PROJECT REPORT (Submitted for the Degree of B. Com Honours in Accounting & Finance under the University of Calcutta)

Title of the Project: Advertising Media and its Impact.

Supervised by:

Name of the Supervisor: Prof. Subir Chakraborty

Name of the College: The Bhawanipur Education Society College

Submitted by: Name of the Candidate: ARNAB SARKAR

Registration No. : 017-1121-1686-12

Name of the College: THE BHAWANIPUR EDUCATION

SOCIETY COLLEGE

College Roll No. : 0103122625

Month and Year of Submission:

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 the targeted audiences through a mass medium. In common parlance the term publicity and advertising are used synonymously.

What is Advertising:

Advertising is a form of marketing communication used to persuade an audience to take or continue some action, usually with respect to a commercial offering, or political or ideological support. In Latin, “ad vertere” means "to turn toward". If advertisements merely sold products, it would cause less critical concern than it does, but it sells images, dreams and ideal ways of life. It sells, and then reinforces time and again, values - those of consumerism and class consciousness; and it trades in stereotypes. 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".

The marketing mix it was proposed by professor E. Jerome McCarthy in the 1960s. It consists of four basic elements called the "four P's". 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 such as 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 buy the product.

Brief review of Literature:

Advertising has been defined by different experts. Some of the quoted definitions 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.

William J. Stanton, defined 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 the art of convincing people to spend money they don't have for something they don't need.” - Will Rogers.

“Creative without strategy is called 'art.' Creative with strategy is called 'advertising.”- Jef I. Richards.

“Advertising works most effectively when it's in line with what people are already trying to do. And people are trying to communicate in a certain way on Facebook - they share information with their friends, they learn about what their friends are doing - so there's really a whole new opportunity for a new type of advertising model within that.”- Mark Zuckerberg.

“Many a small thing has been made large by the right kind of advertising.”- Mark Twain.

“Advertising is legalized lying.”- H. G. Wells.

“Advertising as the action of calling something to the attention of the public especially by paid announcement" - Hart and O’Connor.

 “A form of communication through the media about products, services, ideas, personalities or organizations paid for by an identified sponsor.”- Aliede Okunna.

“Good advertising does not just circulate information. It penetrates the public mind with desires and belief.”- Leo Burnett.

“Advertising is the means of mass selling that has grown up parallel with and has been made necessary to mass production”.- Gardner.

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.

Features of Advertising:

1. Communication: Advertising is means of mass communication reaching the masses. It is a non-personal communication because it is addressed to masses.

2. Information: Advertising informs the buyers about the benefits they would get when they purchase a particular product. However, the information given should be complete and true.

3. Persuasion: The advertiser expects to create a favorable attitude which will lead to favorable actions. Any advertising process attempts at converting the prospects into customers. It is thus an indirect salesmanship and essentially a persuasion technique.

4. Profit Maximization: True advertising does not attempt at maximizing profits by increasing the cost but by promoting the sales. This way It won’t lead to increase the price of the product. Thus, it has a higher sales approach rather than the higher-cost approach.

5. Non-Personal Presentation: Salesmanship is personal selling whereas advertising is non-personal in character. Advertising is not meant for anyone individual but for all. There is absence of personal appeal in advertising.

6. Identified Sponsor: A sponsor may be an individual or a firm who pays for the advertisement. The name of reputed company may increase sale or products. The product gets good market because of its identity with the reputed corporate body.

7. Consumer Choice: Advertising facilitates consumer choice. It enables consumers to purchase goods as per their budget requirement and choice. Right choice makes consumer happy and satisfied.

8. Art, Science and Profession: Advertising is an art because it represents a field of creativity. Advertising is a science because it has a body of organized knowledge. Advertising is profession is now treated as a profession with its professional bodies and code of conduct for members.

9. Element of Marking Mix: Advertising is an important element of promotion mix. Advertising has proved to be of great utility to sell goods and services. Large manufactures spend crores of rupees on advertising.

10. Element of Creativity: A good advertising campaign involves lot of creativity and imagination. When the message of the advertiser matches the expectations of consumers, such creativity makes way for successful campaign.

Objectives of Advertising:

The fundamental purpose of advertising is to sell something - a product, a service or an idea. In addition to this general objective, advertising is also used by the modern business enterprises for certain specific objectives which are listed below:

To introduce a new product by creating interest for it among the prospective customers.

To support personal selling programme. Advertising maybe used to open customers' doors for salesman.

To reach people inaccessible to salesman. To enter a new market or attract a new group of customers. To light competition in the market and to increase the sales as seen in the

fierce competition between Coke and Pepsi. To enhance the goodwill of the enterprise by promising better quality products

and services. To improve dealer relations. Advertising supports the dealers in selling he

product. Dealers are attracted towards a product which is advertised effectively.

To warn the public against imitation of an enterprise's products.

Need of Advertising:

Advertising has become an essential marketing activity in the modern era of large scale production and serve competition in the market. It performs the following functions:

Promotion of Sales : It promotes the sale of goods and services by informing and persuading the people to buy them. A good advertising campaign helps in winning new customers both in the national as wet as in the international markets.

Introduction of New Product : It helps the introduction of new products in the market. A business enterprise can introduce itself and its product to the public through advertising. A new enterprise can't make an impact on the prospective customers without the help of advertising. Advertising enables quick publicity in the market.

Creation of Good Public Image : It builds up the reputation of the advertiser. Advertising enables a business firm to communicate its achievements in an effort to satisfy the customers' needs. This increases the goodwill and reputation of the firm which is necessary to fight against competition in the market.

Mass Production : Advertising facilitates large-scale production. Advertising encourages production of goods in large-scale because the business firm knows that it will be able to sell on large-scale with the help of advertising. Mass production reduces the cost of production per unit by the economical use of various factors of production.

Research : Advertising stimulates research and development activities. Advertising has become a competitive marketing activity. Every firm tries to differentiate its product from the substitutes available in the market through advertising. This compels every business firm to do more and more research to find new products and their new uses. If a firm does not engage in research and development activities, it will be out of the market in the near future.

Education of People : Advertising educate the people about new products and their uses. Advertising message about the utility of a product enables the people to widen their knowledge. It is advertising which has helped people in adopting new ways of life and giving-up old habits. It has contributed a lot towards the betterment of the standard of living of the society.

Support to Press : Advertising provides an important source of revenue to the publishers and magazines. It enables to increase the circulation of their publication by selling them at lower rates. People are also benefited because they get publications at cheaper rates. Advertising is also a source of revenue for TV network. For instance, Doordarshan and ZeeTV insert ads before, in between and after various programmes and earn millions of rupees through ads. Such income could be used for increasing the quality of programmes and extending coverage.

Cheaper goods: 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."

Expands the market: Creates and stimulates demand opens and expands the markets.

Raises standard of living: 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.

Research Methodology

Research is voyage from known to unknown. 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.

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.

Data collecting technique: Convenience

Sample Size: 50 Respondents.

Area of Study: Metropolitan and Beliaghata, Kolkata.

MARKET PROFILEMARKET PROFILE:

McDonald’s :

Competitors of McDonald’s :-

1. KFC

2. Pizza Hut 3. Dominoes 4. Subway 5. Burger King

Different types of products offered by the brand:

McAloo Tikki Burger 1 serving 367 kcal

French Fries (Large) 1 serving (220g) 685 kcal

McSpicy Chicken Burger 1 serving 580 kcal

McVeggie 1 serving 360 kcal

McChicken 1 serving 416 kcal

BigSpicy Chicken Wrap 1 wrap (282g) 677 kcal

Chicken McGrill 1 serving (213g) 410 kcal

Veg Pizza McPuff 1 serving 245 kcal

Secondary Data: There is more consumption of Chicken Bucket ( 8 pieces) and has 70% market share in Salt Lake city and KFC is having maximum consumption and after that McDonald’s and after it Dominoes in the market and all the products has good sale but less than these.

Sale of Coca Cola cold drinks:

KFCKFC:

Competitors of KFC :-

1. McDonalds

2. Pizza Hut

3. Dominoes

4. Subway

5. Burger King

Different types of products offered by the brand:

Hot and Crispy Chicken ( bucket) Fiery Grilled Chicken (Bucket) Chicken Zinger Burger Paneer Zinger Meal Krushers (beverages)

Sizes of the products available in the market:

8 pcs bucket. 6 pcs bucket.

4 pcs bucket 300 ml( beverages)

Secondary Data: The consumption of hot and crispy chicken , after the sale of Chicken Zinger burger is there and after it Krushers is there and the market share is more of KFC in comparison of McDonald’s.

Sale of KFC in comparison to Mc Donalds in India :

SWOT ANALYSIS: (National and International Scenario) SWOT ANALYSIS: (National and International Scenario)

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a person or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Some authors credit SWOT to Albert Humphrey, who led a convention at the Stanford Research Institute.

Strengths: characteristics of the business or project that give it an advantage over others.

Weaknesses: characteristics that place the business or project at a disadvantage relative to others.

Opportunities: elements that the project could exploit to its advantage. Threats: elements in the environment that could cause trouble for the business

or project.

SWOT Analysis of KFC -SWOT Analysis of KFC -

Strength:Strength:

1. Product diversity- PepsiCo has several hundreds of brands, which include: carbonated and noncarbonated drinks, water, savory and whole grain-based snacks. Product diversification strengthens PepsiCo because it doesn’t have to rely on few key products or seasonal sales and isn’t significantly affected by changes in customer tastes.

2. Extensive distribution channel-  PepsiCo products are served to more than

10 million stores per week in more than 200 countries.

3. CSR-  The firm recognizes its role in a society and engages in education,

recycling, water usage reduction, obesity fighting and other projects through

PepsiCo Foundation, thus increasing its brand awareness and customer loyalty.

4. Competency in mergers and acquisitions- The key to PepsiCo business

growth is its successful mergers and acquisitions of beverage, bottling and

snacks companies. PepsiCo acquired such brands as Gatorade, Tropicana,

Doritos, Quaker Oats and many others.

5. 22 brands earning more than $1 billion a year- The company doesn’t have

to rely on one or two of its product to bring most of the revenues. Instead,

Pepsi has 22 brands that contribute significantly to its income, serving

different industries and satisfying various consumer tastes.

6. Successful marketing and advertising campaigns- More than $2 billion

spent on advertising over 2012 resulted in PepsiCo’s growing market share

over its main competitors, including Coca Cola Company, which spent even

more on advertising.

7. Complementary product sales- In its annual financial report, PepsiCo

revealed one of its studies' results that about 30% of customers who buy its

snacks also buy its beverages. PepsiCo’s decision to diversify its product range

is firm’s competitive advantage too.

8. Proactive and progressive- According to New York Times food industry

writer Melanie Warner, PepsiCo, by many critics, is considered to be most

proactive and progressive food company.

Weaknesses:1. Over-dependence on Wal-Mart- More than 13% of PepsiCo business

revenues come from Wal-Mart store chain. Wal-Mart has a significant buyer power and can easily dictate prices over PepsiCo leaving it with very small margins. In addition, if PepsiCo would lose Wal-Mart it would lose 13% of its revenue and competitive advantage.

2. Low pricing- PepsiCo usually prices its products lower than its competitors.

Low price is associated with low quality and PepsiCo products are usually

perceived as ones.

3. Questionable practices- PepsiCo is using and selling tap water but places

view of mountains on its water bottle labels, thus deceiving people that it is

mountain spring water when it is not. PepsiCo has also been criticized for

using water in India with higher than allowed amount of pesticides in it.

4. Weak brand awareness- The Coca Cola Company has the largest share

market of beverages in the world and much stronger brand awareness than

Pepsi, placing it at competitive disadvantage.

5. Too low net profit margin- PepsiCo’s net profit margin is 9.7% compared to

Coca Cola’s 18.55% and Nestlé’s 11%.

Opportunities:

1. Growing beverages and snacks consumption in emerging markets- PepsiCo has made large investments in BRIC countries to expand its market share as these countries represent the fastest growing food and beverages markets in the world. If PepsiCo is successful it will increase its revenues and global market share significantly. In addition, it will be able to rely less on US market.

2. Increasing demand for healthy food and beverages- Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. PepsiCo has an opportunity to further expand its product range with beverages and snacks that have low amount of sugar and calories.

3. Further expansion through acquisitions- So far, PepsiCo has been successful in acquiring other companies and adding new growing brands to its portfolio.

4. Bottled water consumption growth- Consumption of bottled water is expected to grow both in US (PepsiCo’s largest bottled water market) and the rest of the world.

5. Savory snacks consumption growth- The same opportunity PepsiCo has in growing its revenue selling snacks as this market is also expected to grow.

Threats:

1. Changes in consumer tastes- Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat.

2. Water scarcity- Water is becoming scarcer around the world and increases in both cost and criticism for PepsiCo over the large amounts of water used for production.

3. Decreasing gross profit margin- PepsiCo’s gross profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs.

4. Legal requirements to disclose negative information on product labels- Some researches show that particular ingredients, consumed in extra large quantities, in some of PepsiCo products could cause cancer. For this reason, many governments consider to pass legislation that requires disclosing such information on product labels. Products containing such information may be perceived negatively and lose its customers.

5. Strong dollar- More than 50% of PepsiCo’s income is from outside US. Due to strong dollar performance against other currencies PepsiCo’s income should fall.

6. Increased competition from Snyder’s- Snyder’s increase its US savory snacks market share by 1.6% and almost all of it was taken from PepsiCo.

SWOT Analysis of Mc Donald’s -SWOT Analysis of Mc Donald’s -

Strengths:

1. The best global brand in the world in terms of value- According to Inter

brand, The Coca Cola Company is the most valued ($77,839 billion) brand in

the world.

2. World’s largest market share in beverage- Coca Cola holds the largest

beverage market share in the world (about 40%).

3. Strong marketing and advertising-  Coca Cola’ advertising expenses

accounted for more than $3 billion in 2012 and increased firm’s sales and

brand recognition.

4. Most extensive beverage distribution channel- Coca Cola serves more than

200 countries and more than 1.7 billion servings a day.

5. Customer loyalty- The firm enjoys having one of the most loyal consumer

groups.

6. Bargaining power over suppliers- The Coca Cola Company is the largest

beverage producer in the world and exerts significant power over its suppliers

to receive the lowest price available from them.

7. Corporate Social Responsibility (CSR)- Coca Cola is increasingly focusing

on CSR programs, such as recycling/packaging, energy conservation/climate

change, active healthy living, water stewardship and many others, which

boosts company’s social image and result in competitive advantage over

competitors.

Weaknesses:

1. Significant focus on carbonated drinks- The business is still focusing on

selling Coke, Fanta, Sprite and other carbonated drinks. This strategy works in

short term as consumption of carbonated drinks will grow in emerging

economies but it will prove weak as the world is fighting obesity and is moving

towards consuming healthier food and drinks.

2. Undiversified product portfolio- Unlike most company’s competitors, Coca

Cola is still focusing only on selling beverage, which puts the firm at

disadvantage. The overall consumption of soft drinks is stagnating and Coca

Cola Company will find it hard to penetrate to other markets (selling food or

snacks) when it will have to sustain current level of growth.

3. High debt level due to acquisitions- Nearly $8 billion of debt acquired from

CCE’s acquisition significantly increased Coca Cola's debt level, interest rates

and borrowing costs.

4. Negative publicity- The firm is often criticized for high water consumption in

water scarce regions and using harmful ingredients to produce its drinks.

5. Brand failures or many brands with insignificant amount of

revenues- Coca Cola currently sells more than 500 brands but only few of the

brands result in more than $1 billion sales. Plus, the firm’s success of

introducing new drinks is weak. Many of its introduction result in failures, for

example, C2 drink.

Opportunities:

1. Bottled water consumption growth- Consumption of bottled water is expected to grow both in US and the rest of the world.

2. Increasing demand for healthy food and beverages- Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. The Coca Cola Company has an opportunity to further expand its product range with drinks that have low amount of sugar and calories.

3. Growing beverages consumption in emerging markets- Consumption of soft drinks is still significantly growing in emerging markets, especially BRIC countries, where Coca Cola could increase and maintain its beverages market share.

4. Growth through acquisitions- Coca Cola will find it hard to keep current growth levels and will find it hard to penetrate new markets with its existing product portfolio. All this can be done more easily through acquiring other companies.

Threats:

1. Changes in consumer tastes- Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly serving carbonated drinks.

2. Water scarcity- Water is becoming scarcer around the world and increases both in cost and criticism for Coca Cola over the large amounts of water used in production.

3. Strong dollar- More than 60% of The Coca Cola Company income is from outside US. Due to strong dollar performance against other currencies firm’s overall income may fall.

4. Legal requirements to disclose negative information on product labels- Some Coca Cola’s carbonated drinks have adverse health consequences. For this reason, many governments consider to pass legislation that requires disclosing such information on product labels. Products containing such information may be perceived negatively and lose its customers.

5. Decreasing gross profit and net profit margins- Coca Cola’s gross profit and net profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs.

6. Competition from PepsiCo- PepsiCo is fiercely competing with Coca Cola over market share in BRIC countries, especially India.

7. Saturated carbonated drinks market- The business significantly relies on the carbonated drinks sales, which is a threat for the Coca Cola as the market of carbonated drinks is not growing or even declining in the world.

Samples:

Table 4.1, shows that 44% of the respondents are in the age group of 11-20, 50% are in the age group of 21-40 and 6% are in the age group of 41-60.

Table 4.2, shows that 60% of the respondents are males and 40% of them are females.

Table 4.3, reveals that out of 50 respondents 5 are matriculate and 29 are Graduate and rest of them 16 are post graduate.

LIMITATIONS:

The project relied mainly on the primary data. Consumers give very unclear picture. We have a limited time. The study is based on limited sample. It begin my first attempt to undertake such a study, thus the inexperience is

also a obstacle to accomplish the project in a proper way. It was also difficult to get proper information from the people because they

were indulging in some other activities.

CONCLUSION:

Advertising consists of all the activities involved in presenting to an audience a non-personal, sponsor-identified, paid-for message about a product or organization. Advertising has become essential to promote sales, to introduce new product, to create good public, for large scale of production, for educating people etc. Advertising is the integral part of every day's life. Without advertising modern society cannot survive. Advertising is useful to society as it encouraging people to purchase goods and services, it bridges the gap among people by communicating varied culture through advertising message, it contributes to bring about all round development of the economy by increasing demand, it provides opportunities to people to improve their income.

And lastly I conclude that majority of the respondents said that TV is the most effective media for advertisement of cold drinks and the celebrities and the slogans in the advertisement effect the consumers.