Sumith Project

“A STUDY ABOUT THE ROLE OF ADVERTISMENT IN BRAND BUILDING”

With special reference to Bhima jewellery Thrissur

PROJECT REPORT

Submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for award of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

Mr. SUMITH THOMAS(Reg.No.EJAKMBA 052)

Under the guidance of

Ms. ROSHINI P.R Mcom, MBA

ELIJAH INSTITUTE OF MANAGEMENT STUDIES THRISSUR

DECEMBER 2011

ELIJAH INSTITUTE OF MANAGEMENT STUDIES

THRISSUR

(Affiliated to University of Calicut)

CERTIFICATE FROM THE COLLEGE

This is to certify that the project report titled ‘A STUDY ABOUT THE ROLE OF

ADVERTISMENT IN BRAND BUILDING, submitted in partial fulfillment of the

requirements for the award of Degree of Master of Business Administration of University of

Calicut was carried out by Mr. SUMITH THOMAS.

Dr. V.A.SONNY

PRINCIPAL

ELIJAH INSTITUTE OF MANAGEMENT STUDIES

THRISSUR

(Affiliated to University of Calicut)

CERTIFICATE FROM THE GUIDE

This is to certify that the project report entitled ‘A STUDY ABOUT THE ROLE OF

ADVERTISMENT IN BRAND BUILDING, submitted in partial fulfillment of the

requirements for the award of degree of Master of Business Administration of University of

Calicut was carried out by Mr. SUMITH THOMAS (EJAKMBA052) under my guidance.

Ms. ROSHIN P.R

Project Guide

DECLARATION

I, Mr. SUMITH THOMAS (Reg No: EJAKMBA 052), 3rd Semester MBA student of

Elijah institute of Management Studies, hereby declare that the project entitled ‘A

STUDY ABOUT THE ROLE OF ADVERTISMENT IN BRAND BUILDING’

submitted to the Calicut University in partial fulfillment of the requirement for the

award of Master of Business Administration, is an original work done by me under

the supervision and guidance of Ms. ROSHINI P.R and no part of this work have been

submitted earlier for the award of any Degree.

SUMITH THOMAS

Place: Thrissur

Date:

ACKNOWLEDGEMENT

In this page, I would like to express my sincere thanks and gratitude towards

lot of people who have been instrumental for successful completion of the project. Firstly I

am expressing my gratefulness to God Almighty without whose grace my project would not

have been a grand success.

I acknowledge my profound gratitude to Ms. ROSHINI P.R, Faculty of Elijah

Institute of Management Studies, Thrissur for providing her encouragement and valuable

suggestions in bringing up this report.

I wish to express my sincere thanks to Mr. HARI IYER for his help in this project

work and his sincere efforts to guide me for successful completion of this project.

I thank all my respected Faculties, Librarian and all non-teaching staff of Elijah for

their co-operation and assistance rendered to me.

I also extend my thanks to my parents and friends for all their support and

encouragement in bringing up this report.

SUMITH THOMAS

TABLE OF CONTENTS

CHAPTERS CONTENTS PAGE NUMBER

ABSTRACT

CHAPTER I 1.1 INTRODUCTION1.2 RESEARCH PROBLEM1.3 PURPOSE OF THE STUD1.4 OBJECTIVES OF THE STUDY1.5 RESEARCH METHODOLOGY1.6 TOOLS AND TECHNIQUES1.7 PERIOD OF THE STUDY1.8 LIMITATIONS OF THE STUDY

CHAPTER II 2. LITERATURE REVIEW

CHAPTER III 3.1 INDUSTRY PROFILE

3.2 COMPANY PROFILE

CHAPTER IV 4.1 DATA ANALYSIS & INTERPRETATION

CHAPTER V 5.1 SUMMARY

5.2 FINDINGS

5.3 SUGGESTIONS

5.4 CONCLUSION

5.5 SCOPE FOR FURTHER RESEARCH BIBLIOGRAPHY

APPENDIX

ABSTRACT

Advertising is paid or something free communication through a medium in which the

sponsor is identified and the message is controlled. Variations include publicity, public

relations, product placement, sponsorship, underwriting, and sales promotion. Every medium

is used to deliver these messages, including: television, radio, movies, magazines,

newspapers, internet and billboards. An advertisement is a form of persuasive communication

with the public. The members of the public are free to respond to it in their own way; the

response is at an individual or family level. There is little or no dialogue with the public;

advertising forces itself upon the public.

The research “A STUDY ABOUT THE ROLE OF ADVERTISMENT IN

BRAND BUILDING” with special reference to Bhima Jewellery, Thrissur, was conducted

to know the effectiveness of role advertisement in creating brand awareness. The

advertisements given should reach the customer in the right sense and should be able to reach

each and every customer. The study revealed that the advertisements of the organization are

quite effective and this has helped the firm to create brand awareness as well as the overall

sales of the firm.

CHAPTER-I

1.1 INTRODUCTION

1.2 RESEARCH PROBLAM

1.3 PURPOSE OF THE STUDY

1.4 OBJECTIVES OF STUDY

1.5 RESEARCH METHODOLOGY

1.6 TOOLS& TECHNIQUES

1.7 PERIOD OF THE STUDY

1.8 LIMITATION OF THE STUDY

1.1 INTRODUCTION

Gold has been known and highly valued since prehistoric times. It may have been the

first metal used by humans and was valued for ornamentation and rituals. Egyptian

hieroglyphs from as early as 2600 BC describe gold, which king Tushratta of the Mitanni

claimed was “more plentiful than dirt” in Egypt. Egypt and especially Nubian had the

resources to make them major gold-producing areas for much of history. The earliest known

map is known as the Turin papyrus and shows the plan of a gold mine Nubian together with

indications of the local geology. The primitive working methods are described by Strabo and

included fire-setting. Large mines also occurred across the Red sea in what is now Saudi

Arabia, with an increasing number of jewellery houses enter the branded jewellery sector,

retail of jewellery is becoming organized. Moreover, the government allows 51 per cent FDI

in single brand retail outlet so attracting both global and domestic players to this sector.

The role of advertising is increasing day by day in our life. The project is intended to

access and to acquire the knowledge regarding the impact of advertising in brand building.

The research is conducted in Thrissur District with special reference to Bhima Jewllary and

its customers.

Advertising is paid or sometimes free communication through a medium in which the

sponsor is identified and the message is controlled. Advertisement helps a company to

increase their image and also help in Brand building.

Bhima Group- a group that has enjoyed a sterling reputation since 1925. Founded by

Shri Bhima Bhattar in 1925 in alleppy, Kerala, better known as the Venice of the East, Bhima

rose from its humble beginning to become a Beacon of Trust in gold jewellery business in no

time. Today, Bhima has 18 showrooms across Kerala, Tamil Nadu and Karnataka and is

growing in leaps and bounds ‘The Bhima Boy’ is a mark of trust and tradition.

Bhima – a language more powerful than words, speaks eloquently of love, joy and

friendship. For them, each piece of gold is an heirloom. The leadership in creating fine

jewellery that will be treasured for generations makes Bhima an ever memorable name in the

hearts of jewellery-lovers.

The qualities that have made Bhima a market (India) leader in the readymade jewellery

and precious stones are:

Goodwill

Purity and quality

Customized services

Consistent buy back policy

Variety and wide range of collections

Its goodwill is priceless. Each and every aspect of Bhima has its perfection. The goal

of the firm is that through group performance attain the maximum levels of achievements and

be a model for other branches.

1.2 RESEARCH PROBLAM

Advertising is a communication whose purpose is to inform potential customers about

products and services and how to use and obtain them. Organizations which frequently spend

large amount of money on advertising but do not strictly sell a product or services to the

general public include political parties, interest group, and militaries looking for new recruits.

The study is to be identifying the role of advertising in brand building.

“What is the role of advertising in brand building? With special reference

to Bhima jewellery Thrissur”

1.3 PURPOSE OF THE STUDY

Traditional view of market is that the firms makes something and then sell the product

to consumers. But now the things are changed consumers wants are increased day by day. A

business firm has to study the needs, desires and the preference of the consumers and produce

goods which are actually needed by them. As a part of developing business trends has to take

the tool like advertising for promoting their sales. Advertisements stimulate the demand for

the products and services. Advertisement also create a good public image.

This study helps to understand which advertisement made by Bhima Jewellery has

reached the minds of customers. By analyzing the same we can understand that what are the

various factors which make an advertisement effective ineffective and how it affect brand

building of the company.

1.4 OBJECTIVES OF STUDY

Primary objectives

To study the role of advertising in brand building of Bhima jewellery

Secondary objectives

What are the factors affecting brand building

To examine the effect of advertising in brand awareness of Bhima jewelllery

To find out the most effective method of advertising

Why customers select Bhima for purchasing Gold

1.5 RESEARCH METHODOLOGY

Research is a systematic method of finding solutions to problems. Research methodology

means all those methods and techniques that are adopted for collecting information and data.

When we talk of research methodology we not only talk of the research methods but also

consider the logic behind the methods we use in the context of our research study and explain

why we are not using others so that research results are capable of being evaluated either by

the researcher himself or by others. These steps include the selections of a research problem,

presentation of the problem, formulation of hypothesis, survey of literature and

documentation, data collection, testing hypothesis,interpretation, presentation and report

writing. In view of research objective, methodology should be adopted by the researcher. All

these steps are undertaken in the project work.

1.5.1 Research Design

A research design is the arrangement of conditions for the collection and

analysis of data in a manner that aims to combine relevance of the research purpose with

economy. It is the conceptual structure within which the research is constituted. It constitutes

the blue print for the collection, measurement and analysis of data. The research design used

under this study is convenience sampling design.

From the total population, 50 people are selected as sample for the research and the

data are collected through questionnaire .The research is basically a convenience one.

1.5.2 Sources of data collection

Data used for the research has been collected from primary and secondary sources.

Primary source: Primary data are collected through questionnaire and personal interview

with customers from the age group of 25 years and above.

Secondary source: Secondary data on the other hand includes those data which are collected

and published from earlier research works, company records, magazines, journals, television,

internet etc.

1.5.3 Sampling Method

The items selected from the population (selection of few items only) are the

representatives of the total population .They are called “sample” and the selection process is

called “sampling technique”.

Convenience sampling method which is a non-random sampling technique is used for data

collection.

1.5.4 Sampling Unit

“Sampling unit may be a geographical one such as state, district, village, etc., or a

conduction unit such as house, flat, etc., or it may be a social unit such as family, club,

school, etc., or it may be an individual”.

1.5.5 Sample size

“Sample size refers to the number of items to be selected from the universe to constitute a

sample”. Sample sizes are larger than 30 and less than 500 are appropriate for most research.

Sample size is taken as 50

1.6 TOOLS& TECHNIQUES FOR THE DATA ANAYSIS &

INTERPRITATION OF DATA

Percentage analysis

Graphical Representation

Likert – summated scale

Scaling Techniques etc. may be used

Likert-type or Summated scale

Summated scales consist of a number of statements which express either a favorable

or unfavorable attitudes towards the given object to which the respondent asked to react. The

respondent indicates his agreement or disagreement with each statement in the instrument.

Each response is given a numerical score, indicating the favorableness or unfavorableness,

and the scores are totaled to measure the respondent’s attitude. In other words, the overall

score represents the respondent’s position on the continuum of favorable-unfavourableness

towards an issue.

1.7 PERIOD OF THE STUDY

The study is conducted for the period of 21 days form 1st August to 21th August 2011.

1.8 LIMITATION OF THE STUDY

In any study or research conducted there shall be some limitation associated with it. Hence,

for that proper understanding of the project it is inevitable to specify the limitation of the

study. The main limitations of the study are:

Since it is time bound study, the sample size is limited.

The scope of study is restricted to Thrissur District.

Calculations are made on the basis of sample survey.

Getting accurate responses from the respondents due to their inherent problems is

difficult. Sometimes, they responded partially or refused to co-operate.

The findings are based only on the information given by the respondent.

Time and money constraints.

CHAPTER-II2. REVIEW OF LITERATURE

2. LITERATURE REVIEW

2.1 ADVERTISING

The term advertising originates from the Latin word “adverto”, which means to turn

round. Advertising thus denotes the means employed to draw attention to any object or

purpose. In a marketing context, advertising has been defined “as a paid and non-personal

form of presentation and promotion of ideas, goods or services by an identified sponsor”.

There is not only an identified sponsor, but also an identified media and message behind

every advertisement. Through an advertisement, the advertiser intends to spread his ideas

about his products/offerings among his customers and prospects. Popularisation of the

products is the basic aim of the activity.

In 1948, the definitions committee of the American Marketing Association developed

what today is the most acceptable definition of advertising. Advertising is any paid form of

non-personal presentation and promotion of ideas, goods, or services by identified sponsors.

A working definition hence could somewhat be: “Advertising is the art and science of

building brands through persuasive communication and positioning them in consumers’

perception with a constant vigil on the market situation and consumer expectations”. This

gives advertising a kind of flexibility of adapting to the changing paradigms, viz, social,

economic and political.

Advertising is multidimensional. It is a form of mass communication, a powerful

marketing tool, a component of the economic system, a means of financing the mass media, a

social institution, an art form, an instrument of business management, a field of employment

and a profession. The definition indicates that advertising is a paid, non-personal

communication. It lays emphasis on presentation and promotion. The presentation of the sales

message may be visual as well as oral. The sponsor has also been given importance under this

definition. Advertising is an effective method of reaching people with product

information.”Advertising is controlled, identifiable information and persuasion by means of

mass communication media”. It is considered controlled information because it has to use the

time, space and content of the message effectively and economically. It is controlled because

it is directed at a particular group. Advertising should not be haphazardly done to attract a

number of persons without fruitful results. It is identifiable because it identifies the product

and the source of the product. The message should be definite and appealing to the target

group. Persuasion is the main object of advertising. It is creative and information, and is

designed to attract prospective buyers. It has been accepted by all the authors that advertising

is mass communication.

Advertising management is different from mass communication by the producer.

Advertising management is the main task of the advertiser who directs and controls the

advertising activities. It covers analysis and the planning, control and decision-making

activities of the advertiser .Identification of markets and consumer behaviour are vital parts of

advertising management.

2.2 Historical Development of Advertisement

Advertising belongs to the modern industrial world, and to those countries which are

developing and becoming industrialised. In the past when a shopkeeper or stall holder had

only to show and shout his goods to passes by, advertising as we know it today hardly

existed. Early forms of advertising were signs such as the in sign, the red and white stripped

barber’s pole, the apothecary’s jar of coloured liquid and the wheelwright’s wheel, some of

which have survived until today.

The need for advertising developed with the expansion of population and the growth

of towns with their shops and large stores; mass production in factories; roads and railways to

convey goods; and popular newspapers in which to advertise. The large quantities of goods

being produced were made known by means of advertising to unknown customers who lived

far from the place of manufacture. This process developed some two hundred years ago in

industrialised countries.

Advertising is the development of media, such as the coffeehouse newspapers of the

seventeenth century, and the arrival of advertising agencies such as White’s in 1800 to handle

British government lottery advertising. Reynell and Son was another early agency, founded in

London in 1942. As it is understood today, advertising is only a couple of centuries old. Over

the years, advertising has come to acquire a distinct positioning in the overall marketing mix

as we have seen in the several of advertising. Advertising, it is said, is a reflection of society.

One can broadly divide the various periods in India as under;

o Personal selling” era: The “sunye, meharban, kadardan” period. The barter

system which sold goods against goods. The sale of slaves, animals and various

commodities was through the process of personal selling. In the absence of any

mass media, advertising, a mediated communication was not possible.

o The “product” era: "How to build a better mouse trap” phase. The emphasis in

triad was on how to manufacture a better product and disseminate information

about it.

o The “sales” era: In this era, the process was geared towards hard sell the

“salesman approach”. The advertising changed from information to "uski sari meri

sari se safed” or “my brother stronger than yours”.

o The “consumer” era: During this period a study of human behaviour and its role

in the purchase of products came into focus. Abraham Maslow and Sigmund

Freud were “employed” to understand the complexities of the human mind. This

was the beginning of modern advertising in the face of too many “me-too”

products. This period witnessed the emergence of the following phenomena:

1. Consumer psychology

2. Lifestyle advertising

3. In-depth research

4. Subliminal advertising

5. Marketing

6. Emergence of USP

o The “positioning” era: ‘Half a mind is better than none’ was the core philosophy

of this era. Instead of a wider scattered segment, the advertisers opted for a small

and consistent share in the market. The period witnessed the following major

trends:

1. Demise of USP

2. Intelligent sacrifice

3. “In the mind” v/s other brands to evolve a strong appeal

o The “value marketing” era: The current age can be designated as the ‘value

marketing’ period. Internationally, there is a movement towards more responsible

advertising. Following are some of the emerging trends:

1. “Niche” or micro-marketing.

2. Orchestration or integrated marketing.

3. Maxi marketing or “value based” direct marketing.

A great feeling of value is passed on to the consumer. More and more marketers are

using sales promotion gimmicks like discounts, exchange of old products, “buy one take

another free”, thus enticing the consumer by a variety of means.

In retrospect, one can say that the 1950’s was an era of functional advertising with the

concept of “hard sell”, hammering home the message through thick and bold headlines, dark

prints and monograms. It was a matter of fact functional advertising that worked through

repetition.

The 1950’s can be reckoned as the watershed era for advertising. With the national

planning, many industries were set up. Cinema advertising began in the 50’s. Kolkata

pioneered in setting up India’s first Ad club in 1956. National Advertising created the much

acclaimed “Murphy baby”.

The 1960’s witnessed advertising which was a lot more creative a pop art movement,

the fusion of art with everyday products-an indulgent phase. The lux ads using celebrities, the

Pears ad, “some complexions never grow old”, the dalda vanaspathi ads, which made it

almost a hallmark, the Binnies and the Mafatlal ads dominated the scene.

India’s first advertising convention was held in Kolkata in the year 1960, followed by

Asian Advertising Congress in Delhi. In the 1970, thanks to the influence of flower children

and hippie culture, it had its reflection on advertising also- thus began an era of rebellion, of

breaking conventions. Lifestyle ads especially relating to cigarettes were more visible.

The decade of seventies witnessed the media boom. The Asian Advertising Congress

was held at New Delhi. The decade of eighties was path breaking in the advertising field.

This can be summed up by an ad headline, “If you have it. Flaunt it”. It was an era of

materialistic advertising, but at the same time of well researched, structured and slick

campaigns.

The 1980’s saw a boom in Public sector advertising. Advertising agencies expanded.

Television emerged as a powerful media; beginning from 15 August 1982.All India Radio

also introduced commercials during the same year.

The current phase of the nineties can be said to be an “introspective” era. Advertising

is far more realistic and sober. It is less indulgent and more restrained. Thanks to the

increasing awareness about consumer rights and an active judicial system, especially in

regard to the Public Interest Litigations, the emergence of special interest groups, and above

all the emergence of a new consumer class, one finds the advertising world taking a cautious

path.

In the current phase, one finds more emphasis on the brand equity leading to

institutional advertising. Globalisation of advertising is another visible aspect.

Thus the modern world depends on advertising. Without it, producers and distributors

would be unable to sell, buyers would not know about and continue to remember products or

services, and the modern industrial world would collapse. If factory output is to be

maintained profitably, advertising must be powerful and continuous. Mass production

requires mass consumption which in turn requires advertising to the mass market through the

mass media.

The first advertising agencies were space brokers and their legal position as agents of

the media remains today as with the legal precedents of the ‘agent acts as principal’ and are

responsible for the payment of media bills even if the advertiser defaults. However, as

printing processes improved and it became possible to illustrate advertisements the early

agencies competed for business by offering creative services to advertisers. Thus the service

agency took over from the mere space broker.

The British are apt to disdain advertising, claiming that they are not persuaded by

advertisements. In spite of this homes are full of advertised products, and if a product is

advertised on TV there is a heavy demand for it in the shops. Marketing Week engaged the

human factor to research the situation, and the results were published in the issue of 26

February 1993. One thousand adults were interviewed.

Overall, the study found a surprisingly high level of distrust and condemnation of

advertising. Even people who claim to enjoy the ads on TV more than the programmes do not

believe ads present a true picture of products. Yet they buy them. The researchers identified

three main and extreme groups. These were the moralists who regard advertising as a bad

influence on society, the advertising immune who say they pay little attention to

advertisements; and the enthusiasts who pay great attention to advertising.

This is a curious situation in which advertising has to operate. It is like saying that

passengers on an airliner have no belief that it will take them anywhere. Without advertising

modern industrial society would not exist.

2.3 OBJECTIVES OF ADVERTISING

The basic objective of advertising of a concern is to increase its sales volume and

profits. However, these can be achieved by adopting a variety of strategies.

1. To increase the sales volume by multiplying product uses or increasing the unit of

purchases.

2. To facilitate launching a new product or a new brand in the market.

3. To support the existing sales force of the organisation in order to make the job sales

personnel less difficult and more efficient.

4. To get more access to such consumers who are otherwise inaccessible on account of

topographical or transportation barriers.

5. To enter a new market segment which are hitherto untapped.

6. To better the dealer relations in order to augment the indirect distribution.

7. To augment the industry’s sale for the betterment of the entire society.

8. To eradicate the wrong consumer notions which are otherwise based on the minds of

the consumers.

9. To build up goodwill by way of non commercial advertisements without a profit

motive.

10. To build up an effective brand performance for a particular product or services.

2.4 SCOPE OF ADVERTISING

Advertising has a wide scope in marketing and the social system. This scope has been

described on the basis of activities included under advertising and their forms and systems,

objectives and functions

2.4.1 MESSAGES

Advertising carries message of the product. The message may be visual or oral. It is designed

in a systematic and psychological manner to influence the prospective customer and

formulated on the basis of need, environment and objectives. It may or may not be brilliant in

planning and execution; but it should be representative of the product. The terminology may

be new, but may prove effective in attainment of the objectives.

2.4.2 MEDIA

A large number of advertising media, with their respective advantages, disadvantages, costs

and benefits are available. The selection of a medium should be made on the basis of the type

of customers to be approached, and the capacity of the organisation to bear the cost. The print

media, such as newspapers, magazines and posters have been the traditional media of

advertising.

2.4.3 MERCHANDISE

The merchandise, the product and services to be sold, has its advantages and disadvantages.

The advertiser should demonstrate the attributes of the product and avoid the criticism of a

similar product of the competitors. The outstanding qualities of the product should be

assessed and exposed with emphasis. New and existing products are advertised to popularise

them. A firm is recognised as an important source of advertising.

2.5 ADVERTISING FUNCTIONS

Advertising creates demand, promotes the marketing system, helps middleman, presents the

image of the organisation, and performs some other functions as well. No producer can think

of sales without advertising. Salesman and sales managers can expect some results only when

there is advertising. They can talk about the price, quality, discount and terms and conditions

of sale by adopting some forms of advertisement. If customers are made aware of the terms

and conditions, discounts and prices, they are likely to purchase them if the prices are

competitive. New products are advertised to make the public aware of their special qualities

and prices. The marketing system may be moulded for the benefit of producers through

advertisement. Consumer demand can be assessed by researchers so that effective methods of

advertising may be adopted. If the new products are made known to customers, the market

for them will expand. When the potential customers realise that the attributes and prices of

new products are suitable, the demand for there new products will surpass that for the old

products. Middlemen are benefitted through advertising, because customers are told about the

want satisfying qualities made aware of the product. When goods are advertised, customers

are made aware of the products and traders have no difficulty in pushing up their sales.

Sometimes, the advertiser indicates the place of sale and customers try to buy goods at that

place. Advertising media are often referred to as middlemen because they bring the customers

and the producers together.

2.6 ADVERTISER

The advertiser is considered a core institution of society. He helps the people understand the

merits and demerits of his product. He controls the message and media to benefit society. A

slight negligence on the part of the advertiser can destroy his image and the values of society.

He has to be very cautious in selecting his advertising messages and methods. Costs and

benefits are also compared before a particular medium of advertising is adopted. Since

customers are made aware of the different products and goods, they are in a position to select

the products are also sold by the adoption of an attractive advertising medium. The

advertisers have a great social responsibility to create a sound social and economic system.

2.7 ACTIVITIES

Advertising assists in the performance of certain activities by the advertiser, the sponsor of

the producer and the marketer. The activities included under advertising are mass

communication, carrying messages, developing impressions and image building. It is

informative, persuasive and reminding communication. These activities are performed by the

advertiser economically, effectively and regularly.

2.8 ART AND SCIENCE

Advertising is considered to be an art as well as a science because it has some of the

characteristics of both. It is an art because the advertiser employs his creative abilities to

device effective ways of communication. Techniques and professional talent are essential

factors in advertising. Expert and specialist personnel make advertising useful and topically

relevant. Advertising is also a science because it is based on certain socio-psychological

factors, which influence marketing decisions. Cause and effect relationships are made use of

in advertising. The results and performance of advertising are measurable.

2.9 ADVERTISEMENT IMPACT

Advertising impact is an evaluation of the extent to which a specific advertisement or

advertising campaign meets the objectives specified by the client. The degree to which the

objectives specified by the client. The degree to which the objectives of an advertising

campaign have been achieved; the effectiveness is commonly gauged by the measuring effect

on sales, brand awareness brand preferences, etc.

Advertising is an important element of promotion mix. Advertising is a powerful

communication force, highly visible and one of the most important tools of marketing

communications that helps to sell products, services, ideas and images. They are information

provided by organizations on top of the basic benefits that they offer their products of

services (Kolter, Armstrong, Saunders & Wong, 2005). This implies that advertisement

like other traditional forms of marketing activities have been about mass offer (Mitchell, H,

2000). Nevertheless, advertisements are also about building long term buyer –seller

relationships.

The concept of effectiveness of advertisements has been by various authors, and numerous

definitions have been used to explain the advertisement concept.

One of the first researchers who started to study the effectiveness of advertisement was Gupta

(1988). He was seeking answers for what, when, and how much consumers buy. Therefore,

he attained some answers for those questions by decomposing the sales “bump” into brand

switching (secondary demand), Purchase acceleration and purchase quantity. These two latter

effects, together, constitute the primary demand because they account for the growth of the

category. His results, based on the coffee category, shows that the main impact of

advertisement is brand switching (84%), and that there is 14% of purchase acceleration in

time and 2% of increased purchased quantity for stockpiling (84/14/2).

Kincade, Doris H.; Woodard, Ginger A.; Park, Haesun (2002) studied the

advertisement support categories offered retailers by manufactures, to identity the retailer’s

perceptions of the offering frequency and importance of the promotional support, and to

investigate the relationship between offering frequency and perceptions of importance. Result

indicated that monetary support was regarded as the most importance promotional support. A

positive and significant correlation was found between items the buyers perceived as

important and the frequency of offerings of these items.

A study by Brown on impact of advertisements said that advertisements yields faster

and more measurable responses in sales than any other promotional tool; also it can attract

consumers who switch among brands as deals become available also loyal customers tend not

to change their buying patterns as a result of competitive promotion.

According to P.K. Sudarsan, he evaluated the impact of advertisements on sales using

firm level data, reported that there are different views about the role of Advertisements in an

economy. The ultimate objective advertisements are to increase sales. The study was done

using simple regression models and dummy variable regression models with cross section

data set of 100 firms in India. The result shows that an advertisement influences sales, though

its relative effectiveness is not the same for all categories of firms.

Taylor and weiserbs (1972) studied the relationship advertisements expenditure and

aggregate sales. They used Houtakker-Toylor model and the result showed that

advertisements and sales is not unidirectional but simultaneous.

Lavidge (1961) studied that some thing is to happen in the long run, it must be happening in

the short- run and will remain in the short run. This study is formulated using cross section

data.

Turner (2000) using co integration technique based on Lydia pink ham data for the period

1907-1961 showed a strong positive relationship between advertisements and sales.

The above review reveals that there is no consensus on the economic effects of

advertisements on sales. Majority of the study shown that there is a positive relationship

between advertisements and sales and some studies have found that there is a two- way

casual relationship between advertisements and sales.

CHAPTER-III

3.1 INDUSTRY PROFILE

3.2 COMPANY PROFILE

3.1 INDUSTRY PROFILE

3.1.1 GLOBAL MARKET FOR GOLD

3.1.1.1 HISTORY OF GOLD PRODUCTION

4000 years ago, annual production of approximately one ton of gold in the territory of

modern Egypt, Sudan and Saudi Arabia. The first gold containing coin was produced already

in the year 800 B.C. It is believed that the first solid gold coin was created in the 6 th century

B.C. by the King Krosos of Lydia. Gold mining diminished dramatically from the sixth

century until the fifteenth century. In the middle of the fifteenth century, interest in gold

increased. An important source of gold was derived from the mines of West Africa (now it is

known as Ghana), where five to eight tonnes of gold were mined per year.. During the

eighteenth century, substantial quantities of gold were mined in Russia as well, which

resulted in an increase in the yearly worldwide production by approximately 25 tonnes

towards the end of the century. The discovery of gold in California signaled a turning

point in the history of gold. In 1853 alone, 95 tonnes of gold were taken from these mines. At

about the same time, substantial gold discoveries were also made in Australia. Worldwide

production increased rapidly and after a few years amounted to nearly 300 tonnes per year.

Many older mines were reopened and intensive exploration resulted in numerous substantial

gold discoveries. Between 1980 and 1990, the production of gold in the western world rose

from 962 to 1,744 tonnes per year, and has then continued to increase to a yearly level of

some 2500 tonnes as at the turn of the millennium.

3.1.1.2 THE WORLDS GOLD PRODUCTION-GLOBAL MARKET

SCENARIO

In 2009 the global gold production increased by 163 tonnes and reached the level of

2,572 tonnes, what is 7% more than in 2008, reversing three previous years of decline.

Growth in the global production levels came from a number of new projects worldwide,

coupled with a large rise at Grasberg in Indonesia. In 2009, for the third year running, China

became the country to produce most gold in the world and, thereby, overtook the first place

from South Africa, which had been the worldґs largest gold producer since 1905. After

recording a modest rise in production in 2008, Chinese gold production grew strongly in

2009, with output increasing 11% to 324 tonnes. Productions in South Africa fell by almost 9

%, the chief cause of this being lower gold contents; the countries average contents were

reduced by 10% during the year. Latin American production increased by a total of 30

tonnes, notably in Argentina, Brazil and Mexico, due to new projects and expansions came

on stream. The CIS countries (the former Soviet Union) increased their production by 20

tonnes, what is a 6% growth in comparison to the previous year. According to the GFMS,

output in Russia recorded strong growth of 16 tonnes. Amongst the countries that reduced

their production most compared with the previous year were South Africa and the USA. The

two countries contributed to a reduction of 28.4 tonnes.

3.1.1.3 THE GOLD PRICE

The average price for gold in the world market has increased within 2009 having

come nearer to a mark 972.35 USD for ounce. In comparison with 2008 growth has made

approximately 11 %. For January, 2010 the price for gold already made 1 250 USD for

ounce, and continued to grow steadily throughout all 2010. Geographic breakdown of

production, gold grade and production costs Gold is produced in mines in all the continents of

the world except in the Antarctic. The gold consultancy company Beacon Group identified

some 900 gold-producing mines all over the world in 2002. During a long period in the 20th

century, South Africa dominated as the number-one global gold producer. In 1970 it

produced 1,000 tonnes, which was 70% of the global volume at this point in time. Thereafter,

South Africa’s proportion has fallen, and in 2007 China took the lead as the world’s greatest

gold nation, with 11 % of world production. The gold grade of the ores varies globally

depending on the particular ore bodies. Generally, the gold content at the largest South

African mines amounts to 8-10 g/tonne, while smaller South African mines produce 4-6

g/tonne. Much of the gold in the world is produced in open-pit mines, where the gold content

of the ore is generally lower than in deep mines, with gold content of 1-4 g/tonne. Production

costs the world over vary a lot, depending on whether it is a case of mines or open-cast, how

deep down the gold deposits are, the type and characteristics of ore bodies and the gold

content. The average stated cash production costs for commercial information-producing

larger western mining companies for 2009 amounted to just under 478 USD/oz, which is 2

more than in 2008.

3.1.1.4 RETAIL GOLD MARKET

The global trading of gold consists mainly of a bigger part that takes place via the over-the-

counter market (OTC), i.e. directly between various market players. This market segment is

then divided in spot transactions and various forms of derivative transactions such as futures

and options. The OTC-market is open around the clock, and the main centers for such trades

are London, New York and Zurich, where larger transactions take place (central banks and

mining companies). The minimum trade size in this market is 1,000 troy ounces (oz). In

Dubai and other cities of the Far East OTC-transactions also get concluded, however in

smaller size. OTC-trading is organized manually via telephone as well as via an electronic

trading system. In order to support the market pricing mechanism, a reference price for gold

is established twice a day in London, the so called “London fix”. Settlements on the market

are organized in a similar way as on the international currency market via accounts in various

banks. The standard size is a “London Good Delivery Bar”. The settlement currency is

normally in US-dollars. The underlying market size are the 165,600 tonnes of gold (as at end

of 2009) multiplied by the current market price. As at the end of the first quarter of 2003, the

total market value of the gold market amounted to 1/10 of the market capitalization of the

New York stock exchange. However, since the market consists of only one homogenous

product the liquidity is first class. It is a little bit complicated to determine the exact turnover

rates and prices (due to the large part of OTC-trading). The gold industry organization World

Gold Council, estimates the turnover rate of the underlying market at three times (that is the

value of all gold sold during a year is three times higher than the value of all gold existing

3.1.2 INDIAN MARKET SCENARIO

India's centuries-old gold industry is the world's biggest market for the metal, with

imports meeting almost all the country's requirements for jewellery and investment. While

some aspects of the industry remain unchanged, some shifts in consumption patterns are

striking.

Here are facts on the industry and changes taking place:

India in 2009 faced its weakest year since gold trade was freed up in 1997. Record

high prices and a failed monsoon cut imports by 33 per cent from the previous year to

480 tonnes, against an annual range between 600 and 800 tonnes in the previous five

years.

Imports are high partly because of the large population of about 1.2 billion. Per capita

gold consumption is only 0.7 grams, half that of the United States and one-third of the

Middle East, according to World Gold Council (WGC) estimates.

India's gold market is estimated to have more than 300,000 jewellers, mostly small,

family-run businesses, a WGC study showed.

Only 23 banks and some private and government trading agencies have licences to

import gold because of its implications for foreign exchange flows.

India's 2010/11 budget raised the import duty on gold and platinum to 300 rupees

($6.65) per 10 grams from 200 rupees earlier, with the duty on silver raised to 1,500

rupees per kg from 1,000 rupees earlier.

Investment purchases of gold have been rising faster than jewellery purchases. WGC's

latest data shows the investment to jewellery ratio was approximately 15:85 in 2009.

Gold in the form of exchange-traded funds is rising. Launched in 2007, the total

collection among seven fund houses is more than 11 tonnes, nearly double from a

year ago.

In urban areas, gold faces competition from diamonds as incomes have risen, but the

higher purchasing power of the lower and middle income sections of the population

has brought new customers into the market.

Large corporate jewellers, such as Titan Industries, Reliance Jewels, Rajesh Exports

and the state-run MMTC Ltd are targetting the retail market with plans to have

hundreds of shops, hoping to rely on branding to push up sales.

India's imports of gold in the last seven years in metric tonnes, as per World Gold

Council data.

Gold imports

2010 - 365

2009 - 480

2008 - 712.6

2007 - 769.2

2006 - 715.5

2005 - 721.6

2004 - 614.5

3.1.2.1 GOLD BUYING TRENDS OF KERALA

Shopping for gold: Gold is brought in biscuit form from government authorised

agencies and banks like the State Bank of India, Indian Overseas Bank, Corporation Bank

and the MMTC Ltd (Metals and Minerals trading corporation Ltd. Each piece weighs 10 tolas

(1 tola is 11.664gms). Biscuits are also available in 1, 2, 5, 10, 20, 31.6, 50 gms etc. Big

merchants who in turn sell it to the smaller jewellers bring gold biscuits from authorised

agencies. Of course, the merchants have the option of using the whole stock, which is rarely

done. Merchandise: There are about 100 big businesses in the state. i.e those having more

than 35kg in stock. Of them about 50 gold merchants own more than 75 to 100 kg. Any major

market place in any town in Kerala boasts of 60-80 jewellers. Earlier, the requirement of

licence issued by the Central Excise department was a must for setting up of a gold shop.

Since it has been lifted, the numbers have increased tremendously. Brisk business: On a

normal day, sales from 100gms to 10kg unofficially. There are instances of jewellers selling

22 kgs of gold ornaments on a single day. In the bigger cities and bigger businesses, it goes

upto 40kg unofficially. There are almost 50-60 types of thin bangles in the market on a

normal day. Festival and marriage season, it may vary. One can find about 1000 designs of

necklaces while there would be about 20-30 different types of chains in a jeweller's shop on

any given day. Arab gold: NRIs from the Gulf were active participants to this business in the

state. With tighter custom checks and gulf-returnees on the increase, those doors have almost

closed.

3.2 COMPANY PROFILE

3.2.1 HISTORY

The name ‘Bhima’ which is familiar to the people of South India for past so many

decades commenced its business in Kerala in the year 1925 at ALLEPPY, the Venice of East.

The Bhima Group was founded in the year 1925 by Sri K Bhima Bhattar. Sri K Bhima

Bhattar pioneered the concept of readymade Jewellery in Kerala with the establishment of

Bhima & Brother Jewellers Alappuzha, the first of its kind in Kerala. Since its

commencement the allegiance towards customer revealed its success and growth. Now the

group has 15 branches across South India and a few to come soon. Still the group holds the

pioneer ship in the field. All the branches are now managing by the sons of the founder –

Bhima Bhattar. The Bhima Group has had a track record of sustained growth which has been

made possible because of the group’s allegiance to quality and personalized service. The

group enjoys a tremendous goodwill, thanks to its practices which have the customer as its

first priority.

Sri. Lakshmikanthan the youngest son heads the operation of the founding concern at

Alappuzha and that of Kollam and Thrissur. He commenced his venture at Kollam on July

12th 2000. On 18th November 2005, he commenced his third exclusive showroom at land of

temples, Thrissur. This group also manages Punnamada Backwater Resorts, a 3 star resort on

the banks of backwaters at Alleppy. All the showrooms are running in their own premises.

Now the management is planning for some more branches to be open soon .His vision and

experience enrich with the innovative ideas of his sons made these branches to take a lead

position among the other branches. As part of innovative step, the group expand their

business from the yellow metal to the while elegant silver. All the outlets opened separate

sections for silver ornaments and articles.

To sustain the position of a leader in the competitive market, bhima never give up its values

and policies. They give prime importance to quality, design and customer satisfaction. They

ensure their product’s quality and design which is the best in the market and provide it with

most satisfactory manner. There is not a mere buying and selling existing but a good

relationship is maintaining for the long future.

The qualities that have made Bhima a market leader in the readymade Jewellery and

precious stones are:

Goodwill

Purity and quality

Customized services

Consistent buy back policy

Variety and wide range of collections

Its goodwill is priceless. Each and every aspect of Bhima has its perfection. The goal of the

firm is that through group performance attain the maximum levels of achievements and be a

model for other branches.

Advantages of Bhima & Brother over other jewelers:

Most trusted jewelers of South India since its inception.

Most consistent player of the field for over 84years.

The largest tax payer in the field in Kerala.

Largest and exclusive collections of jewelers and precious stones from India and abroad.

All the items are in 91.65 purity and hallmarked.

Supply most trendy and fashionable ornaments.

Highest stock keeper in kerala in the field both in gold ornaments and diamonds.

Apart from the yellow metal –gold and the most precious diamond, the group also started its

foot steps towards the white elegant silver which will make a tremendous impact on the

fashionable world of designs. Each showroom has separate silver exclusive sections with

wide range of ornaments and articles marked with 92.5 purity.

In 1925 when Shri. K. Bhima Bhattar founded Bhima Jewellery at Alleppey, jewellery retail

was an innovative concept. And thus, it became the first jewellery retail showroom in Kerala.

Since inception, it focused on the principle of selling pure gold. Today, it has outlets in many

cities and towns of Kerala, Tamil Nadu & Karnataka including India’s largest jewellery

showroom at Trivandrum. Shri. K. Bhima Bhattar founded Bhima in 1925 in Alleppey, and

his son Dr. B. Govindan expanded Bhima Jewellery to the capital of God’s own country in

1991. Dr. B. Govindan spearheaded Bhima Jewellery, Trivandrum to launch the largest

jewellery showroom in India at Ayurveda College Junction, Trivandrum in 5 floors and

25,000 sq.ft. On Monday, August 24, 2009. Dr. B. Govindan also launched Bhima Jewellery

showrooms at Nagercoil in 2003 and at Madurai in 2007.

3.2.2 EXPORTS

Bhima has been exporting its jewellery to the USA, Europe and the Middle East. With close

monitoring of the changing trends in the jewellery market, Bhima has produced a wide

variety of modern and trendy designs, which are sourced from around the country.

3.2.2.1 EXPORT COLLECTIONS FROM BHIMA

They retail 22 carat handmade jewellery and wholesale orders for other caratage are also

accepted. We also manufacture jewellery in 18 ct. and 21 ct.

The designs range from the traditional Travancore jewellery to the ultra modern Calcutta

jewellery. Lightweight Coimbatore jewellery, traditional jewellery from Rajkot, Rajasthan

and Delhi, studded items from Karwar & Nellore and exquisite Diamond studded jewellery

are also amongst our range.

3.2.2.2 A SUMMARY OF THE ITEMS BHIMA MANUFACTURES FOR

EXPORT

Plain studs, Jimka studs, Nose studs, J-studs, Earrings, Drops, Maattis, Lockets, Coins,

Bangles, Bracelets, Arm bangles (Vanki), Necklaces, Fancy chains, Plain chains, Anklets,

Hip chains, Patti (Odyanam), Gemstone jewellery, Birthstone jewellery, Diamond jewellery,

Tiepins, Cuff links, Gold buckles, Key-chains, Punjabi kadaas, Tulasi chains, Rudraksha

chains, Navaratna beads chains, Tricolour, Rodium polish and White gold polish

3.2.2.3 BHIMA’S JEWELLERY IN VARIOUS STYLES...

Antique Jewellery: Unique jewellery made from antique moulds of rare jewellery

Coimbatore Jewellery: Lightweight jewellery like no other in India

Calcutta Jewellery: Exquisite designs of chunky Calcutta jewellery

Karwar Jewellery: Limited designs of stunning and unique studded jewellery

coming from the Northern Karnataka region

Nellore Jewellery: Studded jewellery in a variety of designs

Travancore Jewellery: Traditional Kerala jewellery

CHAPTER-IV

4. DATA ANALYSIS AND INTERPRITATION

4. DATA ANALYSIS AND INTERPRETATION

Data analysis means studying the tabulated material in order to determine inherent facts or

meanings. In other words, the analysis means the computation of certain indices or

measure or coefficients along with searching for pattern of relationships that exist among

data groups. In case of survey and experimental data, analysis involves estimating the

values of unknown parameters of the population and testing of hypothesis for drawing

inferences.

Likert’s - summated scale techniques used to identify the customer attitude and

their degree of satisfaction towards a particular variable/ feature of the advertisements in

creating brand awareness. In this scale the respondents indicate several degree of

agreement or disagreement with each item that constitutes the scales instead of indicating

his agreement with only a few items. Each response is given in a numerical score based on

the scale of five or seven points, indicating his/ her degree of agreement or disagreement.

Assigning value to five different scales

A five point scale is followed to measure the customer perceptions like strongly agree,

agree, moderately agree, disagree, strongly disagree etc. For each scale a value is assigned

to that such as 5 for strongly agree, 4 for agree, 3 for moderately agree, 2 for disagree, 1

for strongly disagree. The score range falls between 0 - 250 as the sum of the product of

score assigned and number of respondent falls within this range. So, if calculated value

falls between 0 – 50, it means that customers are strongly disagreeing or strongly

dissatisfied with company’s advertisement /product. If calculated value within 51 – 100

scores ranges, it means customers are dissatisfied/ company’s strategy is poor. If

calculated value falls between 101 – 150 score ranges, it means customers are moderately

satisfied/ company’s strategy is moderately effective. If calculated value fall between151 –

200 it means customers are satisfied/ company’s strategy is effective. If the calculated

value is in between 201 – 250 score ranges, it means customers are extremely satisfied /

company’s strategy is highly effective.

4.1.1 Most identifiable features of Bhima jewellery

Table.1

Sl. No. Particulars No. Of Respondents Percentage

1 Quality 17 34%

2 Variety of designs 13 26%

3 Pricing strategy 1 2%

4 Customer service 9 18%

5 Advertisement 4 8%

6 Traditional value 6 12%

Total 50 100%

17

13

1

9

4

6

QualityVariety of designsPricing strategyCustomer serviceAdvertisementTraditional value

Chart.1

Interpretation

The above table shows the most identifiable features that customers relate with Bhima

Jewellery 34% of customers think about the quality of the products, 26% of them think

about variety of designs, 2% of them think about pricing strategy, 18% of them think

about customer service provided by bhima jewellery, 8% of them think about

advertisement, 12% of them think about traditional values.

4.1.2 Source of first time information about Bhima

Table.2

Sl. No Particulars No. Of Respondents Percentage

1 Friends 9 18%

2 Relatives 15 30%

3 Advertisement 15 30%

4 Executives -- --

5 Own family 11 22%

Total 50 100%

9

15

15

11

FriendsRelativesAdvertisementOwn family

Chart.2

Interpretation

From the above table we can understand that 18% of the customers came to know about

Bhima Jewellery from their friends, 30% of respondents got information from relatives,

30% of respondents got information from advertisement and 22% of respondents got

informationfrom their own family.

4.1.3 Customers Preference for Selection of Jewellery Shop

Table.3


1 Bhima 24 48%

2 Kalyan 8 16%

3 Josco 7 14%

4 Alukas 4 8%

5 Malabar 5 10%

6 Chungathu -- --

7 Chemmannur 2 4%

8 Others -- --

Total 50 100%

24

8

7

4

52

BhimaKalyanJoscoAlukasMalabarChemmannur

Chart.3

Interpretation

The above table shows that 48% of the customers prefer Bhima Jewellery, 16% of

the customers prefer Kalyan, 14% of the customers prefer Josco, 8% customers prefer

Alukas, 10% customers prefer Malabar and only 4% customers prefer Chemmannur

4.1.4 Frequency of Advertisements of Bhima Viewed by Customers

Table.4


1. Once 13 26%

2. 1-5 17 34%

3. 5-10 7 14%

4. Morethan10 13 26%

Total 50 100%

13

17

7

13

once1 to 55 to 10more than 10

Chart.4

Interpretation

The above chart we can conclude that 26% of customers viewed Bhima’s

advertisement only once, 34% of the customers viewed the advertisements more than two

times, 14% of the customers viewed the advertisement for more than five times, 26% of

the customers viewed the advertisement for more than ten times.

4.1.5 Customers Rating as “Most attractive advertisement” aired by

Jewellery Shops

Table.5

Sl. No. Particulars No. Of Respondents Percentage1 Bhima 15 30%2 Kalyan 13 26%3 Josco 10 20%4 Alukas 3 6%5 Malabar 8 16%6 Alappat -- --7 Chungathu 1 2%8 Chemmanur -- --

Total 50 100%

15

13

10

3

81

BhimaKalyanJoscoAlukasMalabarChungathu

Chart.5

Interpretation

From the above table 30% of the customers rate Bhima’s advertisement as most attractive

one, 26% of the customers rate Kalyan’s advertisement most attractive one, 20%of the

customers rate Josco’s advertisement most attractive one, 6% of the customers rate Alukas

advertisment most attractive one, 16% of the customers rate Malabar’s advertisment most

attractive one and remaining 2% of the customers rate Chungathu advertisement most

attractive one.

4.1.6 Customers opinion about Bhima’s advertisment

Table.6


1. Creative 4 8%

2. Attractive 29 58%

3. Honest 6 12%

4. Touching 9 18%

5. Professional 2 4%

Total 50 100%

4

29

6

9

2

CreativeAttractiveHonestTouchingProfessional

Chart.6

Interpretation

From the above table 8% of the customers opined that Bhima’s advertisement are creative,

58% respondents opined that advertisements are attractive, 12% the customers opined that

advertisements are believable, 18% the customers opined that advertisements are touching

and remaining 4% customers opined that advertisements are professional.

4.1.7 Customers level of agreement towards the statement “Bhima

Advertisements are Convincing”

Table.7

Sl. No Opinion Rank(A) No. Of Respondents(B) Score(A*B)

1. Strongly agree 5 12 60

2. Agree 4 31 124

3. Moderatly agree 3 7 21

4. Disagree 2 -- --

5. Strongly disagree 1 -- --

Total 50 205

Strongly

agreeAgree Moderatly

agreeDisagree Strongly

disagree

0

5

10

15

20

25

30

35

12

31

7

0 0

number of respondent

Chart.7

Interpretation

24% of customers opined that Bhima’s advertisements have most convincing features,

62% of customers opined that advertisement have convincing features, 14% customers

rated the advertisement have only moderately convincing features.

4.1.8 Source of information about Bhima jewellary

Table.8


1. Flex 3 6%

2. TV 29 58%

3. News paper 18 36%

4. Online -- --

5. Magazine -- --

6. Cinema theatre -- --

7. Other printed media -- --

Total 50 100%

3

29

18

FlexTVNews paper

Chart.8

Interpretation

The above table shows that 58% of customers viewed Bhima Jewellery’s advertisements

through television, 36% customers viewed the advertisements through news paper, 6%

customers viewed the advertisements through flex boards.

4.1.9 Frequency of customers purchase behavior

Table.9


1. Very often 18 36%

2. Often 24 48%

3. Rarely 8 16%

Total 50 100%

18

24

8

Very oftenOftenRarely

Chart.9

Interpretation

From the above table we can conclude that 36% of customers purchase gold more

frequently based on advertisements, 48% customers often purchase gold based on

advertisements and 16% customers purchase gold rarely based on advertisements.

4.1.10 Customers opinion about the most influencing factor in brand

building

Table.10


1. Advertising 9 18%

2. Quality 25 50%

3. Variety of designs 4 8%

4. Customer service 7 14%

5. Traditional value 5 10%

Total 50 100%

9

25

4

7

5

AdvertisingQualityVariety of designsCustomer serviceTraditional value

Chart.10

Interpretation

The above table shows that 50% customers considers quality as the most influencing

factor which builds the brand,18% of people opined that advertisement is the most

influencing factor which builds the brand, 8% of people opined that variety is the most

influencing factor which builds the brand, 14% of people opined that customer service is

the most influencing factor which builds the brand and 10% of people opined that think

traditional values is the most influencing factor which builds the brand.

4.1.11 Opinion about the quality of the advertisement of Bhima jewellery

Table.11

Sl. No. Opinion Score(A) No. Of Respondents(B) Product (A*B)

1. Excellent 5 13 65

2. Good 4 28 112

3. Average 3 9 27

4. Poor 2 -- --

5. Very poor 1 -- --

Total 50 209

Interpretation

As calculated value falls within the score range of 200-250, we can conclude that the

advertisements of Bhīma’s are highly effective.

4.1.12 Effectiveness of advertisement

Table.12

Sl. No. Opinion Score(A) No. Of Respondents(B) Product(A*B)


2. Agree 4 33 132

3. Moderately agree 3 4 12

4. Disagree 2 -- --


Total 50 209

Interpretation

From the above table we can understand that only 26% of customers are strongly agree to

the statement brand building activities of Bhima is effective, 66% customers considers

brand building strategies are effective, 8% of customers consider it as moderately

effective.

4.1.13 customers opinion about effectiveness of product endorsements

through brand ambassador

Table.13


1. Effective 17 34%

2. Not Effective 33 66%

Total 50 100%

17

33

EffectiveNot effective

Chart.11

Interpretation

From the above table, we can interpret 34% of customers think Brand ambassador is

required for endorsing the product more effectively, 66% think there is no need of brand

ambassador.

4.1.14 Opinion of the features related to Bhima jewellery

Table.14

Sl.

No

Particulars Extremely

Good

Very

Good

Good Poor Very

Poor

Total

1. Quality(No. of

respondents(A))

28 22 50

Scale point(B) 5 4 3 2 1

Score(A*B) 140 88 -- -- -- 228

2. Price(No. of

respondents(A))

4 22 23 1 50


Score(A*B) 20 88 69 2 -- 179

3. Customer

service(A)

29 17 3 1 50


Score(A*B) 145 68 9 2 -- 224

4. Advertisement(A) 18 19 13 50


Score(A*B) 90 76 39 -- -- 205

5. Variety of

designs(A)

15 28 7 -- -- 50


Score(A*B) 75 112 21 -- -- 208

6 Brand image(A) 19 22 9 -- -- 50


Score(A*B) 95 88 27 -- -- 210

Interpretation

In the case of Quality: As calculated value falls within the score range of 200-250, we can

conclude that the quality of Bhīma’s gold is extremely good.

In the case of Price: As calculated value falls within the score range of 150-200, we can

conclude that the quality of Bhīma’s gold is good.

In the case of customer service: As calculated value falls within the score range of 200-

250, we can conclude that the quality of Bhīma’s gold is extremely good.

In the case of advertisement: As calculated value falls within the score range of 200-250,

we can conclude that the quality of Bhīma’s gold is extremely good.

In the case of variety of designs: As calculated value falls within the score range of 200-

250, we can conclude that the quality of Bhīma’s gold is extremely good.

In the case of brand image: As calculated value falls within the score range of 200-250, we

can conclude that the quality of Bhīma’s gold is extremely good.

4.1.15 Over all opinion about Bhima

Table.15

Sl. No Opinion Score(A) No. Of Respondents (B) Product(A*B)

1. Excellent 5 26 130

2. Good 4 20 80

3. Average 3 4 12

4. Poor 2 -- --

5. Very poor 1 -- --

Total 50 222

Interpretation

As calculated value falls within the score range of 200-250, we can conclude that overall

opinion about Bhima jewellery is very good.

4.1.16.Selection of branch for purchase

Table.16

Sl. No Particulars Number of respondents Percentage

1 Convenience 28 56%

2 Better customer service 22 44%

3 Any offers -- --

Total 50 100%

28

22ConvenienceBetter customer service

Chart.12

Interpretation

The above table shows that 56% of people select this branch for their convenience

and remaining 44% of people select this branch for the better customer care service.

4.1.17 Advertisement provides adequate information for making a purchase decision

Table.17

Sl. No Opinion Score (A) No. Of Respondents(B) Product(A*B)


2. Agree 4 20 80


4. Disagree 2 3 6


Total 50 191

Interpretation


advertisements of Bhima are good.

4.1.18 Customers refer Bhīma’s products to others

Table.18

Sl. No Opinion Score No. Of Respondents Product


2. Agree 4 32 128


4. Disagree 2 -- --


Total 50 204

Interpretation


customers of Bhima refer the products effectively.

4.1.19 Intent to repurchase from Bhima brand

Table.19

Sl. No Opinion Rank(A) No. Of Respondents(B) Product(A*B)


2. Agree 4 28 112


4. Disagree 2 -- --


Total 50 206

Interpretation


customers of Bhima are intent to repurchase.

CHAPTER-V

5.1 SUMMARY

5.2 FINDINGS

5.3 SUGGESTIONS

5.4 CONCLUSION

5.5 SCOPE FOR FURTHER RESEARCH

5.1 SUMMARY

Advertisement helps the business concern to increases their sales and good will.

Organizations are today focusing on ensuring the effectiveness of every campaign. Today

technological advancements and the diversity of audience usage of mediums ranging from the

internet to Television to even mobile phones have led marketers and financial officers to

understand the effectiveness of each medium and the amount of spend rightfully deserved by

the effective medium.

The competition would be keen and intense in the advertising business in India in the coming

years, but it need not pose a problem of survival if Indian companies show enough resilience

to exploit emerging opportunities. The biggest challenges to Indian companies today are

projected itself. False and misleading advertisement does not often take consumers for ride.

Now comes the conflict between generic promotion and brand advertising. Today there is a

greater accountability to client for the money spends for advertising.

The study conducted on the role of advertisement in brand building of the organization was a

successful one as the researcher was able to find that the advertisements are effective. The

advertisements of the firm are able to reach the customers effectively and the firm is able to

gain from the effective advertisements.

The majority of the customers find the advertisements to be attractive, honest and

informative. The customers find the advertisements credible and relevant to them. Majority of

them would consider purchasing the product after viewing the advertisements. Customers

have a mixed reaction about the uniqueness of the advertisements and when asked to compare

the advertisements with those of the other companies. The advertisements also lack

professionalism as indicated by the customers.

The study gives us a general idea about the customer perception of the

advertisements. The company needs to focus more on improving the shortcomings

highlighted in the study and get better on the other areas where they are performing

satisfactorily. The study, however, cannot be considered conclusive as the responses of the

customers may not be credible and may vary from time to time.

5.2 FINDINGS

Major findings

The advertisement strategies of Bhima jewellerys play an important role in brand

building

Advertisements are the main source of brand awareness

Various advertising medium act as good brand building tool

Advertisement informs the consumers about the new product and its quality and

features. Thus it facilitates easy sales.

Bhima mainly focus on quality of products

Out of 50 samples 56% of customer influence advertisement for repeating purchase

behavior.

Other findings

Advertisement is not major buying motive. The reason is that advertisements are reachable to all

areas and can create awareness in the minds of the consumer.

Advertisement helps the consumers to know when and where the jewellery.

In consumers opinion the best mode of advertisement is television.

Most of the respondents purchase Bhima products regularly

Advertisement provides with information required for making a purchase decision

Advertisement of Bhima jewellery is very popular and creative

Buying decision is affected by the advertisement

Most of the customers are satisfied the advertisement of Bhima jewellery

Consumer satisfaction in Bhima is in good.

5.3 SUGGESTION

Purchase decisions of customers are influenced by the advertisement, so company

should concentrate on quality of advertisements to attract customers.

Company should make further advertisement techniques to attract the customers in

future.

More advertisement should be introduced and a separate advertisement budget needs

to be created every year.

The company can focus on the advertisements like television and newspapers

advertisements.

Advertising can be used to create brand awareness in general public and to make

business more popular within the circle of potential buyers.

Purchase decision of consumers influenced by the advertisement, so company should

concentrate on advertisement to attract consumer.

The company should modify the advertisement theme and presentation style in order

to make it more attractive.

Today majority of the houses in Kerala have access to television. The company

should focus on giving more advertisements on the various prime time shows on

different channels.

The company should try to include some features that will make the customer

remember the advertisements more often.

The company should make the advertisements look more professional.

5.4 CONCLUSION

In a successful business, advertising play an essential and important role. Though

advertising does not mean selling of products and services but it helps in increasing your

sells. Advertising create awareness in people. When general public be conscious to the

products, services and goods under the brands and pursuit people towards brands and make

them buying better brands.

The present study has been done to find out how the customers perceive the advertisements

of the company. Responds main opinion is that advertisement with the required information

is essential for the brand building. The customers usually see the advertisements on hoardings

by the roadside. Most of the customers view the advertisement at least once in a week.

Considering that the product is not one that is used daily, the frequency of the customer

viewing the advertisement is good. It is to be noted that the majority of the customers do not

remember the advertisement clearly. However, the customers find the advertisement creative,

informative and honest. The customers find that the advertisements also lack professionalism.

The analysis of effectiveness of advertisement was the main objective of the study. From the

survey could understand that most of the consumers of Bhima jewellery are familiar with the

advertisement of Bhima. Respondent’s main opinion is that advertisement with the required

information is essential for the brand awareness. Also found that advertisement of Bhima is

unique compared with the advertisement of similar products. Consumer responds that good

advertisement influences these buying decisions of the products. Based on these findings

certain suggestions were proposed to make an increase in popularity and good advertisement

methods. Even though there were some limitations, complete the study successfully.

Overall, the role of advertisement in creating brand awareness of Bhima jewellery products

can be termed as satisfactory. However, due to increasing competition and demand in this

sector, the company has to constantly update its advertisements to match the present

standards.

5.5 SCOPE FOR FURTHER RESEARCH

Advertisement has become the most important factor that influences a person to buy

or choose a product. All the organizations around the world are paying atmost attention for

creating excellent advertisements so that they can attract as much customers as they want.

The scope of advertisement is really vast. Further research can be done on what makes the

customer attracted to the advertisement and what all factors a customer look at when he

evaluates the advertisements as a good one. The advertisement is focused only upon the

customers and so it should be the customer’s point of view to be studied on when planning

for good advertisement. Advertising a product in a competitive world is very difficult. The

standards of good advertising are being raised day by day. Only those companies whose

advertisements make a good impression in the minds of the customer can hope to sell their

products. All the organizations around the world are paying at most attention for creating

excellent advertisements so that they can attract as much customers as they want. Advertising

can be used to create brand awareness in general public and to make business more popular

within the circle of potential buyers. However, to make a favourable impression, the

companies have to understand the customer psychology to a great extent. The role of the

advertisement in creating brand awareness is studied, here, from the customer’s point of

view. The present study can, therefore, be used as a base for further research in understanding

customer psychology for planning a good advertisement.

BIBLIOGRAPHY

BIBILIOGRAPHY

BOOKS

1. Kothary C .R, “Research methodology” Second Edition by new age International (P) Ltd

2. Kotler Philip, “Marketing Management”.11th edition by Pearson Education (Singapore) Pvt.

Ltd Indian branch, 482 FIE papergirl Delhi India

3. Jain P C $ Manika Bhatt “Consumer Behavior in Indian Context”

JOURNALS

1. The ICFAI Journal of Business Strategy vol. No .1, March 2007

2. Marketing mastermind, March 2007, ICFAI University press.

WEBSITE

http://www.wikipedia.com /advertising effectiveness/htm

http:// www.bhima. profile

http://www.netmba.com/marketing/advertising

http://en.wikipedia.org/wiki/ brand awareness

APPENDIX

http://en.wikipedia.org/wiki/

http://www.netmba.com/marketing/advertising

http://www.bhima./

http://www.wikipedia.com/

QUESTIONNAIRE

“A STUDY ABOUT THE ROLE OF ADVERTISMENT IN BRANDBUILDING”

With special reference to Bhima Jewellery, Thrissur Dt.

Name: SUMITH THOMAS

Reg No. EJAKMBA052

MBA 2010-11

Elijah Institute of Management Studies, Ponganamkad, Thrissur.

_________________________________________________________________________________

Sir/Madam

I request you to fillup the following details which will be used for a research on the above mentioned topic. The information collected from you will be kept confidential and only be used for this study purpose.

Name & Address :

Email :

Gender : M F

Age : Below 25 25-40 40-55

Above 55

Educational background:

Post graduate & above Graduate Professional course,

specify____________ Pre-degree SSLC Others, Specify

_____________________

Occupation : Government employee Private employee Professional Housewife Business man

Income(in Rs) : Less than 50000 50000-

100000

100000 – 3000000 300000- 500000 Greater than 500000

Marital Status : Single Married

1. Do you currently purchase gold from Bhima jewellery?

Yes No

2. What comes to your mind when you think about Bhima jewellery?

Quality Variety of Designs Pricing Strategy Customer Service

Advertisement Traditional Values

3. From where did you know about Bhima jewellery?

Friends Relatives Advertisement Executives Own family

4. Which company will come in your mind when you decide to purchase gold?

Bhima Kalyan Josco Alukas Malabar

Chungathu Chemmanur Others, Specify

____________________

5. How many times have you seen the advertisement of Bhima jewellery?

Once 1-5 5-10 more than 10

6. Which Jewelleries advertisement attracted you more?

Bhima Kalyan Josco Alukas Malabar

Alappat Chungathu Chemmanur

7. Which of the following would you use to describe this advertisement?

Creative Attractive Honest Touching Professional

8. Do you agree that Co’s advertisements are convincing?

Strongly agree Agree Moderately Agree Disagree

Strongly Disagree

9. Mention the most viewed medium for Bhīma’s advertisement.

Flex TV News paper Online Magazine

Cinema Theatre Other printed media, Specify

10. How often do you purchase gold from Bhima based on its advertisements?

Very often Often Rarely

11. Rank the following on the basis of the most influencing factor which promote brand

building.

Advertisement Quality Variety of Designs Customer

service

Traditional value

12. In general how would you rate the quality of this advertisement compared to the

other advertisement of similar products?

Excellent Good Average Poor Very poor

13. Do you agree that brand building/advertising/ promotional activities of Bhima

jewellery are effective?


Strongly disagree

14. Do you think that brand ambassador is required for endorsing the product more

effectively?

Yes No

15. Record your opinion the following features related to Bhima jewellery

Particulars Exactly good Very good Good Poor Very poor

Quality

Price

Customer

Service

Advertisement

Variety of

Designs

Brand image

16. What is your overall opinion about Bhima jewellery products?

Excellent Good Average Poor Very poor

17. Why did you select this branch for purchase?

Convenience Better customer service Any offers

18. Do you agree that brand building/advertising/ promotional activities will give all the

information required for making a particular decision?

Strongly agree Agree Moderately Agree Disagree Strongly

disagree

19. You would recommend Bhīma jewellery to others?


Strongly disagree

20. You intent to repurchase Bhima jewellery?


Strongly disagree

Thank you for your kind corporation

Sumith Project

Documents

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