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CHAPTER -1

INTRODUCTION AND REVIEW OF LITERATURE

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CHAPTER -1
INTRODUCTION AND REVIEW OF LITERATURE
A consumer is the central point in business. Now a day’s attracting &and satisfying
customers is the most difficult than producing the goods. For any products, many brands are
available in the market. Every company wants to increase its market share. Now buyers
dominate the market. So sellers have to make a lot of efforts to attract & to persuade the
persons to purchase its products & services. Advertising is an important means to influence
consumer’s attitude & purchase behavior. Advertising increases brand familiarity, develop
brand image & helps the organization in increasing its market share. Advertising is to invest
resources in purchase time or space in mass media such as T.V, Radio, and newspapers,
magazines that helps to promote the company’s product or services.
Once of the strongest weapons in Pepsi’s armory is the flexibility it has empowered its
people with. Every manager and salesperson has the authority to t a k e w h a t e v e r s t e p s
h e , o r s h e , f e e l s w i l l m a k e c o n s u m e r s a w a r e o f t h e b r a n d a n d increase its
consumption.
Pepsi has consistently wielded its pricing strategy as in invitation to sample, aiming to turn
trial into addiction It launched the 500 ml bottle in 1994 at Rs. 18 versus Thumps
Up’s Rs. 9, in April, 1996, its 1.5 liter bottle followed Coke into the marketplace at Rs. 30
– Rs 5 less than Coke’s .But it couldn’t continue the lower price positioning for long.

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HISTORICAL BACKGROUND:

Caleb Davis Bradham was born in Chinquapin, North Carolina on May 27, 1867. He
graduated from the University of North Carolina at Chapel Hill and attended the University
of Mary land School of Medicine, circa 1890. He dropped out of medical school because his
father’s business was going bankrupt. After returning to North Carolina, Bradham taught
public school for about a year, and later opened a drug store on the corner of Middle and
Pollock Streets in downtown New Bern. He named the store “Bradham Drug Company” and,
like many other drug stores of the time, housed a soda fountain. In 1893, Bradham invented
“Brad’s Drink,” a blend of carbonated water, sugar, pepsin, kola nut extract, vanilla and “rare
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oils” at this location. On August 28, 1898, Caleb renamed his drink “Pepsi-Cola,” after a
combination of two ingredients, “pepsin” and “cola”. He believed his drink was “healthy” as
it aided in digestion much like the pepsin enzyme does. In 1898, Caleb Bradham wisely
bought the trade name "Pep Cola" for $100 from a competitor in Newark, New Jersey that
had gone broke. His assistant James Henry King, a young African American was the first to
taste the new drink.
In 1902, Bradham launched the Pepsi-Cola Company in the back room of his pharmacy and
on December 24, 1902 the Pepsi-Cola Company was incorporated in the state of North
Carolina. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially
registered with the U.S. Patent Office. At first, he mixed the syrup himself and sold it
exclusively through soda fountains. That first year, Bradham sold 7,968 gallons of syrup,
using the theme line "Exhilarating, Invigorating, Aids Digestion." He also expanded his
operation by opening a second Drug Store at the corner of Middle and Broad Streets. Caleb
soon recognized that a greater opportunity existed to bottle Pepsi so that people could drink it
anywhere. In 1905, Bradham began selling Pepsi-Cola in six-ounce bottles and awarded two
franchises to Charlotte and Durham, North Carolina. The following year, 15 franchises were
awarded, with another 40 by 1907. In 1910 there were 250 franchises in 24 states and in
January of that year the Pepsi Cola Company held their first Bottler Convention in New
Bern.
Caleb Bradham enjoyed 17 years of success with Pepsi-Cola. However, he had gambled on
the fluctuations of sugar prices during WWI. He believed that sugar prices would continue to
rise, but they fell drastically, leaving him with an overpriced sugar inventory. Pepsi Cola
went bankrupt in 1923 and its assets were sold to Craven Holding Corporation for $30,000.

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1.2 ADVERTISING CLUB OF INDIA:

The winds of inspiration for the formation of the Ad Club in Bombay blew from the east –
the Ad Club of Calcutta, to be precise. That's not surprising if you knew that, in the preindependence days, it was not Bombay but Calcutta that enjoyed the enviable position of
being the country's business centre. The foundations of the Ad Club were laid in 1954, when
Soli Talyer khan to join Voltas got in touch with Bobby Sista, having arrived in Bombay from
Calcutta.
Having formed a small but determined group of like-minded individuals, Adi Patel, Bal
Mundkar, Rudi Von Leyden, Bobby Sista, Hardcastle and Khurshid Dhondy met at what was
to be the Ad Club's first meeting. The settings may have been informal, but the focus was
clear: it was established to bring agencies and advertisers together. These popular afternoon
gatherings every month centred on training, made possible through prominent guest speakers
holding forth on key topics.
The Solus magazine became the voice of the Ad Club and with the arrival of Wally Ovins as
president, the Ad Club revved up on the excitement. The Ad Club Ball, an annual
extravaganza, came to be one of the most talked about events and during the rest of the year,
skits performed by eminent ad cum theatre personalities kept the social clock ticking.
Interestingly, the media side of the business never featured in the plans because the media
was not considered a part of mainstream advertising in those days. Even though the Ad Club
was then considered elitist, since membership was restricted, amateurs saw it as an
opportunity to increase social contacts and actively supported it. So did the veterans, whose
exalted positions in the industry gave them the satisfaction of dispensing advice to upcoming
talent.
Things have changed over the years, most of them for the better. The signs are all there -- 33
per cent Asia-Pacific profits, a growth rate that's three times the nation's GDP, global
partnerships with the world leaders, and an acceptance of Indian professionals as amongst the
best. Besides the Abbys, so far its public face, the Ad Club is involved in a number of other
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1. As personal stimulation of demand for a product service or business unit by planting commercially significant news about it in a published medium or obtaining favorable presentation of it upon video television or stage that is not paid for by the sponsor .activities.2. Over the years. public relations. The object always is to bring to public notice some articles or service. 5 . The word advertising is derived from the Latin word viz. from across the country. "advertero" "ad" meaning towards and "verto" meeting towards and "verto" meaning. Hyderabad. This is possible. from the cry of the street boy selling newspapers to the most celebrate attention attracts device.1 INTRODUCTION: The objectives of all business are to makes profits and a merchandising concern can do that by increasing its sales at remunerative prices. media and research fields. Publicity makes a thing or an idea known to people. It is a general term indicating efforts at mass appeal. Simply stated advertising is the art "says green. it is arguably the busiest. marketing. the Ad Club is currently the largest and with over 1600 active members from the fields of advertising. it has become a catalyst in developing the industry by organizing seminars. advertising denotes a specific attempt to popularize a specific product or service at a certain cost. the Ad Club's house journal. "I turn" literally specific thing".On the other hand. was recently awarded the best house journal by the Journal of India Public Relations. if the product is widely polished to be audience the final consumers. Solus . 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". workshops and events enabling professionals and students to interact. channel members and industrial users and through convincing arguments it is persuaded to buy it. To those for whom size matters." Advertising is a general term for and all forms of publicity.

It performs the following functions: i) Promotion of sales ii) Introduction of new product awareness iii) Mass production facilitation iv) Carry out research v) Education of people 1. product and institutional advertising. goods or services by an identified sponsor. Advertising can also help to convince potential buyers that a firm’s product or service is superior to competitor’s product in make in quality. to introduce new product and new product features its uses its attributes. cosmetics. soft drinks and grocery products. 6 . The medium used are print broad cast and direct. in price etc.2.2. etc. A. home appliances. Advertising is also used extensively by maters of automobiles.. it can create brand image and reduce the likelihood of brand switching even when competitors lower their prices or offer some attractive incentives. non –prescription drugs. availability etc. 1. advertising may be classified into two categories viz. 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.2 Functions of advertising : For many firms advertising is the dominant element of the promotional mix particulars for those manufacturers who produce convenience goods such as detergent.3 Types of Advertising : Broadly speaking.American marketing association has defined advertising as "any paid form of non personal presentation and promotion of ideas.

images and benefits of their services and products. Its purpose is to create a frame of mind and to implant feeling favorable to the advertisers company. ice he seeks a quick response to the advertisement which may be to order the product by mail. If successful. Its assignment is to make friends for the institution or organization. or he may promptly purchase in a retail store in response to prince reduction during clearance sale. or mailing a coupon. 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. ii) Public relations institutional advertising is used to create a favorable image of the firm among employees. trended products in such a manner as to make the brands seam more desirable.Thus type of advertising usually promotes specific. It is used by business government organization and private non-business organizations to promote the uses features. Product advertising is subdivided into direct action and indirect action advertising. Other Types: The other types are as follows: i) Consumer advertising ii) Comparative advertising 7 . It is sub-divided into three categories: Patronage. he convinces buyers that his Operation entitles him to the money spent by them. The appeals to the Patronage motivation of buyers. D. public relations and public service. stockholders or the general public. iii) Public service institutional advertising wages public support. i) In patronage institutional advertising the manufacturer tells his prospects and Customer about himself his policies and lives personnel. Direct action product advertising wages the buyer to take action at once.

and that purpose its ethics. A good name is the breath of the life to an advertiser. 8 .2. and quicker and wider distribution leads to diminishing of the distribution costs. 5. The functions of advertisement. particularly product selling costs. b) Creates goodwill which loads to an increase in sales volume.iii) Reminder advertising iv) Reinforcement advertising 1. "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. d) Satisfied consumer demands by placing in the market what he needs. Information on a mass scale relieves the necessity of Expenditure on sales promotion staff. It ensures the consumers better quality of goods. Advertising : a) Creates and stimulates demand opens and expands the markets. It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. 4. c) Reduces marketing costs." 2. It increases demand for commodities and this results in increased production. It leads to cheaper prices. 3. may be discussion below: 1. It acquaints the public with the features of the goods and advantages which buyers will enjoy.4 Benefits : .

 Reasons for differences in advertising effectiveness. ad Promo amongst the retailers.6.  More attention is needed in making the advertisement more effective.  People act on emotions.3 SIGNIFICANCE OF THE PROBLEM:  Proper Media for advertisement should be selected based on target customers. 1.  Necessity of advertising effectiveness.1 SCOPE OF THE STUDY: The scope of the study is to understand:  Carbonated drinks Market share in Bangalore.  Advertisement should be attractive in all aspects.  Add Effectiveness and improvement in advertisement. Advertisements should touch on human desires and needs.  Understanding the Customer Attitudes and Preferences. By paying the way for large scale production and increased industrialization. 1.  Awareness level about the carbonated drinks TV. 9 . and offer solution to the problem.3. advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of unemployment problem. not on logic.

The first great barrier to better advertising is self-delusion. Agencies and clients alike often think that they know how to create and judge good 10 . in our heart-of-hearts.1.Pepsi  Independent variable – Advertisements and promotions Barriers to Great Advertising: Advertising testing could provide a reliable feedback loop and lead to much better advertising.3. that we know what good advertising is and that there is no need for any kind of independent. Most of us believe. but many obstacles stand in the way. objective evaluation.2 VARIABLES USED FOR THE STUDY:  Dependent variable .

or media mix that made the advertising effective? Generally. but they are almost always wrong.advertising. Also. some advertising works in a few weeks. and thwart efforts to objectively test their creative “babies. while other advertising might take many months to show positive effects. Was it message. and long-term (years later) effects that most of us might easily overlook in subsequent sales data.” 11 . No need for advertising testing. Even so. Few companies have the budget. In our experience. as noted. again. So. Moreover. Besides. marketing mix modeling does not help us evaluate the contribution of a single commercial but rather the cumulative effects of many different commercials over a long period of time. based purely on our own judgment. that it’s impossible to isolate the effects of media advertising alone. the accurate databases. advertising often has shortterm effects that sales data might reflect. sales data tends to be confusing and unreliable as an indicator of advertising effectiveness. they quickly lose interest in any objective evaluation. it is almost impossible to use sales data to judge the effectiveness of the advertising. Sure. we cannot tell you if a commercial is any good or not. and requires the building of pristine databases of sales information along with all of the marketing input variables. marketing mix modeling cannot answer these types of questions. A third barrier to better advertising is a pervasive tendency of many (but not all) advertising agencies to delay. or media weight. Unless the sales response to the advertising is immediate and overwhelming. just by viewing it. Case closed. once agencies and clients start to fall in love with the new creative. and the technical knowledge necessary to succeed at marketing mix modeling. after 40 years of testing advertising. A second barrier to better advertising is the belief that sales performance will tell if the advertising is working. Also. but it often takes millions of dollars and years of effort. Strangely. advertising agencies and their clients are just as inept at judging advertising as we are. sales data is of limited value when you make critical decisions about your advertising. or failed to work. It seems that none of us is smart enough to see advertising through the eyes of the target audience. undermine. marketing mix modeling does not tell us why the advertising worked. Because of these limitations. So many variables are beyond our control. we have opinions. and this delayed response can confound our efforts to read the sales data. the patience. Sophisticated marketing mix modeling is one way to measure these advertising effects on sales.

 These ads are built on emotion and feelings. and you can’t test imagery with standard advertising testing techniques. The belief that only the "creative’s" in the agency can create advertising—and the conviction that creativity is their exclusive domain—constitute a major barrier.  These are image ads. The results can upset the creative folks. The agency can lose control. The fourth barrier to more effective advertising is the big creative ego. with new media and new messages. Great advertising tends to evolve over time. fine-tuning. and tinkering—based on objective feedback from 12 . Some of our favorites:  There’s no time. so we’ll just have to skip the testing. The results can upset clients. Agencies can be quite creative in coming up with reasons to avoid copy testing. artful subtleties. but let’s remove those questions about purchase intent and persuasion from the questionnaire.  We’re in favor of testing. and none of the old copy testing measures apply any more. We can’t afford to change. and you can’t measure such delicate. We have to be on air in five days.  We have so much equity in this campaign that it doesn’t matter what the testing results are.  We are in a new age.Who wants a report card on the quality of their work? It’s very threatening. with lots of hard work.  We’ve already tested the ads with a focus group during the development process.

has not thought deeply about his brand and its future. Big egos create barriers because emotion is driving advertising decision making instead of logic. just copy the advertising approaches of the competition. and consumer feedback. big egos are not limited to advertising agencies. A seventh barrier to better advertising is client ineptness. had great advertising. To be fair. and success will surely follow. risk aversion. and inconsistency tend to be the hallmarks of these “agency killer” clients. The agency is left to guess and speculate about strategy. impatience. Big client egos can also be a barrier to good advertising. policies. in contrast. Needless to say. Arrogance. Big creative egos tend to resist such evolutionary improvements. and has not developed and tested strategy alternatives. This competitor was the industry leader in market share and profitability. Big egos lead to bad advertising. but we were able to persuade the client to test all major competitive commercials as a precaution before blindly copying the competitor’s advertising approach. The client tells the agency to go forth and create great advertising. and people tend to discourage the creation of great advertising. The client has not done his homework. Great advertising is rarely created in a strategy vacuum. A fifth barrier to better advertising is the widespread belief that one’s major competitors know what they are doing. The eighth and last barrier to better advertising is poor copy testing by research companies. The testing also revealed that another competitor. Some clients’ processes.target consumers. If the client cannot define a sound strategy. ignorance. reason. without providing any strategy guidelines. ambiguity. Research firm egos are yet another problem. Some systems are so expensive that the cost of testing exceeds the 13 . The client is most often at fault here. Bad clients rarely stimulate or tolerate great advertising. the client’s desire to copy the industry leader quickly vanished. Our testing quickly revealed that this industry leader was the industry leader in spite of its bad advertising. Many advertising testing systems are limited to a few markets (and cannot provide representative samples). The sixth barrier to better advertising is lack of strategy. Again. the responsibility for strategy falls squarely on the client. or having a poor strategy. We have seen great campaigns abandoned because agencies would not accept minor tweaks to the advertising. the agency cannot create great advertising. We recently had a client who was about to copy the advertising strategy of a major competitor. So.

For instance. each execution should be pretested among members of the target audience (pretesting refers to testing advertising before it is aired. while completely ignoring many other very important variables. then the campaign should be locked down. the more likely it is that great advertising will emerge. persuasion measures or recall measures? The truth is that both are important. the strategy should be locked down…and rarely changed thereafter. The client must carefully define the role of advertising in the marketing plan and set precise communication objectives for the advertising. When the term “testing” is used in this article. To judge the effectiveness of an ad. it is a shorthand term for “pretesting.value of the results. 14 . Creating Better Advertising: Given all of these barriers to better advertising. many different variables must be measured and considered simultaneously. Once a conceptual family of commercials is identified as the optimal campaign of the future. Testing the creative provides a reliable feedback loop that helps agency and client alike become smarter over time. Long-term continuity of advertising message is essential to maximizing effectiveness. or in combination. and/or before final production.”) The greater the number of executions pretested. not wishful thinking and self-delusion. Once strategy and positioning alternatives are identified and tested. Agencies are not miracle workers. based on facts. Research companies have been guilty of relying on one or two simplistic measures of advertising effectiveness. but of greater import is the fact that neither of these measures alone. The client must craft a sound strategy for its brand. agency. how can client. What exactly does the client want the advertising to convey. and research company work together to create more effective advertising? 1. As creative executions are developed against the strategy. to accomplish? Agencies are too often asked to create advertising in an informational vacuum. for several years research companies argued publicly over which was more important. measures advertising effectiveness. 2.

agency. It doesn’t matter that an ad increases short-term purchase interest if it will damage the brand’s quality reputation over time. It doesn’t matter that an ad has great persuasion if it does not register the brand name. and researchers) learns how to interpret the pretesting results for the category and the specific brand. Early-stage testing tends to be highly predictive of finished commercial scores. are not norms. 4. Build your own “action standards” over time. the “storyboard” or “animatic” stage) and also test at the finished commercial stage.3. The secret is to use one system over and over. rough indicators to help you get started with a testing program. Early-stage testing allows rough commercials to be tweaked and fine-tuned before you spend the big dollars on final production. all of the key variables must be put together intelligently to come up with a composite or overall measure of advertising effectiveness. 5. but not always.e. There is no perfect advertising pretesting system. If budget permits. test the advertising at an early stage in the creative process (i. long-term. Use the same pretesting system consistently. So.. but any system will help improve your advertising. But. but action standards 6. Think of the pretesting company’s norms as very crude. It doesn’t matter that an ad registers the brand name if no one will notice the commercial itself. as quickly as possible. all of the advertising effectiveness measures vary by product category and brand). so that everyone (client. Use a mathematical model to derive an overall score for each execution. you will begin to learn what works and what doesn’t work. What you are searching for. 15 . Testing the finished commercials gives you extra assurance that your advertising is “on strategy” and working. Some are better than others. develop your own norms for your category and your brand (yes. As you test every execution.

8. or give a 100% perfect solution every time. Client and agency need to accept that “continuous improvement” of the advertising is an important goal. 9. Read all of the open-ended questions carefully. We are not talking about changing the strategy or changing the campaign. the goal of advertising creative development. but do not become a slave to the mathematical model. Base your decisions on this comprehensive assessment of the results. The Power of Advertising: 16 . That is. but making sure that every execution is “on strategy” and working as hard as possible. Use the pretesting results as a guide. Make sure you really understand the underlying reasons. and the goal of advertising testing. is to identify the elements/ideas essential to advertising effectiveness.7. and leave yourself some wiggle room. Informed human judgment remains important. No model or system can anticipate every marketing situation. The ultimate goal of testing is an advertising success formula that works. as an indicator. This means that every execution is tested and tweaked based on scientific evidence from the target audience. and then to make sure that those elements/ideas are consistently communicated by all advertising executions.

Ill. The potential and the promise are too great. The great power of advertising is seldom achieved in practice. And the ad agency creative folks felt it was an objective way to think about consumer reaction to advertising ideas. attaching emotional values to the brand. etc. which was designed to offer researchers and clients a way to objectively evaluate consumer response to stimulus. The 4Cs structure enabled everyone at the table. And while there are undoubtedly thousands of books written.) and long-term power (conveying brand image. to understand the learning in a way that made sense.We believe in the power of advertising. building awareness. enhancing credibility. which makes the debrief session flow very smoothly. building positive reputation. clients follow consumer feedback easily by instantly assessing how the stimulus performs on each of the Cs. the power to influence the mind and shape destiny. The clients in the room appreciated the way we categorized the learning. Advertising has the power to persuade. Editor’s note: Isabelle Albanese is founder and principal of Consumer Truth Ltd. from sales people to promotion people to HR. I 17 . The ability to communicate clearly and to identify effective communication has never been more important than today in our hectic. When it comes time for the debrief. fragmented world.).. research firm. all of your clients have a consistent format for structuring feedback. etc. I’ve developed a simple framework called the 4Cs of Truth in Communications. Great advertising is a cloak of invincibility.. Using a template we’ve created. Having spent 16 years in the ad agency business working with creative’s. which is explored below. a Hinsdale. The 4Cs process was developed eight years ago for a presentation of insights to a new campaign idea for a venerated brand. based on thousands of studies in our archives. Advertising has short-term power (conveying new information. papers published and philosophies espoused about how to communicate effectively. The companies that master the creative guidance and the testing systems to consistently develop and deploy great advertising will own the future and the fortunes that go with it. but we can’t give up. It has the power to change markets and improve profit margins.

18 . many want to hear it. because sometimes marketers and advertisers seem determined to make consumers work exceedingly hard just to get the message. they provide clarity for ourselves and our clients. in theory. They form a model in which you ask a series of questions about how the consumer responded to stimuli.  Connection Questions: Does the message resonate with consumers? Is it persuasive? Does it communicate that the brand knows them simply by the way it is talking to them? Does it motivate purchase? These are all critical questions in determining the extent to which any form of communication connects with its intended audience. and a simple way to categorize consumer response. but not always easy to achieve.not always in a generous way . do consumers get it? The comprehension C is exactly what you think it is . How many times in showing advertising to consumers have you heard them say with frustration. In fact. although it is obviously quite fundamental to basic communication.  Comprehension Questions: Is the main message clearly communicated? Simply put. In the answers (as well as an understanding of how to use the model) lies the direction you and your client are looking for to move forward. credibility and contagiousness. On the surface. especially when it comes to listening to consumers evaluate . shampoo or insurance . No matter what category we’re delving into . “Please don’t make me work that hard.” They’re perfectly willing to listen to your message.” The 4Cs are: comprehension. Simple. this is a simple assessment of whether the intended message is being understood. They just don’t want to work hard to get it.can tell you this was a personal victory! They are not easy to please. Together they capture what everyone connected with the project needs to know about consumer response to stimuli. connection.their “babies.there’s no hidden meaning or great deal of explanation necessary.consumers are basically saying to us. “What are they trying to say to me?” Consumers just don’t have the time. I am very busy. Separately.from ice cream to clothing to coffee.

Of course. Connecting with the consumer means you have begun to establish a relationship with them via your communication. something which is not entirely rational: frustration. sadness. so it’s no longer advertiser talking to customer or politician to voter. real-life situations. or at the very least. anger. we were aiming to communicate a completely new message based on a new positioning and tapping into a newly-discovered consumer truth. if you hold a mirror up to someone they are likely to say “I can see myself!” So what? That doesn’t necessarily mean they like what they see. excitement. All were very plausible. and it usually always extends deep downward to something emotional. • In the hallway helping her young daughter get her boots on. happiness. joy. etc. Four print ads depicted “mom” (the target) in various family situations: • In the kitchen multitasking by making a PB&J sandwich while having a phone conversation . And how valuable is that? It means something you said or showed to them has resonated .Connection is often an emotional response . you say. are moved emotionally or otherwise motivated by that image. To be 19 . whether that’s in a rational or irrational way . So much so that I feel that the message is speaking directly to me on a personal level. The message somehow has tapped into an existing consumer truth for them in their lives relative to the subject. passion.and so the communication resonates too. A genuine rapport has been established. it’s a message from someone who really knows me and understands what matters to me. I once worked on communications evaluation for a Suave hair care campaign. • In her daughters’ bedroom playing dress-up.something that is felt but can’t be explained.with her kids all around her doing various real-life kid-type things. •In the bathroom sitting on a (closed) toilet and helping her three-year-old with potty training while her four-year-old is brushing his teeth. At the time.has reached them on some internal level. resignation.

• Who: Does it make sense for your brand to speak to its audience in this way? Does it logically fit.. The audience needs to believe who is saying it (e.  Credibility Questions: Does it make sense for the brand to speak to consumers in a certain way? Is the tone and manner consistent with the brand’s position in consumers’ “brain space” based on their experience with and understanding of the brand’s equities and promises? How do you know? If the message isn’t credible. the 4th C) to make up for too-smooth a fit. it’s meaningless. • How: An unexpected message or delivery can bring a lot of energy and attention to your brand. it could likely get glossed over or even ignored outright. brand-relevant part . what is being said and how it’s being said. the brand’s voice). it did mean that. If it’s something expected. if it doesn’t conform to the brand’s (or cause’s or platform’s) truth. It may fit.g. that’s me and that’s me!” The connection wasn’t made simply because she could see herself in those situations . She was able to connect with the message that even though I’m a mom and have a crazy.sure.and here’s the interesting. but if it’s just “same-old. especially if its history or heritage or equity gives it permission to speak in this way. 20 . “That’s me. these ads met all client hurdles for attention. And the Suave hair care brand experienced share and sales growth. communication and motivation. literally as she pointed to each one of them.” there better be enough going on in the areas of communication and connection (and contagiousness. But in this case. given the equity your brand has developed among its core target and in the marketplace as a whole? • What: Is it something your audience expects from this brand? This could be good and bad. using Suave can help me look good! And the beautiful epilogue to this story is that in subsequent quantitative ad testing. chaotic mom life.it was made because she saw that each of the moms depicted had great-looking hair. that’s me. Otherwise any connection previously established immediately begins to break down. One mom looked at those four ads and said. branding. And I really mean immediately.

it must make sense for your brand’s message to be communicated in that particular way. It’s the fiber of their brand. it removes a potential obstacle to comprehension. The point is. In fact. it can still be powerful if marketplace conditions and consumer attitudes make it acceptable anyway. It’s also a way to get disparate constituents (brand clients.) on the same page relative to evaluating consumer feedback . It can lead to better creative executions and stronger business result. etc. It’s either going to work for consumers or it isn’t. 1. applying the 4Cs can help identify if it really rocks and why. it becomes credible because your audience can see a way to make the message fit. For a message to really drive the credibility train. Most clients know their own brand truth.4 OBJECTIVES OF THE STUDY: The long term objectives of advertising are broad and general. ad agencies. when it’s instantly credible. They don’t usually look at an ad or package or concept which is delivering a credible brand message and say “Yes. Not a trace of doubt in my mind. connection and contagiousness. credibility leads to believability and believability leads to persuasion and persuasion leads to action. or where it needs help to keep from sinking like a rock. It gets an immediate head-nod. consumers don’t even think about it. That counts too. It’s been built up and ingrained in consumers’ brains and psyches over time. So even if it’s not instantly credible.something that can always be a challenge. credibility of the message is not an issue.  Immediately actionable No matter what the stimulus. that is a believable message from that brand.Or even if it doesn’t. The method is immediately actionable you can use it in your very next project that involves stimulus exposure.” In most of the work we do. consumer insights clients. When credibility is there. and concern the 21 . The simplicity of the framework is its power. The credibility C is all about your brand’s truth. it is easy to remember and easy to use.

Most companies regard advertising main objective as hat of proving support to personal selling and other forms of promotion.  To combat or neutralize competitors advertising. Pepsi has stayed in this market for almost one century.  To acquaint buyers and prospects with the new uses of the product (to extend the PLC).  To improve the moral of dealers and/or sales people (by showing that the Company is doing its share of promotion). These objectives are following:  To do the entire selling job (as in mail order marketing). a price change.4.  To publicize some change in marketing strategy (e. But advertising is a highly versatile communications tools and may therefore be used for achieving various short and long term objectives.e.. Now no one doesn't know the 22 .1 ADVANTAGES OF PEPSI COLA:  Firstly.  To provide rationalization (i.Contribution advertising should make to the achievement of overall company objectives.  To force middlemen to handle the product (pull strategy).g. 1.  To introduce a new product (by building brand awareness among potential buyers). So they are so experienced and stationed in people's mind deeply.  To remind users to buy the product (retentive strategy).  To build brand preference by making it more difficult for middleman to sell Substitutes). a new Model or an improvement in the product). socially acceptable excuses).

brand Pepsi-Cola Whenever the name Pepsi is heard. Which has a basic of a great fund. Pepsi company also produce the Diet-Cola to meet the people who more concern their health. 1. So it has the ability to place a Idle sum of money to the promotion. This is the biggest advantage of Pepsi Company. And it just changes the design of the package of Pepsi-Cola. cool and fresh but also have a competitive price in Chinese market* Sometimes Pepsi-Cola even has a lower price than Coca-Cola In China. flavor and also package promptly in order to satisfy the consumers' need.  Pepsi also compares with the competitors and find their disadvantages to update its own quality. Pepsi-Cola is not only in high quality. We can see that the advertisement of Pepsi-Cola is so attractive.4. people will conjure up the image of fresh and cool drink.  Thirdly. Pepsi is such an experienced powerful global company. It also invited the top famous people to advertise for it.  Secondly.  So you can see from the pipe-chart one that 41% of the interviewees prefer the flavor of Peps-Cola. The advertisement is so elaborate and attractive so that Pepsi gained the special prize of the advertisement Granny. It is the most popular one.2 DISADVANTAGES OF PEPSI COLA: 23 .

It has only 32% people prefer the package of Pepsi-Cola. Still there are some disadvantages existing in Pepsi-Cola The pipe-chat 3 showed that most of the people like the package of Coca-Cola best. Although Pepsi-Cola have won several times during this competition. all of us know that Pepsi-Cola and Coca-Cola have had the competition for about 80 years. There are still some people who do not like the taste of the cola.As to the threats. And these local cola's flavor is more suitable for Chinese. the market share of Pepsi-cola is a little bit smaller than Coca-Cola. It still needs to be improved. So it cannot be ignored.  . 1.48% people like it. So the design of Pepsi-Cola's package is not as attractive as Coca--cola.Although in the cola market there are many competitors. So we can try to provide some other taste of cola such as adding some lemon juice. But we cannot consider things just on one side. There is another threat nowadays. We can change the flavor in order to meet different taste of different people. We suggest that the package needs to be designed more colorful to attract people's attention.5 LIMITATIONS OF THE SUDY: 24 . It is well known that China is a united and patriotic nation.  . Some local cola such as FeiChang and FenHuang cola have taken their feet in the market. Their advertisement says "Chinese people drink our own cola". Most of the end user is young people. Pepsi still has the opportunity to enlarge its market share because the cola in the market is quite monotonic. So these words can really catch Chinese people's heart.

Customers give very unclear picture. The project is mainly on the primary data. views. The study is based on Limited Sample. perception and nature. 2. 1. 4.1. 1.6 FORMULATION OF WORKING HYPOTHESIS: Ha: There is a significant impact of advertisement on the consumption of carbonated drinks in Bangalore. The data collected from consumers is quantitative in nature i. The factors may change from time to time.e.7 REVIEW OF LITERATURE: 25 .. 3.

In literature and practice the evaluation of advertising effectiveness has used two basic models: 26 . marketing policies. to find the reasons of a wrong perceived meaning. too often neglected by the doctrine and operators in the communication process. Advertising effectiveness can be defined as the extent to which advertising generates a certain desired effect.) and environmental variables (competition.1. not always. financial decisions etc.). hardly isolable. The aim of the paper is to propose a simple approach to monitor and control the encoding phase. if necessary.  the effects of advertising are varied and not always translatable into quantitative terms.  Advertising causes long-term effects. we should seek to develop and apply methods and measures for a partial verification of results. given the amount of investments needed for advertising. we believe that it is due essentially to the following considerations:  advertising interacts with other business variables (behavior. therefore. economic conjuncture etc. the results occur in the same period in which are the costs. The object of investigation is the verbal text of the spot in order to verify the level of understanding of the message and. The paper is discusses a possible methodology to investigate the degree of coincidence / discordance between what is conveyed through the advertising and what is actually understood by some consumers. Measuring the effects of advertising is very important. Regarding the difficulty of measuring the overall effectiveness. While it is not possible to obtain a global measure of the advertising effectiveness.

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

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

1993. 1990). sometimes.e. observing the effects on the formation process of attention. It also allows to consider all hypotheses tested together. The affective attitude towards the images proposed and the spread opinion of consumers is 29 . or identification of the advertising. brand allocation. recognition. For these reasons. 1982). Namely the analysis of cognitive dimension concerns the messages understanding and storing and must take account of different types of memory: spontaneous recall. without any added indication. The affective dimension is linked to the attitude toward and perceptions of communication. Marbach and Fabi 2000). related memory. cognitive affective and behavioral (Brasini et al. that is difficult to control in reality.The socio-psychological approach takes simultaneously into account the message and the recipient of the message. and all the links that may exist between variables. Rather than focusing solely and exclusively on direct effects of certain variables taken individually. sales. the memory not only of the advertising but also of the advertised brand). the threedimensional models (i. The major criticisms to the dichotomous model concern the partial evaluation and the inability to provide reliable breakdowns of the effects achieved by advertising and by other company politics (marketing and communication). facilitated by the presentation of certain evidence. getting an advantage in terms of validity of the research. stimulated recall. memory. when respondents are able to describe at least one specific element of the communication. through a pre-test. The experimentation is widely used. AIDA model and model Dagmar) are preferred. This research methodology considers the environment of the communication process and its actual interactions. Affective reactions and emotional acceptance of that type of campaign are investigated. this approach studies the actual contribution of these variables in explaining the evolution of the dependent variable. This approach aims to study the effectiveness of advertising in terms of persuasiveness (Ray. They propose a hierarchy of communication effects. attitude and behavior (Kapferer. These models are used both in planning advertising campaigns and evaluating their effectiveness.

.The behavioral dimension describes changes in buying behavior. frequency. detectable by intentions and actions measured by sales and market share. etc. advertising effectiveness is described as being "a hierarchy 30 . behaviors. etc.detected.) They totally omit other elements (source. All the models mentioned so far are mainly focused on three elements of the communication process: The recipients (in terms of audience. However.. but what was actually communicated.. 2. it becomes important to examine not so much and not only what the firms wanted to communicate. Otherwise. opinions. not what it was intended to understand.) The feedback (in terms of attitudes. memory. since as stated by Watzlawich the message is what we understand. Generally. Moreover a fundamental element for an effective communication process is the use of the same code by the source and recipient. the recipient will not understand the message or give a different meaning and this will lead to the phenomenon Eco called "aberrant decoding". storage) The media used (in terms of impact. context) assuming essentially that the communication process was conducted in optimal conditions or at least without distortion. code. coverage. Levy and Malaviya (1999) indicated that effectiveness of advertising is "persuasion does not rest within advertising messages per se and it depends on certain mental processes that as ad recipient invokes".

In the study. For instance. 2000). In the other word. According to the previous research. they established that web characteristics influence the effectiveness of internet advertising. Numerous of measures have been suggested to empirically evaluate internet advertising effectiveness however there are lack of research focus on the consumer characteristics.of effects" (Vakratas and Amber. Many literatures have detailed evidences that web characteristics influenced the effectiveness of advertising. they mentioned how the effects and effectiveness of advertising are evaluated and various measures are interpreted which is associated with the role of consumer. Bruner and Kumar (2000) studied the components of web page as well as web design and similarly Cho (1999) studied on the advertising content design. In their research. the role of consumer in determining the effects and effectiveness of advertising is highlighted as a result of growing interactive advertising (Pavlou and Stewart. they revealed the relationship between web characteristics and effectiveness of internet advertising. 1999). changes of consumer perceptions by the information in the advertisement will lead to a change in their behaviors. Based on their findings. 31 . The research examined the consumer characteristics towards effectiveness of internet is limited consequently the influence of consumer characteristic will be the central attention of this research. There are a variety of studies conducted by researchers focusing on effectiveness of internet advertising and the practitioners have long sought to understand how internet advertising works.

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

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

1999). Similarly. O'Connell (2001) claimed that the internet advertising failed to communicate brand building information and did not connect to any meaningful results such as sales and profits..g. or the type of endorser (e. banner advertising is negligible in its effectiveness (Green and Elgin. et al. Researchers study such things as the effect of humor in the ad (e. The effectiveness of internet advertising will be revealed in this study by examined the consumer characteristics in detail.g. Weinberger & Gulas. & Bliss. Besides. Ducoffe (1996) identified that irritation as one of the determinants that affect consumer attitudes which in turn affect the effectiveness of advertising.. Studies on the effects of advertising predominantly focus on the intrinsic characteristics of the ad. these internet advertising is able to create awareness but does not ensure effectiveness.g. Moreover. 4. appeals to fear (e. in the study done by Goldsmith and Lafferty (2002) indicated that banner advertisement may get lost in the clutter while pop-ups and interstitials are seem to be interfering. the response to internet advertising is similar to other media advertising (Schlosser. 1996. this study is carried out for a better authentication. insufficient useful information and the information appeared to confuse the consumers (Mathews. Till & Shimp. Van der Lee.that the empirical evidence show consumers respond to the internet advertising is in the identical way when respond to the more traditional media. 1999) yet internet advertising has the exemption that is easy to ignore (Drèze and Hussherr. Van der Lee & Van den Putte. Additionally. 1998). 34 . 1998. many researchers claimed that internet advertising is not effective due to web based banner with low click through rates. 2001). Therefore. Snipes. several studies have been carried out to examine this issue. 2001). LaTour. For instance. It will focus on the consumer characteristics that influence and affect the effectiveness of internet advertising. 1992). Findings showed that the most common internet advertising. In order to clarify the ambiguity of internet advertising effectiveness.. 2000).

which indicates an unsystematic literature search and therefore biased conclusions. 1999). 1985). however. because ads are not received in a vacuum by a passive audience. 2002). this body of research has not yet led to an unequivocal understanding regarding context effects. 1991. A Systematic and integrated synthesis of existing research findings might provide a solution to this problem. propose a negative relationship between the intensity off a response to a program and memory for embedded commercials. since different context characteristics have been studied. two narrative reviews of literature (Schumann & Thorson. Palmgreen.g. Too date. Smith. differed effect measures have been taken. the environment in which the ad is embedded may play an important role in explaining its success (O' Guinn & Faber. Pavlou. 35 .g. the two studies come to contradictory conclusions.It is. Schumann and Thorson(1990). 1998) Have been published. several advertising researchers have shown that audience characteristics play an important role in understanding advertising effectiveness (e. 1990.. Stewart. However. Basing their work on the uses and gratifications paradigm of media use (e. The influence of context on advertising effects has been a topic of research since the early sixties and a significant number of studies have investigated this relationship. 1987) and one quantitative meta-analysis (Mattenklott. Singh & Churchill. & Rosengren. Furthermore. and since there is no agreement about the direction of the relationships found.. on the other hand. The narrative Reviews explore a restricted number of relationships between context characteristics and advertising effects. Likewise.. generally agreed that advertising effects are not just a function of the ad itself. Wenner. The reviews base their conclusions on different studies. Singh and Churchill (1987) contend that a commercial Appearing in a program inducing high arousal generates better processing and therefore greater commercial recall and recognition. & Ward. but these do not provide a general overview.

and in what ways. we want to identify gaps in present research on advertising in order to give direction to future research.Mattenklott's (1998)) quantitative meta-analysis was based on a systematic literature search. but this study only discusses experimental research in a television setting and is restricted to the relationships between just two contextual variables and two advertising effects. 5. but it is based on testing thousands of ads over several decades. as a whole. Thomas The advertising industry. 36 . has the poorest quality-assurance systems and turns out the most inconsistent product (their ads and commercials) of any industry in the world. This might seem like an overly harsh assessment. By systematically comparing studies. In our experience. that is. Finally. Jerry W. which specific ad effects are affected by the context. only about half of all commercials actually work. The aim of this study is to provide a structured and integrated review of all the empirical literature on the relationship between context characteristics and advertising effects. we want to determine which aspects of the context play the most important role in determining ad effects.

no one—not agency or client—knows if the advertising is any good. yes. Moreover. some of the feedback is confusing and misleading: agency and client preferences and biases. First. the advertising industry receives little objective. how can the next commercial be any better? Second. out-of-stocks. reliable feedback on its advertising. etc. If no one knows when a commercial is good or bad. How could these assertions possibly be true? Don’t advertising agencies want to produce great ads? Don’t clients want great advertising? Yes. Unlike most of the business world. according to some estimates). Third. but they face formidable barriers.have any positive effects on consumers’ purchasing behavior or brand choice. feedback from dealers and franchisees. So. a small share of ads actually appears to have negative effects on sales. promotional influences. weather. once the advertising goes on air. pricing variation. economic trends. they do. sales response (a potential feedback loop) is a notoriously poor indicator of advertising effectiveness because there is always so much “noise” in sales data (competitive activity.). or why. 37 . complaints from the lunatic fringe. few ads and commercials are ever tested among consumers (less than one percent. and so on. the opinions of the client’s wife. which is governed by numerous feedback loops.

CHAPTER -2 RESEARCH METHODOLOGY AND DATA COLLECTION 38 .

1 Concept of Research Methodology The research is the organized way of enhance knowledge by undertaking certain methodology and the methodology is certain theoretical structure to conduct the research. It is based on observable experience or empirical evidence. the resources for the research like time. The research is a multi-step process to formulate and clarify the topic.2. It is objective. evaluation and methods those are used by the researcher (Creswell. 2009). 2. It aims at describing interpreting & explaining a phenomenon. 39 .. logical. It is not a mere compilation but a purposive investigation. rules. review of literature. Ghauri and Gronhaug (2005) defined the word ‘systematic’ is the logical relationship of research rather than just a philosophy. It adopts a scientific method. design the research. On the other way Jankowicz (2005) defined the method as a systematic approach of collection and analysis of data so that information could be gained from data. principles or theories. Research is directed towards finding answers to pertinent questions It emphasizes the development of generalization. To come out with a successful result from the research it is important to employ the effective and the efficient methodology for data collection from both the primary and secondary sources. However. It is systematic & critical investigation into a phenomenon. RESEARCH METHODOLOGY AND DATA COLLECTION: Research provides the knowledge and skills needed for the fast-paced decision-making environment. fund and access to information influence the decision for choosing the methodology for the research. applies possible tests & arrives at conclusions. 2010). collect and analyze data and write up (Saunders. But the researcher must ensure that the selected methodology is the most appropriate and practical for the research under some particular circumstances. et al. Methodology could be defined as the analysis of principles.

40 . Research Design: The research design is the blueprint for the fulfillment of objectives and answering questions.  Descriptive Research : It is used in this study as the main aim is to describe characteristics of the phenomenon or a situation. It is a master plan specifying the method and procedures for collecting and analyzing needed information.

2. Samples can be either probability samples or non-probability samples. The researcher must decide the way of selecting a sample.2. 2. Newspapers. Magazines & Internet.2 Data Collection Methods: The source of data includes  Primary data sources  Secondary data sources.5 Sampling Technique:  Convenience 41 . Primary Sources: Primary data has been collected directly from sample respondents through questionnaire and with the help of interview.4 Sample Design: Sample design is definite plan determine before any data is actually obtaining for a sample from a given population.3 Research Instrument:  Research instrument used for the primary data collection is Questionnaire. Secondary Sources: Secondary data has been collected from standard textbooks. 2.

CHAPTER -3 DATA ANALYSIS AND INTREPRETATION 42 .

Do you like to take carbonated drinks? Particulars No.3. ANALYSIS: 97% of respondents like carbonated drinks whereas 3% of respondents do not like the carbonated drinks. DATA ANALYSIS AND INTREPRETATION 1. 43 . of Percentage yes No Total respondents 97 3 100 97% 3% 100% 3 YES NO 97 INTREPRETATION : here. maximum number of respondents like the carbonated drinks and minimum number of respondents does not like the carbonated drinks.

How frequently you take carbonated drinks? particulars Once in a day Twice a day More than once Not regular Total No. 37% of respondents like to consume more than once in a day . 3.2. ANALYSIS: Here. Have you seen the advertisement which you like the most? 44 . 34% of respondents consume twice a day . 22% of respondents consumes only once in day and 6% of respondents are not regular in consuming carbonated drinks. maximum number of respondents consume carbonated drinks more than once and minimum respondents are not regular in consuming carbonated drinks. of respondents 22 34 37 6 100 6 22 Percentage 22% 34% 37% 6% 100% Once in a day Twice a day 37 More than once 34 Not regular INTREPRETATION : here.

4.particulars Yes No Total No. Through which media you have seen the advertisement? 45 . 70% of the respondents seen the advertisement which they like the most and 30% of the respondents do not seen the advertisement which they like the most. of respondents 70 30 100 70 100 Percentage 70% 30% 100% Yes No Total 30 INTREPRETATION : Here. the maximum number of respondents seen the advertisement which they like the most and minimum number of respondents do not seen the advertisement which they did not like the most. ANALYSIS: Here .

the maximum number of respondents seen the advertisements through newspapers and minimum number of respondents seen through other media. 5. of respondents Percentage 46 .particulars TV Magazine Newspapers Others Total No. 44% of the respondents see the advertisement through newspapers. 37% of respondents through TV. ANALYSIS: Here . Do you think advertisement is necessary for the sale of cold drinks? particulars No. 17% of respondents through magazine and 1% of respondents through other media of advertisement. of respondents 37 17 44 1 100 Percentage 37% 17% 44% 1% 100% 1 37 TV Magazine 44 Newspapers Others 17 INTREPRETATION: Here .

Do you think that advertisement has forced you to consume product more? particulars Yes No No. 29% feels it is necessary. 6. 21% of respondents feel it is not necessary and 1% of respondents feels can’t say based on advertisement. ANALYSIS: Here. the maximum number of respondents feels advertisement is very necessary for the sale of the cold drinks and minimum number of respondents feels can’t say based on advertisement.Necessary 29 29% Very necessary 48 48% Not necessary 21 21% Can’t say 1 1% Total 100 100% 21 1 29 Necessary Very necessary Not necessary Can’t say 48 INTREPRETATION: Here. of respondents 77 23 Percentage 77% 23% 47 . 48% of the respondent’s feels advertisement is very necessary for the sale of cold drinks.

Total 100 100% 23% Yes No 77% INTREPRETATION: Here. the maximum number of respondents feels that advertisement has forced them to consume product more and minimum number of respondents feels advertising is not forcing them to consume more product. 77% of the respondents feels advertising driven them to consume more product and 23% of respondents feels advertisement does not drive to consume product more. of respondents 22 31 Percentage 22% 31% 48 . 7. Which reason you find for the difference of the advertisement effectiveness? particulars Education Likings No. ANALYSIS: Here.

22% of respondents thinks education and only 6% of respondents feel level of development is the reason for difference in the advertising effectiveness. 8.Standard of living Level of development Total 6 40 6 100 22 40% 6% 100% Education Likings 40 Standard of living 31 Level of development INTREPRETATION: Here. 31% of them feel likings. 40% of respondents feel standard of living. ANALYSIS: Here. maximum number of respondents feels standard of living is the reason for difference of advertising effectiveness and minimum respondents feels level of development is the reason. Is the study of effectiveness would contribute in improvement in current advertisement? particulars Yes No Total No. of respondents 84 16 100 Percentage 84% 16% 100% 49 .

16% Yes No 84% INTREPRETATION: Here. the maximum number of respondents feels study of effectiveness contribute in improvement in current advertisement and minimum number of respondents feels it is not necessary. What do you think the use of study of effectiveness is for whom? particulars For company For employees For customers None of the above Total No. of respondents 43 15 39 3 100 Percentage 43% 15% 39% 3% 100 50 . 84% of the respondents feel study of effectiveness contribute in improvement in current advertisement and 16% of respondents feel it is not necessary. 9. ANALYSIS : Here.

ANALYSIS: Here. of respondents Percentage Very good 28 28% Satisfactory 54 54% Poor 16 16% Very poor 1 1% Total 100 100% 51 . 10. 39% thinks for customers. How do you find the taste of Pepsi jeera? particulars No. 15% for the employees and 3% for none of the above options. maximum number of respondents thinks that study of effectiveness is for the company and minimum respondents think that none of the above option is useful.3 For company 43 39 For employees For customers None of the above 15 INTREPRETATION: Here. 43% of respondents thinks study of effectiveness is for company.

16

1
28

Very good
Satisfactory
Poor
Very poor

54

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

No. of respondents
32
60
6

Percentage
32%
60%
6%

dissatisfied
Highly dissatisfied
Total

2
100

2%
100%
52

6 2
Highly satisfied

32

Satisfied
Neither satisfied nor
dissatisfied
Highly dissatisfied

60

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

No. of respondents

Percentage

Yes

67

67%

No

14

14%

Can’t say

2

2%

Not necessary

11

11%

Total

100

100%

53

2

11
Yes

14

No
Can’t say
Not necessary

67

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

No. of respondents

Percentage

Yes
No

49
9

49%
9%

Can’t say
Not necessary
Total

38
1
100

38%
1%
100%

54

1
Yes
38

No

49

Can’t say
Not necessary

9

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

No. of respondents

Percentage

Because it has film stars

1

1%

Because of good music

37

37%

It’s theme and making is

61

61%

Any other reason

1

1%

Total

100

100%

appealable

55

ANALYSIS: Here. 1% of them say because it has film stars and 1% feels may be any other reason.Because it has film stars 11 Because of good music It’s theme and making is appealable 37 61 Any other reason INTREPRETATION: Here. Which flavor of the cold drink you like the most? particulars No of respondents Percentage Cola 63 63% Jeera 12 12% Lemon 21 21% Others 4 4% Total 100 100% 56 . 37% of them feel because it has good music. maximum number of respondents says they like advertisements because of it’s theme and making is appealable and minimum number of respondents feels because it has film stars and may be any other reason. 61% of respondents like advertisements because of its theme and making is appealable. 15.

of respondents Percentage Yes 83 83% No 17 17% Total 100 100% 57 .4 21 Cola Jeera Lemon 12 63 Others INTREPRETATION: Here. 16. Do you think Pepsi jeera is good for health? particulars No. 12% likes jeera and 4% feels other flavors. ANALYSIS: Here. 21% likes lemon flavor. maximum number of respondents likes cola flavor and minimum number of respondents like others.63% of respondents like cola flavor.

Do you think consuming of carbonated drinks for children below the age of 8 is harmful? particulars No. the maximum number of respondents feels pepsi jeera is good for health and minimum number of respondents says it is not good for health. of respondents Percentage Yes 75 75% No 25 25% 58 . 83% of respondents feels Pepsi jeera is good for health and 17% of respondents says it is not good for health. ANALYSIS: Here.17% Yes No 83% INTREPRETATION: Here. 17.

18. maximum number of respondents feels consuming of carbonated drinks for children below the age of 8 is harmful and minimum feels it is not harmful. Do you think both youth and senior citizens prefer to consume cold drinks? 59 .75% of respondents feels consuming of carbonated drinks for children below the age of 8 is harmful and 25% of them feels it is not harmful.Total 100 100% 25% Yes No 75% INTREPRETATION: Here. ANALYSIS: Here.

35% says no. ANALYSIS: Here. 4% feels not necessary and 3% feels can’t say.58% of the respondents feels both youth and senior citizens prefer to consume cold drinks. maximum number of respondents feels both youth and senior citizens prefer to consume cold drinks and minimum respondents feels can’t say.particulars Yes No Not necessary Can’t say Total No. 60 . of respondents 58 35 4 3 100 Percentage 58% 35% 4% 3% 100% 43 Yes No 35 58 Not necessary Can’t say INTREPRETATION: Here.

cola enjoy and 3% likes yara da tashan. Slogan of the cold drink which you like the most? particulars No. 16% likes Jo chahe ho jaye. ANALYSIS: Here. coco . coco - 16 16% cola enjoy Taste the thunder 19 19% Yeh dil mange more 62 62% Yara da tashan 3 3% Total 100 100% 3 16 Jo chahe ho jaye.62% likes Yeh dil mange more.cola enjoy 19 62 Taste the thunder Yeh dil mange more Yara da tashan INTREPRETATION: Here. 19% likes taste the thunder. of respondents Percentage Jo chahe ho jaye. 61 . maximum number of respondents like the slogan yeh dil mange more and minimum likes yara da tashan. coco .19.

5 One Two 26 14 More than two None INTREPRETATION: Here. How many advertisements you seen are of the most likely cold drink by you? particulars No. ANALYSIS: 50% of respondents says one time. 26% says twice. 14 % says more than twice and 10% says none. 62 . of respondents Percentage One 50% 50% Two 26 26% More than two 14 14% None 10 10% Total 100 100% 10 0. maximum number of respondents watched the advertisements that are most likely cold drink by them and minimum number of respondents feels none of the advertisements are most likely cold drink by them.20.

CHAPTER.4: OBSERVATIONS (OR) DISCUSSIONS 63 .

1 ANALYSIS AND INTREPRETATION OF LIKERT SCALE : 1.4. OBSERVATIONS 4.Which are the factors that affect your purchase decision? Factors strongly agree agree neutra disagre strongly l e disagree Total advertisement 45 20 15 15 5 100 Price 35 25 20 20 0 100 Flavour 37 23 8 12 20 100 brand ambassador 25 35 10 15 15 100 packaging 21 34 23 12 10 100 Brand 57 33 7 3 0 100 64 .

either advertisement is essential or it may not be essential. 20% agree with the above statement. 65 . 15% feels neutral i. the maximum number of respondents feels advertisement is necessary for the purchase decision of carbonated drinks and minimum respondents feels advertisement is not a main factor. ADVERTISEMENT: advertisement strongly agree 5 agree 15 neutral 45 15 disagree strongly disagree 20 INTREPRETATION: Here.1. 45% of the respondents strongly agree that advertisement is the main factor that affect purchase decision..e. ANALYSIS: Here. 15% of respondents disagree and 5% of respondents strongly disagree that advertisements are not the main factor for purchase decision.

ANALYSIS: Here. PRICE price strongly agree agree 20 35 neutral disagree strongly disagree 20 25 INTREPRETATION: Here. maximum number of respondents feels price is the main factor for that affect purchase decision and minimum respondents feels price is not a main factor. 20%of respondents says neutral. 66 .2. 35% of the respondents strongly believes price is the main factor. 20% of respondents disagree and 0% of respondent strongly disagree that price is not a main factor. 25% of respondents agree.

ANALYSIS: Here. 23% of respondents agree with the above statement.3. 8% of respondents give neutral opinion. 37% of respondents are strongly agree that flavor is the main factor that affect the purchase decision. 67 . FLAVOR flavor strongly agree agree 20 37 neutral disagree 12 strongly disagree 8 23 INTREPRETATION: Here. the maximum number of respondents feels flavor is the main factor that affect the purchase decision of carbonated drinks and minimum number of respondents feels neutral in their opinion. 12% are disagree and 20% of the respondents are strongly disagree.

maximum number of respondents agrees that brand ambassador also affect the purchase decision and minimum respondents are disagreed and strongly disagreed.4. ANALYSIS: Here. either brand ambassador may affect the purchase decision or it may not.. BRAND AMBASSADOR: brand ambassador strongly agree 15 25 15 agree neutral disagree strongly disagree 10 35 INTREPRETATION: Here.e. 10% of respondents says neutral i. 35% of respondents agree. 68 . 25% of respondents strongly agree.15% of respondents disagree and 15% of respondents strongly disagree with the above statement.

PACKAGING packaging strongly agree 10 12 21 agree neutral disagree 23 strongly disagree 34 INTREPRETATION: Here.12% of respondents are disagree and 10% of respondents are strongly disagree. ANALYSIS: Here. 23% of respondents says neutral i. 21% of respondents strongly agree.4. 34% of respondents are agree that packaging is also main factor. packaging may be or may not be the main factor.. 69 .e. maximum respondents agree that packaging is also a main factor that affects purchase decision and minimum respondents are strongly disagree.

ANALYSIS: Here. 33% of respondents agree. 7% of respondents says neutral. maximum number of respondents are strongly agree that brand is the main factor that affect the purchase decision of carbonated drinks and minimum respondents are disagree that brand is not a main factor. 3% of respondents disagree and 0% of them are strongly disagreed with the above statement. BRAND brand strongly agree 7 3 agree neutral 33 disagree 57 strongly disagree INTREPRETATION: Here.5. 70 . 57% of the respondents are strongly agree that brand is the main element.

CHAPTER -5: SUMMARY OF FINDINGS 71 .

 35% of the respondents strongly believes price is the main factor.5. 12% likes jeera and 4% feels other flavors.  63% of respondents like cola flavor.  58% of the respondents feels both youth and senior citizens prefer to consume cold drinks. 20%of respondents says neutral. 35% says no. 29% feels it is necessary.25% of respondents agree.  77% of the respondents feels advertising driven them to consume more product and 23% of respondents feels advertisement does not drive to consume product more.  83% of respondents feels pepsi jeera is good for health and remaining feels it is not good for health. 21% likes lemon flavor. 4% feels not necessary and 3% feels can’t say. 20% of respondents disagree and 0% of respondent strongly disagree that price is not a main factor. FINDINGS BASED ON THE SURVEY:  48% of the respondent’s feels advertisement is very necessary for the sale of cold drinks. 72 . 21% of respondents feels it is not necessary and 1% of respondents feels can’t say based on advertisement.

73 . 1% of them says because it has film stars and 1% feels may be any other reason. 61% of them feels they like advertisements because of it’s theme and making is appealable.  84% of the respondents feels study of effectiveness contribute in improvement in current advertisement and 16% of respondents feels it is not necessary. 37% of them feels because it has good music.

CHAPTER -6: CONCLUSION AND SUGGESTIONS 74 .

I found that:  84% of the respondents said that TV is the most effective media of advertisement. 6.  Majority of respondents sees the advertisement of the cold drink they like most.  Celebrities and the slogans in the advertisements affect the consumers.  Majority of respondents are of the view that advertisement is very necessary for cold drink.1 CONCLUSION: After going through the entire project and the collected data.2 SUGGESTIONS:  Advertisement should not be too expensive. because the advertisement leads and increase the price of the product. 75 .6.

 Media should to be selected according to the choice of the people.  To give attention on the weak media of advertisement so that the consumers comes to know about the product.  In rural areas media should be according to the choice of the people.  Price should be decreased so as to attract the consumers to use product more.  To give more attention in making the advertisement to make it effective for the sale of cold drink.  76 .  It should be attractive one so that people are attracted towards the advertisement.

George E Belch et al.co.google.in 77 .  Internet Websites:  WWW. Pepsiworld.BIBLOGRAPHY:  Marketing Management – Philip Kotler  Marketing Research – Tull and Hawkins  Marketing Management .Aaker & Myers  Advertising and Sales Promotion .com  www.Frederick E Webster  Advertising Management .

No 2.QUESTIONNAIRES: 1. Which reason you find for the difference of the advertisement effectiveness? a. Level of development 8. Education b. TV c. Once a day b. Do you think that advertisement has forced you to consume product more? a. Likings c. Have you seen the advertisement which you like most? a. Twice a day c. Yes b. Not regular 3. Is the study of effectiveness would contribute in improvement in current advertisement? 78 . Magazine b. Yes b. Yes b. Can’t say 6. How frequently you take carbonated drinks? a. Others 5. Not Necessary d. More than twice d. Through which media you have seen it? a. Do you take carbonated drinks? a. Very Necessary c. Newspapers d. Do you think advertisement is necessary for the sale of cold drinks? a. No 4. No 7. Necessary b. Standard of living d.

No c.The Expenditure incurred on the advertisement of cold drink is such effective that it adds to profits? a. Yes c. Not Necessary d. Satisfied c. Highly Satisfied b. How did you find the taste of Pepsi jeera? a. For customers d.According to you what is your level of satisfaction with Pepsi and Pepsi jeera? a. Which reason you find for the difference of advertisement effectiveness? a. No 9. Can’t Say 13.Poor d. Can’t say b. Satisfactory b . Standard of Living d.a. Is the study of Effectiveness would contribute in improvement of present advertisement? a. Highly dissatisfied 12.What do you think the use of study of effectiveness is for whom? a.Very poor 11. For company b. Neither satisfied nor dissatisfied d. Yes b. None of the above 10. No d.Very good b. Level of Development 79 . For employees c. Yes b. Not Necessary 14. Education b. Likings c.

Others 18. Why do you like the advertisements? a. It’s theme and making is appealable. Jeera c. no 20. Not necessary d. Yes b. Yes b. Any other reason. d. No 16. Do you think pepsi jeera is good for health? a.Which flavor of the cold drink you like the most? a. Can’t say 80 . yes b. 17. Do you think consuming of carbonated drinks for children below the age of 8 is harmful? a. Yes b. Do you think both youth and senior citizens prefer to consume cold drinks? a. No c. No 19. Do you think that advertisement has forced to consume more products? a. Lemon d.15. Cola b. Because it has film stars b Because of Good music c.