A STUDY ON INFLUENCE OF ADVERTISEMENTS IN

CONSUMER BRAND PREFERENCE

(With Special Reference to Soft Drinks Market)

Research project report submitted in partial fulfillment of the

requirements for the degree of
INTEGRATED DUAL DEGREE PROGRAMME BBA-MBA
(2015-2020)

BY
Abhinav Tyagi
15/IMB/004
Avish Panwar
15/IMB/016

Under the supervision of

Dr Indu Uprety

SCHOOL OF MANAGEMENT
GAUTAM BUDDHA UNIVERSITY
April 2019

i
 Declaration by Student

I Abhinav Tyagi (15/IMB/004) hereby declare that this project work is the result of my own
research and no part of it has been presented for any other degree in this university or elsewhere.
I am solely responsible for any error or plagiarism or copied material found in this work.

DATE-
PLACE-

STUDENT SIGNATURE-

ii
 Declaration by Student

I Avish Panwar (15/IMB/016) hereby declare that this project work is the result of my own
research and no part of it has been presented for any other degree in this university or elsewhere.
I am solely responsible for any error or plagiarism or copied material found in this work.

DATE-
PLACE-

STUDENT SIGNATURE-

iii
 Certificate from faculty guide

This is to certify that the project titled “A STUDY ON INFLUENCE OF

ADVERTISEMENT IN CONSUMER BRAND PREFERENCE” has been done under my
supervision by “Abhinav Tyagi” (15/IMB/004) and “Avish Panwar” (15/IMB/016) of
integrated MBA VIII Semester. Students would be solely responsible for any plagiarism or
copied material found in this report.

Name and signature

iv
 Acknowledgements

The opportunity we had with Dr Indu Uprety was a great chance for learning and professional
development. Therefore, we consider ourselves as very lucky individuals as we were provided
with an opportunity to be a part of it. we are also grateful for having a chance to meet so many
wonderful people and professionals who led us though this period.

Bearing in mind previous we are using this opportunity to express my deepest gratitude and
special thanks to Dr Indu Uprety who in spite of being extraordinarily busy with her/his duties,
took time out to hear, guide and keep us on the correct path and allowing us to carry out our
project.

It is our radiant sentiment to place on record our best regards, deepest sense of gratitude to,
Group Captain Sunil Dutt Tyagi for his careful and precious guidance which were extremely
valuable for our study both theoretically and practically.

We perceive this opportunity as a big milestone in our career development. We will strive to
use gained skills and knowledge in the best possible way, and we will continue to work on their
improvement, in order to attain desired career objectives. Hope to continue cooperation with
all of you in the future,

Sincerely,

Abhinav Tyagi

Avish Panwar

Place:

Date:

v
 Executive Summary

The project has been undertaken with an objective, to understand the influences of
advertisement, in consumer brand preference, towards soft drinks products. It also identifies
the influence of communication, in the advertisement. The existing positioning of prominent
brands and the perceptions among different segments were also covered under the study. The
brand loyalty and switching were also studied. It also studies the essential for a marketer to
find out the extent to which the advertisement creates positive change in preparing the brand
of the company.

The proliferation of assorted brands of soft drinks in the country has led to cut-throat
competition for increased market share being witnessed among the operators in the soft drink
industry. When competition is keen and the consumers are faced with brand choice in the
market, it becomes imperative for the manufacturers to understand the major factors that can
attract the attention of buyers to his own brand. These then form the basis for marketing
panning and action. This study, which was based on a survey of 138 randomly selected
consumers of soft drinks in Gautam Buddh Nagar, examined the role played by advertising in
influencing consumers preference for Pepsi, Coca-Cola, Fanta, Sprite etc. which are one of the
leading soft drinks in the Food and Beverage industry in India.

Measuring the influence of Advertisement in Consumer Brand Preference is very

essential for every marketer. If advertisement does not create any positive change in
consumers’ brand preference, all the resources such as money, time and efforts spent
on advertisement will go in vain. Most of the marketers use Advertisement as a tool to
attract substantially new customers and to retain the existing customers. This research
studies about the “Influence of Advertisement in Consumer Brand Preference in the
Soft Drink Market”, which is one of the most competitive markets in India
Every Brand in this market use Advertisement as a major weapon to overcome the
fierce Competition.

There are numerous Advertisements of different Soft drink brands exposed in

Television. But the main thing here is, the marketer wants to identify that, do all these
advertisements positively influencing the consumers’ brand preference.

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Even though it has high influence in overall view, the advertiser wants to consider the
indicators, which have low and moderate influence in their future developments of the
Advertisements to maintain its position in the market in the long-run. Eventually, this study
recommends some actions for improving the influence of Advertisement in consumer
brand preference.

vii
 Contents

SR.NO Particulars Pg. No

1 Declaration by Student ii

2 Certificate from faculty iv

guide
3 Acknowledgements v

4 Executive Summary vi

5 Introduction 1

6 Literature Review 7

7 Need and Scope of Study 10

8 Research Gaps 11

9 Objectives 12

10 Research Methodology 13

11 Analysis and Interpretation 14

of Data
12 Conclusion and Findings 25

13 Managerial implication/ 26
Suggestions
14 References 27

15 Certificate of plagiarism 28
check
16 Questionnaire 29

viii
 Introduction

Marketers’ survival depends on consumer satisfaction. Consumer satisfaction depends on their

perception and brand preference of the particular brand. In brand preference, advertising plays
a major role. Nearly everyone in the modern world influence to some degree by advertising.
Organizations in both public and private sectors have learned that the ability to communicate
effectively and efficiently with their target audiences is important to their success. Soft drinks
become essential in lifestyle of the people in the society. There are number of soft drink brands
are available in the market. In those brands, some brands are very famous not only in India but
also globally. For the research purpose researcher has taken Pepsi, Coca-Cola, Fanta and sprite
as the main brands. These are the most popular brands of the consumers in India.

For these brands, different advertisements are available in advertisement media. Some brands’
advertisements are more attractive than others and some are new creative advertisements. Soft
Drink companies are also advertising their product through various media and spending huge
amount on celebrities to endorse their product. In this heavy competition they use various
techniques. Using celebrities is one of among them. Marketers acknowledge the power of
celebrity in influencing consumer’s purchase decision. Huge amounts are spent as the celebrity
endorsement can bestow unique features upon a product that it may have lacked otherwise.
Around 35% of the total cost is spent by the Soft Drink Company especially in Advertising.
Various Movie Actors and Sports Players are hired to endorse the Soft drink Brand.

Some use advertising to announce interesting or helpful information to other people. A

manufacturer of a product, a retailer, or a service provider may use advertising to inform the
general public about the availability of their products and services. But advertising can
accomplish so much more, as in providing information on how to contact the advertiser, where
to find the advertiser, who the advertiser is, and even what the advertiser’s core philosophy
may be.

Businesses use advertising to engage with potential customers by telling them an ongoing story
about the nature and strengths of their companies and organizations. Business advertisers also
build up customer loyalty to their products and services.

1
Brand preference (or attitudes) can be regarded as a consumer's predisposition toward a brand
that varies depending on the salient beliefs that are activated at a given point in time (Mitchell
and Olson 1981). In general, overall brand preference should not change for mature brands,
and the notion of brand interest may be more relevant, this should be especially true of those
established brands that have few salient beliefs associated with them. However, for mature
brands in categories in which one would normally expect rich product-brand knowledge
structures and therefore several salient beliefs, it may be misleading to talk of overall brand
preference.

It is perhaps better to focus on relative brand preference, which may be expected to change
depending on what beliefs are salient or what portions of the product-brand knowledge
structure are being activated. Therefore, for established brands in mature product categories
with numerous product attributes, it is preferable to measure relative rather than overall
preference using a well-accepted multi attribute preference measuring tool (Green and
Srinivasan 1978). In general, the effects of advertising on preferences are complicated and
often indirect. Nedungadi (1990) found that consideration set formation could be influenced
by priming, which can be thought of as repeated advertising. Hawkins and Hoch (1992) found
that consumers beliefs in the truth of brand trivia statements, which might affect brand
preference, could be influenced by repetition.

Taken together, these studies imply that under certain circumstances, advertising repetition
should influence preference, though the mechanisms may be as different as they are complex.
Advertisements tend to be highly informative & present the customer with a number of
important product attributes or features that will lead to favorable attitudes and can be used as
the basis for a rational brand preference. People get information from the advertisement
through the attractiveness it holds, the attention it creates and the awareness it gives. (Arens,
1996) Mohammed Abdul Azeem (1996) in his study referred that brand name, picture, quality,
price, availability, service, design, sound system and number of channels were the factors that
influenced the purchase of television. Majority of respondents were aware of the existence of
multinational companies also.

The study (The effectiveness of TV ads by Thinkbox TV) also revealed that in India television
choice is made most on quality basis, multinational television choice is made merely on brand
name basis. Advertising is also a type of communication. It is actually a very structured form
of applied communication, employing both verbal and non-verbal elements that are composed

2
to fill specific space and time determined by sponsor. Effective communication through
advertisement leads the consumers toward the purchasing of brand. (Belch & Belch, 1998) One
key concern for the advertiser is whether the advertisement or commercial conveys the meaning
intended.

The receiver is viewed as very active, involved participant in the communication process whose
ability and motivation to attend, comprehend and evaluate messages are high. If the consumer
or the audience gets the message and understand it as the advertiser has it in mind, it is a great
success for the advertiser. That understanding leads the person to prefer and purchase the brand.
(Clow & Back, 2002) John and Slater (2003) suggested that the advertisement must do more
than simply communicating information.

The advertising must reinforce what consumers already know and feel about the brand and
strengthen their resolve that they consistently make the right choice by buying it. The
advertisement strengthens their attachment to the brand by depicting pride, satisfaction,
positive experiences, strong user imagery, and strong brand personality.

3
 Soft Drinks Industry in India-An Overview

Soft Drinks

Carbonated drinks are dominated by artificial flavors based on cola, orange and limes with
Pepsi and Coca-Cola dominating the market. The entire part of the drink is based on its artificial
flavors and sweetening agents as no natural juice is used.

Market

The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually (Capital IQ). In India,
Coke and Pepsi have a combined market share of around 95% directly or through franchisees.
Campa Cola has a 1% share, and the rest is divided among local players. Industry watchers say,
fake products also account for a good share of the balance.

There are about 110 soft drink producing units (60% being owned by Indian bottlers) in the
country, employing about 125,000 people. There are two distinct segments of the market, cola
and non-cola drinks.

The cola segment claims a share of 62%, while the non-cola segment includes soda, clear lime,
cloudy lime and drinks with orange and mango flavors.

The present Indian soft drink market can be at best described as a duopoly, with two major
players viz. Coke and Pepsi, both having sufficient monopoly power over the consumer. Here
are some quick facts about the soft drink industry.

1. According to capital IQ cola products account for nearly 61-62% of the total soft drinks
market.

2. The Economic Times says two global majors’ Pepsi and Coke dominate the soft drink
market.

3. NCAER survey says 91% of soft drink in the country is in the lower, lower middle and
upper middle-class people.

4
 4. According to livemint, the market is worth around Rs.5000 cores with growth rate of
around 10-15%.

5. The production as soft drinks have increased from 5670 million bottles in 1998-99 to
9783 million bottles in 2000-2008 according to industry sources.

6. According to Economic Times market growth this year is expected to be 10-15% in

value terms and 20-22% in volume terms.

The present Indian soft drink market can be at best described as a duopoly, with two major
players viz. Coke and Pepsi, both having sufficient monopoly power over the consumer.
However, soft drinks have a fairly high price elasticity of demand, and as such producers must
strike a fine balance between prices and sales volumes. Both companies have decided to page
prices similar to other’s products and try to gain market share through vagarious promotional
activities. However, the market for carbonated drinks is stagnating and not growing as
expected. The total soft drink (carbonated beverages and juices) market is estimated at 284
million per year. The market is highly seasonal in nature with consumption varying from 25
million crates per month during peak season to 15 million during off-season. The market is
predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi
dominate the Indian soft drinks market. Mineral water market in India is 65 million crates. On
an average, the monthly consumption is estimated at 4.9 million crates, which increase to 5.2
million during peak season.

According to “India Carbonated Drinks Market Overview”, Carbonated or aerated drinks

account for more than 40% of the total non-alcoholic beverages market in India. A carbonated
drink which comes out very cheap is one of the products that go with every segment of people
in India. Many brands that are present in the Indian market are Thums Up, Coca Cola, Pepsi,
Sprite, Fanta, Limca, Mirinda etc. The major segment in the carbonated market is also done on
the basis of flavours used i.e. Cola flavoured drinks, lime – lemon flavoured drinks, orange
flavoured drinks and other drinks. Currently, the trend in terms of flavours is defined by lime
– lemon flavoured drinks in India. In terms of end users, urban segment dominates the Indian
carbonated non- alcoholic market with a significant market share. But gradually, rural segment
is expected to take back on the market. Region – wise, majority of the consumers hail from the
West of India followed by the South where people experience the maximum heat. The harmful

5
chemicals and the preservatives added have proven harmful to the people which are responsible
for the declining sales of the carbonated drinks in the Indian market. To face these challenges,
the manufacturers are bringing new flavours and low- sugar diet drinks into the market which
will help grab the declining growth. However, the carbonated drinks market in India is still
expected to showcase a double-digit growth in India in the coming five years.

Source: https://www.niir.org/information/content.phtml

6
 LITERATURE REVIEW
Source
Employing celebrity endorsers enjoys high
popularity for brands
Amos et al
Published on 1st Jan 2008
The chemistry behind branding and advertising
Krishnan
Published on 3rd Feb 2011
Celebrity endorsement of brands
Escalas & Bettman
Published on 1st July 2015
Advertising Exposure, Loyalty, and Brand
Purchase: A Two-Stage Model of Choice
Gerard J. Tellis
First Published 1st May 2014
Findings
Advertising employing celebrity endorsers
enjoys high popularity of brands.
Strong, unique, and favorable brand
associations help companies differentiate their
products from those of competitors and thus
support a competitive advantage
It was observed that consumers associate or
dissociate themselves from brand based on
celebrity endorsement on the basis of their self-
related needs, such as “self-enhancement.”
“Consumers may construct their self-identity
and present themselves to others through their
brand choices based on the congruency
between brand-user associations and self-
image associations”
The effect of advertising is generally nonlinear
and its impact on volume purchased is
mediated by brand loyalty. Advertising seems
to reinforce preference for current brands rather
than stimulate brand switching. However,
features, displays, and especially price have a
stronger impact on response than does
7

The effects of peripheral exposure to
information on brand preference.
Erik L. Olson
st
Published on 1 May 2003
A PLS Model to Study Brand Preference: An
Application to the Mobile Phone Market
• Paulo Alexandre O. Duarte
Published on 16th November 2009
Can Repeating an Advertisement More
Frequently than the Competition Affect Brand
Preference in a Mature Market?
Ram C. Rao
Published on 1st April 2015
advertising. The effect of brand loyalty
dominates that of the other variables.
Small but meaningfully sized group of
subjects fully processed the information on
brands they were exposed to, and rated those
brands significantly higher than other brands
where they had only seen the brand name
alone. This finding was strongest for a
fictional new brand, but also present for a
well‐established brand.
The results reveal that brand identity,
personality and image, together with self-
image congruence have the highest impact on
brand preference. Some other factors linked to
the consumer and the situation also affect
preference, but to a lesser degree.
Would regular users of established brands be
susceptible to the influence of advertisements
that are repeated more than the competition,
even if they have heard the advertisements
before? The authors conducted an experiment
to find out. The results were that people are
affected by watching the same advertisement
repeatedly.
8
The Long-Term Impact of Promotion and
Advertising on Consumer Brand Choice
Sunil Gupta
Published on 1st Feb 2011
Impact of T.V Advertisements on Buying
Pattern of Adolescent Girls
Neelima Gupta &Arjee Devi
Published on 9th Oct 2017
The Effects of Music in Advertising on Choice
Behavior
Gerald J. Gorn
Published on 22nd May 2011
The authors draw implications for
manufacturers’ pricing, advertising, and
promotion policies. The authors use a two-
stage approach, which permits them to assess
the medium-term (quarterly) effects of
advertising and promotion as well as their long-
term (i.e., over an infinite horizon) effects.
Their results are consistent with the hypotheses
that consumers become more price and
promotion sensitive over time because of
reduced advertising and increased promotions.
The results revealed that advertisements played
a vital role in introducing a new product in the
family list & making better choice during
shopping. Majority of the respondents after
watching an advertisement wanted to buy the
new brand introduced in the market, they were
disappointed when they were not allowed to
buy products of their choice and were of the
opinion that T.V. advertisements helped them
to make better choice during shopping. The
girls utilized their pocket money received every
month for shopping
The results of an experiment using a classical
conditioning approach suggest that hearing
liked or disliked music while being exposed to
a product can directly affect product
preferences. A second experiment
differentiated communication situations where
a classical conditioning approach or an
information processing approach might be
appropriate in explaining product preference.
9
 Need and Scope of the Study

As we know these days soft drink companies are advertising their product so much on
televisions and are spending so much money on the Advertisements of their products. In soft
drink industry the cost of advertising is nearly 40 % of the total cost. (Dr.A. Vinayaga Moorthy,
International Journal of Business and Administration Research Review, Vol.3, Issue.4, Jan-
March, 2017) For increasing the sale of their product, they are taking film stars, cricket stars in
their advertisements of their products which are again very costly. The soft drink companies
are spending so much on the sponsorship of events like cricket match etc. so this study deals
with these aspects that whether Advertising is having any effect on consumers or not.

Review of literature suggests that a number of studies have been carried out to study the
consumers preference of soft drink brands. There have been various attempts to find out that
how customers or potential customers decision making is affected by advertisements. With a
change in consumers’ attitudes and perceptions regarding the health enhancing role of these
products and the consequent changes in the purchase behavior of the consumers, there arise a
need to study and analyze the effect of advertisements on a consumer’s decision of which brand
to purchase.

There is also a need for a better understanding of the motivational factors which have brought
about a paradigm shift in the purchase decisions of the consumers leading to new market trends
throughout the world, particularly in developing countries including India.

The Scopes of most of the existing studies are very broad and are spread to multiple categories
of drinks. Moreover, there are very few studies on consumers preferences and effects of
advertisement on decision making on soft drink industry in India. As the Indian soft drink
market is experiencing a significant growth, a comprehensive study on understanding the
market potential and consumer behavior for soft drinks becomes important.

10
 Research gaps identified

Review of literature suggests that there are a number of research gaps which are listed below

1. There is a need for a better understanding of the motivational factors which affect a
consumer’s decision making.
2. Most of the existing studies have studied a very broad and multiple categories of drinks
and there is a need for a study of specific brands of soft drinks.
3. As the Indian soft drink market is experiencing a significant growth, there is a need for
a comprehensive study on understanding the consumer behavior for soft drinks.

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 Objectives

Based on the research gap identified from the existing literature, this research focuses on
analyzing the influence that advertisements have on consumer buying behavior towards soft
drink products in India. Followings are the specific objectives of the study:

1. To study the influence of the advertisements on the brand preference of consumers, with
special reference to soft drink market.

Under this objective, the study aims at assessing if the consumer is influenced by an
advertisement or not, if yes then what is the most influential thing about that
advertisement? Weather it is celebrity presence or is it the logo, tagline, slogan, message
or something else which influences them to purchase a particular brand of soft drink.

2. To study the consumer perception regarding the most effective media (Print, Electronic,
Internet) for Advertisements with special reference to soft drink market.

Under this objective, the study aims at assessing the most effective media for soft drink
advertisements, as brands these days try to cover all the medias of advertisements i.e. print,
electronic, internet etc. so it becomes important to study which media is more effective and
which media gains more attention.

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 Research Methodology

Research Design

A research design is a framework or blueprint for conducting the marketing research project.
It specifies the details of the procedures necessary for obtaining the information needed to
structure and/or solve marketing research problem. The research design used in this project is
Descriptive research design.

Sample Design

1. Sampling Technique Used in this research is Convenience Sampling.

2. Sample size: For this study, a sample of 138 has been taken.

3. Data collection instrument. Questionnaire

Source of Data Collection

Primary data:

It is the first-hand information collected through questionnaire. The questionnaire was

administered to people living in the region of Gautam Buddh Nagar. The primary data collected
through the field surveys were analyzed with the help of computer software. Suitable
mathematical and statistical techniques have been employed for data analysis.

13
 Analysis and Interpretation of Data

The analysis and interpretation of data was mainly done based on the objectives of the study.
This study analyses the age wise distribution, gender, soft drink preferences and effects of
advertisements on consumers.

Brand Choice

A marketer should understand brand preference of the consumers because there are number of
soft drink brands available in market. It is useful to modify the product according to taste and
preference of the consumers

Chart 1 Brand Choice

Source: Direct Survey

14
Chart 1 exhibits that majority 48.2% of the respondents have a brand choice of Coca-Cola and
33.6% of the respondents have a brand choice of Sprite, and 22.6% of the respondents have a
brand choice of Pepsi, and remaining 12.4% of the respondent’s brands choice is Fanta and
17.1% of respondents prefer other brands.

From the data the researcher derived majority 48.2% of the respondent’s brand choice of soft
drinks product is Coca-Cola.

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 Reasons for Consuming Soft Drinks

People consume soft drinks for many reasons some do it for fun and some consume it for its
taste and some people are influenced by advertisements to consume a soft drink. The chart
below lists down the reasons for consumption of soft drinks.

Chart 2 Reasons for Consuming Soft Drinks

Chart Title
80 120.00%

70
100.00%
60
80.00%
50

40 60.00%

30
40.00%
20
20.00%
10

0 0.00%
Parties and With fast food and Feeling of thirst Without any reason Other
celebrations dinner
2 3 1 4 5

Frequency Percentage

Source: Direct Survey

The above chart makes it clear that majority 51.8% of the respondent’s reason for consuming
soft drinks is parties and celebration. There are 1.4% of respondents who do not consume soft
drinks.

16
 Motivating Factors to Buy Soft Drinks

People are attracted towards a brand of soft drink due to many reasons such as its price, taste,
quality, brand image and many more. The chart below explains the responses from the study.

Chart 3 Motivating Factors to Buy Soft Drinks

Source: Direct Survey

From the above table we can see that 18.2% of people look at the price of the soft drink before
buying. 40.9% of people look at the quality of the soft drink the quality may include the quality
of the bottle. The majority of people consider taste as the influencing factor of buying a soft
drink these people are around 65%. 13.1% of people are concerned with the brand image of the
soft drink. 42.3% of people consider good flavor as the influencing factor. In the end only 2.9%
of people buy a soft dink by looking at its advertisement.

17
 Sources of information about Soft Drinks

The table below shows how people get information about a particular brand of soft drink, the
information can be received through TV, Newspaper, Friends etc.

Chart 4 Sources of information about Soft Drinks

Source: Direct Survey

From the above chart we can see that 83.8% of people are informed about soft drinks from
advertisements. 33.8% of people are informed by their friends and family and only 8.1% of
people are informed by the salesman in a departmental store.

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 Most Attractive Factor in Advertisement

The chart below indicates the most attractive factor in advertisements it can be a picture,
symbol, logo, celebrity, etc.

Chart 5 Most Attractive Factor in Advertisement

Source: Direct Survey

From the above chart we can see that there is a mix response 30.6% of people are attracted by
the picture shown in the advertisement that picture can be simply be of a bottle or the soft drink
itself. 23.1% of people are attracted by the symbol in the advertisement that symbol can be the
logo of the company or any special symbol used to depict something. 31.3% of people are
attracted by the message the advertisement is trying to convey. Similarly, 35.8% of people are
attracted by the slogan in the advertisement and lastly 24.6% of people are attracted by the
celebrity presence.

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 Newspaper Advertisement

There is no doubt that the newspapers are the best and popular medium for advertising. It
reaches every nook of the country. It is the most powerful selling force. In India, there are many
languages. Newspapers are being published in 91 languages. Different types of newspapers are
existing. They are National Dailies, Regional Dailies, Evening Dailies, and National Weeklies
etc.

FIGURE 3- NEWSPAPER ADVERTISEMENTS

ALWAYS

NEVER

OCCASIONALLY

Source: Direct Survey

According to the above chart the researcher wants to highlight that only 1.4% of people always
notice newspaper advertisements. 25.2% of people never notice them and the majority 73.4%
notice the advertisements occasionally.

20
 Television Advertisement

Television advertisement is the latest media of mass communication and is widely used for
advertisement. Advertisement through T.V is one of the good sources to reach people. People
give importance to the visual media than the reading magazines or listening to the radio.
Therefore, a marketer should understand the tactics to mobilize the product among the
consumers.

FIGURE 4- TELEVISION ADVERTISEMENT

NEVER

ALWAYS

OCCASIONALLY

Source: Direct Survey

From the above chart we can say that only 10.9% of people never notice a TV advertisement
of a soft drink while 65.9% of people notice TV advertisement occasionally and 23.2% of
people always notice such advertisements.

21
 Internet Advertisement

Contemporary world caught up in the world of web. Internet shrinks the world into global
village. The people of techno generation are much benefitted by the web advertisement.

FIGURE 5- INTERNET ADVERTISEMENTS

ALWAYS

NEVER

OCCASIONALLY

Source: Direct Survey

From the above chart we can see that 39.1% of people are never influenced by these
advertisements. Similarly, 56.5% of people are influenced by it occasionally and 4.3% of
people always influenced it.

22
 ANOVA Test for most effective media of advertisement

For ANOVA the researcher has taken the following hypothesis:

Ho: All the three media of advertisements are equally influencing the customers brand choice.
H1: All the three media of advertisements do not have the same influence on the customer
brand choice.
Table 1 effectiveness of media of advertisement

Always Occasionally Never

Newspaper 2 101 35

Television 32 91 15

Internet 6 78 54

Source: Direct Survey

Table 2 – different media of advertisement

Count Sum Average Variance

Newspaper 3 138 46 2541
Television 3 138 46 1591
Internet 3 138 46 1344

Table 3 degree of effectiveness of each media

Count Sum Average Variance
Always 3 40 13.333 265.333
Occasionally 3 270 90 133
Never 3 104 34.666 380.333

23
 Table 4 - ANOVA
Source of ss df MS F p-value F crit
Variation
Rows 0 2 0 0 1 6.944
Columns 9394.666 2 4697.333 12.065 0.0202 6.944
Error 1557.333 4 389.333
Total 10952 8

From the above table on comparing the “F” and “F critical” values of “columns” (which
represent the different medias of advertisement) we can see that there is a difference between
them, which means that all the three media of advertisement have a variation in their
effectiveness.

Then comparing p-value of columns (which represent the different medias of advertisement)
we can see that it is less than the value of α (0.05), so in this case we will reject the null
hypothesis and can conclude that the three media of advertisement does not have the same
influence on the customers brand choice.

24
 CONCLUSION AND FINDINGS

Quite a number of important conclusions can be drawn from the findings of this study which
have policy implications for the companies in the industry. Brand preference does exist in the
soft drink industry. Many consumers do not buy whatever is available or affordable if a product
is good value for its price, it will command brand loyalty. However, advertising helps in
projecting product quality and value before the consumers. Advertising has a major influence
on consumers’ preference for soft drinks and it has, in no small measure, contributed to success.
The same thing goes for its quality.

Most of the products having been known for more than between 10 and 20 years by majority
of the respondents the brands have definitely enjoyed a prolonged life cycle apparently being
regenerated by advertising. The stage a product is in its life cycle is very important to a marketer
as it help in determining the type of marketing strategies to be embarked upon in respect of the
said product.

With regards to the advertising media, this study revealed that Television is currently the
most potent of all media used in advertising a product. In view of this, more consideration
should be given to television and internet as a medium of advertising. This may be because
Television and internet combines motion, sound, and special visual effects. The product can be
demonstrated and described on T.V. it also offers wide geographic coverage and flexibility as
to when the message can be presented.

However, this is not saying that other media should not be used. In fact, the company should
continue to employ integrated advertising of their product. More budget could be devoted to
TV adverts in view of the consumers’ preference on it. Moreover, advertising campaign should
be selective or age-oriented, as it has been shown from the study that advertising does have a
varying impact on age group.

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 Managerial implication/ Suggestions

From this study, Soft drinks are apparently a mature product and the company’s management
must ensure that it does not slip to decline stage as this may mark the beginning of its demise.
Towards this end, the management is advised to carry out the following:

• Research continuously into quality improvement that will make consumers enjoy good
value for money paid to purchase the brand.

• Develop more effective advertising campaign that attracts consumer’s attention and
capture their interest. At this stage the company’s advertising messages should both be
persuasive and reminder-oriented. The messages must be strong and appealing enough
to persuade and build brand preferences, encourage switching to the company’s brand
by changing the perception of the consumers of rival brands the product. Comparative
advertising, a variant of persuasive advertising, could be useful in this regard as it seeks
to establish the superiority of one brand through specific comparison with one or more
other brands in their product class.

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 References

• Amos et al., 2008- Employing celebrity endorsers enjoys high popularity for brands.
Vol 1
• Bettman & Escalas, 2015 Celebrity endorsement of brands
• Krishnan, 2011 The chemistry behind branding and advertising
• Gerard J. Tellis, May 1, 2014 Advertising Exposure, Loyalty, and Brand Purchase: A
Two-Stage Model of Choice
• Erik L. Olson (Norwegian School of Management, Sandvika, Norway) May 1,
2003, The effects of peripheral exposure to information on brand preference
• Paulo Alexandre O. Duarte 16 November 2009 A PLS Model to Study Brand
Preference: An Application to the Mobile Phone Market
• Ram C. Rao April 1 2015 Can Repeating an Advertisement More Frequently than the
Competition Affect Brand Preference in a Mature Market
• Sunil Gupta Feb 1 2011 The Long-Term Impact of Promotion and Advertising on
Consumer Brand Choice
• https://scholar.google.co.in/scholar?start=10&q=effect+of+advertisement+on+consu
mer+brand+preference&hl=en&as_sdt=0,5&as_vis=1
• https://s3.amazonaws.com/academia.edu.documents/34707438/17_Ya_Ting_Yang.pd
f?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1555910683&Signa
ture=JxY6MsQLNpaHSlXuilt%2F8OK3IyQ%3D&response-content-
disposition=inline%3B%20filename%3D17_Ya_Ting_Yang.pdf
• https://www.emeraldinsight.com/doi/abs/10.1108/10610429910266986
• https://onlinelibrary.wiley.com/doi/abs/10.1002/mar.20127

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Certificate of plagiarism check

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