1. Minor Project
“Impact of Advertisements on Consumer Buying
Behaviour with Special Reference to Soft Drinks..”
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
OF THE DEGREE OF
MASTER OF BUSINESS ADMINSTRATION
Under the Supervision Submitted By:
Prof.Shivani Bector Hardeep Kaur
Proffesor in Management M.B.A Ist
Mata Gujri College,Fatehgarh Sahib Roll no:4902
MATA GUJRI COLLEGE,Fatehgarh Sahib
PUNJABI UNIVERSITY , PATIALA
(2011-2013)
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2. DECLARATION
I hereby declare that Project Report entitled ‘Impactof Advertisements on
Consumer Buying Behaviour with Special Reference to Soft
Drinks.’
submitted in partial fulfillment of the requirement for the degree of Bachelor of Business Administration of
Punjab Technical University, Jalandhar is my original work & has not been submitted for the award of any
other degree at this university.
Submitted by:
PLACE:DORAHA Hardeep Kaur
DATE: __________ M.B.A Ist
Roll no: 4902
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3. ACKNOWLEDGEMENT
Behind the successful undertaking is the blessing and guidance of my faculty members, my project head and
many other persons. This formal piece of acknowledgement may be sufficient to express my feelings of
gratitude and deep respect that have experienced during the completion of this project .This endeavor would
not have been successful without the help of encouragement form a lot of people with whom I had good
fortunate of increasing of journey. I am indebted to our Director Dr. R..K.Lekhi , Chief coordinator Mrs.
Supreet Kaur , Prof. V. J. Rai , for their guidance and I can easily look it as my most reward in phase the
course of my study . Without their immaculate and intellectual guidance , sustained efforts and friendly
approach , it would have been difficult to achieve the result in short span of period. I would also like to
thanks the other staff members of management department ,my teacher Mr.Raju Rosha who guides me,
my parents and my friends for their time and efforts shared with me. I would also like to thank the almighty
who has given me courage and resources to complete my project.
Hardeep Kaur
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4. PREFACE
A professional course like Business Management is to gain theoretical knowledge and practical exposure
knowledge to its application. The project work is offer to student a chance to work in the environment of the
corporate world. Therefore, we have an opportunity to gain experience on practical aspects and theoretical
knowledge.Project report is a necessary part of the fulfillment of the BBA degree course. It helps the student
to gain knowledge about various aspects of interpreting practical problem through application of concepts
and techniques of management. While unfolding this project report gradually & logically in simple language
emphasis made by conceptual understanding reasoning. A sincere effort has been made to bring the fact and
it is hoped that this report meets the jury expectation and requirements.My project is ‘Impact of
Advertisements on Consumer Buying Behaviour with Special
Reference to Soft Drinks.’Now I take this opportunity to present my report and sincerely
hope that it would be useful for readers
Hardeep Kaur
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5. CERTIFICATE
This is certify that the Major Project entitled ‘Impact of Advertisements on
Consumer Buying Behaviour with Special Reference to Soft
Drinks.’by Sheenam, Roll No.80106312001, inpartial fulfillment of requriment of
the degree of Bacholer of Business Administration(B.B.A) Punjab Technical
University, Jalandhar and no part of this work has been Submitted earlier for the
award of any degree .
PLACE :DORAHA Hardeep Kaur
DATE:_________ ROLL NO.:4902
Supervisor
Mr.Raju Rosha DR.R.K. LEKHI
Lecturer in Management Ph.D. (Economic)
DIMT DORAHA D.LITT. (Commerce)
(DIRECTOR)
For Evaluation
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6. Chapters : Particulars Page No:
1. INTRODUCTION 6
2. Review of Literature 21
3. Research Methodology 34
4. Data analysis & interpretation 39
5. Findings & conclusion 51
Bibliography & references
Annexure
Questionnaire
TABLE OF CONTENTS
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7. CHAPTER:1
INTRODUCTION
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8. INTRODUCTION
In the dictionary definitions of advertising it does not tell us too much about the modern
uses or functions of this business tool. They tell you that Advertising means to make
know, to inform, to attempt, to persuade etc. One definition, found in ‘The Reader Digest
Great Encyclopedia Dictionary’, says advertising is the act or practice of attracting public
notice so as to create interest or induce purchase, also any system or method used for such
purposes. Many people would accept this definition as simple and compact, but it is too
broad. Advertising is a non-personal, multiple presentations to the market of goods,
services or commercial ideas by an identified sponsor who pays for the delivery.
1In essence, advertising is a substitute for human salesman talking personally to an
individual prospect or customer across a store, counter, or desk or an open door. And as a
substitute for the human salesman, advertising has the same function, abilities and
attributes as the human salesman, although usually in less effective form. It is less
effective than personal selling, principally because it must be designed to appeal to a mass
audience, in contrast with the personal salesman ability to tailor his message to each
individual prospect and because again unlike the personal salesman, it has no opportunity
to talk objections. As a substitute and an extension of personal selling, advertising also has
many of the same characteristics as the personal salesman.
It can be hardworking and efficient, or lazy and wasteful. It can be upright and honest or
slick and shady. It can tell its story calmly and quietly without hyperbole, or it can shout in
your ear. It can address you as though you were a rational, thoughtful human being. It can
be serious and thoughtful, or flip and humorous, it can reason with you, or entertain you,
flatter you. It can be all these things and do all these things, but no more. Because in the
end, its success or failure and its value to the advertiser who pays all its costs must rest on
its ability to persuade a sufficient number of prospects to do what it says or buys what it
sells without the use of any kind of force.
The American Marketing Association (AMA) defines “advertising as any paid form of
non-professional presentation and promotion of ideas, goods and service by a identified
sponsor.” Advertising is a powerful means of communication, which not only leads to
corporate, and product visibility but also creates, stimulates and sustains the demand for
the product.
The past few decades have led to the emergence of vibrant consumer markets throbbing
with the excitement of consumptions. The corporate organizations of today can hardly
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9. afford to remain faceless entities and their products merely utilitarian objects. It becomes
increasingly imperative for the business houses to assume humanized character and the
product to have an emotive association through advertising effort. Advertising does the job
of reaching out to people with a se of associations and appeals.
Advertising as such has a vast power in sharing the popular desires, and hence it is one of
the institutions, which has a formidable influence on our society. It is also defined as a
powerful but difficult form of communication, which helps immensely in raising
production-sales, bringing more clientele to service sector, and even persuading people to
change their perception on social issues. It stimulates greater consumption and hence
contributes to social progress through industrial growth.
Advertising is a component of marketing mix and it is the marketing mix which
determines the kind and nature of advertising and its strategy. Advertising is an art
because it involves process of communication of the message across the audience.
Advertising is a science because it involves rules, generalization and principles relating to
collection of useful information and its application in the advertisement copy.
The present day Indian Industry is witnessing all the constituents of a market economy.
There are business concerns vying for a maximum share out of the crakes not too big to
accommodate all of them. There has been a flood of consumer goods for the buyer to
choose from. There are newer products as well as multiple brands. When it comes to
consumer goods in a market situation, there are wars on price, quality and positioning
fronts. In the light of all these things, advertising assumes a great significance. It is a key
weapon in marketing warfare. Building added values, for a brand is the prime role of
advertising. The success of effective advertising campaigns is twofold: their ability to
attract consumer trial with a compelling dramatization of the product's story, and, their
ability to communicate continuous satisfaction or even cumulative benefit as a means of
reinforcing loyalty.
According to Alyque Padamsee (1995), in the emerging high media clutter
environment, both print and electronic media advertising needs more than just to be
persuasive. It needs to be noticeable. A great advertisement is no longer one that tells you
a lot about a product rationally and emotionally. A great advertisement has to first and
foremost attract your attention.
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10. Emergence of Soft Drinks
Water is life; one cannot even think of the existence of life without it. Water constituents
are major parts of the earth as well as the human body. In the ancient times, human being
was not aware of the quality of the water he was consuming. As knowledge grew, his
concern regarding the quality of water increased. The methods like boiling, filtering &
disinfecting with chemicals into existence.But man wasn’t satisfied with change in just the
quality but wanted a change in the taste to quench thirst. This was when the concept of
flavored water came into existence. A modified aspect of this concept led to the
development of the soft drinks
The popularity of the soft drinks is indicated by the very fact that their consumption is
very high in developed countries & the soft drinks culture popularly called cola culture is
spreading rapidly in developing nations, for e.g. In just five year the consumption of soft
drinks in India itself has grown from 5%
The Indian soft drink industry:
The companies have continued to wage their war in India. In 1993, Coke with the strategic
move of buying out Parle gained a huge market share overnight. Pepsi also has spared no
efforts to gain a larger market of the market. The potential in the India market is
tremendous. India is a 330 million cases soft drinks market, that accounts to nearly Rs.
3000 crore. Moreover the Per-capita consumption of thirteen bottles in India is lagging
way behind the US's 700 bottles Per-capita consumption. The firms are pursuing this latent
demand with increased vigor.Domestic firms in India, which once enjoyed the benefits of
sheltered markets, have increasingly faced competition from the global giants in the 90's.
With the leading brands in the soft drink industry already in India, the country has become
a part of the global market. The MNCs are using sponsorship of local and international
events to market their products. They have also introduced global standards, systems and
procedures to the industry. These players in the Indian soft drink market have raised the
entry barriers, improved and expanded the distribution system, gobbled up or driven out
the smaller players and truly globalised Industry.The events in the Indian soft drink market
can be explained with reference to the global fight between Pepsi and Coke. Both have
realized that the immediate priority is in expanding the market by increasing the growth.
This has led to the Cola war really getting hot in India. In a bid to tap the market both the
firms are busy redefining their P's. They have increased the advertising spends and roped
in local celebrities.
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11. In 1993 Coca-cola had 64% market share (all brands included) whereas Pepsi stood at
23%. But with the thrust on advertising Pepsi appeared much stronger in 1977, with a
market share of 43% whereas Coca-Cola went down to 55%. Big things came later in
1998, when Coke unfolded its teen programme slowly, fist with "Eat Cricket Sleep
Cricket, Drink Only Coca-Cola” and then with "Peeti Kya Coca Cola". Now with the
latest punch line "Thanda Matlab Coca-Cola", Coke has acquired a new confidence
and is ready for an eye-to-eye confrontation.
Due to the buying of Cadbury Schweppes by Coke, the Soft drink market of India
comprises now mainly of Coke and Pepsi. The present market share of Coke is 56%
whereas that of Pepsi is 41%.
The overall scenario of the soft drink industry leaves us to just one question and that is –
"Are we about to witness the mother of all battles between Coca-Cola and Pepsi?”
What we can do is wait and watch.
Cola war
Both Coca Cola and Pepsi companies have been selling thirst quencher for 100 years and
are now global brands. Their bottles and cans move through the world's most pervasive
distribution networks. Coca-cola was born 11 years before Pepsi (in 1887) and a century
later still maintains the pioneering lead and Pepsi even now poses as a young upstart and
like the typical number two snipes harder and harder at coke. This is one duel that just
doesn't stop; there's always a new front opening up somewhere as the two march around
the world staking their claim on newly opened markets.
In global markets Coke's presence is older, going back to World War II when the US
government set up 50 plants to ensure that the Americans got their bottles of Coke
wherever in the world they were. Pepsi is a later entrant, making its first international
move in Russia in 1959 during the Krushchev era. Not surprisingly, 80 per cent of Coke's
operating profits are derived from international sales which, in turn, are four times larger
than Pepsi'. Coke is mainly a franchisee-driven operation with the company supplying its
soft drink concentrate to its bottlers around the world. Pepsi has taken the more capital
intensive route of owning and running its own bottling factories alongside those of its
franchisees. Such differences and similarities have played themselves out in the Indian
market too. Pepsi had a four season lead over Come but, having come in before
liberalization, has not given it any edge. In fact, it spent the early years fighting
bureaucracy and Ramesh Chauhan every step of the way. In comparison, Coke's entry post
1991 was a breeze. Coke got the go-ahead for a 100 per cent owned operation. Coke was
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12. able to sew up a deal with Chauhan's Parle with its 60 per cent market share and turn into
market leader overnight. Besides this, Indian people were already aware of Coke as it was
there in India for quite sometime till the Janata Dal government came in power in 1977.
Pepsi took a position in bottling realizing that Indian bottler just didn't have the ability or
vision to upgrade capacity, Coke also has woken up to this reality. But it is partnering
bottlers rather than running its own plants. Thus the present study is an attempt to study
11Q2irm will always be able to sustain volume of sales even if it spends nothing on
advertising. These sales to 'loyal' customers can be regarded as an independent variable of
advertising. Marginal return of advertising is positive but too heavy advertising will create
ill will and skepticism among the customer and thus, reduce the volume of sales. Thus,
there is increasing return to advertising upto a point, beyond that point diminishing return
starts to take effect.
Types
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers Non-alcoholic soft
drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are
carbonated drinks while mango drinks come under non carbonated category.
The market can also be segmented on the basis of types of products into cola products and
non-cola products. Cola products account for nearly 61-62% of the total soft drinks
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13. market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke,
Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories
based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and
Mango.
Close on the heels of a major health scare on finding pesticides in bottled drinking water, a
non-government organisation on Tuesday claimed that the bottled soft drinks owned by
two multi national companies -- PepsiCo and Coke -- also failed the same health standards
testing positive for pesticides.
"12 major cold drink brands sold in Delhi and around contain a deadly cocktail of
pesticide residues," Centre for Science and Environment said in New Delhi. Officials of
both PepsiCo and Coke declined to comment on the tests saying the two companies will be
holding a joint press conference later.
According to the tests conducted by the Pollution Monitoring Laboratory of CSE, all
samples contained residues of four extremely toxic pesticides and insecticides: lindane,
DDT, malathion and chlorpyrifos.
The PML team involved in the tests was Dr H B Mathur, Dr Sapna Johnson and Avinash
Kumar.Three samples each of the 12 brands purchased from markets across the city,
analysed in April-August and found to contain pesticides residues are Pepsi, Mountain
Dew, Diet Pepsi, Mirinda orange, Mirinda Lemon, Blue Pepsi, 7-Up, Coca Cola, Fanta,
Limca, Sprite and Thumbs Up.
Mathur said these pesticides included potent carcinogens which can cause cancers and
reduce bone mineral density.
Johnson said the basic inference drawn from the tests is that groundwater used for making
soft drinks is infested with pesticides. She said PML tested the cold drink samples for 16
organochlorine pesticides, 12 organophosphorous and four synthetic pyrethroids -- all of
which are commonly used in India as insecticides.
CSE chief Sunita Narain said in all the samples, levels of pesticide residues far exceeded
the maximum residue limit for pesticides in water used as "food", set down by the
European Economic Commission.
Both Pepsi and Coca Cola had almost similar concentrations of pesticide residues.
In all PepsiCo brands, total pesticides on an average were 0.0180 mg/litre, 36 times higher
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14. than the EEC limit of total pesticides at 0.0005 mg/l.In Coca Cola brands they averaged at
0.0150 mg/l, 30 times higher than the EEC limit.Mirinda Lemon topped the chart among
all the tested brand samples with a total pesticide concentration of 0.0352 mg/l.
Coca Cola and PepsiCo brands sold in the United States were also tested and found not to
contain pesticides.Narain, however, said in India, these companies cannot be taken to
court since the norms that regulate manufacturing of cold drinks here are a "meaningless
maze."
Need of the Study
Study the impact of advertisements in term of consumer preferences, recall and
purchase behavior.
As we know these days Soft Drinks Companies are advertising their
product so much on the televisions and they are spending so much money on the
advertisement of their product. In a soft drink industry the cost of advertisement is
nearly 35% of the total cost. For increasing the sale of their product they are taking
film stars, cricket-stars in the advertisement of their product which is again very
costly. They are spending so much on the sponsorship of events like cricket match etc.
So this study deals with these aspects that whether advertisement is having any effect
on the Consumers or not.
In this study data will be collected with the help of the questionnaire which will be
administrated personally to all the respondents. The questions will deal with the aspects
like recall of advertisement of soft drinks, impact of advertisement on the purchase
behavior of the soft drinks, factors influencing choice of brand and immediate reaction
after watching an advertisement and also to know the influence of advertisement on
preference of soft drinks, brand preference and reasons for brand preference. In some
questions the techniques like ranking method is also used.
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15. HISTORY OF SOFT DRINK
Now, if you are wondering: where are the giants of world cold drink industry - the Coca
Cola and Pepsi ?- well, Pepsi gained entry to India only in 1988 and as for Coca Cola here
is what happened:
According to one version Indian government threw the company out in 1977 and
according to another version the company just walked out. Indian government wanted
foreign companies to reduce their equity holdings in subsidiaries to 40%. The man widly
believed responsible for all this commotion was socialist leader George Fernandes,
Minister of Industries at the time in Morarji Desai headed Janata Party goverment that had
recently defeated Indira Gandhi lead Congress that was suffering from public backlash for
enforcing Emergency. Interestingly, these companies were booted out under FERA
(Foreign Exchange Regulation Act) that was enacted by Indira Gandhi. Fernandes claimed
Coca Cola was making a large profit of 10-15 million rupees annually on an initial
investment of only 600,000 rupees. According to him, "[...] 90 percent of India's villages
did not have safe drinking water, whereas Coke had reached every village[...]".
Cola Cola showed interest in complying and restructuring but refused to part with its
secret formula for coke syrup. Coca Cola pulled out/ got booted out. Another company
that walked out/got kicked out was (just pre-computer revolution days) IBM.
And so Campa Cola, Thums Up (ad from 80s here), Limca, Gold Spot (watch old tv ad)
and many other government owned entities got to rule the soft drink roost in India. Most
of these brands vanished (Campa Cola, Gold Spot ) or got adsorbed (Thums Up, Limca)
when the giants returned to India in the early 1990s.
Also, it was under these conditions that certain ribald jokes were doing the rounds in
India, circulated through Joke Books of Khushwant Singh, jokes like:
"What does Morarji Desai say when he serves the Prime Minister of Pakistan?
Answer: Coffee? Tea? Or Pee?
Update Contains no fruit juice or fruit pulp (Somehow it always makes fruit juice and
fruit pulp seem bad):
15

16. Break Away! From The CommonPlace
Sprint. Clearly Above the Ordinary!
Agency: Lintas
Sprint, a cold drink brand from the 80s. Notice the eStraw. You were supposed to pour the
cold drink in an nice glass, open the fridgerator, take out some ice cubes, add them glass
and then sip on a straw. It was quite a ritual in the 80s. It was Thums Up that put an end to
the straw cult.
Now some Milk drinks from 80s. Notice the eStraw. It's probably the only space were the
straws still thrive for lack of a better alternative (although there have been attempts to
dislodge the estaws from this space too).
Pepsi vs. Coca-Cola Logo Evolution chart with a fat X from Brand New.
True, no one will die and the lasting effects of this JPG mean nothing, really. But I felt a
burden of duty to correct a few things. The biggest problem is that the chart puts the same
logo in 1885 as it does in 2008. This is not only wrong but idiotic. Technically, the Coca-
Cola logo as it exists today can not be replicated with the tools of 1887 which, by the way,
is the year the script logo was introduced. Not 1885. Coca-Cola was first served in 1886
and even then, the first official logo of Coca-Cola was not the script logo. It first appeared
in the Atlanta Journal Constitution in 1886 as both a slab serif and chunky sans serif — it
wasn’t until mid-1887 that Frank Robinson, Coca-Cola’s bookkeeper, drew the first traces
of the Spencerian script logo that we all know.
First Coca-Cola logo appeared in the Atlanta Journal Constitution on Saturday May
23 1886.
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17. The chart, for comic and poignant effect, then leaves a 120-year gap between the first and
last logos. It makes for a great viral JPG, but not for telling the real story. For the first ten
to twenty years you could probably find a dozen different executions of the Coca-Cola
script as the logo was probably drawn over and over for different applications. It isn’t until
the 1930s and 1940s that a clear interpretation of the logo appears and is used consistently.
During the late 1950s and early 1960s the script logo is placed within a shape, referred to
as the “fishtail” logo, which is as off-brand as anything that Coca-Cola has ever done.
The chart also fails to mention the introduction of the wave, a ubiquitous visual today, that
was first implemented in the 1960s when Lippincott Mercer was in charge of making the
Coca-Cola identity more consistent. More than any Pepsi blunder, the chart ignores the
introduction of “New Coke” in 1985 with a new formula marketing and set of logos —
that completely ignored the script logo — that left a bad taste in their consumers’ mouths.
Around the same time, in 1986, Landor began rolling out an even more developed brand
identity that modified the wave among other subtle changes.
Missing from the chart in the Coca-Cola evolution is the penchant for Coca-Cola to use
the shape of its bottle as an icon, acting on and off as the logo or complementary logo or
subsidized logo of the main script logo, sometimes to a confusing fault. Today’s Coca-
Cola logo is, of course, amazingly similar to what it was 124 years ago but it’s not quite
fair to idolize them for a flawless consistency that they haven’t actually earned.
Once more, I will say that the Coca-Cola evolution is admirable and few companies
probably just GE can claim to have extended their identity heritage across three centuries,
but Coca-Cola isn’t perfect and as much as I despise the new Pepsi identity which in no
way am I trying to defend — I believe a fair comparison is in order.
So, here is the new chart. It’s not ideal, since I didn’t have a document as clean and
specific as this onefor Pepsi (scroll to last page of PDF) and I had to cobble the logos from
different sources. The reds are all over the place and some are in black and white.
this may be of immense interest to you. Have a look at the wrapper on a Coca-Cola 1.5
liter bottle and in the ingredients label you will find phosphoric acid in it. Minute
quantities of ethylene glycol are also used (which is acknowledged in the soft drink world
for making it really chill). This is popularly known as anti-freeze which prevents water
from freezing at 0 deg C and instead drops it by 4-5 degrees with minute quantities. This
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18. chemical is a known slow poison in the caliber of arsenic. So, if you manage to drink
about 4 liters of Coke within an hour or so, you can die.
Read along and give up these dangerous things.
Be natural; have flavored milks, tender coconuts, buttermilk, lassi and plain water instead
of these "soft" drinks. Guess what's the pH for soft drinks, e.g. Coke? PH 3.4! This acidity
is strong enough to dissolve teeth and bones! Our human body stops building bones at the
age of about 3.0 Soft drinks do not have any nutrition value (in terms of vitamins &
minerals). It is high in sugar content, carbonic acid, chemicals i.e. colorings etc.
Some like to take cold soft drinks after each meal.
Guess what's the impact? Our body needs an optimum temperature of 37 degrees Celsius
for digestive enzyme functioning. The temperature of cold soft drinks is very much below
37 degrees or even close to 0 degrees Celsius. This will dilute the enzymes & stress the
digestive system. The food taken will not be digested. In fact it will be fermented! The
fermented food produces gases, decays and becomes toxin, gets absorbed by the intestine,
circulates in the blood stream and is carried to the whole body. Hence toxin is cumulated
in other parts of the body, developing into various diseases.
Think before you drink coke/Pepsi (or any soft drink) again.
Have you ever thought what you drink when you drink an aerated drink? You gulp down
carbon dioxide, when nobody in the world would advise you to drink CO2. Two months
back, there was a competition at Delhi University Who could drink the most Coke?" The
winner drank 8 bottles and fainted on the spot-too much CO2 in the blood. Thereafter, the
principal banned all soft drinks from the college canteen! While this might have been an
extreme measure, the results do provide some food for thought.
Did you know that soft drinks use chemicals in them that cause immense harm to you.
Someone put a broken tooth in a bottle of Pepsi and in 10 days it DISSOLVED!
Can you believe it?
Teeth and bones are the only human parts that stay intact for years after death. Imagine
what the drink must be doing to your soft intestines and stomach lining!
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19. Concentrate Producer
•Significant costs were for
advertising, promotion, market
research.
•Coca-Cola and Pepsi-Cola
claimed combined 74.8%
of the U.S. CSD market in sales
Bottlers
•Bottlers purchased concentrate
•Added carbonated water and high-
fructose corn syrup
•Bottled or canned the resulting
CSD product
•Delivered it to customer
account
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20. HISTORY OF COCA COLA
Birth of Coca Cola
Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first
scripted "Coca Cola" into the flowing le tters which has become the famous logo of today
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from
Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged
brass kettle in his backyard. The name was a suggestion given by John Pemberton's
bookkeeper Frank Robinson.
20

21. HISTORY OF PEPSI
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a
young pharmacist named Caleb Bradham began experimenting with combinations of
spices, juices, and syrups trying to create a refreshing new drink to serve his customers.
He succeeded beyond all expectations because he invented the beverage known around the
world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn
it into a gathering place. He did so by concocting his own special beverage, a soft drink.
His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular
his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and
advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow,
convincing him that he should form a company to market the new beverage
21

22. CHAPTER:2
REVIEW OF
LITERATURE
22

23. REVIEW OF LITERATURE
Advertising is more than tool for selling goods and services. It has one overriding task, to
position a brand in the prospect's perception or perceptual space in relation to competitors,
so as to create distinctness 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 direct and indirect bearing on the present study
have been reviewed in this chapter.
Metwally (1980) tried to find a relationship between sales and advertising found that the
firm will always be able to sustain volume of sales even if it spends nothing on
advertising. These sales to 'loyal' customers can be regarded as an independent variable of
advertising. Marginal return of advertising is positive but too heavy advertising will create
ill will and skepticism among the customer and thus, reduce the volume of sales. Thus,
there is increasing return to advertising upto a point, beyond that point diminishing return
starts to take effect.
Raj (1982) presented the methodology that enables us to assess brands current strengths
and to gauge the market response to increased advertising. He concluded that the
advertising did contribute to the brands attractive and retentive strengths throughout the
duration of the campaign.investigated the different advertising effect on purchase behavior
of consumers of high loyalty increase brand and product purchase when advertising for
that brand increases. Little switching occurs from competitive brands into the advertised
brand. Effect of increased advertising carry over a few months after advertising is lowered
back to normal levels.
Petty (1983) stressed the role of involvement in advertisement effectiveness. He observed
that undergraduates expressed their attitudes about a product after being exposed to a
magazine advertisement under conditions of either high or low product involvement.
The advertisement contained either strong or weak arguments for the products and
featured either prominent sports celebrities or average citizens as endorsers. The
manipulation of argument quality had a greater impact on attitudes under high than
low involvement, but manipulation of endorser had greater impact under low than
high involvement. These findings were consistent with the view that there are two
relatively distinct routes to persuasion.
23

24. Singla (1984) found that there exists a desire among the executives as well as customers to
improve the advertising campaigns in order to make them more sales effective. The
researcher asked executives of various private as well as public sector undertaking
having involvement with the marking management to give their views about
advertisement effectiveness. The following list of attributes was found to be
significant in making ad campaigns effective:-
(i) Noticeability (vi) Believability
(ii) Comprehension (vii) Affective Impact
(iii) New Criterion (viii) Uniqueness of advertisement
(iv) Interest Value (ix) Sociability
(v) Memo ability (x) Imagination stimulus.
Part and Young (1986) in their work 'Consumer response to TV commercials: The
impact of involvement and background music on brand attitude formation', suggest
that a commercial containing music, affects brand attitude more as compared to the
one which contains no music. This difference is expected because in addition to the
visual part, the music of a commercial should act as another persuasion. Also, the
effect of music on one's brand like ability and behavioral intentions, are expected to
depend on the type and levels of involvement.
24

25. Kamins (1989) supports the fact that for the enhancement of brand appeal through
celebrity appeal works. In these ads renowned personalities are used to encourage and
reassure the prospective customers. The ads using celebrity appeal had more brand
appeal enhancing effect than the non-celebrity appeals.in the article, 'Are
advertisements a waste', remarked that advertisement is one of the least important
determinants of purchase behavior. The TV commercial albeit being the most popular
form of advertising, have little impact on the purchase behavior of the consumers. He
concluded the TV commercials were the least effective means. for changing the
preferences of consumers, as compared to other promotional techniques such as
coupons, print advertisements and price offs.
Politz (1990) found that purpose of campaign most often is to build an impression of
product and service to generate sales, suggesting that campaign must not only create
awareness, but also should be persuasive. A creative approach combined with
persuasive message highlighting uniqueness of the advertised product often enables
the advertiser to hold a long distance with the shopper when the advertisement is
heard or seen, thereby enhancing its effect on the buyer at the time of purchase.
Biel and Bridgwater (1990) found that commercial liking of a campaign went far beyond
the mere 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 food and beverage commercial were better liked than other categories.
Schreiber and Appeal (1990/91) argued that researchers have been using surrogates for
sales as a measure of evaluating the effectiveness of advertising. The use of surrogate
measure necessarily implies a relationship between surrogate measure and sales which
can be described in mathematical form as a curve of some sort. Here the implicit
assumption is that relationship between surrogate measures instead of sales is not with
faults.
25

26. Unnava and Brunkrant (1991) did a study whose main objective was to compare the
effects of varied versus same executions of advertisements on brand name memory
when the number of exposure to ads is held constant. They found out that varied ad
executions enhance memory for brand name over repeated same ad executions. In
varied ad executions learning was superior to learning when executions remained the
same.
Singh and Cole (1993) did a laboratory experiment in which they compared the
effectiveness of 15 second TV commercial with 30 second TV commercial by using
novel commercials. With different message appeals (informational v/s emotional)
exposing subjects multiple times and employing multiple dependent variables. They
found out that informational 15s are as effective as information; 30s in general
situations. They also round out that emotional: 30s are superior to emotional 15s in
influencing a viewer's learning of brand name and attitude. The results suggest that
the length per second effects brand name recall for emotional commercials but
frequency of brand mentions, not length, effect brand name recall for information
commercials.
26

27. Brown and Rothschild (1993) conducted a study whose primary objective was to
investigate the degree is which consumer memory for brands is effected 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 brands is
affected to any great by significant increase in advertising clutter.
Irani (1994) in an article titled 'Cashing in on the quiz craze' has written that many
companies like Hindustan Levers Limited are entering into naming contracts for
programmes that can draw associations with the product in consumers mind. If the
brand is successful in establishing its identity with a certain programme or quiz, the
recall potential for the brand can be very high e.g. Philips Top 10, Bournvita Quiz,
Close-up Antakshari etc.
Menon (1994) in an article titled 'The comparative advantage has written that comparative
advertising, which directly or indirectly compares a product with a competitors to
show the advertised product's advantage has been prevalent in the industry for many
year. But in the exiting scenario, where new brands in parallel category are springing
up at a rapid rate this kind of advertising is gaining momentum. Most prominent
among these have been, Pepsi and Captain Cook Company's. 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 Advertising Standards Council of India
(ASCI) may not be in a position to check the tide. With the products categories
getting overcrowded and players fighting for respectable market shares, we are bound
to see more comparative stances being taken. Burnett (1995) conducted a research to
identify 200 most awarded commercials and their association with success market
place. It was pointed out that 86% or 172 commercials were successful. Within these
117 achieved increases in sales volume, market share and other 55 were successful in
image enhancement.
27

28. Padamsee (1995) in an article titled "Rising above the clutter" has written that because of
the incredible noise level in today's media, print and electronic, advertising needs
more that just to be persuasive. It needs to be noticeable. A great ad is no longer one
that tells you a lot about a product rationally and emotionally. A great ad has to first
and foremost attract your attention. Moreover advertisers have realised that along with
the information customer also wants brand personality. So advertising should project
not only the attribute and unique selling points but an image that the customer can
react to.
Zaidi and Jayaram (1996) reported the findings of a survey by Marketing and Research
Group in September 1995 for the Delhi based Advertising and Marketing magazine,
A and M. The results reflected apparent failure of the marketing strategies. Pepsi
ranked 7th, while Coca Cola came in 13th on the survey results of the country's best
marketing companies.
Italia (1997) critically evaluates the findings of a survey done by Samsika Marketing
Consultants on the soft drink market. The findings show that Pepsi is the most
aggressive cola marketer in India and is the most widely available drink all over
Mumbai. The sample size of the survey was 516 outlets in Mumbai and New
Mumbai. The results (viz. Availability, visibility and finally market share) reveal that
Pepsi has a good visibility in 76 per cent of the available outlets and is available in 94
per cent of the retail outlets, while commanding a market share of 16 per cent.
Thums-Up attracts a market share of 15 per cent, achieving this with availability in 92
per cent of the outlets and a 'good' visibility in 71 per cent of the available outlets.
Coke too has recorded a market share of 12 per cent with an availability quotient in 90
per cent of the outlets and a comparatively 'good' visibility in 56 per cent of the
available outlets.
The review of above literature indicates that despite a wealth of research studies
available on the important subject of advertising, a research gap appears to exist in the
area of advertising and their effectiveness in terms of consumer preference, recall and
purchase behaviour. In India the advertisements of soft drinks especially Coke and
Pepsi have been drawing the attention of researchers time and again. A lot of heat has
been generated in the part so far as the advertisements of Coke and Pepsi are
concerned. It is high time that the various implications and effectiveness of these
advertisements are studied in greater details.
28

29. Jaydev Raja (1993-1995) bought Ramesh Chauhan-owned Parle's top brands and gave
Coke a 60% market share over right, But then he lost the plot-the cast cow Thumps
Up was almost mothballed, Chauhan was antagonized, and the bottlers were alienated.
Coke was not used to selling two cola brands in the one market, and it showed. When
it came, the Coke launch in India was low-key, tapping into a quiet north Indian
market near Agra. Coke says he set up the company, pushed approvals through the
government and bought to a giant market share. But when Coke finally pulled him
out, Raja had frittered away the flying start he himself gave Coke.
Richard Nicholas (1995-1996) came to India up Coke's key institutional accounts, such
as McDonald's. But even as he sealed the big bulk deals, the consumer market seemed
to slip slowly away from coke. The brand focus slipped: Pepsi scored a huge triumph
at the Wills World Cup 1996 with its "Nothing Officials About it" campaign even as
the sporty Thumps Up was missing. Buttlers were antagonized by Coke's demand that
they enter into joint ventures or sell out. They reached strongly-some, such as Pin
Akin Shah of Ahmedabad, even crossed over to Pepsi. Thumps Up, in spite of low
advertisement spend, continued to be ahead of Coke in the market price.
Mr. Nice Guy (1997-1999) turned out to be too nice. While Donald Short managed to
consolidate infrastructure, he built up a huge team, most of who are leaving at the end
of his tenure. His purchase of 51 bottling plants came at a great cost: the $7000
million acquisitions bill will keep Coke in the red for nearly tow decades. Right now,
Coke will have to work out what to do with the massive 6,000 - strong work face that
has come with the creaky, technological backward bottling network. Short gave Coke
in India a "nice" face, both to bottlers and employees. But as he leaves for his next
post, a general upheaval in Coke's ranks tells a slightly different story.
Kotler & Armstrong, 1989,Big firms often develop and introduce new products. Nestle,
is an example of a company that produced a brand of packaged food that failed
repeatedly when marketed and advertised. After several attempts the Nestle Company
finally decided to sell there new product with a different marketing technique. Nestle
waited to sell their product again until the fad was to eat healthy, low fat foods. And
then stressed the health benefits in their advertising campaign. Immediately the
company began selling their new product. This product is now called Stouffer's Lean
Cuisine
29

30. An advertising campaign's main goal is to sell a product, however every company
has different ways of doing this. All advertising campaigns have many different
advertisements that all stress an identical major appeal or theme. And they are shown in
many types of media during a specific time period. In simplification there are six distinct
phases, if not more, that are characteristic of a campaign. They are:
1. Picking the strategy for marketing
2. Choosing the main theme or appeal
3. Interpreting the theme into the media of various types
4. Making the advertisements
5. Purchasing the time and space
6. Evaluating and executing the campaign.
A new product's campaign also has deal with the six phases of marketing. The
advertising campaign is considered successful if it defines its advertising objectives,
planned better, creative, and more beneficial to consumers. An increasing important role
in advertising new and old products is using a creative strategy. Advertisers should
evaluate appeal messages used. Products should mean something to the consumers,
advertisers help give products their meaning by pointing out the desirable or meaningful
benefits to them. It is necessary for products to be distinctive by telling how the product is
better than other brands, competing with the same product. This can be done by using
messages with believable appeals. The impact of a message depends on what is said and
how it is said
Schick is an example of a product with an award winning ad. It was well received
by the audience because the headline, copy work and illustration were tied closely together
to give the message meaning. This successful advertising campaign printed ads that were
bold face at the top and said "Never a Dull Moment." Under the bold face print was a big
picture of a razor, and in the corner information was given about the product that says;
Schick blades don't get dull before their time. So you can get close, clean
comfortable shaves- shave after shave. Try the convenient Shick plus disposable razor. Or
Ultrex Plus cartridges, both with a lubricating `comfort' strip.. In advertising, attention-
getting and memorable words need to be used. Such as "7-UP's" ad "the Uncola." And if
the advertisement is a print ad it needs to be powerful enough to draw attention to the
reader. It must be the first thing the reader notices
30

31. It is important for the reader (consumer) to understand that a product is something
that can be marketed for acquisition, attention, or use that could fulfill a desire or need,
when studying advertisements and their content. Services, physical objects, people, and
places also fit into this definition. A new product serves these purposes either by replacing
old products or creating products like other brands. Sometimes a company buys a whole
patent, license, or company to produce a product that it did not develop. And other times a
company is formed with the intent to manufacture and sell a new product. IBM is an
example of such a company
IBM saw that customers wanted services such as, instructions, guarantees, and
programming services. The marketer used this knowledge to advertise what they felt
the consumers wanted
Nowlis & Simonson, 1996,The most common methods for companies to increase sales is
introducing new or enhancing features to consumers. An example of this is Minolta's
automatic focus on its camera system. The only determinant of sales impact is not
feature itself. There are other factors that are related to the context of competition.
Social environment and the strategy used in marketing all influence innovations. And
these innovations may influence the brand choice of new products and features that
companies want to make and that consumers desire
Mackenzie & Olshavsky, 1995,Consumer satisfaction's dominant model forgets to
account for not only the needs of consumers, but their desires as well. Research has
mainly focused on a consumer's expectation of a product, rather than what he/she
desires from the product. MacKenzie and Olshavsky constructed a model about
consumer satisfaction, and they believe that a person's feeling of satisfaction comes
from a person's desires, which the concept of marketing predicts. Their model tries to
untangle the important roles of desire and expectations. Benefits desired by
consumers and the judgment and choice models that already exist are the foundation
for benefit segmentation. These models show how buyers use desires, also called
choice criteria, to evaluate and choose products. MacKenzie and Olshavsky's model
also examines the overall impact of information satisfaction with feelings of
satisfaction as a whole. This is important because advertisers give this information
about their products, which has an influence on the expectations of consumers; even if
the consumer is falsely lead to believe something about a product .
31

32. Grunet, 1996,Sometimes consumers are falsy lead to believe something about a product
because of their advertising effects. Grunet studied advertising effects and analyzed
them by using information processing cognitive models. The processing of
information was equated largely with measurement and processes of conscious
thought controlled by verbal methods. Grunet researched the role of cognitive
psychology and how it affected advertising. He was concerned with two kinds of
cognitive processes: strategic and automatic processes. Automatic processes do not
have capacity limitations and a cognitive response is activated by a specific cognitive
input. They are also unconscious. Cognitive processes that are strategic can have
capacity limitations and adapt readily to certain situations. This is a conscious
process. Advertising effects most commonly due to cognitive tasks are: perception,
learning, attention, information use, and retrieval .
Clancy & Shulman, 1993,For many advertisements retrieval or remembering a message
is a main concern. More advertising messages are likely to be forgotten than
remembered. Therefore the advertiser's aim is for the audience toremember the
advertisement. Effective advertising is not that hard to produce, at least in theory.
The problem is if a message is motivating, has an unforgettable execution, and it has
the right exposure, it still can mean different things to different people.
Kent & Allen, 1994, In some cases a memorable advertising campaign is also another
effective way to get people to buy and remember certain brands and products. Studies
were done on the familiarity with brands and the memory of seeing advertisements,
by using familiar and unfamiliar brands. Print ads were created with the brand name,
information, and product class featured in the headlines, without using pictures.
Surveys were given to undergraduate students. The responses for remembering the
products in the experiment with familiar and unfamiliar ads were about the same, in
other words the respondents thought they remembered an ad that they really did not
see before. This study supported the theory that competitive interference has
considerable effects on the memory of consumers when seeing ads for unfamiliar ads
or new products. There seemed to be no affect on products that already have been
established in the market for a long period of time. This could be one reason for a
new product's failure; literature suggests that the failure rate can be lessened by
avoiding advertising next to a product of the same category. The results of these
studies show that it is hard for consumers to remember information about new brands
in categories that are advertised heavily. The best way to advertise new products is to
avoid the media in which there is competition for similar products of similar brands
32

33. Kopalle & Lehmann, 1995,Knowledge about a brand consists of brand image and brand
awareness. A brand name's desirability can be judged by its easy retrieval, or in other
words its easy access from memory, and to which extent the name makes a products
strategic positioning better. Studies have been done on foreign named brands and
their effects. Researchers have found that stereotypes tend to influence people's
perceptions and evaluations of behaviors. Stereotypes are powerful; for example,
consider the French culture and the associations that can be made about its elegance,
refined taste, sophistication, etc. Researchers studied French brands and the ways, in
which people (consumers) perceive products, that are consistent and inconsistent, with
the information of that France evokes. The study found the effects of brands named
and spelled in a foreign language does in fact influence the perceptions of consumers.
Marketing managers made decisions about sixteen thousand new products were
introduces to drug stores and grocery stores in 1992. In order to find out about a
product's quality it had to be used, the consumer demand initially would rely on the
expectations of the consumer, basically beliefs about the quality of a product were
purchased. It was found that consumers compared new information with past
information, and based on this they formed future expectations. Expectations about a
new product's quality are built and changed over time. "...satisfaction is a function of
the difference between experiences and expectations."
Kotler & Armstrong, 1989In order to know what audience wants in a product or who
mainly buys the product, target research has to be done. A target researcher helps in
an advertising campaign by giving key information about what to be used in the
advertising. Advertising is specifically aimed at a target audience, a certain segment
of the population for whom the service or product has an interest .When choosing a
target audience a lot of research has to be done, this is often called positioning.
Positioning has several interpretations. However, it most commonly means fitting a
service or product to at least one portion of the large market. It is done in a certain
way that sets it apart from competition without changing the product
Many companies have not positioned their products correctly or they have
launched unsuccessful products for many reasons. For example, a favorite idea might be
pushed by a chief executive, even when the findings of marketing research are poor.
Sometimes the market size has not been correctly estimated, or the product design is not
up to par. And some new products have not had good advertising
33

34. A study done of seven hundred industrial and consumers firms found the success
rate for new products, overall to be sixty-five percent. Estimates by another source have
found that eighty percent of the total new products that enter the market fail. Although
many new products fail some are very successful, and many are successful due to their
advertising campaign and the messages advertised .
Clancy and Shulman did a survey recently, on how difficult it is to launch a new
product to the market. They asked one thousand firms questions, and two thirds of the
firms said that it was a lot more difficult to launch products into the market. They asked
people to respond to questions expressing their attitudes towards different statements of
advertisement. Respondents said that they no longer believe:
1. Good advertising sells products.
2. Advertising is a step by step process.
3. The finest product wins the largest share of the market.
4. Advertising is the tool that is the most effective in the business of marketing.
5. A product has to have mass appeal in order to be successful.
6. Most products are sold because of lower pricing.
7. Advertising research is realized important by most researchers.
Clancy & Shulman, 1993,Several categories of product, after analysis, show that brands
ranked lower than previous years, showing a low response rate to sales. The message
strategy is important, especially in establishing new products to the market.A
successful strategy, for marketing and advertising, is using brands to become
affiliated with a portfolio of various products. The reputation of brands is becoming
one of firms’ most valuable resources. This explains why companies are expanding
their brands into several various product categories.
Dacin & Smith, 1994,An example is the Panasonic brand, which can be associated with
bicycles, electronics, and small appliances for the home. Many authors have brought
up the concern of extending products into different categories, may weaken the brand.
However not enough research has been to determine the characteristics of a brands
strength. There has been a considerable impact on brand extensions that is positive.
And many firms are developing specific plans to extend their brands, weighing the
risk of weakening the brand versus selling more products.
34

35. Clancy & Shulman, 1993,In 1990 a study was conducted by Clancy and Shulman that
found approximately the same amount of people that liked advertising as do the ones
that do not. Only about twenty-five percent of the people studied view the
commercial when it is shown. Often television watchers do something else like
switch channels, give attention to something else, or exit the room. People respond in
different ways to different commercials. For example advertisements for soft drinks
are watched more than other types of ads, for example ones for insurance. This is an
indication that people watch the soft drink commercials like "Up" because they are
more engaging .
Another study shows that only about eleven percent read a magazine's
advertisements. Another eleven percent says that they never read the ads and flip to the
next page. This shows that either these ads were not aimed at the correct target audience,
or if people are not in the right target audience they will screen out the advertisements.
Therefore, not enough research is done on who reads certain types of magazines. This
may be the same reason people tune out television commercials, because not enough
research is done on who is watching certain shows. Thus their placement of
advertisements may be wrongly suited for the segment of audience watching a particular
show.
A lot of research is done on advertisement, but there is still a lack of knowledge on
how it affects our choices for buying certain products. Not enough studies have been
done on what consumers like about an advertisements products that could motivate
consumers to purchase them. Research shows there are many factors that contribute to
a products success or failure, and advertising is one of them. Brands and memorable
campaigns also seem to be a factor in the success of advertising campaigns. Know
one seems to really know how effective advertising is for the buying behaviour.
This leads to the Research Question. So this research study Deal with these aspects
that whether advertisement is having any effect on the Consumers or not, to see whether
people are influencing by advertisement or not and also to know the role of advertisement
in buying behaviour. And finally the need of this study is to check the effect of
advertisement on the buying behavior of consumers with special reference to soft drinks.
35

36. CHAPTER:3
RESEARCH
METHODOLGY
36

37. Research Methodology
The tool for data collection
Data collection is a basic step and of vital importance. On which success or failure of the
study depends. All researchers can tap into two sources of data.
1. Primary Data
2. Secondary Data
The primary data was collected by a survey based on the questionnaire. The questions
were listed in a pre arranged order and the object of enquiry was reveled to the
respondents.
.The questionnaire was aimed at finding out the
• Impact of advertisement of Coke and Pepsi in terms of consumer
preference purchase behaviour.
• The questionnaire deal with aspects like recall-ability of advertisement of
Coke and Pepsi, impact of advertisement on purchase behaviour of soft
drinks, viz. factors influencing choice of a brand immediate reaction on
seeing an advertisement influence of advertisement on preference and
purchase of a soft drink, brand preference and reasons for brand preference
etc.
• Unaided recalls (What commercials or advertisements do you remember
seeing?”)
37

38. • Aided recall tests (The respondents are prompted by being shown a particular
advertisement and then asked to remember their previous exposure to it. Verbal
aids are also used to prompt recall) were used to study the recall-ability of
advertisement of Coke and Pepsi. For aided tests various clues were given
for e.g. Slogans and name of the model and the respondents were asked to
identify the soft drink brand associated with them. In some questions the
techniques like ranking method was also used.
The secondary data was collected from various sources like
---web sites of different soft drink companies
--- Articles and books on soft drink industry etc.
• Sampling plan
Universe
The universe included all the consumers of soft drinks who are exposed to TV
advertisement
Population
The population included all the consumers of soft drinks who are exposed to
advertisement in TV purposively selected from Ludhiana city.
Sample unit
Single individual consumer of soft drinks who is exposed to advertisement in TV.
Sample size was taken to be 50.
Keeping in view the time and resources constant, the total sample size was taken
to be 50. In such a way that equal number of male and female respondents is
selected and almost equal representation is provided across both the age group 15-
25 years. Details are given below. In the age group 15-25 years almost all the
respondents were students of MATA GUJRI COLLEGE and near places
Fatehgarh Sahib.
Sampling technique
The selections of the respondents were done on the basis of stratified convenient
sampling. It was decided to include in the sample the consumers representing
different categories of age group and sex. For this purpose the stratification of
consumers was done on the basis of two attributes age and sex. Respondents have
38

39. been categorized age wise i.e. 15-25 yrs, and above 25 yrs, and sex wise viz, male
and female.
This classification of consumer resulted in the following four strata:
(a) Male respondents in the age group 15-25 years.
(b) Female respondents in the age group 15-25 years
Frequency distribution of sample with respect to age group and sex:
Age group (in yrs) Male Female Total
15-25 25 25 50
Total 25 25 50
LIMITATIONS OF THE STUDY
1. The sample size in relation to total size of population is small.
2. The results are based on data collected in one city.
3. Being an opinion survey, the personal biases of the respondent might have
entered into their responses.
4. Information derived especially by recall tests may not have been processed
by the respondent from TV only but also from other sources like hoarding,
word of mouth and other promotional efforts like picture of model on the
soft drink paper cups etc.
5. The study was mainly an individual study, so all the limitations of such
study like limitation of time, finance, coverage were faced.
39

40. Objective of study
1. To find the effectiveness of the advertisement.
2. To find out the factors influencing the choice of brand.
3. To know consumers preference towards the soft drinks
.
4. To know the reasons for the preference of their favourite soft drinks.
5. To check the brand loyalty of consumers towards their favourite brand.
The main purpose of this consumer survey is to see the recall ability of the
consumers and also to see the factors affecting the choice of brand and an impact
of advertisement on the purchase of soft drink.
40

41. CHAPTER:4
DATA ANALYSIS &
INTERPRETATION
41

42. ANALYSIS AND INTERPRETATION
This chapter deals with the results and the discussions of the research work.
In this we will analyze the results and discussion of the survey, which is collected
with the help of questionnaire.
Recall of the Soft Drink Advertisements
(1) Unaided Recall of Coke and Pepsi Advertisement
Advertisement Total
(N=100)
COKE
1. Thanda matlab 91%
2. Chhota matlab panch 96%
3. Jo chaho ho jaye 91%
4. Coke utha le dhoom macha le 67%
5. Jashn Mana Le 75%
PEPSI
1. Yeh payas hai badi 91%
2. Yeh dil maange more 97%
3 Sachin ala re 63%
4 Ye hai youngistan meri jaan 95%
5.My can 66%
Table no:1(Unaided Recall of Coke and Pepsi Advertisement)
Analysis of Coke
42

43. Graph no:1(a) (Unaided Recall of Coke and Pepsi Advertisement)
Analysis of Pepsi
Graph1(b)( Unaided Recall of Coke and Pepsi Advertisement)
Analysis & Interpretation
In the above table it is clear that the maximum recall is of the Pepsi
advertisement which is 97% & that advertisement is “yeh dil maange
more”,and“my can” has the minimum recall which is 66%. And in case of Coke
the maximum recall is of the “chotta matlab panch” advertisement, which is
having 96% recalls. While the advertisement “Coke utha le dhoom macha le”
has the minimum recall. For deep analysis this data is also analyzed on the basis
of sex & age parameters.
43

44. (2) Aided Recall Test With Respect To Models:
Models Total
(N=100)
COKE
1. Aishwarya Rai 97%
2. Aamir khan 100%
3. Akshay Kumar 95%
4. Sania Mirza 91%
PEPSI
1. Amitabh Bachhan 98%
2. Shahrukh Khan 99%
3. Sachin Tendulkar 95%
4. Yuvraj Singh 95%
Table no:2(Aided Recall Test With Respect To Models)
Analysis of coke
44

45. Graph no:2(a)( Aided Recall Test With Respect To Models)
Analysis of pepsi
Graph no:2(b)( Aided Recall Test With Respect To Models)
INTERPRETATION & ANALYSIS
In the aided recall test with respect to models the Coke is dominating over Pepsi
by having 100% recalls for “Aamir Khan” followed by “Aishwarya Rai” which
is having recall of 97% and “Akshay Kumar” is also having recall of 95% and “
45

46. Sania Mirza” is having least recall of 91% in case of Coke. In case of Pepsi
“Shahrukh Khan” is among the highest with 99% recalls followed by “Amitabh
Bachhan” which is having recall of 98%. And “Sachin Tendulkar” and
“Yuvraj Singh” are having equal recall of 95%. This data is also analyzed in the
two different parameters of sex & age. In that case the data is analyzed in the two
sex group i.e. males & females & after that the two age group i.e. 15-25years &
above 25years.This analysis is given below.
(4) Recall Test With Respect To Colour :
Recall Test With Respect To Colour:
BRAND Total
(N=100)
1. COKE 99%
2. PEPSI 93%
Table no:4(Recall Test With Respect To Colour)
46

47. Graph no:4
Note: The total number of respondent is 100 so the number itself is %.
In the recall test with respect to colour the Coke is again dominating
here with 99% of the recalls & Pepsi is also having a good recall of 93%. This
data is also analyzed in the two different parameters of sex & age. In that case the
data is analyzed in the two sex group i.e. males & females & after that the two age
group i.e. 15-25years & above 25 years. This analysis is given below.
(5) Factor Influencing Choice of Brand:
.
FACTORS Value
1. Taste
2. Easy availability 319
3. Brand name 305
4. Word of Mouth 281
5. Advertisement 265
Table no:5 (Factor Influencing Choice of Brand)
47

48. Graph no:5(Factor Influencing Choice of Brand)
ANALYSIS & INTERPRETATION
In the above table it is shown that the most influencing factor in case of choice of
brand is Taste, followed by Easy availability & Brand name. This data is also
analyzed in the two different parameters of sex & age. In that case the data is
analyzed in the two sex group i.e. males & females & after that the two age groups
i.e. 15-25years & above 25 years. This analysis is given below.
(6) Immediate Reaction After Watching An Advertisement:
REACTION Total
(N=100)
1. Urge to have that soft drink 25%
2. Urge to have any soft drink 16%
3. Urge to have favourite soft drink 39%
4. Drinking one within a reasonable time 20%
Table no:6 Immediate Reaction After Watching an Advertisement:
48

49. Graph no:6 Immediate Reaction After Watching an Advertisement:
ANALYSIS & INTERPRETATION
In the above table the data regarding the immediate reaction of the consumer
after watching advertisement is showing that 39% of the people are saying that
they feel urge for the favourite soft drink & 25% are saying that they feel urge for
the that soft drink. 20% said they will drink one within a reasonable time and 16%
said that they will have any soft drink. Further it is analyzed on the basis of age
& sex for better insight.
(7) Influence Of The Advertisement On The Consumer Preference And Purchase
Behaviour:
STATEMENT Total
(N=100)
1. Liking the advertisements does not 50%
necessarily mean that I like that brand also.
2. A good advertisement can change my 11%
preference for soft drinks.
3. I buy those soft drinks whose TV 19%
advertisements are frequent.
4. Basically all cola drinks have the same 20%
taste.
Table no:7 (Influence of the Advertisement on the Consumer Preference and
Purchase Behaviour)
49

50. Graph no:7((Influence of the Advertisement on the Consumer Preference and
Purchase Behaviour)
ANALSIS & INTERPRETATION
In the above table it is clear that maximum of the people i.e. 50% are saying that
liking advertisement does not mean we like that brand also. And very few i.e. 11%
are saying that a good advertisement can change their preference for the soft
drink. 19% of them said that they purchase those soft drinks whose T.V.
commercials are frequent. And 20% said that all Cola drinks have same taste.
(8) Consumer Preference Of Soft Drinks:
COLA DRINK Total
(N=100)
1. Coke 53%
2. Pepsi 38%
3. Other 9%
Table no:8(Classification of Most Favorite Cola Drink)
50

51. Graph no:8((Classification of Most Favorite Cola Drink)
ANALYSIS & INTERPRETATION
In the above table it is clear that the Coke is dominating as a most favorite cola
drink with 53% & Pepsi is having 38%, which is second in this. So this data is
showing that Coca-Cola is more favourite brand.
(9) Reasons For Preference Of Cola Drinks :
REASONS Total
(N=100)
1. Taste 96%
2. Word of mouth 4%
3. Brand name ---
4. Easy Availability ---
5. Advertisement ---
Table no:9 Reasons for Preference of Coke
51

52. Graph no:9 Reasons for Preference of Coke:
ANALYSIS & INTERPRETATION
In the above table it is clear that those persons who like coke, 96% out of those
like it because of its taste & 4% just because of word of mouth.
(10) Reaction Of Consumer On Non-Availability Of Favourite Cola Drink:
REACTION Total
(N=100)
1. Will go to another outlet 17%
2. Will buy other cola drink 56%
3. Will buy non cola drink 15%
4. Will buy any other drink 12%
TABLE NO:10 Reaction of Consumer on Non Availability of Cola Drink:
52

53. GRAPH NO:10 Reaction of Consumer on Non Availability of Cola Drink:
ANALYSIS & INTERPRETATION
In the above table it is clearly shown that 56% of the persons will buy other cola drink
because of the non availability of their favourite soft drink. And 17% will go to another
outlet, 15% will buy non-Cola drink and 12% will buy any other drink. So it shows that
the respondents are not loyal towards their favourite brand of soft drink.
53

54. CHAPTER:5
FINDINGS &
CONCLUSION
54

55. FINDINGS AND CONCLUSION:
 It has been concluded that advertisement is very effective as far as recall of the
advertisement is concern and it is very effective way to create the awareness of the
product.
 Advertisement has a good impact on the consumer but their reaction is not positive
for that brand whose advertisement they are watching as maximum of the people
are saying that they feel urge to have their favourite soft drink and not that soft
drink whose advertisement they are watching.
 Advertisement is not playing the effective role in changing consumer preference
for the selection of soft drink brand and is looking less effective on purchase
behaviour of the consumers.
 The most influencing factor taste is followed by easy availability & brand name.
And the least value is given to advertisement as the factor that influences the
choice of soft drink brand.
 It has been concluded that Coke is among the most favourite brand of consumers
followed by Pepsi. So Coke is highly preferred brand of soft drinks for the
consumers.
 The consumers who like Coke maximum of them are saying that they just like
Coke because of taste & remaining are saying because of word of mouth. And no
one is saying advertisement is the reason for preference of Coke. And in case of
Pepsi, too, taste is one the most important reason followed by word of mouth &
brand name. So the advertisement is not a reason for the preference of their
favourite soft drink in any of cases.
 The survey shows that consumers are not showing loyalty for their favourite soft
drink brands. As maximum of the respondents are saying that they will buy other
cola drink because of non availability of their favourite cola drink. And very few
are saying that they will go to another shop to have their favourite soft drink brand.
So it shows that people are not loyal towards their favourite brand.
o, from the whole study we can conclude that advertisement is very effective as far
as recall of the advertisement is concern and it is very effective way to create the
awareness of the product. And it can be very useful in selling during the initial stages
when product is new. But on the later stages there are many other factors that come in to
play for selection of soft drink brands. These factors are like taste, word of mouth etc. so
55

56. the company must stress upon these factors because in the initial stages when product is
new at that time with the help of advertisement etc company can convince the people to
purchase their product once but if the products are not good with respect to quality and
also due to uneasy availability of their product then company will be thrown out of the
market and it will be hard for the company to compete in the market in today’s scenario
56

57. SUMMARY:
This survey basically deals with purpose to know advertisement effectiveness regarding
soft drinks. For this consumer survey was conducted. The population included in the
survey was selected from Ludhiana city; it is further stratified on the basis of two
attributes age and sex. Two age group 15-25 years & above 25years. And the two
categories of sexes, male and female were taken. The sample size was restricted 100. The
technique was followed in such a way the equal number of male and female respondent
were selected and almost equal representation is provided to different age group. The
information is collected from the respondent by the means questionnaire, which was
further analyzed to elucidate the objective of this study. The summary is given below:-
For finding the effectiveness of advertisement the first parameter taken is the recall of the
soft drink advertisement which was analyzed on the basis of punch lines, models & color.
And also two type of test were there for recall i.e. aided & unaided recall.
 In the unaided recall of the advertisement the most recall advertisement is the
"Chhota matlab panch" which is 100% in case of male & 92% in case of female.
And in Pepsi the most recall advertisement is "Yeh dil maange more” with
percentage of 98% in case of male & 96% in case of female. So in the unaided
recall of the advertisement there is not much difference between male & female as
far recall of advertisement is concern.
 And same is the case in the age group also. In the aided recall of the soft drink
advertisement the Coke’s advertisement of "Jiyo Thanda and Piyo Thanda” is
among the highest. But in case of Pepsi, the advertisements having highest
percentage are "Yeh pyas hai badi” and "Yeh Dil Mange More".
 The next recall was with respect to the models and in this Aamir Khan, Akshay
Kumar and Aishwarya Rai were recalled by maximum number of people and in
the Pepsi three models Shahrukh Khan, Amitabh Bachan and Yuvraj Singh
were recalled by maximum number of people. And recalling with respect to colour
the Coke is dominating with the 98% and Pepsi is just behind coke with having
almost 96% in both the parameters of sex & age.
This objective was concern to know that what kind of urge people feel when they watch
the advertisement. And 40% of the males and 38% percent of the females are saying that
after watching advertisement they urge to have their favourite soft drink and not that soft
drink whose advertisement they are watching. And in the two different age group of 15-
57

58. 25years & Above25years the maximum of the people are giving the same response as
given by the male & female.
The 56% of the males & 44% of the females are saying that liking the advertisement of a
soft drink brand does not mean that they like that brand also. And in the age wise analysis,
50% in both the age groups are giving the same response. And very few are saying almost
8-14% that a good advertisement can change their preference for the soft drink brand.
Respondents were asked to rank the given factors that influence their choice of soft drink
brand. In case of male the maximum value is given to easy availability & brand name.
And in case of female, taste is having the maximum value & almost same is the result age-
wise also. The most influencing factor is taste followed by easy availability & brand name.
And the least value is given to advertisement as the factor that influences the choice of soft
drink brand.
In sex-wise analysis 56% of male & 50% of female like Coke whereas 36% of male and
40% female like Pepsi. And the remaining 8% of male & 10% of female like other brands
of soft drinks. In the age-wise analysis again the Coke is leader followed by Pepsi.
The consumers who like Coke 96% of them are saying that they just like Coke because of
taste & remaining 4% are saying because of word of mouth. And no one is saying
advertisement is the reason for preference of Coke. And in case of Pepsi, too, 74% of
respondents are saying that they like pepsi because of taste,10% because of word of mouth
and 16% are going for brand name.
The survey shows that consumers are not showing loyalty for their favourite soft drink
brands. As 56% of the respondents are saying that they will buy other cola drink because
of non availability of their favourite cola drink. And very few (17%) are saying that they
will go to another shop to have their favourite soft drink brand. So it shows that people are
not loyal towards their favourite brand.
58

59. BIBLIOGRAPHY
59

60. Bibliography
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 Shirah, A, 1997.Tryst with Destiny, A&M, April1:36-38.
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Measure for Sales, Journal of Advertising Research.30 (6):27-31.
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 Teffis, G. 1989 Are Advertisements Waste. Business India, July 24:89-92.
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Business World, January 23:86-87.
60

61. QUESTIONNAIRE
61

62. QUESTIONNAIRE
Personal Information
Name : _________________________
Age : _________________________
Sex : _________________________
Address : _________________________
(1) Are you consuming the soft drinks?
yes
no
(2)what is the frequency of your consumption.
Once in a day
Once in a week
Once in a month
Any other
(3) Give the reason for preference of your favourite cola drink?
1. Taste
2. Size
3. Advertisement
4. Easy Availability
(4) Which is your favorite cola drink?
Coke Pepsi
(5) Rank the following factors according to their importance in the selection of
the soft drink brands?
1. Taste
2. Easy Availability
3. Brand name
4. Word of Mouth
5. Advertisement
6. Any Other
62

63. (6)The following slogans are associated with advertisement of different brands of soft
drinks. Identify the brands?
Slogans Brands
1. "Thanda matlab Coca-Cola!" ________________________
2. "Pio sar utha ke" ________________________
3. "Burrrrrrrrr" ________________________
4. "Every Pepsi Refreshes The World" ________________________
5. "Summer Time is Pepsi Time" ________________________
6. Yeh Pyaas Ha Badi ________________________
7. "Jo chaho ho jaye ________________________
8. My can ______________________
9. "Change the game" _______________________
10 Ye hai youngistan meri jaan ________________________
11. Jashn Mana Le ________________________
(7) Tick the appropriate brand with respect to brand name?
Model Coke Pepsi None
1. Aamir Khan _____ _____ ____
2. Ranbir Kapoor _____ _____ _____
3. Akshay Kumar _____ _____ _____
4. Vijender Singh _____ _____ _____
5. Imran Khan _____ _____ _____
6. Sachin Tendulkar _____ _____ ______
7. Gautam Gam _____ _____ ______
(8) After watching the advertisement what is your immediate reaction?
1. Urge to have that
Soft drinks
2. Urge to have any
Soft drink
3. Urge to have favorite
Soft drink
4. Drinking one within
a reasonable time.
63

64. (9) Tick one statement given below with which you are agree?
1. Liking the advertisement does not necessary
mean that I like that brand of soft drink.
2. A good advertisement can change my preferences
for that soft drink.
3. I buy that soft drink whose T.V. advertisements are
frequent.
4. Basically all the cold drinks have the same taste.
(10) What will be your reaction on the non-availability of your favorite cola drink?
1. Will go to another outlet.
2. Will buy other cola drink.
3. Will by a non-cold drink
64

65. (9) Tick one statement given below with which you are agree?
1. Liking the advertisement does not necessary
mean that I like that brand of soft drink.
2. A good advertisement can change my preferences
for that soft drink.
3. I buy that soft drink whose T.V. advertisements are
frequent.
4. Basically all the cold drinks have the same taste.
(10) What will be your reaction on the non-availability of your favorite cola drink?
1. Will go to another outlet.
2. Will buy other cola drink.
3. Will by a non-cold drink
64