KLE SOCIETY’S

INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, HUBLI

(Affiliated to Karnatak University, Dharwad

& Recognized by AICTE, New Delhi)

A PROJECT REPORT ON
“A STUDY ON EFFECTIVENESS OF ADVERTISEMENT MADE FOR
PEPSICO PRODUCTS”

SUBMITTED TO

KARNATAK UNIVERSITY, DHARWAD

Towards Partial Fulfillment of Requirements for the Award of
MASTER OF BUSINESS ADMINISTRATION
DURING THE ACADEMIC YEAR 2019-2020

SUBMITTED BY
KARTIK BENGERI
MBA II SEMESTER
REG. NO:19MBA085

Prof. Gangadhar Sheeri

Project guide
Effectiveness of Advertisement made by PepsiCo Product

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ACKNOWLEDGEMENT
It is a matter of great pleasure to acknowledge those personalities who have inspired,

guided and contributed immensely in bringing out this Project Report.

I express my sincere thanks to our Director Dr. P. B. Roodagi KLES’s IMSR, Hubli

for giving me an opportunity for learning.

I wish to take this opportunity to express my deep sense of gratitude to Prof.

Gangadhar Sheeri for his valuable guidance in this Endeavour. He has been a

constant source of inspiration. I sincerely thank him for his suggestions and his help in

successfully completing my project report.

I would like to thank to my parents, my teaching and non-teaching faculties, my

friends and all those who have helped me directly or indirectly for the completion of

this project work.

Date: 31/07/2020
Kartik Bengeri
Place: Hubli
MBA II Semester

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DECLARATION
I, Kartik Bengeri, hereby declare that this project report entitled “A study on

effectiveness of advertisement made by PepsiCo products” has been prepared by

me during the year 2019-2020, under the guidance of Prof.Gangadhar Sheeri,

Faculty, KLE’s Institute of Management Studies and Research, Hubli. The project is

towards partial fulfilment of requirement for the award of Master of Business

Administration Karnataka University, Dharwad.

I confirm that this report truly represents my work undertaken as a part of my

Summer In-plant Project (SIP) this work is not a replication of work done previously

by any other person. I also confirm that the contents of the report and the views

contained therein have been collected and presented by me.

Date: 31/07/2020
Place: Hubli
Roll No: 19MBA085

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Table of Contents

EXECUTIVE SUMMARY ....................................................................................................... 6

INTRODUCTION TO INDUSTRY .......................................................................................... 9

OVERVIEW OF SOFT DRINK INDUSTRY ........................................................................ 16

COMPANY PROFILE ............................................................................................................ 24

INTRODUCTION ................................................................................................................... 25

RESEARCH METHODOLOGY............................................................................................. 40

DATA ANALYSIS AND INTERPRETATION ..................................................................... 42

FINDINGS ............................................................................................................................... 62

SUGGESTIONS ...................................................................................................................... 62

CONCLUSION ........................................................................................................................ 63

ANNEXURE............................................................................................................................ 64

BIBILOGRAPHY .................................................................................................................... 68

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EXECUTIVE SUMMARY

Advertising is only one element of the promotion mix, but it often considered prominent in
the overall marketing mix design. Its high visibility and pervasiveness made it as an
important social and economic topic in Indian society.

The objectives of all business are to make profits this can be achieved by increasing its sales.
This is possible if the product is widely advertised.

Advertising is the method made to popularize the product or service at certain cost which is
transmitted to the target customers through mass media.

In this project a systematic study made to understand the soft drink industry a survey is
conducted using Google forms to understand the effective media and appeal for the
advertisement of the company and details are as follows.

PROJECT TITLE: “A study on Effectiveness of advertisement made for PepsiCo

product”

OBJECTIVES:

• To know the effectiveness of advertisement made by PepsiCo product.

• To understand the most effective media for advertisement for PepsiCo product.
• To understand the effective type of appeal can be made by PepsiCo products.

NEED FOR THE STUDY: The competition in soft drinks industry is increasing with entry of
other company like Coca-Cola and other local brands with their advertisement campaign,
hence PepsiCo also need to understand effective advertisement media and appeal for its
advertisement campaign to improve its market share.

SCOPE OF THE STUDY: This study helps us to know the effectiveness of advertisement
media and appeal which is helpful to design advertisement campaign and decide on budget.

LIMITATIONS OF THE STUDY:

• The project relied mainly on the primary data.

• Limited time.

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• Difficult to get proper information from the people.

• The study is based on limited samples.

IMPORTANT FINDINGS

• Majority of respondents about 38% prefer mountain dew soft drink and about 26% of
them prefer Pepsi and 22% of the prefer Coco cola soft drink
• Majority of people said that TV and social media is the most effective media of
advertisement compared to newspaper, magazine and radio .
• About 36% of respondents says advertisement will affect their choice of brand.
• Majority of respondents said that creativity of advertisement and usefulness of the
information will affect their choice of brand.
• Majority of respondents prefer adventure appeal for T.V advertisement.
• Most of the respondents said social appeal is best for billboard/hoardings
advertisement.
• Most of the respondents prefer to see informative/statistical appeal for magazine
advertisement.
• For the radio advertisement majority of the respondents prefer brand appeal.
• For the majority of respondents celebrity doesn’t not affect their choice of brand.
• About 41% of respondents say that advertisement of Pepsi helps them to make better
selection.
• The advertisement of Pepsi made majority of respondents loyal towards it’s brand.
• Theme and punch line are the most remembered for aspects of the Pepsi
advertisement.
• In total of 100 respondents 33% of the respondents correctly identified the tagline for
the Pepsi advertisement.

IMPORTANT SUGGESTIONS

• As the majority of respondents are students and employees design advertisement

appeal to retain this segment.
• As the majority of respondents likes to view T.V and engaged in social media it is
suggested to use the media effectively for the campaign.

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• From the findings majority of the viewers like creativity and usefulness of the
information, hence it is suggested to use the usefulness of the information like
benefits of soft drinks maybe created with the creative theme.
• As the majority of respondents like to view adventure appeal and also musical and
emotional appeal so it is suggested to design more adventure appeal like “ Darr ke
aage Jeet ha”, “ Taste the thunder” etc.
• For the billboard and hoardings majority of viewers like to see social appeal it is
suggested to present the social gathering like festival marriages etc.
• As the majority of readers of magazine like to read more informative appeal it is
suggested to use informative advertisement like hygiene of production and
distribution process and also statistics of benefits of the products.
• As the major of the radio listeners likes brand appeal it is suggested to design
advertisement which conveys brand benefits.
• As there is a majority of respondents have mixed opinion on effect of celebrity in
advertisement it is suggested to use suitable celebrity for PepsiCo advertisement
campaign.
• As there is mixed agreement on Pepsi company advertisement reminds the brand
name for soft drink it is suggested to increase the frequency of the advertisement to
make the customer remember and become loyal to the brand.
• As the majority of respondents remember punch line and theme it is suggested to use
creative and appealing theme and punch line in the advertisement.
• As the 30-35% of respondents able to recall/remember correct punch line and
celebrity it is suggested to increase frequency of advertisement to improve the effect
of advertisement.

CONCLUSION

I conclude that majority of the respondents said that TV and Social Media are the most
effective media of advertisement of cold drinks and the use of suitable celebrity and punch
line in the advertisement with proper budget allocation for effective advertisement to reach
the customer .

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INTRODUCTION TO INDUSTRY

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The History of Advertising in India

Anthropologist William Mazzarella divides advertising in post-independence India into four
key phases.
The first of these began after Indian independence from Great Britain (1947) and lasted until
the early 1960s. Indian advertising in this period still operated as an outpost of the British
Empire. The overall style of advertising was factual presentation coupled with an overall lack
of creativity.
The second phase (early 1960s to 1980s) emerged in large part as a reaction to the first and
stressed creativity and an Indian professional identity independent of Great Britain.
A third phase (1980s) turned away from creative and innovative advertising and toward
creating efficient marketing channels that would have a wide impact throughout the country.
The fourth and current phase, which also came into being in the 1980s, is characterized by a
synthesis of effective marketing mechanisms and a high level of creativity

Different stages of advertising in India

1st stage(1900-1947)

• Advertising products originated

• Economic growth was negligible
• Investment in market is very low
• Most indigenous products were commodity required no advertisement.

2nd Stage (1947-1977)

• India started on the path of self-reliance.

• Press commission in 1953.
• Total spent on ads in India was 5crores (3.5crore on print ad's & 1.5crores on
hoardings)

3rd Stage (1977-2000)

• Started second press commission in 1983.

• At this point ad revenue touched 200crores.

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• 1982 was the trademark year because of colour T.V changing the Indian lives
completely
• T.V reached up to 70% of Indian people.

ADVERTISING

The American Marketing Association, defined advertising as "any paid form of non-personal
presentations of idea, goods or service by an identified sponsor. “In other words we can say
that Advertising is brand building through effective communication

INTRODUCTION TO ADVERTISING AGENCY

The global market has expanded manifold in the last few decades. More and more products
are being launched practically every day. The companies are engaged in cutthroat
competition to highlight their products to the forefront. Herein enters the glamorous field of
advertising. Advertising is actually brand building through effective communication and is
essentially a service industry. This requires the help of the media to reach more and more
people to communicate brand effectiveness and here advertising agencies comes picture. The
role of advertising agency has been accepted because it provides specialist services to the
companies, which have inadequate services of experts for the promotion of their goods and
services. As the advertisement is one of the tools of promotion used for all the consumer
goods. Majority of companies depends on the advertisement for the promotion.

Advantages and limitations of Advertising Agency

Advantages
• Expert Knowledge.
• High Success Rate.
• Saves the Firm Time

Limitations
• Different Clients, Different Priorities.
• Advertising Agency may not understand the Firm’s Vision.
• Cost.

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Skills Required for Advertising Agencies

• Problem Solving.
• Communication and Team Work.
• Analytics.
• Digital Marketing.
• Content Strategy
Advertising Agency Structure

Different Media of Advertising

1. Newspaper Advertising
2. Television Advertising
3. Radio Advertising
4. Magazine Advertising
5. Direct Mail Advertising
6. Transportation Advertising
7. Outdoor Advertising
8. Personal Selling

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Newspaper Advertising:
Daily Newspaper contains two types of advertisement
• Classified advertisement.
• Display advertisement.
Advantages
• Large readership and high level of reader involvement
• Geographical selectivity.
• The cost is relatively low
Disadvantages
• Short life
• Black and white
• Where people are still illiterate

Magazine Advertisement
Magazine contains information articles and news of current interest
Different types of magazine are published for different types of customers
• Classified as
Local, regional and national
Weekly, monthly, quarterly
Consumer or business trade
Advantages
• Longer life span
• Print quality is good.
• Selective in approach
Disadvantages
• Less mass appeal within a geographical area
• More expensive

Outdoor Advertisement
• Posters: Pre-printed sheets put up like wallpaper on outdoor.
• Painted display : These can be displayed for very long time
• Wall painting: These are found in cities towns and villages. The surface can be hired

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Advantages:
• Highly visible relatively inexpensive
• Located to reach specific target markets.
Disadvantages:
• Effectiveness cannot be measured easily.
• Distract the attention of riders on roads
Television Advertising
Communicates with sound, action, motion colour. It is more effective as compared to radio as
it has the advantages of sound and sight.
Advantage
• There is a strong penetration into targeted demographic households
• There are multiple ways to broadcast your messages.
• Large number of audience.
Disadvantages
• There is no guarantee that the advertising will be viewed.
• Advertisement is not cheap.
• It requires repetition to be effective.

TRANSPORT ADVERTISING
Transport advertising appears on the inside or outside of taxis, buses, railways and other
modes of passenger transportation. Marketers may use transit advertisement to attain high
exposure to particular group’s consumers on theory way to and from work and tourists

Personal selling
Personal selling consists of persons to communication between the sales persons and their
prospects. Unlike advertising, it involves personal interactions between the sources and the
destination.
Advantages
• Effective in Building Personal Relationships
• Best Promotion for Hard to Reach Customers
Disadvantages
• Negative Perception of Salespeople
• Expensive to Maintain a Sales Force

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Advertising Agencies

• MUDRA

Product/Service Brand Name Client

Adhesives Jubilant Vam Organics

Air Coolers Symphony Symphony Ltd.

Airline Air India Air India

Anti-Infective — Prickly Heat ItchGuard DermiCool Paras Pharmaceuticals Ltd.

Antiseptic Creams - Heel Care Krack SR Paras Pharmaceuticals Ltd.

Antiseptic Lotion BoroSoft Paras Pharmaceuticals Ltd.

Automobile Dealers Popular Popular Vehicles & Services Ltd.

• CARAT

Adidas Diageo EMI Group Ferrero International

Fiat Henkel Kellogg Kraft Jacobs
Suchard LVMH Mannesmann- Vodafone
Mcrloni Beicrsdorf Bertelsmann BMW
Cable & Wireless Carrefour Coca-Cola Club Med
Danone Group Nissan Pernod Ricard Pfizer
Philips Renault Sara Lee SCA
SmithKline Beecham Telefonica Walt Disney

• Grey India

Clients

Kinder joy Dell Latitude

Britannia Cake Gillette

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OVERVIEW OF SOFT DRINK INDUSTRY

Soft Drinks are one of the most popular drinks, which are consumed on all types of
occasions. The demand for soft drinks is increasing day by day due to changing climatic
conditions, liking for fast food and changing culture (increase western culture). It includes all
types of non-alcoholic, carbonated and flavoured beverages. These artificially sweetened
drinks are available in different flavours, different sizes and in different packages.

The major ingredient in the soft drinks is water. It constitutes close to 91% of the soft drinks
content. Added to this the drink contain sweeteners, citric acid, Malic acid, colour,
preservative,
NECTAR and antioxidant
BEVERAGES PVTthe major ingredient in the soft drink is water. It constitutes
LTD.,

close to 91% of the soft drink content. Added to this, the drink also contains sweeteners,
SEGMENTATION OF BEVERAGE INDUSTRY
Citric Acid,AMalic acid,is Colour,
beverage Preservative,
a drink specifically and Antioxidant.
prepared for human consumption. Beverages almost
always largely consist of water. Drinks often consumed include: Water (both flat or
carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks, Alcoholic beverages
like beer or spirits ,Coffee, tea ,Dairy products like milk. Commonly, drinks are filled into
containers, like glass or plastic bottles, steel or aluminum cans as well as cardboard supported

packages, like the "Tetra Pack" or others. Filling of beverages can be done cold, hot, ambient
and cold-aseptic filling to mention the latest trend of beverage marketing and technology.

The beverage is mainly categorized into two major categories based upon the alcoholic and
non-alcoholic nature of the drink. Non-Alcoholic beverages are further o two types based
upon carbon content. These beverages contain Fruit juices, Coffee, Tea, Soda, Colas. The
Alcoholic beverages are based upon the fruit content and grain. It may be Wine, Brandy,
Whisky or Beer.

BEVERAGE STRUCTURE
Beverage Structure

Beverage

Non-Alcoholic Beverages Alcoholic Beverages

Non-carbonated Carbonated Fruit Based Grain

Fruit Juices, Colas, Wine, Beer,

Coffee, Soda, Brandy Whisky
Tea, Tonic Water
Packaged Water

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Market segment of soft drinks

Type Market Share example

carbonated 62% Pepsi,Coca-Cola,7up

Non-carbonated 38% Mango, lime

Cola war Between Pepsi & Coca-Cola:

PEPSI VS COKE

Bottlers to enhance its control on manufacturing and marketing of its product range andattain
the quality standards of its class. Countering its Pepsi has taken the baton in its own hands by
floating and investment of $95 millions to set 6 PepsiCo. India Holdings, a subsidiary for
company’s owned bottling operation (COBO). Both of the companies are following different
path to reach the same destiny i.e. to fetch the bigger portion of aerated soft drink market in
India both the competitors have distinct vision and priorities about the Indian soft drink
market through having so much difference and distances with each other, they both consider
India as a huge potential market as per capita consumption here in 3 servings per year against
an international of 80. thought out, they are putting their best efforts to woo Indian consumer
who has to work for 1.5 hours to buy a bottle crossover for both the athletes running for
getting No.1 position Coca- Cola is well set with it’s 53 bottling sites thought out the country
giving it an edge over competition by possessing a well built manufacturing and distribution
set up on the side of picture, Pepsi, with two more year in India, has been able to set an image
of winner this giants are ready to turn every stone of opportunity with a mind-set of long
tenure this time.

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Coca-Cola on the other hand, has been working on the saying ‘skew’and stead with ‘race’,
side by side retailing to every move of its competitor. They have produced the shield of
Thumps Up with a handsome market share in India soft drink market
Countering. Pepsi, International commercial that used two chimpanzees to coke a snack at
coke, ThumsUp came with the aid line, “Don’t be Bandar, taste the thunder” also Thumps
Up has been positioned now very near to that of young in age of Pepsi and giving it tough
time. Everything has been put on fire by these cool merchants if coke got he status of the
“Official drink of Wills World Cup”, Pepsi blushed as “Nothing official about it”. As
ThumpsUp projected as “Saare Jahan Se Achcha”. Pepsi was passionate enough with
“Freedom to be”. When Thumps Up came up with “Thunder Blast”, the other one offered,
Pepsi Stuff Card”. If red colour is meant for Coke, Pepsi has chosen to be Blue. In this way,
Indian consumer is getting more fizz.

Bottlers to enhance its control on manufacturing and marketing of its product range and attain
the quality standards of its class. Countering its Pepsi has taken the baton in its own hands by
floating and investment of $95 millions to set 6 PepsiCo. India Holdings, a subsidiary for
company’s owned bottling operation (COBO).

Soft Drink market at National Level

India is one of the largest markets for soft drinks in the world. At least not less than 7 billion
bottles of cold drinks are sold in a year. The two soft drink giant’s Coca-Cola and Pepsi
account for more than 90% of the carbonated drinks market in India. Pepsi entered India in
1989 and two years later Coca-Cola started their operations in India. Since then the two
giants are pumping in crores and crores to take upper hand in the country's soft drinks market.
Even indigenous brands like gold spot have been incorporated into their domain by outright
purchase. The cola and Pepsi reigned over the market as unquestioned, unrivalled masters.
The sales for the soft drinks, which went up steeply, suddenly fell after the stormy news that
drinking soft drinks is harmful. The finding of Delhi based NGO, The Centre for Science and
Environment (CSE) revealed that a dozens of popular brands of Coca-Cola and Pepsi contain
a deadly cocktail of pesticide residues, which could cause cancer, damage the nervous and
reproductive systems and even affect the immune system. The media was so effective that
even those who have not heard of Pepsi and coco-cola have started talking about this news
and advised their near ones not to consume such bottle drinks.The sales of bottles have
suddenly fallen after this allegation. Thoughone segment of people stopped drinking these
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soft-drinks due to the physical risks involved, there is another segment the few who still
consume such bottled drinks. The present study has made an attempt to find out the profile of
such consumers and the reasons for their consumption.
Soft Drinks Industry In India

Volume by Brand Annual Growth %

Coco-cola 89.44
Pepsi 77
Thums-up 26.75
Miranda 55.08
Fanta -2.15
7 up -2.92
All other brands 52.06

The major ingredient in the soft drink is water. It constitutes close to 91% of the soft
drink content. Added to this, the drink also contains sweeteners, Citric Acid, Malic acid,
Colour, Preservative, and Antioxidant.

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Industry S.W.O.T Analysis

Strengths:

• Basic consumer need.

• Large and growing market.
• Different types of flavour.
• Non-Alcoholic.
• Low cost.

Weakness:

• Traditional preservation.
• Health awareness.
• Negative claim.
• Ecological hazard.

Opportunity:

• Replace alcohol.
• Untapped rural markets.
• New generation trends.
• Establish facts and utilize PR.
• Replace in tea and coffee.

Threats:

• Health issues.
• Distribution costs.
• Competition.
• School and parental perception.
• Environmentalism.

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Porters Five Force Model

1. Threat of New Entrants:

Profitable industries that yield high returns will attract new entities. New entrants eventually
will decrease profitability for other firms in the industry. Unless the entry of new firms can be
made more difficult by incumbents, abnormal profitability will fall towards zero (perfect
competition), which is the minimum level of profitability required to keep an industry in
business.

• Existing firms have cost and performance advantage in this industry. This is because
existing firms have already purchased large capital expenditure and have economies
of scales. They also have direct supply and distribution channel setup.
• Only established player can try out new things.
• A new comer to the industry would face difficulty in assessing distribution channels.
The major breads already control the main distribution channels

2. Threat of substitutes:

A substitute product uses a different technology to try to solve the same economic need.
Examples of substitutes are meat, poultry, and fish; landlines and cellular telephones; airlines,
automobiles, trains, and ships; beer and wine; and so on. For example, tap water is a
substitute for Coke, but Pepsi is a product that uses the same technology (albeit different

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ingredients) to compete head-to-head with Coke, so it is not a substitute. Increased marketing

for drinking tap water might "shrink the pie" for both Coke and Pepsi, whereas increased
Pepsi advertising would likely "grow the pie" (increase consumption of all soft drinks), while
giving Pepsi a larger market shares at Coke's expense.

• Other new products keep coming in market.

• Costumer would not incur cost in switching to substitutes. The choice of switching to
a substitute for a customer would in most cases be the difference of cents.
• Price is point on concern for some customers.

3. Bargaining power of customer

The bargaining power of customers is also described as the market of outputs: the ability of
customers to put the firm under pressure, which also affects the customer's sensitivity to price
changes. Firms can take measures to reduce buyer power, such as implementing a loyalty
program. Buyers' power is high if buyers have many alternatives. It is low if they have few
choices.
• The target buyers are young which are willing to buy new things.
• Customers are highly sensitive to the price of soft drinks and are willing to change
brands if one becomes much more expensive than the other.
• Brand loyalty need to develop.

4. Bargaining Power of Suppliers:

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw
materials, components, labour, and services (such as expertise) to the firm can be a source of
power over the firm when there are few substitutes. If you are making biscuits and there is
only one person who sells flour, you have no alternative but to buy it from them. Suppliers
may refuse to work with the firm or charge excessively high prices for unique resources.
• Firms can switch between suppliers very quickly and easily.
• Suppliers for the soft drink industry do not hold much competitive pressure. Suppliers
to the industry are bottling equipment manufacturers and secondary packaging
suppliers.
• The entry barrier for the suppliers is low.

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5. Rivalry among existing players:

For most industries the intensity of competitive rivalry is the biggest determinant of the
competitiveness of the industry. Having an understanding of industry rivals is vital to
successfully marketing a product. Positioning depends on how the public perceives a product
and distinguishes it from competitors. An organization must be aware of its competitors
marketing strategies and pricing and also be reactive to any changes made.
• The industry is not growing rapidly. The growth rate for the industry is not rapid. This
makes it very difficult for the new entrants to compete with the already thriving firms
in the industry.
• There are significant brand identities among the firms in the industry, which is why
brand names are an important competitive edge among new businesses.
• Sustainable competitive advantage through innovation.

Market Analysis:

The market volume of soft drink industry in India in 2013 was 11,755 liters, showing a
growth of 170% compared to 4369 litres in 2008. As far as predicted growth rate is
concerned, market is showing around 19% growth annually. For product wise analysis, it
shows that 20% annual growth rate for next year five in bottled water while the carbonated
drink shows. The same figure for juice is 21%. Interestingly, the annual growth rate of
carbonated drink is only 10%. This increment will come from mostly due to penetration in
rural market while there is considerable decrement in sales in urban area.

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COMPANY PROFILE

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INTRODUCTION

PepsiCo's global headquarters building from the Donald M. Kendall Sculpture Gardens in
Harrison, New York, in the hamlet of Purchase

Type Public

Traded as • NASDAQ: PEP

• NASDAQ-100 component
• S&P 100 component
• S&P 500 component

ISIN US7134481081

Industry Beverages
Food processing

Founded August 28, 1898; 121 years ago

New Bern, North Carolina, United States

Founder Caleb Bradham

Headquarters Harrison, New York (in the hamlet of Purchase), United

States

Area served Worldwide

Key people Ramon Laguarta (CEO)

Products See list of PepsiCo products

Revenue US$67.16 billion (2019)[1]

Operating income US$10.29 billion (2019)[1]

Net income US$7.353 billion (2019)[1]

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Total assets US$78.55 billion (2019)[1]

Total equity US$14.87 billion (2019)[1]

Number of employees 267,000 (2019)[1]

Subsidiaries List of subsidiaries

Website pepsico.com

PepsiCo India

Head office: gurugram , Haryana.

CEO. : Ramon Laguarta

Plants. : PepsiCo has 37 bottling plants in India, including 17 company-owned plants and
20 owned by franchisee partners.

Sales. : largest franchisee grows 24 pc to Rs 1,359 crore in Q1 FY19. Total sales volumes
were up 12.3 per cent at 9.03 crore unit cases in Q1 2019 as compared to 8.04 crore unit cases
in Q1 2018.

Employees : 143,000

PEPSICO INTERNATIONAL
PepsiCo is one of the largest FMCG companies there is that is engaged in the food, beverage,
and snack industries. PepsiCo is engaged in the snack food, soft drink, juice, and fast food
franchise businesses. The Company, through its subsidiaries, markets, sells and distributes
various snacks in the United States and internationally, manufactures concentrates of
Pepsi, Mountain Dew and other brands for sale to franchised bottlers in the US and
international markets and produces, markets, sells and distributes juices under several
Tropicana trademarks in the United States and internationally. PepsiCo’s domestic
snack food business is conducted by the Frito-Lay North America, and its international
snack food business is conducted through Frito-Lay International. The Company's
soft drink business operates as the Pepsi-Cola Company and is comprised of two business
units one is Pepsi-Cola North America and Pepsi-Cola International. In December 2000, the
Company announced an agreement under which a subsidiary of the PepsiCo will merge with
Quaker Oats Company, and Quaker will become a wholly PepsiCo is one of the largest

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FMCG companies there is that is engaged in the food, beverage, and snack industries.
PepsiCo is engaged in the snack food, soft drink, juice, and fast food franchise businesses.
The Company, through its subsidiaries, markets, sells and distributes various snacks in the
United States and internationally, manufactures concentrates of Pepsi, Mountain Dew and
other brands for sale to franchised bottlers in the US and international markets and produces,
markets, sells and distributes juices under several Tropicana trademarks in the United
States and internationally. PepsiCo’s domestic snack food business is conducted by the
Frito-Lay North America, and its international snack food business is conducted
through Frito-Lay International. The Company's soft drink business operates as the Pepsi-
Cola Company and is comprised of two business units one is Pepsi-Cola North America and
Pepsi-Cola International. In December 2000, the Company announced an agreement under
which a subsidiary of the PepsiCo will merge with Quaker Oats Company, and Quaker
will become a wholly.
PepsiCo is one of the largest FMCG companies there is that is engaged in the food, beverage,
and snack industries. PepsiCo is engaged in the snack food, soft drink, juice, and fast food
franchise businesses. The Company, through its subsidiaries, markets, sells and distributes
various snacks in the United States and internationally, manufactures concentrates of Pepsi,
Mountain Dew and other brands for sale to franchised bottlers in the US and international
markets and produces, markets, sells and distributes juices under several Tropicana
trademarks in the United States and internationally. PepsiCo’s domestic snack food business
is conducted by the Frito-Lay North America, and its international snack food business is
conducted through Frito-Lay International. The Company's soft drink business operates as
the Pepsi-Cola Company and is comprised of two business units one is Pepsi-Cola North
America and Pepsi-Cola International. In December 2000, the Company announced an
agreement under which a subsidiary of the PepsiCo will merge with Quaker Oats Company,
and Quaker will become a wholly owned subsidiary of the PepsiCo. Quaker is a large
worldwide marketer of foods and beverages. The proposed merger is subject to the certain
closing conditions, including approval by shareholders of both companies and regulatory
approvals. The transaction is expected to close in the first half of 2000. PepsiCo is also
operating several food franchises including Pizza Hut, KFC, and Taco Bell etc.

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Mission and Vision

Mission:

Our mission is to be the world's premier consumer Products Company focused on convenient
foods and beverages. We seek to produce financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive for honesty, fairness
and integrity.
Vision:

"PepsiCo's responsibility is to continually improve all aspects of the world in which we

operate – environment, social, economic – creating a better tomorrow than today." Our vision
is put into action through programs and a focus on environmental stewardship, activities to
benefit society, and a commitment to build shareholder value by making PepsiCo a truly
sustainable company.

PEPSICO INDIA

PepsiCo entered India in 1989 and in the short span of a little more than a decade it became
the country's largest selling soft drinks company. The Company has invested heavily in India
making it one of the largest multinational investors. The group has built an expansive
beverage, snack food and exports business and to support the operations are the groups of 43
bottling plants in India, of which 15 are company owned and 28 are franchisee owned.

PepsiCo stays committed to providing its consumers with best quality beverages. Its diverse
portfolio of brands includes the flagship cola brand Pepsi, Diet Pepsi, 7Up, Mirinda,
Mountain Dew, Slice fruit drink, Tropicana brand 100% fruit juices in the various flavours,
Aquafina packaged drinking water, the Gatorade plus local brands Lehar Evervess Soda and
Dukes Lemonade and Mangola.

PepsiCo is also a dominant player in snack food segment in India. PepsiCo's snack food
company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's
Potato Chips; Cheetos extruded snacks, Uncle Chips, Kurkure and Lehar brands, and Quaker
Oats.

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PepsiCo is one of the largest MNC exporters in the India and its export business consists of
three categories: agribusiness, commodities and Pepsi system sales. PepsiCo has made the
significant investments with the Punjab Agriculture University to develop the comprehensive
agro-technology program that has helped thousands of the farmers across India improve the
yield of their farms and the quality of their agricultural products. PepsiCo has leveraged its
knowledge in the contract farming to develop seaweed cultivation in the Tamil Nadu and has
partnered with the Government of Punjab to help farmers of the state through the utilization
of developed technology for the citrus farming.

As part of its sustainable development initiatives, PepsiCo India has been a committed leader
in the promotion of rainwater harvesting, water conservation recycling and reduction of
effluent discharge. PepsiCo has also established the zero waste centres and PET recycling
supply chains and assisted victims of natural disasters.

PepsiCo stays dedicated in its endeavour to develop the community outreach programs by
supporting rural water supply schemes, administering medical camps in villages, providing
computers to rural schools and creating opportunities for women in rural areas through
vocational training as an alternate means of the livelihood.

Overview of PepsiCo India

PepsiCo has established its business operations in India in 1989 and has grown to become the
one of the country’s leading food and the beverage companies. One of the largest
multinational investors in the country, PepsiCo has established a business, which aims to
serve the long term dynamic, needs of Indian consumers.

Initially PepsiCo has joint venture with the Punjab government-owned Punjab.Agro
Industrial Organization and the Voltas India Limited. This joint venture marketed and sold
Lehar Pepsi until 1991, when the use of foreign brands was allowed, PepsiCo bought out its
partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from
the import in India, in 1970, for having refused to release the list of its ingredients and in
1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards.

These controversies are a reminder of "India's sometimes acrimonious relationship with the
huge multinational companies." Indeed, some argue that PepsiCo and Coca Cola Company

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have "been major targets in part because they are well-known foreign companies that draw
plenty of the attention."

In 2003, the Central for Science and Environment, a non-governmental organization New
Delhi, said that aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and tested products included Coke, Mirinda, 7Up, Thums Up,
Fanta, and Sprite. CSE found that the Indian produced Pepsi's soft drink products had 36
times the level of pesticide residues permitted under the European Union regulations, Coca
Cola's 30 times. CSE said that it had tested the same products in the US and found no such
residues. However, this was the European standard for water, not for the other drinks. No law
bans the presence of pesticides in drinks in India.

The Coca-Cola Company and PepsiCo angrily denied allegations that their products are
manufactured in India contained toxin levels far above the norms permitted in developed
world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and by a
government-appointed committee, is now trying to develop the world's first pesticides
standards for Soft Drink Company. Coke and Pepsi opposed the move, arguing that lab tests
are not reliable enough to detect minute traces of pesticides in complex drinks.

As of 2005, The Coca-Cola Company and the PepsiCo together hold 97% market share of
soft drink sales in the India. PepsiCo has also been accused by the Puthussery panchayat in
the Palakkad district in the Kerala, India, of practicing "water piracy" due to its role in the
exploitation of groundwater resources resulting in the scarcity of drinking water for the
Panchayat residents, who have been pressuring the government to close down the PepsiCo
unit in the villages.

In the year 2006, the CSE again found that soda drinks, including both the Pepsi and the
Coca-Cola, had high levels of pesticides in their drinks. Both the PepsiCo and The Coca-
Cola Company maintain that their drinks are safe for the consumption and have published in
newspaper advertisement that say that pesticide levels in their products are less than those in
other foods such as tea, fruit and dairy products.

In the Indian state of Kerala sales and production of Pepsi-Cola, along with other soft drinks,
was banned by the state government in 2007, but this was reversed by the Kerala High Court

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merely a month later. Five other Indian states have announced a partial ban on the drinks in
the schools, colleges and the hospitals.

PepsiCo India and its partners have invested more than USD1 billion since the company was
established in the country. PepsiCo India provides the direct and indirect employment to
150,000 people including suppliers and the distributors.

PepsiCo nourishes consumers with a range of the products from treats to healthy eats, which
deliver joy as well as nutrition and, good taste. PepsiCo India’s expansive portfolio includes
the iconic refreshment beverages Pepsi, 7UP, Mirinda and Mountain Dew, in addition to low
calorie options such as the Diet Pepsi, hydrating and nutritional beverages such as the
Aquafina drinking water, isotonic sports drinks Gatorade, Tropicana 100% fruit juices, and
juice based drinks, Tropicana Nectars, and Slice. Local brands Lehar Evervess Soda, Dukes
Lemonade and Mangola add to the diverse range of the brands.

PepsiCo’s foods company is the leader in the branded salty snack market and all the Frito laid
products are free of trans-fat and the MSG. It manufactures Lay’s Potato Chips Uncle Chips
and the traditional snacks under the Kurkure and Lehar brands. The company’s high fiber
breakfast Quaker Oats, and low fat and roasted snack options enhance the healthful choices
available to the consumers. Frito Lay’s core products, Kurkure, Uncle Chips and Cheetos are
cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain
voluntary nutrition labelling on their packets.

The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has total of 42 bottling plants in India, of which 13 are the company owned and 29
are the franchisee owned. In addition to, PepsiCo Frito Lay foods division has three state-of-
the-art plants. PepsiCo’s business is based on its sustainability vision making tomorrow better
than the today. PepsiCo’s commitment to the living by this vision every day is visible in its
contribution to the country, consumers and the farmers. With the re-entry of Coca-Cola in the
Indian market, Pepsi had to go in for more aggressive marketing to sustain its market share.

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The chronology the initial phase of the "Coal Wars" in India was:

July 1986:

An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas and Punjab
Agro is submitted to the government after an earlier proposed alliance- 1985, between Pepsi
and Duncan's of the Goenkas fails to take off.

Sept 1988:
Final approval to the Pepsi Foods Limited. Project granted by the Cabinet Committee on
Economic Affairs of the Rajeev Gandhi Government.
March 1990:
Pepsi Cola and Seven up were launched in limited market in North India.
May 1990:
The government clears the Pepsi project again but with a change in brand name to Lehar
Pepsi. Simultaneously it rejects the Coca-Cola application. Citra form the Parle stable hits the
market.
Dec 1991:
Pepsi extends its soft drinks reach on national scale. Products launched in Delhi and Bombay.
Jan 1992:
Brito Foods application cleared by the FTPB. Pepsi and Parle start initial negotiations for
strategic alliance but talks break off after a while.
1993:
Pepsi launches Teem and Slice. Captures about 2530% of the soft drinks market in about two
years.
July 1993:
Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to 92% Reports of coke —
Parle negotiations gain strength.
1994: Pepsi brought Dukes& Sons.
1995: Pepsi launched Cans having capacity of 330 ml in various flavours.
1997: Pepsi brought Mirinda Orange opposite to Fanta.
1998: Pepsi launched Lemon Mirinda to give taught competition to Limca.
1999: Pepsi has launched its Diet Pepsi Can and 1.5 Litres pet battles for health conscious
people.
2001: Pepsi launched Aquafina opposite to Kinley.
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2003: Pepsi launched Mountain Dew.

2005: Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.
2006: Bubbly Pepsi was launched.
2007: Pepsi Gold was launched.
2009: Nimbooz by 7up was launched.
2010: PepsiCo India recently launched a new flavours named "7UP Ice" in Indian market. It
is hard that 7UP. The taste of 7UP Ice is mint. And Mirinda Bat Berry. The taste of Mirinda
Bat Berry is like Glicodin.
2011: In April 2011, Pepsi announced that customers will be able to buy a complete stranger
a soda at a new "social" vending machine, and even record a video that the stranger would
see when they pick up the gift.
2012: In March 2012, Pepsi introduced Pepsi Next, a cola with half the calories of regular
Pepsi.
2013: Pepsi launched Atom Cola, a cola with stronger taste in comparison to Pepsi cola. The
brand was available in 200m1 and 500m1 glass and pet bottles respectively.

Pepsi Advertising History

When introducing Pepsi-Cola, once known as “Brad’s Drink”, as their first product back in
1898 “Exhilarating, invigorating, Aids Digestion”, was the original slogan advertised for the
upcoming beverage. By 1910, franchises were spreading in twenty four states, selling over
100,000 gallons of syrup per every year. Caleb Bradham, the creator of Pepsi, was
advertising Pepsi through newspapers since he had renamed it Pepsi-Cola.

Advertising strategy of Pepsi

• Pepsi’s target audience are mostly teens and young adults and their advertising
reflects this in every possible way.
• The company changes its advertising strategy and image to reflect the target's
interests
• The advertising strategy includes cool, hip promos to attract more of the target
audience.
• The advertising is mostly creative and has different elements like music and sports
other than Bollywood.

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Types of Advertising
There are several types of advertisements that is used by Pepsi that help expose the product
out to the public.
• Print advertisement: Print Advertisements are ads that are printed by companies and
published in newspapers, magazines, brochures, and flyers.

• Outdoor advertisement: These are the advertisement seen on Billboard, bus shelter,
banners, Wall posters, street furniture’s.

• Broadcast advertisement: It is the advertisement carried out in radio, television and

internet.

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Advertising Campaigns
• Michael Jackson
Michael received the biggest sponsorship from the company in 1993.
In 1993 Pepsi had a “Search for Michael Jackson” campaign.
Used musical and sex appeal.

• Jeff Gordon
Made a commercial with Hallie Eisenberg. Sells many Pepsi collectable merchandise. Drove
the Pepsi car in races

• Beyonce
Beyoncé signed a $50 million contract with Pepsi, Beyoncé chose the song for the ad, and
will have creative input for can designs and consumer content

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• Sports
Pepsi has sponsored for a lot of sports.

PepsiCo Products
Different drinks are made by different names and they have their separate identity. The
brands of product which are manufactured by this particular group such as follow:-

PRODUCTS:
1. PEPSI ---------------- Cola
2. PEPSI---------------- Diet
3. MIRINDA----------------- Lemon
4. MIRINDA------------------Orange
5. MOUNTAIN DEW
6. 7-UP
7. SLICE
8. LEHAR----------------- SODA
9. NIMBOOZ by 7-UP
10. TROPICANA FRUIT JUICE
11. AQUAFINA
Pepsi is considered as cola drinks, it is generally preferred by all segment of consumers. This
particular brand gives hand some revenue to the company. it is one of the leading lemon
drinks in terms of sales. The particular drink is mostly liked by youth segment. This
particular drink comes in two flavours orange and lemon. Orange flavours are more common
in ladies and children. This is one of the major drinks demanded by the consumers it is made
with the help of mango pulp.

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1) PEPSI

Pepsi is considered as cola drinks, it is generally preferred by all segment of consumers. This
particular brand gives hand some revenue to the company
2) MIRINDA

This particular drink comes in two flavours orange and lemon. Orange flavours are more
common in ladies and children.
3) MOUNTAIN DEW

It is one of the leading lemon drink in terms of sales.The particular drink is mostly liked by
the youth segment.

4) 7-UP

This is the lemon kind of drink. It is colourless and it does not have proper penetration in the
market and yields less returns.

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5) SLICE

This is one of the major drinks demanded by the consumers it is made with the help of mango
pulp.

6) NIMBOOZ

Nimbooz is newly launched product of Pepsi. It contains with 5% of lemon, no fizz and no
artificial flavour

7) AQUAFINA

It is the packaged drinking water it is available in 1 and 2 litre and it undergoes 8 stage
purification processes ensures that you get pure drinking water.

8) TROPICANA

Tropicana is a fruit juice which is product of PepsiCo. Tropicana comes in different flower
such as orange, grape, apple, Litchi, guava, mixed fruit etc.

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S.W.O.T Analysis

STRENGTHS

• High Brand Equity in the market

• Good Customer Loyalty
• Well-developed intensive Strong Distribution network.
• Non-alcoholic drink
• Clear Target Audience

WEAKNESS

• Increasing Competition from Large sized company and also local companies.
• Some of the products are slow moving in the market.

OPPORTUNITIES

• Increased Demand For Healthy Products

• Market Expansion for new segments.
• Addition of Flavours.

THREATS

• Reducing customer demand for carbonated Drinks.

• Heavy Competition from Global and Local Players.
• Economic crises due to covid-19

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RESEARCH METHODOLOGY

Every project is based on certain facts, information, ideas and data collection from different
sources. It helps us to know why the particular research has been undertaken, and how the
data collected and interpreted. This aims at presenting the methods and procedures adopted to
collect the information.

The information is carried out the project by two different sources they are:

Primary Data: The primary sources of collection of data are carried through questionnaires.
The questionnaires consist of 20 questions connecting to the objective of the research.

Secondary Data: For this secondary data was collected through various sources such as
internet, journals and websites.

Type of Research: Descriptive study.

Sampling Method: Convenience Sampling

Sample Frame: Hubli-Dharwad

Sample Size: 100

Data Collection Procedure: Through Questionnaires (Google forms)

Data Analysis Procedure: Ms-Excel and SPSS

The method of research used in descriptive study, generally is survey method for collecting
information related to the demographic and behavioural variables of the respondents. The
research included other descriptive information about Effectiveness of Advertisements made
by PepsiCo Products. The survey administered only one set of questionnaire, for the
customers. The questionnaire included 20 questions. The questionnaire was pretested before
being finalized and administered.

The sampling technique used was a Convenience sampling, because the questionnaire was
sent to the people who are aware of advertisements. The sample size was chosen to be 110
among which 100 were valid responses and 10 were rejected due to some error. This was
considered sufficient to analyse and interpret the data easily. After scrutiny of Google form

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data, the processing was done in Microsoft Excel and SPSS. The entire multi choice options
were pre-coded before being entered into the computer.

Project Title:

“A Study on Effectiveness of Advertisements made for PepsiCo Products”

OBJECTIVES:

• To know the effectiveness of advertisement made by Pepsi product.

• To understand the most effective media for advertisement for Pepsi product.
• To understand the different types of appeals made by Pepsi.

NEED FOR THE STUDY:

The study will be helpful whether the advertising campaign achieved or not and increased its
customer base or not and which media carried the advertisement successfully.

SCOPE OF THE STUDY:

This study helps us to know the effectiveness of advertisement and it will be helpful in
knowing the best media of advertisement for the PepsiCo product.

LIMITATIONS OF THE STUDY:

• The project relied mainly on the primary data.

• Difficult to get proper information from the people.
• The study is based on limited samples.
• Limited time.

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DATA ANALYSIS AND INTERPRETATION

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1. Gender

Table: 01

Gender

Frequency Percentage Valid Cumulative

Percentage Percentage

Male 71 71.0 71.0 71.0

Valid Female 29 29.0 29.0 100.0

Total 100 100.0 100.0

Graph: 01

Interpretation:

Table 01 shows that 71% of respondents are male and 29% are female respondents.

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2. Age

Table: 02

Age

Frequency Percentage Valid Cumulative

Percentage Percentage

18-25 89 89.0 89.0 89.0

25-30 10 10.0 10.0 99.0

Valid
30-35 1 1.0 1.0 100.0

Total 100 100.0 100.0

Graph: 02

Interpretation:

The above table clearly indicates that a maximum percentage of 90% of respondents are in
the age group of 18-25 followed by the respondents in the age group 25-30 which is 19%.
1% are in the age group of 30-35. It is also found that none respondents are of are in the age
group of above 35.

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3. Occupation

Table: 03

Occupation

Frequency Percentage Valid Cumulative

Percentage Percentage

student 68 68.0 68.0 68.0

Employee 21 21.0 21.0 89.0

Valid Business 6 6.0 6.0 95.0

self employed 5 5.0 5.0 100.0

Total 100 100.0 100.0

Graph: 03

Interpretation:

In this table, it is identified that most of the Respondents are students, that is 75% and 20% of
respondents are employees and followed by 12% are under the category of business
Professionals and are about 10%are self-employed.

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4. Which soft drink brand do you prefer the most?

Table: 04

Brand_Prefer

Frequency Percentage Valid Cumulative

Percentage Percentage

Fanta 3 3.0 3.0 3.0

Coca-Cola 22 22.0 22.0 25.0

Pepsi 26 26.0 26.0 51.0

Valid Thumbs Up 4 4.0 4.0 55.0

Mountain Dew 39 39.0 39.0 94.0

Other 6 6.0 6.0 100.0

Total 100 100.0 100.0

Graph: 04

Interpretation:

The above tables shows that the most of the respondents prefer mountain dew about 38%
followed by Pepsi 25%, and Coca-Cola 22% thumbs up 8%, Fanta 5% and rest of the
respondents prefer other beverages . the least preferred is Fanta and the highest preferred is
Mountain dew

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5. Which of these medium of advertisement you like the most?

Table: 05

Advertisement_Medium

Frequency Percentage Valid Cumulative

Percentage Percentage

TV 42 42.0 42.0 42.0

Magazines 7 7.0 7.0 49.0

Newspapers 5 5.0 5.0 54.0

Valid Radio 2 2.0 2.0 56.0

Outdoor media 6 6.0 6.0 62.0

Social media 38 38.0 38.0 100.0

Total 100 100.0 100.0

Graph: 05

Interpretation:

From the above graph the most of the respondents likes T.V medium of advertisements which
is visual and entertained which is about 42% and 40% of the respondents prefer Social Media
advertisements and 9% of the respondents likes outdoor media and Magazines and 5% of
respondents likes newspaper media and about 3% is of radio which is very less effective
compared to the other mediums od advertisements.

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6. Does advertisement affect the choice of your brand?

Table: 06

Affect_of_Choice

Frequency Percentage Valid Cumulative

Percentage Percentage

Yes 36 36.0 36.0 36.0

No 22 22.0 22.0 58.0

Valid
Maybe 42 42.0 42.0 100.0

Total 100 100.0 100.0

Graph: 06

Interpretation:

From the above graph we can say that the effectiveness of choice of brands under different
ages category is maybe which is about 44% and the choice of brand for age groups is around
yes among 38%. And the rest of the respondents says no to the choice of brand in which they
are likely to have any kind of soft drink which brand does not matters.

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7. Tick the parameter which you like about the advertisement?

Table: 07
Parameters

Frequency Percentage Valid Cumulative

Percentage Percentage

Celebrity used 11 11.0 11.0 11.0

Creativity of ad 41 41.0 41.0 52.0

Background music 10 10.0 10.0 62.0

Valid Theme and emotion 12 12.0 12.0 74.0

Usefulness of the
26 26.0 26.0 100.0
information

Total 100 100.0 100.0

Graph: 07

Interpretation:

From the graph majority of respondents likes the creativity of advertisement about 41% and
26% of respondents likes usefulness of information and about 12% likes theme and emotion
of advertisement and 11% of them likes celebrity used and 10% likes the background music
of the advertisement.

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8. Which appeal is best suited for TV advertisement?

Table: 08
TV_advertisements

Frequency Percentage Valid Cumulative

Percentage Percentage

Adventure appeal 47 47.0 47.0 47.0

Music appeal 26 26.0 26.0 73.0

Valid Emotional appeal 24 24.0 24.0 97.0

Other 3 3.0 3.0 100.0

Total 100 100.0 100.0

Graph: 08

Interpretation:

The above graph clearly indicates that majority of respondents about 47% prefer adventure
appeal for T.V advertisement followed by music appeal 26% and emotional appeal 24% and
about 3% of respondents prefer other

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9. Which appeal is best suited for advertisement on billboards/hoardings?

Table: 09

Billboards_Hoardings

Frequency Percentage Valid Cumulative

Percentage Percentage

Celebrity appeal 30 30.0 30.0 30.0

Social appeal 49 49.0 49.0 79.0

Valid
Potential appeal 21 21.0 21.0 100.0

Total 100 100.0 100.0

Graph: 09

Interpretation:

The above graph shows that about 49% of respondents prefer social appeal for
Billboard/hoardings advertisement 30% respondents says celebrity appeal and 21% prefer
potential appeal.

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10. Which appeal is best suited in magazine advertisement?

Table: 10

Maganize_avertisement

Frequency Percentage Valid Cumulative

Percentage Percentage

Youth appeal 28 28.0 28.0 28.0

Humor appeal 29 29.0 29.0 57.0

Valid Informative/statistical appeal 39 39.0 39.0 96.0

personal appeal 4 4.0 4.0 100.0

Total 100 100.0 100.0

Graph: 10

Interpretation:

From the above graph clearly shows that about 39% of respondents prefer
informative/statistical appeal for magazine advertisement and about 29% prefer Humor
appeal and 28% of respondents prefer youth appeal 4% of them says personal appeal for
magazine advertisement.

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11. Which appeal is best suited in Radio advertisement?

Table: 11

Radio_advertisemnt

Frequency Percentage Valid Cumulative

Percentage Percentage

Brand appeal 68 68.0 68.0 68.0

Personal appeal 15 15.0 15.0 83.0

Valid Beauty appeal 1 1.0 1.0 84.0

Satuts appeal 16 16.0 16.0 100.0

Total 100 100.0 100.0

Graph: 11

Interpretation:

From the above graph majority of respondents about 68% prefer brand appeal for radio
advertisement and 16% of the respondents says status appeal and about 15% of them prefer
personal appeal and very less respondents about 1% prefer beauty appeal for radio
advertisement.

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Effectiveness of Advertisement made by PepsiCo Product

12. Does an advertisement showing your favourite celebrity affect your choice of
brand?
Table: 12

Celebrity_affect

Frequency Percentage Valid Cumulative

Percentage Percentage

Yes 26 26.0 26.0 26.0

No 42 42.0 42.0 68.0

Valid
Maybe 32 32.0 32.0 100.0

Total 100 100.0 100.0

Graph: 12

Interpretation:

From the above graph 42% of respondents says their choice of is not affected by the celebrity
and about 26% of the respondents says yes and 32% of the respondents says maybe. From
this we can say that for majority of respondents celebrity does not affect their choice of
brand.

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Effectiveness of Advertisement made by PepsiCo Product

13. Do you agree that PepsiCo advertisement remind you brand name while
purchasing?
Table: 13

Remindness_ofbrand

Frequency Percentage Valid Cumulative

Percentage Percentage

Strongly disagree 8 8.0 8.0 8.0

Disagree 11 11.0 11.0 19.0

Neutral 38 38.0 38.0 57.0

Valid
Agree 36 36.0 36.0 93.0

Strongly agree 7 7.0 7.0 100.0

Total 100 100.0 100.0

Graph: 13

Interpretation:

From the graph we can see that about 38% of the respondents are neutral and 36% of the
respondents agree to the PepsiCo advertisement reminds them the brand name while
purchasing and about 11% of them disagree and 8% of them strongly disagree and 7% of the
respondents strongly agree the PepsiCo advertisement reminds the brand name while
purchasing.

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Effectiveness of Advertisement made by PepsiCo Product

14. Do you agree advertisement of PepsiCo soft drink help you to make better
selection?
Table: 14

Better_selection

Frequency Percentage Valid Cumulative

Percentage Percentage

Strongly disagree 9 9.0 9.0 9.0

Disagree 9 9.0 9.0 18.0

Neutral 39 39.0 39.0 57.0

Valid
Agree 41 41.0 41.0 98.0

Strongly agree 2 2.0 2.0 100.0

Total 100 100.0 100.0

Graph: 14

Interpretation:

The above graph clearly shows that 41% of the respondents agree to advertisement of Pepsi
helps them to make better selection and 39% of the respondents are neutral and 9% of
respondents strongly disagree and about 2% of them strongly agree for the Pepsi
advertisement makes them a better selection.

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15. Do you think advertisement of PepsiCo soft drinks should be in regular to get
effective?
Table: 15

Regularty_ofPepsi

Frequency Percentage Valid Cumulative

Percentage Percentage

Yes 37 37.0 37.0 37.0

No 19 19.0 19.0 56.0

Valid
Maybe 44 44.0 44.0 100.0

Total 100 100.0 100.0

Graph: 15

Interpretation:

The graph clearly shows that 44% of the respondents says maybe the PepsiCo advertisement
in should be regular to get effective and about 37% of the respondents says yes and 19% of
them says no.

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Effectiveness of Advertisement made by PepsiCo Product

16. Did the advertisement of PepsiCo soft drink make you loyal towards its brand?

Table: 16

Loyalty

Frequency Percentage Valid Cumulative

Percentage Percentage

Yes 36 36.0 36.0 36.0

No 35 35.0 35.0 71.0

Valid
Maybe 29 29.0 29.0 100.0

Total 100 100.0 100.0

Graph: 16

Interpretation:

From the above graph 36% of respondents says yes to the advertisement of PepsiCo made
them loyal towards the brand and about 35% of them says no it doesn’t made them loyal
towards it’s brand and 29% of the respondents says maybe.

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Effectiveness of Advertisement made by PepsiCo Product

17. Which of the following aspects advertisements you remember the most?

Table: 17

Aspects_ofAd

Frequency Percentage Valid Cumulative

Percentage Percentage

color 19 19.0 19.0 19.0

Solgan 14 14.0 14.0 33.0

Theme 23 23.0 23.0 56.0

Valid
Punch line 33 33.0 33.0 89.0

Celebrity 11 11.0 11.0 100.0

Total 100 100.0 100.0

Graph: 17

Interpretation:

The above graph clearly shows that for 33% of the respondents remembers. The punch line of
the advertisement and 23% of the respondents remembers theme of advertisement and 19%
of the respondents says colour of the advertisement and 14% of them remembers the slogan
and least no of respondents remembers the celebrity of the advertisement.

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18. From the following tag line tick the correct tag line used in Pepsi Product
advertisement?
Table: 18

Tag_line

Frequency Percentage Valid Cumulative

Percentage Percentage

Darr ke aage jeet hai 32 32.0 32.0 32.0

Clear hai 10 10.0 10.0 42.0

Yeh Dil Mange More 33 33.0 33.0 75.0

Valid pyaas Badao 9 9.0 9.0 84.0

open happiness 8 8.0 8.0 92.0

Ekdum asli India 8 8.0 8.0 100.0

Total 100 100.0 100.0

Graph: 18

Interpretation:

From the above graph 33% of respondents ticked the correct tag line yeh Dil mange more and
32% of them said darr ke aage Jeet hai and 10% of respondents ticked clear hai and 8% of the
respondents ticked open happiness and ekdum asli Indian.

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19. From the following celebrity tick the correct celebrity used in the Pepsi Product
advertisement?

Table: 19

Celebrity_used

Frequency Percentage Valid Cumulative

Percentage Percentage

Aamir Khan 6 6.0 6.0 6.0

Ranbir Kapoor 30 30.0 30.0 36.0

Valid Akshay Kumar 23 23.0 23.0 59.0

Salman Khan 41 41.0 41.0 100.0

Total 100 100.0 100.0

Graph: 19

Interpretation:

From the above graph majority of respondents about 41% says Salman Khan is used for Pepsi
advertisement and 30% of the respondents correctly tocked for Ranbir Kapoor and about 23%
of the respondents says Akshay Kumar and 6% of them says Aamir Khan.

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FINDINGS

• Majority of respondents about 38% prefer mountain dew soft drink and about 26% of
them prefer Pepsi and 22% of the prefer Coco cola soft drink
• Majority of people said that TV and social media is the most effective media of
advertisement compared to newspaper, magazine and radio.
• About 36% of respondents say advertisement will affect their choice of brand.
• Majority of respondents said that creativity of advertisement and usefulness of the
information will affect their choice of brand.
• Majority of respondents prefer adventure appeal for T.V advertisement.
• Most of the respondents said social appeal is best for billboard/hoardings
advertisement.
• Most of the respondents prefer to see informative/statistical appeal for magazine
advertisement.
• For the radio advertisement majority of the respondents prefer brand appeal.
• For the majority of respondents celebrity doesn’t not affect their choice of brand.
• About 41% of respondents say that advertisement of Pepsi helps them to make better
selection.
• The advertisement of Pepsi made majority of respondents loyal towards it’s brand.
• Theme and punch line are the most remembered for aspects of the Pepsi
advertisement.
• In total of 100 respondents 33% of the respondents correctly identified the tagline for
the Pepsi advertisement.

SUGGESTIONS

• As the majority of respondents are students and employees design advertisement

appeal to retain this segment.
• As the majority of respondents likes to view T.V and engaged in social media it is
suggested to use the media effectively for the campaign.
• From the findings majority of the viewers like creativity and usefulness of the
information, hence it is suggested to use the usefulness of the information like
benefits of soft drinks maybe created with the creative team.

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• As the majority of respondents like to view adventure appeal and also musical and
emotional appeal so it is suggested to design more adventure appeal like Darr ke aage
Jeet hai, taste the thunder etc.
• For the billboard and hoardings majority of viewers like to see social appeal it is
suggested to present the social gathering like festival marriages etc.
• As the majority of readers of magazine like to read more informative appeal it is
suggested to use informative advertisement like hygiene of production and
distribution process and also statistics of benefits of the products.
• As the major of the radio listeners likes brand appeal it is suggested to design
advertisement which conveys brand benefits.
• As there is a majority of respondents have mix opinion on effect of celebrity in
advertisement it is suggested to use suitable celebrity for PepsiCo advertisement
campaign.
• As there is mixed agreement on Pepsi company advertisement reminds the brand
name for soft drink it is suggested to increase the frequency of the advertisement to
make the customer remember and become loyal to the brand.
• As the majority of respondents remember punch line and theme it is suggested to use
creative and appealing theme and punch line in the advertisement.
• As the 30-35% of respondents able to recall/remember correct punch line and
celebrity it is suggested to increase frequency of advertisement to improve the effect
of advertisement.

CONCLUSION

The present study has made an attempt to study the effectiveness of advertisement made by
Pepsi products in Hubli- Dharwad city. I conclude that majority of the respondents said that
TV and Social Media are the effective media of advertisement of cold drinks and the use of
suitable celebrity and punch line in the advertisement will affect the choice of the customers.
For the T.V advertisement it is better to use adventure appeal for advertising and social
appeal for billboard and statistical appeal for magazine advertisement.

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ANNEXURE

Questionnaire

Name___________________

Age

¨ 18-25
¨ 25-30
¨ 30-35
¨ 35& above

Occupation

¨ Student
¨ Employee
¨ Business
¨ Self employed
¨ Other

Which soft drink brand do you prefer the most?

¨ Fanta
¨ Coco-cola
¨ Pepsi
¨ Thumb Up
¨ Mountain Dew
¨ Others

Which medium of advertisement you like the most?

¨ TV
¨ Magazine
¨ Newspaper
¨ Radio
¨ Outdoor media
¨ Social media

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Does advertisement affect the choice of your brand?

¨ Yes
¨ No
¨ Maybe

Tick the parameter which you like about the advertisement?

¨ Celebrity used
¨ creativity of ad.
¨ background music
¨ Theme and Emotion
¨ Usefulness of the information.

Which appeal is best suited for TV advertisement?

¨ Adventure appeal
¨ Music appeal
¨ Fear appeal
¨ Emotional appeal

Which appeal is best suited for advertisement on billboard/hordings.

¨ Celebrity appeal
¨ Social appeal
¨ Potential appeal

Which appeal is best suited in magazine advertisement?

¨ Youth appeal
¨ Humor appeal
¨ Informative/statistical appeal
¨ Personal appeal

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Which appeal is best suited in Radio advertisement?

¨ Brand appeal
¨ Personal appeal
¨ Beauty appeal
¨ Status appeal

Does an advertisement showing your favourite celebrity affect your choice of brand?

¨ Yes
¨ No
¨ Maybe

Do you agree that PepsiCo advertisement remind you brand name while purchasing?

¨ Strongly disagree
¨ Disagree
¨ Neutral
¨ Strongly agree
¨ Agree

Do you agree advertisement of PepsiCo soft drink help you to make better selection?

¨ Strongly disagree
¨ Disagree
¨ Neutral
¨ Strongly agree
¨ Agree

Do you think advertisement of PepsiCo soft drink should be in regular time to get effective?

¨ Yes
¨ No
¨ Maybe

Did the advertisement of PepsiCo soft drink make you loyal towards it’s brand?

¨ Yes
¨ No
¨ Maybe

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Which of the following aspect of advertisement you remember the most?

¨ Colour.
¨ Slogan.
¨ Theme.
¨ Punch line.
¨ Celebrity

From the following punch line tick the correct punch line used in Pepsi product
advertisement.

¨ Darr kea age jeet hai

¨ Clear hai
¨ Yeh Dil Mange More
¨ Pyaas Badao
¨ Open happiness
¨ Ekdum asli Indian

From the following celebrity tick the correct celebrity used in Pepsi product advertisement.

¨ Aamir Khan
¨ Ranbir Kapoor
¨ Akshay kumar
¨ Salman Khan

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BIBILOGRAPHY

1. Philip kotler, marketing management north Western, publication.

2. www.pepsico.in
3. http://www.demographics/marketingtoolspubs.com
4. https://www.researchgate.net/deref/http%3A%2F%2Fwww.bloggingstocks.com%2F2
007%2F04%2F10%2Fcoke-vs-pepsi-battle-of-the-brands%2F%23_blank
5. http://www.wikipedia.org/

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