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Impact of Advertisement on the Brand

Preference Towards
Soft drink in (Ludhiana city)

SUBMIT TO: SUBMIT BY:


Mr. PRANAV RANJAN
DEEPAK SHARMA
MBA (IB)

INTRODUCTION

INDIAN SOFTDRINK 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 million; bread and biscuits 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 packaged 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 different parts of the country have
heterogeneous tastes. Dust tea is popular in southern India, while loose
tea in 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 (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 25million crates per month
during peak season to 15 million during off-season. The market is
predominantly urban with 25 per cent contribution from rural areas.
Coca cola and Pepsi domain

GROWTH OF SOFT DRINK MARKET


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 Cola products
account for nearly 61-62% of the total soft drinks market.
MARKET:

Two global majors’ 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 crore with growth rate of around
10-15%.

The production as soft drinks has increased from 5670 million bottles in
1998-99 to 9783
million bottles in 2000-2008 industry source

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 space 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 sponsor.
dvertising is targeted messages that communicate information from a
company to individual and groups of consumers. This medium allows
companies to draw consumers to the company's goods and services. In
can also influence consumer buying behavior, which helps companies
increase sales revenue.

Advertisement is a mass communicating of information intended to


persuade buyers to by

products 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


iii It is a commercial communication because it is used to help assure
the advertiser of a long
business life with profitable sales.
(iv) Advertising can be economical, for it reaches large groups of
people. This keeps the cost per message low
.
(v) The communication is speedy, permitting an advertiser to speak to
millions of buyers in a matter

Information in Advertising

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 problems.

(iii) The content of the advertisement is within 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

MEDIUM OF ADVERTISING

 NEWSPAPER and Magazines

 Radio and Television

 Store sign, motion pictures

 Label stags and other literature accompanying merchandise

ADVERTISING OBJECTIBES
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
consumers should be specifically identified and that the effect which
advertising is intended to have upon the consumer should be considered
it.

The main objective of Advertising

(i)To communicate with consumers.


(ii) To retain the loyalty of present and former consumers. Advertising
may be used to reassure
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

REVIEW OF LITERARTURE
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
dealer and consumer confidence in the company and its products by
building similarity.

one may succeed in achieving buyer acceptance, preference, or even


demand for 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 is more than a tool for selling foods 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
Review of literature : 1
.
:Investigated the different advertisement effects on the purchase
behavior of
consumers of high loyalty increase brand and product purchase when
advertisement for that brand increases, little switching occurs from
competitive brands into the advertised brands. Effect of increased
advertising carry over a few months after that advertising is lowered
back to normal levels.
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 contain edei ther strong or
weak arguments for the product and featured either prominentsports
celebrities orany citizen or endorser. The manipulation of argument
quality had a greater impact of attitudesunder high than low
involvement, but manipulation of endorser had greater impact under low
thanhigh involvement. These findings were consistent with the views
that there are two relatively distinctive routes to persuasion

REVIEW OF LITERATURE
. NO:2

n this article (Are Advertisements Waste) remarked that the


advertisement is one of
the least importance determents of purchase behaviors. The TV
commercials albeit being the most popular form of advertisements have
little impact on the purchase behavior of 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

Review of literature no 3

KARALI(1989)

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 appeals.
Review of Literature No 4
POLITZ(1990)
He found that purpose of campaign most often is to built 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 ofthe advertised
product often enables the advertisers to hold a long distance with the
shoppers when the advertisement is heard or seen thereby enhancing its
effects on the buyer at the time of purchase

Review of Literature No 5
Biel and Bridgewater
.

Found that commercial liking of a


campaign went far 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 linking commercial liking to persuasion
in first case. Secondly the novel approach originality seems to have little
to do with how a commercial will be liked. Further liking was a function
of product category at least to the extent that 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.

Review of Literature no6


Unnava and Brunk rant 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 toads 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.

brand is affected by increasing level of


Advertising clutter. The findings suggest that at the current level of
Advertising clutter on TV, it may be that neither recognition nor recall
of brand is affected to any great by significant increase in advertising
clutter.
Review of literature No7
Singh and code (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 sec ads are as effectiveness informational 30 sec
ads in general situations. They also found that emotional 30 sec ads are

Review of literature no 8
Menon
:In an article titled “the comparative advantage” has written that compar
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 kind 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 string ant 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.

International Advertising and International sponsorship respectively


influence the local target group in different ways, but also affect
International brand , they have an impact on brand image and brand
equity. More over depending on a person’s age consumers view brands
differently and thus have an effect on International brand alone, but also
in combination with International Advertising and International
sponsorship together these factors influence the way in which a brand is
perceived.

The difference in presentation

of a Good, Bad & Ugly advertisement is mainly owing to the sponsor's


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 unacceptable 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 lais not excused, ignorance
about good & bad taste should not be excused. It may have far more
significance for the betterment of the society, & its people
equally in l he authors examine switching and repeat purchase effects
of advertising in mature, frequently purchased product categories. They
draw on consumer behavior theories of framing and usage dominance to
formulate a logic 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 consumers 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. Influence consumers preferences. he
authors examine switching and repeat purchase effects of advertising in
mature, frequently purchased product categories. They draw on
consumer behavior theories of framing and usage dominance to
formulate a logic 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 consumers 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.

Vijay Pithadia (Evaluating International Advertising Techniques &


Oppurtunity)
Over the years, the public perception of advertising has become 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 (stating opinions or untruths directly as facts),
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 this increase awareness of the intention of
advertising, as well as advertising regulations that have increased the
challenges that marketers face

John Deighton : (The Effect of advertising on Brand Switching and


Repeat Purchasing

The authors examine switching and repeat purchase effects of


advertising in mature, frequentlypurchased product categories. They
draw on consumer behaviour theories of framing and usagedominance to
formulate a logic choice model for measuring these effects. They
estimate the modelusing single-source scanner data. Their results
suggest that advertising induces brand switching butdoes not affect the
repeat purchase rates of consumers who have just purchased the brand, a
resultconsistent with usage dominance rather than framing. They find
the switching influence to belargely confined between the current and
previous purchase occasions. They illustrate themagnitude of this effect
and explore potential profitability
OBJECTIVE
1. To study the impact of the advertisement on the brand preference of
consumers
2. To study consumer perception related to most important
Advertisement

REFERNCES
Text books
Business Research Methods
Journal:
1. UNNAVA and BRUNKRANT 1991
2. MENON 1994
INTERNET:
The COCA COLA COMPANY
1. www.coco-colaindia.com/

2. www.coke.com.au/about
3. www.Coca-colaindiaWikipedia.org

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