Effect of Advertisement on Sales Volume and Customer

Satisfaction
(A Case Study of Coca-Cola
Soft Drink Company)

A Research Report Submitted in Partial Fulfillment of the

Requirements of BA Degree in Management.

By: Eyerusalem Abiy

Advisor: Asres Abitie (MA)

Department of Management
College of Business and Economics
Jimma University

May 2012
Jimma, Ethiopia
 Abstract
Now a days, many companies engaged in production and distribution of
different products in order to make heavy investment on promotion. This
research was conducted to identify the effect of advertisement on sales
volume and customer satisfaction of coca-cola soft drink company
products. In fulfilling the above objective, the study was designed to
identify the major role which is played by advertisement. The study was
based on both secondary and primary data, the secondary data were
collected from records, books, published and unpublished documents
etc. Self-administered questionnaires were distributed to the customer
and structured interview was conducted with managers and officers. The
study used judgmental sampling technique for the customers. The data
for the study were analyzed by using descriptive form of data analysis
such as percentage, pie-chart tables.
The findings of the study show, that coca-cola company exercised effect
of advertisement on sales volume and customer satisfaction with some
limitation i.e. most of the time the advertisement is made by foreign
language and the representative office are not work more on local way.
The company do not work more on TV media. Based on the findings
conclusion and recommendation forwarded to solve this problem.

I
 Acknowledgment

First and fore most, I would like to thank God for bring me up to now.
Secondary, I would like to thank my advisor Asres Abitie. For correcting
my errors and give me comments. Finally, I would like to thank Fitsum
Asrat for her secretarial services.

II
 Table of Contents

Abstract..............................................................................................................................I
Acknowledgment...........................................................................................................II
Table of Contents...............................................................................................................III
Chapter one..........................................................................................................................1
1. Introduction......................................................................................................................1
1.1. Background of the Study..........................................................................................1
1.2. Statement of the problem...............................................................................2
1.3. Objectives of the study....................................................................................3
1.3.1.General objective................................................................................................3
1.3.2. Specific objects..................................................................................................3
1.4. Significance of the study................................................................................4
1.5. Scope of the study............................................................................................5
Chapter Two....................................................................................................................6
2. Literature Review......................................................................................................6
2.1. Developing and Managing an Advertising Program................................................6
2.1.3. Advertising Effectiveness..................................................................................9
2.1.4. Deciding on the Advertising Budget...............................................................10
2.1.5. Choosing the adverting message.....................................................................12
2.1.6. Advertising Channels.......................................................................................12
Chapter Three...............................................................................................................14
3. Methodology..................................................................................................................14
3.1. Sources of data........................................................................................................14
3.2. Method of data collection.......................................................................................14
3.3. Sampling technique and sampling size...................................................................14
3.4. Data processing and analysis..................................................................................15
3.5. Data presentation and interpretation.......................................................................15
Chapter Four.................................................................................................................16
4. Data Presentation and Analysis.........................................................................16
Chapter Five.......................................................................................................................28
5. Recommendation and Conclusion.................................................................................28
5.1. Recommendation....................................................................................................28
5.2. Conclusion..............................................................................................................29
Reference...........................................................................................................................30
Appendix.........................................................................................................................31

III
 Chapter one
1. Introduction

1.1. Background of the Study

Advertising is the paid communication of company messages through
impersonal media. The messages may be audio, as in radio, visual as in bill
boards or magazines; or audiovisual, as in television or cinema advertising.
advertising every where include paving the way for the sales force, gaining
distribution, selling products, improving brand images and so on (Terpstra,
1997; p.108).
The creative people must have a clear idea of the characteristics of avoidance
expected to be exposed to the message. (Michael R and Ilkka A., 1998; p. 651)

The effective implementation of the promotional program is a key ingredient in

the marketing success of the firm. The advertising tools must be used within
the opportunities and constraints posed by the communications channels as
well as by the lows and repudiations governing marketing communications.
(Michael R and Ilkka A, 1998; p.668)
Due to different reasons, the researcher tries to fill the gap by seeing different
researchers work. To fill this gap the researcher used the following ideas.
 Peoples need to know about detail product features.
 Problem of choosing the correct adverting media
 In what best way that the advertisement can be able to address the expected
message?
 To have the customers a better purchasing preference.

1.2. Background of the Organization

Coca-cola was first bottled in Ethiopia capital Addis Ababa in 1959 by the Ethiopian bottling
share company. The coca-cola company has employees of 410.With its leadership working hand

4
in hand the business has seen significant growth over the years .processed and functions have
been improved, resulting in considerable sales increases.

Ethiopia enjoy a range of beverage from East Africa bottling Share Company including those
From the sprit, fanta coca-cola group.

Vision, mission and objective of the organization

Vision
It is vision serves as the frame work for its road map and guides every aspect of its business by
describing what it need to accomplish in order to continue achieving sustainable quality growth.

 People; be a great place to work where people are inspired to the best they can be

 Portfolio; bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people’s desire and needs.

 Partners; Nurture a winning network of customers and suppliers, together we create

mutual, enduring value.

 Planets; be a responsible citizen that makes a difference by helping build and support
sustainable communities.

 Profit; maximize long-term return to share owners while being mindful of our overall
responsibilities

 Productivity; be a highly effective lean and fast-moving organization.

Mission
It declares its purpose as a company and serves as the standard against which it weights its action
and decision.

 To refresh the world.

 To inspire moments of optimism and happiness.
 To create value and make a differences.

Objective
The coca-cola company has the following objectives.

 Being a responsible citizens that make a difference by helping build and support
sustainable communities.
 Being productive and satisfy customers
 Be effective and faster mover organization

5
6
 1.3. Statement of the problem
Most of the time there is a problem on the process of making advertisement.
Among the problems the advertisement cannot consider those group who need
to know about the product features, the time of advertisement and advertising
agency. Addressing the advertisement in short and brief way so that it can be
able to address the required information and it take into consideration to
decrease the cost incurred for the advertisement and to give clear information
to the customers. Choosing the best suitable time for advertisement and proper
advertising agency are the most important issues that the company should give
due attention.

Therefore, this study has the purpose of investigating whether the

advertisement really influences the sales volume of the product. And reduce
the information gap of the subject and were contribute to work better
understanding on improved strategies for reorienting the advertisement system
for the benefit of the company.

In this connection the study was find answers for the following basic research
questions.
 Does the current advertisement of coca-cola soft drink company has an
influence on it sales volume and its customers?
 Does the customer and distributors attitude favor towards the
advertisement of the company?
 Does the advertisement of the company enough to facilitate communication
with customers and towards the sales volume of the product?
 Do customers satisfied by the company’s advertisement strategy?

7
1.4. Objectives of the study

The objective of the study has two parts:

1.4.1.General objective:
Of the study is to indicate the role of advertisement on sales volume and
customer satisfaction.

1.4.2. Specific objects

1. To identify whether the advertisement really influences the sales volume of
the company and its customers.
2. To find out customers and distributors attitude towards the advertisement
of the company.
3. To identify the way that the organization dealing with customers and sales
volume of the product.
4. To identify customer satisfaction up on advertisement strategy of the
company.
5. To forward recommendations as a possible solution on for the identified
problem.

8
1.5. Significance of the study

Every research had something to contribute since a lot of time and energy
however, this study is significant because it was enables one to know the
marketing strategies that coca-cola company is using in order to facilitate
customer to prefer the company product to other competitive product.

 For researcher, the study would helps to relate the theoretical knowledge,
with what is going on in the real world.
 The recommendations on the findings was help the company to understand
the strength and weakness of its advertising activities.
 It also helps as a base for researchers which would be conducted on the
same and related topic.
 At organizational level, it was enable them to know at what extent the
product and customer satisfaction will go.

9
1.6. Scope of the study

The study focuses on the advertising activity of coca-cola soft drink company
and its impact on the sales volume of the products and customer satisfaction.
The area coverage of this study was limited to Addis Ababa city, especially
Lideta Branch. The type of product would be limited to only coca-cola soft
drink Company.

When we see time, it uses limited time to do all effects in Addis Abeba city. But,
it become limited to only Lideta Branch therefore, we use enough time to
analyze and do the effects of sales volume and customer satisfaction Branch.
The researcher collects data from customers and employees of the company.

10
 Chapter Two
2.Literature review

2.1. Developing and Managing an Advertising Program

Advertising is any paid form of non-personal presentation and promotion of
ideas, goods or services by an identified sponsor. Advertisements are a cost-
effective way to disseminate messages, whether to build brand preference for
coca-cola or to educate a nation’s people to avoid hard drugs (Kottler, 1998,
p.637).

Organizations handle their adverting in different ways. In small companies

advertising handled by someone in the sales or marketing department, who
works with an adverting agencies. A large company will often set up its own
advertisement department. The advertising department job is to develop total
budget.

In developing an adverting program, managers must always start by identifying

the target market and buyer motives. Then they can proceed to make five major
decisions in developing an advertising program, known as the five M’S.
 Mission: what are advertising objectives?
 Money: How much can be spent?
 Message: what message should be sent?
 Media: what media should be used?
 Measurement: how should the results be evaluated (Kottler, 1998;
p.637).

11
2.1.1. Setting the advertising objectives

The first step in developing an adverting program is to set the adverting

objectives.

Advertising objectives can be classified according to whether their aim to

inform, persuade or remind.

1.Informative advertising: where the objective is to build primary demand.

Thus the coca-cola company initially had to inform consumers of coca-coal and
its other products benefit and many uses.

2.Persuasive advertising: becomes important in the competitive stage, where a

company’s objective is to build selective demand for a particular brand. Most
advertising falls into this category. Some persuasive advertising which seeks to
establish the superiority of one brand through specific comparison of one or
more attributes with one or more other brands in the product class.

3.Reminder advertising: is highly important with mature products. Expensive

four-color coca cola advertisement magazines have the purpose not of
informing or persuading but of reminding people to purchase coca cola. A
related form of advertising is reinforcement advertising, which seeks to assure
current purchasers that they have made the right choice.

The choice of the advertising objectives should be based on a through analysis

of the current situation. For example, if the product class is mature, the
company is the market leader and brand usage is low. The proper objective
should be to stimulate more brand usage. (Kottler, 1998, pp. 638-639)
2.1.2. The role of advertising

12
 The role of advertising from advertisers view is that it increases
profitability, even though it is difficult to quantify precisely to what extent.
Those role of advertisings are stated more explicitly below.
1. To increase demand: to the point where economies of scale are achieved.
The advertiser may wish initially to build primary demand for the
product as a whole, anticipating that he will benefit proportionally from
the overall growth of the market.

2. The building of a “brand image”: in a competitive, mature market has

other benefits in addition to maintaining or improving the firm’s
competitive position. Brand recognition and brand loyalty relieve the
producer of their dependence on the distributive channels.

3. Information gathering: invariably precedes the purchase of a product to

some degree and clearly, the ready availability of such information in the
form of advertisements reduces the prospective purchaser’s dependence
on personal selling.

4. Most firms are subject to a fluctuations demand for their output, be it

seasonal, cyclical or secular, and advertisement can do much to
minimize such fluctuation through its impact is greatest in the case of
seasonal variations.

5. finally, it is maintained that advertising improve profitability:- in a less

tangible way by creating good will for the firm as a whole and by
improving the morale of its employee, everyone likes to work for a well
known firm. (Michale J. Baker, 1996; p.p.366 -367).

13
2.1.3. Advertising Effectiveness
1. The impact of advertising on brand switching: Tellis analyzed housed
consumer product and concluded that advertising appears effective in
increasing the volume purchased by local buyers but less in winning new
buyers.

2. The effect of surroundings : advertisement may be more effective when their

message is congruent with their surroundings. For age a “happy”
commercial placed with in art show is more likely to be effective than a
down commercial in the same place. Similarly “serious” commercial usually
works best when placed within a serious program. In addition, people are
more likely to believe a TV or Radio advertisement and become more
positively disposed toward the brand it supports.

3. The effect of positive versus negative messages: consumers may sometimes

respond more to negative messages than to positive messages.
The impact of the loss-oriented message was much stronger than the impact
of the gain-oriented message.

4. Advertising versus sales promotion: where advertising offers a reason to

buy, sales promotion offers an incentive to buy, sales promotion includes
tools for consumer promotion, trade promotion and business and sales force
promotion- sellers use incentive type promotions to attract new customers,
to reward loyal customers, and to increase the repurchase rates of
occasional users. (Kottler, 1998;p.p. 661).

14
2.1.4. Deciding on the Advertising Budget

The role of advertising is to increase demand for the product or to increase

sales volume and customer satisfaction. The company wants to spend the
amount required to achieve the sales goal. But how does a company know if it
is spending the right amount? If the company spends too little, the effect will
be in significant. If the company spends too much on advertising, then some of
the money could have been put to better use. Although advertising is treated as
a current expense, part of it is really an investment that builds up an
intangible value called good will or brand equity. (kottler, 1998; p. 639).

There are five specific factors to consider when setting the advertising budget:
1. Stage in the product life cycle:- new products typically receive large
advertising budgets to build awareness and to gain consumer trial.
Established brands usually are supported with lower advertising budgets as
a ratio to sales.
2. Market share and consumer base:- high market share brands usually
require less advertising expenditure as a percentage of sales to maintain
their share. To build share by increasing market size (sales volume) requires
larger advertising expenditure. Additionally on a cost-per impressive basis,
it is less expensive to reach consumers of a widely used brand than to reach
consumers of low-share brands.
3. competitive and clutter:- in a market with a large number of competitors
and high advertising spending, a brand must advertise more heavily to be
heard above the noise in the market.
 Even simple clutter from advertisements not directly competitive to
the brand creates a need for heavier advertising.
4. Advertising frequency: the number of repetitions needed to put across the
brand’s message to consumers has an important impact on advertising
budget.

15
5. Product substitutability: brands in a commodity class. example, soft drink
require heavy advertising to establish a differential image. Advertising is
also important when a brand can offer unique physical benefits or features
(Kottler, 1998; p. 640).

16
2.1.5. Choosing the adverting message
The creative people must have a clear idea of the characteristics of the
audience expected to be exposed to the message. In this sense, the principles of
creating effective advertising are the same as in the domestic market place. The
marketer must determine what the consumer is really buying, that is the
customer’s motivations these will vary depending on the following.

1. The diffusion of the product or service into the market. Example, to

penetrate third world markets with business computers is difficult when
potential consumers know how to type.
2. The criteria on which the customer will evaluate the product.
3. the product positioning

The ideal situation in developing message strategy is to have a world brand a

product that is manufactured, packaged and positioned the same around the
world. Companies that have been successful with the global approach have
shown flexibility in the execution of the campaigns. The idea may be global, but
overseas subsidiaries then tailor the message to suit local market. The
localization international symbols and using international advertising agencies
(Michael R. and Ilkka A. 1997; p.p. 651-652)

2.1.6. Advertising Channels

1. Magazines: the major factor which differentiates a magazine from a news
paper is that the former preselect its readership through the nature of
its content. A second destining using feature is that is it read at leisure.
a. General magazine: so designates because of their general appeal
contrasted with.
b. Specialist magazine: which cater for the readership with clearly
defined and specific interest.

17
 c. The retail trade press: this subdivision’s justified because of the
mediums importance in “selling-in” a product prior to the start of a
campaign.
2. Television: is a relatively recent development in the field of advertising
media and as inferred when reviewing the national press impact has
been enormous.
Interims of expenditures, TV is second only to the press as a whole and
its growth in recent years has consistently exceeded that of all other
media.
3. Radio: time is sold on a “spot” basis (like TV) but peak periods are
different being highest in the morning and evening rush- house.
4. outdoor advertising: often thought of as consisting solely of the poster
medium as with the press and the cinema, the advent of commercial
television resulted in outdoor advertising having to reappraise its role as
an advertising medium.
5. News paper: news papers particularly the financial pages are most
selective each news paper has its own readership and each has different
editorial characteristics that can be expected to have some influences on
reader’s altitudes.
6. Posters: posters tend to deliver a message repeatly since they do not
change their site but the message reaches virtually the same people over
again.
7. Direct mail: direct mail is “printed material mailed direct to customer”
addressed to entice prospective customers or donors.
8. The cinema: the impact of television on the cinema is readily apparent in
any major town where former sites have been converted into bingo halls,
where houses or simply pulled down to make way for redevelopment.
(Michale J.Baker 1996; p.p. 376-388)

18
 Chapter Three

3. Methodology

3.1. Sources of data

Both qualitative and quantitative data were collected, from primary and
secondary sources. This study used both primary and secondary sources of
data.

3.2. Method of data collection

The researcher use structured personal interview and self-administered
questionnaires were utilized to collect the relevant primary data, it were
collected from the customers and distributors by using scheduling
questionnaire in order to consider illiterate respondent.

In structured interview it is completed by the interviewer based on what the

respondent says and they are easier for respondent, especially what is sought
is opinions or impressions, the interviewer works directly with the respondent
so the interviewer had the opportunity to probe or ask follow up questions.

In self-administered questionnaire: the researcher prefers this technique to

design or to achieve cost and time minimization. By limiting time and cost the
researcher do more other necessary things about the research. The secondary
data were collected through reviewing secondary sources.

3.3. Sampling technique and sampling size

Judgment sampling technique, it was used to select the sample size from the
population. It enabled to select respondents or neutral peoples that provide
relevant information and it is low cost terms of money and save time.

19
Therefore, 8 distributors and 100 customers were selected from population
interest of the study.

3.4. Data processing and analysis

After the relevant data was collected it was processed through edition, coding,
classify and also analyzed. The data analyzation process was based on
descriptive form of data analysis method. Closed ended questions were
analyzed by tables and percentages. Response that were collected by open-
ended questions and unstructured interview analyzed by coherent and easily
understandable manner.

3.5. Data presentation and interpretation

The data were presented by using tables, figures and charts. Descriptive statistics was employed
to examine the findings of the study.

20
Chapter Four

4. Data Presentation and Analysis

This study was conducted to assess effect of advertisement on sales volume
and customer satisfaction of coca-cola soft drink company products. As it was
proposed previously structured questionnaires were prepared to be filled by
selected 8 distributors all of them are responded. From the proposed figure; 93
of the customers were responded. The results obtained are analyzed in this
chapter

4.1. Characteristics of the customers

Before going to the main part of the study it could be appropriate to present
the characteristics or background information of the study participants.
The figure below presents the sex distribution of the respondents.

40%
Key
KEY
FEMALE
54%
MALE

Figure 1: sex distribution of customer

Source: own survey, primary data
As indicated on the above figure, out of the total respondents 53(75%) of them were Female
where as 40(43%) Males. This shows that the proportion of Female was higher than Male. So,
Most of the females were not prefer to drink alcoholic beverage because of social ,cultural and
religious influences. Therefore, in order to satisfy there need they prefer to drink soft drink

21
products, as indicated on the above data most of the females were highly correlated with coca
cola company products.

Table 4.2 customer’s background

Respondent in
No Item Response No %
1. Age 18-30 36 37.7
31-45 35 37.6
46-60 14 15
>60 8 8.7

Total 93 100
2. Religion Muslim 45 48.3
Orthodox 20 22
Protestant 23 24.7
other 5 5
Total 93 100
3. Occupation Government employee 48 51.6
Merchant 3 3.2
Private worker 38 40.9
Other 4 43
Total 93 100
Source: own survey

According to the information observed on table 2, most of the customers 36(38.7%) were age
between 18-30, 35(37.6%) were between 31-40 followed by 14(15%) between 46-60 and the rest
8(8-7%) were greater than 60. this shows that age between 18-30 were the main customers of the
company.

As we know coca-cola is the product of foreign country. So the advertisement of coca-cola was
made by foreign mass media like super sports on internet web and other related media, this
media is now a days dominated by adult (18-30) age. This shows that they are more aware of
coca-cola product than other age groups.

22
As shown on the above table, based on the religion most of the customers 45(48.3%) were
Muslims followed by 23(24.7%) protestant, 20(22%) orthodox and the rest 5(5%) were others
such as catholic. This shows that most of the customers were Muslims because they were not
alcoholic in this way they prefer to use coca-cola.

Finally, as shown on the above table, based on the occupation most of the customers 48(51.6%)
were government workers followed by 38(40.9%) private workers, 4(4.3%) other workers and
the rest 3(3.2%) were merchant. This shows that government employees are the main customers
of the company because they have a definite or constant amount of money. But, private sectors
may not have constant amount of money.

40
35
30
25
20
15
10
5
0
Monthly income Birr <500 Birr >501 - 1000 Birr 1001 - 2000 Birr >2000
level of cus-
tomersSource: own
survey, primary data

Figure2. Monthly income level of customers

Key
Source: own survey, primary data
One of the determining factors for consumption of any product is income of
customers. As indicated on figure 2, regarding the income level of respondents,
37(39.8%) earned greater than birr 2000, followed by 34(36.5%) birr 1001-
2000, 20(21.5%) birr 501-1000, 2(2.2%) less than birr 500.

23
From this we can conclude that the larger proportion of the respondents had
earned greater than 2000 and least of them had earned less than 500 birr. This
shows the more income they generate, the more coca-cola they use. Therefore,
the amount of money used can determine purchasing ability of the product.

Table 4.3 attitude towards a product of coca-cola company

No Question Measurement No of Percentage
respondent (%)
Do you drink a product of Yes 88 94.6%
Coca-cola company No 5 5.4%
Total 93 100%
Source: own survey, primary data

According to the data observed on the above table, most 88(94.6%) of

respondents were get or drink a product of coca-cola company. The other
5(5.4%) were not used a product of coca-cola company. From the above data
we can slimily say that most of the people drink a product of coca-cola
Company. This is because coca-cola company done more on advertisement and
related activities. Like the quality of the product, its sustainability to
environment, its healthy related credibility and others leads people to use the
coca-cola products.

Table 4.4. Customer’s preference to the products of the company

item of products number Percentage
(%)
Coca- Cola 71 76.3%
Sprite 16 17.2%
Fanta 6 6.5%
Fanta- apple - -
Total 93 100%

24
Source: own survey, primary data

As indicated on the above table, concerning customers preference to the

company products most of 71(76.3%) preferred coca-cola followed by 16(17.2%)
sprite, 6(6.5%) Fanta and none of drink Fanta apple. From the above data we
can simply say that coca-cola has highly preferred by the customers due to its
taste and its stimulation power to motivate people.

Table 4.5. Customers source of information of coca-cola company

Source of information Number Percentage (%)
While it makes advertisement 66 71%
Through word of mouth 17 18.3%
While it makes sponsors 4 4.3%
On exhibition and bazaars 6 6.4%
Total 93 100%
Source: own survey, primary data

According to the data observed on the above table, most 66(71%) of

respondents had gained information about the company is products while the
company makes advertisement, followed by 17(18.3%) oral communication
4(4.3%) through sponsorship on holidays and 6(6.4%) on exhibition and
bazaars. This shows advertisement is the main source of information for
customers.

Thus, the company had taken a great concern to its advertisement. In this way
advertisement can be addressed in different ways like TV, Radio and Printed
media, therefore; it can addressed to the customers easily.

25
 No. of customer

80
70
60 key
50
40
30
20
10
0
TV
Radio
Print media

Figure 3 Advertising media for which customers get information about the
company products through advertisement
Source: own survey, primary data

Indicated on the above figure, among 66(71%) of customers get information of

the company products through the advertisement, their indication for this
advertising media showed that, most 79(85%) television followed by 7(7.5%)
radio and 7(7.5%) printed media. From this we can conclude that TV was the
main advertising media. In this time, most of the people have TV and can
access advertisement.

Table 4.6. Customers interest towards the company’s advertisement

item Number Percentage (%)
Do you find the advertisement of the
company interesting?
Yes 86 92.5%
No 7 7.5%
Total 93 100%

As we observed on the above table, majority 86(92.5%) of customers stated as

the company advertising activity interesting of them where as the rest 7(7.5%)

26
 were negatively stated for the advertisement of the company. This shows that
the advertisement was interesting for most of the customers.

Different people have different attitude towards advertisement most of the

peoples likes it. Among 93 respondents in this study as indicated 86(92.5%)
like the advertisement of coca-cola soft drink company. This positive attitude
towards the company advertisement and the way of its presentation.

The other 7(7.5%) say no, this shows that they are not interested by the
advertisement of coca-cola. This is because, most of the advertisements were
not prepared locally.
Table 4.7. Customers evaluation on prices of coca-coal soft drink company
product
very high high average low very Total
Item of low
Products No % No % No % No % No % No %
coca-cola 39 42 36 38.72 13 14 5 3.3 - - 93 100
Sprite 33 35.5 45 48.4 9 9.7 6 6.4 - - 93 100
Fanta 11 11.8 4 4.3 63 67.7 15 16.2 - - 93 100
Fanta-apple 10 10.7 8 8.6 8 8.6 67 72.1 - - 93 100
Source: own survey, primary data

Since price is the sum of values that consumers exchange for the benefits of
having or using the product or service, it is the major factor or variable
affecting buyer’s choice. According to the data observed on table most 39(42%)
of customers indicated the price of coca-cola followed by 36(38.7%) high, where
as 67(72.1%) stated low price for Fanta-apple. Since, consumer perceive price
of the product effective, if quality of the product fits its ability to satisfy. This
implies that the price of the product need to consider to satisfy the customer.
Table 4.8. Attitude towards customer satisfaction
Item Number Percentage (%)

27
Do you find customer satisfaction make
the organization productive?
Yes 100%
No 93 0
0
Total 93 100%
Source: own survey, primary data

As we observed on the table, majority 93(100%) of customers stated on the

customer satisfaction make the organization productive where as the rest 0(0%)
were negatively stated for the advertisement of the company. This shows that
customer satisfaction makes the organization productive.

Table 4.9. Evaluation of coca-cola soft drink company pamphlet or

banners
Item Number Percentage (%)
Do you ever seen coca-cola soft-drink
company pamphlet or banners
Yes 93 100%
No - -
Total 93 100%
Source: own survey, primary data

From the above table we can see that 93(100%) of the study population see the
company pamphlets banners. This shows that the company pamphlet’s are
everywhere in the country. Therefore, coca-cola tries to address all of its
products to all over the country. By addressing the product to the country it
can gain acceptance and attract more customers.
Table 4.9. The place where pamphlets or banner’s exist
place Number Percentage
Bars, hotels and restaurants 32 34.3%
Shop 36 38.7%
Road side board 12 13%

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Cars and taxis 3 14%
Total 93 100%
Source: own survey, primary data
Now a day’s different companies and banners were viewed at a different place.
As indicated on the above table most customers 32(34.3%) saw the pamphlets/
burners in a place such as bars, hotels and restaurants, followed by 36(38.7%)
saw on shops, 12(13%) saw on road side boards and the remaining 13(14%)
saw on cars and Taxis. From this we can conclude that shops were the main
place for the company pamphlets/ banners to be seen by its customers.

Table 5.1. Effect of the company advertisement on its customers buying

rate.
place Number Percentage
Major effect 86 92.5%
Medium effect 7 7.5%
Little effect - -
No effect - -
Total 93 100%
Source: own survey, primary data

As indicated on the above table, most of the respondents 86(92.5%) agreed on

having major effect that the advertisement of the company on buying the
product, 7(7.5%) them agreed for its medium effect and the other little and no
effect have no responses. From the above result the company of coca-cola soft
drink could enjoy customer winning in the consumption of the product. The
effects are depending on customer satisfaction being enjoyment and frequency
of buying the company products than others. Therefore, the company can
increase the buyers rate through effective way of advertisement strategy.

29
 3

Customer response on
promotion
Yes
No

90

Figure 4: evaluating of coca-cola soft drink company effectiveness in promoting

its products
Source: own survey, primary data

Based on the information observed on the above figure most 90(96.8%)

respondents say its effective in promoting its product, the other 3(3.2%) say it’s
not effective. Most of the people sated that it also must be prepared in localized
ways.

According to the information about coca-cola soft drink products advertisement

to make more aware consumers, people need to have different kinds of prizes to
make themselves more aware about the product. On this way most of the
peoples need lower price but form day to day the prices of coca-cola soft drink
company products become high and high. In this way the company have to
consider to and make some kind of change.

30
The information from coca-cola soft drink company
management group

Advertising is found to be the major promotional tool which the factory uses to
introduce the different products available to build a permanent image in the
mind of customers.

The company’s update the advertisement by getting top line direction from
division office and the local team work on making its locally relevant.

The company believes that as advertisement affects the sales of the company
product. The company’s measure the sale effect of advertisement by comparing
previous sales data with present.

The advertisement affects the sales in two ways; long-term and short-term.
Where specific promotions give a short term sales boost, the thematic
campaigns (which are not related to a specific promotion) will help drive brand
association and affinity which is a long term benefit.

As the manager of the company concludes Advertisement is never enough, our

world is changing very fast and so do the behaviors of our target consumers.
We need to be on top of the game and continue to connect with our consumers
more than ever before by tapping their position points.

31
 Chapter Five

5. Recommendation and Conclusion

5.1. conclusion

The main purpose of this study was to investigate the effect of advertisement
on sales volume and customer satisfaction in case of coca-cola soft drink
company. It is concluded as follow,

The result of the analysis shows that among 93 respondents 53(57%) of them
are females and remaining 40(43%) of them are males and most of the
respondents 36(37.7) were under the group of (18-30) years. Concerning their
religious most of the respondents 45(48.3%) were Muslims. Regarding their
occupation the majority of the customers were government employee.

The study made on sales volume and customer satisfaction by using different
advertisement media like tv, radio, outdoor and print.

Customers need advertisement strategy to prepare locally by give for the

people awareness and satisfaction by making advertisement locally relevant.

Coca- cola Ethiopia representative office use its capacity to make customers
satisfied and to increase sales volume. This indicates the company give special
consideration to the issue because without customer satisfaction the company
can not increase its volume of sales and can not become profitable.

According to the findings, Advertisement is never enough, our world is

changing very fast and so do the behaviors of the target consumers. It need to
be on top of the game and continue to connect with consumers more than ever

32
before by tapping their passion points. Therefore, in order to keep customers
satisfied the coca-cola Ethiopia representative office must utilize different
kinds of media like radio, TV, outdoor and print.

5.2. Recommendation

On the bases of the survey the following are recommended as follow,

One of the causes for customers not interested about the company
advertisement is that, most of the time the advertisement is not prepared
locally. Therefore, in order to keep the customers interested and satisfied the
advertisement department should maintain a strategy to do more locally , the
action give awareness and satisfaction for the people that need to prepare
locally and not only for this people it makes interested but for all the people
who are aware by the company advertisement strategy.

The coca-cola company were not done much in 2011 by using TV. Rather the
company used the other media. Therefore, in order to gain a full image the
company need to work more on TV.

As the manager of the company stated Advertisement affects the volume of

sales in two ways; short-term and long-term ways, where specific promotions
give a short-term sales boost, the thematic campaign (which are not related to

33
a specific promotion) were help drive brand association and affinity which is a
long-term benefit.
The coca- cola Ethiopia representative office should give a due attention about
sales volume and customer satisfaction. Therefore, Top-management must
support sales volume and customer satisfaction by prepared an adequate
budget and the manager must give their personal support by make clear
communication with the department and it can keep customers satisfied and
increase the volume of sales.
According to the findings, advertisement is never enough, our world is
changing very fast and so do the behaviors of the target consumers. It need to
be on the top of the game and continue to connect with consumers more than
ever before by tapping their passion point. Therefore, in order to keep
customers satisfied the coca-cola Ethiopia representative office must utilize
different kinds of media like radio, TV, outdoor and print.

34
 Reference

1. Michael R. czinkota and ilkka A. Ronkainen, 1998. International Marketing,

5th edition, Harcourt Brace college publisher, USA.
2. Michael J. Baker, 1996, Marketing an Introductory text 6 th edition ,
Macmillan, London.
3. Philip Kottler, 1998, marketing management, 9 th edition, prentice-Hall of
India private limited, India.
4. Terpstra, 1997, International marketing, 7th edition, Harcourt Brace college
publishers, united states of America.

35
 Appendix
College of Business and Economics
Department of Management

The study is to assess the effect of advertisement on sales volume and

customer satisfaction in coca-cola soft drink company at Lideta Branch.

The questionnaire is developed to collect data from consumers and

employees of the organization.

General instructions
 Put “x” Mark on the box which relate to your answer for closed-ended
questions.
 Fill your response on the space provided for open-ended questions

I. Background Information
1. Age (in year)
18-30 46 – 60
31-45 > 60
2. Sex Male Female
3. Religion
Muslim Protestant
Orthodox Other Specify
4. Occupation
Government Employee Private Worker
Merchant > 2000
5. Income per month (in birr)
< 500 1001 – 2000
501 – 1000 > 2000

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II. Specific Information
1. Do you drink a product of coca- cola company?
Yes No
2. If “yes” to the above question, which one do you prefer?
Coca – cola Fanta
Sprite Fanta apple
3. How do you get information about coca-cola soft drink company
products?
While it makes advertisement
Through word of mouth
While it makes sponsors
On the exhibition and bazaars
Others, specify
4. If your answer for q. No 3 is While it makes advertisement in which
media?
Television printed media (News paper)
Radio other, specify
5. If your answer for q No 3 is Advertisement, do you find interesting?
yes No
6. If yes, what interested you most in advertisement?
_____________________________________________________________

7. when you consider prices of coca cola soft drink products in relation to
their quality, their price is
Very high high Average Low Very low
Coca cola
Sprit
Fanta
Fanta apple

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8. Do you think customer satisfaction make the organization productive?
__________________________________________________________________
______________________________________________________
____________________________________________________________
9. Have you ever seen the coca-cola soft drink company pamphlet or
banners. yes  No 
10. If yes, where is that? ________________________________________

11. How do you find the effects of advertisement on your rate of buying the
products?
Major effect Medium effect
Little effect No effect
12. If no, why

13. Do you think coca cola soft drink company advertisements are effective
in promoting its products?
Yes No
14. If no, how can be it improved

15. What do you recommend about coca cola soft drink products
advertisement to make more awareness to consumers

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 Interview Check List

This interview questions are prepared for the management group of coca-cola
soft drink Company.
1. What kinds of promotion are you commonly using?
2. What method are you utilizing most for advertisement budget?
3. Which media do you utilize most for advertisements?
4. Do you often advertise your products on TV?
5. Do you think that advertisement affects the sales of your product?
6. how do you measure the impact of advertising on your sales
volume and costumer satisfaction?
7. How do you up date your advertisement?
8. do you think that the current status of advertisement is quite
Enough to sustain the sales rate of your product?
9. what improvement do you suggest with respect to your
advertisement?
10. Have you conducted any assessment on the public about the
quality and effectiveness of your advertisement?

39