AbhijitShetty

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A study on Impact of Pepsi advertisements on consumerbehavior

A DISSERTATION PROJECT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OFMBA DEGREE OF BANGALORE UNIVERSITY

SUBMITTED BY

Abhijit.shetty

04XQCM6001

UNDER THE GUIDANCE OF

Prof.Jairaj Nair

PROFESSOR, MPBIM(INTERNAL GUIDE)

M. P. BIRLA INSTITUTE OF MANAGEMENT(ASSOCIATE BHARATIYA VIDYA BHAVAN)

# 43, Race Course Road, BANGALORE 560001Tel: 080-22382798, 080-22389635

(2004-06 Batch)


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DECLARATION

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 otherUniversity/ Institution for the award of any other Degree/Diploma.

Place: Bangalore

Date:

Reg No: 04XQCM6001


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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.

INTERNAL GUIDE: PROF.Jairaj Nair

Place:

Date:


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Certificate

I hereby certify that this dissertation is an offshoot of the research

Work undertaken and completed by Mr.Abhijit shetty under the

Guidance and supervision of prof .Jairaj Nair (Internal Guide)

MPBIM, Associate Bharatiya Vidya Bhavan, Bangalore.

Place: Bangalore Dr N.S.Malavalli

Date: principal MPBIM


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ACKNOWLEDGEMENT

I sincerely thankDr. Nagesh Malavalli (Principal), M.P.Birla

Institute of Management, Bangalore for granting me the permission to do

This Research Project.

I would like to express my immense gratitude to Prof.Jairaj Nair

(Internal Guide), M.P.Birla Institute of Management, Associate

Bharatiya Vidya Bhavan, Bangalore for his guidance, continuous

Encouragement and valuable suggestions at every stage of the project.

I extend my deep sense of gratitude to all my family and friends who

Have directly or indirectly encouraged and helped me to complete my project

Successfully.

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)


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EXECUTIVE SUMMARY:

This report titled IMPACT OF PEPSI ADVERTISEMENTS ON CONSUMER

BEHAVIOR is submitted in partial fulfillment of the requirements for the

Degree of Master of Business Administration of Bangalore University.

This study is an attempt to understand the impact of advertising of PEPSI SOFT DRINKS. It

also tries to evaluate the advertising effectiveness in establishing brand

Patronage among the respondents.

The objective of this study is to analyze the advertising effectiveness on consumers, to

analyze the different medium through which the advertisement

Reaches maximum number of people in the market, to analyze the strategies that the

Company should adopt such that the viewers turn into consumers,

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.


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STATEMENT OF THE PROBLEM

PEPSI ADVERTISEMENTS AND THEIR IMPACT ON CONSUMER BEHAVIOR.

OBJECTIVES OF THE STUDY:

1. To analyze the advertising effectiveness of Pepsi TV advertising campaign.

2. To analyze the different medium through which the advertisement reaches

Maximum number of people in the market.

3. To analyze the effectiveness of celebrity endorsements

4. To know the positioning of Pepsi brand in the minds of consumers

5. To analyze what a kind of advertisement does viewers expect from Pepsi.

6. What are the factors that influence while buying a particular brand of soft drink

SCOPE OF THE STUDY:

The study was conducted to know consumer behavior towards pepsi

advertisements.Due to time and resource constraints, this study is focused on College

Students. This study helps us to know what are the consumer expectations towards advertising

and their subsequent consumer behavior in response to companies advertisements.


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RESEARCH METHODOLOGY

RESEARCH APPROACH

The research for this study is a Descriptive Research.

ADescriptive Research is a type of conclusive research, which has its major objective

As the description or something, usually market characteristics or functions. It is Preplanned

and structured.

Under this approach a Cross-Sectional study is conducted in which one sample of

Respondents is drawn from the target population and information is obtained from this

Sample one.

This study is based on Descriptive Research approach comprises the following

Methods;

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).


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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.

TOOLS FOR DATA COLLECTION:

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.


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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.

CROSS SECTIONAL STUDY:

A Cross Sectional Study is a type of research design involving the collection of

Information from any given sample of population elements only once.

SIMPLE RANDOM SAMPLING:

A probability sampling technique in which each element in the population has a

Known and equal probability of selection. Every element is selected independently of

Every other element and the sample is drawn by a random procedure from sampling

Frame

STRATIFIED RANDOM SAMPLING:

A probability sampling technique that uses a two-step process to partition the

Population into sub populations, or strata. Elements are selected from each stratum by a

Random procedure.

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.


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DURATION OF THE STUDY:

The duration of the study is six weeks.

LIMITATIONS OF THE STUDY:

Due to time and resource constraints, only college students are selected for

The study for making an analysis for the advertising strategies.

Due to resource and time constraints, a randomly selected sample has been

Chosen respondents for making an analysis of advertising effectiveness on

Consumers.


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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

nations peopl e.

Organizations handle their advertising in different ways. In small companies, someone

handles advertising in the sales or marketing departments, who works with an advertising

agency. A large company will often set up its own advertising department, whose manager

reports to the Vice President of marketing. The advertising departments job is to develop the

total budget, and handle direct-mail advertising, dealer displays and other forms of advertising

not ordinarily performed by the agency. Most companies use an outside advertising agency to

help them create advertising campaigns and to select and purchase media. Global companies

that use a large number of ad agencies located in different countries and serving different

divisions have suffered from uncoordinated advertising and image diffusion. Advertising

agencies need to redefine themselves as Communication companies and assist clients in

improving their overall communication Effectiveness.

Five Ms of Advertising

MISSION: What are the advertising objectives?

MONEY: How much can be spent?

MESSAGE: What message should be sent?


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MEDIA: What media should be used?

MEASUREMENT: How should the results is evaluated?

Strengths of Advertising as a promotional tool

1. It offers planned and controlled message.

2. It can contact and influence numerous people simultaneously, quickly, and At a low

Cost per prospect. Hence, it is called Mass Means of Communication.

3. It has the ability to deliver messages to audiences with particular Demographic and Socio-

economic features.

4. It can deliver the same message consistently in a variety of contexts.

5. It can reach prospects that cannot be approached by sales man.

6. It helps to presale goods and pulls the buyers to retailers.

7. It offers a wide choice of channels for transmission of messages such as Visual (by Sights),

aural, (by ear) aural and visual.

8. It is very useful to create maximum interest and offer adequate knowledge

of the new product when the innovation is being introduced in the market.

Weakness of Advertising as a promotional tool

1. It is much less effective than personal selling and sales promotion at later stages in the

buying process, e.g.: in convincing and securing action.

2. It is less flexible than personal communication. It cannot answer objections raised by

prospects.

3. It is essentially one-way means of communication. It cannot obtain quick and accurate

feedback in order to evaluate message effectiveness.

4. It is most efficient communication (very low cost per prospect) but it is least effective as a

tool of a communication.

5. It is unable to reach prospects when they are in a buying mood. Hence advertisements have

to be repeated and repetition involves additional cost.

6. Advertising, many a time lacks credibility and trustworthiness.


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Importance of Advertising

1. To create widespread visibility in the market and access those pockets which are not

approachable by the sales force. Quoting a customer, Make the customers come to you rather

than trying to approach all the potential customers.

2. As a symbol of sound financial position of the company and also to make the statement that

the company is here to stay.

3. To aid in easy brand recall and also create a top of mind awareness of the brand.

4. To make maximum potential customers aware of the new offerings and schemes of the

company and initiate enquiries about the same.

5. To establish a strong brand image in the market so as to give the company

an edge over its competitors.

Communication goals of Advertising

Advertising should concentrate on clear and measurable communication objectives known as

DAGMAR (Defining Advertising Goals, Measuring Advertising Results). Advertising

objectives must be oriented around the process of communication. Communication tasks are,

1. Developing brand awareness.

2. Changing consumer attitudes.

3. Associating desirable themes with products, and

4. Informing consumers about product attributes.

The ultimate purpose of most advertising is to help the probability of the sale of the Product

or a service. Advertising as a mode of promotion increases propensity to purchase-moving the

prospect steadily, inch-by-inch, closer to a purchase decision. Of course, advertising is only

one of several communication forces. It moves the consumer through successive levels such

as unawareness, awareness, comprehension or recognition, conviction (intention to buy) and

action purchase.

Advertising goals may be divided into four stages of commercial communication as

follows:

1. Awareness: the prospects must become aware of the existence of the brand Or company.

Awareness is the bare minimum goal of advertising.


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2. Comprehension: the prospect must understand what the product is and what it will do for

him. Comprehension level indicates that people are not only aware of the brand or company

that they know the brand name and can recognize the package or trade market. But they are

not yet convinced that they must want to buy.

3. Conviction: the prospect must be mentally convinced to buy the brand or the product. The

conviction level shows brand preference and intention to buy the product in the near future.

4.Action: the prospect takes meaningful action. Purchase decision is duly

taken.

Choosing among major media types:

The media planner has to know the capacity of the major media types to deliver reach,

frequency, and impact. Media planners make their choice among media categories by

considering the following variables:

Target-Audience Media habits: for example radio and television are the most effective

media for reaching teenagers.

Product Characteristics: Media types have different potentials for demonstration,

visualization, explanation, believability and color. Womens dresses are best shown in

color magazines, and Polaroid cameras are best demonstrated on television.

Message characteristics: timeliness and information content will influence mediachoice. A message announcing a major sale tomorrow will require specialized

magazines or mailings.

Cost: Television is very expensive, whereas newspaper advertising is relatively

inexpensive. What counts is the cost-per-thousand exposures.


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Advertising in India

Indian Advertising starts with the hawkers calling out their wares right from the days

when cities and markets first began

_Shop front signages

_From street side sellers to press ads

_The first trademarks

_Handbills distributed separately from the products

18th Century:

Concrete advertising history begins with classified advertising. Ads appear for the first

time in print in Hickey'sBengal Gazette. India's fisrt newspaper (weekly). Studios mark

the beginning of advertising created in India (as opposed to imported from England)

Studios set up for bold type, ornate fonts, more fancy, larger ads. Newspaper studios train

the first generation of visualisers & illustrators. Ads appear in newspapers in the form of

lists of the latest merchandise from England

Since 1980, advertising in India has demonstrated phenomenal growth growth in

size, quality, and range of services, in the total expenditure in advertising per year. In

1950 advertising expenditure was hardly Rs. 5 Crores. By 1988, it rose to Rs. 900 Crores.

It may be around by Rs. 2200 Crores by 2001 A.D.

There are now over 400 advertising Agencies as against just 100 advertising agenciesaround 1970. In the Indian market, we have more than 11,000 branded products

extensively advertised in all languages. Press advertisement account for about 50 percent

and TV account for about 18 percent of the total advertising costs.

In the media sector we have at present intense competition, e.g., TV / Radio,

Newspaper each attempting an increasing market share. In the press segment we are

witnessing regular media war. In the case of the Press, competition is total. However,

media owners are expected to adopt now customer-oriented approach to get rid of such

unhealthy competition.

Essentials of good Advertisement

A good advertisement must have the right message communicated through a right


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media. It must reach the right people and prospects and that too at a right time and at the

right cost. Right timing of an advertisement needs no emphasis. It should fulfill its sole

purpose, viz., gain sale or action from the prospects and the cost of communication

should be reasonable.

The task assigned to the advertisement can be successfully fulfilled when:

1. It is seen by the desired prospects.

2. It is read by them with interest.

3. It is properly understood by them exactly as the advertiser wants.

4. It is believed by them and it wins their confidence and trust and above all

it succeeds in igniting their desire to purchase the product or service offered or

sale.

Effective advertisements takes the prospect near about the point of closing the sale so

that actual sale may be easily completed by the sales force. Each advertisement must be a

unique selling proposition, invoking maximum force of persuasion to convert a prospect

into a customer.

In the light of the above information, t he author conducted a research study on the

advertising strategies of two leading garment manufacturers in Bangalore City.

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 consumers

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


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channel-switching endemic. Television advertisers today have to cope with the

phenomena of zapping and zipping.

CREATING ADVERTIEMENTS THAT ATTRACTS ATTENTION

The attention filter operates at various levels of effort and consciousness. At one

extreme is the process of active search wherein a receiver actually seeks information. He

Or she might solicit opinions of friends or search through magazines not normally read.

Another level could be termed passive search. A receiver searches for information only

from sources to which he or she is exposed during the normal course of events.

The final level might be called passive attention. Here a receiver has little

immediate need for the information and makes no conscious effort to obtain it, but some

information may nevertheless enter the system. At all three levels, it is appropriate to

discuss why a person obtains information so that ads can be designed to maximize

attention. There are, of course, as many reasons as there are situations and individuals.

However, it is instructive to examine four general motives for attending to informative

stimuli.

A first motive is to obtain information that will have a high level of utility for a

person. In an advertising context, an individual will obtain product information that will

Help make better purchase decisions. Second, people may be motivated to expose

themselves to information that supports their opinions- supportive exposure-and to avoid

Discrepant information. Third, there is a desire to be exposed to information that

Stimulates. Finally, people are motivated to find stimuli that are interesting to them.

These motives will be examined in turn.


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COMPANY PROFILE

Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unitof 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.

Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina, which is

the number one brand of bottled water in the United States, Dole single-serve juices and So

Be, which offers a wide range of drinks with herbal ingredients. The company also makes and

markets North America's best-selling, ready-to-drink iced teas and coffees via joint ventures

with Lipton and Starbucks, respectively.

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 worlds fifth-largest food and beverage company, with 15 brands each

generating more than $1 billion in annual retail sales. PepsiCos success is the result of


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superior products, high standards of performance, distinctive competitive strategies and the

high level of integrity.


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History:

"Pepsi" logo (used from 1906-1939 in several slightly different variations).

The international Pepsi logo. Also used as logo from 1991-1998.

The "Pepsi" logo (used from 1998-2003).

Pepsi Stuff represented a major assault in the Cola Wars
http://en.wikipedia.org/wiki/1906http://en.wikipedia.org/wiki/1939http://en.wikipedia.org/wiki/1991http://en.wikipedia.org/wiki/1998http://en.wikipedia.org/wiki/1998http://en.wikipedia.org/wiki/2003http://en.wikipedia.org/wiki/2003http://en.wikipedia.org/wiki/1998http://en.wikipedia.org/wiki/1998http://en.wikipedia.org/wiki/1991http://en.wikipedia.org/wiki/1939http://en.wikipedia.org/wiki/1906http://en.wikipedia.org/wiki/Image:Pepsistufflogo1.jpghttp://en.wikipedia.org/wiki/Image:Pepsico.JPGhttp://en.wikipedia.org/wiki/Image:Pepsi_Logo.pnghttp://en.wikipedia.org/wiki/Image:Pepsivintagelogo.jpg


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In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented

warehouse. That year, Bradham sold 7,968 gallons ofsyrup. The next year, Pepsi was sold in

six-ounce bottles and sales increased to 19,848 gallons. In 1905, Pepsi received its first logo

redesign since the original design of 1898. In 1906, the logo was changed again.

In 1909, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper

ads as "A bully drink...refreshing, invigorating, a fine bracer before a race". In 1923, PepsiCo

went bankrupt due to high sugar prices as a result of World War I, assets were sold and Roy

C. Megargel bought the Pepsi trademark.[3]Eight years later, the company went bankrupt

again, resulting in a reformulation of the Pepsi-Cola syrup formula. In the following years, the

drink gained in popularity and in 1934, debuted the 12-ounce drink. In 1964, the Diet Pepsi

variation of the drink debuted, being the United States's first national diet soft drink.

In 1980, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set

up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the

majority of participants picked Pepsi as the better tasting of the two soft drinks. Pepsi took

great advantage of the campaign with television commercials reporting the test results to the

public.

In the mid-1990s, Pepsi launched the highly successful Pepsi Stuffstrategy, its largest

marketing program ever. In its first year, Pepsi Stuffsignificantly outperformed Coke's much-

anticipated Atlanta Olympic Summer with growth 3 times larger than Coke's and 2 points of

share gained by Pepsi. Pepsi Stuffbuilt consumer brand loyalty by allowing people to collect

Pepsi Points from packages and cups and redeem them for high-quality merchandise and

unique experiences. Based on Pepsi Stuff's success, the company expanded it to include

Mountain Dew and into many international markets. PepsiCo continued and expanded Pepsi

Stufffor many years. Promo Magazine listed 16 "Ageless Wonders" campaigns that "helped

redefine promotion marketing." Included for 2002 is Pepsi Stuff (started 1996) Source: Promo

Magazine, 2002.

During the summer of 1993, Pepsi managed to stave off a runaway hoax pertaining to alleged

product tampering. Syringes were claimed to have been found in cans of Diet Pepsi -- first in

Seattle, then throughout the U.S. over the next few days. With the arrests of several of the

fraudulent claimants, reports of found hypodermic needles ceased. Pepsi's subsequent
http://en.wikipedia.org/wiki/Syruphttp://en.wikipedia.org/wiki/Barney_Oldfieldhttp://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/Pepsi-Cola#_note-2#_note-2http://en.wikipedia.org/wiki/Pepsi_Challengehttp://en.wikipedia.org/wiki/Television_commercialhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Pepsi_Pointshttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Mountain_Dewhttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://www.pepsico.com/PEP_Company/Honors/index.cfmhttp://www.pepsico.com/PEP_Company/Honors/index.cfmhttp://www.pepsico.com/PEP_Company/Honors/index.cfmhttp://www.pepsico.com/PEP_Company/Honors/index.cfmhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Mountain_Dewhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Pepsi_Pointshttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Pepsi_Stuffhttp://en.wikipedia.org/wiki/Television_commercialhttp://en.wikipedia.org/wiki/Pepsi_Challengehttp://en.wikipedia.org/wiki/Pepsi-Cola#_note-2#_note-2http://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/Barney_Oldfieldhttp://en.wikipedia.org/wiki/Syrup


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handling of the situation via carefully-worded press releases and VNRs is frequently cited as a

textbook example of how exactly to handle falsely-spread rumors about a company.[1]

While some claim that Pepsi tastes identical to Coca-Cola, others say they can detect a

difference. In the past, the difference in taste between Pepsi and Coca-Cola's Coke was even

greater than it is today. When the Pepsi taste became more popular, Coca-Cola adapted their

drink to be closer to the American taste of Pepsi (New Coke).[5] Although Pepsi claimed this

a victory for their brand of cola, Coca-Cola soon reverted because, while testing showed the

taste of the new Coke was better, consumers preferred Coca-Cola to stay the same. Coke

outsells Pepsi in the US overall because Coke is sold exclusively in more locations, such as

restaurants that sell Coke, but not Pepsi. In locations where Pepsi and Coke are sold side-by-

side (such as Supermarkets and Convenience Stores), Pepsi generally outsells Coke in the US.

Ingredients

Amount 8

fluid ounces

Calories 100

Fat 0 g

Sodium 25 mg

Potassium 10 mg

Carbohydrates 27 g

Sugar 27 g

Protein 0 g

Caffeine 25 mg
http://www.roadsideamerica.com/rant/pepsipanic.htmlhttp://en.wikipedia.org/wiki/Pepsi-Cola#_note-4#_note-4http://en.wikipedia.org/wiki/Pepsi-Cola#_note-4#_note-4http://www.roadsideamerica.com/rant/pepsipanic.html


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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

Following is the pie chart showing age profile of the sample:

(23)

10%

(22)

22%

(21)

10% (20)

21%

(19)

16%

(18)

21%

18

19

20

21

22

23

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 currenthappenings in the soft drink industry.


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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 16Total 200

The following pie chart shows preferred brand of soft drinks:

Response

41%

30%

10%

6%

5%8%

Coca-Cola

Pepsi

7 up

Fanta

Sprite

Others


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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.


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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

Taste

41%

Advertisement

34%

Flavor

21%

Retailer

4%

Taste

Advertisement

Flavor

Retailer

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


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opinion that advertisements play a great role in their buying, rest of the samples are

influenced by the flavor and retailer.


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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 2total 200

Response

T.V

83%

Hoardings6%

Print media

10%

Others

1%

T.V

Hoardings

Print media

Others

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.


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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 200No 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.


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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

200

197

194

191

192

193

194195

196

197

198

199

200

201

celebrities

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.


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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 therespondents 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


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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

Veryinteresting

112

Some whatinteresting

17

Not muchinteresting

41

Non sense

ads

30

total 200

Consumer response regarding Pepsi TV adds:

Very interesting

55%

Some what

interesting

9%

Not much

interesting

21%

Non sense ads

15%Very interesting

Some what interesting

Not much interesting

Non sense ads

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.


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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

Cricketmatch

146

Posters 23

Sport page 21

Others 10Total 200

programmes

Cricket match

72%

Posters12%

Sport page

11%

Others

5%

Cricket match

Posters

Sport page

Others

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.


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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 11Ronaldo 31

Britny spears 22

Total 200

Sachin

51%

Kareena

16%

Bill gates

6%

Ronaldo

16%

Britny spears11%

Sachin

Kareena

Bill gates

Ronaldo

Britny spears

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.


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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 0Total 200

Sachin41%

Sharukh

30%

Amitabh

22%

Kareena

7%

Sachin

Sharukh

Amitabh

Kareena

Once again its 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.


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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 ofpeople

Response

Students 142Professionals 32

Elders 6

Others 20

Total 200

Response

Students

71%

Professionals

16%

Elders

3%

Others

10%

Students

Professionals

Elders

Others

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 its a good drink for elders.


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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

Attributes1 2 3 4 5 6 7 8 9 10

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.


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Style of the advertisements:

The following chart is the response to pepsi tv advertisements style of advertisements

1 2 3 4 56 7 8 9 100

12 6

34

12

54

31 30

11 10

0

10

20

30

40

50

60

70

1 2 3 4 5 6 7 8 9 10

Style

Attributes

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.


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Content of the advertisements:

The following is the response of the sample to the content of the advertisements

1 2 3 4 5 6 78 9 102

8 12 921 18

94

244 8

0

20

40

60

80

100

120

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.


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Wordings used:

The following is the response for wordings used in Pepsi TV ad campaign:

1 2 3 4 56 7 8 9 100 2

411 12

5343

3121 23

0

10

20

30

40

50

60

70

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.


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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:

Kind of ads Response

Informative 11

Persuading 47

Entertaining 142

Total 200

Informative

6%

Persuading

24%

Entertaining

70%

Informative

Persuading

Entertaining

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.


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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.

3. T.V is found to be the most influential medium of advertisement

4. All of 200 respondents are aware of recent Pepsi TV advertisement campaign.

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 crickettelecasts 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.


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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.


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Conclusions:

The following are the conclusions drawn from the research study:

1. TV is the most influential medium of advertisement:

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.

2. More advertisements while cricket telecast:

Most of respondents watch Pepsi TV advertisements while watching a cricket

telecast, the company should try to advertise more during this time period.

3. celebrity endorsements:

The respondents are aware of celebrity endorsements in Pepsi TV ad campaign and

the celebrity who is having a great impact on consumer behavior is the cricket star Sachin

Tendulkar.

The is to say that the use of celebrities does have a great impact on consumer

behavior and sachin is the most influential celebrity, the company should use sachin

popularity to promote its brands.

4. Positioning of Pepsi:

Pepsi is positioned as a student drink in the minds of respondents as most of the

respondents feel that Pepsi is the best suited drink for the students.


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4. Effectiveness of Pepsi TV advertisements:

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.

5. kind of advertisements that respondents are looking:

most respondents are looking towards entertaining advertisements rather than

informative and persuading ads.

AbhijitShetty

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