PROJECT REPORT

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

Title of the Project: Advertising Media and its

Impact.

Submitted by:
Name of the Candidate:
Registration No. :
Name of the College:

ARNAB SARKAR
017-1121-1686-12
THE BHAWANIPUR

EDUCATION SOCIETY COLLEGE

College Roll No. :

0103122625

Supervised by:
Name of the Supervisor:

Prof. Subir Chakraborty

Name of the College:

The Bhawanipur Education

Society College

Month and Year of Submission:

INTRODUCTION
The objectives of all business are to makes profits and a merchandising concern can do that by
increasing its sales at remunerative prices. This is possible, if the product is widely polished to be
audience the final consumers, channel members and industrial users and through convincing
arguments it is persuaded to buy it. Publicity makes a thing or an idea known to people. It is a
general term indicating efforts at mass appeal. As personal stimulation of demand for a product
service or business unit by planting commercially significant news about it in a published medium
or obtaining favorable presentation of it upon video television or stage that is not paid for by the
sponsor. On the other hand, advertising denotes a specific attempt to popularize a specific
product or service at a certain cost. It is a method of publicity. It always intentional openly
sponsored by the sponsor and involves certain cost and hence is paid for. It is a common form of
non- personal communication about an organization and or its products idea service etc. that is
transmitted to the targeted audiences through a mass medium. In common parlance the term
publicity and advertising are used synonymously.

What is Advertising:
Advertising is a form of marketing communication used to persuade an audience to take or
continue some action, usually with respect to a commercial offering, or political or ideological
support. In Latin, ad vertere means "to turn toward". If advertisements merely sold products, it
would cause less critical concern than it does, but it sells images, dreams and ideal ways of life. It
sells, and then reinforces time and again, values - those of consumerism and class consciousness;
and it trades in stereotypes. Advertising is a general term for and all forms of publicity, from the
cry of the street boy selling newspapers to the most celebrate attention attracts device. The object
always is to bring to public notice some articles or service, to create a demand to stimulate
buying and in general to bring together the man with something to sell and the man who has
means or desires to buy".
The marketing mix it was proposed by professor E. Jerome McCarthy in the 1960s. It consists of four
basic elements called the "four P's". Product is the first P representing the actual product. Price represents
the process of determining the value of a product. Place represents the variables of getting the product to
the consumer such as distribution channels, market coverage and movement organization. The last P stands
for Promotion which is the process of reaching the target market and convincing them to buy the product.

Brief review of Literature:

Advertising has been defined by different experts. Some of the quoted definitions are:
American marketing association has defined advertising as "any paid form of non personal
presentation and promotion of ideas, goods or services by an identified sponsor. The medium used
are print broad cast and direct.
William J. Stanton, defined that Advertising consists of all the activities involved in
presenting to a group a non- personal, oral or visual openly, sponsored message regarding a
product, service, or idea. This message called an advertisement is disseminated through one or
more media and is paid for by the identified sponsor. Advertising is any paid form of non
personal paid of presentation of ideas goods or services by an identified sponsor.
Advertising is the art of convincing people to spend money they don't have for something they
don't need. - Will Rogers.
Creative without strategy is called 'art.' Creative with strategy is called 'advertising.- Jef I.
Richards.

Advertising works most effectively when it's in line with what people are already trying to do. And
people are trying to communicate in a certain way on Facebook - they share information with their
friends, they learn about what their friends are doing - so there's really a whole new opportunity
for a new type of advertising model within that.- Mark Zuckerberg.
Many a small thing has been made large by the right kind of advertising.- Mark Twain.
Advertising is legalized lying.- H. G. Wells.
Advertising as the action of calling something to the attention of the public especially by paid
announcement" - Hart and OConnor.
A form of communication through the media about products, services, ideas, personalities or
organizations paid for by an identified sponsor.- Aliede Okunna.
Good advertising does not just circulate information. It penetrates the public mind with desires
and belief.- Leo Burnett.
Advertising is the means of mass selling that has grown up parallel with and has been made
necessary to mass production.- Gardner.
In developing an advertising programme, one must always start by identifying the market needs
and buyer motives and must make five major decisions commonly referred as 5M (mission, money
message, media and measurement) of advertising.

Basic Features of Advertising: On the basis of various definitions it has certain basic features such
as:
1.

It is a mass non-personal communication.

2.

It is a matter of record.

3.

It persuades buyers to purchase the goods advertised.

4.

It is a mass paid communication.

5.

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

6.
It is also called printed salesmanship because information is spread by means of the written
and printed work and pictures so that people may be induced to act upon it.

Features of Advertising:
1. Communication: Advertising is means of mass communication reaching the masses. It is
a non-personal communication because it is addressed to masses.
2. Information:
Advertising informs the buyers about the benefits they would get when
they purchase a particular product. However, the information given should be complete and
true.
3. Persuasion:
The advertiser expects to create a favorable attitude which will
lead to favorable actions. Any advertising process attempts at converting the prospects
into customers. It is thus an indirect salesmanship and essentially a persuasion technique.
4. Profit Maximization: True advertising does not attempt at maximizing profits by
increasing the cost but by promoting the sales. This way It wont lead to increase the
price of the product. Thus, it has a higher sales approach rather than the higher-cost
approach.

5. Non-Personal Presentation: Salesmanship is personal selling whereas advertising is

non-personal in character. Advertising is not meant for anyone individual but for all. There
is absence of personal appeal in advertising.
6. Identified Sponsor:
A sponsor may be an individual or a firm who pays for the
advertisement. The name of reputed company may increase sale or products. The product
gets good market because of its identity with the reputed corporate body.
7. Consumer Choice:
Advertising facilitates consumer choice. It enables consumers to
purchase goods as per their budget requirement and choice. Right choice makes consumer
happy and satisfied.
8. Art, Science and Profession: Advertising is an art because it represents a field of
creativity. Advertising is a science because it has a body of organized knowledge.
Advertising is profession is now treated as a profession with its professional bodies and
code of conduct for members.
9. Element of Marking Mix: Advertising is an important element of promotion mix.
Advertising has proved to be of great utility to sell goods and services. Large manufactures
spend crores of rupees on advertising.
10. Element of Creativity: A good advertising campaign involves lot of creativity and
imagination. When the message of the advertiser matches the expectations of consumers,
such creativity makes way for successful campaign.

Objectives of Advertising:
The fundamental purpose of advertising is to sell something - a product, a service or an idea. In
addition to this general objective, advertising is also used by the modern business enterprises for
certain specific objectives which are listed below:
To introduce a new product by creating interest for it among the prospective customers.
To support personal selling programme. Advertising maybe used to open customers' doors
for salesman.
To reach people inaccessible to salesman.
To enter a new market or attract a new group of customers.
To light competition in the market and to increase the sales as seen in the fierce
competition between Coke and Pepsi.
To enhance the goodwill of the enterprise by promising better quality products and
services.
To improve dealer relations. Advertising supports the dealers in selling he product. Dealers
are attracted towards a product which is advertised effectively.
To warn the public against imitation of an enterprise's products.

Need of Advertising:
Advertising has become an essential marketing activity in the modern era of large scale production
and serve competition in the market. It performs the following functions:
Promotion of Sales : It promotes the sale of goods and services by informing and
persuading the people to buy them. A good advertising campaign helps in winning new
customers both in the national as wet as in the international markets.
Introduction of New Product :
It helps the introduction of new products in the
market. A business enterprise can introduce itself and its product to the public through
advertising. A new enterprise can't make an impact on the prospective customers without
the help of advertising. Advertising enables quick publicity in the market.
Creation of Good Public Image :
It builds up the reputation of the advertiser.
Advertising enables a business firm to communicate its achievements in an effort to satisfy

the customers' needs. This increases the goodwill and reputation of the firm which is
necessary to fight against competition in the market.
Mass Production :
Advertising facilitates large-scale production. Advertising
encourages production of goods in large-scale because the business firm knows that it will
be able to sell on large-scale with the help of advertising. Mass production reduces the cost
of production per unit by the economical use of various factors of production.
Research : Advertising stimulates research and development activities. Advertising has
become a competitive marketing activity. Every firm tries to differentiate its product
from the substitutes available in the market through advertising. This compels every
business firm to do more and more research to find new products and their new uses. If a
firm does not engage in research and development activities, it will be out of the market in
the near future.
Education of People : Advertising educate the people about new products and their
uses. Advertising message about the utility of a product enables the people to widen their
knowledge. It is advertising which has helped people in adopting new ways of life and
giving-up old habits. It has contributed a lot towards the betterment of the standard of
living of the society.
Support to Press :
Advertising provides an important source of revenue to the
publishers and magazines. It enables to increase the circulation of their publication by
selling them at lower rates. People are also benefited because they get publications at
cheaper rates. Advertising is also a source of revenue for TV network. For instance,
Doordarshan and ZeeTV insert ads before, in between and after various programmes and
earn millions of rupees through ads. Such income could be used for increasing the
quality of programmes and extending coverage.
Cheaper goods: It leads to cheaper prices. "No advertiser could live in the highly
competitive arena of modern business if his methods of selling were more costly than those
of his rivals."
Expands the market: Creates and stimulates demand opens and expands the markets.
Raises standard of living: It raises the standard of living of the general public by
impelling it to use to articles of modern types which may add to his material well being.
Modern advertising has made the luxuries of yesterday the necessities of today. It is
a positive creative force in business. It makes two blades of grass grow in the business world
where one grew before.

Research Methodology
Research is voyage from known to unknown. Research is a procedure of logical and systematic
application of the fundamentals of science to the general and overall questions of a study and
scientific technique which provide precise tools, specific procedure and technical rather than
philosophical means for getting and ordering the data prior to their logical analysis and
manipulation. Different type of research designs is available depending upon the nature of
research project, availability of able manpower and circumstances.
Methodology:
1. Research Design: The research design is the blueprint for the fulfillment of objectives and
answering questions. It is a master plan specifying the method and procedures for collecting
and analyzing needed information. Descriptive Research is used in this study as the main aim is
to describe characteristics of the phenomenon or a situation.
2. Data Collection Methods: The source of data includes primary and secondary data sources.
Primary Sources: Primary data has been collected directly from sample respondents through
questionnaire and with the help of interview.

Secondary Sources: Secondary data has been collected from standard textbooks, Newspapers,
Magazines & Internet.
3. Research Instrument: Research instrument used for the primary data collection is
Questionnaire.
4. Sample Design: Sample design is definite plan determine before any data is actually obtaining
for a sample from a given population. The researcher must decide the way of selecting a sample.
Samples can be either probability samples or non-probability samples.

Following are the objectives of the study:

1. To know the most effective media of advertisement
2. To find out the reasons for liking the advertisement of cold drinks.
3.

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

Data collecting technique: Convenience

Sample Size: 50 Respondents.
Area of Study: Metropolitan and Beliaghata, Kolkata.

MARKET PROFILE:
PROFILE
McDonalds :

Competitors of McDonalds : 1. KFC

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

Different types of products offered by the brand:

McAloo Tikki Burger

1 serving

367 kcal

French Fries (Large)

1 serving (220g)

685 kcal

McSpicy Chicken Burger

1 serving

580 kcal

McVeggie

1 serving

360 kcal

McChicken

1 serving

416 kcal

1 wrap (282g)

677 kcal

1 serving (213g)

410 kcal

1 serving

245 kcal

BigSpicy Chicken Wrap

Chicken McGrill
Veg Pizza McPuf

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

Sale of Coca Cola cold drinks:

KFC:
KFC

Competitors of KFC :-

1. McDonalds
2. Pizza Hut
3. Dominoes
4. Subway
5. Burger King
Different types of products offered by the brand:

Hot and Crispy Chicken ( bucket)

Fiery Grilled Chicken (Bucket)
Chicken Zinger Burger
Paneer Zinger Meal
Krushers (beverages)

Sizes of the products available in the market:

8 pcs bucket.
6 pcs bucket.
4 pcs bucket
300 ml( beverages)

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

Sale of KFC in comparison to Mc Donalds in India :

SWOT ANALYSIS: (National and International Scenario)

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

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

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

SWOT Analysis of KFC -

Strength:
1. Product diversity- PepsiCo has several hundreds of brands, which include: carbonated
and noncarbonated drinks, water, savory and whole grain-based snacks. Product
diversification strengthens PepsiCo because it doesnt have to rely on few key products or
seasonal sales and isnt significantly affected by changes in customer tastes.
2. Extensive distribution channel- PepsiCo products are served to more than 10 million
stores per week in more than 200 countries.
3. CSR- The firm recognizes its role in a society and engages in education, recycling, water
usage reduction, obesity fighting and other projects through PepsiCo Foundation, thus
increasing its brand awareness and customer loyalty.
4. Competency in mergers and acquisitions- The key to PepsiCo business growth is its
successful mergers and acquisitions of beverage, bottling and snacks companies. PepsiCo
acquired such brands as Gatorade, Tropicana, Doritos, Quaker Oats and many others.
5. 22 brands earning more than $1 billion a year- The company doesnt have to rely on
one or two of its product to bring most of the revenues. Instead, Pepsi has 22 brands that
contribute significantly to its income, serving different industries and satisfying various
consumer tastes.

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

advertising over 2012 resulted in PepsiCos growing market share over its main competitors,
including Coca Cola Company, which spent even more on advertising.
7. Complementary product sales- In its annual financial report, PepsiCo revealed one of
its studies' results that about 30% of customers who buy its snacks also buy its beverages.
PepsiCos decision to diversify its product range is firms competitive advantage too.
8. Proactive and progressive- According to New York Times food industry writer Melanie
Warner, PepsiCo, by many critics, is considered to be most proactive and progressive food
company.
Weaknesses:
1. Over-dependence on Wal-Mart- More than 13% of PepsiCo business revenues come
from Wal-Mart store chain. Wal-Mart has a significant buyer power and can easily dictate
prices over PepsiCo leaving it with very small margins. In addition, if PepsiCo would lose
Wal-Mart it would lose 13% of its revenue and competitive advantage.
2. Low pricing- PepsiCo usually prices its products lower than its competitors. Low price is
associated with low quality and PepsiCo products are usually perceived as ones.
3. Questionable practices- PepsiCo is using and selling tap water but places view of
mountains on its water bottle labels, thus deceiving people that it is mountain spring water
when it is not. PepsiCo has also been criticized for using water in India with higher than
allowed amount of pesticides in it.
4. Weak brand awareness- The Coca Cola Company has the largest share market of
beverages in the world and much stronger brand awareness than Pepsi, placing it at
competitive disadvantage.
5. Too low net profit margin- PepsiCos net profit margin is 9.7% compared to Coca Colas
18.55% and Nestls 11%.

Opportunities:
1. Growing beverages and snacks consumption in emerging markets- PepsiCo has
made large investments in BRIC countries to expand its market share as these countries
represent the fastest growing food and beverages markets in the world. If PepsiCo is successful
it will increase its revenues and global market share significantly. In addition, it will be able to
rely less on US market.
2. Increasing demand for healthy food and beverages- Due to many programs to fight
obesity, demand for healthy food and beverages has increased drastically. PepsiCo has an

opportunity to further expand its product range with beverages and snacks that have low
amount of sugar and calories.
3. Further expansion through acquisitions- So far, PepsiCo has been successful in
acquiring other companies and adding new growing brands to its portfolio.
4. Bottled water consumption growth- Consumption of bottled water is expected to grow
both in US (PepsiCos largest bottled water market) and the rest of the world.
5. Savory snacks consumption growth- The same opportunity PepsiCo has in growing its
revenue selling snacks as this market is also expected to grow.

Threats:
1. Changes in consumer tastes- Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat.
2. Water scarcity- Water is becoming scarcer around the world and increases in both cost
and criticism for PepsiCo over the large amounts of water used for production.
3. Decreasing gross profit margin- PepsiCos gross profit margin was decreasing over the
past few years and may continue to decrease due to higher water and other raw material
costs.
4. Legal requirements to disclose negative information on product labels- Some
researches show that particular ingredients, consumed in extra large quantities, in some of
PepsiCo products could cause cancer. For this reason, many governments consider to pass
legislation that requires disclosing such information on product labels. Products containing
such information may be perceived negatively and lose its customers.
5. Strong dollar- More than 50% of PepsiCos income is from outside US. Due to strong
dollar performance against other currencies PepsiCos income should fall.
6. Increased competition from Snyders- Snyders increase its US savory snacks market
share by 1.6% and almost all of it was taken from PepsiCo.

SWOT Analysis of Mc Donalds -

Strengths:
1. The best global brand in the world in terms of value- According to Inter brand, The
Coca Cola Company is the most valued ($77,839 billion) brand in the world.
2. Worlds largest market share in beverage- Coca Cola holds the largest beverage
market share in the world (about 40%).
3. Strong marketing and advertising- Coca Cola advertising expenses accounted for
more than $3 billion in 2012 and increased firms sales and brand recognition.
4. Most extensive beverage distribution channel- Coca Cola serves more than 200
countries and more than 1.7 billion servings a day.
5. Customer loyalty- The firm enjoys having one of the most loyal consumer groups.
6. Bargaining power over suppliers- The Coca Cola Company is the largest beverage
producer in the world and exerts significant power over its suppliers to receive the lowest

price available from them.

7. Corporate Social Responsibility (CSR)- Coca Cola is increasingly focusing on CSR
programs, such as recycling/packaging, energy conservation/climate change, active healthy

living, water stewardship and many others, which boosts companys social image and result
in competitive advantage over competitors.
Weaknesses:
1. Significant focus on carbonated drinks- The business is still focusing on selling Coke,
Fanta, Sprite and other carbonated drinks. This strategy works in short term as
consumption of carbonated drinks will grow in emerging economies but it will prove weak
as the world is fighting obesity and is moving towards consuming healthier food and drinks.
2. Undiversified product portfolio- Unlike most companys competitors, Coca Cola is still
focusing only on selling beverage, which puts the firm at disadvantage. The overall
consumption of soft drinks is stagnating and Coca Cola Company will find it hard to
penetrate to other markets (selling food or snacks) when it will have to sustain current level
of growth.
3. High debt level due to acquisitions- Nearly $8 billion of debt acquired from CCEs
acquisition significantly increased Coca Cola's debt level, interest rates and borrowing costs.
4. Negative publicity- The firm is often criticized for high water consumption in water
scarce regions and using harmful ingredients to produce its drinks.
5. Brand failures or many brands with insignificant amount of revenues- Coca
Cola currently sells more than 500 brands but only few of the brands result in more than $1
billion sales. Plus, the firms success of introducing new drinks is weak. Many of its
introduction result in failures, for example, C2 drink.

Opportunities:
1. Bottled water consumption growth- Consumption of bottled water is expected to grow
both in US and the rest of the world.
2. Increasing demand for healthy food and beverages- Due to many programs to fight
obesity, demand for healthy food and beverages has increased drastically. The Coca Cola
Company has an opportunity to further expand its product range with drinks that have low
amount of sugar and calories.
3. Growing beverages consumption in emerging markets- Consumption of soft drinks
is still significantly growing in emerging markets, especially BRIC countries, where Coca
Cola could increase and maintain its beverages market share.
4. Growth through acquisitions- Coca Cola will find it hard to keep current growth levels
and will find it hard to penetrate new markets with its existing product portfolio. All this
can be done more easily through acquiring other companies.
Threats:

1. Changes in consumer tastes- Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly
serving carbonated drinks.
2. Water scarcity- Water is becoming scarcer around the world and increases both in cost
and criticism for Coca Cola over the large amounts of water used in production.
3. Strong dollar- More than 60% of The Coca Cola Company income is from outside US. Due
to strong dollar performance against other currencies firms overall income may fall.
4. Legal requirements to disclose negative information on product labels- Some
Coca Colas carbonated drinks have adverse health consequences. For this reason, many
governments consider to pass legislation that requires disclosing such information on
product labels. Products containing such information may be perceived negatively and lose
its customers.
5. Decreasing gross profit and net profit margins- Coca Colas gross profit and net
profit margin was decreasing over the past few years and may continue to decrease due to
higher water and other raw material costs.
6. Competition from PepsiCo- PepsiCo is fiercely competing with Coca Cola over market
share in BRIC countries, especially India.
7. Saturated carbonated drinks market- The business significantly relies on the
carbonated drinks sales, which is a threat for the Coca Cola as the market of carbonated
drinks is not growing or even declining in the world.

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

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

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

LIMITATIONS:
The project relied mainly on the primary data.
Consumers give very unclear picture.
We have a limited time.
The study is based on limited sample.
It begin my first attempt to undertake such a study, thus the inexperience is also a obstacle
to accomplish the project in a proper way.
It was also difficult to get proper information from the people because they were indulging
in some other activities.

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