ADVERTISING EFFECTIVENESS

A Major Project Report Submitted in partial fulfillment of the requirements for BBA (General) programme of Guru Gobind Singh Indraprastha University , Delhi

Submitted by Aanchal Sharma BBA (Gen) Semester-VI Enrol. No.: 08012201709

Delhi College of Advanced Studies B-7,Shanker Garden, Vikaspuri New Delhi-110018

DECLARATION
I hereby declare that the major project report, entitled Advertising Effectiveness, is based on my original study and has not been submitted earlier for award of any degree or diploma to any institute or university. The work of other author(s), wherever used, has been acknowledged at appropriate place(s).

Place: New Delhi Date:

Candidates signature Name: Aanchal Sharma Enroll. No.: 08012201709

Countersigned

Name : Mr. H.C. Joshi Supervisor Delhi College of Advanced Studies

Name : Prof.(Dr.) J.P. Varshney Director Delhi College of Advanced Studies

ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organization. I would like to extend my sincere thanks to all of them.

I would like to express my special gratitude and thanks to Prof.(Dr.) J.P. Varshney, Director of Delhi College of Advanced Studies, for providing an opportunity of doing this project and for kind co-operation and encouragement in completion of this project.

I would like to thank our supervisor for this project, Prof. H.C. Joshi, for the valuable guidance and advice. He inspired me greatly to work on this project. His willingness to motivate me contributed tremendously to my project. Besides, I would like to thank my institution Delhi College of Advanced Studies for providing us with a good environment and facilities to complete this project. Finally an honorable mention goes to my family and friends for their support in completing this project.

EXECUTIVE SUMMARY

As a part of our study curriculum it is necessary to conduct a major project. The research provides an opportunity to demonstrate application of knowledge. It also provides us an opportunity to understand the particular topic in depth. My topic for the major project is ADVERTISING EFFECTIVENESS and the purpose of this project is to know about the consumption of soft drinks.

To start with we will give brief information regarding the Coca-Cola Company then moving to the main topic we will explain what is topic is all about. The object always is to bring to public notice some articles or service, to create a demand to stimulate buying and in general to bring together the man with something to sell and the man who has means or desires to buy.

After this concentration is given to the primary research. It includes the analysis and results of survey which focuses on consumers behavior towards advertising effectiveness. The survey was conducted with the help of structured questionnaire. At last conclusion of report, findings and suggestions was given based on study of secondary source as well as primary research.

TABLE OF CONTENTS

S.No. 1 2 3 4 5 6 7 Declaration Acknowledgement Executive Summary List of Tables List of Figures List of Symbols Chapter-1: Introduction 8

Topic

Page No. -

Profile of the organization/Sector Objectives of study Scope of study Methodology

Chapter-2: Conceptual Framework Introduction Why measure advertising effectiveness Barriers to Great Advertising Designing advertising campaign

Chapter-3: Data Analysis and interpretation

10

Chapter-4: Summary and Conclusion Results of the study Limitations of the project Suggestions &Recommendations -

11 12

Bibliography Appendices

LIST OF TABLES Table No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Title Consumption of cold drink Frequency Cold drinks available in the market Preference of cold drink Preference of flavor Seen the advertisement of the most preferred cold drink Media Types of advertisements Most preferred slogan Reason Effect of advertisement on consumption Best media for advertisement Necessity of advertisement for sale of cold drinks Effectiveness of expenditure incurred on advertisement Necessity of advertisement effectiveness Page No.

15

LIST OF FIGURES

Table No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Title Consumption of cold drink Frequency Cold drinks available in the market Preference of cold drink Preference of flavor Seen the advertisement of the most preferred cold drink Media Types of advertisements Most preferred slogan Reason Effect of advertisement on consumption Best media for advertisement Necessity of advertisement for sale of cold drinks Effectiveness of expenditure incurred on advertisement Necessity of advertisement effectiveness

Page No.

15

LIST OF SYMBOLS
S.no 1 2 3 4 Title % / & Percentage Or And To Nomenclature & Meaning

CHAPTER I INTRODUCTION

Profile of the organization/Sector-

The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day.

The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments.

The Coca-Cola Company is headquartered in Atlanta, Georgia, United States. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and chief executive is Muhtar Kent.

Products and brands:

The Coca-Cola Company offers more than 500 brands in over 200 countries, besides its namesake Coca-Cola beverage.

Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a sugar substitute. Introduced in 1963, the product is still sold today, although its sales have dwindled since the introduction of Diet Coke.

The Coca-Cola Company also produces a number of other soft drinks including Fanta (introduced circa 1941) and Sprite. Fanta's origins date back to World War II when Max Keith, who managed Coca-Cola's operations in Germany during the war, wanted to make money from Nazi Germany but did not want the negative publicity. Keith resorted to producing a different soft drink, Fanta, which proved to be a hit, and when Coke took over again after the war, it adopted the Fanta brand as well. The German Fanta Klare Zitrone ("Clear Lemon Fanta") variety became Sprite, another of the company's bestsellers and its response to 7 Up.

Coca-Cola South Africa also released Valpre Bottled "still" and "sparkling" water.

Coca-Cola is the best-selling soft drink in most countries, and was recognized as the number one global brand in 2010. While the Middle East is one of the only regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% marketshare (to Pepsi's 75%) and had double-digit growth in 2003. Similarly, in Scotland, where the locally produced Irn-Bru was once more popular, 2005 figures show that both Coca-Cola and Diet Coke now outsell Irn-Bru.

In Peru, the native Inca Kola has been more popular than Coca-Cola, which prompted Coca-Cola to enter in negotiations with the soft drink's company and buy 50% of its stakes.

In Japan, the best selling soft drink is not cola, as (canned) tea and coffee are more popular. As such, the Coca-Cola Company's best selling brand there is not Coca-Cola, but Georgia.

Cola-Cola operates a soft drink themed tourist attraction in downtown Atlanta, Ga; the "World of Coca-Cola" is a multi-storied exhibition of the many flavors sold by the company as well as a museum to the history of the company.

Objectives of the study -

Following are the objectives of the study:

1. To know the most effective media of advertisement.

2. To find out the reasons for liking the advertisement of cold drinks.

3. To find out the most popular slogan of advertisement regarding cold drinks.

Scope of the study The scope of advertising effectiveness is very broad in nature. The customers perception regarding advertising effectiveness. The study will help to know the preferences of the customers. The study will help to know whether advertisement effectiveness is necessary for a company or not.

Research Methodology -

Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique which provide precise tools, specific procedure and technical rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances.

Methodology

1.

Research Design: The research design is the blueprint for the fulfillment of objectives and answering questions. It is a master plan specifying the method and procedures for collecting and analyzing needed information.

Descriptive Research is used in this study as the main aim is to describe characteristics of the phenomenon or a situation.

2. Data Collection Methods: The source of data includes primary and secondary data sources.

Primary Sources: Primary data has been collected directly from sample respondents through questionnaire and with the help of interview.

Secondary Sources: Secondary data has been collected from standard textbooks, Newspapers, Magazines & Internet.

3. Research Instrument: Research instrument used for the primary data collection is Questionnaire.

4. Sample Design: Sample design is definite plan determine before any data is actually obtaining for a sample from a given population. The researcher must decide the way of selecting a sample. Samples can be either probability samples or non-probability samples.

Sampling Technique: Convenience

Sample Size: 50 Respondents

Target population: The population for this research study consists of the residence of Delhi & NCR.

CHAPTER II CONCEPTUAL FRAMEWORK

Introduction :

The objectives of all business are to makes profits and a merchandising concern can do that by increasing its sales at remunerative prices. This is possible, if the product is widely polished to be audience the final consumers, channel members and industrial users and through convincing arguments it is persuaded to buy it. Publicity makes a thing or an idea known to people. It is a general term indicating efforts at mass appeal. As personal stimulation of demand for a product service or business unit by planting commercially significant news about it in a published medium or obtaining favorable presentation of it upon video television or stage that is not paid for by the sponsor.

On the other hand, advertising denotes a specific attempt to popularize a specific product or service at a certain cost. It is a method of publicity. It always intentional openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a common form of non- personal communication about an organization and or its products idea service etc. that is transmitted to a target audiences through a mass medium. In common parlance the term publicity and advertising are used synonymously.

What is Advertising :

The word advertising is derived from the Latin word viz, "advertero" "ad" meaning towards and "verto" meeting towards and "verto" meaning. "I turn" literally specific thing".

Simply stated advertising is the art "says green." Advertising is a general term for and all forms of publicity, from the cry of the street boy selling newspapers to the most celebrate attention attracts device.

The object always is to bring to public notice some articles or service, to create a demand to stimulate buying and in general to bring together the man with something to sell and the man who has means or desires to buy".

Advertising has been defined by different experts. Some of the quoted definition are :

American marketing association has defined advertising as "any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. The medium used are print broad cast and direct.

Stanton deserves that "Advertising consists of all the activities involved in presenting to a group a non- personal, oral or visual openly, sponsored message regarding a product, service, or idea. This message called an advertisement is disseminated through one or more media and is paid for by the identified sponsor. Advertising is any paid form of non personal paid of presentation of ideas goods or services by an identified sponsor.

Advertising is a "non- personal paid message of commercial significance about a product, service or company made to a market by an identified sponsor.

In developing an advertising programme, one must always start by identifying the market needs and buyer motives and must make five major decisions commonly referred as 5M (mission, money message, media and measurement) of advertising.

Basic Features of Advertising

On the basis of various definitions it has certain basic features such as :

1.

It is a mass non-personal communication.

2.

It is a matter of record.

3.

It persuades buyers to purchase the goods advertised.

4.

It is a mass paid communication.

5.

The communication media is diverse such as print (newspapers and magazines)

6.

It is also called printed salesmanship because information is spread by means of the written and printed work and pictures so that people may be induced to act upon it.

Functions of Advertising For many firms advertising is the dominant element of the promotional mix particulars for those manufacturers who produce convenience goods such as detergent, non prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by maters of automobiles, home appliances, etc, to introduce new product and new product features its uses its attributes, pt availability etc.

Advertising can also help to convince potential buyers that a firms product or service is superior to competitors product in make in quality, in price etc. it can create brand image and reduce the likelihood of brand switching even when competitors lower their prices or offer some attractive incentives.

Advertising is particularly effective in certain other spheres too such as :

i)

When consumer awareness of products or service is at a minimum.

ii)

When sales are increasing for all terms in an industry.

iii)

When a product is new and incorporates technological advance not strong and.

iv)

When primary buying motive exists.

It performance the following functions :

i)

Promotion of sales

ii)

Introduction of new product awareness.

iii)

Mass production facilitation

iv)

Carry out research

v)

Education of people.

Marketing mix -

The marketing mix has been the key concept to advertising. The marketing mix was suggested by professor E. Jerome McCarthy in the 1960s. The marketing mix consists of four basic elements called the four Ps. Product is the first P representing the actual product. Price represents the process of determining the value of a product. Place represents the variables of getting the product to the consumer like distribution channels, market coverage and movement organization. The last P stands for Promotion which is the process of reaching the target market and convincing them to go out and buy the product.

Types of advertising -

Broadly speaking, advertising may be classified into two categories viz., product and institutional advertising.

a)

Product Advertising : The main purpose of such advertising is to inform and stimulate the market about the advertisers products of services and to sell these. Thus type of advertising usually promote specific, trended products in such a manner as to make the brands seam more desirable. It is used by business government organization and private non-business organizations to promote the uses features, images and benefits of their services and products.

Product advertising is sub-divided into direct action and indirect action advertising, Direct action product advertising wages the buyer to take action at once, ice he seeks a quick response to the advertisement which may be to order the product by mail, or mailing a coupon, or he may promptly purchase in a retail store in response to prince reduction during clearance sale.

Consumer Advertising American marketing association Direct mail campaign Product Advertising

Product advertising is sub-divided into direct & indirect action advertising & product advertising aims at informing persons about what a products is what it does, how it is used and where it can be purchased. On the other hand selective advertising is made to meet the selective demand for a particular brand or type is product.

b)

Institutional Advertising :

It is designed to create a proper attitude towards the sellers to build company image or goodwill rather than to sell specific product or service. Its purpose is to create a frame of mind and to implant feeling favorable to the advertisers company. Its assignment is to make friends for the institution or organization.

It is sub-divided into three categories : patronage, public, relations and public service institutional advertising.

i)

In patronage institutional advertising the manufacturer tells his prospects and customer about himself his policies and lives personnel. The appeals to the patronage motivation of buyers. If successful, he convince buyers that his operation entitles him to the money spent by them.

ii)

Public relations institutional advertising is used to create a favorable image of the firm among employees, stock-holders or the general public.

iii)

Public service institutional advertising wages public support.

c)

Other Types :

The other types are as follows :

i)

Consumer advertising

ii)

Comparative advertising

iii)

Reminder advertising

iv)

Reinforcement advertising

Advertising objectives -

The long term objectives of advertising are broad and general, and concern the contribution advertising should make to the achievement of overall company objectives. Most companies regard advertising as main objective as hat of proving support to personal selling and other forms of promotion. But advertising is a highly versatile communications tools and may therefore by used for achieving various short and long term objectives. Among these objectives are the following :

1.

To do the entire selling job (as in mail order marketing).

2.

To introduce a new product (by building brand awareness among potential buyers).

3.

To force middlemen to handle the product (pull strategy).

4.

To build brand preference 9by making it more difficult for middleman to sell substitutes).

5.

To remind users to buy the product (retentive strategy).

6.

To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product).

7.

To provide rationalization (i.e. Socially acceptable excuses).

8.

To combat or neutralize competitors advertising.

9.

To improve the moral of dealers and/or sales people (by showing that the company is doing its share of promotion).

10.

To acquaint buyers and prospects with the new uses of the product (to extend the PLC).

Benefits -

The functions of advertisement, and that purpose its ethics, may be discussion below :

1.

It leads to cheaper prices. "No advertiser could live in the highly competitive arena of modern business if his methods of selling were more costly than those of his rivals."

2.

It acquaints the public with the features of the goods and advantages which buyers will enjoy.

3.

It increases demand for commodities and this results in increased production. Advertising :

a)

Creates and stimulates demand opens and expands the markets;

b)

Creates goodwill which loads to an increase in sales volume;

c)

Reduces marketing costs, particularly product selling costs.

d)

Satisfied consumer demands by placing in the market what he needs.

4.

It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, and quicker and wider distribution leads to diminishing of the distribution costs.

5.

It ensures the consumers better quality of goods. A good name is the breath of the life to an advertiser.

6.

By paying the way for large scale production and increased industrialization, advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of he unemployment problem.

7.

It raises the standard of living of the general public by impelling it to use to articles of modern types which may add to his material well being. "Modern advertising has made the luxuries of yesterday the necessities of today. It is a positive creative force in business. It makes two blades of grass grow in the business world where one grew before.

8.

It establishes the goodwill of the concern for the test articles produced by it and in course of time they sell like not cakes consumer search for satisfaction of their needs when they purchase goods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, sexual gratification and so on. The manufactures therefore tries to improve this goodwill and reputation by knowing the buyer behavior.

To sum up it may be said that advertising aims at committing the producers, educating the consumer, supplementing the salesman converting the producer and the dealer to eliminate the competitor, but above all it is a link between the produce and the consumer.

Why measure advertising effectiveness -

Measuring advertising effectiveness is not easy. Sometimes, the results of measuring are just better guesses. Still, it is much better this way than not to address this problem at all. There are dramatic differences in the effectiveness of various forms of advertising.

If you pay for advertising, then it is probably important for you see some results. But if you waste money on inefficient advertising, you are missing better opportunities and the results may not come at all.

The basics of measuring effectiveness :

Our main objective in measuring advertising effectiveness is to determine the effect of each advertising campaign from the results of our measuring and compare it with its price. Then we can decide which campaigns bring the best value for the money spent.

It is also important to realise the various factors influencing advertising.

The medium, ad copy (exact wording), the format, audience (is the ad well aimed to the people who use our products?) all of this effects the final success of the campaign. Therefore, it is necessary to judge the effectiveness in context.

Before we start, we need to decide which criteria are we going to monitor. These will differ with respect to the medium used, our possibilities, the purpose of the ad etc.

Examples of possible criteria are:

customers tell how did they learn about us increase in sales of the promoted goods more calls to our toll-free line calls to a campaign-specific phone number specific codes applied by customers to receive offered discount (i.e. Tube) redeemed coupons or vouchers that were given out at a campaign

increased visits on our website other metrics from our website statistics (i.e. orders amount)

It is best to combine several criteria, because a customer can for example either contact you by calling your line or by sending you an email. Also, accept the fact, that we are not going to be able to measure everything. Especially if you run several campaigns in various media simultaneously, it may be difficult to ascribe the measured effects to a specific campaign. This can be helped by careful choice of criteria or by running campaigns separately (though it is not always desirable). Contrary to traditional media, online campaigns are usually very easily traceable and can be measured well.

Small companies will probably not use the methods of big corporations (ad recognition or recall) which are based on questioning samples of people once the campaign has ended. This would be too costly for small advertisers. Instead, you can simply judge the impact by how many people has the medium reached (viewers, readers, listeners) and comparing how much did it cost to reach thousand people (this is called CPM).

Why & when to advertise -

Advertising as a tool to marketing not only reaches those who buy , but also those whose opinions or authority is counted for example a manufacturer of marble tiles and building boards advertises not only to people who intend to build houses but also to architect and engineers. While the manufacturers of pharmaceuticals products advertise to doctors as well as to the general public.

At time it is necessary for a manufacturer or a concern to advertise things which it does not sell but which when sold stimulates the sales of its own product. There are concerns like electric heaters, iron etc. because the use of these increases the demand for their products.

Advertising should be used only when it promises to bring good result more economically and efficiently as compared to other means of selling. There are goods for which much time and efforts are required in creating a demand by sending salesman to prospective buyers than by simply advertising them. In the early days of the cash register in America it was sold by specially trained salesman who called on the prospective users and had the difficult task of convincing them that they could no longer carry on with the old methods, and that they urgently needed a cash register. In our country certain publishers have found it less costly to sell their books by sending salesman from house to house among prospective buyers than to advertise them. In these two examples the cost of creating demand would be too high if attempted by advertising alone under such circumstances advertising is used to make the salesman acceptable to the people they call upon to increase the confidence of the public in the house. Naturals when there are good profits competitors will be attracted and they should be kicked out as and when sufficient capital is available by advertising on a large scale. Immediate result may not justify the increased expenditure but it will no doubt secure future sales.

Barriers to Great Advertising -

Advertising testing could provide a reliable feedback loop and lead to much better advertising, but many obstacles stand in the way. The first great barrier to better advertising is self-delusion. Most of us believe, in our heart-of-hearts, that we know what good advertising is and that there is no need for any kind of independent, objective evaluation. Agencies and clients alike often think that they know how to create and judge good advertising. Besides, once agencies and clients start to fall in love with the new creative, they quickly lose interest in any objective evaluation. No need for advertising testing. Case closed.

Strangely, after 40 years of testing advertising, we cannot tell you if a commercial is any good or not, just by viewing it.

Sure, we have opinions, but they are almost always wrong. In our experience, advertising agencies and their clients are just as inept at judging advertising as we are. It seems that none of us is smart enough to see advertising through the eyes of the target audience, based purely on our own judgment.

A second barrier to better advertising is the belief that sales performance will tell if the advertising is working. Unless the sales response to the advertising is immediate and overwhelming, it is almost impossible to use sales data to judge the effectiveness of the advertising. So many variables are beyond our control, as noted, that its impossible to isolate the effects of media advertising alone. Moreover, some advertising works in a few weeks, while other advertising might take many months to show positive effects, and this

delayed response can confound our efforts to read the sales data. Also, advertising often has short-term effects that sales data might reflect, and long-term (years later) effects that most of us might easily overlook in subsequent sales data. Because of these limitations, sales data tends to be confusing and unreliable as an indicator of advertising effectiveness.

Sophisticated marketing mix modeling is one way to measure these advertising effects on sales, but it often takes millions of dollars and years of effort, and requires the building of pristine databases of sales information along with all of the marketing input variables. Few companies have the budget, the patience, the accurate databases, and the technical knowledge necessary to succeed at marketing mix modeling. Even so, marketing mix modeling does not help us evaluate the contribution of a single commercial but rather the cumulative effects of many different commercials over a long period of time. Also, marketing mix modeling does not tell us why the advertising worked, or failed to work. Was it message, or media weight, or media mix that made the advertising effective? Generally, marketing mix modeling cannot answer these types of questions. So, again, sales data is of limited value when you make critical decisions about your advertising.

A third barrier to better advertising is a pervasive tendency of many (but not all) advertising agencies to delay, undermine, and thwart efforts to objectively test their creative babies. Who wants a report card on the quality of their work? Its very threatening. The results can upset the creative folks. The results can upset clients. The agency can lose control. Agencies can be quite creative in coming up with reasons to avoid copy testing.

Some of our favorites:

Theres no time. We have to be on air in five days, so well just have to skip the testing.

These ads are built on emotion and feelings, and you cant measure such delicate, artful subtleties.

Weve already tested the ads with a focus group during the development process.

These are image ads, and you cant test imagery with standard advertising testing techniques.

We have so much equity in this campaign that it doesnt matter what the testing results are. We cant afford to change.

Were in favor of testing, but lets remove those questions about purchase intent and persuasion from the questionnaire.

We are in a new age, with new media and new messages, and none of the old copy testing measures apply any more.

The fourth barrier to more effective advertising is the big creative ego.

The belief that only the "creatives" in the agency can create advertising and the conviction that creativity is their exclusive domain constitute a major barrier. Great advertising tends to evolve over time, with lots of hard work, fine-tuning, and tinkering based on objective feedback from target consumers. Big creative egos tend to resist such evolutionary improvements. We have seen great campaigns abandoned because agencies would not accept minor tweaks to the advertising. To be fair, big egos are not limited to advertising agencies. Big client egos can also be a barrier to good advertising. Research firm egos are yet another problem. Big egos create barriers because emotion is driving advertising decision making instead of logic, reason, and consumer feedback. Big egos lead to bad advertising. A fifth barrier to better advertising is the widespread belief that ones major competitors know what they are doing. So, just copy the advertising approaches of the competition, and success will surely follow. We recently had a client who was about to copy the advertising strategy of a major competitor, but we were able to persuade the client to test all major competitive commercials as a precaution before blindly copying the competitors advertising approach. This competitor was the industry leader in market share and profitability. Our testing quickly revealed that this industry leader was the industry leader in spite of its bad advertising. The testing also revealed that another competitor, in contrast, had great advertising. Needless to say, the clients desire to copy the industry leader quickly vanished.

The sixth barrier to better advertising is lack of strategy, or having a poor strategy. The client is most often at fault here.

The client has not done his homework, has not thought deeply about his brand and its future, and has not developed and tested strategy alternatives. The client tells the agency to go forth and create great advertising, without providing any strategy guidelines.

The agency is left to guess and speculate about strategy. Great advertising is rarely created in a strategy vacuum. If the client cannot define a sound strategy, the agency cannot create great advertising. Again, the responsibility for strategy falls squarely on the client. A seventh barrier to better advertising is client ineptness. Some clients processes, policies, and people tend to discourage the creation of great advertising.

Arrogance, ambiguity, impatience, ignorance, risk aversion, and inconsistency tend to be the hallmarks of these agency killer clients. Bad clients rarely stimulate or tolerate great advertising.

The eighth and last barrier to better advertising is poor copy testing by research companies. Many advertising testing systems are limited to a few markets (and cannot provide representative samples). Some systems are so expensive that the cost of testing exceeds the value of the results. Research companies have been guilty of relying on one or two simplistic measures of advertising effectiveness, while completely ignoring many other very important variables. For instance, for several years research companies argued publicly over which was more important, persuasion measures or recall measures? The truth is that both are important, but of greater import is the fact that neither of these measures alone, or in combination, measures advertising effectiveness.

To judge the effectiveness of an ad, many different variables must be measured and considered simultaneously.

Creating Better Advertising

Given all of these barriers to better advertising, how can client, agency, and research company work together to create more effective advertising?

1. The client must craft a sound strategy for its brand, based on facts, not wishful thinking and self-delusion. The client must carefully define the role of advertising in the marketing plan and set precise communication objectives for the advertising. What exactly does the client want the advertising to convey, to accomplish? Agencies are too often asked to create advertising in an informational vacuum. Agencies are not miracle workers. Once strategy and positioning alternatives are identified and tested, the strategy should be locked down and rarely changed thereafter.

2. As creative executions are developed against the strategy, each execution should be pretested among members of the target audience (pretesting refers to testing advertising before it is aired, and/or before final production. When the term testing is used in this article, it is a shorthand term for pretesting.) The greater the number of executions pretested, the more likely it is that great advertising will emerge. Testing the creative provides a reliable feedback loop that helps agency and client alike become smarter over time.

3. Once a conceptual family of commercials is identified as the optimal campaign of the future, then the campaign should be locked down. Long-term continuity of advertising message is essential to maximizing effectiveness.

4. Use the same pretesting system consistently. There is no perfect advertising pretesting system. Some are better than others, but any system will help improve your advertising. 5. The secret is to use one system over and over, so that everyone (client, agency, and researchers) learns how to interpret the pretesting results for the category and the specific brand.

6. If budget permits, test the advertising at an early stage in the creative process (i.e., the storyboard or animatic stage) and also test at the finished commercial stage. Early-stage testing allows rough commercials to be tweaked and fine-tuned before you spend the big dollars on final production. Early-stage testing tends to be highly predictive of finished commercial scores, but not always. Testing the finished commercials gives you extra assurance that your advertising is on strategy and working.

7. Build your own action standards over time. As you test every execution, you will begin to learn what works and what doesnt work. Think of the pretesting companys norms as very crude, rough indicators to help you get started with a testing program. But, as quickly as possible, develop your own norms for your

category and your brand (yes, all of the advertising effectiveness measures vary by product category and brand). What you are searching for, long-term, are not norms, but action standards (that is, the knowledge that certain advertising testing scores will translate into actual sales increases).

8. Use a mathematical model to derive an overall score for each execution. It doesnt matter that an ad has great persuasion if it does not register the brand name. It doesnt matter that an ad registers the brand name if no one will notice the commercial itself. It doesnt matter that an ad increases short-term purchase interest if it will damage the brands quality reputation over time. So, all of the key variables must be put together intelligently to come up with a composite or overall measure of advertising effectiveness.

9. Use the pretesting results as a guide, as an indicator, but do not become a slave to the mathematical model. Read all of the open-ended questions carefully. Make sure you really understand the underlying reasons. Base your decisions on this comprehensive assessment of the results, and leave yourself some wiggle room. No model or system can anticipate every marketing situation, or give a 100% perfect solution every time. Informed human judgment remains important.

10. Client and agency need to accept that continuous improvement of the advertising is an important goal. This means that every execution is tested and tweaked based on scientific evidence from the target audience.

We are not talking about changing the strategy or changing the campaign, but making sure that every execution is on strategy and working as hard as possible.

11. The ultimate goal of testing is an advertising success formula that works. That is, the goal of advertising creative development, and the goal of advertising testing, is to identify the elements/ideas essential to advertising effectiveness, and then to make sure that those elements/ideas are consistently communicated by all advertising executions.

Designing advertising campaign :

An advertising is an organized series of advertising messages. It has been defined as "a planned, co-ordinate series of promotional efforts built around a central theme and designed to reach a specified goals." In other words, it is an orderly planned effort consisting of related but self contained and independent advertisements.

The campaign may appear in one more media . it has single theme or keynote idea and a single objective or goal. Thus, "a unified theme of content provides psychological continuity throughout the campaign while visual and oral similarity provide physical continuity. In short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns have sales goal.

The series of advertisements used in the campaign must be integrated with the sales promotional efforts and with the activities of the sales force.

Campaign vary in length some may run only for a few days, other for weeks, yet other for a season or the entire year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences campaign length such as competitors advertising media, policies, seasonal falls curves of the product involved, the size of the advertising funds, campaign objectives and the nature of the advertisers marketing program.

Objectives of campaign -

The advertising campaign, especially those connected with the consumers aims at achieving these objectives :

i)

To announce a new product or improve product.

ii)

To hold consumers patronage against intensified campaign use.

iii)

To inform consumers about a new product use.

iv)

To teach consumers how to use product.

v)

To promote a contest or a premium offer.

vi)

To establish a new trade regional, and

vii)

To help solve a coca regional problem.

The institutional advertising campaign on the other hand, have these objectives.

i)

To create a corporate personality or image.

ii)

To build a company prestige.

iii)

To keep the company name before the public.

iv)

To emphasize company services and facilities.

v)

To enable company salesman to see top executive consistently when making sales

calls, and

vi)

To increase friendliness and goodwill towards the company.

Developing the campaign programmes. The advertising campaigns are prepared by the advertising agencies, which work an behalf of their clients who manufacture product or service enterprises, which have services to sell.

The word campaign is used because advertising agencies approach their task with a sum Blanca of military fanfare in which one frequently hears words like target audience logistics, zero in and tactics and strategy etc.

The account executive co-ordinates the work in a campaign. The creation of an advertising campaign starts with an exploration of consumers habits and psychology in relation to the product. This requires the services of statistical trained in survey techniques and of others trained in social psychology.

Statisticians select samples for survey which are done by trained interviewers who visits individuals, included in the sample and ask question to find out about their taste and habits.

This enquiry often leads to a change in a familiar product. For instance bathing soap may come in several new colors or cigarette in a new packet or talcum powder in another size.

Such interviews are often quite essential to find out the appeal of advertising message for a product that would be most effective with consumers.

David Ogilvy describes a consumers survey to find out the most meaningful benefit in which women are interested when they buy a face cream. The largest preference as given to "Cleans deep into pores" followed in order of importance by prevent dryness, "is a complete beauty treatment, recommended by skin doctors" makes skin look younger' contains estrogenic hormones, pasteurized for purity, prevent skin form aging, smooth our wrinkles Ogilvy concludes, form this voting come one of Helena Rubinstein's most successful face creams. We christened it deep cleanser, thus, building the winning form into name of the product.

After getting the data the account executive puts together the essential elements of his clients brief, interprets the research findings and draws up what he calls the "advertising strategy".

Stages in advertising campaign -

Several steps are required to developed an advertising campaign the number of stages & exact order in which they are carried out may vary according to an organizations resources, the nature of its product and the types of audiences to be reached.

The major stages/steps are :

1.

Identifying and analyzing the advertising.

2.

Defining advertising objects.

3.

Creating the advertising platform.

4.

Determining the advertising appropriation.

5.

Selection media plan.

6.

Creating the advertising message.

7.

Evaluating the effectiveness of advertising.

8.

Organizing of advertising campaign.

1.

Identifying & Analyzing the Advertising target :

Under this step it is to decided as to whom is the firm trying to reach with the message. The advertising target is the group of people towards which advertisements are aimed at four this purpose complete information about the market target i.e. the location and geographical location of the people, the distribution of age, income, sex, educational level, and consumers attitudes regarding purchase and use both of the advertising product and competing products is needed with better knowledge of market target, effective advertising campaign can be developed on the other hand, if the advertising target is not properly identified and analyzed the campaign is does likely to be effective.

2.

Determining the advertising objectives :

The objectives of advertisement must be specifically and clearly defined in measurable terms such as "to communicate specific qualities about a particulars product to gain a certain degree of penetration in a definite audience of a given size during a given period of time", increase sales by a certain percentage or increase the firms market shares."

The goals of advertising may be to :

i)

Create a favorable company image by acquainting the public with the services offered available to the employees and its achievements.

ii)

Create consumers or distributor awareness by encouraging requests providing information about the types of products sold; providing information about the benefits to be gained from use of the company's products or services; and indicating how product (or services) can be used;

iii)

Encourage immediate sales by encouraging potential purchasers through special sales contests, getting recommendation of professional people about company's products etc.

iv)

It secures action by the reader through associating ideas, repetition of the same name in different contexts, immediate action appeal.

3. Creating the Advertising platform :

An advertising platform consists of the basic issues or selling points that an advertiser wishes to include in the advertising campaign. A single advertisement in an advertising campaign may contain one or more issues in the platform.

A motorcycle producers advertising platform should contain issues which are of importance to consumers filling and such issues also be those which the competitive product do not posses.

4.

Determining the Advertising Appropriation:

The advertising appropriation is the total amount of money which marketer allocates. For advertising for a specific time period. Determining the campaign budget involves estimating now much it will cost to achieve the campaigns objectives.

If the campaign objectives are profit relating and stated quantitatively, then the amount of the campaign budget is determined by estimating the proposed campaigns effectiveness in attaining them. If campaigns object is to build a particular type of company image, then there is little basis for predicting either the campaigns effectiveness or determining the budget required.

5.

Selecting the Media :

Media selection is an important since it costs time space and money various factors influence this selection, the most fundamental being the nature of the target market segment, the type of the product and the cost involved. The distinctive characteristics of various media are also important. Therefore management should focus its attention on media compatibility with advertising objectives.

Media 1. i) Press Advertising or Print Newspapers

Form

City, Small town, Sundays, Daily, weekly, Fortnightly, quarterlies, financial and annuals, English,

vernacular or regional languages. ii) Magazines General or special, illustrated or otherwise, English, Hindi,

Regional language. iii) Trade & Technical Journals, Industrial year Circulated all over the country and books, commercial, directories, telephone, Directories, references books & annuals. among the industrialist and

business magnates.

2.

Direct Mail

Circulars, brochures,

catalogues, booklets,

leaflets, folders,

colanders, blotters, diaries & other printed material. 3. Outdoor or Traffic Poster and bills on walls, railways stations platforms outside public buildings trains, buses. 4. Broadcast or radio and T.V. Spot, Sectional or national trade cost 5. Publicity Movie Slides and films non theatrical and documentary films metal plates and signs attaches to trees. 6. House to house Sampling , couponing, free gifts,

novelties, demonst-rations.

7.

Internet

Today, Internet is a big spot for advertising.

So these are the media of the advertising campaign of the selecting of the media.

6.

Creating the Advertising Messages :

This is an important stage of advertising campaign. The contents of the message has to be very carefully drafted in the advertisement. Characteristics of person in the advertising target influence the message content and form. An advertisers must use words, symbols and illustration that are meaningful, familiar and attractive to those persons. The type of media also influence the content and form of the message.

7.

Evaluating the Effectiveness of Advertising :

The effectiveness of advertising is measured for a variety of reasons :

a)

To determine whether a campaign accomplished its advertising objects.

b)

To evaluate the relative effectiveness of several advertisements to ascertain which copy, illustrations or layout is best.

c)

To determine the strengths and weaknesses of various media and media plans.

In other words, measuring advertising effectiveness is needed to determine whether proposed advertisement should be used and if they will be now they might be improved; and whether going campaign should be stopped, continued or changed. In accomplishing these purposes, pretests and post test are conducted. The former tests before exposing target consumers to advertisements and the letter after consumers have been exposed to advertisements and the letter after consumers have been exposed to advertisements.

For an effective advertising programme, the advertising manager requires a basic understanding of the medium that is going to carry it.

CHAPTER III DATA ANALYSIS & INTERPRETATION

Q1. Do you take cold drinks ? Do you take cold drinks Yes No Total No. of respondents 50 50 Percentage 100 100

Table no. 1: Consumption of cold drink

Yes 100%

Figure no. 1: Consumption of cold drink

It reveals that all the respondents are drinking cold drinks.

Q2. How frequently you take cold drink ? How frequently you take cold drink Once a day Twice a day More than twice Not regular drunker Total 15 2 1 32 50 30 4 2 64 100 No. of respondents Percentage

Table no. 2: Frequency

Once a day 30% Not regular drunker 64%

Twice a day 4% More than twice 2%

Figure no. 2: Frequency

It reveals that 30% of the respondents drink it once a day, 4% twice a day, 2% more than twice and 32% drink it no regularly.

Q3. Which are the different cold drinks available in the market ?

Name of cold drinks Coca cola Pepsi Fanta Limca Mirinda Thums-up Maaza All of above Total

No. of respondents 50 50

Percentage 100 100

Table no. 3: cold drinks available in the market

ALL OF THE ABOVE 100%

Figure no. 3: cold drinks available in the market

It reveals that all of the respondents are of the view that all the above mentioned cold drinks are available in the market.

Q4. Which cold drink you like most ?

Which cold drink you like most Coca cola Pepsi Fanta Limca Mirinda

No. of respondents

Percentage

12 12 1 7 1

24 24 2 14 2

Thums-up Canada dry Maaza Total

10 4 3 50

20 8 6 100

Table no. 4: Preference of cold drink

Maaza 6% Canada dry 8%

Coca cola 24%

Thums-up 20%

Pepsi 24%

Limca 14% Mirinda 2%

Fanta 2%

Figure no. 4: Preference of cold drink

It indicate that out of 50 respondents 12 like Coca cola, 12 like Pepsi, 7 like Limca, 1 like Fanta, 1 like Mirinda, 10 like Thums-up, 4 like Canada dry and 3 like Maaza.

Q5. Which flavour of cold drink you like most ?

Flavours Cola Lemon Orange Mango Others Total

No. of respondents 30 7 7 2 4 50

Percentage 60 14 14 4 8 100

Table no. 5: Preference of flavour

Mango 4%

Others 8%

Orange 14%

Lemon 14%

Cola 60%

Figure no. 5: Preference of flavour

It shows that out of 60% of the respondents like the cola flavour of cold drink, 14% like the Lemon flavour and same percentage of respondents like the orange flavor.

Q6. Have you seen the advertisement of cold drink you like most ?

Have you seen the advertisement of cold drink you like most. Yes No Total

No. of respondents

Percentage

48 2 50

96 4 100

Table no. 6: Seen the advertisement of the most preferred cold drink

No 4%

Yes 96%

Figure no. 6: Seen the advertisement of the most preferred cold drink

It indicate that 96% of the respondents are of the view that they have seen the advertisement of the cold drink they like most while 4% shows that they have not seen the advertisement of cold drink they like most.

Q7. Through which media you have seen it?

Media TV Newspaper Magazine Other Total

No. of respondents 46 2 1 1 50

Percentage 92 4 2 2 100

Table no. 7: Media

Newspaper 4%

Magazine 2%

OTHER 2%

TV 92%

Figure no. 7: Media

It reveals that 92% of the respondents are of opinion that they have seen the advertisement on TV while 4% are of the opinion that they have seen the advertisement through newspaper.

Q8. How many types of advertisement of your preferred brand of cold drink are there? No of advertisements 1 2 3 4 Total No. of respondents 11 14 11 14 50 Percentage 22 28 22 28 100

Table no. 8: Types

4 28%

1 22%

3 22%

2 28%

Figure no. 8: Types

It shows that out of the 50 respondents 11 said that there is 1 type of advertisement of their preferred brand of cold drink and others said that there are more than one type of advertisement of their preferred brand of cold drink.

Q9. Which slogan of cold drink you like most ? Slogan Taste the thunder Yara Da tashan Yeh dil mange more Life Begins Here Total No. of respondents 12 14 16 8 50 Percentage 24 28 32 16 100

Table no. 9: Most preferred slogan

LIFE BEGINS HERE 16%

TASTE THE THUNDER 24% YARA DA TASHAN 28%

YEH DIL MANGE MORE 32%

Figure no. 9: Most preferred slogan

It shows that out of 50 respondents 12 like the slogan 'taste the thunder' ,14 like 'Yara da tashan', 16 like 'yeh dil mange more' and 8 like the slogan life begins here.

Q10. Why do you like the advertisement ?

Reasons for liking the advertisement Its theme It has film stars Because of good music Other reasons Total

No. of respondents

Percentage

30 7 7 6 50

60 14 14 12 100

Table no. 10: Reason

Other reasons Good 12% music 14% Film stars 14% It's theme 60%

Figure no. 10: Reason

It shows that majority of the respondents like the advertisement due to its theme while majority of the respondents like the advertisement due to its film stars and good music.

Q11. Do you think that advertisement has forced you to consume product more?

Do you think ads. Effect the consumption of cold drink Yes No Can't say Total

No. of respondents

Percentage

23 17 10 50

46 34 20 100

Table no. 11: Effect of advertisement on consumption

Can't say 20%

Yes 46%

No 34%

Figure no. 11: Effect of advertisement on consumption

It shows that 46% of the respondents are of the view that advertisement forced them to consume product more, 34% of them has view that advertisement dont force them to consume the product while 20% of them cannot say anything about it.

Q12. Which media is the best media for advertisement ?

Best media for advertisemnt TV Newspaper Magazine Others Total

No. of respondents

Percentage

50 50

100 100

Table no. 12: Best media for advertisement

TV 100%

Figure no. 12: Best media for advertisement

It reveals that 100% of the respondents are of the view that presently the TV is most effective media of advertisement.

Q13. Do you think the advertisement is necessary for sale of cold drinks ?

Necessity of advertisement Necessary Very necessary Cant say Total

No. of respondents 14 34 2 50

Percentage 28 68 4 100

Table no. 13: Necessity of advertisement for sale of cold drinks

Can't say 4%

Necessary 28%

Very necessary 68%

Figure no. 13: Necessity of advertisement for sale of cold drinks

It shows that highest number of respondents are of the view that advertisement is very necessary for cold drinks while few respondents are of the view that advertisement is necessary.

Q14. The expenditure incurred on advertisement of cold drinks is such effective that it adds to profit ? Effectiveness of expenditure incurred on advertisement Yes No Cant say Total 43 2 5 50 86 4 10 100 No. of respondents Percentage

Table no. 14: Effectiveness of expenditure incurred on advertisement

Can't say No 10% 4%

Yes 86%

Figure no. 14: Effectiveness of expenditure incurred on advertisement

It shows that 86% of the respondents are of the view that the expenditure incurred on advertisement is effective in adding to the profits while 4% denied the same and 10% did not reply.

Q15. Is advertisement effectiveness necessary for a company ? Necessity of advertisement effectiveness Yes No Cant say Total 48 1 1 50 96 2 2 100 No. of respondents Percentage

Table no. 15: Necessity of advertisement effectiveness

NO 2%

CAN'T SAY 2%

YES 96%

Figure no. 15: Necessity of advertisement effectiveness

It reveals that majority of the respondents said that the advertisement effectiveness is necessary for a company.

CHAPTER IV SUMMARY AND CONCLUSION

Results of the studyAfter going through the project and the collected data, I found that: All the respondents are drinking cold drinks.

Some 30% of the respondents drink it once a day, 4% twice a day, 2% more than twice and 32% drink it no regularly.

All of the respondents are of the view that all the mentioned cold drinks are available in the market.

Some 60% of the respondents like the cola flavour of cold drink, 14% like the Lemon flavour and same percentage of respondents like the orange flavour of cold drink.

About half of the respondents are of the view that advertisement forced them to consume product more and the rest of them has view that advertisement dont force them to consume the product

TV is the most effective media of advertisement.

Most of the respondents said that they like the advertisement of cold drinks because of its theme whereas, the rest said that they like celebrities in advertisement.

Some 32% of the respondents said that yeh dil maange more is the most popular slogan whereas 28% of the respondents said that yara da tashan is the popular slogan.

Majority of respondents are of the view that advertisement is very necessary for cold drink.

Majority of respondents sees the advertisement of the cold drink they like most.

Majority of the respondents like cola flavor of cold drink.

Equal number of respondents like the brand of Coca Cola and Pepsi.

Limitations of the project

The project relied mainly on the primary data.

We have a limited time.

The study is based on limited sample.

It was also difficult to get proper information from the people because they were indulging in some other activities.

All the respondents could not fill their questionnaire on their own due to language problem and also problem of time and lack of positive behavior.

Respondent may give biased answer due to some lack of information about other brands.

Findings of the study are based on the assumption that the respondents have given correct information.

Suggestions &Recommendations I reached some suggestions :

Advertisement should not be too expensive, because the advertisement leads and increase the prize of the product.

Media should be selected according to the choice of customers.

In rural areas media should be according to the choice of the people.

To give more attention in making the advertisement to make it effective for the sale of cold drink.

Price should be decreased so as to attract the consumers to use product more.

To give attention on the weak media of advertisement so that the consumers comes to know about the product.

It should be attractive one so that people are attracted toward the advertisement.

BIBLIOGRAPHY

Websites : http://www.decisionanalyst.com/publ_art/adeffectiveness.dai.

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

http://www.mira-vlach.com/measuring-advertising-effectiveness.

http://www.allprojectsmba.com/advertising%20effectiveness/advertising_effectiv eness.htm.

http://www.slideshare.net/hemanthcrpatna/a- report-on-advertising-effectiveness.

http://www.scribd.com/doc/33158897/ Report-on-advertising-effectiveness.

APPENDICES

Questionnaire
We are students of BBA studying in Delhi College of Advanced Studies Delhi and carrying out a survey for our academic project to Advertising Effectiveness. So please fill this questionnaire. Your identity would not be revealed and information will only be used for academic purpose. Q1. Do you take cold drinks ?

Do you take cold drinks Yes No

Respondents

Q2. How frequently you take cold drink ? How frequently you take cold drink Once a day Twice a day More than twice Not regular drunker Respondents

Q3. Which are the different cold drinks available in the market ?

Name of cold drinks Coca cola Pepsi Fanta Limca Mirinda Thums-up Maaza All of above

Respondents

Q4. Which cold drink you like most ?

Which cold drink you like most Coca cola Pepsi

Respondents

Fanta Limca Mirinda Thums-up Canada dry Maaza

Q5. Which flavour of cold drink you like most ?

Flavours Cola Lemon Orange Mango Others

Respondents

Q6. Have you seen the advertisement of cold drink you like most ?

Have you seen the advertisement of cold drink you like most. Yes No

Respondents

Q7. Through which media you have seen it?

Media TV Newspaper Magazine Other

Respondents

Q8. How many types of advertisement of your preferred brand of cold drink are there?

No of advertisements 1 2 3 4

Respondents

Q9. Which slogan of cold drink you like most ?

Slogan Taste the thunder Yara Da tashan Yeh dil mange more Life Begins Here

Respondents

Q10. Why do you like the advertisement ?

Reasons for liking the advertisement Its theme It has film stars Because of good music Other reasons

Respondents

Q11. Do you think that advertisement has forced you to consume product more?

Do you think ads. Effect the consumption of cold drink Yes No Can't say

Respondents

Q12. Which media is the best media for advertisement ?

Best media for advertisemnt TV Newspaper Magazine Others

Respondents

Q13. Do you think the advertisement is necessary for sale of cold drinks ?

Necessity of advertisement Necessary Very necessary Cant say

Respondents

Q14. The expenditure incurred on advertisement of cold drinks is such effective that it adds to profit ?

Effectiveness of expenditure incurred on advertisement

Respondents

Yes No Cant say

Q15. Is advertisement effectiveness necessary for a company ?

Necessity of advertisement effectiveness Yes No Cant say

Respondents