparison to certain other factors

which affect the purchase decision for a soft drink. The respondents were given

various factors and asked to rank these factors according to their preferences.

Factor Influencing Choice of Brand:

FACTORS Value

1. Taste 334

2. Easy availability 319

3. Brand name 305

4. World of Mouth 281

5. Advertisement 265

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.

Factor Influencing Choice of Brand: Sex Wise

50

FACTORS SEX

Male

(N=50)Female (N=50)

Value

1. Taste 190 144 334

2. Easy availability 207 112 319

3. Brand name 200 105 305

4. World of Mouth 185 96 281

5. Advertisement 150 115 265

In the above table it is clear that according to male the most affecting

factor is Easy availability and the Brand name. But in case of females

the Taste and the Advertisement are affecting factors.

Factor Influencing Choice of Brand: Age Wise

FACTORS Age group

15-25 yrs.(N=50)

Above 25 yrs.

(N=50)

Value

1. Taste 150 184 334

2. Easy availability 190 129 319

3. Brand name 175 130 305

4. World of Mouth 128 153 281

5. Advertisement 129 136 265

In the age group of 15-25 years the most influencing factors

are Easy availability and the Brand name and in case of age group

above 25 years Taste and Word of mouth are dominating followed by

Advertisement.

51

(6) Immediate Reaction After Watching An Advertisement:

To know the immediate reaction of consumer on watching an

advertisement certain statements were given to the respondents and they

were asked to tick the most important one that they think. The main aim of

this question is to see how a consumer behaves after watching an

advertisement.

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%


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.

Immediate Reaction after Watching an Advertisement: Sex Wise

REACTION SEX

Male

(N=50)Female (N=50)

Total (N=100)

52

1. Urge to have that soft drink 10(20%) 15(30%) 25%

2. Urge to have any soft drink 9(18%) 7(14%) 16%

3. Urge to have favourite soft drink 20(40%) 19(38%) 39%

4. Drinking one within a reasonable time 11(22%) 9(18%) 20%


In the above table the 40% of the males were saying that they will have

urge to have favourite soft drink and 22% are saying to drink one within a

reasonable time. Also in case of female 38% of the females will urge to

have favourite soft drinks and 30% females will urge to have that soft

drinks. So almost there is similarity between males & females responses.

Both are saying that they feel urge for their favourite soft drink.

Immediate Reaction after Watching an Advertisement: Age Wise

REACTION Age group

15-25 yrs.(N=50)

Above 25 yrs.(N=50)

Total (N=100)

1. Urge to have that soft drink 17(34%) 8(16%) 25

2. Urge to have any soft drink 8(16%) 8(16%) 16

3. Urge to have favourite soft drink 18(36%) 21(42%) 39

4. Drinking one within a reasonable time 7(14%) 13(26%) 20


In the above table age group of 15-25 years and the above 25 years maximum

people will urge to have favourite soft drink and some of them will go for that drink

& few are saying drink one within a reasonable time.

53

(7) Influence Of The Advertisement On The Consumer Preference And

Purchase Behaviour:

To know the influence of Advertisement in terms of consumer preferences

and purchase behaviour certain statements were given to them and they

were asked to tick the important one according to their choice. For better

insight these data were analyzed on the basis of age and sex parameters.

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%


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.

54

Influence of the Advertisement on the Consumer Preference and Purchase

Behaviour: Sex Wise

STATEMENT SEX

Male

(N=50)Female (N=50)

Total (N=100)



also.

28(56%) 22(44%) 50%



4(8%) 7(14%) 11%



8(16%) 11(22%) 19%


same taste.

10(20%) 10(20%) 20%


The above table shows that 56% of the male and 44% female are saying

that liking advertisement does not mean that we like that brand and very

few i.e. 8% males and 14% females are saying that a good advertisement

can change their preference for soft drinks.16% of male & 22% of female

are there, who are saying that we purchase that soft drink whose

advertisements are more frequent. There is more %age of females than

males who are saying that a good advertisement can change their

preference for soft drink.

Influence of the Advertisement on the Consumer Preference and Purchase

Behaviour: Age Wise

55

STATEMENT Age group

15-25 yrs.(N=50)

Above 25 yrs.(N=50)

Total (N=100)



also.

25(50%) 25(50%) 50



6(12%) 5(10%) 11



9(18%) 10(20%) 19


same taste.

10(20%) 10(20%) 20


In the age group of 15-25 years 50% people are saying that liking an

advertisement does not mean that I would like the brand also. And 18%

are saying that we purchase that brand whose TV advertisements are

more frequently. And 12% are saying that a good advertisement can

change my preference and almost same is the results in case of age group

above 25 years. In which 50% of the persons are saying that liking an

advertisement does not mean that would like the brand.

(8) Consumer Preference Of Soft Drinks:

To know the consumer preference for the soft drinks respondents were

asked to name their most favourite cola drink the variation in the

preference of a cola drink was analyzed across to age group and among

to sexes.

56

Classification of Most Favorite Cola Drink:

COLA DRINK Total (N=100)

1. Coke 53%

2. Pepsi 38%

3. Other 9%


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.

Classification of Most Favorite Cola Drink: Sex Wise

COLA DRINK SEX

Male

(N=50)Female (N=50)

Total (N=100)

1. Coke 28(56%) 25(50%) 53%

2. Pepsi 18(36%) 20(40%) 38%

3. Other 4(8%) 5(10%) 9%


In the above table 56% of the male like Coke and 36% male like Pepsi and

8% went for others. And in case of female the most popular drink is Coke

among 50% of them and Pepsi is 40% and other is 10%.

Classification of Most Favorite Cola Drink: Age Wise

COLA DRINK Age group

15-25 yrs.(N=50)

Above 25 yrs.

Total (N=100)

57

(N=50)1. Coke 30(60%) 23(46%) 53%

2. Pepsi 17(34%) 21(42%) 38%

3. Other 3(6%) 6(12%) 9%


In the above table in the age group of 15-25 years 60% people like Coke and 34%

people like Pepsi and 6% people like other brands and where as in case of age

group above 25 years, 46% of the people like Coke 42% like Pepsi and 12% like

other brands.

(9) Reasons For Preference Of Cola Drinks :

Preference for a particular product is always because of some reasons. In

order to know the most important factors, respondents were given a few

choices to choose. This question was asked to see how much and

advertisement affects the preference the Cola drink. The results are

tabulated separately for Coke and Pepsi.

Reasons for Preference of Coke:

REASONS Total (N=53)

1. Taste 51(96%)

2. Word of mouth 2(4%)

3. Brand name ---

58

4. Easy Availability ---

5. Advertisement ---

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.

Reasons for Preference of Coke: Sex Wise

REASONS SEX

Male

(N=28)Female (N=25)

Total (N=53)

1. Taste 26(93%) 25(100%) 51

2. Word of mouth 2(7%) --- 2

3. Brand name --- --- ---

4. Easy Availability --- --- ---

5. Advertisement --- --- ---

In the above table out of the 28 males who like Coke. 93% of them like it

because of its taste and 7% because of word of mouth and out of female

100% like it just because of taste.

Reasons for Preference of Coke : Age Wise

REASONS Age group

15-25 yrs.(N=30)

Above 25 yrs.

(N=23)

Total (N=53)

1. Taste 28(93%) 23(100%) 51

2. Word of mouth 2(7%) --- 2

3. Brand name --- --- ---


59


In the above table in the age group of 15-25 years 93% like Coke because of

taste and 7% because of word of mouth and in age group of Above 25 years

100% like because of taste only.

Reasons for Preference of Pepsi:

REASONS Total (N=38)

1. Taste 28(74%)

2. Word of mouth 4(10%)

3. Brand name 6(16%)

4. Easy Availability ---

5. Advertisement ---

In the above table it is clear that those persons who like Pepsi, 74% out of

those like it because of its taste & 10% just because of word of mouth &

16% because of brand name.

Reasons for Preference of Pepsi: Sex Wise

REASONS SEX

Male

(N=18)Female (N=20)

Total (N=38)

1. Taste 12(67%) 16(80%) 28

2. Word of mouth --- 4(20%) 4

3. Brand name 6(33%) --- 6

60



In the above table 67% of the males like Pepsi because of the taste & 33%

because of brand name and no one is going for it because of easy

availability, advertisement etc. And 80% of the females like it because of

taste & 20% because of word of mouth.

Reasons for Preference Of Pepsi: Age Wise

REASONS Age group

15-25 yrs.(N=17)

Above 25 yrs.(N=21)

Total (N=38)

1. Taste 16(94%) 12(57%) 28

2. Word of mouth --- 4(19%) 4

3. Brand name 1(6%) 5(24%) 6



In the age group of 15-25 years 94% of respondents like it because of taste & 6%

because of brand name and above 25 years 57% of respondents like Pepsi

because of its taste,19% because of word of mouth & 24% because of brand

name.

(10) Reaction Of Consumer On Non-Availability Of Favourite Cola Drink:

To know the brand loyalty or the degree of preference of cola drink, the

respondents were asked about their reaction in case their favourite cola drink is

not available. They were given choices whether they go to another outlet or they

61

would buy non cola drink or they will buy another cola drink. The responses

obtained are tabulated below.

Reaction of Consumer on Non Availability of 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%


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.

Reaction of Consumer on Non Availability of Cola Drink: Sex Wise

REACTION SEX

Male

(N=50)Female (N=50)

Total (N=100)

1. Will go to another outlet 7(14%) 10(20%) 17%

2. Will buy other cola drink 30(60%) 26(52%) 56%

3. Will buy non cola drink 8(16%) 7(14%) 15%

62

4. Will buy any other drink 5(10%) 7(14%) 12%


In this 60% of the male and 52% of the females are saying that they

Will purchase other cola drink. 14% of males and 20% of females will go to

another outlet.16% of males and 14% of females will buy non-Cola

drink.10% of males and 14% of females will buy another drink.

Reaction of consumer on non availability of Cola Drink: Age wise

REACTION Age group

15-25 yrs.(N=50)

Above 25 yrs.(N=50)

Total (N=100)

1. Will go to another outlet 14(28%) 3(6%) 17

2. Will buy other cola drink 28(56%) 28(56%) 56

3. Will buy non cola drink 6(12%) 9(18%) 15

4. Will buy any other drink 2(4%) 10(20%) 12


In the age group of 15-25 years the 56% of the people will buy other cola drink

and 28% will go to another outlet. And 12% will buy non cola drink and 4% will

buy another drink. In case of age group above 25 years 56% will buy other cola

drink, 18% will buy non cola drink and 6% will go to another outlet and 20% will

buy another drink. So we can say that consumers in both the age groups are not

showing loyalty towards their favourite soft drink brand.

63

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

64

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 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

65

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.

66

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 15-25years & 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.

67

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.

68

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www.cocacola.com .

www.pepsi.com .

70

http://www.pepsi.com/

http://www.cocacola.com/

QUESTIONNAIRE

Personal Information

Name : _________________________

Age : _________________________

Sex : _________________________

Address : _________________________

(1) List the advertisement for the following brands of the soft drinks?

(a) Coke

_____________________________________________________

(b) Pepsi

________________________________________________________________

(2) The following slogans are associated with advertisement of different

brands of soft drinks. Identify the brands?

Slogans Brands

1. Yarran Da Tashan ________________________

2. Yeh Dil Maange More ________________________

3. Sachin Ala Re ________________________

4. World Cup Ke Shikari ________________________

5. Sabka Thanda Ek ________________________

6. Yeh Pyaas Ha Badi ________________________

7. Thanda Matlab Coca Cola ________________________

71

8. My can ______________________

9. Coke utha le dhoom macha le ________________________

10 Ye hai youngistan meri jaan ________________________

11. Jashn Mana Le ________________________

(3) Tick the appropriate brand with respect to model of that brand?

Model Coke Pepsi None

1. Aamir Khan _____ _____ ____

2. Shahrukh Khan _____ _____ _____

3. Akshay Kumar _____ _____ _____

4. Aishwaray Rai _____ _____ _____

5. Sania Mirza _____ _____ _____

6. Sachin Tendulkar _____ _____ ______

7. Amitabh Bachhan _____ _____ ______

(4) Which colour you will associate with?

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) After watching the advertisement what is your immediate reaction?

1. Urge to have that

72

Soft drinks

2. Urge to have any

Soft drink

3. Urge to have favorite

Soft drink

4. Drinking one within

a reasonable time.

(7) 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.

(8) Which is your favorite cola drink?

Coke Pepsi

(9) Give the reason for preference of your favourite cola drink?

1. Taste

2. Size

3. Advertisement

4. Easy Availability

(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

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Documents

Consumer Buying Behaviour of Advertisement on Soft Drinks