A STUDY ON INFLUENCE

OF ADVERTISEMENT IN
CONSUMER BRAND
PREFERENCE
(Special Reference to Soft Drinks Market)
INTRODUCTION
■ Marketers’ survival depends on consumer satisfaction. Consumer
satisfaction depends on their perception and brand preference of
the particular brand. In brand preference, advertising plays a
major role. Nearly everyone in the modern world influence to
some degree by advertising.
■ Organizations in both public and private sectors have learned that
the ability to communicate effectively and efficiently with their
target audiences is important to their success. Soft drinks
become essential in lifestyle of the people in the society. There
are number of soft drink brands are available in the market.
■ In those brands, some brands are very famous not only in India
but also globally. For the research purpose researcher has taken
Pepsi, Coca-Cola, Fanta and sprite are selected.
 SOFT DRINKS
INDUSTRY IN INDIA-
AN OVERVIEW
 Soft Drinks
■ The 50-bn-rupee soft drink industry is growing now at 6 to 7%
annually. In India, Coke and Pepsi have a combined market
share of around 95% directly or through franchisees. Campa
Cola has a 1% share, and the rest is divided among local
players. Industry watchers say, fake products also account for
a good share of the balance.

Source- NIIR PROJECT CONSULTANCY SERVICES (NPCS)

 Market
■ There are about 110 soft drink producing units (60% being
owned by Indian bottlers) in the country, employing about
125,000 people. There are two distinct segments of the market,
cola and non-cola drinks.
■ The cola segment claims a share of 62%, while the non-cola
segment includes soda, clear lime, cloudy lime and drinks with
orange and mango flavors.
■ The present Indian soft drink market can be at best described as
a duopoly, with two major players viz. Coke and Pepsi, both
having sufficient monopoly power over the consumer.

Source- NIIR PROJECT CONSULTANCY SERVICES (NPCS)

 Market
Cola products account for nearly 61-62% of the total soft drinks
market.
■ Two global majors’ Pepsi and Coke dominate the soft drink
market.
■ NCAER survey says 91% of soft drink in the country is in the lower,
lower middle and upper middle-class people.
■ The market is worth around Rs.5000 cores with growth rate of
around 10-15%.
■ The production as soft drinks has increased from 5670 million
bottles in 1998-99 to 9783 million bottles in 2017-2018 industry
sources.
■ Growth market this year is expected to be 10-15% in value terms
and 20-22% in volume of terms
Source- NIIR PROJECT CONSULTANCY SERVICES (NPCS)
LITERATURE REVIEW
 Source Findings

Employing celebrity endorsers Advertising employing celebrity

enjoys high popularity for brands - endorsers enjoys high popularity
Amos et al., 2008 vol1 Pg. 10 among brand managers
The chemistry behind branding Strong, unique, and favorable
and advertising - Krishnan, 2011 brand associations help
Pg. 22 companies differentiate their
products from those of
competitors and thus support a
competitive advantage
 Source Findings

celebrity endorsement of brands It was observed that consumers

by Escalas & Bettman,2015 Pg. associate or dissociate
55 themselves from brand based on
celebrity endorsement on the
basis of their self-related needs,
such as “self-enhancement.”
“Consumers may construct their
self-identity and present
themselves to others through
their brand choices based on the
congruency between brand-user
associations and self-image
associations”
 Source
Advertising Exposure, Loyalty, and
Brand Purchase: A Two-Stage
Model of Choice
Gerard J. Tellis
First Published 1st May 2014
Findings
The effect of advertising is
generally nonlinear and its
impact on volume purchased is
mediated by brand loyalty.
Advertising seems to reinforce
preference for current brands
rather than stimulate brand
switching. However, features,
displays, and especially price
have a stronger impact on
response than does advertising.
The effect of brand loyalty
dominates that of the other
 Source
The effects of peripheral
exposure to information on brand
preference.
Erik L. Olson
Published on 1st May 2003
Findings
Small but meaningfully sized
group of subjects fully processed
the information on brands they
were exposed to, and rated those
brands significantly higher than
other brands where they had only
seen the brand name alone. This
finding was strongest for a
fictional new brand, but also
present for a well‐established
brand.
 Source
A PLS Model to Study Brand
Preference: An Application to the
Mobile Phone Market
• Paulo Alexandre O. Duarte
Published on 16th November
2009
Findings
The results reveal that brand
identity, personality and image,
together with self-image
congruence have the highest
impact on brand preference.
Some other factors linked to the
consumer and the situation also
affect preference, but to a lesser
degree.
 Source
A PLS Model to Study Brand
Preference: An Application to the
Mobile Phone Market
• Paulo Alexandre O. Duarte
Published on 16th November
2009
Findings
The results reveal that brand
identity, personality and image,
together with self-image
congruence have the highest
impact on brand preference.
Some other factors linked to the
consumer and the situation also
affect preference, but to a lesser
degree.
 Source Findings
Can Repeating an Advertisement Would regular users of
More Frequently than the established brands be
Competition Affect Brand susceptible to the influence of
Preference in a Mature Market? advertisements that are repeated
Ram C. Rao more than the competition, even
Published on 1st April 2015 if they have heard the
advertisements before? The
authors conducted an experiment
to find out. The results were that
people are affected by watching
the same advertisement
repeatedly.
 Source
The Effects of Music in
Advertising on Choice Behavior
Gerald J. Gorn
Published on 22nd May 2011
Findings
The results of an experiment
using a classical conditioning
approach suggest that hearing
liked or disliked music while
being exposed to a product can
directly affect product
preferences. A second
experiment differentiated
communication situations where
a classical conditioning approach
or an information processing
approach might be appropriate in
explaining product preference.
NEED AND SCOPE
OF THE STUDY
• Review of literature suggests that a number of studies have been
carried out to study the consumers preference of soft drink
brands.
• There have been various attempts to find out that how customers
or potential customers decision making is affected by
advertisements.
• With a change in consumers’ attitudes and perceptions regarding
the health enhancing role of these products and the consequent
changes in the purchase behavior of the consumers, there arise a
need to study and analyze the effect of advertisements on a
consumer’s decision of which brand to purchase.
RESEARCH GAPS
IDENTIFIED
Review of literature suggests that there are a number of research
gaps which are listed below

1. There is a need for a better understanding of the motivational

factors which affect a consumer’s decision making.

2. Most of the existing studies have studied a very broad and

multiple categories of drinks and there is a need for a study of
specific brands of soft drinks.

3. As the Indian soft drink market is experiencing a significant

growth, there is a need for a comprehensive study on understanding
the market potential and consumer behavior for soft drinks.
OBJECTIVES OF THE
STUDY
• To study the influence of the advertisements on the brand
preference of consumers, with special reference to soft drink
market.

• To study the consumer perception regarding the most effective

media (Print, Electronic, Internet) for Advertisements with special
reference to soft drink market.
 RESEARCH
METHODOLOGY
 Research Design
■ A research design is a framework or blueprint for
conducting the marketing research project. It specifies the
details of the procedures necessary for obtaining the
information needed to structure and/or solve marketing
research problem. The research design used in this project
is Descriptive research design.
 Sample Design
■ Sampling Technique Used - Convenience Sampling.
■ Sample size. For this study, a sample of 138 has been
taken.
■ Data collection instrument is Questionnaire
 Source of Data
Primary data: It is the first-hand information collected through
questionnaire. The primary data collected through the field
surveys were analyzed with the help of computer software.
Suitable mathematical and statistical techniques like average,
standard deviation have been employed for data analysis.
 ANALYSIS AND
INTERPRETATION OF
DATA
Brand Choice
 Reasons for Consuming Soft Drinks
Chart Title
80 120.00%

70
100.00%

60

80.00%
50

40 60.00%

30
40.00%

20

20.00%
10

0 0.00%
Parties and celebrations With fast food and dinner Feeling of thirst Without any reason Other
2 3 1 4 5

Frequency Percentage
Motivating Factors to Buy Soft Drinks
Sources of information about Soft Drinks
Most Attractive Factor in Advertisement
How effective are newspaper advertisements
How effective are Television Advertisement
How effective are Internet Advertisement
 ANOVA Test for most effective media of
advertisement

For ANOVA the researcher has taken the following hypothesis:

Ho: All the three media of advertisements are equally influencing the
customers brand choice.

H1: All the three media of advertisements do not have the same
influence on the customer brand choice.
ANOVA Test for most effective media of
advertisement
Table 1 effectiveness of media of advertisement
ANOVA Test for most effective media of
advertisement
Table 2 – different media of advertisement
ANOVA Test for most effective media of
advertisement
Table 3 degree of effectiveness of each media
ANOVA Test for most effective media of
advertisement
Table 4 - ANOVA
CONCLUSION AND
FINDINGS
Quite a number of important conclusions can be drawn from the
findings of this study.

■ Many consumers do not buy whatever is available or affordable if

a product is good value for its price, it will command brand loyalty
■ Advertising helps in projecting product quality and value before
the consumers.
■ This study revealed that Television is currently the most potent of
all media used in advertising a product.
MANAGERIAL
IMPLICATION/
SUGGESTIONS
■ Research continuously into quality improvement that will make
consumers enjoy good value for money paid to purchase the brand.

■ Develop more effective advertising campaign that attracts

consumer’s attention and capture their interest. The company’s
advertising messages should both be persuasive and reminder-
oriented.
QUESTIONNAIRE
Thank You