Académique Documents
Professionnel Documents
Culture Documents
PUNEET SINGH
MBA 4th SEM
ACKNOWLEDGEMENT
Also I would like to express my inner feeling for all the people for co-
operating and helping me throughout the project. Last but not the least, I am
thankful to my parents and friends who have provided me with their constant
support throughout this project.
PUNEET SINGH
CHAPTER NO 1 1.INTRODUCTION 2
1.1INTRODUCTION 3
2.2.EXAMPLES OF COUNTER 18
ADS
2.3.ETHICAL CONTENT 20
2.4.ARTICLE TO SUPPORT 24
35
CHAPTER NO 3 3.BRAND CAMPARISION
36
3.1 COKE VS PEPESI
42
3.2.PIZZA HUT VS DOMINOS
3.3 NIKE VS ADIDAS 48
4.DATA ANALYSIS 50
CHAPTER NO 4
4.1 INTRODUCTION 50
5.1 FINDINGS 55
5.2 CONCLUSION 56
APPENDIX
BIBLIOGRAPHY
INTRODUCTION
“What’s in a name? That which we call a rose by any other word would
smell as sweet”, said Shakespeare.
What explains McDonald’s, Apple I Pod, Toyota and HarleyDavidson, etc.,
to be among the top 100 brands? Is ittheir sales revenue? No. Is it their years
of existence? No.Is it their global presence? No. If all of these are not
indicative of the companies’ entitlement to feature in theglobal brands’ list,
what then explains their inclusion? The answer is Brands. Because these
companies are able to create, nurture, and sustain powerful brands and all
the above stated inferences are consequences of these untiring efforts. The
next question is what’s a brand? A brand is a collection of perception in the
minds of the consumers and resides in the minds of the consumers and
resides in their minds. It propels them with a very high perceived association
value. A brand is not a by product, an ad campaign, a logo, a spokesperson
or a slogan. It is a differentiating identity and the most important reason for
the employees, investors and customers to associate with the company. It is
the firm’s most important asset in the long term. It is also a bond between
the customers and the company. A brand assures reliability and quality.
Brand owners have a powerful incentive to ensure that each pie is as good as
the previous one because that would persuade people to
come back for more.
Brands are perceptions. The Volvo brand stands for “safety”. The Mercedes
Benz brand is associated with “prestige”. “BMW means “the driving”. Can
these perceptions be influenced or managed? That is precisely what is
executed through branding. Branding is creating a
corporate brand identity imprinted on the minds of consumers, and this
requires brand positioning and brand management.
Brands are the tools with which companies seek to build and retain customer
loyalty and branding often requires huge investment on advertising and a
good marketing strategy. A strong brand can raise prices as well as barriers
to new entrants.
In the age of increasing commoditization and at the juncture when the so-
called “distinctiveness” is getting blurred due to increasing competition, the
relevance of brands is questioned.
An interesting phenomenon is evolving on the horizon pertaining to the role
of brands. As the world economies are integrated, the income levels are also
on the rise. Increased income levels are creating brand conscious customers.
And these customers pay more for a brand because it seems to represent a
way of life. They are affording an aspirational lifestyle as manifested by a
brand. The companies that can match the aura of their brands with the aroma
of new lifestyle stand to gain in today’s world.
now If the reason that I think of, is true behind this campaign.
.
There's a huge buzz in the blogging arena about Rin taking on Tide directly
in its new campaign. Rather than questioning HUL's ideology behind the
campaign, people started crying foul over the campaign and expressing their
concerns that it will be off the screens very soon... How does taking off the
screens make things better for Tide??
.
Already the damage is done to an extent although not to the extent HUL is
expecting it to. As far as the legal or the ASCI rules are concerned HUL has
played it safe with it's small disclaimers and notes below the ad as well as at
the end of ad.. "As tested by Independent Lab" and "Issued in the interest of
Rin Users". But still what's the logic behind such a campaign?? Definitely
not the normal Rin Vs Tide attack.. definitely HUL tried to convey
something which is not getting on to the customer's mind as easily as they
expected it to get on...
It's a well known fact that HUL and P&G have been trying to gain market
share through price cuts although this has reduced their revenues for FY09-
10. Recently in the month of January2010 P&G introduced an extension on
it's brand line "TIDE" with the name of "TIDE NATURALS". This at a
lower price. And around the end of January itself, HUL has brought down
the prices of their detergents RIN, Surf Excel by 10-30%.
.
Remind you!! P&G haven't cut the price of other versions of Tide to the
price levels of Tide Naturals. But, In reality what the customers have started
seeing in the supermarkets is Tide available at such a low price. Most of
them never realized that it's Tide Naturals and not all versions of Tide are
available at same price. As per relativity, If prices of actual RIN and Tide
versions have come down by same extent the volume levels will not show
much of a movement from RIN to Tide or Tide to RIN. But, there came a
new entrant called "Tide Naturals" which started pulling the volumes of
RIN. But, what's customer thinking while picking up a packet of Tide
Naturals is..
.
"I am getting Tide at a very low price" which is what the lady in the ad says,
"Tide hain, Khushbhu bhi aur safedi bhi".. She has taken a Tide Naturals
pack and she still feels She has taken Tide.. which is not true and who has
mislead this customer?? P&G or HUL?? HUL is just trying to educate the
customer by saying indirectly in a respectable manner, "You can compare
Tide with RIN my dear.. But not Tide Naturals with RIN." It is not saying
RIN is better than Tide w.r.t the cost but, it is trying to say it is definitely
better than Tide Naturals w.r.t the cost.
.
And HUL is also to be blamed one fourth for this confusion and the Ad
agency that did
i
Ad for them for the rest three fourth. The concept of direct attack is
wonderful and awesome but, I think the customer isn't able to get this right
message from the Ad as expected by HUL and the Ad agency.. The
customer feels RIN says, "RIN is better than Tide".. I think it would have
been better if the Lady might have been shown in the ad picking up Tide
Naturals instead of Tide original version and RIN.. This might have
emphasised the effect of Tide Naturals in a better way..
.
But still, this campaign is definitely a tough one to crack for P&G and their
agency. Either HUL needs to bring more sense to this ad asap or else, if
P&G comes with a campaign in reply (though it will be very difficult to
counter the argument) HUL will definitely suffer huge volumes...
I had to view the ad nearly 10times with my eyes glued to TV at 1cm
distance to get the blurred disclaimer that appears in the bottom twice during
the TVC that says... " Schematic representation of superior whiteness is
based on Whiteness Index test of Rin Vs Tide Naturals as tested by
Independent lab"
Is this Ethical?
An ethical problem in the contemporary business environment is
deceptive advertising, which can mislead consumers and injure competitors.
Though illegal in its most blatant forms, deceptive advertising can occur in
subtle ways that are difficult to establish as outright deception
such as puffery, incomplete comparisons and implied superiority claims.
While the problem is widely recognized, research about what makes
consumers susceptible to deceptive advertising and how to prevent their
being deceived by misleading messages is rare. Researchers have called for
more conceptual and empirical research to help consumers recognize and
discount deceptive messages
This article reports the results of two studies that explore the factors that
moderate consumer susceptibility to deceptive advertising and strategies that
help prevent their being deceived by false or misleading claims. Variables
examined include the copy style of an ad, the consumer's frame of reference
at the time of message exposure, the consumer's store of product-relevant
information in memory and the ability of products to influence the
consumer's frame of reference.
Processing Influences
Consumers' feelings, beliefs, preferences and behavior are shaped by the
amount and style of processing used when they are exposed to an advertising
message [6]. Processing style determines the extent to which consumers
recognize and reject misleading ad claims by affecting their levels of
attention and skepticism.
Three variables shape the style of processing that consumers engage in when
processing advertisements. Informational priming provides consumers with
objective factual information to counter misleading ads in a format
comparable to the tables used in Consumer Reports. Framing creates a
cognitive or an affective frame of reference for processing the message. The
copy style of an ad (attribute or emotion oriented) also affects processing
style.
First Experiment
The effects of these variables were tested in an experiment involving a
deceptive ad for an ice-cream bar. Details of the experimental design and
statistical results are reported in Lord and Kim
Informational Priming. Providing consumers with relevant objective facts
before message exposure was expected to reduce deception. Informational
priming creates accurate knowledge. By recalling this knowledge from
memory and comparing it with deceptive information at the time of exposure
to a misleading ad, consumers should be better able to recognize the falsity
of a misleading claim.
Informational priming can also affect deception susceptibility by altering
consumers' processing style. Primed by specific information about the
relevance of a set of attributes to a product's quality or ability to deliver
satisfaction, a consumer may be more likely to notice and evaluate attribute-
relevant claims. Such an attribute-oriented processing style may render
consumers less susceptible to deception.
Results of the first experiment confirmed the ability of information priming
to lessen consumer deception. Subjects provided with substantiated
information on relevant attributes of the test product generated more counter
arguments and weaker beliefs, and attached less credibility to misleading ad
claims than those who did not receive the priming manipulation.
Cognitive and Affective Framing. We expected processing style to vary as a
function of the cognitive and affective motivations that prevailed at the time
of exposure to an advertising message. A consumer whose processing style
is cognitive would use the brain's left hemisphere to think about product
attributes and features, while symbolic quality and image dimensions of the
product would be processed at a lower level in the right brain. The opposite
pattern would prevail for a consumer with an affective frame of reference.
We expected processing style to vary as a function of the cognitive and
affective motivations that prevailed at the time of exposure to an advertising
message. A consumer whose processing style is cognitive would likely
engage the left hemisphere of the brain in elaborating upon product
attributes and features, while symbolic quality and image dimensions of the
product would be processed at a lower level in the right brain. In other
words, anything that induces consumers to adopt a cognitive/affective frame
of reference at the time of ad exposure should lead to a cognitive/affective
approach to processing the message.
Because advertising deception typically arises from attribute- or
performance-oriented misinformation, a possible outcome would be a direct
effect of framing, such that a cognitive frame of reference would facilitate
detection of deceptive intent more readily than affective framing. Another
possibility is that framing and copy orientation may interact to affect a
consumer's style of processing.
Attribute and Emotion Orientation of Ad Copy. Advertisers use a wide
variety of creative approaches in appealing to target markets, some of which
may be characterized as more attribute oriented, e.g., technical expertise and
scientific evidence, and others which focus more on an image or emotions,
e.g., fantasy, mood, humor, musical and lifestyle appeals. A possible result
of copy orientation would be a direct effect, with attribute-oriented copy
facilitating a cognitive processing style plus the ability to detect deception,
and emotion-oriented copy obscuring deceptive intent.
However, framing and copy orientation were found to interact. Specifically,
the consumer's frame of reference at the time of exposure created an
expectation of the ad's copy orientation. A cognitive/affective frame of
reference led consumers to expect an attribute/emotion-oriented ad. The
ability to detect deception depends upon the consumer's viewing the
message with some willingness to question its veracity - a critical or
skeptical approach. Expectancy disconfirmation (encountering a message
that differs from its expected orientation) induced some questioning or
skepticism, as consumers dealt with the apparent incongruity between
expectation and experience.
A more critical or skeptical approach to the message led to a greater
likelihood of detecting deception. We found less susceptibility to deception
when framing and copy orientations were inconsistent (cognitive frame and
emotion-oriented copy, and affective frame and attribute-oriented copy) than
when they were consistent (cognitive frame and attribute-oriented copy, and
affective frame and emotion-oriented copy).
We hypothesized that informational priming would work best as a strategy
for countering deceptive ads when affective processing style was preventing
the detection of deception, i.e., affective framing or emotional copy
orientation. Findings supported the hypothesis that informational priming
increased negative effects and attribute-oriented thoughts and lowered
purchase intention more effectively with emotion-oriented copy than
attribute-oriented copy.
Second Experiment
Product Type. Missing from the first experiment was a consideration of the
possibility that the effects observed may be limited only to the type of
products examined in that study. It is possible that a fourth factor, product
type, may be as relevant to the consumer's style of processing when exposed
to an advertisement as the three variables examined in an earlier study. The
ice-cream bar used in the first study is a nondurable good potentially valued
more for its experiential properties than its attribute-oriented features or
performance characteristics. The purpose of the second experiment was to
expand the understanding of the effectiveness of the strategies designed to
counter advertising deception by investigating their effectiveness for
cognitively involving consumer durable goods.
Hypotheses. A product-classification approach that accommodates style-of-
processing issues relevant to detecting and resisting advertising deception is
the FCB Grid advanced by Vaughn [9,10]. Here products are placed in the
cells of a 2x2 matrix based of high versus low involvement and "think"
(utilitarian) versus "feel" motivation (ego gratification, sensory gratification
or sensory pleasure). based on the independence of cognitive and affective
involvement and the inability of the FCB Grid to accommodate all
potentially relevant combinations of the two involvement types, we used a
Cognitive-Affective Involvement Grid where the cells are defined by high or
low cognitive involvement and high or low affective involvement [3,4,8].
The ice-cream bar used in our earlier study would be categorized as a
nondurable convenience good for which affective involvement or "feel"
motivation exceeds cognitive involvement or "think" motivation. As such, it
may be conducive to an affective rather than a cognitive style of processing.
A more cognitively involving durable good may invite a stronger cognitive
orientation to the processing of an ad. Any such naturally occurring
processing propensity based on product type would occur independently of
and prior to information priming, externally induced framing and copy-
strategy effects, in essence providing a starting frame of reference. Different
starting frames could lead to differences in magnitude and/or nature of
priming, framing and copy-strategy effects.
Informational priming, cognitive framing and attribute-oriented copy may
still enhance a consumer's ability to detect attempts at deception by
motivating increased processing. However, their propensity to alter the style
of processing from affective to cognitive would be less relevant since the
utilitarian motivation implicit in the product would ensure cognitive
processing. Thus, unlike the interactions of priming, framing and copy style
observed in the first experiment, this study hypothesizes main effects for
these factors when consumers are exposed to an ad for a cognitively
involving consumer durable good. Consumers are likely to perceive
deceptive ad claims as less credible, feel more negative effect toward the
advertised product, have a more negative attitude toward both the ad and the
product, and indicate a lower likelihood of purchasing the product when
priming is present than when it is absent, when the task is cognitively rather
than affectively framed and when ad copy is attribute rather than
emotionally oriented.
Research Design, A test of the above hypotheses requires consumer
responses to deceptive advertising messages under the specified conditions
of priming, framing and copy orientation. A full-factorial design is used in
this study - two informational primings (relevant/irrelevant) by two framings
(cognitive/affective) by two copy orientations (attribute/emotional).
Subjects in the relevant informational priming condition were exposed to
comparative product information for the test product, a fictitious camera
carrying the brand name "Samtar 200," and three existing cameras, Fuji DL-
400, Nikon Tele-Touch and Vivitar TEC 155. Three attributes addressed in
misleading fashion in the ad were autofocus, low-light ability and distortion.
The ratings for the three "real" cameras came from Consumer Reports
Buying Guide, and those for the Samtar 200 were set by the researchers at
levels designed to establish the falsity of the test ad's claims that Samtar's
was superior on the three attributes. Samtar was shown to score worse than
all three competitors on low-light ability and to have mid-range performance
on autofocus: better than one competitor, the same as another and worse than
the third. Distortion performance was shown to be equal across the four
brands. This information was presented in the initial instructions to subjects
as coming from an independent product-testing organization. Subjects in the
irrelevant-priming condition received an equivalent amount of comparative
information for a product irrelevant to the test ad that they were to read, i.e.,
the informational sheet on ice-cream products for the earlier study.
The framing manipulation was embedded in instructions provided to
subjects prior to exposure to the misleading advertisement. Those in the
cognitive flaming condition were informed that "there are substantial
differences in quality or functional performance among major leading brands
in the product categories for which information is provided" and "attending
to any information provided about the products' benefits and effectiveness
should help you to make well-informed evaluations." Subjects assigned to
the affective framing condition were told that "a brand's image causes
people's preferences to vary in these product categories, and leading brands
tend to have their own unique image and personality." They were advised
that "considering whether the product appeals to you emotionally and would
enhance your personal image should help you make well informed
evaluations."
Two versions of the test ad allowed the manipulation of copy orientation.
Both versions contained the same deceptive information: best autofocus
capability, best low-light ability and least distortion. However, the attribute-
oriented version highlighted the benefits of the specific attributes in
photographing a difficult-to-shoot stained-glass window from Notre Dame
Cathedral. The emotional ad, in contrast, embeds the misinformation in a
humor/warmth appeal in which the photographer captures on film the stars
in her boyfriend's eyes and the cobwebs in his head.
Sample and Procedure. Students from an introductory marketing course at a
northeastern public university comprised the sample for this study. The
researcher randomly assigned subjects to conditions by randomly
distributing individual folders containing the relevant manipulations and test
ads to subjects at the beginning of the sessions. Subjects were seated at
sufficient distances to preclude their exposure to stimuli from others' folders.
Upon opening their folder, subjects found an instruction sheet informing
them that they would be exposed to information on products in a variety of
categories, including ads developed by agencies for specific brands,
summaries of objective information obtained from an independent, product-
testing organization or a combination of the two. Also included on the
information sheet were framing manipulation, either cognitive or affective,
and a statement indicating that subjects would be asked to evaluate products
in the relevant categories after reading the contents of the folder. The folder
also contained the informational prime (either relevant or irrelevant), the test
ad (either attribute or emotionally oriented) and filler material (ad and
product-testing information for an unrelated product). The informational
prime in its appropriate condition, relevant or irrelevant, always preceded
the test ad.
Subjects were allowed five minutes to read the contents of the folder. Then
the folders were collected, and a questionnaire was distributed. Subjects
responded to the questionnaire at their own pace, turning them into the
administrator and leaving the room upon completion. They were debriefed in
their classes after 'all experimental sessions were over.
Statistical Measures. The questionnaire included one item used as a check to
assess the extent to which the two versions of the test ad effectively
exemplified attribute- and emotion-oriented approaches. Subjects indicated
their perception of the ad's primary purpose using a seven-point scale from 1
= brand attribute information to 7 = brand image or emotion. No direct
checks are included for the priming and framing manipulations. None is
needed for priming since it involves only the obvious relevance of objective
factual information, and past research has cast doubt on the ability of
subjects to accurately analyze their processing level or orientation via post
hoc, self-report measures [5,7,12].
The same approach used by Ellen and Bone for an imagery measurement
was used to provide evidence of consumer processing style, based on the
assumption that an affective processing style leads consumers to generate
vivid images with greater ease and frequency than a cognitive style which
induces them to focus on individual attributes in piecemeal fashion [2]. Each
of their subscales is used here - imagery quantity (three items), ease (three
items) and vividness (eleven items). The image-generation activity captured
by these scales is potentially affected by each of the experiment's
manipulations and by the nature of the test product, but it can be especially
informative as an indirect check of the framing manipulation. Successful
affective framing may be expected to induce more image generation.
Several outcome variables were measured in the questionnaire to assess the
deceptive impact of the misleading claims in the various experimental
conditions. In an unaided-recall task, subjects wrote down everything they
could remember about the test ad. The number of deceptive attributes they
correctly listed served as an index of deceptive-attribute recall. Perceived
claim credibility was measured with four semantic-differential items:
persuasive/unpersuasive, uninformative/informative, weak/strong and
believable/unbelievable. The Positive and Negative Affect Scale by Watson,
Clark and Tellegen provided evidence of affective responses generated by
the stimuli, ten items measuring positive affect and ten for negative affect
[11].
To assess the level of belief in the deceptive claims, an index was formed by
calculating the sum of belief items for the three attributes, measured by
asking whether Fuji, Nikon, Samtar or Vivitar had the strongest performance
on the relevant attribute, and scored I if Samtar was named and 0 otherwise.
A higher score on this index indicates a higher level of deception as
evidenced by stronger belief in the deceptive product's dominance. Attitude
toward the ad and the brand were both assessed with three seven-point
semantic-differential items: good/bad, unpleasant/pleasant and
favorable/unfavorable. A single seven-point scale (very likely to very
unlikely) tapped purchase intention.
Empirical Results. Results are reported in nontechnical fashion. Statistical
details are available from the first author. All multiple-item scales were
found to be reliable. Subjects perceived a clear and significant difference in
the purpose and style of the two test ads, indicating that the copy orientation
was successfully manipulated.
The outcome predictions associated with the hypotheses are based on some
processing-style assumptions. Specifically, it was expected that relevant
informational priming, cognitive framing and exposure to the attribute-
oriented ad would induce a greater depth of cognitive processing than
irrelevant priming, affective framing and emotional ad exposure. It seems
plausible that the level of cognitive, attribute-oriented and piecemeal
processing could be inversely related to the extent of image generation
occurring when exposed to the message. Consistent with this expectation
and providing tentative evidence for the processing styles assumed as a basis
for the hypothesized outcomes in the various conditions, the image scales
indicated the generation of less imagery in the conditions thought to be
associated with cognitive processing. Therefore, the processing style
assumptions seem reasonable.
Tests of these predictions look at several specific indicators of the extent of
deception - recall of the deceptive attributes, perceived claim credibility,
negative affect, belief in the deceptive product's dominance, attitudes toward
the ad and brand, and purchase intention - rather than relying exclusively on
a single measure of deception per se.
Consistent with the prediction of an advantage of relevant informational
priming in reducing consumer deception was a supportive finding for the
relevant over the irrelevant-priming condition for almost all of the indicators
discussed above. Recall of the deceptive attributes and negative affects were
higher in the relevant-priming condition. Perceived claim credibility was
lower as were attitude toward the ad, brand attitude and purchase intention.
The advantages of cognitive framing are not as strong and consistent as
those for relevant informational priming, but are still significant for the
deception outcomes. The level of post-exposure negative effect was greater
among cognitively than affectively framed subjects. Deception was lower
for cognitive- than for affective-framed consumers. A significant interaction
reveals, however, that the advantage of cognitive framing occurs for
emotional, image-based appeals, not for attribute-oriented ads. There were
no significant results associated with the framing factor for the other
outcome variables. From these results, it appears that cognitive framing
offers some protection against deception by way of increased negative affect
and decreased belief in deceptive ad claims, with the latter advantage limited
to emotionally oriented ads.
Negative affect was higher in the attribute than in the emotional condition.
However, attitude toward the emotional ad was actually more positive than
attitude toward the attribute-oriented message. This did not lead to a
significant advantage for the emotional ad in inducing favorable brand
attitude or purchase intention; mean differences between the two types of
ads for those and other outcome variables were not significant.
This experiment set out to investigate the roles of informational priming,
cognitive or affective framing, and copy orientation in moderating consumer
susceptibility to deception when confronted with misleading ads for
cognitively involving durable goods. Consumers derived strong and
consistent benefit from exposure to relevant objective factual information
prior to confronting the erroneous ad claims. The influence of such
information in inoculating consumers against deception was found to span
the sequence of responses from initial processing style to such outcomes as
recall, perceived credibility, negative affect, ad and brand attitude and
purchase intention. Cognitive framing aided consumers by undermining
belief in deceptive claims reaching them through emotional ads and by
inducing appropriate affective responses. Attribute-oriented copy
undermined deception by inducing more negative effects than emotional
appeals. The results offer strong support for the hypothesized advantage of
informational priming and partial support for the expected benefits of
cognitive framing and attribute-oriented copy in battling consumer
deception.
Conclusion
Besides demonstrating the effectiveness of three variables in moderating
consumer deception in general, this research contributes to the literature by
clarifying differences in the way these factors operate for varying types of
products. Though one interaction was significant in the second experiment,
the pattern of results was primarily one of main effects of the three
independent variables, rooted in their ability to induce a cognitive-
processing style. This is clearly different from the more complex pattern of
interactions observed in the first experiment in a product category less prone
to a cognitive-processing orientation. The implication is that those
concerned about deception, in the interest of protecting consumers from
injury or protecting their firm or products from competitive misinformation,
can look to the strategies studied here, especially informational priming, as a
means of minimizing its damage. However, they should do so with an eye to
the type of product or service.
Products or services valued for their experiential properties and appealing to
emotional or hedonic motivations naturally induce an emotional processing
style. Under such conditions, any effort to counter deception may need to
alter that processing style in order to facilitate the consumer's ability to
benefit from informational priming, and to offer an array of stimuli
sufficiently different from expectations to create a skeptical approach to
information processing. Some form of cognitive-framing explanation or
instruction to consumers may be particularly important in that environment.
But products or services valued for more utilitarian reasons are more likely
to induce a cognitive-processing style. Under such circumstances, the
presence of misinformation continues to necessitate the provision of
corrective information through such strategies as informational priming, but
the need for processing-style adjustment strategies appears lower. Thus,
while cognitive framing and attribute-oriented copy continued to exert some
positive influence in this study, the dominant factor for lessening deception
was informational priming, and its deception,countering ability was found to
be less dependent on the other two variables than in our prior research.
Replication efforts are needed to confirm our earlier result for "feel"
products other than the ice-cream bar we examined and the present result for
"think" products other than cameras. Such research should also investigate
the as-yet-unexamined quadrants of the FCB or Cognitive/Affective
Involvement Grid, perhaps by way of an expanded experimental design
which treats product type as a fourth experimental factor. It also falls to
future research to ascertain whether results observed in these experiments
apply to deception arising from more subtle forms of deception. Issues of
timing and sequence of deceptive ad content and informational priming
warrant future investigation. Future research should be conducted using a
broader and more representative sample. Finally, much remains to be done
to identify and investigate a more comprehensive array of moderators of
consumer susceptibility to deception, e.g., individual-difference and context
variables, and strategies capable of overcoming it
WHY COUNTER ADVERTISMENT?
The competition is also growing rapidly. Because of this reason they have to
compete with their competitors constantly. In some industries the new
companies may not come in to existence but the competition between the
existing companies is growing more and more. The soft drink industry is
mainly suffering with this particular problem.
The Companies have to continuously compete with their competitors to get
good market share and good profits. To face their competitors they have to
know their position and the competitor’s position in the market. For this, the
Company’s will compare itself with their competitor that means they will do
the comparative analysis
in all aspects.
“Item by Item comparison of two or more comparable alternatives,
processes, products, qualifications, set of data and systems etc. in accounting
for, for example changes in a financial statement’s items over several
accounting period may be presented together to detect the emerging trends in
the firm’s operations and results”.
Coke vs pepsi
NEED FOR THE STUDY
Coke Pepsi
The main dark cola drink of the Pepsi version of dark cola which is
company which started the rivalry the major primary competitor to
between these companies. Coke.
P o w er a d e i s a s p o r t s d r i n k b y Gatorade is a non-carbonated
The Coca-Cola Company and s p o r t s d r i n k m ar k e t e d b y
currently number two in the Quaker Oats Company, a
sports drink market d i v i s i o n of P e p s i C o .
worldwide. Or i g i n a l l y m a d e f o r a t h l e t e s ,
i t i s n o w of t e n c o n s u m e d a s a
snack beverage.
S p r i t e i s a c l e a r , l e m o n- l i m e 7 Up is a brand of a lemon-lime
flavored, non-caffeinated soft flavored soft drink.
drink, produced by the Coca-
Cola Company. It was
introduced to the United
States in 1961.
Tropicana Products is an
Minute Maid is a product line American company based in
of beverages, usually B r a d e n t o n , F l or i d a , U S A ,
a s s o c i a t e d w i t h o r a n g e j ui c e , w h i c h i s o n e of t h e w o r l d ' s
but now extends to soft l ar g e s t p r o d u c e r s a n d
drinks of many kinds. The m a r k e t e r s o f or a n g e j u i c e . I t
Minute Maid company is now has been owned by PepsiCo,
owned by Coca-Cola, and is Inc. since 1998.
the world's largest marketer
of fruit juices and drinks. It
is headquartered in Houston,
Texas.
Sprite Ice was the first flavor Pepsi Blue is a soft drink made by
extension for The Coca-Cola PepsiCo and launched in mid-2002.
Company's Sprite brand soft
drink.
C o c a - C o l a B l a k i s a c o f f e e- Pepsi Cappuccino is a
flavoured soft drink cappuccino-flavored
introduced by Coca-Cola in carbonated soft drink
2006. produced by Pepsico.
Maaza is a Coca-Cola fruit Slice is a line of fruit-
drink brand marketed in India flavored soft drinks
and Bangladesh. m a n uf a c t u r e d b y P e p s i C o a n d
introduced in 1984.
Price
In economics and business, the price is the assigned
numerical monetary value of a good, service or asset.
P r i c e i s a l s o c e n t r a l t o m a r k e t i n g w h e r e i t i s o n e of t h e
four variables in the marketing mix that business people use
to develop a marketing plan.
P r i c i n g i s a b i g p a r t of t h e m ar k e t i n g m i x . C h o o s i n g t h e
r i g h t p r i c e a n d t h e r i g h t pr i c i n g s t r a t e g y i s c r u c i a l t o t h e
marketing process.
T h e p r i c e o f t h e p r o d u c t i s n ot s o m e t h i n g t h a t i s f i x e d . O n
t h e o t h e r h a n d t h e p r i c e o f t h e pr o d u c t d e p e n d s o n m a n y
o t h e r f a c t o r s . S o m e t i m e s t h e pr i c e o f t h e pr o d u c t h a s g o t
nothing to do with the actual product itself. The price may
act as a way to attract target customers.
The price of the product is decided keeping many things
i n m i n d . T h e s e t h i n g s i n c l u d e f a c t or s l i k e c o s t i n c u r r e d o n
t h e p r o d u c t , t a r g e t m a r k e t , c o m p e t i t or s , c o n s u m e r b u y i n g
capacity etc.
Coke - Price
C o k e w a s a c o m p a n y r u l i n g t h e m ar k e t s b e f or e P e p s i
entered. Earlier the price of coke was cost based i.e. it was
decided on the cost which was spent on making the product
plus the profit and other expenses.
E v e n t o d a y m o s t p r i c e s of C o k e a r e d e c i d e d o n t h e b a s i s
of the competition in the market.
Pepsi – Price
P e p s i a g a i n d e c i d e s i t pr i c e o n t h e b a s i s of c o m p e t i t i o n .
The best think about the company Pepsi is that it is very
f l e x i b l e a n d i t c a n c o m e d o w n w i t h t h e pr i c e v e r y q u i c k l y .
T h e c o m p a n y i s r e n o w n e d t o br i n g t h e p r i c e d o w n e v e n u p t o
half if needed.
But this risk taking attitude has also earned Pepsi losses.
Though lowering the price would attract the customers but it
would not help them cover up the cost incurred in production
hence causing them losses.
This was the situation earlier but now Pepsi is a full-
fledged and growing company. It has covered all its losses
a n d i s n o w g r o w i n g a t a r a pi d r a t e .
Place
Place is a t e r m t h a t h a s a v a r i e t y o f m e a n i n g s i n a d i c t i o n ar y
sense, but which is principally used in a geographic sense as
a noun to denote location, though in a sense of a location
identified w i t h t h a t w h i c h i s l o c a t e d t h er e .
I n m a r k e t i n g , p l a c e r e f e r s t o o n e of t h e 4 P ' s , d e f i n e d a s " t h e
market place". It can mean a geographic location, an
industry, a group of people (a segment) to whom a company
wants to sell its products or services, such as young
p r o f e s s i o n a l w o m e n ( e . g . f or s e l l i n g c o s m e t i c s ) o r m i d d l e -
a g e d f a m i l y m e n ( e . g . f or s e l l i n g f a m i l y c a r s ) .
Coke - Place
Coke is a multinational company and it has its market
around the entire world. This can be said just by the first
page on its site which asks people to select the place of their
choice.
Pepsi – Place
Pepsi again has spread worldwide. Pepsi when entering a
n e w m a r k e t d o e s n o t g o i n a l o n e b u t i t l o o k s f or p a r t n e r s a n d
m e r g e r s . T i l l n o w P e p s i h a s c o l l a b or a t e d w i t h c o m p a n i e s
like Quaker Oats, Frito-lays, Lipton, Starbucks, etc.
Both the companies Pepsi and coke are famous for their
promotions. The rivalry was first started when Pepsi started
with its blind taste tests known as the Pepsi Challenge. The
challenge is designed to be a direct response to critics who
a l l e g e t h a t C o c a - C o l a a n d P e p s i - C o l a ar e i d e n t i c a l dr i n k s ,
with no meaningful differences. The challenge takes the
f o r m o f a t a s t e t e s t . A t m a l l s , s h o p p i n g c e n t e r s a n d o t h er
public locations, a Pepsi representative sets up a table with
two blank cups, one containing Pepsi and one with Coke.
Shoppers are encouraged to taste both colas, and then select
w h i c h d r i n k t h e y p r e f e r . T h e n t h e r e pr e s e n t a t i v e r e v e a l s t h e
t w o b o t t l e s s o t h e t a s t e r c a n s e e w h e t h e r t h e y pr e f e r r e d C o k e
or Pepsi. If Pepsi is revealed, the shopper is given a small
p r i z e . T h e i m p l i c a t i o n i s t h a t P e p s i t a s t e s b e t t er t h a n C o k e ,
and thus consumers should purchase Pepsi.
I n b l i n d t a s t e t e s t s , m o r e c o n s u m e r s pr e f e r t h e t a s t e of
Pepsi to that of Coca-Cola. Because Coke was the historical
l e a d e r , m o r e p e o p l e e x p e c t e d t h a t t h e y ' d p r ef e r a n d s e l e c t
Coke. Their surprise at picking Pepsi in the blind taste test
(products were served in unmarked cups) helped change their
m i n d s a b o u t w h i c h p r o d u c t t h e y p r ef e r . C a p t u r i n g t h i s o n
film, Pepsi turned this into a memorable TV campaign that
lasted many years.
The main reason behind the success of the multinational chains is their
expertise in product development, sourcing practices, quality standards,
service levels and standardized operating procedures in their restaurants, a
strength that they have developed over years of experience around the world.
The home grown chains have in the past few years of competition with the
mnc’s, learnt a few things but there is still a lot of scope for improvement
• Pizza corner
• Dominos
• Mcdonald’s
• Barista
• Café coffee day
• Subway
• Papa John’
IN WHAT ASPECT THEY DIFFERENCIATE EACH
OTHER?
Pizza Hut can produce, but can it deliver? Domino's Pizza can deliver, but is
what it delivers any good?
Those are the two different questions each of the two pizza chains believe
they must address in their marketing and advertising campaigns for home-
delivered pizza, one of the fastest-growing segments of the restaurant
industry.
The Domino's gang is confident that they have established their identify as
the leaders in fast home-delivered pizza--in 30 minutes time, guaranteed.
But their research indicated that they needed to tell consumers more about
the quality of their pizza.
But some armchair observers in the ad world say they do not understand the
Noid or his message. They think he is beside the point.
Pizza Hut says it has been making quality pizzas in its restaurants for 28
years. Their pizza has tremendous brand and product awareness, but no
"service awareness," says Bill McDonald, vice president of marketing for
Pizza Hut-Deliverty, a new and separate division of the chain.
"Our advertising strategy is to make consumers aware that Pizza Hut is fully
committed to delivery, that this is not a sideline business," McDonald said.
Although Pizza Hut has a long way to go in delivery before it reaches the
market penetration Domino's has achieved, McDonald said he believes his
job for Pizza Hut is an easier one than than that of his counterparts over at
Domino's. "Domino's is only Domino's. Pizza Hut is Pizza Hut. Domino's
has to market an entire company. I have to market delivery."
This was followed by Pizza Hut's first campaign on television in July 2001,
which said, ‘Good times start with great pizzas.'The ad was aired during
all the important programs on Star Plus, Sony, Sony Max, Star Movies,
HBO, AXN, andMTV. Pizza Hut planned to spend between Rs.70-75
million on the ad campaign in 2001. Said Pankaj Batra, “The first ad
campaign on TV defines Pizza Hut as a brand, and what it offers to its
existing and potential customers. Once the awareness of this message is
high, we will focus on other facets of the brand and its offerings.”
NIKE VS ADIDAS
Due to the large scale of both Nike and Adidas, these firms are able to
control their costs to retain performance advantage over emerging
competitors in the industry. Their web sites are more sophisticated and
enticing to browse. The capital injection into web site development is high
and must be updated frequently with new promotions and added features to
attract online shoppers. Selling footwear online is highly competitive;
however, barriers to enter into this e-commerce industry are quite low. The
capital requirement for setting up an online shop is comparatively lower than
setting up a traditional bricks and mortar establishment. Therefore, the
online footwear industry is highly abundant with hundreds of online
merchants.
Consumer substitutes for athletic footwear products are low because there
are little alternatives to switch, some substitutes for athlete footwear could
be boots, sandals, dress shoes or bear feet. Consumers are not likely to
substitute due to the performance specification of the product. For instance,
a basketball player would not wear boots to play basketball. Therefore, there
are no real substitutes for athletic footwear.
There are a large number of buyers relative to the number of firms in this
industry. Therefore, companies like Nike and Adidas must continuously
market their product and differentiate their brands against competitors, in
order to increase sales and market share. The use of online tools has helped
to enhance the accessibility of users. For example, Nike's "nikeid.com" link
allows consumers to customize and design their own footwear by permitting
customers to specify the desired colours and the option to personalize the
footwear with their name.
There are many suppliers in this industry. There is very little differentiation
among the suppliers, which eliminates suppliers' bargaining power. Leather,
rubber, and cotton are commodities available abundantly in the market.
Companies such as Nike and Adidas have a definite advantage and power
over their suppliers. These suppliers become dependent on these firms for
survival. Moreover, Nike and Adidas have standardized their input
procedures pertaining to the materials used, their labor force, supplies,
services, and logistics. Firms are able to switch between suppliers quickly
and cheaply, due to the globalised networks of cheap labour.
Which brand is more hip hop
adidas or nike and why?
But for a proper scientific analysis — none of this matters — one must
remain objective in both the collection & assessment of data.
The data collection was done using convenience sampling in the form of
questionnaire & personal interview. We had used various secondary sources
for gathering data related to the research report. Analysis of data has been
done using quantitative methods such as Arithmetic mean. Those analysed
facts & findings are presented in different forms for ease of understanding
by use of pie charts, chronological order.
Our research report just does not concentrate on the findings but also
suggests corrective measures to be taken up to minimize the after effects of
the advertising world which will be always on the upsurge. The number of
children exposed now to the ad world will surely increase as newly found
segment will be heavily dosed for surviving in this competitive market. So
our report aims at taking precautionary steps in the government’s front,
ethical front of the advertisers and of course on the parental & children’s
front.
Data Collection
Primary data
A questionnaire was prepared for getting the view of parents and their kids
on the purchasing choices and eating habits of kids. It was mainly directed
towards what kind of impact does the advertising has on the impressionable
minds & how advertisement decides their buying and eating habit. The
survey had to be done at the point of purchase. So it was carried out in food
malls where the brands are sold & places like pizza hut & places like schools
where we can actually meet the parents. Another part of the survey was
conducted online by designing a questionnaire in a format so that it can be
easily answered on-line by the customer of different age groups.
Secondary Data
The secondary data are those which have already been collected by someone
else and which have already been passed through the statistical process. The
following sources of secondary data collection were used.
Sampling Technique
Convenience sampling is used in exploratory research where the researcher
is interested in getting an inexpensive approximation of the truth. As the
name implies, the sample is selected because they are convenient. This
nonprobability method is often used during preliminary research efforts to
get a gross estimate of the results, without incurring the cost or time required
to select a random sample.
DATA ANAYSIS
1 Coke vs pepsi
pepsi
coke
61%
Regardless of which soda you like better though, Pepsi seems the better
value than Coke right now. Coke is trading at a nearly 20 percent premium
to Pepsi based on 2002 P/Es even though the two companies' earnings
growth rates are nearly identical. (Pepsi's are actually a shade higher.)
And when you look at revenues, the gap is even more dramatic. Coke is
trading at 7 times estimated 2002 sales while Pepsi is trading at 3.5 times
2002 revenue estimates. Both companies are expected to post slight declines
in sales this year and an increase of about 4 percent in 2003. Due to this
disparity in valuation, Jeff Kanter, an analyst with Prudential Securities, says
he has a "buy' rating on Pepsi and "hold" on Coke. Prudential does not do
investment banking.
To be sure, Coke is still the market share leader in soft drinks. One of the
main reasons the stock has outperformed Pepsi this year was because it
reported a better than expected gain in unit volume in the first quarter. And
the company has taken steps to cement its carbonated beverage lead as well
gain ground in the bottled water market. (Coke and Pepsi both have their
own brands of water, Dasani and Aquafina, respectively.)
0.8
RE S TURA NT
0.6
HO M E
0.4
0.2
0
DO M INO S P IZZA HUT
RE S TURA NT 80% 85%
HO M E 20% 15%
120
100
80
P E RCE NTA G E
60 RE TA IL O UTLE T
B RA ND
40
20
0
1 2 3 4 5
50
40
30
20 PEPSI
COKE
10
0
D IL S H A D P R E E T V IV E K
AVERAGE
G A R D E N V IH A R V IH A R
P E P S I 52 45 42 46
COKE 44 35 50 43
45% pepsi
55% coke
nike nike
33% adidas
bata puma
5% k-swiss
reebok
woodland
4% new balance
skechers
skechers
5% woodland
bata
new balance
6% others
reebok adidas
6% 16%
puma
k-swiss 7%
0%
CUSTOMER SURVEY
12
10
A D IDA S
6
N IK E
4
0
E
E
Y
TY
RT
N
IC
YL
G
IT
TIO
IN
PR
AL
ILI
ST
MF
IS
B
VA
QU
RT
RA
CO
NO
VE
DU
IN
AD
FINDINGS
1.Brand play major role in the sale of a product.
4.People prefer to have branded pizza than ordinary pizza and they like
visiting the restaurant to have pizza.
7. As the T.V Ads are influencing the sales, the company should design the
new ads in an attractive way. The ads should be change frequently.
Thedifferent ads should be shown in different regions according to the
culture ofthat area.
CONCLUSION
The project was a great experience for me in order to study the marketing
aspects in the world. It was a great opportunity for me to do the project work
in the end of the course because till now we learned the theory regarding the
marketing and the marketing related concepts, but now we got the chance to
implement that theoretical knowledge to do the project and got the practical
experience in themarketing field. Through this study I learned a lot that how
to approach a customer or any other people and how to explain our view to
them.
Lot of valuable information regarding the company and also the retailers,
has been collected from the survey, which helped me clearly to understand
the real problems faced by the marketers to distribute and also make retailers
to sell the company’s products in the market. I understood how difficult to
do the marketing in the present scenario to get success in the marketing
field.
From the analysis of thedata collected from the retailers the investigator got
some important findings regarding the company and the industry. For those
findings some of the suggestions made to the company were really
applicable for the growth and benefit for the company in order to increase its
market share and to become the market leader in the respective industry,
because a large number of competitors craving for the same market. I got
appreciation for the suggestion to the Company.
References: Books
�
Marketing Management by Philip Kotler (11th edition)
Advertising by C.N. Sontakki
� References: Internet
http://mib.nic.in
http://indiantelevision.com
http://www.my3q.com
http://mofpi.nic.in
http://www.cseindia.org
www.economicstimes.com
www.livemint.com
www.yahoo.com
www.scribid.com
www.sharetermpapers.com
www.slideshare.net
Questionnaire
1.Name ………………………….. 2.Age(optional) ………………
3.Address (optional)
………………………………………………………………………………
………………………………………………………………………………
……………………
4. tel no.
5.Occupation
YES
NO