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Measuring the Advertising Effectiveness of Lenovo laptop and Its Effect on Consumer Buying Behavior
A PROJECT REPORT SUBMITTED TO REGIONAL COLLEGE OF MANAGEMENT AUTONOMOUS IN PARTIAL FULFILLMENT FOR PGDM DEGREE
Submitted By:
Prata behera
Regd. no. 1001247147
Faculty guide:
Prof. Prabhuram
Tripathy (Marketing)
ACKNOWLEDGEMENT
This project report will be helpful in analysis of perception of Customers towards advertising of Lenovo laptop and also measure the effect on consumer buying behaviour. I exuberantly thankful to Prof. Prabhuram Tripathy (Marketing) Asst. Professor, RCMA, Bhubaneswar who guides me and help taking right direction in field work. I further welcome inspiration and suggestion to make it best. At last I thanks to all respondents, whom I interviewed and who has given me their valuable time and views regarding this topic and they has helped me to understand the issues related to this topic.
Preface
This report is a humble attempt to sketch the advertising effectiveness of Lenovo laptop and its effects on consumer buying behavior. This project report will be helpful in analysis of perception of Customers towards advertising of Lenovo laptop and also measure the effect on consumer buying behavior. I am very thankful to Prof. Prabhuram Tripathy (Marketing) Asst. Professor, RCMA, who allowed me to take my project in HUL. I invite suggestion and convection with open heart for further incorporation and improvement of this project report.
DECLARATION
me is a true work of myself and is not submitted to any other university or published at any other time before the purpose of any degree. All data regarding is solely meant for academic use only.
Place: Date:
TABLE OF CONTENT
Acknowledgements Preface Summary 1. Introduction Objectives Limitations Methodology 2. Advertising Introduction Medium of advertising 3. Company Profile Introduction Products of HUL 4. Literature Review Overview 5. Research & Methodology Data Collection and Procedure Sampling Questionnaire Testing
Summary
This project is mainly based on first hand observation in the market, the way customers perceive the various advertisements and in way it effects their buying behavior. The Study which I had done in this was about to analyze the advertising effectiveness of Lenovo laptop and its effect on consumer buying behavior. First of all I had to go with some past studies which are called Literature review to know the way of completing the project or some valuable ideas regarding my studies. After literature review, I came to know that what variable I should include in my study, considering those variables I prepared the questionnaire to know the desired results and checked it with one small sample i.e. 10people. During testing the questionnaire, I came to know some points which i had to change in the questionnaire to put off the confusion of the respondents. Then I collected the data of 50 people using convenient sampling. Information was collected related to the effect of advertising on consumer buying behavior with the help of a questionnaire. Then I summarized all the data, and test it with questionnaire on Likert Scale. I made all the calculations with the help of EXCEL 2007.
INTRODUCTION
Objectives of Study:
The main aim of undertaking this study is to accomplish the following objective: To study the consumer buying behavior. To study the impact of advertising of Lenovo laptop on consumer buying behavior. Conducting a market survey and understanding the customer perception. Analysis of customer awareness of product.
Limitations of Study:
Though the present study aimed to achieve the above-mentioned objectives in full earnest and accuracy, it was hampered due to certain limitations. Some of the limitations of this study may be summarized as follows: Presence of various advertising medium. It may be possible that the same tools are being used by the different companies. Time was a major limiting factor and it was very tough to get the time of the survey and other activities because of the study. Unwillingness on the part of few respondents to disclose the information.
Getting accurate responses from the respondents due to their
inherent
Methodology
The objective of the present study can be accomplished by conducting a systematic
market survey. Market Research is a systematic design, collection, analysis and reporting of data and finding that are relevant to different market situation facing by the company. I had to know the advertising effectiveness of Lenovo laptop and its effect on consumer buying behavior. I prepared one questionnaire, which I tested with 10 people data; it also helped me to rectify the questionnaire where some questions were confusing the respondents. For this synopsis, the fit with a quantitative study is better because of the need for several different views on the questions and to decrease the factor of that different people think differently. For quantitative, the corresponding are; structured observations, interviews and surveys, and attitude scaling. I used the convenience sampling method to collect the data. First of all, I interact with them and find out 50 such customers who use the Lenovo laptop in daily life.
ADVERTISEMENT
ADVERTISEMENT is a tool of marketing that disseminates information about a brand which is aimed at a large no. of people at the same time. To reach the masses, Advertising has to buy space or time in one or more media of mass communication such as radio, TV, newspapers, magazines.
ROLE OF ADVERTISEMENT:
The human race in constant pursuit of fulfillment. Apart from necessities of food and shelter, one learns to desire many things, which also become indispensible over a period of time. An average economic system caters to the needs as well as desires of its people. Advertising is an integral part of this activity and is one of the most visible elements in providing information about products, services and ideas. Good advertising, however as put succinctly by someone, is not to say anything to say everything to sell something worthwhile. Advertising is a key element in the promotional mix of marketing. It is a tool used by marketers to reach out to the end users of products and services. Advertising is expected to create a brand image and build brands. it is a medicated communication which entails buying space and time in mass media,
New product needs introduction because potential customers have never used such product earlier and the advertisements prepare a ground for that new product. 2. Creation of Demand The main objective of the advertisement is to create a favorable climate for maintaining of improving sales. Customers are to be reminded about the product and the brand 4. Facing the Competition Another important objective of the advertisement is to face to competition. Under competitive conditions, advertisement helps to build up brand image and brand loyalty and when customers have developed brand loyalty, becomes difficult for the middlemen to change it. 5. Creating or Enhancing Goodwill: Large scale advertising is often undertaken with the objective of creating or enhancing the goodwill of the advertising company.
Medium of Advertising
Magazines: Print advertising describes advertising in a printed medium such as a
newspaper, magazine, or trade journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics Television: The TV commercial is generally considered the most effective massmarket advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events.. Radio: Radio advertising is a form of advertising via the medium of radio. Radio
Billboards: Billboards are large structures located in public places which display
advertisements to passing pedestrians and motorists. Most often, they are located on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed in any location with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office buildings, and in stadiums. Online advertising: Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.
Lenovo laptop
About Lenovo
Lenovo creates and builds exceptionally engineered personal technology, but we are much more than a tech company. We are defining a new way of doing things as a next generation global company. That means we are years ahead of the game in terms of understanding what it will take to win 5, 10 years from now. Formed by Lenovo Groups acquisition of the former IBM Personal Computing Division, Lenovo builds on its dominant position in China to grow globally. The expansion from East to West such as by introducing our newest products in China and then spreading across the globe is a new way of viewing the world, one we believe will be the way of the future. That focus on the future is based on a strong history of success that is driving results today. Long the leader in China, Lenovo is growing rapidly and winning market share in all parts of the world. This balanced growth is what has made Lenovo the fastest growing major PC company and enabled us to consistently grow faster than the market. Achieving optimal balance in all that we do is Lenovos operating philosophy. This mindset encompasses every aspect of Lenovos business, from balancing leadership with consensus-building, to valuing both short- and long-term thinking. As a result, we have created a balanced business model and strategy that take maximum advantage of profit and investment across both core and new businesses. The result is balanced performance and market share growth across all regions, customer segments, products and business models. Our mission is to become one of the worlds great personal technology companies. We aspire to achieve this objective by leading in three key areas: Personal Computers: Lead in PCs and be respected for our product innovation and quality. Convergence: Lead the industry with an ecosystem of devices, services, applications and content for people to seamlessly connect to people and web content. Culture: Become recognized as one of the best, most trusted and most well-respected companies to work for and do business with.
Our Values
At Lenovo we view our culture as a critical asset as important as an effective business model. We call our culture the Lenovo Way, and at its most basic, that culture is reflected in the statement: We do what we say and own what we do. Our values serve as the foundation of our company and define who we are and how we work. Principal among them are: Serving Customers Trust and Integrity Teamwork Across Cultures Innovation and Entrepreneurial Spirit
Our Heritage
Lenovo came about as the result of the merger of two of the most storied companies in technology and business: Legend Holdings in China and IBMs Personal Computing Division in the United States. The merger was heralded as a watershed event in global business with the potential for integrating two disparate cultures, languages, processes and markets. As a result, Lenovo embodies the unique market possibilities in combining the best of East and West -- joining North American and China-based technology players in the creation of a unified global PC leader with growing market positions in developed and emerging markets alike. With more than $16 billion in annual revenue, Lenovos market strength spans not only market geographies but also the worlds consumer and business PC markets.
A Worldwide Leader
Lenovo is one of the worlds largest makers of personal computers and makes the world's most innovative PCs, including the renowned ThinkPad notebook as well as products carrying the ThinkCentre, ThinkStation, ThinkServer, IdeaCentre and IdeaPad sub-brands. Today, Lenovo is a global corporation with significant operations on six continents and operating in more than 60 countries and selling products in 160. Everyone at Lenovo takes great pride in our ability to attract top talent from diverse backgrounds and from around the world. We view our differences and diversity as a source of strength in building a collaborative culture that helps us achieve our goals. We have no world headquarters and, instead, have put in place a distributed management structure that places operational hubs in centers of excellence around the world integrating this talented, diverse group into a cohesive Next Generation company. Our multicultural management team is free to convene wherever and whenever it makes the most sense. Lenovo has operations hubs in Beijing, Raleigh, NC, and Paris, a marketing hub in Bangalore, India, and major research centers in Yokohama, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. The company employs more than 23,000 people worldwide, including 1,700 designers, scientists and engineers, representing a broad collection of nationalities and languages but at the same time working with one unified language and vision: to build the worlds most exceptionally engineered personal computers.
donations for disaster relief while hundreds more lined up to donate blood. In addition, Lenovo has committed 1% of its pre-tax income to programs and initiatives that serve society to address issues in areas of great need, no matter where those areas or issues happen to be. Our Competitive Spirit Lenovos thirst for excellence extends from our products to our sponsorships. The global spotlight shone brightly on the Lenovo brand during the 2008 Olympic Games in Beijing, where the company leveraged its role as a global partner of the International Olympic Committee and presenting sponsor of the Olympic Torch Relay. What's more, Lenovo demonstrated its technical strengths in delivering a flawless performance that met the unprecedented demand of the Beijing Games. A network of 30,000 pieces of equipment, including desktop and notebook computers, touch-screen devices and printers supported by more than 600 Lenovo engineers. Building on the success of its sponsorships of the Beijing Olympic Games, Lenovo performed a similar role in providing technology and support for the Shanghai World Expo in 2010.
Nature of Data 1. Primary Source: Data which is collected for the first time and for a specific purpose.
So I had to prepare one questionnaire to collect the responses from 40 people all around the City. Sources of Data: Primary Data is collected from investors from the different locations in BBSR like: From my friends From college
Sampling Method
The selection of a sample from a defined target population requires the construction of a sampling frame. The sampling frame is commonly prepared in the form of a physical list of population elements. A well-constructed sampling frame allows the researcher to take hold of the defined target population without the need to worry about contamination of the listing with incorrect entries or entries which represent elements associated with the excluded population.
Types of Sampling:
Probability sampling:
because they just happen to be situated, spatially or administratively, near to where the researcher is conducting the data collection. The main assumption associated with convenience sampling is that the members of the target population are homogeneous. That is, that there would be no difference in the research results obtained from a random sample, a nearby sample, a co-operative sample, or a sample gathered in some inaccessible part of the population.
Variables:
Variables are of two types: Dependent variables and independent variables refer to values that change in relationship to each other.
Dependent Variables:
Independent Variables: Dependent Variable under study Consumer Buying Behavior
Questionnaire Testing:
Once the questionnaire was prepared it was filled by at least 20 clients due to whom a number of mistakes were identified in the questionnaire. Problems which were overcome in revised questionnaire: Contradictory questions were eliminated so as to remove any kind of misunderstanding and confusion in understanding the objective of taking the information. Conditions were given so as to make a client convenient in answering the correct question as per our requirements. Options were changed so as to make the data analysis easy and convenient and the problem faced by the clients in verbalizing the information to be provided can be eliminated. Language of the questions was simplified so that clients can easily understand and answer them appropriately. Then I collected the data of 50 people through Convenience sampling and now I had to present this data as per the given frequency, which I had collected through questionnaire.
4 3 2 1
6 5 4
25% 25% 0 0
5
2 1 0 1 2 3
3
2
Table -1 Rating
1
4 5
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 50 percent belongs to strongly agree, only 25% belongs to agree, 25% belongs to neither agree nor disagree, 0% belongs to DIS agree and only 0% strongly dis agree.
4 3 2 1
12.50%
5
12.50%
4
12.50%
3
Respondent Percentages
62.50% 5 4 3
Rating
2 1 0 1
2
1
2 3 4 5
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 12.5 percent belongs to strongly agree, only 12.5% belongs to agree, 12.5% belongs to neither agree nor disagree, 62.5% belongs to DIS agree and only 0% strongly dis agree
I consider television as the most trustable media for buying Lenovo laptop Table-3
Rating Respondent Percentages
5 4 3 2 1
6 5 4 3 2 1 0
50% 37.50%
12.50%
2
4
1
5
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 50 percent belongs to strongly agree, only 37.5% belongs to agree, 0% belongs to neither agree nor disagree, 12.5% belongs to DIS agree and only0% strongly dis agree .
I am mostly influenced by the lady celebrity in the ads for Lenovo laptop
Table-4
Rating 5 Respondent Percentages 37.5%
4 3 2 1
35.00%
5
27%
4
23%
3
5
2 1 0 1 2 3
13% 4 3 2
4
2% 1
5
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 35 percent belongs to strongly agree, only 27% belongs to agree, 23% belongs to neither agree nor disagree, 13% belongs to DIS agree and only 2 % strongly dis agree
Banners hoardings related to Lenovo laptop often persuades me to make a purchase Table-5
Rating Respondent Percentages
5 4 3 2 1
7%
5 4 3
2 1 0 1
18%
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 7 percent belongs to strongly agree, only 20% belongs to agree, 25% belongs to neither agree nor disagree, 30% belongs to DIS agree and only 18% strongly dis agree
I am usually influenced by the ads given in magazines about Lenovo laptop Table-6
Rating 5 4 3 2 1
6 5 4 3
6%
27% 5 25% 4 3 2 1 42%
Respondent Percentages Rating
2 1 0 1
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 0 percent belongs to strongly agree, only 6% belongs to agree, 27% belongs to neither agree nor disagree, 25% belongs to DIS agree and only 42% strongly dis agree
The type of animation used in Lenovo laptop ads helps me in purchasing Table-7
Rating 5 4 3 2 1 Respondent Percentages 0 25% 25% 37.5% 12.5%
6 5 4
0 30% 20%
5
2 1 0 1 2 3
37.50% 4 3 2 1
4 5
12.50%
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 0 percent belongs to strongly agree, only 30% belongs to agree, 20% belongs to neither agree nor disagree, 37.5% belongs to DIS agree and 12.5 % belongs to strongly dis -agree.
The comparative ad shown during the Lenovo laptop ads makes a good impact in buying a product
Table-8
Rating 5 4 3 2 1 Respondent Percentages 37.5% 37.5% 0 25% 0
6 5 4
0 30% 20%
5
2 1 0 1 2 3
37.50% 4 3 2 12.50%
1
4 5
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 0 percent belongs to strongly agree, only 30% belongs to agree, 20% belongs to neither agree nor disagree, 37.5% belongs to DIS agree and 12.5 % belongs to strongly dis -agree.
Window display designs of the retail outlets selling Lenovo laptop attracts me to purchase a product
Table-9 Rating 5 4 3 2 1 50% 0 50% Respondent Percentages 0
5%
5
15%
4 3
35% 5 0 4 3 2 1
Respondent Percentages
2 1 0 1
45%
Rating
INTERPRETATION: Here the above chart describes that, out of the total 100 per cent 5 percent belongs to strongly agree, only 15% belongs to agree, 35% belongs to neither agree nor disagree, 0% belongs to DIS agree and only 45%strongly dis agree .
I quite often remember the ads shown on internet while making purchase especially related to electronic products like Lenovo laptop
Table-10
Rating 5 4 3 2 1 Respondent Percentages 0 50% 25% 25% 0
8%
5 4 3
42% 25%
5
2 1 0 1
22%
Respondent Percentages
3%
Rating
2
4
1
5
INTERPRETATION:
Here the above chart describes that, out of the total 100 per cent 8 percent belongs to strongly agree, only42% belongs to agree, 25% belongs to neither agree nor disagree, 22% belongs to DIS agree and only 3% strongly dis agree.
CONCLUSION
As my topic is measuring the advertising effectiveness of Lenovo laptop and its effect on consumer buying behavior. Analyze, so after doing some calculation, I reached on this conclusion that Positive message framing helps in influencing the buying behavior of customer. There was a high correlation between the advertisement shown on television and the consumer buying behavior. So we can say that those people who see Lenovo laptop advertisement on television has more effect on consumer buying behavior and will most probably buy that product.
BIBLIOGRAPHY
Journals Referred
Journals of Marketing
Books
Websites
www.lenovo.com Moneycontrol.com google.com
d) Word of mouth
Q2.Have you seen the advertisement of the surf excel made by the company? a) Yes b) No
c)
Dont say
Q3. How does an advertisement affect you? a) Positive impression b) Interest c) Recall
d) Desire to purchase/explore
Q4.Do you think that advertisement made by the surf excel company informs you about their Product and brand image of the company?
d) Yes e) No f) Dont say
Q5.Do you think this advertisement plays a major role in setting a washing powder? a) STRONGLY AGREE
b) AGREE c) STRONGLY DISAGREE
d) DONT KNOW
Q6. Does the picture of a famous personality in the TV advertisement make you think that?
a) The product is of high quality b) It must be expensive c) The company must be big d) The brand is facing intense competition e) It does not affect you Q7. How would you rating the quality of this advertisement among the other advertisements? (1st,
2nd, 3rd, 4th)
a) Excellent b) Good
c) Average d) Poor
Dont say
Q9.Are you think that THE tagline 'DAAG ACHCHE customers mind perception?
a) Yes b) No c) some what d) Dont say
HAINof
Q10.Do you think the company is doing right Choice by involving the children without any celebrities in their advertisement of surf excel?
a) Yes b) No c) Dont say
Q11.what features create in your mind by seeing surf excel children advertisement?
Q12.Would you think this advertisement can promote their product in the target market?
a) Yes b) No c) some what d) well e) Dont say
c)
Dont say
Q14.can this advertisement change the customer mind perception those who are not using this product? a) STRONGLY AGREE
b) AGREE c) STRONGLY DISAGREE
d) DONT KNOW
Q15.Do you think that the company tries to change the life style, high standard of performance of employees and consumer behavior of the society?
a) Yes b) No c) some what
d)
Dont say
Q16. Are