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A PROJECT REPORT

ON
Study of Advertisement Impact
On the
Consumer Preferences towards Soft Drinks

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


OF BUSINESS ADMINISTRATION (B.B.A)

Batch (2013-2016)
BY
ABHIMANYU
UNIVERSITY ROLL NO. – 11207

GOSWAMI GANESH DUTT SANATAN DHARAM COLLEGE RAJPUR


(PALAMPUR), DISTT. KANGRA (H.P.)
DECLARATION

I, "ABHIMANYU”, hereby declare that the work presented herein is genuine work done originally by me
and has not been published or submitted elsewhere for the requirement of a degree programme. Any
literature, data or works done by others and cited within this dissertation has been given due
acknowledgement and listed in the reference section.

ABHIMANYU
TO WHOME IT MAY CONCERN

This is to certify that the project report titled “Impact Of Advertisement on the Consumer Preferences
towards Soft Drinks carried out by Mr. Abhimanyu S/O Shri Arvind Kumar Sood has been
accomplished under my guidance & supervision.

His dissertation represents his original work and is worthy of consideration for the award of the degree
of Bachelor of Business Administration
ACKNOWLEDGEMENT
Table of Contents
CHAPTER-1
1 Introduction No.
1.1 Indian Beverages Market
1.2 Study of growth of soft drink market
1.3 Advertising
1.4 Different Medium of Advertising
1.5 Importance of Advertising

CHAPTER-2
2 Literature Review
2.1 Review of Literature

CHAPTER-3
3 Objectives , Need and Scope of Study
3.1 Objectives
3.2 Need of Study
3.3 Scope of Study

CHAPTER-4
4 Research Methodology
4.1 Research Design
4.2 Tools of Investigation
4.3 Statistical tools used

CHAPTER-5
5 Data Analysis and Interpretation
5.1 Data Analysis

CHAPTER-6
6 Findings, Conclusion and Recommendations
6.1 Findings
6.2 Conclusion
6.3 Recommendations
6.4 Limitation of the study
6.6 Bibliography
6.7 Appendix
LIST OF FIGURE

SR. NO. FIGURE NAME PAGE NO.


1 Drink Soft Drinks
2 Consumption
3 Brands
4 Choice of Brands
5 Advertising Effects Choice of
Brands
6 Medium of Advertisement
7 Recall of Advertisement
8 Advertisement Aspects
9 Celebrity Endorsements
10 Advertising Perception
11 Aided Recall Test
Executive Summary
It is well known fact that people in India do not just watch their favorite sport, film or serial, many are
watching to see the commercials. Regardless of how good the game was, there are usually a few ads that
people talk about the next day. But one thing that people may not think about is how trustworthy an
advertisement may be and, at a higher level, how much trust one can, or cannot, place in an industry’s
advertisements from soft drink companies are most effective.

As we know these days soft drink companies are advertising their product so much on televisions and
are spending so much money on the celebrities to endorse their products. In soft drink industry the cost
of advertising is nearly 35% of the total cost. For increasing the sale of their product they are taking film
stars, cricket stars in their advertisements of their products which is again very costly. Therefore, I take
this is as opportunity to study different aspects of Advertisements, their impact on consumer perceptions
etc.

Therefore I choose “Advertising Impact on consumer preference towards soft drinks” as my research
topic.

The main objective of this research was to study the following aspects of the advertisements.

 To study the impact of the Advertisement on the brand preference of consumers.

 To study the consumer perception regarding the most effective media for advertisements.

 To study the impact of the celebrity endorsement on the consumer buying behavior.

Need of the study:


As we know that soft drink companies are spending a lot of money on their Advertisements, celebrities
etc. About 35% of the total cost is Advertising cost for a soft drink company. Therefore advertising is an
important aspect of the companies to promote their product, and generate sales. It is also important for
the companies to know whether their advertisements are effective or not, In order to check the impact of
the advertisements, I have taken this as our research problem.

The scope of this study, as far as the area is concerned, is limited to Baijnath city only.

This research is a descriptive research, Primary data was collected from 150 respondents by using a
questionnaire through convenience sampling and secondary data was collected through websites articles
etc.

The major findings of the report are that the advertisement has an impact on the buying behavior of the
customers. TV is the first choice of people for information searching followed by Internet as compared
to different kind of media.

Celebrity endorsement has a significant impact on the consumers and affects their perception towards
the brand. It was also found that various aspects of advertisements are remembered by the people like
punch line, celebrity, themes etc. Also it was observed that people were able to recall the brand to which
the punch line is associated by using aided recall question.
INDIAN BEVERAGE MARKET
The size of the Indian food processing industry is around $65.6 billion, including $20.6 billion of value
added products. Of this, beverage industry is valued at $230 billion; bread and biscuit at $1.7 billion;
chocolates at $73 million and ice creams at $188 million.

The size of the semi-processed/ready-to-eat food segment is over $1.1 billion. Large biscuits &
confectionery units, Soya processing units and starch/glucose/ producing units have also come up,
catering to domestic and international markets.

The three largest consumed categories of packed foods are packed tea, biscuits and soft drinks. The
Indian beverage industry faces over supply in segments like coffee and tea. However, more than half of
this is available in unpacked or loose form. Indian hot beverage market is a tea dominant market.
Consumers in the different parts of the country have heterogeneous tastes. Dust tea is popular in
southern India, while loose tea is preferred in western India. The urban –rural split of the tea market was
51:49 in 2000. Coffee is consumed largely in the southern states. The size of the total packaged coffee
market is 19,600 tones or $87 million.

The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or
$1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per
month during peak season to15 million during off-season. The market is predominantly urban with 25%
contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Mineral
water market in India is as 65 million crates ($50 million). On an average, the monthly consumption is
estimated at 4.9 million crates, which increases to 5.2 million during peak season.

INDIAN BEVERAGE MARKET

SHARE OF VOLUME BY CATEGORY

2002-2007

Segment 2002 2003 2004 2005 2006 2007


Milk 10.3% 10.4% 10.5% 10.6% 10.8% 11.1%
Tea 6.3% 6.4% 6.5% 6.6% 6.4% 6.5%
Bottled 0.2% 0.2% 0.3% 0.4% 0.4% 0.4%
water
Coffee 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
Carbonated 0.2% 0.2% 0.2% 0.1% 0.2% 0.2%
soft drinks
Distilled 0.1% 0.1% 0.1% 0.1% 0.1% 0.2%
Sprits
Beer 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Fruit 0.0% 0.0% 0.1% 0.1% 0.2% 0.2%
beverages
Wine -- 0.0% 0.0% 0.1% 0.1% 0.1%
STUDY OF GROWTH OF SOFTDRINKS MARKET

SOFT DRINKS
Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi and
Coca cola dominating the market. The entire part of the drink is based on its artificial flavors and
sweetening agents as no natural juice is used.

MARKET
 Cola products account for nearly 61-62% of the total soft drinks market.
 Two global major’s Pepsi and Coke dominate the soft drink market.
 NCAER survey says 91% of soft drink in the country is in the lower, lower middle and upper
middle class people.
 The market is worth around Rs. 5000 crores with growth rate of around 10-15%.
 The production as soft drinks has increased from 5760 million bottles in 1998-1999 to 9783
million bottles in 2002-2008 industry sources.
 Growth market this year is expected to be 10-15% in value terms and 20-22% in volume terms.

However, the market for carbonated drinks is stagnating and not growing as expected.

HISTORY OF SOFT DRINKS


The first marketed soft drinks (non-carbonated) appeared in the 17 th century. They were made from
water and lemon juice sweetened with honey. In 1676, the companies de Limonadiers of Paris was
granted monopoly for the sale of lemonade soft drinks.

Vendors should carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty
Parisians.

In 1767, the first drinkable manmade glass of carbonated water was created by an Englishmen by Dr.
Joseph Priestley. Three years later, the Swedish chemist Torbern Bergman inventing a generating
apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman’s apparatus
allowed imitation mineral water to be produced in large amounts.

In 1810, the first U.S. patent was issued for the “means of mass manufacture of imitation mineral
waters” to Simons and Rundell of Charleston, South Carolina. Carbonated beverages did not achieve
great popularity in America until 1832, when John Mathews invented his apparatus for making
carbonated water. John Mathews mass manufactured his apparatus for sale to others. The drinking of
either natural or artificial mineral water was considered a healthy practice. American pharmacists, who
were selling most of the mineral waters, started to add medicinal and other flavorful herbs to the
unflavored beverage. The early drug store with their soda fountains become a popular part of American
culture. Customers wanted to take the drinks home with them and the soft drinking bottling industries
grew from the consumer demand.
GENERATION OF SOFT DRINKS
 In 1798: The term “soda water” was introduced.

 In 1835: The 1st bottled soda water in U.S.

 In 1886: Dr. John S Pemberton invented coca cola in Atlanta, Georgia.

 In 1898: Pepsi is invented by Caleb Bradham.

 In 1957: The 1staluminium can use.

 In 1959: The 1st diet cola sold.

 In 1970: Plastic Bottles are used for soft drinks.

ADVERTISING

DEFINITION OF ADVERTISING:

The word advertising originates from a Latin word advertise, which means to turn to. The dictionary
meaning of the term is “to give public notice or to announce publicly”.

Advertising may be defined as the process of buying sponsor-identified media space or time in order
to promote a product or an idea.

The American Marketing Association, Chicago, has defined advertising as “any form of non-
personal presentation or promotion of ideas, goods or services by an identified sponsor”.

What Advertisement is?


Advertising is a mass communicating of information intended to persuade buyers to buy product
with a view to maximizing a company’s profits.

The elements of advertising are:

I. It is a mass communication reaching a large group of consumers.

II. It makes mass production possible.


i. It is a commercial communication because it is used to help assure the advertiser of a long business
life with profitable sale.
ii. Advertising can be economical, for it reaches large groups of people. This keeps the cost per
message low.
iii. The communication is speedy, permitting an advertiser to speak to millions of buyers in a matter of
few hours.
iv. Advertising is identified communication. The advertiser signs his name to his advertisement for the
for the purpose of publicizing his identity.

What is Included in Advertising?

I. The information in an advertisement should benefit the buyers. It should give them a more
satisfactory expenditure of their rupees.
II. It should suggest better solutions to their problem.
III. The content of the advertisement is with in the control of the advertiser, not the medium.
IV. Advertising without persuasion is ineffective. The advertisement that fails to influence
anyone, either immediately or in the future, is a waste of money.
V. The function of advertising is to increase the profitable sales volume. That is, advertising
expenses should not increase disproportionately.

DIFFERENT MEDIUMS OF ADVERTISING

  Newspapers and magazines.

 On radio and television broadcasts.

 Circular of all kinds, (whether distributed by mail, by person, through tradesmen, or by inserts in
packages).

 Dealers help materials.

 Window display and counter – display materials and efforts.

 Store signs, motion pictures used for advertising.

 Novelties bearing advertising messages and signature of the advertiser,

 Label stags and other literature accompanying the merchandise.

Advertising Objectives
Each advertisement is a specific communication that must be effective not just for one customer, but for
many target buyers. This means that specific objectives should be set for each particular advertisement
campaign. Advertising is a form of promotion and like a promotion; the objectives of advertising should
be specific. This requires that the target customers should be specifically identified and that the effect
which advertising is intended to have upon the consumer should be clearly indicated. The objectives of
advertising were traditionally stated in terms of direct sales. Now, it is to view advertising as having
communication objectives that seek to inform persuade and remind potential customers of the worth of
the product. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to
the promotional message. Advertising objectives serve as guidelines for the planning and
implementation of the entire advertising program.

The basic objectives of an advertising program may be listed as below:


I. To communicate with consumers.
II. To retain the loyalty of present and former consumers. Advertising may be used to reassures
buyers that they have made the best purchase, thus building loyalty to the brand name or the
firm.
III. To increase support. Advertising impliedly boost the morale of the sales force and of distributors,
wholesalers, and retailers; it thus contributes to enthusiasts and confidence attitude in the
organizational.
IV. To project an image. Advertising is used to promote an overall image of respect and trust for an
organization. This message is aimed not only at consumers, but also at the government,
shareholders, and the general public.

IMPORTANCE OF ADVERTISING
Generally, advertising is a relatively low cost method of conveying selling messages to numerous
prospective customers. It can secure leads for salesmen and middlemen by convincing readers to request
more information and by identifying outlets handling the product. It can force middlemen to stock the
product by building consumer interest. It can help train dealers salesmen in product uses and
applications. It can build dealers and consumer confidence in the company and its product by building
familiarity. Advertising is to stimulate market demand. While sometimes advertising alone may succeed
in achieving buyer acceptance, preference, or even demand of the product, it is seldom solely relied
upon. Advertising is efficiently used with at least one other sales method, such as personal selling or
point-of-purchase display, to directly move customers to buying action.

Advertising has become increasingly important to business enterprises – both large and small. Outlay on
advertising certainly is the voucher. Non-business enterprises have also recognized the importance of
advertising. The attempt by army recruitment is based on the substantial advertising campaign, stressing
the advantages of a military career. The health department popularizes family planning through
advertising. Labor organizations have also used advertising to make their viewpoints known to the
public at large. Advertising assumes real economic importance too. Advertising strategies that increases
the number of units sold stimulate economies in the production process. The production cost of per unit
output is lowered. It in turn leads to lower prices. Lower consumer prices then allow these products to
become available to more people. Similarly, the price of newspapers, professional sports, radio and TV
programs, and the like might be prohibitive without advertising. In short, advertising pays for many of
the enjoyable entertainment and educational aspects of contemporary life. Advertising has become an
important factor in the campaigns to achieve such societal-oriented objectives such as the
discontinuance of the smoking, family planning, physical fitness, and the elimination of drug abuse.
Though in India, advertising was accepted as a potent and recognized means of promotion 25 years ago,
its growing productive capacity and output necessitates the finding of consumers and advertising plays
an important role in the process. Advertising helps to increase mass marketing while help the consumer
to choose from amongst the variety of the products offered for his selection. In India, advertising as a
profession is in its infancy. Because of this fact, there is a tremendous scope for development so that it
may be productively used for the benefit of producers, traders, consumers, and the country’s economy.

Everyday consumers are exposed to thousand of voices and images in magazines, newspapers, and on
billboards, websites, radio and televisions. Every brand attempts to steal at least a fraction of person’s
time to inform him or her of the amazing and different attributes of the product at hand. The challenge of
the market is to find a hook that will hold the subject’s attention. In helping toachieve this, use of
celebrity endorsers is a widely used marketing strategy.

Pepsi too in this regard has always tried to tap the young segment of India through their promotions.
Beginning from the famous “Ahaa” series of ads to the “Yeh Dil Mange More” to today’s “youngistan
Meri Jaan”, Pepsi has always made ads to attract the youth. They have always chosen the young stars,
may not be established, as a face of young India. So the main reason of using Dhoni is same in case of
the latest Youngistan Meri Jaan ads. Pepsi is an intelligent brand which attaches itself with fun and
enjoyment. It also shows its daring attitude, mischievous behavior and outgoing nature.

Pepsi Co invests large sums of money to align their brands and themselves with endorsers. Such
endorsers are seen as dynamic with both attractive and likeable qualities and Pepsi Co. plans that these
qualities are transferred to products via marcom activities. Furthermore, because of their fame,
celebrities serve not only to create and maintain attention but also to achieve high recall rates for
marcom messages in today’s highly cluttered environments.

Similarly every product has an image. The consumer tries to consume a brand which has the maximum
fit with his/her own personality /image. The celebrity endorser fits in between these two interactions,
where he tries to bring the image of the product closer to the expectation of the consumer, by
transferring some of the cultural meanings residing in his image of the product. In this report, we have
focused on the impact of Advertisements on the brand preferences, that covers celebrity endorsement,
mediums of advertising, how celebrity endorsements affect the buying behavior of the customers.
“Brand” is the most valuable asset of any firm.

REVIEW OF LITERATURE
Advertising is more than a tool for selling goods and services. It has one overriding task, to position a
brand in the prospectus perception or perceptual space in relation to competitors, so as to created
distinctiveness 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 a direct and indirect bearing in the present study
have been reviewed.

Petty (1983): He stressed the role of involvement in Advertisement effectiveness. He observed that
the undergraduates express their attitudes about a product after being exposed to a magazine
advertisement under condition of either high/low product involvement. The advertisement contained
either strong or weak arguments for the product and featured either prominent sports celebrities or any
citizen or endorser. The manipulation of argument quality had greater impact of attitudes under high
than low involvement, but manipulation of endorser had greater impact under low than high
involvement. These findings were consistent with the views that there are two relatively distinctive
routes to persuasion.

Teffis (1985):In this article (Are Advertisements waste) remarked that the advertisement is one of the
least importance determents of purchase behaviors. The TV commercials being the most popular form of
advertisements have little impact on the purchase behavior of the consumers. He concluded that TV
commercials were the least effective means for changing the preference of consumers as compared to
other promotional techniques such as coupons, print ads and price offers.

Karmali (1989): It supports the fact that the enhancement of brand appeal through celebrity appeal
works. In these ads renowned personalities are used to enlarge, reassure the perspective customers. The
ads using celebrity appeals had more brand appeal enhancing effect than the non- celebrity appeal.

Politz (1990): He found that purpose of campaign most often is to build an impression of product and
service to generate sales, suggesting that campaign most only create awareness but also should be
persuasive. A creative approach combined with persuasive message high lightning uniqueness of the
advertised product also enables the advertisers to hold a long distance with the shoppers when the
advertisement is heard or seen thereby enhancing its effects on buyer at the time of purchase.

Biel and Bridgwater (1990):It found the commercial liking of a campaign went for beyond the mass
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 limki8ng
commercial liking to persuasion in first case. Secondly the novel was a function of productcategory at
least to the extent that for beverages commercial were better liked than any other category.

Schreiber and Appeal (1990-91): Assigned that researchers have been using surrogates for sales as a
measure for evaluating the effectiveness of advertising. The use of surrogate measure necessarily
implies a relationship between surrogate measure and sales which can be described mathematically as a
curve of some sort. Hence the implicit assumption is that relationship between surrogate measures
instead of sales is not with faults.

Unnava and Brunkrant (1991): he did a study whose main objective was to compare the effects of
varied v/s same execution of advertisements on brand name memory when the number of exposure tools
is held constant. They found out that varied advertisement executions enhance memory for brand name
over repeated same executions. In varied advertisement executions learning was superior when
execution remained same.
Singh and Cole (1993): They did a lab experiment in which they compelled the effectiveness of 15
second TV commercial with 30 second TV commercial by using novel commercials with different
messages, appeals, and information versus emotional exposing subjects multiple times and employing
multiple dependent variables. They found that informational 15 seconds ads are as effective as
informational 30 seconds ads in general situations. They also found that emotional 30 seconds ads are
superior to emotional 15 sec in influencing a viewer learning of brands and attitudes. The result suggest
that the length per seconds effects brand name recall for emotional commercial but frequency of brand
mentions not length, effect brand name recall for international commercials.

Menon (1994): In an article titled “the comparative advantages” has written that comparative
advertising which directly or indirectly compares a product with a competitor to show the advertised
products advantage has been prevalent in Industry for many years. But in exciting scenario, where new
brands in parallel category are springing up at a rapid rate, this type of advertisement is gaining
momentum. Most prominent among these have been Pepsi and Captain Cook companies. 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 ASCI (Advertising Society Council of India) may not be in a position to check the tide with
the product category getting overwhelmed and players fighting for respectable market share.

Gareth Parkin :“Positive effects of promotional mugs” says that a simple mug can be a single
powerful marketing and Advertising tool. By embossing your company name, logo, message, websites
details on promotional mugs, you can impact a message to prospective clients and those around them.
By using the latest printing techniques, promotional mugs can easily be decorated to reflect your
business or brand. Style and advertising message for creating strong and lasting brand recall.

Unnova and Brunkrnat (1991): They did a study whose main objective was to compare the effects of
varied v/s same execution of advertisement on brand name memory when the number of exposure to ads
is held constant. They found that varied ad executions enhance memory for brand name over repeated
same ad execution. In varied ad execution learning was superior to learning when execution remained
the same.

Burnet (1995): It conducted a research to identify 200 most awarded commercials and their association
with success market place. It was pointed out that 86% i.e. 172 commercials were successful within
these 117 achieved increase in sales volume, market share and other 55 were successful in brand image
enhancement.

Zaida and Jayaram (1996):They reported that finding of a survey by a marketing and research group in
September 1995 for Delhi based advertising and marketing magazines A&M, the result reflected the
apparent failure of marketing strategies Pepsi ranked 7 th while Coca cola came 13 th on the survey results
of country’s best marketing companies.

Srikant kapoor (Advertising revisited-The good, Bad, &Ugly): The difference in presentation of a
Good, Bad & Ugly advertisement is mainly owing to the sponsors view point & artists creative choices.
However, someone has to be wasteful about what can be shown in public & what should remain hidden.
Money making through acceptable means may be prevented by law but awareness about what is good &
what is not, is also important to discourage bad practices. If ignorance of law is not excused, ignorance
about good and bad taste should not be excused. It may have far more significance for the betterment of
the society, & its people.

J. Varaprasdreddy (Role of Advertising in Creating Brand Personality):

Brand personality being potent tool needs to be leveraged to achieve key objectives for existing and new
brands. Consistency is also important, failing which dilution of brand personality or absence of it may
occur. Other mix elements like distribution, pricing, promotion and packaging (apart from advertising)
should support and strengthen brand personality.

Dr. Vijay Pithadia (Evaluating International advertising Techniques & opportunity)

Over the years, the public perception of advertising has very negative. It is seen as a medium that
inherently promotes a lie, based on the purpose of the advertisement – to encourage the target audience
to submit to a cause or a belief, and act on it to the advertising party’s benefit and consequently the
target’s disadvantage. They are either perceived as directly lying by omission (usually terms or
conditions unfavorable to the customer) or portraying a product or service in a light that does not reflect
reality. It is the increased awareness of the intention of advertising, as well as advertising regulations
that have increased the challenges that marketer face.

Winters, Patricia, Advertising Age, Chicago, 1992

Coke and Pepsi Advertising Effects Measurable In Brain Scans: Samuel M. McClure, now at
Princeton University, Jian Li at Baylor College of Medicine, and a number of colleagues at Baylor have
found that brand preferences are measureable using functional magnetic resonance imaging (FMRI)
brain scans. We delivered Coke and Pepsi to human subjects in behavioral taste tests and also in passive
experiments carried out during functional magnetic resonance imaging (fMRI). Two conditions were
examined: (1) anonymous delivery of Coke and Pepsi and (2) brand – cued delivery of Coke and Pepsi.
For the anonymous task, we report a consistent neural response in the ventromedial prefrontal cortex
that correlated with subject’s behavioral preferences for these beverages.

John Deighton: The Effect of advertising on brand switching and repeat purchasing.

The authors examine switching and repeat purchase effects of advertising in nature, frequently
purchased product categories. They draw on consumer behavior theories of framing and usage
dominance to formulate a logical choice model for measuring these effects. They estimate the model
using single-source scanner data. Their results suggest that advertising induces brand switching but does
not affect the repeat purchase rates of customer who have just purchased the brand, a result consistent
with usage dominance rather than framing. They find the switching influence to be largely confined
between the current and previous purchase occasions. They illustrate the magnitude of this effect and
explore potential profitability.

Kahle and homer (1985): When a celebrity’s physical attractiveness is congruent (matches up) with the
presence and degree to which the product advertised enhances attractiveness (i.e. attractive celebrity
linked with an attractiveness-related product), the “match-up” hypothesis would predict a positive
impact on product and advertisement evaluations. However, if there is incongruence between the
product and celebrity attractiveness, evaluations with decline.
Biswas S, Hussain M, O’Donnell K: They say that there is a positive, although moderate, impact of
celebrity endorsements on intention and exposure of consumers. Implications for marketers as well as
suggestions for future research are discussed. The article is of the view that although there is
considerable risk in endorsing celebrities for products and services, the firms need to analyze the various
factor that can reduce such risks and hence increase the likeability of transfer of leverage of the brand
image from the celebrity to the products and services.

Dix X, Pougnet S (2009): In their research have found that Athlete role model endorsers have a positive
influence on young adult’s product switching behavior, complaint behavior, positive word-of-mouth
behavior and brand loyalty. This confirms the assumption that sports celebrities are important
socialization agents and can have significant impact on purchase intentions and behaviors. This research
provides useful insight into the influence of athlete endorsers on young adults and suggests athletes have
a positive influence on young adult’s behavioral intentions in switching products, generating word-of-
mouth and establishing brand loyalty.

Goddard I, Wilbur N: In their study provide a starting-point for further research on negative
information transference in the celebrity endorsement relationship. It is crucial that organizations be
aware of the risk associated with using celebrity to endorse their stores and products. Given that these
result provide tentative support for the commonly held belief that a decline in the celebrity’s image can
impact the image of the brand, it is important that retailers carefully choose and endorser who currently
has a good image and will likely be able to uphold this image in the future.

Strout R: In his case material “Pepsi and Madonna” examines the use of entertainment personalities in
advertising commercials products through the example of Pepsi’s use of Madonna. It illustrates how
companies try to tie the success of the artist to their product. The paper demonstrates the need for the
clear evaluation of the celebrity endorser, their public image, and if the relationship between the artist
and the product applies to the advertising rules. When Pepsi picked Madonna, the choice turned out to
be too hot to handle. The $5 million campaign featuring the extravagant vocalist had to be scrapped
because of its links to Madonna’s highly controversial “Like a Prayer” music video.

David H. Silvera, Austad B: In their research topic have examined whether consumers infer that
celebrity endorsers like the products they endorse, and presents a model using these inferences and other
characteristics of the endorser to predict attitudes towards the endorsed product. Participants in two
experiments examined written endorsement advertisements and were asked to infer the extent to which
the endorser truly liked the advertised product and to rate the endorser’s attractiveness, similarity to
themselves, and knowledge of the product. Attitudes towards the advertisement, the endorsers and the
product were also measured. The resulting model indicated that product attitudes were predicted by
inferences about the endorser’s liking for the product and by attitudes toward the endorser.
OBJECTIVES OF THE STUDY
1. To study the impact of the advertisement on the brand preference of consumer.

2. To study the consumer perception regarding the most effective media for Advertisements.

3. To study the impact of the celebrity endorsement on the consumer buying behavior.

NEED OF THE STUDY


As we know these days soft drinks companies are advertising their product so much on televisions
and are spending so much money on the advertisements of their product.

In soft drink industry the cost of advertising is necessary and it is nearly 35% of the total
cost. For increasing the sale of their product they are taking film stars, cricket stars in their
advertisements of there products which is again very costly.

The soft drink companies are spending so much on the sponsorship of events like cricket match etc.
so this study deals with these aspects that whether advertising is having any effect on consumers or
not.
This study will help:

 To know that people are influenced by Brand Ambassadors or not.

 Analyze different media options available for advertisements and which are most influential
ones.
 Influence of advertisements on their brands and brand loyalty.

SCOPE OF THE STUDY

 The scope of this study, as far as the area is concerned, is limited to Baijnath city only. Due to
time and other resource constraints we have limited our scope of this study to this particular area
and hope to focus entirely on our objectives.
RESEARCH METHODOLOGY

RESEARCH DESIGN:
A research design is a frame work or blueprint for conducting the marketing research project. It specifies
the details of the procedures necessary for obtaining the information needed to structure and/or
marketing research problem.

The research design used in this project is Descriptive research design.

SAMPLE DESIGN:

SAMPLING TECHNIQUE USED:


In this research we have used Convenience Sampling.

 GEOGRAPHICAL AREA: BAIJNATH

   SAMPLE SIZE:
For this study a sample of 150 has been taken.

   DATA COLLECTION INSTRUMENT:


Questionnaire

SOURCES OF DATA COLLECTION

1. Primary Data: It is the first hand information collected through questionnaire.

2. Secondary Data: It is collected from other source.

 Books
 Newspapers
 Magazines
 Journals
 Research papers
 Internet
TOOLS OF INVESTIGATION

The study was conducted with the help of questionnaire which was administered personally to all the
respondents. The questionnaire is aimed at fulfilling out the impact of Advertisements of Coke and Pepsi
in terms of consumer preferences, recall and purchase behavior.

The questionnaire deals with the aspects like

 Impact of the advertisement of the purchase behavior of customer towards soft drinks.
 Factors influencing choice of brand.
 Influence of advertisements on the preference and purchase of a soft drink brand.
 Reasons for brand preference.

Aided Recall Test:

Aided recall test will be used to study the recall ability of respondents for the advertisements of
Coke and Pepsi.
For aided recall various clues will be given example slogans and name of the models and
respondents will be asked to identify the soft drink brand ambassador associated with them.
In some question ranking method is used.

DATA ANALYSIS AND INTERPRETATION

1. Do you drink soft drinks?


A) Yes B) No

If Yes then,

A) Daily
B) Weekly
C) Occasionally
D) Monthly

If No then, (Give Reason)

Frequency Percentage
Yes 150 100%
No 0 0%
Drink soft drinks

Drink soft drinks

yes
no

100

Figure 1

INTERPRETATION:
The data was obtained from the 150 respondents, and after analyzing the responses from the
respondents, the result showed that all the respondents i.e. 150 are used to drink soft drinks.

Consumption
Frequency Percentage
Daily 15 10%
Weekly 40 27%
Monthly 30 20%
Occasionally 65 43%
Consumption

10 Daily
Weekly
43 Monthly
27
Occasionally

20

Figure 2

INTERPRETATION:
The person who drinks soft drinks consumes daily, weekly, monthly, occasionally with frequency of
15,40,30,65 respectively.

2. Which brand do you drink the more?

Brand Frequency Percentage


Pepsi 12 8.0 %
Coca cola 27 18.0%
Thumps up 50 33.3%
Sprite 09 6.0%
Fanta 16 10.7%
Mirinda 08 5.3%
Limca 10 6.7%
Dew 18 12.0%
TOTAL 150 100%

Brands
Pepsi
Coca cola
12 8
6.7 Thumsup
18
5.3 Sprite
10.7 Fanta
6 Mirinda
33.3
Limca
dew

Figure 3

INTERPRETATION:

From the above data it is clearly mentioned that the maximum of the respondents drink Thumps Up i.e.
33.3 % after thumps up the second most preferred brand is coca cola i.e. 18 % of the respondents drink
coca cola, followed by mountain dew i.e. 12 % followed by Fanta 10.7 %, followed by pepsi 8%
followed by limca 6.7%, and sprite 6%. Followed by marinda 5.3 %. From this data we can say
the majority consumption is of thumps up , coca cola and mountain dew..

3. Why you have chosen this brand?

Frequency Percentage
Quality 120 80%
Advertisement 12 8.0%
Price 2 1.33%
Brand name 9 6.0%
Celebrity 7 4.67%
TOTAL 150 100%

choice of brand
90
80
80
70
60
50 choice of brand

40
30
20
8 6
10 4.67
1.33
0
Quality Advertisement Price Brand name Celebrity

Figure 4

INTERPRETATION:

This question gives us the insight why the respondents have chosen their brands. From the above data it is
evident that majority of the respondents i.e. 80 % were using their respective brands because of the quality of
the product, that means the respondents give first preference towards quality before selecting any brand and
cannot compromise on the quality of the product, followed by advertisements i.e. 8 % respondents prefer
because of advertisements of the brands. That means advertising also has an impact on the brand preference
towards consumers. The third preference that respondents gave was brand name i.e. 6 %, Also about 5 % of
the respondents prefer their brand because of celebrities, this means there is close association between
celebrities and brand preferences, Also least number of people gave preference to the Price i.e. barely 1.33
%, this means respondents are not concerned with the price of the product. In other ways price has least
effect on the brand preference.
3. Does advertisement affect the choice of your brand?

Frequency Percentage
Strongly Agree 43 28.7%
Agree 67 44.6%
Neutral 34 22.7%
Dissatisfied 3 2.0%
Strongly Disagree 3 2.0%
TOTAL 150 100%

Advertisement Affect choice of Brand


50 44.6
45
40
35 28.7
30
25 22.7
20
15 Advertisement Affect
10 choice of Brand
5 2 2
0

Figure 5

INTERPRETATION:

First objective of the study i.e. impact of the advertisement on the brand preference of consumer is
covered under this research finding.

From this data we come to know whether there is a positive relation between advertisement and the
brand preference. The above data reveals that 29 % of the respondents strongly agree that
Advertisements affect their choice of brands, followed by 44% who also agree with the statement. This
means there is a positive relation between Advertisements and the Brand preference.
But also there are some respondents who do not agree or strongly disagree with the above statement.
Therefore companies must come with innovative and creative advertisements that will have a positive
impact on their buying behavior.
4.
Tv Frequ Internet Frequ Outdoor Frequ Newsp Frequ Radi freque
ency ency media ency aper ency o ncy

Strong 137 91.3% 1 0.7% 10 6.7% 1 0.7% 4 2.67%


ly
Agree
Agree 10 6.7% 37 24.7% 63 42.0% 18 12.0% 17 11.33
%
Neutra 03 2.0% 69 46.0% 50 33.3% 10 6.7% 18 12.0%
l
Less 0 0% 34 22.6% 20 13.3% 75 50.0% 27 18.0%
Attrac
tive
Unattr 0 0% 9 6.0% 7 4.7% 46 30.6% 84 56.0%
active
TOTA 150 100% 150 100% 150 100% 150 100% 150 100%
L
Which medium of the advertisement you like the most?

Medium of Advertisement

100 91.3
90
80
70 56
60 46 50
50 42 Strongly Agree
40 33.3 30.6
30 24.722.6
13.3 Agree
20 6.72 6.7 12 12
11.3
10 0.7 6 4.7 0.7 6.7 2.7 Neutral
0
00 18 Less Attractive
Unattractive

Figure 6

INTERPRETATION:
Second objective of the study i.e. consumer perception regarding the most effective media for
advertisement is covered under this research finding.

From the above data it is evident that the majority of the respondents i.e. 32.48 % ranked TV as the first
choice for the medium of Advertisements, followed by Internet i.e. 22 %, it is because of the availability of
technology to masses. Followed by Outdoor media i.e. 18.93. The respondents ranked Newspapers at the
4th rank and at last according to table respondents gave least importance to Radio i.e. only 12.44
respondents.
5. Can you recall any advertisement of your brand?

Frequency Percentage
Yes 125 14%
No 25 16%
Total 150 100%

Recall of Advertisement

16
Yes
No

84

Figure 7

INTERPRETATION:
From the above data majority of the respondents can recall the advertisements of their brand. About 84
% respondents replied yes while as there are some of the respondents i.e. 16% who cannot recall the
advertisements of their brand.
Therefore it is becomes necessary on part of the companies to use creative and effective advertisement
so that to better position their products in the mind of their consumers.
6. Which of the following aspects of the advertisement you remember the most?

Frequency Percentage
Color 5 3%
Slogan 30 20%
Theme 22 14%
Punch line 52 36%
Celebrity 41 27%
TOTAL 150 100%

Advertisement Aspects

Celebrity
27

Punch line
36

Theme
14

Slogan
20

Color
3

0 5 10 15 20 25 30 35 40

Figure 8

INTERPRETATION:
This question was framed to get the insight from the respondents about the aspect of the advertisements
they remember the most.
From the above table, it is clear that majority of the respondents i.e. 36% revealed that they remember
the punch line , followed by celebrity i.e. 27 % of the respondents remember the celebrity associated
with the brand, these two aspects are most remembered among the others. The third aspect of the
advertisement is that respondents prefer slogans followed by theme and color of the advertisement.
Therefore all of the above aspects are very important from the advertisement point of view , therefore
companies must choose unique punch lines, attractive colors, good themes which the youth will like and
the most importantly the celebrities because we Indians trust and love them blindly.
7. Does an advertisement showing your favorite celebrity affects your choice of
brand?

Frequency Percentage
Yes 78 52.0%
No 52 34.7%
Can’t Say 20 13.3%
TOTAL 150 100%

Celebrity Endorsement

20
Yes
52 No

34.7 Can't Say

Figure 9

INTERPRETATION:
The third objective of the study i.e. the impact of the celebrity endorsement on the consumer
buying behavior is cover under this data analysis.

From the above table it is very clear that majority of the respondents i.e. 52% agree with the statement
that advertisement showing their favorite celebrity affect their Choice of Brand. But also, there are some
respondents i.e. 13 % who are against this statement. The important thing to be noticed in this table is
about 35% respondents replied they can’t say.
Though most of the respondents have positive association with the celebrities but also but there are so
many things in an ad along with a celebrity which makes an ad effective which in turn affect the buying
behavior.
Therefore it becomes important on the part of companies while making their advertisement not to focus
on celebrities only but more focus should be made on other factors also because advertisements have a
great impact on the buying behavior of customers.
8. How does an advertisement by showing your favorite celebrity affect your
perception?

Frequency Percentage
Positively 111 74.0%
Negatively 12 8.0%
Can’t Say 27 18.0%
TOTAL 150 100%

Advertising perception
80 74
70

60

50

40

30

20

10 8
3.5
0
Positively Neagtively Can't Say

Figure 10

INTERPRETATION:
From the table it is very clear that majority of the respondent’s i.e. 74 % are positively affected by the
celebrities regarding the brand perception. This means that celebrities play a major role in stimulating
the consumer’s preference towards the brand. Therefore celebrity endorsing have an impact on the
consumers buying behavior.
But also from the table it is evident that some respondents responded negatively, therefore the
companies should bridge this gap, and should select the celebrity with greater credibility, fan following
etc.
9. Aided Recall Test

Punch Lines Brand

a) Thanda Matlab

b) Yeh Dil Mange More

c) Seedhi Baat No Bakwaas

d) Do The Dew

e) Bheja Fry 7up try

Aided Recall Test


105
100 100 100
100
95.3
95

90
85.3
85

80

75
Coca Cola Pepsi Sprite Dew 7up

Figure 11

INTERPRETATION:
From this question respondents were asked to recall the brands to which punch lines were associated, the
respondents easily recalled the brand names.

All the respondents were able to recall the brands.

All the respondents (i.e. 150) recalled coca cola, Pepsi and Mountain Dew Brands. Whereas 143
respondents recalled sprite brand and 128 respondents recalled 7up brand.

This means majority of the respondents recalled the brands, therefore punch line aspect of the
advertisement is also important in Advertising.
FINDINGS

1. After analyzing the data collected from 150 respondents, it is revealed that most preferred brand is
Thumps Up followed by Coca Cola and Mountain Dew.

2. Majority of the respondents uses their respective brands because of the quality and it is revealed that
there is no significant relationship between the choice of brand and price of the product.

3. There is an impact of the Advertisements on the consumers regarding the choice of their brand, i.e. there
is a significant relationship between advertisements and the choice of the brand.

4. The most liked medium of Advertisements is television followed by Internet and Outdoor media.

5. Internet is mostly liked by the younger youth between the age group 18-25 because of the access to new
technologies.

6. Newspapers and Radio has the low rating as compared to other mediums, because they are still used by
aged people.

7. There is a great impact of the advertisements on the consumers as 83% respondents replied they do
recall the advertisements of their brands. This recall helps them in decision making while making a
purchase.

8. People remember different aspect(s) of the advertisements. The most remembered aspect by respondents
is Punch Line, followed by Celebrity.

9. Celebrity endorsement has a positive effect on the perception of the respondents.

10. Almost all the respondents were able to answer the last question which was based on the aided recall.
Respondents were given punch lines of different brands and respondents have to identify the brands with
which they are associated.
CONCLUSION

As there is cut throat competition in the soft drink industry mainly between the two big giants i.e. Coca Cola
and Pepsi, and both are striving very hard for their market share. Therefore it becomes very hard for the
companies to retain their customers. It is also evident that 34 % of the total costs, these companies spend on
Advertisements. Therefore Advertisements are the back bone for this
Industry, they act as a glue to retain their consumers and target the prospectus.

Also the consumers preferences and the attitudes change with the passage of the time and age, Mediums of
Advertisements also play an important role in promoting the products among the masses.

Advertisements play a pivotal role in changing the consumer’s perception. Television is an important and
effective medium used for communication with the consumers, and Internet has emerged one of the strongest
medium that youngsters use to gather the information.

Also celebrities affect the consumer perception and buying behavior, and celebrities are one of the most
remembered aspects of the advertisement. Companies should use those celebrities that have the greater
credibility and fan following.

At last we can say that there is a direct relation between Advertisements and the consumer buying behavior
which has been proved by the tests also.
RECOMMENDATIONS

1. Companies should aggressively go for Internet marketing as there is a great scope for it because
youngsters are in close contact round the clock with Internet.

2. Companies should come up with new and effective advertisement campaigns regularly.

3. Companies should focus on creative advertisements, because people want something different,
something new that will attract their attention.

4. Companies should make use different mediums of Advertisements to cover maximum population.

5. Advertisements should be made according to the taste of people.

6. Companies should go for Sponsorships of different events like cricket, football at district levels.

7. Companies should select the celebrities, that has greater credibility and fan following.

8. Companies should promote their product on pamphlets, through cellular messages or on FM Radio so
that almost everybody listens on their cell phones so there is a greater scope for this.

9. Use of digital Billboards as images and videos change after 5 seconds on billboards, they are attractive,
and they easily grab consumer’s attention.
BIBLIOGRAPHY

BOOKS REFERED

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Delhi, TMH Publications, PP359-366

Journal:-
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 Mukherjee D, AUG-2008,“Impact of Advertisements on the Brand Preference” Available at:


http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1444814

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(2006), www.emeraldinsight.com/Insight/viewContentItem.do?
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www.cnn.com/2009/OPINION/12/16/elberse.athlete.endorsements.tiger.woods/index.html.
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(2009),www.cnn.com/2009/OPINION/12/16/elberse.athlete.endorsements.tiger.woods/index .html

 Joshi V “ The Impact of Advertisement on Consumer Brand Preferences ”


(2008),www.indianmba.com/Faculty Column/FC706/fc706.html

Internet
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08, 13.16

http://en.mimi.hu/marketingweb/lowinvolvement_products.html 2006-04-25,
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http://susning.nu/Pepsi 2006-04-12, 10.56

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www.coke.com.au/about_advert.asp

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Annexure

QUESTIONNAIRE

Dear Sir/Madam.

We are conducting this survey as a part of our BBA program. The purpose of this survey is to study the
“Impact of Advertisements on the brand preferences towards soft drinks”, so we would be grateful if
you could spend some of your precious time in filling up this Questionnaire

Q1. Do you drink Soft drinks?


Yes No

If yes then,
Daily Weekly

Monthly Occasionally

If no then, (any reason)……………………………………………………………………….

Q2. Which brand do you drink the most?


Pepsi Coca Cola Dew Thumps Up
Sprite Marinda Limca Fanta

Q3. Why you have chosen this Brand?


Price Quality Advertisements
Brand Name Celebrity

Q4. Does Advertisement affect the choice of your brand?


Strongly Agree Agree Neutral
Disagree Strongly Disagree

Q5. Which medium of Advertisement you like the most?


Rank according to your Opinion ( 1 for most, 5 for the least)
TV Radio Newspapers
Magazine Internet OutDoor Media

Q6. Can you recall any advertisement of your Brand?


Yes No

Q7. Which of the following aspect of the advertisement you remember most?
Color Slogan Theme
Punch Line Celebrity

Q8. Does an advertisement showing your favorite celebrity affect your choice of Brand?
Yes No can’t say

Q9. How does an advertisement showing your favorite celebrity affect your perception of the brand?
Positively Negatively can’t say
Q10. Following Punch Lines are associated with advertisement of different brand of soft drink .
Identify the brands.

Punch Lines Brands


a) Thanda Matlab -------------------------------------------
b) Yeh Dil Mange More -------------------------------------------
c) Seedhi Baat No Bakwas -------------------------------------------
d) Do the Dew -------------------------------------------
e) Bheja Fry, 7 Up try -------------------------------------------

Personal Information:

Name

Gender M F

Contact No.

Age: Below18 18-25 26-35 36-50 Above 51


Occup: Service Business Student Housewife Others