Advertisement Effectiveness of Cold Drinks
Advertisement Effectiveness of Cold Drinks
On
“ADVERTISEMENT EFFECTIVENESS OF
COLD DRINKS”
SUBMITTED TO:
Kurukshetra University, Kurukshetra
Introduction
• Function
• Evolution
• Benefits
• Groups Involved
• Advertising Campaign
Objectives of Study
Research Methodology
Findings
Suggestions
Conclusions
Limitations
Bibliography
Annexure
ACKNOWLEDGEMENT
There is always a sense of gratitude which one feels towards his mentor or
“GURU” who has helped him at one point of time or through out.
Last but not the least; I would like to thank the almighty God for the
blessings he showered on me during the project report.
INTRODUCTION
INTRODUCTION
What is Advertising :
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".
Advertising has been defined by different experts. Some of the
quoted definition are :
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.
Stanton deserves that " Advertising consists of all the activities
involved in presenting to a group a non- personal, oral or visual
openly, sponsored message regarding a product, service, or idea.
This message called an advertisement is disseminated through one
or more media and is paid for by the identified sponsor.
Advertising is any paid form of non – personal paid of
presentation of ideas goods or services by an identified sponsor.
Advertising is a "non- personal paid message of commercial
significance about a product, service or company made to a market
by an identified sponsor.
In developing an advertising programme, one must always start
by identifying the market needs and buyer motives and must make
five major decisions commonly referred as 5M (mission, money
message, media and measurement) of advertising.
Basic Features of Advertising
On the basis of various definitions it has certain basic features
such as :
1. It is a mass non-personal communication.
2. It is a matter of record.
3. It persuades buyers to purchase the goods advertised.
4. It is a mass paid communication.
5. The communication media is diverse such as print (newspapers
and magazines)
6. It is also called printed salesmanship because information is
spread by means of the written and printed work and pictures
so that people may be induced to act upon it.
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, pt 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.
Advertising is particularly effective in certain other spheres too
such as :
i) When consumer awareness of products or service is at a
minimum.
ii) When sales are increasing for all terms in an industry.
iii) When a product is new and incorporates technological advance
not strong and.
iv) When primary buying motive exists.
It performance 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.
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. Thus type of advertising usually promote 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
sub-divided 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.
Product advertising is sub-divided into direct & indirect action
advertising & product advertising aims at informing persons about
what a products is what it does, how it is used and where it can be
purchased. On the other hand selective advertising is made to meet
the selective demand for a particular brand or type is product.
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 favourable 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 institutional advertising.
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 convince buyers that his operation entitles him
to the money spent by them.
ii) Public relations institutional advertising is used to create a
favourable image of the firm among employees, stock-holders
or the general public.
iii) Public service institutional advertising wages public support.
c) Other Types :
The other types are as follows :
i) Consumer advertising
ii) Comparative advertising
iii) Reminder advertising
iv) Reinforcement advertising
ADVERTISING OBJECTIVES
The long term objectives of advertising are broad and general,
and concern the contribution advertising should make to the
achievement of overall company objectives. Most companies regard
advertisingly 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 by used for
achieving various short and long term objectives. Among these
objectives are the following :
1. To do the entire selling job (as in mail order marketing).
2. To introduce a new product (by building brand awareness
among potential buyers).
3. To force middlemen to handle the product (pull strategy).
4. To build brand preference 9by making it more difficult for
middleman to sell substitutes).
5. To remind users to buy the product (retentive strategy).
6. To publicize some change in marketing strategy (e.g., a price
change, a new model or an improvement in the product).
7. To provide rationalization (i.e. Socially acceptable excuses).
8. To combat or neutralize competitors advertising.
9. To improve the moral of dealers and/or sales people (by
showing that the company is doing its share of promotion).
10. To acquaint buyers and prospects with the new uses of the
product (to extend the PLC).
BENEFITS
The functions of advertisement, and that purpose its ethics,
may be discussion below :
1. It leads o 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 he unemployment
problem.
7. It raises the standard of living of the general public by impelling
it to use to articles of modern types which may add to his
material well being. "Modern advertising has made the luxuries
of yesterday the necessities of today ..................... It is a
positive creative force in business. It makes two blades of grass
grow in the business world where one grew before.
8. It establishes the goodwill of the concern for the test articles
produced by it and in course of time they sell like not cakes
consumer search for satisfaction of their needs when they
purchase goods what they want from its beauty, superiority,
economy, comfort, approval, popularity, power, safety,
convenience, sexual gratification and so on. The manufactures
therefore tries to improve this goodwill and reputation by
knowing the buyer behaviour.
To sum up it may be said that advertising aims at committing
the producers, educating the consumer, supplementing the
salesman converting the producer and the dealer to eliminate
the competitor, but above all it is a link between the produce
and the consumer.
WHY & WHEN TO ADVERTISE
Advertising as a tool to marketing not only reaches those who
buy , but also those whose opinions or authority is counted for
example a manufacturer of marble tiles and building boards
advertises not only to people who intend to build houses but also to
architect and engineers. While the manufacturers of pharmaceuticals
products advertise to doctors as well as to the general public. At time
it is necessary for a manufacturer or a concern to advertise things
which it does not sell but which when sold stimulates the sales of its
own product. There are concerns like electric heaters, iron etc.
because the use of these increases the demand for their products.
Advertising should be used only when it promises to bring good
result more economically and efficiently as compared to other means
of selling. There are goods for which much time and efforts are
required in creating a demand by sending salesman to prospective
buyers than by simply advertising them. In the early days of the cash
register in America it was sold by specially trained salesman who
called on the prospective users and had the difficult task of
convincing them that they could no longer carry on with the old
methods, and that they urgently needed a cash register. In our
country certain publishers have found it less costly to sell their books
by sending salesman from house to house among prospective buyers
than to advertise them. In these two examples the cost of creating
demand would be too high if attempted by advertising alone under
such circumstances advertising is used to make the salesman
acceptable to the people they call upon to increase the confidence of
the public in the house. Naturals when there are good profits
competitors will be attracted and they should be kicked out as and
when sufficient capital is available by advertising on a large scale.
Immediate result may not justify the increased expenditure but it will
no doubt secure future sales.
Campaign vary in length some may run only for a few days, other for
weeks, yet other for a season or the entire year. Usually a range of 3
to 6 months includes many campaigns. Many factors influences
campaign length such as competitors advertising media, policies,
seasonal falls curves of the product involved, the size of the
advertising funds, campaign objectives and the nature of the
advertisers marketing programme.
OBJECTIVES OF CAMPAIGN
The advertising campaign, especially those connected with the
consumers aims at achieving these objectives :
i) To announce a new product or improve product.
ii) To hold consumers patronage against intensified
campaign use.
iii) To inform consumers about a new product use.
iv) To teach consumers how to use product.
v) To promote a contest or a premium offer.
vi) To establish a new trade regional, and
vii) To help solve a coca regional problem.
Methodology
1. 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.
(Primary data)
There is more consumption of Coca Cola and has 70% market
share in the Yamunanagar city and Coca Cola is having maximum
consumption and after that Thumps-up and after it Limca cold drink in
the market and all the products has good sale but less than these.
Bansal Trading Co.
(Pepsi)
Brands of Pepsi
i) Pepsi Cola
ii) Mirinda Lemon
iii) Mirinda Orange
iv) Pepsi Soda
v) Pepsi Apple
(Primary Data)
The consumption of Pepsi cola, after this sale of Mirinda Lemon
is there and after it Mirinda Orange is there and the market share is
less of Pepsi in comparison of Coca Cola.
TABLE 4.1
RESPONDENT'S CLASSIFICATION ACCORDING TO AGE
Age Classification
(in years) according
No. oftorespondents
age
Percentage
11-206%
22 44
21-40 25 50
41-60 3 11-20 yrs 6
Total 44% 50 21-40 yrs 100
41-60 yrs
50%
Table 4.1 shows that 44% of the respondents are in the age
group of 11-20, 50% are in the age group of 21-40 and 6% are in the
age group of 41-60.
Classification according to age
TABLE 4.2
40%
RESPONDENT'S CLASSIFICATION
male
ACCORDING TO SEX
Sex No.
60% of respondents
female Percentage
Male 30 60
Female 20 40
Total 50 100
Table 4.2 shows that 60% of the respondents are males and
40% of them are females
TABLE 4.3
70
60 RESPONDENT'S CLASSIFICATION ACCORDING TO
50
EDUCATIONAL QUALIFICATION
%agE
40
30 Qualification No. of respondents Percentage
20 Illiterate - -
10 Below Matric - -
0
Matric 5 10
below matric
Graduatematric graduate29 post 58
Post graduate 16 graduate 32
Total 50 100
Table 4.4 reveals that all the respondents are drinking cold
drinks.
TABLE 4.5
FREQUENCY OF TAKING COLD DRINKS
HOW FREQUENTLY No. of respondents Percentage
YOU DRINK
Once a day 15 30
Twice a day 2 4
More than twice 1 2
Not regular drunker 32 64
Total 50 100
30%
TABLE 4.6 once a day
NAME OF THE COLD DRINKS AVAILABLE
twice a day IN MARKET
Name of cold drinks No. ofmore
respondents
than twice Percentage
Coca
64% cola 4% -
no regular -
Pepsi 2% - -
Fanta - -
Limca - -
Mirinda - -
Thums-up - -
Canada dry - -
Maaza - -
Dew - -
All of above 50 100
Total 50 100
Table 4.6 reveals that all of the respondents are of the view
that all the above mentioned cold drinks are available in the market.
TABLE 4.7
PREFERENCE OF COLD DRINK
Which cold drink you No. of respondents Percentage
like most
Coca cola 12 24
Pepsi 12 24
Fanta 1 2
Limca 7 14
Mirinda 1 2
Thums-up 10 20
Canada dry 4 8
Maaza 3 6
Dew - -
Total 50 100
20
15 TABLE 4.8
10
5 FLAVOURS OF COLD DRINKS
0 Flavours
Which flavour
8%
you likeNo.
mostof?respondents Percentage
na up
la
Cola 30 60
um a
za
m a
a
m .
i
w
4%
..
ps
th nd
co
c
nt
ca s-
de
da
aa
li m
Lemon 7 14
pe
fa
ir i
ca
cola
Orange
14% 7 lemon 14
co
Mango 2 orange 4
Others 4 mango 8
60%
Total
14% 50 other 100
Table 4.8 shows that out of 60% of the respondents like the
cola flavour of cold drink, 14% like the Lemon flavour and same
percentage of respondents like the orange flavour of cold drink.
TABLE 4.9
ADVERTISEMENT OF COLD DRINK
Do you think No. of respondents Percentage
advertisement of cold
drink is required
Yes 48 96
No 2 4
Total 50 100
Table 4.9 indicate that 96% of the respondents are of the view
that they have been the advertisement of the cold drink they like most
while 4% shows that they don’t have seen the advertisement they like
most .
Have you seen the advertisement of
cold drink you like most ?
4%
TABLE 4.10
MEDIA OF ADVERTISEMENT
yes
no
THROUGH WHICH MEDIA No. of respondents Percentage
through which
YOU HAVE SEEN media
IT? you have seen it
TV ?
96% 46 92
4% 4%
Newspaper
8%
2 4
Magazine 1 2
TV
Other 1newspaper 2
Total 50magazine 100
others
Table 4.10 reveals
84% that 92% of the respondents are of opinion
that they have seen the advertisement on TV while 4% are of the
opinion that they have seen the advertisement through newspaper.
TABLE 4.11
NO. OF ADVERTISEMENT
How many
How types of advertisement
many No. of respondents Percentage
you preferrd
advertisements you10%
Table 4.14 shows that 46% of the respondents are of the view
that advertisement forced them to consume product more 34% of
them has view that advertisement don’t force them to consume the
product while 20% of them cannot say anything about it.
Which media is presently the
advertisement more effective
0%
TABLE 4.15
TV
BEST MEDIA OF ADVERTISEMENT
newspaper
magazine
Which Media No. of respondents Percentage
others
Presently Is More
100%
Effectively
TV 50 100
Newspaper - -
Magazine - -
Others - -
Total 50 100
Table 4.17 shows that 86% of the respondents are of the view
that the expenditure incurred on advertisement is effective in adding
the profit while 4% denied the same and 10% did not reply.
EFFECTIVENESS OF EXPENDITURE
TABLE 4.18
100 86
REASONS
80 FOR DIFFERENCE OF ADVERTISEMENT
EFFECTIVENESS
%age
60
40WHICH REASON No. of respondents Percentage
20 10
YOU FIND FOR THE 4
0
DIFFERENCE
Yes OF No Cannt say
ADVERTISEMENT
EFFECTIVENESS
Education 20 40
Liking 10 20
Standard of Living 10 20
Level of Development 10 20
Total 50 100
..
ng
WILL
100 THE STUDY No. of respondents Percentage
...
tio
d
ki
ar
ca
of
Li
nd
u
l
ve
80
Ed
OF
a
St
Le
60
%age
EFFECTIVENESS
40
WOULD
20
CONTRIBUTE TO
0
IMPROVEMENT
Yes OFNo Cannt say
PRESENT
ADVERTISEMENT
Yes 45 90
No 1 2
Cannot say 4 10
Total 50 100
Table 4.20 reveals that majority of the respondents say that the
advertisement effectiveness is necessary while same did not replied.
TABLE 4.21
80
USERS OF ADVERTISEMENT EFFECTIVENESS
68
THE USE STUDY OF No. of respondents Percentage
60
EFFECTIVENESS IS
40 30
FOR WHOM?
20
For company2 34 0 68
0 For employees 1 2
For customers
For company For For 15 None of 30
None ofemployees
these customers - these -
Total 50 100
proper way.
Text books:
Zikmund, William G. “Business Research Methods” Thomson
South-western 7th ed. 2003.
Chunawalla, S.A. “Foundation of Advertising theory and Practice”
Himalayan Publishing House, 5th ed. 2000.
Kotler, Philip “Marketing Management” prentice Hall of India, 11th
ed. 2003.
Internet Source:
www.adrelevance.com
www.businessworld.com
ANNEXUR
E
ADVDRTISEMENT EFFECTIVENESS
OF COLD DRINKS
BACK GROUND INFORMATION
I) Name :
__________________________________
II) Age :
__________________________________
III) Qualification :
IV) 1. Literate
2. Illiterate
if literate ?
1. Below Matric 2. Matric
3. Graduate 4. Post Graduate
V) Profession :
__________________________________
VI) Address :
__________________________________
__________________________________
VII) Size of family :
__________________________________
1). Do you take cold drink ?
a. Yes b. No
2). How frequently you take cold drink ?
a. Once a day b. Twice a day
c. More than twice d. Not regular
3). Which are the different cold drinks available in the market ?
a. Coca Cola b. Pepsi
c. Limca d. Fanta
e. Thums-up f. Mirinda
g. Limca h. Maaza
i. Canada Dry j. All of these
4). Which cold drink you like most ?
a. Coca Cola b. Pepsi
c. Limca d. Fanta
e. Thums-up f. Mirinda
g. Limca h. Maaza
i. Canada Dry j. All of these
5). Which flavour of cold drink you like most ?
a. Cola b. Lemon
c. Mango d. Orange
e. Other
6). Have you seen the advertisement of cold drink you like most ?
a. Yes b. No
7). Through which media you have seen it?
a. T.V. b. News Paper
c. Magazine d. Others
8). How many types of advertisement of you preferred brand of
cold drink are there ?
a. 1 b. 2
c. 3 d. 4
9). Which slogan of cold drink you like most ?
a. Taste the Thunder
b. Yara Da Tashan
c. Yeh Dil Mange More
d. Jo chahe ho Jai COCA-COLA enjoy
10). Why do you like the advertisement ?
a. Because it has film stars ?
b. Because of Good music
c. It’s theme and making is appealable.
d. Any other reason.
11). Do you think that advertisement has forced you to consume
product more ?
a. Yes b. No
12). Which media is presenting the advertisement is necessary for
sale of cold drink ?
a. T.V. b. News Paper
c. Magazine d. Others
13). Do you think the advertisement is necessary for sale of cold
drink ?
a. Necessary b. Very Necessary
c. Not Necessary d. Can’t Say
14). The expenditure incurred on advertisement of cold drink is such
effective that it adds to profit ?
a. Yes b. No
c. Can’t Say
15) Which reason you find for the difference of advertisement
effectiveness ?
a. Education b. Likings
c. Standard of Living d. Level of Development
16) Is the study of effectiveness would contribute to improvenment
in present advertisement ?
a. Yes b. No
c. Can’t Say
17) Is advertisement effectiveness is necessary for company ?
a. Yes b. No
c. Can’t Say
18) What do you think the use of study of effectiveness is for who?
a. For Company b. For Employess
c. For Customers d. None of these