A

PROJECT ON
Measurement of Advertising Impact
On Coca Cola
 EXECUTIVE SUMMARY
The problem statement under consideration is “to study the impact of chota coke
ads on its sales”. Coke is a product very commonly consumed by us. Coke’s
advertising has always been very popular and important point is how much has
this advertisement aided in improving its sales. This is the basic aim for taking up
this project.

Recently coke has adopted more indianisation to its ads with “paanch matlab
chota coke” and introduction of chota coke (Rs 5). Therefore this study is based
on finding the impact of these ads on the company sales. The project is important
with respect to advertising agencies, students for future research and companies
(in terms of importance of an ad in bringing sales to the company).

The literature survey includes official coke statistics, newspaper and magazine
articles and the websites. I have used books on research and advertising
management by authors like Roger Barton, Frank Jefkins and Philip Kolter. The
target population has been that of students (age 15-25 yrs) of Mira road. Pilot
studies, followed by survey method (self-administered questionnaire) have been
used to collect the data.

The analysis has been done using SPSS. The important findings of the survey
are:
1. The maximum coke consumers drink coke 1-5 times in a month.
2. 97% of the respondents consumed coke.
3. All the respondents have seen the ad.
4. Advertisements of chota coke have been viewed maximum on TV and
hoardings
5. Aamir khan is the most preferred brand ambassador

2
 6. 69% of the people felt like buying coke after watching the Aamir khan
chota coke commercial.
7. 200 ml (Chota Coke) is the most preferred quantity of consumption.
8. Loyal customers constitute 32% of the respondents
9. We have accepted our null hypothesis.( the proportion of coke consuming
population has increased after watching the commercial)

Thus i can conclude that my study has been successful and the ads have made a
definite impact on its sales and people have indeed started consuming more of
coke after watching the commercial.

The coke ad therefore has the ingredients of successful advertising. It has the
creativity to attract and win the attention, interest and eventually the action of
consumers by using innumerable media leading to higher sales and customer
value.

3
 CONTENTS
Particulars Page no.
Problem statement 7
Research objective 8
Literature review 11
Sampling design 24
Research design 25
Data analysis 29
Conclusion 40
Appendix 41
Bibliography 44

PROBLEM STATEMENT

4
To find out if the Chota coke advertisement had an
impact on the sales of coke.

RESEARCH OBJECTIVE

5
TO STUDY THE IMPACT OF THE NEW “CHOTA COKE ADS”
ON ITS SALES

IMPORTANCE OF THIS PROJECT

6
 This project has grave importance in terms of learning as well as being a
base for future research endeavors. First of all it is the introduction to the world of
advertising, its impact, its relation to sales and overall contribution to marketing.
Secondly, it teaches various methodologies used by MNCs like Coca-Cola for
growth of its sales. Third, it shows how a company needs to change its strategy
when it enters a foreign market.

The project is a learning for me in my development towards becoming masters in

business management. The various hurdles as well as supporting pillars display
a valuable opportunity to learn from it and apply it in my practical life for a bright
future. Lastly it teaches me the importance of the advertising.

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REASONS FOR SELECTING THIS PROJECT:

Coke is a product very commonly consumed by us. Coke’s advertising has

been always very interesting but the important point is how much has this ad
aided in improving its sales. This is the basic aim for taking out this project.

Secondly, it makes me aware about various steps of research

methodologies. Experience is the best teacher and i will know about the
intricacies of data collection, conducting research and presenting the findings in a
lucid manner.

I can very easily relate to the product since we I myself is a consumer of

coke and as a MNC its policies have always been innovative and differentiating.
This prompted me to take a company like Coke.

Being marketing students, advertising is one of the important sections in

marketing. I am genuinely interested in advertising and i would like to know how
much role advertising plays in the sales generation of the company.

The advertisement “Paanch matlab Chota Coke” has been very popular
among the masses and the classes alike. This was the reason why i selected this
ad because it covered two factors: The price of Rs. 5 and introduction of 200ml
bottle with Amir Khan to promote it.

Recently, coke has adopted more indianisation with its “thanda matlab
Coca-Cola “ad campaigns and the introduction of Chota coke (Rs. 5/-).
Therefore, the study is based on finding the impact of these ads on the company
sales.

8
 LITERATURE SURVEY

PRIMARY SOURCES:

 Official coke statistics

 Periodicals

 Internet web-sites

SECONDARY SOURCES:

 BOOKS:

1. Handbook of advertising management by Roger

Barton

2. Advertising by Frank Jefkins

3. Marketing management by Philip Kotler

 NEWSPAPERS:

1. The Times of India

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 2. The Economic Times
LITERATURE SURVEY

There is no doubt that any one would have missed the ’’Paanch matlab
coca cola’’ punch line by AAMIR Khan or ’’Thanda Matlab Coca Cola’’. The Coke
people have popularized their product with these wonderful punch lines.

Now in the remotes of India people actually are asking for THANDA of Rs.
5/-. This punch line is used everywhere nowadays as it is very catchy. The line
“Yeh kitne ke bara bar hoga” is used a lot with teenagers for fun among
themselves.

But in spite of this absolutely cool commercials is the sale of Coke rising in
the market is the question right! With these pesticides problem the demand for
cold drinks have decreased. And it should! People should start thinking about
their health. Initially it was discovered that these cold drinks have some thing that
dissolves a blade and many more thing.

All said and done people are still drinking these drinks and will keep on
drinking. And the commercial is very cool.

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BASIC INTRODUCTION TO ADVERTISING:

Advertising belongs to the modern industrial world, and to those

countries which are developing and becoming industrialized. In the past the shop
keepers or stall holders had only to show and shout their goods to passer-by,
advertising as we know it now hardly existed.

The need for advertising developed with the expansion of population and the
growth of towns, mass production in factories, transportation development, and
popular newspapers in which to advertise. Advertising grew with the development
of media, such as the coffee-house newspapers of the seventeenth century. The
large quantities of goods being produced were made known by the way of
advertisements to customers who lived far from the placed of manufacture.

The modern world depends upon advertising. Mass production

requires mass consumption which in turn requires advertising to the mass market
through the mass media. The Institute of Practitioners in advertising definition
says:’ advertising presents the most persuasive possible selling message to the
right prospects for the product or service at the lowest possible cost.’

HEART OF ADVERTISING: These two reasons provide an insight into the heart
of advertising and the special skills involved. Creativity to attract and win the
attention, the interest and eventually the action of consumers, and the most cost-
effective choice and use of innumerable media, are the characteristics of
successful advertising.

TYPES OF ADVERTISEMENTS:

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 Advertising serves many purposes and many advertisers, from the
individual who places a small classified advertisement in the local newspaper to
the big spender who uses networked TV to sell popular brands across the globe.
There are primarily seven main categories of advertising, namely consumer,
business-to-business, trade, retail, financial, direct response and recruitment.
The FMCGs (fast moving consumer goods) advertising is called the ‘consumer
advertising type’. Thus, Coca-cola ads are an example of consumer advertising.

When planning an advertising campaign it is necessary to define

the social grade or grades of likely buyers, and to select the media which will
reach them in the largest numbers at the lowest cost. In case of consumer
advertising the primary media are the presses, radio, television, outdoor and to a
limited extent cinema, supported by sales literature, exhibitions and sales
promotions.

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HOW TO MEASURE SALES EFFECTIVENESS OF ADVERTISING

Advertising effectiveness means different things to the groups responsible

for different effects. To the writers or artist effective advertising is that which
reaches prospective buyers a sufficient number of times. To the advertising or
marketing managers effective advertising is that which, together with other
marketing forces, sells his brand or product. To the general manager, effective
advertising produces a return on his firm’s expenditure.

In fact, advertising must achieve a sufficient combination of all the four

goals, delivering message to the right audience, thereby creating sales at a profit.
Some advertisers have set communication and audience goals, and measured
copy and media effects, but few advertisers have set rupee goals and measured
sales and profit effects.

Management’s belief that advertising measurement is difficult or

impossible is also changing, largely as the result of increasing number of studies
which have obtained relatively unambiguous and actionable measures of
advertising, not only in terms of audience and communication, but also in terms
of sales and profit.

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THE DILEMMA: COMMUNICATION OR SALES?

The most debatable issue in advertising is whether advertising should be

evaluated according to its effect upon communication (awareness of brand,
attitude towards the brand, knowledge of the advertising message) or in terms of
sales. Communication message have been largely defended largely by agencies,
accustomed as they have been to using these measures to make rapid decision,
alternative forms of copy or media. Sales measures have been advocated by
large advertisers for whom small percent increase in advertising sales
efficiency would more than pay for the research required. There are objections
that sales are a result of many factors over which they have no control: price,
distribution or product quality. They fail to note that communication also results
from such factors.

While the argument still simmers, many advertisers and agencies have
agreed that measures of both communication and sales are necessary. Without
the sales measure, no guidance can be had to adjust the budget and its locations
towards demonstrably more profitable combinations. Without communication
measures, no guidance can be had to improve the advertising itself towards
provably motivating copy and media. Thus agencies measure communication
effects in the hope of improving the copy and media decisions, while advertisers
measure sales in the hope of improving their budgetary decisions.

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 TECHNIQUES FOR MEASURING ADVERTISING
EFFECTIVENESS

There are four methods for measuring advertising effectiveness

1. Theme or platform research
2. Copy research
3. Media research
4. Sales research
We have selected sales research for measuring advertising effectiveness
because:
Knowledge of motives, copy or media will not tell the advertiser what, if
anything, his advertising has done to influence the sales of his product. For
this information he must conduct sales research, which isolates the
contribution his advertising expenditures, makes to sales.

Sales research
Three kinds of evidence are cited to link sales to advertising expenditures.
1. The most frequently practiced is the correlation of expenditure with sales.
This is important for those companies for whom sales are wholly
dependent on advertising
2. Also widely employed are correlations of reports of advertising exposure
with reports of purchase. This approach is accepted by most segments of
the advertising fraternity, but it is also questionable how well cause and
effect are measured.

Experimental method: a third approach and one that is currently in limited but
growing use in advertising-sales research is the experimental method. It requires,
among other things, that extraneous influences on sales be dealt with; that
controllable factors be controlled; uncontrollable but measurable factors be
measured and accounted for statistically; and enough experimental units be in
each treatment to permit accurate estimates of their variability.

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SALES REPORT OF COKE FROM THE OFFICIAL STATISTICS

Coca-Cola India said on Wednesday it has reduced overall costs by up to

40 per cent per case over the last three years and that the launch of smaller Rs 5
pack has reaped rich dividends in terms of sales.

The launch of Chota Coke was in line with the strategy of reducing costs
and aggressively targeting the vast Indian rural market, Coca-Cola president
Sanjiv Gupta said here, adding this strategy has increased sales.

“Our rural market focus has resulted in 68 per cent increase in rural
consumers. In fact, in 2003 over the previous year, 80 per cent of all new
consumers of the company are from rural markets," he said.

Gupta said the company had been working to reduce input costs that lay
largely in transportation and supply chain management, especially for the rural
markets.

"We have reduced costs by 30-40 per cent per soft drink case over the last
three years. Part of the cost reduction exercise included light-weight bottle and
crate introduction, which helped cut down freight costs... Otherwise the five rupee
price point would not have been successful."

Mr.Gupta said currently almost 30 per cent of Coca-Cola's sales in India

were in rural market.

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The Chota coke ads were launched in 2003 in India. The ads were an instant hit
with the media and the consumers. The key feature of this ad were

1) Projecting AAMIR Khan as the brand Ambassador.

2) Emphasis on Paanch (Price of Chota coke)

3) Ad covering the different regions and interiors of India. There were Mumbai,
Punjabi, Hyderabadi, Nepali and Bengali versions of this ad to generate general
appeal across the country.

4) The ad also stressed on “Thanda matlab Coca-Cola” so that the majority, Hindi
speaking population could relate to the ad. In India “thanda” is a generic term for
soft drinks. Through this punch-line the company meant that whenever the
consumer thinks of a soft drink, he thinks of Coca- Cola.

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HIGHLIGHTS IN THE HISTORY OF COCA-COLA TELEVISION ADVERTISING

The first television ad created for The Coca-cola Company was produced in
conjunction with a television special in 1950. The sponsorship of this program
and its advertising were both by the D’Arcy Agency. D’Arcy had been the
advertising agency for the Coca-Cola Company since 906, when it first
persuaded the company to begin a newspaper campaign. It created memorable
slogans for the company like ‘the pause that refreshes’.

Television advertising was initially an experimental medium for Coca-Cola and

D’Arcy. Both struggled to develop a strategy to reach consumers effectively at a
time when few cities had television stations. One approach was through
sponsored programs that offered the opportunity for the company to expand
relationships with performers from its radio programming. In 953, D’Arcy
developed three basic types of television ads. In one type, the company offered
station-identification slides that aired for up to twenty seconds. These generally
featured a piece of advertising art with the station call letters, accompanied by a
voice-over announcement. D’Arcy also created its first live-action motion-picture
films and one-minute versions.

THE McCann Ads: In 1956, the company’s advertising account was transferred
to McCann-Erickson. The number of ads and their production values rose
dramatically from 1956-1963. In 1963, McCann hit its stride with a campaign that
proved to have worldwide appeal, ‘Things GO Better With Coke’. By design,
these words also translated readily into almost any language allowing the slogan
to generate global appeal.

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Things Go Better With Coke
McCann also began experimenting with a new television technology, colour
advertisimg. The first colour television ad for the company was introduced in
1964 and was called the ‘refrigerator man’.

Throughout the 1960s, advertising for Coca-Cola on both radio and television
reflected the changing forces in society. The ‘Things go Better With Coke’
campaign was adapted to the youth market by allowing a number of popular-
music artists to modify and perform the song.

In 1976, the company also introduced the new Coke campaign, touting the brand
as the soft drink for all occasions. Aimed at the young and young-at-heart, the
new campaign, ‘Coke adds Life to’ was designed to show viewers that Coca-Cola
added simple enjoyment to life. It emphasized on refreshment and tried to show
Coke as the perfect accompaniment to food, fun and leisure. The campaign
highlighted the soft drinks’ role in many situations common to consumers around
the globe and the ad’s theme was adapted to appeal to a worldwide audience.

After the ‘Coke adds Life’, another campaign was created that further
emphasized there reliability and reward in drinking coca-cola. It was called ‘Have
a Coke and a Smile’. In 1979, one of the most famous Coke commercials, Mean
Joe Greene was created. This ad won the 1979, CLIO award in the world’s
largest advertising awards competition.

The New Coke:

In early 1982, Coca-Cola launched a new ad campaign ‘Coke is It!’ with the
emphasis on the product’s qualities of taste and refreshment. It played on themes
of previous ad campaigns stressing the quality, the enjoyment, and especially the
anticipation of drinking a coca-cola.

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Two tastes & two campaigns
In 1985, the company brought out a ‘new coke’ along with the old one, being
called the traditional “Coca-cola classic’. They needed two distinct ad campaigns
for the two products. In 1986, the ‘Catch the Wave’ campaign for the new taste of
Coke strove to be youthful, leading-edge and competitive. For the Coca-Cola
classic, the ‘Red, White and You’ campaign emphasized the brand’s broad
appeal and the emotional attachment it generated. The campaigns were aimed at
a broad audience: all soft drink consumers aged twelve and above, with an
emphasis on the 18-34 age groups.
The ‘Catch the Wave’ campaign for new Coke, created by McCann-Erickson,
aimed to connect with an emerging youth-oriented target audience. The
contemporary nature of the ad sent the message: to drink the ‘in’ taste, to identify
with the ‘in’ image, drink Coca-Cola.

988 saw a new advertising campaign, “can’t Beat the Feeling”, which aimed to
show Coca-Cola as an integral and natural part of people’s lives in everything
from family to youthful fun. The ads featured upbeat music and played on broadly
appealing themes such as music, love and family. The campaign was launched
in nearly 100 countries marking the first ad campaign for the company outside
USA in six years.

THE 1990’s
In 1993, the company made a dramatic shift in its advertising by introducing the
‘Always Coca-Cola’ campaign. The campaign was a diverse one, with an initial
run of twenty-seven commercials designed to appeal to specific audiences. The
ads ran around the world and included a variety of technical innovative
approaches, such as computer animation.

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The polar bear was a considerable success and went on to star in six
commercials for Coca-Cola including two ads for the 1994 Olympic Games.

INTERNATIONAL approaches at the Millennium

Numerous other ads in the ‘Always Coca-Cola’ campaign were introduced over
the next few years. Appealing to people’s enjoyment of the cola taste and the
refreshment it provides, the commercials, used a variety of approaches-humour,
music, stories, animation and even personalities to build an emotional connection
between Coca-Cola and its consumers.

The company launched its new international ad campaign in Jan 2000. Using the
slogan’ Coca-Cola Enjoy’ the campaign was designed to appeal to people all
over the world by persuading them that Coke adds a touch of magic to the
special moments in their lives .Believing that Coke is one of life’s most common
and affordable pleasures in many countries, the company conceived of the new
slogan as an invitation to consumers throughout the world to enjoy Coke and
life’s simple pleasures. The theme was global, but the campaign used local
resources in different countries to create individual commercials relevant to local
tastes and culture. Its creators also developed a melody adaptable to a wide
range of musical styles. Even as the campaign began there were 40 versions of
the tune set in forty languages.

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 SAMPLING DESIGN
Target population

Age: 15-25 years

Occupation: students

Location: Mira Road

Sample design

Sampling frame: attendance list from office

Sampling method: probability sampling systematic sampling

Actual sampling units:

1. Students of NLDIMSR
2. Students of Dalmia School
3. Students of Royal College

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 RESEARCH DESIGN

Exploratory research:
Pilot studies

Type of research used for the project:

Causal research

Basic research:
Survey method

Research instrument:
Self administered questionnaire

Contact method:
Direct/ personal
Sample size:
65 respondents

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 DATA COLLECTION

Break-up of sample

20%

31%

24
 HYPOTHESIS STATEMENT

HO: After watching the Ad, people have bought “Chota Coke”
H1: After watching the Ad, people didn’t buy”Chota Coke”

25
 Calculation of sample size

Let
p= probability of people who bought Chota coke after watching the ad

q= probability of people who didn’t buy after watching the ad

n= number of people surveyed for the pilot study

E=error rate (we are taking 90% confidence interval)

After conducting a survey among 10 prospects following was the result

n=10
p=0.6
q=0.4

Using the formula

N = Z2 x p x q
E2

N = 1.642 x 0.6 x 0.4

0.12

N = 65

Thus the sample size is 65 respondents

26
 DATA ANALYSIS

1. Representation of data using graphical tools like bar charts and pie charts

2. Statistical analysis of data using SPSS 10.0

27
DATA ANALYSIS

ANALYSIS OF MEDIA USED FOR ADVERTISING CHOTA COKE

70

65
60
NUMBER OF RESPONDENTS

50

40

30

20 22

15 15
10 13

0
ad in tv ad in hoardings ad in internet
Ad in new spaper ad in magazines

MEDIA

The above bar chart shows the importance of TV and hoardings as an effective
media for communication of the advertising in the most effective way.

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 PREFERNECE OF COKE AMBASSADORS

60

55
50
NUMBER OF RESPONDENTS

40

30

20

10 12

0 3
AAMIR KHAN VIVEK OBEROI
AISHWARYA RAI HRITIK ROSHAN

COKE AMBASSADORS

The above bar chart shows that people have accepted Aamir khan as well as
Aishwarya Rai as the most preferred ambassadors. Infact Aamir has
outnumbered all the other potentional ambassadors.

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 FREQUENCY OF COKE CONSUMED IN A MONTH

Frequency Percent Valid Percent Cumulative

Percent
Valid 0 14 21.5 21.5 21.5
1-5 24 36.9 36.9 58.5
6-10 6 9.2 9.2 67.7
10-20 17 26.2 26.2 93.8
>20 4 6.2 6.2 100.0
Total 65 100.0 100.0

CONSUMPTION OF COKE
40

37

30
PERCENTAGE

26

20 22

10
9
6

0
0 1-5 6-10 10-20 >20

FREQUENCY OF COKE CONSUMED IN A MONTH

I have found from the survey that largely people consume coke 1-5 times in a
month. Thus if coke has reduced the bottle quantity it can definitely increase the
frequency of consumption.

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 FELT LIKE BUYING CHOTA COKE AFTER WATCHING THE AD

Frequency Percent Valid Cumulative

Percent Percent

Valid yes 45 69.2 69.2 69.2

no 20 30.8 30.8 100.0
Total 65 100.0 100.0

FEEL LIKE BUYING COKE AFTER

WATCHING THE AD
80

69
60
PERCENT %

40

31
20

0
yes no

RESPONSE

The above bar chart shows the impact of the ad on minds of people as this
shows how strongly has it clicked with the public who have watched the ad and
have been influenced to buy coke.

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 BUY COKE

Frequency Percent Valid Cumulative

Percent Percent

Valid Yes 43 66.2 66.2 66.2

No 22 33.8 33.8 100.0

Total 65 100.0 100.0

PURCHASE OF COKE
AFTER WATCHING THE AD
70
66
60

50
PERCENT %

40

30 34

20

10

0
yes no

RESPONSE

This is very important factor because it actually shows if the ad has been
successful in bringing sales to the company.

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 CONSUME COKE

Frequency Percent Valid Cumulative

Percent Percent

Valid yes 63 96.9 96.9 96.9

no 2 3.1 3.1 100.0
Total 65 100.0 100.0

CONSUME COKE

120

100
97

80
PERCENT %

60

40

20

0
yes no

RESPONSE

This shows that the respondents consume coke.

33
 QUANTITIES IN WHICH COKE IS CONSUMED

2L
7 / 9%

1.5 L
8 / 10%

300 ML
16 / 20% 200 ML
51 / 62%

This pie shows that people prefer to consume more in 200ml

34
 PERCENTAGE OF LOYAL
CUSTOMERS

20, 32%
NOT AFFECTED
AFFECTED
43, 68%

There have been many respondents who have been consuming coke and it does
not matter to them if they watch the ad or not, they are loyal customers who stay
with the product irrespective of the ad and the company will definitely like to bring
more and more customers into this bracket.

35
IMPRESSION LEFT IN THE MINDS OF CONSUMERS OFTHE AD

OTHERS
12.00 / 18.2%

PAANCH
DIALOGUE 27.00 / 40.9%

7.00 / 10.6%

HUMOUR
10.00 / 15.2%
PRICE
10.00 / 15.2%

There are many things that remain in a persons mind after watching the ad. This
shows how many desired effects have been successful.

36
Chi-Square Test

BUY COKE

Observed N Expected N Residual

Yes 43 41.2 1.8

No 22 23.8 -1.8
Total 65

TEST STATISTICS

BUY COKE
Chi-Square .215

Degree of freedom 1
Asymp. Sig. .643

Note: 0.215 < 0.643. Thus we are accepting our NULL HYPOTHESIS that the
consumption has indeed increased after the advertisement

37
 CONCLUSION

1. Our study has been a successful one. There has been a definite impact of
Chota Coke ads on its sales.
2. Coke has made a right choice by selecting Aamir Khan as its brand
ambassador as it has clicked a right chord with the target consumers of
age group 15-25.
3. The media has been successful in creating awareness about Chota Coke
and this will have a long term effect on its future sales.
4. Advertisements can be effective medium if it is used with the proper tools
and made keeping in mind target audience.

38
APPENDIX

39
 Questionnaire
1. Do u drink soft drinks?

YES NO

2. Do you consume coke?

YES NO

3. Where have you seen the coke ads?

TELEVISION NEWSPAPER

HOARDINGS INTERNET

MAGAZINES

4. Which coke ads are your favourites?

AAMIR KHAN AISHWARYA RAI

HRITHIK ROSHAN VIVEK OBEROI

5. Have you seen the new Aamir khan ads?

Yes No

6. What is the first thing that comes to your mind when you see those ads?

PAANCH PRICE

40
 AAMIR KHAN HUMOUR

DIALOGUES OTHERS

7. After watching the ads, did you feel like going out and buying the chota coke?

YES NO

8. How often do you consume coke?

0 8-10 TIMES 11-20 TIMES

1-5 TIMES GREATER THAN 20

9. In what quantity do you consume coke?

200 ML 300 M

1.5 L 2L

10. Have you started buying chota coke after watching the Aamir Khan ads?

YES NO

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 BIBLIOGRAPHY

1. Advertising hand book – By Roger Barton

2. Advertising – By Frank Jefkins
3. Marketing management -By Philip Kotler
4. Websites visited: www.cocacola.com
www.indiainfoline.com
www.economictimes.com
5.SPSS for Beginners – Vinod Gupta

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