A study on Impact of Pepsi advertisements on consumer behavior

A DISSERTATION PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY

SUBMITTED BY Abhijit.shetty 04XQCM6001 UNDER THE GUIDANCE OF Prof.Jairaj Nair

PROFESSOR, MPBIM (INTERNAL GUIDE)

M. P. BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

# 43, Race Course Road, BANGALORE 560001 Tel: 080-22382798, 080-22389635

(2004-06 Batch)

DECLARATION
I hereby declare that the research work embodied in this dissertation entitled a study on impact of Pepsi advertisements on consumer behavior Has been carried out by me under the guidance and supervision of Prof Jairaj Nair, M.P.Birla Institute of Management, Bangalore. I also declare that this dissertation has not been submitted to any other University/ Institution for the award of any other Degree/Diploma.

Place: Bangalore Date: Reg No: 04XQCM6001

Certificate
This to certify that this report entitled A study on impact of Pepsi advertisements on consumer behavior, has been prepared by Mr. ABHIJIT.SHETTY, M P Birla Institute of Management in partial Fulfillment of the award of the degree, Master of Business Administration at Bangalore University, under my guidance and supervision. This report or a similar report on this topic has not been submitted for Any other examination and does not form a part of any other course Undergone by the candidate.

INTERNAL GUIDE: PROF.Jairaj Nair Place: Date:

Certificate
I hereby certify that this dissertation is an offshoot of the research Work undertaken and completed by Mr.Abhijit shetty under the Guidance and supervision of prof .Jairaj Nair (Internal Guide) MPBIM, Associate Bharatiya Vidya Bhavan, Bangalore.

Place: Bangalore Date:

Dr N.S.Malavalli principal MPBIM

ACKNOWLEDGEMENT
I sincerely thank Dr. Nagesh Malavalli (Principal), M.P.Birla Institute of Management, Bangalore for granting me the permission to do This Research Project.

I would like to express my immense gratitude to Prof.Jairaj Nair (Internal Guide), M.P.Birla Institute of Management, Associate Bharatiya Vidya Bhavan, Bangalore for his guidance, continuous Encouragement and valuable suggestions at every stage of the project.

I extend my deep sense of gratitude to all my family and friends who Have directly or indirectly encouraged and helped me to complete my project Successfully.

I would like to extend my thanks to all the unseen hands that have Made this project possible.

Place: Bangalore Date: 17th June 2005 Abhijit Shetty)

EXECUTIVE SUMMARY:

This report titled IMPACT OF PEPSI ADVERTISEMENTS ON CONSUMER BEHAVIOR is submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration of Bangalore University. This study is an attempt to understand the impact of advertising of PEPSI SOFT DRINKS. It also tries to evaluate the advertising effectiveness in establishing brand Patronage among the respondents.

The objective of this study is to analyze the advertising effectiveness on consumers, to analyze the different medium through which the advertisement Reaches maximum number of people in the market, to analyze the strategies that the Company should adopt such that the viewers turn into consumers,

The survey was conducted among the college students because the market for cellular phones is huge. Questionnaire were prepared and distributed to get the suggestions about the effectiveness of advertisement of Nokia Cellular Phones. By the survey, we came to know about the various media that has to be used greater number of people in the market and the strategies that has to be used for making the advertisement more effective when compared to its competitors. From the conclusion of this study we can come to the know what strategies can be adopted such that the advertisement of Nokia Cellular phones can be made more efficient when compared to their competitors. The medium of advertisement that has to hire through which we can reach maximum number of people. The style, word and tone that has to be used in the advertisement that attracts more number of people. The type of feeling that is created by the advertisement and the strategies to adopt that attract the people toward those feelings.

STATEMENT OF THE PROBLEM PEPSI ADVERTISEMENTS AND THEIR IMPACT ON CONSUMER BEHAVIOR.

OBJECTIVES OF THE STUDY: 1. To analyze the advertising effectiveness of Pepsi TV advertising campaign. 2. To analyze the different medium through which the advertisement reaches Maximum number of people in the market. 3. To analyze the effectiveness of celebrity endorsements 4. To know the positioning of Pepsi brand in the minds of consumers 5. To analyze what a kind of advertisement does viewers expect from Pepsi. 6. What are the factors that influence while buying a particular brand of soft drink

SCOPE OF THE STUDY: The study was conducted to know consumer behavior towards pepsi

advertisements.Due to time and resource constraints, this study is focused on College Students. This study helps us to know what are the consumer expectations towards advertising and their subsequent consumer behavior in response to companies advertisements.

RESEARCH METHODOLOGY

RESEARCH APPROACH The research for this study is a Descriptive Research. A Descriptive Research is a type of conclusive research, which has its major objective As the description or something, usually market characteristics or functions. It is Preplanned and structured. Under this approach a Cross-Sectional study is conducted in which one sample of Respondents is drawn from the target population and information is obtained from this Sample one. This study is based on Descriptive Research approach comprises the following Methods;

1. Secondary Data:

Secondary Data refers to that which is compiled by some other than the other Researcher for purpose not directly related to the research. These are readily available For processing. This type of data relate to past period. The two main types of Secondary data are Internal and External data. The sources used for such data types are as follows: A. Internal: the sources include company annual reports bulletins, research Reports, etc. b. External: the sources include: Published materials such as periodicals and books like business Periodicals, marketing journals, general business and trade magazines, etc. Computerized databases such as internet databases and off-line Databases (information available on Diskettes and CD-ROM disks).

2. Primary Data:

Primary Data refers to the data gathered for a specific purpose or for a specific Research project. These data gives latest information. This type of data is obtained from original sources. In this study, primary data is collected through Questionnaire Method.

TOOLS FOR DATA COLLECTION:

The approved questionnaire is the main tool used for data collection in this study. The Questionnaire consists of structured and unstructured questions. The questionnaire tool is mainly used because: Both qualitative and Quantitative information can be gathered. Factual survey can be done. Opinion survey in order to secure personal opinions or on a particular Matter can be done effectively. This tool is administered through Personal Interview with the target population.

SAMPLING PLAN:

1. Sampling Unit The sampling unit consists of college students for Analyzing the advertising effectiveness on consumers.

2. Sampling Procedure How should the respondents be chosen? The sampling technique chosen are Simple Random Sampling and Stratified Random Sampling, in which a sample is drawn probabilistically from each group.

3. Sample Size How many respondents to be surveyed: Due to time and other constraints, the size is 200 respondents. These samples Of respondents are chosen randomly.

CROSS SECTIONAL STUDY: A Cross Sectional Study is a type of research design involving the collection of Information from any given sample of population elements only once.

SIMPLE RANDOM SAMPLING: A probability sampling technique in which each element in the population has a Known and equal probability of selection. Every element is selected independently of Every other element and the sample is drawn by a random procedure from sampling Frame

STRATIFIED RANDOM SAMPLING: A probability sampling technique that uses a two-step process to partition the Population into sub populations, or strata. Elements are selected from each stratum by a Random procedure.

ULTIMATE CONSUMER: Ultimate Consumers refers to those individuals who buy goods and services for final Use or consumption.

DATA ANALYSIS: The data collected are tabulated and classified as required. Statistical techniques such As Frequency Distribution, Central Tendency, Percentages, etc., are used for analysis of Primary data. Conclusions are drawn based on the analysis and findings of primary data.

DURATION OF THE STUDY: The duration of the study is six weeks.

LIMITATIONS OF THE STUDY: Due to time and resource constraints, only college students are selected for The study for making an analysis for the advertising strategies. Due to resource and time constraints, a randomly selected sample has been Chosen respondents for making an analysis of advertising effectiveness on Consumers.

REVIEW OF LITERATURE
ADVERTISING: Advertising is any paid form of non-personal presentation and promotion of ideas, Goods or services by an identified sponsor. It is paid communication because the advertiser has to pay for the space or time in which his advertisement appears. Advertisers include business firms but also museums, charitable organizations, and government agencies that advertise to various target publics. Advertisements are a cost effective way to disseminate messages, whether to build brand preference or to educate a nations peopl e.

Organizations handle their advertising in different ways. In small companies, someone handles advertising in the sales or marketing departments, who works with an advertising agency. A large company will often set up its own advertising department, whose manager reports to the Vice President of marketing. The advertising departments job is to develop the total budget, and handle direct-mail advertising, dealer displays and other forms of advertising not ordinarily performed by the agency. Most companies use an outside advertising agency to help them create advertising campaigns and to select and purchase media. Global companies that use a large number of ad agencies located in different countries and serving different divisions have suffered from uncoordinated advertising and image diffusion. Advertising agencies need to redefine themselves as Communication companies and assist clients in improving their overall communication Effectiveness.

Five Ms of Advertising

MISSION: What are the advertising objectives?

MONEY: How much can be spent?

MESSAGE: What message should be sent?

MEDIA: What media should be used?

MEASUREMENT: How should the results is evaluated?

Strengths of Advertising as a promotional tool

1. It offers planned and controlled message. 2. It can contact and influence numerous people simultaneously, quickly, and At a low Cost per prospect. Hence, it is called Mass Means of Communication. 3. It has the ability to deliver messages to audiences with particular Demographic and Socioeconomic features. 4. It can deliver the same message consistently in a variety of contexts. 5. It can reach prospects that cannot be approached by sales man. 6. It helps to presale goods and pulls the buyers to retailers. 7. It offers a wide choice of channels for transmission of messages such as Visual (by Sights), aural, (by ear) aural and visual. 8. It is very useful to create maximum interest and offer adequate knowledge of the new product when the innovation is being introduced in the market.

Weakness of Advertising as a promotional tool 1. It is much less effective than personal selling and sales promotion at later stages in the buying process, e.g.: in convincing and securing action. 2. It is less flexible than personal communication. It cannot answer objections raised by prospects. 3. It is essentially one-way means of communication. It cannot obtain quick and accurate feedback in order to evaluate message effectiveness. 4. It is most efficient communication (very low cost per prospect) but it is least effective as a tool of a communication. 5. It is unable to reach prospects when they are in a buying mood. Hence advertisements have to be repeated and repetition involves additional cost. 6. Advertising, many a time lacks credibility and trustworthiness.

Importance of Advertising 1. To create widespread visibility in the market and access those pockets which are not approachable by the sales force. Quoting a customer, Make the customers come to you rather than trying to approach all the potential customers. 2. As a symbol of sound financial position of the company and also to make the statement that the company is here to stay. 3. To aid in easy brand recall and also create a top of mind awareness of the brand. 4. To make maximum potential customers aware of the new offerings and schemes of the company and initiate enquiries about the same. 5. To establish a strong brand image in the market so as to give the company an edge over its competitors.

Communication goals of Advertising Advertising should concentrate on clear and measurable communication objectives known as DAGMAR (Defining Advertising Goals, Measuring Advertising Results). Advertising objectives must be oriented around the process of communication. Communication tasks are, 1. Developing brand awareness. 2. Changing consumer attitudes. 3. Associating desirable themes with products, and 4. Informing consumers about product attributes. The ultimate purpose of most advertising is to help the probability of the sale of the Product or a service. Advertising as a mode of promotion increases propensity to purchase-moving the prospect steadily, inch-by-inch, closer to a purchase decision. Of course, advertising is only one of several communication forces. It moves the consumer through successive levels such as unawareness, awareness, comprehension or recognition, conviction (intention to buy) and action purchase. Advertising goals may be divided into four stages of commercial communication as follows: 1. Awareness: the prospects must become aware of the existence of the brand Or company. Awareness is the bare minimum goal of advertising.

2. Comprehension: the prospect must understand what the product is and what it will do for him. Comprehension level indicates that people are not only aware of the brand or company that they know the brand name and can recognize the package or trade market. But they are not yet convinced that they must want to buy. 3. Conviction: the prospect must be mentally convinced to buy the brand or the product. The conviction level shows brand preference and intention to buy the product in the near future. 4. Action: the prospect takes meaningful action. Purchase decision is duly taken.

Choosing among major media types: The media planner has to know the capacity of the major media types to deliver reach, frequency, and impact. Media planners make their choice among media categories by considering the following variables: Target-Audience Media habits: for example radio and television are the most effective media for reaching teenagers. Product Characteristics: Media types have different potentials for demonstration, visualization, explanation, believability and color. Womens dresses are best shown in color magazines, and Polaroid cameras are best demonstrated on television. Message characteristics: timeliness and information content will influence media choice. A message announcing a major sale tomorrow will require specialized magazines or mailings. Cost: Television is very expensive, whereas newspaper advertising is relatively inexpensive. What counts is the cost-per-thousand exposures.

Advertising in India
Indian Advertising starts with the hawkers calling out their wares right from the days when cities and markets first began _Shop front signages _From street side sellers to press ads _The first trademarks _Handbills distributed separately from the products 18th Century: Concrete advertising history begins with classified advertising. Ads appear for the first time in print in Hickey's Bengal Gazette. India's fisrt newspaper (weekly). Studios mark the beginning of advertising created in India (as opposed to imported from England) Studios set up for bold type, ornate fonts, more fancy, larger ads. Newspaper studios train the first generation of visualisers & illustrators. Ads appear in newspapers in the form of lists of the latest merchandise from England Since 1980, advertising in India has demonstrated phenomenal growth growth in size, quality, and range of services, in the total expenditure in advertising per year. In 1950 advertising expenditure was hardly Rs. 5 Crores. By 1988, it rose to Rs. 900 Crores. It may be around by Rs. 2200 Crores by 2001 A.D. There are now over 400 advertising Agencies as against just 100 advertising agencies around 1970. In the Indian market, we have more than 11,000 branded products extensively advertised in all languages. Press advertisement account for about 50 percent and TV account for about 18 percent of the total advertising costs. In the media sector we have at present intense competition, e.g., TV / Radio, Newspaper each attempting an increasing market share. In the press segment we are witnessing regular media war. In the case of the Press, competition is total. However, media owners are expected to adopt now customer-oriented approach to get rid of such unhealthy competition.

Essentials of good Advertisement A good advertisement must have the right message communicated through a right

media. It must reach the right people and prospects and that too at a right time and at the right cost. Right timing of an advertisement needs no emphasis. It should fulfill its sole purpose, viz., gain sale or action from the prospects and the cost of communication should be reasonable. The task assigned to the advertisement can be successfully fulfilled when: 1. It is seen by the desired prospects. 2. It is read by them with interest. 3. It is properly understood by them exactly as the advertiser wants. 4. It is believed by them and it wins their confidence and trust and above all it succeeds in igniting their desire to purchase the product or service offered or sale. Effective advertisements takes the prospect near about the point of closing the sale so that actual sale may be easily completed by the sales force. Each advertisement must be a unique selling proposition, invoking maximum force of persuasion to convert a prospect into a customer. In the light of the above information, t he author conducted a research study on the advertising strategies of two leading garment manufacturers in Bangalore City.

ATTENTION It can be viewed as an information filter a screening mechanism that controls the quantity and nature of information any individual receives. Getting a consumers attention is not easy. An individual, overtly or accidentally, avoids exposure to stimuli. The advertising environment is truly cluttered; most major magazines have almost one half of their pages carrying advertisements, the other half carrying editorial matter. Amid all this advertising, it is not easy to create an advertisement that stands out enough to get noticed, processed, and remembered. The effectiveness of ads is reduced not only by the higher levels of clutter in general, but even more significantly by the proximity of ads for competing brands from the same product category. The situation is made worse in the broadcast media, especially television. Viewers have always had the freedom to do things while a program is being shown; including leaving the room mentally and physically, but the use of remote control devices has made

channel-switching endemic. Television advertisers today have to cope with the phenomena of zapping and zipping.

CREATING ADVERTIEMENTS THAT ATTRACTS ATTENTION The attention filter operates at various levels of effort and consciousness. At one extreme is the process of active search wherein a receiver actually seeks information. He Or she might solicit opinions of friends or search through magazines not normally read. Another level could be termed passive search. A receiver searches for information only from sources to which he or she is exposed during the normal course of events. The final level might be called passive attention. Here a receiver has little immediate need for the information and makes no conscious effort to obtain it, but some information may nevertheless enter the system. At all three levels, it is appropriate to discuss why a person obtains information so that ads can be designed to maximize attention. There are, of course, as many reasons as there are situations and individuals. However, it is instructive to examine four general motives for attending to informative stimuli. A first motive is to obtain information that will have a high level of utility for a person. In an advertising context, an individual will obtain product information that will Help make better purchase decisions. Second, people may be motivated to expose themselves to information that supports their opinions- supportive exposure-and to avoid Discrepant information. Third, there is a desire to be exposed to information that Stimulates. Finally, people are motivated to find stimuli that are interesting to them. These motives will be examined in turn.

ADVERTISING EFFECTIVENESS: Advertising effectiveness consists in the degree of achievement of the objectives set By an advertiser in consultation with advertising agency working on the account. It may Also take the form of an increase in the sales of market share or penetration into a new Market segment.

ADVERTISING STRATEGIES: Strategy provides the link between advertising objectives and plans and paves the ground for their implementation. It can be instrumental in prioritizing various objectives, taking into account the attitudinal framework as well as corporate and marketing goals, And the market situations and characteristics. Advertising strategy is based on consideration such as the following: Advertising objectives. Advertising budgets. Selection of target audiences. Advertising message. Media decision. Media space decisions. Companys standing and it s strength and weaknesses. Product history and its life cycle stage. Positioning of the product as indicated by perceptual mapping. Existing and anticipated competition.

BRAND PATRONAGE: Most of the time, an advertisers (seller) tries to build a brand privilege or Patronage for his products or service. A seller has a brand privilege if buyers exhibit Brand insistence, brand loyalty, or brand preference towards his product or service. By

means of advertising or persuasive mass communication, seller tries to move prospective Buyers and existing buyer from lower level to higher level of brand attitude of customers From brand ignorance to brand awareness, or from brand acceptance to brand Preference, loyalty, and insistence

COMPANY PROFILE

Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States and Canada. Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-third of total soft drink sales in the United States. Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina, which is the number one brand of bottled water in the United States, Dole single-serve juices and So Be, which offers a wide range of drinks with herbal ingredients. The company also makes and markets North America's best-selling, ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively. PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's principal businesses include:

Frito-Lay snacks Pepsi-Cola beverages Gatorade sports drinks Tropicana juices Quaker Foods

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the worlds fifth-largest food and beverage company, with 15 brands each generating more than $1 billion in annual retail sales. PepsiCos success is the result of

superior products, high standards of performance, distinctive competitive strategies and the high level of integrity.

History:

"Pepsi" logo (used from 1906-1939 in several slightly different variations).

The international Pepsi logo. Also used as logo from 1991-1998.

The "Pepsi" logo (used from 1998-2003).

Pepsi Stuff represented a major assault in the Cola Wars

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles and sales increased to 19,848 gallons. In 1905, Pepsi received its first logo redesign since the original design of 1898. In 1906, the logo was changed again. In 1909, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race". In 1923, PepsiCo went bankrupt due to high sugar prices as a result of World War I, assets were sold and Roy C. Megargel bought the Pepsi trademark.[3]Eight years later, the company went bankrupt again, resulting in a reformulation of the Pepsi-Cola syrup formula. In the following years, the drink gained in popularity and in 1934, debuted the 12-ounce drink. In 1964, the Diet Pepsi variation of the drink debuted, being the United States's first national diet soft drink. In 1980, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. Pepsi took great advantage of the campaign with television commercials reporting the test results to the public. In the mid-1990s, Pepsi launched the highly successful Pepsi Stuff strategy, its largest marketing program ever. In its first year, Pepsi Stuff significantly outperformed Coke's muchanticipated Atlanta Olympic Summer with growth 3 times larger than Coke's and 2 points of share gained by Pepsi. Pepsi Stuff built consumer brand loyalty by allowing people to collect Pepsi Points from packages and cups and redeem them for high-quality merchandise and unique experiences. Based on Pepsi Stuff's success, the company expanded it to include Mountain Dew and into many international markets. PepsiCo continued and expanded Pepsi Stuff for many years. Promo Magazine listed 16 "Ageless Wonders" campaigns that "helped redefine promotion marketing." Included for 2002 is Pepsi Stuff (started 1996) Source: Promo Magazine, 2002. During the summer of 1993, Pepsi managed to stave off a runaway hoax pertaining to alleged product tampering. Syringes were claimed to have been found in cans of Diet Pepsi -- first in Seattle, then throughout the U.S. over the next few days. With the arrests of several of the fraudulent claimants, reports of found hypodermic needles ceased. Pepsi's subsequent

handling of the situation via carefully-worded press releases and VNRs is frequently cited as a textbook example of how exactly to handle falsely-spread rumors about a company.[1] While some claim that Pepsi tastes identical to Coca-Cola, others say they can detect a difference. In the past, the difference in taste between Pepsi and Coca-Cola's Coke was even greater than it is today. When the Pepsi taste became more popular, Coca-Cola adapted their drink to be closer to the American taste of Pepsi (New Coke).[5] Although Pepsi claimed this a victory for their brand of cola, Coca-Cola soon reverted because, while testing showed the taste of the new Coke was better, consumers preferred Coca-Cola to stay the same. Coke outsells Pepsi in the US overall because Coke is sold exclusively in more locations, such as restaurants that sell Coke, but not Pepsi. In locations where Pepsi and Coke are sold side-byside (such as Supermarkets and Convenience Stores), Pepsi generally outsells Coke in the US. Ingredients

Amount fluid ounces Calories Fat Sodium Potassium Carbohydrates Sugar Protein Caffeine 100 0g 25 mg 10 mg 27 g 27 g 0g 25 mg

PEPSI IN INDIA

By most accounts, Pepsi gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; Pepsi bought out its partners and ended the joint venture in 1994. [6] Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that Coke and Pepsi have "been major targets in part because they are well-known foreign companies that draw plenty of attention

Age profile of the sample:

The samples were taken from a college comprising of Pre University, under graduates and post graduate students, the following is the age profile of the samples:

Age 18 19 20 21 22 23

Respondents 41 32 43 19 46 19

Following is the pie chart showing age profile of the sample:

(23) 10%

(18) 21% 18 19 20 (19) 16% 21 22 23 (20) 21%

(22) 22%

(21) 10%

The sample mainly comprises of youngsters in the age group between 18-23 as it was felt that the young age group will be more exposed to all kind of advertisements and current happenings in the soft drink industry.

Preferred brand of cold drinks:

The main objective behind this question was to know the most popular brand of soft drink among the samples, the responses are as follows

Brand Coca-Cola Pepsi 7 up Fanta Sprite Others Total

Response 84 59 19 12 10 16 200

The following pie chart shows preferred brand of soft drinks:

Response

8% 5% 6% 41% 10% Coca-Cola Pepsi 7 up Fanta Sprite Others 30%

As per the chart it is clear that coca cola is the most preferred brand,41% of samples like coco cola, Pepsi is the next preferred which accounts 30% of share other brands like 7 up,fanta,sprite accounts for the rest.

Factors influencing buying of a particular brand:

This is a very important question to know the main factors behind buying a particular brand; an objective type of question was put with some attributes like taste, advertisement, flavour, retailor and other factors. The following table portrays the opinion of the samples.

Factors Taste Advertisement Flavor Retailer Other total

Response 84 67 41 8 0 200

Retailer 4% Flavor 21% Taste 41% Taste Advertisement Flavor Retailer

Advertisement 34%

As per the response it is very interesting to note that 41% of samples consider taste as the main factor while buying a particular brand of soft drink, about 34% of sample are of the

opinion that advertisements play a great role in their buying, rest of the samples are influenced by the flavor and retailer.

Most influential advertisement medium:

Pepsi advertises its product trough all mediums viz.Television, print, outdoor and others. The following table shows the most influential mediums according to the samples:

Mediums T.V Hoardings Print media Others total

Response 167 12 19 2 200

Others 1% Print media 10% Hoardings 6%

Response

T.V Hoardings Print media Others T.V 83%

No doubt television is the most dominant medium with 83% of respondents going for it, others mediums like hoardings, print media have their small share in the pie.

Reach of Pepsi T.V adds:

Pepsi recently come up with PEPSI TV ad campaign featuring bollywood stars Kareena kapoor, Sharukh khan and Priyanka chopra, this question aims at knowing the awareness level about this campaign therefore the question was put to know whether they are aware of this campaign and the response obtained is as follows.

Respondents Yes No total

Response 200 0 200

It is significant to note that every one in the sample group is aware of PEPSI TV campaign as the table shows that all 200 samples have seen this advertising. This landslide majority shows the reach of the campaign and the successful campaigning of the advertisements.

Awareness regarding celebrities:

As it is already said for Pepsi TV campaign three bollywood stars have endorsed this campaign to know the awareness regarding this celebrity endorsement an open ended question was asked so that the respondents can recall the celebrities associated with this ad campaign.

Celebrities Sharukh khan Kareena Priyanka

Respondents 200 197 194

201 200 199 198 197 196 195 194 193 192 191

200

197 celebrities 194

Sharukh khan

Kareena

Priyanka

As you can see almost all respondents are aware of this celebrity endorsement and they have identified all the celebrities who were part of this ad campaign.sharukh khan is in particular is very much famous among these stars as all respondents have identified him for being part of the ad campaign and the other two stars viz Kareena and Priyanka have been identified by 197 and 194 respondents respectively.

Awareness regarding Pepsi punch line:

The respondents were asked to name the Pepsi punch line so as to know whether the positioning strategy of Pepsi is successful or not, it is is very interesting to note that all the respondents have named any one of the Pepsi punch lines like Ye dil mange more Ye pyas hai badi Nothing official about it.

This overwhelming response means that the Pepsi positioning strategy is been successful hence the positioning strategy is been successful

Consumer response regarding Pepsi TV ads:

The respondents were asked to rate Pepsi TV ads as very interesting, some what interesting, not much interesting and nonsense ads, the following are the response for the same:

Response Very interesting Some what interesting Not much interesting Non sense ads total

Respondents 112 17 41 30 200

Consumer response regarding Pepsi TV adds:

Non sense ads 15% Very interesting Not much interesting 21% Some what interesting 9% Some what interesting Very interesting 55% Not much interesting Non sense ads

As the pie chart depicts about 55% of respondents have the opinion that pepsi ads are very interesting and 21% feels that Pepsi ads are not much interesting and 15% feels that pepsi ads are non sense.

Programmes or columns where Pepsi adds are most often viewed:

To know what are the main events or Programmes where the Pepsi TV advertisements are mostly viewed a question was framed asking respondents what the Programmes are where the Pepsi TV ad is being watched the following are the response obtained: Programmes Cricket match Posters Sport page Others Total Response 146 23 21 10 200

programmes
Others 5% Sport page 11% Posters 12% Cricket match Posters Sport page Cricket match 72% Others

The pie diagram reveals that a huge part of sample have viewed the Pepsi ads through cricket match telecasts and others mediums like posters, sport columns and others like serials have got their own chunk in the pie.

Personality to which brand Pepsi is associated most:

To know how Pepsi is positioned in the minds of customers some prominent personalities from the field of cricket, cinema, business, football and pop music were given to associate brand Pepsi among one of these personalities the response obtained is as follows:

Personality Sachin Kareena Bill gates Ronaldo Britny spears Total

Response 104 32 11 31 22 200

Britny spears 11% Ronaldo 16% Bill gates 6% Kareena 16% Sachin 51% Sachin Kareena Bill gates Ronaldo Britny spears

As one can note the cricketer sachin outshines other personalities by a huge margin by having 51% of respondents favor, the soccer champ Ronaldo and bollywood heart throb Kareena are having 16% share in the pie.

Celebrity who is having a great impact on consumers:

In Indian market Pepsi is using many celebrities to promote its product to know who is having a great impact on consumers a objective type of question was asked to respondents and their response is as follows:

Celebrity Sachin Sharukh Amitabh Kareena Others Total

Response 84 59 43 14 0 200

Kareena 7% Amitabh 22% Sachin 41% Sachin Sharukh Amitabh Kareena Sharukh 30%

Once again its the bating maestro who outshine all other celebrities in terms of having maximum impact on consumers,41% of respondents felt that sachin is having a great impact as a celebrity by endorsing the brand he is followed by bollywood stars Sharukh khan,amitabh bachan and Kareena kapoor having 30%,22%,and 7% share in the pie respectively.

Category of people to which Pepsi is best suited:

This also an effort to know the positioning of Pepsi in the minds of consumers the objective type of question was aimed at to know to which category of people pesi is best suited and the response for the same is as follows:

Category of people Students Professionals Elders Others Total

Response 142 32 6 20 200

Response Others 10% Elders 3% Professionals 16% Students Professionals Elders Students 71% Others

As we can see 71% of respondents feel that pepsi is best drink for students and 16% of respondents feel that it is suited for professionals and a very minimum percentage of people belives that its a good drink for elders.

Rating for Pepsi T.V ads:

The respondents were asked to rate the recent Pepsi TV advertising campaign on a scale of 10 by taking three attributes in to consideration viz.style,content,and wordings used the main objective behind this question was to know the effectiveness of this advertising campaign in quantitative terms, the respondents were supposed rank the Pepsi TV ad campaign on a scale of 10 for three attributes the following is the response obtained :

Rating points 1 2 3 Attributes Style content Wordings used 2 12 8 2 6 12 4

4 34 9 11

5 12 21 12

6 54 18 53

7 31 94 43

8 30 24 31

9 11 4 21

10 10 8 23 Total 200 200 200

In the following subsequent pages the above responses are presented in the form of chart by taking each attribute in to consideration.

Style of the advertisements: The following chart is the response to pepsi tv advertisements style of advertisements

70 60 50 40 30 20 10 0 0 1 1 12 2 2 6 3 3 34 12 4 4 5 5 6 6 7 7 8 8 54 31 30 11 9 9 10 10 10 Style Attributes

In a scale of 10 the advertising campaign has got a good response to its style of advertisements where 136 out of 200 respondents giving more than 5 points to Pepsi TV advertisements in terms of style of the advertisements. But still 64 respondents which is about 32% of the sample have given five or less than five points to the style of Pepsi TV advertisements.

Content of the advertisements: The following is the response of the sample to the content of the advertisements

120 100 80 60 40 20 0 2 1 1 8 2 2 12 3 3 9 4 4 21 5 5 24 7 7 8 8 4 9 9

94

18 6 6

8 10 10

In terms of content Pepsi TV ad campaign got a very good response having 148 respondents giving it more than 5 points on a scale of 10 which accounts 74% of the total sample, the remaining respondents i.e. 52 which accounts for 26% of the total sample have given five or less than five for content of the advertisements.

Wordings used: The following is the response for wordings used in Pepsi TV ad campaign:

70 60 50 40 30 20 10 0 0 1 1 2 2 2 4 3 3 11 4 4 12 5 5 6 6 7 7 8 8 9 9 10 10 53 43 31 21 23

As we can see about 171 which is about 85.55% of total respondents have given more than five marks for wordings used in Pepsi TV advertisements, only a very meager percentage of people i.e. 14.45% of people have rated Pepsi TV campaign five or less than five in terms of wordings used.

Kind of advertisements that Pepsi should come with: The respondents were asked to name the kind of advertisements they are looking forward from Pepsi their responses are s as follows: Kind of ads Informative Persuading Entertaining Total Response 11 47 142 200

Informative 6% Persuading 24% Informative Persuading Entertaining Entertaining 70%

About 70% of respondents feel that the advertisings should be entertaining, and 24% of respondents feel that advertisings should be persuading in nature and a very less percentage of respondents i.e. 6% feel that it should be informative.

Interpretation
1. As per the sample coca cola is the most preferred brand of cola hence majority of the sample preferring the brand.

2. While buying a particular brand 0f soft drink the most influencing factor is taste and advertising, the company should bring more flavors and should come with more advertisement campaigns.

3. T.V is found to be the most influential medium of advertisement

4. All of 200 respondents are aware of recent Pepsi TV advertisement campaign.

5. Almost all respondents are aware of celebrities who were part of the Pepsi TV advertisement campaign.

6. The Pepsi punch lines are very popular among respondents hence all respondents haver named atleast one of the punch line of pepsi advertisements.

7. Respondents are very impressed with Pepsi TV advertisements as 55% of sample terming Pepsi TV advertisements as very interesting.

8. The respondents have watched the Pepsi TV advertisings during cricket matches, so cricket telecasts are the most widly reached

9. Sachin is the most popular brand ambassador as the respondents agree that he is having a great impact on their buying behavior.

10. As per the respondents Pepsi soft drink is best suited for students

11. Pepsi TV advertisement campaign has got positive response from respondents regarding style, content and wordings used in the advertisements.

12. As per the respondents Pepsi should come out with more entertaining advertisements.

Conclusions:
The following are the conclusions drawn from the research study:

1. TV is the most influential medium of advertisement:

As per the respondents TV is the most influential medium, the company should concentrate more on TV advertisements and they should come up with more innovative and eye catching advertisements through television.

2. More advertisements while cricket telecast:

Most of respondents watch Pepsi TV advertisements while watching a cricket telecast, the company should try to advertise more during this time period.

3. celebrity endorsements:

The respondents are aware of celebrity endorsements in Pepsi TV ad campaign and the celebrity who is having a great impact on consumer behavior is the cricket star Sachin Tendulkar. The is to say that the use of celebrities does have a great impact on consumer behavior and sachin is the most influential celebrity, the company should use sachin popularity to promote its brands.

4. Positioning of Pepsi:

Pepsi is positioned as a student drink in the minds of respondents as most of the respondents feel that Pepsi is the best suited drink for the students.

4. Effectiveness of Pepsi TV advertisements:

Pepsi TV advertisement campaign has got a very positive response from the respondents; the respondents have rated Pepsi TV ads very high in terms of style, content, and words used. We can say that the Pepsi TV ad is a success and it has got a very positive response from the respondents.

5. kind of advertisements that respondents are looking:

most respondents are looking towards entertaining advertisements rather than informative and persuading ads.