RESEARCH PAPER ON IMPACT OF ADVERTISEMENT ON BRAND PREFERENCES TOWARDS SOFTDRINKS .

SUBMITTED BY

BHANU PRATAP VERSHA SAHU MUKESH PATEL ITS MOHAN NAGAR GZB

Abstract
y It is well known fact that people in India do not just watch their

favorite sport , film or serial, many are watching to see the commercials. Regardless of how good the game was, there are usually a few ads that people talk about the next day.. In Indian scenario it is proved that advertisements from soft drink companies are most effective. As we know these days soft drink companies are advertising their product so much on televisions. In soft drink industry the cost of advertising is nearly 35 % of the total cost. For increasing the sale of their product they are using attractive taglines in their advertisements of their products which is again very costly. Therefore we took this as opportunity to study different aspects of Advertisements,and their impact on consumer perception etc.

Introduction
Soft drink: Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi and coca-cola dominating the market. The entire part of the drink is based on its artificial flavors and sweetening agents as no natural juice is used. Market: Cola products account for nearly 61-62% of the total soft drinks market.
y Two global majors Pepsi and Coke dominate the s drink market y NCAER survey says 91% of soft drink in the country is in the lower, lower

middle and upper middle class people. y The production as soft drinks has increased from 5670 million bottles in 199899 to 9783 million bottles in 2009-2010 industry source. y Growth market this year is expected to be 10-15% in value terms and 20-22% in volume terms.However, the market for carbonated drinks is stagnating and not growing as expected.

Advertising
DEFINITION OF ADVERTISING y The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning of the term is to give public notice or to announce publicly. y Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. What is Included in Advertising? i)The information in an advertisement should benefit the buyers. ii) It should suggest better solutions to their problems. iii) The content of the advertisement is within the control of the advertiser, not the medium. (iv) Advertising without persuasion is ineffective. (v) The function of advertising is to increase the profitable sales volume. That is, advertising expenses should not increase disproportionately.

Brand preference
y The degree to which consumers prefer one brand over

another. y Basic communications model for development of brand preference

Brand Preference choice criteria

There are six criteria choose brand preference.  Memorable: How easily particular brand are recalled?  Meaningful: To what extent particular brand prefer in corresponding Category? Does it suggest something about a product ingredient or the type of person who might use the brand?  Transferable: Can the brand element be used to introduce in new Product in the same or different categories?  Likeability: How aesthetically appealing do customer finds the brand Element? Is it inherently likeable visually, verbally and in other ways?  Adaptable: How adaptable and updatable is the brand  Protectable: How legally protectable is the brand element? How Comparatively protectable

RESEARCH OBJECTIVE
Main objective
 To study the impact of the Advertisements on the brand

preference of consumers.

Sub objective
 To study the consumer perception regarding the most effective

media for Advertisements.

 To study the impact of the punchline on the

consumer buying

behaviour.

Review Of Literature
Teffis (1985): In this article (Are Advertisements Waste) remarked that the advertisement is one of the least importance determents of purchase behaviors'.
 Politz (1990): He found that purpose of campaign most often is to built an impression

of product and service to generate sales, suggesting that campaign most only create awareness but also should be persuasive.


Brown and Rothschild (1993): Conducted a study whose primary objective was to investigate the degree in which consumer memory for brand is affected by increasing level of Advertising clutter. The findings suggest that at the current level of Advertising clutter on TV, it may be that neither recognition nor recall of brand is affected to any great by significant increase in advertising clutter. Raj (1982): Investigated the different advertisement effects on the purchase behavior of consumers of high loyalty increase brand and product purchase. when advertisement for that brand increases, little switching occurs from competitive brands into the advertised brands..

 Eva-Lena (2006)

International Advertising and International sponsorship together these factors influence the way in which a brand is perceived and consequently influence consumers preferences  Srikant Kapoor (Advertising revisited-The Good, Bad, & Ugly) The difference in presentation of a Good, Bad & Ugly advertisement is mainly owing to the sponsor's view point & artists creative choices. y Winters, Patricia. Advertising Age. Chicago , 1992 have found that brand preferences are measurable using functional magnetic resonance imaging (fMRI) brain scans. Two conditions were examined: (1) anonymous delivery of Coke and Pepsi and (2) brand-cued delivery of Coke and Pepsi. For the anonymous task, we report a consistent neural response in the ventromedial prefrontal cortex that correlated with subjects' behavioral preferences for these beverages

Research Methodology
RESEARCH DESIGN  Descriptive research design. SAMPLING TECHNIQUE USED :  Convenience Sampling. Geographical Area:  NCR SAMPLE SIZE:


For this study, a sample of 150 has been taken

Data Collection Instrument:  Questionnaire

y SOURCES OF DATA COLLECTION:

1.

Primary data: It is the first hand information collected through questionnaire. . Secondary data Books Newspaper Journals Magazines. Internet Research paper

2
y y y y y y

Tools Of Investigation
y The study was conducted with the help of questionnaire which

was administered personally to all the respondents. y Aided Recall test: will be used to study the Recall ability of respondents for the Advertisements of soft drinks.e.g. Slogans and punch line is given and respondents are asked to identify the soft drink brand. STATISTICAL TOOLS USED y Chi- Square test wherever required. software i.e. SPSS 16 (Statistical Package For Social Sciences),Microsoft excel.

Chi Square Test Hypothesis 1: H0: There is no significant relationship between the advertisement(s) and the brand preference of consumers. vs y H1: There is significant relationship between the advertisement(s) and the brand preference of consumers. For testing the above hypothesis we have used Chi Square test .The variables used are Age and Advertisement affect your choice of Brand

Case Processing Summary

Cases Valid N age * Advertise_effect 150 Percent N Missing Percent .0% N 150 Total Percent 100.0%

100.0% 0

Age* Advertise_ effect cross tabulation Advertise effect

Age below18 18-25 26-35 36-50 Above51 Total Strongly agree 0 39 1 0 3 43 Agree 3 57 6 1 0 67 Neutral O 33 1 0 0 34 Disagree O 3 0 0 0 3 Strongly disagree O 3 0 0 0 3 Total 3 135 8 1 3 150

Chi-Square Test
Value Pearson chi-Square Likelihood Ratio linear-by-Linear Association No. of valid Cases 15.920* 17.747 2.969 150 df 16 16 1 Asymp.sig.(2-sided ) .045 .049 .033

*22 cells (88.0%) have expected count less than 5. The minimum expected count is .02.

Interpretation According to chi-square test rules if the asymp.significant value comes out to be less than 0.05 then we reject null hypothesis, and we accept alternative hypothesis. And in our case Asymp. Sig. value comes out to be .045, which is less than 0.05 significance level.

Medium TV Outdoor . Which Medium Of Advertisement You like media the most? internet Newspaper Radio Total 160 140 120 100 80 60 40 20 0 TV Internet

Total Value of Frequency 2250 2250 2250 2250 2250 2250

Respondent Values 731 510 426 303 280 2250

Percentage 32.48 22.66 18.93 13.46 12.44 100%

Stronglyagree Agree Netural Disagree Stronglydisagree Outdoor Newpaper Magzine Media Radio

Aided recall test

Old punch line
120 100 80 60 40 20 0 Thanda matlab Yeh hai seedhi baat no youngistaan meri bakwas jaan Do the dew Bheja fry.try 7up Coca cola Mountain dew

New Punchline
100 90 80 70 60 50 40 30 20 10 0 Open happiness Change the Game Fressology Darr keage jeet hai Gussa hatao chill machao 7up

Secondary data.
y Tagline creates an act of repetition and gives identity to company

and its product. S.K Chunnawala.& K.C Sethia.

y Taglines are used by the company as a part of their campaign

Philip kotler
y Consumers exposed to advertising changed their brand evaluations if

they remembered information from the advertising, though competitive advertising interfered with this phenomenon. Keller(1985,JOURNAL)

y Brand preference (or attitudes) can be regarded as a

consumer's predisposition toward a brand that varies depending on the salient beliefs that are activated at a given point in time ( Mitchell and Olson 1981)

Findings
 1. After analyzing the data collected from 150 respondents, it is

revealed that most preferred brand is Thumps Up followed by Coca Cola and Mountain Dew.
 2. Majority of the respondents uses their respective brands

because of the quality and it is revealed that there is no significant relationship between the choice of brand and price of the product.
 3. There is an impact of the Advertisements on the consumers

regarding the choice of their brand, i,e there is a significant relationship between advertisements and the choice of the brand.

 The most liked medium of Advertisements is television followed by Internet and

Outdoor media .
 Internet is mostly liked by the younger youth between the age group 18-25 because of

the access to new technologies.

 Newspapers and Radio has the low rating as compared to other mediums, because they

are still used by aged people.

 There is a great impact of the advertisements on the consumers as 83% respondents

replied they do recall the advertisements of their brands. This recall helps them in decision making while making a purchase.
 People remember different aspect(s) of the advertisements. The most remembered

aspect by respondents is Punch Line, followed by Celebrity.

 .Almost 90% of the respondents were able to answer the last

question which was based on the aided recall. Respondents were given punch lines of different brands and respondents have to identify the brands with which they are associated. It shows that a punchline has significant impact.  when the newer punchline was given which company has launched recently 60% of the respondent recognize all the tagline Which shows that tagline has great impact on customer brand preference Interesting thing was that they were recalling those taglines which was more attractive very easily.

CONCLUSION
y As there is cut throat competition in the soft drink industry mainly between the two big

giants i.e Coca Cola and Pepsi, and both are striving very hard for their market share. Therefore it becomes very hard for the companies to retain their customers. It is also evident that 34 % of the total costs, these companies spend on Advertisements. Therefore Advertisements are the back bone for this Industry, they act as a glue to retain their consumers and target the prospectus. Also the consumers preferences and the attitudes change with the passage of the time and age, Mediums of Advertisements also play an important role in promoting the products among the masses. Advertisements play a pivotal role in changing the consumers perception. Television is an important and effective medium used for communication with the consumers, and Internet has emerged one of the strongest medium that youngsters use to gather the information.Taglines are another major attraction for the consumer.
y At last we can say that there is a direct relation between Advertisements and the

consumer buying behaviour which has been proved by the tests also

Recomendation
y Companies should use the attractive taglines which must be y y y y

meaningful and touch the heart of the people. Company should go for internet marketing as well as societal marketing as internet is the the major attraction for todays youth. Company can show attractive packaging in advertisement. Company should focus on creative advertisement. Company should hire regional celebrity to increase the sale.

BOOKS REFERED

Philip Kotler (2008), Marketing Management 12th Ed, New Delhi, Pearson Education, PP34-42  Kotler, Philip and Pfoertsch (2006) Waldemar, 12th Ed, New Delhi, Pearson publication, PP 56-66
 

1th Ed, New

Journal:-

Shah .K and DSouza .A (2009) Advertising and Promotions :An IMC Perspective 1 Delhi ,TMH Publications, PP359-366

Zafar .B , Advertisement and its effects : a literature review (July 2008 ) Journal of Marketing Management, ICFAI, 27-3 5  Erdogan "Celebrity Endorsement: A Literature Review", (1999) Journal of Marketing Research, 291-314) y IMcCracken, Grant (1989), "Role of Advertisements and its effects?" Journal of Consumer Research, 16 (December), 310-321. y Unnava and Brunkrant 1991 George Doukidis, Exploring Consumer Attitudes towards Advertising , International Journal on Media Management, Vol. 5 No. 2, pp.


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