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A STUDY ON ADVERTISING EFFECTIVENESS

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CHAPTER I
INTRODUCTION

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COMPANY PROFILE

It has been a voyage of 30 years, since we began and now we stand diversified in service
and nature but united in innovation, improvement and institutionalization

It was early in 1976, at Bhatinda in Punjab where Shri D.D. Mittal, the group founder laid
the foundation of a small Solvent Extraction Unit. Today BCL Industries & Infrastructure
Ltd., is one of the largest vertically integrated edible oil complexes established in India.
Our approach to modernization has always been to strive for the ultimate in the services
industry.
Since the 1990s, when we diversified into the Real Estate business, we've created
townships, group housings, malls, multiplexes, hotels and as part of our organic growth
followed by group reputation, even players like Ansals API have joined hands with us in
shaping up township projects.
Our most recent achievement has been the setting up of a distillation plant at Pathankot.
Introducing an eco-friendly production and distribution system in our manufacturing
process, today we have become the only company in India and the South asian region that
has a forward and backward integrated distillery plant.

We ventured into information technology in 2000 and set up our infotech division as
Knowledge Process Outscourcing (KPO) company rendering Content - Editing,
Management, Electronic Document Management and Mining services to international
publishing, legal, medical, helathcare, scientific and engineerning research organizations
with its development center at Chennai, India and CRM offices in London, UK and New
York, USA.

Our primary focus is and always will remain the end user, our customer. In various parts
of India (Punjab, New Delhi, Gurgaon, Chennai, Haryana, Himachal Pradesh, Uttar
Pradesh, Madhya Pradesh, Rajasthan, West Bengal) we open our doors to you and while
the language and dialect change, the warmth of welcome from over a 1000 crore turnover
base will always remain the same. The figure not only reinstates our backbone as a
corporate group but speaks about our strength and success in the field.

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Everything we do is aimed at providing the discerning customer with an experience that
is distinctly different. We welcome you to be a part of an experience that you will never
forget

At the Mittals, we have a strong focus on corporate values and work culture. Our
workforce is committed to long term strategic partnerships that deliver value beyond the
contract of our customers.

WE ARE SETTING UP NEW STANDARDS IN 4


SPECIALIST DOMAINS:
Edible Oil
Distillery
Real Estate
Infotech

AT THE MITTALS, WE HONOUR AND CELEBRATE


OUTSTANDING PERFORMANCE OF OUR GROUP
COMPANIES:

M/s BCL Industries & Infrastructure Ltd.


M/s Ganapati Townships Ltd.
M/s Kissan Fats Ltd.
M/s Pioneer Industries Ltd.
M/s Sheesh Mahal Developers Ltd.
M/s Cosmos Infra Engineering (India) Ltd.
M/s Gee City Builders Pvt. Ltd.
M/s Ansal Mittal Township Pvt. Ltd.
M/s Svarna Infrastructure & Builders Pvt. Ltd.
M/s E-Edit Infotech Pvt. Ltd.
M/s Chavan Rishi Resorts Pvt. Ltd.
M/s Creative Buildwell Pvt. Ltd.

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M/s Ganapati Estates
M/s R.K. Export

BRIEF HISTORY OF THE COMPANY

The company was established on 3.2.1976 as a Pvt. Ltd. Company under the
name of Bathinda Chemicals & Banspati Mills Pvt. Ltd. with Registers of companies
Punjab, Himachal Pradesh & Chandigarh, at Jalandhar. The company initially started
solvent extraction with the capacity of 40 TPD (tones per day) and started processing of
Rice Bean.

In 1979, the capacity of the solvent was doubled to 80 TPD and a 12 TPD
Hydrogenation Plant was installed for producing oil which was financed by PSIDC.

In 1980, the company increased its capacity by installing refinery and oil mill
from its own sources and the capacity of solvent extraction plant was raised upto 100
TPD.

In 1985 the company changed to Bathinda Chemicals Pvt. Ltd. It was converted
into a seemed Public Ltd. Company on 2.1.1989. The company further increased the
capacity of solvent extraction from 100TPD to 150 TPD by raising term loan of Rs. 80
Lacs from PSIDC in the year 1990. In Aug 1991, the company was sanctioned Rs. 120
Lacs from PSICD for installation of fresh solvent extraction plant of 200 TPD and the
capacity of Hydrogenation Plant was raised from 12 TPD to 25 TPD.

With the delicensing of Vanaspati Ghee in New Industrial policy announced on


25.7.199, the company stopped manufacturing hard oil and the Hydrogenation Plant of
company was modified. So as to facilitate the manufacturing of Vanaspati.

The company is mainly producing Vanaspati Ghee and Refined-edible oil for human
consumption the products of the company are being marketed in the packets of 15 kg, 5lt,
2lt, 1lt/kg and kg in the North and East (Indian State) the company is having a well
knitted dealers networks for marketing products and having its sale depots situated in the

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states of U.P., Punjab, Haryana, J&K, Rajasthan & H.P besides the union territory of New
Delhi.

The company is marketing its products under the brand name of Rishi Shakti
and star vegetable oil and Murli refined oil and the

same got a very good response from the different sections of the consumers.

RAW MATERIAL

The raw materials of the company are Cotton Seeds, Mustard Seeds, Sun Flower
Seeds, Palm Oil, Soyabean Seeds, Paddy Rice Bean and Film Oil.

DIFFERENT ACTIVITIES

EDIBLE OIL BUSINESS

Mittal family, Sh. D.D. Mittal & Sh. Rajinder Mittal has the business of Edible Oil with
the installation of a solvent Extraction Plant at Bathinda, with the help of Punjab
Financial Corporation in 1976 under the name & style of Bathinda Chemicals &
Vanaspati Mills Limited which has now become Bathinda Chemical Limited. The
management under took various Expansion & Modernization plans with the help of
PSIDC, Chandigarh and its bankers Punjab National bank, from time to time. In the last
10 to 12 years the company has grown too many flods under the stewardship of its
Managing Director Sh. Rajinder Mittal. The company has now biggest oil complexes in
North India comprising an Oil Mill, two Solvent Expansion Plants, one Rice Sheller, one
Chemical Refinery and one Vanaspati Plant of more than 500 MTs capacity of raw-
materials. All the

plants have been running at full capacity. The company paid off its entire term loans
availed under various Expansion-Cum-Modernizations and now is totally debt free
company. The company brought its maiden public issue of 29, 00,000 shares of Rs.10/-

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each at a premium of Rs.5/- each in 1993, which has Mittal family took over another
edible oil plant of Refinery & Vanaspati of 50 Mts per day in 2003 at Jalalabad, Distt.
Ferozepur (Pb.) under the name of Kissan Fats Limited (Closed Held). After the take
over, anew Solvent Extraction plant of 125 MTPD has been installed in 2004 with the
financial assistance of PNB. This unit has also been running successfully after the take
over.

Another Proprietorship concern M/s R.K. Exports, Bathinda owned by Sh. Rajinder
Mittal has been established in the year 1992 and is doing business of Import & Exports of
edible oil & various food stuff items. The firm is having only trading activities. The
company dealing in Edible Oils are having annual turnover of more than Rs.500 crores.
The main company M/s Bathinda Chemical Limited has been dealing with one banker,
Punjab National Bank from fund the last 25 years. At present the group is having more
than Rs.35 crores based and non fund credit facilities for the manufacturing & trading of
edible oils. The group is

having one of the largest production capacity of edible oils in North India now and is
enjoying top class credibility in the business of Edible Oils in the country.

REAL ESTATE BUSINESS

Mittal group has stepped into the business of real estate in the year 1990 as developers
and colonizers and undertaken a project namely Rishi Apartment at 4, Battery Lane,
Rajpur Road, Civil Lines Delhi for the construction of 3,4 and 5 bedroom Residential
Flats under its company M/s Cosmos Builders & Promoters Ltd. Delhi. Since the site was
located in the heart of Delhi and very near to Inter State Bus Terminals & Tees Hazari
Court, the project remained highly successful and the flats were sold like hot cakes.
Encouraged with the successful of the first project Mittal Group expanded its business of
real estate and undertaken various project at Delhi, Gurgaon and the other places. Now
the group has undertaken projects in Punjab at Bathinda and Mohali also. The allied
companies / partnership concerns (under the same management) in the business of real
estate are as under

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M/s Sarva Priya Constructions Pvt. Ltd. New Delhi

M/s Sarva Priya Developers Pvt. Ltd. New Delhi

M/s Chavan Rishi Resorts Pvt. Ltd. New Delhi

M/s Chavan Rishi International Ltd Delhi

M/s Cosmos Builders & Promoters Ltd. Delhi

M/s Ganpati Builders & Developers Bathinda

M/s Ganpati Associates Bathinda

Since stepping into the business of real estate Mittal group has undertaken & completed
successfully various residential and commercial sites having worth crore of Rupees at
Delhi, Haryana and Punjab. Many of the projects have already been sold / possession
handed over the buyers. Ate present Mittal group boasts of a good name in real estate
business in north India and the management now is having ample experience in the line
of real estate besides Edible Oils manufacturing. A list of projects undertaken by the
Mittal group under its different companies / partnership (completed & in- progress) is as
under.

INFORMATION TECHNOLOGY BUSINESS

Keeping in view the revolution in information technology industry in the year 2000, Sh.
Rajinder Mittal (Chairman and Managing Director, Bathinda Chemical Limited) took
over a Chennai based company namely QPRO Infotech Limited engaged in the business
of electronic typesetting

software development and database management. The company has been managed by
thoroughly professional people. In the last five years the company has registered
tremendous growth and in the financial year 2003-04 the company earns more than
Rs.500 lacs total income from services and Rs.113 lacs as net profit after tax.

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Riding on success of QPRO Infotech Limited the company took over another E-
publishing overseas company namely M/s Santype international limited, having its
registered office at Satlisbory (U.K) in the year 2001 with the take over this foreign
company the management has been able to expand its business of electronic type settings,
software development and data base management in Europe. The business of the
company has been expanding by leaps and bounds every year.

MULTIPLEX COMPLEX - CUM - SHOPPING MALL

Mittal group has now undertaken a project for the construction of a Multiplex
Complex Cum Shopping Mall at Bathinda under the name of its partnership concern M/s
Ganpati Builders & developers, Goniana Road, Bathinda having the following partners.

M/S Bathinda Chemical Limited 80% Share

(Sh. Rajinder Mittal)

Sh. Jiwan Bamsal 20% Share

The firm purchases a land of about 7000 Sq. Mtrs. at Goniana Road, Bathinda, at
that time hotel Panj Rattan is running on this land. The panning is to abolish the hotel
building to construct an ultramodern Hi-Fi Multi Complex Cum Shopping Mall on this
land. The site is located in the heart of the city, opposite three cinema halls at goniana
road Bathinda, only 300 Mtrs away from rose garden and only 2 Km away from main bus
stand. The saleable area in the multi complex cum shopping mall will be about 250000
Sq. ft approximately and the estimated cost of project is Rs.25 crores.

Bathinda city is the fastest growing city of Punjab state at present having
population base of approximately Rs.5 lacs. The city is already having big industries like
Punjab Govt. Thermal Plant, National

Fertilizers Limited Vardhman Polytex Limited, Gujarat Ambuja Cement Plant.


Asian biggest military cantonment area thousands of military personnel is in Bathinda.

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Another unit of Punjab Govt Thermal Power Plant at Village Lehra Mohabbat, only 25
Km from Bathinda. Another mega project of Central Govt. namely Guru Gobind Singh
Petroleum Refinery with the proposed investment Rs.11000 crores has already been
sanctioned in Distrist Bathinda, which is 30 km away from Bathinda City. With the
installation of this refinery in Bathinda District, it is expected that there will be
tremendous growth of Bathinda city and surrounding area so far as real estate business is
concerned.

The area of Bathinda as basically agricultural based having crops like cotton,
paddy and wheat. The business is namely on these products. The people of Bathinda are
rich and the market has been hold by Aggarwals. In the last few years, the education
standard of the city has grown too many folds with the establishment of an Engineering
College, Law College and a Medical College.

The purchase capacity of people has been increased with good crops in the last 4-5 years
and also increases in the income of salaried class. Personnel from military cantonment
also require good shopping complex and branded item in Bathinda. Rich & well to do
people from

surrounding area visit regularly to Bathinda city for purchasing and to requirement of a
Multi Complex Cum Shopping Mall at Bathinda is to say it will be the first multi
complex cum shopping mall of its kind In Malwa Region in Punjab.

PROMOTERS AND THEIR BACKGROUND

BCL was promoted by Mr. Dwarka Dass Mittal whose age is now about 66 years
and he is matric pass and is having business experience of about 35 years. He has been a
director of De oiled Solvent Industry Pvt. Ltd. Kotkapura in the early years of his career.

Regarding organization profile, the management pattern of BCL shows a high


degree of appreciation. Management believes in dignity of labor and increase the morale

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and confidence to put the maximum efforts to achieve the objectives by coordinating all
the operational functions of the organization.

PROCESS OF MAKING OIL

Refined oil and Vanaspati Ghee is prepared from soyabean oil, palm oil, cotton
seed oil, rice oil etc. In all types of oil, mainly free fatty acid, color pigments, gums,
waxes etc are present as impurities which are removed during the manufacture of refined
oil. The process of making oil is completed in to different stages.

1. CRUSHING OF SEEDS:-
When the seeds are crushed, oil of upto 40% is produced and a joint product around
59% to 82% is produced depending upon type of seeds losses during the process arise
between 0.25% to 1.5% by product believes .25 to 1% are produced.

2. REFINING OF SEEDS:-
The dried oil which is free from all impurities is undergone operation in refinery
plant. The whole process description of making of oil is mainly divided in the three
stages:-

a. Neutralization.

b. Bleaching.

c. Deodorization.

These stages help in removing the odoriferous matters and collectively these three
stages are called as pre-hydrogenation stage.

a) NEUTRALISATION:-
In the neutralizer vessel crude oil is heated upto 60 to 80 c. After adding caustic lye &
phosphoric acid, it is washed with water and is kept for 4 to 5 hours. Heavy particle i.e.
crams get settled under the oils is transferred for bleaching.

b) BLEACHING:-

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The oil is pumped to the places which consist of mild steel vessel with dish ends
provided with heating coils, agitators & arrangement for evaluation the vessel is heated
upto 120 to 140 degree centigrade through steam oil. After adding bleaching earth upto
2.5% to 3% it is settled upto 2 hours to remove odors present in this oil fit is pass for
third stage.

c) DEODRAIZATION:-
The purpose of this operation is to eliminate objectionable odor and flower caused by
volatile constituents which can be removed by steam distillation. The oil is charged in the
Deodorized vessel & heated upto 250 c through vacuum FFA (free fatty acid) is removed.
After this process the oil is processed through the BAL filter system. This is the refined
oil.

3. VANASPATI OIL:-
In the Vanaspati plant, the purpose of the process is the hydrogenation of oils. All the
same process of refining the oil are charged into the Auto clave vessel and many types of
oils i.e. mustard oil, palm oil, cotton seed oil, filli oil etc are mixed and are heated upto
170 degree centigrade. Nickel catalyst is added in it and it is started with the gear box and
motor system. After sometime, the hydrogenation oil, now the oil has been converted into
Vanaspati Ghee. After this process the Vanaspati is

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CHAPTER-2
INTRODUCTION TO THE
TOPIC

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Advertising is an art not a science. Effectiveness of which cannot be measured
with a mathematical or empirical formula some advertisers argue that advertising
efforts go to waste, but every advertiser is keenly interested in measuring or in evaluation
of advertising effectiveness. Testing for the effectiveness of advertisement will lead
advertisement testing must be done either before or after the advertisement has done in
the media. It is of two types, protesting which are done before the advertisement has been
launched and one is referred to as cost testing which is done before the advertisement has
been launched and one is referred to as cost testing which is done after launching the
advertising campaign. The basic purpose of advertising effectiveness is to avoid costly
mistakes, to predict the relative

Strength of alternative strength of alternative advertising strategies and to increase


their efficiency. In measurement of advertisement effectiveness feedback is always useful
even if it costs some extra expenditure to the advertiser.

The objectives of all business are to makes profits and a merchandising concern
can do that by increasing its sales at remunerative prices. This is possible, if the product
is widely polished to be audience the final consumers, channel members and industrial
users and through convincing arguments it is persuaded to buy it. Publicity makes a thing
or an idea known to people. It is a general term indicating efforts at mass appeal. 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.

On the other hand, advertising denotes a specific attempt to popularize a specific


product or service at a certain cost. It is a method of publicity. It always intentional
openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a
common form of nonpersonal communication about an organization and or its products
idea service etc. that is transmitted to a target audience through a mass medium. In
common parlance the term publicity and advertising are used synonymously.

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What is advertising?

The word Advertising has its origin from a Latin word Adventure which means to turn
to. The dictionary meaning of the word is to announce publicity or to give public
concerned to a specific thing which has been announced by the advertiser publicity in
order to inform and influence them with

Reread them or pass them on to other. Some magazines have prestige value. The marketer
can cover national or large regional markets at a low cost per contract (per
individual reached). Magazines generally offer high-quality printing of advertisement.

Simply stated advertising is the art "says green." Advertising is a general term for and all
forms of publicity, from the cry of the street boy selling newspapers to the most celebrate
attention attracts device. The object always is to bring to public notice some articles or
service, to create a demand to stimulate buying and in general to bring together the man
with something to sell and the man who has means or desires to buy".

Advertising has been defined by different experts. Some of the quoted definitions are:

According to American Marketing Association Advertising is any paid form of


nonpersonal paid of presentation of ideas goods or services by an identified sponsor.

Indian marketing association has defined advertising as any paid form of nonpersonal
presentation and promotion of ideas, goods or services by an identified sponsor. The
medium used are print broadcast and direct.

Stanton deserves that "Advertising consists of all the activities involved in presenting to a
group a non- personal, oral or visual openly, sponsored message regarding a product,
service, or idea. This message called an advertisement is disseminated through one or
more media and is paid for by the identified sponsor.

Advertisement carries:

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In business world the terms in mainly used with reference to selling the product of
the concern. The advertising, as Jones defines it is "a sort of machine made mass
production method of selling which supplements the voice and personality of the
individual salesman, such as manufacturing the machine supplements the hands of the
craftsman." It is thus a process of buying/sponsor/identified media space or time in order
to promote a product or an idea. From a careful scrutiny of the above definition, the
following points emerge:

Advertising is a paid form and hence commercial in nature. This any sponsored
communication designed to influence buyer behavior advertising. Advertising is non-
personal. Unlike personal selling, advertising is done in a non- personal manner through
intermediaries or media whatever the form of advertisement (Spoken, written or visual).
It is directed at a mass audience and not directed at the individual as in personal selling.
Advertising promotes idea, goods and services. Although most advertising is designed to
help sell goods, it is being used increasingly to further public interest goals. Advertising
is identifiable with its sponsoring authority and advertiser. It discloses or identifies the
source of opinions and ideas. Advertising thus is: 1. Impersonal 2.A communication of
ideas. 3. Aimed at mass audience 4.By a paying sponsor. The two forms of
mass communication that are something confused with advertising or publicity and
propaganda. If we eliminate the elements of the "paying sponsor" (The paid requirement)
we would have the element of publicity left: For publicity is technically speaking,
advertisement without payment. In a similar manner. If we eliminate the requirement of
an "identified sponsor", the resulting communication is propagandistic. It is important for
us to emphasize that advertising may involve the communication of ideas or goods of
service. We are all aware that advertising attempts to sell goods and services. But we may
overlook the more important fact that it often sells ideas.

According to Wheeler, Advertising is any form of paid non-personal presentation of


ideas, goods or services for the purpose of inducing people to buy.

According to William J. Stanton, Advertising consists of all the activities involved in


presenting to a group a non-personal, oral or visual openly sponsored message regarding

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a product service or idea. This message is called on advertisement is disseminated
through one or more media and is paid for by an identified sponsor

Basic Features of Advertising:

On the basis of various definitions it has certain basic features such as:

1. It is a mass non-personal communication.


2. It is a matter of record.

3. It persuades buyers to purchase the goods advertised.

4. It is a mass rapid communication.

5. The communication media is diverse such as print (newspapers and


magazines)

6. It is also called printed salesmanship because information is spread by


means of the written and printed work and pictures so that people may be
induced to act upon it.

Functions of Advertising:

For many firms advertising is the dominant element of the promotional


mix particulars for those manufacturers who produce convenience goods such as
detergent, non prescription drugs, cosmetics, soft drinks and grocery products.
Advertising is also used extensively by masters of automobiles, home appliances, etc, to
introduce new product and new product features its uses its attributes, pt availability etc.

Advertising can also help to convince potential buyers that a firms product or
service is superior to competitors product in make in quality, in price etc. it can create
brand image and reduce the likelihood of brand switching even when competitors lower
their prices or offer some attractive incentives.

Advertising is particularly effective in certain other spheres too such as:

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i) When consumer awareness of products or service is at a minimum.
ii) When sales are increasing for all terms in an industry.

iii) When a product is new and incorporates technological advance not strong and.

iv) When primary buying motive exists.

It performance the following functions:

i) Promotion of sales
ii) Introduction of new product awareness.

iii) Mass production facilitation

iv) Carry out research

v) Education of people

TYPES OF ADVERTISING:

Broadly speaking, advertising may be classified into two categories viz., product
and institutional advertising.

a) Product Advertising:

The main purpose of such advertising is to inform and stimulate the market about
the advertisers products or services and to sell these. This type of advertising usually
promotes specific, trended products in such a manner as to make the brands seem more
desirable. It is used by business government organization and private non-business
organizations to promote the uses features, images and benefits of their services and
products. Product advertising is subdivided into direct action and indirect action
advertising, Direct action product advertising wages the buyer to take action at once, ice
he seeks a quick response to the advertisement which may be to order the product by
mail, or mailing a coupon, or he may promptly purchase in a retail store in response to
prince reduction during clearance sale.

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Product advertising is subdivided into direct & indirect action advertising &
product advertising aims at informing persons about what a products is what it does, how
it is used and where it can be purchased. On the other hand selective advertising is made
to meet the selective demand for a particular brand or type is product.

b) Institutional Advertising:

It is designed to create a proper attitude towards the sellers to build company image
or goodwill rather than to sell specific product or service. Its purpose is to create a frame
of mind and to implant feeling favorable to the advertisers company. Its assignment is to
make friends for the institution or organization.

It is sub-divided into three categories: patronage, public, relations and public


service institutional advertising.

i) In patronage institutional advertising the manufacturer tells his prospects and


customer about himself his policies and lives personnel. The appeals to the
patronage motivation of buyers. If successful, he convinces buyers that his
operation entitles him to the money spent by them.
ii) Public relations institutional advertising is used to create a favourable image of
the firm among employees, stockholders or the general public.

iii) Public service institutional advertising jobs public support

WHY & WHEN TO ADVERTISE:

Advertising as a tool to marketing not only reaches those who buy, but also those
whose opinions or authority is counted for example a manufacturer of marble tiles and
building boards advertises not only to people who intend to build houses but also to
architect and engineers. While the manufacturers of pharmaceuticals products advertise to
doctors as well as to the general public. At time it is necessary for a manufacturer or a
concern to advertise things which it does not sell but which when sold stimulates the

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sales of its own product. There are concerns like electric heaters, iron etc. because the use
of these increases the demand for their products.

Advertising should be used only when it promises to bring good result more
economically and efficiently as compared to other means of selling. There are goods for
which much time and efforts are required in creating a demand by sending salesman to
prospective buyers than by simply advertising them. In the early days of the cash register
in India it was sold by specially trained salesman who called on the prospective users and
had the difficult task of convincing them that they could no longer carry on with the old
methods, and that they urgently needed a cash register. In our country certain publishers
have found it less costly to sell their books by sending salesman from house to house
among prospective buyers than to advertise them. In these two examples the cost of
creating demand would be too high if attempted by advertising alone under such
circumstances advertising is used to make the salesman acceptable to the people they call
upon to increase the confidence of the public in the house. Naturals when there are good
profits competitors will be attracted and they should be kicked out as and when sufficient
capital is available by advertising on a large scale. Immediate result may not justify the
increased expenditure but it will no doubt secure future sales.

Sales-Effect:

Communication-effect advertising research helps advertisers assess advertisings


communication effects but reveals little about its sales impact. What sales a regenerated
by an advertisement that increases brand awareness by 20% and brand preference by
10%? Advertisings sales effect is generally harder to measure than its communication
effect. Sales are influenced by many factors besides advertising, such as the products
features, price, availability and competitors' actions. The fewer or more controllable these
other factors are, the easier it is to measure advertising's effect on sales. The sales impact
is easiest to measure in direct-marketing's effect on sales. The sales impact is easiest it is
to measure in direct-marketing situations and hardest measure in brand or corporate-
image-building advertising.

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PROGRESS TESTS

These assess the various stages of buyer awareness, preference, buying intention and the
actual purchase in relation to advertising Effort. They are called sales effect tests.

Measuring Sales Response to Advertising:

Though increase in sales in the true measure of advertising effectiveness, in reality its
difficult to measure the increase that is due to a particular advertisement. It is
rather difficult to correlate the response in sales with the advertising programme.
However, a few methods have been discarded in the following paragraphs which are
generally used to measure the sales response to advertising.

Sales Results Tests:

The additional sales generated by the advertisements are recorded, taking several routes.
Past Sales before the advertisement and sales after the advertisement are noted. The
difference is attributed toad impact. Controlled Experiment: In experimental market, any
one element of marketing mix is changed.

It is compared with the sales of another similar market. The element's presence
observance is a reason for difference in sales. Instead of two markets, the experiment can
be carried on the two groups of consumers. The inventory audit is dealers inventory
before and after the ad is run.

Attitude Tests:

This is an indirect measurement of the post-testing effects of advertisements on attitudes


towards the advertised product or brands. The change in attitude as a result of advertising

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is assessed. The assumption is that favourable attitude towards the product may lead
to purchases. Most advertisements are designed to either reinforce or change existing
attitudes. An attitude is a favourable or unfavourable feeling about a product.

Selecting the Media:

Media selection is an important since it costs time space and money various factors
influence this selection, the most fundamental being the nature of the target market
segment, the type of the product and the cost involved. The distinctive characteristics of
various media are also important. Therefore management should focus its attention on
media compatibility with advertising objectives.

INDOOR OUTDOOR DIRECT DISPLAY

1.Press 1. Poster 1. Envelop & 1. Displays


Postcards
(a) Newspapers 2. Painted displays (a) Window
(b) Magazines 2. Booklet
3.Traveling (b) Counter
1. Radio Displays 3. Catalogs
2. Showroom
2. T.V. 4. Neon signs 4.Sales letters
3. Exhibitions
3. Cinema
5. Electric signs 5. Samples
4. Trade fairs
4. Video

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Modern Advertising Techniques:

Include seven that you should consider:

1. Email Advertising
2. Video Advertising

3. Audio Advertising

4. Search Advertising

5. Onsite Advertising

6. Mobile Phone Advertising

I recently completed a series of posts on these modern advertising techniques. The posts
provide additional information on each technique so Ive linked to them when relevant.

1. E-mail Advertising:

Email advertising tops this list of modern advertising techniques because it tops the lists
of new and growing advertising expenditures. From small Internet marketers to large
offline and online stores, email advertising is vital to modern advertising and marketing
campaigns.

2. Video Advertising:

Video Advertising can be done on and off line. Many local cable channels offer video ads
and infomercials on a search basis for viewers. So your ad is only seen by people
interested in what you sell. Video marketing is also big on the Internet. Most online
videos are more promotion than advertising, but they play an important role in online
success.

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3. Audio Advertising:

Audio advertising, whether across the Internet or the airwaves enables you to target a
narrow market and to deliver relevant and timely messages that encourage an immediate
response.

Although second to video online, offline audio advertising (radio advertising) provides all
the benefits of online audio advertising. And if you advertise on highly targeted stations
and shows, it isnt that expensive.

4. Search Advertising:

Search advertising, like Googles Ad words, can provide much traffic for an online
business, but it can also cost far more than it returns in sales. To use search advertising
effectively, you need to constantly test your ads. Then rewrite and redesign them from
your test results. Theres both skill and science to search advertising. So before you jump
in, read some e books and study the search engines documents about their pay per click
programs.

5. Onsite Advertising:

Onsite advertising can be considerably less expensive than search advertising. Generally
a click from an ad on site costs less than the same click from a search. With Googles new
Ad Planner, it will be easy to target a market with ads across the Internet. You can
even pick the sites that you want to carry your ads and deny ones that you dont.

6. Mobile Phone Advertising:

24
Mobile phone advertising is projected to grow from just under 500 million in 2006 to a
almost 5 billion by 2011.And why not. Its interactive, unobtrusive, and immediate. Most
people have their mobile phones with them all the time. So they can react instantly to
banner phone ads that catch their attention.

CHAPTER-3
NEED , OBJECTIVES &
LIMITATIONS

25
NEED OF THE STUDY

Need to doing the study on advertising effectiveness is whether the Advertising


campaign was successful or not, the awareness level of products, the advertising
campaign increased the customer base or not and which media carry the
advertisement successfully.

26
OBJECTIVES OF THE STUDY

1. To know the effectiveness of advertising towards BCL Refind Oil .

2. To understand the most effective media for advertisement for BCL Refind Oil

3. To find out the reasons for liking the advertisement of BCL Refind Oil

27
LIMITATIONS OF THE SUDY

1. The project relied mainly on the primary data.


2. Consumer gives very unclear picture.

3. The study is based on limited sample.

4. It begin my first attempt to undertake such a study, thus the inexperience is


also an obstacle to accomplish the project in a proper way.

5. The main limitation was time. There was problem to contacting the
businessmen and servicemen due to shortage of time with them.

6. The data is collected from the consumer is qualitative in nature. i.e. views,
opinions and perceptions. These factors may be changed from time to time.

28
CHAPTER-4
RESEARCH METHODOLOGY

29
RESEARCH METHODOLOGY

Research is a procedure of logical and systematic application of the fundamentals


of science to the general and overall questions of a study and scientific technique which
provide precise tools, specific procedure and technical rather than philosophical means
for getting and ordering the data prior to their logical analysis and manipulation.
Different type of research designs is available depending upon the nature of research
project, availability of able manpower and circumstances.

1. Research Design: The research design is the blueprint for the fulfillment of
objectives and answering questions. It is a master plan specifying the method and
procedures for collecting and analyzing needed information.

2. Data Collection Methods: The source of data includes primary and secondary
data sources.

Primary data: Primary data has been collected directly from sample respondents
through questionnaire and with the help of interview.

Secondary data: I was collected the secondary data from Standard textbooks,
Newspapers, Magazines and Internet sources.

3. Research Instrument: Research instrument used for the primary data collection
is Questionnaire.

4. Sample Design: Probability Sampling.

Sampling Technique: Convenience

30
Sample Size: 100 Respondents.

Area of Study: Bathinda

Statistical Tool Applied: Percentage Analysis.

CHAPTER 5
DATA ANALYSIS

31
Table - 1

Respondents classification according to age

Age (in years) No. of respondents Percentage


15-20 44 44%
21-40 50 50%
41-60 6 6%
Total 100 100%

Pie Chart:

Inference:

Above chart reveals that 44% of the respondents are in the age group of 15-20,
50% are in the age group of 21-40 and 6% are in the age group of 41-60.

32
Table - 2

Respondents classification according to sex


Sex No. of respondents Percentage
Male 60 60%
Female 40 40%
Total 100 100%

Pie Chart:

Inference:

Above chart reveals that 60% of the respondents are males and 40% of
them are females.

Table - 3

33
Respondents classification according to educational qualification

Qualification No. of respondents Percentage


Illiterate - -
Below Metric - -
Metric 10 10%
Graduate 52 52%
Postgraduate 38 38%
Total 100 100%

Pie Chart:

Classification according to educational qualification

Inference:

Above chart reveals that 10% are matriculate and 52% are Graduate and rests of
them 38% are post graduate.

Table 4

Q.No.1) Do you see the advertisements?

34
Particulars No. of respondents Percentage
Yes 100 100%
No - -

Pie Chart:

Inference:

Above chart reveals that 100% of the respondents see the advertisements.

Table - 5

Q.No.2) Do you think advertisement of Refind Oil is required?

Particulars No. of respondents Percentage

35
Yes 96 96%
No 4 4%
Total 100 100%

Pie Chart:

Inference:

Above chart reveals that among 100 respondents 96% of the respondents view
that advertisement of cool drink is required while 4% of the respondents view that
advertisement of cool drink is not required

Table 6

Q.No.3) Have you seen the advertisements of BCL Refind Oil?

Particulars No. of respondents Percentage


Yes 100 100%
No - -
Total 100 100%

36
Pie Chart:

Inference:
Above chart reveals that all respondents are see advertisements of BCL Refind Oil
.

Table 7

Q.No.4) through which media you have seen it?

Sources No. of respondents Percentage


T.V. 92 92%
News papers 4 4%
Magazines 2 2%
Others 2 2%
Total 100 100%

37
Pie Chart:

Inference:

Above table reveals that 92% of the respondents are of opinion that they have
seen the advertisements on T.V. while 4% are of the opinion that they have seen the
advertisements through newspapers.

Table 8

Q.No.5) Do you like the advertisements of BCL Refind Oil ?

Particulars No. of respondents Percentage


Yes 94 94%
No 6 6%
Total 100 100%

Pie Chart:

38
Inference:

Above table reveals that among 100 respondents 94% of respondents like the
advertisements of BCL Refind Oil while 6% of respondents dont like the advertisements
of BCL Refind Oil .

Table 9

Q.No.6) why do you like the advertisements of BCL Refind Oil ?

Particulars No. of respondents Percentage


Because they have famous 14 14%
personalities
Because of good music 14 14%
Theme and making is 60 60%
appealable
Any other reason 12 12%
Total 100 100%

Pie Chart:

39
Inference:

Above chart reveals that among 100 respondents 60% of the respondents like the
advertisements due to theme

Table 10

Q.No.7) could you recall any advertisement of BCL Refind Oil ?

Particulars No. of respondents Percentage


Yes 88 88%
No 12 12%
Total 100 100%

Pie Chart:

40
Inference:

Above chart reveals that Among 100 respondents 94% of respondents recall the
advertisement of BCL Refind Oil and 6% of respondents didnt recall any advertisement
of BCL Refind Oil .

Table 11

Q.No.8) Do you think advertising is necessary for sale of Refind


Oil ?

Particulars No. of respondents Percentage


Necessary 28 28%

Very necessary 60 60%


Not necessary 8 8%
Cant say 4 4%

Total 100 100%

Pie Chart:

41
Inference:

Above chart reveals that among 100 respondents 60 % of respondents are view
that advertising is very necessary for sale of Refind Oil while 28% of respondents are
view that advertising is necessary for sale of Refind Oil .

Table 12

Q.No.9) which media is presenting the advertisement is necessary


for sale of BCL Refind Oil ?

Particulars No. of respondents Percentage


T.V. 60 60%
Newspapers 18 18%
Magazines 12 12%
Others 10 10%
Total 100 100%

Pie Chart:

42
Inference:

Above chart reveals that among 100 respondents 60% of the respondents view
that T.V. is presenting the advertisement is necessary for sale of BCL Refind Oil while
18% said that Newspapers, 12% said that Magazines and 10% said that others.

Table 13

Q.No.10) did the advertisements of BCL Refind Oil create


awareness about brands and make to consume product?

Particulars No. of respondents Percentage


Yes 84 84%
No 16 16%
Total 100 100%

Pie Chart:

43
Inference:

Above chart reveals that among 100 respondents 84% of the respondents agreed
that advertisement of BCL Refind Oil create awareness about brands and make to
consume product.

Table 14

Q.No.11) did advertisement give affect on your consumption of Refind


Oil ?

Particulars No. of respondents Percentage


Yes 73 73%
No 27 27%
Total 100 100%

Pie Chart:

44
Inference:

Above chart reveals that among 100 respondents 73% of the respondents view
that advertising gives effect on their consumption of Refind Oil while 27% of the
respondents view that advertising didnt give affect on their consumption of Refind Oil .

Table 15

Q.No. 12) how frequently you take Refind Oil ?

Particulars No. of respondents Percentage


Once in a day 40 40%
Twice in a day 4 4%
More than twice 2 2%
Not regular 54 54%
Total 100 100%

Pie Chart:

45
Inference:

Above chart reveals that among 100 respondents 40% of the respondents drink it
once in a day, 4% twice in a day, 2% more than twice and 54%drink it not regularly.

Table 16

Q.No.13) Did the Famous personalities and slogans are necessary for the
advertisements of BCL Refind Oil ?

Particulars No. of respondents Percentage


Yes 79 79%
No 15 15%
Cant say 6 6%
Total 100 100%

Pie Chart:

Inference:

46
Above chart reveals that among 100 respondents 79% of respondents views that
famous personalities and slogans are necessary for the advertisements of BCL Refind Oil
while 15% views that no, and 6% of the respondents view that cant say.

Table 17

Q.No.14) did the famous personalities affect your brand choice?

Particulars No. of respondents Percentage


Yes 83 83%
No 17 17%
Cant say 3 3%
Total 100 100%

Pie Chart:

Inference:

47
Above chart reveals that among 100 respondents 83% of the respondents said that
famous personalities affect their brand choice while 17 said no and 3% of the respondents
said cant say.

Table 18

Q.No.15) do you agree that an advertisement of BCL Refind Oil


reminds you brand name while purchasing
Particulars No. of respondents Percentage
Yes 82 82%
No 13% 13%
Cant say 5 5%
Total 100 100%

Pie Chart:

Inference:

48
Above chart reveals that among 100 respondents 82% of the respondents view
that advertisement reminds them brand name while purchasing. While 13% of the
respondents view that advertising dont reminds them brand name while purchasing.

Table 19

Q.No.16) do you agree that advertisements of BCL Refind Oil helps you
to make better selection?

Particulars No. of respondents Percentage


Yes 88 88%
No 10 10%
Cant say 2 2%
Total 100 100%

Pie Chart:

Inference:

Above chart reveals that among 100 respondents 88% of the respondents said that
advertisement of BCL Refind Oil helps them to make better selection while 10% of the

49
respondents dont agreed that advertisement of BCL Refind Oil helps them to make
better selection.

Table 20

Q.No.17) do you satisfied with the performance/quality of product


which is seen by advertisements of Refind Oil ?

Particulars No. of respondents Percentage


Yes 86 86%
No 14 14%
Total 100 100%

Pie Chart:

Inference:

50
Above chart reveals that among 100 respondents 86% of the respondents view
that they satisfied with the performance of /quality of product which is seen by
advertisement of BCL Refind Oil while 14% of the respondents said no.

Table 21

Q.No.18) do you think advertisements of BCL Refind Oil should be in


regular time to get effective?

Particulars No. of respondents Percentage


Yes 64 64%
No 32 32%
Cant say 4 4%
Total 100 100%

Pie Chart:

Inference:

Above chart reveals that among 100 respondents 64% of the respondents said that
advertisements of BCL Refind Oil should be in regular time to get effective while 32%
advertisements of BCL Refind Oil should be in regular time to get effective.

51
Table 22

Q.No.19) did the advertisements of BCL Refind Oil make you loyal
towards its brands?

Particulars No. of respondents Percentage


Yes 83 83%
No 15 15%
Cant say 2 2%
Total 100 100%

Pie Chart:

Inference:

Above chart reveals that among 100 respondents 83% of the respondents view
that advertisements of Refind Oil make them loyal towards its brands while 15% of the
respondents view that the advertisement of Refind Oil didnt make them loyal towards
its brands.

Table 23

52
Q.No.20) which reason you find for the difference of advertising
effectiveness?

Particulars No. of respondents Percentage

Education 40 40%

Likings 20 20%

Standard of living 20 20%

Other reasons 20 20%

Total 100 100%

Pie Chart:

Inference:

Above chart reveals that among 100 respondents 40% of the respondents
said that education is the reason for difference of advertising effectiveness while 20%
said likings, 20%said standard of living and 20% said other reasons for the difference of
advertising effectiveness.

53
CHAPTER - 6
FINDINGS

FINDINGS

96% of the respondents view that advertisement of cool drink is required.

54
92% of the respondents are of opinion that they have seen the advertisements on
T.V.

60% of the respondents like the advertisements due to theme.

94% of respondents recall the advertisement of BCL Refind Oil .

60% of respondents are view that advertising is very necessary for sale of Refind
Oil .

60% of the respondents view that T.V. is presenting the advertisement is


necessary for sale of BCL Refind Oil .

84% of the respondents agreed that advertisement of BCL Refind Oil create
awareness about brands and make to consume product.

73% of the respondents view that advertising gives effect on their consumption
of Refind Oil .

79% of respondents views that famous personalities and slogans are necessary for
advertisement of BCL Refind Oil .

83% of the respondents said that famous personalities affect their brand choice.

82% of the respondents view that advertisement reminds them brand name while
purchasing.

88% of the respondents said that advertisement of BCL Refind Oil helps them to
make better selection.

86% of the respondents view that they satisfied with the performance of /quality
of product which is seen by advertisement of BCL Refind Oil .

64% of the respondents said that advertisements of BCL Refind Oil should be in
regular time to get effective.

55
83% of the respondents view that advertisements of Refind Oil make them loyal
towards its brands.

40% of the respondents said that education is the reason for difference of
advertising effectiveness.

SUGGESTIONS

Media should be selected according to the choice of customers.


To give more attention in making the advertisement to make it effective for the
sale of cool drink.

It should be attractive one so that people are attracted toward the advertisement.

The indoor media only reach to more no. of customers so, that the advertisement
of BCL also can advertise in local channels and local newspapers.

The advertisement should be in regular time.

Can advertise is more outdoor media because it cost is very less compare to other
media and also it can reach some time more customers mind.

Advertisement in newspapers media now not in front page, if that advertisement


in FrontPage means it can reach more customers.

BCL should conduct periodical study to know the level of customer satisfaction.

Like postal advertisement is very cheap and also it can reach our customer regular
time period means we can retain our customer and we can maintain good
relationship with customers.

56
QUESTIONNAIRE

57
A Study on Advertising Effectiveness of BCL Refind Oil

Background Information

I) Name : ____________________________________

II) Age : ____________________________________

III) Qualification : ____________________________________

(i) Illiterate (ii) Below metric

(iii) Metric (iv) Graduate

(v) Postgraduate

1) Do you see the advertisements? ( )

(a) Yes (b) No

2) Do you think advertisement of cool drink is required? ( )

(a) Yes (b) No

3) Have you seen the advertisements of BCL Refind Oil ? ( )

(a) Yes (b) No

58
4) Through which media you have seen it? ( )

(a) T.V. (b) Newspapers

(c) Magazines (d) Others

5) Do you like the advertisements of BCL Refind Oil ? ( )

(a) Yes (b) No

6) Why do you like the advertisements of BCL Refind Oil ? ( )

(a) Yes (b) No

7) Could you recall any advertisement of BCL Refind Oil ? ( )

(a) Yes (b) No

8) Do you think advertising is necessary for sale of Refind Oil ? ( )

(a) Necessary (b) Very necessary

(c) Not necessary (d) cant say

9) Which media is presenting the advertisement is necessary for sale of BCL Refind
Oil ?

(a) T.V. (b) Newspapers ( )

(c) Magazines (d) Others

10) Did the advertisements of BCL Refind Oil create awareness about brands and
make to consume product? ( )

59
(a) Yes (b) No

11) Did the advertisement give affect on your consumption of Refind Oil ?

(a) Yes (b) No ( )

12) How frequently you take Refind Oil ? ( )


(a) Once in a day (b) Twice in a day

(c) More than twice (d) Not regular

13) did the Famous personalities and slogans are necessary for advertisements of BCL
Refind Oil ? ( )

(a) Yes (b) No

(c) Cant say

14) Did the famous personalities affect your brand choice? ( )

(a) Yes (b) No

(c) Cant say

15) Do you agree that advertisement reminds you brand name while purchasing?

(a) Yes (b) No ( )

(c) Cant say

16) Do you agree that advertisements of BCL Refind Oil help you to make better
selection?

(a) Yes (b) No ( )

60
(c) Cant say

17) Do you satisfied with the performance/quality of product which is seen by


advertisements BCL of Refind Oil ? ( )

(a) Yes (b) No

18) Do you think advertisements of BCL Refind Oil should be in regular time to get
effective? ( )

(a) Yes (b) No

(c) Cant say

19) Did the advertisements of BCL Refind Oil make you loyal towards its brands?

(a) Yes (b) No ( )

(c) Cant say

20) Which reason you find for the difference of advertising effectiveness?

(a) Education (b) Likings ( )

(c) Standard of living (d) other reasons

Suggestions: __________________________________________________________

61
BIBLIOGRAPHY

62
Textbooks:

Zikmund, William G. Business Research Methods Thomson south western 7 th

edition.
Philip kotler, Marketing Management prentice hall of India, 13 edition.
th

Chunawalla, S.A., Foundation of advertising theory & Practice. Himalaya


Publishing House, 5 edition.
th

Newspapers:

Hindustan Times.
Times of India.

Magazines:

The Times.
4Ps.

Internet Sources:

www.wikipedia.org.
www.BCL india.co.in.

63