Marketing Research

Carbonated Drink Industry: How does advertising outlay affect the profitability and sales.

Mid-Review Submitted By:
1. Disha Hooda 2. Akshay Sharma - 168 - 145

3. Ankur Jhunjhunwala -77 4. Raunak Khetan - 199

Background and Motivation Various writers have viewed advertising from different perspectives. Advertising is a tool of marketing for communicating ideas and information about goods and services to an identified group, which employs paid space or time in the media or uses another communication vehicle to carry its message. It openly identifies the advertiser and his relationship to the sales effort (Wanoff, 1997). Advertising is a non-personal communication paid for by an identified sponsor who is relayed through various media with the aim of influencing people’s behavior towards the advertiser’s products and services at the lowest possible cost. (APCON, 2002). Frank (2005) defined advertising as the aim to persuade people to buy. Advertising is the dissemination of information concerning an idea, service or product to compel action in accordance with the intent of the advertiser. Advertising is any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor, (Alexander, 1965:9). The economic importance of advertising can’t be over emphasized. Advertising and promotions are an integral part of our social and economic system, evolving into a vital communications system that gives businesses and consumers the ability to deliver carefully prepared messages to target audiences. Expenditures in advertising and promotions have experienced tremendous growth in recent years. Between 1980 and 2002, their combined expenditure increased from $102 billion to $490 billion in the United States, (Belch & Belch, 2004:5). This represents a compound annual growth rate of 7.4%, and a substantial amount of resources expenditure. The question arises as to the extent and level of benefit provided to the sponsors of these communications. (Batra, Lehmann, Donald, Burke & Pae, 1995) find a strong and significant increase in the effect of advertising when the product category is new and growing. The primary purpose of advertising is to sell something-a product, a service, or an idea. In other words, advertising is supposed to increase sales or market share of the sponsor. In view of the fact that the objective of a firm is to maximize shareholders' wealth as evidenced by the firm's stock price, the goal of sales increases and market share are only relevant to the extent that they enhance the profitability of the firm through increase in operating income. A firm's stock price is the present value of the cash flow the firm is expected to generate for the shareholders. This cash flow is largely determined by the firm's operating cash flow.

Advertising expenditure entails the outlay of current resources in expectation of future benefits to the firm. The objective of this study is therefore, to investigate the long-run relationship between advertising outlays and sales and profitability. It is helpful to begin with a basic question: Why do consumers respond to advertising? An economic theory of advertising can proceed only after this question is confronted. As economists have struggled with this question, three views have emerged, with each view in turn being associated with distinct positive and normative implications. The first view is that advertising is persuasive. This is the dominant view expressed in economic writings in the first half of the 20th century. The persuasive view holds that advertising alters consumers’ tastes and creates spurious product differentiation and brand loyalty. As a consequence, the demand for a firm’s product becomes more inelastic, and so advertising results in higher prices. In addition, advertising by established firms may give rise to a barrier to entry, which is naturally more severe when there are economies of scale in production and/or advertising. The persuasive approach therefore suggests that advertising can have important anti-competitive effects, as it has no “real” value to consumers, but rather induces artificial product differentiation and results in concentrated markets characterized by high prices and profits. The second view is that advertising is informative. This view emerged in force in the 1960s, under the leadership of the Chicago School. According to this approach, many markets are characterized by imperfect consumer information, since search costs may deter a consumer from learning of each product’s existence, price and quality. This imperfection can lead to market inefficiencies, but advertising is not the cause of the problem. Instead, advertising is the endogenous response that the market offers as a solution. When a firm advertises, consumers receive at low cost additional direct (prices, location) and/or indirect (the firm is willing to spend on advertising) information. The firm’s demand curve becomes more elastic, and advertising thus promotes competition among established firms. As well, advertising can facilitate entry, as it provides a means though which a new entrant can publicize its existence, prices and products. The suggestion here, then, is that advertising can have important pro-competitive effects.

A third view is that advertising is complementary to the advertised product. According to this perspective, advertising does not change consumers’ preferences, as in the persuasive view; furthermore, it may, but need not, provide information. Instead, it is assumed that consumers possess a stable set of preferences into which advertising enters directly in a fashion that is complementary with the consumption of the advertised product. For example, consumers may value “social prestige,” and the consumption of a product may generate greater prestige when the product is (appropriately) advertised. An important implication is that standard methods may be used to investigate whether advertising is supplied to a socially optimal degree, even if advertising conveys no information. These views are all, at some level, plausible. But they have dramatically different positive and normative implications. The persuasive and informative views, in particular, offer conflicting assessments of the social value of advertising. It is of special importance, therefore, to subject these views to rigorous empirical and theoretical evaluation by conducting a research study with data from actual customer surveys. Objectives:• • Analyze the market share of each of the major brands of carbonated drinks companies. The strategies adopted by carbonated industry to maintain and increase their respective total market share of company and market share of individual brands. • Understand the preferences of the customers towards and the reasons for choosing a particular carbonated drink. • To scrutinize the popularity, effectiveness and influence exerted by the carbonated industry through the communication and promotion/advertising strategy/activities to attract customers. • • Comparative analysis of brands and their respective targeting and positioning Highlight the successful advertisements and campaigns of each brands and possible reasons behind their success. • • Financial analysis of each brand Relation between Advertising outlays and Sales and profitability and how does change in one affect the other and vice versa • To find out and highlight the improvements and modifications in advertisement strategy of the companies, as suggested by the customers.

Introduction to the Indian Carbonated Industry The main production of soft drink was stored in 1830’s & since then from those

experimental beginning there was an evolution until in 1781, when the worlds first cola flavoured beverage was introduced. These drinks were called soft drinks, only to separate them from hard alochol drinks. This drink do not contain alcohol & broadly specifying this beverages, includes a variety of regulated carbonated soft drinks, diet & caffeine free drinks etc. Soft drinks can trace their history back to the mineral water found in springs. The first marketed soft drinks appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In the late 18th century, scientists made important progress in replicating naturally carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing water with carbon dioxide to make carbonated water when he suspended a bowl of distilled water above a beer vat at a local brewery in Leeds, England. His invention of carbonated water (also known as soda water) is the major and defining component of most soft drinks. Priestley found that water treated in this manner had a pleasant taste, and he offered it to friends as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now called) onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water. Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large amounts. Swedish chemist Jöns Jacob Berzelius started to add flavors (spices, juices, and wine) to carbonated water in the late eighteenth century. Factors affecting consumer behaviour The Definition: Consumer-buying behaviour according to Kotler (2004, p.601) is defined as “The buying behaviour consumers – individuals and house-holds who buy goods and services for personal consumption.” the term ‘consumer’ can be described as a person who acquires goods and services for self satisfaction is often used to describe two different kinds of consuming entities: the personal consumers and the organizational consumers. The personal consumers buy goods and services for his/her own use. In this

context the goods are bought for final use by individual, who are organizational consumers, encompasses for profit and not for profit business, government agencies, institutions, all of them must buy products, equipment and services in order to run their organization (Kotler, 2004). The product purchase decision is not always done by the user. The buyer necessarily purchases the product. Marketers must decide at whom to direct their promotional efforts, the buyer or the user. They must identify the person who is most likely to influence the decision. If the marketers understand consumer behaviour, they are able to predict how consumers are likely to react to various informational and environmental cues, and are able to shape their marketing strategies accordingly (kotler, 1994). According to Kotler (1994), the Consumers buying decision process is influenced by four steps those are as follows: a. Types of consumer buying decision behaviour: Consumer buying behaviour decisionmaking varies with the type buying decision. There are different types of buying behaviour decisions. b. Complex buying behaviour: Consumers undertake complex buying behaviour when they are highly involved in purchase and complex buying behaviour and perceive significant difference among the brands. Consumers may be highly involved when the product are expensive, risky, purchased in frequently and are highly expensive (Kotler, 1994). c. Dissonance – Reducing buying behaviour occurs when consumers are highly involved with an expensive, infrequent or risky purchase, but sees little difference among various brands (Kotler, 1994). d.Variety – Consumers undertake variety seeking buying behaviour in situations characterized by low consumer involvement, but significant perceived brand difference. In such cases, consumers often do a lot brand scrutiny (Kotler, 1994). Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behavior. Initially the consumer tries to find what commodities he would like to consume, and then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision

about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below. 1. Cultural Factors Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. • Culture Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. • Subculture Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group. • Social Class Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth, education, occupation etc. 2. Social Factors Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status. • Reference Groups Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc then the influence of reference groups will be high. Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge or other characteristics). • Family

Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If wife influences the buying decision of a particular product then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles. • Roles and Status Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status. 3. Personal Factors Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self-concept. • Age Age and life cycle have potential impact on the consumer buying behavior. It is obvious that the consumers change the purchase of goods and services with the passage of time. Family life cycle consists of different stages such young singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage. • Occupation The occupation of a person has significant impact on his buying behavior. For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes. • Economic Situation Consumer economic situation has great influence on his buying behavior. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products.

• Lifestyle

Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer interests, opinions, activities etc and shapes his whole pattern of acting and interacting in the world. • Personality Personality changes from person to person, time to time and place to place. Therefore it can greatly influence the buying behavior of customers. Actually, Personality is not what one wears; rather it is the totality of behavior of a man in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behavior for particular product or service. 4. Psychological Factors There are four important psychological factors affecting the consumer buying behavior. These are: perception, motivation, learning, beliefs and attitudes. • Motivation The level of motivation also affects the buying behavior of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. • Perception Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual processes, which are selective attention, selective distortion and selective retention. In case of selective attention, marketers try to attract the customer attention. Whereas, in case of selective distortion, customers try to interpret the information in a way that will support what the customers already believe. Similarly, in case of selective retention, marketers try to retain information that supports their beliefs. • Beliefs and Attitudes Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behavior therefore marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard.

Literature Review
The purpose and importance of advertising The immediate purpose of advertising as Rodger (1996) clearly described is not to physically bring buyers and sellers together but to communicate sales motivating information, ideas, and suggestions to particular target prospects or consumers with a view to increase the likelihood of a sale. According to Kotler and Keller (2006), advertising can be used to create brand awareness and provide specific information about new products and services (informative advertising) and to encourage consumers to buy the product being advertised rather than those of competitors (persuasive advertising). To Guiltinan and Paul (1991), advertising can be used to reassure customers that they are using the best product or service (reinforcement advertising). It is important for advertisers to understand the advertising communication process so as to establish the advertising objectives in line with the receiver‟s response. In addition, advertisers can carefully select the most appropriate media mix to deliver the message to the target audience. Indeed, if consumers view communication in a specific medium as disturbing, it may negatively change the attention to and the perception of the message (Heinonen and Strandvik, 2005). Furthermore, in advertising, the element of feedback is important to ensure that the target audience has received the message accurately.

Advertising and consumer behaviour The advertising message has a great influence on the decision-making process of consumers. Normally when consumers are exposed to advertising, a portion of their long-term memory is activated thereby, stimulating the buying behaviour (Papavassiliou, 1989). Consumers may process the advertising message in two ways. They may either process the information to come up with an overall evaluation of the brand being advertised or they may simply enjoy the entertainment facet, thus hindering the evaluative aspect of the ad (Papavassiliou, 1989).

Branding and consumer behaviour According to Meenaghan (1995), consumers are influenced by the intrinsic values, which are centred on the quality of the product and the extrinsic values, which originate from the brand imagery created by advertising. Coca-Cola is the leader in the soft beverage industry and this success is mainly attributed to the company‟s ability to build relevant and appealing images

around the product, hence creating a brand difference (Kotler and Keller, 2006). In fact, to become the market leader, Coca-Cola has also optimised on brand equity as a tool to influence consumer buying behaviour. Normally, brand equity includes brand strength, which measures the degree of attachment consumers hold towards a brand and brand attachment, which is the set of attitudes consumers hold towards a brand (Wright and Nancarrow, 1999). Consumers prefer high-equity brands such as Coca-Cola because they can easily interpret the brand benefits of the product, feel more confident of branded products, and obtain more satisfaction from its usage (Batra et al., 2005). Strong brand equity is beneficial because the company can better retain the customers; service their needs to later help in boosting the company‟s profitability level (Rajagopal, 2006). It is to be pointed out that Aaker‟s framework not only relates brand equity to consumers but also to distribution trade (other proprietary brand assets). For instance, one of the reasons behind Coca-Cola‟s leadership is its incredible worldwide distribution (Batra et al, 2005).

According to “generalizations about advertising effectiveness in markets” by Gerard J. Tellis: • Based on over 260 estimates it was found that the mean elasticity of sales or market share to advertising is 0.1 percent. • Another experiments suggested that changes in media, product, target segments, advertising scheduling, and advertising content are more likely to yield changes in sales than do changes in advertising weight. • For mature, frequently purchased products, the optimum level of exposure is relatively small, ranging from one to three exposures a week. • Even if advertisers make a big increase or decrease in weight, sales do not increase or decrease by much. • Changes in the creative, medium, target segment, or product itself sometimes lead to changes in sales, even though increases in the level of advertising by itself does not.

According to Kotler (2012) Advertising can be a cost-effective way to disseminate messages, whether to build a brand preference or to educate people. An advertising objective (or goal) is a specific communications ask and achievement level to be accomplished with a specific audience in a specific period of time. objective of advertisement could be: informative advertisement, Persuasive advertising, reminder advertising and reinforcement advertising.

Reminder advertising aims to stimulate repeat purchase of products and services. Coca-Cola ads in magazines are intended to remind people to purchase Coca-Cola.

Market Share
The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company to its market and its competitors. Market share increases can allow a company to achieve greater scale in its operations and improve profitability. Companies are always looking to expand their share of the market, in addition to trying to grow the size of the total market by appealing to larger demographics, lowering prices, or through advertising. Market Share = (Particular Company's Sales Revenue in Time Period X) / (Relevant Market's Total Sales Revenue in Time Period X)

Sales Revenue revenue or turnover is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. sales in general is a transaction between two parties where the buyer receives goods (tangible or intangible), services and/or assets in exchange for money. Sales Revenue = selling price * number of items sold

Profitability
Profitability is the measure of the difference between the purchase price and the costs of bringing to market i.e. the revenue a company derives from its operations, less all explicit costs.

Consumer preferences
Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods according to the levels of utility they give the consumer.

Utility
Utility is defined as the satisfaction that a consumer derives from the consumption of a good. utility’s determinants are decided by a host of noneconomic factors.

Promotion
Promotion is one of the market mix elements. Promotion refers to a different sort of advancement. A sales promotion entails the features - via advertising and/or a discounted price - of a particular product or service. Promotions that part of communication that consists of company messages designed to stimulate awareness of, interest in, and purchase of its various products and services.

Advertising
Advertising or advertizing is a form of communication for marketing and used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Advertising is a non personal form of communication of information usually paid for and usually persuasive in nature about products, services, or ideas, by identified sponsors through the various medias. (Bovee, 1992)

Advertising Campaigns
An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame. Advertising campaigns are the groups of advertising messages which are similar in nature. They share same messages and themes placed in different types of medias at some fixed times. The time frames of advertising campaigns are fixed and specifically defined.

Positioning
An effort to influence consumer perception of a brand or product relative to the perception of competing brands or products. Its objective is to occupy a clear, unique, and advantageous position in the consumer's mind. Market positioning is about how you want your customers to perceive your product or service in relation to their perception of your competitors and what marketing strategies you should adopt to reach this perceptual goal.

Coca-Cola Position • Coca Cola has positioned itself within the world soft drink market and it faces a vital question: does it have to keep the same positioning or to adapt according to the 200 countries where the brand sells its products. • “think global, act local”, Coca is thus willing to keep the same core product which is coke, but it adapts the offer to local needs, thus using the same strategic positioning in order to have the same image all around the world, which is a success because it is perceived today as a part of daily life everywhere. • This perception of the brand by the consumer leads to a high degree of loyalty and makes the purchasing decision more automatic. • Coca cola has this unique perception in the minds of the customer i.e. “Live the coke side of life”, related to joy and happiness. Some facts about Coke India • Coca Cola India manufactures concentrate and beverage mixes under the wholly owned by Coca-Cola India Pvt Ltd, which re-entered Indian markets in 1993. • The company owns a bottling unit known as Hindustan Coca-Cola Beverages Pvt Ltd. • • Coca Cola family today includes 7000 Indian distributors and 1.7 million retailers. Nearly 2 billion INR has been invested in India operations since its entry in the Indian market. • Early acquisition of brands Thumbs up, Limca and Gold Spot gave Coca Cola India access to better infrastructure and market reach • Coca Cola India’s biggest competition is from Pepsico India which hold about 48% of Industry market share. • In the fruit-based drinks category, Coca-Cola’s Maaza is the leader, followed by Parle’s Frooti and PepsiCo’s Slice. • Around thirty thousand individuals are directly employed by Coca Cola India and another two Lac individuals get indirect employment assistance.

Campaigns of Coca-cola • The earliest of the ad campaigns shows the brand positioning itself as a relaxing drink, fighting off the hot weather and humidity of Indian weathers. • Since rival Pepsi had already established a strong brand image based on first mover advantage, Coca Cola adopted the dual strategy of Jingles and Celebrity endorsements. • Some of the popular coke Jingles in first decade of its existence were ‘Always The Real Thing’, ‘Pee Le Coca-Cola’, ‘Jo Chahe Ho Jaye…Coca-Cola Enjoy. • “Thanda Matlab Coca cola ad” with the iconic star Amir Khan was presented in 6 different looks, working on the simple philosophy of highlighting how Indian related to the brand as a cool relief. Word “Thanda” in India has different meanings like cool, cold or refreshing. If you meant refreshment you meant Coca Cola. This ad was instrumental in establishing Coca Cola as a brand in India. • It was projected as a beverage enjoyed by the entire family together through ad campaigns like “Saath Khao Khushiyaan Badao”.

“Umeed wali dhoop, sunshine wali aasha..” – Advertisement Analysis Overview • This ad campaign was an extension of the “open happiness” global campaign. More specifically this ad campaign was a part of the “Reason to Believe” campaign that urged consumers to look at the brighter side of life. • This ad also urged people to look forward for a happier and better future. The ad agency of Coke India is McCann Erickson India. • This ad came out in December 2011 with an aim to usher in New Year with optimism and happiness. Analysis • The ad involves children singing a beautiful song. The song is simple and the lyrics can be easily memorized.

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Between the song various images are added, these images are added to bring out a sense of hope for people.

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The images show the sharp contrast between good and bad, sorrow and hope eg: for every grown up who cant write his name there are 15 kids who can read a fairy tale. The images basically say that there is better in the world than bad. This brings out an emotional connect between the ad and the viewers.

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This ad along with selling coke, sells hope and optimism. Hope is a good thing, may be the best of things. And anything that brings hope is always liked by people. One of the main aims of ads of coke is to bring happiness in the lives of its customers. This advertisement definitely brings a smile on the consumers.

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Kids are a major influence of the ad as kids are sign of future. The can be seen as a face of change and they inspire optimism, hope, unity and love.

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The fact viewers just have to listen to the song once to like the song is the most influencer in this advertisement.

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In terms of a marketer’s perspective, this is a wonderful ad as there is an immediate connect between the ad and viewers. It meets the target audience and this ad is able to meet its objective as well.

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The ad successfully portrays coke as a brand that brings happiness and the ad is in sync with the parent campaign of opening happiness.

Sprite Sprite is a colorless, lemon-lime flavored, caffeine-free soft drink, created by the Coca-Cola Company. It was introduced in the United States in 1961. This was Coke's response to the popularity of 7 Up. It comes in a primarily silver, green, and blue can or a green transparent bottle with a primarily green and blue label. 1. Ad-1 • A young boy walks towards his fridge while talking on a phone seeing his mother getting ready for party. He speaks loudly, "Ghar aa raha hai? Match dekhne?" • He takes out the bottle of Sprite and says, "Mushkil hai yaar". He pours some ice cubes and then his Sprite in a glass and takes a sip. • Immediately after sipping the Sprite, an idea strikes him. Just when his mother passes across him, he starts talking on the phone again. • His mother walks towards the door picking her purse. He again speaks loudly, "No way dude, aaj mujhe mummy papa ke sath jana hai." • He deliberately speaks loudly to make it clear to his mom. He says, "How can I miss it... wahan Rekha aunty bhi ayengi." • His mother turns towards him with surprise as he says, "She's hot dude... dekhega naa to bas." He turns back to his mom and says, "Oh Mom bas 10 minutes." • His mom also shows as if she heard nothing and while wearing her earrings she replies, "Ab badon ki party me tum kya karoge beta... tum yahin raho or kuch match wetch dekhlo." • He smiles as his trick worked just the way he wanted. He tells his friend to come over to watch the match. Sprite appears on screen. VO: Chalo apni chaal. Chalo apni Chal-

Ad-2 • A boy is sitting in a music class and stands up slowly looking at a beautiful girl wearing a saree walks into the classroom in awe. A song starts, Guldaste se nikli woh.. lagti thi garden! • The boy tries to speak but three different guys interrupt him. The song continues, raaste mein kaante the... John! Jaani! or koi Janardhan..."

• The girl says, "Let's starts!" John plays a perfect tune on his violin. The song continues, John ka teer nishane pe pada. • Jaani and Janardhan also play their tunes on violin perfectly. Song continues, Jaani ne apne shikanje me jakdaa, Janardhan ka vaar tha sabse tagda. • The girl impressed with the three guys appreciates them and claps. She then questions the first boy "Or tum?" • The boy takes a sip of Sprite and then plays a bad tune on his violin. The girl says, "Aap log fantastic the... ab agle hafte milenge. • The girl looks at the first boy and says, "Par tum... roz do ghante mere saath beetaoge, hmmm?". She starts teaching him violin. • A Sprite bottle splashes into the sprite with ice on top. VO: Sprite! Chalo apni chaal.

Campaign Analysis • Sprite has two new ads running on TV with a theme of "Chalo apni Chal". The theme basically revolves around the idea that you can get what you desire in spite of all the odds and tough situation if you have a good presence of mind and to think different. • The background for both the ads is pretty simple. A beautiful girl and a normal guy wishing to be with her. But in between he has to tackle very tough competitions of three other guys who rank much higher than him. Ad goes on show how with his presence of mind and think different attitude, he manages to overcome all the obstacles. • Music is simple, catchy and little bit comical. Lyrics are simple and apt. good enough to convey message in minimum words. • Sprite, in the previous campaign, just talked about quenching thrust and nothing else. Whereas the new campaign mainly focus on to the youth, which puts the character in the campaign as a trickster whose aim is to get a girl which is absolutely different from its previous campaign. • Brand Sprite has always been synonymous with an honest, no-nonsense attitude. The ‘Chalo Apni Chaal’ doctrine is for those who are confident, believe in themselves and have the inventiveness to rise up to the challenge and beat the odds. ‘Chalo Apni Chaal’ inspires the youth to overcome challenges or tricky situations and to carve their own path using their ingenuity, humour and clear thinking.”

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The campaign is targeted at the youth who want to get ahead in life by using their own ingenious and imaginative ways. The campaign builds on the characteristic honest, no-nonsense attitude of brand Sprite which has captured the imagination of the youth for over a decade. It urges the young minds to have a fresh approach, and think differently to achieve their goals. Sprite uses pathos, emotional appeal, in their advertisement. The way they do this is, they remind you of how you feel when you are thirsty. They assure you that if you drink Sprite, it will quench your thirst better than any other drink. By using an emotional appeal, they capture their consumers. Sprite uses plain folks in their ad. They use plain folks by not having any celebrities in their commercials. By only using normal everyday people in their ads, they are able to create the feeling that you can be just like everyone else if you drink sprite too. Sprite uses bandwagon in their advertisements to gain customers. By using repetition, they create the idea that because hearing it repeatedly, that everybody drinks it. Bandwagon creates the feeling that you will fit in and be liked by others participating in the trend, if you yourself participate in it.

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PepsiCo Tweet20: • At PepsCo they follow ; "Performance with Purpose" i.e. come out with amazing food and beverages at the same time emphasis on sustainable development by conserving energy , water and packing . • • It includes 22 brands that generate more than $1 billion each in annual retail sales. Launch of Tweet20 by Pepsi during IPL , launching the event on a Twitter application which allows people to select their own team and play live cricket online. • @PepsiIndia tweets a particular type of ball to which the one chooses an appropriate shot and for a correct answer you get Pepsi Crown and also during the games on has to perform tasks and they get an opportunity to play the game with competitive level as they upgrade their skills and strike rate according to how they play. • While select winners get Pepsi IPL passes, the top 5 scorers get access to the VIP box in-stadia. Campaign Analysis: • Merit at the One Show Interactive Awards-2013, for the “Best Use of Social Media” for the Pepsi Tweet20. • • The campaign was a smashing success and had no media spending. India is a country which loves cricket and the timings of the campaign were such that it attracted good numbers. • Also it used social media to attract audiences with 9.6 million impressions and trending as a topic for days. • • The campaign recorded over 11,000 tweets. So campaigning with no spending or advertising just ideal positioning (Twitter) at the same time and psychographic segmentation (cricket during the time of IPL).

Mountain Dew Introduction Mountain Dew (stylized as Mtn Dew in the United States) is a carbonated soft drink brand produced and owned by PepsiCo. The original formula was invented in 1940 by Tennessee beverage bottlers Barney and Ally Hartman and was first marketed in Marion, Virginia; Knoxville, Tennessee and Johnson City, Tennessee with the slogan "Ya-Hoo! Mountain Dew. It'll tickle yore innards. A revised formula was created by Bill Bridgforth in 1958. The Mountain Dew brand and production rights were acquired by the Pepsi-Cola company in 1964, at which point distribution expanded more widely across the United States and Canada. In India, Mountain Dew set the soft drink category ablaze in 2003 with its iconic launch campaign ‘Cheetah Bhi Peeta Hai’. Brand Advantage It is a soft drink that exhilarates like no other because of its active, high-energy, extreme citrus taste. The idea of daring, challenges, a ‘can do’ attitude, adventure and exhilaration are deeply entrenched in its brand DNA. The brand has always celebrated the bold, adventurous and rebellious spirit of youth. This is reflected in the high-adrenaline advertising of the brand and its connection to outdoor adventure. A. Mountain Dew , IPL 2013 :• • More adventure, more excitement and more fearlessness! PepsiCo’s Mountain Dew dares consumers to look their worst fear in the eye as the brand unveils its inspiring brand campaign featuring Bollywood’s youth icon, Hrithik Roshan. • The new Mountain Dew commercial created by Agnello Dias of Taproot India and directed by the Cannes Gold-winning director, Prakash Varma is all about embracing courage and overcoming one’s apprehensions • The ad embodied the brand’s philosophy of ‘Darr se Mat Daro, Darr Ke Aage Jeet Hai’. • The ad went on air on March 20th 2013 and the exciting film will featured Hrithik facing his fear of the deep blue sea and taking a plunge into the icy waters from a cliff.

Campaign Analysis :• This is the first campaign that Hrithik Roshan has shot with Mountain Dew coming on board as brand ambassador this February. • The new TVC presents a perfect blend of adventure, boldness and excitement that captures the true spirit of the brand. • The on-air campaign was supported by robust outdoor, online and on-ground activation. • Mountain Dew was also the Broadcast Partner for Pepsi IPL 2013, and leveraged the presence on this impactful summer property with this new creative campaign. • Over the last 5 years, Mountain Dew has been the fastest growing brand within the Carbonated Soft Drinks category in India with a turnover of over INR 1000 crore.

B. ‘ Dew or Die ‘Campaign • Cricket has been dominating our minds thanks to the sixth season of Pepsi Indian Premiere League (IPL). And one campaign that has been catching the eye is Mountain Dew's with the catchy title ‘Dew or Die’. • Mountain Dew’s new campaign brings alive these moments through an innovative consumer engagement program, on-air as well as extensive on-line and in-stadia initiatives. • The brand is associated with three teams of Pepsi IPL 6- Rajasthan Royals, Kings XI Punjab and Delhi Daredevils. • The campaign has a special segment on Max’s ‘Extra Innings’ every day. The segment will be showcasing three ‘Dew or Die’ moments from the previous day’s matches, shortlisted by an expert panel. • The ‘Dew or Die’ campaign has also been launched through the brand’s social media channels. During all matches, cricket fans can select their ‘Dew or Die’ moments in real time and tweet to the Mountain Dew handle (@MountainDewIn) with the hashtag, #DewOrDie to win match tickets and team merchandise. Campaign Analysis

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Mountain Dew is celebrating the ‘Dew or Die’ passion of the players and the fans in a refreshing manner. The reason behind targeting T20 is that a short format like T20 has a lot of defining moments which change the fate of the game and elevate excitement to a new level. The campaign focuses on the moments that ultimately differentiate between victory and defeat The campaign is all about consumer engagement including our TV integration that goes beyond traditional advertising. While the earlier campaign took the brand’s essence of ‘Darr ke Aage Jeet Hai’ to the level of crushing fear and taking a plunge to come out victorious , this campaign takes forward the same philosophy and talks about fighting through all situations and taking the game away from the opposition.

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References: http://www.usi.edu/business/cashel/331/consumer.pdf http://www.boldhorizon.co.nz/market-­‐positioning.php Generalization about advertising effectiveness in markets by Gerard J. Tellis (2009) Article Source: http://EzineArticles.com/4602848

1. The Association between Advertising and Sales Volume: A Case Study of Nigerian Bottling Company Plc Akanbi, Paul A. and Adeyeye, Tolulope C – accessed on 8th August, 2013 2. The Economic Analysis of Advertising, Kyle Bagwell Discussion Paper No.: 0506-01 – accessed on 8th August, 2013