Escolar Documentos
Profissional Documentos
Cultura Documentos
behavior
SUBMITTED BY
Abhijit.shetty
04XQCM6001
I hereby declare that the research work embodied in this dissertation entitled
“a study on impact of Pepsi advertisements on consumer behavior”
Has been carried out by me under the guidance and supervision of Prof Jairaj
Nair, M.P.Birla Institute of Management, Bangalore.
I also declare that this dissertation has not been submitted to any other
University/ Institution for the award of any other Degree/Diploma.
Place: Bangalore
Date:
Reg No: 04XQCM6001
Certificate
This to certify that this report entitled “A study on impact of Pepsi
advertisements on consumer behavior”, has been prepared by
Mr. ABHIJIT.SHETTY, M P Birla Institute of Management in partial
Fulfillment of the award of the degree, Master of Business Administration at
Bangalore University, under my guidance and supervision.
This report or a similar report on this topic has not been submitted for
Any other examination and does not form a part of any other course
Undergone by the candidate.
I would like to extend my thanks to all the unseen hands that have
Made this project possible.
Place: Bangalore
Date: 17th June 2005 Abhijit Shetty)
EXECUTIVE SUMMARY:
The survey was conducted among the college students because the market for cellular
phones is huge. Questionnaire were prepared and distributed to get the suggestions about the
effectiveness of advertisement of Nokia Cellular Phones. By the survey, we came to know
about the various media that has to be used greater number of people in the market and the
strategies that has to be used for making the advertisement more effective when compared to
its competitors.
From the conclusion of this study we can come to the know what strategies can be
adopted such that the advertisement of Nokia Cellular phones can be made more efficient
when compared to their competitors. The medium of advertisement that has to hire
through which we can reach maximum number of people. The style, word and tone that
has to be used in the advertisement that attracts more number of people. The type of
feeling that is created by the advertisement and the strategies to adopt that attract the
people toward those feelings.
STATEMENT OF THE PROBLEM
RESEARCH APPROACH
1. Secondary Data:
Secondary Data refers to that which is compiled by some other than the other
Researcher for purpose not directly related to the research. These are readily available
For processing. This type of data relate to past period. The two main types of
Secondary data are Internal and External data.
The sources used for such data types are as follows:
A. Internal: the sources include company annual reports bulletins, research
Reports, etc.
b. External: the sources include:
• Published materials such as periodicals and books like business
Periodicals, marketing journals, general business and trade magazines, etc.
• Computerized databases such as internet databases and off-line
Databases (information available on Diskettes and CD-ROM disks).
2. Primary Data:
Primary Data refers to the data gathered for a specific purpose or for a specific
Research project. These data gives latest information. This type of data is obtained
from original sources. In this study, primary data is collected through
Questionnaire Method.
The approved questionnaire is the main tool used for data collection in this study. The
Questionnaire consists of structured and unstructured questions.
The questionnaire tool is mainly used because:
• Both qualitative and Quantitative information can be gathered.
• Factual survey can be done.
• Opinion survey in order to secure personal opinions or on a particular
Matter can be done effectively. This tool is administered through Personal
Interview with the target population.
SAMPLING PLAN:
1. Sampling Unit –
The sampling unit consists of college students for
Analyzing the advertising effectiveness on consumers.
2. Sampling Procedure –
How should the respondents be chosen?
The sampling technique chosen are Simple Random Sampling and Stratified
Random Sampling, in which a sample is drawn probabilistically from each group.
3. Sample Size –
How many respondents to be surveyed:
Due to time and other constraints, the size is 200 respondents. These samples
Of respondents are chosen randomly.
ULTIMATE CONSUMER:
Ultimate Consumers refers to those individuals who buy goods and services for final
Use or consumption.
DATA ANALYSIS:
The data collected are tabulated and classified as required. Statistical techniques such
As Frequency Distribution, Central Tendency, Percentages, etc., are used for analysis of
Primary data. Conclusions are drawn based on the analysis and findings of primary data.
DURATION OF THE STUDY:
The duration of the study is six weeks.
• Due to resource and time constraints, a randomly selected sample has been
Chosen respondents for making an analysis of advertising effectiveness on
Consumers.
REVIEW OF LITERATURE
ADVERTISING:
Advertising is any paid form of non-personal presentation and promotion of ideas, Goods or
services by an identified sponsor. It is paid communication because the advertiser has to pay
for the space or time in which his advertisement appears.
Advertisers include business firms but also museums, charitable organizations, and
government agencies that advertise to various target publics. Advertisements are a cost
effective way to disseminate messages, whether to build brand preference or to educate a
nation’s peopl e.
ATTENTION
It can be viewed as an information filter – a screening mechanism that controls
the quantity and nature of information any individual receives. Getting a consumer’s
attention is not easy. An individual, overtly or accidentally, avoids exposure to stimuli.
The advertising environment is truly “cluttered”; most major magazines have almost one -
half of their pages carrying advertisements, the other half carrying editorial matter.
Amid all this advertising, it is not easy to create an advertisement that stands out
enough to get noticed, processed, and remembered. The effectiveness of ads is reduced
not only by the higher levels of clutter in general, but even more significantly by the
proximity of ads for competing brands from the same product category.
The situation is made worse in the broadcast media, especially television. Viewers
have always had the freedom to do things while a program is being shown; including
leaving the room mentally and physically, but the use of remote control devices has made
channel-switching endemic. Television advertisers today have to cope with the
phenomena of zapping and zipping.
ADVERTISING STRATEGIES:
Strategy provides the link between advertising objectives and plans and paves the
ground for their implementation. It can be instrumental in prioritizing various objectives,
taking into account the attitudinal framework as well as corporate and marketing goals,
And the market situations and characteristics.
Advertising strategy is based on consideration such as the following:
• Advertising objectives.
• Advertising budgets.
• Selection of target audiences.
• Advertising message.
• Media decision.
• Media space decisions.
• Company’s standing and it s strength and weaknesses.
• Product history and its life cycle stage.
• Positioning of the product as indicated by perceptual mapping.
• Existing and anticipated competition.
BRAND PATRONAGE:
Most of the time, an advertisers (seller) tries to build a brand privilege or
Patronage for his products or service. A seller has a brand privilege if buyers exhibit
Brand insistence, brand loyalty, or brand preference towards his product or service. By
means of advertising or persuasive mass communication, seller tries to move prospective
Buyers and existing buyer from lower level to higher level of brand attitude of customers
– From brand ignorance to brand awareness, or from brand acceptance to brand
Preference, loyalty, and insistence
COMPANY PROFILE
Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit
of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo
Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and
Quaker Foods businesses in the United States and Canada.
Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist,
Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly
one-third of total soft drink sales in the United States.
PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's
principal businesses include:
• Frito-Lay snacks
• Pepsi-Cola beverages
• Gatorade sports drinks
• Tropicana juices
• Quaker Foods
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company,
creating the world’s fifth-largest food and beverage company, with 15 brands – each
generating more than $1 billion in annual retail sales. PepsiCo’s success is the result of
superior products, high standards of performance, distinctive competitive strategies and the
high level of integrity.
History:
Amount 8
fluid ounces
Calories 100
Fat 0g
Sodium 25 mg
Potassium 10 mg
Carbohydrates 27 g
Sugar 27 g
Protein 0g
Caffeine 25 mg
PEPSI IN INDIA
By most accounts, Pepsi gained entry to India in 1988 by creating a joint venture with
the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India
Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign
brands was allowed; Pepsi bought out its partners and ended the joint venture in 1994. [6]
Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to
release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the
market shortly afterwards. These controversies are a reminder of "India's sometimes
acrimonious relationship with huge multinational companies." Indeed, some argue that Coke
and Pepsi have "been major targets in part because they are well-known foreign companies
that draw plenty of attention
Age profile of the sample:
The samples were taken from a college comprising of Pre University, under graduates and
post graduate students, the following is the age profile of the samples:
Age Respondents
18 41
19 32
20 43
21 19
22 46
23 19
(23)
10% (18)
21%
18
(22) 19
22% 20
(19) 21
16% 22
23
(21)
10% (20)
21%
The sample mainly comprises of youngsters in the age group between 18-23 as it was felt that
the young age group will be more exposed to all kind of advertisements and current
happenings in the soft drink industry.
Preferred brand of cold drinks:
The main objective behind this question was to know the most popular brand of soft drink
among the samples, the responses are as follows
Brand Response
Coca-Cola 84
Pepsi 59
7 up 19
Fanta 12
Sprite 10
Others 16
Total 200
Response
8%
5%
6% Coca-Cola
Pepsi
41%
10% 7 up
Fanta
Sprite
Others
30%
As per the chart it is clear that coca cola is the most preferred brand,41% of samples like coco
cola, Pepsi is the next preferred which accounts 30% of share other brands like 7
up,fanta,sprite accounts for the rest.
Factors influencing buying of a particular brand:
This is a very important question to know the main factors behind buying a particular brand;
an objective type of question was put with some attributes like taste, advertisement, flavour,
retailor and other factors. The following table portrays the opinion of the samples.
Factors Response
Taste 84
Advertisement 67
Flavor 41
Retailer 8
Other 0
total 200
Retailer
4%
Flavor
21%
Taste Taste
41%
Advertisement
Flavor
Retailer
Advertisement
34%
As per the response it is very interesting to note that 41% of samples consider taste as the
main factor while buying a particular brand of soft drink, about 34% of sample are of the
opinion that advertisements play a great role in their buying, rest of the samples are
influenced by the flavor and retailer.
Most influential advertisement medium:
Pepsi advertises its product trough all mediums viz.Television, print, outdoor
and others. The following table shows the most influential mediums according
to the samples:
Mediums Response
T.V 167
Hoardings 12
Print media 19
Others 2
total 200
Others Response
1%
Print media
10%
Hoardings
6% T.V
Hoardings
Print media
Others
T.V
83%
No doubt television is the most dominant medium with 83% of respondents going for it,
others mediums like hoardings, print media have their small share in the pie.
Reach of Pepsi T.V adds:
Pepsi recently come up with PEPSI TV ad campaign featuring bollywood stars Kareena
kapoor, Sharukh khan and Priyanka chopra, this question aims at knowing the awareness level
about this campaign therefore the question was put to know whether they are aware of this
campaign and the response obtained is as follows.
Respondents Response
Yes 200
No 0
total 200
It is significant to note that every one in the sample group is aware of PEPSI TV campaign as
the table shows that all 200 samples have seen this advertising.
This landslide majority shows the reach of the campaign and the successful campaigning of
the advertisements.
Awareness regarding celebrities:
As it is already said for Pepsi TV campaign three bollywood stars have endorsed this
campaign to know the awareness regarding this celebrity endorsement an open ended question
was asked so that the respondents can recall the celebrities associated with this ad campaign.
Celebrities Respondents
Sharukh khan 200
Kareena 197
Priyanka 194
201
200
200
199
198
197
197
196 celebrities
195
194
194
193
192
191
Sharukh khan Kareena Priyanka
As you can see almost all respondents are aware of this celebrity endorsement and they have
identified all the celebrities who were part of this ad campaign.sharukh khan is in particular is
very much famous among these stars as all respondents have identified him for being part of
the ad campaign and the other two stars viz Kareena and Priyanka have been identified by 197
and 194 respondents respectively.
Awareness regarding Pepsi punch line:
The respondents were asked to name the Pepsi punch line so as to know whether the
positioning strategy of Pepsi is successful or not, it is is very interesting to note that all the
respondents have named any one of the Pepsi punch lines like
Ye dil mange more
Ye pyas hai badi
Nothing official about it.
This overwhelming response means that the Pepsi positioning strategy is been successful
hence the positioning strategy is been successful
Consumer response regarding Pepsi TV ads:
The respondents were asked to rate Pepsi TV ads as very interesting, some what interesting,
not much interesting and nonsense ads, the following are the response for the same:
Response Respondents
Very 112
interesting
Some what 17
interesting
Not much 41
interesting
Non sense 30
ads
total 200
As the pie chart depicts about 55% of respondents have the opinion that pepsi ads are very
interesting and 21% feels that Pepsi ads are not much interesting and 15% feels that pepsi ads
are non sense.
Programmes or columns where Pepsi adds are most often viewed:
To know what are the main events or Programmes where the Pepsi TV advertisements are
mostly viewed a question was framed asking respondents what the Programmes are where the
Pepsi TV ad is being watched the following are the response obtained:
Programmes Response
Cricket 146
match
Posters 23
Sport page 21
Others 10
Total 200
programmes
Others
5%
Sport page
11%
Posters Cricket match
12% Posters
Sport page
Others
Cricket match
72%
The pie diagram reveals that a huge part of sample have viewed the Pepsi ads through cricket
match telecasts and others mediums like posters, sport columns and others like serials have
got their own chunk in the pie.
Personality to which brand Pepsi is associated most:
To know how Pepsi is positioned in the minds of customers some prominent personalities
from the field of cricket, cinema, business, football and pop music were given to associate
brand Pepsi among one of these personalities the response obtained is as follows:
Personality Response
Sachin 104
Kareena 32
Bill gates 11
Ronaldo 31
Britny spears 22
Total 200
Britny spears
11%
Ronaldo Sachin
16% Kareena
Sachin Bill gates
Bill gates 51%
Ronaldo
6%
Britny spears
Kareena
16%
As one can note the cricketer sachin outshines other personalities by a huge margin by having
51% of respondents favor, the soccer champ Ronaldo and bollywood heart throb Kareena are
having 16% share in the pie.
Celebrity who is having a great impact on consumers:
In Indian market Pepsi is using many celebrities to promote its product to know who is having
a great impact on consumers a objective type of question was asked to respondents and their
response is as follows:
Celebrity Response
Sachin 84
Sharukh 59
Amitabh 43
Kareena 14
Others 0
Total 200
Kareena
7%
Amitabh
22% Sachin Sachin
41% Sharukh
Amitabh
Kareena
Sharukh
30%
Once again it’s the bating maestro who outshine all other celebrities in terms of having
maximum impact on consumers,41% of respondents felt that sachin is having a great impact
as a celebrity by endorsing the brand he is followed by bollywood stars Sharukh khan,amitabh
bachan and Kareena kapoor having 30%,22%,and 7% share in the pie respectively.
Category of people to which Pepsi is best suited:
This also an effort to know the positioning of Pepsi in the minds of consumers the objective
type of question was aimed at to know to which category of people pesi is best suited and the
response for the same is as follows:
Category of Response
people
Students 142
Professionals 32
Elders 6
Others 20
Total 200
Response
Others
10%
Elders
3%
Professionals Students
16% Professionals
Elders
Others
Students
71%
As we can see 71% of respondents feel that pepsi is best drink for students and 16% of
respondents feel that it is suited for professionals and a very minimum percentage of people
belives that it’s a good drink for elders.
Rating for Pepsi T.V ads:
The respondents were asked to rate the recent Pepsi TV advertising campaign on a scale of 10
by taking three attributes in to consideration viz.style,content,and wordings used the main
objective behind this question was to know the effectiveness of this advertising campaign in
quantitative terms, the respondents were supposed rank the Pepsi TV ad campaign on a scale
of 10 for three attributes the following is the response obtained :
Rating points
1 2 3 4 5 6 7 8 9 10
Attributes Total
Style - 12 6 34 12 54 31 30 11 10 200
content 2 8 12 9 21 18 94 24 4 8 200
Wordings used - 2 4 11 12 53 43 31 21 23 200
In the following subsequent pages the above responses are presented in the form of
chart by taking each attribute in to consideration.
Style of the advertisements:
70
60
50
40 Style
54 Attributes
30
34 31 30
20
11 10
10 12
12 6
6 7 8 9 10
0
1 2 3 4 5
0
1 2 3 4 5 6 7 8 9 10
In a scale of 10 the advertising campaign has got a good response to its style of
advertisements where 136 out of 200 respondents giving more than 5 points to Pepsi TV
advertisements in terms of style of the advertisements. But still 64 respondents which is about
32% of the sample have given five or less than five points to the style of Pepsi TV
advertisements.
Content of the advertisements:
The following is the response of the sample to the content of the advertisements
120
100
80
60
94
40
20 24
21 18 8
12 9 4
8 6 7 8 9 10
0 2
1 2 3 4 5
1 2 3 4 5 6 7 8 9 10
In terms of content Pepsi TV ad campaign got a very good response having 148
respondents giving it more than 5 points on a scale of 10 which accounts 74% of the total
sample, the remaining respondents i.e. 52 which accounts for 26% of the total sample have
given five or less than five for content of the advertisements.
Wordings used:
The following is the response for wordings used in Pepsi TV ad campaign:
70
60
50
40
53
30 43
31 23
20 21
10 11 12
2 4 6 7 8 9 10
0
1 2 3 4 5
0
1 2 3 4 5 6 7 8 9 10
As we can see about 171 which is about 85.55% of total respondents have given more
than five marks for wordings used in Pepsi TV advertisements, only a very meager percentage
of people i.e. 14.45% of people have rated Pepsi TV campaign five or less than five in terms
of wordings used.
Kind of advertisements that Pepsi should come with:
The respondents were asked to name the kind of advertisements they are looking forward
from Pepsi their responses are s as follows:
Informative
6%
Persuading
24%
Informative
Persuading
Entertaining
Entertaining
70%
About 70% of respondents feel that the advertisings should be entertaining, and 24% of
respondents feel that advertisings should be persuading in nature and a very less percentage of
respondents i.e. 6% feel that it should be informative.
Interpretation
1. As per the sample coca cola is the most preferred brand of cola hence majority of the
sample preferring the brand.
2. While buying a particular brand 0f soft drink the most influencing factor is taste and
advertising, the company should bring more flavors and should come with more
advertisement campaigns.
5. Almost all respondents are aware of celebrities who were part of the Pepsi TV
advertisement campaign.
6. The Pepsi punch lines are very popular among respondents hence all respondents haver
named atleast one of the punch line of pepsi advertisements.
7. Respondents are very impressed with Pepsi TV advertisements as 55% of sample terming
Pepsi TV advertisements as very interesting.
8. The respondents have watched the Pepsi TV advertisings during cricket matches, so cricket
telecasts are the most widly reached
9. Sachin is the most popular brand ambassador as the respondents agree that he is having a
great impact on their buying behavior.
10. As per the respondents Pepsi soft drink is best suited for students
11. Pepsi TV advertisement campaign has got positive response from respondents regarding
style, content and wordings used in the advertisements.
12. As per the respondents Pepsi should come out with more entertaining advertisements.
Conclusions:
The following are the conclusions drawn from the research study:
As per the respondents TV is the most influential medium, the company should
concentrate more on TV advertisements and they should come up with more innovative
and eye catching advertisements through television.
3. celebrity endorsements:
4. Positioning of Pepsi:
Pepsi TV advertisement campaign has got a very positive response from the
respondents; the respondents have rated Pepsi TV ads very high in terms of style, content, and
words used.
We can say that the Pepsi TV ad is a success and it has got a very positive response from
the respondents.