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DISSERTATION PROJECT ON
ADVERTISING MEDIA AND ITS IMPACT: A CASE STUDY ON COCA COLA AND PEPSI
REPORT SUBMITTED BY
NAME: - T.BHARTI
MBA+PGPIBM (2018-2020)
I, T.BHARTI here-by declare that the project report “ADVERTISING MEDIA AND ITS IMPACT: A CASE STUDY
ON COCA COLA AND PEPSICO” the fulfillment of the requirement of my course is an original work of mine
and the data provided in the study is authentic, to the best of my knowledge.
This study has not been submitted to any other Institution or University for award of any other degree.
T.BHARTI
CERTIFICATE
This is to certify that T.BHARTI has done the Minor Research Project entitled “ADVERTISING MEDIA AND
ITS IMPACT: CASE STUDY ON COCA COLA AND PEPSICO” under my supervision for the degree of MBA.
The work done by her is a sole effort and has not been submitted as or its part for any other degree.
JOYITA CHATTERJEE
(PROFESSOR)
It is a matter of Great Pleasure for me in submitting the project report on Advertising Media and its Impact
: A Case Study on Coca Cola and PepsiCo for the fulfillment of the requirement of my course MBA under
VIDYASAGAR UNIVERSITY.
I am thankful to and owe a deep debt gratitude to all those who have helped me in preparing
this report. Words seem to be inadequate to express my sincere thanks to PROFESSOR.JOYITA
CHATTERJEE for her valuable guidance, constructive criticism, untiring efforts and immense
encouragement during the entire course of the study due to which my efforts have been rewarded.
I am highly obliged to those who had helped me to procure primary data to complete my
project. Also not to be forgotten the Lecturers of PROFESSOR DEEPAK BHATTACHARYYA who contributed
his ideas and suggestions.
I want to thank all who have supported me and gave their timely guidance. Last but not
least I am very grateful to all those who helped me in one-way or other.
T.BHARTI
TABLE OF CONTENTS
1. INTRODUCTION 6
11-15
RESEARCH
3.
METHODOLOGY
4. NATIONAL SCENARIO
INTERNATIONAL
5.
SCENARIO
ANALYSIS AND
6. INTERPRETATION OF 21-38
DATA
7. SUMMARY
8. CONCLUSION
9. BIBLIOGRAPHY
Advertising Media and its Impact: A case study on Coca Cola and Pepsi
Introduction
Advertising Media refers to the various channels or vehicles through which promotional content is communicated
in various forms such as text, speech, images, videos, etc.
The word, “Advertising” has its origin from a Latin word, “Adventure” which means- ‘to turn to’.
The dictionary meaning of the word is “Communication whose purpose is to influence potential customers about
products and services”
Advertising as a discrete form is generally agreed to have begun with newspapers, in the seventeenth century,
which included line or classified advertising. Simple description , plus prices, of products served their purpose
until the late nineteenth century, when technological advances meant that illustrations could be added to
advertising, and color was also an option.
An early advertising success story is that of pears soap. Thomas Bratt married into the famous soap making
family and realized that they needed to be more aggressive about pushing their products if they were to survive.
He launched the series of ads featuring cherubic children which firmly welded the brand to the values it still holds
today.
World War I saw some important advances in advertising as governments on all sides used ads as propaganda to
convince its own citizens to fight, and also to persuade the Americans to join. No less a political commentator
than Hitler concluded that Germany lost the war because it lost the propaganda battle. One of the other
consequences of World War I was the increased mechanization of industry and hence increased costs which had
to be paid for somehow: hence the desire to create need in the consumer which begins to dominate advertising
from the 1920s onward.
Advertising perceptions provides Media Company executes with essential insight necessary for increasing ad
sales, market share and competitive advantage.
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Advertising Media and its Impact: A case study on Coca Cola and Pepsi
LITERATURE REVIEW
The main thrust of this chapter is to explore the impact of literary devices, components and elements on advertising
media and that such impact is measured in terms of communication effectiveness of such literary elements. Hence,
some of the important elements of literature on Advertising media and its impact are stated below:
Kotler (2004) has summarized the four popular Response Hierarchy Models. These are AIDA, HOE model,
Innovation Adoption model and communication models. In all these models, the effect of advertising
communication happens in three stages - Cognitive, Affective and Co-native.
In the first stage there is attention, awareness or exposure leading to the second stage of interest,
liking and attitude culminating in to purchase behavior. Response Hierarchy models are linear, which
assumes that the buyer passes through three stages in a sequence – cognitive, affective and behavioral
stages. Consumers generally spent more time and effort on expensive products and in case of inexpensive
and routine purchases they do not give much thought and effort. The first one is called ‘high-involvement
decision process’ and the second one is called ‘low-involvement decision process’. The starch model put
forward in 1920s mooted the idea that an effective advertising: Must be “seen”, must be “read’, must be
“believed”, must be “remembered” and must be “acted upon”. ‘Hierarchy of Effects theories can be referred
as stimulus-response (classical - conditioning) learning 39 theories. All response hierarchy models of
advertising theories are “linear-sequential” and to be effective (to result in the desired behavior), any piece
of persuasive communication must carry its audience through a series of stages each stage being dependent
on the success of the previous stage” (opera citato).
Mathur (2005) views advertising communication as a chain reaction consisting of various steps in a
sequential manner that of creating awareness, comprehension, acceptance of the product, belief, purchase
action, use and repeat purchase.
Vakratsas et. Al, (1199), by reviewing two hundred and fifty journal articles and books gives certain
insights about how advertising affects the consumer. They suggest that the hierarchy of effects is deeply
flawed and propose that advertising effects should be studied in a space with affect, cognition and
experience as the three dimensions that is determined by the context, which reflects goal diversity of
advertising, product category, competition and other aspects of mix, stage of PLC and target market. They
cite the latest developments in neuroscience research pointing out that the brain processes information in a
parallel fashion and that consumer engage in cognition and affect simultaneously and interactively; as there
is parallel processing of information and stage by stage information processing cannot take place.
Weilbacher, (2003), reiterates the same argument stating that the behavioral model of advertising (S-R
Model) is not realistic and cannot be accepted, as consumer process all incoming information, including
advertising in a very complex yet instantaneous manner and that past experience with the brand will also
have to be reckoned for assessing the effects of advertising.
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Advertising Media and its Impact: A case study on Coca Cola and Pepsi
Stern, (1994), suggested another communication model for advertising by drawing a parallel with crafted
text rather than with everyday speech. This model expanded the traditional communication triad i.e. Sender,
Message, Addressee proposed by information theorists by inscribing ad Stern (1990) examined the ‘art’ in
advertising by a micro - level focus on a single advertisement to analyze ‘metaphor’ in terms of Aristotle’s
‘Poetics’, classifying metaphor in to three – single, extended and open-ended. She underlines the fact that
the relationship of metaphorical efforts to consumer responses has not yet been clearly translated from
humanistic criticism to the social sciences nor has it been extensively considered in terms of what the
consumer enjoys or finds entertaining. She maintains that advertisements as artistic creations opens up
research possibilities by offering humanities theory as a source of insights for social science applications
and beauty as a quality conventionally thought to be inherent in poetic metaphors and joy as a response
may not be far removed from qualities inherent in some advertisements and consumer responses to them.
Advertisers, promotional text and consumers as multidimensional participants in a complex interactive
process.
Hall (2002), while discussing various models of consumer response to advertising states that the weakness
of the earlier 41 hierarchical models is the “assumption that cognition plays a primary role in consumer
response.” According to him “rational cognitive processes are not the primary drivers of purchase
behaviour through which advertising operates.” In place of Cognition->Affect-> Behaviour model, he has
suggested a consumer response model to advertising that maps a process founded in three key elements –
Perception, Experience and Memory. He emphasizes the primacy of emotions and feelings in designing a
consumer response model relating to advertising. He asserts that consumer response is a biological process
and that his model conforms to the tenets of neuroscience.
Hirschman and Craig (1997), in their study on the media proposed that consumer’s relationships to non-
advertising forms of mass media are an essential aspect of the perceived meanings they derive from
advertisements and on the basis of similar studies they state that consumers often process advertisements
for meaning rather than information and that advertisements can be experienced as aesthetic events just like
other media products. They also observe that media and advertising have a symbiotic relation in which
media enhance the effectiveness of some advertising by portraying certain product/brand assortments as
more desirable than others. Their main observation is that by “singing in harmony with the prevailing
chorus of mass media texts, advertising may become more potent as a conveyor of consumption
preferences”. To be effective Advertising, should persuade the audience to interpret the advertising message
in the manner intended by the sponsor. Such interpretation depends upon the knowledge resources of the
viewer. Their study pertains to visually complex advertising and the variations in consumer interpretations
due to cultural factors. According 43 to them, “ the multiple bodies of knowledge that viewers draw on to
interpret visuals in advertising are the grounded language, literature and cultural traditions including tacit
knowledge, myths, narrative structure, consumption practices and advertising genres as well as an
understanding of cultural texts, products and brands”. Their research findings concluded that viewers
interpret visuals in advertising based on resources that are “linked to literary and cultural traditions that
are significantly different for different cultural groups”.
Carbone, (2003), cities modern neurological research and contends that “people don’t think and draw
conclusions in linear, hierarchical ways or in exclusively conscious ways and they glean cues and bits of
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Advertising Media and its Impact: A case study on Coca Cola and Pepsi
information from all the senses, above and below awareness, to form a composite experiential impression
that becomes a basis for preference, loyalty and advocacy.”
Mc Guire (2000) states that in a 45 consumerist age, persuasion should be a central topic of study in
consumer research and that the art of persuasive communication of using figurative language is ignored in
our age. According to him this neglect can be corrected by us by ‘standing on the shoulders of ancients’
and by nurturing the rhetorical tradition.
Mc Quarrie and Mick, (1999) on the basis of their empirical research in the light of rhetorical theory and
cultural competency theory by using text interpretations, experiments and reader response interviews
examined the impact of visual rhetorical figures in advertising. They found that rhyme, antitheses, metaphor
and pun lead to a more favorable attitude towards the advertisements. The effects were less for visual tropes
(metaphor and pun) and in case of individuals with les s cultural competency. In order to confirm their
earlier empirical research regarding effectiveness of rhetorical figures, McQuarrie and Mick (2003)
designed a thirty two-page magazine of interest to audience containing advertisements. This was
administered to the audience and by manipulating directed processing and incidental exposures to the ads,
an effort was made by them to study the effect of rhetorical figures. Earlier empirical research directed
subjects to 46 process the ads and examined either visual or verbal rhetoric but not both. Mc Quarrie and
Mick (2003) study showed that the ads with rhetorical figures were recalled more often and liked better.
Visual figures are more effective regardless of processing condition whereas verbal figures performed better
as and when subjects were directed to process the ads.
To study the comparative advantages of advertisements for the respondents, with reference to Cold Drinks.
To study the consumer perception about the advertisement of different brands of Soft Drinks like Pepsi and
Coca Cola.
To study the consumer perception regarding the most effective media for Advertisements.
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Advertising Media and its Impact: A case study on Coca Cola and Pepsi
RESEARCH METHODOLOGY
Research is a procedure of logical and systematic application of the fundamentals of science to the general
and overall questions of a study and scientific technique which provide precise tools, specific procedure
and technical rather than philosophical means for getting and ordering the data prior to their logical analysis
and manipulation.
This study has been carried out to know the impact of advertisement in taking buying decision by
consumers in relating to Soft Drink- Pepsi and Coco Cola in Siliguri, West Bengal.
RESEARCH DESIGN
The research design is the blueprint for the fulfillment of objectives and answering questions. It is a master
plan specifying the method and procedures for collecting and analyzing needed information.
My source of data includes both primary and secondary sources of data collection.
Primary Data has been collected directly from sample respondents through questionnaire and with
the help of interview.
Secondary Data was collected from Newspapers, Magazines and published Internet Sources.
RESEARCH INSTRUMENT
The Research Instrument used for the primary data collection is Questionnaire and Personal Interviews.
SAMPLING
Sample Design: Probability Sampling.
Method: The type of research is explorative. The respondents are selected by adopting a method
of random selection.
Size: The sample size is 100 respondents.
Area: The questionnaires have been distributed among consumers in mainly Sevoke Road and
Millanpaly area of the city Siliguri.
Statistical Tool: Percentage Analysis.
ANALYSIS TECHNIQUE
Analysis has been made on the basis of the respondents in my interview and questionnaire.
To arrive at the objectives statistical tools is used for analyzing the data and information that are
percentage, average, charts, tables, bar diagrams, etc.
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The study relied mainly on Primary Data which is not so dependable as the market scenario may change.
It was difficult to collect proper data and information because the respondents were not giving enough time
to respond.
The time period is too small to carry out such a huge study and draw a meaningful and reliable conclusion.
The study is based on limited samples which may not fully represent the true picture of the study.
The data collected from consumer was qualitative in nature, i.e. views, opinions and perception. These
factors may change from time to time.
It was my first attempt to carry out such a market study, hence inexperience may also be seen as an obstacle
to accomplish a reliable study.
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Advertising as a tool of communication, but mostly as a marketing tool is subject to many theories and explanatory
and normative models. Its contents and performed functions are not yet defined in general recognized theory.
Advertising can be considered a variable created by convergent interest expressed in the two major scientific areas:
communication and marketing. With origins in the academic and the practice, advertising was tackled on the one
hand, as a means of communication required by those involved in the current economic activities, on the other hand,
and the solution to communicational problems of various organizations - the media, for example. Advertising and
communication, in general, are components of contemporary economic and social system. In today's society,
advertising has evolved into a complex system of communication, important for both organizations and the general
public. The ability to deliver messages carefully prepared to its targets gave over time to advertising a major role in
marketing programs of most organizations. Different companies, starting from the multinational firms and local
firms attaches increasing importance of advertising in order to present their products and services to important
markets. In functioning market economies, consumers have learned to use the advertising information in their
purchase decisions.
A coherent and functional analysis of advertising can be done by calling a vision that incorporates two levels: the
descriptive one, which considers issues related to the need to define and differentiate advertising from other
marketing tools of communication, and the normative one, that captures the conditions that advertising must meet
so that marketing goals can be achieved. The need for strategic vision regarding advertising can be seen as an
example of covering the normative aspect of the analysis, while the advertising features and forms can be aspects
of the descriptive analysis.
Marketing literature in Romania proposed a number of definitions of this concept, operating as appropriate with a
more or less explicit view. Thus it is estimated that advertising is "a set of actions aimed at presenting - oral or
visual - indirect (impersonal) message about a product, service or company by any identified supporter (payer) "
(Popescu et al, 1994). According to a more recent definition, advertising "is a communication technique that
involves running a complex persuasive process, for whose realizations are used a number of specific tools, able to
cause psychological pressure on the concerned public. The initiator of the advertising communication actions is the
sponsor, who in order to achieve communication objectives, wants to send an impersonal message to a well-defined
audience regarding the enterprise, its products or services." (Popescu, 2004). As the literature in Romania, the
foreign definitions of advertising are numerous. Thus, advertising is defined as "the paid and media intermediated
attempt to convince" (O'Guinn et al, 2003) or, according to other authors as "a form of structured and impersonal
communication, composed from information, usually persuasive in nature, regarding the products, in the broad
sense, paid by an identifiable sponsor and transmitted through various media" (Arens, 2002).
Advertising seen as a process is based on the general scheme of the marketing communication process, with a
number of specific features related to its content. Thus, from the above lines we could see that one of the
characteristics is that advertising uses impersonal communication media (television, radio, press, etc.). Joining these
characteristics with other leads to a specific pattern in which the advertisement is created, sent and received by the
target audience.
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Advertising Media and its Impact: A case study on Coca Cola and Pepsi
The model shown in Figure above captures the content of marketing communication mediated by the media. This
model explains that the advertising is a finality of a process that involves both institutions and individuals. The
process includes two components: production and reception, between them intervening mediation process function,
which consists, on the one hand, in the accommodation, which concerns how the communication objectives of
sponsor and needs, expectations and attitudes of consumers interact and negotiation, on the other hand, which
reflects the manner in which the receptor understands advertising.
Most definitions of advertising, underline its persuasive character. The goal of those using this type of marketing
communication is to create favorable attitudes or reinforce existing attitudes so that they obtain a purpose in the
form of purchase of a product or a brand. This process of persuasion is closely linked to the concept of attitude.
Most theories of advertising have explored the connection between persuasion and attitude, identifying possible
responses that the receiver can give to advertising information. Explanations are not always convergent, but they
provide an overview of how consumers respond to advertising stimuli. Thus, considering consumer behavior as a
cybernetic-type behavior, which involves a series of inputs, processing and outputs, and seeing advertising as a part
of those entries, one will be achieve advertising effects similar to logic shown in Figure below (Kotler, 2000).
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As highlighted in this framework, advertising is an entry for consumer. Message content, media planning and
repetition are at the same time inputs and components of a strategy that has the role of triggering the receptor
reaction mechanisms.
Reaction mechanisms can be internal components of the black box, such as cognitive or emotional reactions, and
external, visible through a displayed behavior: acquisition loyalty, etc. The knowledge of the effects of advertising
usually involves identifying those internal or external customer-specific side effects that led to the emerging of
certain theories regarding the response to advertising.
The starting point in the assessment of the effects of advertising belongs, apparently, to St. Elmo Lewis, who
developed in 1898 the famous AIDA model (attention - interest - desire - action). Since then, however, the literature
has shown many other opinions in this regard.
Among the most popular theories on consumer reaction to information of a promotional nature are (Vakratsas and
Amble, 1999):
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Television
1) Benefits:
Wide geographic coverage & broad audience reach.
Relative ease of buying and post-buy maintenance.
Proven success record for promoting mass consumer products.
2) Disadvantages:
Audience share is generally declining due to fragmented audiences.
Many television shows skew older and lower income.
Typically high CPM costs and rising production costs.
Radio
1) Benefits:
Has targeting capabilities.
No seasonal listener erosion.
Builds frequency quickly.
2) Disadvantages:
No visual component.
Advertisers must buy multiple stations and formats to accumulate audience reach.
Peak listening is during morning and evening drive times with relatively low audiences the rest of
the day.
Newspaper
1) Benefits:
Broad reach within a defined marketing area.
Geographic selectivity is available in small towns.
Marketplace for competitive price shopping.
2) Disadvantages:
Decreasing market penetration and readership with many newspapers reaching less than 50%.
Cost frequency medium.
Low Younger audience readership.
Magazine
1) Benefits:
High production quality.
Focused editorial environment.
Regional editions offer localized targeting capabilities.
2) Disadvantages:
Specific issue audience data is not typically available.
Magazines produce minimal short term (daily/weekly) reach.
Broad market reach is difficult to achieve because of niche readership behavior.
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NATIONAL SCENARIO
The Indian advertising industry has evolved from being a small-scaled business to a full-fledged industry. The
advertising industry is projected to be the second fastest growing advertising market in Asia after China.
It is estimated that by 2018, the share of ad spend in India’s Gross Domestic Product (GDP) will be around 0.45
per cent.
Market size
India’s Advertising industry is expected to grow at a rate of 16.8 per cent year-on-year to Rs 51,365 crore (US$
7.61 billion) in 2016#, buoyed by positive industry sentiment and a strong GDP growth of 7 per cent and above.
India's digital advertising market has grown at a fast pace of 33 per cent annually between 2010 and 2015, while
spending as a percentage of total advertising increased to 13 per cent or nearly US$ 1 billion in 2015.
Print contributes a significant portion to the total advertising revenue, accounting for almost 41.2 per cent, whereas
TV contributes 38.2 per cent, and digital contributes 11 per cent of the total revenue. Outdoor, Radio and Cinema
make up the balance 10%.
Of the current Rs 2,750 crore (US$ 407.66 million) digital advertisement market, search and display contribute the
most - search advertisements constitute 38 per cent of total advertisement spends followed by display advertisement
at 29 per cent, as per the study.
The Internet's share in total advertising revenue is anticipated to grow twofold from eight per cent in 2013 to 16 per
cent in 2018. Online advertising, which was estimated at Rs 2,900 crore (US$ 429.9 million) in 2013, could jump
threefold to Rs 10,000 crore (US$ 1.48 billion) in five years, increasing at a compound annual rate of 28 per cent.
Road Ahead
The advertising and marketing sector in India is expected to enjoy a good run. Growth is expected in retail
advertisement, on the back of factors such as several players entering the food and beverages segment, e-commerce
gaining more popularity in the country, and domestic companies testing out the waters. The rural region is a
potentially profitable target. For instance, in the automobiles sector, the focus of two-wheelers on rural areas could
mean more launches and more advertising spends. The telecom sector could see growth as well, driven by better
smartphone penetration and service providers cutting down on prices.
Exchange Rate Used: INR 1 = US$ 0.0149 as on September 30, 2016
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INTERNATIONAL SCENARIO
The world advertising industry is characterized by a large number of small and medium sized advertising agencies
that operate primarily in one country and by a small number of very large advertising agencies with operations in
many countries. These agencies have developed extensive networks of offices throughout the world in order to
coordinate the advertising process in all the countries where their clients do business. These networks often include
both wholly-owned subsidiaries and formal relationships with local advertising agencies to establish a presence in
new markets, particularly in emerging markets.
The world is changing and the marketing styles have also changed. Business has attained a global scope today.
Because of the rapid technological advancements in communication opportunities, it wouldn’t be wrong to say that
today’s generation actually lives in a global village. Communicating with someone has just remained a click
faraway. Consequently, businesses and consumers now have access to services and products from throughout the
world. International internet marketing and multilingual website marketing are the buzzwords today.
In today’s era of globalization, the market targeted is the entire world community. This requires detailed research
and analysis of foreign markets and their customer preferences. By adopting an international marketing
strategy common to all markets, you are taking a wise yet risky decision. The decision is risky because you would
be required to make all the possible amendments in your strategy for suiting expectations of various foreign
countries and its customer base but by adopting a common strategy you avoid all the hassles of multi-domestic
approach which involves adopting unique strategies for particular markets. This is the reason why international
internet marketing has developed so rapidly.
Firms which are involved in the business of international internet marketing have a huge market capitalization.
Although the percentage sales on the internet form a very small portion of the total sales of a global organization
but by seeing the trend of last couple of years, things will definitely tilt highly in the favor of it very soon.
Globalization has led to the homogenization of consumption patterns and tastes and hence, by adopting multilingual
marketing, firms can cater to the needs of their customers in their own local language worldwide without even
having to change their marketing strategy. By adopting a common international marketing strategy for customers
worldwide, organizations can also achieve economies of scale through multilingual marketing if that is what their
aim is. The cultural differences between the perceptions of customers from two different countries are solved by
employing multilingual advertising.
It has been found in a study that about 99% of the people worldwide search for information on the internet by using
their local or native language. Just to substantiate the importance of multilingual website marketing, consider the
fact that by using German, Spanish, French and Italian websites, organizations can connect with 74.1% of European
population using internet whereas with English websites they can cater to 16.6% only. A multilingual website
marketing strategy not only involves translation of words but also user experience and brand
experience. Multilingual advertising allows users to find the required information quickly, easily and as it is in their
own local language, the information presentation manner suits their cultural perceptions too.
It has been predicted that very soon we will see multinational portals dominating the international internet
marketing scene. All the online advertisers and global companies will be targeting these portals for marketing their
services and products. This will suit the common international marketing strategy principle even more.
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COMPANY PROFILE
In a crowded product market, as companies are increasingly falling short of ways to differentiate their products
from those of the competitors, Image Advertising seems to be a way out. This article highlights the major tenets of
Image Advertising, by looking at the advertising strategies adopted by PepsiCo and Coca Cola in India. The model
developed herein seeks to understand, among many other things, the evolution of a brand, and its role as an integral
part of a company’s brand portfolio.
PEPSICO, INC.
PepsiCo, Inc. (stylized as PEPSICO) is an American multinational food, snack and beverage
corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing and
distribution of grain-based snack foods, beverages and other
products. PepsiCo was formed in 1965 with the merger of
the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi to a broader range
of food and beverage brands, the largest of which have included
an acquisition of Tropicana Products in 1998 and the Quaker
Oats Company in 2001, which added the Gatorade brand to its
portfolio.
As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion apiece, and the
company's products were distributed across more than 200 countries, resulting in annual net revenues of
$43.3 billion.
Based on net revenue, PepsiCo is the second largest food and beverage business in the world. Within North
America, PepsiCo is the largest food and beverage business by net revenue. Indra Krishnamurthy Nooyi has been
the chief executive of PepsiCo since 2006. The company's beverage distribution and bottling is conducted by
PepsiCo as well as by licensed bottlers in certain regions. Approximately 274,000 employees generated $66.415
billion in revenue as of 2013.
PepsiCo entered India in 1989 and in the short span of a little more than a decade
i t became the country's largest selling soft drinks company. The Company has investedheavily in India making it
one of the largest multinational investors. The group has built an expansive beverage, snack food and exports
business and to support the operations are the groups of 43 bottling plants in India, of which 15 are
company owned and 28 are franchisee owned.
PepsiCo's product mix as of 2015 (based on worldwide net revenue) consists of 53 percent foods, and 47 percent
beverages. On a worldwide basis, the company's current products lines include several hundred brands that in
2009 were estimated to have generated approximately $108 billion in cumulative annual retail sales.
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Pepsi
Pepsi began with the ‘Yehi hai Right Choice Baby ‘campaign, featuring celebrity endorsers such as Shah Rukh
Khan among others. The focus, as is clearly evident, is on the product with the youth as its target segment. ‘Yeh
Dil Mange More’ and ‘Yeh Pyaas Hai Badi’’ were some of the later campaigns.
Yeh Dil Mange More campaign was again a great success, having balanced the emotional as well as the functional
appeal of the product. Featuring Sachin Tendulkar and many other leading stars at that point of time, this was
also one of the longest campaigns carried out by Pepsi.
7 UP
In its early days, 7 UP inherited the global Fido-Dido campaign for promotion in India as well. However, with
changing times and a contextual difference in India, a much more focused campaign was required. This led to
the ‘Keep It Cool’ campaign, which was targeted primarily at the youth and the teenager segment. The recent
campaign of ‘Bheja Fry’ essentially leverages on the same emotional appeal where the ‘Keep It Cool ‘campaign
has been somewhat tweaked to have a local appeal.
Mountain Dew
Mountain Dew is the latest entrant in the product portfolio. This product too has the appeal of being the drink of
a daredevil or the ‘No Fear’ personality. The campaigns launched include ‘Do the Dew’ and ‘Dar Ke Aagey Jeet
Hai’. The initial campaign was unclear in terms of its appeal and the target segment, as a result of which the
brand suffered some jolts in the beginning. However, the latest campaign captures the No Fear or the Macho
Man image. In this sense, the brand directly competes with Thums Up from the Coca Cola Stable.
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Period Growth
2001-02 to 2006-07 6.50%
2004-05 to 2009-10 5.40%
2009-10 to 2014-15 3.50%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2001-02 to 2006-07 2004-05 to 2009-10 2009-10 to 2014-15
Interpretation: It is clear that the market growth rate for Cold Drinks has been declining with changing
times. This may be because with time, people are becoming more health conscious and hence impact of
Advertising on people has decreased then in the past.
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SEGMENT SHARE
Rural 30%
Urban 70%
30%
70%
Rural
Urban
Interpretation: It has been observed that soft drinks consumption is at a height in Urban areas while
very low in Rural Areas. Cold Drink Companies has to base their advertising and marketing strategy on
the Rural Market to cover the unexplored Market Segment.
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61 and above
41-60
21-40
Pepsi
16-20 Coca Cola
15 and below
0.00% 5.00%
10.00%15.00%
20.00% 25.00%
30.00%
Note: It is to be noted that the sample size of my analysis has reduced from 100 to 65 since 15 respondents doesn’t
drink Cold Drinks while 20 respondents prefer Cold Drinks other than Pepsi or/and Coca Cola.
Interpretation: It is clear through the research with the help of questionnaires those people aged groups
21 to 40 prefer harder cold drink like Coca Cola more than Pepsi while people aged 16 to 20 prefer a
softer cold drink like Pepsi.
It is worthy to be noticed that young people between the ages of 16 to 40 like Cold Drinks the people of
younger or higher age.
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35.00%
30.00%
25.00%
20.00%
Coca Cola
15.00%
Pepsi
10.00%
5.00%
0.00%
Male Female Others
Interpretation: It has been noticed that more Males prefer Coca Cola while more Females prefer Pepsi
while other category gender prefers Pepsi. Advertising Campaign of Coca Cola should focus more on
Female and Other category of gender while that of Pepsi should try to cover the Male Segment of the
Market.
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20.00%
15.00%
10.00%
5.00%
Coca Cola
0.00%
Pepsi
Interpretation: It has been observed that Coca Cola and Pepsi preference has almost been equally
distributed among different educationally leveled respondents. It is also to be noticed that professionals
prefer Coca Cola and Pepsi the least. It may be concluded that with increasing level of education, people
become more conscious about their health; also that advertisement may affect more educated people the
least.
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Advertising Media and its Impact: A case study on Coca Cola and Pepsi
Drink
Doesn't Drink
Number Percentage
Drink 85 85
Doesn’t Drink 15 15
TOTAL 100 100
Interpretation: It is to be noted that 85% respondents drink Cold Drinks while 15% doesn’t drink.
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45.00%
40.00%
35.00% Number Percentage
30.00% Coca Cola 38 44.71
25.00% Pepsi 27 31.76
20.00%
Others 20 23.53
15.00%
10.00% TOTAL 85 100
5.00%
0.00%
Interpretation: It is observed that most people prefer Coca Cola with 44.71% while Pepsi is preferred by
only 31.76%.
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100%
80%
60%
Pepsi
40%
Coca Cola
20%
0%
Watch
Doesn't Watch
Never Watched
Interpretation: It is to be noted that most people watch advertisements while 4.62% doesn’t watch and
1.54% respondents claim to have never watched an advertisement. This observation clearly proves how
advertisements have reached the masses.
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Unsure
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Interpretation: While most respondents think that advertisements are important, 24.61% people think
that it is not required.
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11. Percentage of people who have seen advertisements for their preferred Cold
Drink
50.00%
45.00%
40.00%
35.00%
30.00%
25.00% Coca Cola
20.00%
15.00% Pepsi
10.00%
5.00%
0.00%
Watched
Didn't Watch
Interpretation: While most people have watched the advertisements of their preferred Cold Drink, few
respondents haven’t watched. Hence, it can be said that somewhere advertisements may have an influence
on a consumer for their choice of Cold Drinks.
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45.00%
40.00%
35.00%
30.00% Pepsi
25.00%
20.00% Coca Cola
15.00%
10.00%
5.00%
0.00%
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Interpretation: It is to be observed that Television is the most popular media of advertisements and
Newspapers is the least popular. It can be concluded that media with visual as well as audio reaches the
mass more than any other media.
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Price
Packaging
Pepsi
Coca Cola
Smell
Taste
0.00%
10.00%
20.00%
30.00%
Interpretation: Taste, Packaging and Price of Coca Cola attract more consumers then for Pepsi while
smell of Pepsi attracts more consumers than Coca Cola.
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35.00%
30.00%
10.00%
5.00%
0.00%
Influenced Not Influenced Unsure
Interpretation: Most people are influenced by advertisements to consume their favorite Cold Drink, i.e.
Coca Cola or Pepsi. It can be said that Advertisement plays an active role in influencing consumer choices.
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Others
Tagline
Theme
Pepsi
Coca Cola
Good Music
Famous
Personality
Note- Here total number of respondents has changed because those respondents has been ignored for this element
of data analysis who had said that their consumption choice was not influenced by advertisements.
Interpretation: Most attractive element in an advertisement for Coca Cola and Pepsi are their Taglines.
It is worthy to be noted that consumers/viewers are more attracted by Pepsi’s advertising Tagline than that
of Coca Cola. While Good Music and Famous Personalities in Coca Cola advertisements attract more
consumers then that of Pepsi.
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20.00%
15.00%
10.00%
5.00%
0.00%
Necessary
Very Coca Cola
Necessary Not
Necessary Unsure Pepsi
Interpretation: Averagely most people think that advertisements are either necessary or very necessary
for the sale of Coca Cola and Pepsi. While 21.54% people think that advertisements are not necessary.
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30.00%
25.00%
20.00%
Coca Cola
15.00%
Pepsi
10.00%
5.00%
0.00%
Aware Unaware Unsure
Interpretation: Most people think that advertisements have helped them to become aware about the
brand and make of the products they prefer to consume.
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30.00%
25.00%
20.00%
15.00%
Pepsi
10.00%
Coca Cola
5.00%
0.00%
Education
Likings
Standard of
Living Others
Interpretation: Most people think that Standard of Living of different people is the reason behind
differing impact of Advertisements on them and very few people give education as a reason.
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Advertising helps to make consumers aware of a product and aims to build preference for that product over its
competitors. If advertising succeeds in these two tasks, consumers will choose the advertised product when they
make their next purchase. However, building awareness and preference through advertising is a cumulative process.
A single campaign only raises awareness for a short period, so it is important to allocate the budget for advertising
over a period of time to sustain high levels of awareness and use.
In a discrete-choice model, consumers face choice sets that evolve according to their awareness of each product.
Advertising media have a dynamic effect in the sense that they raise consumer awareness of a product, increasing
present and future sales.
Advertising is the arm of marketing concerned with sending messages to customers via traditionally one-way
communication media. Advertisements can be created to appeal to a mass audience or a select target niche.
Advertising can have a significant impact on the success of small and large businesses alike, and a sizable industry
exists specifically to conceptualize, create and distribute advertisements.
Advertising strategies serve a variety of purposes. For new companies, brands or products, ads can serve to inform
customers about the new product and stimulate interest in the marketplace. For existing players, ads can remind
customers of the product's value, suggest new uses for the product or encourage repeat purchases through
promotions. Advertising can have a large impact on new businesses by creating large barriers to entry in established
markets. Well-known companies with large advertising budgets and market-wide name recognition can have a
significant competitive advantage over fledgling competitors. Companies with large budgets can also create
counter-campaigns to negate the effects of new companies' advertising efforts.
Businesses can choose to produce advertisements in-house -- using the expertise of the owner or by employing
specialists in their marketing departments — or to use the services of an advertising agency. The importance of
advertising to all types of businesses has given rise to an entire industry of professional advertising consultants and
ad production agencies. Using an ad agency can help you to produce high-impact advertising campaigns, but the
cost can be high for newer companies.
As a general trend, personalized advertisements are gaining popularity for a wide range of products and services.
Intelligent ad placement mechanisms, such as Google's AdWords and Facebook ads, ensure that ads are viewed by
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the right people, maximizing the efficiency of advertising expenses. Advertisements sent to email and cellular
phones can also be highly personalized, sending the viewers ads that for products complementary to things they
have recently purchased.
CONCLUSION
Advertising finds its position in every organization, being incorporated or associated with the marketing processes.
Advertising can be defined as another strategy as an approach towards competitive advantage. Various advertising
concepts are in the stream of the media but still there is a little evidence that advertising can significantly help the
organization boosts its performance. In terms of sales, it is true that the application of the marketing and its associate
strategies can gain the consumers’ trust and loyalty, and in return, can enjoy the benefits of the market share.
Advertising is one of the largest generators of revenue in the world economy. It generates employment directly and
indirectly and influences a large section of people. An advertisement interest, entices, intrigues and entertains, and
creates life style.
Advertisement stimulates demand; this stimulation is because of the availability of the product, discounts offered if
any and the expectation of the fulfillment of latent and aroused needs. It counters competitive moves by combining
with other promotion elements. It differentiates the company’s offer from other products and builds a brand image
of its own.
The application of psychological theories to advertising provides an understanding of how consumers process
advertising messages and make purchase decisions. Theories of attention, information processing, attitude
formation, and decision making all have relevance to understand how advertising affects consumer.
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RECOMMENDATIONS
Advertising Media should be selected according to the preferences of the consumers.
More attention should be given in the making of advertisements to make it effective for the sale of Soft
Drinks.
The indoor media reaches to more number of prospective consumers, hence the advertisement of Pepsi and
Coca Cola should be shown in local channels and local newspapers also.
Advertisements tend to have a small term affect on the consumer, and hence it should be in a regular display.
Sometimes outdoor media of advertisements can also be selected as it also reaches certain category of
consumers and is relatively cheaper form of advertisement.
PepsiCo and The Coca Cola Company should conduct a regular market survey to know the needs of their
customers and their level of satisfaction with the product.
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BIBLIOGRAPHY
SOURCE AUTHOR
TEXT BOOKS
Business Research Methods William G. Zikmund
INTERNET
www.wikipedia.org
www.pepsicoindia.co.in
www.coca-colaindia.com
www.niir.org
www.tejas.iimb.ac.in
www.literophile.org
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