CHAPTER -1

INTRODUCTION AND REVIEW OF LITERATURE

CHAPTER -1
INTRODUCTION AND REVIEW OF LITERATURE
A consumer is the central point in business. Now a days attracting &and satisfying
customers is the most difficult than producing the goods. For any products, many brands are
available in the market. Every company wants to increase its market share. Now buyers
dominate the market. So sellers have to make a lot of efforts to attract & to persuade the
persons to purchase its products & services. Advertising is an important means to influence
consumers attitude & purchase behavior. Advertising increases brand familiarity, develop
brand image & helps the organization in increasing its market share. Advertising is to invest
resources in purchase time or space in mass media such as T.V, Radio, and newspapers,
magazines that helps to promote the companys product or services.
Once of the strongest weapons in Pepsis armory is the flexibility it has empowered its
people with. Every manager and salesperson has the authority to t a k e w h a t e v e r s t e p s
h e , o r s h e , f e e l s w i l l m a k e c o n s u m e r s a w a r e o f t h e b r a n d a n d increase its
consumption.
Pepsi has consistently wielded its pricing strategy as in invitation to sample, aiming to turn
trial into addiction It launched the 500 ml bottle in 1994 at Rs. 18 versus Thumps
Ups Rs. 9, in April, 1996, its 1.5 liter bottle followed Coke into the marketplace at Rs. 30
Rs 5 less than Cokes .But it couldnt continue the lower price positioning for long.

1.1

HISTORICAL BACKGROUND:

Caleb Davis Bradham was born in Chinquapin, North Carolina on May 27, 1867. He
graduated from the University of North Carolina at Chapel Hill and attended the University
of Mary land School of Medicine, circa 1890. He dropped out of medical school because his
fathers business was going bankrupt. After returning to North Carolina, Bradham taught
public school for about a year, and later opened a drug store on the corner of Middle and
Pollock Streets in downtown New Bern. He named the store Bradham Drug Company and,
like many other drug stores of the time, housed a soda fountain. In 1893, Bradham invented
Brads Drink, a blend of carbonated water, sugar, pepsin, kola nut extract, vanilla and rare
2

oils at this location. On August 28, 1898, Caleb renamed his drink Pepsi-Cola, after a
combination of two ingredients, pepsin and cola. He believed his drink was healthy as
it aided in digestion much like the pepsin enzyme does. In 1898, Caleb Bradham wisely
bought the trade name "Pep Cola" for $100 from a competitor in Newark, New Jersey that
had gone broke. His assistant James Henry King, a young African American was the first to
taste the new drink.
In 1902, Bradham launched the Pepsi-Cola Company in the back room of his pharmacy and
on December 24, 1902 the Pepsi-Cola Company was incorporated in the state of North
Carolina. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially
registered with the U.S. Patent Office. At first, he mixed the syrup himself and sold it
exclusively through soda fountains. That first year, Bradham sold 7,968 gallons of syrup,
using the theme line "Exhilarating, Invigorating, Aids Digestion." He also expanded his
operation by opening a second Drug Store at the corner of Middle and Broad Streets. Caleb
soon recognized that a greater opportunity existed to bottle Pepsi so that people could drink it
anywhere. In 1905, Bradham began selling Pepsi-Cola in six-ounce bottles and awarded two
franchises to Charlotte and Durham, North Carolina. The following year, 15 franchises were
awarded, with another 40 by 1907. In 1910 there were 250 franchises in 24 states and in
January of that year the Pepsi Cola Company held their first Bottler Convention in New
Bern.
Caleb Bradham enjoyed 17 years of success with Pepsi-Cola. However, he had gambled on
the fluctuations of sugar prices during WWI. He believed that sugar prices would continue to
rise, but they fell drastically, leaving him with an overpriced sugar inventory. Pepsi Cola
went bankrupt in 1923 and its assets were sold to Craven Holding Corporation for $30,000.

1.2 ADVERTISING CLUB OF INDIA:

The winds of inspiration for the formation of the Ad Club in Bombay blew from the east
the Ad Club of Calcutta, to be precise. That's not surprising if you knew that, in the preindependence days, it was not Bombay but Calcutta that enjoyed the enviable position of
being the country's business centre. The foundations of the Ad Club were laid in 1954, when
Soli Talyer khan to join Voltas got in touch with Bobby Sista, having arrived in Bombay from
Calcutta.
Having formed a small but determined group of like-minded individuals, Adi Patel, Bal
Mundkar, Rudi Von Leyden, Bobby Sista, Hardcastle and Khurshid Dhondy met at what was
to be the Ad Club's first meeting. The settings may have been informal, but the focus was
clear: it was established to bring agencies and advertisers together. These popular afternoon
gatherings every month centred on training, made possible through prominent guest speakers
holding forth on key topics.
The Solus magazine became the voice of the Ad Club and with the arrival of Wally Ovins as
president, the Ad Club revved up on the excitement. The Ad Club Ball, an annual
extravaganza, came to be one of the most talked about events and during the rest of the year,
skits performed by eminent ad cum theatre personalities kept the social clock ticking.
Interestingly, the media side of the business never featured in the plans because the media
was not considered a part of mainstream advertising in those days. Even though the Ad Club
was then considered elitist, since membership was restricted, amateurs saw it as an
opportunity to increase social contacts and actively supported it. So did the veterans, whose
exalted positions in the industry gave them the satisfaction of dispensing advice to upcoming
talent.
Things have changed over the years, most of them for the better. The signs are all there -- 33
per cent Asia-Pacific profits, a growth rate that's three times the nation's GDP, global
partnerships with the world leaders, and an acceptance of Indian professionals as amongst the
best. Besides the Abbys, so far its public face, the Ad Club is involved in a number of other
4

activities.
Over the years, it has become a catalyst in developing the industry by organizing seminars,
workshops and events enabling professionals and students to interact. Solus , the Ad Club's
house journal, was recently awarded the best house journal by the Journal of India Public
Relations, Hyderabad. To those for whom size matters, the Ad Club is currently the largest
and with over 1600 active members from the fields of advertising, marketing, public
relations, media and research fields, from across the country, it is arguably the busiest.

1.2.1 INTRODUCTION:
The objectives of all business are to makes profits and a merchandising concern can do that
by increasing its sales at remunerative prices. This is possible, if the product is widely
polished to be audience the final consumers, channel
members and industrial users and through convincing arguments it is persuaded to buy it.
Publicity makes a thing or an idea known to people. It is a general term indicating efforts at
mass appeal. As personal stimulation of demand
for a product service or business unit by planting commercially significant news about it in a
published medium or obtaining favorable presentation of it upon video television or stage
that is not paid for by the sponsor .On the other hand, advertising denotes a specific attempt
to popularize a specific product or service at a certain cost.
The word advertising is derived from the Latin word viz, "advertero" "ad" meaning towards
and "verto" meeting towards and "verto" meaning. "I turn" literally specific thing". Simply
stated advertising is the art "says green." Advertising is a general term for and all forms of
publicity, from the cry of the street boy selling newspapers to the most celebrate attention
attracts device. The object always is to bring to public notice some articles or service, to
create a demand to stimulate buying and in general to bring logethel the man
with something to sell and the man who has means or desires to buy".

American marketing association has defined advertising as "any paid form of non personal
presentation and promotion of ideas, goods or services by an identified sponsor. The medium
used are print broad cast and direct.

1.2.2 Functions of advertising :

For many firms advertising is the dominant element of the promotional mix particulars for
those manufacturers who produce convenience goods such as detergent, non prescription
drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by
maters of automobiles, home appliances, etc, to introduce new product and new product
features its uses its attributes, availability etc.
Advertising can also help to convince potential buyers that a firms product or service is
superior to competitors product in make in quality, in price etc. it can create brand image
and reduce the likelihood of brand switching even when competitors lower their prices or
offer some attractive incentives.

It performs the following functions:

i)

Promotion of sales

ii) Introduction of new product awareness

iii) Mass production facilitation
iv) Carry out research
v) Education of people

1.2.3 Types of Advertising :

Broadly speaking, advertising may be classified into two categories viz., product and
institutional advertising.
A. Product Advertising:
The main purpose of such advertising is to inform and stimulate the market about the
advertisers products of services and to sell these.
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Thus type of advertising usually promotes specific, trended products in such a manner as to
make the brands seam more desirable. It is used by business government organization and
private non-business organizations to promote the uses features, images and benefits of their
services and products. Product advertising is subdivided into direct action and indirect action
advertising, Direct action product advertising wages the buyer to take action at once, ice he
seeks a quick response to the advertisement which may be to order the product by mail, or
mailing a coupon, or he may promptly purchase in a retail store in response to prince
reduction during clearance sale.

B. Institutional Advertising:
It is designed to create a proper attitude towards the sellers to build company image or
Goodwill rather than to sell specific product or service. Its purpose is to create a frame of
mind and to implant feeling favorable to the advertisers company. Its assignment is to make
friends for the institution or organization. It is sub-divided into three categories:
Patronage, public relations and public service.
i) In patronage institutional advertising the manufacturer tells his prospects and
Customer about himself his policies and lives personnel. The appeals to the
Patronage motivation of buyers. If successful, he convinces buyers that his
Operation entitles him to the money spent by them.
ii) Public relations institutional advertising is used to create a favorable image of the firm
among employees, stockholders or the general public.
iii) Public service institutional advertising wages public support.

D. Other Types:
The other types are as follows:
i) Consumer advertising
ii) Comparative advertising
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iii) Reminder advertising

iv) Reinforcement advertising

1.2.4 Benefits :
. The functions of advertisement, and that purpose its ethics, may be discussion below:
1. It leads to cheaper prices. "No advertiser could live in the highly
Competitive arena of modern business if his methods of selling were more costly than those
of his rivals."
2. It acquaints the public with the features of the goods and advantages which
buyers will enjoy.
3. It increases demand for commodities and this results in increased production.
Advertising :
a) Creates and stimulates demand opens and expands the markets;
b) Creates goodwill which loads to an increase in sales volume;
c) Reduces marketing costs, particularly product selling costs.
d) Satisfied consumer demands by placing in the market what he needs.

4. It reduces distribution expenses in as much as it plays the part of thousands of salesman at

a home. Information on a mass scale relieves the necessity of Expenditure on sales promotion
staff, and quicker and wider distribution leads to diminishing of the distribution costs.
5. It ensures the consumers better quality of goods. A good name is the breath of the life to an
advertiser.

6. By paying the way for large scale production and increased industrialization, advertising
contributes its quota to the profit of the companies the prosperity of the shareholder the
uplifts of the wage earners and the solution of unemployment problem.

1.3 SIGNIFICANCE OF THE PROBLEM:

Proper Media for advertisement should be selected based on target customers.

More attention is needed in making the advertisement more effective.

Advertisement should be attractive in all aspects.

People act on emotions, not on logic. Advertisements should touch on human desires
and needs, and offer solution to the problem.

Understanding the Customer Attitudes and Preferences.

Reasons for differences in advertising effectiveness.

Necessity of advertising effectiveness.

Add Effectiveness and improvement in advertisement.

1.3.1 SCOPE OF THE STUDY:

The scope of the study is to understand:
Carbonated drinks Market share in Bangalore.
Awareness level about the carbonated drinks TV. ad Promo amongst the retailers.

1.3.2 VARIABLES USED FOR THE STUDY:

Dependent variable - Pepsi
Independent variable Advertisements and promotions

Barriers to Great Advertising:

Advertising testing could provide a reliable feedback loop and lead to much better
advertising, but many obstacles stand in the way. The first great barrier to better advertising
is self-delusion. Most of us believe, in our heart-of-hearts, that we know what good
advertising is and that there is no need for any kind of independent, objective evaluation.
Agencies and clients alike often think that they know how to create and judge good
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advertising. Besides, once agencies and clients start to fall in love with the new creative, they
quickly lose interest in any objective evaluation. No need for advertising testing. Case closed.
Strangely, after 40 years of testing advertising, we cannot tell you if a commercial is any
good or not, just by viewing it. Sure, we have opinions, but they are almost always wrong. In
our experience, advertising agencies and their clients are just as inept at judging advertising
as we are. It seems that none of us is smart enough to see advertising through the eyes of the
target audience, based purely on our own judgment.
A second barrier to better advertising is the belief that sales performance will tell if the
advertising is working. Unless the sales response to the advertising is immediate and
overwhelming, it is almost impossible to use sales data to judge the effectiveness of the
advertising. So many variables are beyond our control, as noted, that its impossible to isolate
the effects of media advertising alone. Moreover, some advertising works in a few weeks,
while other advertising might take many months to show positive effects, and this delayed
response can confound our efforts to read the sales data. Also, advertising often has shortterm effects that sales data might reflect, and long-term (years later) effects that most of us
might easily overlook in subsequent sales data. Because of these limitations, sales data tends
to be confusing and unreliable as an indicator of advertising effectiveness.
Sophisticated marketing mix modeling is one way to measure these advertising effects on
sales, but it often takes millions of dollars and years of effort, and requires the building of
pristine databases of sales information along with all of the marketing input variables. Few
companies have the budget, the patience, the accurate databases, and the technical knowledge
necessary to succeed at marketing mix modeling. Even so, marketing mix modeling does not
help us evaluate the contribution of a single commercial but rather the cumulative effects of
many different commercials over a long period of time. Also, marketing mix modeling does
not tell us why the advertising worked, or failed to work. Was it message, or media weight, or
media mix that made the advertising effective? Generally, marketing mix modeling cannot
answer these types of questions. So, again, sales data is of limited value when you make
critical decisions about your advertising.
A third barrier to better advertising is a pervasive tendency of many (but not all) advertising
agencies to delay, undermine, and thwart efforts to objectively test their creative babies.
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Who wants a report card on the quality of their work? Its very threatening. The results can
upset the creative folks. The results can upset clients. The agency can lose control. Agencies
can be quite creative in coming up with reasons to avoid copy testing. Some of our favorites:

Theres no time. We have to be on air in five days, so well just have to skip the
testing.

These ads are built on emotion and feelings, and you cant measure such delicate,
artful subtleties.

Weve already tested the ads with a focus group during the development process.

These are image ads, and you cant test imagery with standard advertising testing
techniques.

We have so much equity in this campaign that it doesnt matter what the testing
results are. We cant afford to change.

Were in favor of testing, but lets remove those questions about purchase intent and
persuasion from the questionnaire.

We are in a new age, with new media and new messages, and none of the old copy
testing measures apply any more.

The fourth barrier to more effective advertising is the big creative ego. The belief that only
the "creatives" in the agency can create advertisingand the conviction that creativity is
their exclusive domainconstitute a major barrier. Great advertising tends to evolve over
time, with lots of hard work, fine-tuning, and tinkeringbased on objective feedback from
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target consumers. Big creative egos tend to resist such evolutionary improvements. We have
seen great campaigns abandoned because agencies would not accept minor tweaks to the
advertising. To be fair, big egos are not limited to advertising agencies. Big client egos can
also be a barrier to good advertising. Research firm egos are yet another problem. Big egos
create barriers because emotion is driving advertising decision making instead of logic,
reason, and consumer feedback. Big egos lead to bad advertising.
A fifth barrier to better advertising is the widespread belief that ones major competitors
know what they are doing. So, just copy the advertising approaches of the competition, and
success will surely follow. We recently had a client who was about to copy the advertising
strategy of a major competitor, but we were able to persuade the client to test all major
competitive commercials as a precaution before blindly copying the competitors advertising
approach. This competitor was the industry leader in market share and profitability. Our
testing quickly revealed that this industry leader was the industry leader in spite of its bad
advertising. The testing also revealed that another competitor, in contrast, had great
advertising. Needless to say, the clients desire to copy the industry leader quickly vanished.
The sixth barrier to better advertising is lack of strategy, or having a poor strategy. The client
is most often at fault here. The client has not done his homework, has not thought deeply
about his brand and its future, and has not developed and tested strategy alternatives. The
client tells the agency to go forth and create great advertising, without providing any strategy
guidelines. The agency is left to guess and speculate about strategy. Great advertising is
rarely created in a strategy vacuum. If the client cannot define a sound strategy, the agency
cannot create great advertising. Again, the responsibility for strategy falls squarely on the
client.
A seventh barrier to better advertising is client ineptness. Some clients processes, policies,
and people tend to discourage the creation of great advertising. Arrogance, ambiguity,
impatience, ignorance, risk aversion, and inconsistency tend to be the hallmarks of these
agency killer clients. Bad clients rarely stimulate or tolerate great advertising.
The eighth and last barrier to better advertising is poor copy testing by research companies.
Many advertising testing systems are limited to a few markets (and cannot provide
representative samples). Some systems are so expensive that the cost of testing exceeds the
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value of the results. Research companies have been guilty of relying on one or two simplistic
measures of advertising effectiveness, while completely ignoring many other very important
variables. For instance, for several years research companies argued publicly over which was
more important, persuasion measures or recall measures? The truth is that both are important,
but of greater import is the fact that neither of these measures alone, or in combination,
measures advertising effectiveness. To judge the effectiveness of an ad, many different
variables must be measured and considered simultaneously.

Creating Better Advertising:

Given all of these barriers to better advertising, how can client, agency, and research
company work together to create more effective advertising?
1. The client must craft a sound strategy for its brand, based on facts, not wishful
thinking and self-delusion. The client must carefully define the role of advertising in
the marketing plan and set precise communication objectives for the advertising.
What exactly does the client want the advertising to convey, to accomplish? Agencies
are too often asked to create advertising in an informational vacuum. Agencies are not
miracle workers. Once strategy and positioning alternatives are identified and tested,
the

strategy

should

be

locked

downand

rarely

changed

thereafter.

2. As creative executions are developed against the strategy, each execution should be
pretested among members of the target audience (pretesting refers to testing
advertising before it is aired, and/or before final production. When the term testing
is used in this article, it is a shorthand term for pretesting.) The greater the number
of executions pretested, the more likely it is that great advertising will emerge.
Testing the creative provides a reliable feedback loop that helps agency and client
alike become smarter over time. Once a conceptual family of commercials is
identified as the optimal campaign of the future, then the campaign should be locked
down. Long-term continuity of advertising message is essential to maximizing
effectiveness.

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3. Use the same pretesting system consistently. There is no perfect advertising pretesting
system. Some are better than others, but any system will help improve your
advertising. The secret is to use one system over and over, so that everyone (client,
agency, and researchers) learns how to interpret the pretesting results for the category
and the specific brand.

4. If budget permits, test the advertising at an early stage in the creative process (i.e., the
storyboard or animatic stage) and also test at the finished commercial stage.
Early-stage testing allows rough commercials to be tweaked and fine-tuned before
you spend the big dollars on final production. Early-stage testing tends to be highly
predictive of finished commercial scores, but not always. Testing the finished
commercials gives you extra assurance that your advertising is on strategy and
working.

5. Build your own action standards over time. As you test every execution, you will
begin to learn what works and what doesnt work. Think of the pretesting companys
norms as very crude, rough indicators to help you get started with a testing program.
But, as quickly as possible, develop your own norms for your category and your
brand (yes, all of the advertising effectiveness measures vary by product category and
brand). What you are searching for, long-term, are not norms, but action standards

6. Use a mathematical model to derive an overall score for each execution. It doesnt
matter that an ad has great persuasion if it does not register the brand name. It doesnt
matter that an ad registers the brand name if no one will notice the commercial itself.
It doesnt matter that an ad increases short-term purchase interest if it will damage the
brands quality reputation over time. So, all of the key variables must be put together
intelligently to come up with a composite or overall measure of advertising
effectiveness.

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7. Use the pretesting results as a guide, as an indicator, but do not become a slave to the
mathematical model. Read all of the open-ended questions carefully. Make sure you
really understand the underlying reasons. Base your decisions on this comprehensive
assessment of the results, and leave yourself some wiggle room. No model or system
can anticipate every marketing situation, or give a 100% perfect solution every time.
Informed human judgment remains important.

8. Client and agency need to accept that continuous improvement of the advertising is
an important goal. This means that every execution is tested and tweaked based on
scientific evidence from the target audience. We are not talking about changing the
strategy or changing the campaign, but making sure that every execution is on
strategy and working as hard as possible.

9. The ultimate goal of testing is an advertising success formula that works. That is, the
goal of advertising creative development, and the goal of advertising testing, is to
identify the elements/ideas essential to advertising effectiveness, and then to make
sure that those elements/ideas are consistently communicated by all advertising
executions.

The Power of Advertising:

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We believe in the power of advertising, based on thousands of studies in our archives.

Advertising has the power to persuade, the power to influence the mind and shape destiny. It
has the power to change markets and improve profit margins. Advertising has short-term
power (conveying new information, building awareness, enhancing credibility, etc.) and
long-term power (conveying brand image, attaching emotional values to the brand, building
positive reputation, etc.). The great power of advertising is seldom achieved in practice, but
we cant give up. The potential and the promise are too great. The companies that master the
creative guidance and the testing systems to consistently develop and deploy great
advertising will own the future and the fortunes that go with it. Great advertising is a cloak of
invincibility.
Editors note: Isabelle Albanese is founder and principal of Consumer Truth Ltd., a
Hinsdale, Ill., research firm.
The ability to communicate clearly and to identify effective communication has never been
more important than today in our hectic, fragmented world. And while there are undoubtedly
thousands of books written, papers published and philosophies espoused about how to
communicate effectively, Ive developed a simple framework called the 4Cs of Truth in
Communications, which was designed to offer researchers and clients a way to objectively
evaluate consumer response to stimulus.
Using a template weve created, which is explored below, clients follow consumer feedback
easily by instantly assessing how the stimulus performs on each of the Cs. When it comes
time for the debrief, all of your clients have a consistent format for structuring feedback,
which makes the debrief session flow very smoothly.
The 4Cs process was developed eight years ago for a presentation of insights to a new
campaign idea for a venerated brand. The clients in the room appreciated the way we
categorized the learning. The 4Cs structure enabled everyone at the table, from sales people
to promotion people to HR, to understand the learning in a way that made sense. And the ad
agency creative folks felt it was an objective way to think about consumer reaction to
advertising ideas. Having spent 16 years in the ad agency business working with creatives, I

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can tell you this was a personal victory! They are not easy to please, especially when it
comes to listening to consumers evaluate - not always in a generous way - their babies.
The 4Cs are: comprehension, connection, credibility and contagiousness. Together they
capture what everyone connected with the project needs to know about consumer response to
stimuli. Separately, they provide clarity for ourselves and our clients, and a simple way to
categorize consumer response.
They form a model in which you ask a series of questions about how the consumer responded
to stimuli. In the answers (as well as an understanding of how to use the model) lies the
direction you and your client are looking for to move forward.
Comprehension
Questions: Is the main message clearly communicated? Simply put, do consumers get it?
The comprehension C is exactly what you think it is - theres no hidden meaning or great
deal of explanation necessary, although it is obviously quite fundamental to basic
communication. On the surface, this is a simple assessment of whether the intended message
is being understood. Simple, in theory, but not always easy to achieve, because sometimes
marketers and advertisers seem determined to make consumers work exceedingly hard just to
get the message. How many times in showing advertising to consumers have you heard them
say with frustration, What are they trying to say to me?
Consumers just dont have the time. No matter what category were delving into - from ice
cream to clothing to coffee, shampoo or insurance - consumers are basically saying to us,
Please dont make me work that hard. I am very busy. Theyre perfectly willing to listen to
your message. In fact, many want to hear it. They just dont want to work hard to get it.
Connection
Questions: Does the message resonate with consumers? Is it persuasive? Does it
communicate that the brand knows them simply by the way it is talking to them? Does it
motivate purchase?
These are all critical questions in determining the extent to which any form of
communication connects with its intended audience.
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Connection is often an emotional response - something that is felt but cant be explained. A
genuine rapport has been established, so its no longer advertiser talking to customer or
politician to voter, its a message from someone who really knows me and understands what
matters to me. So much so that I feel that the message is speaking directly to me on a
personal level.
Connecting with the consumer means you have begun to establish a relationship with them
via your communication. And how valuable is that? It means something you said or showed
to them has resonated - has reached them on some internal level, whether thats in a rational
or irrational way - and so the communication resonates too.
The message somehow has tapped into an existing consumer truth for them in their lives
relative to the subject, and it usually always extends deep downward to something emotional,
or at the very least, something which is not entirely rational: frustration, excitement, anger,
passion, joy, happiness, sadness, resignation, etc.
I once worked on communications evaluation for a Suave hair care campaign. At the time,
we were aiming to communicate a completely new message based on a new positioning and
tapping into a newly-discovered consumer truth. Four print ads depicted mom (the target)
in various family situations:
In the kitchen multitasking by making a PB&J sandwich while having a phone conversation
- with her kids all around her doing various real-life kid-type things;
In the bathroom sitting on a (closed) toilet and helping her three-year-old with potty training
while her four-year-old is brushing his teeth;
In her daughters bedroom playing dress-up;
In the hallway helping her young daughter get her boots on.
All were very plausible, real-life situations. Of course, you say, if you hold a mirror up to
someone they are likely to say I can see myself! So what? That doesnt necessarily mean
they like what they see, are moved emotionally or otherwise motivated by that image. To be
19

sure. But in this case, it did mean that. One mom looked at those four ads and said, literally
as she pointed to each one of them, Thats me, thats me, thats me and thats me!
The connection wasnt made simply because she could see herself in those situations - and
heres the interesting, brand-relevant part - it was made because she saw that each of the
moms depicted had great-looking hair. She was able to connect with the message that even
though Im a mom and have a crazy, chaotic mom life, using Suave can help me look good!
And the beautiful epilogue to this story is that in subsequent quantitative ad testing, these ads
met all client hurdles for attention, branding, communication and motivation. And the Suave
hair care brand experienced share and sales growth.
Credibility
Questions: Does it make sense for the brand to speak to consumers in a certain way? Is the
tone and manner consistent with the brands position in consumers brain space based on
their experience with and understanding of the brands equities and promises? How do you
know?
If the message isnt credible, if it doesnt conform to the brands (or causes or platforms)
truth, its meaningless. The audience needs to believe who is saying it (e.g., the brands
voice), what is being said and how its being said. Otherwise any connection previously
established immediately begins to break down. And I really mean immediately.
Who: Does it make sense for your brand to speak to its audience in this way? Does it
logically fit, given the equity your brand has developed among its core target and in the
marketplace as a whole?
What: Is it something your audience expects from this brand? This could be good and bad.
If its something expected, it could likely get glossed over or even ignored outright. It may
fit, but if its just same-old, there better be enough going on in the areas of communication
and connection (and contagiousness, the 4th C) to make up for too-smooth a fit.
How: An unexpected message or delivery can bring a lot of energy and attention to your
brand, especially if its history or heritage or equity gives it permission to speak in this way.
20

Or even if it doesnt, it can still be powerful if marketplace conditions and consumer attitudes
make it acceptable anyway.
The point is, credibility leads to believability and believability leads to persuasion and
persuasion leads to action. So even if its not instantly credible, it becomes credible because
your audience can see a way to make the message fit. That counts too.
The credibility C is all about your brands truth. Its either going to work for consumers or it
isnt. For a message to really drive the credibility train, it must make sense for your brands
message to be communicated in that particular way. It gets an immediate head-nod. Not a
trace of doubt in my mind. When credibility is there, it removes a potential obstacle to
comprehension, connection and contagiousness.
In fact, when its instantly credible, consumers dont even think about it. They dont usually
look at an ad or package or concept which is delivering a credible brand message and say
Yes, that is a believable message from that brand. In most of the work we do, credibility of
the message is not an issue. Most clients know their own brand truth. Its the fiber of their
brand. Its been built up and ingrained in consumers brains and psyches over time.
Immediately actionable
No matter what the stimulus, applying the 4Cs can help identify if it really rocks and why, or
where it needs help to keep from sinking like a rock. The method is immediately actionable you can use it in your very next project that involves stimulus exposure.
Its also a way to get disparate constituents (brand clients, consumer insights clients, ad
agencies, etc.) on the same page relative to evaluating consumer feedback - something that
can always be a challenge.
The simplicity of the framework is its power; it is easy to remember and easy to use. It can
lead to better creative executions and stronger business result.

1.4 OBJECTIVES OF THE STUDY:

The long term objectives of advertising are broad and general, and concern the
21

Contribution advertising should make to the achievement of overall company objectives.

Most companies regard advertising main objective as hat of proving support to personal
selling and other forms of promotion. But advertising is a highly versatile communications
tools and may therefore be used for achieving various short and long term objectives. These
objectives are following:

To do the entire selling job (as in mail order marketing).

To introduce a new product (by building brand awareness among potential buyers).

To force middlemen to handle the product (pull strategy).

To build brand preference by making it more difficult for middleman to sell

Substitutes).

To remind users to buy the product (retentive strategy).

To publicize some change in marketing strategy (e.g., a price change, a new

Model or an improvement in the product).

To provide rationalization (i.e. socially acceptable excuses).

To combat or neutralize competitors advertising.

To improve the moral of dealers and/or sales people (by showing that the
Company is doing its share of promotion).

To acquaint buyers and prospects with the new uses of the product (to extend the
PLC).

1.4.1 ADVANTAGES OF PEPSI COLA:

Firstly, Pepsi has stayed in this market for almost one century. So they are so
experienced and stationed in people's mind deeply. Now no one doesn't know the
22

brand Pepsi-Cola Whenever the name Pepsi is heard, people will conjure up the
image of fresh and cool drink.

Secondly, Pepsi-Cola is not only in high quality, cool and fresh but also have a
competitive price in Chinese market* Sometimes Pepsi-Cola even has a lower price
than Coca-Cola In China.

Thirdly. Pepsi is such an experienced powerful global company, Which has a basic
of a great fund. So it has the ability to place a Idle sum of money to the promotion.
We can see that the advertisement of Pepsi-Cola is so attractive. It also invited the
top famous people to advertise for it. The advertisement is so elaborate and attractive
so that Pepsi gained the special prize of the advertisement Granny.

Pepsi also compares with the competitors and find their disadvantages to update its
own quality, flavor and also package promptly in order to satisfy the consumers'
need. This is the biggest advantage of Pepsi Company.

So you can see from the pipe-chart one that 41% of the interviewees prefer the flavor
of Peps-Cola. It is the most popular one. Pepsi company also produce the Diet-Cola
to meet the people who more concern their health. And it just changes the design of
the package of Pepsi-Cola.

1.4.2 DISADVANTAGES OF PEPSI COLA:

23

But we cannot consider things just on one side. Still there are some disadvantages
existing in Pepsi-Cola The pipe-chat 3 showed that most of the people like the
package of Coca-Cola best.48% people like it. It has only 32% people prefer the
package of Pepsi-Cola. So the design of Pepsi-Cola's package is not as attractive as
Coca--cola. It still needs to be improved. We suggest that the package needs to be
designed more colorful to attract people's attention.

.Although in the cola market there are many competitors, Pepsi still has the
opportunity to enlarge its market share because the cola in the market is quite
monotonic. Most of the end user is young people. There are still some people who do
not like the taste of the cola. So we can try to provide some other taste of cola such as
adding some lemon juice. We can change the flavor in order to meet different taste of
different people.

.As to the threats, all of us know that Pepsi-Cola and Coca-Cola have had the
competition for about 80 years. Although Pepsi-Cola have won several times during
this competition, the market share of Pepsi-cola is a little bit smaller than Coca-Cola.
There is another threat nowadays. Some local cola such as FeiChang and FenHuang
cola have taken their feet in the market. Their advertisement says "Chinese people
drink our own cola". It is well known that China is a united and patriotic nation. So
these words can really catch Chinese people's heart. And these local cola's flavor is
more suitable for Chinese. So it cannot be ignored.

1.5 LIMITATIONS OF THE SUDY:

24

1. The project is mainly on the primary data.

2. Customers give very unclear picture.
3. The study is based on Limited Sample.
4. The data collected from consumers is quantitative in nature i.e., views,
perception and nature. The factors may change from time to time.

1.6 FORMULATION OF WORKING HYPOTHESIS:

Ha: There is a significant impact of advertisement on the consumption of carbonated drinks
in Bangalore.

1.7 REVIEW OF LITERATURE:

25

1. The aim of the paper is to propose a simple approach to monitor and control the encoding
phase, too often neglected by the doctrine and operators in the communication process. The
paper is discusses a possible methodology to investigate the degree of coincidence /
discordance between what is conveyed through the advertising and what is actually
understood by some consumers. The object of investigation is the verbal text of the spot in
order to verify the level of understanding of the message and, if necessary, to find the reasons
of a wrong perceived meaning.
Advertising effectiveness can be defined as the extent to which advertising generates a
certain desired effect. Measuring the effects of advertising is very important, given the
amount of investments needed for advertising. While it is not possible to obtain a global
measure of the advertising effectiveness, we should seek to develop and apply methods and
measures for a partial verification of results. Regarding the difficulty of measuring the
overall effectiveness, we believe that it is due essentially to the following considerations:

advertising interacts with other business variables (behavior, marketing policies,

financial decisions etc.) and environmental variables (competition, economic
conjuncture etc.), hardly isolable;

the effects of advertising are varied and not always translatable into quantitative
terms;

Advertising causes long-term effects, not always, therefore, the results occur in the
same period in which are the costs.

In literature and practice the evaluation of advertising effectiveness has used two basic
models:
26

The dichotomous model(IRT Item Response Theory)

The three-dimensional model.

The dichotomous model is applied mainly in product and brand advertising, tending to isolate
and evaluate separately the following:
sales effect
Communication effect
The sales effect refers to the assessment of the capability of advertising to affect the sales
volume and/or the market share, regardless of the possible influence of other variables. For
Batra et al. (1995), the effectiveness of advertising should be considered for its effect on sales
in the short term. This advertising performance measurement is based on the marginal theory
(Chamberlin, 1948). The advertising is therefore regarded as an independent variable that can
be combined with other marketing variables to have a certain effect on the dependent
variable, i.e. sales. The aim is to seek the best combination of the determinants of the sales
increase.
The effect of communication refers to the ability to reach, with appropriate messages, a more
significant share of public. Such effect is examined in literature with different approaches:
Sociological, semiotic, psychological, socio-psychological. Sociological analysis focuses on
the community, considered as a system governed by rules and social norms, and on the social
behavior (Moingeon, 1993). The role of advertising and consumption in the society change is
a very fertile topic. Sociology has examined how advertising influences opinions, attitudes
and behaviors of individuals and social groups. There are two opposite sociological
perspectives to the advertising function in contemporary society. The first maintains a
positive approach to advertising. It is believed that the role advertising is to better organize
economic and social relations, to harmonize social behaviors, to make people adhere to
common values and to help them to better live together without problems.
The second approach is, by contrast, rather critic, because advertising tends to generate a
mass consumption. In order to adapt messages to a wider audience, introduces new, poorly
differentiated, symbolic values (Friedman, 1979).
27

The semiotic analysis focuses in the first instance, on symbols. These are identified as
anything that conveys meaning, e.g., words, gestures, images, and dance. Semiotics studies
the problem of encoding, and more generally of the code used. The object of investigation is
the message itself containing different signs that can be interpreted according to a pre
established intention, without reference to the consumer and the influence on the consumer
behavior. This approach is useful especially in the context of advertising creation. Authors
assess the effectiveness of advertising in reference either to the language of the message
(Barthes, 1964; Durand, 1964) or the graphic image of the message (Eco, 1979; Mick, 1986;
Scott, 1994). However, they analyze the quality of message from the viewpoint of its
construction, its presentation and the place of the communication process. The impact of the
message on the recipient is a minor problem in the process of the message evaluation. This is
an important limitation to the semiotic approach in terms of marketing.
Communication in general and advertising in particular, were treated by psychologists
starting from the motivations of recipients, which occupy a central position in the analysis.
This is because of their influence on the perception of the recipient (Mittelstaedt, 1990). They
believe that the motivations drive consumer behavior. So the purpose for the advertising
creator, is to identify the reasons of consumer behavior, in order to identify the most effective
advertisement message or to remove the communication barriers. With the psychological
approach, other types of research and investigation have emerged, thanks to the contribution
of neuroscience. The evidence (obtained through scientific experimentation) has become a
necessary support to verify the assumptions.
The psychological approach has the advantage to measure the effectiveness of advertising
with reference to the recipient of the message, particularly to the consumers characteristics.
On the other hand, the approach does not provide exhaustive answers, not delving into the
exact causes that lead the recipient of the message publicity to expose themselves voluntarily
to the message, decode it, to store and, eventually, to make the purchase. So it is not taken
into account the entire communication process, and, in particular, the external factors,
especially those related to the environment, that may play a crucial role in determining the
behavior of the recipient.
28

The socio-psychological approach takes simultaneously into account the message and the
recipient of the message. This approach aims to study the effectiveness of advertising in
terms of persuasiveness (Ray, 1982), observing the effects on the formation process of
attention, memory, attitude and behavior (Kapferer, 1990). This research methodology
considers the environment of the communication process and its actual interactions. The
experimentation is widely used. It also allows to consider all hypotheses tested together, and
all the links that may exist between variables, through a pre-test, getting an advantage in
terms of validity of the research. Rather than focusing solely and exclusively on direct effects
of certain variables taken individually, that is difficult to control in reality, this approach
studies the actual contribution of these variables in explaining the evolution of the dependent
variable, sales.
The major criticisms to the dichotomous model concern the partial evaluation and the
inability to provide reliable breakdowns of the effects achieved by advertising and by other
company politics (marketing and communication). For these reasons, sometimes, the threedimensional models (i.e. AIDA model and model Dagmar) are preferred. These models are
used both in planning advertising campaigns and evaluating their effectiveness. They propose
a hierarchy of communication effects, cognitive affective and behavioral (Brasini et al. 1993;
Marbach and Fabi 2000).
Namely the analysis of cognitive dimension concerns the messages understanding and
storing and must take account of different types of memory: spontaneous recall, without any
added indication; stimulated recall, facilitated by the presentation of certain evidence; related
memory, when respondents are able to describe at least one specific element of the
communication; recognition, or identification of the advertising; brand allocation, the
memory not only of the advertising but also of the advertised brand).

The affective dimension is linked to the attitude toward and perceptions of communication.
Affective reactions and emotional acceptance of that type of campaign are investigated. The
affective attitude towards the images proposed and the spread opinion of consumers is
29

detected.The behavioral dimension describes changes in buying behavior, detectable by

intentions and actions measured by sales and market share.
All the models mentioned so far are mainly focused on three elements of the communication
process:
The recipients (in terms of audience, memory, storage)
The media used (in terms of impact, coverage, frequency, etc..)
The feedback (in terms of attitudes, behaviors, opinions, etc...)
They totally omit other elements (source, code, context) assuming essentially that the
communication process was conducted in optimal conditions or at least without distortion.
Moreover a fundamental element for an effective communication process is the use of the
same code by the source and recipient.
Otherwise, the recipient will not understand the message or give a different meaning and this
will lead to the phenomenon Eco called "aberrant decoding". However, since as stated by
Watzlawich the message is what we understand, not what it was intended to understand, it
becomes important to examine not so much and not only what the firms wanted to
communicate, but what was actually communicated.

2. Levy and Malaviya (1999) indicated that effectiveness of advertising is "persuasion does
not rest within advertising messages per se and it depends on certain mental processes that as
ad recipient invokes". Generally, advertising effectiveness is described as being "a hierarchy
30

of effects" (Vakratas and Amber, 1999). In the other word, changes of consumer perceptions
by the information in the advertisement will lead to a change in their behaviors.

There are a variety of studies conducted by researchers focusing on effectiveness of internet

advertising and the practitioners have long sought to understand how internet advertising
works. Many literatures have detailed evidences that web characteristics influenced the
effectiveness of advertising. For instance, Bruner and Kumar (2000) studied the components
of web page as well as web design and similarly Cho (1999) studied on the advertising
content design. In their research, they revealed the relationship between web characteristics
and effectiveness of internet advertising.
Based on their findings, they established that web characteristics influence the effectiveness
of internet advertising. Numerous of measures have been suggested to empirically evaluate
internet advertising effectiveness however there are lack of research focus on the consumer
characteristics. The research examined the consumer characteristics towards effectiveness of
internet is limited consequently the influence of consumer characteristic will be the central
attention of this research.
According to the previous research, the role of consumer in determining the effects and
effectiveness of advertising is highlighted as a result of growing interactive advertising
(Pavlou and Stewart, 2000). In the study, they mentioned how the effects and effectiveness of
advertising are evaluated and various measures are interpreted which is associated with the
role of consumer.

31

3. Pavlou and Stewart (2000) established that measures of advertising effectiveness can be
categorized into two broad sets. Yet these two broad sets are complementary views to the role
of advertising. Media choice, information search, attention to and processing of information
are focused in first set of the measures. These measures are built with important construct of
consumers' values, goals, and purposes.
Awareness, recall, attitude, and product choice are among the second set of measures
established by Pavlou and Stewart (2000) which focus on the effects of consumers using
interactive media. All these measures in the later set not only result of exposure to advertising
but also outcomes of choices made by the consumers.
According to Wu (2001), there is a six-step hierarchy of effect model: awareness, knowledge,
liking, preference, conviction and purchase to measure the advertising effectiveness.
Alternatively, Palanisamy and Wong (2003) suggested numerous forms of dimension can be
used to measure the effectiveness of advertising such as attitude formation, familiarity, recall
and recognition. Similarly,
Ives and Olson (1984) indicated a more inclusive and precise assessment is to be presented
by consumer interaction. Therefore, these measures are the joint result or interaction of the
consumer and the advertising (Punj and Stewart, 1983). Consumer characteristics that
influence the effectiveness of advertising are the essential attention in this research and they
are measured based on the attitude formation, familiarity, recall and recognition.
To understand the consumer characteristics that influence the effectiveness of advertising,
plenty of researches have been carried out to seek for the aspects that affect the effectiveness
of internet advertising. Consumer expectations have been found to be a significant
determinant of internet advertising effectiveness (Palanisamy and Wong, 2003). Expectation
to the advertisement can be in the form of positive, negative and neutral which might
manipulate the effectiveness of advertising. Refer to the research conducted by Lafferty and
Goldsmith (2002), consumer attitudes affect the response of the consumer towards the
advertisement. Better recall is resulted from positive attitude towards the advertisement and
vice versa. Brand preference and purchase behavior is predicted by the attitude towards the
advertisement (Mitchell, 1986).
32

Moreover, consumer innovativeness plays an important role in determining the effectiveness

of internet advertising. Consumer innovativeness affects the consumer actions of viewing and
engaging in the internet advertising (Venkatraman, 1991). Additionally, consumer perceived
usefulness also serve as a critical aspect in advertising effectiveness. Palanisamy and Wong
(2003) claimed that effectiveness of advertising is affected by consumer perceived
usefulness.
Beside that, one of the major variables that are significant to advertising effectiveness is the
level of consumer involvement (Laurent and Kapferer, 1985). According to Stewart and Ward
(1994), advertising effectiveness can be enhanced by consumer involvement. Likewise,
consumer satisfaction and performance in the other information system can be improved by
the consumer involvement and participation (McKeen, Gulmaraes and Wetherbe, 1994).
Refer to the previous research, several outcomes of effectiveness of advertising have been
established. Based on the research conducted by Shankar and Hollinger (2007), they claimed
that nearly 10% of the computer monitors' area is occupied by the web banner advertisements
which allow the consumer to click through. In addition, web banner advertising creates a
trace of exposure with the consumer who serves the website and increases the consumer
recall of the advertising as well as the brand (Drze and Hussherr, 2003). When one is
exposed to continuous stimuli his or her recall is higher (Craik and Lockhart, 1972).
Gaffney (2001) noted that internet advertising is effective in generating sales. The content of
the internet advertising is generally trusted by the consumer as compare to an advertisement
in general (Schlosser, Shavitt and Kanfer, 1999). In addition, Goldsmith and Lafferty (2002)
found out that consumers are more likely to get the information from the internet advertising
for example the phone number listed in the internet advertising before they make purchases.
This proposed that internet advertising has the potential to facilitate sales. Customers are
drawn into viewing and purchasing the product by successful advertisement (Weilbacher,
2003). Regardless of whether the consumers click the web banner advertising or not, the
opportunity of purchase increased when the advertising is viewed (Briggs and Hollis, 1997).
On the other hands, there are researchers who doubt on the effectiveness of internet
advertising. There are some researches show that internet advertising is more powerful,
responsive and customizable than traditional media but Hoffman and Novak (1996) noted
33

that the empirical evidence show consumers respond to the internet advertising is in the
identical way when respond to the more traditional media. For instance, the response to
internet advertising is similar to other media advertising (Schlosser, et al., 1999) yet internet
advertising has the exemption that is easy to ignore (Drze and Hussherr, 1999). Besides,
many researchers claimed that internet advertising is not effective due to web based banner
with low click through rates, insufficient useful information and the information appeared to
confuse the consumers (Mathews, 2000). O'Connell (2001) claimed that the internet
advertising failed to communicate brand building information and did not connect to any
meaningful results such as sales and profits.
Moreover, several studies have been carried out to examine this issue. Findings showed that
the most common internet advertising, banner advertising is negligible in its effectiveness
(Green and Elgin, 2001). Additionally, in the study done by Goldsmith and Lafferty (2002)
indicated that banner advertisement may get lost in the clutter while pop-ups and interstitials
are seem to be interfering. Therefore, these internet advertising is able to create awareness
but does not ensure effectiveness. Similarly, Ducoffe (1996) identified that irritation as one of
the determinants that affect consumer attitudes which in turn affect the effectiveness of
advertising.
In order to clarify the ambiguity of internet advertising effectiveness, this study is carried out
for a better authentication. The effectiveness of internet advertising will be revealed in this
study by examined the consumer characteristics in detail. It will focus on the consumer
characteristics that influence and affect the effectiveness of internet advertising.

4. Studies on the effects of advertising predominantly focus on the intrinsic characteristics of

the ad. Researchers study such things as the effect of humor in the ad (e.g. Weinberger &
Gulas, 1992), appeals to fear (e.g. LaTour, Snipes, & Bliss,, 1996; Van der Lee, 1998), or the
type of endorser (e.g. Till & Shimp, 1998;; Van der Lee & Van den Putte, 2001).
34

It is, however, generally agreed that advertising effects are not just a function of the ad itself,
because ads are not received in a vacuum by a passive audience. Basing their work on the
uses and gratifications paradigm of media use (e.g. Palmgreen, Wenner, & Rosengren,
1985),, several advertising researchers have shown that audience characteristics play an
important role in understanding advertising effectiveness (e.g. Smith, 1999).
Likewise, the environment in which the ad is embedded may play an important role in
explaining its success (O' Guinn & Faber, 1991; Stewart, Pavlou,, & Ward, 2002).
The influence of context on advertising effects has been a topic of research since the early
sixties and a significant number of studies have investigated this relationship. However, this
body of research has not yet led to an unequivocal understanding regarding context effects,
since different context characteristics have been studied, differed effect measures have been
taken, and since there is no agreement about the direction of the relationships found.
A Systematic and integrated synthesis of existing research findings might provide a solution
to this problem. Too date, two narrative reviews of literature (Schumann & Thorson, 1990;
Singh & Churchill, 1987) and one quantitative meta-analysis (Mattenklott, 1998) Have been
published, but these do not provide a general overview.
The narrative Reviews explore a restricted number of relationships between context
characteristics and advertising effects. Furthermore, the two studies come to contradictory
conclusions. Singh and Churchill (1987) contend that a commercial Appearing in a program
inducing high arousal generates better processing and therefore greater commercial recall and
recognition. Schumann and Thorson(1990),, on the other hand, propose a negative
relationship between the intensity off a response to a program and memory for embedded
commercials.
The reviews base their conclusions on different studies, which indicates an unsystematic
literature search and therefore biased conclusions.

35

Mattenklott's (1998)) quantitative meta-analysis was based on a systematic literature search,

but this study only discusses experimental research in a television setting and is restricted to
the relationships between just two contextual variables and two advertising effects.
The aim of this study is to provide a structured and integrated review of all the empirical
literature on the relationship between context characteristics and advertising effects. By
systematically comparing studies, we want to determine which aspects of the context play the
most important role in determining ad effects, which specific ad effects are affected by the
context, and in what ways. Finally, we want to identify gaps in present research on
advertising in order to give direction to future research.

5. Jerry W. Thomas
The advertising industry, as a whole, has the poorest quality-assurance systems and turns out
the most inconsistent product (their ads and commercials) of any industry in the world. This
might seem like an overly harsh assessment, but it is based on testing thousands of ads over
several decades. In our experience, only about half of all commercials actually work; that is,
36

have any positive effects on consumers purchasing behavior or brand choice. Moreover, a
small share of ads actually appears to have negative effects on sales. How could these
assertions possibly be true? Dont advertising agencies want to produce great ads? Dont
clients want great advertising? Yes, yes, they do, but they face formidable barriers.
Unlike most of the business world, which is governed by numerous feedback loops, the
advertising industry receives little objective, reliable feedback on its advertising.
First, few ads and commercials are ever tested among consumers (less than one percent,
according to some estimates). So, no onenot agency or clientknows if the advertising is
any good. If no one knows when a commercial is good or bad, or why, how can the next
commercial be any better?
Second, once the advertising goes on air, sales response (a potential feedback loop) is a
notoriously poor indicator of advertising effectiveness because there is always so much
noise in sales data (competitive activity, out-of-stocks, weather, economic trends,
promotional influences, pricing variation, etc.).
Third, some of the feedback is confusing and misleading: agency and client preferences and
biases, the opinions of the clients wife, feedback from dealers and franchisees, complaints
from the lunatic fringe, and so on.

37

CHAPTER -2
RESEARCH METHODOLOGY AND DATA
COLLECTION

38

2. RESEARCH METHODOLOGY AND DATA COLLECTION:

Research provides the knowledge and skills needed for the fast-paced decision-making
environment. It is systematic & critical investigation into a phenomenon. It is not a mere
compilation but a purposive investigation. It aims at describing interpreting & explaining a
phenomenon. It adopts a scientific method. It is objective, logical, applies possible tests &
arrives at conclusions. It is based on observable experience or empirical evidence. Research
is directed towards finding answers to pertinent questions It emphasizes the development of
generalization, principles or theories.

Methodology could be defined as the analysis of principles, rules, evaluation and methods
those are used by the researcher (Creswell, 2010). To come out with a successful result from
the research it is important to employ the effective and the efficient methodology for data
collection from both the primary and secondary sources. However, the resources for the
research like time, fund and access to information influence the decision for choosing the
methodology for the research. But the researcher must ensure that the selected methodology
is the most appropriate and practical for the research under some particular circumstances.

2.1 Concept of Research Methodology

The research is the organized way of enhance knowledge by undertaking certain
methodology and the methodology is certain theoretical structure to conduct the research.
The research is a multi-step process to formulate and clarify the topic, review of literature,
design the research, collect and analyze data and write up (Saunders, et al., 2009). On the
other way Jankowicz (2005) defined the method as a systematic approach of collection and
analysis of data so that information could be gained from data. Ghauri and Gronhaug (2005)
defined the word systematic is the logical relationship of research rather than just a
philosophy.

39

Research Design:

The research design is the blueprint for the fulfillment of objectives and answering questions.
It is a master plan specifying the method and procedures for collecting and analyzing needed
information.

Descriptive Research :
It is used in this study as the main aim is to describe characteristics of the
phenomenon or a situation.

40

2.2 Data Collection Methods:

The source of data includes
Primary data sources
Secondary data sources.

Primary Sources: Primary data has been collected directly from sample respondents
through questionnaire and with the help of interview.

Secondary Sources: Secondary data has been collected from standard textbooks,
Newspapers, Magazines & Internet.

2.3 Research Instrument:

Research instrument used for the primary data collection is Questionnaire.

2.4 Sample Design:

Sample design is definite plan determine before any data is actually obtaining for a sample
from a given population. The researcher must decide the way of selecting a sample. Samples
can be either probability samples or non-probability samples.

2.5 Sampling Technique:

Convenience

41

CHAPTER -3
DATA ANALYSIS AND INTREPRETATION

42

3. DATA ANALYSIS AND INTREPRETATION

1. Do you like to take carbonated drinks?

Particulars

No. of

Percentage

yes
No
Total

respondents
97
3
100

97%
3%
100%

3
YES
NO
97

INTREPRETATION :

here,

maximum number of respondents like the carbonated drinks and

minimum number of respondents does not like the carbonated drinks.

ANALYSIS:
97% of respondents like carbonated drinks whereas 3% of respondents do not
like the carbonated drinks.
43

2. How frequently you take carbonated drinks?

particulars
Once in a day
Twice a day
More than once
Not regular
Total

No. of respondents
22
34
37
6
100

22

Percentage
22%
34%
37%
6%
100%

Once in a day
Twice a day

37

More than once

34

Not regular

INTREPRETATION :
here, maximum number of respondents consume carbonated drinks more than
once and minimum respondents are not regular in consuming carbonated drinks.
ANALYSIS: Here, 37% of respondents like to consume more than once in a
day , 34% of respondents consume twice a day , 22% of respondents consumes
only once in day and 6% of respondents are not regular in consuming
carbonated drinks.
3. Have you seen the advertisement which you like the most?
44

particulars
Yes
No
Total

No. of respondents
70
30
100

70
100

Percentage
70%
30%
100%

Yes
No
Total

30

INTREPRETATION :
Here, the maximum number of respondents seen the advertisement which they
like the most and minimum number of respondents do not seen the
advertisement which they did not like the most.
ANALYSIS:
Here , 70% of the respondents seen the advertisement which they like the most
and 30% of the respondents do not seen the advertisement which they like the
most.

4. Through which media you have seen the advertisement?

45

particulars
TV
Magazine
Newspapers
Others
Total

No. of respondents
37
17
44
1
100

Percentage
37%
17%
44%
1%
100%

1
37

TV
Magazine

44

Newspapers
Others
17

INTREPRETATION:
Here , the maximum number of respondents seen the advertisements through
newspapers and minimum number of respondents seen through other media.
ANALYSIS:
Here , 44% of the respondents see the advertisement through newspapers, 37%
of respondents through TV, 17% of respondents through magazine and 1% of
respondents through other media of advertisement.
5. Do you think advertisement is necessary for the sale of cold drinks?
particulars

No. of respondents

Percentage
46

Necessary

29

29%

Very necessary

48

48%

Not necessary

21

21%

Cant say

1%

Total

100

100%

21

1
29

Necessary
Very necessary
Not necessary
Cant say

48

INTREPRETATION:
Here, the maximum number of respondents feels advertisement is very
necessary for the sale of the cold drinks and minimum number of respondents
feels cant say based on advertisement.
ANALYSIS:
Here, 48% of the respondents feels advertisement is very necessary for the sale
of cold drinks, 29% feels it is necessary, 21% of respondents feel it is not
necessary and 1% of respondents feels cant say based on advertisement.
6. Do you think that advertisement has forced you to consume product
more?
particulars
Yes
No

No. of respondents
77
23

Percentage
77%
23%
47

Total

100

100%

23%
Yes
No
77%

INTREPRETATION:
Here, the maximum number of respondents feels that advertisement has forced
them to consume product more and minimum number of respondents feels
advertising is not forcing them to consume more product.
ANALYSIS:
Here, 77% of the respondents feels advertising driven them to consume more
product and 23% of respondents feels advertisement does not drive to consume
product more.

7. Which reason you find for the difference of the advertisement

effectiveness?
particulars
Education
Likings

No. of respondents
22
31

Percentage
22%
31%
48

Standard of living
Level of development
Total

40
6
100

22

40%
6%
100%

Education
Likings

40

Standard of living
31

Level of development

INTREPRETATION:
Here, maximum number of respondents feels standard of living is the reason for
difference of advertising effectiveness and minimum respondents feels level of
development is the reason.
ANALYSIS:
Here, 40% of respondents feel standard of living, 31% of them feel likings,
22% of respondents thinks education and only 6% of respondents feel level of
development is the reason for difference in the advertising effectiveness.
8. Is the study of effectiveness would contribute in improvement in current
advertisement?
particulars
Yes
No
Total

No. of respondents
84
16
100

Percentage
84%
16%
100%

49

16%
Yes
No
84%

INTREPRETATION:
Here, the maximum number of respondents feels study of effectiveness
contribute in improvement in current advertisement and minimum number of
respondents feels it is not necessary.
ANALYSIS :
Here, 84% of the respondents feel study of effectiveness contribute in
improvement in current advertisement and 16% of respondents feel it is not
necessary.
9. What do you think the use of study of effectiveness is for whom?
particulars
For company
For employees
For customers
None of the above
Total

No. of respondents
43
15
39
3
100

Percentage
43%
15%
39%
3%
100
50

3
For company
43

39

For employees
For customers
None of the above

15

INTREPRETATION:
Here, maximum number of respondents thinks that study of effectiveness is for
the company and minimum respondents think that none of the above option is
useful.
ANALYSIS:
Here, 43% of respondents thinks study of effectiveness is for company, 39%
thinks for customers, 15% for the employees and 3% for none of the above
options.
10. How do you find the taste of Pepsi jeera?
particulars

No. of respondents

Percentage

Very good

28

28%

Satisfactory

54

54%

Poor

16

16%

Very poor

1%

Total

100

100%

51

16

1
28

Very good
Satisfactory
Poor
Very poor

54

INTREPRETATION:
Here, maximum number of the respondents feels the taste of Pepsi jeera is
satisfactory and minimum number of respondents feels it is very poor.
ANALYSIS:
Here, 54% of the respondents are satisfactory, 28% of respondents says very
good, 16% of respondents feels poor and 1% feels very poor in taste.
11. According to you what is your level of satisfaction with Pepsi or Pepsi
jeera?
particulars
Highly satisfied
Satisfied
Neither satisfied nor

No. of respondents
32
60
6

Percentage
32%
60%
6%

dissatisfied
Highly dissatisfied
Total

2
100

2%
100%
52

6 2
Highly satisfied

32

Satisfied
Neither satisfied nor
dissatisfied
Highly dissatisfied

60

INTREPRETATION:
Here, maximum number of respondents is highly satisfied with Pepsi or Pepsi
jeera and minimum are highly dissatisfied.
ANALYSIS:
Here, 60% of the respondents are satisfied, 32% of them are highly satisfied,
6% are neither satisfied nor dissatisfied and 2% are highly dissatisfied.
12. Is the study of advertisement effectiveness would contribute in
improvement of present advertisement?
Particulars

No. of respondents

Percentage

Yes

67

67%

No

14

14%

Cant say

2%

Not necessary

11

11%

Total

100

100%

53

11
Yes

14

No
Cant say
Not necessary

67

INTREPRETATION:
Here, maximum number of respondents feels study of advertisement
effectiveness would contribute in improvement of present advertisement.
ANALYSIS:
67% says study of advertisement effectiveness would contribute in
improvement of present advertisement, 14 % says no, 11% feels not necessary
and 25 says cant say.
13. The expenditure incurred on the advertisement of cold drinks is such
effective that it adds to profits?
Particulars

No. of respondents

Percentage

Yes
No

49
9

49%
9%

Cant say
Not necessary
Total

38
1
100

38%
1%
100%

54

1
Yes
38

No

49

Cant say
Not necessary

INTREPRETATION:
Here, maximum number of respondents feels expenditure incurred on the
advertisement of cold drinks is such effective that it adds to profits, and
minimum feels its not necessary.
ANALYSIS:
Here, 49% of the respondents says expenditure incurred on the advertisement
of cold drinks is such effective that it adds to profits, 38% feels cant say,95
says no and 1% feels it is not necessary.
14. why do you like the advertisements?
Particulars

No. of respondents

Percentage

Because it has film stars

1%

Because of good music

37

37%

Its theme and making is

61

61%

Any other reason

1%

Total

100

100%

appealable

55

Because it has film stars

11
Because of good music

Its theme and making is appealable

37

61
Any other reason

INTREPRETATION:
Here, maximum number of respondents says they like advertisements because
of its theme and making is appealable and minimum number of respondents
feels because it has film stars and may be any other reason.
ANALYSIS:
Here, 61% of respondents like advertisements because of its theme and making
is appealable, 37% of them feel because it has good music, 1% of them say
because it has film stars and 1% feels may be any other reason.
15. Which flavor of the cold drink you like the most?
particulars

No of respondents

Percentage

Cola

63

63%

Jeera

12

12%

Lemon

21

21%

Others

4%

Total

100

100%

56

4
21

Cola
Jeera
Lemon

12

63

Others

INTREPRETATION:
Here, maximum number of respondents likes cola flavor and minimum number
of respondents like others.
ANALYSIS:
Here,63% of respondents like cola flavor, 21% likes lemon flavor, 12% likes
jeera and 4% feels other flavors.
16. Do you think Pepsi jeera is good for health?
particulars

No. of respondents

Percentage

Yes

83

83%

No

17

17%

Total

100

100%

57

17%

Yes
No

83%

INTREPRETATION:
Here, the maximum number of respondents feels pepsi jeera is good for health
and minimum number of respondents says it is not good for health.
ANALYSIS:
Here, 83% of respondents feels Pepsi jeera is good for health and 17% of
respondents says it is not good for health.

17. Do you think consuming of carbonated drinks for children below the
age of 8 is harmful?

particulars

No. of respondents

Percentage

Yes

75

75%

No

25

25%
58

Total

100

100%

25%
Yes
No
75%

INTREPRETATION:
Here, maximum number of respondents feels consuming of carbonated drinks
for children below the age of 8 is harmful and minimum feels it is not harmful.
ANALYSIS:
Here,75% of respondents feels consuming of carbonated drinks for children
below the age of 8 is harmful and 25% of them feels it is not harmful.
18. Do you think both youth and senior citizens prefer to consume cold
drinks?

59

particulars
Yes
No
Not necessary
Cant say
Total

No. of respondents
58
35
4
3
100

Percentage
58%
35%
4%
3%
100%

43
Yes
No

35
58

Not necessary
Cant say

INTREPRETATION:
Here, maximum number of respondents feels both youth and senior citizens
prefer to consume cold drinks and minimum respondents feels cant say.
ANALYSIS:
Here,58% of the respondents feels both youth and senior citizens prefer to
consume cold drinks, 35% says no, 4% feels not necessary and 3% feels cant
say.
60

19. Slogan of the cold drink which you like the most?
particulars

No. of respondents

Percentage

Jo chahe ho jaye, coco -

16

16%

cola enjoy
Taste the thunder

19

19%

Yeh dil mange more

62

62%

Yara da tashan

3%

Total

100

100%

16

Jo chahe ho jaye,
coco - cola enjoy
19

62

Taste the thunder

Yeh dil mange more
Yara da tashan

INTREPRETATION:
Here, maximum number of respondents like the slogan yeh dil mange more and
minimum likes yara da tashan.
ANALYSIS:
Here,62% likes Yeh dil mange more, 19% likes taste the thunder, 16% likes Jo
chahe ho jaye, coco - cola enjoy and 3% likes yara da tashan.
61

20. How many advertisements you seen are of the most likely cold drink by
you?
particulars

No. of respondents

Percentage

One

50%

50%

Two

26

26%

More than two

14

14%

None

10

10%

Total

100

100%

10

0.5
One
Two
26

14

More than two

None

INTREPRETATION:
Here, maximum number of respondents watched the advertisements that are
most likely cold drink by them and minimum number of respondents feels none
of the advertisements are most likely cold drink by them.
ANALYSIS:
50% of respondents says one time, 26% says twice, 14 % says more than twice
and 10% says none.
62

CHAPTER- 4:

OBSERVATIONS (OR) DISCUSSIONS

63

4. OBSERVATIONS

4.1 ANALYSIS AND INTREPRETATION OF LIKERT SCALE :

1.Which are the factors that affect your purchase decision?

Factors

strongly
agree

agree

neutra

disagre

strongly

disagree

Total

advertisement

45

20

15

15

100

Price

35

25

20

20

100

Flavour

37

23

12

20

100

brand ambassador

25

35

10

15

15

100

packaging

21

34

23

12

10

100

Brand

57

33

100

64

1. ADVERTISEMENT:

advertisement
strongly agree

agree

15

neutral
45

15

disagree
strongly disagree

20

INTREPRETATION:
Here, the maximum number of respondents feels advertisement is necessary for
the purchase decision of carbonated drinks and minimum respondents feels
advertisement is not a main factor.

ANALYSIS:
Here, 45% of the respondents strongly agree that advertisement is the main
factor that affect purchase decision, 20% agree with the above statement, 15%
feels neutral i.e., either advertisement is essential or it may not be essential,
15% of respondents disagree and 5% of respondents strongly disagree that
advertisements are not the main factor for purchase decision.
65

2. PRICE

price
strongly agree
agree

20
35

neutral
disagree
strongly disagree

20
25

INTREPRETATION:
Here, maximum number of respondents feels price is the main factor for that
affect purchase decision and minimum respondents feels price is not a main
factor.

ANALYSIS:
Here, 35% of the respondents strongly believes price is the main factor, 25% of
respondents agree, 20%of respondents says neutral, 20% of respondents
disagree and 0% of respondent strongly disagree that price is not a main factor.

66

3. FLAVOR

flavor
strongly agree
agree

20
37

neutral
disagree

12

strongly disagree
8
23

INTREPRETATION:
Here, the maximum number of respondents feels flavor is the main factor that
affect the purchase decision of carbonated drinks and minimum number of
respondents feels neutral in their opinion.

ANALYSIS:
Here, 37% of respondents are strongly agree that flavor is the main factor that
affect the purchase decision, 23% of respondents agree with the above
statement, 8% of respondents give neutral opinion, 12% are disagree and 20%
of the respondents are strongly disagree.

67

4. BRAND AMBASSADOR:

brand ambassador
strongly agree
15

25

15

agree
neutral
disagree
strongly disagree

10
35

INTREPRETATION:
Here, maximum number of respondents agrees that brand ambassador also
affect the purchase decision and minimum respondents are disagreed and
strongly disagreed.
ANALYSIS:
Here, 35% of respondents agree, 25% of respondents strongly agree, 10% of
respondents says neutral i.e., either brand ambassador may affect the purchase
decision or it may not,15% of respondents disagree and 15% of respondents
strongly disagree with the above statement.

68

4. PACKAGING

packaging
strongly agree
10
12

21

agree
neutral
disagree

23

strongly disagree
34

INTREPRETATION:
Here, maximum respondents agree that packaging is also a main factor that
affects purchase decision and minimum respondents are strongly disagree.

ANALYSIS:
Here, 34% of respondents are agree that packaging is also main factor, 23% of
respondents says neutral i.e., packaging may be or may not be the main factor,
21% of respondents strongly agree,12% of respondents are disagree and 10%
of respondents are strongly disagree.

69

5. BRAND

brand
strongly agree

7 3

agree
neutral

33

disagree
57

strongly disagree

INTREPRETATION:
Here, maximum number of respondents are strongly agree that brand is the
main factor that affect the purchase decision of carbonated drinks and minimum
respondents are disagree that brand is not a main factor.

ANALYSIS:
Here, 57% of the respondents are strongly agree that brand is the main element,
33% of respondents agree, 7% of respondents says neutral, 3% of respondents
disagree and 0% of them are strongly disagreed with the above statement.

70

CHAPTER -5:
SUMMARY OF FINDINGS

71

5. FINDINGS BASED ON THE SURVEY:

48% of the respondents feels advertisement is very necessary for the sale
of cold drinks, 29% feels it is necessary, 21% of respondents feels it is
not necessary and 1% of respondents feels cant say based on
advertisement.
77% of the respondents feels advertising driven them to consume more
product and 23% of respondents feels advertisement does not drive to
consume product more.
63% of respondents like cola flavor, 21% likes lemon flavor, 12% likes
jeera and 4% feels other flavors.
35% of the respondents strongly believes price is the main factor,25% of
respondents agree, 20%of respondents says neutral, 20% of respondents
disagree and 0% of respondent strongly disagree that price is not a main
factor.
58% of the respondents feels both youth and senior citizens prefer to
consume cold drinks, 35% says no, 4% feels not necessary and 3% feels
cant say.

83% of respondents feels pepsi jeera is good for health and remaining
feels it is not good for health.
72

 61% of them feels they like advertisements because of its theme and
making is appealable, 37% of them feels because it has good music, 1%
of them says because it has film stars and 1% feels may be any other
reason.
84% of the respondents feels study of effectiveness contribute in
improvement in current advertisement and 16% of respondents feels it is
not necessary.

73

CHAPTER -6:
CONCLUSION AND SUGGESTIONS

74

6.1 CONCLUSION:
After going through the entire project and the collected data, I found that:
84% of the respondents said that TV is the most effective media of
advertisement.
Majority of respondents are of the view that advertisement is very
necessary for cold drink.
Majority of respondents sees the advertisement of the cold drink they
like most.

Celebrities and the slogans in the advertisements affect the consumers.

6.2 SUGGESTIONS:

Advertisement should not be too expensive, because the advertisement

leads and increase the price of the product.
75

 Media should to be selected according to the choice of the people.

In rural areas media should be according to the choice of the people.
To give more attention in making the advertisement to make it effective
for the sale of cold drink.
Price should be decreased so as to attract the consumers to use product
more.
To give attention on the weak media of advertisement so that the
consumers comes to know about the product.
It should be attractive one so that people are attracted towards the
advertisement.

76

BIBLOGRAPHY:
Marketing Management Philip Kotler
Marketing Research

Tull and Hawkins

Marketing Management

- Frederick E Webster

Advertising Management - Aaker & Myers

Advertising and Sales Promotion - George E Belch et al.
Internet Websites:
WWW. Pepsiworld.com
www.google.co.in

77

QUESTIONNAIRES:
1. Do you take carbonated drinks?
a. Yes
b. No
2. How frequently you take carbonated drinks?
a. Once a day

b. Twice a day

c. More than twice d. Not regular

3. Have you seen the advertisement which you like most?
a. Yes b. No
4. Through which media you have seen it?
a. TV
c. Magazine

b. Newspapers
d. Others

5. Do you think advertisement is necessary for the sale of cold drinks?

a. Necessary

b. Very Necessary

c. Not Necessary

d. Cant say

6. Do you think that advertisement has forced you to consume product more?
a. Yes

b. No

7. Which reason you find for the difference of the advertisement effectiveness?
a. Education

b. Likings

c. Standard of living d. Level of development

8. Is the study of effectiveness would contribute in improvement in current advertisement?
78

a. Yes

b. No

9.What do you think the use of study of effectiveness is for whom?

a. For company

b. For employees

c. For customers

d. None of the above

10. How did you find the taste of Pepsi jeera?

a.Very good

b. Satisfactory

b .Poor

d.Very poor

11.According to you what is your level of satisfaction with Pepsi and Pepsi jeera?
a. Highly Satisfied

b. Satisfied

c. Neither satisfied nor dissatisfied d. Highly dissatisfied

12. Is the study of Effectiveness would contribute in improvement of present advertisement?
a. Yes

b. No

c. Not Necessary d. Cant Say

13.The Expenditure incurred on the advertisement of cold drink is such effective that it adds
to profits?
a. Yes
c. Cant say

b. No
d. Not Necessary

14. Which reason you find for the difference of advertisement effectiveness?
a. Education

b. Likings

c. Standard of Living d. Level of Development

79

15. Do you think that advertisement has forced to consume more products?
a. Yes

b. No

16. Why do you like the advertisements?

a. Because it has film stars

b Because of Good music

c. Its theme and making is appealable.

d. Any other reason.

17.Which flavor of the cold drink you like the most?

a. Cola

b. Jeera

c. Lemon

d. Others

18. Do you think pepsi jeera is good for health?

a. Yes

b. No

19. Do you think consuming of carbonated drinks for children below the age of 8 is harmful?
a. yes

b. no

20. Do you think both youth and senior citizens prefer to consume cold drinks?
a. Yes

b. No

c. Not necessary d. Cant say

80